Notification No. FEMA. 286/2013-RB dated 05-09-2013

RESERVE BANK OF INDIA

FOREIGN EXCHANGE DEPARTMENT

CENTRAL OFFICE

MUMBAI-400 001

Notification No. FEMA. 286/2013-RB

Dated : September 05, 2013

Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) (Fourth Amendment) Regulations, 2013

In exercise of the powers conferred by Clause (d) of sub-section (3) of Section 6 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank hereby makes the following amendments in the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, (Notification No. FEMA 3/RB-2000 dated May 3, 2000 ), namely:-

1. Short Title & Commencement

(i) These Regulations may be called the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) (Fourth Amendment) Regulations, 2013.

(ii) They shall come into force from the date of their publication in the Official Gazette.

2. Amendment of Regulation 4

In the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 (Notification No. FEMA 3/2000-RB dated May 3, 2000 ), in Regulation 4, in sub-regulation (2), in clause (i), for the words "fifty percent", the words "hundred percent or such other limit as decided by the Reserve Bank, from time to time" shall be substituted.

(Rudra Narayan Kar)

Chief General Manager–in-Charge

Foot Note:

The Principal Regulations were published in the Official Gazette vide No. G.S.R. No.386 (E) dated May 5, 2000 in Part II, Section 3, sub-section (i) and subsequently amended vide:

1. No. G.S.R.674 (E) dated August 25,2000
   


2. No. G.S.R.476 (E) dated July 8,2002
   


3. No. G.S.R.854 (E) dated December 31,2002
   


4. No. G.S.R.531 (E) dated July 9,2003
   


5. No. G.S.R.533 (E) dated July 9,2003
   


6. No. G.S.R.208 (E) dated March 23,2004
   


7. No. G.S.R.825 (E) dated December 22,2004
   


8. No. G.S.R.60 (E) dated February 9,2005
   


9. No. G.S.R.739 (E) dated December 22,2005
   


10. No. G.S.R.663 (E) dated October 16,2007
    


11. No. G.S.R.61 (E) dated January 30,2009
    


12. No. G.S.R.547(E) dated July 24, 2009
    


13. No. G.S.R. 836(E) dated November 23, 2009
    


14. No. G.S.R.No.610 (E) dated August 03, 2012
    


15. No. G.S.R.No.832(E) dated November 17, 2012
    


16. No. G.S.R.No.886 (E) dated December 11, 2012
    


17. No. G.S.R. No.916 (E) dated December 21, 2012
    


18. No. G.S.R. No.125(E) dated February 26, 2013
    


19. No. G.S.R. No.384(E) dated June 20, 2013.
    


20. No. G.S.R. No.______ dated ___________
    

Revision of order allowed as AO disallowed a claim in prior years but allowed it in later years with

IT : Where Assessing Officer disallowed depreciation on goodwill for earlier years but allowed same for current assessment year and for subsequent years, Commissioner rightly assumed jurisdiction under section 263 on premise that order was erroneous and had deprived revenue of certain amount of taxes

'Reserve for doubtful debts' for standard assets isn't akin to 'provision for doubtful debts'; no de

IT: Amount credited by bank to reserve for bad and doubtful debts towards standard assets is not deductible under section 36(1)(viia), as it is not a provision for bad and doubtful debts

Catering services for staff and car travel services for official visits are eligible input services

ST : A manufacturer is eligible for input service credit of : (1) construction services for maintenance and repair of factory premises, (2) travel and car services used by staff for official visits and (3) catering services for supply of food to staff where entire cost of catering was borne by assessee

CIT(A) to assign reasons to uphold comparables as 'functionally different'; matter remanded in their

IT/ILT: Where Commissioner (Appeals) did not explain why comparables selected by assessee were functionally different, matter need fresh adjudication

State Bank of India vs. DCIT (ITAT Mumbai)

