IT : Assessee having disclosed fact of cancellation of its banking licence in its return, Assessing Officer on basis of this fact could not reopen assessment to assess loss incurred by assessee under head 'Income from other sources instead of business loss
Friday, 30 August 2013
Interest on I-T refund isn't an operational profit for a co-operative bank, not eligible for sec. 80
IT: An assessee-banking society is not eligible for deduction under section 80P(2)(a)(i) on interest on income-tax refund
Declaration under sec. 73 can't be rejected without calling upon assessee to reverse pro-rata credit
ST: As per section 73 of Finance Act, 2010, on receipt of declaration making pro rata reversal of credit relating to exempted goods, Commissioner may verify correctness of amount paid and call upon assessee to pay differential amount, if any; but, he cannot reject declaration without granting a hearing to assessee
Jurisdiction of the High Court is determined by situs of AO at time of filing appeal
IT: Jurisdiction of High Court is determined by situs of Assessing Officer at time of filing appeal
Taxes to be withheld even if consideration for use of know-how is paid to NR through issue of shares
IT/ILT: Where non-resident-company provided technology/know-how in form of capital contribution, tax was required to be deducted at source on issue of shares
Cairn India Drops Along With Crude Oil Price
31-Aug-2013
Cairn India lost 1.82% to Rs 319 at 13:07 IST on BSE as US crude oil futures fell for a second straight day after UK lawmakers rejected a motion for military action against Syria, easing concern that unrest will disrupt Middle East oil supplies.
Meanwhile, the S&P BSE Sensex was up 43.62 points or 0.24% at 18,444.66.
On BSE, 1.13 lakh shares were traded in the counter as against average daily volume of 1.67 lakh shares in the past one quarter.
The stock hit a high of Rs 325.95 and a low of Rs 317.55 so far during the day. The stock had hit a 52-week low of Rs 267.90 on 28 March 2013. The stock had hit a 52-week high of Rs 365.90 on 17 September 2012.
The stock had outperformed the market over the past one month till 29 August 2013, surging 9.1% compared with the Sensex's 6.08% fall. The scrip had also outperformed the market in past one quarter, jumping 12.79% as against Sensex's 8.67% fall.
The large-cap company has equity capital of Rs 1910.46 crore. Face value per share is Rs 10.
US crude oil futures for October 2013 delivery were down $1.28 a barrel at $107.52 a barrel in the electronic trading today, 30 August 2013. The contract had fallen $1.30 a barrel or 1.18% to settle at $108.80 a barrel on the New York Mercantile Exchange on Thursday, 29 August 2013. Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms like Cairn India.
The House of Commons rejected a proposal put forward by UK Prime Minister David Cameron seeking a military response to what he says is evidence of the use of chemical weapons by Syria.
Meanwhile, the global oil market is adequately supplied and doesn't require the release of emergency stockpiles, according to the International Energy Agency (IEA).
Cairn India's consolidated net profit fell 18.3% to Rs 3127.23 crore on 8.5% decline in net sales to Rs 4062.93 crore in Q1 June 2013 over Q1 June 2012.
Cairn India is primarily engaged in the business of oil and gas exploration, production and transportation. The company sells its oil to major refineries in India and its gas to both public sector units and private buyers.
Source:- business-standard.com
Bangalore Among Top Service Tax Laggards
Bangalore, with over one lakh registrants yet to file service tax returns under the one-time Voluntary Compliance Encouragement Scheme 2013, ranks among cities with highest defaulters.
Many may miss out on the benefits of the scheme due to lingering doubts, said Vanaja N. Sarna, Chief Commissioner of Central Excise and Service Tax, Bangalore Central Excise Zone, here on Friday.
Countrywide, only seven lakh of the 17 lakh registrants have filed service tax returns so far since the scheme became effective on May 10, leaving a chunky 10 lakh defaulters.
One-time opportunity
Urging participants to make use of the one-time opportunity, Ms. Sarna said the scheme was meant to improve service tax compliance and assessee base and would also spare declarants from penalty and interest under Service Tax laws.
She was speaking at an interactive session on the VCES organised by the Confederation of Indian Industry.
