TIOL-DDT 610 · the untouched capture
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<p align=justify><font face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 610</font></b><font size="2"><b><br>
10.05.2007<br>
Thursday</b></font></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Resident Welfare Association – Service Tax liability – Board clarifies</b></font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has received a large number of representations from Co-operative Group Housing Societies who are providing taxable services under section 65(105)(zzze) seeking whether a resident welfare association registered as a co-operative society with the Registrar of Co-operative Societies is entitled for the benefit of service tax exemption under notification No.8/2007-Service Tax, dated 01.03.2007 or not.</font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The exemption provides exemption for the services </font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">provided by a resident welfare association where the sole criterion for its membership is the residential status of a person in a residential complex or locality, to its members, from the whole of the service tax leviable thereon under section 66 of the said Finance Act, subject to the condition that the total consideration received from an individual member by the said association for providing the said services does not exceed three thousand rupees per month.</font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board now clarifies that:-</font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A resident welfare association, even if it is registered as a co-operative society with Registrar of Co-operative Societies, is eligible to avail exemption from levy of service tax vide notification No.8/2007-Service Tax, dated 01.03.2007 provided the following conditions are satisfied, namely:-</font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) The exemption is available for the services specified under section 65(105)(zzze) of the Finance Act, 1994 and provided or to be provided by the association to its members.</font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) The sole criterion for membership of the resident welfare association is the residential status of a person in a residential complex or locality i.e., membership of the association is restricted only to the residents of the complex or locality.</font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) The value of total consideration received from an individual member by the association for providing the services should not exceed Rs.3,000/- per month.</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=41&filename=notification/servicetax/2007/tru_letter.htm" target="_blank">CBEC F.No.137/68/2007-CX.4 dated the 8<sup>th</sup> May, 2007.</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Remittance Scheme for Resident Individuals- Enhancement of limit from USD 50,000 to USD 100,000</b></font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The existing limit of USD 50,000 per financial year under the Scheme has been enhanced to USD 100,000 per financial year (April- March). Accordingly, AD Category – I banks may allow remittance up to USD 100,000, per financial year, for any permitted current or capital account transactions or a combination of both. </font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI clarifies that such remittances are allowed under the Scheme only in respect of permissible current or capital account transactions. All other transactions which are otherwise not permissible under FEMA and those in the nature of remittance for margins or margin calls to overseas exchanges / overseas counterparty are not allowed under the Scheme.</font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI further clarifies that banks should not extend any kind of credit facilities to resident individuals to facilitate remittances under the Scheme.</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=49&filename=notification/rbi/2006/rbi06cir051.htm" target="_blank">CIRCULAR NO. 51/RBI., Dated: May 8, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Booking of Forward Contracts Based on Past Performance- RBI instructions</b></font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As announced in the Annual Policy Statement for the year 2007-with a view to facilitate dynamic hedging of foreign exchange exposures of exporters and importers, RBI has decided to further liberalise the facility by raising the eligible limit of 50 per cent to 75 per cent. Accordingly, forward contracts booked on the basis of declaration of an exposure by importers / exporters and based on past performance in excess of 75 per cent of the eligible limit shall be on a deliverable basis and cannot be cancelled. All other conditions and reporting requirements prescribed for this facility will remain unchanged.</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=49&filename=notification/rbi/2006/rbi06cir052.htm" target="_blank">CIRCULAR NO. 52/RBI., Dated: May 8, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Overseas Investment by Mutual Funds - Liberalisation</b></font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As announced in the Annual Policy Statement for the year 2007-08 (para 135), with a view to providing greater opportunity for investment overseas, the aggregate ceiling for overseas investment by Mutual Funds registered with SEBI, has been increased from USD 3 billion to USD 4 billion with immediate effect. The investments would be subject to the terms and conditions and operational guidelines as issued by SEBI. </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=49&filename=notification/rbi/2006/rbi06cir053.htm" target="_blank">CIRCULAR NO. 53/RBI., Dated: May 8, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Customs Commissioner, Goa invested with powers of Commissioner, Chennai</b></font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBEC has authorized the Commissioner of Central Excise, <st1:place
w:st="on">Goa</st1:place> to exercise the powers and discharge the duties conferred or imposed on Commissioner of Customs, Port Import, Chennai for the purpose of certain adjudications. </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=24&filename=notification/custom/2007/cnt07_041.htm" target="_blank">NOTIFICATION NO. 41</a>-<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_042.htm" target="_blank">42</a>-<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_043.htm" target="_blank">43</a>-<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_044.htm" target="_blank">44</a>-<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_045.htm" target="_blank">45</a>- <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_046.htm" target="_blank">46/2007-Cus., (N.T.) Dated: May 4, 2007</a></u></font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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> </font></p>
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