Business in Russia 2011


Highly skilled foreigners will receive a work permit in Russia outside the quotas

Highly skilled foreigners will receive a work permit in Russia outside kvotPrinyat on Friday in the second reading of amendments to the Law on Legal Status of Foreign Citizens “suggested the State Duma Committee on Constitutional Law. The document submitted by the Government and passed on first reading in February 2009 the second reading, he seriously adjusted, said committee chairman Vladimir Pligin: changes relate to the order of highly skilled professionals, it is done on behalf of President Dmitry Medvedev for the development of innovative projects. 

Highly skilled foreigners will receive a work permit in Russia outside the quota of the Federal Migration Service (FMS), it will be enough written request referred to in the draft. Application form approved by the Government, it must be considered within 14 days. Now the paperwork for foreigners goes from 12 to 23 months, said a spokesman for Economic Development. 

The level of specialist qualification will be determined by the salary: it should not exceed 2 mln. per year. Government may reduce this amount, the document says. Minister of Economic Nabiullina reported that the amount may be reduced for those who will work in innograda Skolkovo reminds Pligin. 

Permission to highly qualified specialists will be issued for the entire duration of the employment contract, but no more than 3 years (now – 1 year) with unlimited number of renewals. Simultaneously with the resolution of a foreign specialist and his family and get a residence permit in Russia. The changes will affect and taxes: for highly skilled non-resident personal income tax rate will be the same as for the Russians – 13% (now – 30%). 

The amendments will enter into force on January 1, 2011 

Radical simplification of the immigration laws for foreign experts to the proposals contained in the Ministry of Economic Development of Russian Federation to improve the investment climate. This was a key requirement, explained ministry official: upgrading without a clever frame is impossible. 

Corrections preparing FMS knows the State Duma deputy. According to a representative of FMS Konstantin Poltoranin, taken as a basis the experience of Germany, where highly skilled migrants are separated from the other largest revenue. Highly skilled experts – only 2-3% of all foreigners who receive permission to work in Russia, with innograda Skolkovo law is not related, says Poltoranin. 

Companies in Russia with one voice welcome the change. Now the employer is obliged to annually submit to the FMS list of future foreign employees complained spokesman Vimpelcom Anna Aybasheva: companies already by May 1, had to send to the FMS list of employees, which she would like to see in themselves in 2011 in VimpelCom, According Aybashevoy, 13 foreign executives. The representative of TNK-BP said that the changes are unlikely to significantly affect the company’s activities: TNK-BP has a program of development of competencies and replacement of senior staff members are planned for a long time. In 2008, during a dispute between shareholders of TNK-BP (BP and Alfa-Group », Access Industries and Renova), problems with foreign staff began precisely with the immigration authorities. 

According to the president of Euroset Alexander Malis, excessively high levels of 2 million rubles. – Abroad, you can find good people, and for 1.5 million rubles. per year. 

An amount of 2 million rubles. optimal, objected Partner Baker & McKenzie Eugene Reisman, amendments in the best way affect the ability of foreigners to work in Russia, their number could grow by hundreds of people. But the level culture and characteristics of business development in Russia still differ significantly from those to which foreigners are accustomed to.

Introducing Harman Kardon Soundsticks III, the next generation of HK II that features an awesome sound entertainment. Harman Kardon has been the name for sound technology and cutting edge design for more than 50 years. Now, it comes back with the latest 2.1-channel PC speaker set called Harman Kardon Soundsticks III. This version works better than the previous one. Plug the 3.5mm stereo audio connection, it is compatible with other audio gadgets. You can have music experience through MP3 players, portable CD players, laptop, and others as long as they have line-level outputs.

The Design

Permanently collected by New York City’s Museum of Modern Art (MoMA), Harman Kardon SoundSticks III is celebrated to have an excelent design. Harman Kardon SoundSticks III appears in modern and futuristic design. Elegant black accents and a luminescent white LED glow are sophisticated enough to stand together with your latest gadget. The transparent speaker covers give a clear view inside the sound systems. The design is really universal. Men and women would love it.

