IT: Where interest was charged for period subsequent to period under assessment which is pending in appeal, writ against levy of interest would be maintainable
Monday 2 September 2013
INCOME TAX APPELLATE TRIBUNAL : BANGALORE BENCHES:BANGALORE CONSTITUTION FOR THE WEEK FROM 02.09.2013 TO 05.09.2013
[unable to retrieve full-text content]INCOME TAX APPELLATE TRIBUNAL : BANGALORE BENCHES:BANGALORE CONSTITUTION FOR THE WEEK FROM 02.09.2013 TO 05.09.2013 {ad} For more infomation...
Units claiming area based exemptions can't use Basic Excise Duty credit to pay EC or SHEC
ST : In case of units availing area-based exemption in respect of excise duty, BED credit cannot be used for payment of EC & SHEC, as such restriction, though not provided by rule 3(4) and rule 3(7)(b) of CENVAT Credit Rules, 2004, is provided for by scheme of exemption notifications
Share of audit exp. paid to foreign parent co. liable for TDS as element of income embedded in it
IT/ILT: Tax was required to be deducted at source on share of audit expenses paid to foreign parent company, as element of income was embedded in receipt of auditor
Speed up tax refund work, income tax department told
The income tax department has resumed "normal refund payments" for 2011-12 after an informal goslow advisory was reversed.
At the same time, the offices have been asked to expedite refunds of up to Rs 50,000 for the last financial year although the bulk of tax returns were received by August 5. The move is aimed at ensuring that individual taxpayers are not adversely affected by any delays in refunds. Sources said the green light for all refunds has come from the highest level with field offices instructed to clear pending dues. The move comes after TOI highlighted how the revenue department had suspended refunds of over Rs 1 lakh for 2011-12 in the wake of a pressure on tax collections.
Every year, the I-T department is saddled with a huge refund burden, which is in excess of Rs 70,000 crore during some financial years. While a part of the refund is on account of excess tax paid by individuals and companies, a large part of the burden is due to pressure from the tax department on the corporate sector to pay additional sums to help officers meet the targets set for them. Such instances were especially high during the last financial year when the government was keen to ensure that the fiscal deficit was within the target of 5.2% of GDP set by the finance minister.
In the Budget, finance minister P Chidambaram has provisioned for over 18% growth in gross collections of corporation tax, personal income tax and wealth tax. But officials in the department admit that it is a tough ask. "There is a complete disconnect between the economic situation and the tax target. When the economy is growing at 4.4%, how do you expect me to meet the target?" said a senior officer, who did not wish to be identified.
Latest data released by the finance ministry showed that gross direct tax collections rose over 13.3% to Rs 1.57 lakh crore during April-July 2013, compared to Rs 1.39 lakh crore a year ago. From a 21% increase in gross collections during April-May , the growth rate moderated to 11.5% during the June quarter.
Green signal
Every year, the I-T Department is saddled with a huge refund burden, which is in excess of 70,000 crore during some financial years
While a part of the refund is on account of excess tax paid by individuals and companies, a large part of the burden is due to pressure from the tax department on the corporate sector to pay additional sums to help officers meet the targets set for them
Latest data released by the finance ministry showed that gross direct tax collections rose over 13.3% to 1.57 lakh crore during April-July 2013, compared to 1.39 lakh crore a year ago.
Additional refund claimed by assessee couldn't be denied if he overlooked to claim TDS credit as per
IT: Where assessee had claimed refund of lesser amount than that reflected in Form 26AS, he was to be permitted to make additional claim of refund
India Considers Holding Iran Oil Imports Steady
2-Sep-2013
India's oil minister is considering a plan to reduce the country's ballooning current-account deficit that includes holding its oil imports from Iran steady, according to a letter he sent to the prime minister.
Veerappa Moily said in the letter to Manmohan Singh, reviewed by The Wall Street Journal, that India could save as much as $8.5 billion by importing a further 11 metric tons of crude from Iran on top of the 2 million tons it has imported so far in the fiscal year that began April 1. This would be on par with the country's 13.11 million tons, or 263,000 barrels a day, of Iranian oil imports, in 2012-13. Failing to reduce the amount would put India in jeopardy of losing an exemption from U.S. sanctions against countries that do business with Iran.
The savings in foreign-exchange outflow would be achieved thanks to a barter arrangement that India has with Iran. It purchases oil from the Islamic Republic by depositing rupees into a bank account, and then Iran imports Indian goods, potentially including food, drugs, consumer products and auto parts, debiting rupee amounts from the same account.
