TIOL-DDT 2945
06 10 2016
Thursday

GST is perhaps the most confusing tax in history to be unleashed with undue haste by an unprepared administration on an unsuspecting public. There are too many analysts incising every aspect of the new tax like the six blind men describing the elephant - only there are about six hundred doing the description. Unfortunately, the general media has developed a fascination for GST that all kinds of reports and comments are published daily leaving the common taxpayer and the tax collector totally confused. The Government seems to be selectively leaking vital information to some instead of issuing a Press Release. Yesterday a journal came out with what the GST administration is going to be and what is going to happen to CBEC once GST comes into force. This was claimed to be exclusive.

Already we have a Constitution Amendment, a Draft Act and several Draft Rules and Formats, with absolutely no idea about how many are on the way. Is a taxpayer expected to read and understand all these voluminous literature? Is he expected to spend his entire life in compliance of complicated procedures? Shouldn't he be allowed to do some business so that he can earn some money to pay for the babus who draft laws to make his life miserable.

Is it ever possible to make laws simple and easy to comply with?

Blind Men and the Elephant - A Poem by John Godfrey Saxe

It was six men of Indostan
To learning much inclined,
Who went to see the Elephant
(Though all of them were blind),
That each by observation
Might satisfy his mind.

The First approached the Elephant,
And happening to fall
Against his broad and sturdy side,
At once began to bawl:
"God bless me! but the Elephant
Is very like a wall!"

The Second, feeling of the tusk,
Cried, -"Ho! what have we here
So very round and smooth and sharp?
To me 'tis mighty clear
This wonder of an Elephant
Is very like a spear!"

The Third approached the animal,
And happening to take
The squirming trunk within his hands,
Thus boldly up and spake:
"I see," quoth he, "the Elephant
Is very like a snake!"

The Fourth reached out his eager hand,
And felt about the knee.
"What most this wondrous beast is like
Is mighty plain," quoth he,
"'Tis clear enough the Elephant
Is very like a tree!"

The Fifth, who chanced to touch the ear,
Said: "E'en the blindest man
Can tell what this resembles most;
Deny the fact who can,
This marvel of an Elephant
Is very like a fan!"

The Sixth no sooner had begun
About the beast to grope,
Then, seizing on the swinging tail
That fell within his scope,
"I see," quoth he, "the Elephant
Is very like a rope!"

And so these men of Indostan
Disputed loud and long,
Each in his own opinion
Exceeding stiff and strong,
Though each was partly in the right,
And all were in the wrong!

MORAL.

So oft in theologic wars,
The disputants, I ween,
Rail on in utter ignorance
Of what each other mean,
And prate about an Elephant
Not one of them has seen!

Guidelines for determination of maximum packing speed of FFS pouch packing machine - CBEC Issues Draft Circular

THIS concerns Pan Masala Packing Machine (Capacity Determination and Collection of Duty) Rules, 2008 and Chewing Tobacco and Unmanufactured Tobacco Packing Machine (Capacity Determination and Collection of Duty) Rules, 2010 . These rules were amended in the budget 2015-16 and the maximum packing speed at which a packing machine can be operated for packing of notified goods of various retail sale prices was made a factor relevant for determining deemed production.

Representations have been received from the Trade regarding lack of guidelines to verify the maximum speed of packing machines leading to disputes and litigation.

In this regard, CBEC has issued a draft circular.

A study was conducted by DGCEI in collaboration with IIT, Delhi to examine the methodology for determination of maximum packing speed. The study has established that through the use of automation software consisting of PLC (Programme Logic Controller) and Human Machine Interface, the speed of the Rotary Servo Motors installed in the said machines could be synchronised which in turn would control and determine the maximum speed of the pouch making machines. Through the study, it has been concluded that theoretical maximum speed of the pouch packing machine can be determined based on the principle of kinematics, after taking an efficiency factor of 80%. The efficiency factor takes into consideration various other limiting factors, such as, various design parameters of the mechanical and electrical parts, the product to be manufactured, the volume/ size of the pouches and the type of packaging materials used etc.

Formula for determination of Maximum Packing Speed:Based on the above study, the following formula is proposed in the draft circular to derive the maximum speed of the pouch packing machine:

Board requests feedback on the draft circular from Officers of the Department and Members of the Trade by 20.10.2016 on the email id: rohan.choudhary@nic.in

CBEC F. No. 81/03/2016-CX.3.,Dated: October 05, 2016

Customs - Exemption to goods imported into India for display or use at an event

NOTIFICATION No.157/1990-Customs, dated 28.03.2016 is amended. The portion shown in red are omitted and the portion shown in blue are added.