The Sound

Unlike the other names that beautiful outside but nothing inside, Harman Kardon Soundsticks III is great to see and hear. You will listen a deep and an accurate bass due to its strong 20 watt subwoofer. Whether you hear pop or metal, all sounds good. Thank to the flexibility of the satellites, you can have most angles and directions that allow you to get the great sound all around the rooms.

Energy Efficient Equipment

Meet the ‘Green’ Harman Kardon Soundsticks III. The speaker system in Harman Kardon Soundsticks III is engineered to meet the energy efficiency demands. It employs incorporated on and off switch tool on the subwoofer volume control. As a result, you enjoy an awesome sound entertainment and glad to receive low power bill at the end of the month.

Harman Kardon Soundsticks III features:

1. Four, 1″ full-range transducers per channel powered by a 10-watt

amplifier for room-filling sound

2. One, 6″ low-frequency transducer powered by a 20-watt amplifier

for outstanding bass performance

3. Device compatibility using a stereo mini-jack output

4. Touch volume and mute controls

5. Subwoofer volume control

6. Angle-adjustable satellites

7. Stylish design

Advantages:

1. Great audio quality. Rich and realistic sound. Love it!

2. Super subwoofer with volume control.

3. Fashionable design. Stylish and unique.

4. Better cable quality.

5. Easy to use.

6. Energy efficient.

Disadvantages:

1. No remote control.

Inside the Box:

1. A pair of Soundsticks III satellites.

2. One powered subwoofer module.

3. A set of audio cables.

4. One single power cord.

Job work is a wide phenomenon in production of goods and services. It is encouraged as it helps in cost control, specialization and extension of industrialization.

A job worker is engaged in processing material, supplied by principal manufacturers on job work basis. Such job work is covered under Business auxiliary service attracting service tax, when the process does not amount to manufacture. However, Notification 8/2005-S.T. dated 01.03.2005 exempt such job work on the condition that the processed material is returned to the principal manufacturer for further manufacture, on which finally duty is payable.

Sometimes job work may amount to manufacture. In such situation, Central Excise duty is payable. However, such payment of duty is exempted under Notification 214/86 or under Cenvat Credit Rules, if the processed material is returned to the principal manufacture, on which finally duty will be paid by the principal manufacturer.

While doing the job work, a job worker uses some of his inputs/input services. The purpose of this paper to examine as to whether the job worker is eligible for cenvat credit on inputs and input services used in providing such exempted job work. The other question arises as to how he can utilize this credit or how can he pass on credit to the principal manufacturer.

Job work is a widely followed practice. In this practice a principal manufacturer sends raw materials to job worker for various processing. In this processing, the job worker uses some consumables, minor materials, capital goods and input services.

This process involved in job work may amounts to manufacture, in which case Central Excise duty is payable, or may not amount to manufacture, in which case service tax is payable under the head business auxiliary service.

When processed goods after job work is returned to the principal manufacturer, which is further used by the principal manufacturer in further production on which ultimately Central Excise duty is paid; such job work is exempted from payment of Central Excise duty vide Notification 214/86 or under Cenvat Credit Rules & Service Tax is exempted under Notification 8/2005.

The first issue which is to be decided as to whether the person providing this exempted job work can Cenvat Credit or Not?

The job-worker is carrying job-work in terms of Central Excise & Service Tax law and procedures. Central Excise or service tax law and procedure does not prohibit a job worker from utilizing other inputs or input services in addition to raw material received by him from the principal manufacturer. There is no bar under in Central Excise from using own material in addition to material supplied by the principle manufacturer as this view is also held in Shakti Insulated Wires Ltd  Vs. CCE [1999 (114) ELT 424] further, it is submitted that a jobworker, after using his own inputs used in the job-work of the goods/raw materials can clear the said goods/raw materials to the principle manufacturer without payment of duty after availing the Cenvat credit on the inputs used by him, provided, the duty ultimately gets paid by the principle manufacturer.

