The Reader

From: CABHUPENDRASHAH <ca.bhupendrashah@yahoo.co.in>
Subject: [GlobalIndianCAs] TDS - lower deduction or non-deduction certificate – CBDT Instructions
To: GlobalIndianCAs@yahoogroups.com
Date: Tuesday, 29 December, 2009, 2:06 PM

 

CBDT Instruction No. 6/2009, Dated: December 18, 2009

TDS - lower deduction or non-deduction certificate – CBDT Instructions

BOARD had earlier instructed that certificates for lower deduction or nil deduction of TDS u/s 197 are not to be issued indiscriminately and for issue of each certificate, approval of the JCI/Addl. CIT concerned need to be taken by the Assessing Officer (AO). It was also instructed that power of issue of certificates under Section 197 would ordinarily be exercised by the officers manning TDS Administration.

It has been brought to the notice of Board that the AOs are issuing certificates for lower or non-deduction of tax at source under Section 197 indiscriminately, in contravention of relevant Income Tax Rules and Instructions.

Now CBDT directs that in addition to the earlier instructions, prior administrative approval of the Commissioner of Income Tax (TDS) shall be taken (where the cumulative amount of tax foregone by non-deduction/ lesser rate of deduction of tax arising out of certificate under Sec. 197 during a financial year for a particular assessee exceeds Rs. 50 lakh in Delhi, Mumbai, chennai, Kolkata, Bangalore, Hyderabad, Ahmedabad and Pune Stations and Rs. 10 lakh for other stations. Once the CIT (TDS) gives administrative approval of the above, a copy of it has to be endorsed invariably to the jurisdictional CIT also.

CBDT Instruction No. 7/2009, Dated: December 23, 2009

TDS on Commission received by travel agents from airlines - CBDT clarifies

THE CBDT has communicated two High Court judgements to the field formations. The High Court decisions held that commissions and supplementary commissions received by the travel agents from Airlines are liable to tax deduction at source under Section 194H and in case of default the mandatory interest under Section 201(1A) is leviable.

CBDT F. No. 275/70/2009- IT(B) Dated: December 22, 2009

Export Duty on Iron Ore - Steel Lobby vs Ore Lobby; Steel wins:

THE Notifications were issued on 24th December and as DDT would appear only after four days, we carried a story on the issue on 25th December in our Breaking News - Export Duty on Iron Ore levied .

To recap the issue briefly:-

By Notification No. 129/2008-Customs, dated the 7th December, 2008, iron ore fines falling under Heading No. 11 of the Second Schedule to the Customs Tariff Act, were exempted from the whole of Customs Duty.

By Notification No. 79/2008-Customs, dated the 13th June, 2008, a 5% effective duty was fixed on iron ores and concentrates, all sorts (except iron ore fines), falling under Heading No. 11 of the Second Schedule to the Customs Tariff Act, 1975.

What is done Now:

1. Notification No. 129/2008-Customs, dated the 7th December, 2008, is rescinded - NOTIFICATION NO. 145/2009-CUSTOMS Dated: December 24, 2009

2. A 5% effective rate (instead of nil) is prescribed for iron ore fines falling under Heading No. 11 of the Second Schedule to the Customs Tariff Act - NOTIFICATION NO. 146/2009-CUSTOMS Dated: December 24, 2009

3. Notification No. 79/2008-Customs, dated the 13th June, 2008, is amended to make the effective rate 10% (instead of 5%) for iron ores and concentrates, all sorts (except iron ore fines) - NOTIFICATION NO. 147/2009-CUSTOMS Dated: December 24, 2009

In effect the effective rate of duty on iron ore fines is 5% (instead of nil) and on iron ores and concentrates, is 10% (instead of 5%).