• ISSUE - VIII • VOLUME - VIII • July - 2010

UPDATEwww.bizsolindia.com

We believe in C-2

This Month 4 U C-2

Editorial 1

What's New 5

- Customs 5

- Central Excise 6

- Service Tax 7

- Foreign Trade Policy 7

- FEMA / RBI 8

- Income Tax 8

-- Ashok B. Nawal

Beyond the Obvious 17

Breaking News 20

Did you miss this! 21

Lighter Moments 22

GST Corner - 2Making You GST Ready – Exclusively by Bizsol

SEZs- Puzzle in the 9hands of Government

Amended Draft of Direct Tax Code 12

-- A. B. Nawal & Mrs. Manisha Pawshe.

IN THIS ISSUE

• For important due dates please turn over

July - 2010

UPDATEW E B E L I E V E I N

T H I S M O N T H 4 U

Payments Due Dates

Central Sales Tax –June 2010 Return-cum-Challan 21.07.2010

VAT – June 2010 Return-cum-Challan 21.07.2010

ESI Contribution 21.07.2010

Profession Tax 30.07.2010

Excise Duties-July 2010 05.08.2010

Excise Duties- July 2010 By E-Payment 06.08.2010

Service Tax – July 2010 05.08.2010

Service Tax - July 2010–By E Payment 06.08.2010

TDS/TCS- July 2010 07.08.2010

Provident Fund- July 2010 15.08.2010

Returns

ER-1 and ER-2 Monthly return for July 2010 10.08.2010

ER-6- July 2010 10.08.2010

QPR for EOUs 30.07.2010

Annual Return of Income Tax, Wealth Tax for non corporate 31.07.2010 assessee for A.Y. 2010-11 without tax audit

E D I T O R I A L

The recently concluded G20 Summit was a study in contrast. There were people like Obama arguing for continuation of stimulus to spur growth. He indeed had the backing of one of the most celebrated economists in Manmohan Singh who toed this line for purely economic reasons. The new mantra appears to be spending your way out of the recession! There were others notably David Cameron the Prime Minister of Britain who has already put in motion considerable corrective measures to reduce spending to get out of the financial mess that he has inherited. It would be interesting to see how economists will record this even in retrospect. It is convenient and comfortable for politicians to toe the Keynesian line which advocates spending and spending more. Later day economists particularly those like August von Hayek argued that unbridled spending in an unsustainable economy do not solve the problem but on the contrary it exacerbates it. You need to examine the sustainability of the existing system before you pump in more money. If one were to go by what Hayek says the world leaders grappling with the financial mess have to first take some corrective actions before deciding to continue with the stimulus. Only history will tell whether the Obama line or Cameron line will prevail or prove successful.

The society is getting desensitised at an alarming rate. A county where innocent people fall prey to Naxal violence, Kashmiris getting killed for no fault of theirs, deaths due to caste and communal violence in some part of the country or other, people appear to be getting used to these inevitabilities and accept them as part of daily routine. In order to sensationalise, the electronic media show more and more of gore and violence forcing the people to reach for the remote to change the channels. This is a definite indication of public acceptance of these happenings as routine on the one hand their apathy on the other. Both point to the desensitisation process.

Talking of desensitising of society one is inevitably tempted to comment on the recent Bharat Bandh called by the Right and the Left. With the socialist hangover of the Congress, the party is always uncomfortable in articulating the need and necessity of difficult decisions like fuel price hike which affects the mascot of the ruling party the aam aadmi especially since the rank and file cannot identify themselves with such decisions dictated purely by economic compulsions nor do they understand the need and necessity of it. Consequently the Congress spokespersons always give the impression that they are either defensive or evasive about these issues. However, for once one found some advertisements in the newspapers giving the justification for the fuel price hike. However long or painful the process may be, the aam aadmi will also need to realise that there is no scope for any free lunch anywhere in the system. Someone has to pay for it sometime or other. I have always felt that in these kinds of situations it is more an issue of communication than an issue of economics. Coming back to the issue of Bandhs one only hopes that the society does not get so desensitised that they take closures and violence as regular inevitable occurrences and

accept them as part of life as they do in Kerala and West Bengal.

Sharad Pawar is a smart politician. Before the Prime Minister could clip his wings in the next cabinet reshuffle he himself told the PM that his burden should be reduced. If the PM could have his way he would have even relieved of his burden entirely by sacking him from the cabinet. Why lessen somebody's burden when you can help him by relieving his burden altogether? Alas, in the era of coalition politics that is not to be.

The World Cup football tournament in South Africa is winding up to the finals. What an impressive show of organising skills the country has put up. South Africa will never be the same again both in terms of its confidence and in terms of the infrastructural facilities they managed to create. Kudos to those people who made it all possible.

It is well known that people tend to become prisoners of their own systems. Here is one example of football teams becoming not only prisoners of their system but also suffer the consequences of what they have created. An explanation may be in order. Football is essentially a team play. Institution of awards like 'golden boot' for those who score maximum goals go against the very team spirit that you try to encourage. When you single out someone who scores more goals you are encouraging to attempt this feat even at the cost of the interest of the team. If I were to be a coach of a football team I will not have anyone singled out for awards or rewards on the basis of goals scored.

The count-down has started for the implementation of the Goods and Services Tax. The most ambitious economic reforms package is well and truly on its way. As it looks the transition would be a complex process but the implementation should be easy in comparison. Let us keep our fingers crossed. Launching the new taxation regime is the challenge; once implemented, the ease and simplicity of the process apart from its economic benefits would endear itself to all the stakeholders. We at Bizsol have just completed our homework and are awaiting the next move by the Government. With our background and the talent pool, we have prepared ourselves to be of service to our clients in the new era. We are certain that our clients would find our services a certain value addition in the new Indian Common Market with the ushering of the GST. Rarely has the country seen such drastic changes in the economic sphere of activity which affect every citizen of the country in some form or other. The way we do business and our experience as customers are about to change forever. One only hopes for a painless transition. If there are pains by any chance there of course are doctors (read Bizsol). As always we will be there at your service. Bizsol Update will carry regular features covering up to date information on the happenings on the GST front with latest on the government moves, industry reactions, changes in rules and regulations along with our own take on the impact of these developments. Watch out for the GST Corner in the Update from this issue itself. Through all these efforts and through personal interactions with clients and associates we expect to partake in your strategic decision making process in the area of indirect taxation both at the time of transition to the new regime and also thereafter during the implementation of GST. You can count on us to give you both what you need and what you want.

Thank you.

Venkat R. Venkitachalam

1

July - 2010

2

July - 2010

Ø Bizsolindia has released “Goods and Service Tax - Unleashed” on GST. It has been also decided to hold number of Seminars and Customized Training Programs for preparation of GST.

Ø State Governments Putting Road Blocks to GST

State governments stuck to their demands of higher threshold for central Goods and Services Tax and keeping local body taxes and electricity duty out of i t , threatening the total implementation of what is touted as the biggest tax reform since independence.

The states are demanding dual rate of state-GST to safe-guard their interests, but opposed by the central government which favours a single rate structure for ease. These demands were part of the reply sent by the empowered committee of the state finance ministers in response to a discussion paper.

The stand-off casts a shadow over the implementation of GST which FM Pranab Mukherjee is aiming for by April, 2011. “A uniform threshold will not be acceptable to small scale industries, that are tax exempt currently and small traders,” said Thomas Issac, Kerala Finance Minister.

“Small traders have apprehensions about dealing with two administrations, filling returns. There are practical problems and a solution will have to be found through discussions. But, its not an issue that will break the discussions.”

The government has been negotiating with the states to implement the GST as it attempts to do away with the anomalies prevailing in the current structure where goods and various services are taxed more than once by state and Central government agencies. It is an attempt to create a seamless pan-India market. To avoid the “tax-on-tax”, states are seeking more and concessions from the central government as the implementation cut their revenues. The tax which was supposed to take effect April, 2010, is delayed due to disputes.

Acceptance of dual rate structure nullifies the very reason behind the GST as it not only complicates the tax structure, but also pushes up the taxation rate.

The Centre promised to compensate states in full for any revenue loss that they may incur due the new tax.

States were positive and inclined to take forward the indirect tax reform after centre's promise for a robust compensation at the last meeting of the empowered committee of state finance ministers. States have also rejected the proposal of a uniform threshold of Rs 10 lakh annual turnover and reitereated the earlier demand of Rs 1.5 crore which may be unacceptable not just on the issue of revenue loss but also on simplicity.

The Centre's views on subsuming electricity duty, octroi and taxes imposed by local bodies is also not acceptable to states. Keeping large number state levies out of GST will not only push up the revenue neutral rate but also distort the tax structure.

The new tax, it is proposed, will replace excise duty and service tax at the Centre and VAT and local taxes at the states' level.

Ø GST may have composition scheme for business below a turnover of Rs 1 crore

The new composition provides a simpler method of calculating tax liability. In a bid to reduce the cost of administering small traders in the proposed Goods and Services Tax (GST) regime, the finance ministry plans to collect taxes from businesses below a turnover of Rs 1 crore at a defined floor rate, which will be much lower than the GST rate.

This composition, which provides a simpler method of calculating tax liability, will be optional for dealers.

For instance, a dealer whose turnover is between Rs 10 lakh and Rs 1 crore can opt for a compounded levy of one per cent on his taxable turnover, instead of paying GST at 16 per cent.

“The compounding scheme may have an upper

Making You GST Ready – Exclusively by Bizsol

GST Corner -

Finance Commission task force suggested that dealers of high value goods like gold, silver and platinum ornaments, precious stones and bullions, subject to the threshold exemption but without the ceiling of Rs 40 lakh, be allowed to opt for the scheme in GST. It reasoned such items are prone to smuggling due to high tax incidence resulting in social and economic disorder.

