IT/ILT : While computing income arising from international transaction, adjustment is to be limited to international transaction with AE's; same do not include transaction with non AEs entire segments
Thursday, 5 December 2013
Transport subsidy received by industrial undertaking is deductible under sec. 80-IA
IT: Transport subsidy received by an industrial establishment is deductible under section 80-IA
Interest on refund must be granted even if refund request isn't made by assessee
Excise & Customs : Interest on refund is required to be granted under section 11BB of Central Excise Act, 1944 when claim is sanctioned beyond a period of three months from date of application without even assessee applying for it
Retro amendment akin to double edged sword; HC permits rectification and reopening of assessment
IT : In case of retrospective legislative amendment, rectification under section 154, as well as reopening of assessment under section 147 are permissible as they are not mutually exclusive
Over 18,000 Additional Posts To Be Created In Indirect Tax Wing
The Indirect Tax wing of the Finance Ministry, consisting of Custom, Excise and Service Tax Department, will get over 18,000 new recruits.
This is a part of cadre restructuring proposal of the Central Board of Excise and Custom (CBEC) as approved by the Cabinet on Thursday.
The move is expected to help boost revenue collections, as additional posts will be created.
“Indirect tax personal strength has not been expanded since 2002, while revenue target and collection are increasing every year which highlighted the need for restructuring,” a senior Government official told Business Line.
Categories
According to the official, a total of 18,067 additional posts will be created. Out of this, 989 posts will be for Group ‘A’ officials such as Chief Commissioner, Commissioner and Assistant Commissioners. The remaining will be for Group B, C and other category consisting of Superintendents, Inspectors, Havaldars and field staffs. Currently, the sanctioned strength of CBEC is 66,808.
It has also been decided to create 2,118 temporary posts for five years.
“This will enable Superintendent-level personal to get promoted to Group A officer as Assistant Commissioner,” the official said adding that there has been stagnation at this rank. This, along with filing up of cascading vacancies, will clear stagnation up to 2010 batches partially.
The whole exercise is expected to be completed in the next two years.
Expenditure
Although, creation of additional posts will involve an expenditure of approximately Rs 774 crore, it will help in collecting around Rs 68,000 crore annually.
In May this year, the Cabinet had approved creating 20,751 additional posts in the Income Tax Department in various cadres to help in increasing revenue.
It was said that expected expenditure of Rs 450 crore is likely to bring more than Rs 25,000 crore of revenue per annum.
Cadre restructuring of CBEC is taking place at a time, when the Finance Ministry has set a target of Rs 5.65 lakh crore indirect tax collections for 2013-14 which is 19 per cent higher than 2012-13.
However, indirect taxes grew by juts over 5 per cent in first seven months (April-October) in the current fiscal.
Source:- thehindubusinessline.com
Technical Textile Market In India 2012-2016: Exports Are Expected To Increase To 20-25 Percent Of The Total Products Manufactured
The analysts forecast the Indian Technical Textile market to grow at a CAGR of 21.36 percent over the period 2012-2016. One of the key factors contributing to this market growth is the existence of favorable government policies. The Indian Technical Textile market has also been witnessing an increase in the export of technical textile products. However, the high cost of raw materials could pose a challenge to the growth of this market.
The key vendors dominating this space include Century Enka Ltd., JBF Industries Ltd., SRF Ltd., and Supreme Nonwovens Pvt. Ltd.
The other vendors mentioned in the report are Bhilwara Melba De Witte Pvt. Ltd. (BDM), CTM Technical Textiles Ltd., Entremonde Polycoaters Ltd., Garware Wall Ropes Ltd., Kusumgar Corporate Pvt. Ltd., and Techfab India Industries Ltd.
Commenting on the report, an analyst from the team said: Currently, the Technical Textile market in India exports 7-8 percent of technical textile products being manufactured in the country. However, with the growing innovations in product line and changing technology, the exports are expected to increase to 20-25 percent of the total products manufactured. With the various government initiatives and subsidies being offered to manufacturers, the Technical Textile market in India is expected to increase its exports during the forecast period. This will place India among the top exporters of technical textile products in the world.
According to the report, one of the main drivers in this market is the favorable government policies being implemented in recent years. Moreover, the Government of India has come up with various schemes to offer financial assistance to manufacturers of technical textiles. To further boost the growth of this market, the government is making budgetary allocations for technical textiles.
