TIOL-DDT 1721 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1721 </font><br>
</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>27.10.2011 <br>
</strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Thursday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FTP - Export - Pharmaceuticals – Bar-coding </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Public Notice No. 59 (RE-2010)/2009-14 dated 30.06.2011, incorporation of barcodes (1 D) encoding unique product identification code (GTIN), Batch Number, Expiry Date and Unique Serial Number of the Tertiary pack (shipper/carton) on export consignments of pharmaceuticals and drugs <strong> </strong>has come into effect from 01.10.2011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT clarifies that requirement is compulsory for pharmaceuticals and drugs <strong>manufactured </strong>on or after 01.10.2011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Barcoding will be mandatory for Secondary Level Packaging with effect from 01.01.2012 and for Primary Level Packaging (strip/vial/bottle) with effect from 01.07.2012 </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2010/dgft10cir043.htm" target="_blank"><strong>DGFT Policy Circular No. 43 (RE-2010)/2009-2014, dated: October 25 2011 </strong></a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Location of Forex Counters in Airports </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON</strong> a review relating to compliance of the Foreign Exchange Counters (full-fledged branches/ extension counters) opened by Authorised Dealer Category-I banks, Authorised Dealers Category-II and Full Fledged Money Changers beyond the Domestic Tariff Area in international airports in India, RBI has decided that : </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. <strong>Arrival </strong>: Foreign Exchange Counters in the arrival halls in international airports in India shall ideally be established after the Customs Desk (Green Channel/Red Channel). However, Foreign Exchange Counters may also be established between the Immigration Desk and the Customs Desk in international airports in India, subject to the condition that these counters shall only purchase Foreign currency and sell Indian Rupees (INR) and "Encashment Certificates" shall invariably be issued by the money changers to the customers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <strong>Departure </strong>: Foreign Exchange Counters in the departure halls in international airports in India shall be established only before the Customs Desk or the Immigration Desk, whichever comes first. Putting up suitable display at these counters, reminding the passengers that the area is the <strong>last point for non-residents to possess Indian Rupees </strong> (INR) may be followed up with the Airport Authorities. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI has given time up to December 31 2011 to relocate the counters as per the above instructions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Non-compliance with the guidelines would attract penal provisions of Section 11(3) of the Foreign Exchange Management Act, 1999. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2011/rbi11cir038.htm" target="_blank"><strong>RBI Circular No. 38, dated: October 25 2011 </strong></a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong> S
K Goel Makes it to Chairman's Room in CBEC </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> ultimate
dream of any IRS officer would be to become the Chairman of his Board – that
is the highest and most responsible job the Service can offer him. Though
the post of the Chairman is hardly a bed of roses, and it is only after a
few months of becoming Chairman that one realizes the existence of infuriating
thorns, there is chaotic competition for the post. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The present CBEC Chairman is retiring on 31 st of this month. Though Satish Kumar Goel is the senior most Member of the Board, it was not an easy run for him. We understand that he faced stiff competition from the least expected quarters – not from his colleagues in the Board but from a very senior Chief Commissioner who had earlier missed the bus to the Board. The present Members of the Board are from the 1975 and 1976 batches of IRS, while there is a 1974 batch officer working as Chief Commissioner and it seems that he was a strong contender for the top job in CBEC. We understand that finally the Committee of Secretaries has selected SK Goel, who was known as the future Chairman from the day he joined the Board. And he has made it! We have to wait for a few more days to get the official news. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>China's Trial to Replace Turnover Tax with VAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Chinese Government will replace turnover tax with a VAT on select service sectors, such as the transport sector, in Shanghai from Jan. 1, 2012. If the pilot program is successful and the conditions are right, the policy will be extended to some service businesses nationwide. The reform aims to incrementally replace turnover tax with a VAT in all sectors nationwide. This was announced yesterday after a meeting of the Chinese Cabinet. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Currently, the VAT applies only to enterprises or individuals, who sell merchandise, provide processing, repair or assembly service in China. Unlike the business tax, which is charged on a company's revenue regardless of its costs, VAT can have certain costs and expenses deducted. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">China's inflation was running above six percent for four successive months. The VAT reform is aimed at avoiding repeated tax collection and supporting the growth of the advanced service industry. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FM Hums RBI Tune - Repo Rate Increase </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FINANCE</strong> Minister Pranab Mukherjee says that: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ RBI's monetary policy announcement would help in getting us back to a more comfortable inflation situation soon while leaving scope for growth to pick up in the second half of current fiscal year. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ RBI Governor has chosen to reinforce his commitment to moderate inflation and check inflationary expectations, in the face of continued stickiness in headline inflation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ This has implications for credit costs and investment growth. We are looking at all options for strengthening investment sentiments in the coming months. </font></p>
</blockquote>
<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 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>Coercive action when appeal and stay application are pending before Tribunal - High Court directs Tribunal to dispose of Stay Application within two months and till such time Department is restrained from taking action</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHEN </strong>the petitioner has taken the required steps in time and when the Stay Application has not taken up by the Tribunal for no fault of the Petitioner and when the Stay Application still pending before the Tribunal, the Authorities need not take coercive steps. Court directed the respondent to take steps to bring to the notice of the authority concerned to fill up the vacancy in the Tribunal. </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 when assessee is engaged in housing project, receipts from extra work like common installation facilities and generator charges are also eligible for Sec 80IB benefits - YES, rules 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 only the incomes having ‘direct nexus' with the development and sale of housing units are to be regarded as ‘profits from such housing projects' and not profits from some other activities which may be attributable to and not exactly derived from the housing project for the purpose of section 80-IB of the Act; Whether the receipts for ‘extra work', ‘CESC/Generator charges' and ‘for common installations and facilities' by the assessee, for which proportionate additional separate costs are payable by the purchasers/ buyers of different flats forming part of the housing project, are eligible to deduction u/s 80-IB(10) of the Act; Whether the profits for extra work carried out after handing over of possession to the buyers can be included in the separate Profit & Loss Account of the undertaking doing the development of housing project business and hence entitled to deduction u/s 80-IB(10) and whether the AO is justified in not allowing deduction u/s 80IB on the ground that the assessee, which followed completion contract method of accounting, has not obtained completion certificate from the local authority, prior to 31-03-2007, and so, the condition prescribed in clause (a)(ii) of section 80IB(10) is not satisfied. And the verdict goes in favour of the assessee. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Bhootpurva Sainik Society is not a "Commercial Concern" - Fine distinction drawn by Tribunal in case of Punjab Ex-Servicemen corpn would not negate effect of the precedent decision in case of BCCI: CESTAT</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue involved in the bunch of appeals filed before the Tribunal is whether a Society of Ex-Servicemen gets excluded from the purview of service tax as it is not a "Commercial Concern" within the meaning of Section 65(94) of the Finance Act, 1994. The dispute relates to demand of service tax under "Security Agency Service" for the period prior to 18.4.2006. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Tomorrow for the judgements </strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more DDT </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">vijaywrite@taxindiaonline.com </a></font></p>
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