TIOL-DDT 1055 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1055</font><br> 18.02.2009<br> Wednesday</strong></font></p> <p align="center"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tariff Value of Brass Scrap and Poppy Seeds Reduced</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has decreased the Tariff Value of Brass Scrap from 2966 US Dollars to 2775 and reduced the Tariff Value of Poppy Seeds from 3920 Dollars to 3793 Dollars. There is no change in the Tariff Values of other items.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2009/cnt09_020.htm" target="_blank">Notification NO. 20/2009 -CUSTOMS(NT), Dated: February 16, 2009</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Jurisdiction of Valuation Officers - Wealth Tax Rules Amended</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rule 3A of the Wealth Tax Rules has been amended: The rule with the amendments marked in <font color="#FF6600">red</font> is as follows:-</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>3A. </strong>Regional Valuation Officers shall exercise, within such areas as the Board may direct, general supervision over the work of District Valuation Officers, Valuation Officers and Assistant Valuation Officers.</font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">(2) District Valuation Officers, Valuation Officers and Assistant Valuation Officers shall perform the functions of a Valuation Officer in respect of such areas and in relation to such classes of assets as the Board may direct.</font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">(3) Where under any directions issued under sub-rule (2), the functions of a Valuation Officer in relation to any class of assets, being buildings or lands or any rights in buildings or lands, in respect of any area have been assigned to a District Valuation Officer, Valuation Officer and an Assistant Valuation Officer, such functions shall be performed by the District Valuation Officer, the Valuation Officer or, as the case may be, the Assistant Valuation Officer as provided hereunder:—</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(<em>i</em>) if the value of the asset as declared in the return made by the assessee under section 14 or section 15 exceeds Rs. 50 lakhs <strong>[<font color="#FF6600">Rs. 300 lakhs</font>] </strong>or if the asset is not disclosed or the value of the asset is not declared in such return or no such return has been made and the value of the asset, in the opinion of the Assessing Officer, exceeds the aforesaid amount, the functions shall be performed by the District Valuation Officer;</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(<em>ii</em>) if the value of the asset as declared in the return made by the assessee under section 14 or section 15 exceeds Rs. 10 lakhs <strong>[<font color="#FF6600">Rs. 40 lakhs</font>] </strong>but does not exceed Rs. 50 lakhs <strong>[<font color="#FF6600">Rs. 300 lakhs</font>] </strong>or if the asset is not disclosed or the value of the asset is not declared in such return or no such return has been made and the value of the asset, in the opinion of the Assessing Officer, falls within the aforesaid limits, the functions shall be performed by the Valuation Officer; and</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(<em>iii</em>) if the value of the asset as declared in the return made by the assessee under section 14 or section 15 does not exceed Rs. 10 lakhs <strong>[<font color="#FF6600">Rs. 40 lakhs</font>]</strong>, or if the asset is not disclosed or the value of the asset is not declared in such return or no such return has been made and the value of the asset, in the opinion of the Assessing Officer, does not exceed the aforesaid amount, the functions shall be performed by the Assistant Valuation Officer:] </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Provided </strong> that the District Valuation Officer referred to in clause (<em>i</em>) having jurisdiction in respect of the area may, if he considers it necessary or expedient so to do for the purpose of proper and efficient management of the work of valuation, himself perform such functions in relation to any asset referred to in clause (<em>ii</em>):]</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Provided further </strong> that] the Valuation Officer referred to in clause (<em>ii</em>) having jurisdiction in respect of the area may, if he considers it necessary or expedient so to do for the purpose of proper and efficient management of the work of valuation, himself perform such functions in relation to any asset referred to in clause (<em>iii</em>):]</font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">[(4) Where the valuation of any asset, being building or land or any right in any building or land, referred to the District Valuation Officer, the Valuation Officer or the Assistant Valuation Officer, as the case may be, is pending with him on the 12th July, 1996, being the date of commencement of the Wealth-tax (First Amendment) Rules, 1996,—</font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">(<em>i</em>) the District Valuation Officer shall transfer the reference to the Valuation Officer, if the value of the asset as declared in the return made by the assessee under section 14 or section 15 does not exceed Rs. 50 lakhs;</font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">(<em>ii</em>) the Valuation Officer shall transfer the reference to the Assistant Valuation Officer, if the value of the asset as declared in the return made by the assessee under section 14 or section 15 does not exceed Rs. 10 lakhs.</font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">"(4) Where the valuation of any asset, being building or land or any right in any building or land, referred to the District Valuation Officer, the Valuation Officer or the Assistant Valuation Officer, as the case may be, is pending with him on the 13th February, 2009, being the date of commencement of the Wealth-tax (Second Amendment) Rules, 2009, -</font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) the District Valuation Officer shall transfer the reference to the Valuation Officer, if the value of the asset as declared in the return made by the assessee under section 14 or section 15 does not exceed Rs. 300 lakhs;</font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) the Valuation Officer shall transfer the reference to the Assistant Valuation Officer, if the value of the asset as declared in the return made by the assessee under section 14 or section 15 does not exceed Rs. 40 lakhs."]