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rchgiri

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First topic message reminder :

Please find the following links of ICAI which are helpful for the students who are appearing for CS Executive/Professional December 2016 Examinations.

(A) [You must be registered and logged in to see this link.]

for CA Direct Tax Laws Supplementary Study Materials as amended by Finance Act 2015 [Relevant for May 2016 and November 2016 examinations]

(B) [You must be registered and logged in to see this link.] & [You must be registered and logged in to see this link.]

for CA Indirect Tax Laws Supplementary Study Materials as amended by Finance Act 2015 [Relevant for May 2016 and November 2016 examinations]

&

(C) [You must be registered and logged in to see this link.]

for Select Cases of Direct Tax Laws & Indirect Tax Laws [Relevant for CA May 2016 and CA November 2016 examinations]

published by The Institute of Chartered Accountants of India.

Have a happy Exam Preparation.



Last edited by rchgiri on Sun 3 Jul 2016 - 22:25; edited 16 times in total (Reason for editing : As amened as per Finance Act 2015)


rchgiri

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Please find the link for New Study Materials on Advanced Tax Laws and Practice applicable for Assessment Year 2014-15 for both CS Professional Old Syllabus (Module 3,Paper 6) & New Syllabus (Module 3,Paper 7)

[You must be registered and logged in to see this link.]

rchgiri

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Please find the link

[You must be registered and logged in to see this link.]

for CS Executive New Study Materials on Tax Laws and Practice applicable for Assessment Year 2014-15

It is equally applicable to CS Executive Old Syllabus.

rchgiri

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Please find the link for DIRECT TAXES AND INDIRECT TAXES UPDATES for both CS Executive and Professional Old & New Syllabus for June 2014 Exam

[You must be registered and logged in to see this link.]

Wish you all the best.

29 notes of tax law and practice on Sat 19 Jul 2014 - 17:49

vinay2kumar


can any one provide the notes of tax law and practice

rchgiri

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Abatement and Cenvat credit availed simultaneously but subsequently Cenvat credit reversed, tantamount to non-availment of Cenvat credit – Assessee allowed to avail the Abatement benefits

Central Warehousing Corporation Vs. Commissioner of Service Tax, Raigad [2014-TIOL-2182-CESTAT-MUM]

In the instant case, Central Warehousing Corporation (the Appellant) was rendering both TAXABLE as well as EXEMPTED services. The Appellant was availing CENVAT CREDIT of the common input services and not maintaining separate records in respect of such input services consumed for the dutiable output services and the exempted output services separately.

However, the Appellant was following the procedure as prescribed under RULE 6(3A) of the CENVAT CREDIT Rules, 2004 (the Credit Rules) which provides for reversal of Cenvat credit taken attributable to the exempted output services as per the formula prescribed thereunder. This reversal was done every month and subsequently at the end of the year, the reversal made was finalised based on the annual figures.

The Appellant have been filing the details of the reversals made to the Department, which was received and acknowledged by the Department. As the Appellant had reversed the Cenvat credit taken on the exempted output services, they claimed benefit of Notification 1/2006-ST dated March 1, 2006 (“Abatement Notification”) which provides for an abatement of 70% from the value of services in respect of the taxable service of
‘transport of goods in containers by rail services’.

The Revenue sought to deny the benefit of abatement on the ground that reversal of Cenvat credit after availing the Cenvat credit does not tantamount to non-availment of Cenvat credit and, therefore, the conditions of Abatement Notification stands violated. The Revenue contended that the Appellant should have maintained separate records ab initio giving details of the Cenvat credit attributable to the taxable services as well as exempted services and not taken the Cenvat credit in respect of such exempted services. Being aggrieved, the Appellant preferred an appeal before the Hon’ble CESTAT, Mumbai.

The Hon’ble CESTAT, Mumbai after noting that Rule 6(3)(i) and (ii) of the Credit Rules read with Rule 6(3A) thereof provides a mechanism of reversal of Cenvat credit to provider of output services opting not to maintain separate records and relying upon following judgments:

-> Chandrapur Magnet Wires (P) Ltd. Vs. Collector of Central Excise [1996 (81) ELT 3 (SC)];

-> Commissioner of Central Excise Vs. AshimaDyecot Ltd. [2008-TIOL-659-HC-AHM-CX]; and

-> Life Long Appliances Ltd. Vs. Commissioner of Central Excise [2000 (123) ELT 1110 (Trib.)] affirmed by the Hon’ble Apex Court in [2006 (196) ELT A 144 (SC)]

Held that once the reversal of Cenvat credit is done as prescribed in Rule 6(3A) of the Credit Rules, it would amount to non-availment of Cenvat credit.

Accordingly, the matter was remanded back to the Adjudicating Authority to consider the details of reversal submitted by the Appellant and if any details are lacking, to specifically ask for the same which shall be furnished by the Appellant without any delay. Thereafter, on verification of Cenvat credit reversal as per the formula, benefit of Abatement shall be extended to the Appellant.

rchgiri

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Can service tax in respect of same transaction cannot be demanded again for payment under different category?

No. Service tax in respect of same transaction cannot be demanded again for payment under different category.

Please read the following case law for details.

Coca Cola India Pvt. Ltd. Vs. Commissioner Of Service Tax, Delhi III [2014-TIOL-2198-CESTAT-DEL]

Coca Cola India Pvt. Ltd.(the Appellant) entered into an Agreement with KPH Dream Cricket Pvt. Ltd. (KPH) for sponsoring the cricket team Kings XI Punjab. On the said contractual consideration, a Service tax of Rs. 37,08,000/- was collected by KPH from the Appellant, which was deposited with the Central Government under the category of Business Auxiliary Service (BAS).

