IT : Where assessee-State educational Board was neither controlled nor financed by State Government, and it earned income by selling books and registration, exemption under section 10(23C)(iiiab) could not be granted
Tuesday 5 November 2013
INCOME TAX APPELLATE TRIBUNAL : BANGALORE BENCHES : BANGALORE CONSTITUTION OF BANGALORE BENCHES FOR THE PERIOD FROM 04-11-2013 TO 07-11-2013
[unable to retrieve full-text content]INCOME TAX APPELLATE TRIBUNAL : BANGALORE BENCHES : BANGALORE CONSTITUTION OF BANGALORE BENCHES FOR THE PERIOD FROM 04-11-2013 TO 07-11-2013 {ad} For more information...
INCOME TAX APPELLATE TRIBUNAL : KOLKATA BENCHES : KOLKATA CONSTITUTION OF KOLKATA BENCHES FOR THE PERIOD FROM 04-11-2013 TO 08-11-2013
[unable to retrieve full-text content]INCOME TAX APPELLATE TRIBUNAL : KOLKATA BENCHES : KOLKATA CONSTITUTION OF KOLKATA BENCHES FOR THE PERIOD FROM 04-11-2013 TO 08-11-2013 {ad} For more information...
Official: only 30 per cent of registered pay Service Tax
Only 30 per cent of those registered from the Service Industry pay the tax while the remaining 70 per cent do not pay either because they are not aware of their responsibility or are registered despite being out of its ambit.
Making an elaborate presentation on the need to deregister from the Central Excise, Customs and Service Tax with regard to Service Tax if the service provider was below the threshold of Rs.10 lakh, Guntur Central Excise and Customs Commissioner C.P. Rao wanted everyone to make use of the VCES before December 31.
At a programme organised by the Confederation of Indian Industry Vijayawada Chapter at The Gateway Hotel recently, Mr. C.P. Rao said that people need to find out if they were in the ambit of Service Tax and register themselves and take advantage of the one-time scheme. The Service Tax had been existing for the past 18 years and people should understand it better now, he added.
Additional Commissioner S. Khader Rehman clarified the doubts of some of the corporate houses and also small entrepreneurs about the exemptions available to them. “The thumb rule now is to find out if you are in the Negative List of Service Tax and if you are not in that list and you are a service provider, you must register and pay the tax,” he observed.
One of the common complaints about service tax in starred-hotels, the Commissioner said that 40 per cent of the bill usually comprises cost of the food and remaining service on which tax had to be paid. “We do not know if the hotels were showing us the same bills they give you,” but he opined that they needed to be more transparent. The CII Vijayawada chapter chairman M. Lakshmi Prasad and Vice-Chairman V.V.M. Krishna were also present.
Notifying an area for urbanization doesn’t being an agricultural land situated therein within realm
IT : Merely notifying land for purpose of urbanization /development does not convert agricultural land into non-agricultural land liable to wealth tax
Link between TDS and actually saving tax on investments
Arnav Pandya There is often a lot of confusion in the minds of the investor about savings of tax and the way to go about it. One area where this leads to a lot of problems is that of Tax Deducted at Source (TDS) and it needs to be clarified so that the individual does not end up being a defaulter on the final amount of tax that he has to actually pay. Here is a closer look at the nature of the tax deducted at source and its link to the actual taxation.
Tax deducted at source The TDS represents the amount that is actually deducted by the person making a payment to someone else and then making the net payment. The amount that is deducted is paid to the government as the tax. For example take a situation where there is a fixed deposit kept with a bank.
If the bank pays an interest of say Rs 20,000 then it would have to deduct tax on the payment and assuming that 10 percent is deducted (without considering cess for ease of understanding) then the bank will pay the net interest of Rs 18,000 to the individual. The Rs 2,000 that it has deducted from this figure will be deposited with the government against the name of the depositor so it will reflect as it the person has paid the required amount of tax on the earnings made. Conditions
There are certain conditions that need to be fulfilled for the TDS to come into action so for example the base would start with the fact that the income crosses a certain limit. This is done to ensure that the TDS is done only for certain items where the income is high. Continuing with the previous example, the limit for enacting TDS in fixed deposits is Rs 10,000 per bank per branch. Hence, the bank will deduct the figure only when the income of the individual has crossed this figure. Often individuals undertake a lot of effort to ensure that they fall outside the TDS net but in effect this is a pointless exercise unless the person has a zero rate of tax to be paid.
