Reassessment in view of retrospective amendment not justified

IT : In view of retrospective amendment, initiation of reassessment to disallow section 80-IA deduction to assessee was not justified

Revenue’s appeal to HC won’t be maintainable which was filed ignoring Instruction No 3/2011 directiv

IT : Where tax effect involved in appeal filed by revenue was below monetary limit prescribed by Board in Instruction No. 3/2011, dated 9-2-2011, impugned appeal was not maintainable

Actual payment of tax isn’t a pre-condition to be a resident of partner country, as per India-UAE DT

IT/ILT : As per Article 4(1) of Indo-UAE DTAA, to be a resident of contracting State, it is not necessary to pay tax there; mere right of contracting State to tax such person by reason of domicile, place of management or incorporation is sufficient

Reassessment in view of retrospective amendment not justifies

IT : In view of retrospective amendment, initiation of reassessment to disallow section 80-IA deduction to assessee was not justified

India’S Lignite Miner Nlc To Import Coal For Thermal Power Projects

13th May 2013

KOLKATA (miningweekly.com) - Indian miner Neyveli Lignite Corporation (NLC) was set to start coal imports, as its power plants, which were aimed at diversifying the company’s project portfolio, neared completion.



Coal imports would start at one-million tonnes a year and increase to 10-million tonnes a year.



In view of the domestic coal shortage, some of NLC’s thermal power projects would have to be linked to imported feedstock through either long-term supply contracts with overseas miners or equity investments in foreign coal assets, a company official said.



NLC had already floated notices seeking expressions of interest (EOIs) for coal supplies and ten coal mining companies, including from Indonesia, South Africa and Mozambique, had responded, the official said, without disclosing identities of the coal asset owners.



Following a schedule drawn up by NLC, imports would commence from September 2013 and one-million tonnes would be shipped in the first year, increasing to 10-million tonnes, as the company’s thermal power plants went on-stream in phases, the official added.



The thermal power projects undertaken by NLC include two 500 MW plants at Tuticorin, in the southern Indian province of Tamil Nadu, and three 600 MW plants in the northern province of Uttar Pradesh. NLC has proposed another three 600 MW plants at Sirkazhi Tamil Nadu.



The Tuticorin plant was scheduled for start-up by year-end, while the Sirkazhi plants have been linked to imported coal feedstock.



Once all EOIs were obtained, NLC would initiate long-term supply contracts within a three-month timeframe, as well as equity investments in coal assets. The company had earmarked a corpus of about $450-million for strategic equity investments.



NLC, which operates predominantly in southern India, has three lignite reserves - Mine I, Mine IA and Mine II, which produces 10.5-million tonnes, three-million tons and 10.5-million tonnes of lignite respectively. The company also operates three lignite-based power plants in southern India with generating capacities of 600 MW, 1 470 MW and 420 MW respectively.

Source:-www.miningweekly.com

'No Import Duty Cut Merely Because Importer Is Ssi Unit'

May 13, 2013

We are a SSI unit manufacturing shawls and stoles. Our turnover is below Rs 4 crore in one unit and below Rs 1 crore in another unit. We consume laces and beads in the production process. So far we have been buying these items locally but now we propose to import these from China/Bangkok, etc. Our products do not attract excise duty. Very soon we shall be importing some machines as well. We want to know whether there is any exemption available to SSI units from payment of custom duty on imports of input materials or machines, and whether we can get any concession on rates of customs duty on imports of inputs or machines if we start exports directly.

No import duty concessions are available only because the importer is a SSI. For manufacture of goods for exports, you can get the required inputs (i.e. raw materials, components, consumables, etc) at zero duty under advance authorisation scheme under Chapter 4 of the Foreign Trade Policy and you can even import capital goods at zero duty under Export Promotion Capital Goods (EPCG) scheme under Chapter 5 of the Foreign Trade Policy. Besides, you have the option of claiming drawback at the notified All Industry Rates or drawback of the actual duty paid as per the Duty Drawback Rules and related notifications. Also, you can import duty paid capital goods and get remission of the basic duty of customs under the Post Export EPCG scheme.