97 applications received
Suresh Kumar, Additional Commissioner of Central Excise and Service Tax, said in Bangalore alone, 97 applications were received up to August 29 with a declaration of Rs. 53 crore.
Under the scheme announced in the Budget, those who have not filed their returns should voluntarily declare their liabilities for five years from October 2007; they should pay at least 50 per cent of the due amount by December 31 this year and the rest by June 30, 2014.
‘Bold step’
Abhishek Goenka, Convener of CII-Karnataka’s Economic Affairs and Taxation Panel, and also Partner, BMR Advisors, called the VCES a bold step.
The CII’s exercise was to spread awareness about it, he said.
Source:- thehindu.com
Importers Stop Fresh Cement Import Orders From Pakistan
30-Aug-2013
Cement imports from Pakistan through Attari-Wagah route has almost come to a halt with record rise in US dollar against rupee, eliminating the viability for its import, traders said here.
"There are no fresh orders taking place for import of cement from Pakistan because of weakening of rupee against the US dollar," Amritsar-based leading cement importer M P Singh Chattha told PTI on Friday.
Importers pointed out that there was now no viability of importing cement from the neighbouring country as weakening of rupee had completely brought the pricing of Pakistan's cement on par with that of Indian one.
"Now, price of Indian cement is on par with as Pakistan's cement price because of rise in US dollar against rupee. After import, cement from Pakistan now costs at wholesale price of Rs 250 per bag, while Indian one is available at Rs 242 per bag," he said. "If an importer does not get a profit of Rs 2-4 per bag, then why he will import," he questioned.
Import of cement from Pakistan got a boost in the past as it was cheaper by Rs 20-25 per bag as compared to Indian cement. Moreover, the quality of cement from Pakistan is better than that of Indian cement, importers said.
A large number of traders are engaged into the import of cement which mainly comes from Islamabad and it is consumed in Punjab, Haryana, Himachal Pradesh and some other parts of the country. Financial transactions between traders of Pakistan and India at Attari-Wagah route is carried out in dollar terms.
Indian rupee touched a record low of 68.85 against the dollar earlier this week. Currently, against 40-50 trucks, now 10-15 trucks carrying cement are coming from Pakistan. "Whatever cement is coming now is the result of previous orders," said another import Rajdeep Uppal.
Meanwhile, importers further said that rates of dry fruits and dry dates coming from Pakistan would go up by 20 per cent. "Prices of dry fruits and dry dates have gone up by 20 per cent due to weakeing of rupee," said a dry fruit importer Anil Mehra. It is estimated that more than 15 lakh bags of dry fruits, including almond, fig, raisins, are imported annually from Pakistan.
Importers said that there was drastic fall of import of dry fruits and dry dates as traders are worried over uncertainty prevailing in rate of rupee against dollar.
Source:- economictimes.indiatimes.com
Ban High-Grade Iron-Ore Exports: Standing Committee
Exports of high-grade, if not all, iron ore should be slashed —preferably banned altogether—in order to preserve the “scarcely available national asset” and boost the domestic steel industry, the standing committee on coal and steel said in a policy review.
The committee, in its review of iron ore export policy tabled in Parliament on Thursday, urged the government to take immediate measures to ban the export of high grade iron ore (with more than 64% iron content) and “if possible ... total banning of export of iron ore.”
The committee headed by Kalyan Banerjee, a Lok Sabha member from the Trinamool Congress, virtually questions the rationale for exports, quoting the Planning Commission as saying “large scale exports of iron ore have raised serious concerns about future availability”.
The report comes just when finance minister P. Chidambaram is trying hard to curtail a current account deficit of $87.8 billion by boosting mineral exports among other measures. Speaking in Parliament, Chidambaram expressed unease about the fact that vast resources of iron ore are lying unexploited due to a ban imposed by the Supreme Court at a time when the country desperately needed forex.
The apex court has imposed a blanket ban on iron ore mining in Goa and a partial ban in Karnataka. It has left the decision on one iron ore mine in Orissa on the Union government.
The report also recommended that all upcoming steel plants and expansion of existing steel plants should be based on technologies that can use low grade iron ore (fines). It expressed dismay that out of the Rs 200 crore allocated by the 12th Plan, nothing was spent on promoting technologies that convert fines into pellets with high iron content.
