IT : Assessing Officer was not justified in making addition to gross profit rate declared by assessee comparing case of another assessee engaged in same line of business when assessee's past history was available and there was no material difference in facts pertaining to assessment year under consideration and current year
Friday, 31 May 2013
Winding up petition admitted as petitioner Co. failed to establish payment of alleged rental charges
CL : Where company had made all payments by cheque towards monthly rent in respect of property let out by petitioner, company's stand that some payments were made other than by cheque and receipt therefor was not issued by petitioner could not be accepted
Market Development Assistance Hike Cheers Garment Exporters
COIMBATORE: The increase in benefits under the market development assistance (MDA) scheme has cheered garment exporters. The MDA scheme helps exporters to participate in international fairs and buyer-seller meets.
The Centre has issued revised guidelines, which offer additional benefits, in the MDA scheme. The additional benefits will come into effect from June 1. The u pper ceiling for availing benefit under MDA has been revised from Rs 15 crore to Rs.30 crore FOB (free on board) value of exports of exporting units in the preceding yea r.
"The hike would help and encourage more number of exporting units in Tirupur to promote their products abroad," said A Sakthivel, President, Tirupur Exporters' Association. Financial support to the tune of Rs.40 lakh would be provided to export promotion councils like AEPC (Apparel Exports Promotion Council) when the number of participants exceed 75. "This positive measure would encourage exporters to participate in international fairs," Sakthivel said.
There has also been an enhancement in the financial ceiling for participation in trade fairs and exhibitions to various destinations under the scheme. For 'Focus Latin American' countries, the increase was from Rs.1.8 lakh to Rs.2.5 lakh. The ceiling has been hiked from Rs. 1.5 lakh to Rs. 2 lakh for 'Focus African' countries, CIS countries, Focus ASEAN, Australia and New Zealand.
Source:-http://timesofindia.indiatimes.com
India Turmeric Slips On Weak Exports; Jeera Steady
Indian turmeric futures slipped on Friday due to lack of demand from overseas buyers, higher carry-forward stocks and prospects of a good monsoon.
* At 0954 GMT, the key June turmeric contract was lower 0.10 percent at 5,926 rupees per 100 kg on the National Commodity and Derivatives Exchange.
* "Higher stocks with farmers, especially in Erode, coupled with huge carryover stocks may pressurise prices," Angel Commodities said in a research note.
Erode is one of the key markets in Tamil Nadu.
* Spot turmeric rose 27 rupees to 6,002 rupees per 100 kg in Nizamabad, a key market in Andhra Pradesh.
JEERA
Indian jeera, or cumin seed, futures were steady on overseas demand though a rise in local supplies and higher production weighed on sentiment.
* The actively traded jeera contract for June delivery was 0.11 percent higher at 13,062.5 rupees per 100 kg.
* "Local demand is moderate but exports are seen picking up in coming days. Lack of supplies from other producing countries is seen boosting exports from India," said Jai Kumar Jain, a trader from Unjha, a key market in Gujarat.
* India is the largest jeera producer in the world, followed by Syria and Turkey.
* Spot jeera edged up 4 rupees to 13,455 rupees per 100 kg in Unjha.
Solurce:-http://in.reuters.com
U.S Emerging As Major Export Market For Black Tea
The United States is emerging as a major importer of tea and would begin governing prices of black tea, Tea Board Chairman M G V K Bhanu told exporters here on Friday. He also told them to focus on markets preferring high-value tea.
Five countries he said, which should be focussed on, are: Russia, Iran, Kazakhstan, U.S. and Egypt.
Mr. Bhanu told The Hindu later that he would hold bi-annual sessions exclusively with exporters, as there was need for structured interaction with them.
“There are new markets developing like the U.S., Iraq and Sudan, which exporters need to be aware of,” he said.
Mr. Bhanu told the permanent exporters, (i.e. those holding export licences given by the regulator) that the overall consumer trend was moving towards high quality tea, as people had now become quality conscious and were willing to pay more for high quality tea.