Can we accept payment from a foreign buyer in cash or through a credit card, when he is on a visit to India? Can we accept payment for exports from the buyer's agent in India in rupees?

As per Par B.2 of RBI Master Circular no. 14/2012-13 dated 2nd July, 2013, the amount representing the full export value of the goods exported shall be received through an AD Bank through bank draft, pay order, banker's or personal cheques, foreign currency notes, foreign currency travellers' cheques from the buyer during his visit to India or payment out of funds held in the FCNR/NRE account maintained by the buyer or international credit cards of the buyer. When payment for goods sold to overseas buyers during their visits is received in this manner, GR/SDF (duplicate) should be released by the AD Category-I banks only on receipt of funds in their Nostro account, or if the AD Category-I bank concerned is not the credit card servicing bank, on production of a certificate by the exporter from the credit card servicing bank in India to the effect that it has received the equivalent amount in foreign exchange.



AD Category-I banks may also receive payment for exports made out of India by debit to the credit card of an importer where the reimbursement from the card issuing bank/organisation will be received in foreign exchange. Payment from local agent of the foreign buyer in Indian rupees is not an approved method for receiving payment for exports, as per current Regulations.

Source:-www.business-standard.com

Rupee Down 8 Paise At 54.81/Dollar In Early Trade

The rupee today lost eight paise to 54.81 against the dollar in early trade on the Interbank Foreign Exchange market due to higher demand of the US currency from banks and importers.



Forex dealers said dollar strengthening against other currencies in the global market also put pressure on the rupee.



The domestic currency had closed higher by seven paise at 54.73 yesterday on fresh dollar selling by exporters and moderate FII inflows.



Meanwhile, the BSE benchmark Sensex recovered by 66.27 points, or 0.33%, to 19,757.94 in early trade today.

Source:-www.business-standard.com

Exports Up 1.6 % In April

May 13, 2013

Exports grew for the fourth consecutive month, recording a growth of 1.6 per cent in April, but surge in gold imports pushed up the trade deficit to $17.7 billion. Exports in April stood at $24.16 billion as against $23.7 billion in April, 2012.



Gold and silver imports, during the month under review, had more than doubled to $7.5 billion from $3.1 billion in April, 2012.



“Imports have seen an undue growth of 10.9 per cent (in April to $41.95 billion), largely contributed to by a significant increase in gold imports,” Commerce Secretary S. R. Rao told reporters here.



Expressing concern over the ballooning trade deficit, Mr. Rao said that government would take steps to bridge the gap.



“Government sees this growing trade imbalance with concern and would be taking into stock this heavy import of gold and would come out with considered steps as how to contain this growing trade deficit,” he added.



After touching the second highest figure-ever in a month in January to $20 billion, the trade gap came down to $14.9 billion in February and to $10.3 billion in March.



On the steps to discourage gold imports, Director-General of Foreign Trade Anup Pujari said the government had imposed certain duty but the steep fall in prices had neutralised its impact.



“... gold imports have been so much, it is not an accepted thing. In fact, all of us must have been taken it by surprise,” he added.



Besides, gold and silver, imports of crude oil; metals and scraps and chemicals grew by 4 per cent, 52 per cent and 23 per cent, respectively.



After declining for consecutive eight months from May 2012, India’s exports entered the positive zone in January, 2013.



Mr. Rao said the absence of alternative avenues of investment was also pushing demand for gold upwards.



“It is an inflation-proof investment for a citizen. If economic growth picks up, and better avenues for investment (appear), then the consumer behaviour shifts,” he said. Mr. Pujari said during Akshaya Tritiya festival people bought more gold.



Oil imports in April stood at $14 billion as against $13.5 billion in April 2012. Non-oil imports grew by 14.9 per cent to $27.86 billion during the period.



On export growth, Mr. Rao said shipments were showing continuous positive up-tick. Sectors which registered positive export growth include rice, gems and jewellery (22 per cent), ready-made garments (8.6 per cent), cotton (8.1 per cent), tea (5.4 per cent) and marine products (25 per cent).



