IT : Where requirement to get accounts audited and furnish audit report had arisen because of treating income from sale of shares as business income by revenue instead of capital gain declared by assessee then acceptance of income from sale of shares as capital gain by revenue in immediately preceding year under similar circumstances was a reasonable cause within meaning of section 273B in failure to comply with provisions of section 44AB
Friday 17 May 2013
Speed post isn't valid mode of service as law requires registered post with acknowledgement due
ST : Sending adjudication order through speed-post is not a valid service as per section 37C of the Central Excise Act, 1944 as order is to be sent by registered post with acknowledgement due
Margins of trading segment can’t be applied to indenting segment; no re-characterisation unless fact
IT : TPO cannot re-characterize assessee's indenting (service ) activity as trading activity unless it can be demonstrated by facts on record that the assessee though calling itself a "service provider" was actually acting as a "trader". Absent facts justifying such re-characterization, there was no justification for TPO to apply trading margins to assessee's indenting activity under TNMM
No TP adjustment required if assessee’s operating margin is within tolerable range of 5%, says ITAT
IT/ILT : Where on basis of TNMM applied by TPO, assessee's operating margin in respect of international transactions entered into with its AEs was found to be within permitted range of ± 5 per cent as mentioned in section 92C, no adjustment could be made to ALP determined by assessee
Machinery Orders Jump 14.2%, Sharpest Since ’05
May 17, 2013
Core private-sector machinery orders jumped a seasonally adjusted 14.2 percent in March, indicating the weaker yen and higher stocks are starting to prompt companies to boost investment, the government said Friday.
The orders, which exclude those for ships and from utilities because of their volatility, climbed for the second-straight month to ¥793.1 billion, the Cabinet Office said, rising much faster than market expectations.
It was the sharpest month-on-month growth in orders, regarded as a leading indicator of capital spending, since officials started compiling comparable data in April 2005.
The results suggested business investment is likely to begin recovering, some analysts said.
“Exports have been rebounding and corporate performance has been improving, which will help increase capital spending from mid-2013,” said Mitsumaru Kumagai, chief economist at Daiwa Institute of Research.
Finance Minister Taro Aso expressed confidence that Prime Minister Shinzo Abe’s economic spiel, dubbed “Abenomics,” centering on radical monetary easing and fiscal spending binges, could make firms willing to beef up investment further.
“Capital spending will increase from now on” as government expenditures are expected to bolster domestic demand and conquer prolonged deflation, Aso said at a news conference.
In March, orders from the manufacturing sector surged 13.3 percent to ¥308.7 billion, up for the second month in a row, while those from nonmanufacturers also rose for the second consecutive month, soaring 14.3 percent to ¥475.9 billion.
In particular, orders from the petroleum and coal industries and the finance and insurance industries grew on expectations for a recovery, the office said.
Overseas demand for overall machinery, an indicator of future exports, skyrocketed 52.1 percent on month, compared with a 1.0 percent gain in February and a 3.7 percent drop in January, it said.
Looking ahead, the office estimated core orders would shrink 1.5 percent in the three months through June following the sharp gain in March. They were almost flat in the previous quarter.
The Cabinet Office left unchanged its basic assessment of core machinery orders, saying they are “showing signs of moderately picking up.”
Some economists take a cautious view of business investment, with concern growing that if Japan’s long-term interest rates continue to rise, they could discourage firms from borrowing and boosting capital spending.
Source:-www.japantimes.co.jp
India Seen Boosting Tankers On Crude Imports And Product Exports
2013-05-17
India will add demand for tankers as the country imports more crude oil and exports more refined products, according to E.A. Gibson Shipbrokers Ltd.
The south Asian nation has replaced the U.S. as the biggest importer of Nigerian crude, lengthening transport distances as India replaces supply from Iran, the London-based shipbroker said in an e-mailed report today. India is also building the first stage of a 145 million-barrel crude reserve, with 40 million barrels of storage expected to be added by April 2014, according to the report. Refining capacity already at a surplus is expanding further, Gibson said.
“Indian oil demand is forecast to rise at relatively strong levels, but refinery expansions are expected to even exceed this over the next few years,” Gibson said in the report. “This is a perfect scenario for tanker owners: more crude in and more products out.”
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.
Source:-www.bloomberg.com
India Aims To Widen Basket Of Exports To Iran
17-May-2013
NEW DELHI—India is looking to broaden its range of exports to Iran to help balance bilateral trade under an agreement that allows the countries to bypass Western sanctions, Indian industry and government officials said Friday.
India is one of the largest buyers of Iran's crude oil and so far, 85%-90% of India's exports to Iran has been agricultural products such as basmati rice and soymeal. But now, India plans to also export products such as textiles, pharmaceuticals, medical-diagnostic equipment, auto components and consumer goods.
"We are looking at diversification of our exports," said Ajai Sahai, director general of the Federation of Indian Export Organization.
Last year, India and Iran entered into an agreement in which India would pay for about half of its crude oil imports from the Middle Eastern country in Indian rupees instead of U.S. dollars. The move followed U.S. sanctions that have shut down the global financial system for Iranian crude trade.
But the value of India's exports to Iran is far lower than the value of its imports. India exported $2.95 billion worth of goods to Iran in the last financial year ended March 31, while its imports from Iran totaled around $11 billion.
India's imports from Iran, which mainly comprise crude oil, are expected to fall to around $10 billion this financial year because of a decline in oil prices.
