IT : For purpose of section 80-IA(4) enterprises carrying on development of infrastructure development should be owned by company and not that infrastructure facility should be owned by a company
Monday, 27 May 2013
Leasing services received from abroad are liable to ST even if the leased aircrafts are delivered ab
ST : Even if leased aircrafts were delivered abroad, leasing services received from abroad are liable to service tax as assessee had used it in travel business for flying from Indian destinations to foreign destinations and vice versa
Interest on borrowed capital to be dealt with sec. 36(1)(iii) and not by sec. 37(1)
IT : Interest on capital borrowed for purpose of business would be guided by provisions of section 36(1)(iii) and not by section 37(1)
CUP Method is most appropriate when uniform transactions entered into with related and uncontrolled
IT/ILT : Where assessee purchases raw material from its AE located abroad as well as from uncontrolled enterprises operating in domestic market and there is high degree of product comparability, in such a case CUP method is most appropriate method to determine ALP in respect of such transactions
[Indian Custom Order] : Appointment of Common Adjudicating Authority
F.No.437/33/2013-Cus-IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
*****
New Delhi, dated the 23rd May, 2013
ORDE R
In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued
under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns
the Show Cause Notice DRI F.No. 23/92/2010-DZU/1272-1283 dated 08.03.2013 issued by Additional
Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit, New Delhi in the case of M/s
J.R. International, 4498-A/11, Jai Mata Market, Tri Nagar, Delhi-35 and office at 405, NDM-1 Netaji
Subhash Place, Pitampura, Delhi and others the Commissioner of Customs, ICD, Tughlakabad, New
Delhi for the purpose of adjudication.
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
1. The Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit,
B-3 & B-4, 6th Floor Paryavaran Bhawan, C.G.O. Complex, Lodhi Road, New Delhi.
2. The Commissioner of Customs, ICD, Tughlakbad, New Delhi.
3. The Additional/Joint Commissioner of Central Excise, Delhi-IV, New CGO Complex,
NH-IV, Faridabad, Haryana-121001
4. The Additional/Joint Commissioner of Customs (Import), JNCH Nhava Sheva, Tal-
Uran, Dist-Raigarh, Maharashtra
5. Webmaster.cbec@icegate.gov.in
Costly Ethanol Import Likely To Make Petrol Pricier By 4 Rupees
NEW DELHI: Petrol could become costlier by about 4 a litre if the government compels oil firms to sell 5% ethanol-blended petrol across the country by next month as these companies would be forced to import huge quantities of the biofuel at exorbitant rates.
But, the Cabinet, which will meet soon to discuss the issue, may relax compulsory doping as it would want petrol prices to rise sharply, months before the announcement of general elections, government and industry officials said. Last November, the Cabinet had made sale of 5% ethanol blended petrol mandatory by June, and freed oil companies to negotiate price with domestic and overseas suppliers of the biofuel.
It is also expected that fuel retailers will raise petrol prices by at least 1 per litre by the end of this month because of rising oil prices in international markets and depreciation of the rupee against the dollar.
"The issue will be re-examined by the Cabinet soon in the light of new facts," a government official said. The oil ministry has circulated a Cabinet note earlier this month on compulsory blending of ethanol with petrol, highlighting the fact that this would force oil companies to import over two-third of 105 crore litres of the biofuel at higher rates, officials said.
"The Cabinet will take a final call - whether it would allow a sharp increase in petrol prices to save the environment or defer the move to spare the consumer," one official with direct knowledge of the matter said.
Ethanol is a by-product of sugarcane, and blended with petrol, it will help reduce the oil bill of the country as well as cut carbon dioxide and carbon monoxide emissions by around 15%.
India needs about 105 crore litres of ethanol for the 5% mandatory blending. But oil companies could secure less than one-third of this from domestic sources, which is in the price band of 38-45 per litre. The rest of ethanol has to be imported at about 70-91 per litre, costlier than petrol, officials added.
It has been a decade now that the government could not implement its ethanol-blended petrol plan in the entire country because of supply and pricing issues. Earlier, the government had decided to make 5% doping mandatory from October 2007 and 10% optional from October 2008, subject to availability of the biofuel, but the plan achieved little success.
Executives in Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan PetroleumBSE 1.28 % Corp Ltd ( HPCLBSE 1.28 %) say that there's no commercial sense to dope costly ethanol in petrol. "We will abide by the government's decision, but we have to rely on costly imports of ethanol, which would mean consumers will have to bear the price burden," an IOCBSE 0.76 % executive said.