Later on, the Revenue entertained a view that the Agreement between the Appellant and KPH was falling under the category of ‘Sponsorship Service’ and, as such, the tax liability falls on the Appellant under reverse charge mechanism.

Notwithstanding that Service tax already stood paid by KPH, proceedings were initiated against the Appellant for recovery of the said tax amount of Rs.37,08,000/- which was further affirmed by the Adjudicating Authority, confirming the demand with interest and penalty.

Being aggrieved, the Appellant preferred an appeal before the Hon’ble Commissioner (Appeals). The Hon’ble Commissioner (Appeals) also found the decision of the Adjudicating Authority proper &legal and accordingly dismissed the appeal filed by the Appellant.It was held by the Commissioner (Appeals) that such liability would fall upon the Appellant and sponsoring of a cricket team is not outside the scope of sponsorship service.Thereafter, the Appellant filed an appeal before the Hon’ble CESTAT, Delhi.

The Hon’ble CESTAT, Delhi relying upon the decision in the case of Hero Motocorp Limited Vs. CST, Delhi [2013-TIOL-873-CESTAT-DEL] held that the demand of Service tax in respect of the same transaction on which Service tax had already been deposited, on the ground that the deposit of Service tax was under a different category whereas a different category of service has been provided cannot be held to be justifiable.

Accordingly, the order of the Adjudicating Authority was set aside and the appeal was allowed with consequential relief.

rchgiri

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Dear CS Aspirants,

Guidance, Study Notes & Model Mock Tests for Tax Paper of CS Executive/Professional Exam June 2015.

Those who require Guideline, Study Notes & want to appear Model Mock Tests for Tax Paper of CS Executive/Professional Exam June 2015, may contact me.

j.padiya

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Thank you so much sir.

Hey friends its really quality notes and worth having...!
Go for it..

Happy Learning

rchgiri

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Dear Ms. Janki,

It is my pleasure to help and guide students like you.

rchgiri

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Circular No. 12/2014 -Customs Dated 17th November, 2014

Subject: Valuation/Assessment Practice in respect of export of Iron Ore

The Board has received references relating to the valuation of iron ore entered for export. The matter has been examined.

2. It has been reported that Iron ore, by its nature, undergoes a change in moisture and Fe content with the passage of time including during transport. The iron ore is tested both at the load port and at the port of discharge for ascertaining its quality and price. The commercial contracts governing its sale, often, contain provisions to adjust the amount payable depending upon the test report at the port of discharge. It is also reported that exporters present provisional invoices at the time of export since prices are to be finally determined after tests at discharge port.

3. The matter has been examined. In order to bring in uniformity, transparency and consistency in assessment of export of Iron Ore, fines and pellets, it has been decided that the following procedure shall be adopted by all Custom Houses:

(a) When a consignment is entered for export of iron ore, fines or pellets, samples shall be drawn in the presence of Customs by following the procedure laid down by the Bureau of Indian Standards for drawal of samples of Iron ore, fines and Iron ore pellets and sent for testing.
(b) The declared value of the export goods, shall be scrutinized in relation to the provisional invoice, contract, weight, price, etc., by the proper officer in terms of the provisions of Section 14 and the Customs Valuation (Determination of Value of Export Goods) Rules, 2007 and the Shipping Bill may be provisionally assessed. In case of the transaction being declared or found to be between related parties, procedures governing related party transactions shall be followed.

(c) Upon receipt of the load port test report and discharge port test report the proper officer shall compare the two reports with the terms set out in the contract. Where variations in the two test reports are within tolerance limits provided in the contract and do not impinge upon the declared price, the proper officer may proceed to finalize the provisionally assessed shipping bill in terms of the provisions of Section 14 and the Customs Valuation (Determination of Value of Export Goods) Rules, 2007.

(d) In cases where the load port test report and discharge port test report show a variation, so as to impinge upon the price, the proper officer shall proceed to re-determine the value of the goods in terms of Customs Valuation (Determination of Value of Export Goods) Rules, 2007. In no case, shall a price based upon the average of the two test reports be accepted for the purposes of arriving at the assessable value.

(e) In cases where the transaction is being declared or is found to be between related Parties, while the above procedures will continue to be followed, the finalization of assessments shall be done by following instructions governing the investigation of such cases by SVBs.

(f) The Custom Houses will ensure that the shipping bills are finally assessed within 30 days of the receipt of all documents. However, this time limit shall not apply to cases under investigation for related party transactions, which shall be governed by the circular relating to investigations by SVBs.

4. The Custom Houses shall monitor receipt of Bank Realisation Certificates for the purposes of comparison with the final invoices submitted by the exporter to satisfy the accuracy of assessed values.

5. Difficulties, if any, faced in the implementation of this circular, may be immediately brought to the notice of the Board.

6. Wide publicity to this Circular may be given by way of issuance of public notice.

F. No. 465/8/2013 – Cus V

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Circular No. 13/ 2014-Customs New Delhi, dated 18th November, 2014

Subject: All Industry Rates of Duty Drawback effective 22.11.2014 – Reg.

The Ministry has notified revised All Industry Rates (AIR) of Duty Drawback vide Notification No. 110/2014- Customs (N.T.), dated 17.11.2014. This notification comes into force on 22.11.2014.

