TIOL-DDT 1869 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <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><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 1869 </font><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> 31.05.2012 <br> Thursday </font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax - Retrospective Amendment - No Reopening of cases </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON</strong> the issue of retrospective amendment, Union Finance Minister, Pranab Mukherjee has said that he had given a commitment in the Parliament with regard to retrospective amendments that CBDT will issue a policy circular to clarify that in cases where assessment proceedings have become final before first day of April, 2012; such cases shall not be reopened. Now CBDT has issued a circular in this regard, the Finance Minister has stated.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Regarding the issue of Advisory Group relating to transfer pricing and International taxation, the Finance Minister has said that he has constituted an advisory group to resolve various issues in the area of transfer pricing and International taxation. The group has held its first meeting on 25th May 2012 and on advice of group and NASSCOM, the Finance Minister has approved issue of a circular to avoid multilevel TDS on software u/s 194J. This will remove hardship in case of software distributors. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Ombudsman Determined to Deliver </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>OMBUDSMAN</strong> is a globally respected institution. It started its journey from Sweden, first, in 1697. It has now become a proven administrative instrument to redress consumers' / users' grievances. We are aware of Ombudsmen in the banking and insurance sectors. Having found them useful, the Union Finance Minister, Pranab Mukherjee, gave his nod to a proposal to have ombudsmen in both the Departments of Income Tax and Customs & Excise. Though in-principle nod was given together, the CBDT made a quick beginning in 2006. It has now as many as 12 Ombudsmen stationed across the country. For the CBEC, it has got only recently three Ombudsmen in Delhi, Bangalore and Lucknow. It is expected that there would be many more in other cities very soon. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What can an Ombudsman do for the trade and industry? Is he going to be effective in earning some relief to an assessee who feels harassed and troubled? Can he punish an errant officer? To know the answers to all these questions and more, DDT spoke to the First Ombudsman in Delhi, S Dutt Majmuder, who retired as CBEC Chairman last October. When requested to define his role as an Ombudsman, he said, ''An Ombudsman is an enabler and a facilitator.'' He further explained that his job is to enable assessees to get quick relief from the department if the Revenue has been denying the benefits or relief to be granted as per the existing rules or laws. An ombudsman facilitates the assessees to get response from the Department if he has not been getting proper communication. The Ombudsman would act only if an assessee approaches him with complaints like not getting response from the Department within one month of his communication; his application rejected but he is not satisfied; <strong>delay in refund or rebate beyond time limit</strong>; delay in granting registration; delay in giving effect to appellate or Tribunal orders; delay in adjudication and release of seized books or accounts. He further added that an assessee can also complain about non-adherence to prescribed working hours; any matter relating to violation of administrative circulars or instructions and rude behaviour by officers. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What is the procedure for filing a complaint? The Ombudsman said it was very simple - one just needs to file a written complaint or email the same but later provide a signed copy. After receiving a complaint, the Ombudsman is required to forward the same to the reporting officer of the officer complained against and wait for a reply / action to be taken within 30 days. What if an officer does not respond to the Ombudsman's letter? The Ombudsman can pass an 'Award' whereby an apology can be extended to the complainants for avoidable delays and a token compensation of Rs 5000 can be paid. An Award would be binding on the officer provided the complainant sends his acceptance within 15 days or it lapses. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He also said that as Ombudsman he has a duty to send a monthly report to the Revenue Secretary and Chairman of the Board about the erring officials with the preliminary evidences. An annual report is also to be submitted to the Government wherein the Ombudsman can review the quality of the tax administration and the steps required for its further improvement. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the DDT pointed out that since the Ombudsman's office is still being set up, where can an assessee reach him, he said that the Ombudsman has been working from his residence, and any assessee can write to him at his address: CII/101A, Satya Marg, Chanakyapuri, New Delhi - 21 or may send email - <a href="mailto:esdiem299@rediffmail.com"><strong>esdiem299@rediffmail.com</strong></a>. He further said, "I hope to get my office in a centrally-located area where the industry and trade could easily access me.'' </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He finally concluded by making an appeal to the trade and industry through DDT that by coming forward with their grievances, the industry would help the Ombudsman to help them; and the Ombudsman Institution would be successful only when it delivers. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We wish the Ombudsman all success and hope the institution will get strong a foundation during his tenure. An Ombudsman, especially a strong ombudsman, will not be liked by the department and so may not get much support from the Department. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Protectionism is like cholesterol: WTO Chief Pascal Lamy </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ADDRESSING </strong>the Thai Chamber of Commerce in Bangkok yesterday, Director General of WTO Pascal Lamy said, </font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Protectionism is like cholesterol: the slow accumulation of trade restrictive measures since 2008 - now covering almost 3 per cent of world merchandise trade, and almost 4 per cent of G20 trade - can lead to the clogging of trade flows. </font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The global trade landscape is also changing and it now looks very different from only 15 years ago. New players have emerged on the world scene such as China, India, Brazil, Indonesia and many others. </em></font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By overseeing the rules that govern international trade, the WTO guarantees the openness, transparency and predictability you need to conduct business across borders. In an increasingly globalized and inter-related world economy, a rules-based global trading system ensures a stable environment to conduct your business. The WTO is, to a large extent, a guarantee against bad surprises. </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Most Asian economies have been able to adapt quickly to a changing demand structure that requires firms to locate various stages of their production process in the most cost-efficient markets. The high degree of complementarity between the economies in this region has provided an ideal basis for the rise of what has come to be known as “Factory Asia”, where parts and components move through cross-border production networks before being assembled and exported for final consumption. This has opened market opportunities for countries with a narrow export base. Products are no longer “Made in China” or “Made in Japan”; more and more products are now “Made in the World”. </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A company's competitiveness depends today not only on its own productivity, but also on the competitiveness of its suppliers, access to services and efficient infrastructures. This implies that competitiveness in goods is more closely linked to competitiveness in the services sector. It also means that imports matter as much as exports, contrary to good old mercantilism according to which “exports are good and imports are bad”. Under this scenario, it is clear that protectionist measures — in whatever disguise they may appear — have the potential to do even more serious harm than in the past. </font></em></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Swanky ITO inaugurated in New Delhi </font></strong></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_1869_1.jpg" alt="Legal Corner Icon" width="195" height="295" hspace="5" border="0" align="center"></font></strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_1869_2.jpg" alt="Legal Corner Icon" width="305" height="206" hspace="5" border="0" align="center"></font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Finance Minister Pranab Mukherji yesterday inaugurated the swanky new office building of the Income Tax Department known as “Pratyaksh Kar Bhawan”. This building will house the offices of Salary charges, non-corporate charges, International Taxation, Exemption and other allied charges. It will accommodate approximately 800 Officers and 1500 staff. </font></p> <p align="center"><strong><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></strong></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">Service Tax </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">If assessee is providing taxable service, although they are exempt by way of notification, but have been exported, then assessee is entitled to take input service credit - demand of more than One Crore set aside: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Rule 5 of the CENVAT Credit Rules, 2004, if the assessee is providing taxable service although they are exempt by way of notification, but have been exported, then the assessee is entitled to take input service credit. Same view was taken by this Tribunal in the case of <em>Dell International Services India Pvt. Ltd. vs. Commissioner of Central Excise, Bangalore </em>-<strong> <font size="1"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=44&filename=legal/cestat/2009/2009-TIOL-1957-CESTAT-BANG.htm" target="_blank">(2009-TIOL-1957-CESTAT-BANG)</a></font> </strong></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 assessee who acquires franchise rights for enhancing its business income is entitled to claim depreciation on such rights - YES: ITAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> Company is engaged in the business of dealing in foreign exchange, money transfer and wind power generation. During the year under consideration, the assessee company had acquired franchise from AFL Pvt Ltd (ALF) - filed its ROI claiming depreciation on franchise rights - During the course of assessment proceedings the AO took a view that depreciation was not available on such things - Aggrieved with the order of the AO assessee contended the issue before the CIT(A) who after analyzing the agreement of franchise allowed the appeal of the assessee. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Department files Early Hearing Petition six years after appeal was disposed of - Petition Dismissed: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON </strong>perusal of the records, the Tribunal found that the appeal had been disposed of in 2004, which shows that the departmental officers are not doing their duty properly before filing this type of application. In view of this, they are advised to check the records before filing any application. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Day </font></p> <div 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> </div> </body> </html>