Making the Process less Taxing

Ø The finance ministry plans to collect taxes from businesses below a turnover of Rs 1 crore at a defined floor rate, which will be much lower than the GST rate

Ø The scheme will be administered by the states for collecting Central GST as well as State GST. Dealers involved in inter-state purchases will not be eligible for it

Ø In the current VAT regime, there is a compounding scheme for businesses below a turnover of Rs 50 lakh in many states. But it has not been availed of by many traders because the difference between the VAT rate (4 per cent) and the floor rate (about 1 per cent) is not huge

Ø Moreover, traders who join the scheme cannot issue tax invoices to customers or claim set-off on VAT paid on purchases

Ø In the GST scheme, too, the input tax credit will not be allowed against the purchases made from exempt dealers

Ø The empowered committee of state finance ministers had suggested compounding a cut-off at Rs 50 lakh and a floor rate of 0.5 per cent across states

Ø The task force of the 13th Finance Commission on GST suggested that small dealers with a turnover of Rs 10 lakh to Rs 40 lakh be allowed to opt for a compounded levy of one per cent, each towards CGST and SGST

[Source: Google Search ::GST:: Jun 28, 2010]

Ø Taxability of Exempted Goods under GST

The Centre is likely to offer a sweetener to goods that go out of the exempted list for excise once the goods and services tax (GST) kicks in next year. While identifying the list of products that will go out of the 350-item list, the Union finance ministry is looking at levying a lower rate of tax under the new regime.

The Centre has already acceded to the demand from the states to settle for a two-rate structure,

ceiling of Rs 1 crore on gross annual turnover and a floor tax rate, which could be a fixed amount or a percentage of the annual turnover,” said an official in the finance ministry, on condition of anonymity. “The scheme will be administered by the states for collecting Central GST (CGST) as well as State GST (SGST). Dealers involved in inter-state purchases will not be eligible for it.”

In the current value-added tax (VAT) regime also, there is a compounding scheme for businesses below a turnover of Rs 50 lakh in many states. It has not been availed by many traders because the difference between the VAT rate (4 per cent) and the floor rate (about 1 per cent) is not huge. Moreover, traders who join the scheme cannot issue tax invoices to customers or claim set-off on VAT paid on purchases. In the GST scheme, too, the input tax credit will not be allowed against the purchases made from exempt dealers.

The empowered committee of state finance ministers had suggested compounding a cut-off at Rs 50 lakh and a floor rate of 0.5 per cent across the states. The task force of the 13th Finance Commission on GST suggested that small dealers with a turnover of Rs 10 lakh to Rs 40 lakh be allowed to opt for a compounded levy of one per cent, each towards CGST and SGST.

The Centre agreed for a cut-off of Rs 50 lakh for CGST, provided the threshold below which businesses would not be taxed by the Union government was kept at Rs 10 lakh, instead of Rs 1.5 crore suggested by the empowered committee. It, however, said the floor rate of 0.5 per cent would be for SGST alone.

Another official said the limit was proposed to be raised to reduce the compliance burden for small traders and small-scale industries and administrative work for the states.

The finance ministry has suggested simplified procedures for dealers under the compounding scheme, such as registration by single agency for both SGST and CGST without manual interface, no physical verification of premises and no pre-deposit of security, simplified return format, longer frequency for return filing, electronic return filing through certified service centers or chartered accountants, audit in 1-2 per cent cases based on risk parameters, and lenient penal provisions.

Under VAT, traders dealing in sugarcane, pan masala, narcotics and rectified spirit are not eligible for the compounding scheme. The

3

July - 2010

with essential items facing a lower rate of tax. Most of the items that come out of the exempted category would be treated on a par with essential goods and would face a lower levy, said a senior government official on condition of anonymity. Unlike the Centre, the states are, however, unlikely to make significant changes to the list of 99 items that are at present exempted from the value added tax (VAT).

“Many exempted items are likely to be taxed at a lower rate in GST. It will be difficult to straightway tax zero-tax items at 16 per cent or above in GST”. It would be difficult for states to exempt over 90 items under the GST regime.

Food items such as curd and butter milk and certain textile products might be taxed at a lower rate in GST, but branded food items, footwear and most information technology products were likely to attract the standard rate.

Government official said the exemption list would be common for the Centre as well as the states and states would not be allowed to expand the exemption list even for goods of local importance. The list would be substantially reduced over the years to minimise exemptions.

“The Centre has agreed to most of the demands of the states but it will not agree on different exemptions and different thresholds. The

different exemption list would lead to distortions,” the official added.

While the empowered group of state finance ministers had suggested that the existing exemption lists of the states and the Centre continue in GST, the task force of the 13th Finance Commission had suggested only five exemptions — public services such as civil administration, defense and police; employer-employee transactions; unprocessed food sold under the public distribution system; education services provided by non-governmental bodies; and health services offered by non-governmental agencies.

In Australia, health and medical care, educational supplies and childcare, fresh food and beverages are exempted from GST. Tax-exempt goods and supplies in Canada include bas ic grocer ies , prescr ip t ion drugs, transportation, medical devices, health and dental care, educational and financial services. Singapore exempts sale and lease of residential property, financial services and exports of goods.

India might draw upon the experience of these countries while finalising its list of exempted items.

4

July - 2010

What's New…!!CUSTOMSCustoms (Tariff)Ø Melting scrap of heat resistant steel can be imported at

“Nil Rate” of Basic Customs Duty. Notification 21/2002-Cus amended to this extent. [CUS NTF NO. 69/2010 DATE 23/06/2010]

Ø Antidumping duty on Import of Poly Vinyl Chloride Paste Resin originating or exported from European Union falling under ITCHS 3904 22 10 is continued for further period of 5 years and accordingly earlier notification 115/2009-Cus has been rescinded. [CUS NTF NO. 70 & 71/2010 DATE 25/06/2010]

Ø Safeguard duty at the rate of 16% ad valorem has been imposed on Soda Ash [2836 20] when imported into India from the People's Republic of China. [CUS NTF NO. 72/2010 DATE 28/06/2010]

Ø Anti dumping duty on Pentaerythritol (2905) originating in or exported from, the People's Republic

thof China and Sweden has been continued upto 28 March 2011. [CUS NTF NO. 73/2010 DATE 30/06/2010]

Customs (Non Tariff)Ø Marripalem Village in Taluk of Edlapadu, District

Guntur, Andhra Pradesh, has been notified as Inland Container Depot for Unloading of imported goods and the loading of export goods. [CUS NTF NO. 46/2010 (NT) DATE 10/06/2010].

Ø Tariff Value has been revised for Brass Scrap (7404 00 22) to 3645 USD / MT and Poppy Seeds to 2741 USD / MT. [CUS NTF NO. 47/2010 (NT) DATE 15/06/2010 & 52/2010 DATE 30/06/2010].

Ø Time Limit for Application for Drawback has been revised as under,

The claim was required to be filed within 60 days from the date of Let Export Order. This time limit could be extended by 30 days by the Commissioner if he was satisfied that the exporter was prevented by sufficient cause from filing the application within the aforesaid time period.

The claim has to be filed within 3 months from the date of publication of All Industry Rate (AIR) of Drawback or from the date of communication of the brand rate of drawback. This period may be extended by another 9 months by the AC/DC if he is satisfied that the exporter was prevented by sufficient cause from filing application within the aforesaid time period.

This claim has to be filed within 3 months from the date of Let Export Order. The period may be extended further by 3 more months by the AC/DC in case he has satisfied that the exporter was prevented by sufficient cause from filing the case in time.

S. No.

Brand rate claim(Rules 6 and 7 of Customs, Central Excise & Service Tax Drawback Rules, 1995)

Supplementary claim(Rule 15 of Customs, Central Excise & Service Tax Drawback Rules, 1995)

Drawback on Re-export of imported goods [ Rule 5 of the Re-Export of Imported Goods (Drawback of Customs Duties) Rules, 1995]

1

2

3

The claim may be filed within 3 months from the date of Let Export Order. This time limit may be extended by 3 months by the AC / DC and by another 6 months by the Commissioner.

The claim may be filed within 3 months from the date of publication of All Industry Rate (AIR) of Drawback or from the date of communication of the brand rate of drawback. This period may be extended by 9 months by the AC/DC and by another 6 months by the Commissioner.

This claim may be filed within 3 months from the date of Let Export Order. The period may be extended by 3 months by the AC/DC and by another 6 months by the Commissioner.

Type of Claim Previous time limits Revised time limits

5

July - 2010

Ø In case the Sale Proceeds are realized after recovery of Drawback on account of non-realization of Export proceeds, the exporter can file application with a period of 3 months from the date of realization. Further the Commissioner of Central Excise & Customs may condone delay for further period of 9 months subject to the proceeds are realized within time limit permitted by RBI. [CUS NTF NO. 49/2010 (NT) DATE 17/06/2010]

Ø Import of specified goods intended for sale or use in India and which does not fulfils the conditions specified in Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007 has been prohibited. [CUS NTF NO. 51/2010 (NT) DATE 30/06/2010]

Custom Circulars

Ø It is clarified that on import of apparel, whether or not knitted or crocheted, all sorts, falling under Chapter 61 or 62, the additional duty of Customs (CVD) is chargeable on the basis of their R.S.P./ M.R.P. [CUS CIR NO. 12/2010 DATE 21/06/2010]

Ø Extension was provided upto 31.12.2011 for fulfillment of Export Obligation period for the Advance License Holders who have imported raw sugar between 21.9.2004 and 15.4.2008. It has been clarified that the extension is provided upto 31.03.2011 and not 31.12.2011. [CUS CIR NO. 14/2010 DATE 28/06/2010]

Ø Alert has been issued by the Board on fraudulent claim of 4% SAD by unscrupulous importers by preparing duplicate set of Invoices of the same serial number to corroborate that no processing has been carried out on the goods imported. [CUS CIR NO. 15/2010 DATE 29/06/2010]

Ø Now PGDM holders are allowed to appear for CHA License examination. [CUS CIR NO. 16/2010 DATE 29/06/2010]

Clean Energy Cess

Provisions pertaining to Clean Energy Cess are notified after enactment of Finance Act, 2010.

