CL: Where ex parte decree in respect of property of company-in-liquidation was passed after commencement of winding up and sale deed was executed after order of winding up was passed, ex parte decree as well as sale deed were to be set aside
Wednesday 7 August 2013
ST demand isn't sustainable if confirmed without diligently examining accounts of assessee
ST: Prior to confirming demand based on difference in figures shown in Balance Sheet and that shown in ST-3, accounts must be examined diligently by a person having some knowledge about accounting methods, failing which such demand can be set aside
Notification No 33 (RE-2013) / 2009-2014 dated 07-08-2013
Government of India
Ministry of Commerce & Industry
Department of Commerce
Udyog Bhawan
Notification No. 33 (RE–2013)/2009-2014
New Delhi, Dated 7th August, 2013
Subject: Grant of relaxation for import of steel and steel products from the applicability of Steel and Steel Products (Quality Control) Second Order, 2012.
S.O.(E) In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), read with paragraph 2.1 of the Foreign Trade Policy, 2009-2014, as amended from time to time, the Central Government hereby grants the following exemption to import of steel and steel products from the applicability of Steel and Steel Products(Quality Control) Second Order, 2012 in relaxation of Para 2(A) of General Notes Regarding Import Policy, ITC(HS), 2012 Schedule 1 (Import Policy):
- The exemption shall be available to projects in the Infrastructure, Petroleum, Manufacturing products involving high end technologies, Nuclear Reactors, Defense, Chemical and petro-chemicals, and Fertilizer sectors subject to the following conditions:
- The minimum investment in the project is not less than Rs. 1000 crore.
- The import will be allowed only to the Actual Users. Surplus, if any, cannot be disposed off in the domestic market without satisfying the quality standards as per Steel and Steel Products (Quality Control) Second Order, 2012 applicable for the domestic steel industry.
- Quality certification from the recognized Quality Certifying Body of the country of origin.
- The importers availing such exemptions shall submit quarterly reports on details of type, quantity & value of steel/steel products to the Ministry of Steel and to the concerned Regional Authority (RA) of DGFT.
- The above exemption would be valid for 2 years from the date of this Notification or until further orders, whichever is earlier.
- Effect of this Notification:
This provides an exemption to the Import of steel and steel products for major industrial/infrastructure projects from the applicability of Steel and Steel Products (Quality Control) Second Order, 2012.
Sd/-
(Anup K. Pujari)
Director General of Foreign Trade
E-mail: dgft[at]nic[dot]in
(Issued from 01/89/180/Moni 5852/AM-03/PC 2(A))
Service tax dept finds over 700 Mumbai hotels evading tax
In its recent survey of more than 1000 hotels and restaurants in Mumbai, the Service Tax department has found more than 700 hotels evading service tax, reports Aastha Maheshwari of CNBC-TV18.
While more than 50 percent of them have been not registered for the service tax department at all, some of the other hotels have collected a service tax and have not deposited yet. Thus, the Service Tax department is yet to collect an amount of Rs 100-200 crore.
Did you read?: Yashwant Sinha panel seeks complete overhaul of GST Bill
Although these are just investigations at this moment, these hotels and restaurants could be given an option to apply through the service tax amnesty scheme. The department may also issue show cause notices going forward. The department is planning to raise around Rs 200 crore through these investigations.
In 2013-14 Budget, all air conditioned (AC) restaurants were also included in the service tax net, which led the department to conduct investigations seeking clarification on whether these restaurants had filed service tax. The department also took the help of local bodies to identify these air conditioned restaurants.
Net direct tax collections up 10 % in four months
Net direct tax collections went up by 10.37 per cent to Rs.1.17 lakh crore during the April-July period of the current fiscal year as against Rs.1.06 lakh crore mopped up during the same four months of 2012-13.
The growth in gross direct tax collections, however, was higher with a rise of 13.27 per cent to Rs.1.57 lakh crore during April-July this fiscal, up from Rs.1.38 lakh crore garnered in the same period of the previous fiscal.
According to a Finance Ministry statement here on Wednesday, gross collection of corporate taxes during the four months of 2013-14 was 9.75 per cent higher at Rs.92,115 crore as compared to Rs.83,932 crore mopped up in the like period a year earlier.
