Moneycontrol
Feb 17, 2016 08:22 AM IST | Source: PTI

RBI, SEBs to file AIR on remittances, power consumption

The Central Board of Excise and Customs (CBEC) in the Finance Ministry has issued a notification in this regard.


The revenue department asked the RBI to file Annual Information Return (AIR) on certain foreign remittances and state electricity boards on power used by certain kind of steel makers.


Expert said the directive is aimed at using the AIR route to detect cases of Service Tax and Excise evasion.


Over the past few years, the government has been collecting information from third party sources to detect cases of incorrect declarations and tax evasion.


The Central Board of Excise and Customs (CBEC) in the Finance Ministry has issued a notification in this regard.


"The medium of AIR has been extensively used in case of income tax and in recent times has been extended to indirect taxes as well. In continuation of the same the government announced two new categories of regulators who would be required to submit an AIR from the next fiscal year," M S Mani, Senior Director, Deloitte in India, said.


The notification makes it necessary for the the Reserve Bank and state electricity board (SEB) or an electricity distribution or transmission licensee to file an annual information return containing specific information.


The RBI is required to file an AIR containing information on remittances exceeding Rs 50 lakhs made by a service provider in India for receipt of services from overseas entities.


SEBs are required to file an AIR containing information on electricity consumed by certain manufacturers, using an induction furnace or rolling mill to manufacture specified goods.


"This would be a good benchmark to determine production in steel rolling mills. The information so provided will enable the Government to compare the same with the information provided by assessees and unearth cases of evasion and incorrect declarations," the Deloitte expert said.

Designated officers of the RBI and SEBs would be filing the respective AIR. The Service Tax and Central Excise (Furnishing of Annual Information Return) Rules, 2016 will come into force from the April, 2016.

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