“We will get greater value-realisation if we concentrate on exporting to those countries which prefer high-quality tea”, he told exporters.
Dominant player
He said that although, at present, the black tea segment was governed by Russia and CIS countries, the next two decades would see the U.S. dominating the scene.
Enquiries revealed that U.S. imports around 125 million kg of tea— mostly from Argentina. India’s share stood at around 14 million kg. “With the expansion of tea and coffee chains, the demand for quality Indian teas has been increasing in the U.S.” , the Chairman of ITA and Managing Director of Goodricke Tea A N Singh told The Hindu.
Indian tea exports average at 200 million kg with the unit realisation averaging at about Rs. 175.3 per kg.
Source:-http://www.thehindu.com
AO can’t initiate reassessment to cut down sec. 10B exemption merely on change of opinion
IT : Where assessee's claim for exemption under section 10B was allowed after scrutinising it in detail, subsequently Assessing Officer could not initiate reassessment proceedings merely on basis of change of opinion that apportionment of expenses between two units of assessee i.e. EOU and non-eligible unit, was not proper
Gain on sale of shares acquired in IPOs and held for short time span will be taxable as ‘business pr
IT: Where assessee used to apply initial public offer (IPO) in many companies and subsequent to allotment of shares sold same within 30 days, gain arising on sale of shares was taxable as business income and not short-term capital gain
If assessee isn't able to conclude contracts, its marketing services to AE's can't be termed as comm
IT/ILT : Where lower turnover filter had been applied for selection of comparables, application of upper turnover filter was also warranted
India Corn Seen Up On Slow Supply, Export Demand
31-May-2013
Corn futures in India are expected to be higher next week on a slowdown in supplies from Bihar due to rains, a pick-up in local demand and some fresh export enquiries.
India expects average rainfall in 2013. The weather office has forecast the onset of monsoon over the Kerala coast by June 3, give or take four days, a time period treated as normal.
Maize is cultivated twice a year, during summer and winter, in India, Asia's largest exporter of the grain, with the major contribution coming from the summer crop.
"Rains in Bihar have restricted the supplies. If rains continue for some more time then it could cause some damage to the crop," said Kanhaiyalal Agarwal, a trader from Bangalore.
The key July contract for maize rabi rose 3.24 percent to close at 1,433 rupees($6.53 per bushel) per 100 kg on the National Commodity and Derivatives Exchange (NCDEX). It hit a contract high of 1,444 rupees earlier in the day.
Chowda Reddy, a senior analyst at JRG Wealth Management, expects the July contract to rise to 1,480 rupees by next week.
India's corn output is expected to be 21.82 million tonnes in 2012/13, as per the farm ministry's third advance estimate, as against 21.76 million tonnes a year earlier.
In Chicago, the key July corn contract on CBOT was up 0.38 percent at $6.56-3/4 per bushel at 1206 GMT.
Additional rainfall from late Thursday into the weekend will further stall corn and soybean plantings in the U.S. Midwest, threatening to trim acreage and yield potential for each crop, an agricultural meteorologist said on Thursday.
KAPASHKHALI
Indian cottonseed oilcake, or kapashkhali, futures ended up and are expected to continue to trade higher next week tracking a firm spot market, where demand was good amid thin supplies.
Kapashkhali is a by-product of cottonseed and is used as cattle feed, mostly for dairy animals, in northern India.
Cotton supplies have been very thin in the local market as the season has drawn to a close.
"Demand from local traders has improved and prices are likely to improve by another 50 rupees from the current levels," said Mayur Bhindora, a trader from Rajkot, Gujarat.
The key July contract on the NCDEX closed up 0.87 percent at 1,622 rupees per 100 kg.
At Akola, a key market in Maharashtra, cottonseed oilcake rose 23 rupees to 1,568 rupees per 100 kg.
