Import of HR Coils restricted under Import Policy and allowed only against licence-Import of goods falling under Headings 7326 90 99, 8483 10 99 & 8708 10 90 also restricted-DGFT Notification No. 63 PM says India will use fiscal, monetary, public investment and exchange rate measures to tackle global financial meltdown crisis-no effort would be spared to "neutralise" to the "maximum" its adverse impact on India Sensex Up by 500 Points in intra day trading as bargain hunters enter the market Anti dumping duty imposed on import of Acrylic Fibre from Korea RP & Thailand-Customs Tariff Notification No.123 Singer Michael Jackson converts to Islam and changes his name to Mikaeel Debit of advance authorization/DFIA based on balance CIF value of inputs in freely convertible currency-DGFT Circular No.41 Export of edible oils permitted in branded consumer packs of up to 5 Kgs, subject to a limit of 10,000 tons during the next one year up to 31st October, 2009- Export of fish oil allowed freely-DGFT Notification No.60 DTAA between India and Tajikistan signed Authority for Advance Rulings rules the tax payable on the long term capital gains arising on sale of equity shares of Foseco India Ltd., being listed securities, will be 10 per cent of the amount of capital gains as per the proviso to section 112(1) of the Income-tax Act-While calculating the amount of long term capital gain chargeable to tax interest paid by the applicant to the shareholders of Foseco India Limited as per the directives of the SEBI will also be treated as a part of the cost of acquisition of the shares-AIT-2008-416-AAR Authority for Advance Rulings rules the income derived by the applicant on the purchase in India and export of gold jewellery accrues or arises in India and is taxable in India-AIT-2008-417-AAR Exchange Rate for imported goods is Rs 74.03 Per Pound Sterling and Rs 51.22 Per 100 Yen-Exchange Rate for export is Rs 72.45 Per Pound Sterling and Rs 49.94 Per 100 Yen-Customs Non-Tariff Notification No.128 100 per cent EOUs allowed to export non-basmati rice-DGFT Notification No.59 Customs duty of 5 per cent imposed on import of Pig Iron, spiegeleisen, semi-finished products, flat products & long products Import of Crude Soyabean Oil subjected to 20 per cent customs duty- no change in import duty on refined soyabean oil-Customs Tariff Notification No.122 Time-limit for filing refund of service tax extended to 6 months-Service Tax Notification No.32 Tariff Value for import of Brass Scrap is 3525 and for poppy seeds 5206-Customs Non-Tariff Notification No. 127 CBEC clarifies the entire amount of duty paid by the manufacturer, as shown in the invoice would be available as credit irrespective of the fact that subsequent to clearance of the goods, the price is reduced by way of discount or otherwise-Central Excise Circular No.877 SC Ruling-the entitlement of benefit in terms of Section 32AB, Section 80HH and Section 80I of the Income Tax Act- conversion of Jumbo rolls of photographic films into small flats and rolls in the desired sizes amounted to manufacture/production-AIT-2008-413-SC SC Ruling-Whether any "gift" arose in terms of Section 2(xii) of the Gift-tax Act, 1958 on the allotment of rights issue by the appellant company to its shareholders vide Board's Resolution- Whether there was any element of "gift" as defined under Section 2(xii) in the appellant issuing Bonus shares in the ratio of 1:23-AIT-2008-412-SC HC Ruling-Income Tax-"reserves" arising out of the acquisition of the business of Tata Cellular Limited could never have the character of "income" in the hands of the petitioners-pre-requisite condition contained in proviso to section 147 to enable the re-assessment to be opened after period of 4 years have elapsed have not been met-AIT-2008-410-HC HC Ruling-Central Excise- valuation of the goods for the purpose of excise duty and whether excise duty was chargeable under Section 4 or Section 4A of the Central Excise Act 1944-while construing rule 3, who are excluded are only the institutional or industrial consumers as explained in Rule 2A and the industrial or institutional consumers in terms of the proviso to rule 2(p) for the purpose of chapter-II are the same-If the person who purchase the prepacked commodity not directly from the manufacturer or packers, they are consumers and the declaration will be of no effect-AIT-2008-408-HC Government considering imposition of import duty on steel Bad News for Consulting Engineers- whether turnkey contract can be vivisected?- The conclusion in Daelim case on the point, prima facie, being not in accordance with law, matter goes to Larger Bench-AIT-2008-405-CESTAT Larger Bench of CESTAT rules Credit is admissible on an input service relating to the business-AIT-2008-407-CESTAT credit of the service tax paid on the outdoor catering (canteen) service is admissible as input service under Rule 2(l) of the Cenvat Credit Rules, 2004-AIT-2008-406-CESTAT The payment for use of "services for MTNL/other companies via the interconnect/port/access/toll by the assessee would not fall within the purview of payments as provided for under section 194J of the Act, so as to be eligible for tax deduction at source-The interconnect charges/port access charges cannot be regarded as fees for technical services-AIT-2008-404-HC Computation of Value under Section 14 for Levy of Export Duty - Customs Circular No. 18 Export duty of 8 per cent notified in place of earlier rate of Rs. 200 per tonne on export of iron ore fines-Customs Tariff Notification No.121 service tax paid under Section 66A is available as 'input credit' under Cenvat Credit Rules, 2004 provided the said services are used as input services by the manufacturer or producer of final products or a provider of output taxable service-Service Tax Trade Notice No.43/2008

