IT/ILT: In view of order passed in case of Dy. CIT v. Sakura Bank (IT Appeal No. 1230 (Bom) of 1995 dated 31-10-2003) higher rate of tax applicable to assessee, a non-resident company, was not violative of non-discriminatory clause, i.e., article 26 of DTAA between India and France
Thursday 28 November 2013
Interest income of NBFCs couldn’t escape tax net if its debtors were found to be financially well of
IT: Where it was apparent from records that debtor companies which had taken loan from assessee, were financially well off and were earning profits during relevant year, Tribunal, merely relying upon order passed in earlier years, could not conclude that assessee was not assessable in respect of interest income because of financial difficulties faced by debtor companies
No credit allowable if no duty was payable on final product
Cenvat Credit : Since no duty was paid/payable on final product (i.e., sugar plant) set up in a foreign country (i.e., Vietnam), therefore, no credit was allowable of duty paid on inputs/machineries/goods used in setting up of that sugar plant outside India
Cash payments to Railways isn’t covered within the ambit of sec. 40A(3)
IT : Payment made to government concern in cash in excess of amount prescribed under section 43A(3) would be allowable
Govt Approves Financial Aid To Kolkata Port Trust
The union cabinet Thursday approved extension of financial assistance to Kolkata Port Trust (KoPT) to meet the dredging expenditure incurred for maintaining the river channel.
"This will make transactions commercially viable for the port users," an official release said here.
The scheme of financial assistance to KoPT towards dredging will be continued for a total amount of Rs.1,501.35 crore for the period from 2012-13 to 2015-16, with effect from April 1, 2012," it added.
An on-account payment up to 90 percent of the amount payable towards financial assistance during the previous year may be made to KoPT in the following years in equal quarterly installments, the statement said.
Source:- smetimes.in
India's Diamond Export Up By 56%
Despite grave concerns in the industry over mixing of synthetic lab-grown diamonds with natural diamond parcels, diamantiares have a reason to cheer ahead of the Christmas season.
As per the latest figures issued by Gems and Jewellery Export Promotion Council (GJEPC), India's polished diamond export has increased phenomenally by 56 per cent year on year to $2.15 billion in October. Majority of the diamonds were exported to the United States, Hong Kong and the United Arab Emirates. However, during the first 10 months of the year, India's polished export rose 26 per cent to $18.278 billion.
Interestingly, in the first 10 months of 2013, import of synthetic lab-grown diamonds more than doubled to $62.3 million. Moreover, polished synthetic diamond import also surged 98 per cent to $69 million.
Sources said most of the synthetic lab-grown diamonds are imported from China and sold in the local markets in Surat and Mumbai. The diamantaires purchase synthetic diamonds from the market and then process them clandestinely in the factories located in Surat, Bhavnagar and Amreli.
Later, the polished synthetic diamonds are mixed with the natural diamond parcels to earn huge profit.
A DTC sightholder said, "There has been a phenomenal rise in the import of synthetic lab-grown diamonds this year. This could be attributed to phenomenal increase in rough diamond prices, forcing some to go for cheap synthetic lab-grown diamonds. The problem starts when these synthetic diamonds are mixed with natural diamond parcels without any disclosures."
A GJEPC office-bearer said, "This year's Christmas season has been very good for diamantaires. We are yet to calculate the total polished diamond export in November."
Source:- timesofindia.indiatimes.com
Turkey Toughens Requirement For Bank Guarantees To Import Diesel
Turkey has toughened the requirement for bank guarantees needed to import diesel in a bid to crack down on what it sees as an increase in tax evasion and smuggling, the customs minister said on Thursday.
The move, which came into effect late last week, is more likely to hit small importers in the short run and create a bottleneck at ports, but it could also damage even big importers' ability to bring in cargoes, traders say.
Diesel importers will now have to obtain a letter of guarantee for each diesel cargo they bring in, and the amount of the letter will have to cover the full value of the cargo plus taxes.
