TIOL-DDT 266 · the untouched capture
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<html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 266</font><br> 21 12 2005<br> Wednesday</b></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>CST abolition?</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per provisions of the Constitution, the Central Sales Tax (CST) is levied by the Central Government by virtue of entry 92A of the Union List, but the same is assigned to the States within which the tax is leviable, as per provisions of article 269 of the Constitution of India. Thus, the State Governments benefit from the CST. <br> <br> The Central Sales Tax, being an origin-based tax, is inconsistent with the concept of VAT and needs to be phased out. The abolition of CST will result in revenue loss to the States. At this stage, it is not feasible to estimate revenue loss to each State due to abolition of CST. However, as per provisional figures furnished by the States, total CST collection during 2004-05 was around Rs.15,100 crores. The Empowered Committee of State Finance Ministers (EC) is presently deliberating upon the issue of phasing out of the CST and is expected to make a recommendation to the Central Government. The EC is deliberating upon the various options for compensating the revenue loss on account of phasing out of CST including giving the States larger share/powers in respect of taxation of services. Once the EC finalizes its recommendations, the Central Government will take a view in this matter. <br> <br> This information was given by Shri S.S. Palanimanickam, Minister of State for Finance in reply to a question raised by Shri Datta Meghe in Rajya Sabha yesterday.</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>No foreign lawyers in India</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has ruled out foreign firms from entering the Indian courts. Britain and Australia had approached the Bar Council of India seeking permission to set up their law firms in the country. But the Bar Council of India made it clear to them that it is opposed to the entry of foreign lawyers and foreign law firms in the country. An American law firm had also approached the Bar Council of India to open its branch office here to render legal services. But its request was turned down. Are Indian lawyers afraid of competition?</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income Tax Act to be amended</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The government would amend the Income tax Act to make it simpler and prevent its ''abuse and exploitation'', Finance Minister P Chidambaram told the Rajya Sabha yesterday. The Finance Minister said that the Income Tax (Amendment) Bill will be brought before Parliament during the budget session next year. ''Too many people abuse and exploit the present Income Tax Act,'' he pointed out and said that the revised and simpler IT Act would not only improve the tax collection but also instill fear of law among the people who would realise that it was a grave offence not to file the IT return.</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>DG, Service Tax on names dropping spree</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mr. KP Singh, DGST, is fond of dropping names of big corporates who owe him Service Tax. For an unduly long period the DG has been silent which he broke in Jaipur recently. His list of evaders include Airtel, Samsung, Sterlite, DCM Sriram, Reliance, Indian Airlines, ONGC and the Rajasthan Cricket Association. He further enlightened newsmen that leading corporates as well as state government and Central PSUs have evaded paying service tax and the department is communicating with them for recovery of the same. He adds that Sterlite Corporation owed about Rs 1.3 crore, Samcor Ltd, a Samsung Corporation subsidiary, has evaded service tax to the tune of Rs 35 lakh, Kota based Mangalam Cement Ltd has been booked for tax evasion of Rs 36.66 lakh and DCM Sriram is involved in a case for a claim of Rs 20.60 lakh. Indian Airlines owed him over Rs 100 crore against service tax and Hindustan Aeronautics Limited owes Rs 60 crore. He did not want to humiliate Reliance, Airtel and other corporates as they are sources of income for the government. Do you have laws to collect taxes or do you go to the press? What is the impression that the DG is trying to convey? When ONGC, RBI, Reliance, Indian Airlines and other such big names do not pay taxes why should small time barbers and photographers pay tax? Is that the message? Or is that the big ones will any way get away but you small fry cannot?</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Duty Free Liquor Racket</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> You could find an interesting story on the above subject in the Times of India yesterday. The story can also be accessed at <a href="http://timesofindia.indiatimes.com/articleshow/msid-1338022,curpg-1.cms">http://timesofindia.indiatimes.com/articleshow/msid-1338022,curpg-1.cms</a>. Almost the same story can be found in our site in one of our editorials (<a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=2851.%20">click here to see it</a>).</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Don't blame us for plagiarism, we carried the story on 7th November 2005 and the Times carried it on 20th December 2005.<br> <br> <font color="#663399"><b>The law is not made for the righteous, for they are a law unto themselves with hearts toward God and pure motives, the law is for the disobedient and rebellious</b></font> - <b><i>Bible</i></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> </body> </html>