TIOL-DDT 1081 · the untouched capture
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<strong><font color="#663399" size="3">TIOL-DDT 1081</font><br>
30.03.2009<br>
Monday </strong></font></div>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Import
of Pulses at nil rate of duty - extended</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
per Notification No. 21/2002 – Cus dated 1st March, 2002, [Clause (f)
of the preamble], import of pulses at nil rate of duty is valid till the 1st
day of April, 2009. Now this is extended till 1st day of April, 2010 and the
extension is done before its death!</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_028.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification
No. 28 /2009-Cus., Dated: March 26, 2009</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional
Anti- Dumping Duty Imposed on POY</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Government has imposed Provisional Anti Dumping Duty on imports of All Fully
Drawn or Fully Oriented Yarn/Spin Draw Yarn/Flat Yarn of Polyester (non-textured
and non – POY) falling under tariff item 5402 47 00 of the First Schedule
to the Customs Tariff Act, originating in, or exported from, the People's Republic
of China, Thailand and Vietnam.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The
anti-dumping duty imposed under this notification shall be effective up to and
inclusive of the 25th September, 2009.</font></strong></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_029.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification
No. 29 /2009-Cus., Dated: March 26, 2009</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisional
Anti- Dumping Duty Imposed on Flax fabric</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Government has imposed Provisional Anti Dumping Duty on imports of Flax fabric,
falling under the heading 5309 of the First Schedule to the Customs Tariff Act,
originating in, or exported from, the People's Republic of China and Hong Kong.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The
anti-dumping duty imposed under this notification shall be effective up to and
inclusive of the 25th September, 2009.</font></strong></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2009/ctariff09_030.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification
No. 30 /2009-Cus., Dated: March 26, 2009</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income
tax – TDS on payments to Non–residents – Form prescribed</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
per Section 195(1) of the Income Tax Act, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any
person responsible for paying to a non-resident, not being a company, or to
a foreign company, any interest or any other sum chargeable under the provisions
of this Act (not being income chargeable under the head “Salaries”
shall, at the time of credit of such income to the account of the payee or
at the time of payment thereof in cash or by the issue of a cheque or draft
or by any other mode, whichever is earlier, deduct income-tax thereon at the
rates in force :</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And
as per section 195(6),</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
person referred to in sub-section (1) shall furnish the information relating
to payment of any sum in such form and manner as may be prescribed by the
Board.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
the Board has prescribed the form and manner. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.
The information shall be furnished after obtaining a certificate from an accountant.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.
The information to be furnished shall be in Form No.15CA and shall be verified
in the manner indicated therein and the certificate from an accountant referred
to in sub-rule (1) shall be obtained in Form No. 15CB.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.
The information in Form No. 15CA shall be furnished electronically to the
website designated by the Income-tax Department and thereafter signed printout
of the said form shall be submitted prior to remitting the payment.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.
The Director-General of Income-tax (Systems) shall specify the procedures,
formats and standards for ensuring secure capture, transmission of data and
shall also be responsible for the day-to-day administration in relation to
furnishing the information in the manner specified.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
will come into force with effect from 1st July 2009</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2009/it09not030.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT
Notification No. 30 /2009., Dated: March 25, 2009</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income
tax – TDS & TCS – Forms and Rules Changed</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">Time
and mode of payment of TDS:</font></strong> normally within one week from the end of
the month in which deduction is made or income tax is due. AO can permit quarterly
payment. TDS has to be paid electronically and a Form 17 furnished electronically.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">Certificate
of tax deducted at source:</font></strong> the Certificates in Form 16 for salaries
and form 16A for others, shall be furnished to the deductee within one week
normally and within one month from the end of the financial year in which the
payment is made to the deductee in certain other cases – within fourteen
days from the date of payment of income-tax if the payment is made quarterly
- within one month from the end of the month in which the deduction of tax at
source is made, in all other cases.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">Quarterly
statement of deduction of tax or collection of tax:</font></strong> Every person who
has been allotted a tax deduction and collection account number under section
203A shall deliver, or cause to be delivered quarterly statements.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similar
provisions made for TCS. New Forms 16 and 16A have been notified.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2009/it09not031.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT
Notification No. 31 /2009., Dated: March 25, 2009</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">‘Guardians
of Economic Frontiers’ - Film on Customs – disappointing and untimely?</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I
persuaded many to watch the Customs film on NDTV and CNN – the Customs
officers who watched the film said there was nothing new or inspiring. The others
told me it was so boring, they could not watch it till the end. Further it was
election time and weekend – the channels were full of Varun Gandhi, elections
and full-scale entertainment – people were simply not interested in watching
a documentary on Customs. The film was truly Door Darshan type documentary,
but strangely it was not telecast through DD! Apparently even the government
has scant respect for DD. Government must have paid good money to NDTV and somebody
should have ensured that the subtitles are not obliterated by NDTV with its
own ad bits. If there was a little more planning, NDTV could have been told
not to tinker with the titles or the sub-titles could have been given at the
top or the centre, so that they could be viewed.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Long
ago there was a serial on Door Darshan – Customs file se and in 1993,
there was a Malayalam film Customs Dairy written by former Chief Commissioner
of Customs ASR Nair, both of which were far more attractive than the present
documentary.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
is not known who the film was meant for – anyway an effort had been made
and that itself is commendable. It takes huge efforts and planning to make a
film and we can criticise it without appreciating the hard labour that has gone
into it. To find fault is easy, but to create is tremendously difficult and
to make a 25 minute film on Customs is like putting an elephant in a bottle.
