TIOL-DDT 1580 · 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 1580</font> <br>
31.03.2011<br>
Thursday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Point of Taxation Rules – Yet to be postponed? </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> his reply to the debate on the Finance Bill, 2011, the Finance Minister told the LokSabha, </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Point of taxation Rules are due to come into force from April 1, 2011 and are meant to shift the payment of service tax from only cash basis towards accrual basis. The changes are essential to align the system of payment of taxes between goods and services. Many taxpayers have expressed concerns about some provisions and also sought some time for the switchover on account of changes required in their software. Accordingly, certain changes in the relevant provisions are being worked out and an additional period of three months up to June 30, 2011 is being provided to make the transition. These changes shall be notified shortly after completing the process of consultation.</font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Point of Taxation Rules, were notified by Notification No. 18/2011 –S.T dated March 01, 2011 and are to come into force from tomorrow. In our work shop in Mumbai, some delegates had requested the CBEC Chairman to postpone it by six months and the Finance Minister had announced its postponement by three months. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But the notification to postpone the Rules is yet to be issued. Hopefully they will do it today. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">IRS v IRS- Transport of Goods by Rail - Exemption Extended. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> yesterday's <strong>DDT</strong>, we had pointed out that the exemption from Service Tax on transport of goods by Rail, was sure to be extended. Government has indeed exempted it. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The following Notifications are amended: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. <strong>Notification No 07/2010-Service Tax, dated the 27th February, 2010 </strong>: Rescinds Notification No. 33/2009-S.T dated 01.09.2009[which actually exempts transport of goods by rail and if this exemption is withdrawn, the service becomes taxable]. This notification was effective from 01.04.2011. Now it is made effective from 1st July 2011 – <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2011/stnot11_019.htm" target="_blank">Notification No. 19/2011-Service Tax, Dated : March 30, 2011</a></strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <strong>Notification No 08/2010-Service Tax, dated the 27th February, 2010:</strong> exempts certain goods like Postal Mail Bags, from Service Tax. This notification was effective from 01.04.2011. Now it is made effective from 1st July 2011 – <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2011/stnot11_020.htm" target="_blank">Notification No. 20/2011-Service Tax, Dated: March 30, 2011</a></strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. <strong>Notification No 09/2010-Service Tax, dated the 27th February, 2010:</strong> provides abatement to transport of goods by rail. This notification was effective from 01.04.2011. Now it is made effective from 1st July 2011 – <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2011/stnot11_021.htm" target="_blank">Notification No. 21/2011-Service Tax, Dated : March 30, 2011</a></strong> </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP – New AayatNiryat Form 2E (ANF2E) </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PRESCRIBED</strong> application form for export licence for SCOMET items is ‘AayatNiryat Form 2E (ANF2E)'. Based on feedback received from exporters, a simplified, rationalized and easy to fill ANF2E has been designed which includes a revised ‘Declaration / Undertaking'. ‘Guidelines for Applicants' too have been made exhaustive with a view to facilitate filling of the form. New ANF2E is applicable w.e.f. 1.4.2011. All applications for export of SCOMET items filed from 1.4.2011 onwards must be filed in the new ANF2E.</font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2010/dgft10pn042.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">PUBLIC NOTICE No. 42/2009-2014 (RE- 2010), Dated: March 30, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Company Law - Form of Balance Sheet and Profit and Loss account Changed </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">GOVERNMENT</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> has replaced the existing Schedule VI with a new Schedule VI. The Balance Sheet and Profit and Loss Account Forms are replaced. This will come into force for the Balance Sheet and Profit and Loss Account to be prepared for the financial year commencing on or after 1-4-2011.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/companies_act_notification.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MOC Notification No. S.O 447(E) Dated: February28, 2011 as amended by Notification dated 30.03.2011</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Expert Committee on Revenue Forecasting – Suggestions Requested </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AN</strong> Expert Committee has been constituted to develop a customized revenue forecasting model for the Direct Taxes. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To make it a meaningful exercise, CBDT has sought suggestions from officers/staff of the Department. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Suggestions are to be sent to <a href="mailto:ditdoms.km@gmail.com"><strong>ditdoms.km@gmail.com</strong></a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Don't they have government/departmental email ids? The last time DDT asked this question, a CBEC official was furious! </font></p>
<p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/office_memorandum_cbdt.htm" target="_blank"><font size="2"><strong>DIT F. No. 48/1/2009/Km/DOMS dated 25.03.2011</strong></font></a></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 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"><font color="#663399"><strong>Central Excise </strong></font></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">I have no work and have to sit idle – This has not happened for first time – Single Member Bench is not being taken seriously - It is collective duty of DRs, Advocates and Bench to dispose cases as early as possible, particularly in this Tribunal, where Government's revenue is at stake, laments CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ALL</strong> those avowed objectives of the Department in reducing the pile of cases pending before the Tribunals pale into shame if one goes by the recent woes of the Single Member Bench of the CESTAT.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the matter was listed for final hearing on 30.12.2010, the ‘concerned' Departmental Representative was on leave. An adjournment request made by the ‘proxy' DR was considered and the matter was adjourned to 20.01.11. Thereafter, the matter was listed on 08.03.2011 for final disposal for argument by the DR. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Unfortunately, the<strong> <em>concerned</em></strong> DR was on leave on this day too.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Single Member Bench hearing the appeal was apparently upset with this laidback attitude of the Departmental Representative and could not but let his views be known to “all concerned”. </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">Whether ITAT has power to extend period of stay already granted, beyond 365 days even after insertion of third proviso to Sec 254(2A) - YES, rules ITAT Special Bench</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> sole issue before the Special Bench is - Whether the Tribunal has the power to extend the period of stay already granted beyond the period of 365 days as prescribed in the proviso to Section 254(2A). YES is the answer of the Special Bench.</font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs </font></strong></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs - DEPB - Transferee not entitled to the benefit of DEPB scrips fraudulently obtained by the transferor - However Penalty set aside: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue involved in this case is whether the transferee respondents were entitled to the benefit of DEPB scrips fraudulently obtained by the transferor thereof and whether redemption fine and penalty was imposable when goods were not available for confiscation. </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><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more<strong> DDT</strong></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Time.</font></p>
<p><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>
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