TIOL-DDT 2871 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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 align="justify"><strong><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><font color="#663399" size="3">TIOL-DDT 2871</font><br>
20 06 2016<br>
Monday</font></strong></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600">GST- Ultimately vote in Rajya Sabha can only decide... what other options we have? - FM </font></strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> seems to be determined to bring in GST, if possible with Congress support, if necessary without it - provided the numbers add up in the Rajya Sabha. </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"I will, till the last day, continue to persuade the Congress to see reason so that they don't go back on the bill they themselves introduced. ...However, if the Congress persists with its opposition, ultimately a vote in the Rajya Sabha can only decide… what other options we have?",</font></em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> said the Finance Minister in an interview to a TV Channel. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Communist Finance Minister of Kerala who now supports GST writes: </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The GST would have been a reality had it not been for the disruption of compensation payment by UPA Union Finance Minister P.Chidambaram and thoroughly opportunistic disruption of the consultations by the BJP states in 2010-11. It was the Madhya Pradesh Finance Minister Raghavji, who led BJP's disruptive charge but it was also clear the BJP State Governments including Narendra Modi's Gujrat did not want the GST to be passed during the UPA regime. Interestingly, their main objection was abridgment of States' rights. It was a complete turn around from their election manifesto which had promised passage of GST, if voted to power. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
CPI(M) has always expressed its serious reservations against the efforts to integrate the indirect taxes in India into VAT or GST. The indirect tax reforms are a part of the globalization process with the aim of designing a tax regime which would integrate not only the regional markets but also remove all burden of the indirect taxes on internationally traded goods. Specifically, in the context of India, the introduction of VAT and GST will seriously undermine the limited taxation rights that the States are enjoying. The fiscal autonomy of the States already constrained by the FRBM Acts would be further constrained when sales taxes, luxury tax, entertainment tax, various entry taxes etc are subsumed into single national VAT/GST. ... </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<em>Therefore, no one need to have any illusion that after the VAT regime was ushered in the States still have the taxation rights enshrined in the Constitution. Therefore, there is very little further to lose with the introduction of GST. Even the formal constitutional amendment can only make de facto reality into de jure reality. On the other hand, there can be a gain with the introduction of GST. The States gain right to tax Services, a right that was wantonly surrendered to the centre in the seventies. And remember, Service Tax is currently the most buoyant of the taxes. Having accepted VAT, sooner we move to GST better for the States...</em></font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But there are many issues that have to thrashed out before we can move to a consensus...</font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If BJP is serious about passing the constitutional amendment in the Monsoon session, without which there is no hope whatsoever of introducing the GST in next fiscal, the Union Government should call an all party meeting for frank discussion of the issues remaining. It is not sufficient to have meeting of the state finance ministers or bilateral talks between BJP and Congress. An all party meeting before the monsoon session is the need of the hour. I hope Union Finance Minister Arun Jaitley will take this much needed initiative . </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Dr. Subramanian Swamy says,<em> "I don't think GST is going to be a game-changer. If it comes, it is ok. If it doesn't come also it is ok." </em></font></p>
</blockquote>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600"><a name="f1"></a>25% Customs Duty on Wheat to Continue </font></strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Sl. No. 34 of the Table to Notification No. 12/2012-Cus, dated 17.3.2012, the effective rate of Customs duty for import of wheat is 25%. But as per the proviso (ac), this exemption is not applicable on or after the 1st day of July, 2016. Now the Government has omitted this clause thereby continuing the existing effective rate of 25%. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This duty is to check cheap imports. Flour millers near the port cities in South India have been importing it because it is cheaper to buy from countries such as Australia than transporting the grain from Northern and Central States. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjAwNzA=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 38/2016-Customs., Dated June 17 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="f2"></a>Can Customs officers make endorsements on passports of passengers? </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IN a meeting of the Trade Facilitation Committee of the JN Customs last month, a point was raised, </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At present all the passengers' passports that are required for clearance under Transfer of Residence are being endorsed by Customs. These endorsements of TR and mini-TR, being done on the passport, create problems at foreign immigrations. They have requested that the practice of endorsements on passports may be discontinued & also requested to issue an appropriate Office Order to facilitate the passengers. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commissioner of Customs replied, </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Endorsement on the passport is done as per Standing Order No. 01/2010 to check and monitor the eligibility condition of Transfer of Residence while claiming the TR benefit by the passenger. If endorsement on the passport is not done, then passenger can avail TR benefit in any other ports like Mumbai Docks &ACC, Chennai, Kolkata etc. However, the members of Committee were requested to give a detailed representation/write up on the matter . </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In Standing Order No. 01/2010, it was stipulated that<em> in case benefit under Rule 5(c) or Rule 8 of the Baggage Rules 1998 is granted to a passenger, endorsement on his/her passport must be made before giving out of charge</em>. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But can the Customs Officers tinker with the passports of passengers? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In Circular No. 12/2000-Cus dated 18.02.2016, the CBEC instructed, </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Reports have, however, been received that the passports are being endorsed by the Customs authorities, apparently on the request of passengers. <strong>It is stated that this practice is totally incorrect and there is no provision in the Baggage Rules to endorse Passports, which is a valuable legal document</strong>. </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It may kindly be ensured that all genuine tourists are allowed to bring in their personal effects without endorsement on the passports and without payment of duty, subject to the terms and conditions prescribed in the Baggage rules, 1998. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In spite of the Board clarification, how did JN Customs issue a Standing Order that passports have to be endorsed? And they are still insisting on it! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Passport is not a document for the Customs to tinker with. Maybe the Customs can ask the Passport Authorities to allocate a few pages in the passport book for the Customs to make their endorsements and certificates. </font></p>
