TIOL-DDT 450 · the untouched capture
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<p align="justify"> <font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="3">TIOL-DDT
450</font></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><br>
15 09 2006<br>
Friday</strong></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Foreigners
roaming in India – pay Service Tax </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board
proposes to issue a circular to clarify that</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Domestic
telecom operators providing international roaming service to in-bound roamers
are liable to pay service tax on the amount received through the home network
on account of service provided to such international roaming subscriber.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
proposed circular contains profound details on ‘roaming’</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Roaming is a general term in wireless telecommunications that refers to the
extending of connectivity service in a location that is different from the
location/network area of home network and it occurs when a subscriber of one
wireless service provider uses the facilities of another wireless service
provider.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The international roaming refers to the ability of subscriber to move to a
Foreign Service provider's network.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
To enable an in-bound roamer to hook on to the visited network and avail telephone
service, a temporary internal number is assigned by such network.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Any call made to/from a roaming mobile is routed through the visited network
like any other call.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The details of usage of service by such a subscriber captured and billing
account is transferred to the home network for receiving the payments.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The home operator then bills these calls to his subscribers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Roaming fees are traditionally charged on a per-minute basis and they are
typically determined by the service provider's pricing plan.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
relation to Service Tax.</font></p>
<blockquote>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
In terms of the provisions of the Finance Act, 1994, the telephone connection
service means 'any service provided to a subscriber by the telegraph authority
in relation to a telephone connection';</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
the subscriber means 'a person to whom any service of a telephone connection
has been provided by the telegraph authority'.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
During international roaming the visiting network provides service to a
person treating it as a subscriber on a temporary basis for the period in
which service is availed by such person from visited network.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Therefore, during this period, the Indian telecom service provider provides
telephone service to International roamer.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The only difference is that the payment is not directly received from the
subscriber but is routed through the home network.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
However, this does not alter the essential characteristics of service, which
is of a telephone connection.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
This service to inbound roamers is delivered and consumed in <st1:country-region><st1:place>India</st1:place></st1:country-region>
and therefore can not be treated as export of service.</font></p>
</blockquote>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government
can hope to get quite a lot of money from the mobile operators – demand, penalty
and interest for the last five years?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/draftcircular.pdf">See
Draft Circular </a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service
Tax ads on radio</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before
I take you to the next swinging song, do check up if you have paid your service
tax, the tax is a song and paying it as simple as singing in the toilet, put
on your bathing towels and rush to the nearest Service Tax office if you have
any doubts about the lyrics or tunes and believe me they are waiting eagerly
to teach you whydontyoutryit and here’s the …. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You
may hear this kind of announcements in your local FM radio soon. The Directorate
of Publicity and Publications has realized the tremendous revival of radio and
wants to use it to reach target segment of service providers and general public.
The Directorate has called for proposals for production of radio spots.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
directorate is also responsible for publishing the government notifications.
Can they arrange to get the notifications read over the radio?</font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Export
of jewellery - Minimum value addition reduced</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT
has reduced the minimum value addition required for export of jewellery. The
existing and revised rates are as given below.</font></p>
<div align="justify">
<table width="450" border=1 align="center" cellpadding=3 cellspacing=0>
<tr>
<td width=57 valign=top> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S.No.</font></strong></p></td>
<td width=231 valign=top> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Item
of Export</font></strong></p></td>
<td width=205 colspan=2 valign=top> <p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Minimum
Value Addition</font></strong></p></td>
</tr>
<tr>
<td width=57 valign=top> <p align="center"></p></td>
<td width=231 valign=top> <p></p></td>
<td width=97 valign=top> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Existing
</font></p></td>
<td width=108 valign=top> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revised</font></p></td>
</tr>
<tr>
<td width=57 valign=top> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a)
</font></p></td>
<td width=231 valign=top> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Plain
gold/platinum /silver jewellery/ Articles and ornaments like Mangalsutra
Containing gold and black beads/ Imitation stones, precious stones and
semi precious stones, cubic zirconia , diamonds, precious & semi-precious
stones.</font></p></td>
<td width=97 valign=top> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.5%</font></p></td>
<td width=108 valign=top> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4%
</font></p></td>
</tr>
<tr>
<td width=57 valign=top> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b)
</font></p></td>
<td width=231 valign=top> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All
types of Studded gold/ platinum/ silver Jewellery and articles thereof</font></p></td>
