TIOL-DDT 150 · 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> <p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#663399" size="3"><strong>TIOL-DDT 150</strong></font><br> <strong>05 07 2005<br> Tuesday</strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Classification of mobile pen drive - Board gives hi-tech clarification</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> What is a mobile pen drive? Board understands it as performing three functions<br> <br> 1. Storage drive like a floppy drive (8471 70 10)<br> 2. Storage media like a floppy (8523 20)<br> 3. writing like a pen (9608)<br> <br> The Tariff conference of Chief Commissioners could not come to a conclusion on the tariff classification but they came to a conclusion that the Board should call for a meeting and the opinion of Information Technology should be taken. This meeting decided that the matter needs expert opinion from the WCO. Based on the opinion from WCO, Board has now clarified that the product will be classified under 8471 70 90.</font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2005/cuscir05_028.htm">CIRCULAR NO. 28/2005-Cus, Dated: July 1, 2005</a></strong></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Video is not a moving picture. What happens if a video camera takes still pictures?</strong> </font></p> <font size="2"> </font> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">No exemption, the Board wants to say. The issue is exemption to <b>Digital Still Image Video Camera</b> against Sl. No. 314 of Notification No. 21/2002-cus dated 1.3.2002. Since the wording includes 'still image' and 'video', the question was whether the exemption will be available to a video camera or only to a still image camera. Board has done some research and come up with the conclusion that <b>video</b> does not mean a moving picture. It means visual rather than moving.<br> <br> So there was an opinion that the exemption will be available only for still picture cameras, not the moving ones. <br> <br> A conference of Chief Commissioners discussed the issue and decided to <b>consult</b> the TRU. So a reference was <b>sent</b> to TRU. Though TRU agreed with the conference, they suggested that the departments of Commerce and Information Technology may be consulted. The Commerce department said they had no comments and the IT department said that with the convergence of technologies, functions are getting converged. Board felt that this was not a categorical clarification.<br> <br> With no help from either the Commerce department or the IT department, Board was forced to use its own intelligence and now Board proposes to issue a clarification that </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>the benefit of entry at Sl. No. 314 of notification no. 21/2002-Cus. would not be available to such digital cameras that have the capability to take still as well as moving images and the benefit would be restricted to 'digital cameras with still image capability' only. </strong><br> <br> What will be the result of this clarification? This will only dig up buried corpses. This serial No. 314 was deleted from the notification on 1.3.2005. So this clarification will have only retrospective effect and litigation. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/draftcir.htm">Source: Board's proposed circular</a></font></p> <font size="2"> <p align="center"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006633">What is a recognized Stock Exchange - CBDT clarifies</font></strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif"> As per Section 43 of the Income Tax Act, an electronic transaction on derivatives carried out in a recognized stock exchange is deemed to be not a speculative transaction. Now the stock exchange is not what you think. The Act says it is a recognized stock exchange which fulfills the conditions notified by the Board. And now the Board has come with the conditions.<br> <br> 1. The exchange should be recognized by SEBI <br> 2. The exchange should record the client's id and PAN in its records <br> 3. An audit trail of the records should be maintained in the system for seven years <br> 4. It should be ensured that the data once entered cannot be erased or modified. <br> <br> Those willing for these conditions have to apply to the Member(L) of the CBDT and the Government after examining the applications will notify the recognized stock exchanges. <br> <br> If you are into derivative trading, do check up whether your stock exchange is recognized by the CBDT.</font></p> <p align="center"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2005/it05not181.htm">NOTIFICATION NO. 181/2005, Dated : July 1, 2005</a></strong></font></p> <p align="center"><strong><font color="#006633" face="Verdana, Arial, Helvetica, sans-serif"> Anti dumping duty on sodium nitrite - extended</font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif"> Based on the recommendations of the Designated Authority, the anti dumping duty imposed on sodium nitrite by Notification No. 147/2000 is extended till the 21st day of May, 2006.</font></p> <p align="center"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2005/ctariff05_060.htm">NOTIFICATION. No.60/2005-CUSTOMS Dated : July 4, 2005</a></strong></font></p> <p align="center"><font face="Verdana, Arial, Helvetica, sans-serif"> <b>Two sides of the coin</b></font></p> <p align="left"><font face="Verdana, Arial, Helvetica, sans-serif"> <font color="#FF0000">The Revenue Departments make mistakes: taxpayers are negligent.</font><br> <br> <strong><font color="#FF6666">Until Tomorrow with more DDT<br> <br> Have a nice day. <br> <br> Mail your comments to</font> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></strong></font></p> </font> </body> </html>