2. Some of the broad aspects, from amongst the changes notified with respect to AIR of duty drawback and entries in the Schedule, are the following –

(a) As before, the drawback rates have been determined on the basis of certain broad average parameters including, inter alia, prevailing prices of inputs, input output norms, share of imports in input consumption, the applied rates of central excise and customs duties, the factoring of incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods, factoring incidence of duty on HSD/furnace oil, value of export goods, etc.

(b) Many items already covered under the Drawback Schedule prior to incorporation of erstwhile DEPB items, shall see a change in the AIR. In continuation of a transitory arrangement, for the items incorporated in the drawback schedule from the erstwhile DEPB Scheme there is a reduction in the AIR.

(c) Drawback caps continue on most tariff items with AIRs above 2%. The caps have been revised. At rates below 2% there is cap with respect to guar gum and frozen marine products.
(d) Further, in the case of project exports, where export product is accompanied with ARE-1 and for which no drawback cap has been prescribed in the Schedule, the Note/Condition (6) in the AIR notification now specifies a cap. It has been provided that such cases shall be declared by the exporter and the maximum amount of drawback that can be availed under the Schedule shall not exceed the amount calculated by applying the ad valorem rate of drawback to one and half times the ARE-1 value. In such cases, before Let Export Order is made, the relevant ARE-1 value
(s) are to be recorded in the “Departmental Comments” field which is to be also taken into account at the subsequent stage of drawback processing.

(e) Several entries have been rationalized by merging them at respective four digit level or under the respective residuary sub-heading ‘others’. Tariff item numbers have seen a change in many cases.

(f) The hitherto residuary rate of 1% (composite) and 0.3% (Customs) is changed to 1% (composite) and 0.15% (Customs). Further existing residuary rates of 1.3% and 1.7%, have been increased to 1.4% and 1.9%, respectively, with some exceptions.

(g) In chapter 57, the six digit tariff item (TI) under 5705 have been changed to refer to the composition of fibre as is under other four digit tariff items. Further, all caps have been made on the basis of per sq.mtr instead of earlier per kg (for some items) in the chapter.

(h) Several entries have been modified /amended to address issues brought to Ministry’s notice. Laptop bags and shopping bags have been specifically mentioned at six digit level below TI 4202. ‘Cami’ has been included with women’s/girl’s tops in TI 611402 and 621102; ‘three fourth pants’ along with ‘capris’ included in TI 610302, 610402, 620302, and 620402; and ‘leggings” included in TI 610402. An entry for ‘other jackets’ below TI 6114 and 6211 has been made. Mountain terrain bicycles have been specified against TI 871203. Cricket bats made from English willow (TI 9506) have been distinguished from other cricket bats.

(i) Separate entries have been created distinguishing certain export products such as cotton yarn of less than 50 counts or 50 or more counts (Chapter 52); core spun cotton yarn containing 3% or more of lycra /spandex/ elastane (TI 5205); flame retardant fabric treated with organic phosphorous compound (TI 5209); knotted/tufted woolen /fine animal hair carpets containing 15% or more by weight of silk (TI 5701, 5703); embroidery in the piece, in strips or in motifs, of flax/linen (TI 5810); cotton blankets (TI 6301); leather safety footwear with protective toe caps of composite/synthetic material (TI 6403); glass artware/handicraft made out of two or more ply glass with or without metallic fusion (TI 7020); delivery tricycles/cycle rickshaws (TI 8712); specified electrical apparatus, of aluminium (TI 8536) and parts of aluminium for specified electrical apparatus (TI 8538).

(j) AIR has been provided to calcined kaolin packed in HDPE/ LDPE/ PP bags (TI 2507), umbrellas, etc. of Chapter 66 and artificial flowers, etc. (TI 6702). Composite rate of 7% has been provided for all agricultural machinery etc. of TI 8432.

(k) AIR has been fixed as ₹ 219.9/gm for gold jewellery /parts and ₹ 3112.5/kg for silver jewellery /articles. Guar Gum has been provided ad valorem rate (composite) of 0.75% with a cap of ₹ 1270 per MT.

(l) Note/Condition (20) in the AIR Notification specifies that “shirts” shall include “shirts with hoods”. Similarly, Note (25) specifies that “vehicles” of Chapter 87 shall comprise completely built unit or completely knocked down (CKD) unit or semi knocked down (SKD) unit.

3. It has been made explicit that where the claim for duty drawback is filed with reference to the rate in the AIR Schedule, an application for fixation of Brand Rate under Rule 7 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 shall not be admissible. For this, para 2 of the Notification and amendment to the said Rule vide Notification No.109/2014-Customs (N.T.) dated 17.11.2014 may be referred.

4. In this context, it is also clarified that the exporters opting for claim of brand rate shall declare the figure “9801” as an identifier in the shipping bill under the Drawback Details on basis of which they may subsequently apply to Central Excise for determination of brand rate. The Commissioners of Central Excise shall facilitate such exporters in terms of paras 5A-5C of Instruction No. 603/01/2011-DBK dated 11.10.2013 with, interalia, the grant of provisional brand letters.

5. The Commissioners are expected to ensure that the due diligence is exercised to prevent any misuse. As before, it may be ensured that exporters do not avail of the refund of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods through any other mechanism while claiming AIR. Moreover, there is need for continued scrutiny for preventing any excess drawback arising from mismatch of declarations made in the Item Details and the Drawback Details in a shipping bill. Also, in case of claim of the composite (higher) rate of AIR, the processing at the time of export should specifically ensure availability of ‘Non-availment of Cenvat certificate’ etc at that stage itself.