Further, the report states that one of the main challenges in this market is the high cost of raw materials and power. Manufacturers have to import raw materials from foreign countries, which increases the overall production cost of technical textiles. Apart from the raw materials, the cost of procuring power for these industries is very high in India.
Source:- einnews.com
Cognizant In Talks With W Bengal Govt On Pollution At Sez
05-Dec-2013
IT-major Cognizant is in discussion with the West Bengal Government to resolve issues relating to environmental pollution in and around its second campus, located at Bantala, some 20-odd km east of the city.
Interestingly, the campus is situated inside an area which also houses a leather complex, the Calcutta Leather Complex (locally called Bantala Leather Complex). Apart, from the leather complex some 1,100 acres of land is earmarked in the same compound as an IT-SEZ (special economic zone).
However, the common effluent treatment plant of the Calcutta Leather Complex is not working at optimum levels. And, toxic waste overflowing into adjoining areas has created major environmental hazards. The pollution caused by the chemical effluent is affecting the construction activities taken up by many of these companies.
Cognizant remains the only software major to have started operations in the Bantala area.
According to a Cognizant company official, the IT firm was trying to work out ways relating to the pollution – particularly the stench and fear of contamination of water – around its campus.
“The pollution, however, has not impacted its plans for investment in the State or stopped work in the area. We are in discussions with the Government to work out ways,” the official maintained on the sidelines of Infocom 2013.
Investment in Bengal
Cognizant’s second campus is spread over 20 acres and is being developed in phases.
While the first phase, built at an estimated cost of Rs 200 crore, is already operational; the second one is in development stages.
The second phase will come up at an estimated investment of over Rs 200 crore, with a capacity to accommodate 4,800 professionals.
The company already has an existing campus at the IT-city of Salt Lake in Sector V. It employs around 12,000 people across its operational campuses.
Source:- thehindubusinessline.com
Palm Imports By India Seen Surging As Reserves Replenished
Palm oil imports by India, the world’s biggest buyer, probably climbed for the first time since June as traders rebuilt reserves from the lowest level in 21 months amid a delay in the domestic oilseed harvest.
Shipments of the main crude and refined oils jumped 15 percent to 700,000 metric tons in November from a year earlier, according to the median of estimates from five processors and brokers compiled by Bloomberg. Total vegetable oil imports, including for industrial use, rose 31 percent to 920,000 tons from a year earlier, the survey showed. The Solvent Extractors’ Association of India will release the data next week.
Rising Indian demand may trim stockpiles in Indonesia and Malaysia, the world’s biggest producers, and help extend the first annual increase in futures in Kuala Lumpur in three years. Palm prices are set to extend a bull market rally as output drops in Indonesia and biofuel mandates expand globally, according to Dorab Mistry, director at Godrej International Ltd.
“In view of bullish palm markets and lower crush of soybeans within the country, Indian palm refiners have imported more palm oil,” said Nagaraj Meda, managing director of TransGraph Consulting Pvt. A prolonged monsoon season delayed the soybean harvest and damaged the crop in some regions, according to the Soybean Processors Association of India.
Cooking oil stockpiles at ports and pipelines in India may have risen to 1.51 million tons as of Dec. 1, Meda said. Inventories dropped to 1.4 million tons at the start of November, the lowest level since February 2012, according to the extractors’ association. India meets more than 50 percent of its annual cooking oil demand through imports.
Palm oil for delivery in February was little changed at 2,639 ringgit ($820) a ton on the Malaysia Derivatives Exchange by 11:15 a.m. in Kuala Lumpur today. Prices, which entered a bull market last month, will trade from 2,600 ringgit to 2,900 ringgit between now and March, Mistry told a conference in Bandung, Indonesia, on Nov. 29.
The delay in soybean harvest because of monsoon rains boosted cooking oil shipments last month, said Ashok Sethia, executive director of Sethia Oils Ltd. The soybean processors’ association cut the output estimate to 12.2 million tons on Oct. 28 from 12.98 million tons after rains damaged the crop.
“From this month, palm imports will slow as local oils are quoting at a discount to imported oils because of the new oilseed crop harvest,” said Sandeep Bajoria, chief executive officer of Sunvin Group in Mumbai. “Another reason is that the gap between palm and soybean oil has narrowed.”
