TIOL-DDT 366 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<html>
<head>
<meta http-equiv=Content-Type content="text/html; charset=windows-1252">
<link rel=Edit-Time-Data href="Taxindiaonline's%20DDT%20366_files/editdata.mso">
<title>Taxindiaonline's DDT 363</title>
</head>
<body>
<p><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
366</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
19 05 2006<br>
Friday</b></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income Tax – How to find out the difference
between trader in stocks and investor in stocks</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBDT proposes to issue guidelines to determine
whether a person is a trader in stocks or an investor in stocks. One of the
guidelines is the time devoted and to the extent to which it is the means of
livelihood. Board invites comments from the public on this.</font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Deduction under 80HHC – Cascading effect of
amendment in other statutes </b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Income Tax Department has encountered a
strange problem. As per Section 80HHC certain deductions are allowed on income
earned from profits from exports. The Section mentions the Customs and Central
Excise Duty Drawback Rules, 1971. But these rules have been replaced by the
Customs and Central Excise Duty Drawback Rules, 1995. Now there are some smart
officers who wanted to deny the benefit of 80HHC on the ground that there is
no Duty Drawback Rules, 1971.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the CBDT has clarified that by virtue of
the General Clauses Act, the benefits of Section 80HHC cannot be denied just
because the Section mentions the 1971 Rules and not the 1995 rules.</font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is what happens with too many enactments finding place
in too many other acts and too many amendments with no clue as to what is mentioned
where.</font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=36&filename=notification/cbdt/2006/it06cir05.htm">CBDT
Circular No. 5/2006, dated May 15, 2006</a></u></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Customs and Central Excise amendments</b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Re-import of exported goods – Exemption </b>Notification
No. 94/96-Cus. grants exemption to various categories of exported goods when
reimported. Now cut and polished precious and semiprecious stones exported for
treatment abroad is included in the list.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Cut and polished diamonds </b>Cut and polished diamonds when
reimported after certification/grading by certain agencies are exempted. Now
one more agency “Diamond Trading Company <st1:country-region w:st="on"><st1:place w:st="on">U.K.</st1:country-region>”
is included in the list of grading agencies. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Exemption to EOUs – Conditions relaxed </b>Notification No.
52/2003-Cus. dated 31-3-2003 allows exemption to goods imported by EOUs, STP
and ESTP. Under the scheme certain conditions are now relaxed:</font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1) Goods may
be transferred to other EOUs/SEZ under intimation to the proper officer -
no need of permission.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 2) Goods may
be removed for test, repair etc under intimation to the proper officer -
no permission required.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 3) Exemption
is now allowed for import of promotional materials like brochures, literatures,
pamphlets, hoardings, catalogues and posters.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similar changes
are made in the Central Excise exemption for procurement of goods by EOUs.</font></p>
</blockquote>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_044.htm">Notification
No. 44/2006-Customs</a> </u><b><u>and </u></b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2006/etariff06_031.htm">31/2006-C.E.,
dated May 17, 2006</a></u></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>FTP Amendments - The DGFT had amended the Hand
Book of Procedures</b></font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1) In Para 2.12
the validity period of 24 months for DFIA is deleted.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
2) Certain sea ports/air ports/ICDs/LCS added to the list of ports for imports
and exports under the advance authorisation and DEPB.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
3) The period of fulfilling export obligation in case of import of spices
is restricted to 120 days. </font></p>
</blockquote>
<p align="center" ><b ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Vehicles
imported for R&D – Registration</font></b></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
per Notification No. 2 dated 7.4.2006 vehicle manufactures and auto component
manufacturers were allowed to import vehicles for R & D purposes. One of
the conditions for such imports was that the vehicle will not be registered
under the CMVR Rules in the country and will not ply on Indian roads. Now DGFT
clarifies that the condition is applicable only for use as a passenger vehicle.
For the limited purpose of carrying out endurance test, evaluation test and
for other testing purposes, the vehicle may be registered as provided for in
the CMVR Rules.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2006/dgft06cir006.htm">POLICY
CIRCULAR NO. 06(RE-06)/2004-2009 Dated: May 18, 2006</a></u></font></p>
<P align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><B><IMG height=62 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_txt2.jpg" width=375></B></font></P>
<table width="375" border="1" align="center" cellpadding="0" cellspacing="0">
<tr>
<td><TABLE cellSpacing=0 cellPadding=3 width=375 border=0>
<TBODY>
<TR>
<TD width="67"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><IMG height=67 src="http://www.taxindiaonline.com/RC2/image/ddt/gnl_word.jpg" width=67 align=absMiddle></font></TD>
<TD><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b><font color="#0000FF">non</font></b><font color="#0000FF"><b>
obstante</b></font><b> - Notwithstanding. (any statute to the contrary)</b></font></TD>
</TR>
</TBODY>
</TABLE></td>
</tr>
</table>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In absence non obstante clause allowing prevailing
of Narcotic Drugs and Psychotropic Substances Act, 1985 over Evidence Act, 1872
such statements could only be treated as previous statements under Section 145
ibid and not as substantive evidence</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Retrospective amendment of excise rules empowering
Revenue to recover duty - Even in such a case, demand has to be within limitation
prescribed under Section 11A of Central Excise Act, 1944, in absence of non-obstante
clause in amendment</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>Although a non obstante clause is used in
Article 253 of the Constitution of India, it only explains and provides for
the legislative competence of the Parliament for the whole or any part of the
territory for the purpose of implementing any treaty or agreement with any other
country or any decision made at any international conference etc. If the Parliament
or the State Legislature are competent to lay down the guidelines and leave
the implementation of the guidelines to the rule making authority, such a law
cannot be held to be ultra vires because of a non obstante clause in Article
253.</i></font></p>
<p ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more DDT </font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Weekend. </font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
</body>
</html>