IT : Addition on account of cash credits can be deleted on basis of evidence that cash was received from genuine parties
Tuesday, 16 July 2013
AO can’t apply Sec. 50C to a purchaser; unexplained money deleted on furnishing family settlement ag
IT : Where assessee in support of certain amount received from his family members on account of sale of property, produced family settlement agreement and sale agreement, there being no defect in said agreements, amount so received by assessee could not be added to his taxable income as unexplained money
Extended period couldn’t be invoked if assessee had furnished all facts to the department
ST: Where assessee had voluntarily stated fact of non-payment of duty/tax even prior to visit of Department's officials in its factory, there was no intention to evade duty and therefore, invocation of longer period of limitation was not justified.
Rule 19(7) isn’t applicable for amalgamation of Cos. not seeking exemption under Securities Contract
CL: Where no exemption under Securities Contracts (Regulation) Rules, 1957 was sought, provisions of rule 19(7) would not be applicable for purpose of amalgamation of companies
Penalty for delay in filing TDS return waived off as unavailability of PAN of payees caused such del
IT: Where delay in filing return of tax deducted at source by assessee-bank was due to lack of information of PAN of deductees, i.e., reasonable cause, penalty under section 272A(2)(k) could not be levied
Agri Exports Rise 42%, Imports Fall 7% In Q1
July 16, 2013
According to the BAS quarterly report, agricultural exports in the first quarter climbed to $1.641 billion from $1.155 billion in the same period last year.
The agricultural sector brought in 13.58% of the country’s total export earnings, which amounted to $12.081 billion.
Meanwhile, total expenditures for agricultural imports, which comprised 11.50% of the country’s total import expenditures of $15.163 billion, dropped by 6.62% to $1.743 billion in the first quarter this year.
The highest level of monthly agricultural exportation was pegged in March at $612.25 million while highest monthly importation was recorded in February at $596.94 million.
Total earnings from the country’s top 10 agricultural exports registered 45.82% growth to $1.161 billion in the first quarter from $796.40 million in the same period of 2012.
Except for desiccated coconut, whose first-quarter revenues decreased by 33.32%, top export commodities posted revenue increments.
Of the top five performing exports, copra oil cake brought in $62.50 million, a 404.04% surge from last year’s $12.50 million.
Centrifugal sugar exports grew 143.16% to $98.12 million from $40.35 million; fresh bananas, 82.93% to $206.87 million from $113.09 million; tobacco (manufactured), 63.61% to $87.74 million from $53.63 million; tobacco (unmanufactured), 42.23% to $30.25 million from $42.23 million; and seaweeds and carrageenan, 41.31% to $69.34 million from $49.07 million.
Expenditures for the top ten agricultural imports this year fell to $847.20 million, 0.37% lower than year’s $850.37 million.
Tuna, which is not usually among the country’s top agricultural imports, ranked ninth in the list with expenditures of $20.39 million, though this is lower by 4.26% from the $25.25 million recorded in the first quarter of 2012.
On the other hand, regular top imports rice and corn did not make it to the list in the first quarter.
Wheat and meslin remained the country’s top agricultural import, with first-quarter expenditures of $238.93 million, up 14% from the $209.58 million of 2012.
Soy bean oil or cake meal was the next top import in the first quarter, seeing a 51.11% increase in expenditures to $201.9 million from $133.61 million.
Expenditures for the rest of the top imports decreased year-on-year, with urea seeing the biggest drop at %59.54, from $51.34 million in 2012 to $20.77 million this year.
As for the balance of trade, the agricultural trade deficit softened by 85.53% from $707.22 million the first quarter last year to $102.34 million in 2013.
The month of January saw the biggest deficit at $81.25 million while a trade surplus of $39.21 million was recorded in March.
A wider trade deficit with the United States was recorded at $135.62 million this year from $44.79 million in 2012.
However, the country’s first-quarter trade deficits with Australia declined by 51.71%; with the Association of Southeast Asian Nations, 59.09%; and with the rest of the world, 61.40%, compared with the same period last year.
Agricultural trade with Japan and the European Union posted further trade surpluses of $211.52 million and $183.45 million, respectively.
Source:-www.bworldonline.com
Northwest Ports Pledge 75% Dpm Cut
16-Jul-2013
The Northwest ports of Seattle, Tacoma and Metro Vancouver say they will reduce diesel particulate matter (DPM) by 75 percent and greenhouse gas emissions by 10 percent, per ton of cargo, by 2015, according to the ports’ updated Clean Air Strategy. Both air pollution reduction targets use 2005 levels as a baseline.
The ports say they will further reduce DPM per ton of cargo 80 percent by 2020 and cut GHGs 15 percent by 2020, both compared to 2005 levels.
According to the Clean Air Strategy, the ports will meet these goals by exploring different methods to reduce emissions, from switching to liquefied natural gas to idle-time reduction.