Actual liability The reason why trying to save oneself from TDS is pointless is due to the fact that this does not alter the actual nature of taxation on the individual. This means that the actual taxability of the income of the individual is a separate matter and has no link with the TDS so saving some amounts on TDS will not reduce the overall tax liability for the individual.
The only exception is where the final rate of tax is zero so saving TDS will not have any net impact. The final tax liability remains and the TDS has to be seen as a means of fulfilling the total tax liability. In the case of the fixed deposits the income earned from the deposit is taxed right from the first rupee. The rate applicable for the tax would be the rate under which the income will fall for the individual. So if the person is already in the 30 per cent slab then the added income from the fixed deposit will be taxed at that particular rate.
The good thing in the case of the total tax liability and the TDS is that the latter is counted as part of the tax paid. When the final calculation is made, it is only the net figure that remains to be paid. The individual thus has to be very careful when they look at the position and they must ensure that their total tax obligation is met. Not suffering any TDS does not mean that the actual liability goes away as this will remain till it is fulfilled.
Direct taxes bill likely in winter session: Chidambaram
The Direct Taxes Code Bill, which seeks to replace the archaic Income Tax Act, is likely to be placed in Parliament during the winter session, Finance Minister P Chidambaram said today. "We are trying to bring DTC in the next session," the minister told reporters here. The winter session may start in early December, after the completion of assembly elections in five states. The minimum alternate tax may be levied on book profit and not on gross assets, sources said. Further, the securities transaction tax is likely to be retained, as against the recommendation of the Standing Committee on Finance that the levy be abolished. At present, tax is levied on income of Rs 2-5 lakh at 10 per cent, Rs 5-10 lakh at 20 per cent, and above Rs 10 lakh at 30 per cent. Further, those earning more than Rs 1 crore have to pay a surcharge of 10 per cent. |
Confident Of Keeping Cad Below $60 Bn: Fm
Finance minister P Chidambaram on Tuesday reiterated that India's current account deficit (CAD) will be contained below $60 billion this fiscal as against an earlier estimate of $70 billion. The minister also said the government and markets are prepared for the anticipated phased withdrawal of the monetary stimulus by the US.
"We think we can peg it (CAD) at $ 60 billion or below. I am confident that we can do even slightly better than $60 billion," a news agency quoted Chidambaram as saying in an interview to a TV channel. India's current account deficit had reached an all-time high of $88.2 billion or 4.8% of GDP in 2012-13 mainly on account of huge imports of oil and gold.
Chidambaram also said that the country would be prepared to deal with any impact of the US Federal Reserve's gradual stimulus withdrawal.
"We now know it (tapering of the stimulus) will happen...it will happen perhaps in January or February, markets and the government are now prepared for this, in the sense we know it will happen,." he said. He also said the government will contain its fiscal deficit, improve the revenues, contain expenditure and take steps to prevent excessive speculations on the currency.
Source : financialexpress.com
Major China Trade Fair Sees Export Orders To Us Rise 12%
05-Nov-2013
Export contracts signed at a major trade fair in China hit their lowest in four years, state media reported, indicating foreign demand for the country's goods is still weak.
The value of export deals signed at the China Import and Export Fair reached 194.61 billion yuan (US$31.7 billion), the lowest since the depths of the financial crisis in 2009, the official Xinhua news agency said after the event closed Monday.
The figure also marked a fall of 3% from the last autumn session and a 10.9% decline from the spring session this year, according to a statement on the fair's website.
The twice-yearly event -- also called the Canton Fair after the former foreign designation for the southern city of Guangzhou -- was created in 1957 and is the largest trade event in China making it a barometer of the country's foreign trade, Xinhua said.
"The decrease from both the spring and last autumn sessions indicated that the world economic recovery remains on an uncertain and unstable course, which continues to challenge the stability and development of China's foreign trade," the report quoted fair spokesman Liu Jianjun as saying.
Exports to emerging markets including India, Brazil and those in Southeast Asia, generally fell year on year, with those to the Middle East leading the decrease with a drop of 15.5%, according to the fair's statement.
