Non-maintenance of accounts by a trust can't be cause for denial of its registration, rules HC

IT : Non-maintenance of accounts properly cannot be reason to deny registration under section 12A

Waiver of penalty by adjudicating authority deemed as reference to sec. 80, even though provision wa

ST: Where adjudication order holds that assessee had voluntarily paid service and on its own approached department to rectify lapses and, hence, assessee was eligible for waiver of penalty, such order invokes provisions of section 80 even though section 80 is not specifically referred to in such order

No Rule 8D disallowance for sum parked in short-term investments which didn't generate exempt income

IT/ILT : Royalty did not include any information provided in course of advisory services

Service-tax charged on professional receipts but remitted separately would not be subject to sec. 19

IT: Where as per agreement, amount of service tax was to be paid separately from professional/technical charges, same would not be subjected to TDS

Coal Stocks At Indian Ports Rise 2% On Week To 10.2 Mil Mt: Interocean

30-Sep-2013

Imported coal stocks at 16 major ports in India stood at 10.2 million mt Saturday, up 2% from a week earlier, according to data released Saturday by New Delhi-based shipbroker Interocean Group.



Thermal/steam coal stocks stood at 8.2 million mt, up from 7.96 million mt the previous week, the data showed. Coking coal comprised 2 million mt, down from 2.1 million mt a week earlier.



The 16 ports surveyed Saturday were Mangalore, Tuticorin, Kakinada, Paradip, Kandla, Gangavaram, Vizag, Krishnapatnam, Muldwarka, Bhavnagar, Pipavav, Goa, Haldia, Magdalla, Hazira and Dahej.

Source:- platts.com

Debate On Rice: Make Informed Nutritional Choices To Gain Maximum Benefit From The Food Grain

30-Sep-2013

It's hard to think of a cereal that is more intrinsic to Indian culture than rice. It journeys with us for a whole lifetime — with the first solid food a baby is traditionally fed during the annaprashan ceremony to sprinkling it over a deceased person's mouth during the last rites. A vast majority of the Indian population eats rice as its staple grain, similar to Asian countries such as China and Japan, where it is almost always the main part of a meal.



However, opinions about the grain are sharply polarised — while some nutritionists advocate it over wheat because it is gluten free, a far larger number recommend avoiding it altogether because it is considered to be full of empty calories that fuel obesity and increase the risk of type-2 diabetes. So what is the truth about rice?



Are some varieties better than others? To get to the bottom of the debate on the nutritive properties of rice, it's important to start with a single grain. The outermost layer of the rice grain is known as the husk and removed during milling. The second layer called bran is highly nutritious and contains fibre, proteins and minerals. It can be light brown, black or red in colour, which gives the unpolished grain its characteristic colour.



This kind of rice is considered nutritionally superior to polished white rice. Milling the grain further removes the bran layer to reveal the endosperm, which contains carbohydrates, proteins and amino acids. A rice grain stripped down to its endosperm is what we know as white rice. The degree of processing determines the colour of the grain.



Colour Concerns



The process that converts brown rice into white rice destroys 67% of the vitamin BC content, 80% of vitamin B3 content, 80% of vitamin B6, 50% of the manganese and phosphorus content and 60% of iron, along with dietary fibre and essential fatty acids. So it is no surprise that brown rice is much more nutritious. However, the bran contains essential oils, which makes it more prone to spoilage than white rice, which has had the bran removed. Also, the antioxidant compounds called phytates present in the bran can hinder the absorption of important nutrients such as iron. This is a minor drawback of brown rice, but not significant enough to take away from its other benefits.



"Cooking reduces the phytate content of brown rice to some extent," says Sheela Krishnaswamy, a Bengaluru based nutrition and wellness consultant. "If brown rice was really problematic for health, it would not have been widely used many decades ago. Also, since brown rice has more nutrition than white rice, some kind of a balance is struck." Where does that leave white rice? In its defence, it is not completely devoid of nutrients. It is an important source of carbohydrates (amounting to 77.5%) and high quality protein (about 4 gm per cup).



