TIOL-DDT 2977 · 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"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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="252" height="220" hspace="5" border="0" align="right" ></a></font><font color="#663399" size="3">TIOL-DDT 2977</font><br>
24 11 2016<br>
Thursday</strong></font></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Reducing/eliminating printouts in Customs Clearance - CBEC Instructions</font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ONE </strong> of the ways to make cargo clearance easier is to reduce the use of paper and to introduce electronic messaging and paperless processing. The Board seeks to ensure that the success achieved over the years in advancing automated clearance processes, EDI messaging and digital signatures translate into a paper-free environment, besides reducing transaction costs.</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. <strong> GAR7 forms/TR-6 challans would not be printed by default:</strong> At present, there are 3 copies of the GAR7 forms/TR-6 challans, being generated and printed out along with the assessed copies of a Bill of Entry. 95% of the importers pay only through e-Payment, where the challan information and payment confirmation are received electronically. Further, ICEGATE, on its e-Payment Gateway, provides a list of all unpaid Challans, for viewing & printing and can support Payment transactions. Board has decided that printout of GAR7 forms/ TR-6 challans is not required. Therefore, GAR7 forms/TR-6 challans would not be printed by default. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. <strong>TP Copy:</strong> At present, in ICES, there is a module for processing transshipment cargo from a sea port to ICD/CFS or to another seaport. Such transshipment can be by rail, road or sea. The transshipment permit information is sent electronically to the carrier, the transporter undertaking the transshipment, the custodian of the gateway port, and the ICES system at the destination ICD or Port. Transshipment Permit can also be printed by the carrier in his offices. Where the ICDs/CFSs and the gateway port are not interconnected, manual copy or printing of TP copy may continue. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. <strong>Printing of the Exchange Control copy and Export Promotion copy of the Shipping Bill does not serve any useful purpose.:</strong> After the Appraiser grants LEO (Let Export Order) in the system, printout of the Shipping Bill is generated by the system in triplicate i.e. (i) Customs copy (ii) Exporter's copy and (iii) Exchange Control Copy. The fourth copy namely the Export Promotion Copy is generated after submission of EGM. Further, with regard to Shipping Bill: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) detailed copy of the Shipping Bill is not required by the Authorised Dealer. It is enough if a summary copy is printed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) CBEC provides copies of digitally signed Shipping Bills to DGFT. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) The data of Shipping Bill is integrated with EDPMS (Export Data Processing and Monitoring System) of RBI. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. <strong>Printing of Bill of Entry (Exchange Control Copy) discontinued:</strong> IDPMS (Import Data Processing and Monitoring System) has been operationalised on 10.10.16. Under this system, physical transfer (Bill of Entry) of data from Customs/SEZs will be collated with Import payments data from banks. Accordingly, transactions where the amount has been remitted abroad but import for matching amount has not been evidenced, can be easily identified and monitored. The outstanding entries are available in single database of IDPMS and can be extracted for required monitoring by RBI, banks and enforcement agencies. Accordingly, RBI decided that BEF half-yearly statement from banks to RBI for monitoring of submission of BoE for more than USD 100000/- will be discontinued from half year starting January 2017. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In view of the above systemic integration, RBI has decided to do away with the requirement for the Banks to obtain a physical copy of Bill of Entry from the importer as an evidence of import because data can be transferred in secured manner from the system of Customs department to IDPMS. It has been, therefore, decided to discontinue the printing of Exchange control copy of BoE unless there is a requirement of printing like in the case of manual BoEs. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Though Board has decided to do away with the routine printing of the above documents, there could be cases where printing is necessitated for variety of reasons like manual BoEs, insistence of importer, exporter etc. Board, therefore, desires that in such cases printouts may be provided on demand. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjA4MDA=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No. 55/2016-Customs; Dated: November 23, 2016</font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600"><a name="f1"></a>Safeguard Duty on Hot Rolled Flat Sheets and Plates </font></strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT </STRONG>has imposed safeguard duty on Hot Rolled flat sheets and plates(excluding hot rolled flat products in coil form) of alloy or non-alloy steel having nominal thickness less than or equal to 150mm and nominal width of greater than or equal to 600mmat the following rates: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) ten per cent ad valorem minus anti-dumping duty payable, if any, when imported during the period from 23rd November, 2016 to 22nd November, 2017 (both days inclusive) at an import price below US Dollar 504 per MT on CIF basis; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) eight per cent ad valorem minus anti-dumping duty payable, if any, when imported during the period from 23rd November, 2017 to 22nd November, 2018 (both days inclusive) at an import price below US Dollar 504 per MT on CIF basis; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) six per cent ad valorem minus anti-dumping duty payable, if any, when imported during the period from 23rd November, 2018 to 22nd May, 2019 (both days inclusive) at an import price below US Dollar 504 per MT on CIF basis. </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjA3OTk=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 3/2016-Customs(SG)., Dated: November 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="f2"></a>Income Tax - Deduction - CAG Raps ITD </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong> CAG in its Report No. 28 of 2016 on 'deduction to the assessees engaged in infrastructure development', has found several lapses in the deductions allowed by the Income Tax Department (ITD). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CAG found that the ITD irregularly allowed deduction to assessees in:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) 33 cases across 13 states in respect of infrastructure developed by joint venture formed by collaboration with foreign companies, undertakings owned by Association of persons (AOPs), assessees who did not enter into agreement with the Government, non-compliant Industrial park and excluded works contractors. This resulted in underassessment of income involving tax effect of Rs.205.84 crore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) 16 cases in eight states where the business of the assessees such as sale of plots, projects not covered under infrastructural facilities, conversion charges, development/maintenance of park etc, were not eligible for the deduction. This resulted in underassessment of income involving tax effect of Rs. 174.35 crore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c) 19 cases in eight states in respect of income earned through sale of carbon credit which involved tax effect of Rs. 34.77 crore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d) eight cases in two states in respect of profits derived from 'Railway Sidings/Jetties' constructed and operated by the assessees for their private purposes, which did not qualify to be treated as infrastructure facilities in terms of Explanation to section 80 IA(4). Irregular allowance of deduction attracted tax effect of Rs. 2066.70 crore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e) six cases in four states for the period beyond the permissible limit of 10 consecutive assessment years, starting from the declared initial assessment year. Incorrect allowance of deductions resulted in underassessment of income involving tax effect of Rs. 859.47 crore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">f) 15 cases in eight states where the assessee did not apportion the common expenses between eligible and non eligible units properly which resulted in excess allowance of deduction involving tax effect of Rs. 224.47 crore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">g) seven cases in four states in respect of the profits related to the enterprises or undertaking which were transferred in a scheme of amalgamation/demerger, even though such amalgamation/demerger was effected on or after 01.04.2007. Incorrect allowance of deduction resulted in underassessment of income involving tax effect of Rs. 376.10 crore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">h) 43 cases in 10 states due to mistake in calculation of income/tax, depreciation, double deduction allowed, deduction allowed on other head of income etc. Omission to disallow the deduction on these cases resulted in underassessment of income involving tax effect of Rs.143.65 crore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i) six cases in four states in the case of captive consumption of electricity where the assessees claimed excess deduction by adopting a rate higher than the market rate. The Assessing Officers (AOs) did not invoke the provisions of section 80 IA(8) to arrive at the correct amounts of eligible deduction in these cases which resulted in excess allowance of deduction involving tax effect of Rs. 15.10 crore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">j) 11 cases in six states though the plant and machinery being used were old or a pre-existing infrastructure facility or undertakings being formed by splitting up of business already in existence. Irregular allowance of deduction involved tax effect of Rs. 40.51 crore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">k) 27 cases in 12 states on interest receipts, sale of import license, insurance claim etc. that, <em>inter alia</em>, included the profit of the eligible business. Excess allowance of deduction attracted tax effect of Rs. 227.87 crore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">l) 65 cases in 11 states without verifying the information contained in the requisite audit report/certificate in Form 10CCB along with the profit and loss account and the balance sheet. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CAG also found that: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) The ITD irregularly considered additions made on account of treatment of expenditure as revenue, sale of fixed assets, disallowance made u/s 40A(3) 14A, 40(a) etc., for deduction in nine cases in five states. Consequently, the allowances were more than the amount claimed by the assessee involving consequential tax effect of Rs. 74.66 crore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) The ITD did not disallow deduction in 11 cases in six states despite belated filing of return which resulted in underassessment of income involving tax effect of Rs. 80.49 crore. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CAG concluded, </font></p>
<blockquote>
<p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBDT did not have any established mechanism to assess the impact of revenue foregone on account of deduction under section 80 IA on the economic and industrial growth of the country. There is no existing system to ascertain from the sponsoring ministries as to whether the tax holidays have had the desired impact on the growth of the economy. Therefore, the audit is unable to ascertain whether the very purpose of introducing the deductions in the Act has been achieved. The CBDT has also failed to produce any records to give an assurance that Government has put in any system to do the cost-benefit analysis of the scheme so as to assess the benefits to the society derived out of the concessions/disallowances given to the assessee companies . </font></em></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CAG recommended:- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a) The CBDT may ensure that mistakes in assessments pointed out by Audit have been duly taken care of with a view to avoiding the loss of revenue. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b) The CBDT may evolve a mechanism for proper linkage between tax benefit allowed by the ITD with the actual investment made by the assessee as per records of the Government of India, Department of Economic Affairs to assess the impact of tax holiday. </font></p>
</blockquote>
<p align="justify"><em><font color="#009900" size="2" face="Verdana, Arial, Helvetica, sans-serif">Source: CAG's Report No. 28/2016 </font></em></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600"><a name="f3"></a>Deposit of Old Notes in Small Savings Scheme - Post Offices not Barred </font></strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON </strong> 22.11.2016, the Government had clarified that subscribers of Small Savings Schemes may not be allowed to deposit old currency note of Rs.500 and Rs.1000, in Small Savings Schemes. (Please see yesterday's <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=28682" target="_blank">DDT</a></strong>).</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A day later, yesterday they have clarified that the deposits into Post Office Savings Account are excluded from the bar imposed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Meanwhile RBI yesterday advised banks not to accept these currency notes for deposits in Small Saving Schemes. (<strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjA4MDU=">RBI/2016-17/151 DCM (Plg) No.1351/10.27.00/2016-17., Dated November 23, 2016.</a></strong>) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Flip-flops have become the order of the day. Hope the CAG doesn't mind! </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjA3OTI=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MoF, Department of Economic Affairs F.No.1/04/2016-NS., Dated November 22, 2016 </font></strong></a></p>
<p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><a name="f4"></a>Customs Cash Crunch - Pay by Cheque </strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong> Service Centre at New Custom House, Mumbai issues two sets of coupons, one for normal documentation charges and another towards DMS (Document Management System) charges. Because of the recent demonetization, the Trade/Customs Brokers are finding it difficult to pay the charges to the Service Centre for printouts of the EDI Bill of Entry as well as for the DMS charges. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Customs Principal Commissioner has ordered that with immediate effect till 31.12.2016, the Trade/Customs Brokers can pay both the amounts by way of cheque in the following manner: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) For EDI documentation and printing charges, cheque is to be issued in favour of M/s XEAM Ventures Private Limited and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) For DMS charges, cheque is to be issued in favour of M/s Newgen Software Technologies Limited.</font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MjA4MDM=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">PRINCIPAL COMMISSIONER OF CUSTOMS (G), New Custom House, Mumbai PUBLIC NOTICE:162/2016., Dated: November 23, 2016</font></strong></a></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"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Have a nice day.</strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to <strong><a href="mailto:vijaywrite@tiol.in" target="_blank">vijaywrite@tiol.in</a></strong></font></p>
</body>
</html>