TIOL-DDT 1828 · 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 color="#663399" size="3">TIOL-DDT 1828 </font><br>
02.04.2012 <br>
Monday </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax – Depreciation on Windmills restricted to 15% from 1 April 2012 </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT</strong> has amended the Income Tax Rules to restrict the depreciation allowed on windmills installed after 1 April 2012 to 15%. This was 80% for the windmills installed on or before 31st March 2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This has been done by amending clauses (l) and (m) of sub item No. (xiii) of item No. 8 under Heading "III. Machinery and Plant" in Part-A relating to Tangible Assets in the Table in the New Appendix I in the Income Tax Rules, 1962. Very Simple Law! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you want to find this provision, you have to go to: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. New Appendix in the Income Tax Rules – there are three old appendices. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Part A - Tangible Assets - in this new appendix. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Heading III in the <em>Tangible Assets</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Item 8 under Heading III - <em>Tangible Assets</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Sub item xiii in item 8 above </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Clauses (l) and (m) in sub item xiii above </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2012/it12not015.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Notification No. 15/2012 [F.No.149/21/2010-SO(TPL)] S.O.694(E), Dated: March 30, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax - Rules Amended - New Forms for AY 2012-13 </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT </strong>has amended the Income Tax Rules to prescribe new ITR forms for the returns for the Assessment Year 2012-13.</font></p>
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<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Form No. </font></strong></p></td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Heading </font></strong></p></td>
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<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/forms/itforms/Ay-2012-2013/SAHAJ2012_14.pdf" target="_blank">ITR-1 SAHAJ </a></font></strong></p></td>
<td valign="top" bgcolor="#CAE8AC"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Indian Individual Income tax Return </font></p></td>
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<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/forms/itforms/Ay-2012-2013/FormITR2ENG.pdf">ITR-2 </a></font></strong><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/forms/itforms/Ay-2012-2013/EngInstructionITR-2.pdf" target="_blank">Instruction </a></font></strong></p> </td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For Individuals and HUFs not having Income from Business or Profession </font></p></td>
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<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/forms/itforms/Ay-2012-2013/FormITR3ENG.pdf">ITR-3 </a></font></strong><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/forms/itforms/Ay-2012-2013/EngInstructionITR-3.pdf" target="_blank">Instruction </a></font></strong></p> </td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For Individuals/ HUFs being partners in firms and not carrying out business or profession under any proprietorship </font></p></td>
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<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/forms/itforms/itr_2011-12/ITR-4S-SUGAM.pdf">SUGAM (ITR-4S) </a></font></strong></p></td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sugam - Presumptive Business Income tax Return </font></p></td>
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<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/forms/itforms/Ay-2012-2013/FormITR4ENG.pdf" target="_blank">ITR-4 </a></font></strong><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/forms/itforms/Ay-2012-2013/EngInstructionITR-4.pdf" target="_parent">Instruction </a></font></strong></p> </td>
<td valign="top"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For individuals and HUFs having income from a proprietary business or profession </font></p></td>
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<td valign="top"> </td>
<td valign="top"><p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/forms/itforms/Ay-2012-2013/ITRVACKNOWLEDGEMENT_ENG.pdf" target="_parent">ITR-V Acknowledgment </a></font></strong></p></td>
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<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2012/it12not014.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Notification No. 14/2012 [F.No.142/31/2011-(TPL)] Dated: March 28, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">No More Supply of Printed GR Forms - Download from Internet </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WITH</strong> the advent of technology and penetration of Internet access, the need for printing and supplying of GR forms by Reserve Bank does not exist any more. It has therefore been decided to discontinue supplying/selling printed GR forms across the counter by Regional Offices of Reserve Bank. Therefore, with effect from <strong>July 1, 2012</strong>, GR forms shall be available only online at Reserve Bank's website <a href="http://www.rbi.org.in"><strong>www.rbi.org.in </strong></a>at the following link: <em>"Notification-> FEMA -> Forms -> For Printing of GR Form"</em> [if you don't understand what the RBI is saying, you can go to this link - <a href="http://rbi.org.in/scripts/gr_userdetails.aspx"><strong>http://rbi.org.in/scripts/gr_userdetails.aspx</strong></a>] </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While downloading the GR forms, the exporter may ensure to use ‘Legal' size paper i.e. 8.5 * 14 inches. Further, both the printer (printing preference) and paper size in the page setup option have to be set to legal size before printing. The GR number will be automatically allotted when the document goes to the print queue. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=280&filename=notification/rbi/2011/rbi11cir098.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AP(DIR Series) Circular No. 98/RBI., Dated: March 30, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">All About GR Forms </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i. GR forms should be completed by the exporter in duplicate and both the copies submitted to the Customs at the port of shipment along with the shipping bill. