TIOL-DDT 928 · the untouched capture
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 928 </font><br>
12.08.2008 <br>
Tuesday </strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Import of Rough Marble Blocks – Additional requirements </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Policy Circular No. 13 (RE-08)/2004-2009 dated 30.6.2008 and Policy Circular No.20 (RE-08)/2004-2009 dated 16.7.2008, DGFT had prescribed eligibility and entitlement conditions for import of rough marble blocks/slabs for the year 2008-09. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now an additional condition is prescribed that the applicants shall also be required to furnish a copy of Chartered Accountant certified statement of accounts, filed along with balance sheet to the income tax authorities for each of the years i.e. 2004-05, 2005-06 and 2006-07. </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=46&filename=notification/dgft/2008/dgft08cir025.htm" target="_blank">DGFT Policy Circular No. 25 (RE-08)/2004-2009 Dated: August 8, 2008 </a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Conversion of EOU to DTA – What happens to IEC? </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has clarified that:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. In case a 100% EOU, having an IEC Number from the <strong>concerned </strong> Development Commissioner of a Special Economic Zone, de-bonds and converts into a DTA Unit, the IEC issued to the firm shall be cancelled and archived. Against the same PAN Number, <strong>concerned </strong> RA will issue a fresh IEC to the firm. Subsequent modifications/amendments in the new IEC shall be carried out by the <strong>concerned </strong> RA. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. In case, a DTA unit converts into a 100% EOU unit, the IEC issued by the RA shall continue to be valid even after conversion of the unit. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will somebody tell the government that a <strong>concerned </strong> Commissioner is a worried officer while the Commissioner <strong>concerned</strong> is a very responsible person? </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=46&filename=notification/dgft/2008/dgft08cir026.htm" target="_blank">DGFT Policy Circular No. 26 (RE-08)/2004-2009 Dated: August 11, 2008</a></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Survey and Investigation Branch in Delhi Service Tax Commissionerate </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Delhi Service Tax Commissionerate has constituted a “Survey and Investigation Branch” (SIB) headed by an Assistant/Deputy Commissioner. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The SIB is for:- </font></p>
<div align="justify">
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Data collection on the basis of various sources like website, yellow pages for the purpose of the identification of Service Tax assessees not registered with the Service Tax Department.
</font>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Conducting physical surveys for identifying the service tax providers who are not registered with the department, in particular new services.
</font>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Verification of the references received from other Commissionerate/Higher formations regarding the proper payment of Service Tax.
</font>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The implementation of the Action Plan or such plans as issued by the Board from time to time.
</font>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Disseminate information to potential charts to improve level of voluntary compliance. </font></li>
</ul>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They want information about Service Tax evaders to be sent to <a href="mailto:sib.stdelhi@gmail.com">sib.stdelhi@gmail.com </a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Wiser Counsel seems to have prevailed and now the Commissionerate has stopped publishing names of alleged offenders or is it that there is no allegation now a days? </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WTO Chief Lamy In India </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/wtochief.jpg" alt="Legal Corner Icon" width="100" height="75" hspace="5" border="0" align="left"></b></strong></strong></strong></strong></strong></strong></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WTO Director General Pascal Lamy is in India today and will meet PM Manmoh an Singh to seek India 's views on the options before the multilateral trade body to bring the beleaguered Doha Round of trade talks back on rail. </strong>Lamy's two-day visit to India will also include discussions with Commerce and Industry Minister Kamal Nath , as well as representatives of the industry like FICCI and CII. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The WTO Chief's visit is likely to be followed by one to the US where he would meet trade officials and try to bring them on board for maintaining the momentum to conclude the Doha trade talks that was launched in 2001. H is visit comes days after the WTO mini-ministerial meeting in Geneva collapsed on the issue of safeguard for farmers from the developing countries against import surges. The stand-off in the Geneva meeting was mainly between the US on the one side and India and China on the other. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Lamy will participate in a two-day international conference on 'Global Partnership for Development'. </font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>India strikes Gold at the Olympics </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/abhinav.jpg" alt="Legal Corner Icon" width="197" height="188" hspace="5" border="0" align="left"></b></strong></strong></strong></strong></strong></strong></strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is Independence Day Celebrat<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2008/dgft08cir025.htm" target="_blank">i</a>ons time and what better way to celebrate it than see the Indian Flag displayed at the Olympics awards ceremony? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">From the TV pictures, it looked as if they had the wrong flag. The saffron in the Indian flag looked very yellowish. </font></p>
<p align="justify"><font size="2"><span style="mso-bidi-font-weight:bold"><font face="Verdana, Arial, Helvetica, sans-serif">Well,
Netizens should bear with the trivia that is sometimes dished out in <b>DDT</b>.
