TIOL-DDT 424 · the untouched capture
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<p > <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT
424</font><br>
9 08 2006<br>
Wednesday</b></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1.16
Lakh Crores of IT Arrears. – MOS admits, most of it difficult to collect.</strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
amount of outstanding income tax demand in the country is Rs.1,16,766 crores
as on 1st April, 2006. Out of the total outstanding income tax demand, an amount
of Rs.11,741 crores has been targeted to be recovered in the year 2006-07.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“The
basis for setting the targeted amount is a realistic approach looking into the
past history and also the fact <b>that the major portion of the outstanding
income tax demand is difficult to recover</b>.”</font></p>
<p align="justify"
><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This was informed
to Parliament by S.S. Palanimanickam, Minister of State for Finance.</font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income
Tax returns in post offices – costs Rs.3.5 Crores – will Service Tax get a share?</strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Indian Postal department has made a cool 3.5 Crores in less than a week from
collecting income tax returns. The post offices collected 3,57,276 IT returns
in the six days of July 2006 and they were given a hundred rupees for each return,
which of course is not very happily accepted by the IT employees, who feel that
the post is unduly pampered.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
will the Service Tax department get a share of this? Are the post offices liable
to pay Service Tax on the 3.5 Crores collected by them?</font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>States
may levy tax on 67 services</strong></font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The MOS Finance informed the Rajya Sabha that, </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
issue of ‘Giving the States the right to collect Service Tax on selected services
of intra-State nature’ is being discussed with the States in the context of
working out a package for compensating the States for the revenue loss which
will arise as a result of the proposed phasing out of the Central Sales Tax
(CST). The issue under consideration is only that of the transfer of right to
collect and appropriate the Service Tax proceeds from certain Services and
not for transfer of right to levy the tax. The right to levy Service Tax continues
to remain with the Central Government as per the Constitutional provisions.
The Empowered Committee of State Finance Ministers (EC) has proposed transfer
of 124 Services to the States (including 67 Services psently being taxed by
the Central Government) considered to be of intra-State nature by the EC.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
proposal is only for transfer of selected Services of intra-State nature to
the States.The proposal is under consideration of the Government.</font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Explosive
port</strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Karanja
port has been declared as a customs port for unloading of explosives and the
loading of explosives.</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=24&filename=notification/custom/2006/cnt06_086.htm">NOTIFICATION
NO. 86/2006 (N.T.), Cus., Dated: August 8, 2006</a></u></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Paper
for magazine printing exempted</strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Light
weight coated paper weighing upto 70 g/m2, imported by actual users for printing
of magazines is exempted from 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_079.htm">NOTIFICATION
NO. 79/2006-Cus., Dated: August 8, 2006</a></u></font></p>
<p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Nepal
imports - exemption from CVD</strong></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Government has exempted a large number of Nepa goods from Additional duty of
customs. The goods should have been manufactured in Nepa wholly from Nepalese
materials or Indian materials or Nepalese and Indian materials.</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One
of the conditions is:-</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
products worked on or processed as a result of which the total value of materials,
parts or produce originating from countries other than India or Nepal or of
undetermined origin used - </font></p>
<p align=center>
<table width=450 border=1 align="center" cellpadding=0 cellspacing=0>
<tr>
<td width="6%" > <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i)
</font></p></td>
<td width="93%" > <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">does
not exceed seventy per cent. in any time period , which commences on the
6 th day of March in a given calendar year and ends on the 5 th day of
March of the subsequent calendar year ; and </font></p></td>
</tr>
<tr>
<td width="6%" > <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii)
</font></p></td>
<td width="93%" > <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">the
final process of manufacture is performed in Nepal . </font></p></td>
</tr>
</table>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif"></p> </font><font size="2">
</font>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you have any
doubt as to </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">what
the value is, that is explained;</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Explanation
- </b>For the purpose of this notification, the value of materials, parts or
produce originating from countries other than India or Nepal shall be the CIF
value at the time of importation of materials, parts or produce, at the point
of entry in Nepal, where this <b>can be proven to the satisfaction</b> of the
Assistant Commissioner of Customs or Deputy Commissioner of Customs, or the
earliest ascertainable price paid for the materials, parts or produce of undetermined
origin in Nepal where the working or processing takes place. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But
how on earth can this be proven to the satisfaction of the Assistant Commissioner/Deputy
Commissioner? But that is how government notifications are made!</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_078.htm">NOTIFICATION
NO. 78/200</a></u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_078.htm"><u>6-Cus.,
Dated: August 8, 2006</u></a></font></p>
<font size="2">
<p align=center ><font color="#006600" face="Verdana, Arial, Helvetica, sans-serif"><strong>Export
of sugar and pulses to Bhutan – restrictions not to apply.</strong></font></p>
<p align="justify" ><font face="Verdana, Arial, Helvetica, sans-serif">The prohibition
of export of pulses and sugar stipulated in Notification Nos, 15 and 18/2006
are not to apply to exports to Bhutan.</font></p>
<font face="Verdana, Arial, Helvetica, sans-serif"></p>
<p ><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2006/dgft06not026.htm">DGFT
Notification Nos. 26</a> <strong>and</strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2006/dgft06not027.htm">
27(RE-06)/2004-2009, Dated: August 7, 2006</a></u></p>
</font></font>
<p align="justify" ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><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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