In other words, a job-worker can avail Cenvat credit on the inputs/input services used by him in undertaking job-work and after availing Cenvat credit on such inputs/input services can clear the goods to the principle manufacturer without payment of duty only when, the duty is finally paid by the principle manufacturer. In this case, the duty does not get paid at the job-worker’s end at the time of clearence of the goods, but ultimately gets paid at the manufacturer’s end.

In the instant case the final product after the job-work is liable to excise duty and not exempted from duty.

Similar issue arose before Tribunal in case of Jindal Polymers Vs. CCE, Meerut-III [2001 (135) ELT 657] where it was held that the job-worker is entitled to cenvat credit on inputs used in the manufacture or processing of polymer/polyester chips on job-work, cleared without payment of duty to the parent manufacturer for manufacture of polyester/polymer filament yarn under notification no. 214/86 as polyester/polymer filament yarn being chargeable to excise duty.

The issue was examined by the Larger Bench of the Tribunal in Sterlite Industries (I) Ltd. Vs. CCE, Pune [2005 (183) ELT 353] the larger bench of the Hon’ble Tribunal held that,

“In only case of Escorts Ltd. v. CC Ex, Delhi [2003 (160) E.L.T. 623 (Tri-Del.)] while interpreting Rule 57C of the Central Excise Rules, the Tribunal rejected the appellants claim of Modvat credit of duty paid on the inputs used in the manufacture of the parts, which were cleared without payment of duty to, appellant’s other unit under Chapter X procedure and utilised in the manufacture of tractor which were cleared on payment of duty by observing that since no duty was paid on the part at the time of clearance, Rule 57C will apply and no Modvat credit would be admissible. However, the said decision was subsequently reversed by the Supreme Court as reported in Escort v. C.C.Ex. [2004 (171) E.L.T. 145 (S.C.)]. For appreciation, we reproduce paragraphs 8 & 9 of the said decision.

  1. It is to be seen that the whole purpose of the Notification and the Rules is to streamlines the process of payment of duty and to prevent the cascading effect if duty is levied both on the inputs and the finished goods. Rule 57D(2), which has been extracted hereinabove, shows that in the manufacture of a final product an intermediate product may also come into existence. Thus in cases where intermediate product may also come into existence. Thus in cases where intermediate product comes into existence, even though no duty has been chargeable to Nil rate of duty, credit would still be allowed so long as duty is paid on the final product.
  2. In cases of manufacturers like the Appellants the final product is the tractor. The intermediate product would be parts which are manufactured for being used in the tractor. In such a case the parts would not be the final product. Thus Rule 57C would have no application. The mere fact that the parts are cleared from one factory of the Appellants to another factory of the Appellants would not disentitle the Appellant from claiming benefit of Notification No. 217/86-C.E., dated 2nd April, 1986. As stated above, the Notification itself clarifies that the inputs can be used within the factory of production or in any other factory of the same manufacturer.”

By applying the ratio of the above decision, it becomes clear that Modvat credit of duty paid on the inputs used in the manufacture of final product cleared without payment of duty for further utilisation in the manufacture of final product, which are cleared on payment of duty by the principal manufacturer, would not be hit by provision of Rule 57C. Inasmuch as, the matter stands decided by the Honourable Supreme Court.

Similar view has also been taken in Bajaj Tempo Ltd. Vs. CCE, Pune [1994 (69) ELT 122], J.K. Synthetics Ltd. Vs. CCE, Jaipur, [1996 (87) ELT 389.

In Shkti Insulated wires Ltd. Vs. Commissioner of Central Excise & Custom Mumbai-V [2002 (149) ELT 668] the Hon’ble tribunal held that,

2.The appellant? is engaged in the manufacture of paper covered copper strips falling under chapter sub-heading 8544 of the Central Excise Tariff Act. They manufactured the said products on a job work basis and also on their own account. The appellant sometimes received the inputs i.e. copper wires and/or rods from their principal manufacturer which, after processing by the appellant, are returned to their principal manufacturer under the provisions of Rule 57F(3) of the Central Excise Rules. When they clear such types of materials after processing, they do not pay duty as the duty on the final products are paid by the principal manufacturer. As far as the goods i.e. paper covered copper strips manufactured and finally cleared by the appellant on their own account, they pay duty on clearance. Show cause notice was issued charging the appellant that Modvat credit obtained by the appellant was inadmissible on the ground that they have availed inadmissible Modvat credit on insulated craft paper used in the processing of copper wire/rods received under the provisions of Rule 57F(3) which were further processed and cleared as paper covered copper strips without payment of duty under the provisions of Rule 57F(3) as it comes under the provisions of Rule 57C of the Rules. The Assistant Commissioner confirmed the demand. On appeal, the appellate authority confirmed the order-in-original. Hence the present appeals.