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VAT has been introduced in

KARNATKA VAT

VAT RULES
VAT ACT + SCHEDULE
VAT FORMS

Karnataka Assembly has passed VAT Amendment Bill,2006 on 29th March 2006.

The Bill inserts a new schedule on Work Contracts. The Bill lists 23 work contracts that will be taxed under VAT.

Tax on work contracts like bottling, canning, packaging of goods, dyeing and printing of textiles, lamination, rubberisation, rewinding of electrical motors, supply and erection of electrical transmission towers, fixing of shahabad slabs and stone, tyre retreading will be lowered to four per cent.

Work contracts such as electroplating, erection of structural works, printing, programming of computer software, service and maintenance of IT products, sizing and dyeing of yarn, installation of pumpsets and renewable energy devices will continue to attract four per cent tax. Processing and supply of jewellery will continue to attract one per cent tax.

The VAT Bill proposes to exempt rice, paddy, wheat, pulses and flour, animal shoes and certain parts of animal-driven carts from tax.

The Bill proposes to reduce tax to four per cent on poha of maize, spent and cut dry chillies and dry chilly seeds, handmade soap, surgical gloves, all compact discs, cold tar, certain test and measuring equipment and certain goods of daily necessity sold by canteen stores department.

April 3, 2006. Karnataka Government has deleted several products including cell phones, multi-media speakers, and a wide-range of telecommunication equipment from list of IT products taxable at four per cent VAT rate.

Microphones, multi-media, speakers, headphones, telephone answering machines, walkie-talkie set, cordless handset, car telephone, marine radio communication equipment, amateur radio equipment, cellular telephone, radio pagers, demodulators, electrical capacitors, electrical resistors, switches, connectors, data, graphic display tubes, permanent magnets and articles and electrical apparatus for line telephony or line telephony which were taxed at four per cent will attract a levy of 12.5 %.

April 3, 2006.Karnataka Government has lowered VAT on certain goods, including plastic items, electrical devices and wrist watches, sold by the canteen department to defence forces from 12.5 to four per cent.
The following commodities will be charged four per cent VAT.

Toilet articles, tooth brush, sanitary napkins, toilet brushes and toilet paper, washing soap, powder and flakes, detergents, laundry whiteners, stain busters and stain removers; Tiffin boxes, thermos flasks, thermoware and casseroles; Electrical fans, iron boxes and immersion water heaters; Mosquito repellents including coils and electrical devices; Articles of plastic; Suitcases costing not more than Rs 2,000 per piece; suitcase covers, school bags; locks, Plastic moulded furniture; wrist watches costing not more than Rs.1,000 per piece; coffee powder including french coffee and instant coffee; instant mix, sambar and rasam powder.

with effect from 1st April 2006