<td width=97 valign=top> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15%
</font></p></td>
<td width=108 valign=top> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.5%
</font></p></td>
</tr>
<tr>
<td width=57 valign=top> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c)
</font></p></td>
<td width=231 valign=top> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any
jewellery/ articles manufactured by fully mechanised process</font></p></td>
<td width=97 valign=top> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3%
</font></p></td>
<td width=108 valign=top> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2%
</font></p></td>
</tr>
<tr>
<td width=57 valign=top> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d)
</font></p></td>
<td width=231 valign=top> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gold/
silver/ platinum medallions & coins (excluding the coins of the
nature of legal tender)</font></p></td>
<td width=97 valign=top> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3%
</font></p></td>
<td width=108 valign=top> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2%
</font></p></td>
</tr>
<tr>
<td width=57 valign=top> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">e)
</font></p></td>
<td width=231 valign=top> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gold/
silver /platinum findings/ mountings manufactured by mechanised process</font></p></td>
<td width=97 valign=top> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5%
</font></p></td>
<td width=108 valign=top> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3%
</font></p></td>
</tr>
</table>
</div>
<p align=justify><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/dgft06pn053.htm">PUBLIC
NOTICE NO. 53( RE-2006)/2004-2009, Dated: September 13, 2006 </a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Loss
of EP copy of shipping bill and bank guarantee – How to get the scrips?</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
DGFT has prescribed the procedure in such cases by adding para 2.62 and 3.63
in the HOP.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Where
EP copy of the Shipping Bill has been lost, claim under the VKGUY/ Focus Market/
Focus Product Schemes can be considered subject to submission of the following
documents:-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a)
A duplicate/certified copy of the Shipping Bill issued by the Customs Authority
in lieu of original; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b)
An application fee equivalent to 2% of the entitlement in respect of lost Shipping
Bills. However, no fee shall be charged when the Shipping Bill is lost by the
Government agencies and a documentary proof to this effect is submitted; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c)
An affidavit by the exporter about the loss of Shipping Bills and an undertaking
to surrender it immediately to the concerned Regional Authorities, in case the
same is found subsequently. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d)
An indemnity bond by the exporter to the effect that he would indemnify the
Government for the financial loss if any on account of duty credit issued against
lost Shipping Bills. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Customs Authority, before allowing clearance, shall ensure that the benefit/duty
credit against the same shipping bill has not been availed. The claim against
the lost Shipping Bill shall be preferred within a period of six months from
the date of release of duplicate copy of Shipping Bill and any application received
thereafter shall be rejected.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Where
original bank certificate has been lost, claim under VKGUY/ Focus Market/ Focus
Product Schemes can be considered subject to submission of the following documents:-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">a)
A duplicate copy of the Bank Certificate issued by the bank in lieu of original
lost. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">b)
An application fee equivalent to 2% of the entitlement, in respect of lost Bank
Realisation Certificate.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">c)
An affidavit by the exporter about the loss of Bank Certificate and an undertaking
to surrender it immediately to the concerned Regional Authorities, in case the
same is found subsequently. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">d)
An indemnity bond by the exporter to the effect that he would indemnify the
Government for the financial loss if any on account duty credit issued against
lost Bank Certificate. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
claim against the lost Bank Certificate shall be preferred within a period of
six months from the date of realization and application received thereafter
shall be rejected. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> What
happens if both the Shipping bill and bank guarantee are lost? Simple follow
the procedure applicable to both.</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=47&filename=notification/dgft/2006/dgft06pn054.htm">PUBLIC
NOTICE NO. 54( RE-2006)/2004-2009, Dated: September 13, 2006 </a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Agencies
authorized to issue preferential certificates</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
agencies authorized to issue Preferential Certificate of Origin as per <st1:place>Para</st1:place>
2.21.1 are also authorized to issue Non-Preferential Certificate of Origin and
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>Indian
Chemicals Manufacturers Association</i>, Mumbai which is authorised to issue
non preferential certificate is now Indian Chemical Council.</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=47&filename=notification/dgft/2006/dgft06pn055.htm">PUBLIC
NOTICE NO. 55( RE-2006)/2004-2009, Dated: September 13, 2006 </a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Dell
to locate manufacturing unit in Tamil Nadu</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
world’s largest computer maker Dell Inc is all set to set up its first manufacturing
unit in <st1:place><st1:country-region>India</st1:country-region></st1:place>
in Tamil Nadu and an agreement has been signed with the TN government yesterday.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
will be Dell's third manufacturing plant in Asia, after those in <st1:City>Penang</st1:City>,
<st1:country-region>Malaysia</st1:country-region>, and <st1:place><st1:City>Xiamen</st1:City>,
<st1:country-region>China</st1:country-region></st1:place>.</font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">"When
even one American -- who has done nothing wrong -- is forced by fear to shut
his mind and close his mouth, then all Americans are in peril." - Harry
S. Truman</font></strong></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Monday with more DDT </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice week end. </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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