</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Instead of tinkering with this archaic and ineffective law, the Government should seriously think of abolishing Wealth Tax. Maybe those with income of more than a Crore of rupees can be taxed two percent more.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2009/it09not016.htm" target="_blank">CBDT Notification NO. 16/2009, Dated: February 13, 2009</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Grant of benefits under (SFIS) – DGFT Clarifies</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per para 5.4 (v) of EPCG Scheme - FTP RE2007, “Foreign exchange counted towards fulfilment of EO (over and above the average) shall not be eligible for incentives/rewards under promotional measures/schemes”.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This clause has been deleted in FTP RE2008.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT had clarified in Policy Circular No.15/RE: 2008 (2004-2009) dated 4th July 2008 that so far as Service Providers are concerned, Para 5.4(v) of FTP RE2007 applies to foreign exchange earned during 1.4.2007 till 31.3.2008 and does not apply to foreign exchange earned prior to 1.4.2007 or after 31.3.2008. Service Providers have to first utilize foreign exchange earned during 1.4.2007 till 31.3.2008 for fulfilment of <strong><font color="#FF6600">pending EO under EPCG Authorisations (over and above the average, if any)</font> </strong> and SFIS would be entitled only on any additional foreign exchange earned during 1.4.2007 till 31.3.2008 thereafter.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now DGFT clarifies that “pending EO under EPCG Authorization (over and above average, if any)” means the duty saved export obligation which is pending over and above the minimum duty saved export obligation specified to be fulfilled in the prescribed block of years.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SFIS can therefore be granted on the foreign exchange earned during 1.4.2007 till 31.3.2008 in cases where the duty saved export obligation of the preceding “block” (i.e. the “block” prior to 1.4.2007) has been completed.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2008/dgft08cir062.htm" target="_blank">DGFT Policy Circular No. 62 (RE-08)/2004-2009, Dated : February 13, 2009</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC Chairman in the aircraft that narrowly missed hitting the President's Helicopter</strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/pcjha_ddt_feb18.jpg" alt="Legal Corner Icon" width="448" height="297" hspace="5" border="0" align="center"></b></strong></strong></strong></strong></strong></strong></strong></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Remember last week's spine chilling incident at Mumbai airport when a Delhi bound aircraft with over 150 passengers aboard had a narrow miraculous escape when Captain SS Kohli applied the brakes within 18 seconds of coming to know that the Presidential helicopter was on his runway and thus averting a major tragedy.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Chairman Mr. PC Jha was in that plane to Delhi. He had written <em>thank you </em> letters to the pilot and DGCA.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are all greatly relieved that Mr. Jha and the other passengers had that miraculous escape. It must have been a terrifying experience to know that you were so close to such a terrifying accident, but maybe you can smile that – after all nothing happened. We wish the Chairman all the best – maybe his best days are ahead.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>I believe there is an omnipresent God who answers our good deeds, </em>said the humble pilot, Kohli.</font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600">–Tomorrow's cases</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></b></strong></strong></strong></strong></strong></strong></strong></font></strong></font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise</strong></font></p> <p align="left"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Restriction in utilisation of CENVAT Credit – Rule 12CC of CER and 12AA of CCR challenged – Interim stay of CBEC's order granted – High Court</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RESTRAINING </strong>a manufacturer from utilising the CENVAT credit has serious civil consequences, because where a manufacturer purchases duty paid inputs and utilises the same in the manufacture of final product, then the said manufacturer under the Central Excise law is entitled to take credit of duty paid on the inputs and utilise the same in payment of excise duty payable on the final product.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax</strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Mayawati loses writ – Delayed service of notice – petitioner declined to accept the notice at three places - Wherever service of a notice is essential or critical, experience shows that it is a most difficult task to achieve - if a letter is properly addressed, it must be deemed to have been served- High Court</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SECTION 27</strong> of the General Clauses Act creates a statutory presumption to the effect that if a letter is properly addressed, it must be deemed to have been served - It would, therefore, be reasonable to hold that when service is effected by refusal of a postal communication the addressee must be imputed with the knowledge of the contents thereof.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax</strong></font></p> <p align="left"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Taxable event is rendering of taxable service., not raising of invoice or payment – High Court</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CAN</strong> you imagine Revenue raising a demand of service tax for the period when there was no tax was payable, simply for the reason that payment was received when it was taxable? It not only happened, but they went in appeal to the High Court after they lost it CESTAT.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Neither the Section nor the Rule even suggests that the taxable event is the raising of an invoice for making of payment.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns tomorrow for the judgements</strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until tomorrow with more <strong>DDT</strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Day.</font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p> </body> </html>