SEZ : Uniform List of Services To Be Followed in SEZs
Tuesday, 19 November 2013
Extended period not invocable for recovery of interest unless short duty has been paid due to fraud
Excise & Customs: In case of retrospective price-rise, assessee is liable to pay differential duty thereon along with interest and time-limit of section 11A of Central Excise Act, 1944 will apply for recovery of such interest as well
HC treats profit from sale of shares as cap. gains and not business income because it was earned by
IT : Where assessee, a salaried class person, earned profit amounting to Rs. 70 lakhs on sale of shares, Tribunal was right in holding assessee as investor and treating gain as capital gain as against business income treated by Assessing Officer
Postal Department Drops Gold Coin Tender.
The department of posts under the ministry of communication and information technology has cancelled its tender for the supply of gold coins to be sold through various post offices. The tender was floated on November 6 despite a government ban on gold coin imports. It was to close on November 27. Without assigning any reason, the postal department - in a communication posted on its website on Tuesday - said that the tender was being cancelled.
The department's tender for gold coins, which are mostly imported, was floated at a time when the finance ministry had put a ban on import of gold coins and had also asked banks not to sell these coins, mainly to address India's rising current account deficit (CAD).
The cancellation came after S Sudhakar Reddy, general secretary, Communist Party of India (CPI), wrote to the PM to look into the conflicting position the two ministries were taking and also requested to make the government's position clear on import of gold coins. "If banks selling gold coins are strictly being discouraged, how could post offices selling gold coins be encouraged?" Reddy had questioned.
During the day, at a press conference in the city, finance minister P Chidambaram said that there was no difference of opinion between the two ministries and the postal department would withdraw the tender. On Monday, TOI had pointed out the diametrically opposite positions that the two central ministries had taken relating to gold coins and its imports.
In fiscal 2013, India imported 850 tonnes of gold valued at about $58 billion (nearly Rs 3.6 lakh crore), which was one of the main reasons for the country's burgeoning CAD that year. In the current fiscal, thanks to some of the government's steps to contain gold imports, the figure is estimated to drop to around 800 tonnes, but that is still a large figure.
The ban on gold coin imports was imposed in August through the Reserve Bank of India. And on October 22, finance minister P Chidambaram had said that the ban on the import of gold coins and medallions would continue. He also said that banks were directed to follow the ban strictly.
"Despite the...ban, I am surprised to see that while the finance minister holds a specific view on the import of gold coins, the ministry of communications and information technology holds a divergent view on the same," Reddy had written to the PM.
Due to the ban on imports of gold coins, not only banks, even private companies which were earlier selling gold coins, have stopped selling these coins which are popular as gift items and also investment products. Due to the ban, during the just-ended festive season not many people could buy gold coins for gifting, and were forced to look for alternatives, industry people said.
Source : timesofindia.indiatimes.com
High related party transactions amongst Sahara group validated transfer of case for centralized asse
IT: Where reasons to have centralized assessment done, was that assessee earned substantial revenue from related parties, would be valid transfer order under section 127
Food Processing Industry Attracts Nearly $1970 Millions Fdi In 13 Years In India.
Food processing industry in India has attracted Foreign Direct Investment worth $1970.09 millon from April 2000 to July 2013, according to the latest data published by Department of Industrial Policy and Program, which suggested the potential of the sector, Tamil Nadu Governor, Dr K Rosaiah said today.
There was an increase in participation of entrepreneurs, bankers, financial institutions in this sector in Tamil Nadu and there was the need to take advantage of huge investment, Rosaiah said, after inaugurating a conference on +Likning growth drivers of Food processing industries, market, quality with food safety and skill,+ organised by ASSOCHAM, here.
Tamil Nadu Government was working sincerely to realize the mission to promote industries, specifically identified as 'thrust areas' in food processing and agro-based industries and providing every support to enhance the level of food processing to increase value addition and thus increase India's share in global food trade, he said.
Ravi Sannareddy, Chairman, Southern Region Council, Assocham, said the food processing industry was on an assured track of growth and profitability and was expected to attract phenomenal investment in capital, human, technological and financial areas.
Since the total food production of the country is estimated to double in the next 10 years, there is an opportunity for large investments in food and food processing technologies, Sannareddy said.
