TIOL-DDT 623 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 623</font><br>
29.05.2007<br>
Tuesday</b></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>No enclosures to IT returns : Filing Of Form 16 By Tax Payers Not Required For Claiming Refunds - CBDT clarifies </strong></font></p>
<p align=justify><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It seems that News item has appeared in print and electronic media that individual taxpayers have to submit Form 16 – a certificate of tax deducted at source – along with income tax returns to obtain refunds.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBDT has clarified that the Government has amended Rule 12 of the Income Tax Rules to notify the new income tax return forms for assessment Year 2007-08 with effect from 14th May 2007. These new return forms (other then new Form ITR-7 for charitable/religious trusts and institutions) are annexure-less. A taxpayer is not required to file any document relating to computation of income or challans or TDS certificates (Form 16 or form 16A) or TCS certificates along with these annexure-less returns, irrespective of whether a refund is claimed or not. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board has further clarified that the contents of the news item regarding the need to file Form 16 for claiming refund is baseless. The taxpayers are advised to strictly follow the instruction annexed with the new return forms and Rule 12 of the Income Tax Rules.</font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Settlement of cases - 2001 Rules replaced with 2007 Rules. </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Central Excise (Settlement of Cases) Rules, 2001 and the Customs (Settlement of Cases) Rules, 1999 were superseded and the Central Excise (Settlement of Cases) Rules, 2007 and the Customs (Settlement of Cases) Rules, 2007 were issued in their places.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the Rules define ‘Act’, ‘Form’, ‘Section’ and ‘words’.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The new Rules stipulate that the amount of excise duty/ customs duty accepted by the applicant along with interest to be paid by TR-6 Challan in the authorized bank. But isn’t the TR-6 challan on its way out?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The application firms have also been changed and now the applicant is required to give an undertaking </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>That no proceeding in respect of the case for which settlement is being sought, is pending before Commissioner (Appeal), Customs, Excise and Service Tax Appellate Tribunal or the courts, as the case may be, or has been remanded back to the adjudicating authority by the said appellate authorities. </b></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=30&filename=notification/excise/2007/exnt07_28.htm" target="_blank">NOTIFICATION NO. 28/2007-CeX., (N.T.),</a></u><b><u> and </u></b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_054.htm" target="_blank">54/2007-CUS., (N. T.), Dated: May 28, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Imported Coconut oil – export obligation</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DGFT has amended the HOP to stipulate that for coconut oil imported under Advance Authorisation Scheme or under the EOU scheme, the export obligation has to be fulfilled within a period of 90 days from the date on which first import consignment is cleared by Customs Authorities.</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=47&filename=notification/dgft/2007/dgft07pn006.htm" target="_blank">PUBLIC NOTICE NO. 6 (RE-2007)/2004-2009 Dated: May 24, 2007 </a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Import of Equipments by BPO Companies in <st1:country-region w:st="on"><st1:place
w:st="on">India</st1:place></st1:country-region> for International Call Centre – RBI instructions</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Reserve Bank has been receiving requests from Business Process Outsourcing (BPO) companies in <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region> for permission to make remittances towards import and installation of equipments at overseas sites in connection with setting up of their International Call Centres (ICCs). In such cases, the equipments are installed at overseas sites without physical import taking place in <st1:place w:st="on"><st1:country-region
w:st="on">India</st1:country-region></st1:place>. As a result, the importers are unable to produce evidence of import, requiring specific permission from the Reserve Bank.</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, with the objective of rationalising and simplifying the Foreign Exchange Regulations and providing greater flexibility to such transactions, it has been decided that AD Category – I banks may, henceforth, allow BPO companies in India to make remittances towards the cost of equipment to be imported and installed at their overseas sites.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The remittances are subject to the following conditions: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) The BPOcompany should have obtained necessary approval from the Ministry of Communications and Information Technology, Government of India and other authorities concerned for setting up of the ICC.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) The remittance should be allowed based on the AD Category – I banks’ commercial judgment, the bonafides of the transactions and strictly in terms of the contract. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) The remittance is made directly to the account of the overseas supplier.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The AD Category – I banks should also obtain a certificate as evidence of import from the Chief Executive Officer (CEO) or auditor of the importer company that the goods for which remittance was made have actually been imported and installed at overseas sites.