TIOL-DDT 381 · the untouched capture
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<P align="left" ><B><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
381</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><BR>
09 6 2006<BR>
Friday</font></B> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><B> </B>
</font><font size="2">
<P align="center" ><font face="Verdana, Arial, Helvetica, sans-serif"><B><font color="#006600">New
Saral withdrawn - really</font></B></font></P>
</font>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
the Indian Tax</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">s
cenario, it is not the Government alone which can cause confusion. The press
can do more than that. In the run for being fast and first, details and truth
are sacrificed. If you get a piece of news, run and publish it in your channel
or paper, don't wait for verifying the facts - this seems to be the guiding
principle for most of the journalists today. A highly respected and popular
newspaper sometime back carried a story that a particular notification is available
only in taxindiaonline and it is available only to paid subscribers. The reporter
did not have the patience to call us or verify whether it was freely available
in our "What's New" section. We had top take up the matter with the Editor In
Chief of that newspaper to get the misreporting corrected. </font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Today
all the newspapers and yesterday most of the TV channels went to town with the
news that the controversial new Saral has been withdrawn. We are perhaps the
only one who did not carry this news. We were flooded with calls and we found
out there was no such withdrawal. The form was introduced by a notification
and we tried to explain that there had to be a notification to withdraw it and
we were sure there was no such notification issued. </font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
is how ndtv pr</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ofit.com
reported it,</font></P>
<table width="100%" border="1" cellspacing="0" cellpadding="3">
<tr>
<td><p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Govt
drops new form for filing IT returns</b> - NDTV Correspondent - Thursday,
June 8, 2006 (New Delhi):</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Under
severe attack from various quarters, including the Congress party, the
government said the new form introduced for filing Income Tax returns
would be dropped from next year</b>.</font></p></td>
</tr>
</table>
<P ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> This has its
genesis in the PTI report, which strangely looks identical,</font></P>
<table width="100%" border="1" cellspacing="0" cellpadding="3">
<tr>
<td><div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Govt drops
new form for filing I.T returns - </b><ST1:CITY w:st="on"><ST1:PLACE w:st="on">New
Delhi, June 8 (PTI) - Under severe attack from various quarters, including
the Congress party, the government today said the new form introduced
for filing Income Tax returns would be dropped from next year. "The new four-page
form which replaces the one-page "Naya Saral (simple) form" is meant
for only this year and will only be optional for filing returns, Revenue
Secretary K M Chandrasekhar told reporters.</font></div></td>
</tr>
</table>
<P ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> And every other
channel and paper picked up the story and reported:- </font></P>
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Govt to modify
new IT return form - <B>Times of India</B> <br>
</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">New IT return
form may be modified next year - <B>Zee News<br>
</B></font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Govt scraps
new IT return form - <B>Daily News & Analysis<br>
</B> </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">New IT return
form to be dropped from next year - <B>Hindustan Times<br>
</B></font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Govt scraps
new IT return form - <B>Rediff</B> <br>
</font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Govt drops new
form for filing IT returns - <B>Hindu</B> </font></li>
</ul>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> But
what did the Revenue Secretary Chandrasekhar really say? He said the form is
only for this year and optional. He never said that it is withdrawn. In fact
this has been the government's stand right from the beginning. The press note
issued by the CBDT clearly said,</font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><B>"</B>With
a view to make return filing easier, the Central Government has notified on
1st June, 2006 a new income-tax
return form " Form 2F"<B> for
Assessment Year 2006-07." </B>And it was made optional. </font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Even
the amended rule says, <B>the assessee shall also have the option of filing
the return in Form No. 2F</B></font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So
the Revenue Secretary was simply clarifying the position which was clarified
on the day the notification was issued.</font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><B>4%
Special Additional duty and confusion relating thereto. </B></font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
4% additional duty had created quite a lot of confusion and there were varied
opinions from experts. To refresh, you can have a look at some of our stories.</font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.<a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=683">
ADMISSIBILITY OF CENVAT OF CVD IF PAYMENT ADJUSTED THROUGH DEPB?</a><B> - <U>By
S K Bhardwaj </U></B></font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.
