TIOL-DDT 1433 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1433</font> <br>
27.08.2010 <br>
Friday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DTC Gets Cabinet Nod – Bill in Parliament on Monday - Media Blitz </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WHILE</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> GST has taken a back seat, the Direct Taxes Code has received the approval of the Cabinet and is all set to be introduced in Parliament on Monday. Within minutes of the announcement, the media went on a wild rampage explaining minor intricacies of the proposed Bill. Several channels calculated tax liabilities and savings. Special Correspondents and expert commentators have already offered elaborate analyses on the one line said by the Finance Minister - "<font color="#FF6633"><strong>The whole objective is that a plethora of exemptions will be limited; tax slabs will be three. Rate of taxes will be taken in the schedule so that they need not be changed every year</strong></font>" </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>What ails Civil Service?</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is said that Civil Servants are neither Civil nor are they servants. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>We have been impressed by some talented people who know what they are doing and are determined to do it well, but more frequently we have been shocked by the failure to apply basic management disciplines to major projects and programmes </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Civil Service faces a widespread perception that its leaders are unaccountable for poor performance. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There are excellent managers in the Civil Service who focus on performance and value for money but they do it despite the system, not because of it, and they are the exception not the rule.</font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Civil Service is expensive, but the real issue is that it is not good at its job. The root cause is the lack of accountability for performance. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Bringing in big hitters from the private sector will not change the predilection to spend rather than save. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Real reform in the Civil Service means making it accountable for every penny it spends and every person it employs. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The democratically elected politicians should be able – openly – to hire and fire senior officials. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Officials themselves would become visible and accountable. </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Agree? These are comments on the British Civil Service in yesterday's '<strong>Spectator</strong>'. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>US Customs Officers don't know how to search Laptops</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>US</strong> Customs and Border Protection Officers are aware that they have the power to search electronic devices entering the US of A "with or without individualized suspicion". The US Supreme Court had held that "presenting one's self at the U.S. border seeking to enter has been equated with consent to be searched" </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But the US Homeland Security Department laments that the Customs Officers are not properly trained foe electronic search. </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"> – Monday'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">Service Tax </font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Prime
condition for benefit of Notification 12/2003-ST is that value of such
goods/materials used in the course of job-work to service recipient should
be separately disclosed in relevant invoice: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> assessee was undertaking job-work of rebuilding of old worn-out rollers, liners, tyres and old worn-out components of cement plants, steel plants etc. during the material period. Up to 31.03.2005, they were paying the State VAT on approximately 70% of the total value of the contract and service tax on the rest of the value. From 1.4.2005, the assessee paid VAT on 80% of the contract value and service tax on 20% of the contract value. During the entire period, they remained registered with the department as providers of ‘maintenance and repair services' . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Even though a service tax category of ‘Works-Contract' was introduced w.e.f 01.06.2007, the assessee did not opt for registration under the said category. </font></p>
<p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax</strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Sec 23 - Calculation of ALV - Should notional interest on interest-free security deposits be considered for taxation only if actual rent is less than fair rent? - Delhi HC refers issue to Larger Bench </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TAX</strong> treatment of income from house property is a tricky business. The issue in this case is -Whether, for calculating ALV, only if the actual rent is less than the fair rent, the notional interest should be added to the interest-free security deposits. </font></p>
<p><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">‘Zinc Dross Shelf' imported is non-toxic and non-hazardous, import could be permitted without certificate from CPCB - Confiscation, prima facie unsustainable - CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> this case the Commissioner of Customs (Import), Mumbai confiscated the goods imported by the assessee, enhanced its value for the purpose of assessment, imposed a penalty of Rs. 2 lakhs and a redemption fine of Rs. 6 lakhs u/s 125 of the Customs Act, 1962. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The importer is aggrieved by this order and is before the <em>CESTAT</em>, the challenge is against enhancement of value of the goods and imposition of fine and penalty. The Revenue is also aggrieved against the Commissioner's order to the extent of granting of option to the importer to redeem the goods inasmuch it is their contention that the goods are of a “<strong>hazardous nature</strong>” . </font></p>
<p align="left"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements </font></strong></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong> </font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice weekend </font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p>
</body>
</html>