Handling notice – an Art, Experience or Culture

Hello each and all wish you all Happy Onam,

Greetings!

Thank you for your time and wish you all happy reading.

Meaning of notice in general is “the fact of observing or paying attention to something”.

The notice / s, we mean the departmental notice from Income Tax, GST, EPFO, ESI, POSH, Professional Tax, Karnataka Shops and Establishments etc to the business /business owners / Director’s / corporates / individuals, etc for being non-compliant or not adhering to the rule of the land as the case may be from time to time. It may be referred to as Show Cause Notice – SCN.

Why are we getting the notices, the unwanted guest:

  1. Being an un registered business, when otherwise required under the law / rule.
  2. By filing defective return / s.
  3. Being non-compliant, the major / top reason.
  4. Non payment or delayed payment of taxes.
  5. Claiming an incorrect refund.
  6. Claiming an incorrect inputs in GST.
  7. Through informers.
  8. Big Data, like social medias.
  9. AI – Artificial Intelligence.
  10. Others.

Types of notices being:

  1. Income Tax notices:
  2. Notice under Section 142(1) – Inquiry before assessment.
  3. Notice under Section 143(2) – Scrutiny Notice.
  4. Notice under Section 143(1) – Letter of Intimation.
  5. Notice under Section 148 – Income escaping assessment.
  6. Notice under Section 156- Notice of Demand.
  7. Notice under Section 139(9) – Defective Return.
  8. Notice under Section 245 – Set off of refunds against tax remaining payable, etc.
  9. eTDS Notices:
  10. Non filing.
  11. Short remittance, etc.
  12. GST Notices:
  13. GSTR-3A – Default notice to non-filers of GST returns in GSTR-1 or GSTR-3B or GSTR-4 or GSTR-8.
  14. CMP-05 – Show cause notice – Questioning the eligibility to be a composition dealer.
  15. REG-03 – GST registration notice for additional clarification.
  16. ADT-01 – Notice for conducting audit by Tax authority under Section 65
  17. DRC-16 – Notice for attachment and sale of immovable/movable goods/shares under section 79, etc.
  18. The Karnataka Shops and Commercial Establishments Act, 1961.
  19. The Karnataka Tax on Professions, Trades, Calling and Employment Act 1976 – Professional Tax – PT.
  20. The Contract Labour (Regulation and Abolition) Act, 1970.
  21. The employees state insurance Act, 1948.
  22. The employees provident fund act, 1952.
  23. The Food Safety and Standards Act, 2006 – FSSAI.
  24. The ROC / MCA notices.
  25. Legal Metrology Act, 2009.
  26. Protection of Women from Sexual Harassment Act, 2013 – POSH.

Modes of notices:

  1. On line – through registered Email ID.
  2. Off line – through snail mail / India Post.

Handling notices:

  1. We have to make sure the genuineness of the notice by checking the Email ID, DIN – Document Identification Number, etc.
  2. We have to read between the lines.
  3. Be cool, calm and composed.
  4. Find out the due date.
  5. Please gather the evidences, supporting documents, tax / payment challans, filed returns, etc as per the notice.
  6. Please do reply on your own with calculated risk. We strongly suggest you to please keep in touch with your tax expert / legal expert / professional consultant who is having relevant experience.
  7. Please keep a tab.
  8. Please make sure to close the loop on time as appropriately as per the prevailing Act, rules as the case may be.

Consequences of non-reply / non-compliant:

  1. One can become non-compliant by ever replying to notice/s.
  2. Late filing fees / penalties / interest.
  3. Suspension / cancellation of registration.
  4. Prosecution u/s Section – 276B of IT Act, 1961 – As per the prosecution (Sec 276B), if any person fails to pay the credit to the Central Government, then the TDS deducted by him as per the provisions of Chapter XVII-B, he / she will be entitled to receive rigorous punishment of minimum three months, which can be extended up to seven years. The punishment depends upon the circumstances of the investigation made by the designated tax authority / assessment officer.
  5. You can also taste the free food, on a lighter note, with due respect to the rule of the land.

To Conclude, one need not be worry at all, as long as being compliant, ethical and legal.

No one is greater than our mother India. Our first and top most priority is to respect our mother India by following our rule of the land. In case, if you get any notice / wrong notice, it is advisable to keep in touch with the expert.

Special Note: The above article / listing / blog is indicative only and not exhaustive. One being compliant, need not think of any notice or at least he / she can state the fact and safe guard against wrong notices, if any.

About Ganashri

At Ganashri, we help to build the nation by giving the quality services to our clients on time every time. Ganashri is Tax and Accounting advisory firm based out of Bangalore, India. Ganashri started its operations in June 2018. Our business sustainability is depending upon the triple bottom line, i.e., Planet, People and Profit.

Thank you again and stay tuned to us

Ganashri Advisers India LLP | https://www.ganashri.com | cg@ganashri.com | +91 94801 18310 | +91 83106 26652

Disclaimer

“This document is issued in the general interest of knowledge transfer purpose and it cannot be construed in any other manner whatsoever.”

Handling notice – an Art, Experience or Culture