<strong> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3%60%22wsid=2832">Drawback
when inputs are imported availing DEPB - yet another faux pas from the Board
</a></strong></font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.<a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=2972%20">
DEPB Vs Cenvat Credit - Live and kicking!</a> <B><U>: By R <ST1:PERSONNAME w:st="on">Raghavendra
Rao </U></B></font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.<a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3484">
Additional CVD on DEPB imports!</a> <B><U>: By Swamy Associates</U></B></font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.<a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3535%20">
Additional CVD of 4% under DEPB : Exemption and debit to DEPB scrips :</a> <B><U>By
J M Kishore </U></B></font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Finally Board
has addressed the issues and issued certain clarifications. Board's logic and
reasons may be left out to avoid any further confusion and these are the clarifications
from the Board.</font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
special CVD of 4% is not leviable in case of imports under advance licence,
EOU and SEZ schemes. </font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
the case of imports under EPCG Scheme it may be noted that notification No.97/2004-Customs
dated 17.9.2004 governing imports under the said scheme itself provides for
exemption from additional duty whether the levy is under section 3(1) or 3(5)
of the Customs Tariff Act, 1975. <B>The special additional duty of 4% is, therefore,
not leviable on imports under EPCG Scheme.</B></font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><B>DEPB,
Target Plus, Served from India, DFCE and Vishesh Krishi and Gram Udyog Yojana
schemes</B>, when goods are imported under any of these schemes, the exemption
from duties in terms of the respective customs notifications shall only be available
if the element of 4% special CVD is debited in the duty scrips / entitlement
certificates</font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
the case of import of goods under DFRC Scheme, the element of 4% CVD shall be
payable because, the notification grants exemption from basic duty only.</font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">the
4% CVD duty debited in DEPB, DFCE, Target Plus etc. certificates may be allowed
to be taken back as drawback (brand rate)</font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
may be mentioned here that under the Foreign Trade Policy, additional customs
duty (CVD) debited in DEPB scrips/certificates issued under reward schemes is
allowed to be taken as cenvat / drawback</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=25&filename=notification/custom/2006/cuscir06_18.htm">CBEC
Circular No. 18/2006-Cus dated 5th June, 2006.</a></U></font></P>
<P align="center" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><B>Due
date extended for electronic filing of form 24Q for last quarter </B></font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT
has extended the due date for electronic filing of quarterly statement of TDS
in form 24Q for the last quarter to 31-July-2006. It is clarified that the due
date for filing the statement in paper format shall remain 15<SUP>th</SUP> June
2006. </font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><U><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/cbdtorder.htm">CBDT
order under Section 119(2a) dated 8th June 2006. </a></U></font></P>
<P align="center" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><B>Help
Centres set up to assist taxpayers in preparing returns </B></font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Income
Tax Department is setting up Help Centres to assist the tax-payers in preparing
returns of income, challans and filing PAN applications. The Help Centres will
also assist tax-payers in computing taxable income and income tax payable. They
will be open on working days and will start working from 15th June to 14th August
2006.</font></P>
<P align="center" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Exemption
To Imported News Print</strong></font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">AS
PER Notification No.21/2002-cus, imported news print was subject to the concessional
rate of 5%. Now this concession is limited to certain varieties of news print
only.</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=23&filename=notification/custom/2006/ctariff06_055.htm">Notification
No. 55/2006-Cus dated june 6,2006. </a></U></font></P>
<P align="center" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Imports
Fromnepal - Exemption From Acd</strong></font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Certain
goods like Rice, Pulses, Jaggery, Raw wool, Ayurvedic and Herbal medicines imported
from Nepal
are exempted from additional customs duty.</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=23&filename=notification/custom/2006/ctariff06_056.htm">Notification
No. 56/2006-Cus dated june 7, 2006 .</a></U></font></P>
<P align="center" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Pruners
Exempted From Excise Duty</strong></font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All
hand tools falling under heading 8201, except Pruner were exempted while notification
No.5/2006-Central Excise dated 1-3-2006. Now Pruners are also exempted. </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=30&filename=notification/excise/2006/etariff06_033.htm">Notification
No.33/2006- Central Excise dated June 6, 2006.</a></U></font></P>
<P align="center" ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Certificate
Of Origin - Buyers' Details Not Required</strong></font></P>
<P align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exporters
have represented to the DGFT the difficulties in filling up certain columns
while applying for Certificate of Origin from certain agencies. By disclosing
the address of the buyer abroad and the details of the product being exported,
the confidential and sensitive information becomes public. Reacting to the representation,
the DGFT has clarified that these details need not be furnished at the time
of application and they can be filled up after the certificate is signed by
the authorized agencies.</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/dgft06cir008.htm">DGFT
Circular No. 8 (RE-2006)/2004-09 ,Dated:June, 6 2006 </a></U></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>
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