TIOL-DDT 2852 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=26988"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2016.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="270" height="231" hspace="5" border="0" align="right" ></a><strong><font color="#663399" size="3">TIOL-DDT 2852</font><br>
24 05 2016<br>
Tuesday</strong></font></p>
<p align="center"><font face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600" size="3">Single Registration for Importer & Trader - CBEC Invites Suggestions on Draft </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BY</strong> Notification No. 8/2014-CENT and 9/2014-CENT both dated 28.2.2014, the CE Rules and CENVAT Credit Rules were amended to stipulate that an importer who issues an invoice on which CENVAT Credit can be taken, is required to get registered and file a quarterly return. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Representations have been received from the trade stating that in the case of assessees who are both "<em>importers</em>" and "<em>dealers</em>" the need for taking separate registration and filing separate returns has increased procedural compliance and transaction cost. For improving ease of doing business they have requested for a single registration and return for such assessees . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjA3Nzc=" target="_blank">DDT 2385 30 06 2014</a></strong>, we covered this issue as: </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now if an importer deals with indigenous goods also, should he get registered as a dealer and separately as an importer? Should he get a new registration as an importer even if he is already registered as a dealer? The Mumbai Chief Commissioner of Central Excise says, YES . </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Many assessees feel that these are more of directions than clarifications and complicate the issue further. They feel that this could not have been the intention of the Board and the Government. Why should you tie up the assessee with more and more procedural wrangles? They expect the Board to clarify. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board is trying to solve the problem after nearly two years. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has examined the issue and is considering optional facility to an assessee who conducts business both as an importer and a first stage dealer, to take only one registration. Secondly, such assessees who conduct business both as a first stage dealer and an importer shall also have the option of filing a single quarterly return giving details of transactions as a first stage dealer and an importer one after the other in the same table of the return. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has released a draft Notification and Circular proposed to be issued. Board wants feedback from the departmental officers and the Members of the Trade by 6th June, 2016 on the email id: <a href="mailto:shankar.sarma@nic.in" target="_blank"><strong>shankar.sarma@nic.in</strong> </a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjYwNDE=" target="_blank"><strong>Are two registrations required under CE Law for a dealer?</strong> </a></font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/FSD-regn-return.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F.No 201/042016-CX.6., Dated: May 23, 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>Issue/Modification in Importer Exporter Code - DGFT Clarifies </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> Para 2.14(b) of HBP (2015-20), "<em>An application for modification may be made for change in details like name, address, constitution, ownership in Proprietorship firms, change in nature of the firm e.g. from proprietorship to partnership etc. Change in constitution however, does not include change in Directors of Public Limited Company</em>." </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It seems there is some problem in modification of IEC in cases where there is a change in the PAN. It is highlighted that with the change in the constitution of the firm/change in the nature of the firm such as from Partnership to Limited Liability Partnership etc., there is a change in the PAN number and the new PAN number needs to be incorporated in the existing IEC, replacing the PAN already registered against the current IEC. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since each IEC is tagged to a particular PAN in the system, modification in PAN was not being entertained by the Regional Authorities - the prime consideration being how to transfer and seamlessly carry forward the liabilities of one firm, which merges into another or changes its nature and name. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To resolve the issue, matter was taken up with the Ministry of Corporate Affairs and they are of the view that: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. conversion of a firm or an LLP into a company or </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. merger of a company into another company or </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. merger of two or more companies to form a new company or </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. demerger of a company to form a new company </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">does not extinguish the liability if any, of the Transferor Entity/Company and the liability of such Transferor Entity/Company would automatically vest in the Transferee Entity/Company, by operation of Law. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, DGFT directs: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. the RAs shall henceforth consider applications seeking modification in IEC, involving change in PAN, by ensuring that liabilities of the previous applicant/applicant firm are transferred to the new applicant/applicant firm whose PAN will be reflecting in the modified IEC. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. RAs must also share the modified IEC, with the changed PAN incorporated in it, with all <strong>concerned</strong> authorities. (<font color="#FF0000">who is concerned?</font>) </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Power of Attorney Holder can sign:</strong> It is noticed that RAs have been rejecting applications digitally signed by Power of Attorney (instead of a Director) on the ground that power of attorney is not explicitly mentioned in the application format issued vide PN No. 58 dated 01.02.2016. DGFT clarifies that applications digitally signed by power of attorney holders/authorised signatories are to be entertained. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk5MjQ=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Trade Notice No. 6/2016., Dated: May 23, 2016 </font></strong></a></p>
<p align="center"><font color="#006600" face="Georgia, Times New Roman, Times, serif"><strong><em><font size="3"><a name="f2"></a>Income Tax -TDS - Relaxation for Furnishing of UID </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> provisions of section 197A of the Income-tax Act, 1961<em> inter alia</em> provide that tax shall not be deducted, if the recipient of certain payment on which tax is deductible furnishes to the payer a self-declaration in Form No.15G/15H in accordance with provisions of the said section. The manner of filing such declarations and the particulars have been laid down in Rule 29C of the Income-tax Rules, 1962. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The amended Rule 29C which came into effect from 1st October, 2015 in addition to paper filing, also provides for online filing of self-declaration for non-deduction of tax under section 197A of the Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sub-rule (3) of Rule 29C provides for allotment of Unique identification number to each declaration received in Form 15G/15H by the deductor. Further, sub-rule (5) of Rule 29C provides that the payer shall also furnish unique identification number along with the details of the transactions covered under Form 15G/15H in quarterly TDS statements in accordance with the provisions of clause (vii) of sub-rule (4) of Rule 31A irrespective of the fact that no tax has been deducted in the said quarter. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Representations have been received that due to operational constraints, the Form 15G/15H and the details thereof could not be included in the quarterly statement for the quarter ending 31.12.2015 and 31.3.2016 respectively. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Taking into account the concerns of the stakeholders, the Central Board of Direct Taxes, has relaxed the condition of furnishing of Unique identification number allotted by the deductor for the quarter ending 31.12.2015 and 31.3.2016 in the quarterly statement of deduction of tax in accordance with sub-rule (5) of Rule 29C. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk5MjM=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Circular No. 18/2016., Dated: May 23, 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="f3"></a>Income Tax - email based communication for Paperless Assessment Proceedings-Hyderabad and Kolkata Added </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>PAPERLESS</strong> assessment/e-assessment has been conceived to usher in a paperless environment while carrying out regular assessments of cases selected by the Department. In this regard, to start with, the CBDT had, during the last Financial Year, decided to implement the e-mail based assessments on a pilot basis in non-corporate charges of 5 cities i.e. Ahmedabad, Bangalore, Chennai, Delhi and Mumbai where the e-mail based assessment proceedings were initiated and disposal of several cases has been reported. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has now been decided to cover two more cities, Hyderabad and Kolkata, for implementing e-mail based communication scheme for paperless assessment proceedings. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is now open for all the taxpayers assessed in those seven cities, whose cases have been selected under scrutiny, to opt for being scrutinized under the e-mail based paperless assessment proceedings by giving their consent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, the cases, which require submission of voluminous documents and it is not practicable to submit the scanned copies through e-mail, the documents could be received by the assessing officer in physical form provided reasons are recorded for the same. It is also necessary that proper Note-sheet is maintained for recording the entire proceedings. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Directorate of Systems is in the process of developing a dedicated module for comprehensive e-scrutiny. Till the same gets functional, the Assessing Officers may be advised to follow Notification No.2/2016 dated 3rd Feb 2016 issued by Pr. DGIT(Systems) prescribing the procedure, formats and standards for ensuring secured transmission of electronic communication. Further, the instructions issued by the Member (IT) vide his D.O dated 9th May 2016 may also be strictly complied with. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order to make the Scheme a success, Board requests the Principal Chief Commissioners to give due publicity in media and create awareness and a sense of confidence so that the taxpayers of these seven cities, whose cases have been selected under scrutiny, give their consent for being covered under the e-mail based paperless assessment proceedings. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk5MjY=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Letter in F.No.225/267/2015/ITA.II., Dated: May 23, 2016 </font></strong></a></p>
