TIOL-DDT 707 · 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> <div class=Section1> <p align="justify"><font size="2"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 707</font><font face="Verdana, Arial, Helvetica, sans-serif"><br> 26.09.2007<br> Wednesday</font></b></font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Inform your PAN to the deductor or face consequences - CBDT</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Are you getting salary or any other payment and is Tax deducted at source for you? Have you informed your PAN to your deductor? If not, do it immediately or face penal action under the Income Tax Act. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CBDT in a release has stated that <st1:stockticker w:st="on">TDS returns from the employers and other deductors will not be accepted for the quarter ending on 30.9.2007 and thereafter, if the <st1:stockticker w:st="on">TDS return for salaries does not have at least 90% PAN data. <st1:stockticker w:st="on">TDS returns for payments other than salaries should have at least 70% PAN data.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As the requirement of filing copies of <st1:stockticker w:st="on">TDS certificates with the Income Tax returns has been done away with, in the absence of PAN details, the Department is not able to give <st1:stockticker w:st="on">TDS credit.</font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>No more paper returns</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT reiterates that filing of filing of <st1:stockticker w:st="on">TDS / TCS returns in electronic form is mandatory for</font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. government offices and companies,</font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. deductor / collector required to get his accounts audited under section 44AB of the Income-tax Act in the immediately preceding financial year, and </font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. where the number of deductees/collectees records in a quarterly statement for any quarter of the immediately preceding financial year is equal to more than fifty.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Returns in paper form will no longer be accepted from such tax deductors / collectors.</font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Committee of Chief Commissioners for specific orders.</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chief Commissioner of Customs, Chennai and Chief Commissioner of Central Excise, <st1:place w:st="on"><st1:City w:st="on">Coimbatore have been appointed to review certain specific orders passed by Commissioner of Customs, Tuticorin and Tiruchirappalli</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_098.htm" target="_blank">Notification No. 98/2007-Cus(NT)., Dated </a></u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2007/cnt07_098.htm"><st1:date ls="trans" Month="9" Day="24" Year="2007" w:st="on"><u>September 24, 2007</u></a></font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Avian Influenza - import of live-stock and live-stock products prohibited</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has prohibited import of the following, from all countries</font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) domestic and wild birds including the captive birds (excluding poultry);</font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) unprocessed meat and meat products from Avian species including wild birds (except poultry);</font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) semen of domestic and wild birds.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Government has also prohibited the import of the following, from countries reporting Avian Influenza</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Live poultry;</font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. day old chicks, ducks, turkey and other newly hatched Avian species;</font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. meat and meat products from Avian species including wild birds;</font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. hatching eggs;</font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. eggs and egg products (except Specific Pathogen Free eggs);</font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. feathers;</font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. live pig and pig products (including pig bristles);</font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. pathological material and biological products from birds;</font></p> <p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. product of animal origin (from birds) intended for use in animal feeding or for agricultural or industrial use.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The prohibition will be in force till further orders and will not apply to dry processed pet food containing the ingredient of meat and meat products from Avian species, pig and product of animal origin (from birds) intended for use in animal feeding</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/dgft07not030.htm" target="_blank">DGFT NOTIFICATION NO. 30 (RE-2007) / 2004-2009, Dated: <st1:date ls="trans" Month="9" Day="24" Year="2007" w:st="on">September 24, 2007</a></u></font></p> <p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">The future in our Hands - from vulnerability to resilience: </font></b></font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>But how about giving some tax exemptions?</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Speaking at a high level meeting on Climate Change, in <st1:State w:st="on"><st1:place w:st="on">New York yesterday, the FM said, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are profoundly concerned about environmental degradation and climate change. Our per capita consumption of energy is 530 kgoe of primary energy compared to a world average of 1770 kgoe. Our per capita emission of CO2 is among the lowest in the world: it is approximately 1 tonne per annum as against a world average of 4 tonnes per annum. Currently, developing countries bear an inordinate share of the burden of climate change, though this is due to the high-level of emissions of developed countries. Developing countries are, therefore, obliged to significantly augment their capacity to cope with and adapt to climate change. We acknowledge the principle of common and differentiated responsibilities.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We have taken a number of measures that are inherently supportive of sustainability and clean development. We have insisted on use of CNG for public transport; we have introduced the metro rail in many cities; and we have commenced a major bio-diesel programme including mandatory blending of ethanol in petrol. We have also launched the Green India project that will be the world's largest afforestation project covering six million hectares of degraded forest land.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As a result, we have raised energy efficiency in all the major energy intensive sectors - steel, aluminium, fertilizer, paper and cement. We propose to make available Compact Fluorescent Lamps at the price of normal incandescent bulbs. The earth's atmosphere is a common resource for all of humankind. The problem lies not in accessing this resource but in its excessive usage. <st1:country-region w:st="on"><st1:place w:st="on">India</st1:country-region> is committed to sustainable development, and that means sustainable patterns of production and consumption.