TIOL-DDT 1581 · the untouched capture
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<p align="justify"><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif"><strong>TIOL-DDT 1581<br>
</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>01.04.2011 <br>
Friday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>POT (Point Of Taxation) Rules Effective from Today </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT</strong> is no kettle to call the POT black, but the dreaded POT (Point Of Taxation) Rules are here effective today, albeit a revised and confused one. Massive amendments have been made to the POT Rules. Let us start at the end. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rule 9 </strong>has been substituted and will now read as: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>“9. Transitional Provisions.- Nothing contained in <strong>this sub-rule </strong> shall be applicable,- </em></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(i) where the provision of service is completed; or </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(ii) where invoices are issued </em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>prior to the date on which these rules come into force. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Provided that services for which provision is completed on or before 30th day of June, 2011 or where the invoices are issued upto the 30th day of June, 2011, the point of taxation shall, at the option of the taxpayer, be the date on which the payment is received or made as the case may be.”. </em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The intention is to give an option to the assessee to come into POT from today or 1 st July 2011. But the rule says, “ <em>Nothing contained in <strong>this sub-rule </strong> shall be applicable…”. </em>The only problem is that there is no ‘<strong><em>sub-rule'</em></strong>. What they should have written is, “<em>Nothing contained in <strong> these rules</strong>…” </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is what happens when you rush in with legislation! When there is an option to the assessee to join the scheme after three months, what is the point in rushing through with the Point. Couldn't they issue draft rules and wait for a month for comments? And when there is an option to join after three months, who will get into this boiling POT now? Unfortunately the option is also not clear! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rule 3 </strong> Of the POT Rules have been substituted with a new Rule whereby Point Of Taxation shall be: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. the time when invoice is issued and if no invoice is issued within 14 days, it will be the date of completion. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. If payment is received before that, the time of receipt of payment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. If advance is received, the date of receipt of advance. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Fair enough! But… </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Suppose I completed the service on 25th April. If I issued the invoice on 9th May, I am liable to pay service tax in May which can be paid by 5th June. Now, If I fail to issue invoice within 14 days, my liability will be on 25th April and I have to pay service tax on 5th May. But, on 5th May, I did not even know about my failure to issue invoice. So if you are not issuing invoices within 14 days, you have to pay interest. Thank god there are no default provisions ( Rule 8 of CER) in ST as of now. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And as a lawyer when do I complete the service? Is it when I appear before the Tribunal or when I collect the order and give to the client or when I advise him to appeal or when I win in the Supreme Court or when the Government gets the Supreme Court order over-ruled by retrospective legislation or when the issue starts all over again? (It must be fairly conceded that this question has been answered in Rule 7) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rule 4 </strong> has been amended to clarify that change in the effective rate of tax shall also include change in that portion of value on which tax is payable in terms of an exemption notification or rules made in this regard. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rule 6 </strong> has been substituted with a new rule with an explanation that <em>where the provision of the whole or part of the service is determined periodically on the completion of an event in terms of a contract, which requires the service receiver to make any payment to service provider, the date of completion of each such event as specified in the contract shall be deemed to be the date of completion of provision of service. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rule 7 </strong> has been substituted with a new rule whereby the point of taxation shall be the date of making or receiving the payment for: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(i) Export of services; </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Persons, where the obligation to pay tax is on the service recipient in terms of rule 2(1)(d) of the Service Tax Rules, 1994 in respect of services notified under section 68(2) of the Finance Act, 1994. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Individuals, proprietorships and partnership firms providing specified services (Chartered Accountant, Cost Accountant, Company Secretary, Architect, Interior Decorator, Legal, Scientific and Technical consultancy services). The benefit shall not be available in case of any other service also supplied by the person concerned along with the specified services. </font></em></p>
</blockquote>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The Point about Point is that there is no Point in Point (of taxation). </strong></font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2011/stnot11_025.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 25/2011–Service Tax, Dated : March 31, 2011 </strong></font></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Export and Import of Services </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>second proviso to clause (ii) of sub-rule (1) of rule 3 of the Export of Services Rules, 2005, reads as, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Provided further that where the taxable services referred to in sub-clauses (zzg)[maintenance or repair], <strong>(zzh) </strong>[technical testing] and (zzi)[technical inspection and certification] of clause (105) of section 65 of the Act, are provided in relation to any goods or material or any immovable property, as the case may be, situated outside India at the time of provision of service, through internet or an electronic network including a computer network or any other means, then such taxable service, whether or not performed outside India, shall be treated as the taxable service performed outside India. </em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this is amended to omit <strong>zzh</strong>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A