However, protein from white rice is incomplete because it does not contain adequate quantities of an essential amino acid called lysine. Eating foods rich in lysine helps the body procure this missing essential amino acid. Some of these foods are beans lentils, soya products, nuts and dairy products. This also explains why combinations like dal and rice or yoghurt and rice are nutritionally complete. There is another variety of rice — parboiled rice.



Here, rice that is still in the husk is partially boiled and dried. Nutrients from the husk and bran are allowed to seep into the endosperm. Parboiled rice is used almost daily in south India and also for making the batter for idlis or dosas. The American Diabetes Association lists it as a low glycaemic index food, or one that takes longer to digest, thereby preventing a sudden spike in blood sugar levels.



Weighty Matters



One of the most debated aspects of rice is its association with weight gain. "A lot of weight loss clinics and self-styled experts do not permit the consumption of rice because they believe it's difficult to quantify rice intake, often leading to excess intake," says Krishnaswamy. The truth is that it is often tougher to practise portion control with rice. In rice eating communities, three or four dishes are typically paired with the grain, making it difficult to keep track of the quantity being consumed. However, Krishnaswamy says it is not true that rice has higher calorie burden than other grains.



According to an article published in the Journal of the American Dietetic Association in October 2009, "Americans who eat rice obtain a smaller portion of their daily calories from fat and have a lower rate of saturated fat consumption than those who do not eat rice." The study also found that people who eat rice consume more fibre, vegetables, iron and potassium than their counterparts who shun it. In counties such as Japan and south Korea, rice is typically paired with protein rich foods such as fish and meat, which is why obesity rates in these predominantly rice eating societies are very low.



Fight Against Wheat



In a world where gluten intolerance is on the rise, rice seems like the logical alternative to wheat. Since rice is naturally gluten free, it can be a primary source of carbohydrates. It is also usually free of any stomach irritants or allergens, which is why it is the safest weaning food for babies. However, unpolished rice is a more nutritionally complete alternative to wheat than white rice is. Also, since the protein content of rice is less than that of wheat, it's wise to combine the grain with other protein rich foods. The supremacy of rice as one of the country's staple foods is unlikely to be challenged. However, eat it mindfully and make informed nutritional choices to gain the maximum benefit from this versatile grain.

Source:- articles.economictimes.indiatimes.com

Promising Outlook For Plastics Processing Industry In Indian Subcontinent

30-Sep-2013

With a population greater than China but polymer demand only one-fifth the size, the Indian subcontinent region's plastics industry has enormous potential for growth. Thermoplastic consumption has grown by 10% pa since 2007 and is expected to continue on a similar positive trajectory over the next five years, despite the recent slowdown in economic growth. According to Applied Market Information the total demand for thermoplastic resins in the Indian subcontinent will top 12.5 mln tons in 2013. Historically the region has been fraught with policy restrictions on foreign investment in certain industries, high tariff barriers and protectionist government policies but a process of deregulation and the removal of quotas and production licences has facilitated greater investment in both petrochemical and plastics processing activities. Strong economic growth is raising living standards and increasing consumption of a wide range of consumer goods from packaged foods to automobiles. Investment in infrastructure and agriculture is also important in driving the plastics industry in the region.



Whilst the outlook for plastics processing in the Indian subcontinent is undoubtedly positive, the industry still faces many challenges in terms of its infrastructure and the fragmented nature of its plastics processing industry. Infrastructure limitations relate not just to transport links but to a whole range issues from energy to the banking system, the limitations of which all serve to hold back business. Whilst these countries tend to have a strong entrepreneurial ethic this has led to a proliferation of small processing companies, running old and inefficient equipment, which lack the access to capital to invest and really develop an internationally competitive, modern manufacturing industry. For the Indian subcontinent to reach its full potential the plastics processing industry will need to rationalise, consolidate and invest in modern equipment to reduce costs and improve performance. The scale of the potential for the region is illustrated by its per capita demand which for 2013 will still be less than 8kg/head, although this compares to 5kg/head in 2008.



By contrast, per-capita consumption of polymer stands at 24kg in China and 75kg in Europe, with the world average 28kg. Unsurprisingly India has led the growth as it accounts for 87% of the subcontinent’s consumption of polymer. Growth has been driven through a number of different end use industries such as building and construction, packaging, automotive and agriculture. Sri Lanka now has the second highest level of per capita demand for thermoplastics, highlighting the recovery in manufacturing following the ending of its long civil war with the Tamil Tigers in 2009.