<p align="center"><strong><font size="3" face="Courier New, Courier, mono"><em><font color="#006600" face="Georgia, Times New Roman, Times, serif"><a name="f3"></a>Customs - No Uniform Procedure in Processing EDD Refunds in Mumbai </font></em></font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> a meeting of the Trade Facilitation Committee of the JN Customs held on 26.05.2016, the Customs Commissioner made a candid admission. </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is no uniform procedure being followed at all the three Zones of Mumbai Customs in respect of processing of EDD refunds and the matter has already been taken up with the Chief Commissioners for uniform practice in this regard in all the three Mumbai Zones. </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why in Mumbai zones alone? Shouldn't there be a uniform procedure for the whole of India? After all Customs Act applies to the whole of India. Why should there be different procedures in different zones? Isn't it confusing to follow different procedures with different offices? What happened to ‘ease of doing business'? </font></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f4"></a>Will Always Be Available to Serve My Country When Needed - Governor Rajan </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>NOW</strong> it's confirmed - RBI Governor Raghuram Rajan is on his way out from the RBI. He is not accepting a second tenure - not that he is getting one. In the days when there were no live telecasts and TV channels, the RBI Governor was a relatively unknown officer signing on those currency notes. Today Subramanian Swamy, News Media and the Government have made Raghuram Rajan a super hero, the kind that Bollywood stars would be jealous of. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In his message to his Staff, Raghuram Rajan says, </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I took office in September 2013 as the 23rd Governor of the Reserve Bank of India. At that time, the currency was plunging daily, inflation was high, and growth was weak. India was then deemed one of the "Fragile Five". In my opening statement as Governor, I laid out an agenda for action that I had discussed with you, including a new monetary framework that focused on bringing inflation down, raising of Foreign Currency Non-Resident (B) deposits to bolster our foreign exchange reserves, transparent licensing of new universal and niche banks by committees of unimpeachable integrity, creating new institutions such as the Bharat Bill Payment System and the Trade Receivables Exchange, expanding payments to all via mobile phones, and developing a large loan data base to better map and resolve the extent of system-wide distress. By implementing these measures, I said we would "build a bridge to the future, over the stormy waves produced by global financial markets". </font></em></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Today, I feel proud that we at the Reserve Bank have delivered on all these proposals . </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Of course Subramanian Swamy is not impressed.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rajan assures, "<em>I will, of course, always be available to serve my country when needed</em>." -<strong> if</strong> needed indeed. </font></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f5"></a>The RBI Governor </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> RBI Governor has less job security than the lowest government employee. He is appointed by the Government; no specific qualifications are prescribed. The Governor shall hold office for such term not exceeding five years as the Central Government may fix when appointing him, and shall be eligible for re-appointment. The Central Government may remove the Governor from office. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As Governor, Raghuram Rajan received a gross salary of Rs. 1,98,000/- in July 2015. Though technically the Government can appoint anybody as RBI Governor, so far they have appointed people of real eminence as these names would show: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CD Deshmukh, Benegal Rama Rau, HVR Iyengar, LK Jha, S. Jagannathan, KR Puri, IG Patel, Manmohan Singh, S. Venkitaramanan, C. Rangarajan, BimalJalan, YV Reddy, D. Subba Rao and Raghuram Rajan. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is a school of thought that Dr. Rajan should be made the Finance Minister of India, notwithstanding his green card! </font></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f6"></a>Gold Goes Missing From Delhi Customs - Again </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DURING</strong> a recent inventorisation proceedings in the office of the Commissioner of Customs, IGI Airport, New Delhi a sealed packet was opened. As per the records, the sealed packet contained: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Gold stick coated with white metal- 975 gms. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) two Gold chain of primary gold total weighing- 220 gms </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) four Bangles of primary gold total weighing - 78gms. Gross Total net weight- 1273 gms. (Packed in Amul Spray metal container wrapped with white cloth). </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">On opening the packet, it was found to contain: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) One white coated metal strip weighing 975 gms, of gold and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) one rectangular slab (cuboid) of yellow metal having dimensions- 8.6x4.9x1.2 cm, weighing 474 gms, made of non-precious metal (not gold). </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">No gold bangles or gold chains as mentioned in the DR 27676 dated 24.07.89, were found in the packet. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Delhi Customs has lodged an FIR with the IGIA Police that: </font></p>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It appears that the contents i.e. two Gold chain of primary gold total weighing- 220 gms and four Bangles of primary gold total weighing- 78 gms were replaced with one rectangular slab (cuboid) of yellow metal (non-precious metal), which was not made of gold . </font></em></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Police is requested to register a case against <em>unknown persons, who have done the said mischief and enquiry/investigation may be conducted accordingly to ascertain the facts and bringing the culprit awarding appropriate action</em>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exactly a year ago in June 2015, the Customs had filed two FIRs complaining about replacement in ten more packets.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The present complaint relates to a seizure made in 1989 and the gold was supposed to be lying in the Customs vaults for more than a quarter of a century. This has to be a neat inside job as outsiders do not have access to Customs vaults. But in these 27 years, how many officers must have been in charge of the vault and who can be held responsible now? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Thousands of kgs of gold must be lying in several Customs warehouses all over the country. Obviously gold is not safe in these warehouses. Government should think seriously on the measures to protect this huge inventory of gold, though when the fence starts eating the crop, pretty little can be done. </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more<strong> 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"><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"><strong>vijaywrite@tiol.in</strong></a></font></p>
</body>
</html>