6. It is requested to download the notifications from the Board’s website ([You must be registered and logged in to see this link.] and carefully peruse them and thereby take note of all the specific changes notified.

7. With trade facilitation in view, tenure of the Drawback Committee constituted by Central Government has been temporarily extended. Therefore, if any inconsistency or error is noticed or difficulty faced, the Board may be apprised so that the appropriate action can be initiated.

8. Suitable public notice and standing order may also be issued for guidance of the trade and officers.

F. No. 609/118/2014-DBK
(Rajiv Talwar)
Joint Secretary to the Government of India

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Notification No. 110/2014 – CUSTOMS (N.T.) New Delhi, the 17th November, 2014 G.S.R. 814 (E) - In exercise of the powers conferred by sub-section (2) of section 75 of the Customs Act, 1962 (52 of 1962), sub-section (2) of section 37 of the Central Excise Act, 1944 (1 of 1944), and section 93A and sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), read with rules 3 and 4 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 (hereinafter referred to as the said rules) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.98/2013-CUSTOMS (N.T.), dated the 14th September, 2013, published vide number G.S.R. 632 (E), dated the 14th September, 2013, except as respects things done or omitted to be done before such supersession, the Central Government hereby determines the rates of drawback as specified in the Schedule annexed hereto (hereinafter referred to as the said Schedule) subject to the following notes and conditions, namely:-

Notes and conditions:

(1) The tariff items and descriptions of goods in the said Schedule are aligned with the tariff items and descriptions of goods in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) at the four-digit level only. The descriptions of goods given at the six digit or eight digit or modified six or eight digits in the said Schedule are in several cases not aligned with the descriptions of goods given in the said First Schedule to the Customs Tariff Act, 1975.

(2) The General Rules for the Interpretation of the First Schedule to the said Customs Tariff Act, 1975, shall mutatis mutandis apply for classifying the export goods listed in the said Schedule.

(3) Notwithstanding anything contained in the said Schedule, -
(i) all artware or handicraft items shall be classified under the heading of artware or handicraft (of constituent material) as mentioned in the relevant Chapters;

(ii) any identifiable ready to use machined part or component predominantly made of iron, steel or aluminium, made through casting or forging process, and not specifically mentioned at six digit level or more in Chapter 84 or 85 or 87, may be classified under the relevant tariff item (depending upon material composition and making process) under heading 8487 or 8548 or 8708, as the case may be, irrespective of classification of such part or component at four digit level in Chapter 84 or 85 or 87 of the said Schedule;

(iii) the sports gloves mentioned below heading 4203 or 6116 or 6216 shall be classified in that heading and all other sports gloves shall be classified under heading 9506.

(4) The figures shown in columns (4) and (6) in the said Schedule refer to the rate of drawback expressed as a percentage of the free on board value or the rate per unit quantity of the export goods, as the case may be.

(5) The figures shown in columns (5) and (7) in the said Schedule refer to the maximum amount of drawback that can be availed of per unit specified in column (3).

(6) An export product accompanied with application for removal of excisable goods for export (ARE-1) and forming part of project export (including turnkey export or supplies) for which no figure is shown in column (5) and (7) in the said Schedule, shall be so declared by the exporter and the maximum amount of drawback that can be availed under the said Schedule shall not exceed the amount calculated by applying ad-valorem rate of drawback shown in column (4) or (6) to one and half times the ARE- 1 value.

(7) The figures shown in the said Schedule under the drawback rate and drawback cap appearing below the column heading “Drawback when Cenvat facility has not been availed” refer to the total drawback (Customs, Central Excise and Service Tax component put together) allowable and those appearing under the column heading “Drawback when Cenvat facility has been availed” refer to the drawback allowable under the Customs component. The difference between the two columns refers to the Central Excise and Service Tax component of drawback. If the rate indicated is the same in both the columns, it shall mean that the same pertains to only Customs component and is available irrespective of whether the exporter has availed of Cenvat facility or not.

(Cool The rates of drawback specified against the various tariff items in the said Schedule in specific terms or on ad valorem basis, unless otherwise specifically provided, are inclusive of drawback for packing materials used, if any.

(9) Drawback at the rates specified in the said Schedule shall be applicable only if the procedural requirements for claiming drawback as specified in rules 11, 12 and 13 of the said rules, unless otherwise relaxed by the competent authority, are satisfied.

(10) The rates of drawback specified in the said Schedule shall not be applicable to export of a commodity or product if such commodity or product is - (a) manufactured partly or wholly in a warehouse under section 65 of the Customs Act, 1962 (52 of 1962); (b) manufactured or exported in discharge of export obligation against an Advance Licence or Advance Authorisation or Duty Free Import Authorisation issued under the Duty Exemption Scheme of the relevant Export and Import Policy or the Foreign Trade Policy: Provided that where exports are made against Advance Licences issued on or after the 1st April, 1997, in discharge of export obligations in terms of notification No. 31/97 – Customs, dated the 1st April, 1997, or against Duty Free Replenishment Certificate Licence issued in terms of notification No. 48/2000-Customs, dated the 25th April, 2000, or against Duty Free Replenishment Certificate Licence issued in terms of notification No. 46/2002-Customs, dated the 22nd April, 2002, or against Duty Free Replenishment Certificate Licence issued in terms of notification No. 90/2004-Customs, dated the 10th September, 2004, drawback at the rate equivalent to Central Excise allocation of rate of drawback specified in the said Schedule shall be admissible subject to the conditions specified therein; (c) manufactured or exported by a unit licensed as hundred per cent. Export Oriented Unit in terms of the provisions of the relevant Export and Import Policy or the Foreign Trade Policy; (d) manufactured or exported by any of the units situated in Free Trade Zones or Export Processing Zones or Special Economic Zones; (e) manufactured or exported availing the benefit of the notification No. 32/1997–Customs, dated 01st April, 1997.