Pakistan has experienced the slowest growth in the subcontinent over the past five years where the economy was more impacted by the effects of global recession reducing its exports and the on-going security situation. Bangladesh has a population that is only 15% smaller than Pakistan’s but a polymer consumption which is roughly a quarter of Pakistan’s. The market has been constrained by lack of infrastructure, its tendency to flood during the monsoon and a lack of local polymer production, but the availability of cheap labour gives it the potential to develop as a low cost manufacturing base for exported plastic products. Nepal is the smallest subcontinent consumer of polymer and although demand has been growing ahead of GDP, it is developing from a very small and unsophisticated base. The country is unlikely to be able to develop a significant plastics processing industry because of its geography, both in terms of its landlocked mountainous terrain and its proximity to two manufacturing giants in China and India.

Source:- plastemart.com

Cotton Prices Firm On Active Demand

Prices almost firm on the cotton market on Monday in the process of selective buying from millers and spinners, dealers said. The official spot rate was unchanged at Rs 7250, they said. Prices of seed cotton in Sindh per 40 kg were modestly inert at Rs 3250-3400, while in Punjab prices were at Rs 3200-3350, dealers said. In the ready session, over 15,000 bales of cotton changed hands between Rs 7000-7400, they said.



Some dealers said ginners showed no interest in selling at the lower rates. Cotton analyst, Naseem Usman said China was going to impose import duty on cotton, which may not bring discourage local cotton exports and at least prices are likely to move in a narrow band in the near future. Additionally, it is expected that heavy rains in India may stabilise rates on the local market due to demand from Indian exporters, other brokers said.



The following deals were reported as 1,000 bales of cotton from Shahdad Pur at Rs 7100/7200, 800 bales from Tando Adam at Rs 7100-7200, 1,000 bales from Sanghar at Rs 7000-7100, 1,000 bales from Mirpurkhas at Rs 7000-7100, 1,400 bales from Nawab Shah at Rs 7300, 2,000 bales from Khair Pur at Rs 7350-7400, 1,000 bales from Upper Sindh at Rs 7350-7400, 200 bales from Mamo Kanjan at Rs 7275, 400 bales from Burewala at Rs 7300, 200 bales from Hasil Pur at Rs 7300, 600 bales from Bahawal Nagar at Rs 7300/7350, 200 bales from Dera Ghazi Khan at Rs 7350, 200 bales from Adda Flor at Rs 7350, 600 bales from Chichawatni at Rs 7350-7400, 200 bales from Bakhar at Rs 7350, 400 Jhang at Rs 7350-7400, 400 bales from Jahainan at Rs 7350-7400, 600 bales from Lodhran at Rs 7350-7400, 400 bales from Vehari at Rs 7350-7400, 600 bales from Chistian at Rs 7350-7400, 400 bales from Haroonabad at Rs 7350-7400, 400 bales from Mian wali at Rs 7350-7400, 400 bales from Khanewal at Rs 7350-7400, they added.

Source:- brecorder.com

Iron Ore Exports From India Seen Plunging On Taxes, Mining Ban

30-Oct-2013

Iron ore shipments from India are poised to tumble for a fourth year as government curbs on mining reduce supplies and higher export taxes prompt buyers to secure the steelmaking raw material from other producers.



Exports will probably fall by about 50 percent in the 12 months through March from 18 million metric tons a year earlier, said Hukam Chand Daga, president of the Federation of Indian Mineral Industries. A tax of 30 percent and waning availability have made exports almost unprofitable, he said.



Shipments to countries, including China, India’s biggest buyer, plunged after mining and transport in the western state of Goa, the top producer, was stalled by the nation’s Supreme Court in October last year pending probe into violations of norms. There was no case to lower taxes on exports, Finance Minister Palaniappan Chidambaram said on Sept. 27, two months after Prime Minister Manmohan Singh said the government was trying to remove constraints in shipments.



“High taxes and railway freight coupled with court-ordered bans on mining have cut output and made us unviable in the international market,” said Daga, who is also an adviser to Essel Mining & Industries Ltd., an ore producer owned billionaire Kumar Mangalam Birla. “With tax cuts, the shipments could have crossed last year’s figure.”