3.The learned? advocate for the appellant invited my attention to the judgment of the Tribunal in the case of Jindal Polymers v. CCE – 2001 (135) E.L.T. 657 (T) = 2001 (43) RLT 680 where under similar circumstances the two member bench, after referring to the earlier judgment of the Tribunal, has upheld the claim of the job worker. Learned DR reiterates the impugned orders. I have considered the rival submissions and I am of the view that the said judgment is squarely applicable to the present case. I therefore allow the Appeal E/3264/2000, setting aside the impugned order with consequential relief.

4.As far as the? other Appeal E/3265/2000 is concerned, the inputs which the appellant manufactured have been captively consumed for the manufacture of final products which have been cleared by the appellant themselves and the said final product has also been cleared on job work basis. The circumstances, in my view, is also covered by the judgment of the Tribunal in Jindal Polymers case (supra). Hence this appeal also stands allowed, ordering consequential relief, after setting aside the impugned order.

It is to be noted that the case has been affirmed by the Supreme Court as reported in [2003 (151) ELT A89]. The case has also been affirmed by larger bench of the Tribunal Judgment in case of Sretlite Ltd quoted supra.

In Bharat Friz Werner Ltd v. CCE [2005 (191) ELT 1009], Hon’ble Tribunal held that,

“We have gone through the records of the case carefully. The appellants received certain dutiable inputs and manufactured machines. They utilised these machines for job work. After job work, the goods were sent under 57F(4) Challan to the principal manufacturers. The department is of the view that the machines manufactured by the appellant are exclusively used in the manufacture of the exempted goods. Therefore, the inputs are not entitled for Cenvat credit. In other words, the department is equating goods sent under 57F(4) challan with exempted goods. This is not correct. The goods, which are sent to principal manufacturer, are not exempted goods. Ultimately, they would be cleared on payment of duty. Hence, the reasoning adopted by the department is not correct. Moreover, all the case laws cited by the appellant are very relevant in deciding this issue. In the case of KSH International, the Tribunal rejected the Revenue appeal and held that clearance of goods on job work does not amount to clearance under full exemption or at Nil rate of duty. The ratio of this decision is squarely applicable to the present case. Under these circumstances, we allow the appeal and set aside the impugned order.”    

Recently the proposition has been followed in following case:

  1. CCE Banglore v. South India Wire Products [2008 (228) ELT 290]
  2. R M Polypack v. CCE, Allahabad [2008 (226) ELT 591]
  3. CCE Mumbai v. National Standard [2008 (226) ELT 431]
  4. Shri Uma Foundaries v. CCE Kolkata [2008 (222) ELT 317]

In view of these binding judgment and settled position of law, following legal principles emerges:

  1. Goods cleared under job work exemption are not exempted goods, as ultimately duty is paid by the principal manufacturer.
  2. The job worker is permitted to use his own capital goods/inputs/input services in the job work.
  3. When the job worker uses his own capital goods/inputs/input services in job work, he is entitled to take credit of duty on those capital goods/inputs/input services.

In view of this I am of the opinion that the a job worker, in abovesaid cisrcumstances is eligible to take Cenvat Credit on inputs and input services used in doing job work, on which ultimately duty burden will be discharged by the principal manufacturer.

As it is obvious that a job worker can take credit, the next question arises as to how the credit is to be utilized. In one situation the job worker may also be manufacturing on his own behalf, and he can utilize the credit for payment of duty on his own manufactured goods. If this is not possible, he may not avail the Service Tax exemption notification, and may opt to pay service tax on job charges, thereby passing on Cenvat Credit.

