TIOL-DDT 667 · 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 667</font><br>
30.07.2007<br>
Monday</b></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income Tax Returns for Assessment Year 2006-07 - CBDT Clarifications</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT clarifies that </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. The return of income/ fringe benefits for assessment year 2006-07 or any earlier assessment years shall be furnished in the appropriate form as applicable in that assessment year.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Return of income/ fringe benefits can be furnished in any of the following manners:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) furnishing the return in a paper form;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) furnishing the return electronically under digital signature;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv)furnishing a bar-coded return in a paper form.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. It is mandatory for companies to file their returns electronically. Charitable/religious trusts, political parties and other non-profit organisations have to submit the return in paper form only. Other tax payers have all the four options mentioned above.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Except ITR 7 the returns are not to be accompanied by any attachments or enclosures. No statement of income, no copies of balance sheet, no profit and loss account, no TDS Certificates, no, nothing is to be enclosed. However, these documents are to be produced on demand. Chief Commissioners and Commissioners are to ensure that if there are any enclosures, they are detached and returned to the assessee immediately.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. The Audit Report under Section 44AB also need not be attached with the return. But the audit report should be got ready and retained with the assessee to be produced during the assessment proceedings.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. CCs and Commissioners should ensure that the Bar coded ITR-5 forms are to be handled and stored with care and caution. They should not be folded. </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=36&filename=notification/cbdt/2007/it07cir05.htm" target="_blank">Income Tax Circular No. 5/2007, Dated July 26, 2007</a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">A date with IT Returns</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Tomorrow
is the last day to file your IT Returns. Last week I was in the office of
a leading MNC tax consulting firm in Bangalore, and I asked a few friends
there whether they had filed their Income Tax returns and they said, they
were waiting for the announcement of extension of last date. I warned them
that this year there may not be any extension and they better file their
returns by 31<sup>st</sup> July 2007. My good friend Suresh Nair who was
with me in the Central Excise Department and who is now with a leading consulting
firm believed that when he can crack complex indirect tax issues, just filling
up an ITR form would not be very difficult and he started on this mission
yesterday but realized that it was not his cup of tea and finally sought
the help of a CA. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As for me, I simply handed over all my accounts to my CA and signed wherever he wanted me to sign. He took originals of all the documents including deeds of the properties I sold and bought, TDS certificates, investments, advance tax receipts etc,. I told him the Board Circular says, <b><font color="#663399">no enclosures </font></b>with the Returns and he told me, <b>"<font color="#663399">you
are filing the return with the ITO, not the Board." </font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After paying Income Tax on every rupee, I earn, I am not really sure whether I am an offender or a tax compliant citizen. Only my CA, AO and God will know for sure!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Today we bring you in our <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=5834" target="_blank">Top
Special Column</a> Suresh's experiences in filing the returns. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Bhagavan Srikrishna said in <i>Bhagavat
Gita, "anubhavadharajeevitham"</i> - "life is a series of experiences - filing IT return is one!</font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Wilful Service Tax Evaders - Beware - CBEC Member</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Inaugurating
the Associated Chambers of Commerce and Industry of India (ASSOCHAM) Conference
on Service Tax and CENVAT, Mr.P C Jha, Member, CBEC said that the government
was finalising the two Masters circulars on technical and procedural issues
and shall be issued on 3rd week of August. These were to be effective from
1<sup>st</sup> July 2007!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Quotes from Mr. Jha's remarks:-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.
Though the service tax collection during 2007-08 was expected to be Rs.50,200
crore as against Rs.37,500 crore in last year, the potential were very high
and therefore the revenue department will take serious action against those
also are deliberating violating the law.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The government is receiving feedback from industry and chambers circles and after studying the same will finaliase the master circulars.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. This will remove many of the existing irritants and uncertainties and make procedures easy to understand and follow. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. there is a need for better understanding and implementation of the service tax provisions by the field administration.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Government will take steps to ensure faster adjudication of service tax cases and also for providing a judicious discipline at the field levels.</font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Anti-dumping duty on tyres, tubes and flaps from <st1:country-region
w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region> - Definitive</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">The anti-dumping duty is imposed on tyres, tubes and flaps originating in or exported from </font></strong>People's Republic of <st1:country-region w:st="on">China</st1:country-region> and <st1:country-region w:st="on"><st1:place w:st="on">Thailand</st1:place></st1:country-region><strong>. <font color="#663399">The anti-dumping duty is effective from 9<sup>th</sup> October, 2006 when a provisional anti-dumping duty was imposed on these products.</font></strong></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=23&filename=notification/custom/2007/ctariff07_088.htm" target="_blank">Notification No. 88/2007-Cus., Dated July 24, 2007</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Anti-dumping duty on Hexamine from <st1:country-region w:st="on"><st1:place
w:st="on">Russia</st1:place></st1:country-region> and Saudi - Extended</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">The Anti-dumping duty on Hexamine originating in, or exported from, <st1:country-region
