TIOL-DDT 489 · the untouched capture
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<p align="justify"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
489</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
13 11 2006<br>
Monday</b></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FM
at the LTU - </strong><b>Toilet is the best place to judge the quality of the
building</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Finance
Minister Chidambaram has formally declared the LTU in <st1:City>Bangalore</st1:City>
functional. Obviously Chief Commissioner KS Nair had done a good job and the
FM was happy. The FM wants to come back to the LTU incognito and inspect the
toilets for he believes that <b>Toilet is the best place to judge the quality
of the building. </b>The FM had a Member in the CBEC who retired recently, who
as a Commissioner used to start his day by inspecting all the toilets in the
office. He believed that if officers maintained punctuality and kept their toilets
clean, everything else would be in order. The FM gave an inspiring speech at
the LTU, extracts from which are reproduced below.</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Contrary to popular perception, we are not a highly taxed country. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++There
are countries which have much higher level of taxation yet there is a higher
degree of compliance.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The tax collector thinks that every assessee, every taxpayer out do, out smart
him and to evade taxes. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The tax payer thinks that every tax collector is a Shylock and a Shark out
to draw the last drop of blood from his body. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
This is obviously a very outdated, primitive, dysfunctional model of Tax Administration</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
We generally believe that truck drivers have a greater risk to accidents than
a taxi driver, and a taxi driver has a greater risk to accidents than a passenger
car driver and passenger car driver has a greater risk to accidents than owner
drivers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
I do not wish to get into any controversy, but some women think that men are
poor drivers and men think that women are poor drivers. The point is there
is a risk assessment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Likewise, research reveals that there is a risk assessment among Taxpayers.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
I have often asked some of my friends what is the point in buying jewellery
if you can’t wear it. If you can’t wear jewellery, and go to a party, for
the fear of an Income Tax officer will find out how much you are wearing and
the Income tax applicable is paid or not</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Every time you sit on a barber’s chair, you don’t look at the mirror to see
whether the barber is cutting your ear or nose or cutting your hair. Trust
your lock of hair to your barber. But from time to time you might want to
look up the mirror to see if he is cutting it properly. Point is, trust your
client but verify.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
This client is not mere taxpayer. He is creating wealth, he is producing goods,
he is producing services, he is employing thousands of people, he is helping
the economy grow.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Yes he may make mistakes, So what? Who does not make mistakes? Which Tax
Officer has never made a mistake in life? He will make mistakes, so what?
If you find the mistake, correct him, but treat him with courtesy and respect.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
A place for people to come and wait, who can have coffee, tea, drinking water,
proper toilets. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
No one is going to be allowed here who cannot wear simple, neat, proper clothes
or simple clean footwear.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
This must become an example of a Government office, which does not exist.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The whole public perception of a Government office must change. People must
walk in here and say, is this a Government Office? That is the kind of office
you must create.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
In this country appeals take much longer than the initial assessment. And
I can’t understand that at all. So appeals must be completed within time.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
We will create offices of this quality and this kind and handpick the officers
who can manage these LTUs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Now some people may think that these LTUs are going to cost a lot of money.
Completely wrong! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The cost of tax collection in India is the lowest in the world. It is 0.67%.
This year it is expected to come down to 0.64%.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
It is part of your responsibility, not only to retain your 31 clients, but
also to attract more clients. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
How does an advertising agency work? You retain your clients, but try to
attract more clients. In an advertising agency, there is a rival advertising
agency, which can take away your client. Here there is no rival LTU.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Why should anyone fear an Income Tax Officer, why should anyone fear a Central
Excise officer?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
If you pay taxes, you can walk with your head held high.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
We have more information than you think we have. It is our limitation of
mining that information which is standing in the way of reaching you. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
I intend to come back here in a year to see how well this building is maintained,
how many people are working here, how well the toilets are maintained.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
In fact Toilet is the best place to judge the quality of the building.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/speechltu.htm">Click
here to see the full text of the FM’s speech.</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Exemption
to sports goods – air rifles exempted</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Air Rifles/Pistols- 0.177
calibres are exempted from Customs duties subject to the conditions that </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a)
the said goods are imported into India by the National Rifle Association of
India for the purpose of imparting training; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b)
the importer, at the time of clearance of the goods, produces a certificate
to the Assistant Commissioner of Customs or Deputy Commissioner of Customs,
as the case may be, from an officer not below the rank of a Director in the
Sports Authority of India, recommending grant of exemption to the said goods
and indicating, - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i)
the name and address of the importer of the said goods; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii)
the description, quantity and value of the said goods; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii)
that the said goods are required for the purpose of imparting training.</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=23&filename=notification/custom/2006/ctariff06_112.htm">NOTIFICATION
No.112/2006-Cus., Dated: November 9, 2006</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Crossed
Cheque is now account payee cheque</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rule 6 DD of the Income
Tax Rules deals with <i>Cases and circumstances in which payment in a sum exceeding
twenty thousand rupees may be made otherwise than by a crossed cheque drawn
on a bank or by a crossed bank draft. </i>This has now become "an account
payee cheque drawn on a bank or account payee bank draft"</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/it06not0314.htm">NOTIFICATION
NO. 314/2006, Dated: November 9, 2006</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>TDS on interest
payable under Senior Citizens Savings Scheme -Non-acceptance of Form No. 15
H and 15 G by Banks- RBI clarifies stand</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Reserve Bank has informed
the Banks that the Finance Ministry has informed them that they are receiving
a number of complaints / grievances regarding non-acceptance of Form No. 15G
or 15H by the Agency banks and that tax is being deducted from the interest
amounts despite the depositor filing or submitting these forms.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI has reiterated the stand
that Agency banks should not make any deduction of tax at source where depositor
is filing Form 15H or Form 15G or a certificate under Section 197(1) of Income
Tax Act 1961.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI wants the Banks to comply
with these instructions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/rbi_tds.htm">RBI/
2006-07/ 171 Dated: November 10, 2006</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Hitler or
Churchill? </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A netizen sent me this interesting
mail.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Question 1</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you knew a woman who
was pregnant, who had 8 kids already, three who were deaf, two who were blind,
one mentally retarded, and she had syphilis, would you recommend that she have
an abortion?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Read the next question before
looking at the response for this one.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Question 2</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is time to elect a new
world leader, and only your vote counts. Here are the facts about the three
candidates.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Candidate A</b>. Associates
with crooked politicians, and consults with astrologers. He's had two mistresses.
He also chain smokes and drinks 8 to 10 martinis a day.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Candidate B:</b> He
was kicked out of office twice, sleeps until noon, used opium in college and
drinks a quart of whiskey every evening.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Candidate C</b>” He
is a decorated war hero. He's a vegetarian, doesn't smoke, drinks an occasional
beer and never cheated on his wife. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Which of these candidates
would be your choice?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let’s give a shot and try
deciding first...</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now if you have decided
on your answers, scroll down for the response.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Candidate A</b> is Franklin
D. Roosevelt.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Candidate B</b> is Winston
Churchill.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Candidate C</b> is Adolph
Hitler.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And, by the way, on your
answer to the abortion question:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you said YES . . .</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">. . . you just killed Beethoven
- Gr8 musician</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Pretty interesting isn't
it?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Makes a person think before
judging on something....</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 <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></span></font></p>
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