IT : Mere non-compliance of a notice under section 142(1) having no terms or requirements, cannot be sufficient reason for making assessment under section 144
Sunday 27 October 2013
Transportation of goods to depots is an eligible input service
ST: Outward freight for transportation of goods to depots is an 'input service' eligible for credit
Buyer should withhold tax from sum paid to a non-resident co-owner to acquire a house property
IT/ILT: Where assessee purchased a property jointly owned by co-owners, in view of fact that one of co-owners of property was a non-resident, assessee was required to deduct tax at source under section 195 to extent sale-consideration was paid to said co-owner
Mere compliances with requirements for sec. 80-IA relief isn't enough to grant immunity from conceal
IT : Merely because assessee complied with statutory procedural requirement of filing prescribed form and certificate of Chartered Accountant as required for claiming deduction under section 80-IA, it could not be absolved of its liability to pay penalty under section 271(1)(c), if act or attempt in claiming such deduction was not bona fide
Prices Of Staple Vegetables Shoot Up In Kochi
October 27, 2013
Though prices of most vegetables have cooled in the weeks following Onam, the prices of onion, ginger, potato and tomato have got hotter over the last fortnight.
The prices have skyrocketed largely due to the shortage of supplies caused by crop loss, which traders here blamed on the extended monsoon.
While best quality ginger was being sold at Rs.120 a kg in the retail market, medium quality ginger was selling between Rs.60 and Rs.80 a kg in retail outlets in the city. The price of ginger in September was Rs.160 a kg; the price peaked during Onam.
It has been a steady rise for ginger throughout the year with price of the produce ruling firm at Rs.60 a kg in March this year.
Medium quality potato was selling at Rs.30 a kg in the retail market on Saturday; the price has been ruling steady for over a month. The price of best quality potato was Rs.24 a kg in March.
Onions also continue to hog the limelight. The price of medium quality big onion was Rs.70 a kg in the city markets.
The price of the bulb had peaked ahead of Onam and then cooled a little though the early months of 2013 gave an indication of the shape of things to come. The price of onion was Rs.20 a kg in March and it went up to Rs.55 kg in September.
Union Minister of State for Food, Consumer Affairs and Public Distribution K.V. Thomas told The Hindu over phone that he expected the onion price to come down within a week.
He claimed that the arrival of imported onions would have a defining impact on the market. Onions are being imported by the National Agricultural Cooperative Marketing Federation.
The price of tapioca has not come down and rules almoston par with some varieties of rice at Rs.30 a kg.
The price of the tuber has risen rapidly from last October, when it cost Rs.12 a kg. The price of the tuber went up to Rs.20 a kg in March this year.
Extensive loss of crop due to flooding of fields during the heavy rain in June and July has been blamed for the high price of tapioca, a staple crop throughout the year.
The price of the nendran variety of bananas continues to be high at Rs.56 a kg in the retail market. The price has not eased much since early this year though the Onam season saw it peak at Rs.62 a kg. Beetroot (Rs.24 a kg in the retail market); bitter gourd (Rs.40), vegetable cowpea (Rs.40) and green chilli (Rs.40) make up the list of other items that are on the everyday shopping list.
The price of tomato rules at Rs.40 a kg in the retail market now. The price has risen from Rs.16 a kg in October last year to Rs.20 in March and Rs.30 in September this year.
Source:-www.thehindu.com
Speciality Chemicals Market May Reach $70 Billion By 2020: Report
27 Oct, 2013
MUMBAI: Indian speciality chemicals market has the potential to reach $ 60-70 billion by 2020 from the present value of $ 23 billion, a report said.
"Indian speciality chemicals market is currently valued at approximately $ 23 billion and has shown a strong growth at 14 per cent per annum over the last 5 years. Our estimates show that Indian speciality chemicals market has the potential to reach $ 60-70 billion by 2020," Tata Strategic report on 'Indian Chemical Industry' said.
Although the growth rate is encouraging due to small base, the consumption and overall penetration levels of speciality chemicals and additives are still very low in India.
With increasing consumption and high growth in end use industries several speciality chemicals would see a point of inflection in next 3-7 years, the report said.
Domestic demand of speciality chemicals is expected to follow an accelerated growth path. This demand is mostly driven by the strong growth outlook for end use industries. This, along with increased adoption of speciality chemicals and newer applications, can propel the growth further.
Indian speciality chemical manufacturers have strong presence in export market also.
APIsBSE 0.00 % and colourants (including dyes and pigments) are the key products exported. India exports speciality chemicals to nearby Asia-Pacific countries which don't have competitive scale of production.
