TIOL-DDT 2635 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><font color="#663399"><s><strong><strong><strong><strong><strong><strong><font color="#663399"><s><strong><strong><strong><strong><strong><font color="#663399"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=23157"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2015_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="300" height="148" hspace="5" border="0" align="right" ></a></font></strong></strong></strong></strong></strong></s></font></strong></strong></strong></strong></strong></strong></s></font></strong><font color="#663399" size="3">TIOL-DDT 2635 </font><br>
07.07.2015 <br>
Tuesday</strong></font></p>
<p align="center"><font size="2" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600" size="3"><em>Central Excise and Service Tax - Digital Signature and e-records </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Excise Rules were amended by Notification No. 8/2015-CENT to stipulate that: </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. <em>The records may be preserved in electronic form and every page of the record so preserved shall be authenticated by means of a digital signature. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <em>The Board may, by notification, specify the conditions, safeguards and procedure to be followed by an assessee preserving digitally signed records. </em></font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. <em>An invoice issued by a manufacturer may be authenticated by means of a digital signature: </em></font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Provided that where the duplicate copy of the invoice meant for transporter is digitally signed, a hard copy of the duplicate copy of the invoice meant for transporter and self attested by the manufacturer shall be used for transport of goods. </em></font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. <em>The Board may, by notification, specify the conditions, safeguards and procedure to be followed by an assessee using digitally signed invoice. </em></font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similarly the Service Tax Rules were amended by Notification No. 5/2015-ST to stipulate that: </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. <em>Records under this rule may be preserved in electronic form and every page of the record so preserved shall be authenticated by means of a digital signature. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <em>The Board may, by notification, specify the conditions, safeguards and procedure to be followed by an assessee preserving digitally signed records. </em></font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. <em>Any invoice, bill or challan issued under rule 4A or consignment note issued under rule 4B may be authenticated by means of a digital signature. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. <em>The Board may, by notification, specify the conditions, safeguards and procedure to be followed by any person issuing digitally signed invoices. </em></font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you want to maintain electronic records: </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. You will have to get a Class 2 or Class 3 digital signature Certificate duly issued by the Certifying Authority in India. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Before going electronic, you have to submit details of your name, digital signature, etc. to the DC/AC. If you are already using digital signature, this information must be submitted by 21 st July 2015. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Electronic records are to be maintained separately for each factory. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. The Department can ask you for printouts of the electronic records and invoices. Pray, why? What are you going to do with the tons of printed paper? And your FM says he is going to save paper. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Backup of records in electronic form is to be maintained and preserved for a period of 5 years. </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The digital language - confusing! </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Regarding the printing of electronic records somebody has improved English. See the wording in the draft notification (see <strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjMyNDU=" target="_blank">DDT 2568</a> </strong>) and the final notification. </font></p>
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<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Draft Notification </strong></font></p></td>
<td valign="top"><p align="center"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Final Notification </strong></font></p></td>
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<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Central Excise Officer, during an enquiry or investigation, may direct an assessee to furnish printouts of the electronic records and invoices during an investigation and may resume the documents and invoices under Section 14 of the Central Excise Act, 1944 after verifying the correctness of the same in electronic format. The print outs of such electronic records shall be signed by the assessee or any other person authorized by the assessee in this regard, if so requested by the Central Excise officer. </font></p></td>
<td valign="top"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Central Excise Officer, during an enquiry, investigation or audit, in accordance with the provisions of section 14 of the Central Excise Act, 1944 and as made applicable to Service Tax as per the provisions contained in section 83 of the Finance Act, 1994, may direct an assessee to </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">furnish printouts of the records in electronic form and invoices and may resume printouts of such records and invoices after verifying the correctness of the same in electronic format; and after the printouts of such records in electronic form have been signed by the assessee or any other person authorised by the assessee in this regard, if so requested by such Central Excise Officer. </font></font></p></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There seems to some rule in babudom that drafting has to be done in the most complex and complicated language - then you try to understand what you have written, try to interpret it in the most unnatural way and blame it as the intention of the legislature. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTgyNzc=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 18/2015-Central Excise (N.T.), Dated: July 06, 2015 </strong></font></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em> </em><strong><font color="#006600"><em>Black Money Disclosure - CBDT answers 32 Questions </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong><em>Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 </em> has introduced a tax compliance provision under Chapter VI of the Act. The <em>Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015 </em> have been notified. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With regard to the scheme, queries have been received from the public about the scope of the scheme and the procedure to be followed. The CBDT has considered the same and decided to clarify the points raised by issue of a circular in the form of 32 questions and answers.- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Some important issues: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Question No.1: </strong>If firm has undisclosed foreign assets, can the partner file declaration in respect of such asset? </font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Answer: </strong>The declaration can be made by the firm which shall be signed by the person specified in sub-section (2) of section 62 of the Act. The partner cannot make a declaration in his name. However, the partner may file a declaration in respect of an undisclosed asset held by him. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Question No.4: </strong>Whether the person making the declaration will be provided immunity from the Prevention of Money Laundering Act, 2002? </font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Answer: </strong> The offence under the PMLA arises while laundering money generated from the process or activity connected with the offences specified in the schedule to the PMLA. Therefore, the primary requirement under PMLA is commission of a scheduled offence. With the enactment of the Act, the offence of wilful attempt to evade tax under section 51 of the Act has become a scheduled offence under PMLA. However, where a declaration of an asset has been duly made under section 59 of the Act the provisions of section 51 will not be applicable in respect of that asset. Therefore, PMLA will not be applicable in respect of the scheduled offence of wilful attempt to evade tax under section 51 of the Act in respect of assets for which declaration is made under section 59 of the Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Question No.9: </strong> Can a declaration be made of undisclosed foreign assets which have been assessed to tax and the case is pending before an Appellate Authority? </font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Answer: </strong> As per section 65 of the Act, the declarant is not entitled to re-open any assessment or reassessment made under the Income-tax Act. Therefore, he is not entitled to avail the tax compliance in respect of those assets. However, he can voluntarily declare other undisclosed foreign assets which have been acquired or made from income not disclosed and consequently not assessed under the Income-tax Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Question No.10: </strong> Can a person against whom a search/ survey operation has been initiated file voluntary declaration under Chapter VI of the Act? </font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Answer: </strong>The person is not eligible to make a declaration under Chapter VI if a search has been initiated and the time for issuance of notice under section 153A has not expired, even if such notice for the relevant assessment year has not been issued. In this case, however, the person is eligible to file a declaration in respect of an undisclosed foreign asset acquired in any previous year in relation to an assessment year, which is prior to assessment years relevant for the purpose of notice under section 153A. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Question No.21: </strong> A person inherited a house property in 2003-04 from his father who is no more. Such property was acquired from unexplained sources of investment. The property was sold by the person in 2011-12. Does he need to declare such property under Chapter VI of the Act and if yes then, what will be the fair market value of such property for the purpose of declaration? </font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Answer: </strong> Since the property was from unexplained sources of investment the same may be declared under Chapter VI of the Act. However, the declaration in this case needs be made by the person who inherited the property in the capacity of legal representative of his father. The fair market value of the property in his case shall be higher of its cost of acquisition and the sale price as per Rule 3(2) of the Rules. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#00FFFF" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Question No. 29: </strong> Whether for the purpose of declaration, the undisclosed foreign asset should be held by the declarant on the date of declaration? </font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Answer: </strong> No, there is no such requirement. The declaration may be made if the foreign asset was acquired out of undisclosed income even if the same has been disposed off and is not held by the declarant on the date of declaration. </font></p>
<p align="justify"><a href="http://taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTgyNzY=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT Circular No.13/2015 Dated: July 06, 2015</strong><em> </em></font></a></p>
<p align="center"><font face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600" size="3"><em>FTP - Agencies Authorized to issue Certificate of Origin (Non-Preferential)</em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT </strong>has authorized Federation of Kutch Industries Associations, Gujarat, Indian Merchants' Chamber, New Delhi and National Chamber of Industries & Commerce, Uttar Pradesh for issuing Certificate of Origin (Non Preferential). </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTgyNzg=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Public Notice No. 25/2015-2020., Dated: July 06, 2015 </strong></font></a></p>
<p align="center"><font face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600" size="3"><em>706 Vehicles for Customs and Central Excise </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has conveyed the approval for hiring 706 new operational vehicles- one Mid-size vehicle each for 116 Commissionerate Headquarters, 553 small size vehicles, one each for 553 Division Offices/Circles under newly created formations and 37 small size vehicles for new Divisions under existing formations for the current F.Y. 2015-16 <font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span">towards enhancement of organizational efficiency of the field formations under the Central Board of Excise & Customs. </font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When you have offices and officers all over the place, you have to provide them with cars </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFFF00" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">towards enhancement of organizational efficiency</font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">. These cars will cost the Nation about Rs. 30 crores a year and that is the whole budget for CESTAT. That is with the money you spend for hiring new vehicles (these are in addition to the existing hired vehicles), you can run a Tribunal. These vehicles are not to be used for personal purposes and are meant for <em>operational needs of the Department</em>. What will so many vehicles do for operations and how many operations do they do? But car is a small privilege for a babu; we should not grudge. Let them enhance organizational efficiency. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTgyNzk=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC F.No 26015/04/2013-Cus(AS)., Dated: July 02, 2015 </strong></font></a></p>
<p align="center"><font size="2" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600" size="3"><em>Customs officer detained at Amritsar Airport </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is reported that a Superintendent of Customs was detained by Customs from Guru Ram DassJee International Airport after two gold biscuits weighing 400 gms were recovered from his car. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Superintendent posted in the International Airport was intercepted and his car in the airport's parking was searched when he was leaving for home - and they found the gold biscuits. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Meanwhile it seems the Assistant Commissioner absconding from the CBI in the Jaipur Customs bribery case is still missing.The Principal Commissioner got his promotion only last month and would have been transferred out in the ensuing transfers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is how a Jaipur Newspaper reported the incident in banner headlines. </font></p>
<p align="center"><img src="http://www.taxindiaonline.com/RC2/image/stories/banner_headlines.jpg" alt="Customs officer detained at Amritsar Airport " width="599" height="199" hspace="5" border="0" align="center"></p>
<p align="center"><font size="2" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600" size="3"><em>From IRS to IAS </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WE</strong> are told that the 38 th ranker in this year's civil service examination Lingaraj Panda is currently an IRS (Assistant Commissioner - Income Tax) officer probationer at NADT Nagpur. He is the son of Sukant Kumar Panda, Chief Commissioner of Customs, Central Excise and Service Tax, Bhubaneswar Zone. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With his rank, he will get IAS and probably his home state Odisha. </font></p>
<p align="justify"><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Congrats. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF6666">Until Tomorrow with more<strong> DDT</strong></font></font></p>
<p align="justify"><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></strong></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@tiol.in"><strong>vijaywrite@tiol.in</strong></a></font></p>
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