TIOL-DDT 1145 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1145 </font><br>
02.07.2009 <br>
Thursday </strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Income Tax – TDS - Remittances to non-residents under section 195 - Procedure for furnishing information</font> </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY</strong> Circular No. 4/2009 dated 29.06.2009, CBDT had issued instructions on the new regime with effect from 1.7.2009. (Please see <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=9254" target="_blank">DDT-1143-30.06.2009</a></strong>)<strong>. </strong>In that Circular, Board had informed that Directorate General of Income-tax (Systems) shall specify the procedures, formats and standards for running of the scheme as well as instructions for filling up Forms 15CA and 15CB.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the procedure has been announced.</font></p>
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<blockquote><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Form 15CA should be used for furnishing information of remittances in e-mode in accordance with the provisions of section 195 (6) of the Income-tax Act, 1961. The information should be furnished after obtaining a certificate in Form 15CBfrom an accountant as defined in the Explanation to section 288 of the Incometax Act, 1961. The print out Form 15CA should be signed and submitted to the Reserve Bank of India/authorized dealer prior to remitting the payment.</font></blockquote>
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<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The Form should be furnished at the website of the Tax Information Network -<strong> <a href="http://www.tin-nsdl.com/" target="_blank">www.tin-nsdl.com</a></strong>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Fields marked with (*) are mandatory.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Select the values from the drop down wherever provided.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Each transaction detail should be filled in separately.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Guidelines for Part A of Form 15CA :</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Remitter:</strong></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Permanent Account Number (PAN) and Tax Deduction and collection Account Number (TAN) allotted by the Income Tax Department should be mentioned. TAN is mandatory in cases where -</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a. tax has been deducted or will be deducted at source;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b. the remitter has obtained an order under section 195 (2) of the Income tax Act from the Assessing Officer.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. In case an invalid PAN and/or TAN is filled in by the remitter, the Form will not be generated.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. In case the remitter does not have a TAN, it is mandatory to quote PAN of the remitter.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. PAN of the remitter should invariably be given. However, the same is mandatory if status of entity is Company or Firm. If PAN is not given in such cases, the remitter will not be allowed to generate the Form.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Details in at least two address fields for remitter should be mentioned.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Name of the entity should be mentioned in the “Name of remitter” field.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. No value is to be provided in Area code, AO type, Range code & AO number. The fields will be entered by the system after validating the PAN and/or TAN.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. Email id and mobile no., if any, should be provided.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Recipient of remittance:</strong></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Complete address of recipient of remittance, separated by coma, should be provided.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. PAN, allotted by the Indian Income Tax Department should be mentioned.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. If status of entity is “company”, then provide type of company i.e., “domestic” or “other than domestic”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. In the field “Principal Place of Business”, the country of tax residence of the recipient of the remittance should be mentioned.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Information for accountant</strong></font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Enter name of the Chartered Accountant in the field “Name of the accountant”.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Details in at least two address fields should be mentioned.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Date of certificate should not be a future date.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Registration no. should be numeric.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Details of accountant are not required if point no. 15 is selected i.e. any order u/s 195 (2)/195 (3)/197 of the Income-tax Act has been obtained from Assessing Officer.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Certificate number is an alphanumeric field.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Guidelines for PART B of the Form (Particulars of Remittance and TDS)</strong></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Provide the values as per the accountant certificate obtained in Form 15CB.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. In case name of the country is not available in drop down list, select value “other” from the drop down and provide name of the country.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. In case currency name is not available in drop down then select value ”other” from the drop down and provide name of the currency.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Proposed date of remittance should be current date or a future date.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Amount of TDS should be less than amount of remittance.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Actual amount of remittance after TDS should be less than amount of remittance.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. BSR code of the bank through which the remittance is made should be mentioned.