TIOL-DDT 568 · the untouched capture
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<p align="justify"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
568</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
08.03.2007<br>
Thursday</b></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Duty on
tooth brushes remain at 8% - DDT blunders – and gets a bash </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It had to
happen. DDT is at the receiving end of the bashing! It was a blunder when DDT
reported that the duty on tooth brushes has been increased to 16%. The fact
is that the duty remains at 8%. An alert and angry netizen wrote in,</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In budget
analysis you have highlighted the fact that duty on toothbrush has increased
to 16% which is incorrect. The statement has been made without verifying the
other notifications. Such a silly error was shocking and was really disappointing
for us. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">No excuses,
no justification – it was a plain silly error as pointed out by the netizen.
DDT apologises for the lapse and whole heartedly thanks the kind netizen for
taking the trouble of giving us the well deserved kick. </font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Parts of
aircraft under any chapter exempted – an amendment to budget notification</b></font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
the Budget 2007, a new Sl No. was added to Notification No. 6/2006 –C.E to exempt
parts of aircraft, falling under heading 8803. </font></p>
<div align=center>
<table border=1 cellspacing=0 cellpadding=0 width=450>
<tr>
<td> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">54B.</font></p></td>
<td> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8803</font></p></td>
<td> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Parts,
of aircraft of heading 8802</font></p></td>
</tr>
</table>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Obviously
the intention was to exempt parts falling under any heading. So the notification
is amended to </font></p>
<table width=468 border=1 align="center" cellpadding=0 cellspacing=0>
<tr>
<td width=49 valign=top> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif">54B.</font></p></td>
<td width=107 valign=top> <p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any
Chapter</font></p></td>
<td width=312 valign=top> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Parts
(other than rubber tyres and tubes), of aircraft of heading 8802 </font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So now the
parts need not fall under 8803 and of course they should not be rubber tyres
and tubes to qualify for the exemption. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">An identical
amendment is made in the Customs Notification 21/2002. </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/2007/etariff07_19.htm">NOTIFICATION
No. 19/2007-CENTRAL EXCISE</a><b> and </b><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2007/ctariff07_037.htm">NOTIFICATION
No. 37/2007- Customs both Dated: March 7 ,2007 </a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Stock Exchange
Investors' Protection Fund</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per Section
23 EA of the Income Tax Act, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">any income
<i> by way of contributions received from recognised stock exchanges and the
members thereof,</i>of such Investor Protection Fund set up by recognisedstock
exchanges in <st1:place><st1:country-region>India</st1:country-region></st1:place>,
either jointly or separately, as the Central Government may, by notification
in the Official Gazette, specify in this behalf</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">is not included
in the income of the previous year. Now the Government has notified “The Stock
Exchange Investors' Protection Fund, The Stock Exchange, Mumbai”, as an Investor
Protection Fund for the purpose of this clause.</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/2007/it07not65.htm">NOTIFICATION
NO .65/2007, Dated : March 2, 2007</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Hindi version
of notifications not correctly numbered – CBDT corrects</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the notifications
of the government of India Ministry of Finance (Department of Revenue), number
S.O. 235(E) to 250(E) dated the 15th February, 2007, published in the Gazette
of India, Extraordinary, Part-II, Section 3, sub-section (ii) dated 15th February,
2007, S.O. Numbers and F.Nos. are correct in the English version whereas the
S.O. numbers and F.Nos. of Hindi versions do not match with the English version.
Accordingly, the S.O. numbers and F.Nos.of the Hindi versions are corrected.
</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/2007/it07not66.htm">NOTIFICATION
NO. 66/2007, Dated : March 2, 2007</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Export of
maize- policy changes </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Export of
maize (corn) seed and other will be permitted through </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) STC,
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) MMTC,
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) PEC
Ltd and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) NAFED.</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=45&filename=notification/dgft/2006/dgft06not050.htm">NOTIFICATION
NO. 50, (RE-2006)/2004-2009, Dated: March 5 , 2007 </a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Services
export promotion council</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:place>Para</st1:place>
3.6.2, of the Foreign Trade Policy read as </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Service
exporters are required to register themselves with the Federation of Indian
Exporters Organisation. However, software exporters shall register themselves
with Electronic and Software Export Promotion Council.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order
to give proper direction, guidance, and encouragement to the Services Sector,
an exclusive Export Promotion Council for Services shall be set up.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now it is
amended to </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Software
exporters shall register themselves with Electronic and Software Export Promotion
Council. An exclusive Services Export Promotion Council for has been set up
to give proper direction, guidance and encouragement to selected Services Sector.