India is considering reducing taxes on some exports to boost shipments and help reverse a decline in the local currency, two government officials with direct knowledge of the matter said last month. Taxes on exports of low-grade fines may be cut to 20 percent from 30 percent, they said.



The rupee has rebounded 9.8 percent from a record low of 68.845 per dollar touched Aug. 28 after the U.S. Federal Reserve said Sept. 18 it will continue $85 billion a month of bond purchases.

Source:- bloomberg.com

Coffee Exports Fall 5.3% On Low Demand From Us, Eu

30-Sep-2013

India's coffee exports fell 5.34 per cent to 2,99,266 tonnes in the year ended September 30, as demand from the US and the European Union (EU) remained subdued. In the previous coffee year (October 2011 to September 2012), India had exported 3,16,164 tonnes.



“The decline in exports was mainly due to weak demand from European nations such as Italy, Spain, Greece and Portugal, as buyers were looking for cheaper coffees,” exporters said. Realisation from exports declined 1.3 per cent to Rs 1,51,379 a tonne between October 2012 and September 26, 2013, against Rs 1,49,459 a tonne in the previous coffee year. In value terms, total coffee exports fell 4.1 per cent to Rs 3,530 crore, against Rs 4,725 crore in the previous year, according to the Coffee Board.



A sharp drop in the prices of the arabica variety last financial year contributed to the decline in exports, as a large number of farmers withdrew sales, exporters said. Arabica prices declined 20-25 per cent.



“Arabica coffee prices ended within a cent of a more than a four-year low on Thursday, as big supplies of the beans and tepid demand encouraged selling. Prices were down about 20 per cent for the year; roasters appear to be waiting for even lower prices due to large supplies, particularly from Brazil. LIFFE robusta coffee futures hit an almost three-year low last Thursday, as expectations of a large crop from top grower Vietnam weigh on prices. LIFFE robusta coffee futures for November delivery settled $43 lower at $1,663 a tonne,” the Coffee Board said. India primarily exports coffee to Italy, Germany, Russia, Belgium and Spain.



The outlook for exports in 2013-14 isn't very promising. The Coffee Board has said in 2013-14, production would be at least 10 per cent lower than post-blossom estimates. In its post-blossom estimates earlier this year, it said production would stand at 3,47,000 tonnes. In 2012-13, production stood at 3,18,200 tonnes.



“Based on the conditions in February and March, when the growing regions received good blossom showers, we had estimated we would record 3,47,000 tonnes. However, due to a drought in the two subsequent months and the heavy rains in June, July and August, we anticipate a drop of about 10 per cent against the post-blossom estimates,” Coffee Board Chairman Jawaid Akhtar had told Business Standard earlier this month.



This means for 2013-14, India's bean production could be about 3,12,000 tonnes. However, growers estimate it at 70,000-2,90,000 tonnes. Exporters said low production would hit exports in the next crop year, too.

Source:- business-standard.com

India Pushing Iran To Accept Rupee For Oil Imports

India is making a last-ditch effort to get Iran to accept rupee payments for oil but has kept the option open to pay the West Asian exporter in Japanese yens or Chinese yuans as a more viable alternative to the US dollar. The department of economic affairs (DEA) is lobbying with Iran for a memorandum of understanding on rupee payments.



The ministry of petroleum is keen to prune the oil import bill by about $8.47 billion through 100 per cent rupee payment to Iran set off against Indian exports to that country.



In July, Iran had agreed in principle to full payment in rupee terms. But after India's announcement of the plan to save its forex outgo, the Islamic republic hardened its stand.



"Iran has stopped issuing invoices in rupees. It wants it in some other currency. The DEA is trying to convince them to sign a memorandum of understanding for 100 per cent rupee payment," said a senior official close to the development.



"Since Iran is facing sanctions that restrict its transactions in dollars or euros, our options are open to pay in yens or yuans in a 55:45 ratio with rupees. If none of these payment plans works out, we'll have to look at other destinations like Iraq or Saudi Arabia," said the official.



