TIOL-DDT 1866
28.05.2012
Monday

BY Instruction No. 1/2012 dated 02.02.2012, the CBDT had stipulated that:

(i) In all returns (ITR-1 to ITR-6), where the difference between the TDS claim and matching TDS amount reported in AS-26 data does not exceed Rs. One lac, the TDS claim may be accepted without verification.

(ii) Where there is zero TDS matching, TDS credit shall be allowed only after due verification. However, in case of returns of ITR-1 and ITR-2, credit may be allowed in full, even if there is zero matching, if the total TDS claimed is Rs. Five thousand or lower.

(iii) Where there are TDS claims with invalid TAN, TDS credit for such claims are not to be allowed.

(iv) In all other cases, TDS credit shall be allowed after due verification.

Now, the Board has decided to withdraw the above instructions and the fresh instructions are:

i) In all returns (ITR-1 to ITR-6), where the difference between the TDS claim and matching TDS amount reported in AS-26 data does not exceed Rs. Five thousands, the TDS claim may be accepted without verification.

ii) Where there is zero TDS matching, TDS credit shall be allowed only after due verification.

iii) Where there are TDS claims with invalid TAN, the TDS credit for such claims is not to be allowed.

iv) In all other cases TDS credit shall be allowed after due verification.

What is “due verification” and how is it to be done?

CBDT Instruction No. 04/2012, Dated: May 25, 2012

Exemption to Export Promotion Schemes – Karaikal added

UNDER several exemption notifications pertaining to imports under the various promotional schemes, the imports are allowed only through certain ports and ICDs. Now Karaikal in the Union territory of Puducherry is added to the list. 31 Notifications are amended and the Board needs to be congratulated for amending all the notifications, which were required to be amended. This time they have a right list with them.

Notification No. 37/2012 - Cus., Dated: May 24, 2012

Government Hikes Drawback on Gold and Silver

GOVERNMENT has hiked the drawback rates for Articles of jewellery and parts thereof made of gold from Rs. 30.90 to Rs. 100.70 per gm and for Articles of jewellery and parts thereof made of silver from Rs. 1545 to Rs. 2590.80 per kg.

The Schedule to Notification No. 68/2011 dated 22.09.2011, in respect of tariff heading 7113 is substituted as given below.

Notification No. 46/2012 - Cus., (N.T.), Dated: May 24, 2012

Poor Ambience in Central Excise and Customs Offices - CCs Responsible - MoS

MINISTER of State in the Finance Ministry SS Palanimanickam has reportedly said in Tiruchi that there is no shortage of funds for providing adequate infrastructure for the personnel working in Central Excise and Customs department - for the construction of office buildings, additional staff quarters, modernisation and provision of computer systems. In the last several years, Rs 700-Rs 800 crore was being spent on this.

The Minister said that if at all there is any inadequate working ambience, it was the fault of the regional or zonal heads who had not submitted the requisite proposals to the ministry.

Now you know who is responsible for the stinking toilets, lack of seats for the staff and visitors and old furniture strewn all over!

Petro Hike - Who Benefits?

THERE has been an unprecedented hike in petrol price speeding it to Rs. 80 per litre. But out of this Rs. 80/- about 43 percent that is about Rs. 35/- goes for taxes – excise duty and VAT. Every time the Central Government hikes the petrol price, the States get a bonus in higher VAT. Should you blame falling rupee and import bill for hike in the fuel price?

Jurisprudentiol – Tuesday's cases

Central Excise/Service Tax/Reward

Though tax amount is paid case has not attained finality - Granting of Informer reward at this stage, is not proper - Appeal disposed of: HC

THOUGH the department has recovered the duty evaded on account of service tax dues together with interest, the matter has not attained finality. The payment of a reward at this stage cannot be directed, less so by the Court in the exercise of its extra ordinary jurisdiction under Article 226 of the Constitution. So long as the proceedings initiated by the Assessee are pending, the issue as regards the liability of the assessee is still at large before the CESTAT which has to decide the issue.

It is now a settled principle of law that a reward under the policy of the Union Government is purely an ex gratia . There is no vested right as such to the payment of a reward.

Income Tax

Whether income earned from development of software upgrades for Network Management Systems for smooth and trouble free working of VSAT service provided by assessee, as part of business of telecommunication services, is eligible for deduction u/s 80-IA(4) - YES, rules Delhi HC

THE assessee is a public limited company and was providing satellite based telecommunication solutions including VSAT services, up-linking services, play out services and broadband service through satellite. It had earned income from the said services, besides rental income and income from other sources. In the return of income, it had claimed deduction u/s 80IA of the Act of Rs.4,88,29,013/- and after the adjustment, had declared total taxable income of Rs. 5,45,89,013/-. 

The AO treated Rs.1,42,34,278/- as income earned by the assessee from domestic satellite service. The AO held that the said satellite was not a 'domestic satellite' as it was owned by Department of Space, Government of India, which was not an Indian company and was being operated by British Telecom (Worldwide), a foreign company.

Customs

Charging interest is a substantive provision and can be charged only if statute makes a substantive provision in that regard - provisional assessments are governed by Sec 18 and at relevant time when assessments were finalized there was no provision for recovery of interest – interest not chargeable u/s 28AA as no SCN has been issued: HC

THIS  case began its journey in the year 1979. The Respondent had imported a consignment of Caustic Soda in the year 1979. The duty payable on the imported Caustic Soda was 92.5% as per the Customs Tariff Act, 1975. At that time the Central Government had issued a special order under Section 25(2) of the said Act by which the State Chemicals and Pharmaceuticals Corporation of India Ltd. were exempted from paying customs duty on the import of Caustic soda in excess of 10% ad-valorem.

See our columns Tomorrow for the judgements

Until Tomorrow with more DDT

Have a Nice Day

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