TIOL-DDT 492 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<html>
<head>
<meta http-equiv=Content-Type content="text/html; charset=windows-1252">
<title>Taxindiaonline's DDT 402</title>
</head>
<body>
<p align="justify"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
492</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
16 11 2006<br>
Thursday</b></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service
Tax on government departments????????? – Board clarifies?</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has examined the question
whether services provided by government departments are liable to Service Tax.
The postal department is paying Service Tax on Speed Post, but why is the CISF
not paying Service Tax? Board clarifies that:-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">· In this year's budget,
in a number of services, the phrase "commercial concern" has been
substituted by the phrase "any person"</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">· Wherever the service provider
is mentioned as "any person", the term "person" ordinarily
includes government unless, in the context, government is excluded by applying
the rules of statutory interpretation.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So Board advises the field
formations to examine individual cases carefully taking into account all the
material facts and take a view. In case of any doubt in individual cases having
all India implication, and in any case where it is proposed to levy service
tax on a service provided by a department of the central government or state
government, the same may be referred to the Board.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So it is back to the field
and from there back to the Board and from there back to the field and ….</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DAVP, customs officers supervising
exports, police providing protection etc, may be potential tax evaders.</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=41&filename=notification/servicetax/2006/truletter3.htm">Board’s
letter Dated : November 10, 2006</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Lamps for
automobiles out of MRP</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification
No. 2/2006 has been amended to exclude lamps for automobiles from the purview
of MRP for excise valuation.</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=30&filename=notification/excise/2006/exnt06_24.htm">NOTIFICATION
No.24/2006-Cex.,(N.T.), Dated: November 14, 2006 </a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Return
unwanted seized records – Board member tells field.</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Whenever the Preventive
Sleuths go on a merry-go-raid, they come back with a truck load of records and
dump them in their office which nobody has the time or inclination to examine.
The other day I saw a mahazar where one of the seized records was a blank file,
yes! A blank file with no paper inside! Maybe the intelligence sleuths wanted
to allege that the assessee had intention to suppress and ample proof was that
he had not kept any papers in the file. Many assesses are happy that the department
is taking away all their files, so that they have more space and they can tell
all other departments that the files are with the Central Excise department!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently, Member, Central
Excise and Service Tax, Mr. PC Jha wrote a letter to all the Chief Commissioners
on this subject. The Member wrote that it has come to the Board’s notice that
sized records are not returned in spite of repeated requests. And the Member
observed that it also unnecessarily occupies space in our offices. How true
Sir!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Member referred to a
1988 circular whereby the documents / records which are not relied upon in the
Show Cause Notice are required to be returned under proper receipt to the persons
from whom they are seized. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But that was in 1988 and
nobody remembers that circular and in any case, Board circulars are not really
taken seriously in the field. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the member reiterates
the compliance of the 1988 instructions. He also wants the Show Cause Notices
to incorporate a clause that unrelied upon records may be collected by the <i>concerned(they
are really concerned)</i> persons within 30 days of receipt of the Show Cause
Notice. The designation and address of the officer responsible for returning
the relied upon records should also be mentioned in the Show Cause Notice. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Great Sir! Wonderful instructions,
but next time you visit a Commissionerate, please check up how much your writ
runs there. Please see a few Show Cause Notices and you will be surprised to
find that your suggestion has not been accepted by the mighty Show Cause Notice
issuing authorities. It is so difficult to get copies of relied upon documents
from the department; will they give the un-relied documents? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sir, if you are serious
about your instructions, please ensure that they are followed. The field will
have no better reason to obey your instructions than they had in flouting the
1988 instructions with absolute impunity for the last 18 years. </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=25&filename=notification/custom/2006/doletter.htm">D.O.
LETTER F.No. 207/09/2006-CX.6 dated 08.09.2006 from Member (CX & ST), CBEC,
New Delhi</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Cabs
hired by Government not paying Service Tax</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
appears the Revenue Secretary has written to the state governments that<strong>
</strong>the taxis hired by various State departments were not paying service
tax, thereby causing loss of revenue to the Centre. He wants the state governments
to ensure that these service providers are registered with Central Excise and
pay Service Tax. </font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1040
return to be simplified. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The U.S. Internal Revenue
Service is revamping and simplifying the dreaded 1040 income tax declaration
form used by some 135 million taxpayers.The 1040 form is the most frequently
used filing document, but its use is slipping, as more than 73 million people
filed federal tax returns electronically in 2006. The last major overhaul of
the form was in 1977. IRS spokesman Terry Lemons said, "What we are shooting
for is a form that is simpler and easier to use for taxpayers,"</font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1040
jokes </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ever
wonder why the IRS calls its Form 1040?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Because
for every $50 that you earn, you get 10 and they get 40.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Simplified
1040 forms</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Internal Revenue Service has simplified its 1040 forms for next year in the
spirit of becoming a "kinder, gentler" IRS. It goes like this:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
(A) How much did you make last year?______</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(B)
How much do you have left?___________</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(C)
Send in amount on line B.</font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The
IV world war will be fought with sticks and stones</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Our this week’s TCW quotes
Einstein saying, So long as there are men, there will be wars.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Einstein also said,<font color="#663399">
<strong>"I don't know what weapons World War III will be fought with, but
World War IV will be fought with sticks and stones."</strong></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe a good time
to invest in sticks instead of stocks. </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>
</body>
</html>