Ø Clean Energy Cess of Rs 50 per Tonne will be levied on following goods,

a) Raw Coal (2701)

b) Raw Lignite (2702)

c) Raw Peat (2703)

[CEC NTF NO. 03 & 04/2010-CEC, DT. 22/06/2010]

Ø Exemption from Clean Energy Cess is provided to all goods produced or extracted as per traditional and customary rights enjoyed by local tribals in the State of Meghalaya without any license or lease required under any law for the time being in force. [CEC NTF NO. 05/2010-CEC, DT. 22/06/2010]

Ø Clean Energy Cess Rules, 2010 has been notified. [CEC NTF NO. 06/2010-CEC, DT. 22/06/2010]

Central Excise (Tariff)

Ø Education Cess and Secondary & Higher Education Cess is exempted on following,

a) Coal; briquettes, ovoids and similar solid fuels manufactured from coal (2701)

b) Lignite, whether or not agglomerated, excluding jet (2702)

c) Peat (including peat litter), whether or not agglomerated (2703)

[CEN NTF. NO. 28 & 29/2010-CE, DT. 22/06/2010]

Central Excise (Non Tariff)

Ø Service Providers under the category of “Mining of Minerals, Oil or Gas Service” and “Site formation and clearance, excavation and earthmoving and demolition Services” can avail Cenvat Credit of duty paid on dumpers or tippers, falling under Chapter 87 as Capital Goods, if the such vehicles are registered in the name of provider of output service. [NTF. NO. 25/2010-CE (NT), DT. 22/06/2010]

Ø Cenvat Credit of Excise duties cannot be utilized for payment of Clean Energy Cess. [NTF. NO. 26/2010-CE (NT), DT. 29/06/2010]

Ø Supplies for the use of foreign diplomatic missions or consular missions or career consular offices or diplomatic agents in terms of the provisions of notification No. 6/2006- Central Excise dated the 1st March, 2006, number G.S.R.96(E), dated the 1st March, 2006 will not be treated as Exempted Goods for the purpose of reversal of Cenvat Credit under Rule 6 of Cenvat Credit Rules, 2004. [NTF. NO. 27/2010-CE (NT), DT. 29/06/2010]

Central Excise Circulars

Ø Finally board has issued the clarification based on the tribunal decision in the case of Resistance Alloys [1996 (84) ELT 507 (T)] & Bothra Metal Industries [1998 (99) E.L.T. 120 (Tribunal)] held that the process of pickling being preparatory process to drawing of wire does not amount to manufacture. [CE CIR NO. 927/17/2010-CX, DT. 24/06/2010]. Board has taken almost 12 years to issue to the circular based on Tribunal decision. It is criminal waste of time, energy and money for wasteful litigations.

Ø It is clarified that the exports from 100% EOU's have been specifically excluded from the purview of this amendment in Notification 42/2001-CE (NT), wherein it is mentioned that goods which are exempted from

CENTRAL EXCISE

6

July - 2010

payment of duty or chargeable to nil rate of duty, have been disallowed to be exported under bond. [CIR NO. 928/18/2010-CX, DT. 28/06/2010] In other words no legal undertaking is required to be furnished by EOU since the export from EOU are covered under B-17 Bond.

Ø It is clarified that the Polyester Staple Fibre obtained from PET scrap and waste bottles is classified under heading 55032000. [CIR NO. 929/19/2010-CX, DT. 29/06/2010]

Most awaited notification for declaring effective date for new services & new exemption notification. New

stservices will be effective from 1 July 2010.

Ø Government of India has notified the effective date i. e, st1 July 2010 for new services covered under Finance

Act, 2010. [Notification No. 24/2010 dated 22/06/2010]

(i) a person who has arrived at a customs airport from a place outside India and is in transit through India, provided that he does not pass through immigration and does not leave customs area and continues his journey to a place outside India; and

(ii) a person employed or engaged by the aircraft operator in any capacity on board the aircraft. [Notification No. 25/2010 dated 22/06/2010]

Ø Conditional exemption has been provided to Air Transport of Passengers of specified categories which is 10% of the ticket charges or Rs. 500 per ticket for domestic travel and Rs. 1000 for international travel subject to condition that the credit of duty paid on inputs used for providing such taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004. [Notification No. 26/2010 dated 22/06/2010]

Ø Air Transport Service has been exempted from payment of service tax for passengers embarking on a journey originating or terminating in an airport located in the state of Arunachal Pradesh or Assam or Manipur or Meghalaya or Mizoram or Nagaland or Sikkim or Tripura or at Baghdogra located in West Bengal. [Notification No. 27/2010 dated 22/06/2010]

Ø Service tax exemption has been provided to Construction of complex Service when it is provided to Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awaas Yojana. [Notification No. 28/2010 dated 22/06/2010]

Ø Service Tax on Construction service is to be paid on 25 per cent of the value of property if value of land has not been charged separately. [Notification No. 29/2010 dated 22/06/2010]

Ø Exemption has been provided to Sponsorship Service when it is provided to specified Sports Organizations or Authorities for conducting specified tournaments or championships. [Notification No. 30/2010 dated 22/06/2010]

SERVICE TAX

Ø Following service provided have been exempted when these are provided at Port or Airport.

(i) repair of ships or boats or vessels belonging to the Government of India including Navy or Coast Guard or Customs but does not include Government owned Public Sector Undertakings;

(ii) repair of ships or boats or vessels where such process of repair amounts to 'manufacture' and has the meaning assigned to it in clause (f) of Section 2 of the Central Excise Act, 1944;

(iii) supply of water;

(iv) supply of electricity;

(v) treatment of persons by a dispensary, hospital, nursing home or multi-specialty clinic (except cosmetic or plastic surgery service);

(vi) services provided by a school or centre to provide formal education other than those services provided by commercial coaching or training centre;

(vii) services provided by fire service agencies.

(viii) pollution control services

[Notification No. 31/2010 dated 22/06/2010]

Ø Distribution of Electricity has been exempted from Service tax when it is provided by a distribution licensee, a distribution franchisee, or any other person by whatever name called, authorized to distribute power under the Electricity Act, 2003. [Notification No. 32/2010 dated 22/06/2010]

Ø Exemption to Transport of Service By Rail has been extended up to January 2011. [Notification No. 33/2010 dated 22/06/2010]

Ø Exemption to transport of specified goods namely Defense equipments, Railway equipments, Relief materials will now come into effect from January 2011. [Notification No. 34/2010 dated 22/06/2010]

Ø Abatement to Transport of goods by rail will come into effect from January 2011. [Notification No. 35/2010 dated 22/06/2010]

DGFT Notifications

Ø Galvanized steel sheets (plain and corrugated) will be subjected to Mandatory Indian Quality Standards at the time of Import. [DGFT NOTIFICATION NO. 48/2009, DT. 15/06/2010]

Ø Prohibition on import of milk and milk products from China has been further extended for a period of six

thmonths from 24 June 2010. [DGFT NOTIFICATION NO. 49/2009, DT. 15/06/2010]

Ø Export of Guar gum refined split (1302) and Guar gum treated and pulverized (13023220 & 13023230) to European Union for animal or human consumption is

Foreign Trade Policy

7

July - 2010

allowed subject to issue of Health Certificate by authorized representative of Ministry of Commerce & Industry. [DGFT NOTIFICATION NO. 50/2009, DT. 06/07/2010]

Public Notices

Ø A total quantity of 10,000 MTs (Ten thousand metric tonnes) of white Sugar for export of CXL Concessions Sugar to European Union (EU) for the fiscal year 2009 -10 (October, 2009 to September, 2010) has been allocated to M/s Indian Sugar Exim Corporation Limited, New Delhi. [PUBLIC NOTICE NO. 75/2009, DT. 15/06/2010]

Ø Indian Oilseeds and Produce Export Promotion Council, 78-79, Bajaj Bhavan, Nariman Point, Mumbai-400021. [Tel (91-22)2202 3225/2202 9295, FAX : ( 91-22) 2202 9236, E-mail: , Website: ] has been included in the list of agencies authorized to issue Certificate of Origin – Non Preferential. [PUBLIC NOTICE NO. 76/2009, DT. 29/06/2010]

Ø The new address of Federation of Gujarat Industries is Federation of Gujarat Industries, FGI Business Centre Gotri-Sevasi Road, Opp. Nilgiri Farm, Sevasi, Vadodara-391101, Tel: 0265-2372901-02, Fax: 2372904, E-mail: . [PUBLIC NOTICE NO. 77/2009, DT. 01/07/2010]

Ø For Import of meat and meat products of any kind under Advance authorization, Sanitary Import Permit shall be obtained from the Department of Animal Husbandry, Dairying and Fisheries (DAHDF). [PUBLIC NOTICE NO. 78/2009, DT. 01/07/2010]