<p align="center"><font color="#006600" face="Georgia, Times New Roman, Times, serif"><strong><em><font size="3"><a name="f4"></a>Customs - Timely cancellation of bond executed with Customs in Advance Authorization Cases - reg</font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Commissioner of Customs (NS-IV), JN Custom House, Mumbai issued a Public Notice yesterday highlighting that in the matter of time taken in cancellation of bonds executed by exporters in respect of advance authorizations, the following guidelines have been issued. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) Regarding verifications of address shown on authorisation/availability of inputs imported duty free, the percentage of random checks have been reduced from “<em>at least 5%</em>” cases to “<em>5% cases</em>”. These checks are to be initiated periodically every month and the checks/ verification will be completed during the validity of authorization. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) Non-receipt of confirmation from Central Excise will not cause delay in processing a subsequent application for cancellation of bond. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) The exporters are requested to identify those cases, where export obligation period is getting over and keep their documents ready for processing. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d) The exporters are requested to provide their email to Customs so that they may be informed in the event of their authorization being selected for checks/ verification. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e) to bring transparency into the process of bond cancellation for Advance Authorisation, a verifiable record will be kept in respect of the applications received for bond cancellation with documents, and every 3rd day or earlier if required by quantum of EODC inflow, selection for checks will be made from the relevant applications and intimated to the exporters. Exporters are requested to share their e-mail addresses on the application. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC had actually issued these instructions on 02.12.2015 and the Board wanted the Chief Commissioners to give publicity to these guidelines through issuing public notice. Board had requested the Chief Commissioners to monitor the functioning on a monthly basis and ensure strict implementation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It took just six months for the Public Notice to be issued. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk5MjU=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Commissioner of Customs (NS-IV), JN Customs Public Notice No. 74/2016., Dated: May 23, 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="f5"></a>Income Tax -Manner of determination of fair market value-CBDT Invites suggestions </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>UNDER</strong> section 9 of the Income-tax Act, 1961, income arising from indirect transfer of assets situated in India is deemed to accrue or arise in India. The provisions of section 9(1)(i) of the Act provides that if any share of or interest in, a foreign company or entity derives its value substantially from the assets located in India, then such share or interest is deemed to be situated in India. Thereby, any income arising from transfer of such share or interest is deemed to accrue or arise in India. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this regard, draft rules and forms to be incorporated in the Income-tax Rules, 1962 have been formulated for comments from stakeholders and general public. The comments and suggestion on the draft rules may be sent by 29th May, 2016 electronically at the email address, <a href="mailto:ustpl1@nic.in" target="_blank"><strong>ustpl1@nic.in</strong></a>. </font></p>
<p><font face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/draft-rules.pdf" target="_blank"><font size="2"><strong>F No 142/26/2015-TPL , Dated : May 23, 2016 </strong></font></a></font></p>
<p align="justify"> </p>
<p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><a name="f6"></a>CBSE Topper - IRS parents</em></strong> </font></p>
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<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/CBSE_Topper.png" alt="" width="250" height="150" hspace="5" border="0" align="left"></font></td>
<td><p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THIS </strong>girl is relatively poor in Mathematics, English and Computer Science as she got only 99% marks in each of these subjects compared to the 100% she got in Physics and Chemistry. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">That is Sukriti Gupta, this year's topper in CBSE XII class examination. She got a mind boggling score of 497 out of 500 marks! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sukriti's parents Rakesh Gupta and Renuka Jain Gupta are both IRS (Income Tax) officers. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT should honour Sukriti.</font></p></td>
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<p align="justify"><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>
<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>
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