Last year, under the pressure of sanctions imposed by the US and the EU,



India had to resort to 55 per cent payments through the Turkish Halk Bank and the remaining through UCO Bank, as EU banks were not permitted to process dollar purchases.



After the Turkish bank refused to transact payments late last financial year, 100 per cent rupee payments began happening through UCO Bank.



At present, more than $5 billion of Iranian money is parked in UCO Bank while Indian exports to Iran were worth $3.4 billion last year.



"Payments of over Rs 2,000 crore are due to Iran from Indian companies for last year's invoices. But Iran is taking a hard stand now, refusing even to take forward the production-sharing contract for the Farsi block," said an official from a state-run company. The new Iranian regime under Hassan Rouhani has reportedly refused India's offer to sign a production-sharing contract for the block.



ONGC Videsh (OVL), Indian Oil Corporation (IOC) and Oil India (OIL) had won the block in 2002 from National Iranian Oil Company. While OVL and IOC have 40 per cent each, OIL holds 20 per cent stake in the block with proven reserves of at least 12.5 trillion cubic feet of gas.



Raising hopes of removal on the US sanctions, president Barack Obama had spoken to Rouhani last week, the first presidential discussions between the two nations since 1979.



India had cut its oil imports from Iran to 13.3 million tonnes in 2012-13 from 17.4 million tonnes in 2011-12 in the wake of the US sanctions. According to minister M Veerappa Moily, India plans to reduce that to 11 million tonnes this financial year.

Source:- business-standard.com

India Current-Account Gap Below Estimates As Gold Imports Curbed

30-Sep-2013

India’s current-account deficit widened less than economists estimated in the second quarter after the government tightened curbs on gold imports to tackle a shortfall that’s weighed on the rupee.



The deficit was $21.8 billion in April through June, compared with $18.1 billion in the previous quarter, the Reserve Bank of India said in a statement in Mumbai yesterday. The median of 26 estimates in a Bloomberg News survey was for a $23 billion gap. The current account is the broadest measure of trade, tracking goods, services and investment income.



The monthly trade deficit has almost halved since May as higher gold-import taxes deter inward shipments of a metal used in India for everything from wedding jewelry to hedging against inflation. The government aims to pare the current-account imbalance from a record $87.8 billion in the fiscal year ended March, part of efforts to support a currency that’s weakened 12 percent versus the dollar in 2013.



“Concerns over deficit financing are alleviating due to improvement in the trade deficit in recent months and steps by the central bank to boost dollar inflows,” said Tirthankar Patnaik, a strategist at Religare Capital Markets Ltd. in Mumbai. The current-account gap will narrow to $55 billion this financial year, easing pressure on the rupee, he said.



The rupee weakened 0.2 percent to 62.6175 per dollar at the close in Mumbai yesterday. The S&P BSE Sensex index of stocks fell 1.8 percent. The yield on the 10-year note due May 2023 rose to 8.77 percent from 8.71 percent on Sept. 27. The currency appreciated about 4.9 percent last month, helped by RBI Governor Raghuram Rajan’s efforts to attract dollars.



The government has boosted levies on gold bullion bought from abroad thrice in 2013 to 10 percent, most recently in August. Finance Minister Palaniappan Chidambaram said the same month that India intends to compress imports of gold, silver and some non-essential items, as well as demand for crude oil.



India’s imports fell for three straight months through August. Exports (INMTEXUY) climbed 13 percent that month from a year earlier and the merchandise trade deficit narrowed to $10.9 billion, from $20.1 billion in May.



The current-account gap for 2013-2014 may be less than $60 billion and the depreciation in the rupee is probably helping overseas sales to some extent, according to Barclays Plc.



The current-account deficit was 4.9 percent of gross domestic product in April through June, yesterday’s report showed. The central bank estimates the sustainable level is about 2.5 percent of GDP.



India’s budget deficit in the first five months of the fiscal year reached 74.6 percent of the target for 2013-2014, another release showed.



Prime Minister Manmohan Singh’s second term in office has been marred by graft scandals, average consumer-price inflation of about 10 percent in the past year and slumping economic growth. HSBC Holdings Plc predicts expansion will slow further to 4 percent in 2013-2014.

