IT: If a revision has not been decided by Commissioner with in stipulated period, it does not mean that revision stands allowed
Monday, 30 December 2013
Operating leases weren't liable to ST under 'Banking and other Financial Services' even prior to 1-6
Service Tax : For period prior to 1-6-2007, term 'financial leasing' in definition of 'Banking and other Financial Services' did not cover operating lease agreements in which there is no option to own or entitlement to own leased asset at end of lease period; such agreements could not be charged to service tax
Taxpayers be aware; late filing of VAT return due to accountant's illness can't avoid penalty
UK VAT : In case of unforeseen circumstances, assessee should take reasonable/prudent steps to try to comply with his obligations (including contacting local tax office); a delay of 28 days in furnishing returns cannot be explained merely by sudden illness of accountant and cannot, therefore, go unpenalized
LIBOR to be used as benchmark rate for fixing ALP of loan given by Indian co. to their foreign AEs
IT/ILT: Where loan was given in foreign currency to foreign subsidiary, international rate fixed being LIBOR should be taken as benchmarked rate for computing arm's length price
Cong Poll Push May Lead To Gas Cylinder Cap Being Raised
The government is set to relax the limit on subsidized cooking gas for homes as the Congress party looks for ways in which it can retrieve ground ahead of the general election after heavy defeats in recent assembly polls, a move that will mean a further retreat from the few reforms that the United Progressive Alliance put in place in its second term.
Households may be entitled to 12 gas cylinders per year at subsidized prices, up from nine now, if the government allows itself to be persuaded by Congress party leaders including chief ministers, according to people close to the development. Such a move may help the UPA recoup some of the political capital it has lost due to the rise in prices amid a slump in growth.
"Yes, there are some discussions about re-looking at the current annual cap on the supply of subsidized LPG cylinders," said a government official.
The UPA government had, in the face of economic difficulties brought on by sluggish growth and rising fuel prices, imposed a limit of six subsidized cylinders per household last year that was revised to nine early this year. The move aimed at slashing the subsidy burden was criticized by political parties and consumers, who said it would add to the burden of rising inflation.
The move to raise the cylinder limit fits in with what party president Sonia Gandhi identified as a key reason for the state poll debacle - rising prices.
The demand for a revision in the limit emerged at meetings on Friday held by party vice president Rahul Gandhi with chief ministers of states run by the Congress. Also in attendance were senior cabinet ministers and All India Congress Committee officials. They wanted an "immediate revision" of the gas cap and said it was a major source of "popular resentment" against the Congress and the UPA, according to a person who a person who was present at the meeting.
Implementation of the limit has created "economic problems for the consumers" and "social chaos", the person said.
The Congress leadership, including Gandhi, were sympathetic and understood the political reasoning of the party's regional satraps, according to this person.
However, any largesse in the final few months of the government's term will need to be balanced by finance minister P Chidambaram's determination to hold the "red line" on the fiscal deficit at 4.8% of gross domestic product, given that global rating agencies are watching for any slipups on this front.
A worried government is also looking to squeeze spending and maximize revenue collections in the last three months of the fiscal year amid uncertainty over whether the economy has bottomed out. Still, as ET reported on Monday, this may also mean refunds to exporters getting delayed to next year, along with subsidy payments to fertiliser and oil companies. So the bill for any increase in subsidized gas supplies may not come due this year.
Along with the cap on cylinders, the oil ministry had embarked on a campaign to identify genuine users and plug leakages through the direct transfer of subsidies, which has also led to substantial savings.
"We have blocked 67 lakh bogus connections, thereby reducing the annual subsidy burden by Rs 2,000 crore," oil ministry spokesman RC Joshi said on Friday.
The oil ministry, which aims to roll the plan out to more than 9 crore customers by January, has covered 6.57 crore customers in 184 districts since June. India has more than 14 crore cooking gas customers who are entitled to subsidized prices for home use. Those who exceed the nine-cylinder limit need to be buy gas at the market rate. In Delhi, the market price is Rs 1,021, while the subsidized rate is Rs 414.
The Friday meeting, which took place in the wake of the assembly elections, debated ways in which the party could tackle corruption and the price rise and drew up steps that India's 12 Congress-run states would adopt in this regard.
