TIOL-DDT 1637 · 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 1637</font><br>
24.06.2011 <br>
Friday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Salaried Taxpayers with income up to Rs. 5 lakh exempted from filing IT Returns </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENTRAL</strong> Government has exempted</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em><font color="#663399"><strong>An Individual whose total income for the relevant assessment year does not exceed five lakh rupees and consists of only income chargeable to income-tax under the following head, - </strong></font></em></font></p>
<p align="justify"><font color="#663399"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(A) "Salaries"; </font></em></strong></font></p>
<p align="justify"><font color="#663399"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(B) "Income from other sources", by way of interest from a savings account in a bank, not exceeding ten thousand rupees. </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year 2011-12, subject to the following conditions: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The ‘individual' referred above - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em><font color="#663399"><strong>(i) has reported to his employer his Permanent Account Number (PAN); </strong></font></em></font></p>
<p align="justify"><font color="#663399"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) has reported to his employer, the incomes mentioned in sub-para (B) of para 1 and the employer has deducted the tax thereon; </font></em></strong></font></p>
<p align="justify"><font color="#663399"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) has received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government; </font></em></strong></font></p>
<p align="justify"><font color="#663399"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government; </font></em></strong></font></p>
<p align="justify"><font color="#663399"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) has no claim of refund of taxes due to him for the income of the assessment year; and </font></em></strong></font></p>
<p align="justify"><font color="#663399"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vi) has received salary from only one employer for the assessment year. </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The exemption from the requirement of furnishing a return of income-tax shall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income for the relevant assessment year. Persons receiving salary from more than one employer, having income from sources other than salary and interest income from a savings bank account, or having refund claims shall not be covered under the scheme.</font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2011/it11not036.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT NOTIFICATION NO. 36/2011, Dated: June 23, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Cost Inflation Index notified for FY 2011-12 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENTRAL</strong> Government has notified the Cost Inflation Index for FY 2011-2012 as 785.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It may be noted that vide Notification No. S.O. 709(E) dated August 20, 1998 as amended, issued in terms of Explanation (v) of section 48 of IT Act, 1961, Central Government has been notifying the Cost Inflation Indices for respective financial years from time to time with 1981-82 as the base year with CII as 100. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In terms of Explanation (v) of section 48 of IT Act, 1961 ‘Cost Inflation Index' in relation to a previous year, means such Index as the Central Government may, having regard to seventy-five per cent of average rise in the Consumer Price Index for urban non-manual employees for the immediately preceding previous year to such previous year, by notification in the Official Gazette, specify, in this behalf. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CII is applied for computing long term ‘capital gains' on sale of assets in terms of section 48 of IT Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CII from 1981-82:</font></p>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr>
<td valign="top" bgcolor="#009900"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sr. </font></strong></p>
<p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">No </font></strong></p></td>
<td valign="top" bgcolor="#F8976D"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Financial Year </font></strong></p></td>
<td valign="top" bgcolor="#FFFF00"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CII </font></strong></p></td>
<td valign="top" bgcolor="#009900"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sr.No </font></strong></p></td>
<td valign="top" bgcolor="#F8976D"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Financial Year </font></strong></p></td>
<td valign="top" bgcolor="#FFFF00"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CII </font></strong></p></td>
<td valign="top" bgcolor="#009900"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sr.No </font></strong></p></td>
<td valign="top" bgcolor="#F8976D"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Financial Year</font></strong></p></td>
<td valign="top" bgcolor="#009900"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CII </font></strong></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1981-82 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">100 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1990-91 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">182 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">19 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1999-00 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">389 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1982-83 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">109 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1991-92 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">199 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">20 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2000-01 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">406 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1983-84 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">116 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1992-93 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">223 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">21 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2001-02 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">426 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1984-85 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">125 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1993-94 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">244 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">22 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2002-03 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">447 