TIOL-DDT 848 · 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 align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 848</font><br> 21.04.2008 <br> Monday </strong></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>On-board visa checking, joint customs inspection for Maitree – Bangladesh suggests to India </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Bangladesh proposes to India introduction of on-board visa checking and setting up of a common station for joint customs checking of the passengers of Dhaka-Kolkata train Maitree Express. This comes in the wake of passengers' sufferings due to too much time taken in customs and immigration formalities during the train's maiden trip. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Other recommendations include return ticket sale at both sides, easing visa system for the passengers and promotional activities to popularise the service. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The famous train service, which was suspended in March 1965 after the India-Pakistan war, resumed on April 14. Though the journey was comfortable and immigration checking at Darsana in Chuadanga was simple, enthusiasm of the inaugural run's passengers waned when they faced the customs and immigration checking at Gede in India . In sweltering heat, the passengers had to wait for nearly two and half hours in a metal cage. After getting down from the train with all their baggage, the passengers had to stand in queue for their turn for checking. Though there is arrangement for food there, the travellers could not buy those for not having Indian currency during the stopover. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Lack of toilets also added to the passengers' woes. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Though the journey took less than eight hours, the total checking alone took five hours. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“I don't think anyone of this trip would feel like travelling in this train again if things go on like this,” a foreign ministry official said, sweating in the tin-roofed waiting hall at Gede . </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The passengers suggested setting up of more counters and employing experienced officials. When the passengers of the inaugural run from Dhaka were returning on Wednesday, they were forced to wait at the exit of Gede waiting hall for a long time as the official having the key of the door could not be found, though the train was scheduled to leave in 10 minutes. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Meanwhile, passengers from Kolkata have to wait at Darsana for more than one hour as the Kolkata-bound train takes more time to reach there. When both the trains are there, the Indian engine replaces the Bangladeshi one and starts for Kolkata with passengers from Dhaka. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“We can reduce the time by at least one hour by adjusting the schedules so that those from Kolkata don't have to wait,” said an official. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ON BOARD CHECKING, COMMON STATION </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Bangladesh has already asked India informally to consider on board visa checking and Indian High Commissioner to Bangladesh Pinak Ranjan Chakravarty said that the two countries are considering it. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“Officials of both the countries will conduct the checking at a common station to be set up on the border. Passengers will not have to go through the checking twice.” If India agrees, the station will be set up in a year, the Bangladeshi official added. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>HASSLE DURING TICKET PURCHASE IN KOLKATA </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The passengers from Dhaka faced unbearable sufferings when they went to buy return tickets in Kolkata. They were asked to go to Rail Bhaban at Fairly Place in Kolkata at 8:00am on April 15 and most of them had to wait till 3:00pm to get the tickets for Dhaka. Though Indian authorities made the security system foolproof, they are yet to put any well- organised system for ticket sale. The two computers used by the staff there remained out of order for a long time. “You see, our computers are not working,” a female staff said, while struggling to pacify the agitating passengers who started shouting at one stage. Bangladesh wants the Indian authorities to speed up the ticket sale process as well as to start selling Maitree Express tickets at the Kolkata Station instead of the Rail Bhaban . </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Many passengers have asked for easing the visa issuing system and establishing separate counters at Indian High Commission in Dhaka for the Maitree passengers. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since the train runs on Saturday and Sunday while Friday and Saturday are weekly holidays, special visa arrangement should be made for the passengers, a communication ministry official said. </font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Refund of Service Tax on exports – Board wants expeditious disposal – within 30 days </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC reminds that 16 taxable services have been notified and the service tax paid on these taxable services, which are attributable to exports even if they are not used as input services, shall be refunded to exporters [notification No.43 /2007-ST, dated 29.11.07 and notification No.41 /2007-ST, dated 06.10.07, as amended by notifications No.42 /2007-ST, dated 29.11.07, No.03 /2008-ST, dated 19.02.08 & No.17 /2008-ST, dated 01.04.08. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board desires that refund of service tax paid on taxable services used by exporters for export goods should be disposed of expeditiously. The refund claims should be finalized within a maximum period of 30 days from the date of filing of refund claim. Commissioners are advised to put in place a system of review and monitoring the disposal of refund claims filed by the exporters. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any refund claim filed by an exporter which is not disposed of within the maximum period of 30 days, for any reason whatsoever, should be reported by the Commissioner to the Chief Commissioner concerned in the proforma given by the 10 th of every month. If there is no such case, nil report should be sent. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Details of refund claims which are not disposed of within 45 days from the date of filing, for whatsoever reasons, should be sent by the Commissioner to Member (Service Tax) in the proforma so as to reach by 10 th of the following month with copy to Chief Commissioner concerned. <strong> [A rare correct use of the word concerned, it used to be always the concerned commissioner] </strong> Special efforts may be taken to dispose of the refund claims filed by small and medium exporters expeditiously. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us hope the field has some respect for this Board Instructions and ensure that refunds are indeed sanctioned expeditiously. </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=41&filename=notification/servicetax/2008/st-instrc341.htm" target="_blank">CBEC F. No. 341/15/2007- TRU Dated: April 17, 2008 </a></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Delhi Service Tax Commissionerate drops “names” </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Well, this is not really about dropping names, but about dropping of dropping names! <strong>DDT </strong> had written about the illegal publication of names of alleged offenders by Delhi Service Tax Commissionerate, in spite of clear rules against such publication by Commissioners, when only the Government had the power to do it. See <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=6951" target="_blank">TIOL-DDT 817 <br> 04.03.2008 </a>and <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=7021" target="_blank">TIOL-DDT 825 14.03.2008 </a></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We are happy to report that the Delhi Service Tax Commissionerate has now decided to follow the legal route and show respect to LAW. Their latest release states, The Anti-Evasion branch of Service Tax Commissionerate, Delhi has completed investigation in three more cases and issued Show Cause Notices to big Tour Operators for non payment of service tax on “Outbound tours” demanding service tax, education cess and higher and secondary education cess amounting to Rs. 23.69 crores - Without mentioning the names of the tour operators, as was the practice earlier. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We always applaud whenever state sponsored lawlessness or disobedience of the law by the State is discontinued. It is indeed heartening to note that the Commissionerate has realised that it has to follow the laws of this land and it has no business or right to publish the names of all those against whom it has decided to issue SCNs . While the latest releases of the Commissionerate intelligently avoid the names of the evaders, the previous releases with names are still available in their website. <br> </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">“However high you might be, yet the law is above you”. </font></strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><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 color="#006600" 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></strong></font></strong></font></strong></font></font><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Jurispruden<font color="#FF6633" size="5"> tiol</font> – Tomorrow's cases </strong></font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Oil rigs engaged in operations in exclusive economic zone, falling outside territorial waters, are not foreign-going vessels and are not entitled to consume imported stores without payment of customs duty: Supreme Court </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the present case, as the goods were being taken to a territory which would be deemed to be a part of the territory of India though the goods have left the territorial waters, the same would be exigible to levy of duty when they are taken and consumed within the deemed territory of India. There would be no customs duty or any other duty levied while the goods are in transit to the deemed territory of India by any other country although they have gone out of the territorial waters of India . </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>Indo-US Taxation Treaty : Does word 'tax' also include 'surcharge'? - ITAT order set aside & verdict goes in favour of Revenue </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">INDIA has signed more than 80 Double Taxation Avoidance Agreements ( DTAAs ) so far. But for the Revenue, the Indo-US treaty stands as the most animatedly disputed one. Even in this case decided by the Uttranchal High Court, the Article 14 of the Indo-US Treaty is at the centrestage . And the bone of contention is that whether the word ''tax'' includes ''surcharge'' for the purpose of Clause (2) of Article 14 of the Treaty? And the final verdict has gone in favour of the Revenue as the Bench found that the Clause 1 (b) of Article 2 of the Treaty clearly and unambiguously provide for the same. </font></p> <p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service Tax </strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Construction of residential complexes – main contractor liable to pay Service Tax even if sub-contractor also pays tax; no deductions when tax is discharged under composition scheme: Advance Ruling </strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The questions were framed in a very complicated manner. Shorn of unnecessary frills, the questions translated into English, would be:- </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Is the applicant liable to pay Service Tax under ( zzzza ) for the residential units to be built by him? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. If the answer to the first question is “yes”, can he deduct the value of goods sold, while paying Service Tax @ 2% under the composition scheme? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Is the applicant liable to pay Service Tax on the contract to build houses which is sub contracted? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Is the applicant liable to pay the tax even when the sub contractors would have discharged the tax liability? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If you don't want to go through a long story – here are the answers. It is ‘NO' to question No. 2 and ‘YES' to all other questions. All four questions answered against the applicant. </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 size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p> </body> </html>