IT : No disallowance under section 40A(3), read with rule 6DD(e) and (k), was called for where cash purchases were made in commission agency business in food grains and assessee was maintaining all books of account and also accounts on all statutory forms required under U.P. Krishi Utpadan Mandi Adhiniyam, 1962
Tuesday 26 November 2013
Sale of business in lieu of shares under an amalgamation scheme not a ‘slump sale’; in sync with Bha
IT : Where no monetary consideration was involved in transfer of manufacturing division with all its assets and liabilities under scheme of amalgamation approved by High Court, same could not be considered to be a slump sale within meaning ascribed under section 2(42C) so as to attract liability of capital gain under section 50B
No TP adjustment if price charged from AEs was found on a higher side
IT/ILT: Where rate charged by assessee for rendering catering services to AE running airlines business on per passenger basis was found to be highest, no adjustment could be made to arm's length price disclosed by assessee in respect of said transaction
Department couldn’t recover pending excise dues of owner from buyer of assets who bought it in an au
ST : Pending excise dues of owner of land/building/plant/machinery are not in relation to such properties (but are related only to manufactured goods) and cannot be demanded from buyer of said properties who purchased them in auction organised by State Finance Corporation
Wockhardt Sinks 14% On Fda Import Alert; Dr Reddy's Gains
Shares in Wockhardt Pharma fell as much 14 per cent on Wednesday after US drug regulator issued an import alert on the drug maker's Chikalthana facility. An import alert is issued when the Food and Drug Agency thinks a company's products present safety problems for US citizens.
The import alert is a big setback for Wockhardt because the company manufactures generic Toprol XL, its biggest product with sales of over $120 million at the Chikalthana facility. Toprol is a prescription medication for high blood pressure.
Ranjit Kapadia of Centrum Broking told NDTV that the issue will take at least six to nine months to resolve and Wockhardt will not be able to export any product from this facility leading to significant revenue loss.
As of 10.00 a.m., Wockhardt shares traded 7.7 per cent lower at Rs. 435.55 on the BSE as against 0.03 per cent gain in the broader Sensex. The stock had earlier hit a low of Rs. 406.
Wockhardt's loss is likely to be Dr Reddy's gain, which is the only other Indian drugmaker that has approval for Toprol. DRL can scale up and they migiht have an advantage, Mr Kapadia said.
DRL shares traded up 1.35 per cent at Rs. 2,444 on the NSE after muted start.
Source:- profit.ndtv.com
Indonesia Can Import Beef From India: Minister
Jakarta - Coordinating Minister for Economic Affairs Hatta Rajasa has said that Indonesia should not depend on one country but also on others such as India in importing beef to meet its domestic need.
"I think other countries like India have big potential. Malaysia is importing beef from India," the coordinating minister said on Tuesday.
Hatta said Indonesia could import beef from other countries as long as it revised Law No. 18/2009 on Animal Husbandry and Animal Health where import was done through a country-based system. Through the revision, the country-bases system could be changed into a zone-based one.
In the current law, it is stipulated that Indonesia can only import cattle from countries which are free from mouth and feet diseases like Australia and New Zealand.
"Thus, we cannot import cattle from India. India has a large area. If a certain part of the country has a cattle disease it does not mean all parts of India has the disease," the chief economic minister said.
He denied that the governments efforts to revise the law and seek other exporting countries were to be made because of current spying row with Australia.
"We have to revise it for our own interest, irrespective of the eavesdropping issue. We should not depend on one country but also on others," he said.
In connection with food policies, Agriculture Minister Suswono said that as an island country Indonesia should ideally adopt a zone-based system rather than a country-based in importing food commodities.
Now the government is revising the law on animal husbandry and health in an effort to prevent the country from violating the law if it adopts a zone-based system for importing food commodities.
"The country-based system will disadvantage us if at a time we cannot export cattle only because we have an island with a disease, while actually other islands we have are from such a disease," Hatta said.
So far,Indonesia has been importing cattle and beef from Australia. Based on the country-based system, Indonesia can import cattle from Australia and New Zealand.
Tensions between Indonesia and Australia increased after media reports that Australian intelligence agencies had wiretapped the private phones of Indonesian President Susilo Bambang Yudhoyono and other senior officials.
