IT : Amount waived off in furtherance of one time settlement of assessee's due, would not be added to assessee's income under section 41(1) as revenue receipt
Thursday, 21 November 2013
Higher value of jewellery declared by assessee to claim higher VAT refund acceptable for its import
Excise & Custom : When assessee has declared value of jewellery at 14,500 pound for getting VAT Refund from British authority, then, on import of such jewellery in India, value shall be taken at 14,500 Pound and assessee cannot contend that value of 14,500 pound was declared on higher side to claim more refund British authority
Sum paid to NR to identify potential customers and to conduct market survey abroad held taxable as F
IT/ILT: Payment to a foreign company for marketing survey and identifying potential foreign customers for assessee's product were only consultancy services taxable in India
India, Eu To Enhance Cooperation In Resolving Competition Issues.
India and the European Union have signed a Memorandum of Understanding (MoU) to increase cooperation between the European Commission's competition department and the Competition Commission of India.
The agreement was signed in the Indian capital city of New Delhi on Thursday by European Commission Vice President Joaquin Almunia, and Ashok Chawla, the Chairman of the Competition Commission of India.
"The Memorandum of Understanding is an important step and a sign of our commitment to further deepen our already excellent relations with the Competition Commission of India. It will give new impetus to our cooperation with India in the enforcement of our respective competition laws," Almunia said after signing the document.
The MoU creates a dedicated framework to further strengthen cooperation between the European Commission and the Competition Commission of India in the area of competition law enforcement.
Under the new framework, the parties may engage in discussions on competition legislation, share non-confidential information on legislation, enforcement, multilateral competition initiatives and advocacy, and engage in technical cooperation regarding competition legislation and enforcement.
The MoU also provides that one authority may request the other to carry out enforcement activities, if one believes that anti-competitive actions are being carried out in the territory of the other. It also provides a mechanism to avoid conflicts if one authority's enforcement activity may affect the other in its own enforcement activity.
According to an EU press release, the Memorandum of Understanding sends a positive signal for intensified cooperation on competition matters between India and the EU.
Notably, India's Competition Act entered into force in 2007, which is also the year when the enforcement authority, the Competition Commission of India, became operational.
On the other hand, European Commission enforces competition rules for the European Union as a whole, notably for the review of mergers and acquisitions involving companies with a turnover above certain thresholds and the fight against cartels and abuses of dominant market positions.
The European Commission has cooperation agreements with competition authorities of many countries outside the EU. With some of them, the cooperation is based on bilateral agreements dedicated entirely to competition. In other cases, competition provisions are included as part of wider general agreements such as free trade agreements, partnership and cooperation agreements as well as association agreements.
Source:- rttnews.com
Peru Opens Trade Office In New Delhi.
On the initiative of Peru's export and tourism promotion agency PromPeru, the new OCEX aims to contribute to sustained economic growth in Peru by promoting its exports of goods and services. Mincetur plans to increase the number of trade offices abroad from the current 18 to 34 next year.
Meanwhile, Peru's Regional Exporters Association of Lambayeque (AREX) indicated the fruit and vegetable sector could benefit from a number of free trade agreements down the road.
AREX coordinator, Paola Corvacho Valderrama, said the Turkish market shows promise due to the population's growing consumption of fresh, frozen and canned fruits and vegetables. Corvacho said the growing consumption trend is due to a large, young population concerned about maintaining good health.
"This market shows potential for bananas, watermelons, spices and nuts, whose average growth rate in the last five years has been 37 per cent," Corvacho was quoted as saying by website Fresh Fruit Portal.
Growth in the middle class and increasingly westernised youth could create possibilities, however, for bananas, table grapes, sauces, coffee and spices.
India has shown possibilities for vegetable dyes. Import tariffs are quite high, however. This would be a point of negotiation between Peru and India. "A free trade agreement with India, however, would benefit our country in the high-end medication sector, since this is an industry that attracts investors from Germany and Japan," Corvacho said.
