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GST - Rule 89 - Refund of ITC - 14/2022-CT - Benefit that gets accrued by way of legislation cannot be denied/curtailed moreso when it is clarificatory in nature: HCGST - Refund of ITC - Production of shipping bills - Transmission of energy could not have been visualized when Rule 89(2) was incorporated in the Statute book: HCGST - Requiring petitioners to produce shipping bills, as proof of export cannot be made applicable to electricity as export can only be through transmission line, but not through rail, road or water for which documents can be made available: HCEconomy Needs Synergetic Inputs to fix twin Deficits of Inflation & Rupee fall43 injured in fire at Durga Puja pandals on UPAgriculture Income & ITR 7OPEC+ debate cutting production by 1 million barrels per day; Crude price up by 3%I-T - 6 months' limitation for deciding refund claims is to be followed strictly: HCBrazil’s Presidential elections: Neither candidates get 50% votes; Bolsonaro to face Lula in second round of pollI-T- Customs duty paid for yacht can be allowed as it is not used by assessee for its own personal use and has operated yacht for benefit and use of entities paying operating fee : ITATLanka reduces tax rate on sanitary napkins amid fiscal crisisI-T - No addition on account of bogus sundry creditors can be made, if AO fails to substantiate non-availability of vendors: ITATXiaomi expresses despair over attachment of Rs 5500 Cr assets in IndiaST - No service tax is payable on amount collected towards liquidated damages: CESTATTruss says her Chancellor decided himself to reduce UK’s rate for top tax bracketCX - There is no reason to deny refund when assessee has availed drawback of only the customs duty portion and not of excise duty: CESTATSexual assault case against founder of, China’s one of biggest e-commerce giants, settled in USCX - After 1.4.2011, appellant cannot avail credit on outdoor catering services, thus credit availed for period 1.4.2011 to 30.4.2011 which is part of SCN is not eligible for credit: CESTATIsrael, Lebanon about to hammer out deal on maritime tangled borderCus - First Appellate Authority was correct in allowing appeal thereby ordering provisional release of goods in question and since there is no change in facts, same is followed in case on hand as well: CESTATBurkina Faso’s junta leader agrees to dethrone himselfUkraine war - France’s spirited support being questioned; 2% arms support found lowest in EUDeath toll from Hurricane Ian mounts beyond 80 thus far in Florida & Carolina put togetherMexico braces up for Hurricane OrleneSP’s supremo Mulayam Singh Yadav is in ICU at Gurugram MedantaGovt reduces export duty on petro goods; makes Special Additional Excise Duty NIL for ATF; Rs 3.5 per litre on diesel & Rs 8000 per tonne for petrol125 die in Indonesian stampede after fans invade football ground and police hurl teargas; 180 injuredAnti-hijab fire spreads across Iran; Rallies organised throughout countryKing Charles III not to attend COP27 in Egypt on advice of Truss GovtUS, Venezuela swap prisoners - 7 Americans for 2 relatives of President MaduroUS, Japan & Australian Defence Ministers vow to work against Chinese military ambitionsWIPO’s Global Innovation Index - India walks up to 40th rankFM says IBC law cannot be allowed to lose its teeth and object
DDT is 3000


28 12 2016
DDT in Limca Book of Records - Third Time in a row

IT was with tremendous trepidation that I started DDT on 1st December 2004. "Where will you get material to write on tax matters on a daily basis?", my friends asked. I had no answer. Many of them were sure that DDT will fold up within a few days. On Day 1 or Day 3000, I never had a bank balance of ideas to draw from. The only one who supported, encouraged and believed that DDT can continue was my Managing Editor Shailendra Kumar. Within a month I was tired and found that writing a daily column is an impossible task far beyond my capabilities. But by that time DDT had become so popular that Shailendra would not allow me to stop. Given a choice, I would have given up latest by January 2005. But encouragement and support from the Netizens were so overwhelming that we had to continue. DDT had become essential and a daily addictive dose. After 12 years and 3000 editions, Shailendra has allowed me to call the curtains down, understanding the huge efforts that went into all these DDTs.

A former Chief Economic Adviser once asked me what exactly I do. I told him I make a living out of translating the Government notifications and laws into English! We started DDT with a mission to bridge(now bridges are no more in fashion; you need complicated fly-overs) the gap between the tax administrators and the stakeholders.Over a period of time it took different shapes and dimensions and I came to be accused of being a merciless critic of the Revenue Departments' law making machinery - especially by some senior officers. One of them even called me Though my English itself is below average, I found the language used by our babus in drafting the laws abominably poor. And when I started pointing out their silly mistakes, the concerned officers became furious.

True criticism is only against somebody or something that you love. By real criticism what you mean is, here is a great thing which has great value, but there is a lapse here which you are pointing out so that the laws, the departments and the officers whom you love are made better. The basic requirement to criticise a work of art (our laws) even irresponsibly is to prove that you love the work and you want it to be better.