w:st="on">Russia</st1:country-region> and <st1:country-region w:st="on"><st1:place
w:st="on">Saudi Arabia</st1:place></st1:country-region>, was first imposed provisionally from 28<sup>th</sup> June, 2001. This was made definitive from 27.03.2002. This was to expire on 27<sup>th</sup> June, 2006. But by Notification No. 65/2006-Cus., Dated 27<sup>th</sup>June, 2006, the duty has been extended up to 27<sup>th</sup> June, 2007. So the duty expired on 28<sup>th</sup> June, 2007. Now it is re-imposed for another period of five years from 25<sup>th</sup> July, 2007.</font></strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Was there no anti-dumping and injury to domestic industry during the period 28<sup>th</sup> June, 2007 to 24<sup>th</sup> July, 2007 when there was no anti-dumping duty on the product? </strong></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=23&filename=notification/custom/2007/ctariff07_089.htm" target="_blank">Notification No. 89/2007-Cus., Dated July 25, 2007</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Semi-conductor inputs - Exempted from ACD</b></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Government has exempted Additional Customs Duty on several machinery items and their components, pollution control equipment, moulds and dies etc., used for manufacture of semi-conductors, displays like LCD, storage devices, solar cells, micro and nano technology products.</strong></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=23&filename=notification/custom/2007/ctariff07_090.htm" target="_blank">Notification No. 90/2007-Cus., Dated July 26, 2007</a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Exchange rates announced for imported goods and export goods</font></b></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=24&filename=notification/custom/2007/cnt07_075.htm" target="_blank">Notification Nos. <u>75/2007 </u></a><b><u>and </u></b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_076.htm" target="_blank">76/2007-Cus., (N.T.), Dated July 26, 2007</a></u> fix the exchange rates for imports and exports respectively with effect from 1<sup>st</sup> August, 2007. Notifications 63 and 64/2007-NT-Customs, dated the 26<sup>th</sup> June, 2007 are superseded.</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_075.htm" target="_blank">Notification Nos.</a></u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_075.htm"><u> 75/2007</u></a><u><b> and </b><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_076.htm" target="_blank">76/2007-Cus., (N.T.), Dated July 26, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Import of rough marbles blocks/slabs - DGFT Instructions</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Only those who have manufacturing units and have made imports in the preceding years will be eligible.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) There is an eligibility entitlement based on the previous years turn over.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) License shall be subject to actual user condition.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv)An Additional quota may be given for actual users like hotels and places of worship.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Suitable amendments have been made in the Schedule (i) to the ITC (HS) Classification.</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=46&filename=notification/dgft/2007/dgft07cir001.htm" target="_blank">DGFT Circular No. 01/2007., Dated July 26, 2007</a> <strong>and</strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2007/dgft07not017.htm" target="_blank">DGFT Notification No. 17 (RE-2007)/2004-09., Dated July 26, 2007</a></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>From our Legal Corner - tomorrow's cases<br>
</b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><b><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></b></b></font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Income Tax - Sub-Sec (2) of Sec 263 - Clock of limitation starts ticking from date of assessment order and not from re-assessment order.</font></b></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE larger question before the <st1:Street w:st="on">Apex Court</st1:Street> was the computation of period of limitation under Sub-section (2) of Sec 263 of the Income Tax Act.</strong></font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Capital goods credit vis-a-vis depreciation under I-T Act - Single Member Bench holds that Division Bench order in Suprajit Engineering is inconsistent with provisions of law, refers matter to President for reconsideration by a Full Bench </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">THE Division Bench of the CESTAT, SZB, <st1:place w:st="on"><st1:City w:st="on">Bangalore</st1:City></st1:place>, in the case of Suprajit Engineering Ltd</font> [</strong><a
href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2007/2007-TIOL-180-CESTAT-BANG.htm" target="_blank"><font size="1">2007-TIOL-180-CESTAT-BANG</font></a><strong>] <font color="#663399">held that "there is nothing in the rules, which debars the appellant from availing depreciation on the balance 50% of the duty, which is not availed as Cenvat credit." </font> </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">A netizen had, on our message board, called this a blockbuster judgment that was waiting to happen when we have ingenious assessees and tax consultants to explore all permutations and combinations. He had also remarked that such judgments come as a wake up call for lawmakers to be prudent before drafting stingy clauses in a statute. Unfortunately, although the decision was reported by us on February 8<sup>th</sup> 2007, no amendments have been effected till date. Probably, it may not be needed...after all... read further! </font></strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A similar issue came before the Single Member of the West Zonal Bench of the Tribunal. As for the caption and the imminent provocative question, the answer has been provided by the Hon'ble Member himself as to why he chooses to deviate from the practice of 'judicial discipline'. </strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>LSHS used in generating electricity captively consumed for manufacture of final goods - eligible for Cenvat Credit - however, no credit on inputs used for electricity used for housing colony and schools : Apex Court </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">IN</font> </b>this batch of civil appeals, the short question before the Supreme Court is : <b><font color="#663399">whether the assessee is entitled to MODVAT credit under Rule 57A on Low Sulphur Heavy Stock (LSHS) and furnace oil used for generating electricity captively consumed</font></b> for the manufacture of the final products such as caustic soda, cement etc.</font></p>
<p align="justify"><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Service Tax paid on GTA service during 1997-98 - No refund : Tribunal </font></b></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u>See our columns tomorrow for the judgements</u></b></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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