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">FM Sir, are you aware there are a few enterprising young professionals in <st1:country-region w:st="on"><st1:place w:st="on">India</st1:country-region> offering <b><font color="#663399">consultancy on Carbon Advisory Services & Climate Change Mitigation</font></b>. They help their clients to claim valuable carbon credits and thereby earn good foreign exchange? Shouldn't you exempt this service from Service Tax, if at all it is taxable? If it is not taxable, you should give a clarification that it is not. </font></p> <p align=center ><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Is the Indian Lawyer afraid of competition? Foreign Lawyers - Welcome</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While MNCs have walked into all spheres of economic activity, the hallowed portals of our Bars have been closed for foreigners. But how long can you really stop them? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The government will soon be permitting foreign law firms to set up their offices in <st1:country-region w:st="on"><st1:place w:st="on">India</st1:country-region> in close collaboration with their domestic partners. This will lead to healthier competition, according to <st1:PersonName w:st="on">Law Minister <st2:GivenName w:st="on">H</st2:GivenName> <st2:middlename w:st="on">R</st2:middlename> <st2:Sn w:st="on">Bhardwaj</st2:Sn>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Advanced law institutions would be set up in <st1:country-region w:st="on">India</st1:country-region> in collaboration with the best global legal institutes in <st1:country-region w:st="on">UK</st1:country-region> and <st1:country-region w:st="on"><st1:place w:st="on">USA</st1:country-region> with world class faculties that can teach a combination of economics and law that will teach legal aspirants to write bilateral agreements in a manner that can resolve disputes amicably and professionally. The country, he said, is paying foreign law firms to avail of legal services. "In Enron case, I paid Rs 100 crore (to overseas law firms)," Bhardwaj said, referring to the arbitration proceedings by foreign lenders to the Dabhol power project.</font></p> <p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:stockticker w:st="on"><b><font color="#006600">CBI arrests former Chief secretary of UP</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:stockticker w:st="on">CBI, yesterday arrested a former Chief Secretary of <st1:PersonName w:st="on"><st2:GivenName w:st="on">Uttar</st2:GivenName> <st2:Sn w:st="on">Pradesh</st2:Sn> during the course of investigation of a criminal case relating to the possession of huge disproportionate assets by the official. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><st1:stockticker w:st="on">CBI claims that</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. He has 84 immovable properties in prime areas of <st1:City w:st="on">Delhi, NOIDA, <st1:City w:st="on">Ghaziabad, Greater NOIDA, <st1:place w:st="on"><st1:City w:st="on">Lucknow, Behraich and Nainital.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Over 100 Bank Accounts having huge deposits have also been unearthed besides large investments in shares, debentures and luxurious vehicles. </font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. He opened a Bank A/c in the name of his father by using forged signatures on the Account Opening forms and with the ill-gotten money deposited in this account acquired eight properties in prime areas of <st1:City w:st="on">Delhi and <st1:City w:st="on"><st1:place w:st="on">Lucknow.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. The Bank Account continued to be operated by him for a period of 18 months even after his father's demise by forging his signatures and more than Rs. 40 lakhs was laundered during the period.</font></p> <p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. He constructed a palatial house in <st1:City w:st="on"><st1:place w:st="on">Lucknow, on three combined plots.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. while working as Vice Chairman, Lucknow Development Authority in 1982, he acquired 10 plots in the names of various persons for which, documentary evidence in his own handwriting, has been found.</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"><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></b></font></strong></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 color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Collection of blood samples on behalf of principal lab, not Business Auxiliary Service - it is technical testing and analysis and is excluded from Service Tax by definition which excludes testing or analysis in relation to human beings or animals - High Court</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The High Court did not entertain any doubt that merely because any incidental service is rendered by the assessee-respondent like putting across or dropping of the name of the principal company, it would become part of the definition of 'Business Auxiliary Service' within the meaning of Section 65 (19) (ii) of the Act.</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>Can double benefits u/s 10B and Sec 80HHC be allowed on exports of same goods? - Can Revenue deny Sec 80HHC benefits if exports are made from third country? - Tribunal says YES in first case and NO in second</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">CAN</font> </b>double benefits under Sec 10B and also under Section 80HHC be availed on export of the same goods? Should Income Tax allow Sec 80HHC benefits if an exporter procures orders and closes the transaction by procuring goods from a third country and shipping the same straight to the buyer country, without physically bringing the goods to India? These two remarkable questions came up before the Jaipur Bench of Tribunal recently. And the ITAT has held that the double benefits can be allowed as the benefit u/s 10B for the Eous are on the income whereas the Sec 80HHC benefits to the merchant exporter were for the act of exports and bringing the exports proceeds in the required foreign exchange.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Need for notice u/s 143(2) cannot be dispensed with in a case where AO proceeds to make inquiry for assessment, and determination of taxes payable after issuing notice u/s 143(1) as well : ITAT</font></b></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Limitation is one of the most inflexible rule in any scheme of assessment. Therefore, Sec.143(2) cannot be brushed-aside as a procedural section. It is a procedural section coupled with rule of limitation. <b>A notice barred by limitation is no notice at all.</b></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>Supplies by EoU to DTA - Taking credit of education cess is not hit by rule 3(7)(a) of Cenvat Credit Rules - Prima facie case made out for waiver of duty demand : Tribunal</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the present case, the short issue is whether the Education Cess paid by the 100% EOU can be allowed as credit. </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> </div> </body> </html>