Exporters of 13 specific services as listed in Sl No. 34 of Appendix-2 of Handbook
of Procedure (Volume -I) are required to register themselves with the Services
Export Promotion Council. Other service exporters shall register themselves
with Federation of Indian Exporters Organisation.”</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=45&filename=notification/dgft/2006/dgft06not051.htm">NOTIFICATION
NO. 51, (RE-2006)/2004-2009, Dated: March 5 , 2007 </a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Evading
excise taxes doesn't pay in the long run – FM </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Finance
Minister P. Chidambaram on Wednesday asked Indian manufacturers to avoid evasion
of excise duty saying that the Government could miss the annual target for revenues
from this tax. "Central excise remains the laggard of our taxes. There
is no reason to avoid central excise," Chidambaram said. "There is
considerable amount of duty evasion and I urge manufacturers to pay excise duty
as they pay corporate and service taxes." Evading excise taxes doesn't
pay in the long run, he said. "When the economy is growing close to 9%
and manufacturing is growing at double digits, surely the central excise must
grow at the same rate," he said. While receipts from corporate tax, service
tax, and customs showed robust growth during April-January 2006-07, excise duty
collections have been sluggish at 7.8%. </font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>EASIEST
– mandatory e-payment</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For all
the assessees paying excise and service tax to the tune of Rs. 50 lakh and above
per annum, it will be mandatory to make the payment through e-mode from 1st
April 2007 according to the Finance Minister, P. Chidambaram while launching
the Electronic Accounting System in Excise and Service Tax (EASIEST).</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Stating
that e-payment is the most convenient method for payment of excise & service
tax, Chidambaram said that in course of time everyone will be required to use
the e-payment mode. The ultimate goal is the data collection synergy in direct
and indirect taxes. The Finance Minister urged the manufacturers and industry
businesses to pay excise duty correctly and punctually as the evasion of duty
do not pay in the long run. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
The Central Board of Excise and Customs in association with Principal Chief
Controller of Accounts, Reserve Bank of <st1:country-region><st1:place>India</st1:place></st1:country-region>
and 28 Scheduled Banks has introduced a simplified electronic accounting system
for central excise and service tax payments called EASIEST. The scheme is conceptualized
to address the weaknesses in the existing tax accounting system, which is a
manual system. The manual system required the taxpayer to file four copies of
Challan. EASIEST would require only a single challan for payment of Central
Excise and Service Tax. It would capture all the essential information required
from the assessee in relation to his tax payments. <br>
<br>
EASIEST uses the electronic environment for expeditious transmission of tax
information, to ensure greater accuracy and reliability of tax payment data.
As part of the ongoing e-governance initiative of the Government of India, it
is also proposed to reconcile the data so captured from the single challan with
the tax returns filed by central excise and service tax assesses. It would be
uploaded and hosted on a central database for excise and service tax as part
of the Automation Project in Excise and Service Tax (ACES). </font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>State-run
enterprises booked for service tax evasion</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A
few defaulters including State owned companies have been evading service
tax payment to the tune of Rs.3 billion annually - a significant sum compared
to the Rs.8 billion revenue that the government gets from around 200,000
small service providers, out of a total of 400,000 assessed for service
tax. In a written reply in the Rajya Sabha, Minister of State for Finance
S.S. Palanimanickam named state-run firms like the Airport Authority of
India, Hindustan Aeronautics Ltd - and Indian Airlines as well as private
companies like Jet Airways, Sahara Airlines, Hyundai Motors, United Breweries
and IBM India, which have defaulted in payment of service tax worth Rs.
100 million or more.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The biggest
defaulter has been AAI, which evaded payment of service tax of Rs.1.34 billion
in 2004-05, while HAL of Kolkata and <st1:City><st1:place>Bangalore</st1:place></st1:City>
together defaulted in paying Rs.260 million the same year.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Indian
Airlines owed the government Rs.150 million and Rs.273 million in 2005-06 and
2006-07 respectively.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Other defaulting
companies included State bank of <st1:country-region><st1:place>India</st1:place></st1:country-region>'s
MICR cheques processing centre at Mumbai, which owed service tax worth Rs.490
million for 2004-05, United Breweries, Hyundai Motors, and Jet Airways. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Evasion
of course has a government definition – not paying what they want you to pay.
<br>
<br>
<br>
<font color="#FF6666">Until tomorrow with more DDT </font></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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