TIOL-DDT 272 · the untouched capture
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<div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#996699" size="3">TIOL-DDT
272</font><br>
29 12 2005<br>
Thursday</strong></font></div>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Come
to LTUs - FM invites 582 top corporates</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Launching
the road show for LTUs, Finance Minister P Chidambaram said the revenue department
would consider expanding the eligibility criteria for large tax-payer units
(LTUs), instead of confining it to entities paying over Rs 5 crore excise and
assessed for income tax in Delhi, Mumbai, Kolkata, Chennai and Bangalore. He
invited 582 top corporates to join the scheme. The LTUs would help avoid litigation
as senior officers with assessment expertise would be deputed at the centres
which would offer all facilities for payment of corporation tax, excise, customs
and service tax. “Less dispute means greater compliance. The assessment
must be of high quality so that disputes are less. What is the use of assessing
if the demand goes into a dispute?” he said. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
FM assured that LTUs will be modern offices and assessment and payment will
be through electronic media. Senior officials will assist and the cost of compliance
will also come down. Does he know what happened to the “help centres”
started with great fan fare? Nobody knows where they are.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally
the LTUs are functioning in Pakistan for the last four years. The major functions
of a Pakistani LTU are to :-</font></p>
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> assist
taxpayers through technical advice and taxpayer services;</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> conduct
professionally competent audit ;</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> assessment
of cases;</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> collection
of revenue ;</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> sanctioning
and monitoring of refunds/arrears;</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> defence
of cases under litigation , appellate tribunal, superior courts and other
forums .</font></li>
</ul>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently
a special taxation bench was constituted in the Pakistan Supreme Court to deal
with cases relating to the Central Board of Revenue. In Pakistan, officers working
in the LTUs and they have another concept called MTUs get a higher salary than
their colleagues in the general sections. Most of the employees outside the
LTU/MTU sector are surplus and are being trained for other jobs. What is going
to happen in India? One thing is sure; all those promotions were a waste!</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DEPB
extended, and so is the confusion</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption
under the DEPB scheme was to expire on 31st December 2005. It is now extended
till 31st March 2006, but remember the original problem? This concession actually
expired on 30th September 2005 and was not extended. Instead the Government
issued a new notification on 4th October 2005. So there was no DEPB for three
days from 1st October to 3rd October, 2005. To add to the problem, Customs refused
to accede to the concession to scrips mentioning the old notification Number.
Please see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=2722"><strong>TIOL-DDT
217 -06 10 2005</strong></a>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2005/ctariff05_104.htm"><strong>Notification
No. 104/2005-Cus., dated 26-12-2005- see page</strong></a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Exemption
to imports under ATVP and IGMDP extended: </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under
Notification No. 39/96-Customs, dated the 23rd July, 1996, Machinery, equipment,
instruments, fittings, devices, scientific apparatus, components, spares, tools,
accessories, computer hardware, computer software, castings, forgings, pipings,
tubings, raw materials and consumables required for the purpose of <strong>Advance
Technology Vessels Programme</strong> (ATVP) of the Ministry of Defence were
exempted till 31st December 2005. Now this is exempted till 1st January 2011</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similarly
the same notification exempted Machinery, equipment, instruments, components,
jigs, fixtures, dies, tools, raw materials, accessories and spares required
for the purposes of <strong>Integrated Guided Missile Development Programme
(IGMDP)</strong> of the Ministry of Defence till 31st December 2005. Now this
is exempted till 1st January 2008.</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=23&filename=notification/custom/2005/ctariff05_105.htm">Notification
No. 105/2005-Cus., dated 28-12-2005</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Exchange
rates announced for imported goods and export goods</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification
Nos. 110 and 111/2005-Cus. (N.T.), dated 27-12-2005 fix the exchange rates for
imports and exports respectively with effect from 1st January 2006. Notifications
104 and 105/2005-Cus. (N.T.), dated 25-11-2005 are superseded.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Adjudication
— Appointment of specified officers </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Board has appointed certain officers to adjudicate and investigate certain specified
DRI cases. </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=24&filename=notification/custom/2005/cnt05_112.htm">Notification
No. 112</a></strong> & <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2005/cnt05_113.htm">113/2005-Cus.
(N.T.), dated 28-12-2005</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Export
of sugar – DGFT allocates quota</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
DGFT has allocated a total quantity of 19,300 MTs of Raw Sugar out of free sale
portion of 2005-2006 season’s production for export to USA and EU for
the fiscal year 2005 (October 1, 2005 to September 30, 2006) as follows:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i)
9,050 MTs as preferential Raw Cane Sugar Tariff Rate Quota to USA ; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii)
<font color="#FF0000"><strong>10,0250</strong></font> MTs as SPS Raw Sugar to
EU .</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
has also been decided to allocate a quantity of 10,000 MTs of White Sugar for
export against preferential quota for EU. However, the export of this White
Sugar will be allowed only in case of export obligations of sugar factories
in respect of import of raw sugar under Advance Licences. Indian Sugar Exim
Corporation Ltd, New Delhi is the designated agency for export of sugar to USA
and EU under preferential quota.</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=47&filename=notification/dgft/2005/dgft05pn076.htm">DGFT
PN 76 (RE-2005)/2004-2009, Dated: December 26, 2005</a></strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
above PN was amended by <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2005/dgft05pn078.htm">DGFT
PN 78 (RE-2005)/2004-2009, Dated: December 27, 2005</a></strong> to change the
figure 10.0250 to 10.250. At least they detect and rectify the mistakes unlike
their better informed colleagues in the Finance Ministry.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT
amends DEP rates </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT
has amended DEPB rates to fix 9% rate with a value cap of Rs.95/- for Forged
Crank Shaft made of Alloy Steel and 9% rate with a value cap of Rs.73/- for Front
Axle Beam Forging made of Alloy Steel</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2005/dgft05pn077.htm"><strong>DGFT
PN 77 (RE-2005)/2004-2009, Dated: December 26, 2005</strong></a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
lawyer starts by giving Rs. 500 worth of law for Rs.5 and ends giving Rs.5 worth
for Rs. 5000.</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Until
tomorrow with more DDT</strong></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"><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail
your comments to</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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