India could save more money by limiting crude-oil imports by state-owned companies to the level reached in 2012-13 and by launching a fuel-conservation campaign, among other measures, Mr. Moily said in the letter. Last week, Mr. Moily said that Prime Minister Singh had asked him to work out a plan to cut the oil import bill by $25 billion.
Oil costs have been increasing globally of late on concerns about potential supply disruptions from the Middle East, largely as a result of U.S. plans to launch a military action against Syria. India has been particularly hard-hit, as the value of the rupee has fallen by nearly 20% against the U.S. dollar since May. The resultant higher cost of imports in general has led to accelerating inflation.
The rupee was at 66.00 to the dollar in late Asian trade, compared with around 53.68 at the end of April. Wholesale inflation was at 5.79% in July compared with 4.86% in June.
India paid about $144.29 billion for crude oil in 2013-14, Mr. Moily said. The country imports around 75% of its oil, and state-owned oil companies are forced to lose money on much of their output of refined products. Losses on subsidized diesel and cooking fuels will likely increase by 12% in 2013-14 to reach 1.8 trillion rupees ($27 billion) from 1.61 trillion rupees last year.
In the last calendar year, front-month Brent crude on the ICE futures exchange for delivery in October averaged $105.20 a barrel. On Monday, it was around $113.50. That amounts to around 7,475 rupees a barrel at the current exchange rate, up nearly a third compared with the average rupee-equivalent price last year.
"Whether it is Iran or any other country, any way by which we can have petrol or crude oil in a different currency [other than dollars], that is useful," said B.K. Chaturvedi, a member of the Planning Commission, a government think tank.
He said the idea of oil imports in rupees ought to be explored with other producers as well, such as Saudi Arabia, Nigeria, Venezuela and Colombia.
India has begun talks with Iraq for a barter trade agreement.
Any plan to increase oil imports from Iran would depend on foreign ministry approval, said Sujon Hajra, chief economist at Anand Rathi Securities.
India will have to consider the U.S. sanctions. Last fiscal year's Iranian oil imports fell by 27%, in line with a U.S. requirement that India and some other countries—including China and South Korea—steadily diminish their reliance on Iranian crude. The exemption is renewed every 180 days, and it is due to be renewed in December.
A continuing dispute between Iran and India over an Indian oil tanker that the Islamic Republic has detained—Iran says the tanker was polluting its waters; India denies the allegation—could also slow trade between the two countries. The tanker's owner said Friday that it was "hopeful" that the dispute would be resolved soon.
The broader goal of restricting oil imports could stumble, as railways and the defense sector, among the biggest guzzlers of diesel in the country, will likely continue to ratchet up demand, Mr. Hajra said.
Increasing prices "in a phased manner" may help to limit demand, he added.
The oil ministry has said that it may increase diesel's price by between three and four rupees a liter once the current session of parliament ends on Sept. 6. Diesel is selling at 51.97 rupees per liter in New Delhi.
Mr. Moily also said in the letter that the government is expected to fully implement a program to blend 5% ethanol with gasoline by next March.
The ethanol blending program could save around $340 million in 2013-14, he said
Source:- online.wsj.com
Maruti And Hyundai Betting On More Exports To Offset Depreciating Rupee
MUMBAI: With the rupee depreciating over 20% in the last eight months, carmakers have adopted a two-pronged approach of aggressively localising and taking advantage of the devalued Indian currency to drive into new geographies. Carmakers like Maruti Suzuki, Hyundai India, Toyota and Volkswagen are looking at ways to expedite their localisation plans and some are adding new geographies and models on the exports front.
Volkswagen's Indian subsidiary has opened up a new market of Mexico for exports, with the company planning to ship about 25,000 to 30,000 units of Vento, its popular sedan in the next 12-18 months. For the German carmaker's Indian entity, this will be a huge fillip as the proposed Mexican exports would make up almost 20-25% of its overall production in its Chakan plant. In addition, the company is considering exports to Indonesia and Malaysia in the near future.
Toyota recently shipped a pilot lot of 400 units of its compact sedan Etios to Indonesia and it is eyeing more markets for increased exports. Hyundai is planning to open up exports of Eon and i20 to more markets.
Maruti Suzuki is incentivising sales in overseas markets to make the most of depreciating rupee while Ford India will be exporting EcoSport to over 37 countries.
Mahesh Kodumudi, president and MD of Volkswagen India, declined to mention specific exports market, but said: "The primary intent for setting up the Pune plant was to cater to the domestic Indian market. However, with economic growth stalling, domestic demand for automobiles has weakened at a record pace. Besides, with the rupee plunging, we are forced to re-think our strategy.
