Taxindiaonline.com
Taxindiaonline.com Taxindiaonline.com TIOL Tube Taxindiainternational.com
 
LOGIN
Forgot Password |  Register  
Sunday , June 26, 2016 | Updated : Jun 26, 20:21 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
 
Alcoholism & drug abuse have caused havoc in India: President Import of old aircraft - Govt relaxes rules; Airlines can now import even 18 year old aircrafts PM urges taxpayers to avail black money amnesty scheme or face action post-Sept 30 deadline (See 'Breaking News') FSSAI joins hands with CHIFSS to enhance Food Safety science-based standards (See 'Breaking News') FM invites Chinese investors to India; says infra sectors needs USD 1.5 trillion funds Nanjing Audit University confers honorary professorship on CAG Shashi Kant Sharma India has comfortable forex reserves to deal with impact of Brexit: RBI CBI books NINE senior Income Tax officials in corruption case; seizes 43 property documents & 22 lakh cash; finds FDRs worth Rs 78 lakhs (See 'Breaking News') Govt notifies List of Holidays, including RH, for 2017(See 'Misc' in Pitara) Govt yet to finalise Draft Notification on National Forest Policy, clarifies DG (Forest) Amendment in Sec 206C - CBDT issues clarification (See 'Cir No 23' in 'What's New') Income Declaration Scheme - CBDT explains steps to fill up FORM-1 (See 'DIT (Systems)' in 'Income Tax') Govt notifies changes in FDI regime (See Press Note No 5 in 'What's New') CX - Since letter of CCE, LTU is communicating finding which is detrimental to financial interest of appellant, same is 'decision' that can be entertained in appeal u/s 35B of CEA, 1944: CESTAT (See 'Breaking News') Articles of jewellery made of gold - Drawback Rates - CBEC puts conditions (See 'Notification 90' in 'What's New') CBDT finally notifies GAAR w.e.f April 1, 2017 (See 'Notification 49' in 'What's New') CBEC notifies new Customs exchange rate for Japan's Yen (See 'Notification 89' in 'What's New') IGI Airport Customs nabs two pax with gold items worth Rs 45 lakhs CBDT issues transfer order of 91 Addl/JCITs (See 'Transfer' in 'Pitara') Department of Economic Affairs looking for JS-level deputationists (See 'Deputation Posts' in 'Pitara') Black money: I-T Dept publishes list of asset valuers Chattisgarh to ban commercial vehicles over 10-12 years old UK votes for Brexit; India well prepared to deal with its fall-out, says FM (See 'Mixed Buzz') CBEC amends Reward Guidelines to entitle officers of Other Agencies for reward (See 'Cir 29' in 'What's New') No KKC if invoice raised before May 31 and service also rendered, clarifies CBEC + Service Tax exemption to taxable services by way of transportation of goods by a vessel from outside India upto Customs station in India for invoices raised before May 31, 2016 (See Notification No 35 + 36 in 'What's New') Enhancing period of limitation to 2 years - some stray thoughts! (See 'DDT' Column) GST Impact on Financial Services Sector (See 'ST se GST tak') Enhancing period of limitation to 2 years - Board's Views (See 'DDT') Overhaul of Indian major ports: impact of draft Central Port Authorities Act, 2016 (See 'Guest Column') Comparative Analysis under GST regime (See 'ST se GST tak') GST Model Law - Is India itching for 'under-cooked' reform? (See 'The Cob (Web)' 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
   
 
 
Download on the App Store
Get it on Google play
TIOL SEARCH
 
TIOL Subscriptions
 All-In-One Package
 Indirect Tax Package
 Income Tax Package
<< More Packages>>
 
   
HOME    BACK TO TOP   
             
Income Tax Customs Excise Service Tax FEMA DGFT SEZ Misc Pitara Budget
  • Notifications
  • Circulars
  • Instructions
  • SC Cases
  • HC Cases
  • ITAT Cases
  • Advance Ruling
  • Settlement
  • Other Cases
  • Directorate of Income Tax (Systems)
  • Tariff Notfn
  • CVD
  • Non Tariff Notfn
  • Circulars
  • Anti-dumping Notfn
  • Safeguard Duty Notfn
  • SC Cases
  • HC Cases
  • Cestat Cases
  • Advance Ruling
  • Settlement
  • Drawback Cases
  • MISC Circulars
  • Tariff Notfn
  • Non Tariff Notfn
  • Circulars
  • SC Cases
  • HC Cases
  • Cestat Cases
  • Advance Ruling
  • Cesses Notfications
  • Excise Amendment
  • MISC Circulars
  • 37B Order
  • Settlement
  • Commr.(A) Order
  • Tribunal
  • Notifications
  • Circulars
  • SC Cases
  • HC Cases
  • Cestat Cases
  • Advance Ruling
  • FAQ
  • Finance Act, 1994
  • Commr. (A) Orders
  • 37B Order
  • Removal of Difficulty
  • VCES
  • Accounting Head
  • Miscellaneous
  • DIPP Notification
  • Exchange Manual
  • Fema Notifications
  • SC Cases
  • HC Cases
  • RBI Notifications
  • RBI Circulars
  • Act
  • Rules
  • Regulations
  • Master Circulars
  • PMLA Notifications
  • Depository Scheme
  • Press Note
  • Notifications
  • Circulars
  • Public Notices
  • Trade Notice
  • FTDR Amendment 2010
  • Notifications
  • Instructions
  • Act 2005
  • Rules 2006
  • DGEP
  • State Acts
  • State Policy
  • MISC
  • SC Cases
  • HC Cases
  • VAT Cases
  • Service News
  • Promotion
  • Transfer
  • Deputation Posts
  • Cadre Review
  • Transfer Policy
  • Training Circulars
  • Recruitment Rules
  • Pay Commission
  • Service Cases
  • The Insider
  • MISC
  • Budget Speeches
  • Union Budgets
  • Economic Surveys
  • TRU - D. O. Letter
  • Finance Acts
  • Finance Bill
  • Budget Circular
  • A Taxindiaonline Website. Copyright © 2016 Taxindiaonline.com Pvt.Ltd. All rights reserved. | Powered by 4th Dimension