Source:- freshplaza.com
The qualifications set out for Chief Information Commissioner are not ultra vires Indian Constitutio
CL : Sections 12(5) and 15(5) providing that Chief Information Commissioner and Information Commissioners have to be persons of eminence in public life with wide knowledge and experience in different fields mentioned therein, namely, law, science and technology, social service, management, journalism, mass media or administration and governance, are not ultra vires Constitution of India
Govt Plans More Wheat Export Tenders
Buoyed by the strong response to its attempt to sell wheat from state-run warehouses, the government is planning to launch a series of export tenders in January, February and March to sell a total of about two million tonnes (mt) in foreign markets.
Food ministry officials said the next tender, for the export of 210,000 tonnes, would be floated on December 12. The wheat would be exported from the Kandla, Visakhapatnam and Pipavav ports, through tenders floated by PEC and MMTC.
Earlier, the government had to reduce the base price for export from $300 a tonne to $260 a tonne, after its attempt to export 0.15 mt was cancelled, as the bids received were much lower than the base price.
On Tuesday, state-owned trading firms State Trading Corporation, MMTC and PEC received bids in the range of $284.7-289.9 a tonne for the export of 0.34 mt from Food Corporation of India (FCI) godowns. The highest quotations received by the three trading firms were higher than the government’s floor price of $260 a tonne for the export of FCI-procured wheat.
“We expect to get a good price in the coming months, too,” said a senior government official. “We were hoping to get a price of $270-275 a tonne, but the price quoted (about $290 a tonne) was unexpected, which showed Indian wheat had started commanding a premium in international markets.” He said the price received was even more than that quoted for Black Sea wheat, one of the most valuable wheat brands in the world.
“In the coming months too, the trend is expected to be maintained because according to information, the Australian wheat crop is not as good as expected. This will enable us to sell more in foreign markets,” he said. Exporting wheat was more profitable for the government than selling it domestically, as at an average price of $285 a tonne, the government was expected to earn about Rs 18,000 a tonne, while in India, it had to sell at Rs 16,000 a tonne, he added.
In 2012-13, the government had earned $1.4 billion by exporting 4.2 mt of wheat through public sector undertakings. Last financial year, Indian wheat had fetched an average price of $311.38 a tonne.
India is exporting wheat from state-run warehouses, as consecutive years of bumper harvests have filled these godowns to the brim. According to Food Corporation of India, wheat stocks in state godowns were estimated at 34 mt as on November 1, against the requirement of just 14 mt.
Source:- business-standard.com
India To Retain Top Rice Exporter Rank, Says Care Ratings
MUMBAI: India is expected to retain its top rank as rice exporter in 2012-13 marketing year on bumper production and strong export demand for Indian rice, both basmati and non basmati.
India's production of rice hit an all-time high in 2011-12 crop year (period from July to June) and crossed the 100 million tonnes level.
India has also emerged as the world's leading exporter of rice in 2011-12 (period from October to September) and is expected to retain its top rank as rice exporter in 2012-13 due to bumper production and strong export demand for Indian rice, both basmati and non basmati, CARE Ratings said in its report here today.
According to the first advance estimates released by the agriculture ministry, India's kharif rice crop output is expected at 92.32 tonnes during the 2013-14 crop season, which is more or less in line with the kharif rice output of 92.76 tonnes last year.
India is expected to retain its top rank as rice exporter in 2012-13 marketing year given the second-highest level of production during the 2012-13 crop year, large public stocks, liberal export policy and weak currency.
Source:- economictimes.indiatimes.com
India's Rapeseed Output To Rise, May Curb Palm Oil Imports From M'sia
21-Nov-2013
India could produce up to 13 percent more rapeseed oil in 2014 as farmers take advantage of monsoon-soaked land to grow the more lucrative crop, traders said, which would help curb imports and its trade deficit.
Increased domestic rapeseed output could help India, top global importer of edible oils, rein in its purchases of palm oil from Malaysia and Indonesia next year.
Rape needs damper conditions than do other crops such as wheat or guar gum, and this year's monsoon was heavier than in 2012.
Traders expect rape acreage to rise by 4.5 percent to 7 million hectares and output of rapeseed to reach 6.7 million tonnes from 6.4 million.
That would boost rapeseed oil production by 13 percent to 2.6 million tonnes, they estimate.
''Rapeseed oil supplies could be about 300,000 tonnes more in comparison to last year," Sandeep Bajoria, chief executive of the Mumbai-based Sunvin Group, said.