These include keeping fruits and vegetables out of the Agricultural Produce Markets Committee system to lower prices; invoking the Essential Commodities Act to deal with hoarding, black marketing and profiteering; reforming the public distribution system to eliminate leakages as stipulated in the Food Security Act; and setting up fair price shops to sell fruit, vegetables and eggs at reasonable prices.
These decisions "amounted to the leadership backing the governments effectively intervening" to deal with inflation, which amounts "to distancing itself from the economic theory of letting market factors decide prices," said the person cited above.
Source:- timesofindia.indiatimes.com
Cotton May Bloom Further On Higher Offtake
Cotton prices moved up on the back of higher export as well as domestic mills’ demand.Moreover, short supply also supported the price rise.Traders said that price may continue to go up as exporters are buying to complete their shipments.
Gujarat Sankar-6 gained Rs 200 to Rs 40,600-40,700 a candy of 356 kg. Kapas or raw cotton was traded up by Rs 7-10 to Rs 920-1,028 for a maund of 20 kg.
About 65,000 bales (of 170 kg) arrived in Gujarat and 2.03 lakh bales arrived in India. According to brokers, exporters are buying aggressively so that this week cotton price may gain more than Rs 500 a candy.
Till date nearly 1 crore bales have arrived in the market and approximately 2.75 crore bales are yet to arrive.
Mills and exporters are cautiously procuring cotton considering the financial tightness in the market.
The falling rupee has motivated the exporters and the textile mills to continue buying cotton cautiously as the international markets are sluggish.
The most-active March cotton contract on the ICE Futures US was up 0.29 per cent at 84.36 cents/pound.
Source:- thehindubusinessline.com
Gorgeous Gift; Gift can't be treated as unexplained if assessee hasn't filed return which he isn't l
IT: Where assessee had submitted balance-sheet before Assessing Officer and in balance-sheet closing balance or cash in hand was disclosed and entries in balance-sheet had not been disputed by Assessing Officer, opening balance could not be regarded to be undisclosed income
Cargo handling services out of purview of 'Port Services'; not liable to service tax
Service Tax : Since handling of cargo is excluded from scope of Cargo Handling Agency Services, it cannot come within purview of Port Service and cannot be charged to service tax
Cbi Ordered To Probe Export Of Ore From Nine Ports
The Karnataka Government has issued an order for conducting a probe by the Central Bureau of Investigation into illegal export of iron ore from nine ports, including Karnataka.
The CBI would conduct the probe into export of iron ore from Karwar, New Mangalore Port Trust, Mangalore, Krishna Pattanam, Kakinada, and Vishakapattanam, all in Andhra Pradesh, Ennore and Chennai in Tamil Nadu, Panaji and Mormugoa in Goa.
The State Cabinet meeting held October 17, 2013 has decided to hand over probe into illegal export of iron ore to the CBI.
The order said probe would determine the extent of illegal ore which has been exported, and to find out whether any criminal prosecution against any person or persons involved was necessary based on the findings of the Karnataka Lokayukta report chapters I, II and III and other relevant chapters of its second report submitted to the Government on July 27, 2011.
The CBI has already been probing Belikere missing iron ore case.
Former Karnataka Lokayutka Santosh Hegde’s final report estimated the loss of revenue to the State exchequer due to illegal mining in the State between 2006 and 2010 at more than Rs 16,000 crore.
The report had also named 797 officials. Following his indictment in the report, the then Chief Minister B S Yeddyurappa had to resign following the direction of the BJP’s central leadership.
Source:- thehindu.com
India Printed Books, Newspapers, Pictures And Other Products Of The Printing Industry Exports Rise To Us$ 340.26 M In November- 2013
InfodriveIndia.com, India's premier research company in export import market research, announced today that India's Printed Books, Newspapers, Pictures and other products of the Printing Industry exports in November- 2013 has grew to US$ 340.26 M, a increase of 27.75% compared to October 2013.
