ST : In case of a scheme framed by builders, whereby one builder constructs partial property and sells to other without any liability to service tax, and other completes it and pays service tax on value-addition/services provided by it, thereby, avoiding service tax on value-addition made by first builder, such practice cannot be curbed owing to lack to anti-avoidance provisions
Sunday 11 August 2013
CIT(A) can allow sec. 80-IA benefit not claimed in return if losses turn into income after assessmen
IT : Where in appellate proceedings, assessee raised an alternative contention that in case its income was found positive, it would be entitled to deductions under sections 80HHC and 80-IA and Commissioner having accepted said contention, remanded proceedings for verification of facts to Assessing Officer, there was no error in said order and, therefore, it was to be upheld
No TDS from sum paid for transmission of gas if it is treated as part of cost of gas
IT: Where transmission charges paid by assessee for supply of gas to oil company was treated as part of cost of gas, provisions of section 194C and 194J were not applicable
Synchronized reversal trades in scrip of a company slammed as scrip manipulation
SEBI: Where appellants had executed synchronised reversal trades, cross trades in scrip of company, appellants were guilty of manipulating price of scrip
Scheme framed for avoidance of ST can't curbed in absence of anti-avoidance provisions - Australian
ST : In case of a scheme framed by builders, whereby one builder constructs partial property and sells to other without any liability to service tax, and other completes it and pays service tax on value-addition/services provided by it, thereby, avoiding service tax on value-addition made by first builder, such practice cannot be curbed owing to lack to anti-avoidance provisions
Have you missed the tax filing deadline?
The surge in the number of efilers on 31 July, the last day for filing income tax returns, overloaded the system and forced the government to extend the deadline to 5 August. This last-minute rush has become a regular feature in the past few years. The system gets overloaded because a large number of taxpayers wait till the last day. In the melee, many of them are unable to file by the due date. The rush was greater this year because of the new rule that if your taxable income is 5 lakh and above, it is mandatory to e-file your return. Also, if you have foreign assets, you have to take the online route even if your income is below 5 lakh. There are other reasons why a taxpayer may miss the filing deadline. There could be mistakes in their Form 16 or TDS details, which could not be resolved in time. It is also possible that the details of foreign assets, which have to be mentioned in the tax returns, were not available, or perhaps, the taxpayer was too ill to file his return. If, however, you have missed the extended deadline as well, the good news is that the Income Tax Department allows you to file your returns till 31 March 2014, the last day of the assessment year. If all taxes are paid, a taxpayer will not face any penalty or get a notice for non-filing . However, if there is some tax to be paid, he will have to shell out a 1% late payment fee for every month of delay since April 2013. If the tax due is more than 10,000, the taxpayer should have paid an advance tax. Advance tax is payable in three tranches—30 % is to be paid by 15 July of the financial year, 60% by 15 December and 100% by 31 March. If advance tax has not been paid, the penalty per month will be applicable from the due date of the advance tax. There is more good news for the lazy taxpayer. If you miss the 31 March 2014 deadline, you can still file the return. This means you can file last year's return as well. However, such returns will be treated as belated and the assessing officer can levy a penalty of 5,000 for late filing. Though the tax laws give you a grace period if you file your return late, you also forego some of your rights as a taxpayer For one, you cannot modify your tax return if it has been filed after the due date. If you have filed by the due date ( August for this year), you can modify it any number of times before the end of the assessment year or till the return is assessed. However, after the due date, you are not allowed to modify it. So if you miss any deduction or exemption, you can' claim it later. |
Receipts from letting out business centre are taxable as income from house property
IT: Where business centre is generally operational and workable for temporary offices, income received by assessee from renting of office premises to a single party was assessable as income from house property and not business income
Shareholder can’t file petition for oppression solely on basis of resolution not approved in the AGM
CL : A shareholder cannot take benefit of resolution passed by board of directors for issuance of additional shares to maintain his petition under sections 397 & 398 when resolution had not been approved in AGM and accepted by statutory authority
Onion Prices Rise To Rs 55-60/Kg, Hike Bring 'Tears' In Eyes Of People
11-Aug-2013
Vegetable sellers said the reason for the spurt in the price of onion was shortage of onions at the supply source.
Consumers across the country feel the pinch of rising prices of onion, as erratic rainfall in growing areas and thin stocks coupled with high demand pushes the prices further.
Vegetable sellers said the reason for the spurt in the price of onion was shortage of onions at the supply source.
Diwaker, a vegetable vendor in New Delhi said: “One of the main reasons for hike in onion prices is the shortage of supply from Madhya Pradesh. The ongoing shortage and price hike calls for an immediate solution and for this we may have to import onions from abroad to meet the demand of the consumers.
