IT: Where hearing was adjourned to await order of Special Bench of ITAT on same issue, it could not be held that assessee had sought adjournment by pointing out such fact, and thus flouted stay order
Wednesday 28 August 2013
Assessee could take shelter of beneficial order if SC passed divergent orders on same day and on sam
ST : In case of difference in interim orders of Supreme Court passed on same day on same issue of recovery of arrears of service tax dues in respect of renting of immovable property services provided upto 30-9-2011, assessee may claim benefit of beneficial order
SC: Tribunal to record its findings on impugned violation of provisions before deciding jurisdiction
SEBI: Tribunal to record its findings on impugned violation of provisions before deciding jurisdiction of SEBI
No sec. 41(1) additions for waiver of interest if ROI of year in which deduction was claimed was tre
IT: Where assessee's returns, claiming interest deduction, were treated as non est, waiver of such interest could not be subsequently taxed as remission of liability
India Plans Oil Import From Iran To Cut Import Bill, Cad
NEW DELHI: The oil ministry has worked out a plan to save $22 billion in the oil import bill from Iran thus helping reduce the current account deficit (CAD), petroleum minister M Veerappa Moily has said.
"Oil (imports) is one of the components responsible for CAD. The prime minister has told us to save $25 billion in the import bill. As of today, we have pieced together a plan to save $22 billion in import bill," Moily said.
He said the savings would be around one percent of the GDP.
Moily was talking to reporters Tuesday at an event to present a cheque for Rs.5 lakh to the widow of Arjuna awardee sportsman late Makhan Singh.
Senior oil ministry sources told IANS that the plan includes renewing imports from sanctions-hit Iran, which India pays in rupees thereby saving foreign exchange and reducing the CAD.
Officials calculate that importing, for instance, 10 million tonnes oil from Iran means saving $10 billion in foreign exchange outgo. During the last fiscal, India imported 13.1 million tonnes of oil from Iran, down from 18.11 million tonnes of 2011-12.
After not buying any oil from Iran in first four months of the current fiscal, imports were resumed this month with state-run Mangalore Refinery and Petrochemicals getting the first tanker-load.
In view of the current volatility of the rupee against the dollar, India is discussing with Iraq the possibility of trade in local currencies, which would help insulate India's oil imports from Iraq also.
Source:-timesofindia.indiatimes.com
Gold Imports In August Likely To Be 5 Tonne; May Resume From Tomorrow
28 Aug, 2013
MUMBAI: Jewellers are expecting customs authorities to release soon gold held up at warehouses due to confusion over RBI's recent notifications on import of the precious metal.
The central bank had come out with a circular on July 22 that said 20 per cent of an imported consignment should exclusively be made available for exports. As the Customs were unsure of how to implement RBI notification, they stopped all stocks from entering the country, jewellers claimed.
"We hope the Central Board of Excise and Customs will release the gold, which is deposited at the Customs bonded warehouses, in a day or two as we have discussed and clarified the confusion on the RBI notification earlier this week," Gems and Jewellery Export Promotion Council Vice Chairman Pankaj Parekh told PTI.
He added that with immediate release of gold from the warehouses, total import in August is likely to go up to 4-5 tonne. In September, Parekh said, the total gold imports is likely to be around 20-25 tonne giving respite to manufactures who were struggling with lack of enough stocks.
On August 26, GJEPC members met with CBEC to discuss the RBI circular, and it has been agreed that after taking one time certificate from the Customs Department, the traders do not need permission every time they take a delivery, Parekh said.
The second point they agreed upon is that instead of invert remittance, which takes more than 280 days, as a proof of export before the import of third lot, exporters can give customer invoices as evidence of their shipments, he added.
Gold prices zoomed to a record high of Rs 34,500 per 10 gram with a biggest-ever single day surge of Rs 2,500 in opening trade in bullion market today amid the rupee hitting historic low of 68.75 a dollar.
All India Gems and Jewellery Federation Chairman Haresh Soni too said there is likely to be at least some import in the last two days of this month. "At the moment the stocks lying at the Customs bonded warehouses will be released into the country. However, it's very difficult to quantify it," he pointed out.
He said in September the imports were expected to be normal.
Source:-economictimes.indiatimes.com
Import Duty On Metal Scrap Batters Recyclers In India
Aug 28, 2013
MUMBAI (Scrap Monster) : The re-instating of import levy on scrap metal imports to the country by the Indian government has created unrest among the metal recyclers in the country. The imposition of duty has left many of them on the verge of closure.
Recently, the Indian government had issued customs notification imposing an import levy of 2.5% on aluminium, ferrous and stainless steel scrap. In a separate notification, the government also had imposed 4% special additional duty of customs (SAD) on brass scrap imports.
India is the only country in the Southeast Asian region to have imposed import duty on scrap metals. According to the Metal Recycling Association of India, the move by the Indian government will only help to hinder the use of metal scrap by the country. Also, the domestic metal recyclers may find it extremely difficult to face the mounting competition from semi-finished producers in other ASEAN countries where raw material imports are duty-free.
In India, domestic scrap collection is still dominated by informal sector. According to statistics, the country imports nearly 7.5 million tonnes of scrap every year. The 4500 around metal recyclers, who depend on the imported raw material to produce castings, would be left with no option but to close down their business. Such an action by metal recyclers will in effect result in India losing its US$ 100 billion vehicle and vehicle components market to China and Thailand.
