TIOL-DDT 1547 · 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 1547</font><br>
10.02.2011<br>
Thursday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The Courier Imports and Exports (Electronic Declaration and Processing) Regulations - Board Instructions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RULE</strong> 13(1) of the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010 reads as: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">13. Suspension or revocation of registration of authorised courier. – (1) The Commissioner of Customs may revoke the registration of an Authorised Courier and also pass an order for forfeiture of security on any of the following grounds namely:-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">(a) failure of the Authorised Courier to comply with any of the conditions of the bond executed by him under regulation 11; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">(b) failure of the Authorised Courier to comply with any of the provisions of these regulations; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">(c) misconduct on the part of Authorised Courier whether within the jurisdiction of the said Commissioner or anywhere else, which in the opinion of the Commissioner renders him unfit to transact any business in the Customs airport: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">Provided that no such revocation shall be made unless a notice has been issued to the Authorised Courier informing him the grounds on which it is proposed to revoke the registration and he is given an opportunity of making a representation in writing and a further opportunity of being heard in the matter, if so desired: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">Provided further that, in case the Commissioner of Customs considers that any of such grounds against an Authorised courier shall not be established prima facie without an inquiry in the matter, he may conduct an inquiry to determine the ground and in the meanwhile pending the completion of such inquiry, may suspend the registration of the Authorised Courier: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#CCCCCC" span="span">Provided also that if no ground is established against the Authorised Courier, the registration so suspended shall be restored. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These Regulations have been scrutinised by Committee of Subordinate Legislation, Lok Sabha. The suggestions given by Committee have been examined by the Board. Accordingly, it is decided that inquiry in terms of proviso 2 to Regulation 13(1) of the said Regulations should be completed within a period of three months from the order of suspension. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2011/instruction11_003.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Instruction in F.No.450 /54/2008- Cus. IV; Dated February 09, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Balance sheet of holding company to include certain particulars as to its subsidiaries - MCA Directions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Section 212 of the Companies Act, 1956; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) There shall be attached to the balance sheet of holding company having a subsidiary or subsidiaries at the end of the financial year as at which the holding company's balance sheet is made out, the following documents in respect of such subsidiary or of each such subsidiary, as the case may be :- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) a copy of the balance sheet of the subsidiary; <br>
<br>
(b) a copy of its profit and loss account; <br>
<br>
(c) a copy of the report of its Board of directors; <br>
<br>
(d) a copy of the report of its auditors; <br>
<br>
(e) a statement of the holding company's interest in the subsidiary as specified in sub-section (3); <br>
<br>
(f) the statement referred to in sub-section (5), if any; and <br>
<br>
(g) report referred to in sub-section (6), if any. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Section 212(8) of the Act, “ The Central Government may, on the application or with the consent of the Board of directors of the company, direct that in relation to any subsidiary, the provisions of this section shall not apply, or shall apply only to such extent as may be specified in the direction.” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A large number of companies have been approaching the Ministry for exemption under Section 212(8). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The matter was examined in the context of the globalizing Indian economy, the increased number of subsidiaries, and the introduction of accounting standards on consolidated financial statements. It has been decided to grant a general exemption provided certain conditions are fulfilled. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/general_circular_no_2.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MCA General Circular No. 2/2011; Dated February 08, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Companies Act – Disclosure of Certain Details - Exemption from Archaic Provisions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SECTION</strong> 211 of the Companies Act, 1956 requires that the balance sheet and profit and loss account of a company shall be in the form set out in Part I of Schedule VI or in such other form as may be approved by the Central Government either generally or in any particular case. The Ministry has been regularly receiving requests for exemption from various classes of companies from the disclosure of certain quantitative details required under Schedule VI. So far, these exemptions were being given on a case-by-case basis with certain conditions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These requirements date back to the era when there was industrial licensing etc., and there was a regulatory purpose in monitoring quantitative aspects of production etc. Their relevance in the present economic and regulatory environment has been re-assessed. Such disclosures are not required in other countries. Indian companies have represented that such disclosure puts Indian companies at a competitive disadvantage where their details are known to foreign competitors, but they cannot get the details from the other side. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So the Government has exempted certain categories of Companies from certain disclosures. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/press_note_no_02.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MCA Press Note No. 2/2011; Dated February 08, 2011</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Managerial Remuneration in unlisted companies having no profits - No need of Government approval </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>COMPANIES</strong> are divided into private limited and public limited companies. Public limited companies are of two types – listed companies (whose shares are listed on a stock exchange) and unlisted companies. Normally, the general public does not hold shares in unlisted companies. Private limited companies are not subject to any limits on managerial remuneration. Public limited companies (listed and unlisted) with no profits/ inadequate profits are currently required to approach the Ministry for approval in those cases where the remuneration of Directors/ equivalent managerial personnel exceeds certain limits. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The primary purpose of regulations over managerial remuneration is to protect stakeholders, particularly shareholders and creditors. Unlisted companies are in several respects similar to private limited companies. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Ministry is not able to process all the applications received. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Companies Act 1956 is being amended to provide that unlisted companies (which are not subsidiaries of listed companies) shall not require Government approval for managerial remuneration in cases where they have no profits/ inadequate profits. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/press_note_no_04.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MCA Press Note No. 4/2011; Dated February 08, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Election Commission wants Stronger Monitoring in Elections </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Election Commission had meeting with Mr. Sudhir Chandra, Chairman, Central Board of Direct Taxes (CBDT) on February 9, 2011 to oversee the measures taken by CBDT to control the use of money power in elections in the five states of Assam, West Bengal, Tamil Nadu, Kerala and Puducherry . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Election Commission is concerned about the fact that several political parties have neither audited their accounts nor maintained proper books of accounts. Although the donations received by the political parties are exempt from tax, some of the parties are not using the same for party purpose. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">WCO calls for increased border vigilance to protect Egypt's cultural heritage </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SECRETARY</strong> General of the WCO, Kunio Mikuriya , calls on Customs administrations worldwide to increase their vigilance at borders on cultural artifacts that may be smuggled or exported illegally from Egypt by criminals and other unscrupulous persons using the current unrest in the country as a cover. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Protecting a nation's cultural property from being illicitly trafficked across borders is one of the priorities for Customs administrations around the world; I am appealing to the global Customs community to be extremely vigilant at borders as Egypt's cultural heritage could be endangered” said the WCO Secretary General. </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 color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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</strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Orders of CESTAT - Appeal vs Writ - Ordinarily writ petition ought not to be entertained where efficacious alternate remedy of appeal is provided in the statute itself: High Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> fact that the petitioners can distinguish the decision of the Apex Court relied upon by the Tribunal cannot be said to be extra ordinary circumstances for invoking writ jurisdiction and it would be open to the petitioners to agitate the same by filing an appeal. </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">Sec 32 - Whether, for depreciation purpose, JCB earth-moving machines can be equated with motor lorry or plant and machinery - It is plant and machinery, entitled to only 15% rate: ITAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the Tribunal isWhether, for depreciation purpose, JCB Earth Moving Machines can be equated with motor lorry or plant and machinery. And the Tribunal's decision goes against the assessee. </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">Setback to the exporting community - Tribunal rules no refund of education cess under Notification No 41/2007 ST for services used in goods exported. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>REFUND</strong> of education cess under Notification 41/2007 ST - The education cess was imposed under Section 91 and 93 of the Finance. (No.2) Act, 2004 - There is no notification exempting the education cess by way of Refund under the Finance Act under which the education cess was levied - Refund of education cess is not admissible under Notification No 41/2007 ST.</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 Time.</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"><strong>vijaywrite@taxindiaonline.com</strong></a></font></p>
</body>
</html>