TIOL-DDT 313 · the untouched capture
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<strong><font color="#996699" size="3">TIOL-DDT 313</font><br>
01 03 2006<br>
Wednesday</strong></font></div>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Budget
2006</font></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Idli,
Dosa and Chutney are lapped up what happens to the elusive bowl of gruel?</strong>
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Budget speech did not reveal anything but behind it were hidden mountains of
bad news. The worst affected are the Service Tax assessees. All the might of
the department is going to be exhibited before the diminutive assessee. All
the draconian measures they wanted to introduce in the Customs and excise side
by the infamous Taxation Laws (amendment) Bill 2005 are brought in to Service
Tax. Service Tax which was to be a voluntary compliance levy has now acquired
demonic might and may as well lead to intolerable corruption, chaos and an ultimate
upheaval. In its anxiety to acquire power by such draconian legislation, the
government will not only ruin revenue but the very fundamental civilized democratic
principles. Bad days are ahead. No tyrant has ever succeeded with tyrannical
laws against the common small man. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">Let
us look at some of the provisions.</font></p>
<div align="justify">
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">The
controversial explanation to Section 65 (105) requiring Service Tax to be
paid on services received abroad has been deleted. This had been stayed
by the Madras High Court. If this explanation is withdrawn, it comes with
all the might at the government's command in the form of Section 66A - and
certainly more confusing. If one confusion is removed, it will create ten</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">Service
Tax is enhanced to 12%. A day will come when the government will plan to
tax 100% and then there will be nobody to be taxed. As such 10% is a high
tax and the 12% burden will have to be shared by us all. If your telephone
bill is Rs. 1000/- a month, the tax will be Rs. 120/-. Quite a high price
indeed.</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">Valuation
of Service Tax made more complicated and rules to be issued. All the difficulties
in Central Excise are going to be imported. </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"><strong>Provisional
attachment of property</strong>. Service Tax assessees Beware - the Commissioner
is coming. Now an officer can attach property after issuing a Show Cause
Notice. It is common knowledge that 80% of the Show Cause Notices are frivolous.
Now every such silly Show Cause Notice can be followed by an attachment.
This will only increase corruption and more work for CBI without really
any increase in Revenue. When similar provisions were sought to be introduced
in the excise and Customs laws, Taxindiaonline had appeared before the Hon'ble
Parliamentary Committee on Finance and strongly argued against such draconian
laws. The Government was wise enough to drop those proposals in excise and
customs but surprisingly brought them in to Service Tax. Absolute power
corrupts absolutely.</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"><strong>Draconian
penalty:</strong> The penalty for non payment of Service Tax has been increased
from Rs. 100/ per day to a minimum of Rs. Two Hundred per day or 2% per
month. Shylock would appear a saint before this government. </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"><strong>Don't
keep money in the bank-</strong> Service Tax officer may walk off with it
- dangerous and unethical recovery proceedings. The Act has been amended
as if the Service Tax law is the only law of the land. A post office, banker
or insurer can be now issued a notice by the Service Tax officer to recover
dues and the post office, bank insurer etc, are required to work for Central
Excise and pay up the money. If they don't pay, they can be considered as
defaulting assessees and their property seized. Very soon you will find
Central Excise officers going round seizing banks and post offices. Remember
this is a department where a Commissioner had imposed a penalty of Rs. 50
Crores on a PSU employee. Had this law been available then, the commissioner
would have collected all the bank balances and insurance amounts of this
employee! It is really unfortunate that such barbaric laws are made under
the leadership of Dr. Man Mohan Singh and Mr. PC.</font></li>
</ul>
</div>
<p align="justify"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The
Notifications</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">More
than forty notifications have been issued with the Budget. Here is a summary
of those.</font></p>
<div align="justify">
<table width="450" border=1 align="center" cellpadding=0 cellspacing=0
>
<tr >
<td width=568 colspan=2 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b >Central
Excise </b></font></p></td>
</tr>
<tr >
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification
No. </font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Subject</font></p>
<p align="justify"> </p></td>
</tr>
<tr style='mso-yfti-irow:2'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption
to several goods</font></p></td>
</tr>
<tr style='mso-yfti-irow:3'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Effective
rate of duty for several goods</font></p></td>
</tr>
<tr style='mso-yfti-irow:4'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">general
exemption effective rates</font></p></td>
</tr>
<tr style='mso-yfti-irow:5'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Effective
rates of duty and exemption </font></p></td>
</tr>
<tr style='mso-yfti-irow:6'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption
and effective rates – certain exemptions withdrawn- amends Notification
No. 3/2005</font></p></td>
</tr>
<tr style='mso-yfti-irow:7'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amendment
to Notification. 8/2003 – SSI exemption – goods which became liable
for excise duty from 1<sup>st</sup> March 2006, will be eligible for
exemption in March 2006 for a clearance of Rs. 10Lakhs.</font></p></td>
</tr>
<tr style='mso-yfti-irow:8'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption
of goods from SED – all goods under the second schedule are exempted.
