Interest accrued on loan taken from State Government was allowable even without its actual payment

IT: Where assessee was following mercantile system of accounting and debited interest payable on loan advanced by State Government in books of account but no interest was ever paid by assessee, assessee was entitled for deduction under section 36(1)(iii)

No ST on dealers of SIM cards on commission earned by them if entire face value was taxed in hands o

Service Tax : A dealer/distributor of SIM cards/recharge vouchers is not liable to service tax on discount/commission earned by him when, undisputedly, entire amount including such discount/commission had been taxed in hands of telecom company

Tribunal is supposed to analyze legal provision, it can't remand matter despite availability of all

IT: When all materials which were necessary for deciding issues on need of TDS on reinsurance paid to non-resident reinsurers were there before Tribunal, Tribunal was not justified in ordering remand

Sec. 221 penalty to be levied only if assessee defaulted in payment of taxes and not interest: HC

IT : Where assessee was in default in making payment of interest, no penalty under section 221(1) could be levied

Upholding a similar issue by HC in earlier assessment years isn't a good argument to dismiss an appe

IT: Where assessee challenged maintainability of appeal filed by revenue against deletion of addition made under section 68 contending that order of Tribunal on said issue in earlier assessment years had been upheld by High Court, in view of fact that Court did not have occasion to consider orders of Tribunal in those years, assessee's objection was to be set aside and appeal was to be admitted for disposal on merits

Indian Rupee Closes 12 Paise Down At 62.68 Against Us Dollar, Fiscal Deficit Weighs

Falling for the second day, the Indian rupee today weakened by 12 paise against dollar to end at 62.68 weighed down by demand for the American currency from importers and data showing fiscal deficit crossed 95 per cent of the annual target during April-December.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced firm at 62.40 a dollar from previous close of 62.56 and moved in a range of 62.35 and 62.77. Amid fears of outflows after the US Federal Reserve further cut its stimulus by USD 10 billion, the Indian rupee concluded at 62.68, a fall of 12 paise or 0.20 per cent. The Controller General of Accounts said the fiscal deficit touched Rs 5,16,390 crore or 95.2 per cent of the annual target during April-December.

The government had fixed the fiscal deficit target-- the gap between expenditure and revenue -- at Rs 5,42,499 crore or 4.8 per cent of the GDP in Budget 2013-14.

Yesterday, Indian rupee dipped by 15 paise or 0.24 per cent.The dollar index was up by 0.13 per cent against a basket of six major global rivals today.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, "The rupee continued to trade weak for the second consecutive day. It opened on a strong note but during the day lost all its gain taking cues from dollar index.

"The dollar traded strong as tapering has already started and asset purchases are expected to end in 2014. Trading range for the USD/INR pair is expected to be within 62.00 to 63.50." For the week, Indian rupee depreciated by two paise. In January, it slid 88 paise against the dollar.Meanwhile, forward dollar premiums declined on fresh payments by exporters.

The BSE Sensex six-month forward dollar premium payable in July moved down to 252-254 paise from 253-255 paise previously. Far forward contracts maturing in January also dropped to 494-496 paise from 497-499 paise.The RBI fixed the reference rate for the dollar at 62.4768 and for the euro at 84.6022.The rupee fell back slightly to 103.14 against the pound from 103.09 while declined further to 61.27 per 100 Japanese yen.

Source:- financialexpress.com

Case remanded as CIT(A) decided taxability of sums paid to NR without examining its PE in India

IT/ILT: Where Commissioner (Appeals) decided a question which was not emerging out from assessment order and relevant issue whether recipients had permanent establishment or not, was not looked into, matter needed re-adjudication

PSUs are also liable to comply with pre-deposit requirement; HC upheld pre-deposit order on ONGC

CST & VAT : There is no proposition of law that in case an assessee is Public Sector Undertaking, there shall be a total waiver of pre-deposit; hence, such undertakings are also liable to make pre-deposit, pending appeal, in accordance with law

CA found guilty of misconduct on facts and in conformity with ICAI Act was not to be interfered: HC

Chartered Accountants Act: Where findings of council of ICAI that respondent-chartered accountant was guilty of misconduct were based on material on record and were not contrary to law, same were to be upheld

Due date of DVAT Audit extended to 28-2-2014

GST : VAT/CST : Sections 49 And 70 Of The Delhi Value Added Tax Act, 2004, Read With Rule 42a Of The Delhi Value Added Tax Rules, 2005 - Vat Audit - Time-Limit For Submission Of Vat Audit Report For The Year 2012-13 In Form Ar-1 Extended To 28-2-2014, From Earlier Time-Limit Of 31-1-2014

ST Mega Exemption - Governmental authority may be established by Government

GST : Section 93 of The Finance Act, 1994 - Exemptions - Service Tax - General - Definition of 'Governmental Authority' Expanded to Include Authority or Board or Any Other Body Established by Government With 90% or More Participation by Way of Equity or Control to Carry out Function Entrusted to Municipality

Gold, Silver Tumble On Heavy Selling, Global Cues

Gold tumbled by Rs 310 to Rs 30,290 per ten grams in the national capital on Friday on heavy sell-off by stockists and a weak global trend.Silver also declined by Rs 900 to Rs 43,600 per kg on poor offtake by industrial units and coin makers amid a steep fall in international markets.

A similar weakening trend was also witnessed in Mumbai, as gold of 99.9 and 99.5 per cent purity fell by Rs 160 each to Rs 30,100 and Rs 29,950 per ten grams, respectively. Also, silver plunged by Rs 600 to Rs 44,450 per kg.

Traders said heavy selling by stockists, sparked by a weak global trend as faster economic growth signals more monetary stimulus cuts in future, mainly pulled down metal prices.

Gold in New York, which normally sets price trend at the domestic front, plunged by 1.94 per cent to $ 1,243.10 an ounce and silver by 2.92 per cent to $ 19.14 an ounce.

Besides, strengthening of the rupee against the American currency, which makes the import of the dollar-priced precious metals cheaper, further dampened the sentiment, they said.

At the domestic front, gold of 99.9 and 99.5 per cent purity suffered a setback of Rs 310 each to Rs 30,290 and Rs 30,090 per ten grams, respectively. Sovereign held steady at Rs 25,250 per piece of eight grams.In a similar fashion, silver ready dropped by Rs 900 to Rs 43,600 per kg and weekly-based delivery by Rs 885 to Rs 43,315 per kg.Silver coins held steady at Rs 86,000 for buying and Rs 87,000 for selling of 100 pieces

Source:- thehindu.com

Training in journalism, media, films, etc., is vocational training; exempt from service-tax

Service Tax : Training in fields like journalism, media management, drama, films, T.V. and Radio anchoring etc. amounts to 'vocation training' and is exempt from service tax and assessee cannot be asked to prove that one or some or all of students of assessee-institute obtained employment or have pursued self employment after completion of training

Interest received from builder due to non-delivery of flat not a capital receipt; taxable as other s

IT: On builder's failure to deliver flat by a specified date, compensatory interest received by assessee on refund of deposit amount was assessable as interest income under section 56

Turkey Can Double Iran Gas Imports If Price Agreed: Minister

Turkey could double the amount of natural gas it imports from Iran if the two countries can agree on a price, Turkish Energy Minister Taner Yildiz said, a day after a visit to the Islamic republic, Hurriyet Daily News reports.

In an interview with Reuters, the minister said natural gas purchases from the Islamic republic was a key topic during Prime Minister Recep Tayyip Erdogan’s visit, but added that the two sides were still far from agreeing on a price.

“We have discussed how we could increase our imports to 20 billion cubic meters and the price mechanism needed for that,” Yildiz said, adding that Turkey had insisted on a reduction in the gas price.

Iran has responded by offering to sell more gas to energy-hungry Turkey and the offer is being considered, he said. “We have not found their price offer satisfactory at this stage,” he added.

“Obviously, without the price being agreed upon, we can’t sign such a deal. Our teams will continue to work on this,” Yildiz said.

Turkey has long maintained that Iranian gas prices are too high. Turkey’s state-owned Petroleum Pipeline Corporation (BOTAS) applied to an international court of arbitration in 2012 over the gas price in a case that is still pending.

Turkey depends on imports for almost all of its natural gas needs, which are expected to reach 52 billion cubic meters this year.

The $60 billion energy bill Turkey has to fund annually has been the biggest driver of its ballooning current account deficit and is seen as the main weakness of the economy.

“We have also discussed a barter system with Iran, through which we could swap various goods with energy imports,” Yildiz said, without giving further details.

During the interview, Yildiz also said Turkey would stand by a consensus reached in December 2013 between Ankara, Baghdad and Arbil to seek Baghdad’s permission, but not its blessing, in exporting Iraqi Kurdistan’s oil.

“Before the Baghdad trip, we were asked if we could say we will not be exporting any oil without Baghdad’s approval. We responded saying ‘No, we cannot,’” Yildiz said.

Yildiz traveled to meet Iraqi Deputy Prime Minister Hussain al-Shahristani in early December, en route to Arbil. His presence at an Arbil oil conference signaled Turkey’s determination in its ambitions in Iraqi Kurdistan.The minister said during his visit intense talks were held among the three parties to identify a wording that would suit them all.“And that’s how that consensus text was established. It was not set up only by Turkey. We stand by that text,” he said

Source:- panarmenian.net

Petition on same ground by different shareholders rejected as CLB had rightly disposed off previous

CL: Where in a previous petition, earlier order of CLB had been decided and became final on same acts of oppression and mismanagement, same could not be reagitated by petitioners for reconsideration by CLB

Can an asset bought for one concern to be added in block of another concern Case remanded to apply A

IT: Where assessee owned three proprietary concerns and during year he sold factory building of a concern and out of sale consideration he purchased another office premises, which fell into same block of assets, in name of another proprietary concern and further he sought adjustment of said block of assets, Assessing Officer was directed to apply ratio of decision of Delhi High Court in case of CIT v. Ansal Properties & Infrastructure Ltd. [2012] 207 Taxman 61/20 taxmann.com 770 and compute WDV

Prior to 8-5-2010, sponsorship of Deccan Chargers tantamounted to sponsorship of sports event; not l

Service Tax : Sponsorship of IPL team deccan chargers amounts to sponsorship service in relation to sports event and is not liable to service tax prior to 8-5-2010

Gratuity and other terminal benefits paid to employees on their termination are allowable as revenue

IT: Entire expenses incurred on gratuity and other terminal benefits at time of retirement of employee are arevenue in nature allowable in year of retirement

HC rejects significant plea not raised earlier; allows sec. 80-IA relief before adjusting losses of

IT : Review cannot raise alltogether new plea, viz, eligible unit under section 80-IA and non-eligible unit are same, before High Court

Disallowance of expense rightly deleted as no discrepancy was pointed out by auditor in such exp.