Meanwhile, the Metal Recycling Association of India (MRAI) has requested the government to take immediate action to abolish the import duty. The government is reported to be looking into the matter quite seriously.
Source:-www.metal.com
Iron Ore Exports Set To Restart In A Big Way
August 28, 2013
The rise in prices of iron ore in international markets and the depreciating rupee have prompted many exporters to begin shipments of iron ore fines and pellets. A bunch of exporters have booked five shipments of pellets for September delivery to buyers in China as the prices have moved up 10.5 per cent to $136 a tonne.
“Exporters were holding on to their stocks since a month in anticipation of a cut in export duty by the government. As prices have improved abroad, they have started booking export contracts to benefit from the rupee depreciation,” said Prakash Duvvuri, head of research, Ore Team, a mining and metal information website.
Nearly half a dozen exporters have booked consignments from Paradip and Vizag ports on the eastern coast for September delivery to Chinese buyers. According to reports, five ships with 50,000 tonnes of pellets each are being shipped.
As of the end of July and early August, exporters were holding on to their stocks in anticipation that the government will reduce duty on exports to 15-20 per cent from 30 per cent earlier.
Between April and July, the country had exported 3.92 million tonnes (mt) of ore (provisional figures) as against 13.4 mt in the corresponding period, a decline of 240 per cent, he said.
Duvvuri said the rupee depreciation might encourage more exporters to look for shipments abroad this year. An average of at least 1 mt of iron ore fines per month could be exported this year. Also, the rise in pellet prices has prompted Indian producers to look for their export this year. In recent days, prices of pellets have increased eight per cent from Rs 6,200 a tonne a month ago to Rs 6,700 a tonne currently, he said.
There is surplus production of pellets in the country. Of a total installed production capacity of 56 mt, Indian companies are producing 38 mt annually. Of this, about 25 mt are consumed in the domestic m arket, while the remaining 13 mt are available for exports, Duvvuri said.
In 2012-13, India’s iron ore exports declined 73 per cent to 18.66 mt, against 68 mt in the previous year. This was mainly due to ban in Goa, Karnataka and restrictions on mining in Odisha last year. Export duty of 30 per cent and differential freight policy adopted by the Indian Railways also contributed to decline in exports.
“If mining resumes in Goa by October this year, we could expect an additional 10 mt of iron ore exports during the current financial year. Else, the country will end up exporting about 12 mt, an all-time low compared to 18.66 mt last fiscal,” Duvvuri added.
Source:-www.business-standard.com
Economic Crisis May Prompt India To Restart Iran Oil Import
27th Aug 2013
New Delhi: Prime Minister Manmohan Singh has sought USD 25 billion cut in oil import bill to narrow current account deficit, Oil Minister M Veerappa Moily said on Tuesday.
India, which paid about USD 170 billion last fiscal for importing oil, is renewing imports of the fuel from Iran as unlike imports from other countries, it pays the Persian Gulf nation in rupees.
"Oil (imports) is one of the components responsible for CAD. Prime Minister has told us to save USD 25 billion in import bill. As of today, we have pieced together a plan to save USD 22 billion in import bill," Oil Minister M. Veerappa Moily told reporters here.
A large part of the plan includes restarting import of oil from Iran. As US and western sanctions blocked all payment routes, India pays Iran in rupees in a UCO Bank branch in Kolkata.
Officials said if India was to import 10 or 11 million tonnes oil from Iran this fiscal, it could save a minimum of USD 10 billion in foreign exchange outflow. India had last fiscal imported 13.1 million tonnes of oil from Iran.
India has been, since July 2011, paying in euros to clear 55 per cent of its purchases of Iranian oil through Ankara-based Halkbank. The remaining 45 per cent due amount was remitted in rupees in accounts Iranian oil company opened in Kolkata-based Uco Bank.
Payments in euro through Turkey ceased from February 6 this year and now Iran is paid only in rupees. Rupee payment helps save foreign exchange outgo, thereby reducing CAD. Moily refused to divulge details of his plan to cut oil import bill but said the savings planned will be 1 per cent of the GDP.
India, which in June won another 180-day waiver from the US sanctions after it cut crude oil imports from Iran by over 27 per cent, did not buy any oil from the Persian Gulf nation in first four months of current fiscal as insurance firms refused to provide cover to refiners processing Iranian oil.
Imports have, however, resumed this month with Mangalore Refinery and Petrochemicals Ltd (MRPL) getting the first shipload on August 17.
Indian Oil Corp (IOC) and Hindustan Petroleum Corp Ltd (HPCL) are likely to follow suit shortly while private sector Essar Oil, the other customer of Iranian oil, has continued to import oil from Tehran.
India had in 2012-13 imported 13.14 million tonnes of crude oil from Iran, down from 18.11 million tonnes of 2011-12. Iran was till 2010-11 India's second largest supplier after Saudi Arabia but has since slipped to the sixth place.
Source:-www.deccanchronicle.com
TP adjustment disallowed as comparables chosen by TPO were functionally incomparable and had excessi
IT/ILT-I: Where TPO in course of transfer pricing proceedings made certain addition to ALP determined by assessee, in view of fact that some of comparables selected by TPO were not appropriate on account of functional difference and excessive related party transactions, a part of impugned addition was to be deleted
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