Sectors which registered negative growth include petroleum (0.5 per cent), engineering (8.6 per cent), chemicals (1.4 per cent), manmade yarn (3.3 per cent) and pharmaceuticals (1.6 per cent).



Mr. Rao said the positive growth trend was expected to continue in the coming months as new markets were performing.



“The U.S. is looking good. The economy is picking up but not so in Europe. Latin America, Africa and Far East nations continue to do well,” he added.



He also said that the RBI’s proposed steps to facilitate easy availability of credit to exporters, if accepted, would help in boosting exports. “We do see a positive curve out of dollar-denominated credit being available to exporters,” he added.



The government has fixed a target of $325 billion for exports during the current fiscal. In 2012-13, shipments declined 1.76 per cent to $300.6 billion.



In 2012-13, the trade deficit touched a record high level of $191 billion. Federation of Indian Export Organisations President Rafeeque Ahmed expressed concern over rising gold imports, and said there was is a need to evaluate the situation.

Source:-www.thehindu.com

Receipts for shared cost of global tracking system linked to shipping income; not taxable under Indo

IT/ILT: Amount received on account of shared cost of global tracking system by foreign shipping company is linked to shipping income and is not taxable as per Article 9 of India- Denmark DTAA

Proposal to align gold import regulations with rest of the import regulations

FEMA/ILT : Import of Gold by Nominated Banks/Agencies

Extended period of limitation isn’t invokable in case of divergent views

ST : When similar issue had to be referred to Larger Bench, it would show that two views were possible and, therefore, prima facie, extended period of limitation cannot be invoked

RBI/2012-13/499 A. P. (DIR Series) Circular No.103 dated 13-05-2013

RBI : Import of Gold by Nominated Banks/Agencies



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Once commercial expediency of a payment is accepted and TDS has been effected, deduction will have t

IT : Claim for bad debts cannot be disallowed on ground that debts in question have not been established to have become bad

Court's prior permission isn't required for compounding offence by CLB under sec. 621A

CL : The legislature has conferred the same power to the Company Law Board which can exercise its power either before or after the institution of any prosecution whereas the criminal court has no power to accord permission for composition of an offence before the institution of the proceeding. The legislature in its wisdom has not put the rider of prior permission of the court before compounding the offence by the Company Law Board and in case the contention of the appellant is accepted, same wo

Writ to restrain ITAT from discharging statutory functions dismissed as appellant didn't prove his a

IT : A representative appearing before ITAT had no right to claim mandamus for restraining an authority constituted under Act (i.e., Members of ITAT) from discharging functions entrusted to them by statute

Compounding of offences for non-furnishing of returns under Foreign Contribution (Regulation) Act, 2

FOREIGN CONTRIBUTION : Section 41 of the Foreign Contribution (Regulation) Act, 2010 - Composition of Certain Offences - Notified Officer Competent for Compounding Specified Offences

Payment under rule 3(5) of Cenvat Rules isn’t required for removal of capital goods purchased from a

ST/ECJ : Removal of capital goods purchased by a service provider from a private individual, on which no Cenvat Credit was taken, doesn't attract provisions of rule 3(5) of CENVAT Credit Rules, 2004

Applicability of Regulation 17(6) in processing of work items

CL : Applicability of Regulation 17(6) of Companies Regulations, 1956 In Processing Work Items - Creation of Ad Hoc Work Items to Extend Validity of Same Beyond Time Limits Prescribed Under Said Regulation

Since TP adjustments travelled beyond transactions with AE, ITAT granted stay of demand

IT/ILT : Where transfer pricing adjustment in case of assessee was made with respect to entire average capital employed in business whereas, adjustment as per law, was required to be made only with respect to transaction with AE, a prima facie case for stay of demand was made out till disposal of assessee's appeal before Tribunal

Construction of hostels for educational institutes is non-commercial purpose; ST not leviable

ST : Building constructed as hostel for residence of students studying in an educational institution is a non-commercial/non-industrial building and, therefore, such construction is not liable to service tax under Works Contract Services