</font></p></td>
</tr>
<tr style='mso-yfti-irow:9'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Effective
rate for certain goods – supersedes Notification 10/2003</font></p></td>
</tr>
<tr >
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exempts
all goods from AED(GSI)</font></p></td>
</tr>
<tr >
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends
Notification No. 49/2003 to align with the 8 digit tariff</font></p></td>
</tr>
<tr >
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends
Notification No. 50/2003 to align with the 8 digit tariff</font></p></td>
</tr>
<tr style='mso-yfti-irow:13'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends
Notification No. 29/2004 - textiles</font></p></td>
</tr>
<tr style='mso-yfti-irow:14'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends
Notification No. 30/2004 - textiles</font></p></td>
</tr>
<tr style='mso-yfti-irow:15'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends
Notification No. 46/2003 - NCCD</font></p></td>
</tr>
<tr style='mso-yfti-irow:16'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">17/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends
Notification No. 53/2003 - NCCD</font></p></td>
</tr>
<tr style='mso-yfti-irow:17'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends
Notification No. 10/1996 to align with the 8 digit tariff</font></p></td>
</tr>
<tr style='mso-yfti-irow:18'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">19/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends
Notification No. 221/1986 to align with the 8 digit tariff</font></p></td>
</tr>
<tr style='mso-yfti-irow:19'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">20/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends
several Notification to align with the 8 digit tariff</font></p></td>
</tr>
<tr style='mso-yfti-irow:20'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">21/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rescinds
several notifications. For details please see next table. </font></p></td>
</tr>
<tr style='mso-yfti-irow:21;mso-yfti-lastrow:yes'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">22/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends
Notification No. 23/2003 – EOU – DTA clearances – beginning of another
round of confusion? </font></p></td>
</tr>
</table>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
</font>
<table border=1 cellspacing=0 cellpadding=0 align="center" width="450">
<tr >
<td width=127 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rescinded
notification No. </font></p></td>
<td width=441 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Details</font></p></td>
</tr>
<tr >
<td width=127 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">115/75-</font></p>
<p align="justify"> </p></td>
<td width=441 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption
to certain sectors like tanning , cashew , coir etc,</font></p></td>
</tr>
<tr style='mso-yfti-irow:2'>
<td width=127 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">313/77</font></p></td>
<td width=441 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption
to durable containers – was redundant for the last six years.</font></p></td>
</tr>
<tr style='mso-yfti-irow:3'>
<td width=127 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">124/84</font></p></td>
<td width=441 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption
to goods produced in EOUs????</font></p></td>
</tr>
<tr style='mso-yfti-irow:4'>
<td width=127 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">215/84</font></p></td>
<td width=441 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Goods
cleared for display in exhibitions</font></p></td>
</tr>
<tr style='mso-yfti-irow:5'>
<td width=127 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">27/97</font></p></td>
<td width=441 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Effective
rate for pan masala</font></p></td>
</tr>
<tr style='mso-yfti-irow:6'>
<td width=127 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6/2002</font></p></td>
<td width=441 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
all encompassing largest notification is gone – replaced of course by
four notifications </font></p></td>
</tr>
<tr style='mso-yfti-irow:7'>
<td width=127 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">44/2003</font></p></td>
<td width=441 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Effective
rate for tobacco substitutes</font></p></td>
</tr>
<tr style='mso-yfti-irow:8'>
<td width=127 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">32/2004</font></p></td>
<td width=441 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AED(GSI)
exemption</font></p></td>
</tr>
<tr style='mso-yfti-irow:9'>
<td width=127 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">36/2004</font></p></td>
<td width=441 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SED
exemption</font></p></td>
</tr>
<tr >
<td width=127 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4/2005</font></p></td>
<td width=441 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AED
and SED exemption</font></p></td>
</tr>
<tr >
<td width=127 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13/2005</font></p></td>
<td width=441 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SED
exemption</font></p></td>
</tr>
</table>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
</font>
<table width="450" border=1 align="center" cellpadding=0 cellspacing=0
>
<tr >
<td width=568 colspan=2 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b >Central
Excise (N.T.)</b></font></p></td>
</tr>
<tr >
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification
No. </font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Subject</font></p>
<p align="justify"> </p></td>
</tr>
<tr style='mso-yfti-irow:2'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MRP
and abatement list</font></p></td>
</tr>
<tr style='mso-yfti-irow:3;mso-yfti-lastrow:yes'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff
Value for pan masala</font></p></td>
</tr>
</table>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
</font>
<table width="450" border=1 align="center" cellpadding=0 cellspacing=0
>
<tr >
<td width=568 colspan=2 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b >SERVICE
TAX </b></font></p></td>
</tr>
<tr >
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification
No. </font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Subject</font></p>
<p align="justify"> </p></td>
</tr>
<tr style='mso-yfti-irow:2'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Abatement
in value for certain specified services</font></p></td>
</tr>
<tr style='mso-yfti-irow:3'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2/06</font></p></td>
<td width=477 valign=top > <p aling="justify" style='margin-left:18.0pt'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Several
exemption notifications rescinded, mainly</font></p>
<ol style='margin-top:0cm' start=1 type=1>
<li aling="justify" style='mso-list:l1 level1 lfo1;tab-stops:list 36.0pt'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption
Notification No.59/98 withdrawn - all taxable services of chartered
account in his professional capacity are now taxable.</font></li>
<li aling="justify" style='mso-list:l1 level1 lfo1;tab-stops:list 36.0pt'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Call
centres and medical transcription centres are under tax net under
Business Auxiliary Services. Notificn 8/2003 is withdrawn</font></li>
<li aling="justify" style='mso-list:l1 level1 lfo1;tab-stops:list 36.0pt'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Enterprise
Resource Planning services provided by management consultants are
taxable. – Notification 16/2004 rescinded. </font></li>
<li aling="justify" style='mso-list:l1 level1 lfo1;tab-stops:list 36.0pt'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Catering
services provided by outdoor caterer in railway train are taxable
– 19/04 withdrawn. </font></li>
<li aling="justify" style='mso-list:l1 level1 lfo1;tab-stops:list 36.0pt'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Out
door catering done in academic or medical institutions are now taxable
– 21/04 rescinded.</font></li>
</ol>
<p align="justify"> </p></td>
</tr>
<tr style='mso-yfti-irow:4'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3/94
amended – premium from re insurance taxable</font></p></td>
</tr>
<tr style='mso-yfti-irow:5'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption
to interest - leasing</font></p></td>
</tr>
<tr style='mso-yfti-irow:6'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends
Service Tax Rules –</font></p>
<ol style='margin-top:0cm' start=1 type=1>
<li aling="justify" style='mso-list:l3 level1 lfo2;tab-stops:list 36.0pt'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">registration
– change in information to be furnished to Assistant Commissioner</font></li>
<li aling="justify" style='mso-list:l3 level1 lfo2;tab-stops:list 36.0pt'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Registration
certificate to be surrendered to Superintendent, who will ascertain
that there are no dues and then will cancel the certificate</font></li>
<li aling="justify" style='mso-list:l3 level1 lfo2;tab-stops:list 36.0pt'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Records
to be preserved for five years </font></li>
<li aling="justify" style='mso-list:l3 level1 lfo2;tab-stops:list 36.0pt'><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Records
to be made available for inspection by officers.</font></li>
</ol></td>
</tr>
<tr style='mso-yfti-irow:7'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Testing
of water quality by government laboratories exempted.</font></p></td>
</tr>
<tr>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Services
provided by RBI exempted. Obviously RBI was not exempted all these days<b >.
A good opportunity for the DGST to summon the RBI Governor and make
him pay up the old dues. As only 30 days are left in the fiscal, the
Service Tax department should pounce upon RBI immediately. May be we
can see a fiscal tussle.</b> </font></p></td>
</tr>
</table>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
</font>
<table border=1 cellspacing=0 cellpadding=0 align="center" width="450">
<tr >
<td width=568 colspan=2 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b >Customs
</b></font></p></td>
</tr>
<tr >
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification
No. </font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Subject</font></p>
<p align="justify"> </p></td>
</tr>
<tr style='mso-yfti-irow:2'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">09/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rescinds
Notification No. 75/2004 dated 26-7-2004 – Regarding computers (Additional
Duty Rules, 2004)</font></p></td>
</tr>
<tr style='mso-yfti-irow:3'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Appoints
1/3/2006 as the date for Section 133 of the Finance Act, 2003 coming
in to force. Under this Section the tariff rates for edible oils and
vegetable products was to be increased from 30% to 100% this was kept
under hold for the last three years and now the rates are 100% from
today.</font></p></td>
</tr>
<tr style='mso-yfti-irow:4'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amendment
of Notification. 21/02 – General exemption – Several duties reduced.
