TIOL-DDT 2828 · 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> <p><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 size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 2828</font> <br> 19 04 2016 <br> Tuesday</strong> </font></p> <p align="center"><font size="3"><strong><em><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif">Income Tax - Draft Rules for Grant of Foreign Tax Credit </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>SECTION</strong> 295 of the Income-tax Act provides that the Central Board of Direct Taxes (CBDT) may prescribe rules specifying the procedure for the granting of relief or deduction, as the case may be, of any income-tax paid in any country or specified territory outside India, under section 90 or section 90A or section 91, against the income-tax payable under the Act. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Committee was set up by CBDT to suggest the methodology for grant of Foreign Tax Credit (FTC) after examining the various issues related to it. Taking into account, the report of the Committee and the provisions of the Act, CBDT has framed draft rules and published them for public comments and suggestions.</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• An assessee being a resident shall be allowed a credit for the amount of any foreign tax paid by him in a country or specified territory outside India, by way of deduction or otherwise, in the year in which the income corresponding to such tax has been offered to tax or assessed to tax in India, in the manner and to the extent as specified in the rules. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• The credit for foreign tax shall be available against the amount of tax, surcharge and cess payable under the Act but not in respect of any sum payable by way of interest, fee or penalty. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">• No credit shall be available in respect of any amount of foreign tax which is disputed in any manner by the assessee. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Comments and suggestions may be submitted by 2nd May, 2016 at the email address <a href="mailto:dirtpl4@nic.in" target="_blank"><strong>dirtpl4@nic.in</strong></a>. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/draft-rules-18042016.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT F.No. 142/24/2015-TPL., Dated April 18, 2016</font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f1"></a>BCI yet to Comply with RTI - CIC warns </font></em></strong></font></p> <p align="justify"><em><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>TAX</strong> Department's Websites Don't Contain Information as required under RTI Act </font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In a recent order, the Central Information Commission (CIC) observed, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Bar Council of India has not satisfactorily complied with the section 4(1)(b) requirements. It is a major breach of RTI by prestigious organization called BCI. They have already exhausted 10 years of time in fulfilling this obligation. Commission directs the public authority to furnish annual report in compliance with 4(1)(b) and directs the PIO to show cause why maximum penalty should not be imposed for this breach of RTI. Commission directs the Chairman, BCI to file an affidavit explaining when they would be complying with 4(1)(b) on their official website. All the responses should reach the commission by May 9, 2016. If not, Commission will be compelled to initiate appropriate action against the Chairman, BCI for noncompliance of section 4(1)(b), which was sought under section 3 by the appellant in this case as that amounts to denial of information attracting the penalties. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Section 4(1)(b), every public authority shall publish within one hundred and twenty days from the enactment of the Act: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. the particulars of its organisation, functions and duties; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. the powers and duties of its officers and employees; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. the procedure followed in the decision making process, including channels of supervision and accountability; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. the norms set by it for the discharge of its functions; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. the rules, regulations, instructions, manuals and records, held by it or under its control or used by its employees for discharging its functions; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. a statement of the categories of documents that are held by it or under its control; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. the particulars of any arrangement that exists for consultation with, or representation by, the members of the public in relation to the formulation of its policy or implementation thereof; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. a statement of the boards, councils, committees and other bodies consisting of two or more persons constituted as its part or for the purpose of its advice, and as to whether meetings of those boards, councils, committees and other bodies are open to the public, or the minutes of such meetings are accessible for public; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. a directory of its officers and employees; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. the monthly remuneration received by each of its officers and employees, including the system of compensation as provided in its regulations; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11. the budget allocated to each of its agency, indicating the particulars of all plans, proposed expenditures and reports on disbursements made; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12. the manner of execution of subsidy programmes, including the amounts allocated and the details of beneficiaries of such programmes; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13. particulars of recipients of concessions, permits or authorisations granted by it; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14. details in respect of the information, available to or held by it, reduced in an electronic form; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15. the particulars of facilities available to citizens for obtaining information, including the working hours of a library or reading room, if maintained for public use; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16. the names, designations and other particulars of the Public Information Officers; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">17. such other information as may be prescribed and thereafter update these publications every year</font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On seeing the websites of CBEC, CBDT and their Commissionerates, it can be found that the Revenue Departments are clear violators of Section 4(1)(b) of the RTI Act, as most of the information as required is not available in their websites. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will they furnish the information or wait for the CIC to issue them notices? And can't the CIC take suo moto notice of the non-compliance of Section 4(1)(b) by the Revenue Departments and direct them to furnish this information on the websites? </font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f2"></a>RAC Meetings - Lost Relevance? </font></em></strong></font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FROM</strong> <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MTM0NTE=" target="_blank"><strong>DDT 1716 19 10 2011</strong></a>, </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em><strong>THE</strong> Central Excise Department had long ago devised an effective system for redressing the grievances of the assessees and for assisting them with compliance of the laws. In each Commissionerate, a Regional Advisory Committee (RAC) was constituted, with the Collector/Commissioner as the Chairman and Members selected from various Industry groups. The RAC came into existence in 1959. Selection of members was by an elaborate process to be approved by the Board and a Member appointed to the RAC was made to feel as if he got nominated to the Rajya Sabha. </em></font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Over the years, like all other schemes of the department, started with noble intentions, RAC degenerated into a farce. Once upon a time captains of industry used to proudly attend the RAC meetings and these meetings were useful in solving many problems. In course of time, officers developed the habit of not taking decisions and learned to err on the side of revenue. They started giving all kinds of evasive and confusing replies in the meetings. In some cases even innocent queries by the assessees were used to book cases against them. </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Slowly the trade realised the futility of attending RAC meetings and started avoiding them or sending junior employees to RAC meetings. Now a days the meetings are attended by 3 assessees and thirty departmental officers and if you see the minutes of RAC meetings, you will find they all end with an expression of thanks to the Chairman (Commissioner). </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently the Board decided that to facilitate greater participation of the representatives of the trade and industry and also to raise the quality of deliberations in the forum, the RAC should be constituted at the zonal level and the Chief Commissioner should preside over the RAC meetings. [<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2011/excircular953.htm" target="_blank"><strong>Circular No. 953/14/2011, Dated: September 12, 2011</strong></a>] </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will this really facilitate greater participation and raise the quality of deliberations ? </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the field works with constant fear of Audit and Vigilance with absolutely no fear or respect for the Board and the Judiciary, will it make any difference as to who presides over the RAC meetings? </font></em></p> <p align="justify"><strong><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A DDT report on two RAC meetings: </font></em></strong></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Chief Commissioner decided to convene a combined meeting of the RACs of all his Commissionerates and wanted participation by top managers from the trade. The Commissioners persuaded the senior managers of companies to participate and also told them not to raise any inconvenient questions. The Hon'ble Chief Commissioner walked into the meeting - 45 minutes late and haughtily took his exalted seat, without even a perfunctory apology for keeping the captains of industry waiting. He gave a long speech about his activities and the need for more revenue. Then he asked the members if they had any questions. A few members spoke and said with their dynamic Commissioner at the helm of affairs, they had no problems. The meeting came to an end with a vote of thanks to the Chair from a leading member of the trade. </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Another Chief Commissioner convened a similar meeting. He came on time. There was a presiding officer's elevated chair for him with the officers on one side and the assesses on the other. He refused to occupy the special chair and sat along with the assesses on the side opposite to the officers and declared, “I am with them.” He almost received a standing ovation. He grilled the Commissioners on the points raised by the trade, but the Commissioners stood their ground and everybody agreed that the culprits were the Statute and the Board, while the Chief Commissioner and Commissioners were exceptionally good people. </font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently there was a meeting of the RAC of Bhopal Zone. The meeting was attended by two assessees and six senior officers and there were no points to discuss! The Minutes of the meeting states, </font></p> <blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The chairman welcomed <strong>all</strong> the members. The Chairman gave stress on better Coordination and inter-action between the department and the assessee for getting better outcome. He expressed concern about the inadequate presence of RAC members in the meeting and particularly as no intimation of non-attendance was forwarded by them. </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">No agenda points were sponsored by any of the member agencies. </font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As usual, the meeting ended with <strong>the</strong> vote of thanks to the Chair. </font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f3"></a>Upload RAC Minutes on Website - CBEC tells Chief Commissioners </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a recent letter to all the Chief Commissioners, the CBEC observed, </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>It has been noticed that certain zones are uploading the Minutes of their RACs etc on their website. However, all zones are not having their websites operated or functional. As the decisions taken during the meetings of PTFCs, RACs and Open House Meeting delve upon issues concerning the interest of trade and organisation, it is desired that these need to be shared by all officers across the Board and hence, <strong>all Zones must upload the Minutes of these meetings on their respective websites</strong>. The Minutes will also serve as induction material for new officers. </em></font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All Zones are again requested to upload the Minutes of the PTFCs, RACs and Open House Meetings on their respective websites and in case, their website is still not operational or functional, necessary action may immediately be taken to make their website operational or functional, and provide the link of their website on the CBEC website. </font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC letter seems to have gone unnoticed in the field. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We, TIOL, will be glad to publish the RAC minutes, if the Chief Commissioners are prepared to share them with the public. </font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f4"></a>Indian Economy is one of bright spots of global economy - IMF Chief </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>YESTERDAY</strong>, the IMF Chief Christine Lagarde answered several questions on Twitter. One of the questions was, <em>What's your opinion about the Indian economy?</em> </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Her answer:</strong> The Indian economy is one of the bright spots of the global economy, at 7.5 per cent it's growing really nicely. It has the benefit of the low oil prices, and the benefit of a good policy mix that combines fiscal, monetary and structural reforms. Of course, more needs to be done, and in particular on the infrastructure reforms we hope that it will achieve even more success. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The IMF Chief commented on several issues. Some of them: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Panama Papers have disclosed a lot of very sophisticated tax avoidance practices on a very broad scale. This needs to change. The IMF will participate and co-operate with other international institutions to offer new mechanisms that will be out of the box. They will be based on transparency, simplicity and co-operation. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The global economy continues to struggle with the “legacy of crisis” created by the 2008 financial recession.We are on alert but not on alarm. The global economy is recovering…but what we see is growth that is too slow and too fragile. It's too slow and too fragile to respond to the demand of 200 million people who are looking for jobs. It's too slow and too fragile to increase the standard of living of people who would like to see it grow, and it's too fragile and too slow to continue to eliminate poverty around the world. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The IMF is encouraged to see China opening to the rest of the world, even as it shifts from an export economy to a local market and from an industry-driven economy to service-driven economy. This is an economy going through a massive transition.We see all of that as transformational, difficult to manage, but manageable. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Developing countries are the main victims of these legal financial techniques that deprive them of vital funds.They are the ones, relied the most on corporate income tax and they are the ones who lose out to the great creativity and inventiveness of the multinationals. </font></p> <p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">Not the one eyed king</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">: Meanwhile RBI Governor Raghuram Rajan's comment, "<em>I think we have still to get to a place where we feel satisfied. We have this saying -- 'In the land of the blind, the one-eyed man is king'. We are a little bit that way</em>" drew flak from at least two union ministers. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Jayant Sinha, minister of state for finance, said yesterday that he does not agree with Reserve Bank Governor's comment. He said, "<em>We are the shinning star. I don't agree with what the governor said</em>". </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Another Minister, Nirmala Sitharaman said, "<em>I may not be happy with his choice of words. I think whatever action is being taken by this government is showing results. FDI is improving, there are clear signs that manufacturing sector is reviving. Inflation, current account deficit is under control</em> ” <a></a></font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f5"></a>ACES Problems </font></em></strong></font></p> <p><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">WE</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> received this mail from a concerned assessee. </font></p> <blockquote> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>In A11.2, when I try to select notification No 33/2012, I select it and then it does not appear in the box. Then Sr No also does not appear.</em></font></p> <p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I have faced this problem for other exemption notifications (25/2012Sr No 21 b and 21c) also. </font></em></p> <p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Finally I have to use offline version which is time taking. </font></em></p> <p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I am using Google Chrome. I tried using Mozilla and IE. The problem still persists. </font></em></p> <p><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please help. </font></em></p> </blockquote> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will ACES help? </font></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tomorrow is a holiday - Mahavir Jayanti </font></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Thursday 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"><a href="mailto:vijaywrite@tiol.in" target="_blank"><strong>vijaywrite@tiol.in </strong></a></font></p> </body> </html>