Home India Ministry of Law and Justice The Provisional Collection of Taxes Act, 2023....
Date: 29-Dec-2023 Category: Extra Ordinary State: Union Government Country: India

The Provisional Collection of Taxes Act, 2023.

Issued by Ministry of Law and Justice · Legislative Department

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Executive Summary & Key Takeaways

What it means

  • The gazette notification publishes the Provisional Collection of Taxes Act, 2023 (Act No. 50 of 2023), which received the President's assent on December 28, 2023.
  • The Act provides for the immediate effect, for a limited period, of provisions in Bills relating to the imposition or increase of duties of customs or excise.

Key Changes

  • The Central Government can insert a declaration in a Bill related to imposition or increase of customs or excise duties, stating that the provision should have immediate effect in the public interest.
  • A declared provision comes into force immediately upon the expiry of the day the Bill is introduced.
  • The declared provision ceases to have force of law when it becomes an enactment (with or without amendment), when the Central Government directs it via notification after a Parliament motion, or 75 days after the Bill's introduction if neither of the previous conditions occur.
  • Refunds are mandated if the declared provision becomes law in an amended form before the 75-day expiry, for duties collected that wouldn't have been collected under the enacted provision. The refund rate cannot exceed the difference between the proposed duty in the declared provision and the duty in force when the bill was introduced.
  • Refunds are also mandated if the declared provision ceases to have force of law due to a government notification or after 75 days.
  • The Provisional Collection of Taxes Act, 1931 is repealed.

Impact Analysis

Businesses Importing/Exporting Goods

  • Action Items: Establish a system to track relevant bills, analyze their potential impact, and prepare for immediate implementation of duty changes.

Businesses Subject to Excise Duty

  • Action Items: Establish a system to track relevant bills, analyze their potential impact, and prepare for immediate implementation of duty changes.

Government Revenue

  • Action Items: Government agencies need to ensure efficient implementation and communication of new duty structures.

Consumers

  • Action Items: Monitor price changes and adjust spending habits accordingly.

Accounting and Finance Departments

  • Action Items: Update accounting systems to accommodate immediate duty changes, train staff on new procedures, and establish a process for claiming refunds when applicable.

Key Entities Referenced

Parliament: The legislative body responsible for enacting the law. Central Government: The executive branch responsible for implementing the law and issuing notifications. Ministry of Law and Justice (Legislative Department): The government body responsible for publishing the Act. The Provisional Collection of Taxes Act, 2023: The new Act that allows for immediate effect of duty changes. The Provisional Collection of Taxes Act, 1931: The repealed Act.
Official Source Record View Original Source →
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jftLVªh lañ Mhñ ,yñ—(,u)04@0007@2003—23 REGISTERED NO. DL—(N)04/0007/2003—23 सी.जी.-डीx.एxलx.G-अI.D-2H9x12x2x023-250963 CG-DL-E-29122023-250963 xxxGIDExxx vlk/kkj.k EXTRAORDINARY Hkkx II — [k.M 1 PART II—Section 1 izkf/kdkj ls izdkf'kr PUBLISHED BY AUTHORITY lañ 58] ubZ fnYyh] 'kqØokj] fnlEcj 29] 2023@ikS"k 8] 1945 ¼'kd½ No. 58] NEW DELHI, FRIDAY, DECEMBER 29, 2023/PAUSHA 8, 1945 (SAKA) bl Hkkx esa fHkUu i`"B la[;k nh tkrh gS ftlls fd ;g vyx ladyu ds :i esa j[kk tk ldsA Separate paging is given to this Part in order that it may be filed as a separate compilation. MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 29th December, 2023/Pausha 8, 1945 (Saka) The following Act of Parliament received the assent of the President on the 28th December, 2023 and is hereby published for general information:— THE PROVISIONAL COLLECTION OF TAXES ACT, 2023 NO. 50 OF 2023 [28th December, 2023.] An Act to provide for the immediate effect for a limited period of provisions in Bills relating to the imposition or increase of duties of customs or excise. BE it enacted by Parliament in the Seventy-fourth Year of the Republic of India as follows:— 1. This Act may be called the Provisional Collection of Taxes Act, 2023. Short title. 2. In this Act, a “declared provision” means a provision in a Bill in respect of which Definition. a declaration has been made under section 3.2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—SEC. 1] Power of 3. Where a Bill to be introduced in Parliament on behalf of the Government provides Central for the imposition or increase of a duty of customs or excise with or without change in tariff Government classification, the Central Government may cause to be inserted in the Bill a declaration that to make declaration. 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. Effect of 4. (1) A declared provision shall have the force of law immediately on the expiry of declarations the day on which the Bill containing it is introduced. under this Act, and (2) A declared provision shall cease to have the force of law under the provisions of duration this Act— thereof. (a)when it comes into operation as an enactment, with or without amendment; (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; or (c)if it has not already ceased to have the force of law under clause (a) or clause (b), then on the expiry of the seventy-fifth day after the day on which the Bill containing it was introduced. Refunds to be 5. (1) Where a declared provision comes into operation as an enactment in an amended made in form before the expiry of the seventy-fifth day after the day on which the Bill containing it certain cases. was introduced, refunds shall be made of all duties collected which would not have been collected if the provision adopted in the enactment had been the declared provision: Provided that the rate at which refunds of any duty may be made under this sub-section shall not exceed the difference between the rate of such duty proposed in the declared provision and the rate of such duty in force when the Bill was introduced. (2) Where a declared provision ceases to have the force of law under clause (b) or clause (c) of sub-section (2) of section 4, refunds shall be made of all duties collected which would not have been collected if the declaration in respect of it had not been made. Repeal. 6. The Provisional Collection of Taxes Act, 1931 is hereby repealed. 16 of 1931. ————— S.K.G. RAHATE, Secretary to the Govt. of India. UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002 AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054. MGIPMRND—537GI(S3)—29-12-2023.

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