TIOL-DDT 434 · 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
434</font><br>
24 08 2006<br>
Thursday</b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">It’s
<i>Imp</i> not <i>Fabrics Imp</i> – Customs corrigendum</font></strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Notification
No. 52/2006-Customs, dated the 31st May 2006 an anti dumping duty is imposed
on silk fabrics exported by <st1:State><st1:place><b>Sichuan</b></st1:place></st1:State><b>
Silk Fabrics Imp. & Exp. Group Co. Ltd. </b>Obviously the government recently
realized that the name of the company is <st1:State><st1:place><b>Sichuan</b></st1:place></st1:State><b>
Silk Imp. & Exp. Group Co. Ltd. </b>That is there is no word ‘fabrics’ in
the name of the company. A corrigendum is issued to correct this mistake. </font></p>
<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/corrig.htm">CORRIGENDUM
in F.No.354/64/2006-TRU Dated: August 21, 2006</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Exemption
to </font></strong><font color="#006600"><b>SAMYUKTA Programme of the Ministry
of Defence – another dead notification revived.</b></font></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But aren’t they
already exempted? Please refer to <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3212">TIOL-DDT
291 - 27 01 2006</a><b><XXP></XXP>, </b>wherein we observed, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Machinery, equipment,
instruments, components, spares, jigs and fixtures, dies, tools, accessories,
computer software, raw materials and consumables required for the purpose of
SAMYUKTA Programme of the Ministry of Defence, when imported are exempted from
Customs duties as per NOTIFICATION NO. 39/1996-Customs, DATED : July 23, 1996
(Sl. No. 17 of the table)<XXP></XXP></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However there is
a small problem. The exemption is valid only till 1<sup>st</sup> December 2005.
And our good Board as usual forgot about this notification. And so they went
into history on 1<sup>st</sup> December 2005, but defence projects cannot simply
go into oblivion. The Board obviously realised this a little late and now the
validity of these notifications are extended up to 1<sup>st</sup> June 2006.
<XXP></XXP></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What happens to
the clearances/imports from 1<sup>st</sup> December 2005 to 24<sup>th</sup>
January 2006? Audit Notes, Show Cause Notices and litigation? One such case
actually went right up to the Supreme Court. <XXP></XXP></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Can’t the Board
have a simple mechanism to monitor the sun set notifications?”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board has again
failed. The notification expired on 1<sup>st</sup> June 2006 and the Board failed
to realize this till 21.8.2006; that is for two months and 20 days. Last time
this lapse was only for one month and 23 days. Now this exemption is extended
up to 1st day of December 2007. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We again ask the
same questions:-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What happens to
the clearances/imports from 1st June 2006 to 20<sup>th</sup> August 2006? Audit
Notes, Show Cause Notices and litigation? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Can’t the Board
have a simple mechanism to monitor the sun set notifications?”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There should be
a similar Central Excise notification, which we could not get for love or money.
Hopefully, we will get it tomorrow.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Shall we remind
the Board before 1.12.2007 to extend this notification?</b></font></p>
<font size="2" face="Verdana, Arial, Helvetica, sans-serif"><XXP></XXP> </font><font size="2">
<p><font face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_081.htm">NOTIFICATION
NO. 81/2006-Cus., Dated: August 21, 2006</a></u></font></p>
<p align=center><font face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Anti
dumping duty on fully drawn yarn</font></b></font></p>
</font>
<div>
<div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The government
has imposed anti dumping duty on import of fully drawn yarn or fully oriented
yarn or spin drawn yarn or flat yam of polyester (non-textured and non-POY)
and other yarn originating in or exported from Indonesia, Republic of Korea,
Malaysia and Chinese Taipei.</font></p>
</div>
</div>
<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_082.htm">NOTIFICATION
NO. 82/2006-Customs, Dated : August, 21, 2006</a></u></font><font size="2">
</font></p>
<font size="2"><p align=center><font face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Nearly
one lakh Indians are millionaires </font></b></font></p>
<p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif">The number of millionaires
in the country has increased by 67.6 per cent in the last five years; the
LokSabha was informed on Wednesday by Minister of State for Planning M V
Rajasekharan. He said that the number of IT assessees (individuals) with
income of Rs 10 lakh and above was 91,877 in 2004-05 against 54,805 in 2000-01,
which showed an increase of 67.6 per cent. Referring to the World Bank's
World Development Indicators 2006, the Minister said the proportion of population
living on less than one dollar per day has also declined to 34.7 per cent
in 1999-2000 compared to 47 per cent in 1994. </font></p>
<p align=center><font face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Is
SEZ all about real estate business?</font></b></font></p>
</font>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For
once the very articulate FM is not on a strong wicket. His politically more
articulate colleague in the commerce ministry seems to be having an upper
hand. The FM’s view
that more and more SEZs will only drain the state finance is not well
received in the commerce ministry. For now KamalNath seems to have an upper
hand over the FM and if the FM is serious about the fiscal conditions of
the country, he may end up losing his job.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However
he has support from another articulate intellectual though from the left – Mr.
