IT : Where assessee had undertaken projects of exploration of oil and natural gas and made payment towards seismic survey and pre-mining activities, said payment would be liable to TDS under section 194J and not 194C
Monday, 3 June 2013
Commissioner(A) can’t dismiss appeals on the grounds not raised in show cause notice
ST : Place of removal in case of export of goods has to be treated as port of export; hence, assessee is eligible for credit of services used for export of goods up to port of export
HC nods to revival scheme when approved by majority and when investor brings in funds to pay off cre
CL : Where scheme of revival of company was approved by over 90 per cent majority, strategic investor brought money and propounder assured payment of future liability, sanction to scheme was to be accorded
Hard disk and RAM aren't independent machineries; sum paid for same is allowable as revenue exp.
IT : Expenditure incurred on CD ROM, hard disk drive and RAM is allowable as revenue expenditure
Gold Imports Jump; More Curbs In The Offing: Finmin
Concerned over a sharp jump in gold imports, the government on Monday warned of further corrective measures that could include a ban on sale of gold coins by banks and prohibition on import of the precious metal for trading.
Stating that the country could not afford such high levels of gold imports, finance minister P Chidambaram said there may be a review of the import policy. "For May, the import of gold was 162 tonnes," he said after a meeting of the Financial Stability Development Council (FSDC).
The review could include measures such as barring banks from selling gold coins. "More steps will have to be taken to reduce gold imports. Export import policy on gold will have to be reviewed. We may consider banning gold coin sales by banks," said Arvind Mayaram, secretary, department of economic affairs. Later in the day, commerce and industry minister Anand Sharma also met Chidambaram to discuss the issue. "We have serious concerns. We can't allow a situation where gold (imports) in the last two months have reached a stage where it is causing huge stress," he said after the meeting, adding that there will be more corrective measures.
"Banks have taken corrective measures. And I am going to review it. And we will ensure that only for actual users gold is imported not for trading purposes. Except gems and jewellery and the gold refinery..., I don't think it should be allowed for trading," he said.
India is the largest consumer of gold and imports of the yellow metal is the second largest item in the country's import bill and directly impact the burgeoning current account deficit.
Gold and silver imports during April, 2013 jumped by 138 per cent to $7.5 billion against $3.1 billion a year ago, taking the country's trade deficit to $17.8 billion. In 2012-13, gold imports stood at around 830 tonnes.
Concerned by the high current account deficit that touched a record 6.7 per cent of the GDP in the third quarter of last fiscal, the government has taken a number of measures to curb gold imports. These include hiking the import duty on the yellow metal to 6 per cent as well as introduction of inflation indexed bonds that would provide a hedge against prices to investors..
Last month, the Reserve Bank of India had imposed curbs on import of the yellow metal by banks. Besides, it has also put restrictions on banks and NBFCs for providing loans against gold coins as well as units of gold ETFs.
For May, import of gold was 162 tonnes, says finance minister P Chidambaram
Measures such as barring banks from selling gold coins might be implemented
Source:-www.indianexpress.com
Indigo To Import 28 A320s In '13, '14
3-Jun-2013
The country’s largest airline by passenger traffic IndiGo today said it has received permission from the government to import 28 A320 aircraft in 2013 and 2014.
The airline would add 16 180-seater aircraft to its existing fleet of 66 by the end of this year, and another 12 aircraft by December 2014. The deliveries are a part of the $6 billion order the company had placed with Airbus for 100 aircraft in 2005. "The additional aircraft will enable IndiGo to take its low fare and hassle-free service to more customers and enable stronger connectivity within India and abroad," the airline said in a statement.
Currently, IndiGo holds the largest domestic market share at 29.8% as of April 2013. The airline operates 422 flights connecting 33 destinations in the domestic market and five destinations globally.
Overall, the airline has plans to increase its fleet to 120 aircraft by 2016-17. With this, IndiGo expects to have a share of 45% of the total capacity of low-cost carriers (including Air Asia) in the country. While the airline has firmed up a blue print to fly out of 40 destinations the domestic markets by 2017, it plans to expand operations overseas by increasing the number of frequencies on international routes.