We are increasingly exploring more and more export markets. Currently, we are exporting CBUs and parts & components to over 30 countries with exports to many more countries in the pipeline." In a bid to reduce the import content, Volkswagen is also considering an option of assembling engines in India at its Chakan plant.
The company is aiming to increase its localisation in India from 70% to 85-90% in the next few years. "We are vigorously pushing forward activities related to increasing the extent and depth of local manufacturing of parts and components," added Kodumudi.
Over the last four months of this fiscal, likes of Ford India, Honda Cars India, Volkswagen and Renault have seen a significant jump, where as traditional exporting companies have posted lower single-digit to flattish growth. Maruti Suzuki is the only company which has posted a significant decline in exports, as a large part of it comes from Europe, which is facing a massive downturn.
For majority of MNCs, the localisation level hovers around 50-80%, depending on the model. The rupee deprecation is putting tremendous pressure on the margins and profitability, compelling companies to increase prices in the domestic market, which are already struggling. GM India, Toyota Kirloskar, Audi, Mercedes and BMW have partially offset imports and this ward off increased costs due to a depreciating rupee. For others, the pressure is building.
Maruti and Hyundai betting on more exports to offset depreciating rupee
"We are feeling the impact of the depreciation as the costs of our imports have gone up. With the automobile industry in a slowdown, raising prices has an adverse impact on sales. So, we are carefully studying the situation and the impact on our bottom lines," said Jnaneswar Sen, senior VP (marketing and sales) at Honda Cars India.
For Toyota, which does not hedge currency and has multiple premium models, the level of localisation is much lower when compared to the mass market players like Maruti Suzuki and Hyundai Motor India.
According to Sandeep Singh, deputy MD and COO for marketing and commercial at Toyota Kirloskar Motor, with every single rupee of depreciation Toyota loses about Rs 80 crore annually.
"As part of our short-term measures, we are reducing various costs internally like fixed cost, capital expenditure and travel expenses etc. In the long run, an increase in localisation and more exports will help in countering the falling rupee. We are accelerating our localisation of components.
Plus, we are exploring exports to newer markets like Nepal, Bangladesh apart from South Africa," added Singh. Hyundai Motor India, the country's largest car exporter, says while the rupee might have depreciated 15-20% in the last six to eight months, it is not easy to establish a new market or even localise a specific component in such a short time-frame.
"It is important to note that developing a new market forms a part of a long-term strategy of the overall business plan and is not a knee-jerk reaction to the prevailing economic condition, either in India or elsewhere. As mentioned above, we are working on opening up new markets, but this will take time," said Rakesh Srivastava, vice president sales & marketing, Hyundai Motor India.
Hyundai on its part is eyeing newer markets such as Latin America, Africa etc and it is looking at increasing the share of exports to Africa to about 37%, added Srivastava.
Experts caution that while the rupee has depreciated by 20% against dollar since January 1, 2013, that does not mean an automaker can gain as much from the exports as currency in some of these emerging markets bases have also depreciated.
Brazilian real has depreciated by about 15% against dollar in the past eight months; Indonesian rupiah by 16.1% against dollar; the Mexican peso has declined by 3.1% against dollar; Thailand baht by 4.8% and Malaysian ringget by 7.1%.
The only currency amongst the emerging nations to have appreciated against dollar is the Chinese Renminbi. The same has appreciated by about 2% against dollar since January 1, 2013, till date. Srivastava fears that while the rupee depreciation has a limited advantage, in the short term, continuous depreciation will have a reverse impact on pricing in the export market and an adverse impact on the input costs which may lead to a further drop in already stagnating demand in the domestic market.
The impact on the non-Japanese companies seems much more as Japanese carmakers had accelerated the localisation plan few years ago due to depreciating yen. It is offering them a little bit of cushion.
Maruti Suzuki has already seen its import content reduce to 19% in FY14 as against 26% import it had two years back and the companies strategy to localise 2-3% of its balance imports continues under a very strict watch.
Source:- economictimes.indiatimes.com
Rising Exports To Us, Eu Clouded By Order Dip From Other Regions
2-Sep-2013
There is an upside to the falling rupee. Exports are up thanks to that and more orders from the US and the EU. But the party poopers could be the rising input costs and a fall in demand from Latin America, Asia and Africa.
The Commerce Ministry’s disaggregated export data for the first quarter of this fiscal reveal a small increase in dispatches to the US and the EU that account for a third of exports. However, exports to Latin America, and parts of Asia and Africa, that together also account for a third of the total orders, fell.
India’s exports grew 11.64-per cent in July after dipping for two months; the disaggregated numbers for the month becomes available only with a lag. Overall exports during the first quarter fell 1.64 per cent.
