Assessee couldn’t challenge an order of ITAT that was pronounced on the basis of his sole contention

IT: Where assessee received on money while selling properties and Tribunal substantially accepting contention of assessee that not entire on money received but only profit element could be taxed in its hands and sustained addition at rate of 15 per cent of on money received by assessee, appeal by assessee against order of Tribunal did not survive

AO is supposed to rectify the typographical errors in e-return

IT: Where there was clerical mistake in e-return, Assessing Officer should rectify such mistake

Sec. 80 penalty to be waived off if assessee had genuine doubt about the liability to pay service ta

ST : When assessee has genuine doubt as to liability to pay service tax and has paid service tax along with interest on being pointed out, no penalty can be imposed on assessee in view of provisions of section 80

Cooking Oil Imports By India Slump On Stockpiles, Low Demand

14-May-2013

Cooking oil imports by India, the world’s second-biggest buyer, declined in April for the first time in five months on ample stockpiles and as consumption decreased because of the summer heat.



Purchases of vegetable oils, including for industrial use, slumped 29 percent to 654,827 metric tons in April from 925,334 tons a year earlier, the Solvent Extractors’ Association of India said in an e-mailed statement today. That’s lower than a median estimate of 700,000 tons in a Bloomberg survey of five processors and brokers.



A drop in imports by India, the biggest palm oil buyer, may extend losses in futures traded in Kuala Lumpur. Prices are down 27 percent in the past year as production in Indonesia and Malaysia, the world’s biggest suppliers, outpaced demand. India’s cooking oil stockpiles were at 1.8 million tons on May 1, compared with 1.56 million tons a year earlier and a record 2.12 million tons in March, association data showed.



“We had overstocked on supplies in the last few months,” B.V. Mehta, executive director of the association, said by phone. An increase in the import duty narrowed the price difference between crude and refined palm oil to $10 a ton, boosting purchases of refined oil, he said.



In January, India almost doubled the taxable prices of crude cooking oil imports and imposed a duty of 2.5 percent to shield domestic oilseed growers from cheap overseas supplies. Refined edible oil imports are taxed at 7.5 percent.

Local Demand



Crude palm oil imports dropped 44 percent from a year earlier to 233,987 tons, while refined palm oil purchases more than doubled to 253,489 tons, the association said. Soybean oil imports slumped to 50,999 tons from 216,509 tons, while sunflower oil fell 32 percent to 88,368 tons, it said. India buys palm from Indonesia and Malaysia, and soybean oil from Brazil and Argentina.



“Local consumption always slows in the summer months,” said Mehta. “We can see a pickup in demand in August” when the festival season begins in the country, he said.



Vegetable oil purchases in the six months to April rose 12 percent to 5.3 million tons, association data showed.



Palm for delivery in July fell 0.7 percent to 2,293 ringgit ($767) a ton on the Malaysia Derivatives Exchange at 5:05 p.m. in Kuala Lumpur. Futures dropped 3.9 percent in April, the third straight month of losses.

Source:-www.bloomberg.com

China Expected To Become Top Importer Of Rice

Despite its efforts to boost grain yields for the 10th consecutive year, China - the world's largest rice consumer - is expected to become also the largest rice importer this year, according to a new report.



The country's rice imports this year will surge to 3 million metric tons from 2.34 million tons a year ago, according to the report, released by the United States Department of Agriculture.



Since 2012, "consumption demand for rice in China has exceeded the supply", the report said.



If the forecast holds true, it would represent a sharp increase as the country's rice imports hovered around 450,000 tons per year over the five-year period that ended in 2011, official data showed. It would also make the country outstrip Nigeria to become the world's largest rice importer.



Analysts said that the country has no shortage of rice supplies and blamed the expected surge in imports on the price discrepancy between the domestic and global markets.



The discrepancy is a result of the government's minimum grain purchase price, which aims to shore up domestic grain prices after they declined in the global market due to weak demand and increased rice yields in recent years, analysts added.



The global rice output this year is expected to increase 2 percent year-on-year to 479 million tons, making 2013 the eighth consecutive year of increased rice yields, according to the USDA.