Shipments to the United States and Japan increased 11.8% and 42.8% year-on-year respectively, in contrast with a fall of 2.4% to the European Union, it added.
The three-week fair opened on Oct. 15.
China's exports rose 8% year-on-year in the first nine months of the year, slightly faster than the 7.4% in the same period in 2012 but far slower than double-digit increases in the previous two years, official data shows.
The sluggish foreign trade performance has cast gloom on the country's export-driven economy, with concerns rising that a recovery in the third quarter, when economic growth picked up to 7.8%, may not be sustainable.
Source:- industryweek.com
Coal India Bets On Steel Mills To Boost Profit.
Coal India Ltd, the world’s biggest producer of the fuel, will raise output of the metallurgical variety to boost earnings after discounted sales to power utilities led to its first profit drop in at least five quarters.
“The state-owned company plans to start work on four new mines that will annually produce about 12 million tonnes, a third of which will be the coal used in steel making,” Ashoke Sarkar, technical director at unit Bharat Coking Coal Ltd, said in an interview. “The new lines will fetch about Rs.3,000 crore a year at current prices of coking coal when full production starts in three years,” he said.
Metallurgical coal sells for three times the price of the thermal type and a jump in production may help revive growth at the company, which is struggling with frequent unrest among workers demanding wage increases and government directives to increase supply to power plants at subsidized rates.
“Coking coal is an important part of our portfolio, and it is important to raise its production to help our steel companies,” Sarkar said. “All the four mines will need underground mining, which will help us limit the damage to the environment and tap the resources buried deeper.”
Indian steelmakers including Tata Steel Ltd, the nation’s biggest, and Steel Authority of India Ltd (SAIL) also stand to gain as better supply may help them cut their dependence on imports of the blast furnace fuel.
Not suitable
“The mines are expected to start production in a year and reach full capacity in three years,” Sarkar said. “Kolkata-based Coal India expects a 12% internal rate of return on its investment in the mines,” he said.
The miner produced 43.7 million tonnes of coking coal in the year ended 31 March, about 9.7% of its total output.
“The four new mines are located in the eastern state of Jharkhand. Their development will be outsourced,” Sarkar said.
“A large part of Coal India’s lower-grade coking coal gets supplied to power stations, as it isn’t suitable for use in steel mills. The company is setting up new washeries to refine such coal to make it more usable by steel producers,” Sarkar said. “Unit Bharat Coking itself will install 6 new washeries with a capacity of 18 million tonnes a year,” he said.
“Considering that coking coal is a scarce commodity in India and is in high demand, it brings incremental value to Coal India’s business,” said Deven Choksey, managing director at K.R. Choksey Shares and Securities Pvt. in Mumbai, which has a buy rating on the stock. “I estimate the company can make 2.5 billion rupees in net earnings when these four mines gain maturity.”
Burning mines
Indian steelmakers rely on imports to meet their requirement of metallurgical coal, even as the nation’s richest deposit of the fuel is wasted away in uncontrolled underground fires in the fields of Jharia in Jharkhand. State-owned SAIL, Coal India’s biggest customer, imports 70% of its needs, mostly from Australia.
Dependence on imports often exposes the mills to price fluctuations caused by bad weather or infrastructure constraints and losses on foreign currency loans taken for these purchases.
The makers of the alloy, backed by India’s federal steel ministry, have been lobbying to get access to the burning Jharia mine, saying their intervention and investments could save the resources.
Sales growth
Some analysts say they will look for actual output data before they start factoring the new coking coal into their Coal India earnings estimates.
“We would like to see some actual production to start coming out of the mines before basing our investment thesis on coking coal,” said Asyraf Salman, an investment analyst at London-based Somerset Capital Management, which owns shares of Coal India.
Sales at Coal India will grow 6% to Rs.72,380 crore in the year ending 31 March 2014, according to the median of 51 analyst estimates compiled by Bloomberg, the slowest pace in five years. Profit in the three months ended 30 June fell 17% to Rs.3,730 crore.
Coal India shares rose 1.4% to Rs.292.05 in Mumbai on 1 November. Indian markets were closed on Monday for the Diwali holiday. The stock has lost almost 18% in value this year, compared with a 9% advance in the benchmark S&P BSE Sensitive Index.
