TIOL-DDT 233 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT
233</font><br>
02 11 2005<br>
Wednesday</strong></font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<strong>Drawback - when inputs are imported availing DEPB - yet another faux
pas from the Board</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Board clarifies that <strong>"it has been decided that the additional customs
duty paid through debit under DEPB shall also be allowed as brand rate of duty
drawback."</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">The
Board clarification needs a little analysis. Here's the text of the operative
part of the circular.</font></p>
<div align="justify">
<ul>
<li> <font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> an
issue has been raised as to whether additional customs duty paid through
debit under DEPB can be allowed as brand rate of duty drawback.</font></li>
<li> <font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> The
matter has been examined by the Board. Hitherto, the additional customs
duty paid in cash only was adjusted as CENVAT credit or duty drawback
while the same paid through debit under DEPB was not allowed as duty drawback.
In the Foreign Trade Policy 2004-2009, which came into force
w.e.f. 1.9.2004, it has been provided under paragraph 4.3.5 that the additional
customs duty/excise duty paid in cash or through debit under DEPB
shall be adjusted as CENVAT credit or Duty Drawback as per the rules framed
by the Department of Revenue. Taking note of this change, it has been
decided that the additional customs duty paid through debit under DEPB shall
also be allowed as brand rate of duty drawback.</font></li>
</ul>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
So according to the Board,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
1. The Foreign Trade Policy has provided that CVD paid through DEPB credit can
be adjusted as Cenvat Credit or Drawback <strong>as per the rules framed by
the Department of Revenue. (Board is not sure whether such rules have been framed)</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
2. Taking note of this change, Board has now decided (by a circular) that CVD
paid through DEPB shall also be allowed as duty drawback.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Now this raises certain questions:-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
1. Board has issued this clarification by a circular on 28th October 2005. Since
when is it effective? From October 28th 2005 or September 2004?<br>
2. Will drawback be given from the date of the policy?<br>
3. This circular is silent on cenvat credit. Does it mean Cenvat credit will
be allowed of the CVD paid from DEPB credit?<br>
4. Why is this circular silent on cenvat credit and what was the need for clarification
on drawback (only)?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT</strong>
invites comments from our netizens on this issue. Please mail them immediately.
We will come up with answers tomorrow.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2005/cuscir05_041.htm">CIRCULAR
NO. 41 /2005-CUSTOMS dated the 28th October,2005</a></strong></font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<strong>Tariff Values for palm oil and brass scrap increased.</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
The existing and the new rates are as follows:</font></p>
<table width="450" border="1" align="center">
<tr>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S.No.</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter
heading / sub-heading</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Description
of goods</font></div></td>
<td> <div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff
value<br>
US$<br>
(Per Metric Tonne)</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>New
Tariff values</strong></font></div></td>
</tr>
<tr>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1)</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2)</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3)</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4)</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(5)</strong></font></div></td>
</tr>
<tr>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511
10 00</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude
Palm Oil</font></div></td>
<td> <div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">426</font></div></td>
<td><div align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">434</font></strong></div></td>
</tr>
<tr>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511
90 10</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD
Palm Oil</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
436</font></div></td>
<td><div align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">439</font></strong></div></td>
</tr>
<tr>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511
90 90</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others
– Palm Oil</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
431</font></div></td>
<td><div align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">437</font></strong></div></td>
</tr>
<tr>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511
10 00</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude
Palmolein</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">438</font></div></td>
<td><div align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">443</font></strong></div></td>
</tr>
<tr>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511
90 20</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBD
Palmolein</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">447</font></div></td>
<td><div align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">449</font></strong></div></td>
</tr>
<tr>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1511
90 90</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Others
– Palmolein</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">443</font></div></td>
<td><div align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">446</font></strong></div></td>
</tr>
<tr>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7.</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1507
10 00</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Crude
Soyabean Oil</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
518</font></div></td>
<td><div align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">513</font></strong></div></td>
</tr>
<tr>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8.</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7404
00 22</font></div></td>
<td><div align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Brass
Scrap (all grades)</font></div></td>
<td><div align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2004</font></div></td>
<td><div align="left"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2067”</font></strong></div></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2005/cnt05_098.htm">NOTIFICATION.
