TIOL-DDT 1614 · 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 1614</font><br>
</strong></font><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24.05.2011<br>
</font></strong><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tuesday</font></strong></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Corporate Governance - MOC Initiative</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> order to save trees and environment by cutting down the consumption of costly paper habits, the Ministry of Corporate Affairs has taken a “Green Initiative in the Corporate Governance” by allowing paperless compliances by the companies under the provisions of the Companies Act, 1956. </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) <strong>Allowing service of Documents including Balance Sheets and Auditors report etc through e-mail addresses:</strong> In order to reduce cost of posting and speedy delivery of documents, service of documents through electronic mode has been permitted under section 53 of the Companies Act,1956 in place of service of document under certificate of posting. Similarly, to reduce the consumption of papers and speedy secure delivery, service of copies of Balance Sheets and Auditors Report etc., to the members of the company as required under section 219 of the Companies Act, 1956 has been allowed to be served through electronic mode by capturing their e-mail addresses available with the depositories or by obtaining directly from the shareholders. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) <strong>Participation by Directors and shareholders in meetings through video conferencing</strong>: To provide larger participation and for curbing the cost borne by the Company, Directors, and shareholders to attend various meetings under the provisions of the Companies Act, 1956, participation through video conferencing has been permitted subject to certain compliances. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) <strong>Voting in General Meeting of Companies through electronic mode</strong>: In order to have secured electronic platform for capturing accurate electronic processes, Central Depository Services (India) Ltd (CDSL) and National Securities Depositories Limited (NSDL) are being given approval by the Ministry of Corporate Affairs to provide their electronic platform for capturing accurate electronic voting in General meetings of the company. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) <strong>Issue of Digital Certificates by Registrar of Companies</strong>: The Registrar of Companies has to issue a number of certificates to the companies and other stakeholders as required under the provisions of the Companies Act, 1956. In order to cut timelines and an another step towards “Green Initiative” it has been decided that all certificates and standard letters issued by the Registrar of Companies will now be issued electronically under the Digital Signatures of the Registrar of Companies. </font></p>
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<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax – DRP Reconstituted </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CBDT has reconstituted the Dispute Resolution Panel (DRP) comprising of three Commissioners/DITs as Members of DRT in Delhi, Ahmedabad, Bangalore, Hyderabad, Kolkata, Chennai, Mumbai and Pune. </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiainternational.com/circularDesc.php?qwer43fcxzt=MTMwNA==">CBDT
F No. 500/15/2011 – FTD-II, Dated: May 23, 2011 </a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The Taxpayer Advocate - US IRS Initiative </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Taxpayer Advocate Service (TAS) is an independent organization within the IRS. It helps taxpayers who are experiencing economic harm, such as not being able to provide necessities like housing, transportation, or food; taxpayers who are seeking help in resolving problems with the IRS; and those who believe an IRS system or procedure is not working as it should. Here are ten things according to the IRS, every taxpayer should know about TAS: </font></p>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Taxpayer Advocate Service is your voice at the IRS.
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Our service is free and tailored to meet your needs.
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ You may be eligible for our help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn't working as it should.
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The worst thing you can do is nothing at all!
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ We help taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. This includes businesses as well as individuals.
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ If you qualify for our help, we'll do everything we can to get your problem resolved. You will be assigned to one advocate who will be with you at every turn.
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ We have at least one local taxpayer advocate office in every state, the District of Columbia, and Puerto Rico. You can call your local advocate, whose number is in your phone book, in Pub. 1546, Taxpayer Advocate Service -- Your Voice at the IRS, and on our website at <a href="http://www.irs.gov/advocate/article/0,,id=97404,00.html" target="_blank"><strong>www.irs.gov/advocate</strong></a>. You can also call our toll-free number at 1-877-777-4778.
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Our tax toolkit at <a href="http://www.irs.gov/app/scripts/exit.jsp?dest=http%3A%2F%2Fwww.taxpayeradvocate.irs.gov%2F" target="_blank"><strong>www.taxtoolkit.irs.gov </strong></a>can help you understand these rights. </font>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ TAS also handles large-scale or systemic problems that affect many taxpayers. If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at <a href="http://www.irs.gov/advocate/article/0,,id=97404,00.html" target="_blank"><strong>www.irs.gov/advocate</strong></a>.