Last month, state oil firms had purchased about 10 crore litres of ethanol from domestic sugar mills at an average price of 42 a litre, which was significantly higher than the government-fixed rate of 27 four years ago. "But imported ethanol is uneconomical without raising fuel cost," a BPCLBSE 1.26 % executive said.
Source:-economictimes.indiatimes.com
[Indian Custom Order] : Appointment of Common Adjudicating Authority
F.No.437/32/2013-Cus-IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
*****
New Delhi, dated the 23rd May, 2013
ORDE R
In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued
under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns
the Show Cause Notice DRI F.No. 23/08/09-DZU/1726-27 dated 03.04.2013 issued by Additional
Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit, New Delhi in the case of M/s
Bharat Sanchar Nigam Limited, Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, New Delhi-01
and Ericsson India Pvt. Ltd., Ericsson Forum, DLF Cyber City, Sector-25-A, Gurgaon, Haryana-02 the
Commissioner of Customs, (I&G) New Custom House, IGI Airport, New Delhi for the purpose of
adjudication.
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
1. The Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit,
B-3 & B-4, 6th Floor Paryavaran Bhawan, C.G.O. Complex, Lodhi Road, New Delhi.
2. The Commissioner of Customs, ICD, Tughlakabad, New Delhi
3. The Commissioner of Customs ,(I&G) New Custom House, IGI Airport, New
Delhi.
4. The Commissioner of Customs (Port), 15/1, Strand Road, Customs House, Kolkata- 01
5. The Commissioner of Customs (Airport), 15/1, Strand Road, Customs House, Kolkata-01
6. Webmaster.cbec@icegate.gov.in
[Indian Custom Order] : Appointment of Common Adjudicating Authority
F.No.437/31/2013-Cus-IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
*****
New Delhi, dated the 23rd May, 2013
ORDE R
In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued
under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns
the Show Cause Notice F.No.VIII/48/38/2012-DRI dated 04.04.2013 issued by Additional Director
General, Directorate of Revenue Intelligence, Chennai Zonal Unit, Chennai in the case of M/s
Papyrus and M/s Papco, No.85, Moody Street, 1st Floor, Meghdooth Chembers Fort, Mumbai-400001
and others to the Commissioner of Customs, (Port-Import), Jawaharlal Nehru Custom House, Nhava
Sheva, Raigad, Maharashtra and others for the purpose of adjudication.
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
1. The Additional Director General, Directorate of Revenue Intelligence, Chennai Zonal Unit,
Chennai.
2. The Commissioner of Customs ( Sea-Imports), Custom House, Chennai.
3. The Commissioner of Customs ( Port-Import), Jawaharlal Nehru Custom House, Nhava Sheva,
Raigad, Maharashtra .
4. The Commissioner of Customs , Custom House, Kolkata
5. Webmaster.cbec@icegate.gov.in
[Indian Custom Order] : Appointment of Common Adjudicating Authority
F.No.437/30/2013-Cus-IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
*****
New Delhi, dated the 23rd May, 2013
ORDE R
In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended)
issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby
assigns the Show Cause Notice F.No.DRI/AZU/INV-34/2011/4021 dated 22.03..2013 issued by
Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case
of M/s Aries Agro Limited, Aries House, Plot No.24, Deonar, Govindi East, Mumbai-400043 and
others to the Commissioner of Customs (Import) JNCH, Nhava Sheva for the purpose of adjudication.
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
1. The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad.
2. The Commissioner of Customs ( Sea- Port-Import), Custom House,Chennai
3. The Commissioner of Customs (Import), JNCH, Nhava Sheva.
4. Webmaster.cbec@icegate.gov.in
[Indian Custom Order] : Appointment of Common Adjudicating Authority
F.No.437/29/2013-Cus-IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
*****
New Delhi, dated the 23rd May, 2013
ORDE R
In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended)
issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby
assigns the Show Cause Notice F.No.DRI/AZU/INV-31/2012 dated 26.03..2013 issued by Additional
Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s
Ardor International Pvt. Ltd., B/1001-4, Premium House, B/h Handloom House, Ashram Road,
Ahmedabad-380009 (Gujarat) and others to the Commissioner of Customs, Custom House, Kandla for
the purpose of adjudication.