Policy Circular

Ø It has been clarified that w.r.t advance authorization issued for the export product suffixing pharmacopeia say USP, the export documents containing the export product suffixing any other pharmacopoeia, viz., BP or EP or JP or IP may also be accepted towards fulfillment of export obligation against relevant Advance Authorization. [POLICY CIR NO. 35/2009, DT. 03/07/2010]

Ø It is clarified that the first revalidation of six months of Import Authorization for restricted items (except SCOMET items) from the date of expiry of initial validity period will be endorsed by the Regional Authorities at their level without making reference to DGFT (HQ). For the applications for revalidation of import authorizations beyond six months from the date of its expiry shall be forwarded to DGFT (HQ) for consideration. [POLICY CIR NO. 36/2009, DT. 05/07/2010]

Ø Online transmission of DES (Advance Authorization), EPCG and DEPB authorization at 33 ICDs w.e.f 10.07.2010 will be done. [POLICY CIR NO. 37/2009, DT. 07/07/2010]

info@iopea.org

info@fgi.co.in

FEMA/RBI

Ø The period of realization and repatriation of Export proceeds of goods or software exported has been increased from six months to twelve months from the date of export, subject to review after one year. [RBI Circular 57 DT. 29/06/2010 ]

Ø In order to maintain transparency with regard to imposition of penalties on Primary Dealers it has been decided that the details of penalty will be required to placed in Public domain by following ways,

a) Press Release will be issued by the Reserve Bank

b) The penalty should also be disclosed in the “Notes on Accounts” to the Balance Sheet of the Primary Dealer in the next Annual Report [RBI/2009-10/496]

Ø Cheques with overwriting will not be honored by the Banks. This will come into effect from 1st December 2010. [RBI/2009-10/503 DT 22/06/2010]

Ø Upda ted p rocedure fo r compound ing o f contravention/s under FEMA has been notified [A.P. (DIR Series) Circular No. 56 DT 28/06/2010]

Ø Vedanta Cultural Foundation, Mumbai has been approved in the category of 'Institution' partly engaged in research activities, from Assessment year 2010-2011 onwards for the purpose of deduction u/s 35 section. [Notification No. 44/2010 dated 15-6-2010]

Ø Hirabai Cowasji Jehangir Medical Research Institute, Pune in the category of 'Other Institution', partly engaged in research activities has been approved from Assessment year 2007-08 onwards for the purpose of deduction u/s 35 section. [Notification No. 45/2010 dated 15-6-2010]

Special Economic Zone

Ø The proposal for shifting from one SEZ to another SEZ will be required to be placed before the Board of Approval. [INSTRUCTION NO.59 dated 18/06/2010]

Ø It is clarified that FTWZ units can hold goods on behalf of foreign supplier and buyer and DTA supplier and buyer as well, subject to fulfillment of provisions made in Rule 18(5) of SEZ Rules, 2006. [INSTRUCTION NO.60 dated 06/07/2010]

INCOME TAXNotifications

8

July - 2010

Special Economic Zone Act, 2005 was notified on th10 Feb 2006 and some of the sections were made

steffective from 1 October 2008. Similarly SEZ Rules, th2006 has been notified on 10 Feb 2006.

There were lot of uproar in the Parliament as well as on the road against the SEZs though SEZ Act, 2005 was passed by lower house and the Upper House of the Parliament. A lot of apprehensions and notions were carried by people at large and ultimately usefulness of the SEZs was proven by Foreign Direct Investment, Employment and Exports from the SEZs even in worldwide recession period.

Section 26 of SEZ Act, 2005, provide exemption, drawback & concessions to every Developer and Entrepreneurs which includes exemption from Custom Duty, Export Duties, Central Excise duties, Service Tax, Security Transaction Tax, Central Sales Tax in the manner in which and the terms & conditions as Central Government will prescribe.

Section 27 of SEZ Act, 2005, grants exemption under section 10AA of Income Tax Act, 1961, on profit earned from Exports by the SEZ Units. Similarly it also grants exemption on Transfer of Assets when the Unit is shifting from Urban Area to SEZ under section 54C of Income Tax Act, 1961. It also proposes to grant exemption under section 80 IA in respect of profit and gains of Developer and Co-developer. It also proposes exemption to Off-Shore Banking Units and International Finance Service Centre in line with Sec 80 LA of Income Tax Act, 1961. It also proposes no tax on distributed profit by way of Dividend and grants exemption for applicability of provision of Sec 115 IB i.e. MAT of Income Tax Act, 1961.

Rule 22 of SEZ Rules, 2006 prescribes the procedure and terms & condition for availing exemption as granted under Section 26 of SEZ Act, 2005. Rule 31 of SEZ Rules, 2006 prescribes the exemption from Service Tax and Rule 32 prescribes exemption from Central Sales Tax.

Similarly State Governments were advised to amend respective State VAT Acts so as to grant exemption from payment of VAT on procurement of

Goods by SEZ Developer / Co-developer / SEZ Unit.

Section 51 of SEZ Act, 2005, clearly specifies that the provision of the SEZ Act shall have the effect notwithstanding anything inconsistent therewith containing any other law for the time being in force or in any other instrument having effect by virtue of any law other than this act. This clause proposes to have the over ridding effect of the SEZ Act and Rules over any other Law and Rules to avoid contradictions and have absolute clarity.

Industry and International world has responded very positively since this is the only provision which provides absolute clarity on exemption on various taxes with long term perspective.

The growth of Exports from SEZ are given below and t can be appreciated from the same that when there are consistent policies of exemption with the intention to reduce the transactions cost and transaction time, export growth was phenomenal.

Year Value Growth Rate (Rs. Crore) (over previous year)

India is planning to have the total tax reforms. Government is planning to subsume number of State and Central Taxes which are passed on to the consumers in the form of Goods and Service Tax. Similarly, Government is planning to implement Direct Tax Code as against Income Tax Act, 1961.

At present Income Tax Act, 1961 has been amended to grant the following exemption under Income Tax Act, 1961,

2003-2004 13,854 39%

2004-2005 18,314 32%

2005-2006 22 840 25%

2006-20007 34,615 52%

2007-2008 66,638 93%

2008-2009 99,689 50%

2009-2010 2,20,711.39 121.40%

SEZs- Puzzle in the hands of Government-- by Ashok B. Nawal

9

July - 2010

Sr.No. Section Exemption

1 10AA Exemption on Profit on Export stearnings of SEZ Units.1 Five

Years – 100%Subsequent Five Years – 50%Subsequent Five Ye a r – 5 0 % s u b j e c t t o reinvestment of the profit within 3 years

2 10 Exempt ion f rom Div idend Distribution Tax by Developer / Co-developer and Units

3 54C Exemption on Capital Gains from transfer of Business Assets of Industrial Undertaking of Urban area transferred to SEZ

4 80 IA Exemption from Profits derived by SEZ Deve lope r and Co-Developer for development of SEZ for 10 years

5 80 LA Exemption to Off-Shore Banking Units and International Finance Service Centre

6 115 IB Exemption from the provisions applicable for Minimum Alternate Tax

Task Force appointed from DTC suggested that current profit linked deductions available to developers of Special Economic Zones (SEZs) have been protected for their unexpired period in the DTC but there was no mention of grandfathering of these profit linked deductions in the case of units operating in these SEZs.

Lot of suggestions were received from all segment of Trade and Industry and thereafter first amended draft was published recently wherein it has been stated that the developers of SEZ will continue to get the Income Tax exemption or their unexpired period and similar provisions has been made applicable for the Unit which starts the commercial production by

31.03.2011 and those Units will enjoy the Income Tax exemption for the unexpired period.

thSimilarly 13 Finance Commission Report was published for giving road map for implementation of

thGST. In accordance with para 2.75 the 13 Finance Commission recommended as follows,

Quote:

Since the GST is designed to ensure that all producers and distributors are treated as complete pass- through and exports are zero-rated, there is no case for allowing any form of incentive to the developers of, or units in, the Special Economic Zones.

Unquote:

It seems that the intension of the Government has not been appreciated either in amended draft of

thDTC or the members of 13 Finance Commission report and Department of Revenue. Ho'ble Finance Minister, Shri. Pranab Mukharjee assured the members of the parliament while addressing his

thbudget speech on 28 Feb 2010 that,

Quote

The SEZs have attracted significant flows of domestic and foreign investments. In first three quarters of 2009-10 exports from SEZs recorded a growth of 127 per cent over the corresponding period last year. Government is committed to ensuring continued growth of SEZs to draw investments and boost exports and employment

Unquote

Government of India should not forget trade and industry and FDI investor has responded positively and number of SEZs were approved, around 1,45,000 Cr are invested and huge land measuring 69,000 Ha. have been occupied for the development of SEZ which can be seed from the following fact sheet published by Government itself.

Fact Sheet on Special Economic Zones

Number of Formal approvals

Number of notified SEZs (As on 25th May, 2010)

No. of valid In-Principle Approvals

Operational SEZs (As on 31st March, 2010)

Units approved in SEZs (As on 31st March, 2010)

578

353 (out of 578) + (7 Central Govt. + 12 State/Pvt. SEZs)

149

111 (Out of this 14 are multi product SEZs, remaining are IT/ITES, Engineering, electronic hardware, textiles, Biotechnology, Gem& Jewellery SEZs and other sector

specific SEZs)

2,850

10

July - 2010

It can be appreciated from the above chart that out of 353 notified SEZ only 111 SEZs have become operational and number of operational SEZs are under development and number of Unit still have to start their commercial production even in the operational SEZs. If the proposed provision as mentioned in amended DTC and GST will prevail then there will not be investment forthcoming for setting up the SEZ Unit and the huge investment made by 353 SEZs will be unproductive. Lot of employment which was proposed to be crested in those SEZs will not forthcoming.