Personal income tax
Significantly, the gross collection of personal income tax saw a 19.32 per cent increase at Rs.63,583 crore in the first four months of the current fiscal as compared to a total of Rs.53,289 crore garnered in the same period during the previous fiscal.
As for the other direct taxes, the mop-up by way of Securities Transaction Tax (STT) during the April-July period this fiscal stood at Rs.1,267 crore while the wealth tax collection witnessed a growth of 38.62 per cent to Rs.201 crore from Rs.145 crore. Meanwhile, electronic filing of tax returns jumped by 68 per cent as compared to last year with over 1.23 crore taxpayers filing e-returns during the current filing season which closed on August 5.
Income tax return
According to the Central Board of Direct Taxes (CBDT), the latest data after the August 5 deadline for filing of income tax returns showed that more than 87 lakh salaried taxpayers filed their returns online this year, posting an overwhelming rise of 85 per cent in this category of tax filers as compared to last year.
“Up to 5th August, 87,13,493 returns were e-filed under ITR 1 and ITR 2 which is 85.8 per cent higher than the 46,90,279 returns e-filed under ITR 1 and ITR 2 in the corresponding period last fiscal,” the CBDT statement said.
No legal requirement to get certified segment calculation done from a CA before its submission to TP
IT/ILT: There is no legal requirement that segment wise working of ALP submitted before TPO should be audited by assessee's CA
Bank manager not at fault for not freezing saving a/c of proprietor if accused firm was indebted to
IT: Where garnishee notice under section 226(3) to bank manager was in respect of a firm, which had cash credit limit with bank, saving bank account of firm's proprietor could not be clubbed with it for recovery of tax
Used Imports Lead Vehicle Sales Boom
Used imported cars shared in the sales success enjoyed by the new vehicle sector during July with their strongest month in almost six years. Every sector of the market enjoyed growth last month compared to 2012, with used import cars leading the way.
Sales of 9,629 used import cars was up 2,988 units (45 percent) compared to July 2012, and up 1,767 units (22 percent) over June 2013. For the year to date, used imported car sales are up 10,970 units (25 percent). The top brand for used import cars was Toyota with 2,311 units (24 percent market share), followed by Mazda with 1,714 units (18 percent share) and Nissan on 1,695 (18 percent share). In terms of individual used import car models, Mazda Demio led the way with 486 units, closely followed by Suzuki Swift on 460 and Mazda Axela with 423 units.
Used import commercial vehicles also enjoyed a buoyant month. Sales of 527 units were 251 units (91 percent) ahead of July 2012 and up 65 units (14 percent) over June 2013. Year to date, used import commercials are up 1,316 units (69 percent).
MTA spokesman Ian Stronach said “With favourable buying conditions and steadily improving choice for dealers, the used import industry is now largely able to supply what customers are looking for. There has been a degree of pent up demand over recent years which is only really now being met.”
New car sales of 6,786 units were 560 units (9 percent) ahead of July 2012. For the year to date, new car sales are up 2,194 units (5 percent). The top selling new car model for the month was perennial favourite, Toyota Corolla with 376 sales, followed by Holden Captiva with 244 units and Suzuki Swift with 239 units. For the year to date, sales of new passenger cars are 2,194 units (5 percent) ahead of last year.
New commercial vehicles also enjoyed a strong month. Sales of 2,632 units, although down compared to June 2013, were 479 units (22 percent) ahead of July 2013. For the year to date, sales of new commercial vehicles are ahead by 3,529 units (25 percent).
Stronach said, “It’s hard to predict when sales of new vehicles will start to level off. The market is certainly beyond where it was pre-GFC, and is showing no signs of letting up right now. With around 50 brands of cars currently available on the New Zealand market, buyers have a large array of competitively priced models to choose from; it’s a very healthy situation right now.”
While winter is not traditionally a strong time of the year for on-road motorcycles, sales in July put paid to that theory, for July at least. Spurred on by reaction to record fuel prices, on-road motorcycle sales of 497 units were 137 units (38 percent) ahead of July 2012, and 79 units (19 percent) ahead of June 2013. The growth was shared between both scooters and larger displacement models. Suzuki led the way with 75 sales (15 percent market share) followed by Honda with 67 units (13 percent) and Triumph on 39 units (8 percent). For the year to date, on-road motorcycle sales are up 706 units (22 percent).
