TIOL-DDT 565 · 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 565</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br> 06.03.2007<br> Tuesday</b></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Naphta</font></b><font color="#006600"><b> and LNG imported by Ratnagiri Gas</b></font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Naphtha, when imported by Ratnagiri Gas and Power Private Limited (RGPPL), for use in generation of electricity in the power plants of Ratnagiri Gas and Power Private Limited (RGPPL) at Dabhol, District Ratnagiri, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:place>Maharashtra</st1:place> was exempted from Customs duty till 1<sup>st</sup> April 2007; now it is extended till 1<sup>st</sup> October 2007.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similarly Liquefied natural gas imported by Ratnagiri Gas and Power Private Limited was exempted. Now this exemption is extended to LNG imported by any any other importer for supply under an agreement to Ratnagiri Gas and Power Private Limited for the purpose of generation of power at their power project at Dabho. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2007/ctariff07_036.htm" target="_blank">NOTIFICATION NO. 36/2007-Cus,Dated : March 2, 2007 </a></u></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Ahmedabad gearing up for e-filing</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As e-payment is becoming mandatory, Ahmedabad Commissionerate is on top gear with e-filing of returns. Of the 62 targeted units, 56 units have filed their ER-1 electronically for the month of January 2007. Encouraged by this positive response and as already planned, the Commissionerate has decided that all the registered manufacturers, irrespective of quantum of their duty payments, should have to file their returns viz. ER-1, ER-2 or ER-3 only through electronic means from the month of April, 2007 i.e. return for the month of March, 2007 onwards. The highlights:-</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The registered manufacturers have the option to file their returns either on off-line mode or on-line mode.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. In either of these modes, the registered manufacturers have to apply for and obtain password from the department to access the website.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. In the on-line mode, the units can file their returns directly by accessing the above site using the pass word allotted to them. However, this requires a high speed Internet connection.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. for those members of the trade who do not have proper /dedicated Internet, it is suggested to use the off-line mode.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. It is possible that certain small scale units may not have a computer in their office/ factory premises, to help these units, it is being proposed to open Service Centres at select places, where the facility of electronic filing will be offered at a nominal cost.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commissionerate is organizing training sessions from 6.3.2007 to 28.3.2007.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commissioner has requested the trade to take advantage of the facility of e-filing which is beneficial not only to trade and department in term of time and cost but also in terms of <b>environmental protection.</b></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/notice_15.htm" target="_blank">AHMEDABAD Trade Notice No /15/2007 </a></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Import of Rough Diamonds -</font></b><font color="#006600"><b>Advance Remittance</b></font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Expert Committee on Gems and Jewellery Sector, constituted by the Ministry of Finance, has recommended that a more liberal approach may be adopted on advance payment for import of rough diamonds. Based on the recommendations, the Gems and Jewellery Export Promotion Council (GJEPC) approached the Reserve Bank for allowing import of rough diamonds from five mining companies of rough diamonds, viz., i) RIO TINTO, UK; ii) BHP Billiton, Australia; iii) ENDIAMA, E. P. Angola; iv) ALROSA, Russia; and v) GOKHARAN, Russia, in addition to the Diamond Trading Company Pvt. Ltd., UK, in respect of which advance payments without bank guarantee, could be permitted. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With a view to liberalising the procedure further and facilitate import of rough diamonds, RBI has permitted banks to allow advance remittance without any limit and without bank guarantee or standby letter of credit, by an importer (other than a Public Sector Company or a Department / Undertaking of the Government of India / State Government/s), for import of rough diamonds into India from the above mentioned companies. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI has directed that</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The importer should be a recognised processor of rough diamonds as per a list to be approved by GJEPC in this regard and should have a good track record of export realisation; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. AD Category - I banks should undertake the transaction based on their commercial judgment and after being satisfied about the bonafides of the transaction; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Advance payments should be made strictly as per the terms of the sale contract and should be made directly to the account of the company concerned, that is, to the ultimate beneficiary and not through numbered accounts or otherwise. Further, due caution may be exercised to ensure that remittance is not permitted for import of conflict diamonds; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. KYC and due diligence exercise should be done by the AD Category - I banks for the Indian importer entity and the overseas company; and </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. AD Category - I banks should follow up submission of the Bill of Entry / documents evidencing import of rough diamonds into the country by the importer, in terms of the Act / Rules / Regulations / Directions issued in this regard. </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/rbi06cir034.htm" target="_blank">CIRCULAR NO. 33/RBI., Dated: February 28, 2007</a></font></p> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">No reduction of corporate tax – FM</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Finance Minister, Mr. P. Chidambaram, has ruled out any reduction in the scheduled rate of corporate taxation “as the effective tax rate in <st1:place><st1:country-region>India</st1:country-region></st1:place> was 19.2%. In no Asian or ASEAN country is the effective rate less than 19%,” he said, even as he sought the cooperation of industry in moderating inflation and “not allowing short-term lure of profit-making cloud its thinking, as long term price stability was fundamental for overall stability of the economy.”</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Speaking at the National Conference of Union Budget 2007-08, organized by FICCI yesterday, Mr. Chidambaram said of the current effective rate of taxation, Fringe Benefit Tax accounted for just 1%. He informed captains of industry that the method of calculation of tax on ESOPS, as fringe benefit, would be worked out soon.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>More FMspeak</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ “We are prepared to consider whether this benefit should be taxed at the hands of a company or an individual, for which, industry’s view would be ascertained.”</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ taxing of ESOPS would not affect a company’s ability to hire talent, as the proposed tax would apply across-the-board to all companies.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ There is no reason for the corporate sector to “feel poor and deprived” as this sector yields the bulk of tax revenue. For instance, the corporate sector paid advance tax of Rs 60, 000 crore in 2003-04, Rs 73,000 crore in 2004-05, Rs 84,000 crore in 2005-06 and Rs 75,000 crore in three installments in 2006-07. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ I am confident that 2007-08 will be another year of good corporate performance and there is every reason to believe that the first objective of the current budget – to ensure that <st1:place><st1:country-region>India</st1:country-region></st1:place>’s growth story remains in tact – will be met.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">v we all have to put not just our heads together but also bring our hearts together and come up with innovative schemes that will benefit 115 million farming families</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>