Source:- economictimes.indiatimes.com
European Union Keen On Concluding Fta Talks With India By 2014.
The European Union is keen on concluding the long-pending negotiations for the Free Trade Pact with India by next year, Ireland Minister for Enterprise, Jobs and Innovation Richard Bruton said on Tuesday.
"The EU's ambition is to try to conclude the (India-EU) pact in 2014," Bruton told PTI here.Ireland is a member of the 28-nation bloc.
Noting that the Free Trade Pact (FTA) is important for long-term development and mutual benefit, Bruton said, "Both the sides have some concerns and it has to be ensured that the agreement does not affect their existing business structures."
The Irish Minister, who is on a five-day visit to India, is heading a business delegation of about 42 companies.
India and the EU are negotiating the Bilateral Trade and Investment Agreement (BTIA) since June 2007 and have missed several deadlines to conclude the talks due to differences among the two sides on the level of opening up of the markets.
Both the sides had failed to bridge substantial gaps on crucial issues, including insurance and data security status for the IT sector.
The EU side has been demanding significant duty cuts in automobiles, tax reduction in wines and spirits and dairy products and a stronger intellectual property regime.
On the other hand, India is asking the European Union to grant data secure nation. The matter is crucial as it will have a bearing on Indian IT companies wanting market access.
It also wants liberalised visa norms for its professionals and market access in services and pharmaceutical sector.
The two-way trade between India and EU stood at USD 91.3 billion in 2010-11.
Source:- zeenews.india.com
Adani, 17 Others In Race To Operate Privatized Ahmedabad Airport.
City-based Adani Ports and SEZ is among the 18 companies in the race to operate Sardar Vallabhbhai Patel International Airport. Along with Adani, city-based Sadbhav Engineering and a host of other players — including GMR, GVK, and Japan's Toyota Tsusho India — have filed the request for qualification (RFQ) document.
Officials of the Key Infrastructure Development (KID) cell of the Airport Authority of India held talks with representatives of 10 bidding companies for over two hours on Tuesday.
Based on the proposal put up by bidders, bidding will take place in second week of December. While Adani and Sadbhav are new entrants to the space, GMR and GVK group already operate airports — GMR operates New Delhi and Hyderabad while GVK handles Mumbai and Bangalore airports.
Others in the race include Essar Projects (India), Essel Infra Projects, DRA Infracon Projects, IRB Infrastructure Developers and IL & BFS Transport Networks.
The aviation ministry has decided to hand over the development, operations and management six Airports Authority of India-run airports in Chennai, Kolkata, Ahmedabad, Lucknow, Jaipur and Guwahati to private parties on a public-private partnership basis.
Source:- timesofindia.indiatimes.com
Mumbai Mulls Reclaiming Land From Arabian Sea
Almost 100 years after the proposal to create Back Bay Reclamation was mooted, the Maharashtra Government is once again exploring the possibility of creating an artificial island near the Jawaharlal Nehru Port Trust (JNPT) for various infrastructure projects.
High land prices in the area around Navi Mumbai, a suburb of the nation’s financial capital, have forced the state government to look towards the vast expanse of the Arabian Sea for expanding some development projects.
“A Dutch company is being consulted in connection with reclamation of land in areas around JNPT,” Maharashtra Chief Minister Prithviraj Chavan told Deccan Herald.
He said possibility of reclamation has not been explored since the Back Bay area was reclaimed from the sea to create Nariman Point, one of the most sought after business districts in Mumbai.
Chavan also apprised Prime Minister Manmohan Singh about the proposal on Wednesday during a discussion on infrastructure projects for Maharashtra.
Maharashtra government had offered a compensation package of Rs 19.5 crore per hectare of land which was to be acquired for the proposed Navi Mumbai Airport, the first phase of which is targeted to be made operational by 2017.
The Netherlands Airport Consultants had proposed to the Maharashtra government to consider the alternative of developing the Navi Mumbai airport on an artificial island. It had cited examples of Hong Kong and Singapore airports which were built on reclaimed land.
With decks being cleared for the Navi Mumbai airport, the Maharashtra government is exploring the feasibility of creating an artificial island for other development projects.
The proposal to reclaim land by filling up the shallow back waters of a bay in South Bombay was mooted in 1917. The original proposal was to reclaim 1,145 acres of land but the project was beset with delays and later abandoned due to corruption charges.
