TIOL-DDT 34 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#0000FF" size="3">TIOL-DDT
34</font><br>
18 1 2005<br>
Tuesday</b></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>‘Satyam’
Ramalinga Raju knows what he wants and what he doesn’t</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He
is terribly busy with Satyam Computers’ forthcoming Sponsored ADS Scheme
and the quarterly results to be announced on 20th January 2005. But Ramalinga
Raju, the iconic chairman of Satyam Computers, still found time off from his
terribly busy schedule to tell us what he wanted from the Finance Minister in
the ensuing budget. At the speed of SIFY and the precision of Satyam, he told
us that he wanted some tax concessions for his ADS and like the rest of us,
he wanted simplification of Income Tax laws. In a disarmingly short wish list,
Raju wanted the Government to come out with some scheme for greater government
and industry participation in the areas of corporate social responsibility.
We are proud to present Ramalinga Raju in our <font color="#0000FF"><b>Budget
run up</b></font> today. </font></p>
<p align="center"><font size="2"><b><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif">DGFT
clarification on deemed exports- TIOL brings you the Public Notice!</font></b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yesterday, DDT
had promised that Taxindiaonline will bring you the DGFT Public Notice No. 44/2004-05.
As promised, we did carry it yesterday, but it is, still strangely, not available
in the DGFT web site! Our editorial team had to really struggle hard to procure
a copy of the Public Notice. What makes the babus in Government think that their
job is done once they issue a notification/circular? Is it not their duty to
see that these laws reach the people concerned? While TIOL is always ready to
take the Government’s laws to the people, as soon as they are made available,
the least the Government can do is to make them available. </font></p>
<p align="center"><b><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">No
need of certificate from Central Excise Authorities.</font></b></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per DGFT PN No. 32/2004-05 dated 15.12.2004,
for claiming refund of Terminal excise duty, a Non-availment of CENVAT credit
Certificate from the Jurisdictional Excise Authority of the recipient of goods,
where CENVAT credit is available on the goods supplied, had to be produced.
Now by PN No. 44/2004-05, this certificate is not required and a self certificate
is enough. The PN also clarifies supplies will be eligible for deemed export
drawback on the Central Excise paid on inputs/components, provided CENVAT credit
facility/rebate has not been availed by the applicant. However, such supplies
will be eligible for deemed export drawback on the customs duty paid on the
inputs/components. The deemed export benefits can be claimed either from the
Development Commissioner or the Licensing Authority.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
PN No. 32 had also stipulated that “such claims shall be filed within
a period of 6 months from the end of monthly/quarterly/half yearly period reckoned
from the date of receipt of the supplies by the project authority or from the
date of receipt of the payment as per the option of the applicant” . Now
the DGFT clarifies that this condition applies only to supplies made after 15.12.2004
- <font color="#0000FF"><b>Policy Circular No 14/2004-05</b></font>.</font>
</p>
<p align="center"><b><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT
invites suggestions for Foreign Trade Policy 2005-06</font></b></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The suggestions may be sent to Policy-IV Division,
DGFT(Hqrs), Udyog Bhawan, New Delhi latest by 24th January 2005.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
started in Brazil in the 60’s and spread to Europe in the 70’s and
is now a reality in over 130 countries. Though in India, there is a well maintained
VAT system for excise, this concept has somehow not percolated to the states.
It seems to be happening now. It all started with a meeting of Chief Ministers
convened by the Finance Minister(as he then was) Dr. Man Mohan Singh, in 1995.
Ten years later and with the good Doctor as Prime Minister, it is all set to
take off. Vat is most likely to be effective from April 2005. The whitepaper
describes the advantages of VAT as</font></p>
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> a set-off will be given for input tax as well as tax paid on previous purchases</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> other taxes, such as turnover tax, surcharge, additional surcharge, etc.
will be abolished</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> overall tax burden will be rationalised</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> prices will in general fall</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> there will be self-assessment by dealers</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> transparency will increase</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> there will be higher revenue growth</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The VAT will therefore help common people, traders, industrialists and
also the Government. </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is indeed a move towards more efficiency, equal competition and fairness
in the taxation system.</font></li>
</ul>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You must have already read enough about the VAT that DDT does
not want to add to your woes, but will give you here the highlights of the scheme
as already covered by Taxindia’s editorial team. </font></p>
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">VAT on 550 goods from April 1, 2005 </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CST to be phased out </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Twin VAT rates of 4% and 12.5% </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">medicines, drugs, all agricultural and industrial inputs under 4% VAT </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Special VAT rate of 1% on Gold and Silver ornaments </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">VAT on AED items relating to sugar, textile and tobacco not to be imposed
for one year </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Input tax credit on capital goods to be available for traders and manufacturers
</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Credit on capital goods may be adjusted over a maximum of 36 equal monthly
installments </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Negative list for capital goods not eligible for input tax credit </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Small dealers with gross annual turnover not exceeding Rs 5 lakhs not liable
to pay VAT </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Liquor, Lottery tickets, Petrol, Diesel and Aviation fuel to be outside
VAT but continue to be under Sales Tax Act </font></li>
</ul>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#0000FF">To err is human - and to blame it on the Government
is even more so.</font></b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"><font color="#FF0000"><b>Until
Tomorrow with more of DDT<br>
<br>
Have a Nice Day</b></font></font></p>
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