TIOL-DDT 2226 · 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 align="justify"><font 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 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"></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></font><font color="#663399" size="3">TIOL-DDT 2226</font><font size="2"><br> </font></strong><font size="2"><strong>07.11.2013<br> Thursday </strong></font></font></p> <p align="center"><font 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 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></strong></font></strong></font></strong></font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Issue TDS Certificates Promptly - RBI Tells Banks</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> has come to the notice of the Reserve Bank of India that some banks are not providing TDS Certificate in Form 16A to their customers in time, causing inconvenience to customers in filing income tax returns timely. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With a view to protect interest of the depositors and for rendering better customer service, RBI has advised banks to provide to their customers from whose income, tax has been deducted at source, TDS Certificate in Form 16A. Banks are advised to put in place systems that will enable them to provide Form 16A to the customers within the time-frame prescribed under the Income Tax Rules. Banks should avoid waiting till the last moment. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=347&filename=notification/rbi/2013/rbi013noti023.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RBI DBOD.No.Leg.BC.65/09.07.005/2013-14, Dated: November 6, 2013</strong></font></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NRIs scared of carrying Gold home </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>'Arab News' published from Jeddah reported yesterday that Non-resident Indians (NRIs) traveling to Calicut, Kochi, Chennai and Hyderabad are reluctant to carry gold jewellery and ornaments home for fear of Customs. The recent seizures and arrests in these airports must have scared the NRIs. There is no clarity on how much gold ornaments an Indian returning from a foreign country can bring. Many believe that ornaments of daily use can be brought without any Customs duty, while some Customs officers believe that a lady can bring ornaments worth Rs. 1 Lakh and a gentleman can bring ornaments worth Rs. 50,000 - used or otherwise - on this, there is difference of opinion among the Customs officers in different airports and even within the same airport. After all, how much gold do you get for Rs. 1 Lakh? Any ordinary Indian lady would be wearing gold worth far more than that. Ornaments also have a lot of sentimental value and women shriek when Customs officers ask them to pay duty on the ornaments they are wearing. And it is really difficult for the Customs officers to deal with such cases at ungodly hours. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A passenger coming on Transfer of Residence is allowed to bring in <em>jewellery taken out earlier by the passenger or a member of his family from India</em>, subject to the satisfaction of the Assistant Commissioner of Customs that the jewellery have been taken out earlier from India. Now, how do you satisfy the Assistant Commissioner that your mother-in-law had taken the jewellery out of India ten years ago and you inherited it after her death in USA a couple of years ago? And if the Assistant Commissioner is not satisfied, am I supposed to satisfy the Commissioner (Appeals), the Tribunal, the High Court and the Supreme Court that the jewels were indeed taken out of India? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC website has a "Guide for travellers" [<font color="#0000FF"><strong>http://cbec.gov.in/trvler-guide_ason22 may 2013.pdf</strong></font>], but even this guide does not answer these questions. The Guide says that duty free allowance is <em>not applicable to Gold or silver in any form, other than ornaments</em>. Does it mean that ornaments can be imported duty free?</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>How many laptops can you bring when returning to India? </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS </strong>is another area of confusion. Normally a techie returning from US or other countries would bring a new laptop for some dear member of his family or a friend. He would like to bring his personal laptop and he may also have to carry the laptop provided by his Company for official work. Will he be allowed duty free clearance of all the three laptops - two old ones and a new one? Actually a free laptop is not covered under baggage rules; it is separately exempted by Notification No. 11/2004-Cus dated 08.01.2004. Should he pay duty on the two laptops and what if he carries them back when he goes back - will he get a refund? The Customs have no mechanism to monitor exported goods returning and imported goods taken back by passengers. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Youngsters coming back from foreign countries to their dear native land have so many questions on the perils and procedures of Indian Customs and they rarely get authentic answers. The solution they get from peer group is - carry some dollars and bribe the Customs officers - that's the easiest way! </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Personal Income Tax Collections up by 18 percent </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GROSS</strong> direct tax collections during April-October of the Financial Year 2013-14 is up by 11.58 percent and stood at Rs.3,37,907 crore as against Rs.3,02,844 crore in the same period last year. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While Gross Collection of Corporate taxes has shown an increase of 8.23 percent and stood at Rs.2,09,622crore as against Rs. 1,93,679 crore in the same period last year, Gross collection of Personal income tax is up by 17.89 percent and stood at Rs.1,25,078 crore against Rs. 1,06,097 crore in the same period last year. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Net direct tax collections is up by 13.33 percent and stands at Rs. 2,84,339 crore, as compared to Rs. 2,50,900 crore in the same period in the last fiscal. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The collection of Securities Transaction Tax (STT) stands at Rs. 2,645 crore showing the growth of 5.67 percent as compared to collections made in the same period in the last fiscal. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Wealth Tax has posted a growth of 5.86 percent and stands at Rs.560 crore as against Rs. 529 crore in the same period last year. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Kind Customs Officers </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WE</strong> hear all kinds of nasty stories about arrogant, corrupt and insensitive Customs Officers - For a change, read this: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It was Diwali day - rather it was Diwali night or rather 2.30 am. The Customs officers in Mumbai airport were having a break after they cleared the Riyadh flight. The Customs officers came to know about the harrowing tale of a girl who had just landed in the airport from Riyadh. She was sent to Riyadh fifteen days ago by a man from a village near Kathmandu promising a job in Riyadh. She had been sold in the flesh trade. For some reason, she was put in a flight to Mumbai with just 100 Riyals. It would cost her Rs. 25,000 to fly to Kathmandu from Mumbai. She knew no language other than Nepali and a few words in Hindi. Just imagine what would have happened to such a girl if she had gone out of the Mumbai airport with nowhere to go and no money. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A lady Customs Superintendent suggested to her colleagues, "today is Diwali, let us send her home" - she demanded a thousand rupees from each colleague and out came the wallets of the tough Customs officers - they collected enough money for the ticket and they used all their connections in getting a ticket and a seat released from Delhi from the emergency slot. On hearing the story, even two Air India officers paid two thousand rupees for the ticket. The Customs officers took the girl to their office, fed her and finally put her on a flight to home - Kathmandu via Delhi. "our daughter from Nepal", the lady officer whispered as they saw her off - she neither waved, nor talked - nor did the Customs officers - they just had the most fantastic Diwali celebration! </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>India has 103 billionaires </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per the latest Census of world billionaires conducted by Wealth-X, India has 103 billionaires. This is in dollar terms. Let us do a quick conversion. One billion is a hundred Crores; so a hundred crores dollars will in our terms be equal to about Rs.6200 Crores. So the survey shows that there are 103 Indians with a wealth of over 6300 Crores rupees. The survey must be totally off the mark as far as India is concerned - of course they take into consideration only white money. Every top politician in India must be worth far more than that - some of the politicians are said to be worth more than a lakh crores. Anyway we are talking of declared wealth. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">India has the sixth largest billionaire population in the world, narrowly behind Russia. The majority of Indian billionaires are college-educated, with 72 percent possessing at least a bachelor's degree (Switzerland and the US are the only other two countries that have a higher proportion of university-educated billionaires.) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">India is one of the few countries where finance, banking and investments is not one of the most significant industries. Instead, industrial conglomerates and pharmaceuticals are the first and second most significant industries for Indian billionaires. Only 3% of Indian billionaires are women. 95 percent of Indian billionaires made their billions in India only. </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/paranoia.jpg" alt="" width="400" height="310" hspace="5" border="0" align="middle"></font></strong></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"> - Friday's cases</font></strong></font></strong></font></p> <p align="justify"><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_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></font></strong></font><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2">Central Excise</font></strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CENVAT - Diesel Hydrogen Desulphurisation (DHDS) plant together with SRU and SSRU have to be treated as capital goods used for manufacture of marketable HSD and not as capital goods used for manufacture of exempted Sulphur - When purpose of Pollution Control Board and Environment Ministry is defeated, order of adjudication should not sustain - Credit admissible: CESTAT </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DURING</STRONG> the period April 2000 to March 2003 the appellant were availing CENVAT credit on the inputs and capital goods. The dispute is about eligibility for CENVAT credit of the capital goods namely Sulphur Recovery Unit (SRU) and Standby Sulphur Recovery Unit (SSRU). The total CENVAT credit availed by the appellant in respect of these capital goods is Rs. 6,22,91,614/-. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The department is of the view that these capital goods are not eligible for CENVAT credit, as the same have been exclusively used for manufacture of exempted final product -Sulphur. The demand was confirmed along with interest and penalty by CCE, Rohtak. </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 in case assessee bears loss on account of demurrage and dead freight, turnover for purpose of Sec 80HHC would be considered net of loss amount - NO: HC </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEE</STRONG> is a trading concern exporting Molasses, granites, diamond and leather. It exported molasses worth Rs.6,14,87,164/- from M/s. United Molasses, London. A per the terms, demurrage and dead freight incurred by virtue of loading molasses at Kochin Port had to be borne by M/s. United Molasses, London and the same was to be paid to the Chartered Ship owners. M/s. United Molasses, London in turn, collected the demurrage and dead freight charges from the assessee on the ground that the delay in loading was attributable to the assessee. The issue before the Bench is - Whether in case assessee has to bear loss on account of demurrage and dead freight, turnover for the purpose of section 80HHC would be considered net of the loss amount. And the ruling goes in favour of the assessee.</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">Appellant conducting market research on behalf of customers situated abroad - services have to be considered as export of service and would not be liable to Service Tax -Appeal allowed: CESTAT</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>appellants are engaged in providing market research. They are conducting the market research on behalf of certain customers situated abroad. After conducting the market research, the results of the same are communicated to their clients abroad and consideration for the said service has been received in convertible foreign exchange. The fact that the results of such market survey were being sent abroad and the amount was being received under the convertible foreign exchange is not disputed. It is the case of the Revenue that the whole of the service has been provided in India and just because the results of the service have been communicated abroad, it is not implied that the service has been provided abroad; inasmuch as the taxing event is not the consumption of service but the provision of service and since the service has been provided in India, they are liable to pay service tax. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our Columns Tomorrow for the judgements </strong></font></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> <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>