TIOL-DDT 87 · the untouched capture
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<html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#0000FF" size="3">TIOL-DDT 87</font><br> 04 04 2005<br> Monday</b></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b>Income Tax – Shipping Companies</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Finance (No. 2) Act, 2004 has inserted a new chapter XII-G dealing with Special provisions relating to Income of shipping companies with effect from 1.4.2005. Now the Government has come up with new Rules to explain how deemed tonnage is to be computed. The rules also explain what the incidental activities are for the purpose of shipping income. They are:-<br> <br> (i) maritime consultancy charges;<br> <br> (ii) income from loading or unloading of cargo;<br> <br> (iii) ship management fees or remuneration received for managed vessels; and<br> <br> (iv) maritime education or recruitment fees.<br> <br> The Rules also prescribe a new form 66 for the Auditor’s report for these companies. The Form under column 12 requires information on <b>Modified Value Added Tax credit claimed and allowed under the Central Excise Rules, 1944 or Central Excise Rules, 2002.</b> May be the CBEC has not informed the CBDT that there is no Modvat now. <br> <br> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2005/it05not120.htm">IT NOTIFICATION. No. 120/2005, Dated: March 29, 2005</a><br> <br> <font color="#006633"><b>E – Filing of returns of TCS – CBDT notifies scheme for</b></font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> As per section 206C of the Income Tax Act, for sale of certain goods like alcohol, Tendu leaves, Timber, forest produce and scrap, tax is to be collected at source at rates fixed by the Act. Now the CBDT has notified a scheme for electronic filing of TCS returns - "Electronic Filing of Returns of Tax Collected at Source Scheme, 2005". And consequently the forms 27A and 27B dealing with the information of deduction of tax at source filed on commuter media, are also replaced with new forms.<br> <br> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2005/it05not121.htm">IT NOTIFICATION. No. 121/2005 and 122/2005, Dated: March 30, 2005</a><br> <br> <font color="#336633"><b>Income Tax – Recruitment Rules for ITOs – qualifying in the examination mandatory - retrospective amendment</b></font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Income Tax Officer, Group B Posts, Recruitment Rules, 2004 were notified in the Gazette of India on 21st December, 2004 according to which for promotion to the grade of ITOs, the qualification was, <br> <br> Inspectors of Income Tax in the pay scale of Rs. 6500-10,500 with three years' regular service in the Grade<br> <br> Now the Government has realized that there was a mistake and the Inspectors were required to pass a qualifying test in addition to putting in three years of service. So they have amended the rule retrospectively to make the qualification as<br> <br> "Inspectors of Income Tax in the pay scale of Rs. 6500-10500 with three Years' regular service in the grade and <b>who have qualified the departmental examination for Income Tax Officer."</b><br> <br> Will CBEC follow suit? Here the qualification to become Superintendent is eight years service as Inspector. But there are Inspectors who have put in 16 years of service with no hope of ever becoming a Superintendent. <br> <br> It is certainly a good idea to have a test and qualifying in that being a pre condition for a promotion. That way you can keep the officers attached to books and an officer attached to books is any day a less threat to society than the one who does not read. There should be a test for promotion to each cadre starting from Sepoy to the Chairman. That way you can prevent a lot of ignorance from floating to the top. Only the most learned and knowledgeable officers should be allowed to become Commissioners, Chief Commissioners and Chairmen. <br> <br> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/itorecruit2005.htm">Income Tax Officer, Group B posts, Recruitment (Amendment) Rules, 2005. (F.No. A-12018/1/2002-Ad.VI)</a></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#336633">Remittances to Non Cooperative Countries – RBI circular</font></b><br> <br> The Reserve Bank of India has cautioned Authorised Dealers (AD) banks about the restriction of remittances to non co-operative countries and territories (NCCTs). The RBI wants the banks to update their information from the website www.fatf-gafi.org . This website shows Myanmar, Nauru and Nigeria as the NCCTs as on 12th February 2005. <br> <br> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=49&filename=notification/rbi/2004/rbi04cir038.htm">RBI CIRCULAR NO. 38, Dated: March 31, 2005</a><br> <br> <font color="#336633"><b>CVC does it again – list of tainted officers – customs tops<br> </b></font><br> N. Vithal as CVC gave a lot of bad publicity to the Revenue departments by terming them as the most corrupt, though corruption in India is not the exclusive prerogative of any department. In fact honest officers of the Customs and Central Excise department who have gone on deputation to other departments have confided in us that compared to the corruption in other departments, the awfully corrupt in the revenue department would look like small time pick pockets before the sharks in the other departments. But the CVC has published a list of officers against whom prosecution has been recommended but the Government is yet to grant permission. Alas! The Customs tops the list with the largest number of officers. Many newspapers will carry this story in the next few days and the nation will believe that Customs officers are the most corrupt in the country. Not necessarily so. The CVC has published another list of punishments awarded. Here out of 95 names only 7 are from Customs and Central Excise, while there are 12 names from the department of Telecommunications! And the list of proposed prosecutions includes the Hon’ble Jaffer sheriff, the former Railway minister. <br> <b><br> </b><font color="#FF6666"><b>Until Tomorrow with more of DDT<br> <br> Have a Nice Time<br> <br> Mail your comments to</b></font> <b>vijaywrite@taxindiaonline.com </b><br> <br> </font></p> </body> </html>