TIOL-DDT 1819 · the untouched capture
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<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=14276"><img src="http://www.taxindiaonline.com/RC2/image/ddt/ddt_1794.jpg" alt="DDT in Limca Book of Records" width="175" height="120" hspace="5" border="0" align="right"></a></font></strong></font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1819</font> <br>
20.03.2012 <br>
Tuesday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Budget 2012 </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TODAY</strong> <strong>DDT</strong> brings you some interesting aspects of the Budget, which do not get the kind of publicity that a small increase in Rail fare done after eight years or a miniscule excise duty on gold jewellery. </font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Our Huge Expenditure</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Do you know on what item we spend most of our money? People believe it is Defence. Wrong!. Our major item of expenditure is interest payments and debt servicing!!!. In 2011-12, this expenditure amounted to Rs.2,75,618 Crores and is budgeted for Rs.3,19,759 Crores in 2012-13 – and this is three times the Budget of a large State. Our Defence Budget for 2011-12 was Rs.1,70,937 Crores and in the coming year it will be Rs.1,93,407 Crores. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The total expenditure for the GOI for 2011-12 was Rs.13,18,720 Crores of which Rs.11,61,940 Crores was revenue expenditure and just Rs.1,56,780 Crores was capital expenditure. This means that in the current year, we spent 88% on sundry unproductive expenditure while our capital expenditure that is building up assets was just 12 percent. The future is not any brighter. In 2012-13 we are to spend Rs.12,86,109 Crores on Revenue expenditure and Rs.2,04,816 Crores on capital expenditure out of a total expenditure of about 15 Lakh Crores. </font></p>
<p><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tax Revenue through the years: In Crores </font></strong></p>
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<td valign="top"><p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2008-09 </font></strong></p></td>
<td valign="top"><p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2009-10 </font></strong></p></td>
<td valign="top"><p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2010-2011 </font></strong></p></td>
<td valign="top"><p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2011-12 </font></strong></p></td>
<td valign="top"><p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2012-2013 </font></strong></p></td>
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<td valign="top" bgcolor="#E68A00"><p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gross Tax Revenue </font></strong></p></td>
<td valign="top" bgcolor="#999999"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6,05,299 </font></p></td>
<td valign="top" bgcolor="#999999"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6,24,528 </font></p></td>
<td valign="top" bgcolor="#999999"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7,93,072 </font></p></td>
<td valign="top" bgcolor="#999999"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9,01,664 </font></p></td>
<td valign="top" bgcolor="#999999"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10,77,612 </font></p></td>
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<td valign="top" bgcolor="#E68A00"><p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Corporation Tax </font></strong></p></td>
<td valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2,13,395 </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2,44,725 </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2,98,688 </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3,27,680 </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3,73,227 </font></p></td>
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<td valign="top" bgcolor="#E68A00"><p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax </font></strong></p></td>
<td valign="top" bgcolor="#999999"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1,06,046 </font></p></td>
<td valign="top" bgcolor="#999999"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1,22,475 </font></p></td>
<td valign="top" bgcolor="#999999"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1,39,069 </font></p></td>
<td valign="top" bgcolor="#999999"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1,66,679 </font></p></td>
<td valign="top" bgcolor="#999999"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1,89,866 </font></p></td>
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<td valign="top" bgcolor="#E68A00"><p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs </font></strong></p></td>
<td valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">99,879 </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">83,324 </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1,35,813 </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1,53,000 </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1,86,694 </font></p></td>
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<td valign="top" bgcolor="#E68A00"><p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p></td>
<td valign="top" bgcolor="#999999"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1,08,613 </font></p></td>
<td valign="top" bgcolor="#999999"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1,02,991 </font></p></td>
<td valign="top" bgcolor="#999999"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1,37,701 </font></p></td>
<td valign="top" bgcolor="#999999"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1,50,075 </font></p></td>
<td valign="top" bgcolor="#999999"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1,93,729 </font></p></td>
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<td valign="top" bgcolor="#E68A00"><p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p></td>