The three ports have also committed to conducting pilot studies and demonstration projects to cut emissions from ocean-going vessels, harbor vessels, cargo-handling equipment, trucks, locomotives and rail transport, and port administration.
The Metro Vancouver port is exploring the viability of switching to liquefied natural gas for marine operations. It has also studied introducing clean energy at two container terminals. The Puget Sound Clean Air Agency (PSCAA) is in the process of implementing an idle-reduction technology, while the Seattle port completed a pilot study on using radio frequency identification (RFID) tags for trucks, so they have less wait times at gates.
The three ports published their original clean air strategy plans to reduce emissions from shipping and port operations in the Georgia Basin-Puget Sound airshed in 2007.
To set and implement the goals, the ports partnered with the EPA, PSCAA, the Washington State Department of Ecology, and Environment Canada and Metro Vancouver in Canada.
Other ports have also been looking for ways to reduce pollution from their operations. The Port of Long Beach announced in May that all 13 international cargo terminals at the Port of Los Angeles and Port of Long Beach will power docked ships with electricity by the end of this year, cutting air pollution from the ships at berth by 95 percent. The infrastructure to supply shore power — also known as cold ironing or alternative marine power (AMP) — is being installed in support of clean air initiatives led by the two ports and the California Air Resources Board.
Source:-www.environmentalleader.com
Rupee Up 21 Paise To Hit Fresh Two-Week High
The rupee on Wednesday strengthened by 21 paise to hit a fresh two-week high of 59.10 in early trade at the Interbank Foreign Exchange market, after the government liberalised FDI limits in a dozen sectors.
Forex dealers said the government liberalising FDI limits in a dozen sectors, including allowing 100 per cent in telecom and higher limits in ‘state-of-the-art’ defence manufacturing, in a bid to lure capital inflows, in a bid to curb the sliding rupee and to boost sagging economy, boosted the local currency.
They said, a higher opening in the domestic equity market, too, helped the rupee to strengthen.
The rupee had gained 58 paise to end at 59.31 against the dollar on Tuesday, the biggest gain in more than a fortnight after the RBI announced a slew of measures to curb rupee’s volatility.
Meanwhile, the BSE benchmark index Sensex recovered by 118.79 points, or 0.59 per cent, to 19,970.02 in early trade on Wednesday.
Source:-www.thehindu.com
Gems, Jewellery Exports Nosedive About 41% In June
16 Jul, 2013
NEW DELHI: India's gems and jewellery exports nosedived about 41 per cent year-on-year to USD 2.3 billion in June, 2013 on account of shortage of yellow metal and limited inventory in domestic market.
In June last year, these exports stood at USD 4 billion, according to the Gems and Jewellery Export Promotion Council (GJEPC).
"The exports declined drastically in June as there was a shortage of raw-material for jewellery manufacturing. This was because the government had taken steps to curb gold imports," GJEPC Chairman Vipul Shah told PTI.
But, he said, the shortage was a short-term phenomenon and hoped that the industry would get regular raw-material supply.
India is the largest importer of gold which is mainly utilised to meet demand of the jewellery industry.
The major markets for the country's jewellery exports are the US, Europe, Middle-East, Hong Kong and Japan.
In June 2013, there were no outbound shipments of gold medallions and coins, while gold jewellery exports declined 73 per cent. However, silver jewellery exports were up 52 per cent and outward shipments of cut and polished diamonds jumped about 22 per cent.
During April-June 2013, the gems and jewellery exports declined 13.2 per cent year-on-year to USD 8.5 billion.
India imported around 830 tonnes of gold in 2012-13. To curb demand, the government hiked the import duty on gold thrice in a year and raised it recently by 2 per cent, to 8 per cent. Besides, RBI too, has put restrictions on banks on importing gold.
Gold imports in June are estimated to have fallen to around 31 tonnes, down from 162 tonnes in May and 141 tonnes in April.
High imports strain the Current Account Deficit (CAD), which hit a record high of 4.8 per cent in the 2012-13 fiscal.
CAD occurs when total imports of goods, services and transfers is greater than the exports
Source:-economictimes.indiatimes.com
Garments Exports Jump 11% To $3.5 Billion
16-Jul-2013
NEW DELHI: India's garments exports have climbed over 11% to $3.5 billion as local exporters cornered a bigger share of the market in Latin America and most of Asia to offset the impact of poor demand in the US and Europe.
The rise comes after garment exports fell nearly 6% to $12.9 billion in 2012-13. Buoyed by the success, the government and the Apparel Export Promotion Council are now egging exporters to target nontraditional markets such Uruguay, Columbia, Israel, Brazil, Australia, South Africa, and Japan, A Sakthivel head of the industry body said on Monday.
