Exports grows by 20.5% in Jan, 2008; crosses USD 131 bn;

About 53% polling till 5 PM reported from Meghalaya;

Process of lamination or lacquering proposed to be treated as 'manufacture';

Rs 1470 Cr allocated for computerisation and infrastructure support to HCs during 11th Plan;

Service Tax - No penalty to be levied u/s 76 for failure to pay service if penalty is leviable u/s 78

Customs duty on cigars, cheeroots and cigarillos hiked to 60%;

SSI exemption extended to HDPE / PP tapes captively consumed in manufacture of bags;

Excise duty on pan masala, not containing tobacco, with betel nut content not more than 15% reduced from 16% to 8%;

Amendment in Customs Act: Penalty for violation of provisions not expressly prescribed hiked from Rs 10,000 to Rs 1 lakh;

Internet backbone services provided by one service provider to another covered under Internet Telecommunication Service;

Finance Bill 2008 proposes to curb powers of ITAT to grant stay to 365 days;

2008-TIOL-32-SC-IT.pdf + chit fund story.pdf

Income Tax - Assessee subscribes to chits as its business activities - follows mercantile system of accounting to compute profit or loss at the end of chit period following completed contract method of accounting - Revenue says it is not proper system of accounting and intends to enforce Percentage of completion method to allow claims of discount to arrive at 'income' - Tribunal allows the Revenue's stand but High Court reverses the Tribunal's decision - Since an assessee is free to arrange his affairs, and choose a method of accounting as per his choice the Revenue cannot insist on changing the same method until it arrives at findings that such a method distorts profits in a particular year - Since a persual of both the methods reveals that it is revenue neutral, the Revenue's appeal dismised

Under section 211(2) of the Companies Act, Accounting Standards enacted by the Institute of Chartered Accountants have now been adopted [see 2007-TIOL-207-SC-IT ]. The Revenue's counsel has placed reliance on AS 22 as the basis of his argument that the completed contract method should be substituted by deferred revenue expenditure (spreading the said expenditure on proportionate basis over a period of time). However, all these developments are of recent origin. It is open to the Department to consider these new accounting standards and concepts in future cases of chit transactions.: SUPREME COURT;

CENTRAL EXCISE SECTION

NOTIFICATION

exnt08_15.pdf

CBEC again amends ER1;

CASE LAWS

2008-TIOL-327-CESTAT-MUM.pdf + shakti story.pdf

It is not the Revenue's case that the value is determinable and the appellant has sought provisional assessment for reasons that are not genuine – Tribunal allows appellant to clear goods on provisional assessment: MUMBAI CESTAT;

SERVICE TAX SECTION

2008-TIOL-325-CESTAT-DEL.pdf

ST - Payment to commission agent for procuring exports orders - Revenue demands tax from service recipient as per amendment to Rule 2(1)(d)(iv) - Since Rule 2 is definition clause of rules and not a substantive provision of the statute, no demand prima facie can be made prior to enactment of Sec 66A w.e.f 18.4.06 - Complete waiver from pre-deposit granted: DELHI CESTAT;

CUSTOMS SECTION

2008-TIOL-326-CESTAT-KOL.pdf

Appellant was authorized by UNICEF for printing its greeting cards in SEZ area - By misconstruction of the facts and erroneous interpretation of law, demand arose in the proceeding – Appellant has already given a bank guarantee of Rs.1.25 lakhs – considering the gravity of the matter as well as co-operative attitude of the applicant, pre-deposit dispensed with: KOLKATA CESTAT;

ddt 3 march.pdf

Oh! What a Budget! TIOL thanks the Netizens for the overwhelming response;

guest column.pdf

The 'PC' Budget!!

BUDGET ANALYSIS 2008-09

it story.pdf

FM's fiscal sleight of hand: PC ke saath Income Tax ka lamba haath !!

raghu story.pdf

ABC of Rule 6 - What is P ??

sivakr.pdf

New Service related to supply of tangible goods to open a Pandora's box;

josephp.pdf

Works Contract Composition Scheme - Serious litigation on cards!

penalty story.pdf

Magnanimous Government wants Rs 5000 as general penalty for Cenvat Credit offences;

Mixed Buzz

mbuzz396.pdf

Bihar tops tally of judicial vacancies; 99 posts of HC judges at All India level;

mbuzz395.pdf

TCS, Nokia going for joint R & D activities;

mbuzz394.pdf

Suzlon Energy to spend Rs 100 Cr on retrofit programme in USA;

mbuzz393.pdf

Foreign Univs allowed only in technical education: HRD Minister;