But we couldn’t stop this one from trickling into DDT because it is
a historical event.
<st1:PersonName w:st="on">
<st2:GivenName w:st="on">Abhinav</st2:GivenName>
<st2:Sn w:st="on">Bhindra</st2:Sn>
</st1:PersonName>
, the man with the golden gun has won a Gold Medal. This was the first time
in the History of Olympics that an individual gold medal was won by an Indian.
Hitherto,
<st1:place
w:st="on">
<st1:country-region w:st="on">India</st1:country-region>
</st1:place>
has won altogether eight gold medals and each of those medals was for a team
event i.e. Hockey and the last time Indians won a gold medal was in the 1980
Moscow Olympics. This is truly historical because a nation of one billion people
has won just one individual gold medal in the history of Olympics.</font></span></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></strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><strong><strong><strong><strong><strong><strong><b><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"></b></strong></strong></strong></strong></strong></strong></strong></font><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>Deductions under s. 10B – Expenses incurred in foreign currency towards payments to the assessee's personnel deputed outside India – Not to be excluded from the export turnover when they form a part of the total turnover – Telecommunication expenses to be excluded from total turnover when the same is excluded from export turnover – Consistency to be adopted in application of standards for computation of deductions from export turnover and total turnover - ITAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Absence of definition of total turnover in 10A – Total turnover includes export turnover - If the ‘export turnover' is arrived at after excluding certain expenses, the same should also be excluded in computing the ‘total turnover' - Consistency to be adopted in application of standards for computation of deductions from export turnover and total turnover – Telecommunication expenses to be excluded from total turnover when the same is excluded from export turnover </font></p>
<p align="justify"><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Service, JV – consumer? </strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Land owner entering into an agreement with a builder, for construction of an Apartment Building and for sharing of the constructed area, is a ‘consumer' and the builder as a service-provider under the Consumer Protection Act – Supreme Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What is the meaning of the word 'service'? Does it extend to deficiency in the building of a house or flat? Can a complaint be filed under the Act against the statutory authority or a builder or contractor for any deficiency in respect of given property? The answer to all this shall depend on the understanding of the word 'service'. The term has variety of meanings. It may mean any benefit or any act resulting in promoting interest or happiness. It may be contractual, professional, public, domestic, legal, statutory etc. The concept of service thus is very wide. How it should be understood and what it means depends in the context in which it has been used in an enactment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Implications in Service Tax and VAT? </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>Service Tax - Each and every case has own peculiarity and governing facts as well as attendant circumstances of each case submit themselves to meet tests of law for arriving at conclusion – Pre-deposit of Rs 1 Cr ordered – Early hearing granted: CESTAT </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">IN an interesting development, a multinational consulting firm which is engaged in providing tax and various other consultancy services to various multinational clients and Indian corporates found itself at the receiving end with the Service tax authorities at Delhi proposing to levy service tax on certain services provided by this firm. The ritual of demand of service tax with interest was confirmed and this was followed by levy of equivalent penalty. The firm agitated the issue by preferring an appeal before the Tribunal. As of now the issue before the Tribunal was only with regard to the prayer for stay of the demand of tax and penalties. </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>Cenvat Credit - Capital Goods - Laboratory Homogenizes, Lab Scientific and Hospital Equipments, Gas Detection Systems – eligible for Credit: High Court </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In view of the definition of ‘Capital goods' as it existed prior to 23.07.1996, and accepted by the Apex court in Commissioner of Central Excise, Coimbatore Vs. Jawahar Mills Ltd., we are of the view that the CESTAT has committed no error of law by allowing the Modvat credit to the assessee in respect of (i) Laboratory Homogenizes, Lab Scientific/Hospital Equipments (ii) Module of Chapter Heading No. 85.38 (iii) Gas Detection Systems of Chapter Heading No. 85.31 (iv) Lube/Sealant of Chapter heading No. 32.14 and (v) Tower Packing of Chapter Heading no. 84.19, for the year 1994-95 (upto Feb 1995), used for manufacture of glycol and other industrial chemicals in their factory. </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="#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">vijaywrite@taxindiaonline.com </a></font></p>
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