IT: Amount of gift allegedly received by assessee from NRE account of a person was treated as undisclosed income in view of donee's statement denying such gift
Sunday, 22 September 2013
No disallowance of interest if interest charged on loans extended to sister concerns and others were
IT : No disallowance can be made from interest paid by assessee if rate of interest charged on loan given to sister concern and rate of interest on borrowings was same
Sale price of goods includes only those taxes that relate to supply of goods
ST/ECJ : Taxes, duties, levies and charges (excluding VAT itself) are includible in sale price of goods liable to VAT only if such taxes, etc. are directly linked to supply of such goods; therefore, registration duty linked to registration of vehicles and not to supply thereof, is not includible in sale price liable to VAT
Rs 3,000cr lost as tax rebates to NGOs, trusts: CAG
The government has given away more than Rs 3,000 crore by way of tax exemptions to some non-deserving big charitable organizations and trusts.
The revelations were made in a Comptroller and Auditor General (CAG) report which was submitted to the government for tabling in the monsoon session of Parliament but it was deferred by the government.
Sources said the auditor has covered almost all big trusts and charitable organizations and has audited at least 80,000 of the six lakh registered trusts. The audit found undeserving exemption provided to the tune of more than Rs 3,000 crore.
The CAG audit covered an income tax (I-T) scrutiny report pertaining to accounts of several NGOs and charitable trusts that had received foreign contributions in the past decade. A foreign contributors list was obtained from the home ministry by the I-T department and tallied with the returns of income filed by these trusts and detailed scrutiny of suspect cases were carried out. All suspect cases pertain to assessment year up to 2009-10.
The federal auditor has taken up all these cases and audited the accounts of many of these organizations in its report named "Exemptions to Charitable Trusts and Institutions" on direct taxes.
To deal with some charitable and religious organizations that had been diverting their accumulated income to acquiring new assets, such as in the case of Baba Ramdev where his trust had bought properties abroad and expanded his empire in India, the government had devised a fresh levy of 15% on the accumulated income of NGOs and trusts.
Since 2011, it has been made compulsory for all non-governmental organizations (NGOs) and charitable trusts to file details of foreign contributions received in their income tax returns along with their Foreign Contributions Regulation Act (FCRA) number. A revised I-T return form was notified for this purpose.
The new return form for NGOs has additional columns for mentioning their FCRA number and another column for providing details of overseas contributions received. Earlier, there was only one return form that was applicable for all NGOs and trusts, including non-charitable organizations that were not qualified for exemptions.
The necessity to devise a new form arose after it was found during scrutiny of some NGOs that they had received a lot of foreign contributions but failed to mention them in their return of income filed with the I-T department.
Smart things to know about income tax refunds
1) Taxpayers are entitled to receiving refunds, if payable, after their returns have been processed by the Central Processing Centre in Bangalore
2) The State Bank of India has been designated the banker for ensuring that refunds are paid to the bank accounts of taxpayers.
3) To ensure that the refund is deposited in the bank account, the assessee must provide correct bank details while filing their returns.
4) The Income Tax Department supports queries regarding the status of refund through the Tax Information Network (TIN) website. One can access it by providing the assessment year and PAN.
5) If a refund is payable, the assessee is provided the refund reference number, date of credit to the bank account, or the dispatch details of the cheque.
Deadly e-mail: Acknowledging a debt on e-mail convinced HC to admit winding up petition
CL: E-mail/s acknowledging debt would constitute a valid and legal acknowledgement of debt though not signed as required under section 18 of Limitation Act
Rs 100 cr service tax evasion by wind power provider
An alleged service tax evasion of at least Rs 100 crore by a Mumbai-based wind power provider and its allied companies has been detected by Excise intelligence officials.
Acting on a tip off, officials of Directorate General of Central Excise Intelligence (headquarters) here, recently conducted searches at the premises of the provider in Mumbai and its other offices across the country.
The officials have found that the company, engaged in manufacture of wind turbine generators and providing services of its installation and maintenance, was allegedly evading service tax by mis-declaring the value of work being undertaken by it, sources said.
During the searches, it was found that it had collected full amount of service tax from its clients between April, 2012, and May, 2013, by providing services in connection with wind turbine generators sold to them, they said.
However, the firm had allegedly re-worked the value of taxable services and discharged service tax on 30 per cent of value only.
The amount of remaining 70 per cent of service tax collected by them was allegedly shown in other heads to dodge the authorities and evade the Centre's levy, the sources said.