India also exports to developed countries of Europe and USA where it leverages its low cost of production and quality talent pool.
Ability of companies to comply with global regulations and India's manufacturing competitiveness has helped the export market grow significantly.
The key speciality segments in India are agrochemicals, paints coating and construction chemicals, colourants, fine chemicals, personal care chemicals and aroma chemicals.
Going ahead innovation and sustainability initiatives are expected to be major factors for competitiveness. Development of processes/ products which eliminate or reduce the use of hazardous substances could become the key priority of producers. Consumers would be expected to pay premium for green chemistry and environmental preservation initiatives and appreciate this globally, the report said.
Moreover, stringent regulatory norms could further push the need to innovate cost effective industrial green chemicals.
Currently, the domestic speciality chemical producers also face challenges related to feedstock availability, higher operational costs, outdated technology/ process, limited investment in R&D & a negative perception amongst end consumers.
Apart from depending on regulatory interventions, Indian players should come together and pro-actively work towards collaborative investment to avert global competition, it said.
Source:-economictimes.indiatimes.com
Cotton Price Under Pressure On High Output, Low Exports
Oct 27 2013
The production of cotton, like other kharif crops, has been higher this time. A bigger crop is expected to bring down cotton prices further in the short term. However, much will depend on government policies and demand from China to determine whether prices get firm after Diwali.
“As per available estimates, the production this year is on the higher side. Against 340 lakh bales last year, we would probably see 370-380 lakh bales coming into the market this year,” said Ajitesh Mullick, assistant vice-president for retail research at Religare Commodities.
Most cotton growing regions of the country has received normal to higher rainfall this year, which has increased production not just of cotton, but all kharif crops. The rain also helped the sowing of rabi crops.
“While increased supply has brought in bearish sentiments in the market, demand from China too is expected to be lower this time,” he said.
Market reports said Chinese imports of cotton should drop by around 20 per cent this year. Chinese purchases were down 36 per cent between January and July to 810,311 tonnes compared with the same period in 2012, as per Chinese customs data. China, which holds around 60 per cent of global cotton stocks, is reportedly preparing to end its stockpiling programme to support its farmers.
Kapas prices in the Multi Commodity Exchange have dropped from Rs 1,100-Rs 1,150 per 20 kg level in December last year to around Rs 975. Increased production and lower exports are expected to bring down the price to Rs 940 or Rs 950 in the short term.
“In October, new arrivals start coming to the market. The market will wait for the prices to cool down. Usually demand picks up after Diwali. By the end of the year, prices generally remain firm while they remain subdued between January and April, when there is least activity in the market,” said Mullick.
However, much depends on export policy. If the government eases restrictions on exports due to surplus production, prices may get firm.
Last week, a group of ministers (GoM) headed by agriculture minister Sharad Pawar rejected a textile ministry proposal to impose a 10 per cent duty on overseas sales of cotton beyond a declared exportable surplus.
The GoM found that as country’s cotton production has been increasing every year and there should be no restriction on export of raw cotton, as it would penalise farmers. The country consumes around 250 to 260 lakh bales of cotton, while over 100 tonnes is usually sold overseas. If the export demand picks up by Diwali, prices can get firm by mid-December.
“The price can move up to Rs 1,050 level, but getting back to last year’s Rs 1,150 level looks difficult,” said Mullick.
Source:-www.mydigitalfc.com
Indian Rupee Opens Higher At 61.40 Per Dollar
Indian rupee gained 6 paise in early trade Monday to 61.40 per dollar as against Friday's closing of 61.46.
According to Agam Gupta of Standard Chartered, currency markets are expected to remain muted and cautious today ahead of monetary policy review tomorrow. "The range for the day is seen between 61.25-61.75/USD," Gupta said.
Source:-www.moneycontrol.com
Rain Brings Port Operations To Crawl
VISAKHAPATNAM: Cargo handling operations in at least eight berths have been hit at the Visakhapatnam Port Trust (VPT) due to the incessant rains over the last 72 hours. Ships docked at the port have neither been able to load or unload cargo, resulting in heavy losses for vessel operators.
The heavy rains have also brought to a standstill the conveyor system handling iron ore during the last three days as part of it has got inundated. According to sources, the delay in handling cargo to the tune of around 2.4 lakh tonnes of cargo has caused losses of around Rs 60 crore to the industry. According to VPT sources, vessels at five berths handling dry bulk and break bulk cargo in the inner harbour, including EQ (East Quay) 3 to 7, have been unable to discharge cargo due to continuous rains. At the same time, cargo handling operations of at least three berths of WQ (West Quay) 3 to 5 in the inner harbour have also been hit due to the downpour, apart from the two berths (OB1 and 2) in the outer harbour.