NOTIFICATION 8/2005-ST DATED 01.02.2005- CAN IT BE IMPOSED ON SERVICE PROVIDER:

It is a settled principle that an conditional exemption notification cannot be imposed on an assessee. The view has been upheld by Tribunal in case of Remedies Pharma v. CCE [1998 (101) ELT 344], CCE v. VIP Industry [1998 (103) ELT 95], Steelco Gujrat v. CCE [2000 (122) ELT 381] and numerous other cases.

The Notification 8/2005 is a conditional notification, conditions being,

“Provided that the said exemption shall apply only in cases where such goods are produced using raw materials or semi-finished goods supplied by the client and goods so produced are returned back to the said client for use in or in relation to manufacture of any other goods falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), as amended by the Central Excise Tariff (Amendment) Act, 2004 (5 of 2005), on which appropriate duty of excise is payable.”

As the exemption is conditional, it is the option of the assessee either to avail the exemption or not. In view of this, I am of the opinion that an assessee may refuse to avail the benefit of this notification and opt to pay service tax on output service of job work.

In view of these, the job worker is entitled to take cenvat credit on inputs, capital goods and input services while providing job work. Such credit is available, irrespective of the fact that whether he avails the benefit of exemption notification 8/2005-ST dated 01.03.2005 or not.

The other option available to the assessee is not to avail service tax exemption 8/2005-ST dated 01.03.2005 and avail cenvat credit in inputs, capital goods and input services. In this case the job worker shall be paying service tax on job work done.

 Rajesh Kumar, Advocate

High blood pressure especially during the period of pregnancy is not good. Try to take actions to lessen this if you want to deliver a healthy baby. Hypertension or high blood pressure is most common to pregnant women since the veins and strength of a woman is weakened once she carries a heavy baby in her womb.

This can be considered a passing health issue if the pregnant woman experiences this for the first time.  Otherwise, the pregnant woman must get a regular check up with the doctor so as to not to affect the child during delivery as well as not to damage the vital organs of the body.

In this state of pregnancy, women must be well informed of her health conditions because it can determine the delivery method later on.  In most cases, once the condition becomes severe, a caesarian operation is mostly preferred.

These are the proper ways to prevent high blood pressure and maintain healthy blood pressure during pregnancy. The following tips can be of great help to maintain healthy blood pressure.

1.    Give solutions to stress, anxiety and pressure by leaving more tedious tasks. If doing household chores, do only the light ones. Keep more time to relax your mind. Do some exercises but not to the extent of doing gym activities. Walking is a perfect exercise for a pregnant woman. You can do this either by walking around the garden or inside your house or you can have a mall tour as the case may be. Or, you can listen to your favorite music while having your relaxing moments in your garden or in the patio.

2.    Take protein rich foods for your meal. For breakfast, be sure you have eggs in the table because these are rich in protein and can repair any damaged tissue in the body. For lunch and dinner, always have vegetables and fish because these are rich in food nutrients needed by the body. Always have fresh fruits in your meals too. Avoid eating fatty, salty and sugary foods as well as sodium rich foods.  These can increase your cholesterol level and increase blood pressure.

3.    Drink enough water not alcohol. The minimum water requirement is six to eight medium sized glasses in a day. Fruit and vegetable juices are also good to the health.

4.    Avoid caffeine. Since this is a stimulant, more intake of caffeine makes the heart beat faster. In such a case, the blood pressure is elevated.

Follow these tips to maintain healthy blood pressure and to prevent risks to a more complicated pregnancy.  Pregnant women with high blood pressure can have premature delivery and low birth weight for the baby. This condition is dangerous not only to the baby but to the mother as well.
Do it in the earliest possible time. Don’t wait for high blood pressure to be detected in the later part of the pregnancy.  If such a case happens, complete bed rest is often recommended and there should be regular monitoring of blood pressure.

When there is Punjabi’ Food?  where is heart!If you craves for rich ‘butter-chicken’ and mouth starts to water at the mere sight of those oil-rich ‘punjabi’ delicacies…you are at high risk of getting heart problems.

