TIOL-DDT 656 · 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 656</font><font size="2"><br>
13.07.2007<br>
Friday</font></b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Betel Nut Import policy changed - Import allowed only from <st1:PersonName
w:st="on">Nepa</st1:PersonName>l</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The present policy for import of betel nut is free. Now betel nut - Whole, <st1:place w:st="on"><st1:City
w:st="on">Split</st1:City></st1:place>, Ground or Other is allowed free import only through Mangalore port and of <st1:PersonName w:st="on">Nepa</st1:PersonName>lese origin through Jogbani and Panitanki Land Customs Stations.</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=45&filename=notification/dgft/2007/dgft07not012.htm" target="_blank">DGFT NOTIFICATION NO. 12(RE-2007)/2004-2009., Dated: July 10, 2007</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Import of GM rice - restricted </font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Import of GM rice is restricted. Import of rice in <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region> is permitted only if the exporter is able to furnish a certificate from the competent Government Authorities from country of export that the exported rice is GM free.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What is GM? It stands for Genetically Modified</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=45&filename=notification/dgft/2007/dgft07not013.htm" target="_blank">DGFT NOTIFICATION NO. 13(RE-2007)/2004-2009., Dated: July 10, 2007</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Refund Banker Scheme For Chennai, Kolkata, Mumbai And <st1:place w:st="on"><st1:City w:st="on">Bangalore</st1:City></st1:place></font></b></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Give correct address and bank details for quick IT refund</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT recently launched the 'Refund Banker Scheme' to issue refunds expeditiously and correctly. The scheme now operative in <st1:City w:st="on">Delhi</st1:City> and <st1:City
w:st="on">Patna</st1:City> is to be extended to Chennai, Kolkata, Mumbai and <st1:place w:st="on"><st1:City w:st="on">Bangalore</st1:City></st1:place> from 30.09.2007. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Department has noticed that a number of refund vouchers are received back due to incorrect address given by the taxpayers. Some of the taxpayers do not give their correct bank account number on the Income Tax return or fail to give correct MICR code of the bank because of which refund cannot be credited to their account. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To avoid inconvenience, the taxpayers are advised to fill up the Tax Return form properly mentioning the correct address at which refund voucher may be delivered, correct bank details i.e. account number, name and branch of the bank, and MICR code of the bank. Taxpayers must also intimate the change of address, if any, to the assessing officer immediately. </font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Kamal</font></b><font color="#006600"><b> Nath's
export package - has the PM's backing - Service Tax issue yet to be sorted
out</b></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Are the Ministries of Commerce and Finance not on talking terms? Why should the Commerce Minister invoke the PM's name for all his policies, which the Finance Ministry refuses to even acknowledge let alone accept? They seem to have sorted out some of the issues. <b><font color="#663399">Service Tax on exports is yet to be sorted out.</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commerce Ministry has announced a package, the highlights of which are :-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. DEPB rates have been enhanced by 3% for 9 sectors i.e., textiles (including handloom), readymade garments, leather products, handicrafts, engineering products, processed agricultural products, marine products, sports goods and toys. For the rest of the items, DEPB rates have been enhanced by 2%. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. ECGC premium has been reduced by 10% of the existing premium rates.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. To clear all arrears of terminal excise duties and CST reimbursement, an amount of around Rs.600crore has been released. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. The rates of duty drawback has been enhanced by around 10 to 40% of the existing rates.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. The rate of interest on pre and post-shipment credit has been reduced by 2%.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Details of the schemes are given below:</font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Duty Drawback Rates Revised</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Revenue Secretary P.V. Bhide, announced at a press conference yesterday that the All Industry Rates of Duty Drawback for 2007-08 has been worked out and the rates will be announced shortly. The increased rates of drawback would take effect from 1.4.2007. We in TIOL had been eagerly waiting for this to update our CD.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The drawback rates have been determined on the basis of certain broad parameters including</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. the prevailing prices of inputs</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. standard input/output norms (SION) published by DGFT</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. share of imports in the total consumption of inputs and the applied rates of duty</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. the element of education cess</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. The incidence of duty on HSD/Furnace Oil</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. the incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>The rates - revised upward in most cases:-</b></font></p>
<table width="450" border=1 align="center" cellpadding=3 cellspacing=0>
<tr>
<td width=228 valign=top>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Commodity</b></font></p></td>
<td width=167 colspan=2 valign=top>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Existing</b></font></p></td>
<td width=164 colspan=2 valign=top>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Revised</b></font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align=center> </p></td>
<td width=84 valign=top>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Rate</b></font></p></td>
<td width=83 valign=top>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Cap</b></font></p></td>
<td width=73 valign=top>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Rate</b></font></p></td>
