TIOL-DDT 2166 · the untouched capture
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<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 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 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=17063"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2013.jpg" alt="DDT in Limca Book of Records" width="175" height="120" hspace="5" border="0" align="right"></a></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font><font color="#663399" size="3">TIOL-DDT 2166 </font><br>
08.08.2013 <br>
Thursday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">GST
- Parliamentary Committee's Report on Constitution Amendment - A step forward</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Constitution (One Hundred Fifteenth Amendment) Bill, 2011 introduced in Lok Sabha on 22 March, 2011, was referred to the Parliamentary Committee on Finance on 29 March, 2011 for examination and report. The Committee headed by Mr.Yashwant Sinha has submitted its report to Parliament.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Highlights of the recommendations</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Compensation Mechanism:</strong> a well-defined automatic compensation mechanism may be built in, which would ensure that trajectories of revenues being contemplated are maintained at least in the short turn. Suitable amendments may accordingly be made in the Bill providing for a built-in permanent compensation mechanism with a view to addressing the legitimate revenue concerns of States. For this purpose, a GST Compensation Fund may be created under the administrative control of the GST Council. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Administration and Information Technology (IT) Mechanism</strong>: Without well-designed IT infrastructure across the country, the benefits of GST may remain elusive. It is also imperative that although a dual GST regime has been proposed, a situation of trade / business dealing with a dual administration and multiplicity of authorities should be avoided, as it may create more hassles rather than ease them. Though not part of the Constitutional Amendment Bill, this issue needs clarity, so that dual GST regime becomes acceptable to trade and commerce at large and fosters tax compliance. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Integrated Goods and Services Tax (IGST):</strong> The alternate model, suggested by the Task Force on GST constituted by the 13th Finance Commission could be considered with a view to simplifying and easing compliance and administrative burden and ensuring a smooth clearing house mechanism between States for facilitating the process of IGST after consideration by the GST Council. Further, as the destination-based IGST model favours predominantly consumer States more than producer States, the revenue concerns of these States also needs to be factored in and duly addressed. The proposed model should not thus act as a dampener or dis-incentive for States with a strong manufacturing base. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GST Dispute Settlement Authority</strong>: The proposed Article 279B providing for GST Dispute Settlement Authority should be omitted, as this body would have the effect of overriding the supremacy of Parliament and the State Legislatures. However, since any dispensation involving several entities / interests requires a mechanism to resolve disputes / differences, it may be expedient to make a provision in Article 279A itself empowering the GST Council to decide about the modalities to resolve disputes arising out of its recommendations. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Harmonized Tax Structure</strong>: Clause 5 of the proposed Article 279A requires the GST Council to be guided by the need for a harmonized structure of goods and service tax and for the development of a harmonized market for goods and services. However, since the words have not been defined in the proposed Bill, such ambiguity should not remain in the Bill. The word "harmonized structure" may be clearly amplified or defined. It should also be clarified that the provisions contained in Clause 5 are in the nature of guiding principles for the Council and not mandatory or obligatory in nature. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Consensus</strong>: in tune with the spirit of cooperative federalism, it would be in order if the proposed GST Council functions like the present Empowered Committee, which has had a good track record of not only reforming the tax system but also resolving differences amicably in an institutional mode. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Declared Goods</strong>: In order to ensure that there is no unilateral decision by the Centre regarding taxation of "declared goods" kept outside the purview of GST (clauses 3 and 4 of amendment proposed in Article 286) and also to uphold the spirit of cooperative federalism, which is crucial for the structure of dual GST, Clause 3 may be amended so that in place of "subject to such restrictions and conditions in regard to the system of levy, rates and other incidents of tax as Parliament may by law specify", the phrase "subject to such restrictions and conditions of tax as Parliament may by law specify on the recommendations of the GST Council constituted under 279A" may be substituted. This change is expected to allay the fears of States to some extent on loss of fiscal autonomy. In this context, it would also be expedient to insert a new sub-clause in Clause (4) of Article 279A to provide both States and Centre the requisite flexibility to raise additional resources during period of natural calamities and disasters. The proposed Clause 4 of Article 279A may also be suitably amended to provide for special schemes for North-Eastern States, the State of J & K and other special category States. Similarly, the Central Government should also have the flexibility to levy surcharge or cess whenever required or during extra-ordinary circumstances. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Entry Tax</strong>: Entry 52 of Seventh Schedule is worded in the Bill as "taxes on the entry of goods into a local area for consumption, use or sale therein to the extent levied and collected by a Panchayat or Municipality". It will not be desirable to go back to the earlier system of levy and collection of octroi by local bodies and this will be a retrograde step, which would hinder free flow of trade and increase compliance burden. The Committee therefore desire that entry tax in general should be subsumed in GST. The relevant Clause / sub-clause in the Bill may be modified accordingly so as to empower the States to collect entry tax for distribution to local bodies instead of leaving it to be collected by different local bodies. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Floor Rate:</strong> Threshold of limits of turnover etc. for exempting certain class of taxpayers like small traders / manufacturers / service-providers may also be left to the wisdom of the GST Council. Although it is ideally desirable that the GST regime is made comprehensive and all encompassing for the present, the existing exemption for small business may continue in line with the Government policy to encourage and promote small enterprises including self-employed sector. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Exclusions</strong>: Article 366 of the Constitution is proposed to be amended vide Clause 14 in the Bill, wherein taxes on the supply of specified goods is proposed to be excluded from the purview of GST. Such specific exclusions need not be provided in a Constitution (Amendment) Bill, as this will needlessly make the GST regime very rigid. Since the ultimate goal is to have an integrated, comprehensive and seamless GST regime subsuming various Central and State indirect taxes and levies, the Committee recommend that the above-mentioned exclusion provision may be omitted from the Constitution (Amendment) Bill. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GST Monitoring</strong>: Considering the fluidity and uncertainties involved in ushering in radical changes in the tax system, there is a need to set up a GST Monitoring / Evaluation Cell, which should closely follow on a continuous basis the immediate impact of GST on key aspects such as growth in GDP, inflation, hoarding, compliance costs for taxpayers, administrative bottlenecks and, last but not the least, the retail prices paid by the ultimate consumer. The GST Monitoring / Evaluation Cell may function under the aegis of the proposed GST Council. This may be incorporated as a clause / sub-clause in the proposed Article 279A of the Bill so as to put monitoring of GST on a firmer footing. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Conclusion</strong>: In conclusion, the fears expressed in some quarters about the proposed GST Council being made a constitutional body and infringing upon or even overriding the supremacy of Parliament or State Legislature is not correct as it is envisaged as a recommendatory body. The fruitful experience with the Empowered Committee of State Finance Ministers so far does not seem to give any credence to such apprehensions. This body has provided a useful platform for consensus-building between Centre and States and has evolved democratic practices over time to discuss and resolve issues. As this will be a political and a recommendatory body, it would be in a position to play a constructive and enabling role<em> vis-à-vis</em> the Legislature, which needless to emphasise, would remain supreme in matters of legislation including taxation. The mandate entrusted to the GST Council under the proposed Article 279A of the Constitution (Amendment) Bill does not in any way alter the existing constitutional scheme in so far as the Legislature, both Union and State, is concerned. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On the whole, the Committee is of the view that the Constitutional (Amendment) Bill should not ideally include specific aspects relating to rates, exemptions, exclusions, thresholds, administrative arrangements etc. What should be included in the laws and rules should not form part of the Constitution of India. The present Bill relating to GST, in the Committee's view, has not been well drafted from this perspective and, therefore, requires amendments as suggested above. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/15_Finance_73.pdf"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Committee Report</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">VCES, 2013 and a frozen bank account </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WE</strong> received this mail - </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"I am in the construction business and am a registered service tax provider. Already our business is dull due to a host of factors. You may also be aware of the turbulent times we had to go through while challenging the imposition of service tax and the failure that finally landed at our doorstep. Apart from increase in the cost of construction of the residential flats, imposition of VAT by the State government and that too with a retrospective effect reduced our margins further. Yet, we manage to survive. In this scenario, in respect of some of the housing projects, I had neither collected nor paid Service Tax which was payable by me under the head ‘Construction of Complex Service'. The VCES, 2013 announced in the Budget 2013 came as godsend to me. I was in the process of preparing and submission of my VCES application but to my bad luck the Anti-evasion authorities swooped on my office and have booked a case. My statements were recorded and I admitted that I had not paid Service Tax but informed the officers that I would be paying the Service Tax and also showed them the VCES forms that I had intended to submit. They threatened me with arrest and said that these were not hollow warnings but they could carry it out as the Finance Act, 2013 had empowered them. The next day they informed my bankers and my accounts have been frozen. Now, I do not know what is to be done. I also do not know whether the officers are empowered to freeze the accounts without first determining the tax liability due. </em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">My only submission is that since the VCES, 2013 scheme allows ‘evaders' like me to settle my Service tax liabilities for the period ending 31 st December, 2012 the authorities should permit me to turn over a new leaf and make the payments but then this money is lying in the frozen bank accounts. After all, if the schemes like VCES have to have any use, the service tax authorities should give us an opportunity to settle our dues for the past period at least. One more thing Sir, there is nothing in the VCES scheme which prohibits us from opting for the scheme even if a case has been booked against us now. The scheme allows us to pay our dues by 31 st December 2013 or June 2014 and without any interest. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, the officers should in true spirit and without playing spoilsport at least permit me to make use of my bank account balance for paying the Service Tax under the VCES scheme. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For the service tax dues arising from January 2013, they can certainly proceed to invoke all the sections in the Service Tax Act but not for the prior period.</font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I feel that you may be hesitant in carrying my email letter in your column probably because I am a <strong>tax evader</strong> but Sir the VCES scheme is for tax evaders only." </font></em></p>