Source:-http://in.reuters.com
Essar Ports To Develop 3 Iron Ore Berths At Visakhapatnam Port
NEW DELHI: Essar Ports, through its wholly owned subsidiary Vadinar Oil Terminal Ltd, has emerged as the highest bidder for mechanisation and operation of three iron ore berths at Visakhapatnam Port.
These three berths will have a combined capacity of 23 MMTPA, Essar PortsBSE -4.23 % said in a statement.
On commissioning of this project, the company's total capacity for iron ore export at the east coast will become 39 MMTPA with 4 highly mechanised iron ore berths -- three in Visakhapatnam Port and one in Paradip Port.
The company can start the operation of the two outer harbour berths within next 3-4 months as the upgradation and operation at the terminal will go simultaneously.
Vishakhapatnam port handled 12.3 million tonnes of iron ore during FY'13 in spite of slump in iron ore export, it added.
Source:-http://economictimes.indiatimes.com
Rupee Falls To 11-Month Low Of 56.51
MUMBAI: The domestic currency fell to an 11-month low of 56.76 against the dollar on Friday on the back of what dealers said was dollar purchases by defence and oil refiners. However, there was a correction with sales from exporters pulling back the rupee to 56.51 level towards close - down 13 paise from its previous close of 56.38.
"It was not necessarily an India story. The dollar has been gaining against all emerging market currencies following signs that the US economy is on the mend. Besides expectations that there will be a gradual reduction in quantitative easing there has been a massive sell-off in emerging market ETFs (exchange traded funds)," said Harihar Krishnamoorthy, treasurer, First Rand Bank.
The rupee, which traded at 53.82 at the beginning of the month, has slipped by 2.69 paise in four weeks - its biggest monthly decline in a year. Its lowest in the last 12 months was 57.14 on June 27, 2012. On Friday, sentiments were hit by a 455-point drop in the sensex which again tracked global movements particularly a sharp fall in the Nikkei in the previous day which had wiped out all of the gains by Japanese index in May. News that the gross domestic product grew by only 5% in FY13 did not surprise the market but acted as a dampener on sentiments.
Dealers said that the rupee appears to have found support at the current level having recovered nearly 25 paise without RBI intervention. However, some traders said that there were some dollar sales by public sector banks and these could have been at the behest of the central bank. In the forward market the one year forward rupee was dealt at 60 against the dollar. The fall in the rupee was, however, good news for IT stocks with the BSEIT index rising by almost 1%.
Source:-http://timesofindia.indiatimes.com
Notification No 14 (RE-2013)/2009-2014 dated 31-05-2013
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
NOTIFICATION No. 14 (RE-2013)/2009-2014.
New Delhi, Dated : 31 May, 2013
S.O. (E) In exercise of powers conferred by Section 5 read with Section 3(2) of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) and also read with Para 1.3 and Para 2.1 of the Foreign Trade Policy, 2009-2014, (as amended from time to time), the Central Government hereby makes the following amendment in the Foreign Trade Policy, 2009-2014:
1. Paragraph 2.1.2 of the Foreign Trade Policy stands substituted as follows: -
| “2.1.2 Prohibition on Direct or Indirect Import and Export from /to Democratic People’s Republic of Korea | Direct or indirect export and import of following items, whether or not originating in Democratic People’s Republic of Korea (DPRK), to / from, DPRK is ‘Prohibited’:
|
2. Purpose of this notification:
- This notification substitutes the updated versions of UN and IAEA documents, namely, INFCIRC/254/Rev.11/Part 1 and INFCIRC/254/Rev.8/Part 2 (IAEA documents), S/2012/947, S/2009/364 and S/2006/853 (UN Security Council documents) and Annex III to UN Security Council resolution 2094 (2013) for the existing documents mentioned in Para 2.1.2 of FTP.
- This notification also adds luxury goods specified in Annex IV to UNSC Resolution 2094(2013) to the prohibition list for the purpose of export and import, to and from, DPRK.