Palm’s discount to soybean oil narrowed to $76.48 a ton yesterday, compared with an average $256 this year, according to data compiled by Bloomberg. Crude soybean oil imports probably jumped to 100,000 tons in November from 14,160 tons a year earlier, while sunflower oil purchases may have jumped to 100,000 tons from 47,500 tons, the survey showed.
Vegetable oil purchases in the year that began on Nov.1 surged 4.8 percent to a record of 10.7 million tons, data from the association showed. Imports may climb 4.2 percent to 11.1 million tons this season, including 8.3 million tons of palm oil, Godrej’s Mistry estimates.
Source:- www.bloomberg.com
Indian Exports To Weigh On Sugar Prices, Iran Market Eyed
A pickup in Indian sugar exports will weigh on global prices after a standoff was resolved between mills and farmers over the cane price, and sales to Iran look increasingly likely.
Analysts expect India to be a net exporter of sugar in 2013/14, selling at least 1.5 million tonnes and possibly more than 2.0 million depending on price movements in coming months.
ICE raw sugar futures slipped to three-month lows this week after news that the cane crush in India had begun, signalling more exports.
ICE raw sugar futures were down 0.1 cent or 0.6 percent at 16.58 cents a lb on Thursday, near a three-month trough of 16.55 cents, and well below 19 cents a lb, considered to be a level at which Indian mills would be hoping to export.
Mills in India are struggling because they have to pay supported cane prices to farmers, while domestic and international sugar prices remain depressed.
Crushing was delayed as farmers in Uttar Pradesh and other states demanded an increase in the cane price to compensate for a rise in fuel and fertiliser rates. The dispute was temporarily resolved on Sunday.
"Local prices are falling continuously, but still mills are not able to sell sugar and raise money to make cane payments," a Delhi-based dealer said. "This may force some mills to agree to exports at lower prices."
Abinash Verma, director-general of the Indian Sugar Mills Association (ISMA), said he expected India to export 2 million tonnes of sugar in 2013/14, of which around 500,000 tonnes had been booked so far, some destined to the Al Khaleej refinery in Dubai, which has traditionally been a buyer of Brazilian sugar.
Sterling Smith, a futures specialist with Citigroup, said mills in India would want to export to generate cash.
"We are awash in sugar. The impasse being broken in India will put another 1.5 to 2 million tonnes in the export corridor. And given the economic situation in India, they're going to be willing to export," Chicago-based Smith said.
STRUGGLING MILLS
Analyst Stefan Uhlenbrock of F.O. Licht, said the current climate of weak sugar prices would squeeze mills' margins.
"Mills will amass losses in this season in India and cane payment arrears will pile up," he said.
A committee headed by Farm Minister Sharad Pawar and comprising food, finance and oil ministers is expected to meet on Friday to decide financial assistance to sugar mills.
Some analysts expect the government to provide a transport subsidy to the mills, but say any support was likely to be too little to make much difference to mills' financial health.
"Any new assistance to the mills will be insignificant," said Robin Shaw, sugar analyst with Marex Spectron.
"India will export as soon as the world price rises above the domestic price. Therefore India will be a major obstacle to any rally in the world market."
Indian exporters are expected to muscle out competition from Brazil and Thailand to regional markets such as the Dubai Al Khaleej refinery and Iran because of their freight advantage.
Indian dealers are trying to seal deals with Iran as the country is ready to pay a premium over global prices.
The sanctions-hit country has contracted nearly 200,000 tonnes of raw sugar and can buy much more, dealers said.
Sanctions aimed at curbing Iran's nuclear ambitions imposed by Western countries forced India to trim oil buying from Iran, but India remained a big customer.
In 2012 as sanctions stalled dollar payments, India started settling part of its oil debt in rupees and Iran used those rupees to buy goods from India.
"Iran can emerge as the biggest buyer of Indian raw sugar. It has a lot of potential. It wants to utilise rupees lying in Indian banks," said Kamal Jain, a Pune-based broker.
Source:- economictimes.indiatimes.com
ESPN to share live broadcasting of all national sporting events with Prasar Bharti without advertise
Misc : Whosoever airs a live television broadcast of sporting events of national importance must share same with Prasar Bharti without any advertisements inserted
India To Import $300 Billion Electronics Products By 2020
The Prime Minister Dr Manmohan Singh on Thursday said that India will be importing electronics products worth about 300 billion dollars by 2020, , which will be more than the value of our imports of petroleum products.