S. 32: Lease transactions by Banks are in the nature of loans/ advances. Transaction of sale & lease back of railway assets cannot be treated as genuine The assessee, a Bank, entered into a sale and lease back transaction with Konkan Railway Corporation pursuant to which it bought assets like railway tracks, rails, sleepers etc for a consideration of Rs. 25 crore and leased it back for a period of 84 months for a monthly lease rental. The AO & CIT(A) disallowed the claim for depreciation on the ground that the sale and lease back transaction was in the nature of a financial transaction and that it was given the shape of a lease transaction only in order to enable the assessee-bank to claim depreciation and reduce its taxable income. On appeal by the assessee to the Tribunal HELD dismissing the appeal: The real object of the entering into the sale and lease back transaction so far as Konkan Railway is concerned is to raise funds. The transaction of sale of the asset to the assessee bank and its lease back to Konkan Railway cannot be separated. It was not possible for Konkan Railway to sell out the railway system. Thus, the sale transaction was merely on paper and to facilitate the financial arrangement by the assessee to Konkan Railway without involving any real intention of transfer of the assets. The terms of the lease agreement are only to secure the interest of the bank till the recovery of the full amount along with the interest. The assessee cannot exercise the real and actual ownership over the asset keeping in view the facts and circumstances and nature of the asset in question. Further, under the Banking Regulation Act, 1949 read with RBI circular dated 19.2.1994, banking companies can undertake the activities of equipment leasing but these are required to be treated on par with loans and advances. Therefore, the activity of equipment leasing permitted by the RBI is only in the nature of finance lease. The terms and conditions specified by the RBI for income recognition of lease transactions are also on par with the manner in which a loan transaction is treated. In view of the said circular, there is no scope for treating the instant lease agreement as that of an operating lease (IndusInd Bank 135 ITD 165 (Mum) (SB) followed; ICDS 350 ITR 527 (SC) distinguished on the basis that the lease there was not by a Bank but by a NBFC).

Execution of irrevocable power of attorney of a property in favour of land developers deemed as 'tra

IT: Where an irrevocable power of attorney was executed and registered by a housing society, leading to overall control of property in hands of developer, it constituted transfer under section 2(47)

House Panel Mulls Iron Ore Exports Ban From India

A parliamentary standing committee on coal and steel has recommended either a complete ban on iron ore exports or hiking the export duty high enough to minimize outflow of the precious raw material.



It expressed anguish more than one third (36.9%) of the total iron ore produced in the country was exported during 2011 to 2012. Despite the Planning Commission warning that the iron ore reserves in the country may not be sufficient to meet the domestic steel industry's demand beyond 25 years, an export of 486 million tonnes of the raw material worth INR 1.85 lakh crore during the 11th Plan is baffling.



The panel headed by Trinamool member of Parliament Kalyan Banerjee disapproved the iron ore export policy of the government and noted that even imposition of higher export duty was no solution for the long-term conservation of the ore required by steel industries in the country. It also disapproved the decision to reduce export duty on pallets to zero.



It said that imposition of higher export duty on iron ore fines and non-exemption of pellets from export duty will give an impetus to set up pelletisation plants in the country by stand-alone miners. Setting up of more pelletisation plants will also generate employment opportunities and will also generate more revenue in terms of value added products.



Source:- steelguru.com

Indian Buyers Ditch Indonesian Coal Orders On Rupee Slump

10-Sep-2013

Jakarta: Indian buyers have reduced shipments from top thermal coal exporter Indonesia and are seeking to renegotiate contracts as a sharply lower rupee has driven up their import costs, Indonesian industry executives said on Tuesday. The fall in purchases from India is forcing Indonesian suppliers to seek other buyers or dump cargoes into the spot market, putting more pressure on international benchmark prices that are already near their lowest in four years. India buys about a fifth of Indonesia’s exports of coal, which is traded internationally in U.S. dollars.



Southeast Asia’s biggest economy aims to ship about 317 million tonnes of its expected output of around 400 million tonnes this year, according to government and industry sources. Reuters Reuters Several Indonesian companies have scrambled to find new buyers on the spot market after deals with Indian buyers fell through, the Indonesian Coal Mining Association (ICMA) said. “Some buyers have cancelled contracts or sought to renegotiate contracts, because now it’s actually cheaper for them than fulfilling their obligations,” ICMA commercial committee chairman Pandu Sjahrir told Reuters.



“Sellers have been dumping into the market. They have to choose – should I take (buyers) to court or renegotiate with them or just sell it in the spot market?” The ICMA official did not give the volumes impacted by the Indian buyers’ moves and those could not be immediately ascertained by Reuters. The rupee has lost 18 percent against the dollar since May and the country is going through its worst economic slump in 20 years.



Energy imports are among the top contributors to India’s growing current account deficit. India’s power producers depend on coal imports to supply more than half of the country’s domestic power needs. The slide in Indian imports could help to narrow the gap between Indonesian coal prices and other regional coal indexes which have fallen faster under the weight of a global oversupply situation. LISTED FIRMS IMPACTED Sjahrir said several of the firms affected were publicly listed companies, declining to name them because of the sensitivity of the matter.



Indonesia’s publicly listed coal companies export between 2 million and 7 million tonnes of coal a year each, he said, adding that the increase in spot market supply had weakened prices for the past two-three weeks. Listed Indonesian coal mining companies that export coal to India include Bumi Resources , Adaro Energy , Indo Tambangraya Megah (Banpu Indonesia) and state-owned Bukit Asam . Indonesia ships around $2 billion worth of coal a month, one of its largest exports by value.



