TIOL-DDT 874 · 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 bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 874</font> <br> 28.05.2008 <br> Wednesday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Import of Poppy seeds – duty 40%</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The Government has fixed the effective rate of Customs duty on imported poppy seeds at 40%. The Tariff Rate is 70%.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_071.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> NOTIFICATION NO. 71/2008-Cus., Dated: May 26, 2008</font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Export of cement – ban not to apply to exports from ports of Gujarat</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The DGFT has issued a Notification to stipulate that the existing ban on export of cement and cement clinkers shall not be applicable to export from Ports of Gujarat. Cement falls under the banned export category. However the ban would not apply to</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 1. Supplies of Cement from Domestic Tariff Area (DTA) to units in Special Economic Zone (SEZ) or SEZ Developers / Co-Developers for use within the SEZ only.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 2. Export of cement and cement clinker to Nepal.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> 3. And now exports from Gujarat.</font></p> </blockquote> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2008/dgft08not013.htm" target="_blank">DGFT Notification NO 13 (RE-2008)/2004-2009, Dated: May 27, 2008</a></font></strong></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Income Tax surcharge proposed to overcome fuel price problem</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The government is considering a new surcharge on Income Tax to bail out Oil marketing companies reeling under spiralling global crude prices after a move to hike fuel prices was put in abeyance. State run oil Companies are losing about Rs. 20,000 Crores in keeping the oil prices artificially low. And Mr. Murli Deora is apparently unhappy and he told so to the PM and FM. With elections round the corner and the CPM opposed to any oil price hike, life is not exactly comfortable for the PM and the FM. And the Karnataka election results have not really helped. The proposal for a surcharge on income tax was discussed at a meeting between Deora and Finance Minister P. Chidambaram yesterday as the government found the move to hike fuel prices politically explosive and unacceptable to several parties within the ruling coalition, including the Left parties.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> According to the petroleum and natural gas ministry, petrol was being sold at a loss of Rs. 16.34 a litre, diesel at Rs. 23.49 per litre, LPG at Rs. 305.90 per cylinder of about 14 kg, and kerosene at a discount of Rs. 28.72 per litre.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> And we deprecate subsidy for the farmer!</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> In the US, petrol prices have risen 20 per cent over the last year and diesel prices 30 per cent. Retail prices in the UK have trebled this year. Indonesia raised fuel prices by 29 per cent for the first time in three years to cut subsidy costs. In India, petrol prices were hiked by Rs 2 a litre in February, but have otherwise remained largely steady. <br> <br> The Petroleum Ministry's proposal to hike fuel prices by between Rs 5 and 10 a litre found hardly any supporters. So it is now proposing a fuel cess on income tax. This will add to the 3 per cent education cess.</font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5"> tiol</font> <font color="#006600">– Tomorrow ' s cases</font><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></p> <p align="justify"><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"></font></strong></font><font color="#663399">Income Tax </font></strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Income Tax - Standard rent of property can be determined by applying a rate of 10 per cent to base value: ITAT Spl Bench</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Standard rent of property can be determined by applying a rate of 10 per cent to the base value:</strong>. As such, taking into consideration all the facts of the case as, we are of the view that standard rent of the property in question belonging to the assessee can be determined by applying a rate of 10 per cent to the base value i.e. aggregate amount of the actual cost of construction and the market price of the land comprised in the premises on the date of the commencement of the construction. Since the said base value as taken while determining standard rent in the year 1971 was Rs. 4,15,267 (i.e. Rs. 31,145 x 100/7.5), the standard rent of the property by applying the rate of 10 per cent to the said base value in accordance with the principles laid down in s. 6 of the Delhi Rent Control Act, 1958 would come to Rs. 41,527. As the standard rent so determined at Rs. 41,527 is lower than the ALV of the relevant portion of the property declared by the assessee at Rs. 52,540 on the basis of the municipal valuation fixed by NDMC, we hold that no adjustment/ addition to the ALV of the property declared by the assessee as done by the AO is called for. We, therefore, agree with the view taken by the Tribunal on this issue in assessee's own case for asst. yrs. 1988-89 and 1989-90 accepting the ALV of the property declared by the assessee which has been followed by the AO himself subsequently in asst. yrs. 1995-96, 1996-97 and even in asst. yr. 2000-01 and onwards.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <font color="#663399"><strong>Service Tax</strong></font> </font></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> video tape production - whether an activity comes within purview of tax net has to be decided by authorities only, not High Court in writ petition: Madras High Court</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> If the activity of the appellant does not come within the purview, it is well open to the appellant to explain the activity carried on by the appellant so as to have a finding to that effect. It is well settled and well established principle that a classification or whether an activity comes within the purview of the tax net has to be done by the authorities only, which cannot be determined on the basis of an affidavit and counter affidavit in a proceedings under Article 226 of the Constitution of India.</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>Dealers providing after sales service to customers and being reimbursed by manufacturer; no cause for adding this amount in AV even under new Section 4: Tribunal.</strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>A</strong> duty of Rs. 1.57 Crores was confirmed against the assessee along with interest and penalty. The duty demand has been confirmed against the appellant in respect of clearances of motor cycles made by them to their dealers during the period from 01/07/02 to 31/12/03 on the ground that while during this period, as per the appellant's agreement with their dealers, the dealers were providing free after sale service to the customers for which the dealers were being reimbursed by the appellant @ Rs. 70/- per service, this amount was not being added to the assessable value, resulting in short payment of duty.</font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"> See our columns tomorrow for the judgements</font></strong></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p> <p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Have a nice Day.</font></p> <p align="justify"><font color="#FF6633" 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" target="_blank">vijaywrite@taxindiaonline.com</a></font></p> </body> </html>