“Orders are certainly going up, especially from the EU and the US. But the bounce back in exports has been affected by a fall in demand in other important markets in Asia, North Africa, East Africa and Latin America,” a Commerce Ministry official told Business Line.
While six of India’s top 10 export items such as textiles and garments, drugs and pharmaceuticals and petroleum products posted a growth in the first quarter, other important sectors such as engineering goods, gems and jewellery and electronics, continued to fall. Engineering export, which was a top performer less than two years ago, has taken a hit due to a fall in demand from Africa. “Orders from Africa are now mostly going to China that offers credit for a much longer period and at lower rates than we do,” pointed out Anupam Shah from the Engineering Export Promotion Council.
Rising prices
Availability of high quality steel, too, is affecting the sector as international steel production has been stagnant and prices have been rising.
Apart from steel, rising prices of other inputs such as petroleum and chemicals will also affect exports, says Ajay Sahai from the Federation of Indian Export Organisations.
Source:- thehindubusinessline.com
No Bar On Second-Hand Capital Goods Import Under Project Import Regulations
2-Sep-2013
Can we import second-hand equipment under Project Import Regulations and, if so, what are the extra formalities? Can we use the Status Holder Incentive Scrip (SHIS) to pay duty on goods assessed under project imports at 98.01? What is the amount of bank guarantee to be furnished to the Customs and what are the guidelines for renewal of guarantee?
There is no bar on import of second-hand capital goods under the Project Import Regulations. For the purpose of valuation of second-hand capital goods, you have to follow the instructions, such as submission of Chartered Engineer Certificate, prescribed in CBEC Circular no. 4/2009-Cus dated 12.02.2008. You can use SHIS to pay duty even when assessment is done under the classification 98.01, provided other conditions are met. As per CBEC Circular no. 12/2011-Cus dated 1.3.2011, subject to a maximum of Rs 1 Crore, only a bank guarantee, equivalent to two per cent of the CIF value of goods sought to be imported, would be taken at the time of registration of the Project Contract under Project Import Regulations, 1986. The said bank guarantee shall be backed by an undertaking that it would be renewed from time to time. However, the said bank guarantee need not be renewed on completion of a period of six months from the date of submission of necessary documents, from the specified authority, as proof of utilisation/installation of goods for the finalisation of the contract.
While filing of Served from India Scheme (SFIS) application, can we submit the request of Group Company endorsement simultaneously, to avoid delay?
Yes. You can do so.
We send our partially processed inputs to a job-worker under Rule 4(5)(a) of Cenvat Credit Rules, 2004. We want to clear the scrap generated at the job-worker's factory on duty payment. We want to know the procedures and the value on which we have to pay duty on the scrap.
You may obtain the permission of your Assistant/Deputy Commissioner of Central Excise to clear the scrap on duty payment from the job-worker's factory, in accordance with Rule 4(6) of Cenvat Credit Rules, 2004. He may grant annual permission and specify any conditions, including manner of duty payment. After you send that permission to the job-worker, let the job-worker mention on the body of the original and duplicate of the challan under which he received your partially processed inputs and the reference number and date of the permission letter.
Thereafter, you may pay duty as specified in the permission and issue your excise invoice, mentioning the reference number and date of the permission letter and the name and address of the factory of the job-worker as the place of despatch. The duplicate of the invoice must accompany the goods from the job-worker's premises to the consignee. The value must be determined in accordance with Section 4 of the Central Excise Act, 1944 read with the Central Excise Valuation Rules, 2000. Please note that the duty liability must be discharged by you and not the job-worker.
Source:- business-standard.com
Onion Prices Likely To Drop In Two Weeks
PUNE: Onions, which continue to sell for over Rs 50 per kg in the retail market, could see a correction over the next fortnight. Traders expect wholesale rates to drop by at least 10 to 15 percent in the next 15-20 days. This is because the demand for the kitchen staple from southern states is dropping, leaving more stock for the local market. A major correction in prices, however, will only come in by mid-October.
According to wholesale traders, a fresh crop of onion grown in Karnataka is helping reduce the quantity of onions that Maharashtra is diverting to the southern states. According to the traders, the price effect of the surplus supply now available in the local market will be felt by mid-September.
"The onion crop in Maharashtra has so far catered to the demand from the southern states of Andhra Pradesh, Kerala, Karnataka and Tamil Nadu this year. This has not allowed prices to come down in the Pune market. But with Karnataka now ready with its own locally-grown supply of onions, the demand for the crop will now reduce," wholesale onion trader Ritesh Poman said.
According to Poman, some stock of the crop in Karnataka will also be reaching Maharashtra, which will help the state tide over time till mid-October, when the fresh crop from areas like Junnar, Khed, Ambegaon, Shirur, Sangamner and Nashik starts reaching the city. "We have received some supply already. More is expected to come in over the next few days," he said.