</blockquote>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT only hopes that the <em><strong>concerned</strong></em> do respond. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Meanwhile an informer asked us whether he would be denied reward if the evader chooses to opt for the VCES. He was of the strong view that evaders booked by the Department should not be allowed the benefit of VCES. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Durga Shakti Nagpal in IRS? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DURGA</strong> Shakti Nagpal, the suspended IAS officer has attracted nation wide attention. The Nation is aghast at the atrocious attitude of the UP State Government towards an honest bureaucrat. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But similar actions are being taken in the Central Revenue Department - unheard, unprotested. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With the rupee falling like BRIC and gold smuggling reaching dizzy heights, customs officers, especially those at entry ports have a huge responsibility. Recently the Customs Department transferred two young IRS officers from strategic points - their crime being tough action against gold smugglers and duty evaders. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is heartening to see some very honest, dedicated daredevil, patriotic young men among the recently recruited IRS officers. They are all highly qualified and are capable of getting better lucrative jobs, but have joined the service with a sparkle in their eyes and a determination to serve the nation. Of course it must be stated that there are some young men and a few women who have joined with clear priorities of making money and they are not wasting time from day one. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A couple of young officers recently took the Gold cartel bull by its horn and earned good revenue for the nation. But bulls will not simply keep quiet and these two officers were promptly transferred out. The message is loud and clear - such unwelcome characteristics like honesty, hard work, devotion to duty, commitment to the job and patriotism will not be tolerated and should be nipped in the bud. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Durga Nagpal was facing only sand mafia - imagine the plight of Revenue officers facing the wrath of gold smugglers - there is an ocean of difference. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A young IRS officer detected a major fraud in the import of gold and recovered more than Rs. 5 Crores and would have recovered a hundred crores, but alas, he was transferred! That 5 crores will take care of his salary for his entire career and more. They will ensure that he is soon disciplined. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us hope and pray that these honest brave boys in the service have the tenacity to remain honest and brave in spite of the humiliation and harassment they will be subjected to. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see our<strong> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=18379" target="_blank">CobWeb</a>.</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Exemption for steel imports from applicability of Steel and Steel Products (Quality Control) Second Order, 2012</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has exempted import of steel and steel products from the applicability of Steel and Steel Products(Quality Control) Second Order, 2012 in relaxation of Para 2(A) of General Notes Regarding Import Policy, ITC(HS), 2012 Schedule 1 (Import Policy). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The exemption shall be available to projects in the Infrastructure, Petroleum, Manufacturing products involving high-end technologies, Nuclear Reactors, Defense, Chemical and petro-chemicals, and Fertilizer sectors subject to the following conditions: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i. The minimum investment in the project is not less than Rs.1000crore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii. The import will be allowed only to the Actual Users. Surplus, if any, cannot be disposed off in the domestic market without satisfying the quality standards as per Steel and Steel Products (Quality Control) Second Order, 2012 applicable for the domestic steel industry. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii. Quality certification from the recognized Quality Certifying Body of the country of origin. </font></p>
</blockquote>
<p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2013/dgft13not033.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 33 (RE-2013)/2009-2014, Dated: August 07 2013 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">E-ndia - Income Tax - Overwhelming Response to e-Filing - 1.23 crore returns filed </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>OVER</strong> 1.23 crore income tax returns were electronically till 5th August 2013, the last date for filing returns. On the last day nearly 7 lakh returns were filed. The systems did not crash; there was no panic; returns were accepted and on a single day, they sent nearly 7 lakh acknowledgements. Jai E-ndia. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">ST - Refund is not admissible on such services received prior to date they were notified in notification 17/2009-ST: CESTAT </font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS</strong> is a Revenue appeal.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The respondent filed claim for refund of service tax under Notification 17/2009-ST dated 07/07/2009 on 21/07/2010 for refund of service tax paid on input service received and used in respect of exports for the month of August and September 2009. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The adjudicating authority rejected the refund claim but the Commissioner(A) set aside the same and directed the lower adjudicating authority to process the claim as per law. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before the CESTAT, the Revenue representative submitted that the services provided of transport of export goods through national waterway, inland water and coastal shipping under (zzzzl) was inserted in notification 17/2009-ST vide notification 40/09-ST dated 30/09/2009. And since the period for which the refund has been claimed is prior to insertion of the said service, the benefit of notification 17/2009 read with Notification 40/2009-ST is not available to the respondent. Inasmuch as the operation of the impugned order passed by the Commissioner (A) may be stayed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Holding that the notification would not be available to the applicant, the CESTAT granted stay in the matter. </font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally, the O-in-A is dated 21/02/2011 and it is highly unlikely that the adjudicating authority would have kept the refund claim pending for so long without any stay. </font></p>
<p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See <font size="1"><a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODk0MDE=" target="_blank">2013-TIOL-1197-CESTAT-MUM</a></font></font></strong></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Taxes on import of non-fiction books to be scrapped </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Finance Ministry will soon issue a regulation that will eliminate value-added tax (VAT) and income tax for the importation of non-fiction books, which accounts for around 10 to 20 percent of the book price, a move that is expected to help the public afford international resources deemed beneficial for domestic development. </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"The state gains little from taxing imported books. So why should we maintain the policy if scrapping the taxes could actually create bigger gains in terms of knowledge and perspective. We expect the public could soon afford books that are actually beneficial for development", the Finance Minister said. </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is the latest development in<font color="#FF0000"><strong> <em>Indonesia</em></strong></font>.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT Cartoon </font></strong></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/Administrators.jpg" alt="Legal Corner Icon" width="424" height="479" hspace="5" border="0" align="center"></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><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">Customs</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Import of coal from Indonesia - whether simultaneous benefit of Notification No.46/2011-Cus dated 1 June 2011 and No.12/2012-Cus dated 17 March 2012 is available - the petitioner to avail of benefits subject to giving a bank guarantee for 20% of the differential duty and bond for the balance amount: HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> their WP filed before the Bombay High Court, the petitioner states that the coal imported by them from Indonesia is entitled to the benefit of two customs duty exemption Notifications viz. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2011/ctariff11_046.htm" target="_blank">No.46/2011-Cus</a></strong> dated 1 June 2011 and <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_012.htm" target="_blank">No.12/2012-Cus</a></strong> dated 17 March 2012 as these notifications are not mutually exclusive. Inasmuch as there is nothing in either of the notifications mentioning that benefits under any other notification cannot be availed of. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The department is denying the benefit of simultaneous exemption under both the notifications and restricting the benefit to only one of them. The petitioner vide a communication dated 4 July 2013 has been informed that in the Chief Commissioner's Conference held at Vizag on 5 June 2013, it was decided not to extend simultaneous benefit of two notifications. </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
payments made towards reservation of school seats for children of frequently
- transferred officers amount to perquisite, and the same is taxable -
NO: ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>assessee, State Bank of India, a nationalized bank has raised the following grounds of appeal before the Tribunal against the order of the CIT(A). The assessee has paid to various schools towards reservation of seats for the children of the officers of the Bank. It was submitted that such amounts paid towards reservation of seats for the children of the officers of the Bank is in the nature of staff welfare expenses to mitigate the hardship faced by the officers of the Bank for children's education during transfer/re-location. However, the AO disallowed the same and observed that the assessee has committed irregularity by not including those payments in the perquisite of the employees. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tribunal allowed the appeal. </font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ST
- Appellant booking cargo space in shipping lines and, thereafter, allotting
the space to their customers - Cargo space is not goods; therefore, booking
of cargo space and trading in cargo space cannot be considered as supply/sale
of goods and has to be considered as supply of services - Any activity
other than supply of goods amounts to supply of service -Pre-deposit ordered:
CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> appellants are a freight forwarding agency and
they are also registered as a multi-modal transport operator. They book
cargo space in shipping lines and thereafter, they provide/allot the space
to their customers. The department was of the view that the activity undertaken
by the appellant comes within the category of "Business Auxiliary
Services" and the appellant was promoting the service rendered by
the shipping lines. </font></p>
<p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our Columns Monday for the judgements </font></strong></p>
<p><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tomorrow is Holiday - <em>Idu'lFitr</em>.</font></strong></p>
<p><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 extended 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>
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