TIOL-DDT 285 · 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 285</font><br> 18 01 2006<br> Wednesday</b></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>No penalty and interest on Income Tax Liability due to retrospective amendment of Section 80 HHC – CBDT clarifies</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The <b>CBDT</b> has issued a very important circular yesterday that would bring a little cheer to the harried exporters. The immediate fallout of the recent Taxation Laws (Amendment) Act, 2005 which amended Section 80 HHC with retrospective effect is a demand of around Rs. 7000 Crores on the exporters. The Federation of Indian Export Organisations (FIEO) will take up the issue at its managing committee meeting slated for January 25 in Chennai and along with other export promotion councils and organizations are likely to petition the Union finance ministry to bring in yet another amendment in the Budget session of Parliament to take out profits on transfer of DEPB from purview of tax laws. At this juncture the Board circular comes as a small relief. The circular clarifies that<br> <br> ++ No penalty shall be levied or interest shall be charged in respect of any fresh demand raised consequent to the enactment of Taxation Laws (Amendment) Act, 2005, on account of variation in the returned/assessed income attributable to profits on sale of DEPB credits or DFRC.<br> <br> ++ Where the assessments have been completed and interest has been charged, the Chief Commissioner of Income-tax shall waive the interest relating to claim of profit<br> <br> ++ Where the assessments have been completed and penalty has been imposed, the Chief Commissioner of Income-tax shall waive the penalty relating to claim of profit<br> <br> ++ Where penalty proceedings are initiated but no penalty imposed yet, penalty proceedings will be dropped.<br> <br> ++ The demand will be recovered over a period of five years.<br> <br> Board wants the Assessing officers to maintain these details in a separate register and hand them over to their successors on their transfer.<br> <br> <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=36&filename=notification/cbdt/2006/it06cir02.htm">CIRCULAR NO. 02/2006, Dated : January 17, 2005</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Customs Stations notified</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has notified Village Palaspe, Panvel, Dist. Raigad, Maharashtra and Inland Container Depot in Export Promotion Industrial Park, Durgapur for Unloading of imported goods and loading of export goods. Should we still remind about Vizag?<br> <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2006/cnt06_003.htm">Notification. NO. 03/2006-CUSTOMS (N.T.)</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>DGFT amends HOP</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has made certain amendments/deletions/corrections and additions in the Handbook of Procedures, Vol.2, 2004-2009, in the statement of Standard Input Output Norms.<br> <br> <strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2005/dgft05pn082.htm">PUBLIC NOTICE NO. 82 (RE:2005)/2004-2009, Dated: January 16, 2006</a></strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Two rates of Service Tax?</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The temptation to kill the goose that lays the golden eggs will most likely be avoided by the Government. The already high 10% rate for Service Tax cannot really be hiked, but the government may go in for a two rate structure. Perhaps a simple 2% Service Tax with no complicated cenvat credit will bring in more revenue and peace all around.</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Supreme Court halts toxic ship – ball in Customs court</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The Supreme Court has barred the entry of French warship 'Le Clemenceau' carrying toxic wastes into India at least until the Customs department makes its stand clear. The court mentioned about some earlier cases where the silence of the Customs department had escalated the controversy. The Court affirmed that even if the high-level committee on hazardous waste management clears dismantling of 'Clemenceau', the Supreme Court will not permit it without examining the stand of the Customs Department. The owners of the ship gave an undertaking that they would not bring the ship within 220 nautical miles of India till further orders.<br> <br> While the toxic ship is waiting to sail through the Supreme Court, it awaits a grand welcome at Alang in Gujarat – Asia’s largest ship breaking yard as this ship is their last opportunity for survival. The Alang ship breaking industry is on the verge of extinction if they miss out this chance. Alang has over 185 ship breaking plots over a coastal stretch of 10 km. Less than 15 plots are functional today as the industry fails to get orders. This one ship is enough to revive the industry.<br> <br> What is toxic to some is perhaps tonic to some others and may be tax to some.<br> <br> <b><font color="#663399">"Laws are spider webs through which the big flies pass and the little ones get caught."</font></b></font></p> <p align="right"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <i>Honore de Balzac</i></font></p> <p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF6666"><b>Until tomorrow with more DDT<br> <br> Have a nice day.<br> <br> Mail your comments to</b></font> <a href="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p> </body> </html>