Due to existing provisions of SEZ act and Rules, SEZ was duty free enclave and there was substantial reduction in transaction cost and time and therefore there was 127% growth in Export made by SEZ Units in the year 2009-10 when world was passing through recessionary trend.

Industrial Growth of India was mainly on account of the policies of the Government through Foreign Trade Policy and SEZ Act and Rules coupled with Income Tax exemption under Sec 10A / 10B / 10AA / 80 IA / 80 IB where benefits were granted for development of industry and therefore India has enjoyed the fruits of double digit growth.

India still is a under developed country and development of industries are required across in India which will provide employment opportunity and will make India self sufficient and self reliant. However the provisions envisage in DTC and GST Regime will kill the growth of Indian industry and make India stand still.

Government of India needs to provide stable platform, long term consistent policies for the

Development Industries and existing provision of SEZ Act and Rules are sufficient even and proved their usefulness which has resulted into creation of Employment opportunities, brining huge Foreign Direct Investment and creating confidence in the International World and make Industrial Growth in double digit every year. Government of India should stop playing the puzzle and play as toy with Exporter and SEZs. It should ensure the existing provision of Sec 26, 27 read with Rule 22 and Rule 31, 32 of SEZ Rules, 2006 should be continued and over ridding effect of Sec 51 of SEZ Act, 2005, should be

thretained and proposed recommendation of 13 FCR stand Department of Revenue and 1 amended draft

of DTC should be withdrawn and grant the following exemptions,

a) Sec 26 : Exemption, drawback & concessions to every Developer and Entrepreneurs which includes exemption from Custom Duty, Export Duties, Goods & Service Tax and Security Transaction Tax.

b) Sec 27 : Exemption on profit earned from Exports by the SEZ Units, Exemption on Transfer of Assets when the Unit is shifting from Urban Area to SEZ, Exemption in respect of profit and gains of Developer and Co-developer, Exemption to Off-Shore Banking Units and International Finance Service Centre, Exemption from tax on distributed profit by way of Dividend and grants exemption for applicability of provision of MAT.

Government should continue to give confidence to the Industry at large and FDI Investor of International World for continuing double digit industrial growth.

Land for SEZs

INVESTMENT (As on 31st March, 2010)

SEZs Notified under the Act

State/Pvt. SEZs set up before 2006

Central Government SEZs

Total

EMPLOYMENT (As on 31st March, 2010)

SEZs Notified under the Act

State/Pvt. SEZs set up before 2006

Central Government SEZs

Total

Exports in 2008-09 Deemed Exports DTA Sale

Exports in 2009-10 (As on 31st March, 2010) Deemed Exports DTA Sale

Notified Formally Approved Valid In-Principles Total area for SEZs (FA) incl. notified SEZs approvals (IP) proposed SEZs (FA+IP)

43,577 Ha 68,999 Ha 1,25,704 Ha 1,94,703 Ha

Total area for the notified SEZs would not be more than 0.065% of the total land area of India. Land is a state subject. Land for SEZs is procured as per the policy and

procedures of the respective State Govts.

Incremental investment Total Investment

Rs. 1,34,494.76 cr Rs.1,34,494.76 cr

Rs. 5,250.6 cr Rs. 7,006.91 cr

Rs. 4,707.75 cr Rs. 6,986.95 cr

Rs.1,44,453.11 cr Rs.1,48,488.62 cr

Incremental Employment Total Employment

2,51,592 persons 2,51,592 persons

45,723 persons 58,191 persons

71,592 persons 1,93,828 persons

3,68,907 persons 5,03,611 persons

Rs. 99,689 Crore (Growth of 50% over 2007-08) Rs. 13708.67 Crore (13.75% of total production) Rs. 5793.56 Crore (5.81% of total production)

Rs. 2,20,711.39 crore(Growth of 121.40% over 2008-09) Rs. 13937.04 Crore (6.32% of total production) Rs. 19201.78 Crore (8.70% of total production)

11

July - 2010

MAT (Minimum Alternate Tax) Banking companies

Other companies

Tax treatment of savings (PF, PPF & other retirement benefits)

Salaried personscompensation received under voluntary retirement scheme, amount of gratuity received on retirement or death and amount received on commutation of pension PerquisitesRent free accomodation

18% of book profits

Exempt

There is specified limit for e x e m p t i o n o n t h e mentioned receipts under section 10, 10A of the income tax act, 1961.

Valuation of perquisite for rent free accomodation is done as on the basis of r e c o v e r a b l e r e n t i f accomodation is owned by the employer & on the

Sr. No.

Subject Current provisions Proposed under DTC first discussion paper

Proposed under DTC amended discussion

paperBizsol Comments

0.5%b of Gross Value of assets

2%b of Gross Value of assets

MAT credit will not be allowed EET Method

Amount exempt from tax to the ex ten t such amounts are deposited in a Retirement Benefits Account. The employee will have to maintain a R e t i r e m e n t B e n e f i t Account with any pe rm i t t ed sav ings i n t e r m e d i a r y i n accordance with the scheme framed and prescribed by the Central Government.

It will be percentage of b o o k p r o f i t o n l y . P e r c e n t a g e i s n o t specified.

EEE Method will continue for Government Provident Fund (GPF), Publ ic Provident Fund (PPF) and Recognised Provident Funds (RPFs) and the p e n s i o n s c h e m e administered by Pension Fund Regulatory and Development Authority Complexity of maintaining pe rm i t t ed sav ings accounts has been discussed in the context of the EET method of taxation. For the same reasons, it is proposed not to in t roduce the Retirement Benefits Account scheme & exemption will be exempt subject to specified limit.

DTC does not propose to compute perquisite value o f r e n t f r e e accommodation based on market value

Finally concept of Book Profit is retained without men t i on ing spec i f i c percentage. Loss making Unit now will not be required to pay MAT. Welcome Step..

G o v e r n m e n t h a s accepted the comcept of EEE to pramote the s a v i n g s c h e m e s administered by Pension Fund Regularateries. Welcome Step

Salaried person has been finally relived

Salaried person has been finally relived

In our earlier article published in February 2010, provisions of Direct Tax Code were elaborated. The Government of India

has invited suggestions on these provisions from Trade & Industry. Numbers of suggestions were received by them w.r.t

MAT, savings such as PF, Gratuity, etc, Capital Gains, DTAA, Income from House Property, provisions relating to salaries,

provisions relating to SEZ, etc. and accordingly amended draft of Direct Tax Code was published in the month of June,

2010. We give below the existing provisions under Income Tax Act, 1961 and suggested in first draft of Direct Tax Code as

well as amended draft of Direct Tax Code

Amended Draft of Direct Tax Code-By A. B. Nawal & Mrs. Manisha Pawshe.

1.

2.

3.

12

July - 2010

Exemption w.r.t. perquisites in the nature of medical expenses.

Income from House PropertyDeductions from income from house property

Annual value of any property

Provision for “deemed let out” property.

basis of rent paid if accomodation is taken on lease or rent.

Deduction of 1.5 lakhs in case of self occupied h o u s e p r o p e r t y & deduction for actual interest in case of let out property.

The annual value of any property shall be deemed t o b e — (a) the sum for which the p r o p e r t y m i g h t reasonably be expected to let from year to year; or(b) where the property or any part of the property is let and the actual rent received or receivable35 by the owner in respect thereof is in excess of the sum referred to in clause (a) , the amount so received or receivable; or(c) where the property or any part of the property is let and was vacant during the whole or any part of the previous year and ow ing to such vacancy the actual rent received or receivable by the owner in respect thereof is less than the sum referred to in clause Under current provisions, as per section 23(4), if assessee has more than one house property, then one will be “deemed let out” evenif actually not let out.

Sr. No.

Subject Current provisions Proposed under DTC first discussion paper

Proposed under DTC amended discussion

paperBizsol Comments

N o n - a v a i l a b i l i t y o f exemption for perquisites in the nature of medical b e n e f i t s w h i c h a r e available in the current law

In the case of a self-occupied property where the gross rent is deemed to be nil, no deduction for taxes or interest will be allowed

Gross rent will be higher of (i) the amount of contractual rent for the financial year; and (ii) the p r e s u m p t i v e r e n t calculated at six per cent per annum of the ratable value fixed by the local authority

Existing provision will be retained for valuation of perquisites in relation to m e d i c a l f a c i l i t i e s / reimbursement provided by an employer to its employees.

Deduction of 1.5 lakhs in case o f one house property

In case of let out house property, gross rent will be the amount o f rent received or receivable for the financial year

In case of house property which is not let out, the gross rent will be nil. As the gross rent will be taken as nil, no deduction for taxes or interest etc., will be allowed

Salaried person has been finally relived

In order to incentivize investment in housing, the deduction for interest on capital borrowed for a c q u i s i t i o n o r construction of a self occupied house property, up to a ceiling of Rs. 1.5 lakhs, as available in the existing provisions of the Income-tax Act, 1961 has been retained. Welcome Step.

This is one of the most rational basis rather than earlier proposed methods.

The DTC has given relaxation to assessee who has not let out his house property evenif he is having more than one house property.

4.

13

July - 2010

Special Economic Zones

Wealth Tax

Persons liable to pay Wealth Tax Threshold Limit

Rate of Tax

Assets chargeable to tax.

DTAA

Residential status in case of company incorporated outside India

Individual,HUF,Company

Up to 15 lakhs

1%

Only few specified assets.

