REVAMPING MRA’s IDENTITY
Download
Report
Transcript REVAMPING MRA’s IDENTITY
05 June 2015
Amendments brought to VAT
Act & MRA Act by the
Finance Act 2015
Presented By
Mario Hannelas
Large Taxpayer Department
Electronic Fiscal
Devices
New Section 19 A inserted to provide for
implementation of EFD
Project expected to be implemented in the course of
FY 2015-2016
VAT Registered persons in specified trade activity
will be requested to install EFD to record all
supplies made
The EFD shall be of such type, description and
usage as may be prescribed
VAT INVOICES
Amendment to Section 20 provides for VAT invoice to
state:
Whether or not supply is subject to VAT
Where the supply is subject to VAT:
The value of the supply
The amount of VAT chargeable and
The rate applied
Effective as from 01 July 2015
Time Limit to Claim
Credit for input tax against output tax
Amendment to Section 21 (6) provides for an
extension of the delay for claiming input tax by 12
months i.e from 24 months to 36 months
Effective as from 14 May 2015
Time limit for
repayment
Amendment to Section 24 provides for statutory
delay of 45 days for effecting repayment to run as
from the date of submission of documentary
evidence, where such request is made
Effective as from 14 May 2015
Amendment to
Penalty Provisions
Section 26 (non-submission of return by due date)
and Section 27 (late payment of tax)
Distinction between small enterprise and other
VAT registered persons
Small enterprise defined as a person whose annual
turnover does not exceed Rs 10M
Maximum penalty to be charged to a small
enterprise is for non submission of return by due
date Rs 5000 instead of Rs 20,000 and for late
payment of tax 2% of unpaid tax instead of 5%
Effective as from 14 May 2015
DEDUCTION FROM
VAT BY PSA
Amendment to introduce New Part VI A to
provide for Public Sector Agency (PSA) to deduct
an amount from VAT
PSA defined as including a Ministry, Government
department, a local authority, a statutory body
and the Rodrigues Regional Assembly
PSA must deduct/retain and remit to MRA 30%
(for construction contracts)/50%
(for other
contracts e.g cleaning, security) of VAT charged on
invoice received on contracts exceeding Rs
300,000
DEDUCTION FROM VAT BY
PSA (CONTD)
Amount retained/deducted by PSA
Considered to have been paid by the VAT
registered person as VAT in the month of
deduction
May be set off against VAT payable for the taxable
period in which the VAT is deducted
Where VAT deducted exceeds VAT payable, VAT
refund to be effected
DEDUCTION FROM VAT
PSA (CONTD)
Remittance of amount deducted
PSA to remit the amount so deducted within 20 days from
the end of month in which deduction effected
Late payment penalty of 5% applies
in case of late
Interest rate of a 0.5% applies
remittance
Effective date to be fixed by Proclamation
Amendment to introduce
new Part VI B
VAT relating to small Business
Small business may operate the VAT Annual Accounting
System (VAAS)
Appropriate for small businesses not mainly engaged in zerorated supplies
Effective as from 01 July 2015
Amendments for
VDIA Provisions
Section 73 amended by insertion of new provision
10A
Applicable where: Taxpayer has made a VDIA declaration and made
agreement for payment of tax declared on VDIA
Director-General is debarred in respect of the VDIA period
from:
Asking information, documents, return, or
Making an assessment or claim
Amendments for
VDIA Provisions
Where taxpayer has been assessed and
assessment or claim is under objection or before
ARC, assessment or claim is deemed to have
lapsed.
Provisions do not apply where
Director-General applies expart to Independent Tax Panel
Proves to the satisfaction of Panel that there is prima
facie evidence of fraud; and
Obtains authorisation of I.T.P to proceed
Effective date to be fixed by Proclamation
Extension of zero-rating
Fifth Schedule amended to include:
Chilled deep sea water used for provision of air
conditioning services
Effective from – 14 May 2015
Threshold for compulsory Registration
Annual Turnover of Taxable supplies
Threshold increased from 4M to 6M
Effective from 01 June 2015
Amendment to Sevnth
Schedule
Remove from Part II of following items
Mineral waters, aerated waters and soft drinks
Alcoholic drinks
Effective from 01 January 2014 (Provision was
in fact suspended administratively)
Amendment to Ninth Schedule
Clarification in respect of item 13
Exemption available only to private hospital under the
Private Health Institution Act
Not available to Nursing Homes & Residential Care
Homes
Addition of New Items:
15 – Person engaged in bio-farming project exempted
on materials for exclusive use or in furtherance of boifarming
16 – Company engaged in exploration of petroleum
products exempted on plant machinery & equipment
for exclusive in the exploration and production of
petroleum products
Amendment to Tenth
Schedule
Removal from compulsory registration of “Dealers
registered with the Assay Office under the
Jewellery Act”
Addition of “Agent in the importation of second
hand cars and other motor vehicles”
Effectively Date 01 June 2015
List of agents to be obtained from Customs? Or
Ministry of Commerce? Communique to be issued
Amendment to Twelfth
Schedule
Refund of VAT on residential buildings/apartment
Construction period extended to 30 June 2018
Amendments brought to
MRA Act
Assessments or claims
All assessments or claims issued by MRA to specify:
The amount of deduction disallowed, the reasons thereof;
The basis for the computation of the amount and its
justification
The reasons for making the assessments or claim
Amendments brought to
MRA Act
Discretionary Powers
MRA to issue statement of Practice specifying the
circumstances in which the discretionary powers are
exercised.
Independent Tax Panel
New Part IV A inserted to provide for the setting up of an
Independent Tax Panel