IT : Beneficial ownership of shares be established to treat a sum advanced by a company to its shareholder as deemed dividend under section 2(22)(e)
Wednesday 31 July 2013
Appellant allowed to withdraw its 'open offer' as it had gone redundant with undue lapse of time
SEBI : Where open offer had become redundant due to long lapse of time in securing SEBI's approval, appellant was to be granted permission to withdraw its open offer in target company
Services of commission agent are not eligible for input service credit
ST : Service tax paid on commission paid to commission agents causing sale of goods is ineligible for input service credit
Preceding year's data can be used for TP study if assessee proves its influence over determination o
IT/ILT: Where assessee wants to use data of preceding year, onus lies on assessee to prove that same has influence over determination of transfer pricing under rule 10B
ACIT vs. Robert Arthur Keltz (ITAT Delhi)
ESOP to expatriate employee of foreign company not chargeable for period he was outside India even if ESOP was vested and exercised in India The assessee, an employee of M/s UTIO, USA, was granted “employee stock options” of 34000 shares on 9.01.2004 when he was outside India. The assessee was deputed to the India liaison office on 01.04.2006 and the stock options vested on 09.01.2007 when he was in India. The assessee exercised the stock options on 01.02.2007, when he was still in India. The AO held that as the assessee was in India on the date of vesting and exercise of the stock options, the entire benefit thereof was assessable as a perquisite in his hands. However, the CIT(A) held that as the employee had been in India for only for a part of the time of the vesting period, only a proportionate stock option benefit, which is attributable to the period spent in India accrued to the employee and was chargeable to tax in India. On appeal by the department to the Tribunal HELD: |
India a fully committed partner in tax info exchange: OECD
India has come in for praise by the world's top economic policy body, OECD, for putting in place a robust mechanism for exchange of information on issues related to taxation aimed at curbing black money and tax evasion.
The Paris-based world body, Organisation for Economic Cooperation and Development, has hailed India and said that top world economies consider the country "a very important and fully committed partner with long experience in exchange of information".
The OECD published a report on Wednesday for 13 juridisctions across the world which includes India.
"Later this year, most of these reviews will feed into the ratings assigned to 50 jurisdictions, backing G20 and global forum efforts to strengthen tax cooperation and stamp out cross-border tax evasion," the OECD report said.
The report, according to top sources in the Indian Finance Ministry, will act as a "shot in the arm" for the anti-money laundering and counter tax evasion regime formulated and practised in the country.
The OECD, with top economies like the US and UK as its full-time members, has released the Peer Review Report-phase 2 under the aegis of the global forum for transparency and exchange information for tax purposes.
"The Phase 2 review shows that India's exchange of information practice is in line with the international standard for transparency and exchange of information for tax purposes.
"India's legal framework and its practical implementation ensure that ownership, accounting and bank information is available and accessible by the tax administration in line with the standard," the report said.
"India now has in place appropriate organisational processes and resources to ensure effective exchange of information and greatly improved the timeliness of responses during 2011 and 2012. India is considered by its treaty partners a very important and fully committed partner with long experience in exchange of information," it said.
Under-construction building in an urban land isn’t an exception to definition of ‘urban land’
IT : Construction of building on urban land, whether partly completed or under construction would still be taxable as urban land
Income tax return: What if you miss the deadline
A lot of people miss the deadline every year due to lack of time or plain laziness. Did you miss it too? In case you have, do not worry, you can still file a belated return. As a tax payer, you are likely to fall under one of these four categories. The associated rules and implications are outlined below. Case 1: No pending tax liability Case 3: You have a tax refund |
Refined Palm Oil Imports Could Jump 69% To Record: Sea
31 Jul, 2013
NEW DELHI: India's refined palm oil imports could surge almost 69 percent to a record high in the year ending October, a key industry official said, as consumption picks up pace ahead of the festival season starting next month.
Higher purchases will heighten calls to raise import duties to protect local oilseed growers and refiners, many of whom are operating at about a third of capacity as they battle cheap supplies from top exporters Indonesia and Malaysia.
"If the trend that favours the imports of refined palm oil continues, then domestic refiners would turn into packers of imported refined oil, instead of being processors of the crude palm oil," said B. V. Mehta, executive director of the Mumbai-based trade body Solvent Extractors' Association.