A drop in exports would exacerbate Indonesia’s own current account deficit, which is already a concern for investors as it fights a weakening rupiah, rising inflation and the exit of foreign capital. “Deals are still being done,” said Ben Lawson, chief development officer at Indonesian coal producer Apple Coal, referring to Indian purchases of Indonesian coal. “(But) many contracts are being renegotiated or delayed.” INDIA’S POWER SHORTAGES The changing value of the rupee meant Indian buyers would now be forced to import lower quality coal from Indonesia than they were buying before, said Singapore-based Zenny Tran, coal team leader at Ginga Petroleum.



A fall in imports for India could exacerbate the country’s power shortages. “It is unlikely that Indian power companies can continue to pay for Indonesian coal at today’s prices without causing themselves serious financial harm,” said Roleva Energy coal analyst Bart Lucarelli. “Power shortages are a way of life in India and I think we will see more of them over the next year.” Last year, 670 million people in the northern, eastern and northwestern parts of the country had no power for two days, the biggest outage in the world, as a few states drew excess power from the national grid causing it to snap. China’s appetite for Indonesian coal has also subsided as domestic producers slash prices to gain market share.



China’s spot coal prices are down 14 percent this year and 9.3 percent since June, hitting a four-year low of 546 yuan per tonne last week. Indonesian coal exporters have seen revenues plummet with international prices, and asked the government on Monday to help them by delaying plans to hike royalty and tax on coal output. The Indian rupee rose to a two-week high at 64.15 in early trade, versus its Friday close of 65.24/25. The rupiah dropped almost 3 percent on Tuesday, hitting a near four-and-a-half-year low with spot indicative rupiah reaching 11,490 per dollar, its lowest since April 2009.

Source:- firstpost.com

India To Continue Importing Iranian Oil Despite Us-Led Sanctions

10-Sep-2013

India’s Minister of Petroleum and Natural Gas M. Veerappa Moily says his country will continue to import crude oil from Iran despite illegal US-engineered embargoes against the Islamic Republic's oil and financial sectors.





"As far as Iran is concerned, there are a lot of constraints, but at the same time, within the constraints, we are importing the oil from Iran,” he told reporters after a meeting with Japanese oil ministry officials in Tokyo on Monday.



In a letter to Indian Prime Minister Manmohan Singh on August 30, Moily wrote that crude oil imports from Iran will save his India over USD 8.5 billion in hard currency.



“An additional import of 11 million tons during 2013-14 would result in reduction in forex outflow by USD 8.47 billion,” the Indian oil minister said.



India’s oil shipments from Iran are estimated to rise to 4 million tons in the current fiscal year.



India is among Asia’s major importers of energy and relies on the Islamic Republic of Iran to meet a portion of its energy demands.



Iranian Oil Minister Bijan Namdar Zanganeh said on September 1 that there are appropriate grounds for further cooperation between Iran and India in the oil and gas sector.



At the beginning of 2012, the United States and the European Union imposed new sanctions on Iran’s oil and financial sectors with the goal of preventing other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.



In June this year, India won a 180-day waiver from US sanctions targeting oil trade with Iran.



India’s crude oil imports from Iran increased by 21.1 percent in June 2013 compared to a year earlier.

Source:- presstv.ir

Japan And India To Push For Better Lng Pricing

10-Sep-2013

Japan and India said they were planning a liquefied natural gas importers' group as a way to reduce the Asian price and diversify their import sources.



LNG prices in Asia are higher than those in Europe and North America because the cost in Asia is linked to crude oil prices under long-term contracts.



In their joint statement Monday ahead of the second LNG Producer-Consumer Conference in Tokyo the next day, Toshimitsu Motegi, Japan's minister of Economy, Trade and Industry, and M. Veerappa Moily, India's minister for Petroleum and Natural Gas, said oil-linked prices for LNG do not "accurately reflect the LNG supply and demand balance" in Asia-Pacific markets, the Financial Post reports.



Government and private-sector officials from about 50 economies attended the one-day conference.



Data from the U.S. Federal Energy Regulatory Commission indicate Asian LNG importers such as Japan and China paid as much as $15.75 per million British thermal units this month, compared with $2.97 paid by LNG buyers in the U.S. Gulf Coast and $9.79 by British consumers.



Contracts linked to the Henry Hub price benchmark, however, would revolutionize the Japanese market, even if oil-linked contracts continue to dominate the global LNG market, Platts news service quoted Freeport LNG chief executive Michael Smith as saying on the sidelines of the conference.



