TIOL-DDT 224 · the untouched capture
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<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><B><font color="#663399" size="3">TIOL-DDT
224</font><BR>
19 10 2005<BR>
Wednesday</B></font></P>
<P align=center><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><STRONG>Import
of Coal (as input) under DFRC Scheme</STRONG></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
per the FTP, a DFRC shall be issued only in respect of products covered under
the Standard Input Output Norms (SIONs) as notified by DGFT and the import
of fuel under the general norms should be allowed with Actual User condition
only. It further stipulates that for fuel, the import entitlement may be transferred
only to the Companies, which have been granted authorization to market fuel
by the Ministry of Petroleum and Natural Gas. There are certain SIONs in which
one of the inputs allowed is coal, which is used either as an important input
for the manufacture of resultant export product or the same is used as fuel
for energy production.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT
has now clarified that wherever coal has been allowed as one of the inputs
in SION i.e. when its consumption is directly related to the manufacturing
of the export product and not for generation of power, it should be treated
at par with other inputs which are transferable under DFRC.<BR>
<BR>
<STRONG><U><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2005/dgft05cir031.htm">DGFT
CIRCULAR NO. 31(RE-2005)/2004-2009/ Dated: October 18, 2005 </a> </U></STRONG></font></P>
<P align=center><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><STRONG>Anti
dumping duty imposed on Polytetrafluoroethylene(PTFE)</STRONG></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Government has imposed anti dumping duty on <B>Polytetrafluoroethylene (PTFE)
</B>originating in, or exported from, the People's Republic of China.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><STRONG><U><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2005/ctariff05_091.htm">NOTIFICATION
NO . 91/2005-CUSTOMS Dated October, 17 2005</a></U></STRONG></font></P>
<P align=center><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><STRONG>Suggestions
on draft circular on service tax - advertising - date extended</STRONG></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board
informs that last date for receiving feedback on the draft circular on advertising
services has been extended up to 27/10/05. .Feedback may be sent preferably
by email to <U><a href="sriramramamoorthi@yahoo.co.in">sriramramamoorthi@yahoo.co.in</a></U>.
While we have already expressed our opinion in<STRONG> DDT 220 </STRONG>-
13 10 2005 - a concerned netizen wrote to us.</font></P>
<BLOCKQUOTE>
<BLOCKQUOTE>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Circular intends to include the cost of the media in the value of services
rendered by the advertising company, but while reiterating in page 1 of
the new Circular all earlier communications must be considered. Considering
this, we refer to an earlier Circular no.78/08/2004-ST dt.23.03.04 which
clarify that free commercial airtime when sold by Private Producers, will
not be includable in the value of the services rendered by the Advertising
Agency. Considering that the Board had decided its views, it is pertinent
the 2004 March Circular on FCT should also be taken on record and emphasized
that FCT when sold by Private Producers would also form part of the value
of the service rendered by the Advertising Agency. </font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
is relevant that the entire gamut of advertising services need to be considered
as one single service tax chain and it should be ensured that there is
no breakage of the service tax chain. In other words, a manufacturer should
not be put in a position that he will pay the tax on the Services availed
but will not be entitled to credit as this runs counter to the Hon’ble
Finance Minister’s speech in July 2004 wherein he has clearly mentioned
intermingling of credits will allowed between goods and services. </font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
would also be pertinent that the Ministry of Finance and Central Board
of Excise and Customs should also adequately use the services of organisations
like Indian Society of Advertisers to develop a broad base invoice format
wherein the cost of the media purchased downstream would get reflected
in the ultimate cost of the advertising cost charged to the manufacturer.
The Final Circular should illustrate all cases including FCT and explain
that there will be no problem in availing Cenvat credit. </font></P>
</BLOCKQUOTE>
</BLOCKQUOTE>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
netizen raises a serious problem about taking credit. Will the Board listen?</font></P>
<P align=center><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><STRONG><i>Ghoos
Mahal </i></STRONG></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After
Tihar Jail and Sales Tax, Ghoos Mahal 3 for the TV Channel Aaj Tak was Delhi's
Service Tax offices and yesterday they 'caught' 15 officers accepting bribes.