Indian steel plants need high-grade ore because the capacity to process low-quality ore is still in a nascent stage.
Incidentally, the basic argument of the commerce and mines ministries to reduce export duty on iron ore is that “not all types of iron ore are suitable for processing in India”. The steel ministry has opposed this proposal.
Rather than taking the easier route of exports, the committee asked the ministry of steel to take immediate steps to create pelletization facilities so that lower quality ore can be fully used by domestic steel plants.
Noting that the iron ore requirement in 2016-17 is likely to be 206 million tonnes— 1.5 times the present consumption—it asked the steel ministry to draft a new steel policy and an action plan for exploring untapped potential sources of iron ore.
Source:- livemint.com
To Beat Rupee Heat, Indian Steel Makers Might Export More
To tackle the impact of the depreciating rupee on their margins, top domestic primary steel producers plan to focus on increasing exports and lowering the inventory build-up period of coking coal.
Coking coal is one of the major raw materials used by the domestic steel industry and contributes significantly towards the cost of production of the alloy. To meet its demand for coking coal, the domestic steel industry relies entirely on imports. With the rupee having depreciated about 25 per cent since the beginning of the year, hitting an intra-day record low of 68.75 against the dollar on Wednesday, the import bill for coking coal is expected to surge, raising the expenses of steel companies.
“We plan to lower our coking coal inventory duration to 30 days from 40-45 days,” a Rashtriya Ispat Nigam Ltd (RINL) official told Business Standard. “We will defer our coal purchases.”
RINL relies entirely on imported coking coal to meet demand. Most of the coal demand of JSW Steel and Essar Steel India is met through imports. While Steel Authority of India also imports the commodity, three-four per cent of its demand is met through captive sources.
About half the coking coal requirement of Tata Steel is met through captive mines. Jindal Steel and Power relies on imported coal, but as it also uses electric arc furnaces to manufacture steel, its requirement includes thermal coal, which is domestically available.
As a depreciating rupee benefits exporters, steel companies are planning to avail of the situation by tapping the foreign market, where demand is rising. Steel exports from India, on a rise since the last two-three months, are expected to increase further. “Our strategy to tackle the (falling rupee) situation is to increase our exports,” said Jayant Acharya, director (commercial and marketing), JSW Steel. “We will increase exports from the current 20 per cent (of the total) to tap the opportunity abroad,” he said. Currently, Mumbai-based JSW Steel sells 80 per cent of its steel produced in the domestic market.
“At present, our exports are negligible, but we plan to double it in the coming months to take advantage of the weakening rupee,” said the RINL official. RINL exports only 0.5-one per cent of its total steel production.
Companies such as Essar Steel have remained completely insulated from the rupee’s heat, purely because of their business model. “We are one of the largest exporters of flat products and so, our dollar inflows are more,” said Ashutosh Agarwala, director (finance) and chief financial officer, Essar Steel India. “We are naturally hedged. In fact, we are benefiting from the devaluation of the rupee,” he added.
West Asia, Southeast Asia and Africa were some of the regions that might account for Indian steel exports in the coming months, said analysts.
Meanwhile, Tata Steel and Steel Authority of India are banking on their assured clientele in the domestic market to drive business.
To bring home dollars and lower debt burden, if any, selling foreign assets could be another option steel companies could consider to protect their margins. Tata Steel operates Europe’s second-largest steel company, which it acquired in 2007, while JSW Steel owns a plates and pipes unit in the US, also acquired in 2007. “There are no plans to sell the US plant,” said Acharya of JSW Steel. “The US plant remains very much with us.”
“Even if a company is ready to sell, it is difficult to find a buyer in a dull market like this,” said Giriraj Daga, senior analyst with Nirmal Bang Institutional Equities. “Also, to get the right price for the unit to be sold is difficult,” he added.
On the domestic front, however, demand for steel remains subdued because of the poor investment climate. Here, steel producers plan to increase prices, anticipating demand would rise from October, ahead of the festive season. “JSW Steel is planning to raise prices of steel products for September, but we are yet to decide the quantum,” said Acharya.