Freeport, one of three U.S. Gulf Coast export projects looking to tap into Asian demand, announced Monday that Japan's Toshiba Corp. and SK E&S LNG of South Korea had each contracted to liquefy 2.2 million tons of natural gas per year at Freeport's Quintana Island facility in Texas.



The U.S. Energy Department in May gave Freeport LNG conditional approval to export 1.4 billion cubic feet of natural gas per day over the next 20 years.



"Our [Japanese] customers -- Osaka Gas, Chubu Electric and now Toshiba -- all are focused on getting U.S.-based natural gas here on a Henry Hub-linked basis, because that's the cheapest gas they can get in the world," Smith said.



"Post-Fukushima, their increasing LNG volumes on top of the very high oil-linked cost is severely hurting their economy," Smith said of Japan's appetite for LNG after the March 2011 earthquake- and tsunami-triggered nuclear plant disaster. "They must drive down the price, and we're happy to be the ones to facilitate that."



Japan, the largest LNG importer in the world, spent $60 billion on LNG imports in 2012. That figure is expected to rise to $72.1 billion this year. Japan's Nuclear Regulation Authority is reviewing applications from utilities to operate about a dozen of the country's 50 reactors, shut down in the wake of Fukushima.



India is the fifth-largest importer of LNG after Japan, South Korea, the United Kingdom and Spain. Moily has said he expects India's LNG demand to grow at 2-6 percent a year until 2020 and 2-3 percent thereafter.

Source:- upi.com

Tata Motors Jumps On Partnership With Drb-Hicom

10-Sep-2013

Tata Motors, India's largest automobile company, jumped on Tuesday after it entered into a partnership with Malaysia's DRB-HICOM for import, distribution and assembly of its commercial vehicles in the country as part of ongoing global footprint expansion.



As part of the pact, the company has signed a distribution agreement and technology license agreement with USF-HICOM (Malaysia) Sdn Bhd, a subsidiary of DRB-HICOM Berhad, Tata Motors said in a statement.The companyowned Jaguar Land Rover (JLR) last month sold 27,852 vehicles, its best ever August sales performance with an increase of 28% versus the same period last year.



During the first eight months of the year, Jaguar Land Rover sold 269,653 vehicles, up 16%. Shares ofthe companyare trading at Rs 342, up Rs 24.2, or 7.61% at the Bombay Stock Exchange (BSE) on Tuesday at 11:02 a.m.



The scrip has touched an intra-day high of Rs 343.15 and low of Rs 320.10. The total volume of shares traded at the BSE is 589,868.In the earlier session, the shares gained 0.36%, or Rs 1.15, at Rs 317.80. Currently, the stock is trading all time 52-week high, which is above 43.1% over the 52-week low of Rs 239.00.



Share Price Movement Period Pricein Rs Gain/(Loss) in Rs in % 1 Week 296.90 (9.75) (3.28) 1 Month 290.80 (3.65) (1.26) 3 Months 270.40 16.75 6.19 6 Months 306.70 (19.55) (6.37) 1 Year 247.00 40.15 16.26 Note: Based on previous day closing price.

Source:- newindianexpress.com

HC extends limitation period for distribution of dividend as applicant was old and illiterate

CL : Time for distribution of dividend under section 555 was extended keeping in view that applicant was old and illiterate and was resident of Hubli

Trade Deficit Narrows To $10.9 Billion As Exports Surge

NEW DELHI: India's trade deficit narrowed to a five-month low in August, as merchandise exports clocked double digit growth for the second consecutive month and imports declined, offering a glimmer of hope for the battered rupee.



The narrowing of the trade deficit sparked further appreciation of the rupee, and stock indices built on already strong gains before the data was released on Tuesday.



Exports grew by 13% in August from a year ago while imports fell 0.68%, yielding a trade deficit of $10.9 billon, down marginally from $12.2 billion in July and $14.1 billion in August last year, data released by the ministry of commerce and industry showed.



Trade deficit narrows to $10.9 billion as exports surge



"Exports are on a firm positive terrain now and I remain optimistic about them remaining positive", commerce and industry minister Anand Sharma said. "Our imports are also down and we are closing the big gap in our trade account."



Exports were at a five-month high in value terms at $26.1 billion against $25.8 billion in July. All sectors that have a significant share in exports showed positive growth, barring that of jewellery. Gold imports declined by 70% to $0.65 billion in August compared with $2.2 billion a month ago.



"Gold imports are coming down, but it will not impact the jewellery sector," Sharma said. The moderation in trade deficit will help lower the current account deficit, which touched a record 4.8% of GDP last year, triggering a massive depreciation of the rupee.



