TIOL-DDT 1057 · 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 1057</font><br> 20.02.2009<br> Friday</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tax Return Preparer Scheme extended to TDS and Service Tax</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government of India have decided to enlarge the scope of the existing Tax Return Preparer (TRP) Scheme and authorize them to prepare and furnish returns of Tax Deducted at Source (TDS) and Service Tax, in addition to income-tax returns. To carry out this decision, the Central Board of Direct Taxes has decided to retrain the TRPs. For this purpose, a retraining course consisting of 15-day self-study followed by classroom training will be organized for TRPs relating to Income Tax and for Service Tax, according to a CBDT Press Release.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The massive ignorance at the highest echelons of the bureaucracy is sometimes paraded with absolute innocence. The CBDT press release states, <strong>“The Central Board of Excise & Customs has already amended the Service tax Act to enable TRPs to prepare and file Service Tax returns”.</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Obviously, the CBDT official who gave this Press Release is not aware that</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. There is no Service Tax Act.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Even if there is one, the CBEC cannot amend an Act.</font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Elementary? But couldn't they just walk down to the CBEC, just a few feet away and find out what had been done? No, Babus are never on walking terms or talking terms – they will only enter into protracted correspondence with a colleague sitting just next to them.</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Satyam Scam - Measures to prevent recurrence of financial scams</strong></font></p> <ul> <li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">Various agencies including Serious Fraud Investigation Office, Securities and Exchange Board of India, Andhra Pradesh state CID, etc. are investigating into possible violation of various Acts, Rules and Regulations administered by the respective agencies.</font></li> </ul> <ul> <li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">In particular, SEBI is investigating possible violations of SEBI Act 1992, SEBI (Prohibition of Fraudulent & Unfair Trade Practices) Regulations, 2003 and SEBI (Prohibition of Insider Trading) Regulations, 1992 among others.</font></li> </ul> <ul> <li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">SEBI has also ordered inspection of the documents available with the Auditors. Besides, books, records and documents of the company are being examined. SEBI has completed examining and recording statements of both Raju brothers (promoters).</font></li> </ul> <ul> <li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">Based on the recommendations of the Advisory Committee on Disclosures and Accounting Standards (SCODA) on January 9, 2009, SEBI had asked market participants to undertake peer review of the working papers (relating to financial statements of listed entities) of auditors in respect of the companies constituting the NSE - Nifty 50, the BSE Sensex and some listed companies outside the Sensex and Nifty chosen on a random basis.</font></li> </ul> <ul> <li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">The peer review will be undertaken by a SEBI prepared panel of auditors. Further SEBI has issued necessary amendments to provide for "event based" as well as "periodic disclosures" about pledging of shares by promoters.</font></li> </ul> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This information was given by Minister of State for Finance, Pawan Kumar Bansal in reply to a question in Rajya Sabha yesterday.</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Requirement of PHA release order for import of raw cashew nuts – DGFT Clarifies</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Conditions on import of raw cashew nuts:-</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) Ministry of Health & Family Welfare will seek the opinion of the Technical Committee in their Ministry on the issue whether raw cashew nut is an edible item covered under PFA Act or not. For the interim period, till the report of the Technical Committee is received, import consignment of raw cashew nut shall be released by customs authorities without insisting for a customs bond for re-processing as provided in Clause (1) of Section 143 of the Customs Act, 1962; and</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) During this interim period, customs will draw samples of imported raw cashew nut in the country, on a random basis, and send to PFA authorities for testing. However, the clearance of import consignments will not await receipt of test report from PFA authorities.</font></p> </blockquote> <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/dgft08cir063.htm" target="_blank">DGFT POLICY CIRCULAR No. 63 (RE-2008/2004-09) Dated: February 18, 2009</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>926 branches of Banks to accept Advance Income Tax</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As many as 926 computerised branches of public and private sector banks will receive advance income tax in Mumbai and Navi Mumbai. These arrangements have been made for the convenience of the Income Tax assesses. Of the 926 bank branches 862 branches are public sector bank branches, 35 HDFC bank branches, 10 ICICI bank branches and 19 AXIS bank branches. The Reserve Bank of India has advised income tax assesses to take advantage of these standing arrangements made for their convenience.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Long queues and inconveniences can be avoided at the Reserve Bank of India counters if the assesses in Mumbai and Navi Mumbai utilise the services being made available at various designated branches of the banks and deposit their Income Tax dues well in advance of the last date.</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Is Authority for Advance Ruling a Tribunal?</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Delhi High Court answered this question in an order which we bring you today. In this interesting decision the Delhi High Court has overruled the ruling of the Authority for Advance Ruling (Income Tax) given in the case of a UAE -based business entity whose liaison office (LO) in India was treated as Permanent Establishment (PE) for establishing business connection. While rendering withdrawal of Sec 148 notice necessary as it was based on the ruling of the Advance Ruling Authority, the Bench left it open to the Revenue to reopen assessments if any other legally sustainable ground is available with it.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See <strong>Breaking News</strong></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">–Monday'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="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Limitation - Show Cause Notice issued after six months after investigation is completed – referred to Larger Bench - CESTAT</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> there are two views on the said issue as to whether in such circumstances notice is required to be held as barred by limitation or not, Tribunal wanted the same to be resolved by a larger bench.</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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">Intimation under section 143(1)(a) of the Act cannot be sought to be revised under section 263 of the Act – Members do not agree on the issue to be referred to Third Member even after acrimonious correspondence – when two reasonable views are possible, the view which is favouring the assessee has to be taken - ITAT</font></strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>On the difference, the Members could not agree on the question which should be referred u/s 255(4) of the I.T.Act . There is unfortunate and acrimonious correspondence between the two learned Members on the question to be referred. However, no decision could be reached between the members and, ultimately, both the Members were transferred out of Agra Bench. The Registry, therefore, noted that this file was pending for disposal and sent the file to the President for disposal.</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> President noted that the only question that arises for his determination is whether provisions of Section 263 are applicable to an intimation sent u/s 143(1) of the Income Tax Act.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs</strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CHA licence can be suspended for violation of Customs Act; Statement under the Customs Act can be used to suspend CHA; CHA acting on behalf of the importer has an obligation to ensure that entries made in the Bill of Entry are correct. – High Court</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong> case had travelled through all possible channels of adjudication and appeals and writs. It appears that in 2002-03, the appellant acted as a CHA for certain importers, including, E.I. Dupont India Ltd, M/s Sight & Sound India and M/s Sound Terrific. The appellant in his capacity as the CHA filed 14 bill of entries in respect of imports made by E.I. Dupont India Ltd.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Monday for the judgements</strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more<strong> DDT</strong></font></p> <p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Weekend.</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>