Explanations to sec. 65(105)(zzq) and 65(105)(zzzh) are constitutionally valid

ST : Section 65(105)(zzzzu) Explanations inserted below Section 65(105)(zzq) and 65(105)(zzzh) are constitutionally valid, as they do not amount to tax on 'land or buildings' and service tax is levied on construction services only

Royalty paid to AEs couldn’t be disallowed if assessee was not acting as its contract manufacturer

IT/ILT : Payment of royalty to associated enterprise for use of technical know-how for manufacturing goods on own account by assessee cannot be disallowed taking arm's length price as nil

Order without opportunity of personal hearing isn’t valid even if assessee is allowed to file writte

IT : Order passed without giving an opportunity of being heard to assessee is invalid irrespective of the fact that assessee was given an opportunity of filing written submissions

No TDS under sec. 194H on brokerage paid by an agent to sub-brokers for dealing in securities or mut

IT: Sub-brokerage paid by an agent to sub-agents for services rendered in connection with securities/mutual funds, is outside purview of section 194H

Gopa Oppose Registration With Iopepc For Exports

23-May-2013

Alleging certain misguidance from the Indian Oilseed and Produce Export Promotion Council (IOPEPC), the Gujarat Oilseeds Processors Association (GOPA) are protesting against registration with the former for groundnut exports.



The state-based oilseed processors association has claimed that IOPEPC has demanded registration of groundnut exporters and shelling units with itself, over and above the compulsory registration with the Agricultural and Processed Food Products Export Development Authority (APEDA).



Sometime back, APEDA made registration mandatory for peanut shelling units in order to export groundnut and groundnut products. However, according to GOPA, while registering groundnut exporters and peanut shelling units with APEDA is acceptable, doing the same with IOPEPC is not.



"IOPEPC is a trade body and it should have to work for us. However, IPOEPC has misguided us regarding peanuts export notification. Compulsory registration with IOPEPC is unacceptable. If necessary, we are ready to register with APEDA only. We don't want to deal with IOPEPC," said Mukund Shah, president of GOPA.



As per DGFT notification dated January 3, 2013, exports of groundnut have been subjected to registration with APEDA along with controlled Aflatoxin level certificate issued by APEDA recognized laboratories. On its part, IOPEPC said that it is compulsory for shelling units and exporters to register with it but according to GOPA no such thing has been mentioned in the notification.



Speaking on the allegations from GOPA, Rajesh Bheda, chairman of IOPEPC said, "By talking like this GOPA is instead misleading the industry. These allegations are wrong and whatever we are doing is for the benefit of the industry and we are ready to discuss the issue in open forum. These new rules are ultimately beneficial for the small shelling units but some are opposing it due to vested interests."



According to Bheda, the notification has made it mandatory for shelling units to register with IOPEPC. "If anyone wants to withdraw membership or cancel registration by following the false allegations, they can," Bheda added. What's more, GOPA is also opposing seeking a Hazard Analysis Critical Control Point (HACCP) certificate for peanut units. Shah said the association is instead ready to get Food Safety and Standards Authority of India (FSSAI) certificate from the Government of India. "HACCP certification is too costly as compared to FSSAI and is not viable to maintain norms to small units," said Shah.



During a recent meeting of GOPA, registered exporters have come in support of the association and ready to withdraw their registration from IOPEPC.



Meanwhile, groundnut export from India seem to have been adversely affected due to the new regulations by APEDA. The industry data showed that groundnut export from India during January and February period this year has been declined by 48 per cent.



About 50 per cent of groundnut shelling units in Gujarat have been closed since last two months after APEDA new rules, traders claimed.



According to IOPEPC data, groundnut export from India during January and February 2013 stood at 70,917 tonnes, down by 65,491 tonnes as compared to last year during same period. India had exported 136,408 tonnes of groundnut in January - February period in 2012. As per the data, total export in 2012-13 till February stood at 492,219 tonnes, which was 853,080 tonnes in 2011-12.



In the meeting GOPA has decided to meet commerce minister and ministry official and inform them that this new rules are hurting the export business of the India.

Source:-www.business-standard.com

Indian Rupee Opens Flat At 55.61 Per Dollar

The Indian rupee opened flat at 55.61 per dollar versus Thursday's close of 55.59.



Himanshu Arora, Religare said, "The dollar lost heavily against a basket of currencies with investors opting for safe haven currencies like the yen. Better than expected US economic data could add to the pressure. Profit-booking at higher levels may also weigh on the dollar versus the rupee. The range for the rupee is seen between 55.37-55.61/USD."



The euro rose to 1.28 to the dollar. The dollar index was slightly below the 84 mark.