In Chennai, there is a famous classic 180 year old statue of Lord Thomas Munro. This is supposed to be a great statue by a great sculptor Francis Chantrey and was installed with great fanfare in 1839. It seems at the grand installation function, a child remarked, "what a stupid statue this is!". People were flabbergasted, what is this child calling a great work of art imported all the way from England stupid. The child explained, "the man is on a majestic horse about to take off and there are no stirrups; how can he ride this horse without stirrups?" It seems due to an oversight, the sculptor did not put stirrups and the statue came to be called as the 'stirrupless majesty'.

We all know this story:

A vain Emperor who cares about nothing except wearing and displaying clothes hires two weavers who promise him the finest, best suit of clothes from a fabric invisible to anyone who is unfit for his position or "hopelessly stupid". The Emperor's ministers cannot see the clothes themselves, but pretend that they can, for fear of appearing unfit for their positions and the Emperor does the same. Finally, the weavers report that the suit is finished, they mime dressing him and the Emperor marches in procession before his subjects. The townsfolk play along with the pretence, not wanting to appear unfit for their positions or stupid. Then a child in the crowd, too young to understand the desirability of keeping up the pretence, blurts out "the emperor has no clothes!".

There is an Apocryphal story about Galileo.

It seems Galileo was made to kneel before the Pope and say that the earth does not move. As he got up, he is believed to have murmured, "and yet it moves."

I submit that DDT was only telling the government all these 3000 days that the horse has no stirrups; that the emperor has no clothes and that the Earth still moves.

Thank you for all the support all these 3000 days. I don't want to end DDT on the 3000th day; so we will have it for two more days.

CBDT Issues Explanatory Notes on Pradhan Mantri Garib Kalyan Yojana

THE Taxation Laws (Second Amendment) Act, 2016 has been enacted by Parliament on 15.12.2016. This Act has inter alia amended the provisions of Finance Act, 2016 and inserted a new Chapter on, 'The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 in the Finance Act, 2016.

The Scheme provides an opportunity to persons having undisclosed income in the form of cash or deposit in an account maintained with a specified entity (which includes banks, post office etc.) to declare such income and pay tax, surcharge and penalty totalling in all to 49.9 per cent. of such declared income.

Besides, the Scheme provides that a mandatory deposit of not less than 25% of such income shall be made in the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016 ('the PMGKY Deposit Scheme') which has separately been notified by the Department of Economic Affairs. The Scheme has commenced on 17.12.2016 and shall remain open for declarations/deposit upto 31.03.2017.

A declaration under the Scheme may be made in respect of any income in the form of cash or deposit in an account maintained by the person with a specified entity, chargeable to tax under the Income-tax Act for any assessment year commencing on or before the 1st day of April, 2017. No deduction in respect of any expenditure or allowance or set-off of any loss shall be allowed against the income in respect of which a valid declaration is made under the Scheme.

CBDT Circular No. 43/2016, Dated: December 27, 2016

Acceptance of demonetized currency for making payments towards tax, penalty, surcharge and deposit under Pradhan Mantri Garib Kalyan Yojana

CBDT had earlier clarified that up to 30.12.2016, payment towards tax, surcharge, penalty and deposit under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) can be made in old Bank Notes of Rupees 500 and Rupees 1000 denomination issued by the RBI.

It is reported by Income Tax field formations that since the Reserve Bank of India (RBI) had not issued FAQs or directions to the banks to accept old demonetized notes for payments under PMGKY, some of the banks were not clear about the acceptability of the old notes for the purposes of PMGKY.

CBDT informs that RBI had yesterday revised the FAQ and incorporated the following clarification.

29. Can payments towards tax, penalty, surcharge and deposit under PMGKY be made in SBNs?

The Central Government has decided that up to 30.12.2016, the payment towards tax, surcharge, penalty and deposit under the Pradhan Mantri Garib Kalyan Yojana (PMGKY), can be made in Old Bank Notes of Rs. 500 and Rs. 1000 denomination issued by the RBI. The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana (PMGKY), 2016 has commenced on 17th December, 2016 and is open for declarations upto 31st march, 2017. The payment of tax, surcharge and penalty under the Scheme is to be made through challan ITNS-287 and the deposits are to be made in the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016. The notification relating to PMGKY are available on the website

CBDT requests the Principal Chief Commissioners that the clarification issued by RBI may be urgently brought to the notice of the taxpayers and the banks so that payments under PMGKY in old demonetized currencies are accepted by the banks without any difficulty to the taxpayers.

They have three more days.

FTP - Export Policy of Potato - No Minimum Export Price (MEP)

GOVERNMENT has amended Notification No.  15/2015-20  dated 26.07.2016 to stipulate that:

Export of Potatoes, Fresh or Chilled at Serial Number 50A of Chapter 7 of Schedule 2 of ITC (HS) Classification of Export & Import Items shall be permitted without any Minimum Export Price (MEP).