Meanwhile, global rice stocks are expected to hit 107.8 million tons, the highest level since 2002, the report added.



"The government should allow the purchase price to have some flexibility, so that it fluctuates according to the international market," said Ma Wenfeng, a senior analyst at Beijing Orient Agribusiness Consultant Ltd, one of the industry's largest specialist consultancies.



Meanwhile, rising labor costs and other factors are supporting rice prices in the domestic market, placing upward pressure on imports. Lured by the low global prices, "Chinese companies are very willing to import", Ma added.



During the first three months of the year, China's rice imports jumped by a staggering 192 percent from a year ago to 690,000 tons, Chinese official trade data showed.



Because of the price discrepancy, imported rice will always be attractive to domestic companies, Ma said.



"The government should continue increasing its investment in the agricultural sector to drive down prices in the long run," he added.



Imports of other agricultural commodities are also expected to increase.



The country's soybean imports are expected to rise by 10 million tons from a year ago to 69 million tons, according to the USDA forecast.



China's grain output reached 589 million tons in 2012, the ninth consecutive year of increased harvests, official data showed.

Source:-english.peopledaily.com.cn

Rupee Up 5 Paise Against Dollar In Early Trade

MUMBAI: The rupee on Wednesday rose by five paise to 54.76 against the dollar in early trade at the Interbank Foreign Exchange on selling of the US currency by exporters.



Besides, a higher opening in the domestic equity market and strengthening of euro against the dollar overseas supported the rupee, forex dealers said.



The rupee had lost eight paise to close at an over 1-month low of 54.81 against the dollar yesterday.



Meanwhile, the BSE benchmark Sensex rose by 158.19 points, or 0.80 per cent, to 19,880.48.

Source:-timesofindia.indiatimes.com

Excise Duty Collections Dips 14% In April

14-May-2013

NEW DELHI: Excise duty collections have taken a big knock in the first month of the new fiscal, as companies took credit for higher tax paid in the last month of 2012-13 to help government meet fiscal deficit target for the year. While the overall indirect taxes grew by a meager 4%, excise duty collections bore the biggest brunt of enhanced payments in March 2013, witnessing a sharp fall of 14% in April, 2013. Excise collections came in at only .`9,800 crore as companies rushed to get their accumulated input tax credit.





"It's usually like this when the collections are subdued...Taxpayers claim input tax credit only after the end of fiscal," said a finance ministry official explaining the decline. Whenever there is pressure on tax officials, companies are not allowed to adjust their tax liability against input tax credit, and instead are asked to settle their taxes in cash in the last few months of the financial year.



In 2012-13, there was huge pressure on officials to raise as much tax as possible so that the government could meet its revised fiscal deficit target of 5.3% of GDP.the reason. The government had revised the indirect taxes target to Rs 4.69 lakh crore as against the budget estimates of Rs 5.05 lakh crore as collections had remained subdued due to economic slowdown.



But, it managed to exceed the revised target on the back of an aggressive tax collection drive.



In the revised estimates, the government has shown a deficit of 5.2% of GDP, which may come down to about 5% when final numbers come in, but the aggressive mobilization has depressed revenues for the current year. Most taxpayers show swelled up personal ledger accounts due to this reason.



Duty refunds of exporters had also been put on hold since January onwards, an issue that was flagged by the Commerce department with the department of revenue in the finance ministry.



Tax authorities had turned the heat on taxpayers whose excise duty or service tax payment was lower than previous fiscal and sent out stern letters asking them to explain the reason.

Source:-articles.economictimes.indiatimes.com

Gold Import Curbs May Hit Small Jewellers

14-May-2013

The Reserve Bank of India’s (RBI) move to restrict import of gold consignments could impact smaller players in the gold and jewellery industry.



The aim of the government is to moderate demand for gold for domestic use, as only the genuine needs of gold jewellery exporters would be exempt.



The trigger for the move was most likely the announcement on Monday that gold imports grew 138 per cent in April to $7 billion— further burdening the current account deficit (CAD).



Gold can be imported by around 30 channel agencies, including banks and non-banks. India imported 1,015 tonnes of gold in 2012-13, and industry experts said around 65 per cent was on a consignment basis.



