TIOL-DDT 51 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b><font color="#0000FF" size="3">TIOL-DDT
51</font><br>
10 2 2005<br>
Thursday</b></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#006633"><b>Service
Tax - Aishwarya Rai, Shah Rukh Khan and Amitabh Bachhan have clean slates
while PSUs like Power Grid Corporation and Central Silk Board are on
the dock</b></font></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The DG, Service
Tax, Mr K.P.Singh gave a clean chit to stars like Aishwaraya Rai and Amitabh
Bachan, while Government owned companies like Power Grid Corporation and the
Silk Board were not exactly ready to comply with tax laws. Mr. Singh was addressing
a press conference in Bangalore yesterday. He said that a Bangalore-based
multinational company (which he refused to name for another 15 days) had defaulted
nearly Rs 4 Crores.<br>
<br>
He said that whenever defaulters are tracked, they will have to pay 200% as
penalty. <br>
<br>
Mr Singh's target for the year is Rs 14150 Crores and collections up
to January are less than 10000 Crores. So he is required to collect another
4000 Crores in the next two months. It is understood that he has promised
to collect Rs 20,000 Crores. The next fifty days are going to be hot for the
officers of the department to somehow realise impossible targets. And mind
you they will pass on the heat. If things go, as they do now, a day will come,
when the trade and industry will close down business in March to escape from
the clutches of target hungry officialdom. </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006633">TIN
to eliminate TDS frauds</font></b><br>
<br>
The Union Cabinet has approved setting up of Phase-II of Tax Information Network
(TIN) at an estimated expenditure of Rs.101.25 crore over the next three years.
The decision to set up TIN was announced in the budget speech 2003. It was decided
that TIN will be set up in two phases and NSDL will host it. Phase-I of TIN
has become operational. In this, facilities for electronic filing of TDS returns
have become functional from January 21, 2004 and facilities for transmission
of tax payment data from banks to the Department from June 1, 2004. More than
4.35 lakh e-TDS returns have been filed with TIN. Over one crore challans had
come to TIN on Online Tax Accounting System from 11905 branches of 32 designated
banks collecting direct taxes. In Phase-II, collation of deductee-wise data
in TDS/TCS (Tax Collected at Source) returns for eventual dematerialisation
of TDS certificates, computerization of Annual Information Returns (AIRs) of
high value transactions and integration of information relating to processing
of returns of income are to be taken up. The objectives of Phase-II are to enable
paperless filing of returns of income by the deductees on Internet; to eliminate
TDS frauds; and to enable e-filing of TDS returns by Government and corporate
deductors. This would result in significant reduction in cost of compliance
and computerization of AIRs for widening and deepening of tax base.<br>
<br>
Lofty goals indeed, but is the Income Tax department ready for this. See our
budget story today for some genuine apprehensions. And if the Income Tax department
can do it with millions of returns, why can't it be done in excise with
a fraction of that number?<br>
<br>
<font color="#006633"><b>ESOP - no prior permission from RBI under FEMA</b></font><br>
<br>
With a view to further liberalising overseas investment, it has now been decided
that even in cases where the foreign company offering its shares under ESOP
and has an indirect shareholding in the Indian company, i.e., through a Special
Purpose Vehicle or a step down subsidiary, no prior permission of the Reserve
Bank is required, as long as such holding is not less than 51 per cent.<br>
<b><a href="taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTUzMTU=" target="_blank">RBI/2004-05/360
A.P. (DIR Series) Circular No. 32 dated February 09, 2005</a></b><br>
<br>
<font color="#006633"><b>Sexual harassment case against Central Excise Chief
Commissioner - High Court seeks report</b></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Punjab and Haryana High Court, has asked the Union Government to submit a report
of inquiry and details of proceedings conducted by a committee on 'Sexual
harassment of women at workplace' along with the action-taken report by
the Ministry on the findings of Committee's report, on a complaint filed
by Ms. F M Jaiswal, Commissioner, Central Excise, alleging sexual harassment
by controversial Chief Commissioner, Kailash Sethi. She had filed a complaint
of sexual harassment on August 7, 2003, to the Union Revenue Secretary, who
referred the matter to the committee on sexual harassment, headed by Joint Secretary
(Administration). After examination of witnesses of both petitioners and
respondents, the committee concluded its hearing in June last year. She was
not given a copy of committee findings and the action taken by the ministry
on the findings. After sending several reminders, she filed a petition in the
High Court, which issued notice to the Union of India and Central Board of Excise
and Customs.<br>
<br>
Mr. Sethi, as the ADG, CEIB, is said to be responsible for phone tapping which
ultimately led to the arrest of Mr. Someshwar, another Chief Commissioner. His
unceremonious exit from EIB, even raised a question in Parliament and the Finance
Minister had to clarify that his transfer was in public interest. Earlier Sethi
was accused of assaulting the President of the Institute of Chartered Accountants.<br>
<br>
<font color="#FF0000"><b>Until tomorrow with more of DDT </b></font></font></p>
<p align="justify"><font color="#FF0000"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a Nice Day<br>
<br>
Mail your comments to</font></b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>vijaywrite@taxindiaonline.com </b></font></p>
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