TIOL-DDT 476 · 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 476</font><br>
25 10 2006<br>
Wednesday</b></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Equipment
for ASTRA exempted.</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The
Government has exempted </strong><i>Machinery, equipment, instruments, components,
spares, jigs and fixtures, dies, tools, accessories, computer software, raw
materials and consumables required for the purpose of Project ASTRA of the Ministry
of Defence </i>from the whole of the Customs duty.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similarly
Equipment and stores used for the systems and sub-systems of Project ASTRA is
exempted from excise duty.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
exemptions are valid only up to August 31<sup>st</sup> 2012.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_110.htm">NOTIFICATION
NO. 110/2006-Cus., Dated: October 20, 2006</a> and <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2006/etariff06_042.htm">NOTIFICATION
NO. 42/2006-Central Excise, Dated: October 20, 2006</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ISO
certification agencies - change</strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT has
notified Sai Global Ltd, Mumbai as a certification agency instead of “Quality
Assurance Service”</strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2006/dgft06pn064.htm">PUBLIC
NOTICE NO.64(RE-2006)2004-09, Dated: October 20, 2006</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income
tax returns – last date extended</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The
CBDT has extended the date for obtaining</strong> the report of audit under
section 44AB of the Income-tax Act, 1961(this is for the audit report for businesses
having turnover of more than Rs.40 lakhs and professionals having more than
Rs.10 Lakhs income) and filing the return of fringe benefits from 31<sup>st</sup>
October to 30<sup>th</sup> November 2006.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/cbdtdorder.htm">CBDT
F.No. 133/38/2006-TPL(Pt) dated the 24th October, 2006</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income
Tax Form amended</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Form
No.3B relating to audit report under section 35D(4)/35E{6) of the Income-tax
Act, 1961 is renumbered as Form No.3AE and some minor changes are made in the
IT Rules.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2006/it06not0288.htm">NOTIFICATION
NO. 288/2006, Dated : October 19, 2006</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Foreign
exchange transactions- RBI returns </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Reserve Bank of India has directed the banks to file returns of foreign exchange
transactions for the whole bank instead of filing it branch-wise. The RBI emphasizes
that the banks are required to ensure that the returns and statements submitted
to Reserve Bank reflect accurately and completely all the relevant foreign exchange
transactions undertaken by them during the reporting period. The banks are also
cautioned that failure on the part of the banks to furnish these returns accurately
and in a timely manner will be viewed seriously by the Reserve Bank and may
attract appropriate action in terms of section 10 and 11 of the Foreign Exchange
Management Act (FEMA), 1999.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=49&filename=notification/rbi/2006/rbi06cir010.htm">CIRCULAR
NO. 10/RBI, Dated: October 23, 2006</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Special
Exploitation Zones</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
Pakistani newspaper reported today about our SEZ,</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Special Economic Zones (SEZ) is a pseudonym for a new tsunami let loose on
the Indian working class and peasantry by the <st1:PlaceName>Indian</st1:PlaceName>
<st1:PlaceType>State</st1:PlaceType>.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
With the recent trend in government policies, this act is not a very big surprise,
but by far it is the most blatant and extreme form of exploitation inflicted
on the Indian poor by its own government.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The Act mandates 25 per cent of the land to be used for economic activity
or cash flow generating activity. The rest can just be real estate. When the
government takes 1,000 acres of good fertile agricultural land from farmers
and gives it to Reliance, Reliance can build houses or golf courses on 750
acres of it and it would be legal, as long as rest of the 250 acres is used
to generate economic activity, which could very well be IT centers and shopping
malls.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
These Zones would be alien lands within the Indian nation - twenty-one different
Indian laws are inapplicable within the Zone, one of the most important being
the Panchayat law.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The very core of democracy - the right to self- determination, the sovereignty
of the people living in these Zones will be taken away overnight. Almost all
governance of the Zones is the responsibility of the Development Commissioner.
Far from being elected by the people living in the Zones, this person will
be appointed directly by the Central Government.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
SEZs have been declared as a Public Utility Service - shopping malls, recreation
centers, golf courses included!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
This provision will easily be exploited to hire and fire workers, crack down
on organising and restrict all kind of union activity. There will be no respite
from unfair, exploitative business practices that many of the prospective
SEZ developers are known to practice even outside these zones.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
There has been no effort to check the SEZ experience in other countries. The
experience in China has been that of companies wrapping up their industries
once the tax holidays terminate. What happens then? The <st1:PlaceName>Indian</st1:PlaceName>
<st1:PlaceType>State</st1:PlaceType> waives off all revenue generating taxes
to encourage investment and when the time comes for the multinationals to
pay back, they can just wrap up and leave?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>++
</strong>One hundred-fifty Special Exploitation Zones have already been sanctioned.
This means 70,000 hectares of land is being grabbed as we read this.</font></p>
</blockquote>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Disciplinary
proceedings - </strong><b>Difference of opinion with CVC</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Central Vigilance Commission has observed that in a number of cases of disagreement
with the Commission’s advice, the Commission has not been informed about the
reasons for disagreement or whether a reference to the DOPT, as required under
the above instructions, was made. So now the CVC wants the CVOs to </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.
to ensure that before it is finally decided to disagree with the Commission’s
advice on further action on a complaint or on an investigation report, or in
a vigilance case, reference is made to the Department of Personnel in respect
of all such cases, where the appointing authority is the President or the disagreement
is due to UPSC’s advice.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.
note these instructions for strict compliance.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.
that wherever it has been finally decided to disagree with the Commission’s
advice, reasons for the same are communicated to the Commission along with a
final order in the case, to enable the Commission to decide about inclusion
of the case in its Annual Report.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Before
taking disciplinary action against government employees, the advice of the CVC
is obtained on the quantum of penalty.</font></p>
<p align="justify"></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is
the CVC’s advice binding on the Disciplinary Authority? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
Madras High Court order in January last year had held that ‘‘Any advice or opinion
to be sought from the CVC can be only on procedural matters and if any advice
is given in the matter of appreciation of evidence, proof of charges, or the
quantum of punishment, such advice shall be ignored and not be binding on the
disciplinary authority (the concerned Government office). Any regulation to
the contrary will be wholly without jurisdiction and inoperative.’’ </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Reacting
to this order, the then CVC remarked, ‘‘This ruling questions the basic fibre
of the CVC’s existence which which it has been operating since 1964. Till this
order is remedied it remains law and with it, our supervisory role vanishes
in one stroke.’’ </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When
the CVC’s advice is binding, what is the point in explaining to the CVC why
his advice has not been followed? Isn’t the order supposed to be a speaking
order and shouldn’t it explain why a particular punishment is awarded? </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/cvccir39.htm">CVC
Circular No.39/10/06 dated the 10th October, 2006</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Best
Customs officer</strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/cus.jpg" width="263" height="350" border="1" align="left"></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is Natalia
Pushkareva, Customs inspector in Siberia. She has just been declared as the
best officer based on a competition on professional competence. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The first stage
was held in each custom house of Siberia. The winners got to the final of the
contest. Customs officials competed in knowledge of the Customs Code, corrected
mistakes in a freight customs declaration. Moreover, the participants had to
make a presentation of one's town and custom house.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Natalia Pushkareva,
Krasnoyarsk</st1:City> customs inspector, showed her professional skills and
talents best of all. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The winner Natalia
is a 29 years old economics graduate working with Customs for the last seven
years and is currently engaged in the latest customs operation: computer avowal.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Shouldn’t we have
some such competition in India?</font></p>
<p> </p>
<p> </p>
<p> </p>
<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>
</font></p>
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