When imported on a consignment basis, by banks on behalf of buyers, buyers do not finance purchases, and unsold gold can be returned after 30 days. Smaller jewellers would now have to await execution of their smaller gold orders, and this could increase their costs.



The move could also result in shortages, and encourage smuggling.



Vinod Hayagriv, Managing Director , C. Krishniah Chetty & Sons, said, “as all consumption gold will be restricted supply, banks will necessarily have to import only on deferred payment, outright payment which is expensive or through high cost borrowings.” He felt the move would take bullion resellers out of business. “This service was being done by bullion dealers for the country’s jewellers, as banks were unable to stock and service, and this will be negatively affected. This will be filled by smuggled gold as the cost of bank gold will now be much higher.”



Ban bullion sales



A better way would be to only ban bullion sales to unregistered dealers (URDs), and thereby protect foreign exchange, Mr. Hayagriv said.



Suresh Jain, director, Bombay Bullion Association and director, S.J.Jain Jewellers, said, “to an extent, it will take away speculation. It seems only a precautionary step, and will not have a major impact.”

Source:-www.thehindu.com

Gold Import Curbs May Hit Small Jewellers

14-May-2013

The Reserve Bank of India’s (RBI) move to restrict import of gold consignments could impact smaller players in the gold and jewellery industry.



The aim of the government is to moderate demand for gold for domestic use, as only the genuine needs of gold jewellery exporters would be exempt.



The trigger for the move was most likely the announcement on Monday that gold imports grew 138 per cent in April to $7 billion— further burdening the current account deficit (CAD).



Gold can be imported by around 30 channel agencies, including banks and non-banks. India imported 1,015 tonnes of gold in 2012-13, and industry experts said around 65 per cent was on a consignment basis.



When imported on a consignment basis, by banks on behalf of buyers, buyers do not finance purchases, and unsold gold can be returned after 30 days. Smaller jewellers would now have to await execution of their smaller gold orders, and this could increase their costs.



The move could also result in shortages, and encourage smuggling.



Vinod Hayagriv, Managing Director , C. Krishniah Chetty & Sons, said, “as all consumption gold will be restricted supply, banks will necessarily have to import only on deferred payment, outright payment which is expensive or through high cost borrowings.” He felt the move would take bullion resellers out of business. “This service was being done by bullion dealers for the country’s jewellers, as banks were unable to stock and service, and this will be negatively affected. This will be filled by smuggled gold as the cost of bank gold will now be much higher.”



Ban bullion sales



A better way would be to only ban bullion sales to unregistered dealers (URDs), and thereby protect foreign exchange, Mr. Hayagriv said.



Suresh Jain, director, Bombay Bullion Association and director, S.J.Jain Jewellers, said, “to an extent, it will take away speculation. It seems only a precautionary step, and will not have a major impact.”

Source:-www.thehindu.com

Pharma Exports From Andhra Pradesh Ports Slip 4%

14-May-2013

HYDERABAD: Pharma exports from Andhra Pradesh ports declined to 18% as compared to 22% in 2012 as many pharma companies from the state preferred to ship their products from western ports, said a top government official on Monday at a seminar on exports growth in Andhra Pradesh.



Though Hyderabad is the largest exporter of bulk drugs in the country and is closer to ports such as Visakhapatnam, Chennai, Krishnapatnam, many state-based pharma companies preferred Western ports, mainly JNPT, to export their drugs, Pharmaceuticals Export Promotion Council of India (Pharmexcil), director general PV Appaji said.



"We are reviewing the situation. There could be many factors that could have led to such a situation. First, the merchants who carry out the trade are mainly from Mumbai, which is why they would certainly go for Maharashtra ports. Secondly, due to power shortages, there might have been a shortfall in production this year from Hyderabad, which in turn could have led to low exports," he said.



Krishnapatnam Port chief executive officer Anil Yendluri said that though his port currently does not have the requisite permissions to export pharma products, they were trying to get those approvals.