India's edible oil demand totals 17-18 million tonnes a year and is growing by 3 to 4 percent a year. Imports usually account for about 60 percent of consumption and weigh on its bulging current account deficit.
Rapeseed planting usually starts from October in the world's third-biggest producer after China andCanada, and farmers have already planted over 4.5 million hectares. The harvest starts from February.
Prices are already up 7 percent from the start of the planting season, with levels quoted in Rajasthan at 36,550 rupees ($580) per tonne.
The desert state of Rajasthan is the main producer of rapeseed, providing more than half of total output. But in last year's drier conditions, many farmers turned to guar, which requires less rain and has been in strong demand due to its role in the extraction of shale gas.
Rapeseed produces both oil and meal, making returns better than wheat, which also needs more rainfall while it grows.
"Rapeseed is preferred this year over other winter crops like wheat and guar," said Deepak Kanda, president of the Shri Ganganagar Oil Millers Association in Rajasthan.
Some traders voiced concerns, however, that cold weather could still crimp rapeseed output.
"Weather conditions in January will hold the key to the crop's output size," said Govindbhai G. Patel, managing partner of G G Patel & Nikhil Research Co.
Annual demand for cooking oils in Asia's third-largest economy is growing by at least half a million tonnes a year as it adds about 19 million people to its population and its middle class becomes increasingly wealthy.
India's cooking oil imports rose 4 percent to a record of 10.4 million tonnes in the year to October. ($1 = 62.545 Indian rupees) .
Source:- reuters.com
India Takes Steps To Reduce Crude Oil Imported From Iran
21-Nov-2013
India has decided to bring down crude oil imports from Iran by 12 per cent, or 1.6 million tonnes (mt), during the current financial year.
Crude imports from the West Asian country for 2013-14 have been pegged at 11.7 mt, compared with 13.3 mt India shipped in the previous fiscal. In 2011-12, the Iranian crude imports were at 18.1 mt.
Banking sources told Business Line that though the import volume is set to come down in 2013-14, in terms of value, the trade figure for the first half of the fiscal saw increase because of changes in the value of the commodity and the currency .
Rupee depreciation against the dollar (as Iranian crude is priced in dollar and 45 per cent of imports are rupee-based payments ) and higher average crude prices have been the primary reasons for the difference.
India had piled up payment arrears of $1.53 billion (55 per cent of crude imported, which is outside the rupee-settled arrangement, over the past few years) until the end of the last fiscal.
Both countries have been trying to find ways to solve the payment issue in view of the sanctions from the UN, European nations, and the US. India’s decision to reduce Iranian crude import is linked to the restrictions. India has also been trying to increase exports to bridge the trade-value gap.
Value of Indian exports to Iran during the first six months of 2013-14 has shot up substantially. According to banking sources, exports in the first quarter stood at Rs 6,500 crore against Rs 570 crore in the corresponding quarter last year. The second quarter exports figure was at Rs 6,400 crore (Rs 2,100 crore).
India’s export basket to Iran consists of agricultural food items, such as rice, soya and tea (around 72 per cent), pharmaceuticals (10 per cent), alumina and minerals (5 per cent), iron and steel (4 per cent) and chemicals (4 per cent).
Source:- thehindubusinessline.com
Sugar Import Body's Bid Struck Off Roll
21-Nov-2013
An urgent application by the Association of South African Sugar Importers (Asasi), brought against the International Trade Administration Commission (Itac), was struck off the roll by the North Gauteng High Court because the lack of urgency was “a fatal defect”.
Asasi sought an urgent interdict to prevent the commission from continuing with its investigation relating to an application for an increase in the dollar-based reference price for sugar imports to protect the sugar industry in the South African Customs Union (Sacu).
The application was brought by the South African Sugar Association (Sasa) in April, asking for an increase from the existing $358 per ton to 764 per ton.
Asasi says the increase in the dollar-based reference price will raise imported sugar prices by 44 percent.
SA’s sugar sector has been haemorrhaging about R50m a month and thousands of jobs could be lost as a result of sugar imports that have risen to 400,000 tonnes this year.
The commission accepted the application and initiated an investigation in September. The sugar association said in its application the dollar price was not triggered since April 2009.