<td width=91 valign=top>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Cap</b></font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Silk</b> higher quality </font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10.8%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.325/kg</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8.3%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.250/kg</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Cotton yarn</b> for grey cotton yarn of less than 60 counts</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.8/kg</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.4%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.11/kg</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">dyed cotton yarn of less than 60 counts</font></p></td>
<td width=84 valign=top>
<p align="justify"> </p></td>
<td width=83 valign=top>
<p align="justify"> </p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.5%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.18/kg</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">cotton yarn of 60 counts and more</font></p></td>
<td width=84 valign=top>
<p align="justify"> </p></td>
<td width=83 valign=top>
<p align="justify"> </p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8.8%/ 9.9%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.26 per kg / Rs.33 per kg</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>cotton fabrics</b></font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.7% (grey) / 5.7% (dyed)</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.14 per kg (grey) / Rs.20.5 per kg (dyed).</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.4% (grey) / 7.7% (dyed)</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.19 per kg (grey) / Rs.28 per kg (dyed)</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>hand knotted woolen carpets</b></font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9.4%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.565 per sqm</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12.5%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.700 per sqm</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>silk carpets</b></font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11.8%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.1600 per sqm</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15.5%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.2750 per sqm</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>cotton durries</b></font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9.4%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.20/kg</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11.5%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.26/kg</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>knitted blouses/shirts/tops of cotton</b></font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.31</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.48 per piece</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">knitted blouses/shirts/tops of man-made fibre</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8.1%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.34 per piece</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11.5%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.48 per piece</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">knitted blouses/shirts/tops of cotton and man made fibre blend</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7.5%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.32 per piece</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10.7%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.48 per piece</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">bed linen, table linen, toilet linen, kitchen linen and curtains of cotton</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.4%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.64 per kg</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9.1%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.110 per kg</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">finished leather</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.6%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.7 per sq.ft</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7.5%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.8 per sq.ft</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">leather footwear for adults</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9.5%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.85 per pair</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11.5%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.105 per pair</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">leather apparels</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9.5%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.533 per piece</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11.4%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.650 per piece</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">stainless steel utensils</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15%</font></p></td>
<td width=83 valign=top>
</td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">17%</font></p></td>
<td width=91 valign=top>
</td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">brass builder hardware and handicrafts of brass</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.75/kg</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.110/kg</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">artware/handicrafts of copper</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">15%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.110/kg</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">18%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.155/kg.</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">bicycles and bicycle parts</font></p></td>
<td width=84 valign=top>
</td>
<td width=83 valign=top>
</td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13%</font></p></td>
<td width=91 valign=top>
</td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ball point pens</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.75 per 100 pcs</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8.5%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.225 for 100 pcs</font></p></td>
</tr>
<tr>
<td width=228 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">felt tipped pens</font></p></td>
<td width=84 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12%</font></p></td>
<td width=83 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.200 per 100 pcs</font></p></td>
<td width=73 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13.3%</font></p></td>