“There could be a price rise of Rs 1,000-1,500 a tonne for September, as the input cost has gone up because of the rupee,” said an RINL source. “Though demand is not very strong in the domestic market, stockists are taking a risk in anticipation that demand may pick up in coming months,” said the source.
All things considered, domestic steel producers seem to be keeping no stone unturned to save themselves from the weakening rupee.
Source:- business-standard.com
Government Raises Import Tariff Value Of Gold To $461 Per 10 Grams
30-Aug-2013
The government on Friday raised the import tariff value of gold to $461 per ten grams and of silver to $803 per kg as prices of the precious metals touched all-time high this week.
Tariff value -- the base price on which the customs duty is determined to prevent under-invoicing -- of gold and silver stood at $432 per 10 gram and $697 per kg, respectively earlier.
The notification, issued by the Central Board of Excise and Customs, has come two days after when gold prices has touched the new peak of Rs 34,500 per 10 grams in the national capital. The prices of yellow metal has increased by 9 per cent so far in the month of August.
Prices of Gold today fell and closed at Rs 31,700 per ten grams and Silver at Rs 54,000 per kg in the national capital today.
However, gold in Singapore, which normally sets the price trend on the domestic front, fell by almost one per cent to $1,393.10 an ounce and silver by 1.34 per cent to $23.55 an ounce.
India, the largest gold consumer in the world, imported 860 tonnes of gold in 2012. In the first four months of the current fiscal, the import rose 87 per cent to 383 tonnes.
Source:- economictimes.indiatimes.com
HC admitted winding up petition as Co. failed to honour Rs. 1 lakh debt despite legal notices
CL: Where there was no bona fide dispute that debt due and payable by company was more than statutory amount of Rs. 1 lakh and in spite of statutory notice, company failed or neglected to pay same, winding up petition filed by creditor was deserved to be admitted
Due date for filing of ST-3 return further extended to September 10, 2013
ST : Section 70 of The Finance Act, 1994, Read with Rule 7 of The Service Tax Rules, 1994 - Furnishing of Returns - Due Date for Filing of ST-3 Return for The Period 1-10-2012 to 31-3-2013 Further Extended to September 10, 2013
TP adjustment for controlling premium upheld; transfer of shares as per SEBI Regulation can’t be dee
IT/ILT : TP adjustment for control premium upheld as it is only the seller who can demand control premium in case he is selling the controlling stake. Even if price charged for transfer of shares is as per SEBI Regulations, it can't be deemed to be at ALP as such regulations does not in any way state that price negotiated by the assessee with the buyer is at arm's length price
ORDER NO 04/2013-Service Tax dated 30-08-2013
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Order No: 4/2013-Service Tax
New Delhi, dated the 30th August, 2013
In exercise of the powers conferred by sub-rule(4) of rule 7 of the Service Tax Rules, 1994, the Central Board of Excise & Customs hereby extends the date of submission of the Form ST-3 for the period from 1st October 2012 to 31st March 2013, from 31st August, 2013 to 10th September, 2013.
The circumstances of a special nature, which have given rise to this extension of time, are as follows:
“ Difficulties have been faced by assessees in uploading the offline utilities”.
Himani Bhayana
Under Secretary (Service Tax)
Central Board of Excise and Customs
F.No.137/99/2011-Service Tax
To
All Chief Commissioners of Central Excise / Customs and Central Excise
Directors General of Service Tax /Central Excise Intelligence /Audit/Systems All Commissioners of Central Excise/ Customs and Central Excise
All Commissioners of Service Tax
All Commissioners LTU
All Additional Directors General Systems
TP adjustment for controlling premium upheld; transfer of shares as per SEBI Regulation can’t be dee
IT/ILT : TP adjustment for control premium upheld as it is only the seller who can demand control premium in case he is selling the controlling stake. Even if price charged for transfer of shares is as per SEBI Regulations, it can't be deemed to be at ALP as such regulations does not in any way state that price negotiated by the assessee with the buyer is at arm's length price
Membership fee paid to a foreign NPO for professional updates doesn't have constituents of 'Income';
IT/ILT: Where subscription/membership fee paid by Indian CA firm to UK non-profit organisation did not result in income in its hands, amount was not taxable
No sec. 14A disallowance if shares are held as stock-in-trade; related admin exp. are still disallow
IT: Disallowance of interest under section 14A in relation to dividend received from trading of shares cannot be made
Credit can't be denied to input service distributor even if its invoices bear name of head office
ST : Where receipt of input service and use thereof along with identity of service provider and service recipient are established, credit cannot be denied merely because invoice thereof bears address of Head Office, which is not registered as ISD.