This finding is based on India Printed Books, Newspapers, Pictures and other products of the Printing Industry export data of InfodriveIndia.com and is based on export shipping bills filed at Indian customs by exporters from India through November- 2013 at more than 110 ports in India like JNPT, Bombay Air and Sea , Chennai Air & Sea , Delhi IGI Air, Delhi Tughlakhabad ICD, Delhi Patparganj, Kolkata Air and Sea, Bangalore Air and many more. InfodriveIndia.com India Printed Books, Newspapers, Pictures and other products of the Printing Industry Export database is considered to be the most comprehensive, up-to-date and authentic information on India's foreign trade of Printed Books, Newspapers, Pictures and other products of the Printing Industry.
According to Pradeep, Chief Research Associate of InfodriveIndia.com, compared to October 2013, a increase of USD 340.26 M in November- 2013 has been noticed. He further gives a analysis and break up of major product categories , major countries and major Indian ports under Printed Books, Newspapers, Pictures and other products of the Printing Industry as follows :
A. Exports of Unused Postage Revenue or similar Stamps of Current or New issue in the Country has grew month on month basis by 36.99%.
Total value of exports in November- 2013 was 315.45 M, compared to October 2013 , there is a increase of 85.17 M in November- 2013, growth rate in percentage terms is 36.99%, the major destination countries were United Kingdom, Switzerland, United arab Emirates, Bahrain and austria and major Indian ports were Delhi Air, Bombay Air, Cochin Air, Madras Air and Madras Sea.
B. Exports of Printed Books, Brochures, Leaflets and similar Printed Matter has fallen month on month basis by -25.39%.
Total value of exports in November- 2013 was 21.54 M, compared to October 2013 , there is a decrease of -7.33 M in November- 2013, growth rate in percentage terms is -25.39%, the major destination countries were Djibouti, United States, Mozambique, Nigeria and United Kingdom and major Indian ports were JNPT, Dadri-ACPL CFS, Delhi TKD ICD, Mundra and Delhi Air.
C. Exports of Printed Products including Printed Pictures and Photographs has fallen month on month basis by -35.05%.
Total value of exports in November- 2013 was 1.5 M, compared to October 2013 , there is a decrease of -0.81 M in November- 2013, growth rate in percentage terms is -35.05%, the major destination countries were Burkina Faso, Belgium, Madagascar, australia and Tanzania and major Indian ports were Madras Sea, Delhi Air, JNPT, Bombay Air and Bangalore Air.
D. Exports of Calendars of any kind Printed has fallen month on month basis by -39.39%.
Total value of exports in November- 2013 was 0.43 M, compared to October 2013 , there is a decrease of -0.28 M in November- 2013, growth rate in percentage terms is -39.39%, the major destination countries were Ghana, United States, United arab Emirates, Oman and Kenya and major Indian ports were JNPT, Bombay Air, Delhi TKD ICD, Madras Sea and Delhi PPG ICD.
Pradeep says that the above information is on major product categories, and users requiring detailed analysis and reports on their specific products can contact Sales team at InfodriveIndia.com with detailed description of their product, brand names and its uses.
According to Pradeep, usually InfodriveIndia.com team delivers most of the projects within 3 working days.
InfodriveIndia.com analysis and research is done from export statistics from Indian customs which is based on export shipping bills filed at various ports, InfodriveIndia reporters collect this data from every Indian port, and InfodriveIndia database yields the most timely, accurate, comprehensive information available on trade through India Ports. Recently after a long and persistent lobbying with Indian Govt, InfodriveIndia.com has been able to release export import data almost on realtime basis, bringing the backlog time to just 3 days, compared to Govt sources which are around 6 months old. Another unique feature of InfodriveIndia.com database is unparalleled coverage of 110 ports in India.
InfodriveIndia.com is 16 year old market leader and primary source of India Export data in India. The India Import Export data bank, which is at the core of InfodriveIndia.com trade information services is unique and has been categorized by Harmonized system in over 25,000 product codes. InfodriveIndia researchers provide expert data analysis and interpretation tools, Charts, Pivot reports in MS Excel and detailed item wise records to support decision-marking for International Trade, understanding India export market, competitive intelligence and brand protection.
World's top market research companies, Export promotion councils, trade associations, domestic and foreign governments, and over 15,000 corporates from more than 30 countries rely on InfodriveIndia.com for meaningful export import trade intelligence to guide their International business strategies.