As per current provisions in case of conflict between the DTAA and domestic law taxpayer has an option to opt for one which is more beneficial subject to specific exception. The company registered outside India can be resident if the control and management of its affair during that year is wholly from India

Sr. No.

Subject Current provisions Proposed under DTC first discussion paper

Proposed under DTC amended discussion

paperBizsol Comments

As per DTC current profit l i n k e d d e d u c t i o n s available to developers of Special Economic Zones ( S E Z s ) h a v e b e e n p r o t e c t e d f o r t h e i r unexpired period in the DTC but there is no mention of grandfathering of these profit linked deductions in the case of units operating in these SEZs.

Individual,HUF & private discretionary trusts

Up to 50 Crores

0.25%

A l l a s s e t s e x c e p t exempted assets.

In case o f Conf l ic t between DTAA and DTC, one that is later in point of time shall prevail.

The company registered outside India can be resident in India if, any time in the financial year, t h e c o n t r o l a n d management of its affairs is situated wholly or partly in India.

The issue w.r.t. units in SEZ has been addressed & similar provision to protect prof i t l inked deductions for units already operating in SEZs as on 31.03.2011 for the unexpired period will be continued

All taxpayers except non-profit organizations.

It will be determined in the context of overall tax rates.

It will be determined in the context of overall tax rates.

Productive assets should be exempted and it has been argued that tax on financial assets will be harsh. Taxpayer has an option to opt for one which is more beneficial subject to specific exception.

The company registered outside India can be resident in India if its ‘ p l a c e o f e f f e c t i v e management’ is situated i n I n d i a . p l a c e o f e f f e c t i v e management o f the company means-(i) the place where the board of directors of the company or its executive directors, as the case may be, make their decisions; or(ii) in a case where the board of d i r e c t o r s r o u t i n e l y approve the commercial and strategic decisions made by the executive directors or officers of the company, the place where such executive directors or officers of the company perform their functions.”

This is promisary estopel and having contradiction with SEZ Act and Rules made thereunder. Huge Investment in SEZ is made and almost 353 SEZ are notified. If such provisions are retained there will be betryal to the investors and it will loose the confidence of FDI Investors

Welcome Step..!!

It might have been better to determine the thershold limit and rate of tax. Thank God productive assets has been excluded.

The provision under DTC is brought in line with the current provisions.

Now the re may be litigation on the issue of l e s s o f e f f e c t i v e m a n a g e m e n t a n d determiniation keys of point number (ii), since suitable strategies may be devised to come out of the tax net.

5.

6.

A)

B)

C)

D)

7.

8.

14

July - 2010

General Anti-avoidance rule

Capital Gains

Distinction between Short term & Long term capital gains

Securities transaction tax

Base date for calulation of indexed cost of acquisition or improvement.

New capital Gain savingscheme

NA

U n d e r I n c o m e Ta x prov is ions, there is separate taxation on Short term & Long term capital gains.

Securities transaction tax is abolished

The base date is 1.4.1981

No such provision under Income Tax Act. But there is provison of deporising Capital Gain amount in an account with the bank as specified by the Central government for 3 years within which such amunt should be utlised for purchase or construction

Sr. No.

Subject Current provisions Proposed under DTC first discussion paper

Proposed under DTC amended discussion

paperBizsol Comments

GAAR provision was introduced in DTC & the powers to invoke the GAAR provisions were g iven to Assess ing authority.

In the first first discussion paper, the abolition of Securities Transaction Tax was not considered.

In the amended provision w.r. t . GAAR, further l e g i s l a t i v e a n d administrative safeguards have been provided as b e l o w : i) The Central Board of Direct Taxes will issue guidelines to provide for the circumstances under which GAAR may be i n v o k e d . i i ) G A A R provisions will be invoked only in respect of an arrangement where tax avoidance is beyond a s p e c i f i e d t h r e s h o l d limit.iii) The forum of Dispute Resolution Panel (DRP) would be available where GAAR provisions are invoked

C u r r e n t d i s t i n c t i o n be tween sho r t - t e rm investment asset and long-term investment asset on the basis of the length of holding of the asset will be eliminated.

The DTC proposes to a b o l i s h S e c u r i t i e s T r a n s a c t i o n Ta x . Therefore, all capital gains (loss) arising from the transfer of equity shares in a company or units of an equity oriented fund will form part of the computat ion process described above.

The base date is 1.4.2000.

N e w C a p i t a l G a i n s Savings Scheme will be framed by the Central Government. Capital Gains deposited under this scheme will not be subject to tax till the withdrawal from such scheme

If the power to invoke the GAAR provisions are kept with assessing authority, then he may invoke the said provisions as a routine procedure of assessment & may have a d v e r s e i m p a c t o n international trade or transactions.

Due to this assessee whose to ta l income including cappital gain is below threshold limit will get benefited.

The correction is done.

All unrealized capital gains due to appreciation during the period from 1.4.1981 to 31.3.2000 will not be liable to tax as the assessee will have an option to take the cost of acquisition for these assets at the pr ice prevailing as on 1.4.2000

This will be a good measure for tax planning for the assessees.

9.

10.

15

July - 2010

Tax on Capital gains

Capital gains arising on transfer of listed equity shares or units of equity oriented funds held for more than one year.

Capital gains arising on transfer of listed equity shares or units of equity oriented funds held for less than one year.

Income of FII from purchase and sale of securities

TDS on Capital Gains

of new asset (residential property.)

There are special rates for tax on Capital Gain under Income tax act. For Long term capital gains on transfer of capital asset (other than shares) will be taxable @ 20% & in case of short term capital gain it is @ 10%

Current ly long term capital gain arising on transfer of such assets is exempt from tax.

Currently, short-term capital gains arising on transfer of listed equity shares or units of equity oriented funds are being taxed at 15%

Currently, few FIIs are treating the income from sale of securities as “Business income”

Currently TDS on short term capital gain is 15% & long term capital gain is 20%

Sr. No.

Subject Current provisions Proposed under DTC first discussion paper

Proposed under DTC amended discussion

paperBizsol Comments

These gains (losses) will be included in the total income of the financial y e a r i n w h i c h t h e investment asset is transferred. The capital gains will be subjected to tax at the rate of 30% in the case of non-residents and in the case of residents at the applicable marginal rate.

The current provision w.r.t. exemption on long term capital gain arising on transfer of listed equity shares or units of equity o r i e n t e d f u n d s i s withdrawn.

Income under the head “Capital Gains” will be considered as income from ordinary sources in case of all taxpayers including non-residents. It will be taxed at the rate applicable to that taxpayer. ( There is exception for FIIs where it will be treated as “Capital Gain” only.)

Capital gains arising from transfer of equity shares of a company listed on a r e c o g n i z e d s t o c k exchange or units of an equity oriented fund, which are held for more than one year, shall be computed after allowing a deduction at a specified percentage of capital g a i n s w i t h o u t a n y indexat ion. Adjusted capital gain wi l l be included in the total income of the taxpayer and will be taxed at the a p p l i c a b l e r a t e . The rate of deduction is not specified yet.

Capital gain arising from transfer of any investment asset held for less than one year will be computed without any specified deduction or indexation and it will be included in the total income and will be charged to tax at the r a t e a p p l i c a b l e t o taxpayer

It is proposed that the i n c o m e a r i s i n g o n purchase and sale of securities by an FII shall be deemed to be income chargeable under the head “capital gains”.

As proposed under DTC, FIIs should not be liable to TDS on capital gains. Instead of that they will have to pay advance tax on the same as per the existing provisions under Income Tax Act, 1961.

Due to this assessee whose to ta l income including capital gain is below threshold limit will get benefited.

Due to this amendment, t h e n o n - r e s i d e n t investors will get some relaxat ion for whom earlier 30% tax was proposed.

This will give an indirect benef i t to assessee whose cap i t a l ga in income goes in the slab of 30% but due to specified dedcution tax rate will be effectively reduced. For e.g., if specified deduction is 50% then the effetive tax rate in case of capital gian would become 15% instead of 30%.

E l i m i n a t i o n o f t a x avoidance in case the FII does not have any permanent establishment in India.

16

July - 2010

CENTRAL EXCISE

Relief to buyers of goods manufactured by EOU's has been given by CESTAT stating that the credit of Education Cess paid on inputs procured from 100% EOU will be available in its entirety as CENVAT credit. [2010 -TIOL-810-CESTAT-BANG]. This is in line with the views of Bizsol which has been clarified in the article published in Bizsol Update of June 2010.

If goods cleared for Home consumption are received back in factory and subsequently exported than Rule 3(4) of Cenvat Credit Rules, 2004 and Central Excise Rules 2002 are not applicable and hence it is not necessary to pay an amount equal to the Cenvat credit taken. [2010-TIOL-764-CESTAT-AHM].

Extended period of 5 years cannot be invoked if the assessee has mentioned in excise returns i.e. ER1 the exemptions availed by him as it is the duty of Department to verify the returns to the extent as why the exemption has been claimed and whether the Cenvat credit has been reversed or not. [2010-TIOL-765-CESTAT-MUM]

Refund of Additional Excise duty, NCCD and Education Cess will not be available under Area Based Exemption as Para 2 of Notification No.56/2002 CE. Discloses that it refers to payment as excised duty and not relates to any other duty termed as excise duty by virtue of statutory provision other than in Excise Act itself [2010 (254)-ELT-131-Tribunal Delhi] Earlier also Hon'ble Tribunal held that refund of Education cess will not be available under Area Based Exemption. The matter is pending before Hon'ble Supreme Court.