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii. Customs will give their running serial number on both the copies after admitting the corresponding shipping bill. The Customs serial number will have ten numerals denoting the code number of the port of shipment, the calendar year and a six- digit running serial number. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii. Customs will certify the value declared by the exporter on both the copies of the GR form at the space earmarked and will also record the assessed value. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iv. They will then return the duplicate copy of the form to the exporter and retain the original for transmission to the Reserve Bank. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">v. Exporters should submit the duplicate copy of the GR form again to Customs along with the cargo to be shipped. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">vi. After examination of the goods and certifying the quantity passed for shipment on the duplicate copy, Customs will return it to the exporter for submission to the AD Category – I banks for negotiation or collection of export bills. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">vii. Within 21 days from the date of export, exporter should lodge the duplicate copy together with relative shipping documents and an extra copy of the invoice with the AD Category – I banks named in the GR form. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">viii. After the documents have been negotiated / sent for collection, the AD Category – I banks should report the transaction to the Reserve Bank in statement ENC under cover of appropriate R-Supplementary Return. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ix. The duplicate copy of the form together with a copy of invoice etc. shall be retained by the AD Category – I banks and may not be submitted to the Reserve Bank. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">x. In the case of exports made under deferred credit arrangement or to joint ventures abroad against equity participation or under rupee credit agreement, the number and date of the Reserve Bank approval and/or number and date of the relative RBI circular should be recorded at the appropriate place on the GR form. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">xi. Where Duplicate copy of GR form is misplaced or lost, AD Category – I banks may accept another copy of duplicate GR form duly certified by Customs. </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Source: </font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiainternational.com/circularDesc.php?qwer43fcxzt=MTU0OA==" target="_blank">RBI Master Circular No. 10/2011-12 </a></strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">India – Thailand Rules of Origin – Amendments </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended the Notification No. 101/2004-Customs (N.T.), dated the 31st August, 2004 to insert a new product 13A – 841810 - <em>Compression-type combined refrigerator-freezers, fitted with separator external doors, household type. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A new Rule 19 A is inserted to stipulate that: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(a) The customs authority in the importing party shall accept a certificate of origin in cases where the sales invoice is issued by a business entity located in a third country or by an exporter for the account of the said business entity, provided that the product meets the requirements of these rules. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) <em>The exporter of the product shall indicate third country invoicing as well as such information as name, address, and country of the business entity issuing the invoice in box 7 of the certificate of origin. </em></font></p>
</blockquote>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_029.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 29/2012 - Cus.,(N.T.), Dated: March 30, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value - Hike in Brass Scrap and Poppy Seeds; Marginal Change for Gold and Silver </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has increased the tariff values of Brass Scrap (all grades) from USD 4214 to USD 44237 and increased the tariff value of poppy seeds from USD 2439 to 2853. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tariff Value of Gold is increased from 530 to 539 USD per 10 grams and the tariff value of silver is decreased from 1036 to 1032 per kilogram. Tariff value was fixed for gold and silver only recently by Notification No. 2/2012-Cus(NT) dated 13th January 2012.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is no change in the tariff value of other items. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_030.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 30/2012 - Cus.,(N.T.), Dated: March 30, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Supreme Court waives Costs Imposed on IRS Officers by High Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> P&H High Court had in <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=27&filename=legal/hc/2011/2011-TIOL-723-HC-P-H-CUS.htm" target="_blank"><font size="1">2011-TIOL-723-HC-P&H-CUS</font></a></strong> imposed costs of Rs. 50,000 on two IRS (Customs) officers – Ranjit Singh, Commissioner and Lakshya Kumar, Assistant Commissioner for refusing to accept a Bill of Entry filed by an importer because the importer did not have the educational qualification of 10+2! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Aggrieved Revenue took the matter to the Supreme Court and a benevolent Supreme Court, on a concession by the Counsel for the respondent waived the costs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT</strong> had covered this in<strong> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=13680" target="_blank">DDT 1736 - 21.11.2011 </a></strong></font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see </font><font size="1" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=26&filename=legal/sc/2012/2012-TIOL-32-SC-CUS.htm">2012-TIOL-32-SC-CUS</a></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Quashing of Appointment of ITAT VP - Supreme Court Stays </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>Madras High Court had in <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=51&filename=legal/hc/2011/2011-TIOL-792-HC-MAD-SERVICE.htm" target="_blank"><font size="1">2011-TIOL-792-HC-MAD-SERVICE</font></a></strong> quashed the appointment of a vice-President of the