TIOL-DDT 883 · the untouched capture
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<div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT
883</font><br>
10.06.2008<br>
Tuesday </strong></font></div>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Ban/restriction
on export of non-basmati rice – DGFT clarifies</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
DGFT clarifies that exports under transitional arrangements as provided under
Para 1.5 of the Foreign Trade Policy, 2004-09 shall not be permitted. This is
in force with the issue of Notification No.77 dated 7.2.2008. That is since
7.2.2008, no exports are allowed under transitional arrangements.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2008/dgft08cir011.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">POLICY
CIRCULAR NO. 11 (RE-08)/2004-2009 Dated: June 6, 2008</font></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Navaratnas
for top world Customs job</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
World Customs Organisation is to have a new Secretary General from 1.1.2009,
when the term of the present incumbent, Michel Danet will expire. The new Secretary
General will be elected on 28th of this month. There are nine candidates in
the fray. Look at some of the world leaders of Customs.</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.
59 year old Director of Customs, Hans van Bodegraven from Netherlands, had
been a Customs Officer since 1976, can read, write and speak English, French
and German very well. His Department collects more than half of the Dutch
Revenue from taxes.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.
Boubacar Camara is just fifty years old and has a doctorate in Customs law,
is a State Inspector General in Senegal. He was Senegal’s Director General
of Customs from 2000 to 2004. He had been a soldier, a Merchant navy officer
and in Customs, an examiner, inspector, Chief Inspector, investigator etc,.
He is one of the founders of the International Academy of Advanced Studies
in Security. He knows English, French and Arabic.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.
Sixty year old Noel Colpin is head of the Customs and Excise Administration
of Belgium for the last five years and has 36 years experience in Customs.
An MBA, who knows English, French and German, he has vast international experience.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.
44 year old Lars Karlsson is the Deputy Director General of the Swedish Customs
Service. Knows English and French.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5.
43 year old Philippe Arnaud joined Customs in 1995 and is now Deputy Director
of International Trade, in the French Customs. He speaks English and German.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.
Jouko Juhani of Finland joined the Customs as an Inspector in 1985 and has
been the Customs Counsellor, Permanent Representation of Finland to the EU,
since 2007.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7.
54 year old English and French speaking Kunio Mikuriya of Japan had been a
Deputy Secretary General of the WCO, since 2002. Before that he was Director:
International Affairs, Customs and Tariff Bureau, Ministry of Finance (MOF),
Japan. If appointed, he wants to create a centre for excellence in Customs
matters.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8.
60 year old Douglas Tweddle from UK is Director, Customs in the HM Revenue
and Customs in the UK.. He was the Customs Chief at the busiest international
airport in the world. He was a Director in WCO for five years and delivered
the Revised Kyoto Convention.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9.
53 year old Gaozhang Zhu from <strong>People’s Republic of China</strong>
knows English, Freench, German and Russian. He joined the Customs in 1982
and is now the Director General, Department of International Cooperation </font></p>
</blockquote>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Target
4 Lakh Crores – Prosecute the non filers and the stop filers - FM
tells CCIT and DGs </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Addressing
the Chief Commissioners and DGs of Income Tax, the FM suggested a target of
Rs. 400,000 Crores as Direct Taxes Revenue. And the Stock Market crashed. Absolutely
no connection between the two events though! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
FM wanted the Department to prosecute those who have not filed a return –
the non filer and those who have stopped filing returns – the stop filer.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will
he let his officers have a free run on politicians? </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">When
there is no change in tax rate, does it matter as long as deduction is allowable?</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
yesterday's <strong>DDT</strong>, a judgement by Delhi High Court in a case
where the revenue was in appeal on a dispute about the year in which the deduction
has to be allowed was reported. The High Court referred to Bombay High Court
order rendered about 50 years ago, wherein it was observed that <font color="#FF6633">"in
the case of income of a company, tax is attracted at a uniform rate, and whether
the deduction in respect of bonus was granted in the assessment year 1952-53
or in the assessment year corresponding to the accounting year 1952, that is
in the assessment year 1953-54, should be a matter of no consequence to the
Department'.</font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
above item attracted the attention of a revenue officer, not from income tax,
but from Central Excise. R Raghavendra Rao, Superintendent of Central Excise,
who has no tall claims about his knowledge in Income tax matters sent us this
mail:</font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">I
don't know much about Income Tax Act, but let us take the case where the assessee
incurred loss in 2006-07 and made profit in 2007-08. Now, though the tax rates
are same for both the years, allowing deduction pertaining to the year 2006-07
in the year 2007-08 results in revenue loss as it may reduce/ wipe off the profit
made in 2007-08. So the year in which the deduction is allowed is very important
issue which has a bearing on the revenue. I feel the department failed to explain
this to the Hon'ble HC and this continues for the last 50 years!!!!!!!!!!!!
</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"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Ss
45 and 48 do not provide for any deemed profit, or gain, to be taxable, as capital
gain: Rajasthan HC</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Sec.45
& 48, unlike the provisions of Wealth Tax, do not make provision, providing
for any deemed profit, or gain, to be taxable, as a capital gain</strong> </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
To charge capital gains under Sec.45 & 48, four conditions are required
to be fulfilled,: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.
There should be a capital asset, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.
Capital asset should be transferred, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.
Consideration has been received in lieu of transfer, and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.
There was cost of acquisition and cost of improvement. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Thus,
since Sec.45 & 48, unlike the provisions of Wealth Tax, do not make provision,
providing for any deemed profit, or gain, to be taxable, as a capital gain,
the mere fact that the assessing officer was of the view, that prevalent market
interest rate was 18%, or was at any amount above 9%, could not render the assessee
liable for being taxed, on the difference amount, as capital gain.</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>Transport
of crude oil through pipeline having been brought to tax specifically w.e.f.
16.6.05, taxation thereof prior to enactment of law is inconceivable –
Tribunal sets aside Service Tax demand</strong></font></p>
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">It
is settled principle of law that there is no intendment about tax.<strong>
Every subject is taxed by specific letters of law.</strong></font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify">
From 16.6.05, by incorporating sub-clause (zzz) to Section 65 (105) of Finance
Act, 1994, transport through pipeline was brought to ambit of tax. </font></li>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif" align="justify"><strong>Transport
of crude oil through pipeline having been brought to tax specifically w.e.f.
16.6.05, taxation thereof prior to enactment of law is inconceivable.</strong></font></li>
</ul>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">
Central Excise </font></strong></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Mixing
of colourants at Dealers’ premises – Berger Paints obtains stay
on demand of duty under Section 4 from Chennai Bench, though failed in West
Zonal Bench</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You
don’t get the stay order for the same submissions at one Bench and get
stay at the other! Order of the day???? That’s what LAW is all about!</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="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Tomorrow with more <strong>DDT</strong></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" target="_blank">vijaywrite@taxindiaonline.com</a></font></p>
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