TIOL-DDT 107 · the untouched capture
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<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"><b><font color="#0000FF" size="3">TIOL-DDT 107</font><br> 04 05 2005<br> Wednesday</b></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Review by the Committee of Chief Commissioners - A simple solution</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In response to our news report yesterday on the subject of review, my good friend and noted writer in Taxindiaonline.com, Mr Raghavendra Rao offers a simple solution to the problem.<br> <br> In the Finance Bill 2005, Section 35 B and Section 35 E were proposed to be amended to the effect that the Orders of the Commissioner (Appeals) and Commissioners will be reviewed by a Committee of two Chief Commissioners to be constituted by the Board. However, certain amendments have been made in the earlier proposal and the orders of Commissioner (Appeals) are to be reviewed by the Committee of two Commissioners and as far as the orders of the executive Commissioners are concerned, there is no change in the earlier proposal and are continued to be (proposed) to be reviewed by the Committee of two Chief Commissioners. The implications of the recent changes and possible anomalies have been discussed in yesterday’s TIOL news report.<br> <br> While the initial proposal of review by the Committee of two Chief Commissioners is apparently aimed at producing fairly qualitative reviews, thereby reducing frivolous appeals, if we look at the recent change to bring in yet another Committee of two Commissioners, we find it is not without any valid reasons.<br> <br> When it comes to review, the stipulated time period for review of orders of Commissioners is a <u><b>maximum of one year</b></u> from the date of the decision or order (Section 35 E (3)), for the Orders passed by the Commissioner (Appeals), the maximum time available is <b>three months</b> from the date of communication of the order.<br> <br> If the orders of the Commissioner (Appeals) are also to be reviewed by the Committee of Chief Commissioners as proposed earlier, it may not be possible to complete the review within the stipulated period of three months considering the practical difficulties and there is every possibility that the there may be delay in filing the appeals. <br> <br> To overcome the above difficulty, instead of brining in another Committee of Commissioners, Section 35 B could have been amended to increase the time limit for filing appeals by the department to one year on par with the Commissioners’ orders! <br> <br> Of course, the views expressed are his personal ones. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006633">Abatement under Central Excise and Service Tax – Advisory Committee set up.</font></b><br> <br> Under Section 4A of the Central Excise Act, an abatement is given from the retail price to decide the assessable value for paying the tax. This abatement has been quite controversial with industries demanding higher abatement and Government conceding quite often. But Audit is a spoil sport and they have been raising objections that the abatement given is too high. Similarly in Service Tax, abatement is given to fix the value of taxable services. <br> <br> In his Budget speech the Finance Minister had announced that a Committee would be set up to advise the Government on the quantum of abatement to be given. Now the Finance Ministry has constituted the Committee under the Chairmanship of the CBEC Member (Central Excise) with the Member (Service Tax) as Co Chairperson . The JS TRU will be the Member Secretary. The Committee can co opt officers from the concerned ministries as members and take members from the trade and experts as special invitees. The whole process of determining the quantum of abatement is going to be more transparent. They should take a member from the CAG’s office and take an assurance from him that no audit objection will be raised on the abatement issue after the Committee has taken a decision. <br> <br> <font color="#006633"><b>Rs. 100 Crore TIN in place</b></font><br> <br> Government has approved setting up of the Phase-II of Tax Information Network (TIN) at a cost of Rs. 100 Crores. It will begin from 01.07.2005. It consists of facilities for dematerialization of TDS certificates and electronic filing of Annual Information Returns. Dematerialization of TDS certificate will enable paperless filing of returns on internet. Phase-I of TIN has become operational. It consists of facilities for ‘On Line Tax Accounting System’ and electronic filing of TDS returns. <br> <br> <font color="#006633"><b>Why Lawyers and Doctors are not subject to Service Tax?</b></font><br> <br> <b>“Since these Services are directly in relation to well being of the common man they have not been levied to Service Tax”</b> . This is what Mr. S.S. Palanimanickam, Minister of State for Finance, told the Rajya Sabha yesterday. The Minister gave another <b>interesting piece</b> of information.<br> <br> These are the taxable services:-</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1. Telephone<br> 2. General Insurance<br> 3. Stock Brokers<br> 4. Advertising<br> 5. Courier<br> 6. Radio Paging<br> 7. CHA<br> 8. Steamer Agents<br> 9. Air Travel Agents<br> 10. Mandap Keepers<br> 11. C&F Agents<br> 12. Rent a Cab<br> 13. Consulting Engineer<br> 14. Manpower Recruitment<br> 15. Tour Operators<br> 16. Architects<br> 17. Interior Decorators<br> 18. Underwriters<br> 19. Credit Rating<br> 20. Chartered Accountants<br> 21. Cost accountants<br> 22. Company Secretary<br> 23. Real Estate Agents<br> 24. Security<br> 25. Market Research<br> 26. Management Consultants<br> 27. Scientific & Technical Cons<br> 28. Photography<br> 29. Convention Services<br> 30. Leased Circuits<br> 31. Telegraphic Services<br> 32. Telex Services<br> 33. Facsimile Services<br> 34. Online Information<br> 35. Video Recording<br> 36. Sound Recording<br> 37. Broadcasting<br> 38. Insurance Auxiliary<br> 39. Banking & Other Financial<br> 40. Port Services<br> 41. Authorised Service Stations<br> 42. Insurance Auxiliary (Life)<br> 43. Cargo Handling<br> 44. Storage & Warehousing<br> 45. Event Management<br> 46. Rail Travel Agents<br> 47. Health Clubs<br> 48. Beauty Parlour<br> 49. Fashion Designers<br> 50. Cable Operators<br> 51. Dry Cleaners<br> 52. Business Auxiliary<br> 53. Commercial Coaching<br> 54. Commissioning & Installation<br> 55. Franchise Services<br> 56. Internet Café<br> 57. Maintenance & Repair<br> 58. Technical Testing & Certification<br> 59. Outdoor Caterers<br> 60. Pandal & Shamiana Keepers<br> 61. Business Exhibition Services<br> 62. Airport Services<br> 63. Transport of Goods by Air<br> 64. Survey & Exploration of Minerals<br> 65. Opinion Poll Services<br> 66. Intellectual Property other than copyright<br> 67. Forward Contract<br> 68. TV or Radio Programme Production<br> 69. Construction services in respect of commercial or Industrial buildings <br> 70. Travel Agents<br> 71. Goods Transport Agency Services<br> <br> It would be nice if the Service Tax offices prominently display this list for the information of the public and the departmental officers. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>DDT’s Question for the day.</b><br> <br> <b>What is</b> <b><font color="#006633">mutatis mutandis</font></b>? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF6666">Until Tomorrow with more DDT<br> <br> Have a Nice Day. <br> <br> Mail your comments to</font></b> <b>vijaywrite@taxindiaonline.com</b> </font></p> </body> </html>