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
1. The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad.
2. The Commissioner of Customs, Custom House, Kandla.
3. The Commissioner of Customs (Import), JNCH, Nhava Sheva.
4. Webmaster.cbec@icegate.gov.in
Petitioner can’t raise plea of title to a property transferred to a third party in re-financing arra
CL : Where in refinancing operation of car taken by plaintiff in hire purchase agreement, plaintiff executed documents passing title of car to defendants, plaintiff was estopped by his own conduct from denying defendant's title to car
Passenger Vehicle Exports Enjoy Fast Start In 2013
Passenger vehicle exports, by both domestic and foreign companies, surged in the first four months of the year, according to the latest statistics.
From January to April, exports of sedans, sport-utility vehicles, multi-purpose vehicles, and minivans accelerated 24 percent from a year ago to 194,200 units, according to the China Association of Automobile Manufacturers.
Overall, automobile exports increased by a more modest 12.7 percent to 316,000 units during the same period, dragged down by a 1.7 percent dip in the exports of commercial vehicles, to 121,900 units.
"China has become an important passenger vehicle export hub," said Namrita Chow, manager and senior analyst of consulting firm IHS Automotive.
"Chinese automakers are entering more small and emerging vehicle markets, and increasing overall total vehicle export volumes - but the longer-term aim is to export greater volumes to large markets."
According to figures from IHS, Chinese passenger vehicle exporters continue to be led by local automakers Chery Automobile Co, Zhejiang Geely Holding Group and Great Wall Motor Co Ltd as they push sales in emerging markets.
In the first quarter, Chery exported 33,316 vehicles to more than 20 markets, including Argentina, Algeria, Azerbaijan, Brazil, Iran, Iraq, Russia, Egypt and Kenya.
Geely delivered 24,333 vehicles to more than 15 markets, including Azerbaijan, Russia, Ukraine, Iraq, Saudi Arabia and Egypt. Great Wall exports reached more than 22 markets, including Algeria, Angola, Australia, Bolivia, Columbia, Kenya, Israel, Russia and Ukraine.
"This is similar to the top export destinations of Chinese automakers in 2012, where there is little competition from other major players," Chow said.
Geely, which made its name globally by acquiring international car brand Volvo in 2010, exported more than 100,000 vehicles in 2012, with annual growth of 164 percent, the fastest growing export in China.
The company's Vice-President Zhang Aiqun said that she hopes Geely's exports can reach 200,000 units this year, though the company set a conservative target of 160,000 units earlier this year.
General Motors, the largest foreign automaker in China by sales, also sees China as one of its global manufacture bases.
"We are always looking for opportunities to sell our vehicles outside China with a focus on emerging markets," said Bob Socia, president of General Motors China.
In 2012, General Motors ranked third in vehicle exports from China, with total deliveries of 77,000 vehicles.
In the first quarter of this year, its exports raced more than 60 percent to a record 25,000 units.
"We should finish the year with between 100,000 and 130,000 units," Socia added.
Source:-www.china.org.cn
In A First For India, Gujarat Plans 5-Yr Export Policy
NEW DELHI: Gujarat, which accounts for about a quarter of India's total exports, is mulling a five-year export policy to focus on value-added exports in sectors such as textiles, agriculture and dairy.
The move by the top exporting state in the country comes on the back of sagging efforts by the centre to boost dwindling exports.
The first state in the country to have an export policy, Gujarat plans to increase the share of exports from the state from 25% to 30% in five years.
As a precursor to the policy, the Federation of Indian Exports Organization undertook a study for Gujarat on the state's export competitiveness and identified sectors with export potential.
"We are working on improving exports from the state and will take steps to increase the share to 35% of total India's exports by 2020," said a state government official.
The government may announce incentives ranging from exemption from value-added tax (VAT) in some sectors to focus market scheme and focus product scheme to offset high freight cost and other externalities to select international markets and promote products with high-export intensity.
India's overall exports declined by 1.76% in 2012-13 to $300.6 billion, as demand in the US and the EU subsided on slowing economy. Following this the centre announced a series of incentives in the annual supplement of the foreign trade policy. "Centre's policies cannot be so specific, whereas the state policies are made as per the needs of the state. So you need such simultaneous policies," said Manoj Pant, professor, JNU.
Given that over 90% of Gujarat cotton goes to other states for value addition, emphasis would be laid on readymade garments. The state already has potential in the textile sector, as nearly 23% of the state gross domestic product comes from textile and related industries. Other areas that Gujarat contributed to India's exports in 2011-12 include 70% in the gems and jewellery sector, 30% in pharmaceuticals, 20% in textiles, 12% in engineering and 18% in chemicals.