</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/rbi06cir063.htm" target="_blank">RBI CIRCULAR NO. 63/RBI., Dated: May 25, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Foreign Exchange Management (Deposit) Regulations, 2000- Operation of NRO account by Power of Attorney Holder – 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 2007-08, it has been decided to extend the facility of operation of NRO account by Power of Attorney granted in favour of a resident by the non-resident individual account holder. Accordingly, the banks may allow operations on an NRO account in terms of such a Power of Attorney, provided such operations are restricted to </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) all local payments in rupees including payments for eligible investments subject to compliance with relevant regulations made by the Reserve Bank; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) remittance outside <st1:country-region w:st="on">India</st1:country-region> of current income in <st1:place w:st="on"><st1:country-region w:st="on">India</st1:country-region></st1:place> of the non-resident individual account holder, net of applicable taxes. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The resident Power of Attorney holder is not permitted to repatriate outside India funds held in the account other than to the non-resident individual account holder nor to make payment by way of gift to a resident on behalf of the non-resident account holder or transfer funds from the account to another NRO account.</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/rbi06cir064.htm" target="_blank">RBI CIRCULAR NO. 64/RBI., Dated: May 25, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>1000 appeals and three and a half month later – Superb performance of CESTAT, Kolkotta </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After deciding 1000 appeals in a short period of 3 and a half month, the Kolkotta Bench of the Customs, Excise and Service Tax Tribunal, newly reconstituted on 7<sup>th</sup> February, 2007, has now accepted a suggestion from the Association of tax lawyers and consultants to travel to different parts of Eastern India and decide appeals at places where the tax disputes have arisen. Under the scheme of taking justice to the door steps of the appellants, the first Circuit Bench is going to be held in <st1:place
w:st="on"><st1:City w:st="on">Bhubaneswar</st1:City></st1:place> during the week 4-8 June, 2007. The Circuit Bench will subsequently travel to Siliguri, <st1:City w:st="on">Jamshedpur</st1:City>, <st1:place
w:st="on"><st1:City w:st="on">Ranchi</st1:City></st1:place> and Shillong later this year. The local Commissioners of Customs and Excise are being approached to provide the minimal infrastructure required to hold these Circuit Benches.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Kolkotta Bench had to adopt various practical measures during this period to be able to settle large number of tax disputes. While it sorted out several hundreds of crores of Rupees of tax disputes pending very long for major industries in the eastern region (Tata Chemicals, TISCO, Tata Motors, SAIL, ONGC, IOC, Bata, Hindustan Lever to name a few), it made special efforts to decide hundreds of cases of small tax payers. Spate of disposal was increased by clubbing hearing of cases involving similar issues, hearing cases at length at the admission stage and deciding the cases finally instead of merely granting stay, and holding special sittings for small appeals in the afternoon after hearing Division Bench cases in the forenoon. The Bench also split into two on few days and the Members, Dr. C. Satapathy and Shri D. N. Panda separately held two Single Member Benches to hear and decide a very large number of small appeals by using a vacant Chamber of a Commissioner as a temporary Court room. The cooperation of the Bar, Departmental Representatives, and the Registry has been crucial in increasing the level of disposal from around 65 appeals a month during the previous 4 years 2003 to 2006 to near about 300 appeals a month during this short period. The pendency is now a little over 1900 cases.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If this going rate continues, the entire pendency will be wiped off in seven months. </font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Pune builder gives the slip to DRI</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">First of all, let me give the disclaimer. This is all hearsay; we have absolutely no confirmed report. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A top builder and contractor from Pune who was detained for evading Customs at the Mumbai airport on Sunday, was released on bail on Monday. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Pax was returning from <st1:place
w:st="on"><st1:City w:st="on">London</st1:City></st1:place> with his family when DRI officials searched the builder's luggage at the Mumbai airport, and found expensive watches, jewellery, and other items which were not declared.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DRI officers, who had been keeping a close watch on a tip-off from <st1:City w:st="on"><st1:place w:st="on">London</st1:place></st1:City>, interrogated him and later handed him over to Mumbai Police for an overnight remand at a lock-up. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, without the knowledge of the DRI, he applied for bail before the night magistrate, who set him free for Rs 50,000 and asked him to pay Rs 15 lakh as fine. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The DRI sleuths were informed of his release only when they went to the police station on Monday morning to take him to court.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Meanwhile
DRI sleuths are reported to be searching Reliance at <st1:City w:st="on"><st1:place w:st="on">Jamnagar</st1:place></st1:City> and
are hoping to come up with a big case. DRI bosses were tight-lipped on the
issue.</font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Exchange Rate Notifications – yet to be issued</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We received a call from a worried netizen wanting to know why we had not carried the exchange rate notifications. We would have gladly carried them if they had been published by the ministry. We also know the numbers of the notifications, 52 and 53 0f 2007- only the notifications are not released. Maybe we will be able to bring them to you later in the day. And be sure that the notifications will be dated 28<sup>th</sup> May or earlier as Notification No. 54 is dated 28<sup>th</sup> May.</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></font></p>
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