"India Telecom series of conferences has been of great benefit to various stakeholders in the telecom sector in our country. I have no doubt that this event this year will see similar success," said Dr Singh at the inauguration of India Telecom 2013 in New Delhi.
"A new policy regime, the National Telecom Policy 2012, was announced last year, bringing clarity on a number of complex issues. We have attempted to simplify the licensing regime, and to ensure adequate availability of spectrum for provision of telecom services and its allocation in a transparent manner through market-related processes," said Dr Singh.
"I understand that the Department of Telecommunications has already started issuing Unified Licenses and will also shortly issue the Merger and Acquisition guidelines. We have raised the Foreign Direct Investment limit in the telecommunications sector from 74% to 100%. I am confident that all these measures will go a long way in addressing the concerns of investors and provide a new impetus to the growth of telecommunications industry in our country," said the Prime Ministe.
"Today services like travel bookings, banking, shopping and education are increasingly being delivered through the Internet. Rapid advances in technology are also resulting in newer uses of this medium," said Dr Singh.
Similarly, combining a computer with 3G connectivity can revolutionize the delivery of education. Students can learn the subject of their choice from quality teachers without leaving the place of their residence.
"I am told that the Telecom Commission is working on such possibilities and I wish them all success in this noble endeavour," said Dr Singh.
"Our Government is alive to the need for expansion of telecom services in the rural areas. One of the key objectives of the National Telecom Policy 2012 is to increase rural tele-density to 70% by the year 2017 and 100% by the year 2020. The Policy also recognizes telecom and broadband connectivity as a basic necessity and aims to provide reliable and affordable broadband access to rural and remote areas in our country," said Prime Minister.
"A scheme to extend financial support from the Universal Service Obligation (USO) Fund for providing mobile communication services in 56000 uncovered villages of our country is on the anvil. This scheme will give priority to the uncovered villages of the North Easten sector," according to a Prime Minister's Office statement.
"We have also approved a scheme for installing mobile towers at about 2200 locations in areas affected by Left Wing Extremism (LWE) at an estimated cost of about Rs. 3000 crore. This too will be financed by the USO Fund," Prime Minister's Office mentioned in its statement.
The Prime Minister also said that we need to act now to avoid a situation where we face difficulties in financing these huge imports. India should have manufacturing facilities which result in a balanced trade in electronics products and are a part of global supply chains.
Source:- voicendata.com
Import Vehicle Sales Up 21.5% In Nov.
Sales of imported foreign-brand vehicles in November rose 21.5 percent from a year before to 23,982 units, growing for the 19th straight month, the Japan Automobile Importers Association said Thursday.
Sales of fuel-efficient compact cars and luxury vehicles of over ¥10 million were strong.
In January-November, imported vehicles accounted for 8.3 percent of cumulative overall new vehicle sales, excluding minivehicles. As a result, the proportion of imported vehicles in 2013 is expected to top the record 7.7 percent marked in 2011. In November, Volkswagen was the top-selling foreign brand for the second consecutive month, with sales increasing 41.8 percent to 6,499 units, followed by Mercedes-Benz with 4,393 units, up 41.9 percent, and BMW with 3,850 units, up 14 percent.
Source:- the-japan-news.com
Rubber Board Demands A Ban On Natural Rubber Import
The executive committee of the Rubber Board, which met to discuss issues related to rubber price demanded a ban on rubber import. If that was not possible the meeting called for temporary suspension of imports against advance license (duty free import).
Another suggestion raised in the meeting was to raise the import duty to 25 per cent without imposing any cap on the maximum limit. The members also urged the central and state governments to implement a scheme for joint procurement of rubber. It was also suggested that the purchase tax of 5 per cent levied by the Kerala government be reduced.
The meeting wanted maximum publicity to be given to measures such as road rubberisation, and steps to restructure the price stabilization fund so as to make it more beneficial to the growers.
Rubber Board chairman, Sheela Thomas, who presided over the meeting, informed the members that the sentiments expressed by them would be brought to the notice of the Central Government and the board would spare no efforts to take the maximum possible measures within its jurisdiction, in this regard.
Source:- economictimes.indiatimes.com
Curbs On Gold Import Leads To High Levels Of Smuggling News
Indian gold smugglers are adopting the methods of drug couriers to sidestep a government crackdown on imports of the precious metal - stashing gold in imported vehicles and even using 'mules' who swallow nuggets to try to get them past airport security.