Source:-www.scoop.co.nz
Govt Raises Textiles Export Target To $43 Bn For Fy'14
7 Aug, 2013
NEW DELHI: The government today said it has raised the textiles export target to USD 43 billion for the current fiscal, from USD 36 billion set earlier.
"In July 2013, the government has raised the annual export target of textiles from USD 36 billion to USD 43 billion following discussions with textiles export promotion councils against the backdrop of rupee depreciation and strong industry performance," Minister of State for Textiles Panabaaka Lakshmi said in a written reply to the Rajya Sabha.
The US and Europe account for over 65 per cent of India's total textiles exports.
Last fiscal, textiles exports stood at USD 34 billion. Asked if government has proposed to allow women to work in night shifts in apparel units, Lakshmi said: "The Textiles Ministry has mooted a proposal for amendments in Factories Act 1948, seeking amendments in Section 59 - Extra Wages for Overtime and Section 64 - Power to Make Exempting Rules to provide for Over Time Wages at the rate of one-one quarter times of the regular rate and that the cap for 50 hours a quarter should be removed for textiles sector."
In 2007, the High-Level Committee on Manufacturing Competitiveness considered amendments in labour laws for enhancing competitiveness of textiles industry, she said.
In 2005, the Factories (Amendment) Bill, 2005 seeking amendments under Section 66 of the Factories Act was introduced in Parliament on August 16, 2005. "However, amendments under the Factories Act of 1948 were not be undertaken," Lakshmi said.
Replying to another query, she said, the government is aware of the stiff competition from powerloom and other mills, availability of cheaper imported fabrics, choked credit lines and high cost of credit, changing consumer preferences and economic liberalisation has threatened the vibrancy of handloom sector.
The government has been following a policy for promotion and encouraging handloom sector through a number of programmes and schemes like cluster approach, aggressive marketing initiative and skill upgradation.
Source:-economictimes.indiatimes.com
India Reduces Oil Imports From Iran
7 Aug, 2013 London, Asharq Al-Awsat—Iranian oil exports face further setbacks after the Indian Oil Corporation (IOC) announced plans to reduce its imports from the heavily sanctioned Islamic republic by 23 percent, according to Veerappa Moily, the Indian minister of petroleum and natural gas.
Iranian crude exports—targeted by US-led economic sanctions—reached their lowest figures in a decade earlier this year, when shipments dropped to 700,000 bpd in May.
Washington aims to further reduce this number to 500,000 bpd—less than a quarter of Iran’s exports before the current round of sanctions.
The state-owned IOC is one of India’s main oil refiners. It imported 1.56 million tonnes of oil from Iran in the last fiscal year, equivalent to 31,200 barrels per day (bpd).
Moily confirmed in a written statement that the IOC was not severing links with Iran completely, and has entered a contract for 24,000 bpd, the Reuters news agency reported.
This reduction of 22.63 percent is in line with US and European sanctions, imposed due to suspicions over Iran’s controversial nuclear program, which the Islamic Republic insists is wholly peaceful.
Earlier this year, Indian refineries were threatened with having their insurance invalidated, as the insurance companies covering oil refineries are based in Europe, where strict sanctions are in place to prevent involvement in the Iranian financial markets.
“There are issues related to payments as well as the insurance issues faced by oil refineries due to the sanction [against Iran]. That’s why the import is down,” an Indian government official said at the time.
At that time, Iranian shipments accounted for 7.2 percent of India’s total imports—down from 10.5 percent the previous year.
The Iranian oil minister, Rostam Qasemi, visited India late May to meet with Veerappa Moily and other Indian officials, in an attempt to increase exports to the emerging Asian nation.
The diplomatic trip was unsuccessful when Iranian offers to provide insurance to refiners were rejected.
“Iranian insurance companies are under sanctions, how can I take cover from them?” one Indian oil executive said after the talks.
As with other key Iranian oil clients, such as South Korea and Japan, India has begun sourcing its vast energy needs from other countries.
When Moily visited Iraqi officials in Baghdad last month, he said that they had “assured that they were ready to supply as much as India wants. We will finalise our requirements soon after due negotiations. It is also open to considering more favourable commercial terms, including extending the interest-free credit period from 30 to 60 days.”