CLB's decision does not have fatal flaw even it formal procedure relating to amendment of pleadings
CL: Decision of CLB or Court would not suffer from a fatal flaw just because formal procedure pertaining to amendment of pleadings is not adhered to in that case
Manufacturing of different Masala Powders eligible for section 80-IB deduction
IT: Manufacturing different masala powders amounts to manufacturing activity eligible for deduction under section 80-IB
Order by ITAT couldn't be recalled if neither any mistake nor any reasonable cause for non-appearanc
IT: Where Tribunal passed an ex parte order deciding issues on merits and assessee had not been able to show any mistake in that order nor any reasonable cause for its non-appearance, order passed by Tribunal could not be recalled
Refund application signed by agent would be a sufficient compliance by principal
ST/ECJ: In case of an application for refund, it need not necessarily be signed by assessee in person and signature of an agent may be sufficient for that purpose
Customs Notification No 91/2013 (NT) dated 29-08-2013
Government of India
Ministry of Finance
(Department of Revenue)
(Central Board of Excise and Customs)
Notification No. 91/2013 – Customs (N. T.)
New Delhi, 29th August, 2013
7 Bhadrapada, 1935 (SAKA)
S.O. … (E).– In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated the 3rd August, 2001 , published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 748 (E), dated the 3rd August, 2001, namely:-
In the said notification, for TABLE-1, TABLE-2, and TABLE-3 the following Tables shall be substituted namely:-
“TABLE-1
| Sl. No. | Chapter/ heading/ sub-heading/tariff item | Description of goods | Tariff value US $ (Per Metric Tonne) |
| (1) | (2) | (3) | (4) |
| 1 | 1511 10 00 | Crude Palm Oil | 808 (i.e. no change) |
| 2 | 1511 90 10 | RBD Palm Oil | 851(i.e. no change) |
| 3 | 1511 90 90 | Others – Palm Oil | 830(i.e. no change) |
| 4 | 1511 10 00 | Crude Palmolein | 854(i.e. no change) |
| 5 | 1511 90 20 | RBD Palmolein | 857(i.e. no change) |
| 6 | 1511 90 90 | Others – Palmolein | 856(i.e. no change) |
| 7 | 1507 10 00 | Crude Soyabean Oil | 928(i.e. no change) |
| 8 | 7404 00 22 | Brass Scrap (all grades) | 3743(i.e. no change) |
| 9 | 1207 91 00 | Poppy seeds | 2648(i.e. no change) |
TABLE-2
TABLE-3
| Sl. No. | Chapter/ heading/ sub-heading/tariff item | Description of goods | Tariff value (US $ Per Metric Tons ) |
| (1) | (2) | (3) | (4) |
| 1 | 080280 | Areca nuts | 1870 (i.e. no change) ” |
[F. No. 467/01/2013-Cus.V Pt-I]
(M. Satish Kumar Reddy)
Director (ICD)
Note: - The principal notification was published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide Notification No. 36/2001–Customs (N.T.), dated the 3rd August, 2001 , vide number S. O. 748 (E), dated the 3rd August, 2001 and was last amended vide Notification No. 85/2013-Customs (N.T.), dated the 21st August, 2013 , published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O …….. (E) Dated, the 21st August, 2013.
NO disallowance for cash payment at a petrol pump located in a remote area not privileged with banki
IT: Where assessee made cash payment for purchase of petrol in excess of Rs. 20,000 at a petrol pump which was far away from main town, Tribunal rightly concluded that it was not feasible to make payment by way of cheque or demand draft and, therefore, impugned disallowance made under section 40A(3) was not sustainable
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