DGFT Notification No. 32/2015-2020, Dated: December 27, 2016

Customs - Exemption to Technitium Withdrawn

GOVERNMENT has withdrawn the customs duty exemption to Technitium-99m. Serial number 163B in the table to Notification No.12/2012-Customs, dated the 17th March, 2012, is omitted.

Notification No. 61/2016-Customs, Dated: December 27, 2016

Why 'Digital'?

THE case for digital payments can be made on the basis of four key factors, that make paperless payment instruments and systems more desirable -

First, cash is expensive. While there are several perceived benefits of transacting in cash (such as instantaneous settlement, relative anonymity, and the notion of security associated with holding physical value), there are several latent and implicit costs associated with cash.

Second, technology has been advancing at a rapid pace to deliver robust, secure and convenient payments solutions. This enables rapid delivery of payment services to large sections of the population. Third, digital payments allow for services to be delivered at lower costs, accord greater scal ability and greater ease of access. This in turn, helps in fostering economic growth and financial inclusion.

Lastly, recent Government initiatives have created a catalytic environment for the greater proliferation and growth of digital payments.

High Cost of Cash

India is a cash heavy economy, with almost 78% of all consumer payments being effected in cash.

India's preference for cash as a payment instrument is further reflected by India's significant cash to GDP ratio of (12.04%), which is substantially higher than comparable countries. India's dependency on cash imposes an estimated cost of approximately INR 21,000 Crores on account of various aspects of currency operations including cost of printing new currency, costs of currency chest, costs of maintaining supply to ATM networks, and interests accrued.This estimate does not reflect other external costs imposed by the use of cash, including the costs imposed by counterfeit currency and black money.Some estimates indicated that the net cost of cash (including cost of currency operations, as well as other costs borne by households, businesses and banks in handling cash)as 1.7% of India's real GDP in 2014-15. Similarly, estimates indicated that foregone tax revenues from the shadow economy constituting 19% of India's GDP, account for 3.2% of India's GDP.

Transitioning to digital payments is estimated to bring about a significant reduction in costs incurred on account of inefficiencies associated with cash and other paper based payments. For instance, by certain estimates, transitioning to an electronic platform for government payments itself could save approximately INR 100,000 Crores annually, with the cost of the transition being estimated at INR 60,000 to INR 70,000 Crores. Similarly, a recent report estimates that for a total investment of about INR 60,000 crores over 5 years towards creating a digital payments ecosystem, India could reduce its cost of cash from the present levels of 1.7% to 1.3% of GDP.

The benefits of using digital payments are neither understood by all equally, nor are they communicated efficiently. A sample survey conducted in 2014 acrossurban and rural neighbourhoods in Delhi and Meerut, shows that despite being keenly aware of the costs associated with transacting in cash, most consumers see three main benefits of cash, viz. freedom of negotiations, faster settlements,and ensuring exact payments.

From the Report of the Watal Committee on Digital Payments

Until Tomorrow with more DDT

Have a nice day.

Mail your comments to

Sub: DDT 3000 jai ho

Dear vijaykumarji
I congratulate you for your sincere efforts on the momentous achievement of reaching DDT 3000. But I am equally saddened that it is coming to an end. No doubt that everything good or bad has to end, but my addiction to DDT makes it all the more painful to part with. Kindly accept my salutation for the great task of yours that educated persons like me, day in and day out. I have no words left with me to explain my attachment with this column. I have grown to be an upright, knowledgeable personality due to your daily doses. Jai ho.
M G Kodandaram, Faculty, NACEN

Posted by madihally kodandaram
Sub: DDT at crossroads

Heartfelt congratulations to Vijay and TIOL for this huge achievement.

But, saddenned to note that DDT will cease to exist. As rightly stated by Vijay, whoever would have though a daily column on some mundane topic of tax will be read by netizens, let alone be lapped up with unbridled interest on a daily basis by thousands. There is no denial of the fact that the column was a bridge between the confusing laws and confused stakeholders.

While understanding the huge efforts required to sustain a column over such a long time, I only hope that the reason has nothing to do with the lack of written response of netizens in the column. As everyone will agree, the column was being read on a daily basis by tens of thousands (industry, government and advisors all alike) but did not evoke major comments, responses etc. simply due to the indisputable highest quality of the contents. The number of hits of the DDT page will have vouched for its huge popularity.

I was one among such silent thousands who avidly followed DDT, and will miss it from my heart.

I sincerely hope Vijay and TIOL team reconsider the decision and continue with DDT for longer time.


Posted by Viswanathan Sivaraman
Sub: DDT is 3000

We enjoyed every bit of it.
please do not stop.

A K Patel

Posted by anil patel
Sub: 3000 edition of DDT

Hearty congratulations sir on your wonderful performance in bringing out 3000th edition of DDT,non stop on all working days!. Felt bit disappointed to know that this is the last edition of DDT. All the best Sir.

Posted by rrkothapally rrkothapally