TIOL-DDT 2649 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3"><s><strong><font size="2"><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="3"><s><strong><font size="2"><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=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></font></strong></font></strong></font></strong></font></strong></s></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></s>TIOL-DDT 2649</font><br>
27 07 2015<br>
Monday</strong></font></p>
<p align="center"><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="3"><em>88th Amendment to the constitution - Precursor to GST? </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> mentioned in Friday's DDT, the Constitution 88th Amendment inserted a new Article 268A and a new Entry 92C in List -I (Union List) of the Seventh Schedule to the Constitution of India. To recall; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Article 268A (1) states, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"Taxes on services shall be levied by the Government of India". </em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Entry 92C reads as: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"92C. Taxes on services." </em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But there is a small problem - the Eighty Eighth amendment which was passed by both houses of parliament and 15 State Assemblies received the assent of the President on 15th January 2004. But this was never notified! </font></p>
<p align="justify"><font color="#000000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#006600" span="span">Why was the Bill introduced?</font> </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Statement of Objects and Reasons for the Bill states: </font></p>
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<td valign="top" bgcolor="#FFFF99"><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>At present, the item relating to "taxes on services" is not specifically mentioned in any entry either in the Union List or in the State List of the Seventh Schedule of the Constitution. Parliament has the exclusive power to make laws with respect to entry 97 of the Union List for any other matters not enumerated in List II or List III including any tax not mentioned in either of those Lists. In exercise of this power, the Central Government has periodically taxed certain services at the rate of five per cent. ad valorem. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>2. The States have taken a unanimous decision to replace their existing sales tax system with the system of Value Added Tax (VAT) from the 1st April, 2003. In this context, with a view to widening their tax base, the States have suggested that they should be enabled to collect and appropriate tax on services. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>3. The "service" sector accounted for 48.5% of the country's Gross Domestic Product (GDP) in the financial year 2000-2001. The role of this sector in the economy is quite significant. Expert Committees set up by the Central Government have repeatedly recommended taxation of services. On the basis of the deliberations between the State Governments and the Central Government and in view of the recommendations of various Expert Committees, it is proposed to suitably amend the Constitution to provide, (i) tax on services as a specific entry in the Union List, (ii) insertion of a new article, namely, article 268A and (iii) consequential amendment to article 270, to enable Parliament to formulate by law principles for determining the modalities of levying the said tax by the Central Government and collection of the proceeds thereof by the Central Government and the States. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>4. The proposed amendment would help in significant augmentation of revenues of the States in accordance with the proposed law, and pave the way for eventual inclusion of services within the purview of State level VAT. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>5. The Bill seeks to achieve the above objects. </em></font></p></td>
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</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Introducing the Bill on 6th May 2003, the Finance Minister Jaswant Singh said, </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The service sector has grown rapidly all over the world, India being no exception to that global trend. The service sector encompasses wide-ranging economic activities like management, banking, insurance, hospitality, administration, communication, entertainment, travel, wholesale distribution, retailing, research and development activities, professional activities, etc. In 2001-02 the service sector accounted for 48.45 per cent of the country's GDP. </em></a></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFFF00" span="span">In most developed countries goods and services are traded and taxed together</font>. Taxation of services in India was started through the Union Budget of 1994-95 when it was levied with effect from July 1, 1994 on stockbrokers, general insurance and telephone services. </em></font>
</p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The power to levy tax on service is, however, not specifically mentioned either in the Union List or in the State List or in the Seventh Schedule of the Constitution. Entry 97 of the Union List gives power to the Centre for levy and collection of any tax not mentioned in either List II or List III. At present, therefore, the Parliament has the power to levy and collect tax on services only as a residual taxation matter. In exercise of this power, the Central Government had periodically taxed selected services. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>Sir, the role of this sector being significant and on the basis of deliberations between the State Governments and the Central Government also in accordance with the views and the recommendations of the Expert Committees, it has been proposed to suitably amend Constitution. (i) To introduce a new entry, 92C, ‘Taxes on services', in the Union List, that is List I of the Seventh Schedule of the Constitution. (ii) To insert a new article 268 (a) in the Constitution to provide for levy of taxes on services by the Union and collection and appropriation of the proceeds thereof by the Union and by the States in accordance with the principles to be laid down by a new law to be made by the Parliament. (iii) After the proposed amendments to the Constitution are effected, to enact a suitable Central legislation to provide for all modalities, including levy of tax on services by the Union Government and collection and appropriation of the proceeds of this tax, up to the prescribed ad valorem limits, by the Union and the States respectively. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>After this proposed amendment to the Constitution is considered and adopted by the Parliament, it has to be ratified by the State legislatures. A suitable Central legislation will then be enacted to provide for all necessary modalities including collection and appropriation of the proceeds of the taxes on services by the Union and the States respectively. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The proposed amendment will facilitate reforms in the domestic trade system and widen the tax base of the States as and when they consider the VAT. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>With these few words, I commend the Bill for the consideration of the House. </em></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Replying to the Debate, the Finance Minister said, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>May I clarify at the very beginning that this amendment to the Constitution is an enabling amendment? Details of service, which services to be taxed and what services to be included will be part of the <font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFFF00" span="span">Service Tax Bill</font> which is yet to be presented to Parliament. It will be taken up at that occasion, and that would be a fitter occasion. This is a provision to include a tax measure in the Union List so that both the Centre and the States can collect it. <font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFFF00" span="span">The duty and the responsibility of levying the tax remains of the Union Government.