(11) The rates and caps of drawback specified in columns (4) and (5) of the said schedule shall not be applicable to export of a commodity or product if such commodity or product is – (a) manufactured or exported by availing the rebate of duty paid on materials used in the manufacture or processing of such commodity or product in terms of rule 18 of the Central Excise Rules, 2002; (b) manufactured or exported in terms of sub-rule (2) of rule 19 of the Central Excise Rules, 2002.

(12) Wherever specific rates have been provided against tariff item in the said Schedule, the drawback shall be payable only if the amount is one per cent. or more of free on board value, except where the amount of drawback per shipment exceeds five hundred rupees.

(13) The expression “when Cenvat facility has not been availed”, used in the said Schedule, shall mean that the exporter shall satisfy the following conditions, namely:- (a) the exporter shall declare, and if necessary, establish to the satisfaction of the Assistant Commissioner of Customs or Assistant Commissioner of Central Excise or Deputy Commissioner of Customs or Deputy Commissioner of Central Excise, as the case may be, that no Cenvat facility has been availed for any of the inputs or input services used in the manufacture of the export product; (b) if the goods are exported under bond or claim for rebate of duty of central excise, a certificate from the Superintendent of Customs or Superintendent of Central Excise in-charge of the factory of production, to the effect that no Cenvat facility has been availed for any of the inputs or input services used in the manufacture of the export product, is produced: Provided that the certificate regarding non-availment of Cenvat facility shall not be required in the case of exports of handloom products or handicrafts (including handicrafts of brass artware) or finished leather and other export products which are unconditionally exempt from the duty of central excise.

(14) Whenever a composite article is exported for which any specific rate has not been provided in the said Schedule, the rates of drawback applicable to various constituent materials can be extended to the composite article according to net content of such materials on the basis of a self-declaration to be furnished by the exporter to this effect and in case of doubt or where there is any information contrary to the declarations, the proper officer of customs shall cause a verification of such declarations.

(15) The term ‘article of leather’ in Chapter 42 of the said Schedule shall mean any article wherein 60% or more of the outer visible surface area (excluding shoulder straps or handles or fur skin trimming, if any) is of leather notwithstanding that such article is made of leather and any other material.

(16) The term “dyed”, wherever used in the said Schedule in relation to textile materials, shall include yarn or piece dyed or predominantly printed or coloured in the body.

(17) The term “dyed” in relation to fabrics and yarn of cotton, shall include “bleached or mercerised or printed or mélange’’.

(18) The term “dyed” in relation to textile materials in Chapters 54 and 55 shall include “printed or bleached”.

(19) In respect of the tariff items in Chapters 60, 61, 62 and 63 of the said Schedule, the blend containing cotton and man-made fibre shall mean that content of man-made fibre in it shall be more than 15% but less than 85% by weight and the blend containing wool and man-made fibre shall mean that content of man-made fibre in it shall be more than 15% but less than 85% by weight. The garment or made-up of cotton or wool or man-made fibre or silk shall mean that the content in it of the respective fibre is 85% or more by weight.

(20) The term “shirts” in relation to Chapters 61 and 62 of the said Schedule shall include “shirts with hood”.

(21) In respect of the tariff items appearing in Chapter 64 of the said Schedule, leather shoes, boots or half boots for adult shall comprise the following sizes, namely: - (a) French point or Paris point or Continental Size above 33; (b) English or UK adult size 1 and above; and (c) American or USA adult size 1 and above.

(22) In respect of the tariff items appearing in Chapter 64 of the said Schedule, leather shoes, boots or half boots for children shall comprise the following sizes, namely: - (a) French point or Paris point or Continental Size upto 33; (b) English or UK children size upto 13; and (c) American or USA children size upto 13.

(23) The drawback rates specified in the said Schedule against tariff items 711301, 711302 and 711401 shall apply only to goods exported by airfreight, post parcel or authorised courier through the Custom Houses as specified in para 4A.12 of the Hand Book of Procedures (Vol. I), 2009-2014 published vide Public Notice No.1 (RE-2012) / 2009-2014, dated the 5th June, 2012 of the Government of India in the Ministry of Commerce and Industry, after examination by the Customs Appraiser or Superintendent to ascertain the quality of gold or silver and the quantity of net content of gold or silver in the gold jewellery or silver jewellery or silver articles. The free on board value of any consignment through authorised courier shall not exceed rupees twenty lakhs.

(24) The drawback rates specified in the said Schedule against tariff items 711301, 711302 and 711401 shall not be applicable to goods manufactured or exported in discharge of export obligation against any Scheme of the relevant Export and Import Policy or the Foreign Trade Policy of the Government of India which provides for duty free import or replenishment or procurement from local sources of gold or silver.

(25) “Vehicles” of Chapter 87 of the said Schedule shall comprise completely built unit or completely knocked down (CKD) unit or semi knocked down (SKD) unit.

2. All claims for duty drawback at the rates of drawback notified herein shall be filed with reference to the tariff items and descriptions of goods shown in columns (1) and (2) of the said Schedule respectively. Where, in respect of the export product, the rate of drawback specified in the said Schedule is Nil or is not applicable, the rate of drawback may be fixed, on an application by an individual manufacturer or exporter in accordance with the said rules. Where the claim for duty drawback is filed with reference to tariff item of the said Schedule and it is for the rate of drawback specified herein, an application, as referred under sub-rule (1) of rule
7 of the said rules shall not be admissible.