IT: Where accounts of assessee were audited by department auditors as well as by Accountant General and Assessing Officer while disallowing expense, had not pointed out to which expenditure was of capital nature, if disallowance made by Assessing Officer was without any basis and was to be deleted

SC : J. Jayalalitha liable for prosecution for non-filing of I-T return

IT : J. Jayalalitha liable for prosecution for non-filing of return

SC relied on ratio of Mitsubishi that filing of return doesn’t attract bar on advance ruling; set as

IT/ILT : SC relied on ratio of Mitsubishi that ‘filing of return doesn’t attracts bar on advance ruling’; sets aside two orders. The assessee, Sin Ocean Shipping ASA Norway, filed the instant SLP seeking to set-aside the orders passed by AAR [GTB invest ASA, In re [2012] 18 taxmann.com 262 (AAR- New Delhi)] and High Court [NETAPP B.V. v. AAR [2012] 24 taxmann.com 174 (Delhi)

CESTAT sets aside penalty as uncertainty was prevailing over liability to pay service tax

Service Tax : Where there was confusion as to liability to pay service tax and assessee, located in remote area, could not have been advised by local authorities as well as could not have known by himself about liability, penalties were liable to be set aside under section 80

CII of year of acquisition by predecessor is relevant in case of sale of gifted asset; Manjula Shah’

IT: Where assessee inherited certain property which was originally acquired prior to 1-4-1981, while computing capital gain, cost of acquisition with reference to cost inflation index for year 1981 had to be taken into consideration

Legal notice not issued within 30 days from date of receipt of info of dishonour of cheque is time b

Negotiable Instrument Act: Legal Notice has to be issued within 30 days of receipt of information of dishonour of cheque

SC relied on ratio of Mitsubishi that ‘filing of return doesn’t attract bar on advance ruling’; set

IT/ILT : SC relied on ratio of Mitsubishi that ‘filing of return doesn’t attracts bar on advance ruling’; sets aside two orders. The assessee, Sin Ocean Shipping ASA Norway, filed the instant SLP seeking to set-aside the orders passed by AAR [GTB invest ASA, In re [2012] 18 taxmann.com 262 (AAR- New Delhi)] and High Court [NETAPP B.V. v. AAR [2012] 24 taxmann.com 174 (Delhi)

AO couldn’t seek proprietary assessment to disallow an exp. because it exceeded the sum incurred in

IT : Where assessee proved identity and creditworthiness of share applicants and genuineness of transaction by furnishing complete details, addition as explained share capital was unjustified

Refund of excise duty in pursuance of State policy is a capital receipt; not chargeable to tax

IT: Amount received by assessee under section 80-IB on account of excise duty refund in pursuance of policy of State would be treated as capital receipt and, thus, not chargeable to tax

Assessee can't seek penalty waiver on pretext of ignorance of law if it clearly provides for ST liab

Service Tax : Section 66A clearly provides for an obligation on recipient of service to remit service tax; hence, there cannot be a plea based on ignorance of a legislative provision and assessee is liable to pay service tax along with interest and penalties

Leather, Products Exports Up By 17.09 % From April-Nov

Export of leather and leather products for the first eight months of the current financial year i.e. April-November 2013 touched $3.78 billion against as compared to $3.23 billion, in the corresponding period of last year, registering a growth of 17.09%.

According to Council for Leather Exports, in Rupee terms, the export touched Rs 22,661 crore in April-November 2013 as against the last year’s performance of Rs 17,615.13 crore registering a positive growth of 28.64%.

The major markets for Indian Leather & Leather Products are Germany with a share of 12.60%, UK (11.96%), USA (10.51%), Hong Kong (8.82%), Italy (8.77%), France (6.39%), Spain (5.34%), Netherlands (3.79%), China (2.48%), Belgium (1.86%), UAE (2.53%), Australia (1.48%).

According to CLE, these 12 countries together accounts for nearly 76.53% of India’s total leather& leather products export. Most importantly, India’s Export of Leather & Leather Products to the European Union touched $2.9 billion in 2012-13, accounting for a share of close to 60% in India’s total leather export trade of $ 4.99 billion.

Meanwhile, the 29th Edition of the India International Leather Fair (IILF), Chennai will be held from January 31 to February 3, 2014.

The India International Leather Fair-Chennai is organised by the India Trade Promotion Organization (ITPO), along with the Council for Leather Exports (CLE). This year the fair will focus on green technology, machinery & equipment, chemicals, materials & components.

Source:- business-standard.com

Sum incurred on recovery of duty drawback is not business exp.; not excludible for computing sec. 80

IT: Duty drawback incentive would not form part of profits earned for purposes of section 80-IB

Nigerian Government To Leverage On Backward Integration Policy To Revive Iron, Steel Sector

The Federal Government said it would develop and implement a comprehensive backward integration policy, BIP, to revive and sustain the growth of the iron and steel sub-sectors of the Nigerian economy.

The Minister of Industry, Trade and Investment, Olusegun Aganga, said at the one-day stakeholders’ forum on Transformation of Minerals, Iron and Steel Sub-Sector for Industrial Revolution in Nigeria in Lagos, on Thursday that the initiative was in line with the Nigeria Industrial Revolution Plan, NIRP.

The stakeholders’ forum, which was organised by the ministries of Industry, Trade and Investment, and Mines and Steel Development provided the platform for all players in the iron and steel sub-sector to fashion out workable and sustainable plans of action to leverage the BIP to support the development of critical industries across the country.

What government did on Thursday, Mr. Aganga said, was to bring together all the stakeholders in the metal sector considered critical to industrialisation, to enable them look at how Nigeria could develop and attract more investors into the sector through the right policies and strategies.

“We cannot just sit down in Abuja and develop a policy for the sector without the full engagement, input and involvement of key players in the sector,” the minister said. “When you look at the current situation in the iron and steel sector, Nigeria spends about $3.3billion annually in the importation of steel, even the country has iron ore deposits.”

He said at the moment, Nigeria has some cold rolling mills in the country, saying government decided to implement the Backward Integration Programme in iron ore so that Nigeria can become a net exporter of iron ore just as it did with cement.

The success the country has achieved with the BIP in the cement industry, he pointed out, has proved that Nigeria can replicate that in at least 15 sectors of the economy.

He said that is what the country can do to be able to diversify Nigeria’s economy, create more jobs and then move from a poor to a rich economy.

He noted that just as the country has done in the cement, sugar and automotive sectors, government’s objective was to co-develop a holistic backward programme that would make Nigeria No. 1 in Africa and top 10 globally over time.

He said that the NIRP had been strategically developed and linked with sectors of the economy where the country currently had competitive and comparative advantage, such as mines and steel and agri-business, among others.

He said there was no doubt that industrialisation was central to national development, pointing out that as a country, Nigeria had undertaken several initiatives in the past to accelerate its industrial development.

However, the minister said what made NIRP different from previous initiatives was that it was the first industrialisation road map to be strategic, holistic and integrated.

In the past, he said, the country made the mistake of relying on exporting raw materials and in the process exported jobs, noting that this was what the industrial revolution plan was trying to change.

He promised to work together with all the stakeholders, including state governments, manufacturers and ministries, departments and agencies of the government to drive the implementation.

The Minister of Mines and Steel Development, Musa Sada, said there was the need for increased collaboration between the Ministry of Mines and Steel Development and that of Industry, Trade and Investment to utilise the nation’s abundant industrial minerals to boost industrialisation.

“Steel is expected to remain the world’s most engineering material for some time to come due to its versatility,” Mr. Sada said. “The annual steel production in Nigeria is estimated at about 3.5million tonnes, while about 17 million tonnes of steel and allied products are imported annually.

He said local steel production is only through 100 per cent melting of scrap steel, while the government wanted to see the iron and steel sector play a major role in the industrial development of our country.

In order to achieve this objective, he said government needed to partner the Ministry of Industry, Trade and Investment by keying into the NIRP to create the critical value chains that will drive sustainable industrial development.

Source:- premiumtimesng.com

Gold Price Falls From Two-Month High

Indian gold futures fell more than 0.5 percent on Thursday, retreating from two-month highs hit earlier in the week, weighed down by weak global markets, though a weaker rupee limited the downside.

At 1215 GMT, the most-active gold contract for February delivery on the Multi Commodity Exchange (MCX) was 0.75 percent lower at 28,838 rupees per 10 grams, falling from a high of 29,849 rupees hit earlier in the week, a level last seen on Nov. 20, 2013.

Silver contract for March delivery was 1.38 percent lower at 44,596 rupees per kg on the MCX.

The rupee, which traded weaker on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

However, premiums stayed steady at $80 an ounce on London prices, amid steady demand.

"There is not heavy demand as of now ... Gold is still available at a premium due to import restrictions," said Haresh Acharya, head of bullion desk, Parker Bullion.

Indian gold imports may have fallen 70 percent in the final quarter of 2013 from 255 tonnes in the year-ago period and are expected to be half the usual levels at 500-550 tonnes in 2014 if new import rules are maintained, a top trade body official said.