The dollar-based reference price sets a floor price for sugar in the Sacu market by increasing tariffs if the world sugar price is low, and decreasing tariffs when the world price is high.
According to Willemien Viljoen, researcher at the Trade Law Centre, the variable tariff formula applicable to sugar imports is calculated as the difference between the reference price of $358 per ton and the 20-day average of the London No5 sugar settlement price (the world price).
The tariff will be adjusted if the 20-day world price falls below the reference price by more than $20 per ton for 20 consecutive days, she explained in a research document.
Asasi requested a review of the decision to initiate the investigation of an increase from the $358, as it says Itac failed to properly verify the data before initiating the investigation.
When Itac gave no undertaking to put its investigation on hold until there was a review of its decision, Asasi approached the court on an urgent basis to stop it.
Itac opposed the urgent application on several grounds, including the fact that the application lacked grounds for contending urgency.
Itac spokesman Thembinkosi Gamlashe said yesterday the commission was considering a final determination of the tariff regime for sugar early next month and would then hear oral presentations from, among others, Asasi, Sugar on Tap, Tiger Brands, XA International Trade Advisors on behalf of Snackworks, and Webber Wentzel on behalf of Sasa.
In its application to Itac requesting the investigation, Sasa expressed concerns about the time it took to implement new duties from the time the world price drops below the floor price, saying this could be up to five months.
In that time a “significant tonnage” of imported sugar could enter the Sacu market, Sasa said.
It said the request for tariffs was not because the industry is inefficient, but because of the distorted world market.
Source:- enca.com
Coal India To Appoint Agency To Import Coal
KOLKATA: State-run Coal India said it will soon appoint an agency to import coal for its consumers even though it is yet to receive a firm fuel commitment from power producers.
A presidential directive earlier this year mandates Coal India, the world's biggest coal producer, to meet the fuel supply gap for power producers through imports. Following the directive, the company had asked for preliminary commitments from power firms for coal imports.
Although about 50 companies had agreed, none of them has intimated its commitment, which includes payment of an advance for imports.
"We have not yet received firm commitment for coal imports," a senior Coal India executive said.
Coal India recently invited expressions of interest from public sector agencies for importing coal on its behalf. "While earlier it was planning to import 8 million tonne through these agencies, it has now decided to import only 5 mt, which is estimated to be valued around Rs 3,000 crore," the official said, adding that it will import coal only if it has received the full cost in advance. The firm had invited expressions of interest from foreign producers for importing and supplying to its consumers for 10-years at a row.
However, the price quoted by foreign traders and producers turned out to be more than the price at which its largest consumer, NTPC, was importing. The power producer had shown interest in sourcing 10 mt of imported coal through Coal India.
"The foreign companies were asking a premium on the market price because it had to commit 10 years of supply. NTPCBSE 0.13 % did not agree to the premium and the arrangement did not work," the Coal India executive said.
Source:- economictimes.indiatimes.com
Cme Cuts Initial Margins For Crude Oil, Gold Futures
The CME Group, parent of the Chicago Board of Trade, has lowered the initial margin for crude oil for the second time in a month and cut margins on a range of other futures contracts.
The exchange operator on Thursday lowered initial margins for Crude Oil Future NYMEX (CL) by 8.1 percent for speculators to $3,740 per contract from $4,070. CME also cut margins earlier in November.
Brent crude oil jumped $2 to end at its highest in more than a month on Thursday.
The Chicago-based exchange operator also reduced initial margins for Comex gold and silver futures by 9.4 percent and 11.1 percent respectively.
CME lowered Comex 100 Gold futures (GC) margins for speculators to $7,975 per contract from $8,800 and cut Comex 5000 Silver futures (SI) margins to $11,000 per contract from $12,375.
The move partially reversed a 25 percent hike in gold margins in June after prices plunged to their lowest in three years.
Margins are deposits paid by investors in futures markets, where full payment is made when contracts mature, to an exchange or clearing house to cover the risk of default by that investor and typically are based on the largest most-likely daily market move.
Exchanges typically raise margins to mitigate risks as price volatility in the market increases.
CME also cut maintenance margins for gold to $7,250 per contract from $8,000.
The decrease of $750 per contract in gold speculative maintenance margins -- multiplied by both sides of the open interest in the market, which stood at 403,603 contracts on Thursday -- suggests $605 million less in margin escrow.