No. 98 /2005-CUSTOMS (N.T.) dated 31st October,2005</a></strong></font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<strong>Charitable Trusts and Political parties out of FBT- ordinance.</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
TAXATION LAWS (AMENDMENT) ORDINANCE, 2005 was promulgated and the political
parties and charitable organisations are out of the Fringe Benefit Tax. For
more details please see our Breaking News.</font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<strong>A Tax Assistant's privilege </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_233_SThangasamy.jpg" alt="S. Thangasamy" width="118" height="260" hspace="3" align="left">This
is S. Thangasamy, Tax Assistant at the Range-15 office situated at the sixth
floor of the new block of "Aayakar Bhavan, Chennai's Income Tax Office.
Engaged as he was in the routine and boring job of collecting, Income Tax returns
from those far richer than him, around 11-15 a.m. on Monday he had a special
assessee queuing up to file his IT return - none other than his super boss -
the Finance Minister of India.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mr.
Chidambaram himself appeared before Thangasamy and filed his IT returns. But
why did the FM walk in to file the return? Ask him!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
"My idea of coming to the Income Tax Office in Chennai is to create among
the people a greater awareness on filing IT returns on time and being a dutiful
tax paying citizen. <strong>Paying taxes should become a matter of pride. Hold
your head high and wear the badge of respect</strong>," said Mr.Chidambaram</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Of
course there was a little more than filing returns.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
"My visit to the IT office also gave an opportunity to meet the officials
and staff and have a better knowledge of the ground realities," He added.</font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>US
treasury secretary John Snow to visit India</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
per US Treasury announcement, Secretary Snow is to visit next week to discuss
liberalising the Indian economy and India's role in global trade talks. Mr.
Snow is to talk to the Indian Finance Minister and leading businessmen and visit
the Bombay Stock Exchange.</font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Smuggling,
Corruption, cover up and US Customs</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_233_DianeKleiman.jpg" alt="Diane Kleiman" width="109" height="165" hspace="3" align="left">Diane
Kleiman got fired for doing her job well - with US Customs. Se worked with the
US Customs where she caught too many drug runners and too many money launderers.
She exposed security leaks where terrorists can get bombs on planes and where
airline employees can smuggle terrorists on board.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And
what happened? She lost her job! Here's an interesting experience from her job
with the Customs, in her words.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
"On February 3, 1999, as a novice agent, I arrested two suspects and nearly
$750,000 in cash. At some point while the currency was in the custody of the
U.S. Customs Service, approximately $300,000 simply disappeared. I made note
of the missing money in the "Report of Investigation" (ROI). My boss,
Tom Flood, after a review of that report, ordered me to change the amount of
the missing cash to a mere $44,000. It is interesting to note that all rooms
at JFK Customs are equipped with video cameras--with one exception: the room
where the currency is counted has no camera. I assumed that even a $44,00 discrepancy
would spark interest from higher up in the agency. I was wrong. To my surprise,
no internal affairs investigation was initiated. Instead, I was alienated and
isolated from the group. While this was my <em>first</em> arrest, Supervisor,
Tom Flood ordered the other agents in the office not to assist me."</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And
what did she do to fight the injustice? She started a web site. You can read
more about the shady deals in US Customs in her web site- <br>
<a href="http://www.customscoverup.com/index.html" target="_blank">http://www.customscoverup.com/index.html</a></font></p>
<p align="justify"><font color="#FF9999" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF6666">Until
tomorrow with more DDT</font></strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>
Have a nice day. </strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Mail
your comments to</strong></font><font color="#FF9999" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>
</strong><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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