3. This notification shall come into force on the 22nd day of November, 2014. -

rchgiri

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Notification No. 109 /2014- Customs (N.T) New Delhi, the 17th November, 2014 G.S.R. 813 (E). – In exercise of the powers conferred by section 75 of the Customs Act, 1962 (52 of 1962), section 37 of the Central Excise Act, 1994 (1 of 1944) and section 93A read with section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, namely:-

1. (1) These rules may be called the Customs, Central Excise Duties and Service Tax Drawback (Amendment) Rules, 2014.

(2) They shall come into force on 22nd November, 2014.

2. In the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, in rule 7, in sub-rule (1), for the words “he may within three months”, the words “he may, except where a claim for drawback under rule

3 or rule 4 has been made, within three months” shall be substituted.

[F. No. 609/107/2014-DBK] (Sanjay Kumar) Under Secretary to the Government of India

Note.- The principal rules were published vide number G.S.R.441 (E), dated the 26th May, 1995 and last amended by notification number 97/2013-Custom (N.T.), dated the 14th September, 2013 vide number G.S.R 631 (E), dated the 14th September, 2013.

39 Marginal relief and its meaning with Example on Wed 19 Nov 2014 - 16:22

rchgiri

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Dear CS Aspirants,

Today I received one phone call from CSoC members regarding the meaning of Marginal relief.

Surcharge on income-tax as per Finance Act 2013

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or in section 111A or section 112, shall, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, having a total income exceeding one crore rupees, be increased by a surcharge for the purpose of the Union calculated at the rate of ten per cent of such income-tax:

Provided that in the case of persons mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Marginal relief is that the total amount payable as income-tax plus surcharge shall not exceed the total amount payable as income-tax on a total income of Rs. 1 Crore by more than the amount of income that exceeds Rs. 1 Crore.

In other words, the additional amount of income-tax payable together with surcharge on the excess of income over 1 Crore Rupees should not be more than the amount of income exceeding 1 Crore Rupees

For Example,

The amount of income-tax payable on Rs.1 crore will come to Rs.28,30,000 +ES @ 3%.

If a person earns say Rs.1,00,000 more, he will come under the surcharge net and his amount of income-tax payable on Rs.1.01 crore will come to around Rs.31,46,000 +ES @ 3%), which is higher by Rs.3,16,000.

As per the marginal relief, his additional tax liability will be limited to Rs.1,00,000 since his income in excess of Rs.1 crore is Rs.1,00,000.
Accordingly, he will get a marginal relief of Rs.2,16,000 (=Rs.3,16,000 - Rs.1,00,000)

Hence, the amount of income-tax payable on Rs.1.01 crore will come to Rs.29,30,000 (=Rs.31,46,000 - Rs.2,16,000) + EC @ 3%

Hope, it is clearly understood to all.

Please share your views on the Marginal relief and its meaning.



Last edited by rchgiri on Sun 23 Nov 2014 - 20:59; edited 1 time in total (Reason for editing : Correction)

j.padiya

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wow... its the easiest to understand by above explanation.
Thank you so much sir for clearing doubt..

rchgiri

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Export of Goods / Software / Services Period of Realisation and Repatriation of Export Proceeds

RBI/2014-15/306
A.P. (DIR Series) Circular No. 37

November 20, 2014

To,

All Category - I Authorised Dealer Banks

Madam / Sir,

Export of Goods / Software / Services – Period of Realisation and Repatriation
of Export Proceeds – For exporters including Units in SEZs, Status Holder
Exporters, EOUs, Units in EHTPs, STPs and BTPs

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 52 dated November 20, 2012 extending the enhanced period for realization and repatriation to India, of the amount representing the full value of exports, from six months to twelve months from the date of export. This relaxation was available up to March 31, 2013. Thereafter, in terms of A.P. (DIR Series) Circular No. 105 dated May 20, 2013, this period was brought down from twelve months to nine months from the date of export, valid till September 30, 2013. Further, in terms of A.P. (DIR Series) Circular No. 35 dated April 01, 2002, A.P. (DIR Series) Circular No. 25 dated November 01, 2004 and A.P. (DIR Series) Circular No. 108 dated June 11, 2013, the Units located in SEZs, Status Holder Exporters, EOUs, Units in EHTPs, STPs & BTPs shall realize and repatriate full value of goods/software/services, to India within a period of twelve months from the date of export.

2. The issue has since been reviewed and it has been decided, in consultation with the Government of India, that henceforth the period of realization and repatriation of export proceeds shall be nine months from the date of export for all exporters including Units in SEZs, Status Holder Exporters, EOUs, Units in EHTPs, STPs & BTPs until further notice.

3. The provisions in regard to period of realization and repatriation to India of the full exports made to warehouses established outside India remain unchanged.

4. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

5. The directions contained in this circular have been issued under sections 10 (4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(C. D. Srinivasan)
Chief General Manager

42 Question of the Day on Sun 23 Nov 2014 - 21:03

rchgiri

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Question:
Compute the tax liability of an Individual for the assessment year 2014-15 from the following data.

Net agricultural income Rs. 1,20,000
Total non-agricultural income 1,90,000

Answer:
Assessment Year: 2014-15
Previous Year: 2013-14

Tax Liability is Nil.

43 Question of the Day on Thu 27 Nov 2014 - 20:53

rchgiri

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Question:
Is the best judgement assessment an ex-parte order?

