TIOL-DDT 399 · the untouched capture
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<p > <b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
399</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
05 07 2006<br>
Wednesday</font></b></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Service
Tax on post offices – Board clarification opens a Pandora’s box</font></strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
order to take the postal department out of the purview of Service Tax, Board
has issued a circular which is bound to result in more damages than solutions.
Please see our <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3937">Special
Column </a>for a detailed analysis of the Board’s latest <i>faux pas.</i></font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=41&filename=notification/servicetax/2006/sercir83.htm">Circular
No. 83/1/2006-Service Tax. Dated </a></u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=41&filename=notification/servicetax/2006/sercir83.htm"><u>4<sup>th</sup>
July, 2006.</u></a></font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Navi</font></b><font color="#006600"><b>
Mumbai made warehousing station</b></font></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Goods can
be cleared to a warehouse in certain specified places for onward export from
there. Board specifies the cities/places where these export warehouses can be
set up. Now Navi Mumbai is added to the list. The places where the warehouses
can be set up are Ahmedabad, Bangalore, Kolkata, Chennai, Delhi, Hyderabad,
Jaipur, Ludhiana, Mumbai, the districts of Pune and Raigad in the state of Maharashtra,
the district of East Midnapore in the state of West Bengal, the district of
Indore in the state of Madhya Pradesh, the taluka Ankleshwar in the district
of Bharuch in the state of Gujarat and Navi Mumbai in the district of Thane
in the state of Maharashtra.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Why the
restrictions on the places where the warehouses can be established and why are
important ports like Mangalore, Cochin and Visakhapatnam not included in the
list? Why can’t every port/ICD be included?</font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=31&filename=notification/excise/2006/excircular830.htm">CBEC
CIRCULAR NO. 830 /07/2006-CX, Dated: July 3, 2006</a></u></font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Settlement
Commission and export obligation</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We had
carried the issue several times. Board had clarified that Settlement Commission
cannot settle cases involving Export Obligation. From 1.4.2005, DGFT accepted
the Settlement Commission and its jurisdiction to settle EO cases. Irrespective
of what these two great agencies thought, the Commission had been settling these
disputes. After 1.4.2005, DGFT has no problem if EO cases are settled by the
Commission. But what about cases already settled by the Commission prior to
1.4.2005?</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the
DGFT has clarified that those cases also should be treated on apr with the cases
settled after. ‘Before or after’ it makes no difference; it never did for the
Commission. What is CBEC’s view?</font></p>
<p ><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/dgft06cir012.htm">CIRCULAR
NO. 12 (RE-06)/2004-2009 Dated: July 3, 2006 + </a><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=372">(Also
see related story) </a></u></font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Export
of pulses – longer prohibition</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT had
by Notification No. 15/2006 dated 27<sup>th</sup> June, 2006 had prohibited
export of pulses for six months. Now within a week the notification is amended
to keep the prohibition till the end of the financial year.</font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2006/dgft06not017.htm">NOTIFICATION
NO. 17 (RE-2006)/2004-2009, Dated: July 3, 2006</a></u></font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Sooner
or later, we will get you - </font></b></font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>FM
speak</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It was
the annual conference of Chief Commissioners of Income tax. After giving his
pep talk to the big bosses of income tax, Mr. Chidambaram shared his plans with
the press:</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ The
department will pursue every single person whose names are thrown up by AIR...sooner
or later, they will be reached.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ My
advice to all those who have made large transactions like buying property over
Rs. 30 lakh, buying mutual funds over Rs. 2 lakh in a year or credit card payment
exceeding Rs. 2 lakh yearly, please file tax returns before the last date of
July 31.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ These
are not poor, lower middle-class or salaried people. These are high net worth
people. If not today, in three, six or nine months, income-tax people will reach
the parties.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ While
there will be no harassment if they file returns but, if not, "et me say
the Income-tax Department will find ways to reach them.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ the
IT Department would adopt a four-pronged strategy to identify the person first,
then check if the person had a PAN, then find out if the returns had been filed
and if so, whether the transactions were reflected in the returns.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ We
have no interest in harassing or squeezing anyone. We simply want people to
become more tax compliant.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ But
I think there are a lot of rich people still not paying the taxes that they
should be paying. The salaried class are obviously paying. But I think a large
number of individuals who ought to be paying the correct taxes, are not complying.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ the
new Income-tax Bill would be ready by the end of this month. The simplified
IT Bill was aimed at making tax laws more user-friendly so as to reduce the
scope for litigation. </font></p>
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<TD><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><i><font color="#0000FF">faux
pas</font>-</i></b><strong> pronounced as <i>fau pa</i></strong></font></TD>
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<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A social blunder.
a false step as in the latest Board circular on Service Tax.</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">[French
: faux, false + pas, step.]</font></p>
<p ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Tomorrow with more </font><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT
</font></p>
<p ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice Day. </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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