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods described in Schedule I annexed hereto, when imported into India for display or use at any event specified in Schedule II or Schedule III, from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, subject to the conditions that :-

(1) the event specified in Schedule II is being held in public interest and is sponsored or approved by the Government of India or the India Trade Promotion Organisation;

(2) the said goods are imported under an ATA Camet issued in accordance with the Customs Convention on ATA Camet for temporary admission of goods (hereinafter referred to as the ATA Camet) and the Camet is guaranteed by the Federation of Indian Chamber of Commerce & Industry, which has been appointed as the guaranteeing association for ATA Camet in India (hereinafter referred to as the Federation);

(3) the said goods in all respects conform to the description, quantity, quality, value and other specifications given in the ATA Camet duly certified by the Customs authorities at the country of exportation;

(4) the said goods shall be exported within a period of six months from the date of importation:

Provided that where the goods are exported within the said period of six months and again re-imported, the period of six months shall be computed from the date of first importation;

Provided further that when the Deputy Commissioner of Customs or Assistant Commissioner of customs is satisfied that it is necessary in the public interest so to do, it may extend the said period of six months by a further period not exceeding six months;

(5) in the event of failure to export the goods within the period specified in condition (4), the customs duty leviable on the goods as on the date of clearance shall be paid by the Federation:

Provided that the Federation shall not be liable to pay the customs duty in cases where the said goods are sold in exhibitions or fairs or otherwise disposed of in India in accordance with any law for the time being in force applicable to such goods and on payment of the duties of customs which are payable in respect of such goods.

"1A. In the event of failure to export the goods within the period specified in condition (4) of paragraph 1, the Federation and the importer shall, jointly and severally be liable to pay the duties of customs leviable on the goods as on the date of import, along with applicable interest:

Provided that the liability of the Federation shall not exceed the amount of the duties of customs by more than ten per cent:

Provided further that the Federation shall not be liable to pay the customs duty in cases where the said goods are sold in exhibitions or fairs or otherwise disposed of in India in accordance with any law for the time being in force applicable to such goods and on payment of the duties of customs which are payable as on the date of import in respect of such goods, along with applicable interest."

2. Nothing contained in this notification shall apply to goods imported through the medium of post.

3. This notification shall come into force on the 1st day of May 1990.

SCHEDULE I

(a) Goods intended for display or demonstration.

(b) Goods intended for use in connection with the display of foreign products, including -

(i) goods necessary for the purpose of demonstrating machinery or apparatus to be displayed:

(ii) construction and decoration material including electrical fittings, for the temporary stands of foreign exhibitors:

(iii) advertising and demonstration material which is demonstrably publicity material for the goods displayed, for example, sound recording, films and lanterns, slides and apparatus for use therewith:

(iv) equipment including interpretation, apparatus, sound recording apparatus and films of an educational, scientific or cultural character intended for use at international meetings conferences or congresses.

SCHEDULE II
EVENTS

1. Trade, industrial, agricultural or crafts exhibition, fair, or similar show or display.

2. Exhibition or meeting which is primarily organised for a charitable purpose.

3. Exhibition or meeting which is primarily organised to promote any branch of learning, art, craft, sport or scientific, educational or cultural activity to promote friendship between peoples, or to promote religious knowledge or worship.

4. Meeting of representatives of any international group of organisations.

5. Representative meeting of an official of or commemorative character.

6. Display or demonstration before any Department of the Central Government or a State Government or a Union territory Administration.

7. Meeting, conference or congress, by whatever name called, organised by any company or organisation.

Explanation:- The events specified in this Schedule do not include exhibitions organised for private purposes in shops or business premises with a view to promote the sale of foreign goods.

SCHEDULE-III
(EVENTS)

Display or demonstration before any department of Central Government or a State Government or a Union Territory Administration.

Meeting, conference or congress organized by any company or organization.

The crucial amendment is that whereas earlier the liability was cast solely on the Federation, now there is a joint liability of Federation and importer for failure to export the imported goods and the Federation liability shall now not exceed the amount of the duties of customs by more than ten per cent.

Notification No.58/2016-Customs, Dated: October 05, 2016

Mumbai Call Centres Cheat US Taxpayers Posing as IRS Officers

THREE offices in Thane, Mumbai were packed with hundreds of employees posing as Internal Revenue Service officials in a scam that has vexed Americans for years.

The Wall Street Journal reported today that Police arrested 70 persons alleging they helped manage nine call-centers where around 700 people made thousands of calls a day to try to trick Americans into sending them money. The call center workers had one job: dial people in the U.S, accuse them of failing to pay their taxes and threaten them with jail if they didn't pay up immediately. And obviously many did.

Even in India, mails have been sent with taxindiaonline id to dupe innocent citizens. Please see Fake

Today's Date is unique 6102016 - reads the same backwards.

Until Tomorrow with more  DDT

Have a nice day.

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