Taxindiaonline.com Taxindiaonline.com Taxindiainternational.com HRindiaonline.com
 
LOGIN
Forgot Password |  Register
Wednesday , August 20, 2014 | Updated : Aug 20, 19:48 IST
Income Tax    Customs    Excise    Service Tax    FEMA    DGFT    SEZ    Misc    Pitara    Budget   
About Us Contact Us Advertise
Taxindiaonline.com Taxindiaonline.com Taxindiainternational.com
NEWS FLASH
 
CBDT extends due date for furnishing of audit report for assessees not required to submit report u/s 92E (See 'Instruction' in Income Tax) Forward Contracts Regulation - Draft Rules - MoF seeks public comments (See 'Mixed Buzz') Govt sets up Panel to review working of FCI and suggest new structure CX - Delay of 406 days in filing appeal before CESTAT not condoned -Dues of more than Rs.8 crores - petitioner selling the company and machineries in auction and same bought by close relatives - conduct of petitioner lacks bonafide - Petition dismissed: High Court (See 'Breaking News')' Lucknow DRI seizes 107 kg Nepali hashish being carted by Maruti car; Two persons arrested Govt notifies hike in PPF threshold from Rs 1 lakh to Rs 1.5 lakh (See Saving Scheme in 'TIOL Library') CBEC lays down Guidelines for seeking Customs exemption u/s 25(2) (See Cir 9 in 'What's New') MoF releases Draft Rules on Forward Contracts Regulations (See 'What's New') CBDT all set to promote IRS officers of 1981-86 batches as Principal CIT and 1992-94 batches as CIT NY Banking Regulator imposes fine of USD 300 mn on Stan Chart bank for poor anti-money laundering norms Mr. Prime Servant – Here is a sample of your Ir-Reverent Servant (See 'DDT' Column) ST - Tax paid by appellant on reverse charge basis in respect of services provided by its agents in J&K and credit availed thereof - CENVAT Credit taken by appellant is nothing but refund of service tax paid by them on services on which they were not required to pay service tax: CESTAT (See 'Breaking News') AV of imported goods - inclusion of packing & labelling costs (See 'Guest' Column) CX - Ceramic Tiles cleared to builders, hotels & schools under contract are to be valued in terms of s.4 & not s.4A - Demand upheld & appeal rejected: CESTAT (See 'Breaking News') About a Hundred crores spent/wasted on CBDT Officers foreign Jaunts (See 'DDT') Income tax - Whether an exporter is eligible to claim deduction u/s 80HHC for deemed credit under CENVAT Incentive Scheme - YES: HC (See 'Breaking News') Ebola scare: Delhi Airport yet to come across first suspect (See 'Mixed Buzz') Demand of duty on clandestine removals - Since appellant had prepared invoices during period, clearly indicating therein that they are operating under compounded levy scheme, it cannot be held that they had removed goods clandestinely: CESTAT (See 'Breaking News') Amma Wants Central GST also to be handed over to States + States meeting today on GST issue (See 'DDT') PM says Govt not to tolerate culture of corruption Our REITs, their REITs (See 'Edit' in 'Taxindiainternational.com') Service Tax collections surpass Rs. 51000 Cr. in four months Motor Vehicles Act to be amended to end corruption in RTO offices: Gadkari (See 'Mixed Buzz') Urban Development Minister seeks Action Plan from DDA & municipal bodies for regularization of unauthorized colonies (See 'Mixed Buzz') CBDT issues transfer order of 79 ACITs/DCITs (See 'Transfer' in Pitara) To dismantle Planning Commission PM invites ideas from public for creating new body CX - Clandestine manufacture and removal of Ingots without payment of duty cannot be alleged merely on basis of electricity consumption: CESTAT by Majority (See 'Breaking News') Independence Day – Modi’s Speech – Watching from a Neighbouring Country (See 'DDT' Column) Renewed confusion - ST on recovery agent's services (See 'ST se GST tak' Column)
 
Bookmark and Share
Income Tax - How to find out the difference between trader in stocks and investor in stocks

TIOL-DDT 366
19 05 2006
Friday

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.

Mail your comments to vijaywrite@taxindiaonline.com


POST YOUR COMMENTS
   
 
 
TIOL SEARCH
 
TIOL Mobile App
TIOL Subscriptions
 All-In-One Package
 Indirect Tax Package
 Income Tax Package
<< More Packages>>
 
   
             
Income Tax Customs Excise Service Tax FEMA DGFT SEZ Misc Pitara Budget
  • Notifications
  • Circulars
  • SC Cases
  • HC Cases
  • ITAT Cases
  • Instructions
  • Advance Ruling
  • Settlement
  • Other Case
  • Directorate of Income Tax (Systems)
  • Tariff Notfn
  • Non Tariff Notfn
  • Circulars
  • SC Cases
  • HC Cases
  • Cestat Cases
  • Settlement
  • Advance Ruling
  • Safeguard Duty Notfn
  • Anti-dumping Notfn
  • Drawback Cases
  • Tariff Notfn
  • Non Tariff Notfn
  • Circulars
  • SC Cases
  • HC Cases
  • Cestat Cases
  • Settlement
  • Advance Ruling
  • Excise Amendment
  • Clean Energy Cess Notfn
  • MISC Circulars
  • 37B Order
  • Commr.(A) Order
  • CESTAT
  • Notifications
  • Circulars
  • SC Cases
  • HC Cases
  • Cestat Cases
  • Miscellaneous
  • Advance Ruling
  • FAQ
  • Finance Act, 1994
  • Commr. (A) Orders
  • 37B Order
  • Removal of Difficulty
  • VCES
  • Accounting Head
  • Exchange Manual
  • Fema Notifications
  • SC Cases
  • HC Cases
  • RBI Notifications
  • Act
  • Rules
  • Regulations
  • Master Circulars
  • RBI Circulars
  • Notifications
  • Circulars
  • Public Notices
  • Trade Notice
  • FTDR Amendment 2010
  • MISC
  • State Acts
  • Notifications
  • Instructions
  • Act 2005
  • Rules 2006
  • DGEP
  • State Policy
  • SC Cases
  • HC Cases
  • VAT Cases
  • Deputation Posts
  • Service News
  • The Insider
  • Transfer
  • Promotion
  • Recruitment Rules
  • Transfer Policy
  • Training Circulars
  • Service Cases
  • MISC
  • Pay Commission
  • Cadre Review
  • Budget Circular 2013-14
  • Union Budgets
  • Economic Surveys
  • Budget Speeches
  • Finance Acts
  • Finance Bill
  • TRU - D. O. Letter
  • A Taxindiaonline Website. Copyright © 2014 Taxindiaonline.com Pvt.Ltd. All rights reserved. | Powered by 4th Dimension