<td valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">60,941 </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">58,422 </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">71,016 </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">95,000 </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1,24,000 </font></p></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Gross Tax Revenue is all set to cross 10 Lakh Crores next year and the Service Tax will cross One Lakh Crores. </font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tax Foregone: Revenue Forgone on account of Export Promotion Concession </font></strong></p>
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<td valign="top" bgcolor="#CC2109"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sl. No </font></strong></p></td>
<td valign="top"><p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Name of the Scheme </font></strong></p></td>
<td valign="top"><p align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2011-12 (Rs in Crores) </font></strong></p></td>
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<td valign="top" bgcolor="#CC2109"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font size="2">1.</font> </font></strong></p></td>
<td valign="top" bgcolor="#999999"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Advance Licence </font></p></td>
<td valign="top" bgcolor="#999999"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">21035 </font></p></td>
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<td valign="top" bgcolor="#CC2109"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. </font></strong></p></td>
<td valign="top" bgcolor="#FFFFFF"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">EOU/EHT/ST </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4213.57 </font></p></td>
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<td valign="top" bgcolor="#CC2109"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. </font></strong></p></td>
<td valign="top" bgcolor="#999999"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">EPCG </font></p></td>
<td valign="top" bgcolor="#999999"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9580.36 </font></p></td>
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<td valign="top" bgcolor="#CC2109"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.</font></strong></p></td>
<td valign="top" bgcolor="#FFFFFF"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DEPB</font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11103.30 </font></p></td>
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<td valign="top" bgcolor="#CC2109"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.</font></strong></p></td>
<td valign="top" bgcolor="#999999"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SEZ</font></p></td>
<td valign="top" bgcolor="#999999"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5313.60 </font></p></td>
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<td valign="top" bgcolor="#CC2109"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. </font></strong></p></td>
<td valign="top" bgcolor="#FFFFFF"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DFRC </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">29.22 </font></p></td>
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<td valign="top" bgcolor="#CC2109"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7<font size="2">.</font> </font></strong></p></td>
<td valign="top" bgcolor="#999999"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Duty Free Import Authorisation Scheme </font></p></td>
<td valign="top" bgcolor="#999999"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1165.32 </font></p></td>
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<td valign="top" bgcolor="#CC2109"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. </font></strong></p></td>
<td valign="top" bgcolor="#FFFFFF"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Duty Free Entitlement Credit Certificate </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">167.53 </font></p></td>
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<td valign="top" bgcolor="#CC2109"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. </font></strong></p></td>
<td valign="top" bgcolor="#999999"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Target Plus </font></p></td>
<td valign="top" bgcolor="#999999"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1047.20 </font></p></td>
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<td valign="top" bgcolor="#CC2109"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10.</font></strong></p></td>
<td valign="top" bgcolor="#FFFFFF"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Vishesh Krishi and Gram Udyog Yojana </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2021 </font></p></td>
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<td valign="top" bgcolor="#CC2109"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11<font size="2">.</font></font></strong></p></td>
<td valign="top" bgcolor="#999999"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Served from India Scheme </font></p></td>
<td valign="top" bgcolor="#999999"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">322.65 </font></p></td>
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<td valign="top" bgcolor="#CC2109"><p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12.</font></strong></p></td>
<td valign="top" bgcolor="#FFFFFF"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Focus Market/Product Scheme </font></p></td>
<td valign="top" bgcolor="#FFFFFF"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3146.41 </font></p></td>
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<td valign="top" bgcolor="#CC2109"><div align="center"></div></td>
<td valign="top" bgcolor="#999999"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">TOTAL</font></strong></p></td>
<td valign="top" bgcolor="#999999"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">59145.16 </font></p></td>