An email query sent to the company by PTI did not elicit any response. Phone calls made to the firm's corporate office in Mumbai was answered by Kakade, said to be working with its marketing division, who declined to give any comment on the matter.
Service tax fear baseless, ministry assures educational institutions
The Department of Revenue under the Union Finance Ministry has termed as baseless complaints lodged by private educational institutions across the country of being forced to pay service tax at the rate of 12.36 per cent for provision of auxiliary educational services such as hostels, housekeeping, security services and canteen. Responding to representations sent by 13 different associations of educational institutions from Madurai, Chennai, Rajasthan, Chandigarh, New Delhi, Thanjavur and Mumbai, the Tax Research Unit (TRU) of the Central Board of Excise & Customs under the Department of Revenue has asked them not to give credence to “rumours or mischievous suggestions.” A circular issued by J.M. Kennedy, Director, TRU, on Thursday states: “All services relating to education are exempt from service tax… The apprehensions conveyed in the representations submitted by certain educational institutions and organisations have no basis whatsoever.” It has been forwarded to Commissioners of Central Excise and Service Tax all over the country. Usage of the terms “to or by” meant that educational institutions need not pay service tax even if they rent out their immovable properties such as school grounds and auditorium for commercial purposes. Therefore, in order to set right the anomaly, another notification was issued on March 1, 2003 stating that the words “provided to or by” in the earlier notification would be substitute by the words “provided to.” “This amendment was applicable only to renting of immovable property but Central Excise Commissioners in many parts of the country misunderstood the term to mean that it amounts to imposition of service tax on auxiliary educational services provided by educational institutions. Immediately, notices were issued to schools, colleges and universities demanding payment of tax from April 1, 2013,” Mr. Senthilnathan said. |
Edible Oil Imports May Surge To 16 Million Tonnes In 2020/21
23-Sep-2013
Edible oil imports are likely to surge by 54 per cent to 16 million tonnes in 2020/21 as demand rises at a much higher rate than local supplies, a leading trade expert said in a presentation at a conference on Sunday.
Rising prosperity in rural areas due to state-run employment generation schemes and increasing urbanisation would be key demand drivers, said Govindbhai G. Patel, managing partner of GG Patel & Nikhil Research Co.
"All India per capita consumption is 13.80 kg, but in many states it is about 10 to 11 Kg. Consumption growth in these states will be more ... rising labour income is increasing the income level of people who are consuming much below the all-India level," he said.
India's edible oil imports in the 2012/13 year ending on Oct. 31, 2013, would be 10.4 million tonnes, he estimated.
He said India's edible oil demand was set to jump by 46 per cent to 25.2 million tonnes in 2020/21, while local supplies are likely to rise by 37 per cent to 9.2 million tonnes.
Source:- economictimes.indiatimes.com
Hindustan Copper Lines Up Rs 688 Crore Capex On Mine Expansion In Fy14
22-Sep-2013
Hindustan Copper Limited (HCL) has lined up a capex of Rs 688.37 crore in 2013-14 up from a planned expenditure of Rs. 260.28crore in 2012-13. This is part of a planned capexof Rs 3,435croreon eight mining projects by the state-owned copper major which has lined up a four-fold expansion in mine capacity to 12.4 million tonne in next five years. The company will spend the amount on mine expansion, replacement & renewal, mine development and green field exploration with work on four of the eight projects having already commenced. Incidentally, HCL received environment clearance for the company's flagship undergound project atMalanjkhand in Madhya Pradeshfrom union ministry of environment & forests (MoEF) in June 2013.
HCL has also floated an expression of interest (EoI) to extract minerals and materials from the copper ore tails, marking a step forward to achieve 'Zero Waste Mining'. This is expected to contribute significantly to HCL's profitability. The company is due to take up greenfield mine exploration with the Madhya Pradesh government granting reconnasissance permit (RP) of 580.73 sq. km in the Balaghat district. It has also made headway in its efforts at getting RP for exploration of copper in Rajasthan where an area covering 1860.69 sq. km has been recommended for RP to HCL in the Ajmer, Bhilwada, Pali Nagur and Jaipur.
Speaking at the company's 46 thAGM on Friday last, HCL chairman and managing director K D Diwan said domestic copper consumption is likely to remain positive in line with GDP growth due to government spend on power and infrastructure and housing sectors in the 12 thPlan.