Sanjiv Khadke, administrator of the Agriculture Produce Marketing Committee said supply from Karnataka has helped bring down prices earlier as well. "The wholesale market operates simply on the forces of demand and supply. A few times when prices really shot-up in Pune, onion stocks brought in from other states had helped to stabilize the market," he said.
The wholesale market has seen a marginal correction in onion prices over the last couple of weeks, stabilizing on Monday at around Rs 45 per kg against the three-year high of Rs 55 per kg that it breached in mid-August. The rates continue to remain steep in the retail market, with shopkeepers continuing to demand not less than Rs 50 per kg, and even as high as Rs 70 for a kg in some areas.
Shivlal Bhosale, president of the Market Yard Commission Agents Association said retailers are not letting prices drop to make up for their losses. "Retailers usually account for spoilages and differences in the qualities of onions while fixing prices. There has been a drop over the last few days and we expect prices to fall even further in the next 15 days," he said.
Despite the drop, onion prices even now remain a far cry from their normal range, when they trade for as nominal as Rs 20 per kg in the retail market. Bulk traders also attribute the price trend to reduced exports, brought on by the poor supply. "With the onion produce this year being lower than usual, the government has pegged the export price at $650 for a tonne of onion to curtail the international demand and thus prevent a price-spiral in the country. Farmers are thus hiking their rates in the local market to make up for the loss in their earning," Poman said.
Source:- timesofindia.indiatimes.com
Indian Gold Eases To Rs. 32,660, Seen Falling Further
2-Sep-2013
Gold futures in India eased on Monday to their lowest in a week after hitting a record high last week, weighed down by weak overseas markets.
The most-traded gold for October delivery was 1% lower at 32,660 rupees ($490) per 10 gram at 11 33 GMT (17 03 IST) on the Multi Commodity Exchange (MCX). It had hit a record high of 35,074 rupees on Aug. 28.
Prices are likely to fall further. "This is due to the upcoming Fed meet where a possible tapering can be announced," said Gnansekar Thiagarajan, director with Commtrendz Research.
Many economists expect the Federal Reserve to decide whether to begin tapering its commodity-friendly stimulus measures this month. The central bank is scheduled to commence a two-day policy meeting on Sept. 17.
Overseas gold edged below $1,400 an ounce as a delay in possible US military action in Syria and improved economic data from China and Europe boosted the appetite for riskier assets, reducing its appeal as a safe haven.
The rupee, which weakened on Monday, kept the downside in prices limited. The local currency plays an important role in determining the landed cost of the dollar-quoted yellow metal.
In India, the world's biggest buyer of the metal, traders awaited guidelines from the customs department for supplies to resume after more than five weeks of halt.
Silver for September delivery on the MCX was 1.47 percent lower at 53,995 rupees per kg.
Source:- indianexpress.com
Rupee Breaches 66.50 Per Dollar
The Indian rupee slipped over 0.8 per cent on Tuesday to trade above the 66.50 mark against the U.S. dollar. The partially convertible rupee had closed at 66 per dollar on Monday.
The weakness in the rupee spilled into stock markets, with the BSE Sensex turning lower after a strong start. The Sensex had edged above the 19,000 levels in opening trade.
Stock markets have been gaining for the last four days, but analysts say rupee remains the key. The rupee is still within striking distance of the all-time low of 68.85 to the dollar struck on August 28.
Aggressive intervention by the Reserve Bank of India had helped lift the rupee off its low late last week. It has depreciated around 16 per cent since May, and has fared worse than other emerging market currencies that have been hit since the US Federal Reserve first hinted that it was considering tapering off its bond buying stimulus.
The BSE Sensex traded 20 points lower at 18,866 as of 09.20 a.m., while the Nifty dropped 12 points to 5,538. The rupee traded at 66.46 against the greenback.
