TIOL-DDT 504 · the untouched capture
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<p align="justify"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
504</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
04 12 2006<br>
Monday</b></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Tariff
value for brass scrap reduced</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff
value for brass scrap has been decreased from<strong> </strong>4663 to 4524
US Dollars. There is no change in the Tariff Values of other items. </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_130.htm">NOTIFICATION
No.130/2006-CUSTOMS (N.T.), Dated: December 1 , 2006</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Ten
Million Dollars LOC to Angola – RBI instructions</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Export-Import Bank of
India (Exim Bank) has concluded an agreement with the Government of the Republic
of Angola making available to the latter, a Line of Credit (LOC) for USD 10
million. The credit is available for financing export of 'SAME' brand of tractors
manufactured by SAME Deutze –Fahr India (Pvt) Ltd., related implements, spares
and services from India, which are eligible for export under the Foreign Trade
Policy of the Government of India. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The credit agreement is
effective from October 27, 2006 and under the LOC , the terminal date for opening
Letters of Credit will be October 26, 2008 (24 months from the effective date
of Credit Agreement) and terminal date for disbursements will be April 26, 2009
(30 months from the effective date of Credit Agreement). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Shipments under the credit
will have to be declared on GR / SDF Forms as per instructions issued by Reserve
Bank.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">No agency commission is
payable. However, if required the exporter may use his own resources or utilize
balances of his EEFC account for payment of commission in free foreign exchange.
</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=49&filename=notification/rbi/2006/rbi06cir016.htm">CIRCULAR
NO. 16/RBI., Dated: November 30, 2006</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Budget
2007 - ASSOCHAM’s suggestions</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ASSOCHAM representatives
had a meeting with the Revenue Secretary on 30<sup>th</sup> November and suggested
the following: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.
Dual Tax Rate – It has been recommended that services for the mass consumption
and non-cenvatable should be taxed at the lower rate of 6% and tax rate should
not be increased at all. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.
Exemption limit under the Service Tax should be enhanced from present Rs.4lacs
to Rs.10lacs.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.Now
many transactions are subject to VAT as well as Service Tax. This double taxation
needs to be avoided in respect of such transactions.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.
For small tax-payers, say turnover uptoRs.25lacs, summary assessment should
be started with lower tax rates without giving Cenvat facilities and such
assessee should not be subject to any kind of mandatory records, audit etc.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.
Provisions related to settlement should be extended to Service Tax.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.
Provisions related to the Export and Import of Services should be simplified.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7.
Service Tax on the actual reimbursement of expenditure on the traveling, boarding
& loading should not be levied. Hence, suitable changes should be made
in the Valuation Rules.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8.
Under the Valuation Rules suitable changes need to be made to avoid tax on
taxes.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9.
Present Cenvat Rules need to be replaced with new set of Rules to overcome
the deficiencies under the present Rules as well as to achieve the objective
of integration of Central Excise and Service Tax.</font></p>
</blockquote>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>And
CII wants 10% customs duty</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In its pre-budget memorandum
to the government, the Confederation of Indian Industry has pointed out that
several products continue to have high duty rates despite the reduction of peak
rates to 12.5 percent in March this year.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They have suggested</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.
simplification and greater transparency in indirect tax administration</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.
further cut in the peak rates from 12.5 percent to 10 percent.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.
cut in central sales tax - from 4 percent to 2 percent.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.
rectification of the anomaly where the inputs attracts higher duty than the
product itself. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.
removal of customs duty for life saving drugs and security related items</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.
removal of exemption of the countervailing duty - on projects and various
other internal taxes such as CST and value added tax.</font></p>
</blockquote>
<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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