TIOL-DDT 1910 · 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 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><font color="#663399" size="3">TIOL-DDT 1910</font><br> 27.07.2012<br> Friday</strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Amendments in Foreign Trade Policy </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended para 5.2A, 9.12, 5.3 and 5.11 of Foreign Trade Policy, 2009-2014 (RE 2012).</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Para 5.2A: Concessional 3% Duty EPCG Scheme: Import of spares</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Para 9.12: Definition of Capital Goods</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Para 5.3: EPCG Scheme: Bank Guarantee.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Para 5.11: Post Export EPCG Duty Credit Scrip (s)</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The first para of the Notification states that the amendments are with immediate effect, while the last para states that the amendments will take effect from 5.6.2012. Shouldn't the Government be sure as to when their laws come into force?</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2012/dgft12not008.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 08/(RE-2012)/2009-2014, Dated: July 26, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Amendments in HOP</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SIMILARLY</strong> Government has amended para 2.13.2.A, 3.6.1, 3.10.3, 3.11.7, 3.11.8, 4.19, 5.10 and 5.23 of the Handbook of Procedures Vol I (RE 2012)/ 2009-14.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This Public Notice makes it clear that the amendments will be deemed to have come into effect on 5.6.2012.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2012/dgft12pn012.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 12/(RE-2012)/2009-14., Dated: July 26, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Filing of Cost Audit Report and Compliance Report in eXtensible Business Reporting Language (XBRL) mode</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Ministry has mandated that all cost auditors and the <strong>concerned </strong>companies are required to file their Cost Audit Reports and Compliance Reports for the year 2011-12 onwards [including the overdue reports relating to any previous year(s)] only in the XBRL mode. For this purpose, the applicable taxonomy, business rules, validation tools, etc. and also the "Product Group" classification required for preparing the cost audit reports and compliance reports as per the notified Cost Accounting Records Rules, 2011 and Cost Audit Report Rules, 2011 are under preparation and would soon be made available by the Ministry. The actual date for enabling XBRL filing will be intimated separately. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has now been decided by the Ministry that all cost auditors and the <strong>concerned</strong> companies will be allowed to file their Cost Audit Reports and Compliance Reports for the year 2011-12 [including the overdue reports relating to any previous year(s)] with the Central Government in the XBRL mode, without any penalty, upto 31st December, 2012. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The MoCA has informed this to the Institute of Cost Accountants of India. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/mca_circular_18_2012.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MCA General Circular No. 18/2012: Dated: July 26, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs Stamp Released - But does anyone remember Customs Olympian? </font></strong></p> <p align="center"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_1910_27_012.jpg" alt="" width="400" height="435" hspace="5" border="0" align="center"></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>YESTERDAY</strong>, the Minister of Communication and Information Technology, Kapil Sibal released a postage stamp to commemorate 50 years of Indian Customs in the presence of Revenue MoS Palanimanickam, CBEC Chairman Goel and all Members of the CBEC. The MoS released a Coffee Table book on Indian Customs titled <strong>"Anything to Declare"</strong> </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In 1882, Oscar Wilde arrived at New York Harbour. Asked by a U. S. Customs official if he had anything to declare, he famously replied,"I have nothing to declare but my genius." </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While these fashionable celebrations are going on, we are reminded of a sad story of a great Customs Officer languishing in an obscure corner of a Kolkata colony. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Steven L D'Souza, a former Additional Commissioner in Customs Department reminds us that Leslie Claudius, the legendary hockey player was a gold medallist in 1948 London Olympics. He went on to win Gold in Helsinki in 1952 and in Melbourne in 1956 and a silver in Rome in 1960. There are only two Indians who have three Olympic Gold medals. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Claudius joined the Indian Customs in 1949 and retired as Assistant Collector in 1984. He was meant to bring glory to the nation, but faced several personal problems - his Olympic medals were stolen; his son, also a Hockey player died in an accident - he lives in a rented house with bad health as his companion. </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/LESLIE_CLAUDIUS.jpg" alt="LESLIE_CLAUDIUS" width="247" height="346" hspace="5" border="0" align="center"></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In London, they have named a Metro Station after Leslie Claudius, but here in India, nobody remembers him and what better picture the Customs could have got for their stamp than that of Leslie?. Leslie Claudius, a Padmasri awardee is not remembered by Customs, while they celebrate fifty years of the Customs Act, especially when the Olympic games are under way. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Leslie is 85 years old - he brought laurels to the Country and Customs - He may live for another few years. Shouldn't the Customs Department take care of him and honour him in the December of his life. There is lot of money in the Welfare Fund; can't they buy a house for him from the fund?; can't they give him a good allowance for the rest of his life? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any celebration is shameful when we have a legendary hero of our family in penury. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Samosa Justice</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PAKISTAN'S</strong> Dawn.com commented editorially yesterday, </font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"THE days of the cheap samosa are over. While the savoury little delight is consumed with great relish by Pakistanis around the year, sales of the samosa skyrocket during Ramazan as it is a staple of the iftar spread. However, the Supreme Court has set aside a notification of the Punjab government regulating the price of samosas. As reported in the media, in 2009 the La hore local government had fixed the price of the crispy delight at Rs6 a samosa. The local government's machinery took action against some shopkeepers found to be selling more expensive samosas. However, not satisfied with the price set for their product, the bakers and sweet-makers of the Punjab went to court. When the Lahore High Court turned down their petition, the bakers appealed to the Supreme Court. They felt the samosa did not fall within the purview of the Punjab Foodstuffs (Control) Act, 1958, hence the government could not fix its prices, a notion the apex court seemed to agree with. </font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While the commercial bakers will rejoice at the verdict, others waiting for justice in Pakistan's ever-clogged judicial system may be wondering when their turn will come. With a question of interpretation of a law at stake, the Supreme Court was the ultimate forum for resolving the matter, however trifling it may appear to the average citizen. The question, then, is whether the superior judiciary should devise some rules and a system to fast-track more urgent and serious matters for justice rather than spend valuable time on a regulation that is virtually unenforceable in any case - the proof of that being a visit to any market in Lahore where samosas are openly being sold for much higher than Rs6. Samosa-makers may be happy and another case struck from the superior judiciary's docket, but was it the court's best use of time at this stage?" </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 align="justify"><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"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Manufacture of dutiable and exempted goods - Amendment of Section 2(d) of Central Excise Act, 1944 makes no difference - CESTAT sets aside demand of 10%-5% under Rule 6 of the CENVAT Credit Rules, 2004 on Press Mud and Sludge</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> dispute is on the sustainability of demand of 10% - 5% on Press Mud and Sludge arsing during the course of manufacture of Sugar, Molasses etc in view of using common inputs and not maintaining separate accounts for inputs. The dispute attains importance as the department pressed into service the provisions of the amended Section 2(d) of the Central Excise Act, 1944 wherein an Explanation has been inserted with effect from 10.5.2008 as under: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">Income Tax</font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6633">Income tax - Whether when assessee claims expenses with respect to software development outsourced to another company and then exports the same, such expenses are eligible for deduction u/s 10B - YES: ITAT </font></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the Bench is - Whether when the assessee claims expenses on account of development of software outsourced to another company and then exports the same, such expenses are eligible for deduction u/s 10B. And the verdict goes in favour of the assessee. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">FEMA</font></strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FERA - Foreign Remittance received in savings bank account during period of Remittances in Foreign (Immunities) Scheme, 1991 - Penalty for alleged contravention of Section 9(1)(f)(i) of FERA 1973 is not sustainable - High Court of Bombay</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>question before the High Court was: Whether the Tribunal was justified in affirming the imposition of penalty for the alleged contravention of Section 9(1)(f)(i) of FERA 1973 on the ground that the appellants had paid equivalent Indian currency through Mr. Niranjan Shah to a person outside India without any general or special exemption granted by the RBI as a consideration for acquisition of USD 1,00,000/-? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">See our columns Mondayfor the judgements </font></strong></font></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 align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice weekend </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"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p> </body> </html>