Source:- financialexpress.com

SAT directs public announcement as conversion of warrants increased voting rights of appellants by m

CL: Where on conversion of warrants, voting right of appellants in target-company increased from 50.23 per cent to 62.92 per cent, i.e., more than 5 per cent, in violation of Regulation 3(2) of Takeover Regulations, appellants were to be directed to make public announcement to acquire shares of target-company

No denial of excise registration to purchaser of premises due to pending excise dues of previous man

Central Excise : Recovery proceedings initiated against second subsequent purchaser of auctioned property, after 10 years from auction, in respect of pending excise dues of original owner of property, were barred, as they were initiated after unreasonable period

Matter remanded to decide reasonableness of AMP exp. incurred on brand promotion of AE as per ratio

IT/ILT: Where TPO made adjustment to assessee's ALP taking a view that AMP expenses incurred by assessee on brand promotion of its AE located abroad were excessive, matter was to be remanded back for quantification of AMP expenses in accordance with decision of Special Bench in case of LG Electronics India (P.) Ltd. v. Asstt. CIT [2013] 140 ITD 41/29 taxmann.com 300 (Delhi)

SC relied on ratio of Mitsubishi that ‘filing of return doesn’t attracts bar on advance ruling’; set

IT/ILT : SC relied on ratio of Mitsubishi that ‘filing of return doesn’t attracts bar on advance ruling’; sets aside two orders. The assessee, Sin Ocean Shipping ASA Norway, filed the instant SLP seeking to set-aside the orders passed by AAR [GTB invest ASA, In re [2012] 18 taxmann.com 262 (AAR- New Delhi)] and High Court [NETAPP B.V. v. AAR [2012] 24 taxmann.com 174 (Delhi)

India Considering 2% Cut In Gold Import Duty

India was considering pruning the gold import duty by 2% from the current rate of 10% in view of the demands from the jewellery industry and the increase in gold smuggling.

According to officials in the Finance Ministry, the case for a reduction of the import duty had been finalised, but a final decision would be taken closer to the end of current fiscal year on March 31, 2014, as stated by Finance Minister P Chidambaram.

However, the Ministry was yet to take a final view of the jewellery industry’s demand for quantitative easing of gold imports, the officials added.

The current quantitative restriction was 80:20 or merchant importers were mandatorily required to re-export 20% of each inward shipment of gold before being able to place an order for a fresh consignment.

In an interview with the local media, Chidambaram on Wednesday said that, while the higher import duty and quantitative restrictions were significant contributors in reining in the country's current account deficit (CAD), it had also triggered a spurt in gold smuggling, which he pegged at around 3 t per month.

The improvement in CAD was reflected in recent data released by the government which estimated the CAD during July to October 2013 at $5.2-billion, or 1.2% of the gross domestic product (GDP), compared to 6% of GDP during 2012.

However differences persisted between the government and the central bank, the Reserve Bank of India (RBI), on the prudency of easing gold import restrictions.

Commerce Minister Anand Sharma has made a strong plea for easing fiscal and quantitative restrictions in the interest of keeping the gems and jewellery industry competitive in the exports markets.

He said that while the government had by and large gone along with moves of the revenue department under the Finance Ministry and RBI on the issue, it was also the responsibility of the government to ensure the competitiveness of the labour-intensive and export-oriented gems and jewellery industry.

However, the deputy governor of the RBI, K C Chakrabarty, has cautioned that India could not afford to continue to pay foreign currency for importing gold, or to borrow money from banks to import gold, when the CAD continued to be negative.

Source:- miningweekly.com

SEZ unit can claim refund of ST paid on GTA services on production of GTA bills

Service Tax : Where SEZ unit availed goods transport agency's services for movement of goods within SEZ or from SEZ and bills showed that recipient of service was assessee located in SEZ, assessee could claim refund of service tax paid thereon

Mere sale of shares at low price won’t cast doubt on validity of such dealing, unless revenue proves

IT : Amount forfeited by assessee on cancellation of agreements of sale of its two manufacturing units in excess of that mentioned in agreements would be revenue receipt

India Tightens Restrictions On Raw Material Exports

The Indian government has imposed a 5 percent duty on exports of iron ore pellets in a move that will further clamp down on raw material exports and ensure iron availability for domestic steel producers.

Since December 2011, India has levied a 30 percent tax on exports of iron ore fines and lumps, and sought to curb mining exports from Karnataka and Goa states. These curbs are estimated to have cut India’s iron ore exports by around 85 percent (roughly 100 million tons) since their implementation.

Iron ore pellets, the subject of India’s new 5 percent duty, were previously exempt from these taxes due to negligible exports.

“However, in April-November 2013, exports of iron ore pellets have risen sharply, causing an apprehension about shortage of iron ore in the country,” India’s Ministry of Finance said in a statement on Monday. In recent months, the establishment of new processing units across India have driven this increase.

In past years, India exported between 2 and 3 million metric tons of iron ore pellets annually, which rose to between and 4 and 5 million metric tons in the current financial year.

In response to this surge, Indian steel producers lobbied last month for the government to implement a tariff on exports of iron ore pellets to safeguard domestic supply.

China, the largest importer of iron from India and the world, is likely to be most significantly impacted by the new tariff. Last year, Indian iron ore exports to China dropped 65 percent to 11.7 million tons last year according to Chinese customs data – primarily due to the new taxes introduced in 2011.

“This is a retrograde step, and one more blow to the industry,” Basant Poddar, Vice Chairman of the Federation of Indian Mineral Industries, said. “On one hand, they want us to go for more value addition, but on the other hand they are imposing more taxes.”

Until two years ago, India was the world’s third-largest iron-ore exporter. This year, however, India’s overall exports are estimated to be only 15 million tons combined with 67 million two years ago. Exports between 2009 and 2010 stood at 118 million tons. Revenue lost from this decrease is estimated to exceed US$17.5 billion in the past two years.

On Monday, the Chinese National Development and Reform Commission (NDRC) encouraged Chinese steelmakers to buy up stakes in global iron-ore assets, mines, mills, ports, railways and energy facilities in the interest of Chinese strategic security.

Currently, China imports roughly two-thirds of its iron ore, and some domestic projects have experienced delays due to a lack of supply in recent years.

“China’s iron-ore demand will still rise, its reliance on imports won’t change, and the degree of monopoly in global iron-ore resources will still keep increasing,” the NDRC said.

Despite India’s new duty on iron ore pellets, sagging Chinese iron ore demand around the Lunar New Year is expected to counterbalance the tax. Many economists additionally point to increasing stockpiles of iron ore domestically as steel demand grows more slowly along with China’s economy.

Source:- india-briefing.com

Microsoft-Nokia deal won't have adverse effect on competitions in India; CCI nods to proposed combin

Competition Act : Proposed combination relating to acquisition by Microsoft entire Device & Service (D&S) business of Nokia did not have appreciable adverse effect on competition in India and, therefore, same was to be approved

Sum incurred to advertise product of foreign holding co. in Indian sub-continent held as an allowabl

IT : Where assessee engaged in rendering software implementation support services to its customers located abroad, claimed exemption under section 10A, in view of fact that assessee could not prove nature of services rendered for which it received foreign exchange, matter was to be remanded back to Assessing Officer for disposal afresh

IRDA issues guidelines for filing of products under CSC distribution model

INSURANCE : Guidelines - Process to be Followed for Filing of Life Products Under CSC Distribution Model

HC treats revised return of income as application for condonation of delay; allows legitimate tax re

IT : Revised return of income to be considered as application for condonation which consequently results in refund of legitimate taxes

RBI hikes investment cap for Govt. debt securities to USD 10 billion for long-term NR investors

FEMA/ILT : Foreign Investment in India by Sebi Registered Long Term Investors in Government Dated Securities

Mere allegation of fraud on assessee to invoke extended period was not sufficient cause to levy pena

Cenvat Credit : Allegation in show-cause notice as to contravention of certain rules with intention to evade payment of tax made for specific purpose of invoking extended period cannot suffice for levy of penalty where no allegation of that kind is raised in para relating to levy of penalty

Brought forward losses pertaining to block period to be set off from undisclosed income assessed und

IT : In computation of undisclosed income of block assessment, benefit for brought forward losses pertaining to house property cannot be disallowed if same is related to block period

Attachment order barring sale of asset is assessee-specific; can’t cover assets owned by others in s

IT : Attachment order was to be limited to plot owner by person against whom order was passed and not extended to plots owned by others in residential area

Peak credit method to compute undisclosed income not contrary to IT Act; coded entries don’t mean un

IT : Application of peak credit concept for quantifying undisclosed income, is not contrary to provision of Act

Ignorance of amended law can be an excuse; concealment penalty unjustified if relief claimed wrongly

IT : Where assessee, a co-operative society engaged in business of banking, claimed deduction under section 80P(2) and Assessing Officer disallowed claim of deduction and also levied penalty under section 271(1)(c) upon assessee on plea that it had intentionally claimed inadmissible deduction to reduce taxable income, since claim for deduction had been a matter of bona fide mistake, levy of penalty was not justified

Gujarat HC orders winding up as company lost its financial substratum and became commercially insolv

CL: Where company had become commercially insolvent and had failed to pay loan advanced to it by petitioner, company was to be wound up

Department can't fix redemption fine without first determining quantum of unaccounted stock, rules D

Excise & Customs : While determining redemption fine, only unaccounted stock can be taken into consideration and, therefore, redemption fine cannot be imposed without considering books of account produced and without determining quantum of production pertaining to duly accounted purchases

Reassessment held valid as assessee didn’t bother to clarify why rental income was shown as business

IT : Where in spite of many opportunities assessee failed to clarify as to why rental income had been shown as business income till 2007-08 and as income from house property thereafter, reopening of assessment could not be held to be contrary to law

Addition on the basis of panchanama was to be deleted if assessee subsequently brought sufficient ev

IT: Where in block assessment proceedings Tribunal confirmed an addition only on account of difference between numbers in fixed deposits receipt as inventorised in panchanama and numbers appearing in supporting documents, in view of fact that assessee subsequently obtained a certificate from concerned bank against said addition, impugned order passed by Tribunal was to be set aside and matter was to be remanded back for disposal afresh

Self-Service Tax Center Now Open For Business

The self-service tax center at Naval Base Ventura County (NBVC) Port Hueneme is now open in Building 103, the headquarters for Naval Mobile Construction Battalion 3 at Harris Street and 23rd Avenue.

Volunteers will be available to help with any tax questions while taxpayers complete their own federal and state returns.The self-service program is available to active-duty service members from all branches, their dependents and retirees. The program is free to all service members and their dependents; there is a minimal charge for retirees whose adjusted gross income is more than $58,000.

“You will get your refund through this program just as fast as you would through any commercial tax preparers — if not faster — and we will usually save you more than $100 in preparation fees,” explained Sal Gonzales, the legal assistance clerk at the Region Legal Service Office, Detachment Ventura, who has coordinated the tax center on base since 2002. “Why pay for a service that is offered to you here at no charge or a minimal charge?”

Taxpayers can prepare their returns on a first-come, first-serve basis. Last year, 1,100 federal and state tax returns were prepared at the center, yielding more than $1.2 million in refunds.

