Circular No.ES/ 227 /2016-17 December 13, 2016
To: Members of the Council
Sub: Digital mode of payment while making financial transantions-past assessments
Dear Sir,
This is to inform you that Central Board of Excise and Customs has issued a Circular vide Instruction No. F.No.137.155.2012 - Service Tax dated 09.12.2016 on the above subject.
In order to curb generation of black money, the government has been taking steps to encourage people to shift towards digital mode of payment while making financial transactions
CBEC has clarified that in indirect taxes, past assessments of excise and service tax of assessees will not be reopened even if their turnover in the current period increases on account of digital payments in the wake of demonetisation. By adopting a digital mode of payment, no financial transaction would remain undisclosed and consequently an enhanced turnover might get reflected in the books of accounts
Members may kindly make note of the same.
Thanking you,
V. ANIL KUMAR
EXECUTIVE DIRECTOR