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1985-86 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">133 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1994-95 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">259 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">23 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2003-04 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">463 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1986-87 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">140 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1995-96 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">281 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2004-05 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">480 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1987-88 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">150 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1996-97 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">305 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">25 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2005- 06 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">497 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1988-89 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">161 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">17 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1997-98 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">331 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">26 </font></p></td>
<td bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2006-07 </font></p></td>
<td bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">519 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1989-90 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">172 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18 </font></p></td>
<td valign="top" bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1998-99 </font></p></td>
<td valign="top" bgcolor="#FFFF00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">351 </font></p></td>
<td valign="top" bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">27 </font></p></td>
<td bgcolor="#F8976D"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2007-08 </font></p></td>
<td bgcolor="#009900"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">551 </font></p></td>
</tr>
</table>
<br>
<table width="90%" border="1" align="center" cellpadding="3" cellspacing="0">
<tr bgcolor="#009900">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">28 </font></strong></p></td>
<td valign="top" bgcolor="#009900"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2008-09 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">582 </font></strong></p></td>
</tr>
<tr bgcolor="#009900">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">29 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2009-10 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">632 </font></strong></p></td>
</tr>
<tr bgcolor="#009900">
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">30 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2010-11 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">711 </font></strong></p></td>
</tr>
<tr bgcolor="#009900">
<td valign="top"><p align="center"><strong><font color="#FFFF00" size="2" face="Verdana, Arial, Helvetica, sans-serif">31 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font color="#FFFF00" size="2" face="Verdana, Arial, Helvetica, sans-serif">2011-12 </font></strong></p></td>
<td valign="top"><p align="center"><strong><font color="#FFFF00" size="2" face="Verdana, Arial, Helvetica, sans-serif">785 </font></strong></p></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2011/it11not035.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT NOTIFICATION NO. 35/2011, Dated: June 23, 2011</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti-Dumping Duty imposed on Sewing Machine Needles </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENTRAL</strong> Government has imposed anti dumping duty on ‘sewing machine needles' falling under Chapter 8452.30 of Customs Tariff Act, 1975 and originating in or exported from the People's Republic of China. The anti-dumping duty shall be levied at the rate specified in the notification for a period of five years (unless revoked, superseded or amended earlier) from the date of this notification. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_050.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION NO. 50/2011-Cus., Dated: June 22, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DEPB Benefits made available till September 30, 2011 - Customs Notification amended </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=12663" target="_blank">TIOL-DDT 1633 20.06.2011</a></strong> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">we reported that DEPB scheme was extended till September 30, 2011 by the DGFT by amending Para 1.1 of HBP (Vol.I) of the FTP. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A corresponding amendment is now made in Customs Notification No. 97/2009-Cus dated September 11, 2009 to notify this extension by substituting para 2 of this notification. The substituted para 2 reads as follows: </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“2. This notification shall be valid in respect of the Duty Entitlement Pass Book Scrips issued by the Licensing Authority against exports having Let Export Order up to and inclusive of the 30th day of September, 2011.” </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Further an ‘explanation' is inserted at the end of this notification to explain the meaning of ‘Let Export Order' and it reads as follows: </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“(v) “Let Export Order” means an order which permits clearance and loading of the goods for exportation by the proper officer in accordance with section 51 of the said Customs Act.” </font></em></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_051.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION NO. 51/2011-Cus., Dated: June 22, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Global customs and police operation nets large seizures of bomb-making material</font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WORLD</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Customs Organization (WCO) Secretary General Kunio Mikuriya, U.S. Department of Homeland Security (DHS) Secretary Janet Napolitano and European Commissioner for Taxation and Customs Union, Audit and Anti-Fraud Algirdas Šemeta applauded the stunning results of a global operation to stop the trade in bomb-making material. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">First proposed to the WCO by DHS as Project Global Shield, in March 2011 the WCO endorsed a proposal for the project to become a long-term programme, enabling customs and the police to continue multilateral efforts to combat the illicit trafficking and diversion of precursor chemicals. The Programme is fully supported by INTERPOL and the United Nations Office on Drugs and Crime (UNODC); strategic international partners in the fight to stop this form of crime. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Effective use of risk management by customs and law enforcement officials has enabled countless lives to be saved and costly disruptions to world trade to be avoided,” said Secretary General Mikuriya. “The results of Global Shield are clear proof of the value of international collaboration which is a powerful tool in our efforts to protect the global supply chain, combat illicit trade and ensure the safety of society.” </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Currently more than 70 countries are participating, which to date has resulted in numerous seizures. This is the first time that participating WCO Members have joined forces to keep bomb-making chemicals out of the hands of organizations involved in terror and other transnational organized crime. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Participants provided information on the movement of just over 2 billion kilograms of 14 high-risk precursor chemicals: Acetic Anhydride, Acetone, Aluminum Powder, Ammonium Nitrate, Calcium Ammonium Nitrate, Hydrogen Peroxide, Nitric Acid, Nitromethane, Potassium Chlorate, Potassium Nitrate, Potassium Perchlorate, Sodium Chlorate, Sodium Nitrate and Urea. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Discussion on India's Progress in Financial Action Task Force Plenary in Mexico </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>INDIA</strong> joined the Financial Action Task Force (FATF) as its 34th member in June 2010. At present FATF has 36 members comprising of 34 countries and two organizations namely, the European Union and the Gulf Cooperation Council. At the time of joining FATF, India gave an Action Plan to overcome certain deficiencies in a time bound manner. The items of the Action Plan were divided into Immediate, short term and Medium term items, which were to be completed by 30.6.2010, 31.3.2011 and 31.3.2012 respectively. India has completed the Immediate and Short term Action Plan items within the stipulated time and the same have been acknowledged by the FATF technical onsite team which visited India in April 2011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">India is participating in the Financial Action Task Force (FATF) plenary and working group meetings being held in Mexico City, Mexico from 20-24 June 2011. The plenary meeting discussed India's Follow up Report of the FATF technical onsite team which visited India in April 2011 to assess India's fulfillment of its Short term Action Plan and if it is on track to fulfill its Medium term commitments. The FATF secretariat commended India's commitment to a strong Anti Money Laundering/Combating Financing of Terrorism (AML/CFT) regime and acknowledged that India has made significant progress on all action points as per the time schedule. This view was shared by the FATF Plenary. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It may be noted that ‘ The Financial Action Task Force' (FATF) is an inter-governmental body whose purpose is the development and promotion of policies, both at national and international levels, to combat money laundering and terrorist financing. The Task Force is therefore a "policy-making body" which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The FATF monitors members' progress in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally. In performing these activities, the FATF collaborates with other international bodies involved in combating money laundering and the financing of terrorism. </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><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#663399"><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">Income Tax </font></font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income tax - Whether when commission is paid to Directors of assessee company who hold all shares in company, disallowance is warranted by treating commission being paid in lieu of dividend which is liable to tax - YES, rules Special Bench </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the Special Bench are - Whether when commission is paid to the Directors of the assessee-company who hold all the shares of the company, disallowance is warranted on the ground that the commission was paid in lieu of dividend which is liable to tax; Whether section 36(1)(ii) is applicable only to employees who are not shareholders; Whether the expression “payable” used in section 36(1)(ii) means that the shareholder should have right to receive dividend and since the payment of dividend is discretionary to be decided by the management of the company and not compulsory, it cannot be said that the dividend is payable in case of the employee directors and whether payment of bonus or commission to an employee / director will also be covered by the provisions of section 36(1)(ii) and not under section 37(1). And the verdict goes against the assessee. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Taxable services received from offshore service providers - specific provision making service recipient in India liable to pay service tax was introduced only with effect from 18.4.2006 by inserting Section 66A in Finance Act, 1994 and during period prior 18.4.2006, Rule 2(1)(d) without backing of statutory provisions in Finance Act, 1994 was not valid: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WITH</strong> effect from 16.8.02, proviso to sub-rule 1 of Rule 6 of the Service Tax Rules was deleted and at the same time definition of "person liable for paying service tax" as given in Rule 2 (1) (d) of Service Tax Rules, 1994 was amended so as to provided that in relation to any taxable service provided by a person, who has permanent address or usual place of residence or business establishment in a country than India and does not have any office or business establishment in India, the person in India who receives such service would be the person liable to pay service tax on the service so received by him. </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">PVC Fishing float is not a ‘Floating Structure' classifiable under heading 89.07 but is correctly classifiable under SH 39.26 of CETA, 1985 - Revenue appeal dismissed: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> respondent is engaged in the manufacture of excisable goods viz. P.V.C. Floats falling under Chapter heading no. 39.26 of Central Excise Tariff Act, 1985. A demand notice for Rs.13,93,207/- was issued alleging that the assessee had mis-classified the said product under SH 3926.90 instead of SH 8907.00 of CETA 1985 and consequently had not paid excise duty @16% amounting to Rs.13,93,207/-. The SCN was confirmed by the Additional Commissioner and an equal penalty was imposed. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements </font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Weekend.</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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