Much of the IOC payments to Iran had been conducted in euros through Halkbank in Turkey, until they were halted in February under pressure from the US sanctions. Such payments accounted for USD 415 million throughout the previous fiscal year, which ended in March.
The remainder of the USD 1.26 billion has been paid in rupees, through a local Indian bank.
According to its government, Iran holds roughly 10 percent of the world’s proven oil reserves, but has become increasingly unable to export its oil due to sanctions imposed by the US and the UN.
At the beginning of the year, Rostam Qasemi affirmed for the first time that sanctions had affected the Iranian economy. Speaking on January 7 he acknowledged that petroleum exports and sales had fallen by at least 40 percent.
The announcement came in the wake of both the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency reporting that, by the end of 2012, exports of Iranian crude had fallen by around a million bpd.
Source:-www.aawsat.net
Rupee Up At 61.17, Recovers From Record Closing Low
The Indian rupee opened higher on Thursday after closing at a record low of 61.30 in the previous session. The partially convertible rupee traded at 61.17 against the U.S. dollar as of 09.08 a.m.
The rupee remains within striking distance of a record low at 61.80 hit earlier this week. Dealers continue to wait for word from policymakers on steps designed to boost inflows and prop up the battered currency.
Bond and forex dealers were betting the next steps to defend the rupee would come from the government, averting further harsh measures by the Reserve Bank of India (RBI) to tighten cash.
The government is likely to relax borrowing rules for debt-laden Indian companies, including doubling the amount a firm can borrow overseas to $1.5 billion, a newspaper reported.
Source:-profit.ndtv.com
Govt Raises Rewards For Unearthing Tax Evasion
Detection of tax evasion in business and at ports will become lucrative for revenue officials as the government plans a massive jump in their rewards. To give the staff of customs, service and excise duty departments reasons to sniff out more tax evasion cases the government plans to raise by ten fold their rewards in a year when indirect tax receipts continue to be hammered by a slowing economy.
The central board of excise and customs (CBEC) is finalising a proposal to raise the rewards for field officials up to the rank of deputy commissioner "to Rs 50,000 per case from the current Rs 5,000 per case", an official involved in the exercise told The Indian Express. The reward scheme was introduced in the year 2001 and the rates have remained unchanged since then.
The officers of the department who will stand to gain include inspectors, superintendents, assistant commissioners and deputy commissioners as they form the bulk of the field staff in this exercise. Since the rewards have not kept pace over the years the department has reasons to suspect the zeal among the officers to uncover duty evasion has dropped. In 2012-13 for instance as per the government data only 215 importers were audited that showed up duty evasion of Rs 120.62 crore with recovery of just Rs 2.91 crore.
The official explained that the department faces the challenge of meeting the stiff indirect revenue collection target of Rs 5.65 lakh crore this year which is 20 per cent more than last year. Overall, the indirect tax collections comprising service tax, customs duty and central excise has inched up only 4.7 per cent during the first quarter of the current fiscal. The figure is much worse for excise. Flat industrial output has adversely impacted its collection which contracted 4.9 per cent in the April-June period. The asking rate of growth for excise duty this year is 11.8 per cent.
Source:-www.indianexpress.com
Major Liquor Seizure In Tuticorin Port
TUTICORIN: Customs officials seized Rs 1 crore worth Korean liquor which was smuggled to Tuticorin Port. The liquor was concealed beneath food items stuffed in a container. The stock was found after a search of the containers following a tip-off about smuggling of the liquor called soju which is a native to , said custom officials.
Addressing the media persons, D Ranjith Kumar, assistant commissioner of customs, said that the official team found 1,410 corrugated cartons containing 360 ml bottles with a colourless liquid. From the smell, it was later identified as Korean Soju. They were concealed behind 390 cartons of pepper paste, Kumar said. The declared pepper paste is used as cover cargo to smuggle high-value Korean liquor and other Korean food items. The value of the seized goods is more than Rs 1 crore in the international market, Kumar added.
Soju's taste is comparable to , though often slightly sweeter due to added in the manufacturing process. Most brands of soju are made in . Though it is traditionally made from , most modern producers of soju use supplements or even replace rice with other starches, such as , , barley, sweet, or . Soju is clear and colourless, the officials said.