To use the center, taxpayers will be required to have an email address.

“For those taxpayers who do not have an email address, I would suggest you ask a family member or a friend if you could use their email address,” Gonzales said.

The tax center is open from 11 a.m. to 4 p.m. Monday through Friday in classroom 102 of Building 103. The center will be closed Friday, Feb. 14, and Monday, Feb. 17.

If the return is complex — including returns involving homeowners, rentals, day trading, capital gains and other issues — there will be a limited number of appointments available on a case-by-case basis with an experienced volunteer. This service is not guaranteed, however, since this program is designed to assist people with fairly simple returns.

Gonzales said the self-service program does not require both husband and wife to be present since there is no signing of documents.

In addition, he said, if the return comes back rejected after it was prepared at the center, “we can assist you in correcting the issue.

“Unfortunately, if you complete your return with any other program. we cannot assist you in fixing your return because we were not properly training with the program you used.”

Anyone with questions can stop by the tax center during open hours or call the Region Legal Service Office at (805) 982-4548. This also is the number to call to make a tax appointment

Source:- vcstar.com

Wheat Recovers From 42-Month Low On Cold Weather, Export Demand

Wheat rallied from the lowest level since 2010 amid concern cold weather in the U.S. may damage crops and speculation demand for supplies from the biggest exporter rose. Corn headed for the first monthly gain in five.

Wheat for March delivery gained as much as 0.5 percent to $5.5425 a bushel on the Chicago Board of Trade and was at $5.53 by 11:08 a.m. in Singapore. Futures touched $5.50 yesterday, the lowest price since July 14, 2010, and are set for an 8.6 percent loss this month after a 9.5 percent slump in December.

As much as 10 percent of wheat in the Great Plains and 2 percent in the southern Midwest may be hurt after some protective snow cover melted last week, according to Commodity Weather Group LLC. U.S. export sales of corn and wheat probably increased in the week ended Jan. 23 from a year earlier, based on a survey of four analysts by Bloomberg News.

Story: India's Farmers Benefit From Better Roads, Which May Help Singh

“We note some support to wheat prices stemming from concerns that cold temperatures in the U.S. could result in winterkill,” Vanessa Tan, an analyst at Phillip Futures Pte in Singapore, wrote in an e-mail today. The decline in prices to a 3-1/2 year low may also help spur some demand, she said.

Wheat shipments are expected to be in a range of 300,000 metric tons to 625,000 tons from 293,627 tons a year earlier, the survey showed. The U.S. Department of Agriculture is set to release its sales report at 8:30 a.m. in Washington today.

Corn for delivery in March gained 0.1 percent to $4.2775 a bushel, heading for a 1.4 percent advance this month, the first such increase since August. Soybeans fell 0.2 percent to $12.6725 a bushel, poised for a second monthly decline.

Source:- businessweek.com

Textile: Take Eu Conventions Seriously, Advise Experts

Experts have warned the government against taking the European Union (EU) conventions non-seriously if it wants to avail the benefits of the Generalised System of Preferences (GSP) Plus beyond 2017.

“I am sure that even our most important ministries have not gone through the requirements of GSP Plus scheme that the country has to comply with,” Habib Metropolitan Bank President and Chief Executive Officer (CEO) Sirajuddin Aziz commented during a panel discussion of a conference on ‘GSP Plus: Opportunities Through Good Governance’.The conference was organised by the Pakistan Institute of Corporate Governance (PICG) on Wednesday.

After commenting on the government’s responsibility, Aziz said that the country would see improvement in governance when individuals also feel their responsibilities.

“Pakistan is a nation of 180 million leaders, that is why we have so many leaders and no followers,” said Aziz as he concluded his speech on corporate governance.

Pakistan’s top experts who gathered from different sectors also urged the private sector to do what it can for the GSP Plus scheme instead of only relying on the government.

“It’s a collective process in which both the private and public sector need to take steps,” Orient Textile Mills CEO Iqbal Ebrahim said.

“But I must tell you, we have to take care of the 27 international conventions to succeed in the reassessment that the EU would do after three years in 2017, or we will lose these important duty concessions,” warned Ebrahim.

However, former chairman Federal Board of Revenue (FBR) Abdullah Yusuf allayed fears. “The government can improve things and there is no need to be pessimistic,” said Yusuf.

Most of the speakers seemed confident with PML-N’s commitment on the issue and said that they believe the government is serious about benefitting from trade concessions.

“Pakistani leather companies are getting orders from Europe for new products and industrialists are confident that this will continue,” Firoz International CEO Gulzar Firoz said.

Speaking on diversification, Firoz citied various examples of new leather products that have been developed by local industries, and are now being exported to Europe.

However, Firoz urged government to start focusing on environment-related EU conventions.

The experts were unanimous that with the GSP Plus scheme, Pakistan has a strong edge over its competing countries. They quoted the examples of incoming Chinese investments in the country’s textile sector and the decline of China’s share in world textile market.

China’s share in world textile market has declined to $270 billion from $300 billion. This is happening at a time when Pakistan is going to improve its position in world textile market. Besides, China’s textile imports from Pakistan have also jumped to $1.7 billion which is another opportunity for Pakistan to increase its exports.

In last six months, textile sector has outperformed KSE-100 Index by a big margin. Textile sector posted a return of 37% in last six months against the overall KSE-100 return of 15%.

One of the biggest beneficiaries of new duty concessions in EU market would be the textile industry of Pakistan that exported products worth $13.1 billion in last fiscal year – almost half of Pakistan’s total exports of $24.6 billion.

Source:- tribune.com.pk

Mere polishing, packing or fixing threads on jewellery doesn't amount to manufacture

CST & VAT : Activity of skillfully fabricating of gold by goldsmiths to make ornaments as per designs given by supplier of gold amounts to 'manufacture' but mere hand polishing, packing or fixing threads to made-up ornaments would not amount to manufacture

Taxability on presumptive basis won't stop AO from making addition for unexplained cash credits

IT: In an appropriate case, Assessing Officer can make addition in respect of both cash credits under section 68 as well as business income estimated by him under section 44AD after rejecting books of account maintained by assessee finding those books as unreliable

Underweight Rating On Jsw Steel Hsbc

Stood at Rs 24 a share, in line with our and Street estimates. Crude steel production, at 3.2mt, was up c16% y-o-y on pro-forma basis (adjusted for a scheme of amalgamation) amid tepid consumption growth in India as a third of production was channelled into export markets.

In our 17 January report, we had highlighted that exports from India have grown c15% y-o-y between Apr-November 13 largely following rupee depreciation. The quantum of JSTL’s exports accounted for almost 60% of exports out of India during the last quarter.

Net income, at Rs 460 crore came marginally below estimates as effective tax rate stood at c45%. Subsidiaries’ operating performance was broadly in line with expectations.On the conference call, JSTL mentioned that it has accelerated capital spending in FY14e although the quantum of capex over the next three years remains constant. JSTL also mentioned that cost of iron ore in Karnataka auction market has risen in Q3FY14, and has been increasing post December 13 as well.

We stay ‘underweight’ on JSTL with an unchanged target price of Rs 950 per share. Our target implies a potential return of 5% (including forecast dividend yield of c1%).

Source:- financialexpress.com

China’S Slowdown Fears Hit Metal Stocks

Though China’s manufacturing slowdown will help steel companies tap export markets more vigorously, demand for other industrial metals, such as copper, nickel, zinc and aluminium, depends on China’s demand.

Most metal and mining company stocks tumbled on Wednesday after the HSBC PMI (Purchasing Managers’ Index) for China released on Wednesday indicated a sharp slowdown in their economy.

The index fell to its lowest level in six month to 49.6 in January against 50.5 in December. Though China’s manufacturing slowdown will help steel companies tap export markets more vigorously, demand for other industrial metals, such as copper, nickel, zinc and aluminium, depends on China’s demand. Prices of these industrial metals may crash as the demand in China determines the pricing trend.

Besides, export of iron ore from India to China will come under pressure. Earlier this week, the Government imposed a 5 per cent export duty on pellets. Export of raw iron ore or fines and lumps already attract an export duty of 30 per cent.

Pellets are value-added products derived from the leftover material or low-grade iron ore and are used in steel making. In recent times, they have emerged as a major product for the iron and steel industry in the country due to scarcity of ore in some regions following mining bans in Karnataka and Goa.

Most metal and mining stocks, including Jindal Saw(-1 per cent), Tata Steel (-2 per cent), Hindalco (-2 per cent), SAIL (-3 per cent), Jindal Steel and Power (-2 per cent) and Sesa Sterlite (-3 per cent), fell on Wednesday.

Terming the levy of export duty on pellets as a retrograde step, S.K. Chatterjee, Secretary, Pellet Manufacturers Association, said: “We strongly feel that the Government is playing into the hands of a handful of steel makers. We urge the Government to reconsider their decision and exempt pellets from export duty.”

Goutam Chakraborty, Research Analyst, Emkay Global Financial Services, said China faced a similar situation of a slowing economy about four to five months back, but investors felt a resurgent US economy would bail out China from the slowdown. Wednesday’s PMI’s data however, reveals that the Chinese economy is struggling.

“Besides the China factor, the recent hike in key banking rates by the RBI may push up lending rates and further cripple investment in the infrastructure sector,” he said.

Source:- thehindubusinessline.com

P Chidambaram Says Restriction On Gold Imports Helped Control Current Account Deficit

Finance minister P Chidambaram has identified quantitative curbs and enhanced tariffs on gold imports as an important factor in bringing India's current account deficit (CAD) under control this year. At the same time, he has said up to three tonnes of gold are probably smuggled in every month. Gold smuggled in has to be paid for in foreign currency, which means that it is flowing out of India through fictitious accounts. This inconsistency is a reason why import restrictions on a scale that encourage smuggling are counterproductive. Moreover, the unintended consequence of a well-oiled smuggling network has adverse security implications.

The data shows a sharp turnaround in India's CAD over the last six months. CAD between July and October was $5.2 billion, or 1.2% of gross domestic product. To put the improvement in perspective, CAD had exceeded 6% of GDP for a while in 2012. A fall in stated gold imports contributed to the improvement as did a dip in machinery and coal imports and a pick-up in exports. The improvement in CAD appears to be a combination of exports responding positively to a fall in the value of the rupee and an improvement in US economy, as well as to a domestic slowdown curtailing imports.

