TIOL-DDT 326 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT
326</font><br>
21 03 2006<br>
Tuesday</b></font></p>
<p align="center"><b><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Finance
Bill passed in LS – candles exempted</font></b></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Lok Sabha passed the Finance bill yesterday after the FM replied to the debate
literally holding a candle, with the noble candle being exempted from excise
duty.<br>
<br>
A new Section 93A has been inserted into the Finance Act , 1994 (Service Tax)
to give the government power to grant rebate of service tax paid on taxable
services which are used as input services for the manufacturing or processing
of such goods or for providing any taxable services. Section 94 has also been
amended to provide for making rules for rebate.<br>
<br>
Information technology software will attract 8% excise duty instead of nil.<br>
<br>
<b>Other changes:</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>CUSTOMS</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">· Basic
customs duty on Carbon Black Feed Stock reduced from 12.5% to 10%.<br>
<br>
· Basic customs duty on Polyester chips reduced from 12.5% to 10%.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">· Customs
duty on Coronary stents and coronary stent systems for use with cardiac catheter
fully exempted from customs duty as well as additional CV duty of 4%.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>CENTRAL
EXCISE</b><br>
<br>
· Scented supari, where the retail sale price is declared on the
packages and such retail sale price does not exceed 50 paisa per package fully
exempted.<br>
<br>
· Candles fully exempted from central excise duty.<br>
<br>
· Specified building Bricks fully exempted from central excise duty.<br>
<br>
· Hand operated rubber roller machines and hand operated copra dryers
have been fully exempted from central excise duty.<br>
<br>
<b>Thus said the FM:</b><br>
<br>
· On the Customs side, the direction is moving towards ASEAN levels
of taxation. We have taken, as some would say, a half step this year,
bringing down to 12.5 per cent, the peak rate of customs duty. The goal
is to have customs duties ranging between 5 and 10 per cent, which will make
India comparable to the ASEAN countries. <br>
<br>
· On the Excise side, there is a broad consensus emerging in this
country that we must converge upon the CENVAT rate. What the ultimate
CENVAT rate will be, cannot be predicative now. But, broadly going by
international experience, it should be somewhere between 14 per cent and 16
per cent.<br>
<br>
· At the same time, we must also converge the Service Tax rate because
the proposal is to have Goods and Service Taxes in this country. We have
allowed ourselves a four-year time period.<br>
<br>
· selective industries have been identified in order to give them
a boost. Some of them are leather, paper and most importantly the food
processing industry<br>
<br>
· There is no reason to tinker or tamper the tax rates year after year.
There must be a certain stability in tax rates. Today, I think, most people
are comfortable with the personal and corporate tax rates. This is the
year of consolidation.<br>
<br>
· Revenues are growing at about 20 per cent a year, which means that
our tax policies are very balanced and right.<br>
<br>
· tax laws and exemptions cannot be permanent</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Only
eighty thousand people in this country with over ten lakh rupees income!!!</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
FM is not at all happy at the situation where only 80,000 people in this country
had a proclaimed income of over Rs 10 lakh and told parliament, “I and
every one of us know that there are 80,000 people in South Delhi alone. Even
small towns like Chandigarh or Jalandhar towns have more people with such income
who don’t pay taxes. It is shocking. We will reach bulk of these people.”</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>FTP on April 7</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
government will announce the annual supplement of Foreign Trade Policy on April
7 instead of March 30 as decided earlier. The Commerce Minister will announce
the annual review for the FTP 2004-09. The government may announce a new export
incentive scheme which would focus on specific products and markets to accelerate
export growth. Ways to neutralise incidence of service tax on exporters is also
under consideration. The scope of Vishesh Krishi Upaj Yojna is likely to be
enlarged.<br>
</font></p>
<P align=center><B><IMG height=62 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_txt.jpg" width=375></B></P>
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<TD><IMG height=67 hspace=5 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_word.jpg" width=67 align=absMiddle vspace=5><B><I> ipso
facto </I></B></TD>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
<b>By the fact itself or by the very nature of the case;</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>This
term is used by Latin-addicted lawyers when something is so obvious that it
needs no elaboration or further explanation. For example, it might be said that
a blind person, ipso facto, is not qualified to obtain to a driver's license.<br>
</b><br>
Person responsible/interested/ engaged/mixed up in bringing goods illegally
into country is said to be concerned with commission of offence - But person
who gets their possession after importation, even if with knowledge of their
smuggled character, <i>ipso facto</i> cannot be said to be so concerned<br>
<br>
Merely because the percentage of medicament in a product is less, does not also
ipso facto mean that the product is not a medicament.<br>
<br>
If no FIR is recorded and police is not able either to apprehend criminals or
recover stolen property, it could not be ipso facto assumed that no theft had
taken place.<br>
<br>
Mere fact of having facility of blending two types of LPGs does not ipso facto
lead to inevitable conclusion that such an activity has been carried out in
respect of all clearances.<br>
<br>
Merely because holding of shares of subsidiary company could not ipso facto
mean that there was mutuality.</font></p>
<p align="center"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Legal
maxim</b></font></p>
<p align="center"><b><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">
Malum non praesumitur. - Evil is not presumed</font></b></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<font color="#FF0066"><b>Good judgement comes from experience; and experience
- well, that comes from bad judgement. (Anon)</b></font><br>
<br>
<font color="#FF9966"><b>Until Tomorrow with more DDT<br>
<br>
Have a nice Day.<br>
<br>
Mail your comments to</b></font> <a href="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com
</a></font></p>
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