Source:- bloomberg.com

Rupee Falls Further By 9 Paise To 62.60 Against Dollar

30-Sep-2013

The rupee depreciated further by nine paise to close at 62.60 against the Greenback following weak equities amid sustained dollar demand from importers.



Fresh capital outflows also weighed on the rupee while some weakness in dollar overseas restricted the rupee fall.



At the Interbank Foreign Exchange (Forex) market, the local unit resumed sharply lower at 63.00 a dollar from last weekend's close of 62.51 and declined further to a low of 63.03 on month-end dollar demand from importers, mainly oil refiners and sluggish domestic stocks.



However, it later recovered on fresh dollar selling by exporters and fall in dollar overseas to a high of 62.50 before settling at 62.60, still showing a loss of nine paise or 0.14 pct. Last Friday, it had plunged by 44 paise or 0.71 pct.



The S&P Sensex on Monday plunged by 347.50 points or 1.76 pct while FIIs withdrew Rs 244.95 crore last Friday, as per provisional data with stock exchanges.



The dollar index, which tracks USD against the basket of six major currencies, was down by 0.02 pct.

Source:- businesstoday.intoday.in

Deemed offence under Competition Law if person fails to comply with directions of authorities withou

Competition Act : Moment it is proved that concerned person has without reasonable cause failed to comply with direction issued either by Commission or by Director General, offence under section 43 is complete

Transactions among Indian subsidiaries pursuant to contract with their parent cos. out of purview of

IT/ILT : Where assessee sold its medical imaging business to another Indian Company namely 'C' Ltd. in pursuance of larger transaction whereby holding company of assessee sold its imaging business to holding company of 'C' on global basis, since both transactions were independent of each other and there was no international element involved in assessee's transaction, revenue authorities were not justified in making transfer pricing adjustment to transaction entered into by assessee

Services offered by day nursery or crèche for children are liable to service tax

ST/ECJ : Day nursery/crèche for children run by an individual lady is liable to service tax, except where it amounts to pre-school education falling under negative list under section 66D(1)(i) of Finance Act, 1994

No disallowance under sec. 40(a)(ia) if taxes withheld were paid before due date of filing of return

IT: Where tax deducted at source during previous year relevant to and from assessment year 2005-06 was paid to government on or before due date of filing of return of income, no disallowance under section 40(a)(ia) could be made

Voters likely to get ‘None of the above’ button in EVM in forthcoming elections; SC gives right of n

CL : Direction of SC for provision of 'NOTA' (None of the above) button in EVM to enable voters to exercise their right not to vote while maintaining their right of secrecy

Pre-deposit not demanded from sub-contractor as tax on whole value was already paid by contractor

ST: Where contention of assessee, a sub-contractor, is that service tax liability had been discharged on whole value of transaction by main contractor including value of service rendered by them, there was no need to order any pre-deposit

No reassessment to curtail sec. 10B relief if AO couldn't prove failure of assessee to begin product

IT : Where assessee, an export oriented undertaking, claimed that it purchased raw material in form of ROM and finished goods of various grades being manufactured therefrom had been exported and Assessing Officer held that assessee did not purchase ROM and accordingly curtailed its claim for deduction under section 10B, in absence of any evidence to show that what assessee purchased was not ROM, conclusion drawn by Assessing Officer was unsustainable

Entities carrying on diverse aspects of one business with their independent finances can't be deemed

CL: Separate Corporate entities carrying out different aspects of same business cannot be treated as one especially when there is no inter-mingling or dovetailing of finances of two companies

Deposit in bank account deemed as undisclosed income as assessee failed to prove its legitimate purp

IT : Where additions were made as cash credits in absence of evidence to show that money was received for making payments to various persons, assessee's appeal could not be allowed

Application for condonation of delay and evidences in support

ST: Where application for condonation of delay does not mention number of days of delay and is also not accompanied by evidences, it is liable to be dismissed for default

HC upholds penalty as assessee failed to explain relevance of seized docs to justify its default in

IT: Where in response to notice issued by Assessing Officer, assessee did not file return taking a plea that relevant documents had been seized by department during search proceedings, in view of fact that relevancy of said documents was not explained and, moreover, assessee was in possession of relevant books of account, assessee's plea was to be rejected