Source:timesofindia.indiatimes.com
No TDS from interest paid to societies which are wholly funded by the Government
IT : Societies which are wholly funded by Government would qualify for non-deduction of tax
Merely having common directors won’t mean that Indian subsidiary is a PE of foreign parent co. if th
IT/ILT : Assessee-co. is not a PE of its foreign parent merely because they have a director in common
Merely having common directors won’t mean that Indian subsidiary is a PE of foreign parent co. if th
IT/ILT : Assessee-co. is not a PE of its foreign parent merely because they have a director in common
Disallowances for TDS default is valid unless taxpayer proves payment of taxes by payee on sum invol
IT/ILT: In absence of evidence that non-resident payee had paid tax on amount received from assessee, same could be disallowed under section 40(a)(i)
CBDT amends I-T Rules for furnishing of info of sum paid to NRs; revised Forms 15CA and 15CB notifie
IT/ILT : Income-Tax (Twelfth Amendment) Rules, 2013 - Substitution of Rule 37BB and Form NOS. 15CA and 15CB
Amended I-T Rules for furnishing of info by Venture Cap Co. or Venture Cap Funds; Form 64 revised
IT : Income-Tax (Thirteenth Amendment) Rules, 2013 - Substitution of Rule 12C and Form No. 64
Officers up to rank of Asst. Director are given search and seizure powers for preventing money laund
MONEY LAUNDERING : Section 18 of The Prevention of Money-Laundering Act, 2002 - Search of Persons - Officers Authorized to Exercise Power to Search Persons and to Seize Such Record or Property which may be Useful for or Relevant to Proceedings Under the Act
SEBI specifies category of associated persons who should obtain certification from NISM
SEBI : SEBI (Certification of Associated Persons in The Securities Markets) Regulations, 2007 - Specified Associated Persons of Merchant Bankers to Obtain Requisite Certification(s) under Said Regulations
Doctor suggesting presumptive rate for undisclosed surgery can't deny ITAT's methodology for similar
IT : Where for estimating income from undisclosed surgeries, assessee-doctor himself proposed a flat rate for surgery at a lower rate, he should be barred from disputing adoption of flat rate by Tribunal merely because same was at a higher rate
No TP adjustment if interest-free loan to WOS is in nature of equity; LIBOR rate can't be a comparab
IT/ILT : No TP adjustment be made for interest-free loan to foreign WOS if circumstances indicate that loan is quasi-equity
Order of ITAT recalled as it miscalculated period of 10 years for which section 10B relief was avail
IT: Where Tribunal in impugned order miscalculated period of 10 years for purpose of granting exemption under section 10B, such order was to be recalled
Depreciation upheld as sufficient material produced to prove authenticity of capital exp. and additi
IT: Where there was sufficient evidence that capital expenditure was authentic, depreciation could not be disallowed
No deemed transfer on mere signing of land development agreement without initiation of construction
IT : Only execution of development agreement of land, without commencement of construction, cannot be held as transfer so as to attract capital gains tax
Cap gains to be assessed in year of transfer of possession even if sale deed is registered subsequen
IT: Where sale deed was executed in 2001, and sales consideration and possession of property also took place in year 2001, transfer took place in year 2001 and therefore capital gain was required to be assessed in assessment year 2002-03 and not in assessment year 2004-05
Lessor entitled to depreciation on asset leased out on hire-purchase basis
IT: Depreciation on leased out vehicles is allowable to assessee-lessor
HC upheld change of name of a new co. as director of a co. with similar name gave unauthorized assen
CL: Where there was unauthorised issue of 'No objection certificate' by one of directors of existing company for use of similar name which resulted in registration of subsequent company through inadvertence or negligence or carelessness on part of registering authority, Central Government was justified in directing to change name of new company
Amended FEMA Regulations on transfer or issue of foreign security; Term 'Financial commitment' expan
FEMA/ILT : FEM (Transfer or Issue of any Foreign Security) (Fourth Amendment) Regulations 2013 -Amendment in Regulations 2, 6, 15, 16, 20, 22 & 24 and Insertion of Regulations 16A & 18A
Scope of enquiry by AO is restricted to the issues raised in revisional order
IT : Assessing Officer is to enquire only those issues that are raised in revision order passed by Commissioner
Subscribe to:
Posts (Atom)