</font></p></td>
</tr>
<tr style='mso-yfti-irow:5'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends
Notification No. 27/04 – Exemption to goods imported for manufacture
of goods</font></p></td>
</tr>
<tr style='mso-yfti-irow:6'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Reduces
the peak rates of duty on most goods to 12.5%</font></p></td>
</tr>
<tr style='mso-yfti-irow:7'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Supersedes
Notification 14/05. The duties on fabrics under chapter 52 to 58 were
15% or a specific rate whichever was higher. Now it is 12.5% or a specific
rate. </font></p></td>
</tr>
<tr style='mso-yfti-irow:8'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Effective
rate of duties of standard and preferential rate. Notification No. 15/05
amended. Standard rate reduced to 12.5% from 15%.</font></p></td>
</tr>
<tr style='mso-yfti-irow:9'>
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">16/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amendment
to Notification No. 69/2004 – Exemption to education cess for certain
textile items – Withdrawn</font></p></td>
</tr>
<tr >
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">17/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Project
import regulations amended to include pipe line projects for the transportation
crude oil, petroleum products or natural gas.</font></p></td>
</tr>
<tr >
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Amends
Notification No. 42/96 – To include pipe line projects for the transportation
crude oil, petroleum products or natural gas under project imports</font></p></td>
</tr>
<tr >
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">19/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Supersedes
Notification No. 19/05, dated 1-3-2005 – 4% Additional duty of Customs
on all imported goods.</font></p></td>
</tr>
<tr >
<td width=92 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">20/06</font></p></td>
<td width=477 valign=top > <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exempts
certain goods from the 4% Additional duty</font></p></td>
</tr>
</table>
</div>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><br>
How they reacted - to our budget</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The
BBC quizzed,</strong> "Whatever happened to the poverty and unemployment associated
with India?" and answered, "Well, these problems haven't exactly disappeared.
The country's social and physical infrastructure facilities are inadequate and
creaking." The BBC which is not exactly famous for highlighting India's achievements
observed,</font></p>
<ul>
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> One
out of four Indians, or around 250 million people, lives below the officially
defined poverty line and half the population earns an income worth $2 a
day or less. </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> One
out of three Indians cannot read and write their own names and close to
half of the children who join primary school drop out. </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> Much
of the money spent by the government on development schemes gets diverted
by corrupt officials and subsidies meant for the poor do not reach those
who need these the most. </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> At
the same time, affluent Indians living in urban areas cities flaunt lifestyles
that are comparable to those of the rich in developed countries. </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> However,
even in cities of concrete and steel that glitter on the surface, a third
of the residents live in abject poverty, denied secure jobs, social security
and access to basic sanitation facilities and clean drinking water. </font></li>
</ul>
</ul>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
<strong>Pakistan</strong> what interests most is our defence budget and Online
International News Network reported,</font></p>
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> India
Tuesday announced an increase of 7.2 percent in its defence budget, allocating
a whopping Rs.89,000 crore (Rs.890 billion, $20 billion) for the fiscal year
2006-07. </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> Of
this, Rs.37,458 crore (Rs.374.6 billion) - or 42 percent of the total outlay
- has been earmarked for new arms purchases. </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> Finance
Minister P. Chidambaram told parliament he was increasing the allocation for
defence from Rs.83,000 crore (Rs.830 billion) in the current fiscal in view
of the enhanced expenditure on the modernisation of the armed forces. </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"> India
is in the market for a wide array of sophisticated hardware, including 126
combat jets and 80 helicopters, to modernise the ageing military arsenal,
and some deals are expected to be finalised in the next fiscal.</font></li></ul>
<div align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"><strong>We
are grateful</strong></font> </div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
We in <strong>TIOL</strong> are extremely grateful to all our netizens for the
tremendous response to our budget coverage. We are honoured by the comments
and analyses from doyens in the field who obliged us with their sharp comments
and opinion within the shortest possible time. Our joy knew no bounds, when
the grand old milkman of India, Dr. Kurien agreed to write for us and sent in
his comments. It was simply great!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<font color="#FF6666"><strong>Until tomorrow with more DDT and the budget</strong></font></font></p>
<p align="justify"><font color="#FF6666"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice day. </font></strong></font></p>
<p align="justify"><font color="#FF6666"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail
your comments to</font></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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