The Reserve Bank and the finance ministry have taken a series of measures to curtail gold imports, which will help narrow the current account deficit. Finance Minister P Chidambaram aims to reduce CAD to 3.7% of GDP, or $70 billion. "The continued comfort on trade balance bodes well for CAD, which is likely to see a significant correction in Q2FY14," said YES BankBSE -1.86 % chief economist Shubhada Rao.



Rao expects gold imports to be muted because of existing restrictions, but sees some pick up in demand due to the expected increase in farm output and festival season buying. Crude oil imports grew in value terms on account of high increase in global crude oil prices.



Oil imports rose to $15.09 billion in August, registering an 18% year-on-year growth, compared with a de-growth of 8.7% in the previous month. Sharma, however, felt the rupee depreciation did not have a significant role in the exports pick-up.



"Forty five percent of exports have imported contents. I don't think weak rupee has any impact on positive export results," he said. In the five months to August, exports were up 3.89% at $124.4billion. Trade deficit during the period declined to $73.36 billion compared with $74.67 billion in April-August 2012-13.



Agriculture exports was a big contributor to the overall high export growth, with rice exports rising 43.41% and marine products increasing by about 40%. To further curb imports, the government is looking at imposing duties on non-essentials imports.



Industry has sought cheaper credit to sustain the momentum and suggested that exports be brought under priority sector lending.

Source:- economictimes.indiatimes.com

India's Gold Imports Slump In August

11-Sep-2013

India's imports of gold in August fell to less than a 10th of what it bought a year earlier, as higher import tax and a weaker rupee currency drove up local prices to a near record and tighter rules made imports tougher.



But demand is expected to pick up over the next two months because of the festival season, industry executives said.



India imported three metric tons of gold in the past month, compared with 35 tons a year earlier. The drop was even more dramatic compared with April, when imports totaled 142 tons as buyers rushed to take advantage of a fall in gold prices to a two-year low.



India imported three tons of gold in August, compared with 35 tons a year earlier and 142 tons in April, when prices dropped to a two-year low.



India imports nearly all the gold it consumes. The outflow of dollars spent on gold was one of the main reasons for India's wide trade and current-account deficits, one of the biggest worries for investors to dump Indian assets, pushing the rupee to successive new lows against the dollar in recent weeks. The rupee is down about 16% against the dollar since early May.



The government is likely to find the latest data encouraging. The value of gold imports fell to $650 million in August from $2.20 billion in July, helping India's trade deficit to narrow to $10.9 billion from $12.27 billion, government data showed Tuesday.



Local authorities have been trying to curb demand for the metal, with Finance Minister Palaniappan Chidambaram publicly urging people to curb their gold purchases.



India raised the import tax on gold to 10% from 8% in August—the fifth increase since January 2012. Besides, the Reserve Bank of India in July asked banks and dealers who import the metal to ensure that 20% of imports were re-exported.



Banks and state-run trading agencies had halted gold imports because of a lack of clarity over the changes in rules, but are now expected to resume purchases as detailed guidelines have been issued recently.



"We do believe that demand will be high during the festival season," said P.R. Somasunderam, managing director of the World Gold Council's India office.



However, a repeat of the rush in demand seen in mid-April is unlikely, he said, as prices are higher compared with the April levels.



"The festival season is ahead and there should be good demand," said Harmesh Arora, a spokesman for the Bombay Bullion Association, one of the largest gold-industry associations in India. "I hope the price stabilizes."



There were some signs of that Tuesday with the price of gold in the local market falling to 31,000 rupees per 10 grams from 34,000 rupees on Aug. 28, when the rupee hit a record low of 68.80 to the dollar. The rupee has since risen to end local spot trading at 63.84 Tuesday.



International gold prices also softened and were 0.8% lower Tuesday at $1,375.10 a troy ounce.



According to Mr. Arora, even if the prices were high, Indian consumers would buy some quantities of gold as they consider it auspicious during the festivals.



"You cannot stop the minimum demand," he said, adding that imports through the year were likely to be around 900 tons.



Imports totaled 859.7 tons in 2012.



Demand from rural India is expected to be strong this year. This is because India is expecting a bumper harvest of summer-sown crops such as rice, oilseeds, sugar and cotton that should boost rural income and spending on gold—the popular mode of savings for farmers.



