TIOL-DDT 698 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p><font size="3" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">TIOL-DDT 698</font></b><b></b></font><font face="Verdana, Arial, Helvetica, sans-serif"><font size="2"><b><br> 13.09.2007<br> Thursday</b></font></font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Electronic payment of excise duty – one more day!</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Central Excise Rules have been amended to provide that the last date for payment of excise duty if the duty is paid electronically through internet banking is 6<sup>th</sup> of the following month for general assessees and 16<sup>th</sup> of the following month for SSI units. The present dates of 5<sup>th</sup> and 15<sup>th</sup> for those who pay manually remain unchanged. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Why this one day grace? Is it to encourage e-payment? If so, maybe at least ten-fifteen days should have been given. Otherwise internet banking is instantaneous and money gets transferred at the click of a mouse and so there is no requirement of an extra day for this type of payment. </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_34.htm" target="_blank">NOTIFICATION NO. 34/2007-Cex., (<st1:GivenName w:st="on">N.T.), Dated: <st2:date ls="trans" Month="9" Day="11" Year="2007" w:st="on">September 11, 2007</st2:date></a></u><b><u><st2:date ls="trans" Month="9" Day="11" Year="2007" w:st="on"></st2:date></u></b></font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Vivek Johri is new <st2:stockticker w:st="on">TRU</st2:stockticker> JS, Board confirms.</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yesterday's DDT had pointed out about <st2:PersonName w:st="on"><st1:GivenName w:st="on">Vivek <st1:Sn w:st="on">Johri</st2:PersonName>'s appointment as Joint secretary, <st2:stockticker w:st="on">TRU</st2:stockticker> and how the Board has not publicised it. We are happy to report that the Board has now made available to us the office order appointing <st1:GivenName w:st="on">Vivek <st1:Sn w:st="on">Johri as <st2:PersonName w:st="on"><st1:GivenName w:st="on"><st2:stockticker w:st="on">TRU</st2:stockticker> <st1:Sn w:st="on">JS</st2:PersonName> wef from 31.10.2007 and attaching him to the <st2:stockticker w:st="on">TRU</st2:stockticker> as OSD with immediate effect so that he can familiarise with <st2:stockticker w:st="on">TRU</st2:stockticker> work. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Thank you Board! And we wish the new incumbent all the best in his new assignment. </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=70&filename=pitara/sernews/order/order240_2007.htm" target="_blank">CBEC OFFICE ORDER NO 240/2007</a></u> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/order240_2007.htm"><u>Dated : <st2:date ls="trans" Month="9" Day="6" Year="2007" w:st="on">September 6, 2007</st2:date></u></a><b><u><st2:date ls="trans" Month="9" Day="6" Year="2007" w:st="on"></st2:date></u></b></font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Preferential Trading Agreement between <st2:country-region w:st="on">India</st2:country-region> and <st2:country-region w:st="on"><st2:place w:st="on">Chile</st2:place></st2:country-region> – concessional rate of customs duty </b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Consequent to the Determination of Origin of Goods under the Preferential Trading Agreement between the <st2:PlaceType w:st="on">Republic</st2:PlaceType> of <st2:PlaceName w:st="on">India</st2:PlaceName> and the <st2:PlaceType w:st="on">Republic</st2:PlaceType> of <st2:PlaceName w:st="on">Chile Rules</st2:PlaceName>, 2007, notified on 17th August, 2007, the Government has announced concessional rates of customs duty for goods of origin of the <st2:place w:st="on"><st2:PlaceType w:st="on">Republic</st2:PlaceType> of <st2:PlaceName w:st="on">Chile</st2:PlaceName></st2:place>. The rates vary from 15% to 25% of the applied rate. The applied rate is the rate in the Tariff read with any exemption notification. </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=23&filename=notification/custom/2007/ctariff07_101.htm" target="_blank">NOTIFICATION NO. 101/2007-Cus., Dated: <st2:date Year="2007" Day="11" Month="9" ls="trans" w:st="on">September 11, 2007</st2:date></a></u><b><u><st2:date Year="2007" Day="11" Month="9" ls="trans" w:st="on"></st2:date></u></b></font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Extension of due date of payment of the first and second instalment of advance FBT on ESOPS – CBDT yet to decide method for determination of the fair market value</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By virtue of the provision of clause (d) of sub-section (1) section 115 WB, introduced by Finance Act, 2007, an employer is liable to pay Fringe Benefit Tax on any consideration for employment provided by way of any specified security or sweat equity shares allotted or transferred, directly or indirectly, by such employer free of cost or at concessional rate to his employees. The value of the fringe benefit is determined as the fair market value of the specified security or sweat equity share on the date on which the option vests with the employee as reduced by the amount actually paid, by or recovered from the employee in respect of such security or shares. The fair market value for this purpose is to be determined in accordance with the method prescribed by the Board. Since the method for determination of the fair market value was yet to be prescribed, the Central Board of Direct Taxes (CBDT) had earlier extended the date of payment of first instalment of Fringe Benefit Tax, which was to be paid on or before <st2:date Year="2007" Day="15" Month="6" ls="trans" w:st="on">June 15, 2007</st2:date>, in respect of transfer or allotment of specified security or sweat equity shares to its employees, to 15th of September, 2007 (the date of second instalment). <br> <br> The Central Board of Direct Taxes (CBDT) is currently in the final stage of finalizing the method for determination of the fair market value. In the meantime, the extended first instalment and the second instalment of advance tax in respect of fringe benefit tax falls due on 15th of September. In the absence of a method for determination of the fair market value, it will not be possible for an employer to determine the value of these instalments of advance tax related to fringe benefit tax in respect of allotment or transfer of specified security or sweat equity shares to its employees.