Meanwhile, speaking at the inaugural session, Union minister of state for commerce and industry D Purandeswari, said that the central government will be reviewing certain Free Trade Agreements (FTA) but has not set any specific time-frame for the exercise.



Federation of Indian Export Organisations director-general and chief executive officer Ajay Sahai said India must focus on strengthening trade ties with emerging markets and shun its dependence on US or Europe.

Source:-articles.timesofindia.indiatimes.com

Rule of 'force of attraction' given in Article 7 of UN Model Treaty can't be imported into Article 7

IT/ILT : Article 7(1) of UN Model Convention which are materially different from the provisions of Article 7(1) of the India-UK DTAA read with Article 7(3) thereof. Articles 7(1)(b) and 7(1)(c) of the UN Model Convention as well as of the UN Model Convention Commentary cant be relied upon to come to a conclusion that the connotations of "profits indirectly attributable to permanent establishment" used in Article 7(1) of the Indo-UK treaty incorporates a force of attraction rule thereby bringing

Service Tax Amnesty Scheme 2013 notified

ST : Section 114 of the Finance Act, 2013 - Service Tax Voluntary Compliance Encouragement Rules, 2013 – Forms VCES-1 (Declaration), VCES-2 and VCES-3 (Acknowledgement), Payment to be Made in Cash as Per ST Rules, 1994 & Registration to Be Taken, If Not Already Held

Clarification on applicability of Circular No 3/2013 amending equity listing agreements and ESOP gui

SEBI : Clarification on SEBI Circular No. CFD/DIL/3/2013, Dated 17-1-2013 - Amendments to SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and Equity Listing Agreement

Trust to be crowned with sec. 12A registration if its main objects were to develop general public ut

IT : Where main objects of assessee-trust were to construct roads, provide water and electricity facility, to construct drainage system etc., which were in nature of general public utility, assessee was entitled for registration under section 12A

Rectification request under sec. 254 could be made if ITAT hadn’t considered the records placed befo

IT : Assessee should move for rectification under section 254(2) where Tribunal had not considered records produced by assessee

Customs Circular No 20/2013 dated 14-05-2013

Indian Customs : Regarding Classification of the machines commercially referred to as "Tablet Computers"



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Notification No 12 (RE-2013)/2009-2014 dated 13-05-2013

DGFT : The Central Government hereby makes the following amendment in Chapter 8 of ITC (HS) 2012, Schedule 1 (Import Policy):



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In case of cash-on-delivery system, cash collection is a part of 'transport of goods service'

ST/ECJ : In case of transport of goods under cash-on-delivery system, cash collection is a part of transport of goods service and cash-on-delivery commission will be eligible for all abatements/exemptions available to services of transport of goods by road

Service Tax Circular No.169/3 /2013 -ST dated 13-05-2013

Service Tax : Regarding The Service Tax Voluntary Compliance Encouragement Scheme-clarifications



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If attachment of one property is enough to recover assessee’s tax liability, other assets to be rele

IT : Where property, which is subject matter of provisional attachment, is sufficient to satisfy tax liability and safeguard interest of revenue, petitioner can seek release of provisional attachment in respect of other properties and amounts due from debtors and depositors

Service Tax Voluntary Compliance Encouragement Rules, 2013 notified

ST : Section 114 of the Finance Act, 2013 - Service Tax Voluntary Compliance Encouragement Rules, 2013 – Forms VCES-1 (Declaration), VCES-2 and VCES-3 (Acknowledgement), Payment to be Made in Cash as per ST Rules, 1994 & Registration to be Taken, If not Already Held

CBEC clarifies certain issues on Service Tax Amnesty Scheme

ST : Service Tax Voluntary Compliance Encouragement Scheme - CBEC Clarifies Certain Issues – Mere Pendency of Letter Seeking General Information not An Impediment to Person Seeking this Scheme

No concealment penalty for errors rectified by assessee voluntarily in assessment proceedings

IT: Where assessee in course of assessment proceedings, declared that profit on sale of land was wrongly considered as capital gain instead of business income and revenue authorities having accepted said declaration, completed assessment, assessee's case did not fall within ambit of Explanation 1 to section 271(1)(c) so as to pass a penalty order