TIOL-DDT 2769 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <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> <p><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 2769</font><font size="3" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> 20 01 2016<br> Wednesday</font></strong></p> <p align="center"><em><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600">Presumptive income for professionals - Easwar Committee's Recommendation </font></strong></font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS </strong>is good news for the professionals. The Income Tax Simplification Committee headed by Justice Easwar in its first draft report has suggested a scheme of presumptive income for professionals.</font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The existing scheme of taxation provides for a simplified presumptive income scheme for persons engaged in business. The Committee was of the view that this scheme is quite popular amongst small traders. It was felt that there is a strong case for introducing a similar simplified presumptive income scheme for professionals. Accordingly, the Committee recommends the introduction of a presumptive income scheme whereby the income from profession will be estimated to be thirty three and one-third (33 1 /3%) of the total receipts in the previous year. The benefit of this scheme will be restricted to professionals whose total receipts do not exceed one crore rupees during the financial year. </font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Committee has even submitted a draft amendment to the Income Tax Act inserting a new Section 44AG. </font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">44AG. (1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible profession, the profits and gains of such profession chargeable to tax under the head "Profits and gains of business or profession" shall be deemed to be - (i) a sum equal to thirty three and one-third per cent of the gross receipts of the assessee in the previous year on account of such profession; or (ii) a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee. </font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"Eligible profession" means,- </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) the legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as may be prescribed; and </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) whose total gross receipts in the previous year does not exceed an amount of one crore rupees. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us hope the FM accepts this recommendation and it becomes a part of the statute in the budget. </font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600">Paperless and personal contact free DGFT </font></strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> is moving towards an IT enabled paperless and personal contact free environment. The following steps are to be immediately implemented in all DGFT offices, including DGFT Headquarters in Delhi: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Barring certain exceptions, no outside person (person not working in that Office) will be required to enter any DGFT office including DGFT Headquarters henceforth. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) All queries/submissions to be made to any DGFT office shall be made by e-mail to the officer/staff member concerned. All such e-mails will be replied to within 48 hours of their receipt and the matter resolved in the prescribed timeframe. Where further clarification, etc. is required, it will be indicated in the e-mail reply for suitable response by the applicant. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) In matters where physical submission is absolutely necessary, the applicant will dispatch the physical documentation by speed post with a copy of the e-mail/online submission reference to link the two and mention the same in the e-mail which can include scanned copies of the documents as attachments. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) Any person who wishes to submit a document or application in person notwithstanding the above for unavoidable reasons will do so by way of submission at a Receipt Desk at the Office Reception, in each DGFT office. The person submitting such application/documentation shall be given a computerized acknowledgement. This application must carry the name. address. telephone No. and e-mail address of the applicant. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) If, notwithstanding the above, it is absolutely necessary for an applicant to meet an officer in person, the meeting shall be permissible only with the Head of Office or a person not below the rank of Joint DGFT who shall listen tot the applicant and facilitate timely and proper disposal of the matter and convey a response bye-mail. It shall be strictly enforced that visitors' passes shall not be issued in any other circumstance. Visitors issued passes for meeting with Head of the Office/officers of Joint DGFT and above rank, will be strictly supervised to ensure that they meet with the designated person and immediately exit the building. Any person entertaining visitors in violation of these guidelines will be strictly dealt with. EDI related complainants may, however, be allowed by the senior to meet with technical staff to resolve their matter. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DGFT wants these instructions to be strictly complied with. He requests support from exporter/importer community to enable this arrangement to succeed and ensure that the functioning of DGFT offices is transparent and free of improprieties. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTkwNTc=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Trade Notice No. 14/2015., Dated January 19, 2016 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Customs - Exemption to Goods for medical, surgical use </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Government has substituted entry numbers 473 and 474 in the table to Notification No. <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2012/ctariff12_012.htm" target="_blank">12/2012</a></strong>-Customs, dated the 17th March, 2012 which granted a partial exemption to certain goods required for medical, surgical, dental or veterinary use. Now certain items are excluded from the scope of exemption and duty on parts has been reduced to 2.5%. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similar change is made for SAD exemption also. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please also see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=25811" target="_blank">Breaking News</a></strong>. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTkwNTU=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No. 4/2016-Customs, Dated: January 19, 2016 </strong></font></a></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTkwNTY=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 5/2016-Customs, Dated: January 19, 2016 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600">Customs - Government imposes Countervailing Duty on Castings for wind-operated electricity generators from China</font></strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>APART</strong> from dumping, some countries also resort to subsidisation of their exports to other countries. Export subsidies, under the WTO agreement, are treated as unfair trade practice and such subsidies are actionable by way of levy of anti-subsidy countervailing duty. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In India, the Customs Tariff Act in Section 9(1) stipulates, </font></p> <blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Where any country or territory pays, or bestows, directly or indirectly, any subsidy upon the manufacture or production therein or the exportation therefrom of any article including any subsidy on transportation of such article, then, upon the importation of any such article into India, whether the same is imported directly from the country of manufacture, production or otherwise, and whether it is imported in the same condition as when exported from the country of manufacture or production or has been changed in condition by manufacture, production or otherwise, the Central Government may, by notification in the Official Gazette, impose a countervailing duty not exceeding the amount of such subsidy. </font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In exercise of the above power, Government has now imposed countervailing duty on Castings for wind-operated electricity generators, whether or not machined, in raw, finished or sub-assembled form, or as a part of a sub-assembly, or as a part of an equipment/component meant for wind-operated electricity generators, originating in or exported from China. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTkwNTQ=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 1/2016-Customs (CVD)., Dated: January 19, 2016 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600">Commercial Taxes - No recovery Action during time entitled for appeal </font></strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CAN </strong>a tax officer proceed to recover the demand made in an order when the assessee still has time to appeal? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently a Commercial Taxes assessee approached the High Court with such a problem. The Deputy Commissioner of Commercial Taxes issued a recovery notice to the banker of the assessee. Apprehending that recoveries would be made prematurely without the assessee's right to file an appeal having been exhausted, the assessee approached the High Court. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the High Court, the Government Advocate submitted that no precipitative action would be taken if the assessee would file an appeal within the period prescribed for filing the appeal. </font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTEwNDE5" target="_blank">2016-TIOL-114-HC-KAR-CT </a></font></strong></p> <p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><strong><em>Tell the FM </em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WE</strong> start our Budget Run Up shortly. Please send in your suggestions. Please be brief and precise if you want the powers that be to read your views. We will try to take your suggestions to the FM and maybe you can help in making the Budget 2016. Please attach your suggestions in a ‘word' document clearly mentioning your name, address, phone number and email id. We will not publish your name if you don't want to. </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rush your mails to <a href="mailto:editor@tiol.in" target="_blank"><strong>editor@tiol.in</strong></a></font></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></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"><strong> <a href="mailto:vijaywrite@tiol.in" target="_blank">vijaywrite@tiol.in </a></strong></font></p> </body> </html>