News Update

CII projects 7.7% growth in current fiscalDRI nabs two persons with about 6 kg ivoryIBBI Chief calls for preserving reputation of fledgling institutionService Matter - Relief to Ashok Aggarwal - Disciplinary authority cannot approve initiation of enquiry by ignoring statements of witnesses and merely relying on gist of evidence forwarded by CBI: HCCCI invites public comments on merger of Linde & Praxaire-Way Bill for Intra-State movement of goods - State tally goes up to 27PM inaugurates Delhi-Meerut ExpresswayTax benefits to angel investors - CBDT inserts Clause (Viib) in Sec 56India generates 940 tonnes of plastic waste every day: Dr Harsh VardhanAnti-dumping duty imposed on ‘Saturated Fatty Alcohols' imported from Indonesia, Malaysia and ThailandGovt stipulates 8.5% interest rate on PFRule 11UA - Word 'or an accountant' omitted + Clause (viib) of Section 56(2) not to apply to consideration received by a Company for issue of shares that exceeds face value of such shares if received from an investorI-T - Taxable event arises as soon as interest income on bank deposits accrues & becomes due; Deferred receipts on instruction of depositor will not make it hypothetical income: HCFM is out of ICU; recovering fast after kidney transplantAnti-dumping duty on on'Ammonium Nitrate' - Notification 44/2017-Cus(ADD) amended to substitute name of exporter at sr. no.1 as 'Euro Chem Trading GMBH Through Rawfert Offshore Sal, Lebanon'Finance Commission team to visit Kerala on coming MondayWTO Chief calls for reducing trade tensionsNIC cloud-based data centre to go live in OrissaCBIC clarifies on application of IGST on goods supplied while deposited in Customs bonded warehousePublic comments sought on Draft NDCP till June 1, 2018PM lays foundation stone for Patratu Super Power ProjectI-T - It is not open for AO to make additions while framing assessment u/s 143(3) merely on basis of seized documents beyond period of limitation u/s 153A: ITATIndia to rope in international labs for food testingISC Panel finalises recommendations of Punchhi CommissionCBIC introduces monetary limits of Rs.2.50 lakhs for filing Revenue appeals before Commissioner(A); applicable to CX & ST legacy cases and those currently pending.Govt sanctions out of turn coal to PSUs; Private plants find themselves at receiving endACC appoints JS, TRU, Alok Shukla as Minister (Customs) in PMI to WTO at GenevaACC grants one more year extension to CBDT Chairman Sushil ChandraThere is no provision in the CGSTAct which allows exemption on an Input Service if the Output service provided by taxable service is exempt: AARServices provided to M/s Karnataka Power Transmission Corporation Ltd. – since it is company registered under the Companies Act, 1956, and not a State Government authority, benefit of concessional rate @12% not available: AARServices provided of diagnosis, pre and post counseling therapy qualify to be health care services and attract Nil rate of Tax: AARTransaction of transfer of one of the units of the applicant as a going concern amounts to supply of service – Nil rate under 12/2017-CT(R): AAR
 
12 Years of DDT

TIOL-DDT 2982
01 12 2016
Thursday

12 Years of DDT
DDT in Limca Book of Records - Third Time in a row
 

YOUR DDT has completed 12 years. We started DDT on 1st December 2004 and for every single working day in the last 12 years, we have been giving you the daily dose without a break.

DDT thanks all the Netizens, the Government and all colleagues in TIOL who made this arduous journey possible.

This month DDT will also complete another major milestone of 3000 editions.

Service Tax -'online information and database access' not Telecom Service

RULE 2(q) of the Place of Provision of Services Rules, 2012, reads as

(q) "telecommunication service" means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electro-magnetic means but shall not include broadcasting services.

This is now amended to read as (q) "telecommunication service" means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electro-magnetic means but shall not include broadcasting and online information and database access or retrieval services.

'Online information and database access or retrieval' is no more a telecom service.

With a view to provide a level playing field to Indian service providers providing taxable online information and database access or retrieval [OIDAR] services including electronic services in India, the exemption to such services provided in India by service providers located in foreign territory is being withdrawn w.e.f 1st December, 2016. Thus cross border business to consumer [B2C] OIDAR services provided by a foreign service provider to a person in India will become taxable from 1st December, 2016 onwards. [Source - CBEC Press Release dated 11.11.16]

Today is the 1st December, 2016.