Cardiovascular disease has become a major health concern in India. Particular in Punjab. Presently, its increasing prevalence among the youth is becoming a serious concern even for the experts dealing with heart-related problems for decades.

In Punjab, the mortality rate due to heart diseases is comparatively high than recorded in other parts of the country. It has made cardiologists worried and they are searching for a solution to this problem. With 100 million people affected by heart-related diseases, India is set to be the heart disease capital of the world by 2010. And this fact has made country’s leading cardiologists worried.

Punjabi diet is very rich compared to (the diet and food) the population living in southern part of the country. It is for this reason that we are witnessing people at young age getting heart attacks.  We have seen people from Punjab who had migrated to the west had higher prevalence of heart diseases 10-15 years back. Now that same culture has come to our country and today we find the prevalence of this disease has increased manifolds in our country.

Presently, latest healthcare facilities are being used to deal with cardiovascular diseases in Punjab.

The deaths due to cardiovascular disease in India are expected to rise from 1.17 million recorded in 1990 to 2.03 million by approximately 2010.

Mortality rate is high in Punjab accounting for about 49 percent of all deaths.

Earlier, the heart related illness were noticed less among rural population. But as urbanization of rural areas is taking place, the urban-rural difference is decreasing and more and more rural people are getting this disease.

One can do three things, for preventing heart diseases.
1.  Eat less fried food, less butter and ghee.
2.  Exercise daily for around 45 minutes.
3.  Reduce stress in life. Because of the nature of the work, we have become over stressed. So things like yoga, meditation and entertainment help a person to relax.

Many women look forward to the next issue of their favorite magazine. They cannot wait to read the latest celebrity gossip or find out how to host the perfect Christmas dinner. Canadians can find interesting articles on a variety of topics in the women to women magazines that are available. Women who subscribe to one or more magazines can enjoy the convenience of having each issue delivered to their door. The following is a look at the many different kinds of magazines that women tend to enjoy.

Fashion Magazines for Women of All Ages

Many women enjoy spending time browsing through fashion magazines because they like to see what new styles the stars are wearing. Even though most women cannot afford to purchase the latest designer clothes they can usually find affordable imitations available online. Fashion magazines help women to learn how to put different outfits together and save money on shoes, clothing, jewelry and makeup.

Lou Lou is one of the hottest fashion magazines for young Canadian women. The pages of the magazine are loaded full of photographs and descriptions of trendy outfits, shoes, bags and accessories. Women can find out how to get amazing deals on the items they love so they can look just as fantastic as their favorite celebrities do. InStyle is another terrific women to women magazine for people who love to shop. The magazine gives women plenty of new outfit ideas for everyday wear and special occasions.

Women’s Health Magazines

Health magazines provide plenty of information on medical research findings that can improve the lives of men, women and children. Women who are concerned about their health and the health of their loved ones can find out which foods, vitamin supplements and exercise routines can boost the immune system and reduce the risk of heart disease, diabetes, cancer and other diseases. Women’s health magazines also feature information on stress reduction and weight loss.

Best Health Magazine provides Canadian women with information on health and wellness. The women to women magazine includes articles that raise awareness on important local health issues. It also covers the topics women care about the most such as relationship matters. Self Magazine helps women to improve their health, fitness level and self-esteem. The publication features exercise routines, stress reducers and delicious food and drink suggestions for women who want to stay slim and fit.

Magazines for Moms

Family oriented women magazines provide mothers with quick parenting tips, decorating ideas and recipes. The publications offer easy solutions for modern day mothers who enjoy cooking, making crafts and holiday entertaining. Whether a woman is at home raising young children or she is juggling work and family time, she can find many useful pieces of advice in family magazines.

Today’s Parent Magazine offers seasonal craft activities for kids, reviews on popular parenting books, vacation ideas and travel tips. The publication offers information on childhood health and development as well as common safety issues. Mothers can find articles on everything from household organization to school lunch ideas. Good Housekeeping is another terrific family magazine that features tips and ideas for moms. The magazine features beauty tips, home decorating ideas and interesting celebrity interviews.