Taking off from where I left last…….‘marks-for-sports’. How is ‘ marks-for-study’ working ? yes, it works but there is a flaw here too. Rather than understanding the concepts and enjoying the learning process, focus is on cramming and gaining marks so that you get into colleges …..again not to study and learn but to enrol for a coaching class or clear some exam ! There is a mad rush to score more and more marks, so much so that even 100% is not enough for some of the country’s so-called elite colleges. Can you believe this rush is more from the parents rather than the children ? The other day I was speaking to my neighbour who is a home-tutor. She is more than that.She is a teacher, mentor, agony-aunt,
counsellor – all rolled into one. During our conversation, she threw up her hands and said “It is easy to handle the children but not their parents!” She says the pressure to fare well in academics and score high marks is so intense that children fear to face their parents. She recalled a case where a girl was trembling to meet her parents, because she had ‘only scored 23 out of 25’ ! She was pushed to tuitions to ensure she scores a perfect cent. I was shocked when I heard many such anecdotes from her including that often parents resort to physical punishment too for not performing upto their expectations. Can you believe this behaviour is more from the so-called elite parents who are ivy-league educated and occupy senior management positions in well-known corporates ? They have reached somewhere in life (or so they think !!) and want their children to go beyond. They push them without understanding which field the child is actually interested in. Unfortunate that we watch and applaud movies like ‘3 Idiots’ but ignore the message that ‘Marks Is Not All in Life’. This Teachers Day (5th September), let us all pledge to create happier and more meaningful learning environments for our children and youth. This could be through traditional schools or open schools or sports schools, art schools…whatever that interests the child. Let us school ourselves first with open minds and large hearts !!
As you run through the regulatory updates in this 155th issue of LexSpeak, may I remind all our corporates to gear up for holding their Board Meetings and AGMs on time, within September and comply with the law ?
Should you wish to refer to any of our older issues of LexSpeak, do visit our Resource Centre at sharadasc.com.
Wishing all of you a joyous and environment-friendly Gowri-Ganesha festival. May peace, wisdom and happiness be with you !!
The Board has examined whether contractors providing the service of construction of tube wells for the Government are liable to pay service tax or not. The phrase ‘water supply’ has been clarified to include activities like drilling, laying of pipes, valves, gauges etc, fitting of motors, testing etc. so as to eventually result in the supply of water. Similarly the word ‘plant’ need not necessarily involve a huge assembly of machinery and apparatus.
Thus the exemption under the entries at Serial No. 12(e) and 25(a) of notification 25/2012-Service Tax dt. 20.06.2012, will cover a wide range of activities / services provided to a government, a local authority or a governmental authority and will include the activity of construction of tube wells.
The transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration is deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made and therefore will be liable to VAT. In terms of section 66E(f) of the Finance Act, 1994, transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods is a “declared service” and hence liable to service tax.
On receiving a number of representations, CBEC has clarified that to determine whether a transaction is a sale or a declared service, the criteria laid down in various judgments under respective Sales Tax /VAT and Service Tax legislations must be relied upon. A common criteria cannot be used in all cases. Hopefully such dilemma will not arise under GST!
SEBI has issued new set of FAQs with a view to guide market participants on SEBI (Alternative Investment Funds) Regulations, 2012. This circular provides simple explanation or clarifications of terms/concepts related to Alternative Investment Funds (AIF).
CBDT has issued a new set of FAQs relating to the Income Declaration Scheme, 2016 for clarifying the doubts and concerns as raised by the stakeholders.
With effect from 13th August, 2016, the Central Government has amended the Foreign Trade Policy (FTP) 2015-2020 with respect to Removal of mandatory warehousing requirements for EOUs, STPIs, EHTPs etc.
• An EOU engaged in agriculture, animal husbandry, aquaculture, floriculture, horticulture, pisciculture, viticulture, poultry or sericulture may be permitted to remove specified goods in connection with its activities for use outside the premises of the unit.
• Transfer of manufactured goods from one EOU / EHTP / STP / BTP unit to another EOU / EHTP / STP / BTP unit is allowed with prior intimation to concerned Development Commissioners of the transferor and transferee units as well as concerned Customs authorities, as long as the transfer complies with certain commercial documentation.
• Existing EHTP / STP units may also apply for conversion / merger to EOU unit and vice-versa. In such cases, units will avail exemptions in duties and taxes as applicable
WTO Agreement on Trade Facilitation (TFA) requires each WTO member to establish National Committee on Trade Facilitation (NCTF) to facilitate both domestic co-ordination and implementation of TFA provisions. Consequent to the recent ratification of the TFA in April 2016, the Government has decided to constitute a NCTF vide order dt. 11th August, 2016.
NCTF to be chaired by the Cabinet Secretary and its Secretariat is to be housed within the CBEC, in the Directorate General of Export Promotion, New Delhi. The order broadly covers aspects relating to the Constitution and Establishment of NCTF which are as follows:
• A three tiered structure for monitoring the implementation of the TFA consisting of National TF committee; a Steering Committee; and Working Groups.
• The composition of NCTF and the terms of reference has been given in detail.
• Composition of the Steering Committee and detailed Terms of Reference for each level of the Committee has been covered.
• Formation of Working Groups by the Steering Committee for dealing with specific trade facilitation issues.
Cost, Insurance and Freight (C.I.F.) value of imported consumer electronic items except hearing aids and life-saving equipments, apparatus and appliances and parts thereof at any one time by any person through post or otherwise for personal use has been enhanced to Rs. 50,000 as against Rs. 2,000.
Note: The contents of this
Newsletter are only a summary and has not dealt with any issue in detail. Any action
taken or proposed to be taken must be in consultation with professionals and not
merely based on the articles / news updates. Lex Valorem disclaims all liability on action taken without professional advice.
S. C. Sharada & Associates, Company Secretaries. #405, 7th Cross, IV Block, Koramangala, Bangalore – 560 034 sharadasc.com Phone : +91 80 25534374 , +91 80 25536618 Email: [email protected]