Notification No. 51/2016-Service Tax., Dated November 30, 2016

ST - Excess baggage charges collected by Airlines are an integral part of main service, namely, transportation of passengers by air  - SC Dismisses Revenue Appeal

CARRYING of baggage by the appellant Airlines is incidental to the service being 'transport of passengers by Air' and the same is classifiable under Section 65(105)(zzn). There is no separate contract in the facts of the case for transport of goods (excess baggage). More particularly, in the case of agreement of transport of passengers by Air, there is no element of transport of unaccompanied goods. Thus, the excess baggage charges collected by the appellant Airlines is integral part of the service provided for 'transport of passengers by Air'. CESTAT in 2015-TIOL-2329-CESTAT-MUM.

The Supreme Court recently dismissed the Revenue Appeal against this decision.

For more details, please see Breaking News.

Demonetisation -Withdrawal of only Rs. 10,000 from PMJDY

WITH a view to protect the innocent farmers and rural account holders of PMJDY (Pradhan Mantri Jan Dhan Yojana) from activities of money launders and legal consequences under the Benami Property Transaction & Money Laundering laws, RBI has decided to place certain limits, as a matter of precaution, on the operations in the PMJDY accounts funded through deposits of Specified Bank Notes (SBNs) after November 09, 2016. As a temporary measure, the banks are advised to observe the following in respect of the PMJDY accounts:

i. Fully KYC compliant account holders may be allowed to withdraw Rs. 10,000/- from their account, in a month. The branch managers may allow further withdrawals beyond Rs. 10,000 within the current applicable limits only after ascertaining the genuineness of such withdrawals and duly documenting the same on bank's record.

ii. Limited or Non KYC compliant account holders may be allowed to withdraw Rs. 5,000 per month from the amount deposited through SBNs after November 09, 2016 within the overall ceiling of Rs. 10,000.

RBI/2016-17/165 DCM (Plg) No. 1450/10.27.00/2016-17., Dated November 29, 2016

Economy in Use of Paper - Fin Min Instructions

MINISTRY of Finance has been issuing instructions from time to time on expenditure management, fiscal discipline and on the need for economy and rationalisation of Government expenditure. Instructions on use of judicious use of paper have been issued in the past and similar instructions arc also contained in the Manual of Office Procedure published by Department of Administrative Reforms and Public Grievances.

Expenditure Management Commission has also recommended that publications should he digitised wherever possible to save on stationery and expenditure.

Considering that electronic publications (e-publications) are environment friendly, all Ministries/Departments are advised to review the utilisation of their different publications and to start with e-publish some of their non-Statutory publications. While considerably reducing use of paper e-publications would also serve as a good digital repository for posterity that can be accessed anywhere unlike manual publications.

Interestingly, this memorandum, apparently, is also on paper.

Ministry of Finance, Department of Expenditure Office Memorandum No. 25(6)/E.Coord-2014., Dated November 30, 2016

Arvind Kejriwal misrepresenting changes in Taxation Law?

FINANCE Minister Arun Jaitley tweeted:

Factually incorrect statements have been made by @ArvindKejriwal in relation to changes proposed in the Taxation Law.

+ The existing provision of penalty of 200% for mis-reporting income under Section 270A has not been changed.

+ The existing provision of charging only 30% tax on un-explained cash shown in the Return has been now changed to 60% tax + 25% of tax as surcharge + 3% of tax as cess.

+ This is a total of 77% of tax in case if assessee shows it in the Return. Otherwise 85% of income will be payable as tax + penalty.

+ Penalty for search & seizure is also increased from existing 10% & 20% to 30% even if assessee admits & shown it in his Return. Otherwise 60% of income will be the penalty.

+ In PMGKY, apart from 50% of income being taken as tax + penalty + surcharge, 25% of disclosed income has to be kept as interest free deposit in PMGKY deposit scheme for 4 years.

Why should a former IRS officer, @ArvindKejriwal factually misrepresent changes in the Taxation Law?