Also, tighter restrictions on Iranian oil sales, led by the U.S. and the European Union over concerns that Iran's nuclear efforts went beyond Tehran's proclaimed efforts to establish a nuclear-power program, will likely continue to weigh on Iran's crude oil exports, which fell 39% in 2012.
Mr. Sahai said the trade organization aims to raise the value of Indian exports to Iran to around $4.5 billion to $5.0 billion in this financial year.
The Indian government has also been looking at ways to deepen trade ties between the two countries.
Textiles Secretary Zohra Chatterjee will be leading a trade delegation to Iran over this weekend to promote and market Indian textiles. Ms. Chatterjee is scheduled to sign a cooperation pact on textiles to enhance bilateral trade and industrial ties-ups.
India has about a 4% share in global textile exports, government estimates showed.
"Textile exports to Iran is only one of the options" for strengthening India's presence in the global textiles market, a government official said, without specifying the other possibilities. The official declined to be named.
However, India could face difficulties in transporting goods to Iran.
"Definitely, shipping has become a challenge," said Bhaskar Sarkar, executive director of government-backed engineering goods exports lobby EEPC India.
Recently, Hong Kong-based shipping lines said they would join global shippers in excluding Iran from their list of destinations. Shippers from the Chinese territory told Indian exporters they would stop operating Iranian routes from June 1, he added.
Source:-online.wsj.com
Indian Port To Seek Partner For New Iron Ore Handling Facility
17-May-2013
India's Vishakhapatnam Port Trust (VPT) will seek a partner to invest $155 million to build a new iron ore handling facility and upgrade the existing one under the public-private-partnership (PPP) model, an official from India's Ministry of Steel said on Friday, May 17.
VPT, which operates a port along the Bay of Bengal coastline at Vishakhapatnam in the eastern Indian province of Andhra Pradesh, will award the contract on design, build, finance, operate and transfer basis, the official said.
The construction and upgrading of iron ore handling facilities at the port will be carried out in two phases. In the first phase the capacity increase will be 16.2 million mt per year, while in the second phase capacity of 6.6 million mt will be added, the official said.
VPT currently handles an average of 19 million mt of iron ore and pellets annually.
Source:-www.steelorbis.com
Us Paves Way For Shale Gas Export To India
Opening up the prospects of export of shale gas to energy starved India, the US today granted conditional authorization to export domestically produced liquefied natural gas (LNG) to nations that do not have Free Trade Agreement (FTA) with it.
In a decision, which has major implications for India, the Department of Energy announced that that it has conditionally authorized Freeport LNG Expansion, LP and FLNG Liquefaction, LLC (Freeport) to export domestically produced LNG to non-FTA countries from Freeport Terminal on Quintana Island in Texas.
Given that the companies from countries like China, Japan and Britain have already have an overwhelming stake in this Texas company, India is unlikely to benefit immediately from this grant of license.
But the decision paves the way for India, which does not has a FTA with the US, to get its companies seek similar licenses for import of much needed gas from the United States in large quantities from other terminals.
The existing federal law generally requires approval of natural gas exports to countries that have an FTA with the United States.
For countries that do not have an FTA with the United States, the Natural Gas Act directs the Department of Energy to grant export authorizations unless the Department finds that the proposed exports "will not be consistent with the public interest."
In its 132 page order, the Department of Energy said that the proposed exports are likely to yield net economic benefits to the United States.
"We further find that granting the requested authorization is unlikely to affect adversely the availability of natural gas supplies to domestic consumers or result in natural gas price increases or increased price volatility such as would negate the net economic benefits to the United States," it said.
Freeport facility in Texas, the Department of Energy said, is conditionally authorized to export at a rate of up to 1.4 billion cubic feet of natural gas a day (Bcf/d) for a period of 20 years.
Source:-www.business-standard.com
‘Ambiguous language in Bill can't be compared with Act rectifying it; SB ruling in Merilyn Shipping'
IT : The provisions of section 40(a)(ia), 1961, are applicable not only to the amount which is shown as payable on the date of balance-sheet, but it is applicable to such expenditure, which become payable at any time during the relevant previous year and was actually paid within the previous year.
Subsidy includible in value of services only if it is granted for specified services
ST/ECJ : Subsidy is included in value of services only if they are given to provide particular services and there is a significant relationship between diminution in price of services and subsidy received
Cos with multiple segments to be examined on segmental level if they have complete comparable segmen
IT/ILT : Where a comparable has two segments and its revenue from comparable segment is complete in itself and is not influenced by inter-segment revenue, comparability in such a case has to be examined on segment level and not on entity level
Customs Circular No 21/2013 dated 16-05-2013
Indian Customs : Regarding certain issues relating to difficulties being faced in availing/extending exemption relating to the Oil Exploration Sector.
Click Here:http://www.eximguru.com/Notifications/regarding-certain-issues-relating-to-30790.aspx
Click Here:http://www.eximguru.com/Notifications/regarding-certain-issues-relating-to-30790.aspx
Notification No 13 (RE-2013)/2009-2014 dated 14-05-2013
DGFT : Nomination of Export Promotion Council for Handicrafts (EPCH) as nodal agency for certificate on due diligence adopted by the exporters in procuring wood from legal sources for manufacture of Handicraft articles.
Click Here:http://www.eximguru.com/Notifications/nomination-of-export-promotion-council-30789.aspx
Click Here:http://www.eximguru.com/Notifications/nomination-of-export-promotion-council-30789.aspx
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