</font> </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>A number of points came up and I will answer them briefly. For example, that there are minor services and why bring in minor services into the net of Service Tax. This is abundantly clear. This has been made clear on several occasions that the threshold of taxation, annual taxation based on annual turnover will be part of the Service Tax Bill. That Bill will define what the threshold is and minor services, which are the services that are to be excluded from it, will also be part of the Service Tax Bill. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The other theory which a number of Members, particularly the hon. Member from AIADMK Party, raised related to the respective division of the Service Tax between the States and the Centre. Now, the Bill is yet to be presented. It is entirely possible that when the Bill is presented we have that of the Service Tax which say eight per cent, a certain percentage is shared by the States. Now, that should very clearly answer the hon. Members' viewpoint whether it will enhance the revenue of the State or not. Of course, it will enhance the revenue of the States. It is self-evident that if what is not currently being taxed becomes available as a tax resource, then certainly it adds to the revenue. When we discuss as to what percentage of this eight is to be shared between the Centre and the States, what percentage is to be shared, it is entirely possible that certain services which are of a particular nature, those services remain the exclusive preserve of the States. But it is necessary here to understand that when it comes to the Service Tax Bill, we will be considering what is it that should be shared. Should it be the tax that is shared or should it be the service that is shared? What it will eventually amount to is that certain services will fall in the purview of the States. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>But I am sure that the hon. members recognise and understand that all the States of the Union do not have a uniform spread of services. For example, certain States are small in size or are geographically located in such a fashion that they do not have such services and it is the responsibility of the Centre to ensure as much equality as possible. These are all issues which will be considered when the Parliament considers the Service Tax Bill as such. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>After all, it is an emerging tax which we are considering. All taxes are listed in the Lists and therefore, on this new provision, it is a Constitution (Amendment) Bill that we are considering, which is really an enabling provision. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nothing happened for the next 11 years and today we are trying to get another amendment to the Constitution passed by the Parliament and the States. </font></p>
<p><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">But why was it not notified? </font></p>
<p align="center"><font color="#006600" size="3" face="Verdana, Arial, Helvetica, sans-serif"><strong><em>Income Tax - Cost Inflation Index </em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>As </strong> per Section 48 of the Income Tax Act, for calculating capital gains, indexed cost of acquisition is to be deducted from the sale consideration to arrive at the taxable gains. And the Government is to notify a cost inflation index (CII). The government has now notified <strong>1081 </strong>as the cost inflation index for 2015-16. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Cost Inflation Index for the previous years: </font></p>
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<td valign="top" bgcolor="#00CC33"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Sr. No </strong></font></p></td>
<td valign="top" bgcolor="#FFCC00"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Financial Year </strong></font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CII </strong></font></p></td>
<td rowspan="19"><div align="left"></div></td>
<td valign="top" bgcolor="#00CC33"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Sr.No </strong></font> </p></td>
<td valign="top" bgcolor="#FFCC00"><p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Financial Year </strong></font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CII </strong></font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1981-82 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">100 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1998-99 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">351 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1982-83 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">109 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">19 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1999-00 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">389 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1983-84 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">116 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">20 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2000-01 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">406 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1984-85 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">125 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">21 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2001-02 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">426 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1985-86 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">133 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">22 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2002-03 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">447 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1986-87 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">140 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">23 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2003-04 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">463 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1987-88 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">150 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">24 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2004-05 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">480 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1988-89 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">161 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">25 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2005- 06 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">497 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1989-90 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">172 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">26 </font></p></td>
<td bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2006-07 </font></p></td>
<td bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">519 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1990-91 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">182 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">27 </font></p></td>
<td bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2007-08 </font></p></td>
<td bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">551 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1991-92 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">199 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">28 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2008-09 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">582 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1992-93 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">223 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">29 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2009-10 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">632 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1993-94 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">244 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">30 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2010-11 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">711 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1994-95 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">259 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">31 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2011-12 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">785 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1995-96 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">281 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">32 </font></p></td>