"Gujarat should strive to increase its exports by shifting its focus from lower-end markets to value-for-money markets," said Ajay Sahai, director general and CEO, FIEO.
As of now, it has been supplying domestic and international markets with raw materials but with proper R&D and focused investments, Gujarat should introduce high value-added products of global standards. Only a quarter of export units have an export house or upward status for special benefits, the FIEO study noted.
The state has 41 minor and intermediate ports and 55 SEZs, involved in sectors like biotechnology, power, handicraft, gems & jewellery. Gujarat also has a comparative advantage in many commodities, like spices and seeds, mineral and metals and cotton.
Source:-economictimes.indiatimes.com
'No Provision For Refunding Unutilised Credit On Account Of Deemed Exports'
27-May-2013
In the new Foreign Trade Policy (FTP), an important change has been made - notably, that the Served From India Scheme (SFIS) benefit will be allowed on Net Foreign Exchange (NFE) earned. How will NFE be calculated?
The provision referred by you was introduced on 18.04.2013 and will be applicable for services exported during the current year. For exports made in the previous years, you can claim SFIS on the basis of foreign exchange earned. At present, Para 3.6 of the Handbook of Procedures, Vol. 1 as well as the form ANF 3B deal with only the claims on the basis of foreign exchange earned. I believe that after the change in FTP on 18.4.2013, the consequential amendments in procedures and relevant application form for making SFIS claims on the basis of NFE will soon be notified.
We have a lot of unutilised Cenvat Credit because of deemed exports made without duty payment for supplies to export-oriented units, mega power projects, etc. Can we get any refund of that? If not, how can we stop further accumulation of Credit, as we have more and more deemed exports?
At present, Rule 5 of Cenvat Credit rules, 2004 grants refund of unutilised Credit on account of exports under bond/UT-1 to manufacturers and to service providers. There is no provision to refund unutilised Credit on account of deemed exports. You can curb further accumulation of Credit by obtaining advance authorisation and procuring all your inputs, whether imported or indigenous, without duty payment. Similarly, you may try to procure your capital goods also under Export Promotion Capital Goods scheme.
For service providers, the biggest liability is service tax. Given that the FTP now restricts SFIS on NFE basis, is there any good reason why payment of service tax has been allowed only through duty credit scrips issued under Focus Product Scheme, etc., but not SFIS? Why doesn't the government allow even free transferability of SFIS? With lot of useless unutilised SFIS scrips lying with me, what should I do?
I have no idea why the government thought fit to restrict SFIS on NFE basis, or why SFIS is not being allowed for payment of service tax, or why transferability is not being allowed for SFIS. It appears that the lobby of the service providers and the export promotion council for services are not strong enough or persuasive enough to convince the concerned authorities to grant you benefits beyond what you have got. You may also note that Chapter 3 benefits are rewards and the government has all the discretion to decide what to grant and what not to.
As a SSI unit filing quarterly returns, can we avail ourselves of Cenvat credit of May 2013 and June 2013 for payment of duty of April 2013?
For the quarter April-June, you can pay the duty by July 5 by utilising the Credit available as on June 30, as per second proviso to Rule 3(4) of Cenvat Credit Rules, 2004.
Source:-www.business-standard.com
Deonar Abattoir May Lose Export Dept
27-May-2013
The export department of Deonar abattoir is likely to be shut down if the BMC does not renew the Agricultural and Processed Food Products Export Development Authority (Apeda) certificate before June 4. This will have a cascade effect on the entire abattoir operation, as its major revenue comes from export.
According to the civic officials, the Centre issues the Apeda certificate for exports of goods. However, according to the new guidelines, it requires a no-objection certificate (NOC) from the Maharashtra Pollution Control Board (MPCB). However, with both the rendering plant and biogas plant at Deonar slaughterhouse not being functional, the possibility of getting a NOC from the MPCB is very bleak.
Rendering plant converts animal waste like blood, intestines, feathers and hair into stable, value-added materials, while the biogas plant turns slaughterhouse waste into
energy.
Civic sources said that both the plants at the Deonar abattoir were shut down in 1986 — more than 25 years ago. The MPCB had issued a notice to the slaughterhouse asking when they would be commissioned again. These plants need to be started immediately to obtain the NOC from the MPCB for getting the Apeda certificate.
