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'Firms with ISO 9000 certification are allowed to rely on in-house test results'

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T N C Rajagopalan
Last Updated : Jan 25 2013 | 5:33 AM IST

By mistake we had filed a free shipping bill instead of the DEEC shipping bill. How can the matter be rectified?
According to CBEC Circular no.25/2005-Cus dated 6.6.2005 in case of manufacturer-exporters, in-house test results may be relied upon for the purpose of exports under the various export promotion schemes, provided the manufacturer-exporter has been awarded any of the ISO 9000 series certifications. Based on this circular you may seek conversion of the free shipping bill to DEEC shipping bill, under Section 149 of the Customs Act, 1962. Alternately, if Central Excise or Customs have drawn samples at the time of exports, you may ask for testing of the same and, based on test reports duly certified, seek the conversion of the shipping bill. Customs may still reject your request based on CBEC Circular no.36/2010-Cus dated 23.09.2010, but in my opinion, you stand a fair chance of winning in appeal.

According to the notification no. 27/2012-CE (NT) dated 18th June 2012 relating to refund of Cenvat Credit, the exporter has to submit a certificate signed by the Auditors (Statutory or any other)...What do the words ‘any other auditor’ mean in this notification?
It means that any Chartered Accountant qualified to audit the books of accounts but who does not certify the annual accounts of the entity under the Companies Act, 1956 or any other statute can also certify the statement.

According to Section 206AA of the Income Tax Act, 1961, in case the deductor does not have PAN No. of the deductee, then TDS (Tax Deduction at Source) has to be deducted at 20 per cent instead of 10 per cent. However, as per Section 90(2) of the said Act, in case rate of deduction of TDS as per treaty is less than the above rate, then the rate mentioned in the treaty should prevail. The Central Board of Direct Taxes (CBDT) Circular No 333 dated 2-04-1982 says that the provisions of Double Taxation Avoidance Agreements (DTAA) will prevail over general provisions of the Income Tax Act. What will be the correct position, as both the sections appear contradictory? Secondly, at the time of filing of return, only 20 per cent rate without PAN is available and in case the assessee has filed the return by paying 20 per cent after the due date, can he file a revised return of his TDS and claim refund for the excess?
My opinion is that in case of DTAA, where a treaty exists, the provisions of the treaty shall prevail. The rates mentioned in treaty for deduction of tax at source shall apply. In other cases, where no treaty applies, Section 206AA will apply. Where the payee does not furnish his PAN to the payer, the payer shall deduct tax at 20 per cent as per Section 206 AA. After filing of TDS return, if the payee furnishes his PAN, then the payer can correct his ETDS return and mention the PAN of the payee, so the payee shall get the TDS credit in his Form 26AS and claim it in his return of income.

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First Published: Oct 16 2012 | 12:55 AM IST

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