TIOL-DDT 995 · 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 995</font><br>
19.11.2008<br>
Wednesday</strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Customs Duty levied on Crude Soya-bean Oil; Iron and Steel</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Exemption to Crude Soya-bean Oil has been withdrawn and an effective rate of 20% duty has been imposed.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Pig iron and spiegeleis en in pigs, blocks or other primary forms will now attract 5% duty instead of the <em>nil </em> duty at present.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The following goods other than seconds and defects will now attract 5% Customs duty instead of <em>nil</em>.</font></p>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Ferrous products obtained by direct reduction of iron ore and other spongy ferrous products, in lumps, pellets or similar forms; iron having minimum purity by weight of 99.94%, in lumps, pellets or similar forms - 7203</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Granules and powders, of pig iron, spiegeleisen, iron or steel -7205</font> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Iron and non- alloy steel in ingots or other primary forms - 7206</font> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Semi-finished products of iron or non-alloy steel - 7207</font> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated - 7208</font> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, cold-rolled (cold-reduced), not clad, plated or coated - 7209</font> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated - 7210</font>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, not clad, plated or coated - 7211</font> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, clad, plated or coated - 7212</font> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10. Bars and rods, hot-rolled, in irregularly wound coils, of iron or non- alloy steel - 7213</font> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">11. Other bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but including those twisted after rolling - 7214</font>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">12. Other bars and rods of iron or non-alloy steel - 7215</font> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">13. Angles, shapes and sections of iron or non-alloy steel -7216</font> </p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">14. Wire of iron or non-alloy steel - 7217</font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2008/ctariff08_122.htm" target="_blank">Notification NO. 122/2008 – Cus Dated: November 18, 2008</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Refund Based Exemption to Services Used for Exports – Time Limit extended</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The exporters are to claim the refund within sixty days from the end of the quarter during which the said goods have been exported. Now this is made six months.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Under this scheme, <em>Services provided by a technical testing and analysis agency in relation to technical testing and analysis of said goods where such technical testing and analysis is required to be undertaken as per the written agreement between the exporter and the buyer of the said goods </em>will get the exemption through the refund route, subject to the condition that</font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) the exporter furnishes a copy of the written agreement entered into with the buyer of the said goods requiring testing and analysis of the said goods; and xxxx</font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now this condition is relaxed to stipulate that</font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>(ia) where the buyer of the said goods does not require testing and analysis of the said goods, but testing is statutorily stipulated by domestic rules and regulations, the exporter shall furnish copy of such rules or regulations stipulating testing and analysis of the said goods;</em></font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=40&filename=notification/servicetax/2008/stnot08_032.htm" target="_blank">Notification No. 32/2008 – Service Tax Dated: November 18, 2008</a></strong></font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1041 branches of Banks to accept Advance Income Tax</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1041 computerised branches of public and private sector banks will receive advance income tax in Mumbai and Navi Mumbai. Of the 1041 bank branches 983 branches are public sector bank branches, 30 HDFC bank branches, 9 ICICI bank branches and 19 AXIS bank branches. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Reserve Bank of India has advised income tax assesses to take advantage of these standing arrangements made for their convenience.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Long queues and inconveniences can be avoided at the Reserve Bank of India counters if the assesses in Mumbai and Navi Mumbai utilise the services being made available at various designated branches of banks and deposit their Income Tax dues well in advance of the last date.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Towards a better Economy</strong></font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. freeze non-development expenditure under the defence budget for the last three quarters of the current financial year;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. 20 per cent reduction in non-development expenditure of civil departments and ministries;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. gradually impose tax on services and agriculture sectors at the rate of eight to 18 percent;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. stoppage of government financial intervention in stock markets;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. non-provision of supplementary grants to government departments;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. increase in mark-up rate of banks and on inter-bank transactions;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. uniformity in the inter-bank and open market dollar exchange rate;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">8. devaluation of rupee; and</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">9. end subsidies on gas and electricity.</font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Well, these are not solutions for India, though they appear good enough for India, but these are said to be the conditions imposed by IMF for a loan of 7.6 billion dollars to Pakistan. This is five times the quota of Pakistan in the Fund.</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>Customs</strong></font></p>
<p align="justify"><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Explanation added to Notification 11/97- Cus to exclude software used for performing specific functions other than data processing from the ambit of ‘computer software' had the effect of imparting a technical meaning to ‘computer software' - A restriction prejudicial to importers of computer software cannot be given retrospective effect – CESTAT Larger Bench</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AN </strong>interesting aside to this Larger Bench story is that the Member who delivered the judgments in the referral order as well as this Larger Bench judgment is one and the same (How could it be possible? Well it happens in CESTAT). Further, the decisions relied upon by the assessee before the referral bench were also the same. But the clincher which led to this about-turn is the affirmation of the Tribunal's decision in <em>BPL Mobile Communications </em>by the Apex Court. Ironically, the Apex Court's approval came on 16.08.2001 much before the date of decision of the referral bench which actually led to the constitution of this Larger Bench. Had the assessee's counsel brought this fact to the notice of the referral bench, probably there wouldn't have been a Larger Bench at all in the first place.</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>Assessee makes payment to non-resident Co - bill received at time of finalisation of audit - TDS deducted and deposited - since it was not deposited in previous year relevant for AY, no fault can be found with AO's order invoking provisions of Sec 40(a)(i); ITAT</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FOR</strong> those who tend to take TDS provisions in the Income Tax Act casually, the TDS cannot only be tedious but also draconian. Given the widespread practice of finalising Audit at the eleventh hour, it is more often than not, some last-minute bills are received and TDS deducted and deposited accordingly. But what treatment is meted out to such expenditure u/s 40(a) can be seen from the latest ruling of the Tribunal.</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>Hike in rate by Finance Act - Service tax is NOT payable at revised rate, if rates are revised by law, during operation of policy already issued</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>appellants are engaged in providing services under the category of <strong><em>general insurance </em></strong> and are registered with the department. The Finance Act, 2004, increased the rate of service tax to 10% from the earlier rate of 8% and in addition Education cess @2% on the gross amount of service tax was also imposed from 10.09.2004. Seeing that the appellants had received <strong><em>advance premium from their customers </em></strong> at the time of issuance of the <em>general insurance policy </em> prior to 10.09.2004, a differential service tax demand was raised of Rs.5.36 crores and Education Cess of Rs.53.59 lakhs.</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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