Meanwhile, the local market has seen a turnabout as lots of people have been selling stashes gold jewelry since late-August with the drop in rupee's value pushing up Indian gold prices

Source:- online.wsj.com

[Indian Custom Order] : Appointment of Common Adjudicating Authority

F.No.437/26/2013-Cus-IV

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

North Block New Delhi,

Dated 5th September, 2013

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice DRI F.No.64/KOL/APP/2011/158 dated 11.01.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Kolkata Zonal Unit, Kolkata in the case of M/s C & C Construction Ltd, Plot No. 70, Institutional Sector, Gurgaon-122001 to the Commissioner of Customs (Port), Kolkata for the purpose of adjudication.

(M.V. Vasudevan)

Under Secretary to the Government of India

Copy to:-

1. The Additional Director General, DRI, Kolkata Zonal Unit, 8, Ho Chi-Minh Sarani,

Kolkata-700071.

2 The Commissioner of Customs (Port), Kolkata, 15/1 Strand Road, Custom House,

Kolkata-700001.

3. The Commissioner of Custom (Export), Mumbai, New Custom House, Mumbai.

4. Webmaster.cbec@icegate.gov.in

Indian Rupee Up 140 Paise At 63.84 Vs Us Dollar As Syria Strike Fears Fade

10-Sep-2013

The Indian rupee on Tuesday closed above the 64 mark at 63.84 against the dollar, up 140 paise The biggest in two weeks as fears of a US military strike on Syria eased amid lower global oil prices.



Banks and exporters preferred to reduce their dollar positions on expectations of additional foreign fund flows into the equity market.



The rupee resumed higher at 64.40 a dollar from Friday's close of 65.24 and touched a low of 64.54 at the interbank foreign exchange market. It later bounced back to breach the 64 mark and touch a high of 63.78 before settling at 63.84, a rise of 140 paise or 2.15 per cent.



Today's rise was the biggest since it added 225 paise on August 29. In four straight sessions, the local currency has flared up by 379 paise or 5.6 per cent.



US jobs data on Friday fell short of expectations, leading to speculation that the tapering of the US Federal Reserve's bond-buying programme would be delayed.



India's exports rose for the second straight month in August, while the trade deficit narrowed as gold imports fell, the Commerce Ministry said today.



"The downbeat jobs data from the US led to losses in the US dollar index, thereby helping the rupee and other Asian currencies to post gains," said Abhishek Goenka, CEO of India Forex Advisors. "Also, today's trade deficit data...was seen supporting the rupee as it showed the trade gap reduced to USD 10.9 billion in August from USD 12.27 billion in July."



The benchmark S&P BSE Sensex surged 727 points today, the biggest gain in absolute terms in more than four years.



Foreign institutional investors bought a net Rs 2,563.60 crore of shares today and Rs 800.71 crore of shares on Friday, as per provisional data from the stock exchanges.



Brent (oil) crude futures fell below USD 113 a barrel as supply fears eased on Syria developments.



"The trading range for the spot USD-INR pair is expected to be within 63 to 65," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India). "The government is also set

Source:- financialexpress.com

Activity of assembling water purifier is deemed manufacturing for purposes of sec. 80-IC relief

IT: Where new distinct article called water purifier came into existence on assembling components, activity was manufacture and deduction under section 80-IC was allowable to assessee's units

Services acquired for maintenance of lawn in a factory premise as per legal mandate is eligible inpu

ST : Service for plantation, maintenance of lawn, etc. in factory, as per statutory pre-condition imposed by State Pollution Control Board for permitting carrying on of factory, has nexus with manufacture and is, therefore, an input service

Lower authorities aren't allowed to place their judgment over decision of superior forum

IT: Where superior forum decides an issue in one way, it was not permissible for lower authorities to sit in judgment over decision of a superior forum by interpreting same in other manner

If consequential order of AO isn't in sync with directions of Tribunal, assessee can initiate fresh

IT: If consequential orders passed by Assessing Officer are de hors directions of Tribunal, remedy for assessee lies in fresh proceeding commencing with such consequential orders and not in proceedings that culminated with order of Tribunal

SEBI's initiative to curb Saradha like Scams; declares illegal mobilization of funds as fraudulent

SEBI : SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) (Amendment) Regulations, 2013 - Amendment in regulation 4

Forms and Rules prescribed to furnish details of income distributed by the Securitization Trust

IT : Income-Tax (Fifteenth Amendment) Rules, 2013 - Insertion of Rule 12BA and Form NO.63AA

CIT V Vs. NASA FINELEASE P LTD

Revenue, by this appeal under Section 260A of the Income Tax Act 1961 (Act, for short), has raised a solitary issue relating to interpretation of clause (d) to Section 43(5) of the Act. For the purpose of record, we note that the appeal pertains to assessment year 2006-07. The respondent-assessee is engaged in the business of dealing in securities and investment and was engaged by Kotak Mahindra Securities to manage their funds and earn income in nature of profits/gains or dividends from dealing with securities. The assessee

SEBI Act and Collective Investment Scheme Regulations intend to save Aam Aadmi from nemesis; not ult

SEBI: Introduction of section 11AA in SEBI Act and framing of Collective Investment Scheme Regulations are intended to save aam aadmi from ruination and are not ultra vires Constitution

Profit from eligible unit to be computed without setting off losses of other eligible units for sec.