Imports of refined palm oil by the world's top buyer of vegetable oils could be as high as 2.7 million tonnes in the year to Oct. 31, up 1.1 million from a year ago, Mehta said.
India's imports of refined, bleached and deodorised (RBD) palmolein hit a record 373,837 tonnes in May, prompting industry experts to see a continuing trend. A dip in June to 296,230 tonnes was mostly due to weakness in the rupee, which made imports more expensive.
The SEA will publish July import figures in mid-August.
India's refiners have lobbied for government intervention to make imports of refined palm oil more expensive, but Delhi's worries about inflation, now running at around 5 percent, have stalled any action.
The country now levies a 2.5 percent duty on crude palm oil imports and 7.5 percent on refined palm oil imports.
Narrow spread to support imports
Refined palm oil imports could come in at 250,000-300,000 tonnes per month in the four months to Oct. 31, supported by the spread between crude and the refined variant that has dropped to around $5 per tonne, traders said.
On some days, there is no difference in price, traders added. A year ago, the differential was $30 to $40 per tonne.
Refined palm oil's premium to crude has been shrinking since last year because high output has prompted the world's top two producers of the edible oil to adopt export measures to promote sales of the refined product.
Demand for refined palm oil will also get a boost as India gears up for its festival and wedding season, which starts next month and sees out the year, with an accompanying rise in consumption.
India imports about 60 percent of its cooking oil demand of 17 million to 18 million tonnes, with palm oil's share at about 80 percent of the imports.
India's total 2012/13 palm oil imports could be 8.7 million tonnes, up 13 percent from a year earlier, said Govindbhai Patel, a managing partner at GG Patel & Nikhil Research Co.
Projected total palm oil imports include 6.2 million tonnes of the crude variant, said Patel, a crop statistician who has been in the edible oil trade for three decades.
Source:-economictimes.indiatimes.com
India: Cotton Textile Exports "Should Do Better"
31 July 2013
While the Indian cotton textile industry has increased its global competitiveness over the last decade, its exports have not shown similar results a new study shows.
According to the report compiled by Zurich-based consultancy agency Gherzi, in 2012 the Indian clothing and textile industry employed 35m people and its average wages were almost half of China's but still about double those of Bangladesh and Vietnam.
India's export competitiveness against China has improved due to 23% depreciation of the Indian rupee between 2000 and 2012, said the report.
However, India's market share in global textile and clothing trade could only increase from 3% to 4% during the period, while China managed to double its share from 17% to 35%.
The report blamed ad hoc policy interventions that harmed the overall performance of the Indian textile industry.
For instance, in 2010, a popular Technology Upgradation Fund Scheme (TUFS) was discontinued for 11 months due to lack of funds, which postponed several textile industry investment projects. And that year, the government capped cotton exports at 720,000 tonnes, harming the expanding spinning sector.
It also pointed out that the fact Indian cotton prices are now close to global norms would help sustain development of the clothing and textile sector throughout the value chain, reducing the risk of cotton price change shocks.
Entitled 'Cost Benchmarking Study - India vis-à-vis Bangladesh, Indonesia, Egypt, China, Pakistan and Turkey', it was commissioned by the Indian Cotton Textiles Export Promotion Council and released in New Delhi last week.
Source:-www.just-style.com
New Tariff Guidelines For Major Port Projects
Jul 31, 2013
MUMBAI: Union minister for shipping G K Vasan announced new tariff guidelines for major port projects in Mumbai Wednesday. The ministry claims the simplified procedures will increased investment flows into the sector.
Various stakeholders had complained that the existing tariff authority for major ports' regulations was detrimental to growth. There was no level playing field between major ports and non-major ports. The new tariff guidelines will not cover projects that have already been awarded.
The tariff authority for major ports (TAMP) will first set the reference tariff (RT) for a particular commodity at a major port. This will typically be the highest prevailing rate that was set along 2008 guidelines. If that commodity is not handled at that port, the highest tariff at the nearest major port will be used as RT.
RT will be applicable for five years and will be indexed to inflation up to 60 of wholesale price index. TAMP will notify performance standards of facilities and services offered at the port project. Both RT and performance standards will be mentioned in the bid document and bids will be evaluated on the basis of RT.
Indexed reference tariff will be the ceiling tariff in the first year of operation though the operator can propose a higher tariff from the second year subject to a cap of 15%. Upward revision will be allowed once in the financial year.