Source:- profit.ndtv.com
Mere complaints for removal of Chairman or directors couldn't be deemed as oppression or mismanageme
CL : Complaints relating to removal of chairman and directorial complaints do not come under purview of oppression and mismanagement in affairs of company
ADs can be guarantors for NRIs acquiring shares or convertible debentures subject to counter-bank gu
FEMA/ILT : FEM (Guarantees) (Second Amendment) Regulations, 2013 - Amendment in Regulation 4
Effective dates for premature encashment of 8% taxable bonds will be Aug. 1 and Feb. 1 of each year,
IT : 8 Per Cent Savings (Taxable) Bonds, 2013 - Amendment in Notification No.F.4 (10)-W&M/2003, Dated 29-7-2013
RBI clarifies provisions relating to premature encashment of 8% Saving (Taxable) Bonds, 2003
IT : 8% Savings (Taxable) Bonds, 2003 - Premature Encashment
Powers of Director expanded under FEMA; can release or confiscate property on conclusion of criminal
MONEY LAUNDERING : Section 49 of Prevention of Money-Laundering Act, 2002 - Appointment and Power of Authorities and Other Officers - Notified Officer - Amendment in Notification No. GSR 441(E), Dated 1-7-2005
Director can call for any records or additional info from Banking Cos and FIs as per requirement
MONEY LAUNDERING : Section 49 of Prevention of Money-Laundering Act, 2002 - Appointment and Power of Authorities and Other Officers - Notified Officer -Amendment in Notification No.GSR 440(E), Dated 1-7-2005
ADs can be guarantors for NRIs acquiring shares or convertible debentures subject to counter
FEMA/ILT : FEM (Guarantees) (Second Amendment) Regulations, 2013 - Amendment in Regulation 4
Transaction for relevant year held at ALP as no TP adjustment was made to price declared in succeedi
IT/ILT: Where no adjustments were made to arm's length price of assessee for immediately succeeding year, transaction in current year was also to be taken at arm's length
Re-fixing sale value of shares by notional means isn't permitted for computation of business income
IT : Where assessee sold shares at discounted price, Assessing Officer was not correct in ignoring sale of shares at loss while considering allotment of shares at a premium
Notification No.2/ 2013-Customs (SG) dated 29-08-2013
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 02 / 2013-Customs (SG)
New Delhi, the 29th August, 2013
G.S.R. (E). - Whereas, in the matter of import of Hot Rolled Flat Products of Stainless Steel-304 grade classified within Chapter 72 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act), the Director General (Safeguard), in its preliminary findings published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 714(E), dated the 24th September, 2012 and subsequent Corrigendum vide G.S.R. 825(E) dated 12th November, 2012 and Corrigendum-2 vide G.S.R. 841 (E) dated 23rd November, 2012 had come to the conclusion that increased imports of Hot Rolled Flat Products of Stainless Steel - 304 grade (upto a maximum width of 1605 mm) and encompassing all austenitic grades having minimum Nickel (Ni) content of six per cent., compulsorily containing Chromium with or without the presence of other alloying elements like Molybdenum, Titanium etc., (hereinafter referred to as the subject goods) falling under sub-headings 72191111, 72191112, 72191190, 72191200, 72191300, 72191400, 72192111, 72192112, 72192121, 72192122, 72192131, 72192132,72192141, 72192142, 72192190, 72192211, 72192212, 72192219, 72192291, 72192292, 72192299, 72192310, 72192320, 72192390, 72192411, 72192412, 72192413, 72192419, 72192421, 72192422, 72192423, 72192429, 72192490, 72201110, 72201121, 72201122, 72201129, 72201190, 72201210, 72201221, 72201222, 72201229, 72201290 of the First Schedule to the Customs Tariff Act (hereinafter referred to as said sub-headings), into India had caused and threatened to cause market disruption to the domestic industry comprising producers of the subject goods thereby necessitating the imposition of provisional safeguard duty on imports of the subject goods from the People’s Republic of China into India;
And whereas, on the basis of the aforesaid findings of the Director General (Safeguard), the Central Government had imposed provisional safeguard duty on imports of the subject goods from People’s Republic of China into India for a period of 200 days from 4th January, 2013 vide notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 1/2013-Customs (SG), dated the 4th January, 2013 , published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R.15 (E), dated the 4th January, 2013;
And whereas, the Director General (Safeguard) in its final findings vide number G.S.R. 338(E), dated the 25th May, 2013 and subsequent Corrigendum vide G.S.R. 346(E) dated 30th May, 2013, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), recommended final duty at the rate of twenty per cent on Hot Rolled Flat Products of Stainless Steel - 304 grade (upto a width of 1625 mm), falling under said subheadings, for the period of 200 days starting from 4th January, 2013 to 22nd July, 2013 (both days inclusive);
Now, therefore, in exercise of the powers conferred by sub-section (1) of section 8C of the Customs Tariff Act, read with rules 12 and 14 of the Customs Tariff (Transitional Product Specific Safeguard Duty) Rules, 2002, the Central Government after considering the said final findings of the Director General (Safeguard), hereby imposes final safeguard duty at the rate of twenty per cent ad valorem on all imports of Hot Rolled Flat Products of Stainless Steel -304 grade (upto a maximum width of 1605 mm), falling under the said subheadings, from the People’s Republic of China, for the period of 200 days starting from the 4th January, 2013 to 22nd July, 2013 (both days inclusive).