While operations at the Visakha Container Terminal Private Limited continued, sources said the pace of operations at the terminal, which usually handles around 25 containers per hour under each crane, has slowed down with the terminal now handling around 15 to 17 containers per hour. Industry sources said that cargo including edibles such as maize, pulses and other materials such as fertiliser have not been unloaded due to the heavy rains. In another worrying sign for the port, a shipping source said, "The iron ore belt has got inundated. Ships with cargo that is not compatible with rain are now stuck and unable to move out. Since berths are also not vacant, many vessels have been waiting outside for two days now. There is a total mechanical failure on the West Quay."
Slamming VPT for failing to take any measures, he said, "In a meeting held on Friday, the port authorities expressed their helplessness on the issue. They said nothing can be done till the rains stop." A custom house agent said, "Nearly 90% of the port operations have come to a standstill. Except petroleum products and containers all other operations have stopped. Iron ore handling has also stopped. We are expecting no demurrage for anyone as it's a natural calamity."
However, he put the number of ships unable to move out at a higher number. He said, "Twenty ships are berthed and not able to move out and at least 20 more are waiting at the anchorage." Expressing worries over the rains, a stevedoring agent said, "Vessels are just sitting there and our customers don't want to listen to reasons. It's really been a terrifying wait for us due to the rains."While pointing out that incessant rains were beyond anybody's control, a stevedore said, "If it is for one day, it's manageable. But when work is disrupted for 3-4 days continuously, nobody can do anything. The rain is interfering with work.
The last time work was hit so badly at the port was probably when the trade unions went on strike a decade ago." Meanwhile, due to the stoppage of port operations, nearly 600 lorries involved in evacuation of cargo from the port have also come to a complete halt. A lorry operator said, "For the better part of the past one week, not even a single lorry has been able to take out any cargo due to the rains." Admitting to the disruption in port operations, VPT deputy chairman GVL Satyakumar said, "Operations are not going on as per the normal routine. Some iron ore and fertiliser cargo cannot be handled during rains.
These are the two commodities that are affected. In terms of throughput, we do an average of around 1.5 lakh to 1.7 lakh tonnes per day, but now we are doing around 90 to 1 lakh tonnes per day." Confirming that the iron ore conveyor had stopped, he said the ground conveyor system has been affected by water logging. However, he said, "We are doing pretty well as compared to other ports." He also confirmed that nearly 20 vessels are in the waiting due to the effect of heavy rains on operations.
Source:-timesofindia.indiatimes.com
Assam To Produce Onions For Reducing Import
GUWAHATI: Prices of onions in Guwahati are ranging between Rs 70 and 80 a kg with no signs of any fall in the near future. The Tarun Gogoi-government, in order to keep onion prices under check, has decided to go for large-scale cultivation of the bulb and reduce dependence on imports.
The agriculture department's directorate of horticulture and food processing has identified 21 districts where the chief minister's onion mission will be implemented from November 1.
Officials said sowing will start from November 1 and the crop will be ready for harvest by March next year. The target is to produce 1,00,000 tonne of onion against the present production of 25,000 tonne, they added. "Onion cultivation and harvest season varies from state to state. For Assam the season is between November and March," an agriculture official said.
Onion production in Nasik, from where the major part of the produce is imported, suffered this year because of heavy rain during harvesting season.
DHFP information officer Mowsam Hazarika said an area of 2,000 hectares in 21 districts will be brought under onion cultivation. An agrifound light red (ALR) onion seed variety will be used for cultivation, he added. "ALR is an improved variety of onion seed and has been procured from the National Horticultural Research and Development Foundation. The seeds have already been distributed among selected farmer groups. Each group will cultivate around five hecter," he added.
Horticulture officials said germination tests for the ALR variety in the state have shown more than 90% success. The districts identified for this mission are Barpeta, Goalpara, Kokrajhar, Bongaigaon, Dhubri, Nalbari, Kamrup (including Kamrup-Metropolitan district), Darrang, Sonitpur, Nagaon, Morigaon, Golaghat, Jorhat, Tinisukia, Lokhimpur, Dhemaji, Cachar, Korimganj, Baska, Karbi Anglong and Sivasagar.
