TIOL-DDT 157 · 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
157</font><br>
14 07 2005<br>
Thursday</strong></font></p>
<p align="center"><strong><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Import
of certain goods for sea food processing – Conditions imposed</font> </strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Certain
items like bread crumbs, batter, food colours etc. imported for processing of
sea foods are exempted from Customs duty. Now certain conditions are imposed
for this exemption. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">· The
importer should be registered with MPEDA, </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">· the
imports should not exceed 1% of the FOB value of exports in the previous year
and </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">· the
importer should produce a certificate from the MPEDA regarding the value and
quantity of exports and imports</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2005/ctariff05_065.htm">Notification
No. 65/2005-Cus., dated 12th July 2005</a></strong> </font></p>
<p></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Amendments
in Foreign Trade Policy – Board clarifies.</strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has come
up with a circular explaining the important features of the Annual Supplement
to the Foreign Trade Policy – two months later.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. <strong>Vishesh
Krishi Upaj Yojana</strong> – Benefits under the scheme extended to poultry
and dairy products. Duty credit equal to 5% of FOB value of exports to be given.
Notification No. 41/2005-Cus, dated 9-5-2005 issued to operationalise the scheme.
Procedure as per DGFT guidelines.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <strong>Served
from India Scheme</strong> – Goods imported under the scheme allowed to
be transferred within group companies and managed hotels under actual user conditions.
- Notification No. 46/2005-Cus, dated 17-5-2005.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. <strong>EPCG
Scheme</strong> – </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Agro
units allowed fulfilling export obligation of six times the duty in 12 years
instead of 8 times the duty in 8 years.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Import
of capital goods at concessional customs duty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Import
of capital goods for retailers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) Those
fulfilling 75% or more of export obligation in half or less than half the stipulated
period need not fulfill the balance of export obligation.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Importers
not registered with Central Excise can get installation certificate form Chartered
Engineer. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. <strong>Advance
Licensing Scheme</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Inputs
under Advance License for deemed export supply under International Competitive
Building exempted from Safe Guard duty and Anti-dumping duty.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Advance
license for annual requirement extended to all categories while this facility
was allowed only to status holders earlier. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) BIFR
and Sick SSI Units allowed extension of export obligation.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) Inter-unit
transfer of duty free material allowed with prior intimation to Central Excise.
No permission required.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Duty
free inputs allowed to be cleared for job work by following the Central Excise
job work procedure. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. <strong>Duty
Free Replenishment Certificate Scheme</strong> – Brass scrap additives,
paper and paper board, removed from sensitive list. Re-credit of 95% of the
value allowed in case of rejection of imported goods. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. <strong>Duty
Entitlement Pass Book (DEPB) Scheme - DEPB extended up to 30-9-2005.</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. <strong>Marine
Sector</strong> – </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Duty
free import of specialized imports to the extent of 1% of the FOB value of previous
years exports.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Import
of monofilament long line system for Tuna fishing at concessional rate.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Self
removal procedure for sea food waste. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. <strong>Execution
of BG/LUT</strong> – Bank guarantee reduced to 15% for most of the categories.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. <strong>Third
Party Exports</strong> – Definition of third party exports amendment in
tune with the definition under the policy.</font></p>
<p align="justify"><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_030.htm">Circular
No. 30 /2005-Cus., dated 12th July 2005</a></strong></font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Annual
Information Report made mandatory retrospectively.</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
CBDT has amended the rules retrospectively for filing of annual information
returns. These have come into existence from December 2004. For the following
transactions the CBDT wants an annual report and the forms have also been prescribed.
If you had more than ten lakhs in the savings account or you spent more than
two lakhs from credit card, or you bought mutual fund shares worth more than
two lakhs, or you have purchased property worth 30 Lakhs of registered value,
Big Brother will watch you.</font></p>
<table width="450" border="1" align="center" cellpadding="2" cellspacing="2">
<tr>
<td width="50">
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1</font></p></td>
<td width="150">
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
Bank.</font></p></td>
<td width="200">
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Cash deposits
aggregating to ten lakh rupees or more in a year in any savings account</font></p></td>
</tr>
<tr>
<td width="50">
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2</font></p>
<p></p></td>
<td width="150"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
banking company</font></td>
<td width="200"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Payments
made in respect of a credit card aggregating to two lakh rupees or more
in the year.</font></td>
</tr>
<tr>
<td width="50"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3</font></td>
<td width="150">
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mutual
Fund</font></p></td>
<td width="200">
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Receipt
from any person of an amount of two lakh rupees or more for acquiring
units of that Fund.</font></p></td>
</tr>
<tr>
<td width="50">
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4</font></p></td>
<td width="150"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
company or institution issuing bonds or debentures.</font></td>
<td width="200"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Receipt
from any person of an amount of five lakh rupees or more for acquiring bonds
or debentures</font></td>
</tr>
<tr>
<td width="50"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5</font></td>
<td width="150"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
company issuing shares through a public or rights issue.</font></td>
<td width="200"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Receipt
from any person of an amount of one lakh rupees or more for acquiring shares
issued by the company.</font></td>
</tr>
<tr>
<td width="50">
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6</font></p></td>
<td width="150"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Registrar
or Sub-Registrar</font></td>
<td width="200">
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Purchase
or sale by any person of immovable property valued at thirty lakh rupees
or more.</font></p></td>
</tr>
<tr>
<td width="50"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7</font></td>
<td width="150">
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Reserve
Bank of India</font></p></td>
<td width="200">
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Receipt
from any person of an amount aggregating to five lakh rupees or more in
a year for bonds issued by the Reserve Bank of India</font></p></td>
</tr>
<tr>
<td width="50"> </td>
<td width="150"> </td>
<td width="200"> </td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/pdfnoti/pdfcbdt/pdf2005/it05not182.pdf">NOTIFICATION
NO. 182/ 2005, Dated: July 11, 2005</a></strong></font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGCEI
books 41 cases of evasion of excise duty and Service Tax</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
PIB press release says that during the month of June 2005, the Directorate General
of Central Excise Intelligence (DGCEI) booked 41 cases of evasion of Central
Excise and Service Tax involving an amount of Rs.83.40 [26 cases of Central
Excise involving revenue of Rs.68.88 crores and 15 cases of Service Tax involving
revenue of Rs. 14.52 Crores]. DGCEI also recovered an amount of Rs. l1.92 crores
as <strong>voluntary (???)</strong> payment of duty during investigation</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will
DGCEI reveal how many cases it booked five years ago survived beyond the Tribunal?
It beats logic, why should any one <strong>voluntarily</strong> pay huge amounts
which they are alleged to have evaded? The modus operandi is the officers gently
persuade the assessees to voluntarily pay up and as if by magic, the hard core
evaders have a change of mind on seeing the sleuths and pay up. The tragedy
is later this fact of <strong>voluntary</strong> payment is shown as proof against
the assessee for his guilt. “ If he was not guilty, why would he pay voluntarily,
my lord?” </font></p>
<p align="left"><font color="#FF0000"><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Tomorrow with more DDT</font></strong></font></p>
<p><font color="#FF6666"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Have a nice day.</font></strong></font></p>
<p><font color="#FF6666"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Mail your comments to</font></strong></font><font color="#FF0000"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></strong></font></p>
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