TIOL-DDT 1885 · the untouched capture
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<!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><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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">TIOL-DDT 1885 </font><br> 22.06.2012 <br> Friday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Exchange Rates Effective Today</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>CBEC has announced the new exchange rates for imported and export goods. The new rates are effective from today - repeat - TODAY and not from the first of the next month, as was the practice earlier. The Dollar rate for imports is Rs. 56.35 per Dollar. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2012/cnt12_052.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 52/2012 - Cus., (N.T.), Dated: June 21, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Anti Dumping Duty on Import of Pentaerythritol</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has imposed anti dumping duty on the import of Pentaerythritol originating in, or exported from European Union (excluding Sweden). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The anti dumping duty is to be effective for a period of five years</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=337&filename=notification/custom/2012/ctariffadd12_033.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 33 /2012-Customs (ADD) ; Dated June 20, 2012</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax - Extending due date for filing Form 49C for 2011-12 </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SECTION </strong>285 of Income Tax Act and Rule 114DA of Income Tax Rules read with Circular No. 5 of 2012 dated 06.02.2012, prescribes that specified categories of assessees having a Liaison Office in India shall electronically file Form 49C, within 60 days from the end of the financial year. The due date for filing Form 49C for the financial year 2011-12 was prescribed as 30th May 2012. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has been brought to the notice of the Board that the appropriate facility for allowing the electronic filing of this form has not yet been operationalised due to technical difficulties and therefore the concerned assessees have not been able to make compliance within the prescribed date. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT has decided to extend the due date of filing form 49C for the financial year 2011-12, up to 30th September 2012.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has also decided that for the financial year 2011-12, Form 49C can be filed in 'Paper mode' instead of filing it electronically with digital signatures. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://taxindiainternational.com/circularDesc.php?qwer43fcxzt=MTczMg==" target="_blank">CBDT F. No. 225/124/2012/ITA.II ; Dated June 20 2012</a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax - Rectification/Reconciliation of arrear demand disputed by Assessee</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>certain cases, the assessees have disputed the figures of arrear demands shown as outstanding against them in the records of the Assessing Officer. The Assessing Officers have expressed their inability to correct/ reconcile such disputed arrear demand on the ground that the period of limitation of four years as provided under sub section (7) of section 154 of the Act has expired.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT has now decided that:</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) In the category of cases where based on the figure of arrear demand uploaded by the Assessing Officer but disputed by the assessee, the Centralized Processing Center (CPC), Bengaluru has already adjusted any refund arising out of processing of return, the jurisdictional assessing officer shall verify the claim of the assessee on merits. After due verification of any such claim on merits, the Assessing Officer shall issue refund of the excess amount, if any, so adjusted by CPC due to inaccurate figures of arrear demand uploaded by the Assessing Officer. The Assessing Officer, in appropriate cases, will also upload amended figure of arrear demand on the Financial Accounting System (FAS) portal of Centralized Processing Center (CPC), Bengaluru wherever there is balance outstanding arrear demand still remaining after aforesaid correction/ reconciliation. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) In other cases, where the assessee disputes and requests for correction of the figures of arrear demand, whether uploaded on CPC or not uploaded and still lying in the records of the Assessing Officer, the jurisdictional assessing officer shall verify the claim of the assessee on merits and after due verification of such claim, will make suitable correction in the figure of arrear demand in his records and upload the correct figure of arrear demand on CPC portal.</font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=36&filename=notification/cbdt/2012/it12cir04.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Circular No. 4/2012/ITA.II ; Dated June 20, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FM Releases Guidance Paper on Service Tax </font></strong></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt22june.jpg" alt="Legal Corner Icon" width="478" height="311" hspace="5" border="0" align="center"></font></p> <p align="center"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Finance Minister Pranab Mukherjee releasing the Guidance Paper on Service Tax. Also seen are Finance Secretary Gujral and CBEC Chief Goel. </font></em></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WHAT is the broad scheme of new taxation? </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The key features of the new system of taxation are as follows: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. 'service' has been defined in clause (44) of section 65B of the Act. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Section 66B specifies the charge of service tax which is essentially that service tax shall be levied on all services provided or agreed to be provided in a taxable territory, other than services specified in the negative list. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. The negative list of services is contained in section 66D of the Act. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Since provision of service in the taxable territory is an important ingredient of taxability, section 66C empowers the Central Government to make rules for determination of place of provision of service. Under these provisions the Place of Provision of Services Rules, 2012 have been made. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. To remove some ambiguities certain activities have been specifically defined by description as services and are referred as Declared Services (listed in section 66E). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. In addition to the services specified in the negative list, certain exemptions have been given. Most of the exemptions have been consolidated in a single mega exemption for ease of reference. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Principles have been laid down in section 66F of the Act for interpretation wherever services have to be treated differentially for any reason and also for determining the taxability of bundled services. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. The system of valuation of services for levy of service tax and of availment and utilization of CENVAT credits essentially remains the same with only incidental changes required for the new system of taxation. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(<em>from the guidance paper</em>)</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><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 color="#663399"><strong>Service Tax </strong></font></font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Applicant supplying labourers to company and getting commission on which they pay Service Tax - Department seeking ST on gross salary paid to said employees - Pre-deposit ordered: CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> applicant is a service provider and is registered under the category of “Manpower Recruitment and Supply Agency Services”. They supply labourers to M/s Paranjape Auto Cast Pvt. Ltd. and they get commission. On this commission, they paid the service tax regularly. The department was of the view that the gross salary paid to the employees has to be taken into account for paying the service tax. Accordingly, a Service Tax demand of Rs.3,43,795/- was issued and the same was confirmed against the applicant. </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 when assessee remits commission fees to foreign agents for procuring export orders under UN-sanctioned 'Oil for Food Program', any disallowance of such expenditure can be made on alleged ground that such payments were illegal kickbacks - NO: ITAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</strong> exported tea to Iraq under the ‘Oil for Food Program', as sanctioned by the United Nations. Iraq was allowed to sell a limited specified quantity of oil, and sale proceeds of the oil were to be deposited in an escrow account, out of which a major portion of the sale proceeds could be used by Iraq for meeting its purchases of goods on humanitarian grounds. Assessment was reopened on the ground that the commission to agent ‘A' and ‘G' were illegal payments in the nature of kick backs, which were ultimately received by the Iraqi Authorities as per a Committee report and as the amounts paid by the assessee were illegal and prohibited by the law of the land, the same could not be allowed as expenses under the Act. </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">Cenvatted capital goods can be removed for export under bond - no cause for recovery of CENVAT credit under rule 3(5) of the CCR, 2004 - <em>prima facie</em> strong case in favour - pre-deposit waived and Stay petition allowed: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> the present case the appellant had availed CENVAT credit on capital goods and also put them to use. Later, they had cleared these capital goods for export under bond. The case of the Revenue is that the applicants are liable to pay duty while removing these capital goods as per the provisions of Rules 3(5) of CENVAT Credit Rules 2004. </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><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> </body> </html>