(Anup K. Pujari)
Director General of Foreign Trade
E-mail : dgft@nic.in
[Issued from File No. 01/91/180/991/AM 07/Export Cell(SCOMET)]
No concealment penalty if exp. claimed in current year and withholding taxes deposited in subsequent
IT : Provision of sec. 40(a)(i) would be deemed to have been substantially complied with if taxes withheld from payment made to non-resident were deposited subsequent to the previous year in which expenditure was claimed by assessee. Hence, concealment penalty would not be leviable
An insurance broker to provide info on its capital structure and shareholding details to IRDA yearly
INSURANCE : IRDA (Insurance Brokers)(Second Amendment) Regulations, 2013
Losses from windmill business, being an eligible business under sec. 80-IA, can be set off against o
IT : Losses from windmill business, i.e., eligible business under section 80-IA, can be set off against other heads of income
RBI issues revised Prudential Guidelines on Restructuring of Advances by Banks and Financial Institu
BANKING : Review of Prudential Guidelines on Restructuring of Advances by Banks and Financial Institutions
Profit from dealing in shares is business income if transactions are carried out methodically with p
IT : Where purchase and sale transactions in shares were entered into by assessee on regular and systematic basis with profit motive, income arising from said transactions was to be taxed as 'business profits'
SEBI amends circular on 'comprehensive guidelines on sale of shares through offer for sale mechanism
SEBI : Comprehensive Guidelines on Offer for Sale (OfS) of Shares by Promoters Through the Stock Exchange Mechanism
Assessee can take credit of excess payment of ST under rule 6(3) of Service Tax Rules without any ti
ST : There is no time-limit indicated in rule 6(3) of Service tax Rules, 1994 for assessee to utilize or take credit of excess tax paid by him on advances towards services, which are not provided
CBDT announces Rules for notification of agricultural extension projects under sec. 35CCC
IT : Income-Tax (Fourth Amendment) Rules, 2013 - Insertion of Rules 6AAD & 6AAE and Form Nos.3C-O & 3CP
SEBI modifies Securities Lending and Borrowing framework
SEBI : Review of The Securities Lending and Borrowing (SLB) Framework
Non-compliance with pre-deposit order leads to dismissal of appeal
ST : If assessee does not comply with pre-deposit order, his appeal is liable to be dismissed
Size of Cos and their economies of scale are vital factors for selection of comparables for TP study
IT/ILT : While selecting comparables to determine ALP of international transactions size of two companies and related economies of scale under which they operate are important factors in comparability
Mere intimation by ITO won’t seal the fate of trust registration, unless CIT passes an order to disp
IT : A communication or even an order signed by Income-tax Officer cannot be treated as disposal of application under section 12AA
Services of call centre to financial institutions for sale of financial products are liable to ST
ST/ECJ : Call centre services provided to financial institutions in relation to sale of financial products are liable to service tax; they do not amount to 'trading in securities/financial products' as they do not create, alter or extinguish parties' rights and obligations in respect of securities
Sum incurred on delivery, servicing and installation of traded goods can’t be charged to service tax
ST : Expenditure incurred by assessee towards delivery, servicing and installation expenses on UPS systems traded by it cannot be charged to service tax in its hands, as no services were rendered by assessee
A person can’t object to a proposed scheme of amalgamation if he ceases to be a shareholder of the C
CL : Where objector who had objected to proposed scheme of amalgamation in his capacity as shareholder had transferred his shares, objector was not shareholder of transferor and transferee companies and, therefore, had no locus to object to proposed scheme
Payment of ST with interest prior to show cause notice saved assessee from rigours of penalty
ST: If assessee pays wrongly taken credit along with interest prior to issuance of show-cause notice, penalty is not leviable
Sec. 35E deduction couldn’t be allowed to assessee if mining work was performed by a third party on
IT : Where mining work was carried out by third party, assessee was not eligible for deduction under section 35E
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