"It is better for the government to stop its livestock imports from Australia as part of its protest against Australias alleged wiretapping of phones of the Indonesian President and other senior state officials," Muhamad Azhari, a member of the House of Representatives (DPR)s Commission VI on trade affairs, said here on Friday.
Indonesias annual imports of beef and cattle from Australia amounted to about $12 billion. Since the trade began 20 years ago, more than 6.5 million cattle have been shipped to Indonesia for slaughter.
It was even reported that the Australian livestock export industry and the Australian Government have invested more than $4 million in improving animal welfare in Indonesia over the past 10 years.
Source:- antaranews.com
Ntpc Seeks 12 Million Tonnes Coal Imports Per Year
NEW DELHI: India's top power producer NTPC Ltd is looking to import 12 million tonnes of thermal coal a year on a long-term basis starting 2018, compared with 16 million tonnes currently, as it looks to reduce dependence on costly shipments.
NTPC's top supplier Coal India Ltd accounts for 80 percent of the country's coal output. But the state miner's inability to raise output in line with demand has meant India has become the No. 3 importer of the fuel despite sitting on what BP has estimated as the world's fifth-largest reserves.
NTPC is seeking an expression of interest from third parties for the import of coal for up to 15 years, a document on its website said on Monday. Indonesia, Australia, South Africa and the United States are the top coal exporters to India.
NTPC, whose installed capacity is 41.7 gigawatts, is building plants with capacity to produce 20 gigawatts of power. Some of the new plants will be completely fuelled by imported coal, the document showed.
India's coal imports jumped by about a third to a record 138 million tonnes last fiscal year, a cause for concern in Asia's third-largest economy as it looks to narrow its fiscal deficit.
Source:- articles.economictimes.indiatimes.com
Industrial Corridor From Amritsar To Sagar Port
KOLKATA: The industrial corridor from Amritsar that was originally planned up to Dankuni will now connect the Sagar port, shipping secretary Vidyapati Trivedi said in Kolkata on Monday. This industrial corridor is patterned on the Delhi-Mumbai Industrial Corridor (DMIC) and will use the Eastern Dedicated Freight Corridor (EDFC) as a backbone. The industrial corridor from Amritsar will also leverage the inland waterway system being developed along National Waterway-I that extends from Allahabad to Haldia.
"The Amritsar-Delhi-Kolkata (now Sagar) Industrial Corridor will cover the states of Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and West Bengal. This is one of the most densely populated regions in the world where nearly 40% of India's population resides. This is also the region that needs a major push for industrialization and job creation. The Centre is expected to provide a support of Rs 5,749 crore over a period of 15 years for this corridor," an official said.
"There is no alternative to the ports of Kolkata and Haldia. After all, these ports handle cargo for the entire eastern and northeastern region of the country. The draught situation at Haldia is a problem though. That is why, projects like Haldia Dock-II and Sagar have been planned. The industrial corridor from Amritsar will also connect to Sagar," Trivedi said.
By mid-2014, the shipping ministry and Kolkata Port Trust will also finalize the agency that will build the deep-draughted port at Sagar, shipping minister G K Vasan said during the day. If this happens, the first phase of the port — the first deep-draughted one in West Bengal — is likely to become operational by the end of 2019, officials believe. This will solve a number of problems for the state and the Centre. While the port will boost much needed industrial growth in West Bengal, the Centre can also cut down on dredging subsidy that it needs to bear to maintain the Haldia Dock Complex (HDC). The annual dredging subsidy comes to around Rs 400 crore per annum.
"So far as the shipping ministry is concerned, we don't want any port to suffer. However, a decision has been taken to bring down the dredging subsidy. This will happen as more downstream projects develop. We hope to finalize the contract for the Sagar port latest by mid-2014. It will take a few more years for the facility to come up. So much expense for dredging will no longer be required after that," Vasan said.
"Between April and September this year, there has been a growth of 5.4% in the cargo handled by Kolkata Port Trust (KoPT). Capacity utilization of berths at the two ports of Kolkata and Haldia is about 62.5%. What is most encouraging is the Rs 12,000 crore investment commitment that has come in for this port facility," the shipping minister said. Of this Rs 12,000 crore, Rs 7,851 crore will be the cost for the port at Sagar where 55 million tonnes of cargo will be handled by 2019-20.
Source:- timesofindia.indiatimes.com
India May Spurn Eu Demand For Duty Cut On Auto, Parts .