The ministry has set an ambitious target to award 30 port projects during 2013-14 which will add 288 million tons per annum (MTPA) with an investment of approximately Rs 25,000 crore. This includes the Rs 8,000 crore big-ticket project of the fourth container terminal at JNPT in Navi Mumbai.
Source:-timesofindia.indiatimes.com
Govt Raises Import Tariff Value Of Gold To $430 Per 10 Gms
31 Jul, 2013
NEW DELHI: The government today raised the import tariff value of gold at $ 430 per ten grams and that of silver to $ 639 per kg as prices of the precious metals have risen in the global market.
Tariff value -- the base price on which the customs duty is determined to prevent under-invoicing -- of gold and silver stood at $ 416 per 10 gram and $ 638 per kg, respectively earlier.
The notification, issued by the Central Board of Excise and Customs, has come on a day when gold prices regained the Rs 29,000 level after nearly four months by surging Rs 755 to Rs 29,200 per 10 grams in the national capital.
Gold in Singapore, which normally sets the price trend on the domestic front, rose by one per cent to $ 1,339.74 an ounce and silver by 1.4 per cent to $ 20.01 an ounce.
India, the largest gold consumer in the world, imported 860 tonnes of gold in 2012. In the first three months of 2013 calendar year, import stood at 215 tonnes. Gold import stood at about 335 tonnes in the April-June quarter.
Meanwhile, Finance Minister P Chidambram today said: "We hope to contain gold imports at a level of well below last year's total imports of 845 tonnes and save a considerable amount of foreign exchange which will have a positive impact on CAD."
"Imports were low in June but in July it has turned again...in July the imports have risen, therefore those measures (to contain imports) continue," Chidambaram had said earlier.
Source:-economictimes.indiatimes.com
Rupee Weakens To 60.83 Against Dollar
The Indian rupee weakened to 60.83 in early trades on Wednesday dashing hopes of a sustained recovery after yesterday's dramatic rebound. The partially convertible currency traded at 60.79 as of 09.10 a.m. against Wednesday's close of 60.40.
The rupee closed higher yesterday after recovering from a near-record low hit earlier in session, as policy makers pledged renewed efforts to defend the currency, while traders also cited RBI intervention.
Finance Minister P Chidambaram suggested the government was considering options, including bringing in more foreign inflows, in a bid to narrow a record high current account deficit which has been a key factor in the rupee's weakness.
RBI Governor D Subbarao dispelled some of those doubts on Wednesday, saying the central bank would stick to its defence of the rupee until exchange rates stabilise, and easing uncertainty just a day earlier after his remarks about a potential rollback of cash-draining steps led the rupee to fall 1.8 percent.
Traders also cited dollar sales from the central bank on two occasions to prop up the rupee.
The rupee has slumped 1.7 percent for the month, its third successive month of losses, even after the Reserve Bank of India unveiled steps to defend the currency by draining cash, as the efficacy of the moves were put into question by doubts about the central bank's resolve.
Source:-profit.ndtv.com
Even a co. with profit making apparatus and leading BOD can’t escape charge of oppression
CL: If company was profit making or with eminent Board of Directors it ought not to presumed that same could not indulge in oppression and mismanagement
AE’s financial results are irrelevant to determine ALP of international transaction entered into wit
IT/ILT : AE’s financial results irrelevant for determination of ALP of international transaction entered into by assessee
FIIs investment in ARC: Fetter of 10% investment on each tranche has been removed; Cap on investment
FEMA/ILT : FEM (Transfer or Issue of Security by a Person Resident Outside India) (Amendment) Regulations, 2013 - Amendment in Regulation 5, Schedule 1 & Schedule 5
AO can't initiate re-assessment without an allegation of failure of assessee to disclose material fa
IT : Where Assessing Officer in reassessment proceedings treated share application money received by assessee as unexplained cash credit under section 68 and added same to its income, since in reasons recorded there was no specific allegation that assessee had failed to truly disclose any material facts at time of assessment, reassessment proceedings were illegal and without jurisdiction
Commitment charges are in nature of interest and not liable to service tax
ST : Commitment charges for guarantee facilities not availed are in nature of interest and are not liable to service tax