IT: Profit from a particular industrial undertaking is qualified for 80-IB deduction, without reduction of loss suffered by any other eligible undertaking

Case remanded as DRP passed non-speaking order without considering objections raised by assessee

IT/ILT: Where non-speaking order was passed by Dispute Resolution Panel without considering objections of assessee and assessee's application for permission to lead additional evidence, matter was to be remitted back for readjudication

Reassessment without prior scrutiny assessment permissible if assessee had income which escaped asse

IT : Reopening of assessment is permissible even if there was no scrutiny assessment, provided there is reason to believe that income chargeable to tax has escaped assessment

Credit for motor vehicles is available to extent it falls under definition of 'capital goods'

ST/ECJ: Credit of motor vehicles is not available merely because assessee's work by its very nature involves use of certain means and forms of transport; credit is available only up to extent they fall under definition of 'capital goods'

WOODWARD GOVERNOR INDIA LTD. Vs. COMMISSIONER OF INCOME TAX

The aforesaid decision in Woodward Governor India Limited (supra), which pertains to Assessment Year 2004-05, accepts the legal position that provision for warranty can be allowed as an expenditure under Section 37(1) of the Income Tax Act, 1961 (Act, for short). The other question, i.e., how much or the quantum of expenditure, which should be allowed, it has been held, depends upon facts and circumstances of each case. The working of the figure or quantum of the provision for warranty has to be rational and scientific. For more information

HC sets aside ITAT's order as it deleted addition and rejected report of valuation officer without h

IT: When report of Valuation Officer is objected to by assessee, Commissioner (Appeals) or Tribunal are obliged to extend an opportunity of hearing to said Valuation Officer

Purchases couldn't be concluded as bogus on mere reasoning that creditors didn't reply to confirmati

IT : Where assessee explained procedure adopted for accounting freight and route expenses payable in books of account and neither Assessing Officer nor auditor had recorded any adverse finding regarding mercantile system of accounting employed and regularly followed by assessee, addition by Assessing Officer on account that assessee could not prove genuineness of creditors was not justified

Reassessment to recompute book profits u/s 115JB not allowed

IT: Where Assessing Officer had reopened assessment of assessee after a period of four years from end of relevant assessment year for reason that book profit was under assessed, since in reasons recorded there was no mention at all of assessee having not disclosed fully or truly material facts which were necessary for purpose of computing income, reopening of assessment lacked validity

Levy of service tax on renting of immovable property is constitutional, rules HC

ST : Amendment in section 65(90a) read with section 65(105)(zzzz) by Finance Act, 2010 providing for levy of service tax on renting of immovable property per se was constitutionally valid

ORDER dated 05-09-2013

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

ORDER

North Block New Delhi,

Dated 5^th September, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F. No.DRI/SRU/INV-3/2012 dated 23.04.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s Purab Textiles Pvt. Ltd. (IEC No.527021907), Neeta Estate, Near Zenith Mill, Vasta Devdi Road, Katargam, Surat and Jay Laxmi Fabrics, (IEC No.5290559952), 7/1164, Ruwala Compound, Juna Balashram, Rampura Tunki, Surat to the Commissioner of Customs (Port-Import) Jawaharlal Nehru Custom House, Nhava-Sheva, Post Uran, District Raigad, Maharashtra-400707 for the purpose of adjudication

F.No.437/51/2013-Cus-IV

(M.V. Vasudevan)

Under Secretary to the Government of India

Copy to:-

1. The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad.
   


2. The Commissioner of Customs (Import), JNCH, Nhava Sheva, Post-Uran, Distt-Raigad, Maharashtra - 400707.
   


3. The Joint/Additional Commissioner of Customs (Imports), JNCH, Nhava Sheva, Post-Uran, Distt-Raigad, Maharashtra-400707.
   


4. The Joint/Additional Commissioner of Customs (Preventive), Sarda House, Bedi Bandar Road, Opposite Panchavati, Jamnagar-361002.
   