The exchange operator lowered Comex Copper futures (HG) initial margins for speculators by 14.3 percent to $3,300 per contract and that of RBOB Gasoline futures (RB) by 5.6 percent to $4,675 per contract.
Source:- reuters.com
Indian Rupee Falls 36 Paise To 62.93 Vs Us Dollar On Fresh Taper Worries
The Indian rupee fell for the second day against the US dollar today in tandem with local equities, losing 36 paise to 62.93 as indications of an imminent tapering by the Federal Reserve strengthened the US currency.
Lower stock purchases by foreign institutional investors and sustained dollar demand from importers, mainly oil refiners, also put pressure on the Indian rupee, a forex dealer said.
At the interbank foreign exchange market, the rupee opened weak at 62.85 a dollar from 62.57 previously and moved in a tight range before ending at 62.93, a fall of 36 paise or 0.58 per cent. Yesterday, it declined 21 paise or 0.34 per cent.
In New York, the dollar rose against the euro after Federal Reserve minutes showed the pace of monthly bond purchases may be trimmed in the coming months as the economy improves. The dollar index, consisting of six major global units, was up 0.11 per cent.
Data released yesterday showed US retail sales in October jumped 0.4 per cent.
"Indian rupee was seen depreciating against the US dollar in the opening itself due to strength in the US dollar. Gains in US dollar are attributed to the retail sales data, which beat expectations despite the government shutdown," said Abhishek Goenka, CEO of India Forex Advisors.
Asian currencies were weak due to strong US data and the FOMC minutes released yesterday, Goenka said.
The 30-share benchmark Sensex plunged 406.08 points or 1.97 per cent today. Overseas investors picked up shares worth a net Rs 80.4 crore yesterday, as per provisional data. They had bought a net Rs 1,014.61 crore of shares a day earlier.
"Indian rupee depreciated over half per cent, taking cues from strong dollar, which...gained after the minutes from the US Federal Reserve's October policy meeting suggested that the central bank could soon move to taper monetary stimulus," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).
The benchmark six-month forward dollar premium payable in April closed at 244-246 paise from 244-1/2-245-1/2 paise yesterday and far-forward contracts maturing in October rose further to 490-492 paise from 485-487 paise previously.
Source:- financialexpress.com
Property continues in self-occupation of assessee even after collaboration agreement with builder as
IT: Tribunal was justified in law in rejecting claim of assessee that property, continuing to be in self-occupation of assessee, even after collaboration agreement with a builder, was to be valued as returned on valuation date in accordance with provisions of section 7(4)
Disallowance for TDS default covers all ‘expenditure’ and not only those exp. as spelt out in sectio
IT: Nature of expenditure, and not nature of business, is subject matter of disallowance under section 40(a)(ia); business expenditures falling under sections 30 to 38 and 40 are contemplated therein
Declaring an income admitted during search and payment of taxes thereon saves assessee from sec. 271
IT: Where assessee admitted lower value of jewellery in return of income than admitted in search proceedings but in course of assessment filed revised return offering entire value of jewellery and paid tax along with interest, penalty under section 271AAA could not be sustained
‘Jagannath Temple Management Committee’ isn’t a person to hold it liable for TCS while leasing out i
IT : In view of specific definition of the seller and the language of section 206C(1) the provision for collection of tax will apply even to an authority established by or under the Central, State or Provincial Act, but Section 206C(1C) makes only the person to be held liable. This does not make liable an authority established by under the Central, State or Provincial Act for collection of tax on leasing out the quarry.
Assessee to initiate fresh proceedings if it’s not satisfied with consequential order passed after I
IT : Where Tribunal set aside order passed by Assessing Officer and restored matter to him with direction to allow deduction under section 80-IA to assessee on eligible turnover, if there was any grievance to assessee on account of consequential order passed by Assessing Officer, remedy for assessee lay in fresh proceedings commencing with such consequential order
Product ‘shunt’ made of copper wire can’t be classified as ‘electrical register’
Excise & Custom : Shunt consisting of copper wire, which is conductor of electricity and not resistant to electricity, cannot be regarded as 'resistant'; it was classifiable as 'electric measurement product'
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