HCL's own production of ore was 13% higher in April-August 2013 compared to corresponding period of last year. During the same period Metal-in-Concentrate (MIC) production was 24% higher compared to the previous corresponding period, while t otal copper sales were up 10% compared to the previous corresponding period. For FY 2013-14, HCL has set a production target of producing 39 lakh tonne (lt) of copper ore and 35,200 tonnes ofMIC and 33792 tonnes of cathodes.During 2012-13, the company produced 36.57 lt of ore against 34.79 lt in FY13. HCL also posted a profit after tax of Rs 355.64crore in FY13 the best-ever since inception.
Source:- economictimes.indiatimes.com
Jawaharlal Nehru Port In The Dock Over Purchase Of Buoys
22-Sep-2013
Jawaharlal Nehru (JN) Port has put on hold a decision taken earlier this month to buy 22 channel buoys and nine pairs of leading lights from an Indian entity after complaints that the harbour had to pay a higher price due to irregularities in selection.
Aero Marine Equipment Supply Pvt. Ltd, the Indian distributor for Australia-based Sealite Pty Ltd, was given the order to supply the gears that aid in navigation, after the firm placed the lowest price quotation of Rs.11.85 crore on a tender.
The price bid of Aero Marine was approved by the board of trustees of the Union government-controlled port on 6 September and a work order was issued on 10 September.
“The work order issued to Aero Marine has been kept in abeyance,” a port official said on condition of anonymity. “We are placing the complaints on the tender for deliberation at the next meeting of the board of trustees slated for 24 September. Based on the discussions, the board will decide whether to continue with Aero Marine or go for a fresh tender to purchase the gadgets,” he said.
A port spokesman declined to comment.
The tender had attracted four firms. Those who had applied included Sealite, the original equipment manufacturer, and its India and Qatar distributors, Aero Marine and United International Trading and Contracting Co., respectively.
US-based Tideland Signal Corp., the world’s biggest manufacturer of navigational aids, had also participated in the tender through its Indian distributor, Hi-Tech Elastomers Ltd.
So, effectively, there were only two participants—Sealite represented by itself and its Indian and Qatar distributors, and Tideland Signal represented by its Indian distributor Hi-Tech.
Though, Tideland Signal met all the selection criteria stipulated by the tender, its application was disqualified because it was evaluated only on the credentials of its Indian distributor Hi-Tech.
It is common practice in such tenders to evaluate the selection criteria for original equipment manufacturers and not for their dealers, distributors or agents.
“Hi-Tech has lodged a complaint with the government alleging that its application was disqualified to facilitate the order to Sealite through a nexus of the three companies (Sealite and its Indian and Qatar distributor),” the port official mentioned earlier said.
Sealite could not be reached immediately for comment, but its website shows that Aero Marine and United International Trading and Contracting were its Indian and Qatar distributors.
“By filtering healthy competition, JN Port has allowed a single manufacturer to compete within its three parties (dealers and agents) whose prices are known to each other,” Hi-Tech has said in its complaint, a copy of which Mint has reviewed.
As a result, JN Port has been forced to pay an “abnormally high price”, estimated worth more than Rs.6 crore, for the gadgets, Hi-Tech has claimed
Source:- livemint.com
Rajasthan's Traders Cheer Hike In Import Duty On Jewellery
The increased import duty of gold jewellery from 10% to 15% has made local jewellery manufacturers in the city happy. Traders are now expecting a curb on re-routing of jewellery from Thailand and Dubai and a level playing field for domestic manufacturers.
The move has come after demand from several jewellery traders including from Rajasthan to increase import duty in the interest of local manufacturers. The ministry in its statement noted that Indian jewellery makers was finding it hard to compete with cheaper imports.
"Jewellery-making is a labour intensive industry. There is an apprehension that Indian jewellery makers would not be able to compete with cheaper imports, particularly when majority of the imported jewellery is machine-made as compared to hand-made jewellery in India," said an official release of the ministry.
The higher import duty would also be applicable on goldsmiths' and silversmiths' wares and would protect the interests of small artisans. Most of the jewellery that is imported into India comes from Italy, Turkey, Dubai, Thailand, Hong Kong and the United States.
Sarafa traders committee (STC), Jaipur was demanding revise in duties, the same tax rate on raw gold as well as on the articles of jewellery.
"We welcome this step which has send a positive message in the market. It will not only protect small artisans form Rajasthan but will also stop re-routing of gold jewellery," said Ashish Meghraj, spokesperson, STC.
Jaipur is a major hub of gold manufacturing as well as exports in the country. The exports of gold jewellery are estimated at around Rs 400 crore while silver is close to Rs 600 crore.