ITAT. On an SLP filed by three Members of the ITAT, the Supreme Court on Friday stayed the direction of the High Court. The Supreme Court order dated 30.03.2012 in Petition(s) for Special Leave to Appeal (Civil) No(s).6141/2012, reads as: </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Put up for final disposal on October 03, 2012. During the pendency of the special leave petition, the direction of the High Court in paragraph 24 of the impugned judgment shall remain stayed. </font></em></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please also see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=13786" target="_blank">DDT 1746 - 05.12.2011</a></strong> </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Probable Amendments contemplated in Indian tax Law </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A </strong>tax aficionado sent us this - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Any transaction in West Indies is now taxable in India since the word ‘Indies' substantially involves an Indian nexus. Similarly, if any Indian (Red Indians too) renders any service anywhere in the world, he should pay Service Tax to the Indian Government. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ A retrospective amendment is also proposed to tax the income earned by ‘Indiana Jones' movies. So also, any movie shot in India, partly or wholly, by any foreign producer and released worldwide would also be subject to Indian Tax, either under Service Tax or Income Tax, to the extent of its revenues earned, except that earned in India, which is anyway taxable at the hands of the Indian distributor. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Use of number ‘0' anywhere in the world is subject to royalty taxation as it has been invented by the Indian mathematician and astronomer Aryabhata. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> + Fundamental basis for any decision issued by the Supreme Court in favour of a taxpayer would be deemed to be retrospectively amended without any requirement for a specific law to be passed in this regard. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">+ Any income earned globally from the practice, training or any other manner whatsoever pertaining to yoga will be taxable in India including tantric sex. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We just hope that this mail does not reach the Tax Research Unit! </font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Vacation for GOI </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THERE</strong> are only three working days this week. 5th and 6th April are holidays for Mahavir Jayanti and Good Friday. A Government Servant taking three days leave from 2nd to 4th April would have 9 days holidays from 31st March to 8th April. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That government is the best, which governs the least – we will have a good government for about 10 days. </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"> – Tuesday's cases</font></strong></font></strong></font></p>
<p><strong><font color="#663399" 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">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Stay / Pre-deposit - Stay should have been granted on strong <em>prima facie</em> case, even if 'financial hardship' not proved: HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHEN</strong> a strong prima facie case has been made out by the petitioner, the first respondent Tribunal ought to have granted an order of stay, as prayed for by the petitioner, without the condition of pre-deposit, even if 'financial hardship' had not been shown to exist or proved by acceptable evidence, as held by the supreme court, in Ravi Gupta Vs. Commissioner of Sales Tax, Delhi <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=50&filename=legal/sc/2009/2009-TIOL-47-SC-CT.htm" target="_blank"><font size="1">(2009-TIOL-47-SC-CT)</font></a></strong>. However, in view of the fact that the interests of the revenue should also be safeguarded, the petitioner is directed to furnish a bank guarantee for a sum of Rs.4.5 Crores, to the satisfaction of the second respondent, within a period of fifteen days. </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">Whether engagement of programmer and imparting training to them in process of development and customisation of software programme is also eligible for Sec 10B benefits - YES, rules ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> is a company and registered with the Ministry of Industry as 100% Export Oriented Unit. The several activities of the assessee were approved and sanctioned by the Secretariat for industrial approvals and the aforesaid activities were recognised as an integrant part of the EoU. The assessee filed its return of income declaring the total income at nil by claiming the exemption u/s 10B of the Act. The Assessing Officer denied the exemption u/s 10B. On appeal, the CIT(A) set aside the assessment order with a direction to examine the assessee's claim u/s 80HHE and 80-O besides section 10B after allowing opportunity of being heard. Consequently, the Assessing Officer after examining the various agreements entered into by the assessee with Cybertech International Corporation (CIC) and Unisys Corporation (Unisys) held that the assessee had not engaged in the activities relating to manufacture and exports of computer software and programmes. </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">Payment made by Union Bank of India to Society for Worldwide Inter-bank Financial Telecommunication (SWIFT) for transfer of funds to member Banks is liable to Service tax under ‘Banking and other Financial Services' on reverse charge basis - no prima facie case in favour - Pre-deposit ordered: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> definition of ‘banking and other financial services' provides the following services provided by a banking company or a financial institution including a non-banking financial company or any other body corporate or commercial concern, namely provision and transfer of information and data processing. By going through the above provisions of Section 65(12) of the Finance Act, 1994, prima facie the activity undertaken by the applicant is covered under the ‘banking and other financial services'. Therefore, the applicant has failed to make out a case for waiver of pre-deposit of the service tax. Accordingly, the applicant is directed to make a pre-deposit of the amount of service tax confirmed against them within eight weeks. </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>
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