However, by 1929, about 440 acres land was reclaimed. Another attempt for reclaiming land was made during the 1970 but had to be abandoned due to protests by fisher folk who got a stay on the project from courts.
The first Reclamation began in 1860 with the intention to reclaim the entire Back Bay but had to be abandoned within five years as the company set up for the purpose went bankrupt. Whatever little land was reclaimed was used to build the Churchgate railway station.
Source:- deccanherald.com
Australia Backs India's Entry Into Nuclear-Export Controls Body
Australia on Monday said it would support India's bid to join the Nuclear Suppliers Group, an exclusive international atomic-exports body that for decades has been closed to New Delhi due to its nuclear-weapons program.
Australian Foreign Affairs Minister Julie Bishop during a visit to New Delhi informed Indian External Affairs Minister Salman Khurshid of Canberra's decision "to support India's full membership of the NSG, just as we will support India's participation in all of the major export control regimes," according to a government release.
In addition to Australia, the United States, United Kingdom, Russia and France have all said they would support the South Asian nation's bid for NSG membership.
The 46-nation Nuclear Suppliers Group sets voluntary guidelines for its members to follow that are aimed at limiting access to nuclear technology and materials by countries that have not joined the Nuclear Nonproliferation Treaty. Nuclear-armed India is not a signatory to the NPT accord but it received an exemption from the NSG body in 2008 to purchase atomic products from its members.
"Australia's decision acknowledges India's emergence as a major producer and potential exporter of nuclear energy and technology," Bishop said.
India has been campaigning since 2010 to become a member of not only the atomic exports group but also the Missile Technology Control Regime; the Wassenaar Arrangement, which seeks to limit the export of dual-use technology; and the Australia Group, which aims to curb the spread of biological- and chemical-warfare agents.
Canberra is holding talks with New Delhi on a bilateral atomic trade agreement that would permit India to purchase Australian uranium for its atomic energy reactors. Bishop said the third round of trade negotiations has been scheduled for Nov. 26-27 in the Indian capital. An agreement on the sale of uranium to India would be significant for Australia, as it has never before agreed to export the nuclear material to a non-NPT signatory state.
Bishop said she was optimistic that the trade talks would prove successful, though she declined to speculate when a deal might be formalized, United News of India reported.
Source:- nationaljournal.com
Postal Department Drops Gold Coin Tender
The department of posts under the ministry of communication and information technology has cancelled its tender for the supply of gold coins to be sold through various post offices. The tender was floated on November 6 despite a government ban on gold coin imports. It was to close on November 27. Without assigning any reason, the postal department - in a communication posted on its website on Tuesday - said that the tender was being cancelled.
The department's tender for gold coins, which are mostly imported, was floated at a time when the finance ministry had put a ban on import of gold coins and had also asked banks not to sell these coins, mainly to address India's rising current account deficit (CAD).
The cancellation came after S Sudhakar Reddy, general secretary, Communist Party of India (CPI), wrote to the PM to look into the conflicting position the two ministries were taking and also requested to make the government's position clear on import of gold coins. "If banks selling gold coins are strictly being discouraged, how could post offices selling gold coins be encouraged?" Reddy had questioned.
During the day, at a press conference in the city, finance minister P Chidambaram said that there was no difference of opinion between the two ministries and the postal department would withdraw the tender. On Monday, TOI had pointed out the diametrically opposite positions that the two central ministries had taken relating to gold coins and its imports.
In fiscal 2013, India imported 850 tonnes of gold valued at about $58 billion (nearly Rs 3.6 lakh crore), which was one of the main reasons for the country's burgeoning CAD that year. In the current fiscal, thanks to some of the government's steps to contain gold imports, the figure is estimated to drop to around 800 tonnes, but that is still a large figure.
The ban on gold coin imports was imposed in August through the Reserve Bank of India. And on October 22, finance minister P Chidambaram had said that the ban on the import of gold coins and medallions would continue. He also said that banks were directed to follow the ban strictly.
"Despite the...ban, I am surprised to see that while the finance minister holds a specific view on the import of gold coins, the ministry of communications and information technology holds a divergent view on the same," Reddy had written to the PM.