Source:-www.moneycontrol.com

Daimler To Develop India Ops As Export Hub

CHENNAI: As part of an integrated Asia strategy, German automobile giant Daimler is developing its Indian commercial vehicle operation as an export hub. Daimler India Commercial Vehicles (DICV), its truck and bus making Indian subsidiary, will export locally assembled trucks from the conglomerate's Mitsubishi Fuso range in 15 markets in Asia and Africa like Indonesia , Thailand, Malaysia, Tanzania, Malawi, Uganda, Zimbabwe, Mozambique, Mauritius and the Seychelles.



The first export market will be Sri Lanka in June 2013, followed by Bangladesh, Zambia , Kenya and Brunei later this year. DICV launched the local production of its new product range under the Fuso brand on Thursday at its Oragadam plant, near Chennai.



Said Albert Kirchmann, head, Daimler Trucks Asia and president & CEO, Mitsubishi Fuso Truck and Bus Corporation (MFTBC): "We are developing India as an export hub under our Asia strategy. Currently 19 plants across the world produce 1,75,000 Fuso trucks sold in 150 countries. The Oragadam plant along with the Kawasaki plant in Japan will be our two global competence centers." Although the new lineup will be branded Mitsubishi Fuso in export markets, in India they will be badged Bharat Benz, Daimler's Indian brand. "There will be some product differences too - though they will be from the same platforms , the products will be market specific," said Kirchmann .





India's status as an export hub will also offer the opportunity for global sourcing of components. "We are working on it and India will become more important for parts supply globally as the first and second phase of localization kicks in," said Kirchmann.



Daimler has a range of global brands including Mitsubishi Fuso in its truck and bus stable. However, said Kirchmann, there are no plans to introduce any of those brands in India. But, he said, the Actros truck will continue to be branded Mercedes Benz. "It's a high horsepower , high payload, low volume , low localization niche product whereas our Bharat Benz range has 80-90 % local content and targets big volumes so that it can be badged differently," said Marc Llistosella , MD and CEO, DICV. The Fuso range to be manufactured at DICV's Oragadam plant will comprise five models spanning medium/heavyduty (25-49 tonne referred to as 'FJ' , 'FO' & 'FZ' ) and light/ medium-duty (9-16 tonne referred to as 'FA' & 'FI' ).



DICV's truck focus means it's not thinking buses right now. Nor will it even consider the newly introduced category of quadricycle. "Buses for now are not a part of our strategy as we are focussed on truck launches," said Llistosella . "As for quadricycles, that's not even something we're thinking about."

Source:-timesofindia.indiatimes.com

Evasion penalty under sec. 78 was not imposable if there was reasonable cause for non-payment of ST

ST : Where, in view of reasonable cause for failure to pay service tax, section 80 has been applied to set aside penalty under section 76, no penalty can be levied under section 78 as well

Time-limit under sec. 11B for claiming ST refund isn’t applicable if ST is paid under protest

ST : Time-limit of section 11B of Central Excise Act, 1944 for claiming refund doesn't apply in case service tax was disputed and was paid under protest

Pre-deposit requirement to be waived off in case of inconsistent stand of revenue to levy service-ta

ST : When there is inconsistency in stand of revenue in relation to head under which service tax was leviable, requirement of pre-deposit was to be waived

RBI/2012-13/504 A. P. (DIR Series) Circular No.106 dated 23-05-2013

RBI : Liberalised Remittance Scheme for Resident Individuals - Reporting



Click Here:http://www.eximguru.com/Notifications/liberalised-remittance-scheme-for-resident-30803.aspx

Overseas principal can set-up services for cross border money transfer to India - RBI

FEMA : Authorisation Applications from Overseas Principals for Cross Border In-Bound Money Transfer Services to India

Investments out of receipts to be disclosed in return due to be filed couldn’t be an undisclosed inc

IT : Where last date for filing of return wherein professional receipts earned by assessee could be shown had not expired, fixed deposits and Kisan Vikas Patras (KVPS) acquired out of such receipts could not be regarded as undisclosed income in course of block assessment proceedings

Cenvat credit to be reversed on capital goods used for private purposes on closure of business

ST/ECJ : In case of capital goods used for private purpose on closure of business, credit reversal is required only if credit was taken on such capital goods; further, if repair work is done thereon prior to such allocation for private use, reversal is required of goods/services used in such repair work

Mere rejection of books of account doesn't mean compulsorily additions to returned income

IT : Section 145 by itself does not deal with addition or deletion in income and, thus, merely because there is some deficiency in books of account or merely because there is rejection of books of account, it does not mean that it must necessarily lead to additions in returned income of assessee

ITAT quashed additions for cash credit as assessee proved identity and creditworthiness of her credi

IT : Where assessee proved identity of creditors, their creditworthiness and genuineness of transaction, addition on account of cash credit was rightly deleted

Hiring of buses does not amount to ‘rent-a-cab’ service

ST : Hiring of buses to State Road Transport Corporation for being plied as public transport system does not, prima facie, amount to 'rent-a-cab' services