NEW DELHI: India may reject demands by the European Union that the government slash import tariffs on industrial goods such as automobiles and auto components, making it unlikely that the two sides will finalise their long-awaited free trade agreement (FTA) anytime soon.
The trade and economic relations committee, or TERC, chaired by Prime Minister Manmohan Singh has decided that no new concessions should be offered under the proposed trade deal, something domestic manufacturers have been lobbying for.
New Delhi's tough stance spells more trouble for the much-delayed trade deal and dashes expectations that European automobiles, and wines and spirits would become cheaper for Indian consumers under such an accord.
The EU had sought concessions in 56 non-agriculture market access tariff lines, said an official aware of the stand of the TERC, the highest decision-making body on trade deals. "The TERC has decided that it would be difficult to accommodate most of these in view of the implications this has for our domestic manufacturing industry," the official said.
The 27-nation bloc wants duty on the auto sector to decline eventually to zero from the current 60-100%. However, India has resisted this due to the impact such a steep tariff reduction will have on local manufacturers.
The TERC also decided that "a final effort may be made by the department of commerce to push for a settlement of all issues based on existing offers and demands," the official said.
The panel also mandated secretaries at the ministries of finance, commerce, industrial policy and promotion and external affairs to examine the advantages and disadvantages of an FTA with the EU, the official said. This panel, along with the Planning Commission and the chairman of the Prime minister's Economic Advisory Council, will prepare an agenda for action by the government to boost India's global competitiveness.
India and the EU have been negotiating the broad-based investment and trade agreement (BITA) since 2007 and have held 15 rounds of negotiations in the last six years. The ministerial-level talks scheduled in June did not take place.
The EU has already made it clear that there can be no deal without India slashing tariffs on cars and allowing a higher foreign direct investment limit in insurance. The United Progressive Alliance is committed to raising the FDI limit in insurance to 49% from 26% but the move needs parliamentary approval.
The panel has, meanwhile, directed the department of commerce to take a "calibrated approach to FTAs", said the official cited above, suggesting that the government wants to ensure that such accords don't hurt local industry.
European Commission vice-president Joaquin Almunia had blamed India for the delay in finalising the trade pact during his visit to New Delhi last week. He had said that the ball was now in India's court. Commerce and industry minister Anand Sharma had demanded data secure status for India in his meeting with Almunia, something the EU is reluctant to give. This relates to information about customers and other entities remaining safe from theft.
The EU, for its part, wants restrictions on the movement of professionals based on sectors, which could adversely impact India's IT sector.
India has signed FTAs with about 20 countries including Japan, South Korea, the Association of South-east Asian Nations ( Asean), Sri Lanka and Nepal. It's negotiating market opening pacts with Australia, Canada and New Zealand, apart from the European Union.
Source:- economictimes.indiatimes.com
Looking At Increasing Raw Wool Imports To India: Woolmark Co
NEW DELHI: Australia-based leading wool textile firm The Woolmark Company today said it is looking at an increase in raw wool imports mainly of Merino wool from the country to India.
"We are expecting an increase in percentage of raw wool being imported to India in the 2013-14 season," The Woolmark Company Country Manager for India, Hong Kong and Taiwan Alex Lai told reporters here at an event.
The majority of this will be Merino wool which is of a very high quality, he added.
Australia is the world's second largest producer of greasy wool, producing about 345 million kilogrammes (Mkg) of wool and accounting for about one fifth of global wool production.
In 2012, 20 per cent of India's raw wool imports were from Australia. In the 2012-13 season, the raw wool import volume from Australia was at 20.9 Mkg (at least 88 per cent of this was Merino wool).
However in the 2013-14 season, raw wool imports from Australia so far have been 6.1 Mkg (at least 89 per cent is Merino wool).
Monte Carlo Fashions and Raymond Ltd, major importers of the raw wool supplied by the Woolmark Company in India, said they were working on introducing 'Cool Wool' in India, which can be worn in Indian spring and summer seasons, shedding the popular perception that wool is a seasonal fabric for winter.
"The perception of wool only being for winter is a myth. We will be promoting Cool Wool in India in spring-summer 2014," Raymond LtdBSE -0.54 % Director-Marketing Mrinmoy Mukherjee said.
Cool Wool is a range of fine, lightweight Merino wool fabrics and garments ideal for hotter climates and the spring summer season.