Gold serves as an important financial asset for a typical Indian household. Our underdeveloped financial system inevitably leads to its demand, which cannot be checked for long through import restrictions. Also, a network established for smuggling gold is available for use by terror networks. The answer to a widening CAD is more economic reforms, not policies that simply push the problem out of sight. The more India is integrated with the global economy, the less effective are controls such as import restrictions.

Demands for rolling back restrictions on gold imports, in order to curtail gold smuggling, are inopportune. Import restrictions have reduced gold inflows. A rollback can reverse these gains and cause another import surge. This will once again worsen external sector imbalances and cause another run on the rupee. With emerging market currencies facing greater volatility following fears of a faster tapering of quantitative easing by the Federal Reserve, this is certainly not the right time to free gold imports and trigger another free fall of the rupee.

Freeing up regulatory restrictions on gold imports will have to await a sharp correction in macroeconomic imbalances, caused by government's inability to curb oil import bills because of subsidised consumption of oil products and the erosion of real return on assets due to rising prices. While availability of subsidised oil products bloated imports, rising prices forced people to shift savings from bank deposits and other assets to more attractive avenues like gold. The resultant surge in imports and current account deficit could only be halted by a sudden clampdown on gold inflows as curbs on oil imports would bring the Indian economy to a grinding halt.

Even if curbing gold imports leads to smuggling, the overall quantum of gold imports will still be reduced because of the difficulties of smuggling gold as opposed to buying freely available gold in the open market. Restrictions should be coupled with better monitoring and a tough crackdown on gold smuggling, so that smuggling rings do not take root. Along with this one can have financial products pegged to the price of gold, so that those who crave the security of gold can purchase these products instead. Today's dire macroeconomic situation admits of no other solution.

Source:- timesofindia.indiatimes.com

Indian Rupee Ends 10 Paise Higher At 62.41 Against Us Dollar Ahead Of Fed Decision

Rising for the second day, the rupee appreciated by 10 paise to end at 62.41 against the dollar today on sustained selling of the American currency by exporters ahead of a decision of US Federal Reserve on tapering its monetary stimulus.

Weakness in the dollar index, which was down by 0.10 per cent against a basket of major global rivals, also helped the rupee gain after a 59 paise rise yesterday when the RBI unexpectedly increased the repo rate.

At the Interbank Foreign Exchange (Forex) market, the local unit resumed strong at 62.28 a dollar from last close of 62.51. It rose further to a high of 62.1050 on initial rise in domestic stocks.

However, tracking volatility in stocks, the rupee later fell back on dollar demand from importers, mainly oil refiners, to meet their month-end requirements.It touched the day's low low of 62.52 before settling at 62.41, a rise of 10 paise or 0.16 per cent over Tuesday.

Pramit Brahmbhatt, CEO, Alpari Financial Services, India said: "Rupee extended its gain today and traded near 62-levels...overall signs of improvement in the US economy suggest Fed officials will stay on track to cut monthly buys."

Fears of a fresh cut in the US central bank's monthly bond buying programme are among the reasons that have dragged down emerging market assets recently. The Fed has already cut its purchases by USD 10 billion to USD 75 billion.

"Some portion of the weakness can also be attributed to the rising talks about (another) USD 10 billion reduction in the asset purchase program at the FOMC meet which will end today. After the RBI policy, the FOMC meeting will be the most significant event which will be giving a direction to the USD-INR pair," said Abhishek Goenka, Founder and CEO, India Forex Advisors.The Indian benchmark S&P BSE Sensex today washed out initial gains on late profit-booking and closed down by 36.21 points.FIIs pumped in Rs 250 crore in equity markets today after pulling out over Rs 1,250 crore yesterday.

Source:- financialexpress.com

TPO can use comparable data which weren't available in public domain while preparing TP documents by

IT/ILT: Comparable data which was not available to assessee at time of preparing TP documentation can be used by TPO at time of TP analysis, provided such information is made available to assessee for its objections

Services provided to identify prospective Indian clients for foreign co. tantamounted to export of s

Service Tax : Support services provided to a foreign company by way of identification of prospective customers in India amounts to 'export of service' and is not liable to service tax

Delhi HC rejects writ filed beyond jurisdictional limits, directs petitioner to file writ with right

CL: Where petitioner filed writ petition and sought quashing of trial proceeding initiated against him, it would be appropriate that only such High Court, within whose jurisdiction sub-ordinate Court was located before whom such trial proceedings were pending should entertain writ petitions under article 226

Free supply of diesel by service recipient isn't includible in value of mining services

Service Tax : Diesel received free of cost from service recipient and used for running of machinery used in mining activity is not includible in value of minding services

When SC confirmed that shares issued under ESOP wasn't perquisite, any tax deducted from salary was

IT : In pursuance of order passed by Supreme Court that shares allotted to employees under Employees Stock Option Scheme did not amount to perquisite and, thus, there was no liability to deduct tax at source in respect of same, amount so deducted in case of assessee-employee on aforesaid ground was to be refunded alongwith interest

Mere possibility of an event which has actually not happened can't said to be a violation of regulat

CL : Mere possibility of an event which has actually not happened can't said to be a violation of regulation

Sec. 54F relief isn’t allowable if assessee owns more than one residential house even on joint-owner

IT : Where an assessee on date of transfer of original asset, owns more than one residential house, he is not eligible for deduction under section 54F, even if other residential house is owned by assessee wholly or partially

De-facto ownership of asset to be considered for computing holding period of capital assets, rules H

IT : Period of holding as de facto owner should be considered for computing holding period of capital asset u/s 2(42A)

Period of delay doesn't matter if cause of delay is genuine; HC condones delay of 10 years in filing

CST & VAT : If, due to taking over of assessee's factory by State Corporation and assessee leaving India, assessee became aware of assessment proceedings after delay of 10 years, then, even such delay could be condoned

HC directs CIT(A) to swiftly dispose of pending appeal as it would decide fate of recovery proceedin

IT : Where application for stay of recovery proceeding was filed before Recovery Officer contending that application for stay of demand was pending in appeal, Commissioner (Appeals) was to be directed to dispose of pending appeal

Investment advisors certified by Financial Planning Standard Board need not to obtain certification

SEBI : SEBI (Certification of Associated Persons in The Securities Markets) Regulations, 2007 - Obtainment of Specified Certification by Investment Advisers and Their Associated Persons, Including Their Partners and Representatives, Offering Investment Advice

RBI hikes penal interest rates on shortfall in reserve requirements consequent to increase in bank r

BANKING : Revision of Bank Rate

Assessee's case transferred from Mumbai to Delhi as it had transactions with entity being assessed b

IT: Where Commissioner, Mumbai, in exercise of power under section 127(2), transferred assessee's case from jurisdiction of Deputy Commissioner, Mumbai to Deputy Commissioner, New Delhi, on ground that cases of one 'S' Group were centralised with Deputy Commissioner, New Delhi, with whom assessee had large scale financial transactions, there being a valid reason to transfer assessee's case, impugned order passed by Commissioner did not require any interference

Bogus purchases and profit earned therefrom surrendered by assessee had to be added to his income

IT : Declared income on account of surrender made by assessee during course of assessment proceedings should be added to income of assessee

AO's satisfaction isn't enough to levy penalty, he should state reasons for his being satisfied in h

IT : In his order imposing penalty, AO must also state the "reasons" for his 'satisfaction' that penalty is attracted

Hiring out broadband network won't be deemed as 'on-line information and database access or retrieva

Service Tax : Where assessee had only hired out infrastructure of broadband for use of customer and had not provided any data or information to customer, said activity did not amount to 'online information and data base access and/or retrievable services'

Matter couldn't be referred to VO without rejection of books or if AO couldn't prove suppression in

IT : Matter cannot be referred to Valuation Officer under section 142A by Assessing Officer without rejecting books of account

Petitioner couldn't file oppression plea if he had divested himself of his entire shares in responde

CL : Where petitioner had divested himself of his entire shares in respondent-company, he had no locus to file a petition under section 397

Non-compete fee received under negative covenant is taxable w.e.f. 1-4-2003 only and not retrospecti

IT : Since amendment in Finance Act, 2002 was not clarificatory but amendatory in nature, non-competition fee received under a negative covenant is taxable only with effect from 1-4-2003, and not retrospectively

Institution teaching Arabic language was educational in nature even if it mandated reading of Quran

IT : Where assessee, running a college for Arabic language affiliated to Madras University, claimed exemption under section 10(23C)(iiiad), said claim could not be rejected merely on ground that its students had to pray daily along with religious leader and they had specific dress code accordingly to Islamic specifications

No reversal of Cenvat credit if no credit was taken on moulds cleared as waste or scrap

Cenvat Credit : Rule 3(5A) of CENVAT Credit Rules applies only if cenvated capital goods are cleared as waste/scrap; if no credit was taken on capital goods and credit was taken only in respect of inputs/input services used for making capital goods, no reversal is warranted on waste/scrap clearance of such capital goods

Korea Wants Duty Cuts For Auto, Machinery Exports To India

South Korea has demanded a deep cut in tariffs on its goods entering India, under the Comprehensive Economic Partnership Agreement, signed by the two countries in 2009 and taking effect from 2010.

The two governments had decided to revise the pace, during the recent visit here of South Korea’s President Park Geun-hye.

“We have been urging India to liberalise tariff duties, especially in automobiles, auto parts and Korean machinery. We want drastic reduction in this,” Dong Seok Choi, director-general, Korea Trade-Investment Promotion Agency, told Business Standard.

Talks for revising the pact are expected to begin by the middle of this year. The first round will be in Seoul, said Dong.

The Indian government has asked South Korea for greater market access for its information technology export, generic medicine and textiles. Dong said Korea was aware of these wishes.

India’s trade deficit with Korea rose from $5.1 billion in 2009-10 to $8.9 bn in 2012-13. The matter was raised by commerce and industry minister Anand Sharma with South Korean counterpart Yoon Sang-jick during a meeting here early this month.

On the pending approval for the $12-bn project in Odisha of Posco, the Korean steel giant, Dong said this would induce more Korean companies to invest. “Korean SMEs (small and medium enterprises) are very keen to do business here and Posco will give them a boost. Korea is also keen to invest in India, mainly in aerospace, ship building, construction and urban development,” he added.