[F No. 354/158/2012-TRU-Part I]
(Akshay Joshi)
Under Secretary to the Government of India
Customs Notification No. 19/2013-Customs (ADD) dated 29-08-2013
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 19/ 2013-Customs (ADD)
New Delhi, the 29th August, 2013
G.S.R. (E). -Whereas, the designated authority vide notification F. No. 15/10/2013-DGAD, dated the 18th July, 2013, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 18th July, 2013, had initiated review in terms of sub-section (5) of section 9A of the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the said Customs Tariff Act) and in pursuance of rule 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 (hereinafter referred to as the said rules), in the matter of continuation of anti-dumping duty on imports of Digital Versatile Discs-Recordable (DVD-R and DVD-RW) originating in or exported from China PR, Hong Kong and Chinese Taipei, imposed vide notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 8/2009-Customs, dated the 22nd January, 2009 , published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 47(E), dated the 22nd January, 2009, and had recommended for extension of anti-dumping duty, in terms of sub-section (5) of section 9A of the said Customs Tariff Act;
Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the said Customs Tariff Act and in pursuance of rule 23 of the said rules, the Central Government hereby makes the following amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 8/2009-Customs, dated the 22nd January, 2009 , published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 47(E), dated the 22nd January, 2009, namely: -
In the said notification, after paragraph 2, the following shall be inserted, namely: -
“3. Notwithstanding anything contained hereinabove, this notification shall remain in force up to and inclusive of the 22nd day of July, 2014.”.
[F.No.354/111/2008-TRU]
(Akshay Joshi)
Under Secretary to the Government of India
Note.- The principal notification No. 8/2009-Customs, dated the 22nd January, 2009 , was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 47(E), dated the 22nd January, 2009.
Customs Notification No 90/2013 (NT) dated 29-08-2013
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 90 / 2013-Customs (N.T.)
New Delhi Dated the 29th August, 2013
G.S.R. - In exercise of the powers conferred by clause (a) of section 81 of the Customs Act, 1962, the Central Board of Excise and Customs hereby makes the following regulations, namely:—
- Short title. - These regulations may be called the Customs Baggage Declaration Regulations, 2013.
- Extent of application. - These regulations shall apply to baggage including any package comprised therein of the passengers coming to India. These regulations will come into effect w. e. f. 1st January, 2014.
- Method of Declaration of Baggage. - All passengers who come to India shall declare their accompanied baggage in Form I appended to this regulation.
[F. No. 520/13/2013-Cus.VI]
(S.C. Ganger)
Under Secretary to the Government of India
Transport charges recovered on actual basis aren't liable to ST under Cargo Handing Services
ST : If assessee has raised bill for transportation separately on actual basis, tax cannot, prima facie, be levied thereon under Cargo Handling Services
AO can deviate from his belief of no TDS liability; ITAT affirms but allows immunity in first year
IT: When assessee and revenue, both had proceeded for almost a decade on footing that section 194J was not attracted on certain payments, assessee-payers could not be made liable to disallowance under section 40(a)(ia) in its respect, for first time when said payments were found liable for TDS
Hathway Investments Pvt. Ltd vs. ACIT (ITAT Mumbai)
S. 32: A finance lease designed as a sale-and-lease back has to be treated as a sham transaction
The intention of the parties was not that of sale or lease but was a loan transaction. The rates of interest/ rental have been fixed taking into consideration that the equipments are eligible for 100% depreciation and it is provided that if the claim of depreciation is changed, the rental in the shape of interest will accordingly change. Such clauses cannot be a part of any lease agreement but finance agreement only because in a normal lease agreement, the lessee is not concerned as to what benefits are available to the owner/ lessor under the Income-tax Act. The contention that as the transaction is with a State Government undertaking, it would be highly improper to impute any collusiveness or colourable nature of the transaction is misconceived. The argument that there is no bar for the assessee for making tax planning so as to reduce its taxes, provided it is within the framework of the law, is also not acceptable as u/s 23 of the Indian Contract Act, even if the consideration or object of an agreement may not be expressly forbidden by law, but if it is of such a nature that, if permitted, it would defeat the provisions of law, the same will not be lawful. Engaging in sham transactions with the object of reducing tax liability cannot be said to be a case of tax avoidance but is one of tax evasion (ICDS 350 ITR 527 (SC), IndusInd Bank 135 ITD 165 (Mum)(SB) & Development Credit Bank referred) |
To associate an Official Liquidator with sale conducted by secured creditor under SARFAESI Act not m
Official Liquidator is not required to be associated with sale conducted by secured creditor in exercise of powers under section 13(4) of SARFAESI Act
COMMISSIONER OF INCOME TAX Vs. M/S PRAKASH TUBES LIMITED
ITA No. 52/2000 Page 1 of 5
$~Part II-B (R-23)
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ INCOME TAX APPEAL NO. 52/2000
Date of decision: 21st August, 2013
COMMISSIONER OF INCOME TAX
..... Appellant
Through Mr. Abhishek Maratha, Sr. Standing
Counsel.