They bottled the elephant – Congrats! </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">ACES
inaugurated at Belapur Commissionerate – But does it work? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We
got this mail from a suffocated Netizen. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
CBEC website very proudly flashes the following news "ACES inaugurated
at Belapur Commissionerate on 23.03.2009". I am informed that it was
done by our Hon'ble Chairman, CBEC. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
But, dear Chairman Sir, does it work? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
friend of mine visited the Belapur Division office for a dealer's registration
last Monday. (Deliberately not mentioning the Division office to avoid 'avoidable
confrontations’). To his surprise, he was informed that the Department
does not accept Excise / Dealers registration applications hereinafter and
the same may be done via the net directly through a dedicated site (<a href="http://www.aces.gov.in/" target="_blank">www.aces.gov.in</a>).
He went through the formalities only to find that the system for obtaining
registration does not work. To be fair enough the website works. After filling
in the desired details, he is gifted with the desired login/user id and password.
But the online registration process simply did not respond after filling in
the relevant details. He tried again and again. The 'again' can go on and
on. The only message with comes is “Contact the System Administrator".
<font color="#FF6600"><strong>Now where does he search for this gentleman?</strong></font>
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So
what does he do now? He visits the Division office again with a request for
doing registrations (offline) as in the past. But he is informed that the
same would not work as the SACER system has been rendered defunct after the
ACES has been put to place. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So
here is a typical assessee who is waiting one week without registration hoping
against hope for the ACES system to bless him with the registration certificate.
We are in the year 2009 and this is the standard of computerisation and efficiency
that the Board wants all of us to be proud of. <strong><font color="#FF6600">And we are thinking
of GST in 2010 ??? </font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So
what is the status - No backup plan in place in case the Registration process
does not work!!! Shamefully, no concern for the unit who seeks to register
with the Department. Is it not for the Department to accept his registration
and at least assure him that his business would not be jeopardised because
the system does not respond. Since the last week, he is desperately concerned
over a business opportunity which he would lose in case he is not able to
deliver before March 31. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chairman
Sir!! This is just one example -- Technology or no Technology, the fate of
the assessee is just as bad as it was donkey years ago. Can you do something
to change the mindset and please tell the entire hierarchy to revisit the
'Citizens' Charter' and maybe implore them to go back to the basics -- that
the entire system should be used for serving the manufacturing/ trading /
importing / service community and not for creating nuisance value under the
guise of all the so called 'technical interpretations' et al. Forcibly stopping
myself for venting more of the frustration knowing very well that in this
system 'Honestly Nobody Cares'.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
A suffocated Netizen. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We
have a dynamic Chairman who is truly concerned and ready to solve problems and
had resolved several tricky issues. Let us hope he will solve this problem.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally
the Government already has a beautiful programme called SERMON which has all
the features of ACES and more. Why is the SERMON being dumped for ACES? I asked
a Commissioner closely connected with ACES, what was wrong with SERMON and how
was ACES better than SERMON except that SERMON is almost free and ACES costs
a few hundred Crores? His reply was that for a Department that collects a few
Lakh Crores a few hundred Crores is peanuts! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
what are they going to do with SERMON?</font></p>
<p align="center"><strong><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">–</font></strong></font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Tomorrow’s cases</font></strong></p>
<p align="justify"><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><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central
Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Appeals
– High Court has no power to condone delay- Limitation Act not applicable:
Supreme Court Larger Bench</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Supreme Court LB was of the view that the legislature provided sufficient time,
namely, 180 days for filing reference to the High Court which is more than the
period prescribed for an appeal and revision. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">FERA/FEMA</font></strong></p>
<p align="justify"><strong><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Acquisition
of property by residents abroad – no penalty because of an amendment in
Act, for acts before amendment – alternate remedy no bar when fundamental
rights are violated: High Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
petitioner has been an Indian citizen, holding an Indian Passport. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On
5.11.1999 he purchased a plot situated in Ludhiana at an open auction conducted
by the Debt Recovery Tribunal, Jaipur. On 18.2.2003, the Enforcement Directorate,
Jalandhar initiated investigation against the petitioner alleging that the plot
purchased by him in the open auction is an agricultural plot which the petitioner
had purchased by violating the provisions of FEMA Act. He was summoned and his
statement was recorded. On 13.3.2003 during the course of investigation the
respondent informed the petitioner that the plot purchased by him fell under
industrial zone and hence there was no violation of any penal law. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income
Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Bad
debts - deduction u/s 36(1)(vii) - After amendment in the Act burden is no longer
on assessee to establish that a debt has become bad - A bad debt decided on
basis of commercial wisdom becomes allowable once it is written off in accounts:
Bombay HC</font></strong></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CHALLENGING
the write-off of a bad debt has indeed become a bad appeal for the Revenue to
file! For decades this issue has been so 'bad' that the Legislature had to amend
the relevant Section to overcome the mischief of law and respect the wisdom
of a business if it writes off the same as irrecoverable and bad debt. In the
latest decision the Bombay HC has upheld the ITAT Special Bench decision in
the M/s Oman International Bank SAOG case,</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> and held that after the
amendment with effect from 1-4-1989, it is not obligatory on the part of the
assessee to prove that the debt written off by him is indeed a Bad Debt for
the purpose of allowance u/s.36(1)(vii).</font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Tomorrow with more DDT </font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice day.</font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail
your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
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