He also said some Korean companies, such as Hyundai, Samsung and LG, had planned to expand in the country in the next couple of years. “Many Korean companies want to make India their research and development hub,” he said.

Source:- business-standard.com

India Adds 5% Duty On Iron Ore Exports Lme Steel Billet Improves

Looks as though India has “imposed a 5 percent duty on exports of iron ore pellets, taking yet another step in conserving the raw material for domestic steelmakers that has slashed its shipments to top market China,” reports Reuters.

“India already levies a 30 percent tax on exports of iron ore fines and lumps since December 2011. Along with mining and export curbs in key producing states Karnataka and Goa aimed at addressing illegal mining, the tariffs have helped cut India’s iron ore exports by around 85 percent, or 100 million tonnes, over the past two years.”

“Iron ore pellets had been exempted from any duty previously given negligible exports out of India.”

Strengthening prices ended a two-day flat streak as the steel billet cash price moved up by 4.3 percent on Monday, January 27 on the LME to $365.00 per metric ton. The 3-month price of steel billet rose by 1.4 percent on the LME to $360.00 per metric ton.

* Get the complete prices every day on the MetalMiner IndX

Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India were range bound. The price of Chinese HRC showed little movement yesterday. Chinese coking coal held its value yesterday.

The US HRC futures contract 3-month price continues hovering around $629.00 per short ton for the fifth day in a row. The US HRC futures contract spot price remained essentially flat at $672.00 per short ton.

Source:- agmetalminer.com

Issues well-settled in favour of assessee can't be reopened subsequently on same grounds

IT : Where question as to deduction under section 80-IB(10) was squarely covered in favour of assessee for preceding assessment years, Assessing Officer could not reopen assessment on merit on same ground in succeeding assessment year

India Export Incentives Restored For Cotton Yarn

The temporary restoration of the Incremental Exports Incentivisation Scheme (IEIS) for Indian cotton yarn exporters will make local spinning more viable in 2014, an industry spokesman has said.

Under the IEIS, exporters earn credit amounting to 2% of the duty on annualised increases in exports over qualifying periods and for particular markets, and may either use this to import industry-related goods for themselves or sell the credit to another yarn manufacturer.

The industry believes central government's decision to withdraw the incentive in September last year was intended to discourage cotton yarn exports in favour of higher value-added finished textiles.Cotton yarn prices in the local market have been affected by the earlier decision.

"The prices of cotton yarn are not increasing in tandem with the rise in cotton prices in India," DK Nair, secretary-general of the Confederation of Indian Textile Industry, told just-style.

India's Directorate General of Foreign Trade has now restored the benefit from for the period from September 2013 to 31 March 2014.

"Since this year's exports of cotton yarn are going to be higher than the previous year, this will be beneficial to the exporters," Nair said.

With so little time remaining, the move may have only limited impact on Indian cotton yarn prices - but will help exporters "to cut their losses or improve profits," Nair added.

Source:- just-style.com

India Miscellaneous Chemical Products Exports Rise To Us$ 265.21 M In December- 2013 - Infodriveindia.Com

This finding is based on India Miscellaneous Chemical products export data of InfodriveIndia.com and is based on export shipping bills filed at Indian customs by exporters from India through December- 2013 at more than 170+ 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 Miscellaneous Chemical products Export database is considered to be the most comprehensive, up-to-date and authentic information on India's foreign trade of Miscellaneous Chemical products.

According to Pradeep, Chief Research Associate of InfodriveIndia.com, compared to November 2013, a increase of USD 265.21 M in December- 2013 has been noticed. He further gives a analysis and break up of major product categories , major countries and major Indian ports under Miscellaneous Chemical products as follows :

A. Exports of Insecticides, Rodenticides, Fungicides, Herbicides, Anti-Sprouting products and Plant-Growth Regulators, Disinfectants and similar products has grew month on month basis by 28.3%.

Total value of exports in December- 2013 was 173.71 M, compared to November 2013 , there is a increase of 38.32 M in December- 2013, growth rate in percentage terms is 28.3%, the major destination countries were United States, Brazil, Germany, Belgium and France and major Indian ports were JNPT, Goa Sea, Vizag Sea, Madras Sea and Delhi TKD ICD.

B. Exports of Industrial Monocarboxylic Fatty Acids and Acid Oils from Refining has grew month on month basis by 47.55%.

Total value of exports in December- 2013 was 24.21 M, compared to November 2013 , there is a increase of 7.8 M in December- 2013, growth rate in percentage terms is 47.55%, the major destination countries were United States, Germany, Saudi arabia, China and Iran and major Indian ports were JNPT, Bombay Sea, Mundra, Thar Dry Port ICD/Ahmedabad Gujarat ICD and Ankleshwar.

C. Exports of Prepared Binders for Foundry Moulds or Cores Chemical products and Preparations of the Chemical has grew month on month basis by 29.02%.

Total value of exports in December- 2013 was 16.31 M, compared to November 2013 , there is a increase of 3.67 M in December- 2013, growth rate in percentage terms is 29.02%, the major destination countries were United States, United arab Emirates, Turkey, Germany and Indonesia and major Indian ports were JNPT, Mundra, Madras Sea, Calcutta Sea and Bombay Air.D. Exports of Reaction Initiators, Reaction Accelerators and Catalytic Preparations has grew month on month basis by 12.62%.

Total value of exports in December- 2013 was 11.56 M, compared to November 2013 , there is a increase of 1.3 M in December- 2013, growth rate in percentage terms is 12.62%, the major destination countries were United Kingdom, United States, Malaysia, Saudi arabia and Indonesia and major Indian ports were JNPT, Kanpur ICD, Cochin Sea, Madras Sea and Bombay Air.

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 16,000 corporates from more than 65 countries rely on InfodriveIndia.com for meaningful export import trade intelligence to guide their International business strategies.

Source:-indiaprwire.com

Must Review Norms On Gold Import

Union commerce minister Anand Sharma said he was in favour of a review of the country's gold import regulations, and added that he would discuss the matter with finance minister P Chidambaram shortly.

While the finance minister has said that a review of the subject wouldn't be possible before the budget, Sharma said, "We will revisit this matter and see how to have a balance."

The All India Gems and Jewellery Trade Federation had earlier written to UPA chairperson Sonia Gandhi demanding a reduction in import duty on gold to 2% from 10%. The industry body had also demanded relaxation of RBI's 80:20 rule on gold imports, wherein merchants have to re-export 20% of each gold consignment before placing orders for a fresh shipment.

This 80:20 rule resulted in lower bullion imports, which subsequently helped in lowering the country's ballooning current account deficit. Last week, Sonia Gandhi had requested the commerce ministry to look into the request of the gems and jewellery industry stakeholders.

"We have by and large gone with the revenue department and the RBI on the matter. We are equally keen to ensure that we remain strong and competitive in the gems and jewellery sector," Sharma said on the sidelines of the CII Partnership Summit 2014 in Bangalore.

Sharma also said the government was thinking of opening up the construction sector to FDI to re-energize economic activity in this sector, which is a large employer. "We are also looking at FDI in the railway sector," said Sharma. He said that in the last four years India had received FDI worth $176 billion.

Over 1,000 delegates from 45 countries are participating in the Confederation of Indian Industry's Partnership Summit 2014, being held in Bangalore from January 27 to 29. The summit will highlight investment opportunities in India and offer ideas for how a new class of consumers can become a new engine for growth. The theme of the event is 'Emerging global value chains: building partnerships'.

Source;- timesofindia.indiatimes.com

Pharmexcil To Hold Meeting With Gs1 India To Discuss Bar-Code Implementation For Mono Cartons

Aimed at dispelling the doubts and apprehensions of the industry over the bar-code implementation for mono cartons, the Pharmexcil is organising an interactive meeting with GS1 India to discuss the issue in detail. The meeting is scheduled to be held on February 6, 2014 at Orchid Hotel, in Mumbai.

Earlier the Director General of Foreign Trade (DFGT) under government of India had notified the mono cartons containing strips, vials, bottles as primary level packaging vide through a public Notice no 31 (RE-2013)/2009-2014, dated October 17, 2013. With regard to this, many companies have raised doubts and apprehensions over the issue and are seeking clarifications on the container to be considered as mono carton.

In view of this, the central government has directed GS1 India to review the status of mono carton for implementation of bar code system and asked it to discuss the issue with the industry stake holders and submit a report on the same.

“This meeting is mainly aimed at dispelling the doubts and apprehensions of the industry over the bar-coding implementation for mono cartons. Many of them wants to have clear view as to what kind of containers constitute mono cartons to be considered under primary packaging,” informed Raghuveer Kini, executive director, Pharmexcil.

Earlier last year in January, the DGFT had made it mandatory to have 2D bar coding for the secondary level of packaging. This is part of the DGFT's plan to have track and trace mechanisms at the primary, secondary and tertiary levels of packaging for all export products. The new regulations are aimed at safeguarding India's pharma exports from drug counterfeiters.

The major reason for implementing bar-coding is because India's pharma supply chain has been breached by the drug counterfeiter in the past. For example, in November 2011, counterfeit anti-malarial drugs with a 'Made in India' labels but actually originating from China, were seized by Nigerian port authorities. The loss of reputation resulting from this incident and other similar incidents resulted in the DGFT opting for track and traceability systems like bar-codes in the hope that counterfeiters would find it more difficult to infiltrate the pharma supply chain.

Even though the industry appreciates the rationale behind the DGFT's stance, over the past year, they have asked for and got extensions of the deadlines as smaller players were finding it difficult to arrange finances to put in place the 2D technology required for the secondary level of packaging.

In view of recent doubts among the industry players over the mono cartons for implementation of bar-coding, Pharmexcil is seeking industry members to participate in the meeting and get the necessary clarifications on implementation of trace and track system and also present their opinion on the status of mono carton.

Source:- pharmabiz.com

Rupee Closes At 62.52 Against Dollar

The rupee rose sharply against the dollar on Tuesday after foreign banks started selling the US currency following the Reserve Bank of India’s (RBI’s) third quarter monetary policy announcement.

The RBI on Tuesday hiked its key lending rate by a quarter of a percentage point, continuing its fight against inflation in Asia’s third-largest economy. RBI hiked the repo rate, at which it lends short-term funds to banks, to 8%. The apex bank retained the cash reserve ratio (CRR), or the amount of deposits banks needs to park with the central bank and on which they earn no interest, at 4%.

