TIOL-DDT 1507 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663366" size="3">TIOL-DDT 1507</font><br>
14.12.2010<br>
Tuesday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Processing of E-TDS Returns – CBDT Instructions </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IN</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> the present system of processing of e-TDS returns, the returns are processed online and mismatch report showing defaults on various accounts is generated. Based on this mismatch report, the assessing officers issue show-cause-notices to the deductors and take follow up actions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT has noticed that substantial number of TDS returns are pending where the deductee -wise default on account of short deduction of tax is less than Rs. 10. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT has decided that :-</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i. where the default on account of short deduction is less than Rs.10 for each deductee, the demand is rounded off to zero; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii. after considering (i) above, deductor -wise demand/default, if any, of Rs.100 or less will also be ignored for further action.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBDT further warns the DDOs to be careful in future so as to ensure that they do not become habitual in short deduction of tax.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">More problems with electronic processing will arise in the days to come. We are told that the software does not recognize a negative income from House Property.</font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=67&filename=notification/cbdt/2010/instruct1008.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Instruction No. 8/2010, Dated: December 8, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Processing of ITR -I and ITR -2 returns - Credit of TDS - CBDT Clarification</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BOARD</strong> had clarified in Instruction No. 7 dated 16.8.2010 that in cases where the return is filed in ITR -I and ITR -2 for the A.Y. 2009-10, and where the TDS claim does not exceed Rs . three lakh and where the refund computed does not exceed Rs. Twenty five thousand, the TDS claim of the tax payer shall be accepted at the time of processing of the returns provided the TDS payment reported in AS-26 is more than Rs . zero.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has reconsidered the above instruction and it has been decided to increase the limit of TDS claim from Rs . three lakh to Rs. four lakh as was applicable for the A.Y . 2008-09. It is further clarified that if the limit of Rs . four lakh, or Rs.25 ,000 is exceeded in case of a return filed in ITR -I and ITR -2 or there is nil matching with AS-26 statement, the credit should be allowed by the Assessing Officer after make ‘due verification'. This verification may be done in the same manner as was being done in the earlier years. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=67&filename=notification/cbdt/2010/instruct1009.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Instruction No. 9/2010, Dated: December 9, 2010 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax in CBSE Syllabus? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Board of Secondary Education – CBSE – is flooded with requests from several Government Departments, including Income Tax and armed forces and even industry bodies to include their work in the Social Science Syllabus in schools. The CBSE is not really impressed and does not want to add to the burden of the students by making the Social Science syllabus even more bulky. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But our Customs, Excise and Service Tax Department does not figure even in the consideration zone. ‘Indirect Taxes' has no significant place in the syllabus of any university for the LAW course.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Dhirubhai
Ambani was not keen on recruiting IIM graduates, because they never learnt
Indirect Taxes in the IIMs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nearly
ten years ago, I interviewed the Chairman of the Bar Council of India for
TIOL. I asked him: </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While taxation laws are taught by many universities, the laws do not include Customs and Central Excise Laws, which have produced voluminous case laws and these taxes are the biggest source of revenue for the state. Don't you think Excise and Customs law should be included in the law curriculum? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And he told me: </font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">It
is a fact that Excise and Customs is an important branch of law. But as
things stand, in the curriculum, we have 21 compulsory subjects and four
optional papers and among them, taxation is one. However as Central Excise
is generally a subject that has importance in urban areas where industries
are located and Customs generally in port areas. As on date these two branches
have become subjects of specialisation and not subjects which the average
law practitioner in the country has to know or learn. Being a subject limited
to major urban centres , though in terms of revenue, it contributes a major
chunk to the national revenues, its impact is not universal in the sense
that it does not touch all the legal practitioners in the community. For
that matter, sales tax and income tax are also not compulsory subjects
and at this stage, it may not be possible to include it in the compulsory
subjects. Among the optional subjects, it may be included as part of taxation. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe CBEC should tie up with the universities to introduce Indirect Taxes as subject in Post Graduate or Law courses. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">IIT - Indian Institute of Taxation </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> should consider starting an Indian Institute of Taxation, where all Indian Taxes are to be taught along with subjects like Constitution, Public Administration, Mathematics, English, etc. The degree should be treated as a Law degree and the graduates can be used in the Tax Courts as lawyers, judges and they may even be directly recruited into the Revenue Services, with a higher salary. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT Cartoon on Corruption with Gopal </font></strong></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_1502.jpg" alt="Legal Corner Icon" width="250" height="338" hspace="5" border="0" align="centre"></font></p>
<p align="center"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">I am joining politics. Tell me which amongst bribe-taking , corruption, embezzlement and hoarding money is bailable and non-cognizable! </font></strong></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"> – Wednesday's cases</font></strong></font></strong></font></p>
<p><strong><font color="#663399" 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">Customs</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Smuggled goods are not imported goods for purpose of exemption notification; Notifications have to be interpreted strictly while beneficial and promotional exemption is to have liberal interpretation: - Supreme Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SMUGGLED</strong> goods will not come within the definition of `imported goods' for the purpose of the exemption notification, for the reason, the Act defines both the expressions looking at the different definitions given to the two classes of goods: imported and smuggled, and if the two were to be treated as the same, then there would be no need to have two different definitions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The general rule is strict interpretation while special rule in the case of beneficial and promotional exemption is liberal interpretation.</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">Investment Allowance - Clarificatory Amendment will have retrospective effect even if not specified so - High Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INVESTMENT</strong> allowance for the assessment year 1983-84 was denied to the assessee, a manufacturer of aerated waters under the brand name of 'TORINO', such manufacturing activity having been carried on under a licence, on the ground that the aerated waters manufactured by it contained blended flavouring concentrates. The assessee having appealed to the Commissioner against that view of the assessing officer, the Commissioner accepted the assessee's case that the original entry without the explanation, did not take in its fold synthetic essences which are admittedly used by the assessee and that the explanation that was added subsequently did not have retrospective effect. That view of the Commissioner has been affirmed by the Tribunal. </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">Purchase and sale of time slots, not advertising service: 'Sale of Space or Time for Advertisements' introduced for first time with effect from 01.5.2006, cannot be taxed earlier - CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants were only purchasing and selling the timeslots. They were in no way connected with making, preparation, display or exhibition of advertisements. The sale of time slot to electronic media cannot be termed as advertising services. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is no dispute that the said service of sale and purchase of time slot for advertising introduced for the first time with effect from 01.5.2006. With such new introduction, it has to be held that the particular services were not covered by the definition of any other service prior to the said date. As observed in the case of BCCI, to hold otherwise, would negate the legislative intent and would make the new entry as otiose.</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 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>
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