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Sunday , October 23, 2016 | Updated : Oct 23, 08:51 IST
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ST - As appellant has given contract for loading/unloading on basis of weight of goods and not as per labour provided, activity cannot be termed as supply of Manpower: CESTAT (See 'Breaking News') CBDT issues all India transfer order of 16 CITs (See 'Transfer' in Pitara) Foreign Currency valued at Rs.2.77 crores seized from passenger departing from T-3 IGI Airport to Hong Kong; pax arrested Govt liabilities stabilized in recent years: Status paper on govt debt (See 'Mixed Buzz') ST - There is no bifurcation in commission agent agreement regarding supply of goods and services - entire quantum of ST paid by commission agent is entitled as credit: CESTAT (See 'Breaking News') Investment in irrigation projects essential to double farmers income by 2022: FM (See 'Mixed Buzz') Public spending on social security at new high: OECD (See 'Mixed Buzz') TNGST - Whether it is permissible for Legislature to introduce a Explanation to provision of fiscal Statute, which has feature of expanding scope of charging section - NO: HC (See 'Breaking News') Minister reinforces commitment under Paris Agreement at Forest Services Meet (See 'Mixed Buzz') FIPB okays 4, rejects 4 & defers 3 FDI proposals (See 'FDI Approved' in FEMA) FM to hand over sanction letter of Rs 18500 Cr loan to NABARD today for Long Term Irrigation Fund How they perpetuate Litigation (See 'DDT' Column) Cus - Attaining self-sufficiency is precursor to trigger right of the petitioners to seek permission to export their participating interest/share of crude oil: High Court (See 'Breaking News') DGCEI discovers Rs 2300 Crore black money; MD of Saria Manufacturing Company arrested (See 'Mixed Buzz') Does 'Mission Zero' apply to us? - IRS Officer (See 'DDT') I-T - Whether when complaint filed by assessee against accountant has been duly filed with police, in that case assessee's inability to produce books needs to be believed & he could not be considered as defaulter for not discharging onus of providing books before AO - YES: ITAT (See 'Breaking News') Reliance Jio's tarrif plans in line with prevailing norms, welcome offer to continue: TRAI (See 'Mixed Buzz') Penalty has to be Equal to Duty Under Section 11AC: Supreme Court (See 'DDT') CX - Contract for manufacture & supply of Electrical Transmission towers - debit notes raised for excess amount of material used - CX duty not payable prior to 1st July 2000 but payable thereafter as valuation is based on Transaction value: CESTAT (See 'Breaking News') Stricter norms for misleading advertisements in offing: Minister (See 'Mixed Buzz') Earned Leave - No Limit of 300 days? (See 'DDT') CBEC notifies new Customs Exchange Rates effective from 21st October, 2016 (See 'NT 127' in What's New) Smuggling - Gold is a prohibited item and AA can order absolute confiscation - Tribunal directing release of gold on payment of fine is against law: HC (See 'Breaking News') GST Rate Structure - Demerit Goods - Politics of Cess would not work! (See 'The Cob (Web)'Column)
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Income Tax - How to find out the difference between trader in stocks and investor in stocks

19 05 2006

The CBDT proposes to issue guidelines to determine whether a person is a trader in stocks or an investor in stocks. One of the guidelines is the time devoted and to the extent to which it is the means of livelihood. Board invites comments from the public on this.

Deduction under 80HHC – Cascading effect of amendment in other statutes

The Income Tax Department has encountered a strange problem. As per Section 80HHC certain deductions are allowed on income earned from profits from exports. The Section mentions the Customs and Central Excise Duty Drawback Rules, 1971. But these rules have been replaced by the Customs and Central Excise Duty Drawback Rules, 1995. Now there are some smart officers who wanted to deny the benefit of 80HHC on the ground that there is no Duty Drawback Rules, 1971.

Now the CBDT has clarified that by virtue of the General Clauses Act, the benefits of Section 80HHC cannot be denied just because the Section mentions the 1971 Rules and not the 1995 rules.

This is what happens with too many enactments finding place in too many other acts and too many amendments with no clue as to what is mentioned where.

CBDT Circular No. 5/2006, dated May 15, 2006

Customs and Central Excise  amendments

Re-import of exported goods – Exemption Notification No. 94/96-Cus. grants exemption to various categories of exported goods when reimported. Now cut and polished precious and semiprecious stones exported for treatment abroad is included in the list.

Cut and polished diamonds Cut and polished diamonds when reimported after certification/grading by certain agencies are exempted. Now one more agency “Diamond Trading Company U.K.” is included in the list of grading agencies.

Exemption to EOUs – Conditions relaxed Notification No. 52/2003-Cus. dated 31-3-2003 allows exemption to goods imported by EOUs, STP and ESTP. Under the scheme certain conditions are now relaxed:

1) Goods may be transferred to other EOUs/SEZ under intimation to the proper officer - no need of permission.

2) Goods may be removed for test, repair etc under intimation to the proper officer  - no permission required.

3) Exemption is now allowed for import of promotional materials like brochures, literatures, pamphlets, hoardings, catalogues and posters.

Similar changes are made in the Central Excise exemption for procurement of goods by EOUs.

Notification No. 44/2006-Customs and 31/2006-C.E., dated May 17, 2006

FTP Amendments - The DGFT had amended the Hand Book of Procedures

1) In Para 2.12 the validity period of 24 months for DFIA is deleted.

2) Certain sea ports/air ports/ICDs/LCS added to the list of ports for imports and exports under the advance authorisation and DEPB.

3) The period of fulfilling export obligation in case of import of spices is restricted to 120 days.

Vehicles imported for R&D – Registration

As per Notification No. 2 dated 7.4.2006 vehicle manufactures and auto component manufacturers were allowed to import vehicles for R & D purposes. One of the conditions for such imports was that the vehicle will not be registered under the CMVR Rules in the country and will not ply on Indian roads. Now DGFT clarifies that the condition is applicable only for use as a passenger vehicle. For the limited purpose of carrying out endurance test, evaluation test and for other testing purposes, the vehicle may be registered as provided for in the CMVR Rules.

POLICY CIRCULAR NO. 06(RE-06)/2004-2009 Dated: May 18, 2006

non obstante - Notwithstanding. (any statute to the contrary)

In absence non obstante clause allowing prevailing of Narcotic Drugs and Psychotropic Substances Act, 1985 over Evidence Act, 1872 such statements could only be treated as previous statements under Section 145 ibid and not as substantive evidence

Retrospective amendment of excise rules empowering Revenue to recover duty - Even in such a case, demand has to be within limitation prescribed under Section 11A of Central Excise Act, 1944, in absence of non-obstante clause in amendment

Although a non obstante clause is used in Article 253 of the Constitution of India, it only explains and provides for the legislative competence of the Parliament for the whole or any part of the territory for the purpose of implementing any treaty or agreement with any other country or any decision made at any international conference etc. If the Parliament or the State Legislature are competent to lay down the guidelines and leave the implementation of the guidelines to the rule making authority, such a law cannot be held to be ultra vires because of a non obstante clause in Article 253.

Until Monday with more DDT

Have a nice Weekend.

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