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<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Excise on Gold – Inspector Raj? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOLD</strong> shutters have been pulled down for the last few days in protest against the excise duty. The so-called high duty is about Rs. 30 on a purchase of Rs. 10,000. Then what is this hungama about? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC has clarified that, <em>“The trade has expressed apprehensions that the levy would result in “inspector raj'. It would be recalled that the Government has already prescribed a simple one-page return for all units manufacturing excisable goods under the 1% scheme. This is a quarterly return which can be filed electronically. Since gold jewellery is leviable to State VAT, these units are already maintaining records/ accounts for that purpose. No separate records have been prescribed under Central Excise law”</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the real fear is “inspector Raj”!. <em>Even friendly</em> visits by Central Excise Officers to gold shops can be a real worry for the glittering business. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see our <font color="#663399"><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=14574" target="_blank">Budget Analysis</a></strong></font> for a detailed analysis of the issue by a Central Excise Officer. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP – Export of Cotton - DGFT notifies procedure </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DIRECTOR</strong> General of Foreign Trade has notified the procedure/guidelines for scrutiny and revalidation of Registration Certificate (RCs) for export of cotton. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i. Applications for scrutiny and revalidation shall be submitted only for the RCs that were valid as on 05.03.2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii. Applications be submitted to concerned RA, where RC was obtained. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii. Separate application shall be made for each valid RC. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iv. Last date for submission of application: Thursday 22 nd March, 2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">v. The applicant would specify in respect of each RC that it seeks revalidation: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a. the quantum that it has already exported against that RC, with details of date of export, invoice amount and details of importer. Copy of shipping bill(s) be provided. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b. the quantum that has been handed over to the Customs against that RC, if any, with date wise details; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c. the quantum yet to be handed over to the Customs. Please enclose copy /copies of the respective contract(s) <u>in respect of this quantity</u>. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">vi. In respect of any previous RC obtained for which 30 day time has been over as on 5 th March, details of exports made be submitted </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">vii. Scrutiny shall be undertaken at the headquarters office of DGFT at New Delhi. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">viii. After scrutiny of documents, respective RAs would revalidate the RCs as per DGFT's instructions. </font></p>
</blockquote>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2010/dgft10pn102.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 102 (RE-2010) /2009-2014; Dated March 16 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Banks to work Late Hours - Annual Closing of Government Accounts </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WITH</strong> a view to facilitating accounting of all Government transactions of the current financial year (2011-12) by March 31, 2012 and meeting the probable rush of tax-payers towards the end of the year, RBI has decided in consultation with the Controller General of Accounts, Government of India that all Regional Offices of Reserve Bank of India (RBI) and branches of Agency banks conducting Government business will suitably extend the banking hours to conduct Government business by keeping their counters open for the purpose on March 30 and 31, 2012 to facilitate receipt of Government revenue from members of public even at late hours. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/rbi_notification.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI/2011-12/457 DGBA.GAD.No.H - 6150/42.01.029/2011-12; Dated March 19 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">India Budget 2012 - Pak Comments </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Pakistani daily Dawn editorially commented, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“<strong>INDIA'S neighbours must be alarmed by yet another, sizeable rise in its defence budget - it has gone up to a whopping USD38.6bn</strong>. Presenting the budget in parliament on Friday, Indian Finance Minister Pranab Mukherjee said the allocation was based “on the present needs” and that the government would meet any “further needs for the security of the nation”. The 17 per cent increase seeks to add to the nuclear and conventional military muscles of a country that already has one of the world's largest armed forces. The budget allocates USD17.5bn for capital expenditure, which is to go towards acquiring the most modern equipment for the three branches of the Indian military. Already having a nuclear triad, India is upgrading 51 Mirage 2000 fighter jets, is negotiating a USD20bn deal with France for the purchase of 126 Rafale multi-role combat aircraft, working on a government-to-government agreement with the US for 145 ultra-light howitzers, and has ordered 49 new warships for the navy. Clearly, this phenomenal rise goes far beyond India's legitimate security needs and adds to the neighbours' concerns about New Delhi's hegemonic ambitions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">India's economic development should not make its policymakers oblivious to the needs of their people. Despite the rapid expansion of its middle class, India suffers from grinding poverty and has the world's largest concentration of illiterate people. Besides, a very large number of its troops are bogged down in Kashmir because of New Delhi's refusal to seek a peaceful solution to the problem. The hike in India's military budget thus gives the wrong message to its neighbours and perpetuates tensions in South Asia. The neighbours' concerns are not baseless, because India is not on the best of terms with them, and it has a history of military conflicts with Pakistan and China”. </font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p>
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