TIOL-DDT 483 · the untouched capture
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<p align="justify"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
483</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
03 11 2006<br>
Friday</b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Service
Tax- DGST no more Registering Authority</font></strong></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Records
to be shown to CAG’s Audit too</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Service
Tax Rules stipulate that in cases of the Centralised Registration pertaining
to units located under different Chief Commissioners, the DGST is the Registering
Authority. Now the registration can be done by the Commissioner under whose
jurisdiction the premises or offices, from where centralised billing or accounting
is done, are located.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Rule
5(4) of the Service Tax Rules, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i>Every
assessee shall make available, at the registered premises, at all reasonable
time, such records as mentioned in sub-rule (3), for inspection and examination
by the <strong>Central </strong><b>Excise Officer </b>authorised in writing
by the jurisdictional Assistant Commissioner or Deputy Commissioner of
Central Excise, as the case may be.</i></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the
Rules are amended to provide that these records are to be provided to audit
party deputed by the Comptroller and Auditor General of India. So it is once
again proved that after all the CAG does not have any constitutional powers
to just go and audit anyone he feels like. He derives his powers from the Central
Excise Rules and now the Service Tax Rules. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Once while
I was a Government servant I wrote that the CAG’s auditors have no real power
to visit a factory for Audit except by Central Excise Rules and the Revenue
ministry can simply remove this power by deleting this clause from the Central
Excise Rules. The AG was so furious that he persuaded my boss to charge-sheet
me. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the
Revenue ministry has given the power to AG to audit Service Tax assessees too.
More objections, Show Cause Notices, and un-ending litigation is bound to follow.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When CAG’s
officers don’t visit Income Tax or Customs assessees why should they visit Central
Excise and Service Tax assessees? </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=40&filename=notification/servicetax/2006/stnot06_029.htm">Notification
No. 29/2006-Service Tax dated the 2nd November, 2006</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Appointment
of Customs officer</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs
Commissioner, Tuticorin is to act as the Commissioner of Customs, Nhava Sheva
Port to adjudicate a specific DRI case.</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=24&filename=notification/custom/2006/cnt06_113.htm">NOTIFICATION
No.113 /2006-Cus.,(N.T), Dated: November 1, 2006</a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Approval
of </font></strong><font color="#006600"><b>scientific research association,
University etc for IT deduction – guidelines issued</b></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under Section
35 of the Income Tax Act, a deduction is allowed on money paid to scientific
research association, University etc. But what is a university? Income Tax officers
will decide that. And the University has to apply to the IT department to get
the approval. The TIOL team that appeared before the Parliamentary Committee
had told the Hon’ble MPs that this is a sheer waste of time and energy by reputed
educational institutions. Why can’t Universities and institutes recognized by
UGC, CSIR, AICTE etc be straight away approved without an application? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any way
Board has prescribed the guidelines, form and the manner of approval. Applications
have to be filed in duplicate with the Commissioner and copy to the Board.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And there
are conditions- </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The
sole object of the scientific research association shall be to scientific
research.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ research
association shall carry on the scientific research activity by itself.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ maintain
books of account and get such books audited.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ maintain
a separate statement of donations received and amount applied for scientific
research.</font></p>
</blockquote>
<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/it06not0309.htm">NOTIFICATION
NO. 309/2006, Dated : October 30, 2006</a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Two
Customs officers convicted in Mumbai Blast case</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The TADA
court yesterday convicted two Customs officers S STalwadekar, Superintendent
and JayawantGurav, Inspector. The Special Judge said that the officers ‘‘did
not act despite receiving specific information about the smuggling operation
and thereby facilitated the commission of a terrorist act by intentionally aiding
and abetting the terrorists after accepting money from them’’</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Inspector was found guilty of piloting two trucks loaded with arms, ammunition
and explosives for a safe passage in the Customs official jeep from GhondharPhata
to Kanghar in Raigad district as part of the Dighi landing operations.He
was also found guilty of allowing accused UttamPoddar - Tiger Memon's aide
- to drive the customs jeep while he sat beside Poddar.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Gurav pleaded
that he be tried under the Customs Act, but the judge explained that the sentence
would be much higher under the Customs Act since he was a Customs officer.</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=24&filename=notification/custom/2006/cnt06_108.htm">NOTIFICATION
No.108/2006-CUSTOMS (N.T.), Dated: October 1, 2006</a></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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