RBI governor Raghuram Rajan’s statement that the central bank is far from accepting Urjit Patel committee but is only looking at the suggestions, indicated that the central bank has not yet embraced an inflation targeting mandate, foreign exchange dealers said. Rajan also said the monetary policy could be more “accommodative” if inflation eases in the coming months.

“RBI’s statement that even in the face of a growth slowdown, it increased the rate to stem out inflation is a very strong and excellent external image to have,” said Arvind Sampath, head of treasury at Fullerton India Credit Co. Ltd.

“Some of the statements by the RBI governor assured the market that the policy rates could soften going forward and that the approach is very flexible. This is good for the market,” said a currency dealer of a foreign bank who did not want to be named.

Rajan’s statement suggesting that long-term debt investors remain committed to India if the RBI can bring down inflation to assuage these foreign investors was also seen as a positive for market sentiment, said currency dealers.

The domestic currency closed at 62.515 per dollar, up 0.94% from the previous close of 63.10. The unit had opened at 63.18 per dollar and strengthened as much as 62.505 per dollar.The yield on India’s 10-year benchmark bond ended at 8.751% as compared with its previous close of 8.768%.

Source:- livemint.com

TPO can't count upon multiple year's data of comparables under TNMM if their current year's data is

IT/ILT : TPO cannot determine arms length price under TNM method by relying upon multiple year data where current year data of comparable companies are available on public domain

Insurance of capital goods and inventories are eligible for input service credit

Cenvat Credit : Insurance services in relation to insurance cover of plant and machinery (viz. capital goods) and inventories are eligible for input service credit

No abuse of dominant position if party fails to provide evidences to show anti-competitive practices

Competition Act : Where there was no evidence to show that opposite party or other glass manufacturers were using their market power to eliminate processors from market, no case of contravention of provisions of section 4 was made out against OP

In The House, A Little Quid Pro Coal?

Coal is down but not out thanks in part to a pro-coal rider passed in the omnibus spending bill [pdf]. Are we looking at pro-export policy or just a little mutual back-scratching.The Bluegrass State’s coal industry has been singing the blues of late, but they’ve been handed a small victory courtesy of Representative Hal Rogers (R-KY), who, surprise, surprise, has the coal industry to thank for filling his election coffers.

When it comes King Coal in the United States, Wyoming and West Virginia are at the top, responsible for 39 and 12 percent of total coal production, respectively. But at nine percent, Kentucky is right behind.

And it’s not just about production. In 2012, a whopping 92 percent of Kentucky’s net electricity generation came from coal-fired power plants.*

Little surprise, then, that the majority of Kentucky’s congressional delegation is staunchly pro-coal (see here and here) — some might even say that the coal industry has them in its back pocket hoping to find a bit of largess in the form of spare change. And that is where our tale begins.

As has been documented in TheGreenGrok, King Coal’s seat on the throne of the U.S. energy kingdom has been a bit wobbly of late. U.S. coal production has been declining; in Kentucky production over the first three quarters of 2013 was down by 13 percent [pdf] relative to 2012. While coal consumption increased a bit in 2013, the net trend has been decidedly negative since 2011 [pdf]. And then there are the jobs — mines in 2012 employed fewer workers than in 2011, and Kentucky lost more mining jobs than any other state — shedding 2,283 employees [pdf] .

Many of those who would like to see coal maintain its kingly position blame Obama and his so-called “war on coal” for this turn of events. While it’s certainly true that his administration’s promulgation of standards on mercury emissions is not helping the coal industry — and the proposed regulations on carbon dioxide emissions from new power plants won’t cause coal’s profits to rise either — most experts agree that the real reason for King Coal’s fall is economic: the unexpected glut of natural gas from fracking has lowered its price making it competitive with coal.

And, to be fair, it should be pointed out that if the regulations being promulgated by the Obama administration are a war on something, that something is more accurately characterized as pollution, not coal.

Unfortunately for the king, coal happens to be the dirtiest of the fossil fuels, and is almost by necessity going to be placed at a disadvantage when the environment and people’s health are priorities. Given the stalemate in Congress, Obama’s only recourse to protect the environment, save lives, and slow climate change is to promulgate the regulations that the coal industry finds anathema. As they say: “It ain’t personal.”

A sign of coal’s decline can be seen in what’s been going on at the Tennessee Valley Authority (TVA).Time was, four out of every five watts of electricity generated by TVA came from burning coal. Today it’s less than half.

And in November, to add insult to injury, TVA announced it was shuttering eight plants, six in Alabama and two in Kentucky — much to the chagrin of the Kentucky congressional delegation, including Sen. Mitch McConnell (R-KY), who wrote a note of protest [pdf] warning of job losses.

But TVA President Bill Johnson wouldn’t budge, explaining his decision like so: “our objective is to make the best decision for the entire region, and that’s what we did.”

But it hasn’t been all bad news for coal; while U.S. production and consumption have slipped, U.S. exports are on the rise. And quite spectacularly so: between 2009 and 2012, exports doubled.** Part of that increase reflects growing markets for mostly metallurgical coal in China, South Korea, and India, but by far the largest share is shipped to Europe.

In January 2010, Obama committed the United States to cut its greenhouse gas emissions by 17 percent relative to 2005 by 2020 in the Copenhagen Accord. And it’s a bit surprising but we’re not all that far off from meeting that goal despite the lack of any significant national climate legislation. Unfortunately the same cannot be said of global emissions. And the United States may be reversing its trend too — emissions ticked upward in 2013.

Last October the Treasury Department issued new guidelines that seemed to reflect a concern about growing greenhouse gas emissions from other countries. These guidelines will limit U.S. bankrolling of the building of new coal-fired power plants abroad. Projects in all but the poorest countries must use carbon capture and storage to get U.S. funding under these guidelines — that is, they must meet the same greenhouse gas emissions standards that apply to domestic plants.

Rogers was most definitely not happy. Noting that “coal exports are just about the only bright light in the coal business these days,” he predicted that the new guidelines “obviously would curtail a lot of coal exports.” That may be obvious to Rogers, but to me, that seems a bit of a stretch. For one, just because the United States doesn’t finance a new power plant doesn’t mean the plant, when it is operational, won’t buy its coal from the United States. Secondly, most U.S. coal exports are metallurgical and are not used in power plants anyway.

Still, Rogers decided, true to his cause, to do something about those nasty export-killing guidelines. That something turned out to be placing a rider on the congressional omnibus spending bill [pdf], the tried and true method for legislators to get their special interest legislation through Congress under the radar. (See here, here and here.) The bill passed on January 16, and as TheHill.com reports:

“Rogers made sure the bill contains several crucial pro-coal riders that help out one of Kentucky’s primary industries. The bill stops administration plans to curtail Export-Import Bank and Overseas Private Investment Corporation financial help for coal plants overseas.”

So, chalk one up for King Coal, no doubt Rogers’ rider will mean a considerable chunk of extra change in coal’s coffers. But you can also chalk one up for Rogers and his coffers. Coal interests have given him quite a bit of money over the years, and Rogers’ latest exploit should keep the contributions flowing.

Source:- energyblog.nationalgeographic.com

Tractor-trailer is 'goods carriage' and not tractor for service-tax purposes

Service Tax : Though 'tractor-trailer' cannot carry any goods as such but, since it is adapted for carrying goods as counter-weight when trailer is carried, it became a 'goods carriage' for taxation purposes; more so, as it was registered under RTO as 'goods carriage' and taxation authorities cannot go behind registration certificate

Provision for AMC charges equivalent to actual payment in next year was an allowable expenditure

IT : Where assessee made payment to maintenance agency at end of year on basis of actual consumption of electricity, provision made was to be allowed under section 37

Co's inability to arrange funds due to losses would tantamount to commercial insolvency; HC orders i

CL : Where in response to notice issued by petitioner-company to respondent to repay amount of inter-corporate loan, respondent-company admitted its liability to pay loan, however, it was unable to arrange for funds due to incurring of huge losses, a case of commercial insolvency of respondent-company was made out and, thus, petition seeking its winding up was to be allowed

ITAT deletes concealment penalty on disclosure by assessee about his past income and payment of taxe

IT : Where assessee admits undisclosed income for earlier years which had ended prior to date of search under section 132(4) and also specifies manner in which such income had been derived, and thereafter pays tax on that undisclosed income with interest, such undisclosed income would get immunized from levy of penalty

Share application money received by a co. can't be taxed as deemed dividend if it isn't a registered

IT : Where assessee-company received share application money from another company, in view of fact that assessee was not a registered shareholder of said company, amount in question could not be taxed as deemed dividend in its hands

Goods in transit being inter-State sales to be accompanied by prescribed form; non-compliance attrac

CST & VAT : Whether goods are put in movement under local sales, imports, exports or inter-State transactions, they are goods in movement, therefore, they have to be supported by requisite declaration under Rajasthan Sales Tax Act, failing which penalty is leviable

Payment made to repossess property from tenant is capital in nature; eligible for depreciation

IT: Where relevant lease agreements, bills for purchase of assets, inspection reports, insurance papers, etc., were produced, sale and lease back transactions could not be treated as sham so as to deny depreciation thereon

Assessee to file separate appeal against assessment order even if it was incidental to writ decided

IT: Where primarily assessee had challenged vires of section 143(1)(a), which had been affirmed, challenge to assessment order being only incidental, assessee should avail its alternative remedy of filing appeal

Cricket Association not to loose its registration merely on receipt of its share in broadcasting rig

IT : Where assessee cricket board arranged international matches and received share in broadcasting right and advertisement sales from its apex body BCCI, under section 12AA(3) Commissioner could not cancel its registration by invoking first proviso to section 2(15)

Appeal lies to HC for every order passed by Tribunal 'in appeal' and not against its revisional orde

CST & VAT : An appeal lies to High Court from every order "passed in appeal" by Tribunal and not against order "passed in revision"; therefore, order passed in revision by Gujarat VAT Tribunal were held non-appealable before High Court with liberty to approach by way of writs under Constitution

SC: Respondent couldn't be prosecuted for cheque dishonour if petitioner rejected its offer to clear

Negotiable Instruments Act : If offer of respondent to pay amount of cheque which had been dishonoured along with interest was not acceptable to complainant, it was complainant's choice but that would not allow it to prosecute respondent in pursuance to complaint which it had lodged for dishonour of cheque

PANs are issued without de-facto verification, these can’t solely divulge real identity of individua

IT : PANs are issued without de-facto verification, these can't solely divulge real identity of individual: Delhi HC

Mumbai ITAT advocates for disallowance under sec. 14A even if no exempt income is actually earned

IT : Where income, whether it is actually earned or not, is not includible in total income corresponding expenditure has to be disallowed

A person publishing a false brochure aiding importer to evade duty is abettor in smuggling: HC slaps

Excise & Customs : Where an indenter had published a false brochure to enable importer in evading duty by misdeclaration of goods, such indenter was abettor of act of smuggling and was liable to penalty under section 112 equal to that levied on principal offender

AO to examine circle rates before making any addition merely on his apprehension of suppression of c

IT: Where shops sold by assessee were registered with Sub-Registrar and sale deeds were executed for them, Assessing Officer without examining those sale deeds or even making inquiries about circle rates fixed by Sub-Registrar for purpose of stamp duty valuation, could not make addition to assessee's income by merely taking a view that shops were sold below their cost of construction in terms of square feet area

Canada, Pakistan Frown At India’S Foodgrain Exports, Farm Subsidies

Rice and wheat exporting countries have raised fresh concerns about India’s food stocks and farm subsidies at the World Trade Organisation (WTO).

