TIOL-DDT 784 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!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="2"><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 784 </font><font size="3" face="Verdana, Arial, Helvetica, sans-serif"></font><font face="Verdana, Arial, Helvetica, sans-serif"><br>
17.01.2008 <br>
Thursday </font></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Stay put in your jurisdiction – CBDT tells Chief Commissioners </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As Revenue Collection is crucial in the last quarter, the CBDT has asked Chief Commissioners not to move out of their jurisdiction without the prior approval of the Member, CBDT. The Chief Commissioners are also to issue similar directions to their officers also to not move out. Officers will not be given leave except in urgent cases. </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=70&filename=pitara/sernews/order/cbdtorder011_2008.htm" target="_blank">CBDT order No. 11/2008 dated 16 th January 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FM pats Income Tax officers </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Yesterday the Finance minister had a videoconference with his Chief Commissioner of Income Tax and complimented them for the remarkable performance of the Income Tax department, particularly on the revenue side. The Finance Minister stated that the department had done well in collecting higher revenues in 2006-07 and was performing even better in 2007-08. Total direct tax collections were up 42.8 percent as in December 2007, while collection of personal income tax was even higher. For this, the Finance Minister said, the government owed a debt of gratitude to the employees of the Income Tax department for their hard work to boost revenue collection. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A ccording to the FM, a number of factors were responsible for the unprecedented growth in revenue collection – </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. moderate tax rates; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. change in taxpayer behaviour towards better compliance with tax laws; and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. a technology driven tax department which ha d become more taxpayer friendly. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While the tax collection mechanism had become more technology driven and, therefore, non-discriminatory and more transparent, the department needed to become more friendly towards the bulk of taxpayers who were voluntarily complying with the tax laws and tough on the miniscule minority of recalcitrant taxpayers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Finance Minister said that he had sanctioned an incentive of Rs.195 crore to enable the department to improve infrastructure for increasing its operational efficiency by providing for more vehicles and telephones but the department needed to further improve basic facilities for taxpayers, who were customers of the department, such as potable water and clean toilets. The Finance Minister said that a larger amount would be sanctioned as incentive for increased revenue collection in the current year and the department would need to find still better ways and means to utilize these amounts for a lasting impact on its functioning. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any similar talk with Customs, Excise and Service Tax? </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Loading of Bauxite ore from Redi port to be allowed </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At present loading for export, crew baggage, coke/coal and iron ore are allowed from Redi port in Maharashtra . Now bauxite ore is added to the list. </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/2008/cnt08_002.htm" target="_blank">NOTIFICATION NO. 02/2008- Cus .( N.T. ), Dated: January 11, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Committee of Chief Commissioners to review orders of Commissioners – change in jurisdiction </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Chief Commissioner, Pune and Chief Commissioner, Customs, Mumbai III will constitute the Committee of Chief Commissioners for the Pune Customs Commissioner. </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/2008/cnt08_004.htm" target="_blank">NOTIFICATION NO. 04/2008- Cus .( N.T. ), Dated: January 15, 2008 </a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Chief Commissioner LTU , Bangalore and Chief Commissioner, Customs, Bangalore will be the Committee for orders passed by Commissioner, LTU , Bangalore for Central Excise and Service Tax cases. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chief Commissioner LTU , Chennai and Chief Commissioner, Customs, Chennai will be the Committee for orders passed by Commissioner, LTU , Chennai for Central Excise and Service Tax cases. </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=30&filename=notification/excise/2008/exnt08_01.htm" target="_blank">NOTIFICATION NO. 1/2008- CX .. ( N.T. ), Dated: January 15, 2008 </a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Commissioner of Central Excise and Service Tax , Large Tax Payers Unit, Bangalore and Commissioner of Central Excise, Bangalore-III will be the Committee of Commissioners for orders passed by Commissioner of Central Excise (Appeals), Large Tax Payers Unit, Bangalore. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similarly Commissioner of Central Excise and Service Tax , Large Tax Payers Unit, Chennai and Commissioner of Central Excise, Chennai-I , will be the committee for orders passed by Commissioner of Central Excise (Appeals), Large Tax Payers Unit, Chennai. </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=30&filename=notification/excise/2008/exnt08_02.htm" target="_blank">NOTIFICATION NO. 2/2008- CX .. ( N.T. ), Dated: January 15, 2008 </a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>The concept of these Committees is creating a lot of difficulties in the field – more on that some other time. </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Regulatory Framework for Mortgage Guarantee Company </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While announcing proposals for the Union budget 2007-0 8, the Finance Minister announced: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">'
Our people want housing loans. Banks and housing finance companies that lend
against mortgages would have greater comfort if the mortgage can be guaranteed
through a three way contract among borrower, lender and guarantor. Regulations
will be put in place to allow the creation of mortgage guarantee companies
'. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly, RBI had drawn up a draft scheme for considering proposals from Mortgage Guarantee Company for grant of Certificate of Registration. The draft scheme was discussed with the stakeholders and after examination of comments/suggestions received in this regard and with the previous approval of the Central Government, it has been decided to specify Mortgage Guarantee Company as non-banking financial company in terms of powers conferred upon the Bank under Section 45 I (f) (iii) of the RBI Act, 1934. A Notification No. DNBS ( MGC ) 1/ CGM ( PK )- 2008 dated January 15, 2008 is issued in this regard. Further, it has been decided to exempt a Mortgage Guarantee Company from the provisions of Section 45- IA (requirement of registration), Section 45- IB (maintenance of liquid assets) and Section 45-IC (creation and transfer to Reserve Fund a certain percentage of the net profit) of the RBI Act as a separate regulatory framework is being prescribed for such companies. A Notification No.DNBS ( MGC ) 2/ CGM ( PK )- 2008 dated January 15, 2008 in this has been issued. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/rbi_easiest.htm" target="_blank">RBI /2007-2008/224 DNBS / PD( MGC ) C.C.111 / 03.11.001 /2007-08 Dated: January 15, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EASIEST – RBI guidelines – banks not to accept if the assessee code is not mentioned in the challan </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In case, you don't remember, EASIEST stands for <strong>Electronic Accounting System in Central Excise & Service Tax . </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI has noted that the quality of data reported under EASIEST continues to be poor. Approximately, 45% of the challans do not bear any assessee code. RBI says that indication of assessee code and location code in the G.A.R.7 challan by the tax payer has since been made mandatory. Banks are, therefore, advised that no payment of Central Excise & Service Tax should be accepted by bank branches unless the assessee code of the tax-payer is quoted on the G.A.R.7 challan . At the time of acceptance of the challans , the authorised bank branches should, therefore, ensure that the 15 digit/character valid assessee code is quoted by the tax-payer in the challan . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The RBI has also instructed the banks on how to deal with different situations when the assessee code is not available. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/rbi_easiest.htm" target="_blank">RBI /2007-2008/224 DNBS / PD( MGC ) C.C.111 / 03.11.001 /2007-08 Dated: January 15, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Budget exercise on – Rangarajan wants an excise cut while patel wants a Service Tax cut </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Prime Minister ' s economic advisory council head, C Rangarajan had a meeting with the FM and suggested the lowering of excise rates to stimulate growth in consumer durables. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He also advised the finance minister to increase the level of public investment to impart additional growth momentum to the Economy. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Meanwhile Civil Aviation Minister Praful Patel also met the FM and pleaded for lower taxes for aviation fuel and sought a waiver on Service Tax for the business class. If the Union Budget accommodates these demands, the airlines are likely to pass on the benefit to the passengers, resulting in the lowering of airfares. </font></p>
<p align="center"><font color="#FF6633" size="3" face="Verdana, Arial, Helvetica, sans-serif"><strong>ST <em>se </em>GST <em>tak </em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
our columnist G-Bee is not able to continue with the series, we are now opening
up the column for general articles on Service Tax related matters. We will
resume the series as soon as G-Bee comes back. You can send in your Service
Tax related issues for the column. Today we start with an erudite analysis
of the recent Supreme Court judgement we brought you in the <em>Imagic </em> case,
from our prolific author S Sivakumar. This is yet another column open for
you – do send in your views. </font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden <font color="#FF6633" size="5">tiol</font></font> <font color="#006600">– Tomorrow's cases </font></strong></font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><strong><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></strong></b></font></b></font></b></font></b></font></b></font></b></font></strong></font></strong></font></strong></font></strong></font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Central Excise </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Revenue cannot ask assessee to give information about its own dues pending – Order outrageous, atrocious and showing complete lack of knowledge and law on part of adjudicating authority – Tribunal allows interest claim </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These findings are totally outrageous as revenue cannot ask the assessee to give information about its own dues pending against them which should be in the knowledge of the revenue only and the assessees refund claim on that account cannot be delayed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">To say that the CEGAT decision of South Bench is applicable only in South Zone is atrocious and shows complete lack of knowledge and law on the part of the adjudicating authority. </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Income Tax </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notice u/s 151 - Obvious purpose of sanction is to exercise proper supervision by a superior officer of Revenue - Commissioner can grant sanction which can be given by Jt Commissioner : Allahabad High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><span style="text-align:justify"><strong>THE </strong><span style='font-size:10.0pt'>main
ground of challenge is that the notice under section 148 dated 10.1.2007
and has been issued by the Income Tax Officer. According to the petitioner,
this notice has been issued after the expiry of four years from the end
of the relevant assessment year and, therefore, the said notice could
not have been issued by the Income Tax Officer.</span><span style='font-size:10.0pt'></span></span></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Call centre – telecom expenditure - once expenses incurred are for business, it will be nobody's case to disallow the same as having not been incurred for rendering the services as a call centre : ITAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">With the wide increase of telecommunication services and the thrust of the assessee in running a call centre, it becomes important to note that once the expenses incurred are for the business, it will be nobody's case to disallow the same as having not been incurred for rendering the services as a call centre by the assessee, who has claimed deduction u/s. 10A , which the AO verified as another provision of section 10A compared to section 80HHE . </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>See our columns Tomorrow for the judgements </strong></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 time. </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p>
</body>
</html>