Onions are being sold at Rs. 55-60 per kilogram in Delhi.
Higher onion prices may also create fresh problems for the Government, which has been struggling over the past several months to contain inflation.
According to the vegetable vendors the price of onions is likely to go up further in the near future.
A vegetable vendor Suresh Choudary from Mumbai also said that the hike in onion price is mainly due to shortage of supply.
“There is not enough supply to meet the demand of the consumers. Two days ago the price of onions was Rs. 40 per kilogram and now it is being sold at Rs. 44-50 per kilogram and every 10 kilogram of onion is being sold for Rs. 450. And the prices are bound to increase more,” he said.
The rise in onion price is adversely affecting the household budget of the consumers.
One of the customers Jaysantha said that the onion prices have risen from Rs. 40 per kilogram to Rs. 60 per kilogram and added that it has become very difficult to buy onions.
Onion rates at Lasalgoan, in Nashik District which is the Asia's biggest wholesale market for onions have increased to Rs 31.50 per kilogram from Rs 24 per kilogram on July 31.
According to reports, wholesale onion price in Lasalgaon had reached to this level during December 2010-January 2011. Retail prices had then skyrocketed to about Rs 100 per kilogram across the country, forcing government to curb exports.
However, on account of shortage of supply, onion prices in Punjab, Haryana and Chandigarh have also shot up to Rs 50-55 per kilogram across retail markets.
Meanwhile in NCR, onion is being sold at Rs. 45 per kilogram at Mother Dairy's 350 Safal stores.
Source:-www.dnaindia.com
Rupee Rises Against Dollar Ahead Of Iip, Inflation Data
Mumbai: The Indian rupee on Monday opened higher at 60.51 per dollar against its Thursday’s close of 60.86.
The government is expected to announce some measures, including a possible dollar bond issuance, soon this week.
At 9.09am, the local currency was trading at 60.66 per dollar, up 0.34%. India’s equity benchmark Sensex was trading at 18,853.31 points, up 0.46%.
On Monday, the government will issue the index of industrial production (IIP) and consumer price index (CPI) inflation data at 5.30pm.
A Bloomberg poll showed that IIP will fall 1.1% for June as against a 1.6% decline in May, while CPI will be 9.7% for June compared with May’s 9.87%.
Source:-www.livemint.com
Exports To Bangladesh, Nepal Face Procedural Delays: Eepc India
KOLKATA: Exports to Bangladesh through Petropole land port are facing delays in clearances from regulatory authorities such as customs resulting in very high transaction costs making Indian shipments uncompetitive, EEPC India has said.
In a presentation to the government, the EEPC India (earlier known as the Engineering Export Promotion Council) said that shipments are sent regularly to Bangladesh through Petrapole land port. These consignments are often facing delay for clearing due to over burden, holidays etc leading to heavy transportation detention charges being levied on them. The "unwarranted expenses" are usually transportation detention charges. Different exporters have reported different costs on this count. According to one assessment, these expenses were Rs 700 per day and are now Rs 800 per day. In that case, the detention time in the recent supplies is 8-10 days which is Rs 6,500 - Rs 8,000 for the whole consignment.
"The solution lies in round the clock 24X7 land port facility and this needs to be upgraded," EEPC India chairman Aman Chadha said. According to the EEPC India presentation, for shipments to Bangladesh by Barge, the current practice is that for each shipment, Customs commissioner's permission is required. It is suggested that the current practice be done away with as it is time consuming.
The situation in regard to exports to Nepal is somewhat similar. For shipments to Nepal by road through ICD Birgunj, Raxaul, Sanauli and Jogbani, Customs authorities insists on different kind of furnishing of papers which are not necessary during the time of processing of Bill of exports. The Bill of Exports are allowed to be processed only when materials physically cross the border.
"It is suggested that the Bill of Exports (BOE) be allowed to be processed before the material physically arrives as the BOE is valid till 15 days and no insistence for furnishing of the technical paper called ARE 1 should be made during the time and processing of BOE."
The EEPC said that procedures for exports in general through different ports have become cumbersome. There are approximately about 24 steps required by the exporter from the time of receiving an export order to remitting of Foreign Agency Commission including claiming of export incentives.
"The process takes 6 months at the minimum to complete this cycle. In addition, there are 8 Principal documents, 7 auxiliary documents and 7 regulatory documents. It is estimated that more than 100 signatures are required and about 16 to 18 hrs required approximately completing this process. The total transaction cost as a percentage of FOB value for a medium sized export consignment of around USD 20, 000 would be between 8.89 per cent for shipments closer to the ports and 11.89% for shipments which are from inland cities".