The low cost passenger carrier is currently in an expansion mode. Recently, it announced launch of seven new flights on its domestic network from May 30, including direct flights between Mumbai-Jammu, Chennai-Kochi, Mumbai-Srinagar, Chennai-Thiruvananthapuram, Mumbai-Thiruvananthapuram, Jammu-Srinagar and Mumbai-Kochi. The company has announced it will commence Mumbai-Muscat service with daily direct flights from June 15.
In the single largest deal in terms of the number of aircraft ordered, Indigo has additionally sought deliveries of 180 A320 neo and 30 A320 (standard version) between 2016-2025.
Source:-www.business-standard.com
AO shall refer the matter to the TPO if quantum of international transaction with AE exceeds Rs. 5 c
IT/ILT : Where amount of international transactions entered into by assessee with its AEs exceed Rs. 5 crore, Assessing Officer is duty-bound to refer matter to TPO for determination of arm's length price in respect of said transactions
Fresh Milk For Export
3-Jun-2013
THE Ministry of Agriculture hopes to make its first collection of fresh milk destined for export at the end of the month.
This is after a dairy chilling centre in Ba was opened earlier this year and the registration of dairy farmers who will supply milk for export.
Deputy permanent secretary for agriculture Uraia Waibuta said officials at the ministry were working with dairy farmers in Ba for the first collection.
"We've done the registration process of farmers and our officials are still in the process of training them in basic farming practices and all the processes involved in running a dairy farm," Mr Waibuta said.
"We've set out specific targets for them to meet and hopefully we can make our first collection by the end of the month."
Source:-www.fijitimes.com
Indian Rupee Opens Higher At 56.56 Per Dollar
The Indian rupee opened with a gain of 20 paise at 56.56 per dollar versus 56.76 yesterday.
NS Venkatesh, IDBI Bank said, "The rupee continues to trade with a weak bias. There is an expectation of further rise on curb in gold imports and a rate cut in the upcoming monetary policy due to lower inflation. All these factors could be rupee positive. The range for the day is seen between 56.30-56.85/USD."
The euro cooled off to 1.30 levels after rising to 1.31 to the dollar. The dollar index steadies after slipping as much as 1 percent to 82.42 levels.
Source:-www.moneycontrol.com
India Adds More Goods To List Of Items Prohibited To Trade With North Korea
3-Jun-2013
NEW DELHI: Keeping in tune with fresh UN sanctions, India today added a few more items, including gems and jewellery, to its list of items prohibited for trade with North Korea, directly or indirectly.
The Directorate of Foreign Trade (DGFT) issued a notification enlisting the new items that are barred for trade with North Korea, which is facing UN sanctions because of its nuclear programme.
The items include a particular kind of lubricant, corrosion-resistant material and certain chemicals which can be used for nuclear and missile technology, it said.
The list also includes luxury goods like gems, jewellery, precious stones, yachts, luxury vehicles, racing cars and station wagons, it added.
These items have been added to the list of items prohibited for direct or indirect import or export from or to North Korea, the notification said.
The notification was issued against the backdrop of a fresh UN resolution against North Korea, adopted on March 7, 2013.
India has been implementing the sanctions imposed on North Korea as it is of the view that the nuclear programme pursued by that country was not beneficial for the region.
Source:-economictimes.indiatimes.com
Diamond Exports Jump As Dollar Gains Against Rupee
3-Jun-2013
Strengthening of US dollar against Indian Rupee has helped exports of cut and polished diamonds from India. The exports in value terms has jumped by close to 44 per cent during April at Rs 9,965 crore against Rs 6,911 crore in the same month last year.
"There is a growth in exports with improvement in US economy. Also, increase in Dollar value against Rupee has helped realize better value for exports," said a diamond exporter from Surat.
However, industry maintained that strengthening of Dollar against Rupee would help exporters, while imports of rough diamonds will become costlier thereby reducing margins for diamond polishing units.
Indian Rupee fell by 4.9 per cent during the month of May to 56.55 per dollar today lowest in 11 months.
"With weakening of Indian rupee, imports of rough diamonds have turned costlier. This washes away profits for polishing units. Only exporters will gain from this currency situation," said Praveen Nanavati, a diamond expert.
"Since dollar value has increased, exports in value terms has grown sharply, while volume growth may not be that significant," he said.