This comes less than two months after Western countries promised India that no action would be taken against it for breaching food subsidy levels prescribed by the multilateral body at least for the next four years. The WTO’s Committee on Agriculture (CoA) will take up the questions raised by Canada and Pakistan on India’s wheat and non-Basmati rice exports, existing levels of stocks and the subsidies extended, in a meeting scheduled on January 29, a Commerce Department official told Business Line.

Canada has asked India to give details on the volume of wheat stocks held by the Food Corporation of India (FCI) in the light of recent reports that the country would be exporting up to 20 lakh tonne of wheat due to surplus stocks.

In a representation to the CoA, Canada has also asked India to specify how it calculates the floor price (minimum price) for wheat exports. “Reports (news) indicate that the Government of India has lowered the floor price for wheat to $260 per tonne from $300 per tonne which is lower than the price of the same quality wheat from Canada (and other countries) sold in the range of $270 to $275 per tonne,” the representation said.

India and a number of other developing countries have been granted a reprieve by the WTO against legal action for breaching farm subsidy limits, fixed at 10 per cent of total produce, on items covered under the country’s food security programmes.

This was part of the deal struck at the WTO Ministerial meet in Bali, Indonesia, in December. Members are now supposed to work on a permanent solution to the problem.

India is likely to breach the prescribed subsidy limits once it fully implements its Food Security Programme which offers 5 kg of subsidised foodgrain to about two-thirds of its population. The reprieve, however, would not be applicable if the subsidised foodgrain is released in the export market and affects global prices. India is also obligated to supply all data related to production, pricing, procurement and subsidies demanded by WTO members who would want to ensure that subsidised food was not distorting the global market.

A number of civil society organisations, such as Right to Food Campaign, Action Aid and Third World Network, had earlier warned that the temporary reprieve, called the Peace Clause, would lead to insufficient protection and onerous data sharing obligation.

Pakistan, in its representation to the CoA, has asked India to furnish details of rice exports in the last two years. It has also asked the country to clarify if all non-Basmati rice varieties were eligible for market price support. “India will get some time to reply to the questions,” the official said.

Source:- thehindubusinessline.com

Isuzu Motors To Make India An Export Hub

Isuzu Motors Ltd. will make India one of its hubs to export passenger utility vehicles and pickup trucks to emerging markets in West Asia, Africa and Southeast Asia, a top company official said, as the company began construction of Rs3,000 crore factory in Andhra Pradesh.

The facility is coming up in Sri City, a special economic zone in Chittoor district bordering Tamil Nadu.

The company expects to commence operations at the plant by early 2016 with an initial production capacity of 50,000 units annually. The plant will initially cater to the domestic market. Isuzu will gradually begin exports to emerging markets in the vicinity of the Indian subcontinent as the plant reaches full capacity of 120,000 units a year.

“India is a key region in Isuzu’s global strategy for its emerging markets and as an important manufacturing hub in the future,” Takashi Kikuchi, president and managing director of its Indian subsidiary Isuzu Motors India Pvt. Ltd, said in a statement.

The Indian factory, coming up in 107 acres, will work in collaboration with Isuzu’s existing facility in Thailand, Shigeru Wakabayashi, executive vice-president and deputy managing director of Isuzu Motors India, said. Isuzu’s Thailand plant (with an annual capacity of 300,000 units) is the only facility currently producing light commercial vehicles.

“Our focus is to accelerate our business and establish Isuzu as an important player in the pickup trucks and utility vehicles market in India,” Kikuchi said.

Isuzu, which entered the Indian market in 2012, currently has two vehicles in its portfolio—sports utility vehicle MU-7 and pickup truck D-Max. Japan’s oldest vehicle manufacturer has four dealerships currently in Hyderabad, Chennai, Coimbatore and Cochin, which it will expand to nine by opening showrooms in Bangalore, Visakhapatnam, Tirupati, Madurai and Delhi by March.

It aims to have 60 dealerships by the time its manufacturing facility commences the first phase of production in 2016. It plans to expand showrooms to 180 by 2018.

Source:- livemint.com

India Imposes 5% Export Duty On Iron Ore Pellets

India imposed a 5 per cent duty on exports of iron ore pellets, taking yet another step in conserving the raw material for domestic steelmakers that has slashed its shipments to top market China.

India already levies a 30 per cent tax on exports of iron ore fines and lumps since December 2011. Along with mining and export curbs in key producing states Karnataka and Goa aimed at addressing illegal mining, the tariffs have helped cut India's iron ore exports by around 85 per cent, or 100 million tonnes, over the past two years.

Iron ore pellets had been exempted from any duty previously given negligible exports out of India.

"However, in April-November 2013, exports of iron ore pellets have risen sharply, causing an apprehension about shortage of iron ore in the country," the Ministry of Finance said in a statement on Monday.

India's steel producers last month sought a tariff on exports of iron ore pellets to safeguard domestic supplies.

India's iron ore exports to China, most of them in the form of fines, dropped 65 per cent to 11.7 million tonnes last year, Chinese customs data showed.

"I don't think the tax move will have much impact on the Chinese market," said an iron ore trader in Shanghai.

"Chinese buyers are not that interested in Indian pellets because the price is always high so they are sold mostly to the Japanese and Korean markets."

India's efforts to curb iron ore mining and exports via bans and higher taxes have choked the industry so hard that companies which have invested in the sector are throwing in the towel and exiting.

Top trader MMTC's $80 million iron ore export terminal, ready since 2010, has never handled a cargo and now the company wants to spend $16 million to convert the terminal to ship coal

Source:- profit.ndtv.com

India’S Gems And Jewellery Imports Decline 11% In December

India’s imports of gems and jewellery fell over 11% to Rs.15,735 crore in December after a sharp drop in shipments of gold bars and jewellery due to government curbs, the industry body said.

The country had imported gems and jewellery worth Rs.17,692 crore in the same month in 2012, it said. “There has been a significant decline in import of gold bars and jewellery because of restrictions. However, import of diamonds is on the rise,” Gems and Jewellery Export Promotion Council (GJEPC) chairman Vipul Shah told PTI.

Import of gold bars fell 45% to Rs.2,111.58 crore last month from Rs.3,816 crore a year earlier, according to GJEPC data. Inward shipments of gold jewellery dropped 25% to Rs.453.95 crore from Rs.606.26 crore.

India, the world’s largest gold consumer, meets its entire demand through imports. The government introduced restrictions on gold imports last year to curb the current account deficit (CAD), which had widened to a record high in 2012-13.

Besides gold bars and jewellery, the country imports diamonds, coloured gemstones, pearls, platinum and synthetic stones among others. Purchases of rough diamonds from overseas rose 6% to Rs.10,230.83 crore. Shipments of cut and polished diamonds were 24% lower at Rs.2,355 crore.

Import of rough coloured gemstones increased 14.34% to Rs.176.63 crore, while shipments of rough synthetic stones rose to Rs.41.84 crore from Rs.18 crore.Import of raw pearls increased to Rs.4.79 crore from Rs.3.16 crore.During the April-December period, gems and jewellery imports declined over 10% to Rs.1,33,980 crore from Rs.1,49,570 crore in the year-ago period, the GJEPC data showed.

The government increased import duty on gold thrice to 10%, banned inward shipments of gold coins and medallions and made it mandatory for importers to export 20% of their shipments before purchasing more of the metal from overseas.

Source:- livemint.com

Govt To Revisit Gold Import Curbs, Says Anand Sharma

We have by and large gone along with the revenue and the Reserve Bank on this matter. We are equally keen to ensure that we remain strong and competitive when it comes to the gems and jewellery sector and exports," he told reporters here on the sidelines of the inauguration of CII Partnership Summit 2014 while replying to a question on Congress president Sonia Gandhi's letter on relaxation of a rule linking imports of gold.

He said, "My officials are presently addressing- the Secretary Commerce and DGFT (Director General of Foreign Trade). On my return to Delhi I will be discussing this issue with the Finance Minister (P Chidambaram). I would like to assure that whatever changes are required in the rule when it comes to the interest of Indian economy and the jewellery industry surely we will look into that very seriously."

"At the best we will revisit this and see that how to have a balance. I can only discuss and make recommendation because these are matters that are dealt directly by the Finance Ministry and the Reserve Bank but definitely there is no question of delaying....this is very much on my table," he added.

Gandhi, without spelling out her own opinion, had last week asked the Commerce Ministry to look into demands made by gems and jewellery exporters for a cut in customs duty on gold and relaxation of a rule linking imports of the metal with exports.

"You are requested to kindly look into the matter (demands of the gems and jewellery industry) for appropriate action," said a letter written by the office of Gandhi to the Ministry of Commerce and Industry.Meanwhile, Chidambaram today said the restrictions will be reviewed by March end.

"I am confident that by the end of this (financial) year we will be able to revisit some of the restrictions on gold import but we will do so only when we are absolutely sure that we have a firm grip on the current account deficit," he said.

Source:- post.jagran.com