SitaramYechuri. </font></p>
<font size="2">
<p><font face="Verdana, Arial, Helvetica, sans-serif">Mr. Yechurisaid:-</font></p>
</font>
<blockquote>
<p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ The
issue of sanctioning SEZs must be seriously considered by the government.
</font></font></p>
<p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ The
government will lose Rs.970 billion in tax revenues as it is giving high tax
incentives to the SEZs</font></font></p>
<p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ a report
compiled by the National Institute of Public Finance and Policy (NIPFP) projected
a loss of more than Rs.970 billion during 2005-10 because of SEZs.</font></font></p>
<p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ only
25 percent of the land allotted for the SEZs would be used for manufacturing.
</font></font></p>
<p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ The
rest would be used for commercial purposes, which means the <b>SEZs are essentially
for real estate business.</b></font></font></p>
<p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ the
government had already sanctioned 150 SEZs across the country and there were
demands and proposals to set up more than 200 zones. It shows that how lucrative
the offer is.</font></font></p>
<p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">On the
other hand, the Commerce Minister KamlaNath told the RajyaSabha that</font></font></p>
<p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ the
net revenue gain to the government as a result of Special Economic Zones (SEZs)
resulting in increased economic activity would be Rs 44,400 crores.</font></font></p>
<p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ computations
of revenue losses were fallacious</font></font></p>
<p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ there
would, in fact, be a huge net gain of incremental taxes due to increase in
economic activity, rather than revenue loss</font></font></p>
<p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ The
SEZ policy of the government had generated tremendous interest among investors,
both in <st1:place><st1:country-region>India</st1:country-region></st1:place>
and abroad</font></font></p>
<p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ it was
the states which were pushing for SEZs as they recognised the potential of
the Zones to generate employment opportunities and boost economic activities
in the states.( as in real estates)</font></font></p>
<p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ the
Centre was neither setting up any SEZs nor acquiring any land.</font></font></p>
<p><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ State
governments forwarding the proposals for SEZs acquire the land or the developers
acquire the land with the approval of the state governments.</font></font></p>
<p><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ As on
date, 150 formal approvals have been given for setting up SEZs, involving
total area of 26,800 hectares. Of this, 37 approvals are for projects proposed
by state industrial development corporations over an area of 9140 hectares.
In all these cases, the land was already in the possession of these corporations….
Even in other cases, the applicants were holding the land at the time of applications
and there are hardly any cases involving fresh land acquisition</font></font></p>
<p><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ in the
last three years, exports from the SEZs had increased from Rs. 13,854 crores
to Rs 22,510 crores, an increase of 63 %.</font></font></p>
<p><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">++ Presently,
SEZs were providing employment to about 1.23 lakh persons. With the increase
in the number of operational SEZs, after notification of the SEZ Rules, the
increase in employment in the SEZs would get further accelerated</font></font></p>
</blockquote>
<font size="2">
<p><font face="Verdana, Arial, Helvetica, sans-serif"><b>It’s clash of the Titans,
but ultimately who’s the winner? The real estate broker?</b></font></p>
<p><font face="Verdana, Arial, Helvetica, sans-serif">If you want to make a quick
buck, buy a plot in an SEZ or somewhere near one. Also see our editorial. </font></p>
</font>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
tomorrow with more 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></span></font></p>
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