Although data is currently unavailable, Indian garment exporters witnessed a reversal in fortunes in April, at least in the US with the value of shipments surging over 16% to $337 million. For January-April, they continued to remain in the red with exports falling 0.8% to $1.2 billion. The story was much the same in the European Union, where exports rose almost 16% in April to $525 million, while January-April shipments are estimated to have decreased 2.6% to $2.1 billion.
According to the latest available data, among the top eight exporters to the US, India and Mexico are the only two countries that have seen the value of shipments decline, while others such as China and Bangladesh have continued to witness an increase.
With the tide turning a little, textiles minister K Sambasiva Rao on Monday asked apparel exporters to step up their overseas sales target to $20 billion in 2013-14. "You assure me that you are going to increase the exports — not from $14 billion to $17.5 billion this year, but to $20 billion," he said.
Source:-timesofindia.indiatimes.com
Exp. in connection with sales but not leading to brand promotion can’t be compartmentalized into AMP
IT/ILT : Expenditure incurred in connection with sales which does not lead to brand promotion, cannot be brought within ambit of advertisement, marketing and promotion (AMP) expenses for determining cost/value of international transactions
CBDT directs officials not to deny interest on excess TDS unless assessee is at fault for such delay
IT : Section 244A of The Income-Tax Act, 1961 - Refunds - Interest on - Payment of Interest Under Section 244A when Assessee is not at Fault
HC presumes existence of culpable mind in not filing return within time; confirms prosecution
IT : Where assessee had not filed return of income timely, it could be prosecuted under section 276CC on presumption that there existed a culpable mental state as onus to prove that delay was not wilful was on assessee and not on department
Section 73A can’t be applied unless there is an assessment of service-tax
ST : If there is no dispute with regard to self-assessment, it should be treated as final
Entire block assessment held invalid as no evidences were found to reveal undisclosed income
IT: Where no material or evidence were found showing undisclosed income during search, block assessment was invalid
RBI announces measures to address exchange rate volatility
BANKING : RBI Announces Measures to Address Exchange Rate Volatility
Benefit of ECB up to USD 10 billion extended to specified Indian Cos with overseas JVs or wholly own
FEMA/ILT : External Commercial Borrowings (ECB) Policy Repayment of Rupee Loans And/Or Fresh Rupee Capital Expenditure - USD 10 Billion Scheme
Pursuant to hike in bank rates, RBI enhances penal interest rates on shortfall in reserve requiremen
BANKING : Revised Bank Rate Effective from 15-7-2013
No concealment penalty on mere disallowance of a claim if full details were disclosed in return
IT : Penalty for concealment of income, cannot be levied for claim being rejected by revenue, where full details were disclosed in return
HC restored an appeal when reasons for delay in making pre-deposit were explained by assessee
ST: If pre-deposit requirement is fulfilled somewhat belatedly and there is Explanation of such delay, then, appeal may be restored for consideration of issues on merits
Dividend received on shares cannot be charged to service tax
ST/ECJ : Mere acquisition and holding of shares in subsidiary company is not to be regarded as a service
Mumbai wholesalers go on strike against tax
The provocation for the strike is the government failing to fulfill its commitment to set up a high-level committee to examine the LBT issue and make its recommendations.
Wholesale traders in the city have launched a two-day strike to protest against the pending Local Body Tax (LBT) imbroglio, officials said here Monday.
The provocation for the strike is the government failing to fulfill its commitment to set up a high-level committee to examine the LBT issue and make its recommendations.
"Trading across sectors came to a standstill Monday morning with all wholesale markets remaining closed for two days," said Federation of Associations of Maharashtra (FAM) President Mohan Gurnani.
LBT, which replaced the traditional octroi in municipalities in the state, is an account-based cess collection for every raw material used or imported into the city by all businesses, traders and manufacturers.
While it was implemented in most parts of Maharashtra from April 1, it is due to be imposed in Mumbai Oct 1.
Last month, as the wholesale and retail trade strike crippled the state, Chief Minister Prithviraj Chavan and Union Agriculture Minister Sharad Pawar had intervened to resolve the looming crises.
In a meeting with all traders' bodies, the state government had promised to set up a committee to examine LBT and make necessary recommendations.
"Accepting the government proposal, traders had called off the strike in public interest May 23," Gurnani said.
"It is now over six weeks and there is no movement on the part of the state government. This token strike is intended to serve as a wake-up call before we consider other measures," Gurnani said.
He said the monsoon session of the Maharashtra legislature would start Monday and expressed hope that both the ruling and opposition parties would take up the issue on priority to prevent inconvenience to the masses.
Gurnani said retailers have not joined the strike since monsoon clearance sales are underway. However, he said they would join the strike unless the government acted on LBT immediately.
Sec. 43B disallowances represents business income and eligible for sec. 10A deductions
IT: Where employees' contribution to provident fund was paid before due date of filing of return of income, same could not be disallowed under section 43B
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