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Everything to know about The Provisional Collection of Taxes Bill, 2023

Parliament has passed The Provisional Collection of Taxes Bill, 2023 on 20 December, 2023. In this article, we will discuss and list down all key provisions of the Bill which are as follows:


Applicability of Law:


Law provided that where Law is introduced in Parliament on behalf of the Government provides for the imposition or increase of a duty of customs or excise with or without change in tariff classification, the Central Government may cause to be inserted in the Bill a declaration that it is expedient in the public interest that any provision of the Bill relating to such imposition or increase shall have immediate effect under this Act.


Here are following key points:

  1. Applicable when Law is introduced like Finance Act

  2. Declaration in such law needs to be inserted for immediate imposition or increase. (even if Bill is not passed by the Parliament).


Date from when increased duty is Enforced


A declared provision shall have the force of law immediately on the expiry of the day on which the Bill containing it is introduced. (i.e. from the next day)


Life of the Such Provision

Such Provision will lapse when:


a. When such provision for increase/imposition is being enacted into Act either in original or amended form.


b. When the Central Government, in pursuance of a motion passed by Parliament, directs, by notification in the Official Gazette, that it shall cease to have the force of law.


c. If not lapsed on account of above clauses, then on expiry of 75 days from day on which the Bill containing it was introduced.


Refunds in Certain Cases


a. When such imposition or increase has been enacted in amended form: In that case, Refund will be (Amended Duty Rate- Duty proposed in Bill) subject to maximum of (Duty Proposed in the Bill - Actual Duty Rate as was existent on day of introduction of Bill).


b. In case such bill lapsed due to reasons as mentioned in clause b & c above, Refund will be (Duty Proposed in the Bill - Actual Duty Rate as was existent on day of introduction of Bill).


Repeal of Old Law


The Provisional Collection of Taxes Act, 1931 is hereby repealed.


Copy of Bill


The_Provisional_Collection_Of_Taxes_Bill,_2023
.pdf
Download PDF • 67KB


Disclaimer: We have taken due care to the best of our knowledge while explaining the provisions surrounding the issue purely for informational/academic purpose. It should not be considered as professional advice or consultancy to be relied upon. While due care has been taken by Fab Gyan in preparing this article, certain mistakes and omissions may creep in. The Fab Gyan or its Author does not accept any liability for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon.


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