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <br> In order to mitigate this hardship, the CBDT has decided that the first instalment of Fringe Benefit Tax, which was to be paid on or before <st2:date ls="trans" Month="6" Day="15" Year="2007" w:st="on">June 15, 2007</st2:date>, and the second instalment of Fringe Benefit Tax, which is to be paid on or before <st2:date ls="trans" Month="9" Day="15" Year="2007" w:st="on">September 15, 2007</st2:date>, in respect of transfer or allotment of specified security or sweat equity shares to its employees, may be paid on or before the 15th of December, 2007 (the date of third instalment).</font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tax collections up</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Direct tax collections recorded a growth of 42% for the five-month period ending August 2007. Net tax collections stood at Rs.61,030 crore, up from Rs.42,980 crore during the same period last fiscal. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Corporate tax recorded a growth of 49.49% at Rs.33,766 crore, up from Rs.22,587 crore during the previous fiscal. Personal income tax (including FBT, <st2:stockticker w:st="on">STT</st2:stockticker> and BCTT) grew by 33.76% at Rs.27,206 crore, up from Rs.20,340 crore. The growth in Securities Transaction Tax (<st2:stockticker w:st="on">STT</st2:stockticker>) was 35.16% and Banking Cash Transaction Tax (BCTT) was 79.73%.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">During the fiscal 2007-08, direct tax collections have consistently maintained a growth of over 40%, reflecting continued buoyancy in the economy, better tax compliance and improved tax administration.</font></p> <p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Indirect Taxes:</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs revenue grew by 18.7% to 40571 Crores and excise Revenue was up by 6.3% to 44469 Crores while service Tax Revenue was up by 38.5% to 13636 Crores. The Indirect taxes revenue has already crossed One lakh Crores and we are just half way through! </font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>From our Legal Corner – tomorrow's cases</b></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><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></b></font></strong></font></p> <p align="justify" ><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Income Tax</b></font></p> <p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Learned Advocate at receiving end of Revenue's ire - Interest on deposits held by solicitor on behalf of clients, not taxable - mere voluntary payment of tax even when not payable does not restrict assessee's right to challenge tax : ITAT</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">IF</font> </b>you thought only ordinary taxpayers are harassed and you can get over with a little help from advocates, here is the case of an advocate who paid the tax which was not payable - to <b><font color="#663399">buy peace</font></b> with the Department. And they struck him with a penalty and interest.</font></p> <p align="justify" ><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Central Excise </b></font></p> <p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Adjudication based on monetary limits - CBEC allocating different works to various classes of officers cannot cut down jurisdiction vested in them by statute and may be followed by them at best as matter of propriety : Tribunal</b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">THE</font> </b>Revenue is in appeal against the order passed by the Commissioner of Central Excise(Appeals), Indore, the reason being that the appellate authority without going into the merits of the case passed an order holding that the adjudicating officer could decide the cases involving an amount up to Rs.50,000/- (fifty thousand) only but not more than that. The appellate authority also referred to the Board Circular no. 66/88 and observed that the same was also not taken note of by the adjudicating authority.</font></p> <p align="justify" ><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Service Tax </b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Delay in payment of service tax - imposition of penalty u/s 76 justified - Tribunal should not have interfered : <st2:PersonName w:st="on"><st1:GivenName w:st="on">Karnataka <st1:Sn w:st="on">HC</st2:PersonName></font><st2:PersonName w:st="on"></st2:PersonName></b></font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE appeal by Revenue before the High Court is against the CESTAT order reducing the penalty, for non-payment of Service Tax. The Adjudicating authority imposed a penalty of Rs.3,03,300/ @Rs.100 per day, which was confirmed by the Appellate Authority. CESTAT reduced the penalty to Rs. 50,000/- and the aggrieved Revenue is before the High Court.</font></p> <p align="justify" ><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u>See our columns tomorrow for the judgments</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> </body> </html>