Due to the ban on imports of gold coins, not only banks, even private companies which were earlier selling gold coins, have stopped selling these coins which are popular as gift items and also investment products. Due to the ban, during the just-ended festive season not many people could buy gold coins for gifting, and were forced to look for alternatives, industry people said.
Source:- timesofindia.indiatimes.com
Rupee Gains For Fourth Day, Up 5 Paise To 62.36 Against Dollar
The rupee failed to sustain gains after breaching the 62 level against the dollar on Tuesday and still ended 5 paise higher at 62.36 as banks and exporters sold the US currency amid foreign capital inflows into the equity market.
Weakness in the dollar overseas also boosted the rupee, a forex dealer said.
The rupee resumed higher at 62.20 per dollar from the previous close of 62.41 at the interbank foreign exchange market and rose to 61.87 per dollar.
The initial gains were trimmed on fag-end dollar demand from banks and importers and the local currency ended at 62.36 per dollar, a gain of five paise or 0.08 per cent.
The rupee has moved up 135 paise in the past four sessions.
In the global market, the dollar pared losses against other major currencies yesterday as investors considered when the Federal Reserve would start scaling back its bond-buying programme.
Analysts expect Federal Reserve chief Ben Bernanke to favour retaining the $85 billion a month stimulus programme at a speech later today.
The minutes of the Federal Open Market Committee meeting in October are expected to be released on Wednesday.
"Rupee was seen surpassing another key level of 62 against the US dollar today on the back of consistent speculation that the Fed will continue its ongoing quantitative easing," said Abhishek Goenka, CEO of India Forex Advisors.
The 30-share benchmark sensex continued its firm trend for the third day and ended 40.08 points higher at 20,890.82.
Source:- timesofindia.indiatimes.com
Subsequent circulars won’t create TDS obligation if circular applicable at time of payment exempted
IT: Where circular effective at relevant time exonerate assessee from TDS obligation on payment to non-resident, subsequent circular would not create such an obligation retrospectively
HC slams ITAT for restoring order of AO without discussing merits of reasons given by CIT(A)
IT : ITAT cannot straightaway restore Assessing Officer's order without discussing the merits of reasons given by Commissioner (Appeals)
ITAT for restoring order of AO without discussing merits of reasons given by CIT(A)
IT : ITAT cannot straightaway restore Assessing Officer's order without discussing the merits of reasons given by Commissioner (Appeals)
Sec. 144C applies to every order passed on or after 01-10-09 irrespective of concerned AYs, CBDT re-
IT/ILT : Section 144C of The Income-Tax Act, 1961 - Dispute Resolution Panel - Reference To - Clarification in Respect of Circular No.5/2010, Dated 3-6-2010 on Explanatory Notes to The Provisions of The Finance (No. 2) Act, 2009
SEBI calls for stiff disclosure norms for listed Cos.; asks Stock Exchanges to bring rigid monitorin
SEBI : Compliance With The Provisions of Equity Listing Agreement by Listed Companies - Monitoring by Stock Exchanges
SEBI devised mechanism of in principle approval for recognition of Self Regulatory Organizations
SEBI : SEBI (Self Regulatory Organizations) (Second Amendment) Regulations, 2013 - Amendment in Regulations 3, 4 & 6 and Insertion of Regulation 4A
Block assessment not completed within time is time barred and void
IT: Where assessment proceedings, in terms of section 158BE(2) were initiated vide notice dated 7-6-2000, but assessment was completed by 31-12-2003 it was barred by limitation
Payment for use of bandwidth services is 'royalty'; HC confirms ITAT’s ruling in Verizon's case
IT/ILT : Payments received by appellant from its Indian customers for provision of Bandwidth Services outside India is a royalty for use of or right to use equipment under section 9(1)(vi)
A blood bank isn’t analogous to a hospital or medical institution; not entitled to section 11 exemp
IT : Assessee engaged in running a blood bank cannot be said to be engaged in providing medical facilities so as to be entitled to exemption under section 11
Writ against a recovery notice not maintainable unless assessee points out specific fault in it
IT: Assessee having not pointed out any mistake in recovery notice, said notice could not be interfered with in writ proceedings
Services provided and consumed abroad not liable to service tax in India
ST : Services provided and consumed abroad, on which VAT/GST has been paid under laws of foreign countries, cannot be charged to service tax in India
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