For the buyers the good news is that import duty will not make the jewellery expensive. The move has nothing to do with the cost of gold jewellery in the market. It will only protect the domestic industry from foreign jewellery makers," said Arun Garg, a Jaipur-based jewellery exporter.
Source:- timesofindia.indiatimes.com
Indian Grape Processing Board Eyes Asia Pacific For Wine Export
22-Sep-2013
The Indian Grape Processing Board (IGPB) is planning to increase the presence of Indian wine in the Hong Kong and Singapore markets, as a part of its strategy to increase wine export from the country in the Asia Pacific region.
To promote Indian wine, wineries are participating in a trade fair in Hong Kong, organised by the Hong Kong Trade Development Council (HKTDC), in November 2013. A business conference will also be organised in Singapore by the IGPB, with the help of the Indian embassy in Singapore and the Agricultural and Processed Food Products Export Development Authority (APEDA).
"Wine is made in Australia, Africa, South America and European countries. But India is the only major wine producing country in Asia. Our aim is to increase exports in the Asia Pacific region. As a part of this, we are initially targeting markets in Thailand, Singapore and Hong Kong, the major hubs for covering other Asia Pacific countries like Cambodia, Burma, Indonesia, Malaysia and Vietnam," Jagdish Holkar, chairman, IGPB, told TOI in Nashik on Sunday.
"We recently held wine and food tasting event at the India House in Bangkok - the official residence of the Indian ambassador to Thailand - to promote Indian wine in the country. Around 150 wine importers, food and beverage managers of various establishments and hospitality professionals participated in the programme. We also held business meetings with some wine importers and hotel mangers in Thailand. We are expecting good business from Thailand over the coming months. We are also targeting the markets in Hong Kong and Singapore. The primary objective is to promote Indian wine in these countries," Holkar said.
At present, wine production in the country stands at around 12 million litres a year, with a market size of Rs 480 crore. Export from India stands at around 12 lakh litres, valued at Rs 50 crore. Of the total wine sales in the country, the hospitality industry accounts for 65 per cent of the consumption, while the rest is accounted for by retail wine shops. Of the 93 wineries in India, 75 are located in Maharashtra. As many as 36 wineries are in Nashik, 12 in Pune, 13 in Sangli, five in Solapur, four in Osmanabad, three in Buldhana and one each in Latur and Ahmednagar. Maharashtra accounts for almost 91 per cent of the total wine produced in India and Nashik contributes to 80 per cent of the production from Maharashtra.
Source:- timesofindia.indiatimes.com
Matter remanded as DRP didn't consider objection of assessee on selection of dissimilar comparables
IT/ILT : Where detailed objections of assessee regarding functional comparability of comparables chosen by TPO were not considered by Dispute Resolution Panel, matter was to be remanded for readjudication
Onion Prices Fall As Arrivals Increase
Prices of big onion that reached more than Rs. 60 a kg (wholesale prices) dropped sharply on Saturday and Sunday because of increase in arrivals.
M. Rajendran, president of Thyagi Kumaran Market Vegetable Merchants’ Association, said that the wholesale price on Saturday ranged from Rs. 25 to Rs. 37 a kg for the arrivals from Karnataka and varied according to the quality.
The price of the onions from Maharashtra remained higher.
But, arrivals from Karnataka have commenced and there is no shortage. With good rains this year, the production in Karnataka is good.
On Saturday, several wholesale merchants at the market did not unload the entire quantity because of the high arrivals.
This is expected to have an impact on the retail sales also soon.
Though there were reports of onion price touching Rs. 80 or more in the city, it has started coming down now because of the Karnataka crop, he said.
On Sunday, the wholesale price of big onion (Karnataka arrivals) at the market was Rs. 35 a kg and that of Maharashtra production was Rs. 50 a kg.
The stock of Maharasthra onion was less.
There is rain in Karnataka and if it continues, it might damage the produce leading to price rise again.
However, arrivals have started from Nasik too and it is said that Nasik has a bumper crop, he added.
Source:- thehindu.com
Rupee Weakens In Early Trade On Month-End Dollar Demand
The rupee weakened in early trade due to month-end dollar demand from importers.
At 9:20 am, the rupee was trading at Rs 62.39 compared with previous close of Rs 62.28 per dollar.
Currency dealers see the rupee weakening further this week and touch Rs 63 per dollar. Last month, the rupee had touched an all-time low of Rs 68.85 in intra-day trades due to month-end dollar demand.
Currency dealers also expect the Reserve Bank of India (RBI) to step in to arrest the falling rupee later during the day.
Source- business-standard.com
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