Gems and Jewellery Export Promotion Council (GJEPC) data showed that exports of cut and polished diamonds during April stood at 2.54 million carats against 2.23 million in the corresponding month last year, showing a growth of 13 per cent.
GJEPC data further showed that since January 2013, diamond exports in terms of carat has been on a decline. In January 2013, India exported 3.12 million carats of diamonds, which dropped to 2.8 million carats in February. In March the cut and polished diamonds exports stood at 4.55 million carats.
While the Reserve Bank of India (RBI) has expressed concern about the current account deficit (CAD), a report by GJEPC on the gems and jewelry industry showed that the industry made a positive contribution to reducing India's current account deficit ·by controlling imports and increasing exports.
It further noted that total gem ·and jewelry exports fell by 3 per cent year-on-year to US $ 4.39 billion during fiscal year 2011-12, while total imports rose 2 per cent to US $ 3.84 billion.
However, industry players are eye rise in exports to continue with strengthening of overseas economies. Latest government data showed that India's gross domestic product (GDP) grew by 4.8 per cent in January-March 2013 quarter, while for the fiscal 2012-13 the GDP growth stood at 5 per cent.
"We need to boost exports to strike a balance against high imports. Economic growth has become a serious concern now. US and European markets are showing some signs of recovery. They constitute a big market for diamond industry so that is a big hope for us," said a member of Surat Diamond Association (SDA).
Source:-www.business-standard.com
Deposit of tax deducted under sec. 194-IA shall be accompanied by Form 26QB Challan; TDS certificate
IT : Income-Tax (Fifth Amendment) Rules, 2013 - Amendment in Rules 30, 31 & 31A and Insertion of Form Nos. 16B & 26QB and Substitution of Form NO. 24Q
Delhi HC interprets sec. 80-I broadly; conditions stipulated by sec. 80-I to be satisfied only in in
IT : Delhi HC authoritatively interprets section 80-I; Conditions stipulated by sec 80-I need to be satisfied only in initial AY
'Limitation on benefit' clause denies treaty benefit for non-remittance of interest to Singapore
IT/ILT : Tax refund received by a Singaporean resident won't be taxed at concessional rate of 15% under article 11 of India-Singapore DTAA, as mere proving that it was not deposited in bank account in India won't be sufficient to prove its receipt in or remittance to Singapore to satisfy limitation of benefit clause
Banks can’t claim sec. 36(viia) allowance in excess of provision actually made for bad debts
IT : Allowance under section 36(1)(viia) could not be claimed in excess of provision of bad debts actually made in books of account
Penalty can’t be levied if dispute regarding liability to pay service tax subsists
ST : Where there were disputes regarding taxability and a circular was issued later on in favour of Revenue, penalty levied under sections 76, 77 and 78 can be set aside by invoking provisions of section 80
No Service-tax penalty leviable without issuing assessee with show-cause notice in that regard
ST : When issue, whether CENVAT credit on certain input services was available to assessee or not, had not been disputed by Department by way of issuance of show-cause notice, assessee could not be made liable to penalty
CIT can’t exercise revisionary powers on mere doubts unless patent error spotted in order of AO
IT: Where there is any inquiry, even inadequate, it will not give jurisdiction to Commissioner to pass revisionary order merely because he has a different opinion on matter
Services provided by Asset Management Company to mutual funds are liable to service tax
ST/ECJ : Services provided by an Asset Management Company (AMC) to a mutual fund by way of management of latter's portfolios is a service liable to service tax
Workmen’s retirement compensation is a revenue expenditure, even if paid after closure of business
IT : Provisions of section 55(2)(a) is not applicable in respect of receipt of non-compete fee
Assessee suffered for laxity in courier services; delay in delivery of appeal by courier treated as
ST : In case of appeal filed by assessee through courier, courier remains agent of assessee and, therefore, delay caused by courier in delivering appeal to appellate authority would amount to delay in filing appeal by assessee
Similarity should exist among functions and related party transactions for selection of comparables
IT/ILT: Where in course of transfer pricing proceedings, certain adjustment was made to ALP determined by assessee, in view of fact that some of comparables selected by TPO were not appropriate on account of functional difference, related party transactions, turnover filter, etc., impugned adjustment was to be set aside and matter was to be remanded back for disposal afresh
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