The government is desperately trying to curb gold imports in a country that loves the yellow metal, and is its biggest consumer, in order to reduce its high trade deficit. Amid a record duty on imports, dealers and individual customers are fanning out across Asia to buy gold and sneak it back into the country, says a Reuters report.
Sri Lanka, Thailand and Singapore are the latest hotspots as authorities crack down on travellers from Dubai, the traditional source of smuggled gold. Informers who help bust illegal gold shipments can get a bigger reward in India than those who help catch cocaine and heroin smugglers.
"Gold and narcotics operate as two different syndicates but gold smuggling has become more profitable and fashionable," said Kiran Kumar Karlapu, an official at Mumbai's Air Intelligence Unit. "There has been a several-fold increase in gold smuggling this year after restrictions from the government, which has left narcotics behind."
From travellers laden head-to-toe in jewellery to passengers who conceal carbon-wrapped gold pieces in their bodies in the mistaken belief that it will not set off metal detectors, Indians are smuggling in more bullion than ever, government officials say.
This suggests that official data showing a sharp fall in gold buying may significantly underestimate the real level of gold flows.
The World Gold Council estimates that 150 to 200 tonnes of smuggled gold will enter India in 2013, on top of the 900 tonnes of official purchases. Between April and September alone, India's customs officials seized nearly double the amount of smuggled gold it nabbed in all of 2012.
"Though the quantum of seizures has increased, in our opinion it reflects only 1 to 2 percent of total smuggling," said a revenue intelligence officer in Mumbai who declined to be named. "Dubai is still the number one place from where gold gets in and Singapore is slowly emerging. Sri Lanka has become a staging point."
Grappling with a high trade deficit and a weak currency, India imposed measures this year to crimp demand for gold, the second most expensive item on its import bill after oil. It imposed a 10 per cent duty on gold and a 15 per cent tariff on gold-based jewellery.
Source:-domain-b.com
RBI seeks to shield savings of poor from inflation; launches Inflation Indexed National Savings Secu
IT : Inflation Indexed National Saving Securities- Cumulative (IINSS-C)
SEBI further simplifies and rationalizes the demat account opening process
SEBI : Simplification of Demat Account Opening Process
RBI gives teeth to infrastructural sector; allows cos to raise ECB for project use in Special Purpos
FEMA/ILT : External Commercial Borrowings (ECB) by Holding Companies/Core Investment Companies for The Project Use in Special Purpose Vehicles (SPVs)
SEBI releases updated format for disclosure of statement of assets and liabilities in offer document
SEBI : Illustrative Format Of Statement of Assets & Liabilities in SEBI (ICDR) Regulations, 2009
Payment of self-assessment tax instantly on detection of default saves assessee from clutches of pen
IT : Where assessee filed return of income on 28-9-2009 and paid self-assessment tax under section 140A on 19-1-2010, since assessee had paid self-assessment tax immediately when fact regarding non-payment came to its notice, it was not liable for penalty to be levied under section 221(1)
Refund claim by SEZ units to be filed before department of commerce
Excise & Customs : In absence of any specification of appropriate authority for filing of refund claim by SEZ units, refund claim by SEZ unit was directed to be filed before Department of Commerce
Transfer of 'leasehold' rights in a land or building bypasses deeming fiction of section 50C
IT: Section 50C cannot be invoked to a transfer of leasehold rights
Jurisdiction of AO to determine ALP doesn't get extinct when a reference is made to TPO
IT/ILT: Jurisdiction of Assessing Officer to determine ALP does not get excluded on reference being made to TPO
Even info from CBI won't authorize search unless it is based on reasons given under sec. 132(1)
IT : Search conducted in pursuance of authorization issued in absence of the eventualities mentioned in clauses (a) to (c) of sub-section (1) of section 132, cannot be said to be valid search
No settlement if goods were smuggled through baggage without filing baggage declaration form
Excise & Customs : Settlement Commission has jurisdiction to settle cases, even in case where no bill of entry has been filed for imported goods, if same has been cleared under a Baggage Declaration Form; however, in case of smuggled goods cleared without even filing baggage declaration form, no settlement application can be filed
Sale of vouchers entitling holder to receive various services, is liable to service tax
ST/UK VAT : In case of sale of vouchers entitling holder a right to receive various services, such sale amounts to 'supply of right to receive service', which is itself a 'service' liable to service tax and entire consideration received for supply of such right constitutes value of such service
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