TIOL-DDT 1372 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1372 </font><br>
03.06.2010 <br>
Thursday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax - TDS Rules again amended </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MAYBE</strong> electronics have again failed. The TDS rules are amended once again. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ TDS is to be credited to the Government before 30th April where the income or amount is credited or paid in the month of March and before the 7th of the next month in other cases.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ AO can permit quarterly payment of TDS.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Form 16 and 16A to specify:</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) valid permanent account number (PAN) of the deductee; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) valid tax deduction and collection account number (TAN) of the deductor; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) (1) book identification number or numbers where deposit of tax deducted is without production of challan in case of an office of the Government; </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) challan identification number or numbers in case of payment through bank </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d) (1). receipt number of the relevant quarterly statement of tax deducted at source which is furnished in accordance with the provisions of rule 31A; </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2). receipt numbers of all the relevant quarterly statements in case the statement referred to in clause (i) is for tax deducted at source from income chargeable under the head “Salaries”. </font></p>
</blockquote>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Form 16 has to be given to the employee by 31st May and 16A to the deductee within fifteen days from the due date for furnishing the statement. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The changes are applicable for TDS deducted on or after 1.4.2010. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similar Rules are made for TCS also. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2010/it10not041.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Notification No . 41/2010, Dated: May 31, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Now Advocates have to pass an All India Bar examination before practicing in Courts</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ONCE</strong> upon a time, advocates were considered to be the cream of society. Many of the top leaders of India's freedom struggle were lawyers. But over the years LAW has lost its lustre. The brightest boys and girls become engineers and doctors, the lesser ones become bureaucrats. Management, Banking, teaching, accounting etc., are the next preferred jobs. If there is nothing else, there is the Law College. You join a law college and after three years you are a qualified lawyer and can be registered with the Bar Council and start practising LAW. No wonder there is a steep fall in the standard of lawyers and consequently the judges. Everybody expresses deep concern about the falling standards, but nobody does anything about it. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Bar Council is all set to change all this. Starting this year a law graduate can practise in the courts in India only after clearing the All India Bar Examination. Thank God it is only for the new entrants – at least half the existing lawyers are sure to fail. The date of the First All India Bar Examination is December 5, 2010. Registration for the Examination is from July 15 to September 30; results will be declared by December 31. </font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Salient Features of the Examination: </font></strong></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The All India Bar Examination will test skills and basic knowledge critical for a new entrant to the practice of the profession of law. It is intended to check for eligibility, rather than expertise. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Any law student graduating in Academic Year 2009-10 onwards would have to appear for the All India Bar Examination (after enrolment as an advocate) in order to practice law in India. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Twenty subjects from among those prescribed by the BCI for the syllabi of three- and five-year Ll.B. programmes. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Will be conducted in nine languages, and at various examination centres across India; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Application Fee of Rs.1,300/- (includes price of receiving preparatory materials) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ ‘Open-book' format: advocates may bring preparatory materials, books, handwritten notes into the examination hall. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ A hundred multiple-choice questions, to be marked on OMR answer sheets; Focus is on reasoning ability, rather than ability to memorise large texts. No percentage or ranks - advocates will merely pass or fail the All India Bar Examination </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Examination format is aimed at ensuring that a basic amount of preparation would be sufficient to clear it. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Adequate preparatory materials will be provided to each advocate, so as to ensure that lack of access to resources is not an impediment to preparing well for the All India Bar Examination. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The preparatory materials will be provided in the language that the advocate has chosen to appear for the examination. Model question papers will be provided along with the preparatory materials, as well as online. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Examination shall be held at least twice each year in such month and such places that the Bar Council of India may determine from time to time. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ An unsuccessful advocate may appear again for the Bar Examination, without any limit on the number of appearances. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Certificate of Practice shall be issued by the Bar Council of India, under the signature of the Chairman, Bar Council of India, to the address of the successful advocate within 30 days of the date of declaration of results. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, passing the BL degree examination is no more a ticket to the Courts. But isn't the Bar Council's examination an insult to the universities? Does the Medical Council conduct an examination for doctors? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While studying Law, I often used to wonder why the profession is so respected when the academic course that takes you there is a farce – most of the students pass the examination with the help of ‘thirty questions' guides and not bulky books. Law education was never serious – even in England, more than a hundred years ago as Mahatma Gandhi found out. He found it more difficult to pass the London Matriculation than the Bar examination! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We certainly need better quality lawyers and if the Bar examination is a step in that direction, so be it. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While on this issue, we bring you the story of a shy Indian who sailed to England more than a hundred years ago to study Law. See <strong>Called to the Bar - But Then? My Helplessness!</strong> in <strong>TIOL </strong>Top </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Failure under RTI Act - CE Officers may have to pay Rs. 1 Lakh Compensation - Not exactly</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=10564" target="_blank">DDT 1314 - 09.03.2010</a></strong>, we reported <font color="#FF6633">that the Central Information Commission recently ordered proceedings to be initiated under Section 19(8)(b) of the RTI Act against Central Excise Officers of Raipur Commissionerate for compensation of Rs. 1 lakh to the applicant. </font></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">The CIC noticed that the CPIO, Md. Israil had not responded to the appellant's RTI-applications. Appellant received no reply from the AA too as his 1st-appeals, dated 29.09.2009 against deemed refusal of his RTI-applications, were rejected by AA, Sri Raj Kumar on the ground that the appellant had demanded the direction to be issued to Commissioner, Central Excise, Raipur, who was senior in rank to the AA. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CIC was informed that Mr. Md. Israil to whom the notice was given by the CIC on 19.3.2010, had passed away on 2.11.2009. Since the noticee is no more, proceedings abate. The other issues covered in the appeals and complaints against the Raipur Central Excise are closed as the information sought has been given. </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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"> – Friday's cases</font></strong></font></strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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"><strong><font color="#663399">Central Excise </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Simultaneous availment of CENVAT and drawback - Reversal of CENVAT credit does not give cover of availment of duty drawback to appellant: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellant had procured duty paid yarn and availed <em>CENVAT credit</em> and subsequently exported the garments under duty drawback scheme claiming full drawback instead of Customs portion of drawback. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Upon realizing their mistake, they reversed <em>CENVAT credit</em> amounting to Rs.98,764/- on account of CENVAT credit availed against raw material used by them in the manufacture of export goods for which duty drawback bills were filed. </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="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Business income vs income from house property - lease rental from commercial property treated as business income for 10 years - In view of principle of consistency and for lack of materials on part of Revenue, it is business income: High Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the High Court is “What would be the nature of rental income received by the assessee on exploitation of commercial property particularly when the same has been assessed as income from business in last 10 years and there is no change in facts.” And the answer is Business income. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service
Tax demand of Rs 6.48 Crores – COD granting clearance to contest only penalty
and interest - as liability to service tax demand is not contested, liability
to interest confirmed as per law is sustainable - no penalty is liable
to be imposed as appellant had rightly believed that activity impugned
was not exigible to service tax: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AGAINST</strong> the oil giant, a demand of Service Tax of Rs.6,47,98,642/- (under the category of GTA Service) was confirmed by the Commissioner of Service Tax, Mumbai along with interest and various penalties were imposed under Section 76,77 & 78 of the Finance Act, 1994.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The oil giant was required to take a clearance from the Committee of Disputes and hence approached the august body. They were granted a clearance but as per the clearance <em>the appellant was allowed to contest only the interest and penalty adjudged in the impugned order </em>. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></p>
<p align="justify"><font color="#FF6666" 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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