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. Rate of TDS as per DTAA (if applicable) should be mentioned upto two decimal places.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. Amount should be mentioned upto 2 decimal places.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. Select any one out of fields 12, 13, 14 and 16. One form is to be filled for one type of remittance.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11. Details of “responsible person” should be mentioned for verification.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12. If no tax has been deducted then value “0.00” should be mentioned in “Amount of TDS” field (foreign currency and Indian Rs.)</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13. Value for “rate of deduction as per the Income-tax Act” should be “0.00” if no tax has been deducted and “amount of TDS in Indian and foreign currency” should be “0.00”.</font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Generation of Form 15CA</strong></font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. After filling up the information, click “submit”. On submission of details if system shows any errors, rectify and re-submit the form.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. A confirmation screen with all the data filled by the user will be displayed. The same can be either confirmed or edited.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. On confirmation, a filled up Form 15CA with an acknowledgement number will be displayed. Print out of the Form should be taken, signed and submitted prior to remitting the payment.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Form 15CA can be re-printed by selecting the re-print option. For re-printing, please enter “acknowledgement no.”, “PAN” and/or “TAN” mentioned in the Form.</font></p>
</blockquote>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Tariff Value of Brass Scrap and Poppy seeds increased</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has increased the Tariff Value of Brass Scrap from US Dollars 2824 to 2854 and Poppy Seeds from 5153 to 5162 dollars.</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_078.htm" target="_blank">Notification NO. 78/2009- Cus ., ( N.T. ), Dated: June 30, 2009</a></strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">GNC </font></strong><font color="#006600"><strong> – Globally Networked Customs </strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs Directors General representing the 174 Members of the World Customs Organization met in Brussels from 25 to 27 June 2009 to discuss a wide range of Customs issues during the Annual Sessions of the WCO Council.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Council agreed to the establishment of an Ad Hoc Group for steering a globally networked Customs (GNC) feasibility study. The Group has been mandated to provide leadership and guidance on how the Organization can develop GNC and related matters including the development of a prospectus on the feasibility of achieving GNC, and to make recommendations on capacity building for WCO Members concerning areas identified in the feasibility study. They also discussed the foundations for coordinated border management, accepting that the concept should be further developed in order to establish global best practice, in addition to strengthening cooperation and communication around this issue with other border regulatory agencies and stakeholders from the private sector.</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">–Friday's cases</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font><font color="#663399">Central Excise</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">RSP</font></strong><font color="#FF6600"><strong>/MRP of Spray paints enhanced after import – Goods Notified u/s 4A of the CEA , 1944 - Additional demand of CVD duty sustainable – Pre-deposit ordered of the entire duty together with interest and penalty - CESTAT </strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THERE</strong> is a vast difference between the RSP declared in the Bills of Entry and the price lists and the RSP stickers affixed on the cans. It appears that the RSP stickers affixed at the godowns of the applicants indicate the correct RSP (MRP), which was much higher and the same constitutes the actual RSP (MRP) of the said imported goods before sale. It appears to be a case of manipulation of the MRP. The applicants, it seems, have deliberately obliterated the stickers bearing the declared MRP in the Bills of Entry in question for assessment of CVD under section 4A of the Central Excise Act, 1944 with the <em>mala fide </em> intent to evade payment of duty.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Income Tax</font> </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6600">End
to end international long distance telecommunication services – not
royalty; not fee for technical services; no permanent establishment,
no tax payable in India by the foreign company and no TDS - Advance Ruling</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT </strong>is well settled that telecom services are standard services. The arrangement between the applicant and C&W UK is for rendition of service and the applicant pays for the same. It is for C&W UK to see how it will provide that service. The applicant is not concerned with the same. The applicant does not pay for using any secret process in the present case.</font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Hey ROM!</strong></font></p>
<p align="justify"><font color="#FF6600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SUB-SECTION (2) of Section 35 C of the Central Excise Act, 1944 allows the CESTAT to rectify any mistake apparent from the record and amend the order passed under Sub-section (1) if the mistake is brought to the notice of the Tribunal by the Commissioner of Central Excise or the other party to the appeal</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BUT</strong> the interesting question is whose mistake this Sub-section refers to. A common understanding of the above provisions would imply that the mistake obviously should have been by the Tribunal which is allowed to be corrected by the same Bench. But if it is department's mistake, can the Tribunal correct it? Confusing? Well, please keep reading the rest of the story.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">See our columns Tomorrow for the judgements</font></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>
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