More were<EM> caught</EM> but the cameras failed them and the TV channel has
gone to town with full blown reports about rampant corruption in the Service
Tax department. But what's so great about it? You go to any government office
with a hidden camera and you can easily 'catch' such bribery in action. After
all they caught 82 officers in 'Sales Tax' while they could get only 15 in
Service Tax. The real hero in these sting operations is <b>not the reporter
but the sophisticated cameras that are now available.</b></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
cameras in bags used by Tehelka in the 'defence deal' sting operation is antique
compared to what you have today. Now they have tiny, minuscule cameras that
can be fitted in cigarette cases, watches, files and even buttons. While the
reporter carries the camera, the receiver can be in the pocket or even in
the car. While size does matter, the real USP of these cameras is their low
cost compared to the open cameras used by news channels. While the public
camera used by a channel can cost around Rs. 3.5 Lakhs, the spy cam is available
for as less as Rs. 50,000/- And the quality is unbelievable with a lens the
size of a ball point pen. Incidentally many of these cameras are smuggled
into the country and most of the sting reporters are <b>carrying smuggled
goods, which can be seized by Customs.</b></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While
Aaj Tak went to town about the corruption in the Service Tax department, amidst
the cacophony, there was a sane voice from the former CBI director Joginder
Singh. He told the Aaj Tak, "power flows from the top". <b>Did he mean corruption
also flows from the top?</b> He also said that where there is personal contact,
there is a chance for corruption. Obviously the government can stop corruption
if it seriously wants to. But if the seat of government at the highest levels
is corrupt, what is their interest in stopping corruption, more so if they
have a share in and are directly responsible for the loot. While ending the
programme on bribes in Service Tax, Aaj Tak announced that it was not the
end of the programme - the programme will end only if corruption ends. That
means it will go on and on.</font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Corruption
and bribery is <b>as old as perhaps mankind itself. </b></font></P>
<UL type=disc>
<LI><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Lord Krishna
is said to have tried to bribe Karna to switch sides and on offer was apart
from the throne, the common wife! Karna did not fall for the bribe, but
a modern bureaucrat is no Karna. </font>
<LI><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Harischandra's
son Satyawrat is said to have tried to bribe Vashista's son Shakti and he
was cursed into Trishanku. </font>
<LI><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Helen was
merely the bribe granted by Aphrodite to Paris for cheating in her favour.
</font>
<LI><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Jesus Christ
was sold for twenty pounds - not by a Service Tax Inspector but by one of
his disciples. </font>
<LI><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Lord Clive,
the founder of British India was accused and tried for corruption and his
successor Hastings was no better. </font>
<LI><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Bofors would
look like small change compared to what Clive plundered from India. </font></LI>
</UL>
<P align=left><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><B><font color="#663399">"Just
as it is impossible not to taste the honey or the poison that finds itself
at the tip of the tongue, so it is impossible for a government servant not
to eat up, at least a bit of the king's revenue. Just as fish moving under
water can not possibly be found out either as drinking or not drinking water,
so the government servants employed in the government cannot be found out
while taking money."</font></B><font color="#663399"> - <font color="#000000"><b>Koutilya</b></font></font></font></P>
<P align=left><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><B>You
shall not take a bribe, for a bribe blinds the eyes of the wise, and subverts
the cause of the righteous</B> - <b><font color="#000000">The Holy Bible</font></b></font></P>
<P align=left><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><B>Do
not use your property as bait</B> <B>for the judges</B></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><B>
- <font color="#000000">The Holy Quran</font></B></font></P>
<P align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><B><font color="#FF6666">Until
tomorrow with more DDT<BR>
<BR>
Have a nice day. <BR>
<BR>
Mail your comments to</font> </B><A
href="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</A></font></P>
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