TIOL-DDT 344 · the untouched capture
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<font size="2" face="Verdana, Arial, Helvetica, sans-serif" color="#0000CC"><b><font color="#663399" size="3">TIOL-DDT
344</font><br>
</b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>19 04
2006</b></font><br>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Wednesday</b></font>
<font face="Verdana, Arial, Helvetica, sans-serif"></font>
<p>
<center>
<font color="green" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Subbed polyester base, imported by Hindustan Photo Films exempted</strong>
</font>
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</p>
<font face="Verdana, Arial, Helvetica, sans-serif">
<p align="justify"><font size="2">The government has exempted Subbed polyester
base, imported by M/s Hindustan Photo Films manufacturing Company Limited, Udhagamandalam
for the manufacture of medical or industrial X-ray films and graphic art films.
Notification No. 21/2002 dated 1st March, 2002 is amended.</font></p>
<p><font size="2" color=blue><strong><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_034.htm">NOTIFICATION
NO. 34/2006-Cus., Dated: April 17, 2006</a></u></strong></font></p>
<p><font size="2" color=green>
<center>
<strong>Rajdhani Express tickets to cost more – thanks to Service Tax
</strong>
</center>
</font></p>
<p align="justify"><font size="2">Railway Minister Lalu Prasad Yadav has been
trying to attract passengers to the trains but the Finance Ministry is playing
spoil sport. The Railway ministry has clarified that Rajdhani and Shatabdi Express
fares will increase because of Service Tax on catering. Not that other trains
are exempted from Service Tax. But you know the Rajdhani tickets include the
cost of food and so the Service Tax on food is to be added to the ticket. If
you choose to buy food in other trains, you will end up paying a little more
as the caterer has to now pay Service Tax.</font></p>
<p><font size="2">It all started like this. Outdoor caterer is defined in the
Act as</font></p>
</font>
<blockquote>
<p> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">“outdoor
caterer” means a caterer engaged in providing services in connection
with catering at a place other than his own but including a place provided
by way of tenancy or otherwise by the person receiving such services;</font>
</blockquote>
<div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification
No. 19/2004 – Service Tax dated September 10, 2004 exempted taxable service
provided by an outdoor caterer to a client in relation to catering service provided
on a railway train by such caterer. </font> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
However this notification No. 19/2004 was rescinded by Notification No.2/2006
dated 1.3.2006 thereby making the Railway catering liable to Service Tax. And
this had come into effect from 1.3.2006. Obviously the Railways were not paying
Service Tax since then and has now clarified that Service Tax will be collected
from the passengers. </font></p> </div>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" color=green><center> <strong> CBI arrests Income
Tax Joint Commissioner and CA</strong> </center></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Central
Bureau of Investigation arrested an Income Tax Joint Commissioner and a Chartered
Accountant at Kolkata for demanding and accepting Rs.five lakh bribe from the
proprietor of an engineering Company in connection with assessment of annual
income of the company. CBI registered a case on the complaint of the proprietor
of the company that the Joint Commissioner demanded a bribe of Rs.five lakh
from him as a motive for approving the proposal of the ITO for levying of 8%
tax on annual income of the complainant on the return filed by him for the financial
year 2002-03 which was taken up for scrutiny by the Income Tax Department and
the tax amount calculated at Rs.3.7 lakh (approx.) and also for allowing the
matter to rest instead of referring the file for reassessment of the return.
On the basis of the complaint, CBI laid a trap and the official was caught red-handed
while demanding and accepting the bribe of Rs.five lakh. The Chartered Accountant
was also arrested for his involvement in the demand and acceptance of bribe.
Chartered Accountants are supposed to facilitate and unfortunately many a time
they are perceived as agents of IT officers, which is really bad for a highly
professional body. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" color=green><center> <strong>BL Gautam to head
UTV Software Communications</strong> </center></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mr. BL Gautam has
taken over as the head of UTV Software Communications. Before that he was chief
operating officer of India operations of B4U Network for a year and even before
that he was Director Commercial at ZEE Telefilms Ltd. Why is DDT interested
in all this? Before joining Zee, Gautam was a Superintendent of Customs and
was a presidential awardee in 1998.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" color=green><center> <strong>Indian settled
in Canada goes to US to divorce wife, gets stuck in US jail - An ordeal with
FBI</strong> </center></font></p>
<p> </p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sachdeva
is an Indian settled in Canada. He went to New York in early October 2001 to
finalise his divorce from his wife, an American who owns a gas station in New
York. He went to the FBI office at their invitation Dec 9, 2001 where he was
politely questioned by two agents. Ten days later 30 or 40 armed agents barged
into the house he was staying in and took him away. At the FBI's offices, they
shackled his legs to a steel bench and interrogated him for four to five hours,
never offering him a call to his family or lawyer, he said. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
They asked him if he had ever taken flight training or used a flight simulator.
He told them no. They also asked if he was a practicing Hindu and what he thought
about the people behind the Sept 11 attack. Sachdeva thinks it was just after
midnight when he was driven in a police van to the Passaic County Jail, where
he was strip-searched and put in a cell with dozens of inmates. He was forced
to sleep on the cold floor and given no toothbrush. In the jail, dogs were used
to intimidate him. He remained in jail till April 17, 2002, when he was driven
straight to an airport and, in handcuffs, put on a flight to Toronto, with no
money. He got his passport back, but has not seen his Canadian driver's license
and medical insurance card.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sachdeva
has now claimed compensation and an apology from the FBI. </font></p>
<p> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" color=green>
<center>
<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> <font color="green" size="2" face="Verdana, Arial, Helvetica, sans-serif">Hawala </font><font color="green" size="2" face="Verdana, Arial, Helvetica, sans-serif">means
transfer in Arabic </font></I></B></TD>
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</center></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Interpol
describes it as "money transfers without money movement". It is an
ancient system used to move money around financial and legal barriers. It is
faster, cheaper and more reliable than banking transactions, without the hassles
of bureaucracy and legal restrictions. It is closely connected with the Dubai
gold trade. If a gang smuggles gold into India from Dubai, the seller in Dubai
would not like payment in Indian Rupees, but would prefer the easily convertible
Dhirams. So the Indians in Dubai who want to send money home pay to the hawaldar
in Dubai who keeps the cash and arranges to get his agent in India pay the money
in India in Rupees. This way every one is happy and no money really moves. Criminal
networks and terrorist gangs are the main patrons of the hawala system. As there
is no paper trail, the secrecy is perfect. It was initially believed that the
September 11 attack was funded through Hawala, but of course the 9/11 Commission
Report has since confirmed that the bulk of the funds used to finance the assault
on the twin towers were not sent through the hawala system, but rather by inter-bank
wire transfer. Part of the funding must have been through hawala. An ancient
system that criminals have exploited, hawala is now a bad word.</font></p>
<p align="justify"> <font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Why
can’t we start a Society for the Prevention
of Cruelty to Taxpayers?</b></font> <b><font size="4" face="Verdana, Arial, Helvetica, sans-serif" color=blue><font color="#660099"></b></font></font></b></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" color=#FF6666>Until
tomorrow with more DDT</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" color=#FF6666>Have
a nice day. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif" color=#FF6666>Mail
your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" color=red><b>
</b><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a><br>
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