If wholly exempted goods are exported manufacturer can claim refund of inputs and inputs services used in manufacturer of exempted goods as per plain reading of Rule 5 ibid.[ 2010 (254)-ELT-417-High Court HP]

Even if private records are recovered during raid and corroborated by some supportable evidence for attempt of clandestine production and removal it is necessary to have some positive evidence of clandestine production and removal of goods. [2010 (254)-ELT-205-High Court P & H]

Goods lying in factory though not entered in register cannot be said as clandestine removal of goods. Penalty imposable on finished goods removed from factory premises and intercepted in Tempo [2010 (254)-ELT-254-High Court P & H]

Provisional Assessment concept is not applicable to MRP based assessments [2010 (254)-ELT-289-Tri Mumbai]

When classification declarations are filed periodically

•

•

•

•

•

•

•

•

•

by assessee it is the duty of department to draw samples and get them tested and in absence of the same extended period cannot be invoked. [2010 (254)-ELT-170-Tri Mumbai]

CENVAT credit admissible on garden maintenance services as garden provides better atmosphere and ultimately increases work efficiency, decision of ISMT Ltd. (2010, TIOL 27, CESTAT, Mumbai) followed. Toilet, water and plant housekeeping services are basic and mandatory requirements to run a plant. Non providing these facilities may affect production and hence they are essential and related to manufacturing activity. Credit admissible even if services are not per se covered in the definition of Input Service under Rule 2(I) of Cenvat Credit Rules, 2004. [2010 (254) ELT 301, Tri. Mumbai]

Cab services providing transport facilities for officials of company is an important requirement for timely completion of jobs. Land line telephones installed at the residence of executives of the company, bills whereof are paid by company. Cenvat credit on all these services allowed as issue already settled in favour of assessee. Professional charges paid to chartered accountant are directly related to business of assessee. Cenvat credit admissible under Rule 2(I) of Cenvat Credit Rules, 2004. [2010 (254) ELT 254, Tri. Banglore]

Cenvat / Modvat – CVD debited to DEPB account – Revenue's contention that since license issued under previous policy and during that period credit was not admissible on CVD paid, otherwise in cash, so not eligible for credit – such contention misplaced, as

thEXIM policy amended vide notification Dated 20 January 2004 and Notification No. 96/2004 – CUS. – No such conditions under said notifications that debits made in DEPB, the licenses issued under Foreign Trade Policy only would be eligible for credit and those issued under previous policy not eligible for credit – all other conditions to availed credit fulfilled not disputed – credit admissible- Rule 3 (I) of Cenvat Credit Rules, 2004. [2010 (254) E.L.T. 203 (P & H)]

Earlier High Court held that delay in filing proof of exports cannot be condoned and hence duty was paid under protest. Refund claim of duty, filed relying on provisions for rebate on exports under Rule 12 of erstwhile Central Excise Rules, 1944. Rejection of refund claim merely on earlier adjudication order not sustainable. Finding of Assistant Commissioner that goods are exported and Rule 12 to be considered. Matter remanded for fresh consideration. [2010 (254) ELT 235, (Bom.)]

•

•

•

•

theBeyond Obvious

17

July - 2010

received from 100% EOU with duty paid in terms of Notification No 2/95 CE. As the issue involves question of interpretation penalty not leviable. [2010 (254) E.L.T 187 – (Tri - Del].

SERVICE TAX

HC has granted relief to petitioners by directing department not to initiate any coercive steps for recovery of the service tax on the renting of immovable property by petitioners on the basis of provisions of Sec 65 (105) (zzzz) as amended by the Finance Act, 2010, for the period 01/06/2007 to 01/04/2010. Petitioner shall, however, be liable to pay the applicable service tax as per the provisions of Section 65 (105) (zzzz), for the period subsequent to 01/04/2010 but subject to the result of the writ petition [AIT-2010-223 –HC]

Cenvat Credit of Service tax paid on Construction of compound wall is allowed as compound wall is integral part and necessary to run factory. [2010(18)-STR-734(Tri-Mumbai)]

Cenvat credit on Input services such as Cab services for officials, Landline phones installed in residences of Director and officials of assessee company is allowed. [2010(254)-E.L.T-354(Tri-Bang]

Commission received by CHA from Steamer Agent for arranging containers for exporters - Since the commission was received from secondary service which ultimately merged with the services that are exported, no service tax would be leviable. [2010-TIOL-891-CESTAT-MAD]

CUSTOMS

In case of imported goods which are supplied free of cost under warranty replacement and excess duty has been paid on the same the importers are entitled for refund as the question of passing of incidence of duty does not arise [2010-TIOL-866-CESTAT-MAD ]

Licenses were handed over to customs by third party and not transferee of license, accordingly import under licenses was considered as invalid by tribunal. Held that even if license found expired while in the custody of department, imports covered by those licenses are not objectionable since litigation is pending. Pendency of litigation is not expected to cause prejudice to the petitioner. [2010 (254) ELT 65, Bom.]

Crude palm oil imported and short landed by 1.445 % due to short delivery at port, spillage, evaporation and accident of tankers. The shortage is negligible compared to total imports and oil was never available to the importer for manufacture. When there was no case of revenue as to use of oil for other purpose, case of assessee covered by precedent decision of apex

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

It was highly improper for the department to take any coercive action against the appellant without even awaiting for order of tribunal. Department ought to co-operate tribunal in speedy disposal of cases rather than increasing work load. Directions issued to department not to initiate coercive steps against appellant till order of tribunal in this regard. [2010(254) ELT 348, Tri-Delhi]

Assessee did not account the fabrics and admitted the fact before settlement commission. Admission of fact before settlement commissioner is treated as admission of duty liability. Valuation is done on the basis of statement of partner and as nothing contrary to the valuation done by department is shown the duty liability on the same has been demanded. [2010 (254) E.L.T 141 – (Tri - Ahmd].

If duty has been paid on transaction value in case of inputs goods removed as such which is higher than that of Cenvat credit which needs to be reversed as per Rule 3 of Cenvat Credit Rules than there can be no duty demand or payment of interest or levy of penalty. [2010 (254) E.L.T 99 – (Tri - Chennai].

As the assessee is not able to satisfy assessing authorities that the components, spares and accessories are utilized during manufacturing process , Modvat credit cannot be allowed on the same [2010 (254) E.L.T 3 – (S.C)].

Denial of exemption sought on use of other's brand name – Order passed by Additional Commissioner on identical issue relied in impugned adjudication order to drop proceedings – No bar on revenue to file appeal when earlier order accepted but appeal to show defects of earlier order and reason for change in stand – No grounds furnished on defects of earlier order except stating observations on merits not given- Obligatory to give grounds for appeal when earlier order accepted- Appeals rejected – Sec 35 B of Central Excise Act,1944. [2010 (254) E.L.T 119 – (S.C)].

The Principle of natural justice has two ingredients. Firstly the person who is likely to be adversely affected should be given notice to show cause thereof and granted an opportunity of hearing and secondly, orders passed by authorities should give reason for arriving at any conclusion showing proper application of mind. Reasons are soul of orders and essential for proper administration of justice. [2010 (254) ELT 6, SC]

Mumbai tribunal while deciding question, as to whether heavy duty diesel engines used for drilling purpose were capital goods or not; took view contrary to earlier own judgment. Held that if tribunal decides to take a view contrary to the view already holding the field, it is expected on the part of tribunal either to deal with the contentions of the parties in detail or refer it to a larger bench. [2010 (254) ELT 42, Bom.]

The respondents are eligible for credit only to the extent of additional duty leviable on like goods under Sec 3 of the Customs Tariff Act, 1975 if inputs are

18

July - 2010

court. Benefit of end use exemption notification 16/2000 Cus. should not be denied. [2010 (254) ELT 72, H.P.]

EOU

Interest which has resulted from the FDR which were taken for the purpose of obtaining letter of credit from bank, is income from the business and therefore eligible for deduction u/s.10B.[ 2010-TIOL-286-ITAT-MUM]

Refund sought to be denied as EOU eligible for drawback as per FTP for deemed exports and Rule 5 of Cenvat Credit Rules, 2004 restricts refund when drawback claimed. - Held: Refund could not be denied by application of proviso to Rule 5 of Cenvat Credit Rules, 2004 which was applicable only to Cenvat Refund claimed as refund and not to Terminal Excise duty paid as drawback. [ 2010 (254) -ELT-467-Tri-Ahmd]

No mention of goods in first or second schedule of Central Excise Tariff Act, 1985 render them non-excisable. Excise duty not leviable on DTA clearance of non-excisable goods, by 100 % EOU. [2010 (254) ELT 504]

Excess raw materials procured by 100% EOU returned to supplier following Rule 6 of Central Excise Rules, 2001. Duty cannot be demanded as permission has been taken from department and proper procedure has been followed by assessee [2010 (254) E.L.T 130 – (Tri - Ban].

In case of Non fulfillment of export obligation by 100% EOU Penal prov is ions cannot be l ight ly invoked/exercised without giving due adherence to core facts and circumstances of case – Unless an act of violation is directly attributable to person, penalty liability cannot be extended as per Sec 4 – I of Imports and exports (Control Act, 1947) [2010 (254) E.L.T 73 – (A.P)].