<td bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2012-13 </font></p></td>
<td bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">852 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1996-97 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">305 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">33 </font></p></td>
<td bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2013-14 </font></p></td>
<td bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">939 </font></p></td>
</tr>
<tr>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">17 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1997-98 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">331 </font></p></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">34 </font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2014-15 </font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">1024 </font></p></td>
</tr>
<tr>
<td bgcolor="#00CC33"> </td>
<td bgcolor="#FFCC00"> </td>
<td bgcolor="#FFFF33"><font color="#FF0000"> </font></td>
<td valign="top" bgcolor="#00CC33"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>35 </strong></font></p></td>
<td valign="top" bgcolor="#FFCC00"><p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>2015-16 </strong></font></p></td>
<td valign="top" bgcolor="#FFFF33"><p align="right"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1081 </strong></font></p></td>
</tr>
</table>
<p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTgzNDA=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax Notification No. 60/2015, Dated: July 24, 2015 </strong></font></a></p>
<p align="center"><em><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="3">Customs - Integration of Extra Duty Deposit module in ICES </font></strong></font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Jawaharlal Nehru Custom House informs that payment of Extra Duty Deposit is integrated with ICES and now manual payment will not be allowed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the cases where the importer and the supplier are related in terms of the Rule 2(2) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, the SVB of the jurisdictional Custom House issues Circular mandating the importer to pay the Extra Duty Deposit (EDD) of either 1% or 5% as per Para 9 of the Board's Circular 11/2001-Cus. dt. 23.02.2001. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Hitherto the EDD was paid manually by the importer or Customs Broker through Bank Challans and thereby increasing the time taken for clearance of the goods and subsequent storing of these Challans for a long time till finalization of the provisional assessments and sanction of refund if any. The verification of these Challans consumes lot of time at the time of finalization of the provisional assessments and sanction of refund if any. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now with a view to cut down these delays and costs, the EDD payment is made online through e-payment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Customs Brokers or importers are required to approach the Appraising Officer of the group to which the Bill of Entry belongs, whether facilitated by RMS or not. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After the relevant entries are made and duly saved by the Appraiser of the concerned group, the Challan for EDD will be generated in ICES 1.5 and particulars of EDD are forwarded to Bank for e-payment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFFF00" span="span">From now onwards, manual payment of the EDD shall not accepted.</font> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTgzNDE=" target="_blank">JN Custom House Public Notice No. 57/2015., Dated July 23 2015. </a></strong></font></p>
<p align="center"><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="3"><em>Web Based e-helpline in JN Customs </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> order to facilitate trade, a new web-based module <a href="http://www.jawaharcustoms.gov.in/index.php/e-query"><strong>"e-Helpline" </strong></a> is being introduced through JNCH website to provide direct interactive tool to solve trade-related queries in best possible time. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#006600" span="span">The types of query which will be
entertained under "e-Helpline" are:</font></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Procedural issues of Import & Export clearance and other activities related to Jawahar Customs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Issues related with Refund, Drawback, Licence, Any Permission/Application. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Status of NOC from other Government Agencies </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#006600" span="span">The types of query which will <strong>not </strong>
be entertained under "e-Helpline" are:</font></font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Seeking legal advice or clarification on any quasi-judicial or policy matters.
Issues related to EDI or ICEGATE. (As there is a separate dedicated helpdesk) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Issues related to Classification/Valuation etc. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Complaint against any officer. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Complaint not under jurisdiction of Customs/JNCH. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The query will be replied through registered e-mail only, within a time frame of 48 hours. The time-frame will be calculated from the time of receipt of query by Administrative Authority during office working hours. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTgzNDI=" target="_blank">JN Custom House Standing Order No. 31/2015., Dated July 22 2015. </a></strong></font></p>
<p align="center"><font color="#006600"><em><font size="3" face="Verdana, Arial, Helvetica, sans-serif"><strong>SCN Pending for 12 years - Will JNCH Reply? </strong></font></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHILE</strong> the e-helpline project of the JN Customs is laudable, DDT has come across the following issue: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Show Cause Notice was issued to an importer in January 2003 and the importer replied in June 2003 and that was the end of it. Of course in the meanwhile, the Customs collected a huge amount of duty from them as a pre-condition for release of the goods. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since then, the importer had been pleading with the Customs to give a hearing or issue an adjudication order. In spite of periodic reminders, there is stoic silence from the Department. The importer had written three letters to the Chief Commissioner, with no result. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, under the JN Customs, there are six Commissioners - God knows where this file is and whether it can be recovered. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What kind of helpline should this importer make use of in getting his adjudication order, so that he can rush to the Tribunal? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Or should the importer seek information under the RTI Act, 2005 and then file a Writ before the High Court to get a decision as in this case - see <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA0OTQx"><strong>2015-TIOL-1668-HC-MUM-CUS </strong></a><strong>. </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><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></strong></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@tiol.in"><strong>vijaywrite@tiol.in</strong></a></font></p>
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