The Woolmark brand is owned by Australian Wool Innovation (AWI), a not-for-profit company owned by over 25,000 wool growers.
Source:- economictimes.indiatimes.com
Tax Evaders Can Be Traced, Warns Chidambaram
Cautioning tax evaders, Finance Minister P. Chidambaram on Tuesday said the central government was in a position to trace defaulters by constructing their full profile and possessed dossiers on them.
No tax evader could escape the government, he asserted.
"All financial transactions can be traced once you are identified as a tax evader. We can construct a 360 degree profile them," Chidambaram said at a programme.
Delivering the inaugural speech at an interaction with representatives of trade and industry on the Service Tax Voluntary Compliance Enforcement Scheme (VCES), the minister said: "In fact we have such profiles. We have dossiers on them."
He asserted that the government had the option to arrest and prosecute habitual offenders. Already, 13 such peoples have been taken into custody from various parts of the country.
Calling upon traders to utilise the VCES, the minister said it would enable them to come clean.
He mentioned several sectors - construction, couriers, telecom and security services - for failing to deposit with the government the service tax they collected.
He said the service sector comprised 55 percent of the country's Gross Domestic Product, while "a healthy number - 17 lakh - had registered for service tax.
"But of them, only seven lakh pay service tax, and the rest have forgotten. While some are no-filers, some others are stop-filers."
The VCES, in force since May 10, would continue upto Dec 31.
Source:- businesstoday.intoday.in
Indian Rupee Rises To 62.45 Per Dollar In Early Trade
Indian rupee kicked-off trade at 62.45 per dollar on Wednesday, up 5 paise compared to previous close of 62.50 per dollar.
Pramit Brahmbhatt of Alpari India feels the rupee will be rangebound today with a slight negative bias owing to a weak equity market and strong month-end dollar demand by oil marketing companies and other importers. However a strong euro and a weak dollar coupled with RBI's intervention in the market might aid rupee, he adds.
According to Brahmbhatt, the range for the day is seen between 62.1-63.10/USD.
Source:- moneycontrol.com
SAT upheld repayment of sum collected by appellant as it carried on Collective Investment Scheme wit
CL: Where appellant-company collected huge amount of money from investors for development of land by promising high returns either in form of profits or increased value of land, in view of fact that business carried on by appellant was in nature of Collective Investment Scheme which was undertaken without obtaining certificate of registration from SEBI, impugned order passed in terms of section 11AA, read with section 12 directing winding up of said scheme was to be confirmed
Limit for mandatory e-payment under ST reduced to Rs. 1 lakh from Rs. 10 lakhs
ST : Rule 6 of The Service Tax Rules, 1994 - Payment - Service Tax - Limit for Mandatory E-Payment Reduced from Rs. 10 Lakhs to Rs. 1 Lakhs
Definition of expression ‘Infrastructure Lending’ broadened; RBI notifies new Sub-sectors for the pu
BANKING : Financing of Infrastructure - Definition of 'Infrastructure Lending'
A manufacturer can’t be made liable to ST under Scientific or Consultancy Services
ST : A manufacturer of textiles is not 'a science or technology institution or organisation' and cannot fall under Scientific or Technical Consultancy Services
Sec. 40A(2) provisions can be invoked for an expenditure and not for sale to sister concern at a les
IT : Where assessee had charged less sale price from sister concern as compared to non-sister concerns, provisions of section 40A could not be invoked as no payment had been made for any item of expenditure
Speculative losses from share transactions could be set-off against profits from loans and advances
IT : Losses from sale and purchase of shares can be set off against profits of business of company from loans and advances
Only profits embedded in purchases made from grey market are taxable in hands of assessee
IT : Where though purchase of raw material was not made from party from whom assessee claimed but such material was purchased from open market incurring cash payment, only profit element of such purchases and not entire purchases was to be added to income of assessee
Interest on late payment of taxes to be paid suo-motu; no time limit to issue show cause notice for
Excise & Custom : Interest being appendix to principal amount is required to be paid suo motu by an assessee; therefore, there is no time-limit prescribed under law for issuance of show-cause notice for recovery of interest amount
Re-assessment of parents to club minor’s income not justified if assessment of minor already conclud
IT: Reopening of assessment on ground that income shown in return of assessee's minor children was that of assessee was bad in law, when assessment in case of minor children had been completed before issue of notice under section 148
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