SEZ

CESTAT Ruling-Reversal of Credit on clearance to SEZ Developers-we direct the registry to place this matter before the President for constitution of the appropriate Larger Bench to decide the issue as to whether the amendment introduced to Rule 6(6)(i) of the Cenvat Credit Rules, 2004 under Notification No. 50/2008-CE (N.T.) dated 31.12.2008 is either c1arificatory in nature and is retrospective in operation or not- [AIT-2010-262-CESTAT]

INCOME TAX

Receipts from Excise Duty refund and interest subsidy cannot be treated as income derived from industrial

•

•

•

•

•

•

•

undertaking if they are not utilized for acquisition of capital assets prior to commencement of production and hence assessee will not be eligible for benefits u/s 80 IB. [2010-TIOL-291-ITAT-AMRITSAR ]

Income tax - Sec 37 - expenses incurred on social and welfare schemes for smooth running of business is allowable deduction: ITAT [2010-TIOL-341-ITAT-MAD]

Exemption clause has to be considered with reference to the object with which it is enacted .If specific definition has not been given in the SEZ act, definition under exim policy can be considered which has taken even processing involving conversion of something to another with distinct name, character and use. Blending of Tea amounts to manufacture as per definition of exim policy and hence benefit of Sec 10 A can be claimed by assessee. [2010 (254) E.L.T 79 – (High Court - Ker].

Right to Information Act

CPIO not responded RTI applications. Appellate Authority dismissed appeal saying that demand is for issue of directions to Commissioner, Central Excise who is senior in rank. CPIO and also appellate authority failed to discharge their obligations under the Right To Information Act, 2005. Directions were issued to initiate complaint as well as proceedings for compensation. [2010 (254) ELT 287 Central Information Commission]

Administrative difficulties and shortage of staff cannot be the ground for denying the information as Right to information is being guaranteed by law of Parliament. [2010(254) E.L.T.390 (Mad.)]

Other

Evidence - Software material prone to spoilage during passage of time and retrieval of data may not be possible after long distance of time. Whenever such software material is seized, authorities should take care in first obtaining hard copy of the data stored therein; as far as possible in the presence of parties concerned, before keeping them in sealed condition. [2010 (254) ELT 385]

No steps were taken for 12 years by Deputy Director, ED, Mumbai to proceed with adjudication. When no fault attributable to petitioners for delay or no allegation of malice on their part, they are not responsible for delaying the proceedings. Absence of relevant record after 12 years is also to be considered. Department not allowed to re-open the same at such belated stage. [2010 (254) ELT 259 (Bom.)]

Show Cause Notices issued in 1974 to which no reply filed by assessee. Department also inactive till 27 years thereafter. No fault of assessee for delay and no

•

•

•

•

•

•

•

19

July - 2010

Shed the 'Largest Litigant' tag for government: the Centre and the States have acquired the 'government is largest litigant' tag, accounting for 70% of the 3 crore cases - over 2.1 crore pending in various Courts. Now, the Central Government has formulated a National Litigation Policy (NLP) to shed the tag 'Largest Litigant'. Thus, keeping in view the policy of the Central Government, the time has come to invite attention of the Chairman of the Central Board of Excise and Revenue to consider the necessity of taking policy decision not to file cases; wherein the duty/tax impact is negligible. [2010-TIOL-464-HC-MUM-CX]

Appeal was made to Delhi High Court against order of Debt Recovery Tribunal asking to deposit 25 % of dues before hearing on the ground that it was a BIFR company. Held that condition of pre deposit can't be relaxed as sick companies are not entitled to such benefit under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act. [2010 (254) ELT A21, Delhi High Court]

•

allegation of mala-fide intention. No justification in enormous delay in adjudication proceedings and department not allowed to re-open matter at such belated stage. If allowed it would cause serious detriment and prejudice on the assessee. [2010 (254) ELT 269, (Bom.)]

Manner of binding precedents and judicial discipline is summed up as decision of bench of larger strength is binding on bench of lesser / co-equal strength and bench of lesser quorum not to doubt correctness but to invite attention of Chief Justice to refer the matter to bench of larger quorum. Discretion of chief justice and decision of larger quorum bench to refer the matter to lesser quorum bench are exceptions carved. [2010 (254) ELT 196, SC]

Frivolous appeals by Customs and CE - Board should impress upon officers not to file such appeals: It has, therefore, become necessary for the Board to impress upon the departmental heads not to go for appeals and litigation wherein tax or duty impact is not substantial, otherwise it results in harassment to the assessee and creates unnecessary burden on the infrastructure of the Revenue department. The 'let the Court to decide' attitude needs to be given go by.

•

•

BREAKING NEWS..!!

•

•

•

•

•

EGoM finally recommends to deregulate petro prices; LPG up by Rs.35, th

kerosene up by Rs.3, diesel up by Rs.2 and petrol up by Rs.3.5 w.e.f. 25

June 2010 and opposition has reason to be united against government thand were successful on Bahrat Bandh on 5 July.

Government unmoved on Bandh, says All India Bandh is unjustified;

claims no rollback of Petro prices.

India's exports register 35% growth in May.

A senior Central Excise Officer in Goa arrested by CBI for accepting bribe.

CBI files charge sheet against Joint Commissioner (dismissed) V.

Jayaraman, half a dozen Assistant Commissioners, 14 Superintendents

and 6 individuals for cheating the Customs Department in availing

fraudulent duty drawback of Rs 14 Crore in Coimbatore.

20

July - 2010

•

•

•

•

•

•

•

•

•

PM inaugurates T-3 Terminal at Indra Gandhi International Airport, Delhi

Reserve Bank of India hikes repo & reverse repo rate by 25 basis point.

RBI asks banks to step up advances to micro units.

DRI seizes sander logs worth Rs 1.3 Crore, along with a truck;

Kolkata DRI seizes goods worth Rs 2.66 Cr, smuggled from China

Kolkata DRI seizes consumer goods worth Rs 4.4 Cr from import container officially carrying goods worth Rs 4.3 lakh

RIL agrees to supply gas to ADAG plants; plans to enter power, telecom sectors.

FIPB approves 17 proposals worth Rs 570 Crore

Indian Babus most inefficient in Asia (according to a survey)

21

July - 2010

m ntsMo eLighter

Good example why planning is required...

One Night 4 college students were playing till late night and could not

study for the test which was scheduled for the next day.

In the morning they thought of a plan. They made themselves look as dirty

with grease and dirt. They then went up to the Dean and said that they had

gone out to a wedding last night and on their return the tyre of their car

burst and they had to push the car all the way back and that they were in

no condition to appear for the test.

So the Dean said they could have the re-test after 3 days. They thanked

him and said they would be ready by that time. On the third day they

appeared before the Dean. The Dean said that as this was a Special

Condition Test, all four were required to sit in separate classrooms for the

test... They all agreed as they had prepared well in the last 3 days.

The Test consisted of 2 questions with a total of 100 Marks.

Q.1. Your Name............................ (2 MARKS)

Q.2. Which tyre burst? (98 MARKS)

a) Front Left

b) Front Right

c) Back Left

d) Back Right.....!!!

22

July - 2010

UPDATE

July - 2010

1. Special Economic Zonel Formationl Management & Operationsl SEZ Marketing

2. Export Oriented Unitsl Formationl Management & Operationsl Exit / De-bonding of Unit

3. EXIM / Export Benefits l DEPB / Drawback l Advance Authorization l EPCG Authorization

4. Direct & Indirect Taxation l Income Taxl Central Excise & Customs l Service Tax l VAT / CST

5. Knowledge Process Outsourcing l Central Excise & Customs l EOU's & SEZ's

6. Company Law Matters l Formation of the Company l FIPB / FEMA l ECB

7. International Freight Forwarding Logistics & Custom Clearance

8. End-to-End IT Solutions (With ERP Migrations)

l Comprehensive EOU Software l Software for SEZ Developers / Unitsl Specialize Excise & EXIM Solutionsl Localization of ERP Systemsl Data Migration Projects l Sub-Contracting Solutions

9. Business Review / Special Assignments / Feasibility Study

10. Internal Audits

O U R S E R V I C E S

UPDATE July - 2010

For private circulation only. While utmost care has been taken to provide upto date & current information, any person using this information may exercise sufficient caution.We shall not be responsible for any errors or omissions or any losses arising out of use of contents of this newsletter.

Reproduction of contents in any form needs prior written approval from Bizsol.

Yas

ho

da

- 02

0 -

2538

2945

14 -17, Suyash Commercial Mall, Near Pan Card Club, Baner Road,

Baner, Pune - 411 045. Tel.: +91 20 40702000/01 Fax:+91 20 40702002.

corporate@bizsolindia.com, www.bizsolindia.com

Nashik: +91 253 2340586, Mumbai: +91 22 30284141,

Indore: +91 731 2539736, Daman: +91 260 2243667,

New Delhi (Noida): Cell No.: +91 9818031199

Board of Directors Advisory Board Editorial Board

Venkat R. Venkitachalam Arun Sawant Manoj Malpani

Ashok Nawal Monica Joshi Nikhil Deotarse

Manoj Behede Pravin Arote Harshal Barde

Hemant Sonar Shweta Jagtap

Bizsolindia Services Pvt. Ltd.

Mr. R. Venkitachalam, Chariman, Bizsolindia releasing the study initiated by Bizsolindia on forthcoming Goods and

Service Tax (GST) along with Mr. Ashok Nawal, MD, Bizsolindia and Mr. Manoj Behede, Jt MD, Bizsolindia.

Mr. R. Venkitachalam, Chariman, Bizsolindia presenting on

“SEZ – The Concept” to ONGC Officials at Vadodara.

Mr. A. B. Nawal, Managing Director, Bizsolindia, delivering speech on “BE THE CHANGE, RATHER

THAN BEING IN CHAINS” in seminar at SCMLD, Pune.

Mr. Arun Sawant, CEO, Nasik Division presenting on

“SEZ-Benefits and Compliances”

to ONGC Officials at Vadodara.