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ You can get updates on hot tax topics by visiting our YouTube channel at <strong><a href="http://www.irs.gov/app/scripts/exit.jsp?dest=http%3A%2F%2Fwww.youtube.com%2FTASNTA" target="_blank">www.youtube.com/tasnta</a></strong><a href="http://www.irs.gov/app/scripts/exit.jsp?dest=http%3A%2F%2Fwww.youtube.com%2FTASNTA"> </a>and our Facebook page at <a href="http://www.irs.gov/app/scripts/exit.jsp?dest=http%3A//www.facebook.com/YourVoiceAtIRS" target="_blank"><strong>http://www.facebook.com/YourVoiceAtIRS</strong></a>, or by following our tweets at <a href="http://www.irs.gov/app/scripts/exit.jsp?dest=http%3A%2F%2Ftwitter.com%2FYourVoiceatIRS" target="_blank"><strong>http://twitter.com/YourVoiceatIRS</strong></a>.</font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Shouldn't the Indian Revenue Service think of something like this? </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>Lamba</em> Wait at Airport </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BOLLYWOOD</strong> actress Minissha Lamba was detained at the Mumbai airport carrying nearly 50 Lakh rupees worth of undeclared jewellery, while returning from the Cannes Festival. It seems the interrogation lasted 16 hours. It seems the ornaments were taken by her from India for promotional purposes of a leading jewellery brand. The Amul ad lost no time to capture this. </font></p>
<p align="center"><img src="http://www.taxindiaonline.com/RC2/image/stories/lamba.jpg" alt="Legal Corner Icon" width="429" height="432" hspace="5" border="0" align="center"></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Advantages of Being an SDR in CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>USUALLY</strong> a junior lawyer will be carrying files for decades before he is given the opportunity by his senior to plead before the Bench. Here you are who can start pleading from day one. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is the place when suddenly all your senses will become very active and possibly in your whole life you might have never used all your senses together at the highest efficiency. When you are standing before the Bench, simultaneously you will be listening, writing/noting, talking, thinking, discussing, answering, speaking and also you will be behaving in completely different manner than the way you used to do in your comfortable and secure chamber, during your field postings. Take it as an opportunity to mould your personality for better. Facility wise this is not a bad place than many other field formations. One thing that I can assure you that after completion of your tenure you will be better placed to listen to everyone, you will speak only when it is very essentially required and above all you will develop habit of having patience to wait for your turn to speak. You will develop to have respect for law and rules and above all you will be in position to appreciate the legal and adjudication system of this country. You will start reading the full order for the first time in your life and certainly you will be in position to appreciate the shortcoming of any adjudication order. Hopefully after this tenure you will not be depending upon your subordinates for writing your orders; even if you get it written by your subordinates at least you will read once before signing on the dotted lines. You will certainly turn out to be a better officer now onwards. </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From a blog by an SDR in CESTAT </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">That's Why I am a Judge Now</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a High Court a junior lawyer was asking for an adjournment because her senior could not be present. The Judge tried to persuade her to argue but she was most reluctant and was pleading pathetically for the adjournment. The judge said, “This is your best chance to argue a case; please go ahead, we will all help you and we will not decide the case until your senior appears”, but the junior lawyer was adamant. Then the judge asked her, “will your lawyer take you to task for arguing the case?; After the very first case that I argued in the absence of my senior, I was dismissed by him and that is why I became a High Court Judge – otherwise I would have still been a junior” </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax – Rectification of Mistakes pointed out by CPC – BCAS to take up the matter</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> large number of taxpayers are facing tremendous difficulties in getting rectification order arising from the mistakes noticed in the intimation under section 143(1)(a) of Income-tax Act, 1961 issued by the Central Processing Center (CPC) resulting in erroneous tax demands and severe hardships to the taxpayers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It seems that the problem become more acute due to lack of clarity about the methodology of getting such mistakes rectified and also on account of the fact that the applications for rectification made by the assessees are remaining pending without any proper action. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The major mistakes observed in the intimation are: </font></p>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ TDS Credit not given </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Adjustment of wrong demand for earlier years based on erroneous records against the legitimate refund due to the assessee in subsequent years </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Wrong adjustment while computing gross total income </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bombay Chartered Accountants' Society is actively considering taking up this matter with the appropriate authorities and requests all the members to send a brief summary of the difficulties without disclosing identity of the concerned assessee. The information sent by the members will remain confidential. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Based on the response received from the members, the Taxation Committee of the Society proposes to compile a detailed representation and vigorously take it up with appropriate authorities to obtain administrative relief where feasible. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is really a major problem and it is laudable that the distinguished society is taking up the matter. </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"> – Wednesday's cases</font></strong></font></strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a></a><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"><strong><font color="#663399">Service Tax</font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Determination of applicability of Notfn 13/03-ST dated 20.06.2003 has a direct impact on rate of service tax payable by appellant – matter has to go to Division Bench: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong> has a direct impact on the rate of service tax payable by the appellants. Therefore, as per the provisions of section 35D(3)(a), the matter has to go before the Division Bench for consideration and disposal. In view of the mistake apparent on records of the case, the said order is to be recalled and it is ordered accordingly. Consequently, the appeal is restored and the registry is directed to place the matter before the Division Bench for consideration and disposal. </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 40A(2)(b) - Whether when assessee imports raw materials from non-resident promoter, it can be presumed that assessee pays an exclusive price, and hence, disallowance is warranted - NO, rules Delhi HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>issues before the High Court are - Whether when assessee imports raw materials from its non-resident promoter, it can be presumed that the assessee pays exclusive price for the same; whether AO is right in doubting the ALP and making 2% disallowance without any evidence on record; Whether when Customs assessment order is produced to establish the ALP of imported goods, it can be said that the assessee has discharged its liability in this connection and whether onus to disprove it is cast on the AO in such a situation. And the verdict goes against the Revenue. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Manufacture - vitamin mix or intermixture of vitamin emerges out of process of mixing of vitamins and it results in manufacture: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is immaterial whether the product which are to be treated for rendering them marketable were having any attribute of marketability or not prior to adoption of any such treatment. The expression retail pack which does not relate to retail consumer. It refers to the circumstances in which the retail pack is made available to a consumer who may procure such goods even in bulk. </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 Day.</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>
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