TIOL-DDT 1560 · 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 1560 </font><br>
03.03.2011 <br>
Thursday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Consideration Paid or Payable to Deputy Commissioner? </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2011/etariff11_14.htm" target="_blank"> No. 14/2011 - Central Excise dated 01.03.2011</a></strong>, states, <em>“the manufacturer shall make a declaration regarding<strong><font color="#FF6633"> consideration paid or payable in respect of such transfer to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central excise</font></strong>.” </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">No, the notification really does not want any consideration to be paid to the Deputy Commissioner. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Error Budget! </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NO</strong> there is no ‘T' missing. Though many describe it a terror budget, what we are concerned with here are errors – inadvertent in the Budget. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please have a look at the table in Para 3.2 of the DO Letter from JS TRU -I.</font></p>
<table width="450" border="1" align="center" cellpadding="0" cellspacing="0">
<tr>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S.No. </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description of goods </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Earlier rate </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revised rate </font></strong></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Packaged cement manufactured in a mini-cement plant – </font></p></td>
<td valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr>
<td valign="top"> </td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) <font color="#FF6633"><strong>Of retail sale price not exceeding Rs.190</strong></font> per 50 kg bag or of per tonne RSP not exceeding Rs.3800 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.185 PMT </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10% ad valorem </font></p></td>
</tr>
<tr>
<td valign="top"> </td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) <font color="#FF3333"><strong>Of retail sale price<em> not</em> exceeding Rs.190</strong></font> per 50 kg bag or of per tonne RSP not exceeding Rs.3800 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.315 PMT </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10% ad valorem + Rs.30 PMT </font></p></td>
</tr>
<tr>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Packaged cement manufactured in a plant other than a mini-cement plant – </font></p></td>
<td valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr>
<td valign="top"> </td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) <font color="#FF6633"><strong>Of retail sale price not exceeding Rs.190</strong> </font>per 50 kg bag or of per tonne RSP not exceeding Rs.3800 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.290 PMT </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10% ad valorem + Rs.80 PMT </font></p></td>
</tr>
<tr>
<td valign="top"> </td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) <font color="#FF6633"><strong>Of retail sale price <em>not</em> exceeding Rs.190</strong></font> per 50 kg bag or of per tonne RSP not exceeding Rs.3800 </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10% of retail sale Price </font></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10% ad valorem + Rs.160 PMT </font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is the copy and paste devil. You will find that item numbers ( i ) and (ii) in both Sl. No 1 and 2 are same. The word, ‘not' should not have been there in both 1(ii) and 2(ii).</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Existing Serial Numbers duplicated</font></strong>: By notification No. 21/2011 - Cus dated 01.03.2011, Notification No. 21/2002 - Cus has been amended and among others, in the table, new serial numbers 164A and 491A are added. These numbers already exist. So now they are duplicated. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This notification has 613 items – how can anyone possibly monitor this notification? </font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Active voice for Section 11A, then what is this voice? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">JR TRU letter on central excise changes boasts of using “active voice” and simplifying the provisons. Yesterday, someone from a big industrial house sent us a mail asking what this expression means in English language: </font></p>
<blockquote>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">“All goods, other than those which are clearly not to be used as fertilisers ” </font></strong></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why can't it be “all goods used as fertilisers”? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And what is the difference between these two expressions? </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Why JS(TRU) letter is mum on amendment to Rule 6? - Calls for an 'explanation'!!!! </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WITH</strong> effect from 1.4.2011, Rule 6 of the Service Tax Rules has been amended. This is a significant amendment and is going to change the present system of assessees paying service tax (monthly or quarterly) on receipt of the amount for the services rendered. Till now no service tax is payable even if service is rendered or invoice issued. The payment of service tax is only on the receipt of the amount from the client. All this is going to be history from 1.4.2011. The new rule after the amendment reads: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(1) The service tax shall be paid to the credit of the Central Government,- </em></font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) by the 6th day of the month, if the duty is deposited electronically through internet banking; and </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (ii) by the 5th day of the month, in any other case, </font></em></p>
</blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">immediately following the calendar month in which the service is deemed to be provided as per the rules framed in this regard. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All tax payers will have a tough time in understanding this new rule and in computing the service tax liability for the month of April 2011 and onwards. Not only assessees, many officers are also having tough time in understanding this new concept. Surprisingly, no mention has been made in the JS(TRU)'s letter explaining the budget changes. Perhaps they thought it is too complicated to explain and better leave it to the field. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And what about the services rendered and bills issued in the month of March for which payments are going to be received in April 2011? Can they pay service tax on receipt of the money? How to deal with such cases? Can they give a suitable explanation before the deadline of 5 th May 2011? </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Assessment under Project Import Regulations, 1986 - Requirement of cash security in lieu of bank guarantee - CBEC Instructions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue regarding furnishing of a cash security equal to 2% of the CIF value of the goods sought to be imported under Project Import has further been examined by the Board.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In view of the reduction in import duty and the inordinate delay associated with finalisation of the said project imports, it has been decided to do away with the practice of taking cash security. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Henceforth, subject to a maximum of Rs. 1 Crore, only a bank guarantee, equivalent to 2% of the CIF value of goods sought to be imported, would be taken at the time of registration of the Project Contract under Project Import Regulations, 1986. The said bank guarantee shall be backed by an undertaking that it would be renewed from time to time. However, the said bank guarantee need not be renewed on completion of a period of six months from the date of submission of necessary documents, from the jurisdictional Central Excise authority or any other specified authority, as proof of utilisation / installation of goods for the finalisation of the contract. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2011/cuscir11_012.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular NO.12 /2011-CUSTOMS Dated: March 01, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Compliance of International Standards for Phytosanitary Measures ( ISPM -15) in respect of wood packaging material by exporters - CBEC Instructions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BOARD</strong> has decided that all consignments of export packed with wood packaging materials should be allowed clearance only if the wood packaging materials conform to requirements of ISPM -15. The export / imported consignment with wood packaging material are to be inspected by Customs. If any export / imported consignment is found without ISPM -15 mark or with doubtful marking, it should be reported to Plant Quarantine Officer / authorities for taking necessary action. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board desires that the Customs staff posted at different ports and airports are trained in respect of inspection of wood packaging material for ISPM -15 compliance in respect of export / imported consignments. The periodical training programme should be imparted by NACEN in coordination with Plant Protection Advisor, Faridabad. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2011/cuscir11_013.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular NO.13 /2011-CUSTOMS Dated: February 28, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs. 150 Coin Released by FM to Celebrate 150 Years of Income Tax Department </font></strong></p>
<p align="center"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_it150.jpg" alt="Legal Corner Icon" width="351" height="166" hspace="5" border="0" align="center"></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value of Poppy Seeds Decreased </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has decreased the Tariff Value of poppy seeds from 3313 to 2973 US Dollars. The Tariff Value for Brass Scrap remains at 4372. There is no change in the tariff value of other items. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/cnt11_019.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION NO.19 /2011-CUSTOMS (N.T.) Dated: February 28, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Export of Honey to USA and European Union </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EXPORT</strong> of honey to USA and European Union(EU) shall be allowed subject to the following conditions: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Honey exported shall be ‘wholly obtained' Indian origin honey only, and;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. No blending of Indian honey shall be permitted with honey originating from any other country. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The restrictions were applicable earlier only for export of honey to USA; now it is applicable for export to European Union also. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not026.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 26/(RE – 2010)/2009-2014, Dated: February 28, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibition on export of wheat - Exemption for export of wheat to Afghanistan </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> export of 1,00,000 MTs of wheat to Afghanistan, as a donation from Government of India to the Government of Islamic Republic of Afghanistan will be permitted for export through FCI . upto 31.03.2011. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not027.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 27/(RE - 2010)/2009-2014, Dated: February 28, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Terminal Excise Duty (TED) and Duty Drawback Amendment to FTP </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PARA</strong> 8.5 of the Foreign Trade Policy has been amended to read as follows:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Supply of goods will be eligible for refund of terminal excise duty in terms of Para 8.3(c) of FTP, provided recipient of goods does not avail CENVAT credit/rebate on such goods. <strong>A declaration to this effect, in Annexure II of ANF 8, from recipient of goods, shall be submitted by applicant</strong>. Similary , supplies will be eligible for deemed export drawback in terms of para 8.3 (b) of FTP of Central Excise duty paid on inputs/ componets, provided CENVAT <strong>credit /rebate</strong> has <strong>not been availed of such duty paid by supplier of goods.</strong> A declaration to this effect, in Annexure III of ANF 8, from supplier of goods, shall be submitted by applicant. Such supplies shall however be eligible for deemed export drawback on customs duty paid on inputs/components.” </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This amendment clarifies on the declarations required to be given for claiming TED and drawback refund. The phrase “supplier of goods” has been inserted in place of “applicant” in respect of the Deemed Export Drawback claim. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not028.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 28/(RE – 2010)/2009-2014, Dated: March 01, 2011 </font></strong></a></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2010/dgft10pn035.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 35/2009-2014 (RE- 2010), Dated: March 01, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Minimum Export Price of Onions </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MINIMUM</strong> Export Price (MEP) of onions other than Bangalore Rose Onions and Krishnapuram will be US$ 450 per Metric Ton F.O.B. Earlier it was US$ 600 per Metric Ton. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not029.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 29/(RE - 2010)/2009-2014, Dated: March 01, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Procedure for export of Sona Masuri, Ponni Samba and Matta rice</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>VARIETIES</strong> of rice (Sona Masuri, Ponni Samba and Matta) as were permitted to be exported by Notification No. 21 of 10.02.2011, would be subject to port restrictions and other conditions as:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The export would be in consumer packs of upto 10 Kgs each ( not more than 10 Kg per pack) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ A maximum quantity of 5000 MTs for all 3 varieties would be allowed for export per IEC (It would be on self declaration basis: declaration to be filed with customs at the time of shipment and later with concerned RA in the format given in Annexure-I to this Public Notice). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The export would be allowed only during KMS , 2010-11 i.e. upto 30.09.2011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Customs will draw necessary sample(s) and get them tested for quality analysis from AGMARK Laboratories. Copy of the test report be sent to concerned RA who would keep a watch for possible violation/ misdeclaration and take necessary action under FT ( D&R ) Act. </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2010/dgft10pn036.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 36/2009-2014 (RE- 2010), Dated: March 01, 2011 </font></strong></a></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"><strong> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></strong></font></p>
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