5. The Joint/Additional Commissioner of Customs (Imports), Air Cargo Complex, Sahar,Andheri (E), Mumbai-400099.
   


6. Webmaster.cbec@icegate.gov.in
   

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Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

ORDER

North Block New Delhi,

Dated 5^th September, 2013

In terms Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F. No. VIII/26/50/2013-DRI dated 09.05.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Chennai Zonal Unit, Chennai in the case of M/s Devendran Coal International Pvt. Limited, 2A & B, III floor, Raja Annamalai Building, No.19, Marshalls Road, Egmore, Chennai-600008 to the Commissioner of Customs, New Harbour Estate, Turicorin for the purpose of adjudication.

F.No.437/53/2013-Cus-IV

(M.V. Vasudevan)

Under Secretary to the Government of India

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Chennai Zonal Unit, Chennai.
   


2. The Commissioner of Customs (Seaport-Import), Customs House, Chennai.
   


3. The Commissioner of Customs, No.1, Williams Road, Tirchirpalli-620001 .
   


4. The Commissioner of Customs , Custom House, New Harbour Estate, Tuticorin 628004.
   


5. Webmaster.cbec@icegate.gov.in
   

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Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

ORDER

North Block New Delhi,

Dated 5^th September, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F. No. DRI/AZU/INQ-1/2013 dated 27.06.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s VVF(India) Limited, (formerly known as VVF Ltd., Mumbai), 109, Opposite Sion Fort Garden, Sion East, Mumbai-400022 to the Commissioner of Customs, Custom House, Kandla for the purpose of adjudication.

F.No.437/54/2013-Cus-IV

(M.V. Vasudevan)

Under Secretary to the Government of India

Copy to:-

1. The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad.
   


2. The Commissioner of Customs, Custom House, Kandla.
   


3. The Commissioner of Customs (Import), NCH, Mumbai.
   


4. Webmaster.cbec@icegate.gov.in

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Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

ORDER

North Block New Delhi,

Dated 5^th September, 2013

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice DRI F.No.64/KOL/APP/2011/158 dated 11.01.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Kolkata Zonal Unit, Kolkata in the case of M/s C & C Construction Ltd, Plot No. 70, Institutional Sector, Gurgaon-122001 to the Commissioner of Customs (Port), Kolkata for the purpose of adjudication.

F.No.437/26/2013-Cus-IV

(M.V. Vasudevan)

Under Secretary to the Government of India

Copy to:-

1. The Additional Director General, DRI, Kolkata Zonal Unit, 8, Ho Chi-Minh Sarani, Kolkata-700071.


2. The Commissioner of Customs (Port), Kolkata, 15/1 Strand Road, Custom House, Kolkata-700001.
   


3. The Commissioner of Custom (Export), Mumbai, New Custom House, Mumbai.


4. Webmaster.cbec@icegate.gov.in

DDIT vs. Reliance Infocom Ltd/ Lucent Technologies (ITAT Mumbai)

Consideration for supply of software which is not embedded in equipment is taxable as “royalty” The assessee, Reliance Infocomm Ltd, wanting to establish a wireless telecommunications network in India, entered into a contract with Lucent Technologies for supply of software required for the telecom network. The assessee claimed, relying on Tata Consultancy Services 271 ITR 401 (SC), Ericson AB 343 ITR 370 (Del), Nokia Networks OY 25 taxmann.com 225 & Motorola 270 ITR (AT) (SB) 62, that the amount paid by it to Lucent for acquiring the software was for purchase of a “copyrighted article” and “goods” and that it was not assessable to tax as “royalty” u/s 9(1)(vi) or Article 12(3) of the India-USA DTAA. The claim was upheld by the CIT(A). On appeal by the department to the Tribunal HELD allowing the appeal: There is a distinction between a case where the software is supplied along with hardware as part of the equipment and there is no separate sale of the software and a case where the software is sold separately. Where the software is an integral part of the supply of equipment, the consideration for that is not assessable as “royalty”. However, in a case where the software is sold separately, the consideration for it is assessable as “royalty”. On facts, the assessee had acquired the software independent of the equipment. It had received a license to use the copyright in the software belonging to the non-resident. The non-resident supplier continued to be the owner of the copyright and all other intellectual property rights. As there was a transfer of the right to use the copyright, the payment made by Reliance to Lucent was “for the use of or the right to use copyright” and constituted “royalty” under s. 9(1)(vi) and Article 12(3) of the India-USA DTAA (Synopsis International 212 Taxman 454 (Kar), Samsung Electronics 345 ITR 494 (Kar), Lucent Technologies 348 ITR 196 (Kar), Citrix Systems 343 ITR 1 (AAR) & Microsoft/Gracemac Corp 42 SOT 550 (Del) followed).