The government, which owns 90% of the company, is preparing for a 5% stake sale, from which it aims to raise as much as Rs.10,000 crore amid opposition from labour unions that have threatened to go on strike.
Bonus, wages
Workers won a pay raise for five years starting July 2011 and Coal India agreed to a 19% increase in bonus payments this year to win support for the share sale.
The miner is selling thermal coal at below-market rates to utilities with 78,000 megawatts of capacity after Prime Minister Manmohan Singh forced it to sign supply contracts to help increase electricity generation and boost growth. The company faces monetary penalties for failing to meet the obligations.
That, along with rising costs of fuel used to run machines and wages, is causing concern the miner’s profitability may decline further.
“Adding more coking coal is good for Coal India as it gives the company a free market,” said Giriraj Daga, an analyst at Mumbai-based Nirmal Bang Equities Pvt., who has a hold rating on the stock. It’s a difficult territory though and the company must keep costs in check.
Source : livemint.com
India's Rice Exports Seen At Record 11 Mn Tonnes: Usda
05-Nov-2013
India's rice exports are estimated at a record 11 million tonnes in 2012-13 marketing year ended September this year on bumper production and strong overseas demand, according to the US Department of Agriculture (USDA). Rice exports of India, the world's second largest rice producer, stood at 10.38 million tonnes in 2011-12 marketing year (MY) that runs from October to September. "MY 2012/13 export estimate is raised to a record 11 million tonnes based on preliminary official statistics for October 2012 to August 2013, and shipping data compiled by a private source for September 2013," USDA said in a report.
USDA has also revised upwards the rice export estimates for MY 2013-14 to 10 million tonnes from earlier projection of 9.3 million tonnes. However, exports are still expected to be lower than the record 11 million tonnes in previous year. Also read: India becomes leading rice supplier to Singapore "Based on the relatively strong export demand for Indian rice, both basmati and non-basmati, and sufficient domestic supplies, the MY 2013/14 rice export estimate is raised to 10 million tonnes," the report said.
"While exports of basmati rice are likely to grow further, total exports are likely to be lower than last year's record sales due to relatively tight domestic supplies of non-Basmati rice and food price inflation concerns in an election year," it added. Quoting market sources, the Department said exports of non-basmati rice have slowed down from in October 2013 due to the strengthening of the Indian rupee compared to the US dollar (current 61.5 from 65 in August/September). India had lifted the four-year ban on non-basmati exports in September 2011.
It had emerged as the world's largest rice exporter in 2012 ahead of its Asian counterpart Thailand. On production, USDA has projected an output of 105 million tonnes in 2013-14 as against 104.4 million tonnes in the previous year. The department "continues to estimate MY 2013/14 rice production at 105 million tons from 43.5 million hectare.
" The harvest of kharif rice is in full swing in northern states and initial harvest reports suggest good yields. "Crop damage was reported due to Cyclone Phailin in coastal Odisha and Andhra Pradesh, and ongoing floods due to heavy rains in some parts of Odisha, West Bengal and Andhra Pradesh. With rice at the grain filling stage, crop damage is likely to be heavy in the flood-affected areas," the report said. The department said it continues to estimate MY 2013/14 production at 105 million tonnes till an assessment of crop loss is made. "Market sources report that the crop loss due to cyclone and floods in the eastern coast could be in the range of 1-2 percent of forecast production," the report said.
Source:- moneycontrol.com
Indian Gold Premiums Fall, Imports For Domestic Use Resume
Gold premiums in India halved on Tuesday from last week because of unusually muted demand during the festival season and as supply was set to improve after some importing agencies began purchasing for domestic use. Local prices were USD 60-70 an ounce higher than London prices, compared with a record high of USD 130 an ounce last week.
India, struggling with a high trade deficit and weak currency, has been trying to curb demand for gold, the second-biggest import item after oil. It has made gold expensive for consumers by setting a record 10 percent import duty and made supplies harder to come. Imports had virtually stopped since late July, when the central bank required that 20 percent of all imports be re-exported. Importers have been buying for exporters first before supplying for domestic use.