<td width=91 valign=top>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Rs.275 per 100 pcs.</font></p></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Customs Department has already implemented EDI at 34 major customs locations covering about 85% of the imports and exports. Under the system, the shipping bill itself is treated as the claim for drawback. The drawback claim is processed on line and the amount is credited into the exporter's account in the bank designated by the Customs immediately after "let export order" and filing of manifest by the carrier without any additional paper work. Commissioners have also been instructed to ensure that all grievances or problems raised by exporters on drawback claims are addressed within 72 hours and, if this is not possible in any case, to bring the matter to the notice of Member (Customs/Export Promotion) in CBEC. Exporters may also bring any delay beyond 72 hours to the notice of Member (Customs/Export Promotion). </font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Appreciated Rupee, harried exporters and Government's succour</font> </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the recent months, the Indian Rupee has appreciated vis-a-vis the US Dollar. Exporters of goods and services from <st1:country-region w:st="on"><st1:place
w:st="on">India</st1:place></st1:country-region> have brought to the notice of the Government the difficulties they face as a result of rupee appreciation. The Government has decided to provide relief to the exporters in the following sectors:-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i)Textiles (including Handlooms), (ii) Readymade Garments, (iii) Leather Products, (iv) Handicrafts, (v) Engineering Products, (vi) Processed Agricultural Products, (vii) Marine Products, (viii) Sports Goods, (ix) Toys and All exporters from the SME Sector.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the existing guidelines, banks charge interest rate not exceeding BPLR minus 2.5% on pre-shipment credit upto 180 days and post-shipment credit upto 90 days. Banks will now charge interest rate not exceeding BPLR minus 4.5% on pre-shipment credit upto 180 days and post-shipment credit upto 90 days on the outstanding amount for the period April 1, 2007 to December 31, 2007 to the above mentioned sectors. Government will provide the requisite interest subvention of 2 percentage points to scheduled commercial banks in this respect.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The amount of subvention will be calculated on the amount of export credit from the date of disbursement upto the date of repayment or upto the date beyond which the outstanding export credit becomes overdue i.e., for pre-shipment credit upto 180 days and post-shipment credit upto 90 days, whichever is earlier. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This was announced by VinodRai, Secretary, Financial Sector, Ministry of Finance at a Press Conference yesterday.</font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">No ceiling of expenditure for reimbursement of deemed export benefits</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Reimbursement claims in respect of deemed export benefits are received and payments made by the Ministry of Commerce, subject to monthly and quarterly ceilings on expenditure. Exporters had represented that these monthly and quarterly ceilings restricted their right to receive payments expeditiously. Ministry of Commerce therefore requested relaxation from monthly and quarterly ceilings of expenditure.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ministry of Finance has now accorded relaxation from monthly and quarterly ceilings of expenditure to enable the Ministry of Commerce to meet in full the pending reimbursement claims. It is estimated that these claims are in the order of Rs.600crore. These claims will be examined and fully reimbursed as expeditiously as possible.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This was stated by Dr. D. Subba Rao, Finance Secretary in a press conference yesterday.</font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">From our Legal Corner - Monday's cases</font></b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_31.gif" alt="Legal Corner Icon" width="191" height="160" hspace="5" border="0" align="left"></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#FF0000">Customs</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">CESTAT comes to rescue of Raj TV - issues order by Dasti to release confiscated goods provisionally</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">M/s Raj Television Networks, had imported 'satellite communication equipments' under EPCG scheme in the year 2003 and obtained clearance of the goods at concessional rate of duty under Customs Notification No 55/2003. SIIB of the Department found misdeclaration, by the importer, of complete equipment as parts and also found that clearance of the goods was obtained without the requisite WPC licence from the Ministry of Communication, Govt. of India. The SIIB seized the goods under Section 110 of the Customs Act, having found misdeclaration and misclassification by the importer. The investigations resulted in the inevitable finding that the equipment, not importable otherwise than under WPC licence, had been imported without such licence and cleared with the benefit of the above Customs Notification and also without satisfying the conditions laid down in the Notification. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Before rejecting the invoice price the Department has to give cogent reasons for such rejection. Strict rules of evidence do not apply to adjudication proceedings - Supreme Court</font> </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#FF0000"><strong>Income Tax</strong></font></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Double Taxation Treaty Vs domestic laws : Domestic I-T Act to prevail over for taxing profits of PE unless contrary is provided for in treaty - ITAT </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is common knowledge that DTAA means a special tax jurisdiction. But where does the domestic tax law stand in case of a tax treaty between two States? What is the scope of applicability of provisions of the domestic laws for taxation of the contracting states in computation of profits attributable to PE? This question was dealt by the Tribunal in an important order in the case of Mashreq Bank of UAE. And the Tribunal noted that unless express provisions to the contrary are provided in the agreement/treaty between the contracting states, <b><font color="#663399">the domestic law of contracting state will continue to govern taxation of income in respective contracting state.</font></b> The issue arose due to disallowance of certain expenses claimed by the assessee from the income attributable to its PE. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u><font color="#663399">See
our columns on Monday for the judgements</font></u></b></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more DDT</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice Weekend.</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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