Bank Cashier Booked for exchanging over a crore of rupees

ALL the new notes released by the RBI through the banks are not reaching the ordinary people. They seem to be going to the same black money hoarders who had black money in the past. It is reported that a cashier of a bank in Jaipur in Rajasthan has exchanged more than a crore of rupees of the old 500 and 1000 rupee notes for brand new 2000 rupee notes - easier to store. There are many such cashiers and others contributing to the creation of the new black economy.

Please also see our CobWeb

Play the National Anthem in Cinema Halls - Supreme Court

THE Supreme Court has yesterday issued certain directions on playing the National Anthem:

(a) There shall be no commercial exploitation to give financial advantage or any kind of benefit. To elaborate, the National Anthem should not be utilized by which the person involved with it either directly or indirectly shall have any commercial benefit or any other benefit.

(b) There shall not be dramatization of the National Anthem and it should not be included as a part of any variety show. It is because when the National Anthem is sung or played it is imperative on the part of every one present to show due respect and honour. To think of a dramatized exhibition of the National Anthem is absolutely inconceivable.

(c) National Anthem or a part of it shall not be printed on any object and also never be displayed in such a manner at such places which may be disgraceful to its status and tantamount to disrespect. It is because when the National Anthem is sung, the concept of protocol associated with it has its inherent roots in National identity, National integrity and Constitutional Patriotism.

(d) All the cinema halls in India shall play the National Anthem before the feature film starts and all present in the hall are obliged to stand up to show respect to the National Anthem.

(e) Prior to the National Anthem is played or sung in the cinema hall on the screen, the entry and exit doors shall remain closed so that no one can create any kind of disturbance which will amount to disrespect to the National Anthem. After the National Anthem is played or sung, the doors can be opened.

(f) When the National Anthem shall be played in the Cinema Halls, it shall be with the National Flag on the screen.

(g) The abridge version of the National Anthem made by any one for whatever reason shall not be played or displayed.

The directions are issued, for love and respect for the motherland is reflected when one shows respect to the National Anthem as well as to the National Flag. That apart, it would instill the feeling within one, a sense committed patriotism and nationalism.

Decrease in Tariff Value of Gold, Silver

GOVERNMENT has decreased the tariff value of gold and silver. However, those of all oils and Brass Scrap see an increase. Poppy seeds and Areca Nuts do not find their Tariff values disturbed.

Table 1
S. No.
Chapter/ heading/ sub-heading/tariff item
Description of goods
Tariff value USD (Per Metric Tonne) as on 15.11.2016
Tariff value USD (Per Metric Tonne) from 30.11.2016
(1)
(2)
(3)
(5)
(6)
1 1511 10 00 Crude Palm Oil 739 764
2 1511 90 10 RBD Palm Oil 744 797
3 1511 90 90 Others - Palm Oil 742 781
4 1511 10 00 Crude Palmolein 747 809
5 1511 90 20 RBD Palmolein 750 812
6 1511 90 90 Others - Palmolein 749 811
7 1507 10 00 Crude Soyabean Oil 866 870
8 7404 00 22 Brass Scrap (all grades) 3017 3176
9 1207 91 00 Poppy seeds 2533 2533
Table 2
S. No.
Chapter/ heading/ sub-heading/tariff item
Description of goods
Tariff value USD from 15.11.2016
Tariff value USD from 30.11.2016
1 71 or 98 Gold, in any form in respect of which the benefit of entries at serial number 321 and 323 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed. 394 per 10 grams 386 per 10 grams
2 71 or 98 Silver, in any form in respect of which the benefit of entries at serial number 322 and 324 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed. 563 per kilogram 542 per kilogram
Table 3
S. No.
Chapter/ heading/ sub-heading/tariff item
Description of goods
Tariff value USD (Per Metric Tons) from 15.11.2016
Tariff value USD (Per Metric Tons) from 30.11.2016
1 080280 Arecanuts 2621 2621

Notification No. 144/2016-CUSTOMS (N.T.)., Dated: November 30, 2016

Until Tomorrow with more DDT

Have a nice day.

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Sub: 12 years of DDT

Hearty congratulations on completion of 12 years of DDT

Posted by anil patel