abhishreshthaa
Abhijeet S
Assessment:
What is assessment?
Generally, assessment means determination of tax or refund due, by Tax department, based on annual return, after affording an opportunity of being heard to the dealer.
The assessment has to be made on the basis of examination of the relevant books, records, documents, etc produced by the dealer in support of his return.
Generally, an assessment is for a year that is the financial year permissible and / or adopted by the dealer. In the given circumstances assessment can also be made for a part period.
What is the process of “Assessment”?
To determine and/or assess the liability, if any, to tax or the amount of tax or refund due to or set – off, deduction, etc the act provides for certain processes or procedures.
The process, in sequence, could be as follows: -
(1) The first step in process in Return by the dealer (including audit of the financial statements and furnishing particulars), as a part of self – assessment process.
(2) Thereafter, Tax department may:
i) Send an intimation for the tax or refund due; and / or
ii) Carry out an Audit of the business or the dealer; and / or
iii) Make an Assessment of the tax or refund due.
Based on the above, the tax may be recovered or refund may be granted.
(3) To aid the above process, the following proceedings may be of assistance:
a) Determination of disputed questions by the Commissioner; and
b) Advance Ruling [if any].
(4) If aggrieved by any Assessment or Determination, the dealer can file an appeal against assessment, etc.
(5) The Commissioner has a power to review any order or assessment or appeal. The Tax Department is also empowered to make a reassessment.
Apart from the above, the dealer may have to comply with the requirements of audit of accounts; obtaining declarations, etc.
They are broadly discussed for an overall undertaking.
What are the obligations of the dealer?
1. To attend on the appointed date and place either in person or through authorized representative.
2. To produce the books of accounts, records, documents, invoices, and such other information as may be required.
3. Support the returns and the claims, deductions, set – off, etc claimed therein.
Limited period
After the expiry of the specific period the Commissioner or the officer authorized by him cannot take the relevant action.
Effects of assessment on tax due / refund?
1. If any amount is paid towards intimation, then credit for the payment shall be given in the assessment, and
2. If no refund is found due or the amount refunded exceeds the amount refundable on assessment, then the whole or excess of the amount so refunded shall be deemed to be tax payable.
Intimation
What is intimation?
Intimation is a communication by Sales Tax department as a part of self – assessment procedure, pursuant of annual return, of the tax or refund due to or to the dealer.
It is deemed to be a notice either demanding the tax or determining the refund (which is, usually sent, pursuant to the Assessment).
When intimation is sent?
1. When Tax or Refund is due.
As per annual return, if any tax or refund is due to the dealer, the authorized officer shall give intimation thereof.
The tax due shall be determined on the basis of the annual return after deducting tax deducted at source and other taxes paid.
2. When no Tax or Refund due.
The acknowledgement of the annual return constitutes intimation.
Is there any limit for sending intimation?
Intimation can be sent within a specified period from the end of the financial year in which the annual return is to be filed.
What is assessment?
Generally, assessment means determination of tax or refund due, by Tax department, based on annual return, after affording an opportunity of being heard to the dealer.
The assessment has to be made on the basis of examination of the relevant books, records, documents, etc produced by the dealer in support of his return.
Generally, an assessment is for a year that is the financial year permissible and / or adopted by the dealer. In the given circumstances assessment can also be made for a part period.
What is the process of “Assessment”?
To determine and/or assess the liability, if any, to tax or the amount of tax or refund due to or set – off, deduction, etc the act provides for certain processes or procedures.
The process, in sequence, could be as follows: -
(1) The first step in process in Return by the dealer (including audit of the financial statements and furnishing particulars), as a part of self – assessment process.
(2) Thereafter, Tax department may:
i) Send an intimation for the tax or refund due; and / or
ii) Carry out an Audit of the business or the dealer; and / or
iii) Make an Assessment of the tax or refund due.
Based on the above, the tax may be recovered or refund may be granted.
(3) To aid the above process, the following proceedings may be of assistance:
a) Determination of disputed questions by the Commissioner; and
b) Advance Ruling [if any].
(4) If aggrieved by any Assessment or Determination, the dealer can file an appeal against assessment, etc.
(5) The Commissioner has a power to review any order or assessment or appeal. The Tax Department is also empowered to make a reassessment.
Apart from the above, the dealer may have to comply with the requirements of audit of accounts; obtaining declarations, etc.
They are broadly discussed for an overall undertaking.
What are the obligations of the dealer?
1. To attend on the appointed date and place either in person or through authorized representative.
2. To produce the books of accounts, records, documents, invoices, and such other information as may be required.
3. Support the returns and the claims, deductions, set – off, etc claimed therein.
Limited period
After the expiry of the specific period the Commissioner or the officer authorized by him cannot take the relevant action.
Effects of assessment on tax due / refund?
1. If any amount is paid towards intimation, then credit for the payment shall be given in the assessment, and
2. If no refund is found due or the amount refunded exceeds the amount refundable on assessment, then the whole or excess of the amount so refunded shall be deemed to be tax payable.
Intimation
What is intimation?
Intimation is a communication by Sales Tax department as a part of self – assessment procedure, pursuant of annual return, of the tax or refund due to or to the dealer.
It is deemed to be a notice either demanding the tax or determining the refund (which is, usually sent, pursuant to the Assessment).
When intimation is sent?
1. When Tax or Refund is due.
As per annual return, if any tax or refund is due to the dealer, the authorized officer shall give intimation thereof.
The tax due shall be determined on the basis of the annual return after deducting tax deducted at source and other taxes paid.
2. When no Tax or Refund due.
The acknowledgement of the annual return constitutes intimation.
Is there any limit for sending intimation?
Intimation can be sent within a specified period from the end of the financial year in which the annual return is to be filed.