SC-Failed candidate could endanger lives of PSC Interviewer; their personal details out of ambit of
RTI Act: Disclosure of names and addresses of members of Interview Board of PSC would ex facie endanger their lives; such disclosure would serve no fruitful public purpose
Gain from sale of shares held as investment to be taxed as capital gains and not as business income
IT : Fact that assessee was trading in shares would not estop assessee from dealing in shares as investment and to offer such gain for tax under head 'capital gains'
Granting an NOC to appoint the stockist and fixation of trade margins is anti-competitive
Competition Act: Where opposite party -AIOCD was engaged in practice of grant of NOC for appointment of stockist, fixation of trade margins, collection of PIS charges and boycott of products of pharmaceutical companies, actions of AIOCD were anti-competitive in nature
Forward contracts claimed as a hedging transaction should have direct nexus with domain of assessee
IT : For hedging transactions it is necessary that commodity in respect of which forward transactions have been made by assessee must have a direct connection with goods manufactured or sold by assessee
Assessment of damage to motor vehicle by a third party isn’t an ‘insurance transaction’
ST/ECJ : Motor vehicle damage assessments carried out, on behalf of its members, by an association whose members are insurance companies are neither insurance transactions nor services related to insurance transactions that are performed by insurance brokers or insurance agents
ITO vs. Sun Pharmaceutical Industries Ltd (ITAT Mumbai)
S. 195 TDS: Application for refund of TDS due to cancellation of contract with non-resident can be made vide s. 154 application The assessee remitted consulting charges/fees to a Taiwan based company called ‘Scandinavian Health Ltd’ on which it did not deduct tax at source u/s 195. The AO passed an order u/s 201 & 201(1A) by which he held the assessee to be in default. The assessee filed an application u/s 154 in which it pointed out that the agreement with the Taiwanese company had been subsequently cancelled and that there was no obligation to deduct TDS as per the CBDT’s Circular No.7 of 2007 dated 23.10.2007. The AO rejected the application on the ground that there was no mistake apparent from the record. On appeal, the CIT (A) upheld the claim and directed the AO to verify whether the conditions laid down in Circular No. 7 of 2007 for a refund of tax already collected had been satisfied. The department filed an appeal before the Tribunal claiming that there was no apparent mistake in the AO’s order and that the CIT(A) had admitted new evidence without granting any opportunity to the AO. HELD by the Tribunal dismissing the appeal: |
CIT vs. Vector Shipping Services (P) Ltd (Allahabad High Court)
S. 40(a)(ia) disallowance applies only to amounts “payable” as of 31st March and not to amounts already “paid” during the year. Merilyn Shipping (SB) approved The assessee engaged Mercator Lines Ltd to perform ship management work on behalf of the assessee for which it paid an amount of Rs. 1.17 crore. The assessee claimed that the amount paid by it to Mercator was a ‘reimbursement of salaries’ and that as Mercator had deducted TDS on the payments made by it to the employees, the assessee was not required to deduct TDS. The AO disagreed and disallowed the entire payment u/s 40(a)(ia). The Tribunal upheld the assessee’s claim and held that no TDS was required to be deducted on a reimbursement. It also relied on Merilyn Shipping and Transport Ltd 136 ITD 23 (SB) where it was held that s. 40(a)(ia) applied only to amounts that were “payable” as at the end of the year and not to amounts that had already been “paid” during the year. On appeal by the department, HELD dismissing the appeal: |
CIT's nod to suggestion given by audit party won't be deemed as approval under sec. 151 for reassess
IT: Approval of Commissioner to suggestions given by audit party could not be taken as substantial compliance under section 151 for reopening of assessment after expiry of four years from end of relevant assessment year
HC upheld prosecution for non-filing of return when SetCom didn't grant specific immunity therefrom
IT: Since Settlement Commission had not granted specific immunity in respect of prosecution for non-filing of return, same was valid
INCOME TAX APPELLATE TRIBUNAL : KOLKATA BENCHES : KOLKATA CONSTITUTION OF KOLKATA BENCHES FOR THE PERIOD FROM 29-07-2013 TO 01-08-2013
[unable to retrieve full-text content]INCOME TAX APPELLATE TRIBUNAL : KOLKATA BENCHES : KOLKATA CONSTITUTION OF KOLKATA BENCHES FOR THE PERIOD FROM 29-07-2013 TO 01-08-2013 {ad} For more information...
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