TIOL-DDT 2579
17 04 2015
Friday

THE CBDT has amended Rule 12 of the Income Tax Rules. The manner of furnishing the return for various categories has been amended making e-filing mandatory in almost all cases.

"Electronic Verification Code" is a code generated for the purpose of electronic verification of the person furnishing the return of income as per the data structure and standards specified by Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems).'

These amendments are deemed to have come into force with effect from the 1st day of April, 2015

CBDT Notification No. 41/2015, Dated: April 15, 2015

Customs - New Exchange Rates from Today

CBEC has notified new exchange rates for Imported Goods and for Export Goods with effect from 17th April 2015. The US Dollar is at 62.95 rupees for imports and 61.95 rupees for exports.

Notification No.38/2015 - Cus.,(N.T.), Dated: April 16, 2015

FTP - Mode of Deposit of Fee - DD Allowed

AS per the Appendix 2K (Scale of Application Fee and Format for Deposit/Refund of Application Fee/Penalty etc.) of Appendices and Aayaat Niryat Forms, 2015-20, the mode of payment was By depositing cash or cheque for Treasury Receipt Challan (TR). Now this is amended to By Demand Draft, in favour of the Head of the concerned Regional office of DGFT, or by depositing cash or cheque for Treasury Receipt Challan (TR).

The facility of payment of application fee/ penalty/ any other fee through demand draft is restored. In the process DGFT seems to have removed the other modes altogether.

DGFT Public Notice No.06/2015-20, Dated: April 16, 2015

Anti Dumping Duty on Acetone

GOVERNMENT has imposed anti dumping duty on acetone falling under Chapter 29 of the First Schedule to the Customs Tariff Act, originating in, or exported from Chinese Taipei and Saudi Arabia.

This duty is to be effective for a period of five years - of course as we know, the Government has no respect for TIME.

Notification No. 13/2015-Cus (ADD)., Dated April 16, 2015

Jurisprudentiol-Recent SC Judgements

Central Excise - Exemption - Bulk drugs - formulation - Notification No. 8/95-CE - even if the formulation is processed out of or containing one bulk product the condition of Notification stands satisfied. The respondent assessee is a manufacturer of various medicines and products including the product called 'Strepto Pencillin Injection' which falls under Chapter Heading No. 2941.10 of the Schedule to the Central Excise Tariff Act, 1985. The assessee had been claiming benefit of excise duty under Notification No.8/95 dated 9.2.95 and on the application thereof the concessional rate of duty @ 10% is payable.

Revenue took the stand that the assessee was not entitled to concessional rate of duty under the aforesaid Notification on the ground that the aforesaid product is combination of streptomycin and penicillin. The assessee on the other hand contended that even if one of the bulk drugs is included in the formulation that would satisfy the definition of 'formulations'

The Supreme Court found that the plea taken by the respondent/assessee is correct and has to be accepted, and was rightly accepted by the Tribunal. As per the definition, even if the formulation is processed out of or containing one bulk product the condition of Notification stands satisfied.

The Supreme Court dismissed the Revenue Appeal.

Please see Commissioner of Central Excise, Vadodara Vs Alembic Chemical works Co Ltd - 2015-TIOL-76-SC-CX

Central Excise - Classification of Milk N Nut - Assessee claimed the classification of the product under Chapter Heading No.2001.10 as preparation of vegetable, fruits, nuts and parts of plants. The Assistant Commissioner, Commissioner (Appeals) and the Tribunal held that the product was preparation of vegetables, fruits, nuts and parts of plants and therefore rightly classified under Chapter Heading 2001.10 and cannot be treated as sugar confectionery.

Revenue is in appeal in Supreme Court.

All the three authorities below have arrived at finding of fact that the product in question is vegetable preparation and is not sugar confectionery. These are finding of facts.

So, the Supreme Court found no reason to interfere.

Revenue Appeal was Dismissed.

Please see Commissioner of Central Excise, Indore Vs S K Industries - 2015-TIOL-75-SC-CX

Committed to a transparent and predictable tax regime - Arun Jaitley

SPEAKING at the Peterson Institute in Washington yesterday, the Finance Minister said,

Taxes: The fundamental dilemma about taxes is that they are both necessary and problematic. Managing that trade-off requires good economics and better politics. Taxes should promote savings and investment and hence growth; The tax net should be wide so that all citizens feel they are part of government; but rates should be low because taxes after all forcibly transfer money from citizens to the state.

GST: For ten years we have been saying GST is about to be implemented. We have done it. We will pass the bill in Parliament in the coming 3 weeks. GST is a modern tax, a consumption-based value-added tax, and a tax that avoids tax cascading

Benefits: Create a broad tax base and will strengthen revenues going forward; increase the tax-GDP ratio promote transparency and reduce corruption because of the paper trail (necessary for claiming input tax credits) it will create an Indian common market because it will replace a number of state-levied taxes. There are estimates that implementing GST will increase growth by 2-3 percent in the medium term.

Process ahead: The constitutional amendment bill contains the key provisions. We aim to secure legislative passage within the next three weeks in the center after which it will go to the states (2/3rd of the states will need to ratify). The aim is to make the base as wide as possible. We have promised compensation for 5 years to the states (tapering in the last two) for any loss in revenue. We have a GST council in which all the states and the center are represented. Very democratic governance and voting structure. GST council will take a number of decisions relating to the revenue neutral rate. We will aim to keep the rate competitive close to international levels and minimize exemptions.

Technical preparedness: Aim to implement by April 1, 2016. The technology backbone is being put in place through GST-IN.

Tax administration

Let me emphasize that we are absolutely committed to a transparent and predictable tax regime; there will be no retrospective actions and we will see taxpayers as partners not as potential hostages or victims. These are not expressions of intent. We have translated them into action.

India's reformer-in-chief

TODAY, he's the leader of the world's largest democracy, and his life story-from poverty to Prime Minister-reflects the dynamism and potential of India's rise.

Determined to help more Indians follow in his path, he's laid out an ambitious vision to reduce extreme poverty, improve education, empower women and girls and unleash India's true economic potential while confronting climate change. Like India, he transcends the ancient and the modern-a devotee of yoga who connects with Indian citizens on Twitter and imagines a "digital India."

Prime Minister Modi recognizes that more than 1 billion Indians living and succeeding together can be an inspiring model for the world.

President Barack Obama in Time Magazine yesterday

Until Monday with more DDT

Have a nice weekend.

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