Source:-timesofindia.indiatimes.com
Transfer of shares from promoter’s account not an immoral act of circular trade or creating false vo
CL : Where appellant purchased shares of a company in an auction by making direct payment to bank with which those shares were pledged and, thereupon, he did not transfer those shares to second level entities or to any other person, in such circumstances mere fact that shares were transferred to appellant from account of one of promoters would not result in drawing a conclusion that he was guilty of circular trading or creating false volume in scrip
Smart things to know about transfer of EPF account
1) The contributions to the Employee Provident Fund (EPF) account are made by the member (employee) and the employer. A new account is opened every time the employee changes jobs.
2) The contributions made by the previous employer and employee, as well as the interest earned on it, continue to be held in the previous account unless it is transferred to the new one.
3) The older accounts can become inoperative and may not earn any interest. The EPF accounts become inoperative if no contribution is made for a continuous period of 36 months.
4) Since no interest is paid on the balance in inoperative accounts, it is essential for employees to get this amount transferred to the new EPF account and earn interest on the consolidated amount.
5) The EPFO has launched its online transfer facility from October this year. The employees will be able to request for such transfers through its Online Transfer Claim Portal (OTCP).
The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre and Arti Bhargava.
How should a young investor deal with a new inheritance?
Shaila Shah has just inherited a house from her deceased grandmother. She lives with her husband and child in Mumbai. She paid a high rent during the first three years of staying in the city, but did not have adequate income to afford a property. Her husband thinks they should sell the property and buy a new one, since the EMI will be lower if a large sum is paid after selling the house. How should Shah deal with her new inheritance?
Young investors like Shah are unlikely to have built a lot of wealth. The inheritance makes her wealthy, but comes with inflexibilities. It will not be possible for her to access parts of the property's value for any need. It is a bulky asset, which can be sold to realise its worth, or can earn a small rental yield. It's usefulness for Shah lies in its ability to help her save more than she did earlier.
Since there is no rental outgo now, Shah can use the savings to build wealth in addition to the new asset. If she builds equity and debt assets with the savings, in a few years, she will have a balanced portfolio that will be more accessible and flexible. So, if she wants to provide for the education of her child, she may not be able to sell the house, but can liquidate the investments she makes from the rental savings.
Selling the house to buy a new one might constrain Shah unless the latter costs the same. Adding an EMI to income at this stage will reduce her ability to save and concentrate her wealth in a house. She will also incur additional costs on stamp duty, registration and fees, besides the interiors of the new house. Shah should use her inheritance to augment her savings, and should take on any other commitment only when her finances are on a firm footing.
The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre and Arti Bhargava.
Maximise returns: 5 things that long-term investors do differently
By Uma Shashikant
A frequent question asked by investors is: how long is long term? As a research student working with annual returns, I would have answered the question with the results of my number-crunching exercises. Having witnessed several market cycles since then, I would now say that long term is infinite. A long-term investor would want to hold on to his investments forever.
It's more about attitude than number. When we choose a career, we do not invest in ourselves hoping to 'cash out' some time soon in order to pursue something else. Even those who switch careers successfully give their all to what they do. They invest in their careers as if it was all that they would do for a long, long time. Long-term investing requires this attitude. What would we do differently if we were long-term investors?
First, long-term investors take the time to understand what they are doing and why. Those who buy an IPO because they have made money mostly by buying IPOs earlier are not long-term investors. They are only replicating a lazy tactic to make money. If there is no method to selecting investments, they are not longterm investors. Such people want to know all about the investments they are buying. They spend time and effort on learning, research and analysis. Many take offence when I tell them they have bought a stock or a mutual fund on a whim or a tip. I then ask them to list their investments and tell me why they bought those.
By the time we reach the fourth item, the truth is out. Most investors buy without adequate groundwork and think that if they hold it for a long time, they are long-term investors. This is not true.
Second, long-term investors understand that returns will be reasonable; they do not expect miracles. If they manage a multi-bagger stock or a winning fund, they know that in the process of acquiring this star, they have also bought a few not-so good investments.
They may have exercised the same diligence in selecting the latter. Despite this, all their investments will not rise and shine. Long-term investors know that there is no formula for picking winners, that they will be fine on an average, and hence, keep their return expectations normal. If they earn a return of 15-16% in the long term, they have beaten inflation, earned more than the bank deposit rates, and built reasonable wealth. Getting to this number involves a few losing picks and a few multi-baggers, and longterm investors know this is the process to build wealth. They do not insist that each investment earn a high rate of return every year.
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