One possible way could be to think of one Single Export Document. Such a system has been tried in many other countries, EEPC India Chief said. It said when exports have been declining despite currency depreciation and the government is battling with the current account deficit, the country can ill-afford delays in shipments and incurring heavy transaction costs.
Source:-economictimes.indiatimes.com
Electronics Export Council To Unveil Africa-Focus Strategy
11th August 2013
The Electronics and Computer Software Export Promotion Council (ESC), sponsored by the Indian government, will soon evolve a multi-pronged strategy to tap the huge potential for export of electronics hardware and software to the African region.
Factoring in inputs from all stake-holders -- industry, the government and the trading community, the strategy will clearly delineate a country-specific approach for increasing the penetration to these markets, ESC said in a statement here Sunday.
“The region (Africa) is of paramount importance to future growth of the Indian electronics and IT sector on account of the fast digitalization programme embarked by some of the African countries,” said D.K. Sareen, executive director, ESC.
The ESC's Africa strategy will divide the continent into five regions depending on their geographical proximity. Each geographical unit will be studied in depth to ferret out the potentials, road-blocks and the likely results that can be achieved in a conceivable time-frame, Sareen said.
To start with, East Africa will be the geographical unit that will be taken up for intense study.
ESC is organising a meeting here this week with heads of African missions to collate their views for joint working to tap the electronics and IT sector for mutual development.
The 14th edition of ESC's flagship event "Indiasoft", being held in Mumbai in November this year, will be attended by 35 delegates from 13 countries including Ghana, Nigeria, Burkina Faso and Tanzania, which are making significant investments in the IT sector.
"ESC's initiative to evolve an Africa-focus strategy is to collate information from sources which are doing businesses with countries, irrespective of the presence of Indian missions (in those countries)," Sareen said.
Source:-newindianexpress.com
CUP method provides most direct comparison; should be preferred over other profit based methods, ITA
IT/ILT: Since CUP method provides most direct comparison, it is preferable to other profit based methods like TNMM
Government Considers Sops To Boost Export Of Auto Components
11 Aug, 2013
NEW DELHI: The government is considering giving incentives to the auto component industry to boost exports, with the Ministry of Commerce and the Department of Heavy Industry conducting a joint assessment of the sector.
"The automobile components industry, particularly exports, has been facing a tough time. Both the Ministry of Commerce and Department of Heavy Industry are doing an assessment of the sector with a view to give a push to exports," an official told PTI.
The auto component sector has been hurt by the slump in automobile demand, in both the domestic and export markets.
"Once the assessment is completed, both the ministries will see if incentives could be given to the sector," the official added.
The Automotive Component Manufacturers' Association of India (ACMA) has approached the Department of Heavy Industry to take steps to support the industry and address issues such as the high cost of borrowing and export incentives in the wake of rupee depreciation.
"The outlook (auto components exports) remains uncertain for the current fiscal as there is a weak demand globally," the official said.
The component industry has felt the hit of the drop in car sales, which fell for a record eighth month in a row in June. In the first quarter of this fiscal, passenger vehicles sales have dropped 7.24 per cent from 6,54,858 units in the same period in the previous fiscal.
Source:-economictimes.indiatimes.com
India Imports Urea Worth $ 614 Million During April-July
11 Aug, 2013
NEW DELHI: India imported over 2 million tonnes (MT) of urea in the first four months of this fiscal worth $ 614 million (about Rs 3,700 crore) to meet domestic demand, which is expected to further rise on good monsoon.
The country had imported 7.04 million tonnes of urea in the entire 2012-13 fiscal for nearly $ 3 billion, according to the Fertiliser Ministry data.
Out of 2 million tonnes of urea imported so far, the government has imported 1.34 million from OMIFCO, which is a joint venture project of IFFCO and Kribhco, with an offtake agreement. Another 0.69 million tonnes has been imported through state trading enterprises (STEs).
Urea is imported by three STEs - Indian Potash Ltd (IPL), MMTC and STC on behalf of the government to meet domestic shortfall. The country produces about 22 million tonnes against an annual domestic demand of 30 million tonnes.
According to data, import of P&K fertilisers (such as DAP and MOP) have touched 1.93 million tonnes in the April-July period of this fiscal.
India had imported 8.14 million tonnes of P&K fertilisers during last fiscal. Unlike urea, the demand of P&K nutrients is largely met through imports.
A Fertiliser Ministry official said the demand is expected to rise this year as sowing area rose on the back of good monsoon.
In 2012, urea demand was subdued due to drought in four states - Karnataka, Maharashtra, Gujarat and Rajasthan.
Urea is provided to farmers at a fixed subsidised maximum retail price (MRP) of Rs 5,360 per tonne.
The difference between the cost of production and MRP of urea is provided as subsidy.
Source:-economictimes.indiatimes.com
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