Answer:

No, the best judgement assessment is not an ex-parte order.

However, it will be akin to an ex parte order, when assessee fails to produce records and Assessing Officer has to proceed otherwise.


Best Judgment Assessment under the Income Tax Act, 1961

Sec 144 (1) If any person—

(a) fails to make the return required under section 139(1) and has not made a return or a revised return under section 139(4) or section 139(5),

or

(b) fails to comply with all the terms of a notice issued under section 142(1) or fails to comply with a direction issued under section 142(2A),

or

(c) having made a return, fails to comply with all the terms of a notice issued under section 143(2),

the Assessing Officer, after taking into account all relevant material which the Assessing Officer has gathered, shall, after giving the assessee an opportunity of being heard, make the assessment of the total income or loss to the best of his judgement and determine the sum payable by the assessee on the basis of such assessment:

Provided that such opportunity shall be given by the Assessing Officer by serving a notice calling upon the assessee to show cause, on a date and time to be specified in the notice, why the assessment should not be completed to the best of his judgement:

Provided further that it shall not be necessary to give such opportunity in a case where a notice under sub-section (1) of section 142 has been issued prior to the making of an assessment under this section.

(2) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.

In other words, an assessee gets an opportunity of being heard before the best judgement assessment is made. A notice by means of a show cause is issued to the assessee before such assessment is made.

Options available to an assessee after receiving best judgement assessment:

Upon receiving best judgement assessment, an assessee can file an appeal under Section 246A of the Act or can file a revision under Section 246 of the Act before the Income Tax Commissioner.

44 CS EP NS P4 Tax Laws & Practice > MCQ on Fri 12 Dec 2014 - 22:26

rchgiri

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FY 2013-14 & AY 2014-15

Choose the most appropriate alternative:
(i) Tax will be collected at source on sale of any coin or any other article weighing ten grams or less if payment in excess of -
(A) Rs. 2,00,000 received in cash (B) Rs.1,00,000 received in cash (C) Rs. 3,00,000 received in cash (D) `2,50,000 received in cash

(ii) Deduction for donation to the National Children’s Fund has been raised from —
(A) 50% to 100%;
(B) 100% to 150%;
(C) Nil to 50%;
(D) 25% to 50%

(iii) Any specified income arising, from any international sporting event held in India, to the person or persons notified by the Central Government in the Official Gazatte, shall be exempt if such international sporting event —
(A) is approved by the international body regulating the international sporting event;
(B) has participation by more than two countries;
(C) is notified by more than two countries;
(D) Any one of the above

(iv) Allowances which are fully taxable is —
(A) Education Allowance;
(B) House Rent Allowance;
(C) Medical Allowance;
(D) Transport Allowance

(v) Amount of exemption available under Voluntarily Retirement Scheme is –
(A) Compensation received or Rs.3,00,000, whichever is less;
(B) Compensation received or Rs. 5,00,000, whichever is less;
(C) Upto Rs. 3,00,000;
(D) Upto Rs. 5,00,000

(vi) Besides the normal depreciation, additional depreciation shall be allowed —
(A) @10%;
(B) @15%;
(C) @20%;
(D) @25%

(vii) Maximum amount of deduction available under House property for loan borrowed for repairs or renewal is:
(A) Rs. 1,50,000;
(B) 1/3 of the interest amount;
(C) Rs. 30,000;
(D) Rs. 2,00,000

(viii) Where annual value of one self-occupied house is nil, the assessee will not be entitle to claim:
(A) Standard deduction u/s 24(a);
(B) Interest on Loan u/s 24(b);
(C) Municipality tax paid by owner;
(D) None of the above

(ix) Brought forward long-term capital loss can be carried forward for :
(A) 4 assessment years;
(B) 6 assessment years;
(C) indefinitely;
(D) 8 assessment years

(x) Wealth tax is payable on amount by which ‘net wealth’ exceeds by Rs.30,00,000 at the rate of —
(A) 10%;
(B) 5%;
(C) 2%;
(D) 1%

(xi) The deduction under section 80C is allowed to —
(A) An Individual;
(B) A Hindu Undivided Family;
(C) An Individual or a Hindu Undivided Family;
(D) Any assessee

(xii) The provisions of AMT shall apply to a person who has claimed any deduction under —
(A) Under section 80-IA to 80RRB other than section 80P;
(B) Section 10AA;
(C) Under section 80-IA to 80RRB other than section 80P or Section 10AA;
(D) All the above case

(xiii) The due date of return filing in case of partner of a partnership firm whose accounts is audited under section 44AB of the Income Tax Act, 1961is:
(A) 30th June;
(B) 31st July;
(C) 30th September;
(D) 30th November

Please mail me your answer for knowing the correct answer.

Wish you all the best for ensuing examination.

rchgiri

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Dear CSoC Members,

While guiding the CS students, I use the study materials of CS, CA & CMA courses.

I provide the following

(1) CS Guideline answers

(2) All updates related to CS/CA/CMA courses

(3) Subject-wise Suggested Answers, Practice Manual, Power Point Presentation, Podcast, elearning, etc of CA & CMA courses RELEVANT to CS Executive and professional courses

to the CS students.

Additionally, you can ask any question from CS/CA/CMA courses through email and over phone for clearing the concept and proper answers.

Guiding Fee is Rs. 300/- per paper.

Interested CSoC members may contact me for the same.

Have a nice reading.

