Tax liability in respect of hire-purchase transactions under various State laws is discussed at length in this issue. The article argues that there is double taxation on processing fees/documentation charges and that standardization of practices and uniformity is the need of the hour. In Central Excise, abatement quantum has been revised for several electronic items for the purpose of MRP based valuation and Bombay High Court has held that service of notice by speed post is not sufficient compliance of law. In Service Tax, new rules have been notified for settlement of Service Tax cases and for compounding of offences.
New revamped exemption scheme for refund of SAD has come into force from 1st of June in respect of changes in Customs. Indian Finance Ministry has clarified that import prohibitions for parallel imports do not apply for all infringements under Trademarks Act, Designs Act, Patents Act, Geographical Indications of Goods (Registration and Protection) Act and the Copyright Act. Ministry of Commerce has released its Annual Supplement to Foreign Trade Policy. This year, new scheme viz., post-export EPCG scheme has been launched and all duty credit scrips have been made usable for payment of Central Excise duty as well. Under Income Tax, new rule prescribing application of 'other method' for computation of arm's length price in relation to international transactions has been notified.