Corporator Shaikh Mohammed Siraj said, “If the BMC does not get the MPCB’s nod, the ramifications involve heavy revenue losses in foreign currency as well as hundreds of workers losing their jobs at the abattoir. The Apeda certificate needs to be renewed before the deadline. In failing to do so, the exports will have to be shut down. This will ultimately result in the closure of the abattoir.”
Civic officials said that funds are needed to restart the rendering and biogas plants. General manager Pramod Dethe said, “We have convened a meeting on Monday to discuss the issue and hopefully a positive solution will be reached.”
Source:-www.asianage.com
India Gold Import Premiums Halve
27-May-2013
NEW DELHI—Premiums for imported gold in India have halved from near-record levels last week, reflecting higher volumes being channeled through banks after a new import rule temporarily disrupted supplies to the world's largest gold consumer.
The central bank's recent move to tighten easy availability of credit for importers combined with a surge in bargain hunting in India since prices fell to two-year lows in mid-April had caused a supply shortage.
The supply squeeze had prompted importers to pay premiums of between $10 and $15 an ounce to international bullion suppliers—about three times the usual level during times of peak demand—to speed up deliveries.
However, premiums have dropped to $5-$7 an ounce this week, said Ketan Shroff, director at Penta Gold Pvt. Ltd., a Mumbai-based bullion dealer.
The lower premiums will benefit Indian consumers, as the higher cost of imported gold is usually passed on to them. Most Indian consumers have been willingly paying the extra money, as their total cost was still far less than three months ago.
India's government allows gold imports only through a handful of designated state-run banks and a clutch of state-backed and private trade agencies.
Until two weeks back, companies could place gold import orders with one of the designated banks by paying a margin up front and the balance on delivery.
Subsequently, the Reserve Bank of India changed the rule, as easy availability of credit had encouraged speculative imports, leading to a larger outflow of dollars that has weighed on the local rupee currency.
The change had caused a temporary shortage, as importers took time to switch over to making upfront payments.
The drop in premiums may also be due to waning wedding-season demand that ends mid-June.
"Most of the buying for weddings is done a week to a two weeks in advance. We are likely to see more demand now from last-minute shoppers," said Ashish Mundhra, director of Mundhra Bullion, a large southern India-based private bullion dealer.
Gold purchases also start tapering off from mid-June as farmers save money to plant crops during the annual monsoon season.
Source:-online.wsj.com
VCC or VCF are pass-through vehicles; income received by investors to be painted with its original n
IT : Even if there is no incriminating material to indicate any undisclosed income or income escaped assessment during original assessment completed under section 143(3) for any particular year, Assessing Officer is bound to proceed under section 153A for all six years immediately preceeding assessment year in which search was conducted
Remuneration to Danish nationals not taxable in India if it is not borne by a PE of NR in India
IT/ILT : Where Danish nationals were remunerated in respect of employment in India for a period not exceeding 183 days in concerned fiscal year and such remuneration was paid by or on behalf of an employer, who was not a resident of country and, in any event, remuneration was not borne by a permanent establishment or a fixed base, which employer had in India, said remuneration would be taxable in Denmark and not in India
Net results of two eligible units will be entitled to sec. 80HHC deductions
IT: If there is a loss in either of two units of assessee then loss of one unit has to be adjusted against profit of other unit in computing deduction under section 80HHC
Sum remaining after adjusting loss of one unit with profit of another unit is eligible for sec. 80HH
IT : Where assessee earned profit from trading export and incurred loss from manufacturing export, deduction under section 80HHC has to be allowed only from net profit from both activities
Excess ST to be refunded to service provider only if recipient hadn’t taken credit thereof
ST : Where a service provider had charged and paid excess service tax, which was not payable to revenue, he can be allowed refund claim thereof only if service recipient had not taken credit of such excess service tax
Actual taxability of NR individual in UAE isn’t a pre-condition to grant benefit of India-UAE treaty
IT/ILT : Actual taxability of NR individual in UAE isn't a pre-condition to grant benefit of India-UAE treaty
Factoring constitutes ‘debt collection’ service and faces service tax liability
ST/ECJ : Factoring (with or without recourse) constitutes debt collection services and does not amount to 'transaction merely in an actionable claim'; it is liable to service tax
Concealment penalty quashed as assessee offered additional income in revised return to avoid litigat
IT : Where assessee to buy peace and to avoid protracted litigation filed revised return disclosing additional income, imposition of penalty under section 271(1)(c) upon assessee on plea that he had furnished inaccurate particulars of income was not justified
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