Source:-indiaprwire.com
China Gold Imports From Hong Kong Fall 53 Percent As Price Drops
Gold shipments to China from Hong Kong declined by more than 50 percent in November as demand from investors weakened after prices slid for a third month.
Net imports, after deducting flows from China into Hong Kong, were 60.9 metric tons in November, from 129.9 tons in October, according to data from the Hong Kong Census and Statistics Department. Still, the amount in the first 11 months of the year has more than doubled to 1,017 tons, the data show.
Bullion fell 28 percent this year, set for the worst slump in three decades, as the Federal Reserve said it would taper stimulus. The price is set for the first annual drop in 13 years as some investors lose faith in the precious metal as a store of value amid a record rally in U.S. equities. Gold holdings in exchange-traded products slumped 33 percent this year.
“As bets on higher prices diminish, Chinese investors’ appetite for bullion seemed to be waning,” said Jiang Shu, a senior analyst at Industrial Bank Co. in Shanghai. “Anecdotal evidence from retailers here also presented the same picture that sales in the second half of this year weren’t as brisk as in the first half.”
The metal for immediate delivery in London traded at $1,198.76 an ounce at 11:48 a.m. Shanghai time, down 4.4 percent this month after a 5.3 percent drop in November. The price tumbled to a 34-month low of $1,180.50 on June 28. Bullion of 99.99 percent purity on the Shanghai Gold Exchange fell 6.7 percent last month, declining for a third month.
Gold, iron ore, soybeans and copper may drop at least 15 percent next year, Goldman Sachs Group Inc. said last month. Bullion has fallen 38 percent from a record $1,921.15 in 2011.
Overtaking India
Still, China is on course to overtake India as the world’s biggest bullion consumer as demand reaches 1,000 tons this year, according to the World Gold Council.
China’s demand for jewelry, bars and coins rose 30 percent to 996.3 tons in the 12 months through September, while usage in India gained 24 percent to 977.6 tons, according to the London-based WGC. While analysts in a Bloomberg News survey see consumption easing 2.4 percent in 2014 from a record 1,000 tons in 2013, purchases will still exceed those of any other nation and the U.S., Europe and the Middle East combined.
The mainland bought 107.4 tons last month, including scrap, compared with 147.9 tons a month earlier, such figures from the Hong Kong government showed. China’s purchases in November were 18 percent higher than the 90.8 tons a year earlier, according to the Hong Kong data. Mainland China doesn’t publish such data.
Exports to Hong Kong from China were 46.4 tons in November, according to a separate statement from the Statistics Department. That compares with 18 tons in October and 29 tons in November 2012.
Source:- bloomberg.com
Dollar On Track For Best Annual Gain Vs. Yen In 34 Years
The dollar held near a five-year high against the yen on Tuesday to be on track to end 2013 up nearly 21 percent, with efforts to revive the Japanese economy expected to see the trend of broad yen weakness extend into 2014.
The dollar eased 0.3 percent to 104.89 yen, inching away from Monday's peak of 105.41 yen, which was its highest since October 2008. It has risen 20.9 percent against the yen this year, its biggest annual gain since 1979 when it climbed 23.7 percent, according to Thomson Reuters data.
Differing outlooks for monetary policy in the United States and Japan have been key to the dollar's surge against the yen, and the start of the U.S. Federal Reserve's taper of its stimulus could lead to further gains for the dollar in 2014.
By contrast, markets expect the Bank of Japan to maintain or even increase its massive stimulus to beat deflation.
The yen has also retreated as sentiment on the U.S. and European economies improved, and as investors looked to borrow funds cheaply and then invest them in riskier assets.
Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation in Singapore, saw the dollar rising to 110 yen in the first half of next year, before retreating below 100 yen mid-year and then re-testing 110 yen again in late 2014.
Crucial to that outlook would be whether the Fed keeps reducing its bond-buying stimulus through 2014, he said.
In another sign of the yen's weakness, the euro has jumped 26.4 percent against it in 2013, the single currency's biggest such rise since its launch in 1999.