"There was a problem in collecting the Special Consumption tax of these cargoes," Minister Hayati Yazici told reporters, adding that some firms that imported the fuel failed to pay the tax incurred. "We have just started this" measure.
Energy-hungry Turkey consumed around 319,000 barrels per day (bpd) of diesel in 2012, a 6.1 percent increase from 2011, according to Turkish industry figures and data from its energy watchdog EPDK.
Around 175,000 bpd of that amount was imported, making Turkey the biggest importer of the fuel in the Mediterranean market. India, Italy and Greece were its biggest suppliers last year.
OMV Petrol Ofisi, Shell Turcas, BP, Koc Holding's Opet and Total are among the biggest diesel buyers in Turkey.
Traders said the new move was going a bit too far, however, because it usually takes at least six to seven months to obtain a bank letter of guarantee.
"It is a bit of a harsh measure. It hits companies that have been abiding by the law as well," one trader said.
Another Istanbul-based trader said, "If you think about a company which imports like seven to eight cargoes a month, you're talking about millions of liras worth of bank guarantees. That would stretch both the banks and the companies."
Market players expect the government to amend the regulation to avoid slowing or hampering much needed diesel imports.
"Smaller companies could halt diesel imports in the short run as they don't have such a cash balance required by this new regulation. But if it stays in effect longer, the financial burden would accumulate and even harm bigger companies," the second trader said.
Customs Minister Yazici said there were no plans to change the amount required for the bank guarantee.
"But we can help speed up the processing and the refund time of these bank letters. We are working closely with the Finance Ministry on this issue," he added.
Source:- in.reuters.com
Indon Beef Import Cuts Appear Unlikely
28-Nov-2013
Andrew Manners, research analyst with the Perth-based think-tank Future Directions International, said Indonesia has threatened to reduce imports of Australian beef and any cut would be a blow to the struggling cattle industry.
But Australia might not necessarily be in as weak a position as some commentators suggested.
He said Indonesia had been looking to other markets to diversify beef imports for some time and that had become a strategic goal, especially following Australia's controversial suspension of live cattle exports in June 2011.
Brazil and India have been suggested as possible alternative markets but Mr Manners said neither could be viable in the near to medium term.
Both have experienced outbreaks of foot and mouth disease. Indonesian legislation bars imports from countries where the disease exists but amendments could allow import of cattle from disease-free areas of Brazil, as Malaysia now does.
Brazil is a long way away with high transport costs. Indian cattle are cheap but questions have been raised about the quality of their beef, he said.
"So, while the current spying scandal is likely to have further encouraged Jakarta to look to other markets, especially as it seeks to diversify beef imports, any drastic reductions in Australian cattle exports appear unlikely," he said.
Mr Manners said the latest stoush had still hardened Indonesia's resolve to look elsewhere to solve its beef shortage.
"In the short term Indonesia is unlikely to suspend live cattle exports completely," he said.
Source:- news.ninemsn.com.au
If issue in civil suit differs from that in petition alleging oppression, later can’t be stayed pend
CL : Where issue in civil suit differed from that in company petition alleging oppression, later cannot be stayed pending civil suit
India Says Iran Nuclear Deal Eases Crude Oil Import Process
The Iranian oil imports are vital to some Indian refineries. Indian government had devised alternate ways to provide insurance to the tankers. There was limited sovereign guarantee to its insurance companies.
Indian Oil Corporation is the largest importer. For the financial year ending in March next year it plans to import 1.2 million tons of Iranian oil.
An Indian delegation of senior officials from various ministries is expected to visit Iran soon to discuss the oil payment mechanism. India is now expected to clear all dues to Iran for crude oil exports in foreign currency against the earlier agreed part payment in Indian Rupees.
Officials say India is likely to move swiftly and import more crude oil during this period so that it does not have to import oil from other countries which would make it difficult for it's refineries to process as they have been designed to process crude from Iran. India also does not need to use its reserves to meet its growing energy needs.
Bilateral trade between the two countries that is around 15 billion dollars at present is also expected to cross $ 20 billion during the period.
