TIOL-DDT 487 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT
487</font><br>
09 11 2006<br>
Thursday</b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Served
from India Scheme (SFIS) - domestic procurement of goods- Board issues instructions,
but what about DFIA?</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board
has issued instructions regarding the procedure to be followed for procurement
of goods from units in India without payment of excise duty. These goods are
exempted under Notification No. 34/2006 C.E. The procedure is like this:-</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i)
Produce the original scrip before the jurisdictional Central Excise officer
for debiting of the duties leviable on the goods but for the exemption contained
in notification No.34/2006-CE dated 14.6.2006. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii)
The jurisdictional Central Excise officer shall get the genuineness of the
scrip verified from the Customs authorities at the Port of Registration along
with the details of the last debit entry, if any when the scrip is received
first time.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii)
The holder of the SFIS scrip shall intimate in writing the details of debit
by Excise to the Customs authorities at the Port of Registration for entering
full details of such debit by Excise in the records of Customs at the Port
of Registration.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iv)
The scrip holder shall give this intimation to Customs before clearance of
any further consignment either by way of import or domestic procurement. The
jurisdictional Central Excise officer shall also intimate in writing the details
of debit made to the Customs authorities at the Port of Registration. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">v)
It shall be the responsibility of the scrip holder to ensure that he gives
proper intimation of debit by Excise to the Customs authorities at the Port
of Registration before further clearances. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">vi)
The Customs authorities at the port of registration shall permit duty debit
on imports after verifying the details of debit, if any done by Central Excise
authorities.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Board
feels that this procedure would obviate the need for issue of TRAby the Customs
authorities at the Port of Registration for debit by Excise, as original scrip
would be produced to the Excise authorities for debit. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT
had raised a question regarding the procedure for domestic procurement by DFIA
holders. There is neither a notification nor a circular. Will the Board clarify?</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=31&filename=notification/excise/2006/excircular837.htm">CIRCULAR
NO. 837/14/2006-CX., Dated: November 3, 2006</a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Wanted:
Member Settlement Commission</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Revenue Department has invited applications from Chief Commissioners and above
for the post of Member, Settlement Commission. The applicants are to indicate
their willingness or otherwise to be posted at a particular city. The selected
candidates are required to seek voluntary retirement from the IRS before joining
the Settlement Commission. </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=70&filename=pitara/deputation/member_sc.htm">No.A.12026/15/2005-Ad.I
dated the 7th November, 2006.</a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Indian
Income Tax – 9000 pages of laws</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Our
Mahan Bharat has scored yet another first – We have the largest Income Tax legislation
in the world – 9000 pages of them, according to a study conducted by the World
Bank and PricewaterhouseCoopers. India is followed by United Kingdom at 8,300;
Australia is at third spot with 7700 pages. USA has 5,100 pages of income tax
legislation and Switzerland has just 300 pages.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What
are the consequences of 9000 pages of law? Ignorance! It is impossible any human
being to know all the 9000 pages. This brings in taxation advisers and consultants
into play.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
study says "Countries need to reflect on the likely deterrent effect of
ever increasing complexity of their tax legislation and the resulting probable
reduction in their international competitiveness. Ultimately, when tax legislation
becomes too voluminous compliance drops more through ignorance than deliberate
evasion."</font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">New
role for eunuchs – Tax collectors</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Patna Municipal Corporation has an innovative way of collecting taxes. They
have hired eunuchs as tax collectors. Out of a targeted 50 Crores collection,
the Corporation has been able to collect only 7 Crores and so they seek the
services of eunuchs as tax collectors. The eunuchs are paid a 4% commission.Municipal
officials feel eunuchs can be a source of embarrassment to people, forcing them
to cough up overdue tax. </font></p>
<p align="justify"><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></span></font></p>
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