The euro was quoted at 144.71 yen, down 0.3 percent from late U.S. trade, after having set a five-year high of 145.67 yen last Friday.The Swiss franc hovered near a three-decade peak against the yen, fetching 118.08 yen. The franc touched 119.17 yen on Friday, its highest level since January 1983.
Against the dollar, the euro eased 0.1 percent to $1.3797, holding below a two-year high of $1.3894 set last Friday on trading platform EBS.
The euro has risen 4.6 percent against the dollar this year, putting it on track for its best annual gain versus the greenback since 2007.
The euro's strength this year has baffled many commentators and investors, who had expected tough economic conditions in some member states to weigh on the single currency.
But the euro has been boosted as banks in the region repatriate funds to shore up their capital bases before an Asset Quality Review by the European Central Bank, and as banks repay cheap crisis loans to the central bank, which tightens liquidity.
In addition, ECB President Mario Draghi has said he saw no urgent need to cut the euro zone's main interest rate further and saw no signs of deflation.
Source:- reuters.com
Presence of other players in relevant market proves competitions; no abuse of dominant position by o
Competition Act: Presence of other traders of repute of truck and trailer parts and accessories in Rajasthan showed prevalence of competition and, therefore, OP not being a dominant player in market could not abuse its dominance
Order passed by Commissioner under sec. 73C isn't appealable before Tribunal
Service Tax : Since section 86 provides for appeal only against orders passed by Commissioner under section 73 or 83A, order passed by Commissioner under section 73C is not appealable to Tribunal
HC allows deduction of sales tax liability on its conversion into a loan
IT: Where sales tax liability was converted into a loan within relevant previous year, assessee was entitled to claim deduction for same
Computer accessories and peripherals are integral parts of computer; eligible for depreciation at 60
IT: Computer accessories and peripherals being an integral part of computer systems are eligible for depreciation at higher rate of 60 per cent
Import of goods at higher value doesn't imply acceptance of such higher value by importer
Customs : Merely because importer has cleared goods at enhanced value to save demurrage charges or otherwise, by itself, does not mean that importer is consenting to enhance value; it is right of importer to contest enhancement and fact of clearance of goods, cannot preclude importer from exercising right of appeal
No concealment penalty if income was voluntarily disclosed by assessee before its detection by AO, r
IT: Where amount of duty drawback and dividend income from foreign companies was offered to tax by assessee voluntarily, penalty under section 271(1)(c) could not be imposed
Services to exporters against FMS Scrips - Meat, cotton liable to export-duty not to be counted for
GST : Section 93 of The Finance Act, 1994 - Exemptions - Service Tax - Exemption to Services Provided to Exporters Against Debit to Focus Market Scheme Duty Credit Scrip (FMS Scrip) - Meat, Cotton/Yarn and Exports Subject to Minimum Price or Export Duty Not to be Counted for Export Performance/Entitlement
No place for mutual compromises in I-T appeals; revenue can’t lure assessee to ignore other grounds
IT/ILT: Where safe harbour margin of +/- 5 per cent was allowed on condition of not adjudicating other contentions of assessee, matter required readjudication
HC aims to avoid prolonged litigation; directs authorities to settle refund claims after disposing o
Central Excise : Where, in remand order, all relevant issues were kept open by Tribunal for adjudication before Assessing Officer such order did not give rise to any substantial question of law so as to be appealable before High Court
No ST leviable on designs and drawings which are subject to customs duty on import
Service Tax : Sum paid for import of designs and drawings from foreign collaborator, which is classifiable as goods under Customs Tariff, is not leviable to service tax
Diagnostic service isn't akin to rescue service for purpose of grant of VAT exemption
UK VAT : Diagnostic services are different from rescue services; hence, goods purchased for diagnostics are not eligible for VAT exemption, which is available only to goods purchased for 'rescue'
No recovery proceedings would continue until assessee's request under ST amnesty scheme was decided
ST : Unless assessee's application under Service Tax Voluntary Compliance Encouragement Scheme is considered and decided, no proceedings under section 87 of Finance Act, 1994 may be allowed to continue, otherwise very object of said scheme would be defeated that entitles assessee to make payments in installments
Proviso to sec. 69C has retro effect, rules HC
IT: Where assessee was unable to justify part of expenditure, same was rightly treated as unexplained expenditure
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