Versus
M/S PRAKASH TUBES LIMITED
..... Respondent
Through Mr. Prakash Kumar, Advocate.
CORAM:
HON'BLE MR. JUSTICE SANJIV KHANNA
HON'BLE MR. JUSTICE SANJEEV SACHDEVA
SANJIV KHANNA, J. (ORAL):
This appeal by the Revenue under Section 260A of the Income
Tax Act, 1961(Act, for short) relates to Assessment Year 1989-90.
The following substantial question of law was admitted for hearing
vide order dated 30th November, 2000:-
“Whether the Tribunal has correctly interpreted
the provisions of Section 115-J so far as mode ITA No. 52/2000 Page 2 of 5
of computation of income is concerned?”
2. The respondent-assessee is a limited company and for the year
under consideration it has filed its return declaring income of
Rs.91,25,683/- under Section 115-J of the Act. The assessee, however,
had claimed that it was entitled to carry forward its loses including
investment allowance of Rs.2,19,04,511/- as its taxable income was
being assessed on the basis of book profits under Section 115-J and not
under the normal provisions.
3. The Assessing Officer did not agree, observing that the
computation of income under Section 115-J of the Act does not effect
the determination of the amount to be carried forward to the
subsequent year under the normal provisions. The Assessing Officer
also made other additions while assessing the taxable income under the
normal provisions.
4. Commissioner of Income Tax (Appeals) agreed with the
Assessing Officer on the question of carry forward of loses, including
investment allowance. He, however, allowed some relief to the
respondent-assessee on additions made under the normal provisions.
5. Aggrieved, the respondent-assessee preferred an appeal before
the tribunal. No appeal was preferred by the appellant-Revenue
against the order passed by the CIT(Appeals).
6. Income Tax Appellate Tribunal by the impugned order dated ITA No. 52/2000 Page 3 of 5
16th August, 1999 followed its earlier order for the preceding year
1988-89, which in effect means that the appeal filed by the respondentassessee was allowed. In other words, the stand of the respondentassessee that they were entitled to carry forward of unabsorbed losses,
including investment allowance was accepted in view of the fact that
income taxable had been computed on book profits under Section 115-
J and not under the normal provisions.
7. The aforesaid view of the tribunal is not in consonance with the
authoritative pronouncement of the Supreme Court in Karnataka
Small Scale Industries Development Corporation Limited versus
Commissioner of Income Tax, 2002 (258) ITR 770 (SC) wherein the
contours of Section 115-J and the normal provisions have been
explained. It has been held that Section 115-J (1) commences with the
non-obstante clause and provides for two stage assessment. The first
stage requires computation of income under the normal provisions and
the second stage requires computation of book profits as per provisions
of Section 115-J. In case the income computed under the normal
provisions is less than 30% of the book profits, then the assessee’s
deemed total income chargeable to tax for the relevant previous year
would be equal to 30% of the book profits. At the first stage, profits
are computed under the normal provisions and deductions allowable
under the Act have to be taken into consideration. The
Sum paid for hiring of truck without TDS shall be allowable even on submission of Forms 15-I and 15J
IT: Where assessee, a transport contractor, engaged outside trucks and made payment towards hire charges without deduction of tax at source, though assessee submitted Form Nos. 15-I and 15J to Commissioner belatedly, due credit be given to claim of assessee in terms of said forms
Sum paid for hiring of truck without TDS shall be allowable even on submission of Froms 15-I and 15J
IT: Where assessee, a transport contractor, engaged outside trucks and made payment towards hire charges without deduction of tax at source, though assessee submitted Form Nos. 15-I and 15J to Commissioner belatedly, due credit be given to claim of assessee in terms of said forms
Assessee screwed for being revenue friendly; credit not allowed of taxes paid on services not liable
ST/ ECJ : If tax is wrongly paid on any input services, which were not liable to service tax, assessee cannot avail credit of such wrongly paid tax
Two lines of business operating under single control and management would be treated as same busines
IT: Where assessee, engaged in business of trading in investments, executed film production contracts for first time during relevant year, it was to be held as same business due to unity of control and management, and therefore, consultancy fees paid for film production could not be disallowed
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