similar amendment is made to Taxation of Services (Provided from Outside India and Received in India) Rules, 2006. </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=40&filename=notification/servicetax/2011/stnot11_022.htm" target="_blank">Notification No. 22/2011</a> and</strong> <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2011/stnot11_023.htm" target="_blank">23/2011–Service Tax, Dated : March 31, 2011 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax Valuation – Money Changing </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DETERMINATION of value of service in relation to money changing </strong>: for the words “reference rate for that currency for that day”, the words “reference rate for that currency at that time” shall be substituted. </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=40&filename=notification/servicetax/2011/stnot11_024.htm" target="_blank">Notification No. 24/2011–Service Tax, Dated : March 31, 2011 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax Rules - Amended </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>HERE</strong> is a real joke: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Notification No. 3/2011 dated 01.03.2011, Service Tax Rules were amended as follows with effect from 01.04.2011: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>In the Service Tax Rules, 1994 (hereinafter referred to as the said rules) in rule 4A, in subrule (1),- </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(i) for the word “completion of”, the word “provision of” shall be substituted; </em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now by the Notification issued yesterday Service Tax Rules are amended as follows with effect from 01.04.2011: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>In the Service Tax Rules, 1994 (hereinafter referred to as the “said rules”), in rule (4A), in sub-rule (1),- </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(i) for the words “provision of”, the words “completion of” shall be substituted; </em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now which of these two notifications takes precedence? Do I first substitute <em>provision </em> for <em>completion </em> and then substitute that substituted <em>provision </em> with <em>completion </em>to reach where I originally was?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It takes real ingenuity to create such confusion. </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=40&filename=notification/servicetax/2011/stnot11_026.htm" target="_blank">Notification No. 26/2011–Service Tax, Dated : March 31, 2011 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax – Exemption to Inter Banking Transactions </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY</strong> Notification No. 19/2009 dated 07.07.2009, service provided by one scheduled bank to another scheduled bank in relation to interbank transactions of purchase and sale of foreign currency, was exempted. Now this exemption is available to any bank, including a bank located outside India, or money changer. </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=40&filename=notification/servicetax/2011/stnot11_027.htm" target="_blank">Notification No. 27/2011–Service Tax, Dated : March 31, 2011 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>And TRU Explains! </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>THE</strong> JS, TRU-II (Service Tax) has explained the amended provisions. One of the clarifications is, “if the amount of invoice is renegotiated due to deficient provision or in any other way changed in terms of conditions of the contract (e.g. contingent on the happening or non-happening of a future event), the tax will be payable on the revised amount provided the excess amount is either refunded or a suitable credit note is issued to the service receiver. <strong>However, concession is not available for bad debts</strong>.” Even if my client does not pay me, I am required to pay the Service Tax! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He has requested all the officers to explain and clarify the new provisions to taxpayers! How many officers will understand the new provisions to explain them to the tax payers? And how many officers are going to <em>twist </em> the provisions to fix the taxpayers? </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=41&filename=notification/servicetax/2011/TRU_Letter_March_31.htm" target="_blank">JSTRU F No. 341/34/2010-TRU, Dated : March 31, 2011 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Rule 4(7) of the CENVAT Credit Rules amended – Another “we told you so…” </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>IN </strong>our post budget analysis, within a few hours after the notifications were made public, we suggested that Rule 4(7) of the CENVAT Credit rules 2004 needs to be amended in tune with the Point of Taxation Rules, 2011. <u><strong>(<a href="http://www.taxindiaonline.com/RC2/union_budget/ub2011-12/bud2011_12.htm" target="_blank">Payment of Service Tax on accrual basis on par with Excise – Where is corresponding amendment to Rule 4(7) of CCRs, 2004?</a></strong></u><strong>)</strong>. We suggested that “Now that the Rule 6 of Service Tax rules is amended with effect from 1.4.2011 to make the assessee liable for payment of service tax on par with excise, there is no reason to retain this condition in CENVAT Credit Rules. However, such an important amendment is missing in the CENVAT Credit Rules, 2004. Hope corrective action will be taken before 1.4.2011”. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the good Board did it before 1.4.2011. Rule 4(7) of the CENVAT Credit rules has been amended to allow the CENVAT credit in respect of input service on or after the day on which the invoice, bill or, as the case may be, challan referred to in rule 9 is received subject to certain “provisos” mentioned therein. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Credit on Supplementary Invoices </strong>: Rule 9 of the CENVAT Credit Rules has been amended to stipulate a supplementary invoice issued by a service provider as a valid document for taking credit.</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=30&filename=notification/excise/2011/exnt11_13.htm" target="_blank">NOTIFICATION NO 13/2011-CX.,(N.T.), Dated: March 31, 2011</a> </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs
- Arrival Card For International Passengers – New Requirements </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>THE</strong> following declarations are required to be made by the passengers at the time of arrival at the international airport in Para 7 of the Customs part of Arrival Card for Passengers: </font></p>
<div align="justify">
<table width="450" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td width="38" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a </font></p></td>
<td width="425" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Are you carrying any plants/seeds/fruits/flowers/vegetables/bulbs/other planting materials? </font></p></td>
<td width="66" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yes/No </font></p></td>
