TIOL-DDT 417 · the untouched capture
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<p align="justify" > <b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
417</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
31 07 2006<br>
Monday</font></b></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Income
Tax – Audit Report for charitable organisations – Form prescribed.- Gods need
not disclose anonymous donations.</font></strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The
Income Tax department has notified </strong><b>FORM NO. 10BB as the form
for Audit report under section 10(23C) of the Income-tax Act in the case
of any fund or trust or institution or any university or other educational
institution or any hospital or other medical institution.</b> The amount
of anonymous donations are also to be declared. However this will not
apply to any trust or institution created or established wholly for religious
purposes.</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=35&filename=notification/cbdt/2006/it06not0194.htm">NOTIFICATION
No. 194/ 2006, dated 25-7-2006</a></u></font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Importer
Exporter Code Number (IEC) –New forms notified</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ replaced
the IEC Application format contained AAYAAT- NIRYAAT FORM with a new one</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ Replaced
the Format of bank certificate for issue of IEC</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To ensure
easy transition and deal with the applications in the pipeline, it has been
decided that DGFT offices will accept the IEC applications in the old as well
as new format till August 14 2006. Thereafter applications can be made only
in the new format.</font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2006/dgft06pn037.htm">PUBLIC
NOTICE NO. 37-(RE-2006)/2004-2009, Dated: July 27, 2006</a></u></font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">And
simplifies application process for issuance of the IEC number</font></strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The new
system relies on a much simpler form and an optional on-line application module
for issuance of IEC No.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An applicant
may now choose one of the two options for application submission:</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1. File
an online application and submit a physical copy of the application by taking
a printout of the online application.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 2. Submit
a physical copy of the application directly at the regional DGFT office.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>The
process</b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> i) Applicants
can file an on-line application at the DGFT web-site <a href="http://dgft.gov.in/">http://dgft.gov.in</a>.
On-line form has been designed to ensure feeding of all the required information
by prompting user wherever a field is left blank. Applicant has to submit scanned
copies of PAN and bank certificate along with their application. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ii) There
are 2 options for payment of fee. (A)If fee is paid by Demand Draft, IEC will
be generated only after receipt of the physical copy of the application. (B)
If IEC application fee is paid through Electronic Fund Transfer facility, IEC
number will be generated by the licensing office automatically and the number
can be viewed online by the applicant.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
iii) On the receipt of physical copy of the application, the same IEC will be
printed in 24 hours time and dispatched to the firm. </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/dgft06cir015.htm">Policy
Circular No.15 (RE-2006)/2004-2009 Dated: 27th July, 2006</a></u></font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Housing
Society liable to Service Tax under Club or association – Mumbai Service Tax
</font></strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The other
day an agitated lawyer called up and said, these Service Tax guys want to collect
Service Tax on the charges collected by ‘our’ flat owner’s association. She
was worried that the charges collected are from members and that too for their
common good. “Where is the question of service?”, she wondered. She was convinced
that service rendered by the association to its own members was not taxable.
</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Mumbai
Service Tax Commissioner had sometime ago clarified that,</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ under
the law any person or body of persons, by whatever name called, whether registered
or not or whether incorporated or not, providing services, facilities or advantages
for a subscription or any other amount to its member is to pay service tax for
rendering such service, facilities or advantages.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ Services
can be numerous, such as security of premises, upkeep of the premises, maintenance
of common passage, maintenance or upkeep of parking facilities, maintenance
and upkeep of lifts, etc.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ The
commercial or non-commercial nature of such body has no bearing on the levy
of service tax on the services/facilities/advantages provided by such body.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ Further,
the legal provision provide for tax even when the services, etc., are provided
by such body to its own members.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ A housing
society which is registered under the Co-operative Societies Act is a legal
entity, which provides services and facilities to its members for a consideration
and accordingly would fall within the scope of the definition.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> ++ The
value of taxable services is the gross amount charged by the service provides,
i.e., Housing Society.</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/tradenotice.htm">F.No.
V/ST/HQ/TECH/REF-25/06/1596 of the COMMISSIONER OF SERVICE TAX, MUMBAI Dated
: March 7, 2006</a></u></font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Malaysian
Magistrate charged with corruption in a customs case found inIndia – after 19
years</font></strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
lady judge of Malaysia, was arrested by the Anti-Corruption Agency in 1987 for
allegedly accepting 25,000 ringgit to acquit three Indonesians facing charges
under the Customs Act. She disappeared in India while on bail and is reported
to have been spotted in Chandigarh living comfortably. </font></p>
<p align="center" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>The
Law will ultimately get you!</b></font></p>
<p align="justify" ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Tomorrow with more DDT </font></p>
<p align="justify" ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice day. </font></p>
<p align="justify" ><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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