"Premiums have come down as imports are happening through Bank of Nova Scotia and MMTC ," Bachhraj Bamalwa, director with the All India Gems and Jewellery Trade Federation, told Reuters. Bank of Nova Scotia is the biggest gold-importing bank in India, while MMTC is the biggest state-run gold trading firm. Premiums could fall to USD 30-40 by next week as imports pick up, Bamalwa said.
A source at an importing agency said it had brought in small lots in Ahmedabad and some southern Indian cities. The agency has yet to begin imports in Mumbai, India's financial centre, as it was waiting for performance data from exporters, the source said. The new rule on imports has made it compulsory for exporters to show what they have done with a first two lots of imported gold before importing a third. India celebrated Diwali and Dhanteras - the biggest gold buying festival - last Friday and over the weekend, but scarce supplies and higher prices deterred consumers, many of whom opted for alternative gifts.
Gold has a cultural value in India, which was the biggest buyer of gold last year, as many believe that buying it on auspicious days brings good fortune. India imported 23.5 tonnes in October compared with a record 162 tonnes in May. Demand in the rest of Asia was also subdued, with premiums remaining unchanged from last week.
Source:- moneycontrol.com
Diwali Pushes Onion, Tomato Up To Rs 80/Kg Again In Delhi
If you have been cooking onion-less curries for a month or so because of spiralling prices of the kitchen staple, you might soon start skipping tomatoes too. After a temporary relief from high vegetable prices last week, onion and tomato have again peaked to Rs 80 per kg each at several places across Delhi. Traders blame the rise on the sudden increase in demand over the Diwali weekend, but say that the prices are not likely to fall for another week.
On Tuesday, wholesale price of tomatoes in Azadpur mandi ranged from Rs 30 to Rs 50 per kg, much higher than even the retail price — Rs 18 a kg — at the market on October 15. Production of tomato this year has been hit due to heavy rains, with Delhi having to do with only 30-35% of the normal produce, sources in Azadpur said. However, after another week, fresh produce from Rajasthan should push down the price a bit.
Retail onion prices marginally fell to Rs 60-70 in the last week of October after fresh produce arrived from Alwar.
However, it was selling for Rs 80 a kg on Tuesday, Diwali demand having pushed it up.
"This is a ridiculous situation. When we were thinking that onion prices have started coming down, they have shot up again. What are we expected to cook without both onions and tomatoes? The government should redefine Indian cuisine," Meghna Awasthi, a teacher, said.
Tomato trader Ashok Kushi said, "There has been a sudden drop in supply of tomatoes as well. From the daily 30-odd trucks that used to come to the wholesale market, we have been getting only 8-10 in the past couple of days. Because of Diwali, several people are on leave. Even picking in the farms has stopped for a few days. Once workers start resuming duty after the festive season, prices will start coming down. However, it will take about a week".
Source:- timesofindia.indiatimes.com
Oil Imports From Iran Drop Sharply
Crude oil imports from Tehran have dropped by over 40 per cent this year.
With declining imports from Iran and no resolution to the rupee mechanism issue in sight, the government has already worked on a plan to substitute its imports from Iran by increasing its crude oil purchase basket from countries such as Iraq, Venezuela and Oman.
Iran had sometime ago conveyed to India its opposition to the 100 per cent rupee payment mechanism, and had refused to ship oil deliveries under this mechanism. It had said that it was going back to the 45 per cent rupee mechanism payment system, and the balance had to be paid either in euro, yen or rouble.
India and Iran had opened negotiations last month to arrive at some settlement on the issue, but are yet to resolve the issue. Similarly, the failure to make the oil insurance pool fund operational had badly impacted imports as major refiners in public and private sectors have been unable to source their crude imports from Iran due to lack of proper insurance coverage. The Rs.2,000-crore fund was to be financed through the contribution of Rs.1,000 crore by the Petroleum Ministry and a similar amount by state insurers, led by GIC. “The Petroleum Ministry is yet to release Rs.500 crore in shape of first instalment to make the fund operational, which is hampering imports. We are still awaiting a word from them on the issue so that things start moving in the right direction,’’ a senior Finance Ministry official said.