Analysts say now both countries will see greater opportunities to boost smoother trade and open more business channels without financial restrictions in coming months.
Source:- presstv.ir
Indian Rupee Falls 27 Paise To 62.41 On Month-End Us Dollar Demand
The Indian rupee fell for the first time in five days and ended 27 paise lower at 62.41 against the US dollar today on month-end demand from oil importers for the US currency, which strengthened in the overseas market.
The Indian rupee resumed lower at 62.38 per dollar from the previous closing level of 62.14 at the interbank foreign exchange market. It firmed up to 62.26 before ending at 62.41, a loss of 27 paise or 0.43 per cent.
The rupee had climbed to a three-week high of 62.14 yesterday.
There was strong dollar demand from oil refineries. Global crude oil prices fell to a six-month low on a surge in US stockpiles.
In New York, the dollar jumped to a six-month high against the Japanese yen yesterday. The US currency strengthened ahead of the Thanksgiving Day holiday as data showed unemployment claims dropped and consumer sentiment rose.
"Month-end oil-related dollar demand kept rupee under pressure, though local equities traded positively," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).
The 30-share benchmark Sensex rose 114.65 points, or 0.56 per cent, to 20,534.91. Overseas investors sold a net Rs 48.53 crore of shares yesterday, according to provisional stock exchange data.
"Going ahead, tomorrow's GDP and fiscal deficit data from India will be keenly watched by the markets," said Abhishek Goenka, CEO of India Forex Advisors.
Forward dollar premiums were mixed on alternate bouts of buying and selling transactions.
The benchmark six-month forward dollar premium payable in April declined to 225-227 paise from 227-229 paise previously while far-forward contracts maturing in October inched up to 467-469 paise from 466-468 paise.
The RBI fixed the reference rate for the dollar at 62.3896 and for the euro at 84.7547.
The rupee fell to 102.02 against the pound from 101.31 yesterday and moved down to 84.84 against the euro from 84.49 previously.
It advanced against the Japanese yen to 61.03 per 100 yen from the last close of 61.06.
Source:- financialexpress.com
No bar on Gold jewellery schemes seeking to lure buyers; PIL questioning such scheme dismissed
SEBI : Where scheme run by jewellery shop owners was not prohibited under any statutory provisions, public interest litigation for a direction to SEBI to take action against said scheme was to be dismissed
Interest on refund attributable to advance tax upheld as revenue failed to prove its relationship wi
IT: Where Assessing Officer allowed credit for MAT without payment of interest on quantum of tax refunded, in view of fact that what assessee was claiming was not interest on MAT paid for preceding assessment year but interest on refund to extent it was attributable to advance tax and TDS, assessee's claim for interest was to be allowed
No denial of input credit merely due to absence of assessee’s address in invoices
Cenvat Credit : Where there is no dispute that assessee had received input services and utilised them for providing output services, credit cannot be denied merely on ground that address of assessee was not mentioned on invoices on which credit was availed
Mere ad-hoc additions don’t justify concealment penalty, unless deliberate concealment found
IT: Where addition to assessee's income is made on estimate basis, penalty under section 271(1)(c) can not be imposed
Successor gets legitimate right to file winding up petition if respondent failed to pay debts of ama
CL : Where respondent company was unable to pay its debts and was taking frivolous objections, winding up petition against respondent was to be admitted
HC dismissed assessee’s writ for speedy disposal of appeal as he failed to pay of tax demand
IT : Where in appellate proceedings, assessee was directed to pay 50 per cent of tax due in instalments, on failure of assessee to pay said amount, its petition for speedy disposal of appeal could not be entertained
Commercial letting out without supplying services as found in hotel sector won’t be deemed as rentin
ST/UK VAT: Mere Commercial letting of residential property, without additional element of service supplied as found in hotel and allied sectors (such as housekeeping), cannot amount to renting of 'hotel, inn, etc.' and is not eligible for abatement/exemption available to renting of hotel, inn, etc.
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