</tr>
<tr>
<td width="38" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b </font></p></td>
<td width="425" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Are you carrying any meat & meat products/dairy products/live or ornamental fish/poultry/ poultry products? </font></p></td>
<td width="66" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yes/No </font></p></td>
</tr>
<tr>
<td width="38" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c </font></p></td>
<td width="425" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Are you carrying any Satellite phone? </font></p></td>
<td width="66" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yes/No </font></p></td>
</tr>
<tr>
<td width="38" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d </font></p></td>
<td width="425" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Are you carrying foreign currency notes in excess of USD 5,000 or equivalent? </font></p></td>
<td width="66" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yes/No </font></p></td>
</tr>
<tr>
<td width="38" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e </font></p></td>
<td width="425" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Are you carrying foreign exchange (i.e. foreign currency notes, drafts, Travellers' cheques , letters of credit, bills of exchange or any instruments where under any amount is payable in Indian currency) in excess of USD 10,000 or equivalent? </font></p></td>
<td width="66" valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yes/No </font></p></td>
</tr>
</table>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC has also approved modification in Part ‘C' (Information regarding Customs) to the ‘Important Instructions' mentioned overleaf of the Arrival Card for Passengers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The modified Customs instructions are: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Indian Customs require you to declare goods mentioned at S.No.7 overleaf, goods in excess of the free allowance, prohibited or restricted goods (including Narcotic drugs, wildlife and its products, and arms and explosives), and commercial goods at Red Channel counter. Attempt to import these goods and/or non-declaration can lead to penal consequences, including arrest. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Free allowance for passengers of Indian origin and foreigners residing in India of age of and above 10 years returning from the countries other than Nepal, Bhutan, Myanmar and China is normally Rs.25,000/- per passenger. Alcoholic liquor or wines upto 2 liters and 200 cigarettes can be brought as part of the free baggage allowance. Free allowance for passengers of Indian origin or a foreigner residing in India of the age of and above 10 years returning from Nepal, Bhutan, Myanmar and China is normally Rs.6,000/-. One laptop computer is allowed duty free for an adult passenger of the age of 18 years or above. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Tourists of foreign origin can import duty free gift and souvenirs worth Rs. 8,000/ </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Tourists can import used personal affects including laptop, palmtop computer and reasonable jewellery free of duty, if these are re-exported at the time of departure. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. In case your baggage is mishandled/lost on arrival, please obtain endorsement of the unavailed free allowance, if any, from the Customs Officer at Mis -handled Baggage Counter. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. For updated information and in case of any difficulty or complaint, please contact the Customs Officer (PRO). </font></p>
</blockquote>
<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/2011/cuscir11_016.htm" target="_blank">CBEC Circular No. 16/2011-Customs, Dated : March 31, 2011 </a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Good Times Ahead for Consultants and Advocates </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Lawyers and consultants should be grateful to the Board for the bounty offered on a platter. If you are planning a holiday this summer, please postpone it, the CBEC is going to pay for it. Nobody will understand these complicated changes and the poor assessees are already making a beeline to the consultants to simply understand what the babus mean. Is it impossible to make laws simple and understandable? If this is a preview of GST, it will not be the State Governments but the trade which will oppose GST. </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"> – Monday's cases</font></strong></font></strong></font></p>
<p align="justify"><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><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Input Services used for exempted goods and trading - Proportionate reversal of CENVAT Credit Ordered: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> this case undoubtedly the appellants have not maintained separate account of input service credit (in dispute) separately for dutiable as well as non-dutiable exempted goods. The only option left with the appellants either to reverse proportionate input service credit or to reverse 10% of the value of the exempted final product at the time of clearance. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Whether it is necessary for assessee to own a ship for purpose of claiming deduction under Sec 33AC - NO, says ITAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>issues before the Tribunal are - Whether, for the purpose of deduction u/s 33AC, it is necessary for assessee to own a ship; Whether contractual receipts are also admissible deduction and Whether, if receipt from operation of ship is less than other receipts, penalty is leviable. And the decision goes in favour of the assessee. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Suspension of licence under Regulation 20(2) of CHALR, 2004 is ordinarily resorted to either pending investigation or while contemplating it - undue delay does violence to the mandate of Regulation 20(2) - : CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong> licence issued to the CHA by the Commissioner of Customs, Aurangabad was suspended on 07.07.2010 under Regulation 20(2) of the Customs House Agents Licensing Regulations, 2004 after noting the role played by the CHA in relation to certain export handled by them at ‘Mundra Port' within the jurisdiction of the Commissioner of Customs, Kandla. Subsequently, after following the principles of natural justice, the Commissioner confirmed the suspension order on 9.9.2010. Incidentally, the CHA was operating their business at two other places, namely, Mumbai and Pipavav in addition to Aurangabad and Mundra. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Monday for the judgements </strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more DDT</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Weekend. </font></p>
<div 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">vijaywrite@taxindiaonline.com </a></font>
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