46 Direct Tax Case Laws on Fri 16 Jan 2015 - 22:37

rchgiri

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Manpreet Singh Vs. ITO, I.T.A. No.: 3976/Del/13, Date of decision: 06.01.2015, ITAT - New Delhi

Whether the rent received from the installation of mobile antennae which has been erected on the top at the building would be taxable under the head “other sources” or “house property”. Held, Income from house property.

In brief, the assessee received rent for installation of mobile antennas at the terrace and claimed a deduction @ 30% u/s 24(a). Whereas, the AO rejects the claim and treated the income as income from other sources. The CIT(A) has also taken the same view on the basis of decision pronounced by Hon’ble High Court of Calcutta in the case of Mukherjee State Pvt. Ltd. vs. CIT (2000) 244 ITR 1 (Cal) where it was held that if the rent is only for fixing the hoarding, it cannot be treated as part of the building, nor could it be treated as land appurtenant thereto, therefore such income will have to be separately considered as income from other sources and held in the present case that as the rent was only for providing space for installation of the mobile antennae on the top of building, and such income is taxable under the head income from other sources.

The hon’ble ITAT held that once the fact is established that “rent was only for providing space for installation of mobile antenna”, then it is irrelevant to consider whether antenna will be a part of a building or land appurtenant thereto as the true test is whether such a space, as has been rented out, is part of the building or land appurtenant thereto. The rent is not for the antenna but for the space. The space which has been rented out and, therefore, as long as the space, which has been rented out, is part of the building, the rent is required to be treated as “income from house property”.


ITO Vs. M/s. Modipon Ltd., I.T.A. No.: 2049/Del/2009, and M/s. Modipon Ltd. Vs. ITO, I.T.A. No. 2171/Del/2009, Date of Decision: 09.01.2015, ITAT - New Delhi

Whether the circle rate applicable on the date of transfer of a plot land, where such rate stood upwardly revised subsequent to the date the agreement to sell the plot of land in question had been entered into, was applicable for the purpose of capital gains ? Held, No.

In brief, the assessee had entered into an agreement to sell a plot of land for a consideration of Rs.2,62,08,000/-, when the circle rate was Rs.13,000/- per sq. meter. However, the said rate stood revised to Rs.20,000/- per sq. meter as on the date of execution of sale deed. The assessee computed the long term capital gains accruing to him on the basis of the consideration agreed to as on the date of the agreement. The Ld. AO computed the LTCG on the basis of value of land as per revised circle rate and brought the addition in income to tax. On appeal against the same, the Ld. CIT (A) held that the circle rate as on the date of transfer of property was to be adopted, and thus the position taken by the AO was upheld.

The Hon’ble ITAT held in favour of assessee noting, inter alia, that ‘it was not the case of the revenue that the buyer has given more than the consideration that has been accepted by the parties where they executive the agreement to sale’, and that by the executing the sale deed ‘the assessee has only completed the contractual obligation imposed upon it by virtue of the sale agreement’.

Case Referred: Sanjeev lal & Anr. Vs. CIT & Anr. (2014) 365 ITR 389(SC)

rchgiri

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Please find the ICSI's Study Material of Advanced Tax Laws and Practice based on Finance Act, 2014 from the following link for CS Professional Examination June 2015


[You must be registered and logged in to see this link.]

Secondly, this study material has been updated upto 31st August, 2014.

Hence, you have to read further amendments from 1st September 2014 to 31st December 2014 for CS Professional Examination June 2015.

Have a nice reading.



Last edited by rchgiri on Sat 24 Jan 2015 - 14:50; edited 1 time in total

rchgiri

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Please find the ICSI's Study Material of Tax Laws and Practice based on Finance Act, 2014 for CS Executive Examination June 2015

from the following link

[You must be registered and logged in to see this link.]

Secondly, this study material has been updated upto 31st August, 2014.


Hence, you have to read further amendments from 1st September 2014 to 31st December 2014 for CS Executive Examination June 2015.

Have a nice reading.

rchgiri

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[You must be registered and logged in to see this link.]

Attention Students
of
Applicability of the Finance Act, 2014 for June 2015 Examinations

Students appearing in the following Papers in June 2015 Examinations

Executive Programme

(i) Tax Laws and Practice (Module-1, Paper-4, New Syllabus)

Professional Programme

(i) Advanced Tax Laws and Practice (Module-III, Paper-6, Old Syllabus)

(ii) Advanced Tax Laws and Practice (Module-3, Paper-7, New Syllabus)

May note that :

1. Finance Act, 2014 is applicable for June 2015 Examination.

2. Applicable Assessment year for June 2015 Examination is 2015-16 (Previous Year 2014- 15).

3. Students are also required to update themselves about all the relevant Notifications, Circulars, Clarifications, etc. issued by the CBDT, CBEC & Central Government, on or before six months prior to the date of the respective examinations, i.e. upto December, 2014

4. Students can access the Study Material of Tax Laws and Practice (New Syllabus) & Advanced Tax Laws and Practice (New Syllabus) as per Finance Act, 2014 on ICSI Website under the head ‘Academic Corner’ at the link
[You must be registered and logged in to see this link.]

5. For the students having old edition of study material, supplements covering major Amendments, Notifications, Circulars etc. made / issued under Finance Act, 2014 will be uploaded under the ‘Academic Corner’ shortly.

March 04, 2015
New Delhi

Director
Academics, Professional Development & Perspective Planning

rchgiri

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(1) Please find the tax updates for CS June 2015 Exam

[You must be registered and logged in to see this link.]

(2) Please also find the Academic updates for CS June 2015 Exam

[You must be registered and logged in to see this link.]

Wish you all the best for next CS Exam.

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