Recently, Petroleum Secretary Vivek Rae said India was targeting 13 million tonnes of oil import from Iran in 2013-14. It had already imported around two million tonnes till last month, and wanted to import another 11 million tonnes during the rest of the fiscal.
Since July, 2011, India had paid in euro to clear 55 per cent of its purchases of Iranian oil through Ankara-based Halkbank. The remaining amount due was remitted in rupee form in the accounts of Iranian National Oil Company in Kolkata-based UCO Bank. Payments in euro through Turkey ceased from February 6 this but the rupee payments for 45 per cent of the purchases continued through UCO Bank. Iran later agreed to take all of the payments in rupees.
India’s imports of Iranian oil have fallen to 194,000 barrels per day (bpd) during January-September, down from 324,000 bpd in the same period last year, according to latest official figures. The September volumes rose to 296,100 bpd from 151,000 bpd in August due to IOC importing two million barrels of oil from Tehran.
The September volumes were down 8.1 per cent from a year ago.
Source:- thehindu.com
Rupee Opens At 61.85 Vs Dollar, Lower 23 Paise
The rupee on Wednesday opened at 61.85 against US dollar on Wednesday. It was down by 23 paise. It closed at 61.6150 on Tuesday from its previous close of 61.74/75 as dealers cited talk of dollar sales from a foreign telecom company.
Traders also cite dollar sales from foreign banks on bunched up inflows after markets were closed on Monday for a public holiday. The rupee strengthens even as the benchmark BSE share index fell 1.3 percent from a record high hit in a special trading session on Sunday.
Euro fell to a near four-week low against the yen on Tuesday, hit by speculation the European Central Bank may signal easier monetary policy or even cut rates this week.
Source:- ibnlive.in.com
SEBI directs Co. to seek permission first before raising public funds and disclose sum already recei
SEBI: Direction to petitioner company to apply to SEBI for seeking permission to raise funds from public and indicating quantum of money already received
In a volatile market, take SIP route to build your portfolio
SIP investors in equity mutual funds have a different story to tell, despite the Sensex and Nifty remaining flat over the last three years. Investors who used the SIP route and invested a fixed amount of money in equity mutual funds at a specified date every month, have earned a return of more than 10% in the same period.
Most investors are aware of rupeecost averaging and the last three years are a classic example of it.
For example, a three-year SIP in Axis Equity Fund has given investors 14.01% returns. As compared to this, a lump-sum investment in the Sensex or Nifty would have given you a mere 1.36% and 1.02%, respectively.
SIPs help investors put in small amounts of money every month and invest in a staggered manner. "The markets have been volatile over the last three years. Investing in mutual funds through SIPs ensured investors accumulated more units when markets were hovering at lower levels," explains Rupesh Bhansali, head, mutual funds, GEPL Capital. This strategy seems to have paid off for investors. "As the indices move close to an alltime high, many of these investments are now showing healthy profits," says Rupesh Bhansali.
Most investors are aware of rupeecost averaging and the last three years are a classic example of it.
"SIPs help you buy more when the markets are low. When the equity markets remain volatile for long periods and eventually move up, investors in SIPs make money," says Chandresh Nigam, managing director and chief executive officer, Axis Mutual Fund. He further points out that many active fund managers have managed to beat the benchmark in the long-term. A SIP in a well-managed diversified equity fund can improve your returns over the medium- to long-term. Many experts believe that investors should not time the markets and use the SIP route to investing.
"SIP is the best method of investing in equities, as we do not know which direction, up or down, the markets will go," explains Harshvardhan Roongta, principal financial planner, Roongta Securities. Mutual fund SIP can be used to build a diversified equity portfolio. Experts prescribe a mix of large-cap and midcap oriented equity funds in line with one's risk appetite. Typically, mid-cap funds should not be more than 40% of your equity allocation. You can pick up five-star rated funds by independent agencies such as Value Research and Morningstar. You can also consult your advisor.
Rupesh Bhansali recommends ICICI Focused Bluechip Fund, BNP Equity Fund, UTI Opportunities Fund among large-cap funds and Magnum Global Fund, IDFC Premier Equity Fund and ICICI Discovery Fund among mid-cap funds. But if you do not know how to choose the right fund or are unsure if the fund recommended by your advisor will emerge as a winner, you could even opt for an SIP in an index fund.
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