TIOL-DDT 516 · the untouched capture
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<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 516</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br> 20.12.2006<br> Wednesday</b></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">FOCUS MARKET SCHEME</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT has amended the Hand Book of Procedures to stipulate that</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. A single consolidated application for all exports through EDI enabled ports, instead of a separate application for ech port as required now.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The applicant shall be required to submit a proof of landing of the export consignment in the specified market. The duty credit entitlement certificate shall be granted on FOB value realized as per BRC/ FIRC.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. The duty credit entitlement certificate shall be issued with one of the ports of export.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the application form for Focus Market Scheme in the AayaatNiryat Form has been prescribed.</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=47&filename=notification/dgft/2006/dgft06pn076.htm">PUBLIC NOTICE NO 76/(RE-2006)/2004-2009, Dated: December 18, 2006</a><b> </b></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Micro, Small and Medium Enterprises Development Act - Interest not to be allowed as deduction from income</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Micro, Small and Medium Enterprises Development Act, 2006 (MSMEDA, 2006) which provides for facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises has come into force from 2nd October, 2006. Section 23 of MSMEDA, 2006 lays down that the amount of interest payable or paid by any buyer shall not be allowed as deduction in the computation of income. Section 22 requires disclosure of the principal and interest due thereon separately in the annual statement of accounts. This enables the assessing officers to ascertain correct amount of disallowance on account of interest payable or paid by the buyer.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board wants the assessing officers to note these provisions.</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=67&filename=notification/cbdt/2006/instruct0612.htm">INSTRUCTION NO. 12/2006, Dated: December 14, 2006</a></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Avoidance of double taxation and prevention of fiscal evasion with Norway- Tax on royalties reduced to 10%.</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Convention between the Government of the Republic of India and the Kingdom of Norway for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital came into force in the year 1986.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ARTICLE 13 dealing with Royalties and fees for technical services reads as </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Royalties and fees for technical services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. However, such royalties and fees for technical services may also be taxed in the Contracting State in which they arise and according to the laws of that State. But insofar as fees for technical services are considered, to the extent such fees are paid in respect of a contract which is signed after the date of entry into force of this Convention, the tax so charged shall not exceed <b>20 per cent</b> of such fees. For the purposes of this paragraph, if a lower rate of Indian tax is agreed upon with any other State than Norway</st1:country-region> after the entry into force of this Convention, such rate shall be applied.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this 20 percent is made ten percent.</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/it06not0368.htm">NOTIFICATION NO. 368/2006,Dated : December15, 2006 </a></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">SIDBI</font></b><font color="#006600"><b> bond notified as zero coupon bond</b></font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has notified the following as zero coupon bonds</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. “ten years zero coupon bond of Small Industries <br> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Development Bank of India (SIDBI)” </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. ten years zero coupon bond of Housing and Urban Development Corporation Limited (HUDCO)</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. fifteen years zero coupon bond of Housing and Urban Development Corporation Limited (HUDCO) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. ten years zero coupon bond of National Bank of Agriculture and Rural Development (NABARD)</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. twenty years zero coupon bond of Infrastructure Development Finance Company Limited (IDFC)</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">to be issued on or before the 31st March, 2009</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/it06not0369.htm">NOTIFICATION NO. 369</a><b> -</b><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2006/it06not0374.htm">374/2006,Dated : December15, 2006 </a></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Symbiosis Institute of Management a commercial coaching centre?</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">SIMS is a nationally renowned B school almost on par with the IIMs, but the Service Tax department in Pune is not impressed. They have been slapped with a Show Cause Notice for evasion of Service Tax to the tune of Rs. 35 Crores. Can a premier institute imparting high quality education be called a commercial coaching or training centre? Is there no difference between coaching and education? Isn’t it a constitutional requirement to promote education? Then can education be taxed?</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Kerala High Court had in <u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=43&filename=legal/hc/2006/2006-TIOL-35-HC-KERALA-ST.htm"><font size="1">2006-TIOL-35-HC-KERALA-ST</font></a></u> observed, <b>Tax on education, particularly when the incidence of tax is passed on to the beneficiaries, that is, the students, is a regressive legislation and has to be condemned, more so, when large number of poor people seek salvation through education and employment.</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And this was in relation to parallel colleges which are just teaching shops! Unfortunately. <b>Symbiosis</b> does not get the status of a street corner parallel college in Kerala.</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>