Employees contribution to PF hit by sec. 43B allowable if deposited before due date of filing of ret

IT : Where employer did not deposit PF/ESI contribution within due date as contemplated under PF/ESI Scheme/Act, but deposited it before due date of filing return, assessee would be entitled to deduction

Interest was allowable if borrowings were utilized by assessee for expansion of its business

IT: Where assessee used borrowed funds for purpose of setting new project for expansion of its business, interest was to be allowed as revenue expenditure

FinMin releases DTC Bill for public comments; 153 out of 190 recommendations of Standing Committee m

IT/ILT/INDIAN ACTS & RULES : Significant changes in the proposed Direct Taxes Code, 2013

No penalty on assessee on pretext of incorrect sec. 80-IB relief if judiciary differs on its allowab

IT : Where there were divergent judicial opinions on allowability of claim made under section 80-IB, assessee could not be penalized under section 271(1)(c)

Equity research is liable to service tax under Market Research services

Service Tax : Research on equity is a product research and is liable to service tax under Market Research Services

Issue of TDS liability on sums paid by 'Amar Ujala' to advertising agencies won't be hit by writ jur

IT : Issue of TDS liability of assessee newspaper on payment to advertising agency not to be decided invoking writ jurisdiction but in appeal under Act

No sec. 10(23C) relief to school collecting fees in name of development fund to be created for benef

IT : Where assessee trust, running a school, collected excess fee in name of development fund which was not brought in its books of account, in view of fact that trust was established for benefit of children of managing trustee and, moreover, there was no obligation on its part to reinvest amount in question in educational activities, it was to be concluded that trust existed for profit motive and, therefore, assessee's claim for exemption of income under section 10(22) and 10(23C) was to be re

[Indian Customs Non-Tariff Notification] : Amends Notification No. 36/2001-Customs (N.T.), dated the 3rd August, 2001

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F.No.437/78/2013-Cus-IV

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

New Delhi, dated the 28th March, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.840/JPR/19-XIX/2010/1121-31dated 27.05.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit, New Delhi in the case of M/s Hindustan Zinc Ltd. (100% EOU), Hydro-1, Chanderiya Lead Zinc Smelter, Putholi, Chittorgarh & others to the Commissioner of Customs (Exports), JNCH, JNPT, Nhava Sheva, Post-Uran, Distt-Raigad, Maharashtra for the purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit, B-3 & B-4, 6th Floor Paryavaran Bhawan, C.G.O. Complex, Lodhi Road, New Delhi.

2. The Commissioner of Customs (Exports), Jawaharlal Nehru Custom House, JNPT, Nhava Sheva, Post-Uran, Distt-Raigad, Maharashtra.

3. The Assistant/Deputy Commissioner of Customs, (Exports), Near Balaji Temple, Custom House, Kandla.

4. The Commissioner of Customs (Import), Custom House, Tuticorin.

5. The Joint/Additional Commissioner of Customs (Import), Customs (Preventive), Sharda House, Bedi Bunder Road, Jamnagar.

6. The Assistant/Deputy Commissioner of Customs (Import), Port-Mundra, Gujarat.

7. webmaster.cbec@icegate.gov.in

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F.No.437/45/2013-Cus-IV

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

New Delhi, dated the 28th March, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice http://ift.tt/PcwrdA to 6054 dated 05.06.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Mumbai. Zonal Unit, Mumbai in the case of M/s Ingram Micro India Limited, Mumbai, Godrej I.T. Park, B-Block, 5th Floor, Pirojshanagar, L.B.S. Marg, Vikhroli West, Mumbai-400079 to the Commissioner of Customs (Import), Air Cargo Complex, Mumbai for the purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Mumbai Zonal

Unit, UTI Building, 13, Vithaldas Thackersey Marg, New Marine Lines, Mumbai- 400020.

2. The Commissioner of Customs (Import), Air Cargo Complex, Mumbai.

3. The Commissioner of Customs (Import & General), Airport, New Delhi.

4. The Commissioner of Customs, (Airport & Air Cargo), Chennai.

5. webmaster.cbec@icegate.gov.in

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F.No.437/33/2014-Cus-IV

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

New Delhi, dated the 28th March, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F. No. VIII/48/02/2012-DRI TTN dated 13.04.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Chennai in the case of M/s Nitish Tools Pvt. Limited No. 2088, Trichy Road, Singanallur, Coimbatore and M/s Shree Sai Enterprises, No. 56 Thulasi Ammal Layout, Lakshmipuram, Peelamedu, Coimbatore to the Commissioner of Customs, Customs House, Tutiorin for the purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, 25, Gopalakrishna (Iyer) Road, T. Nagar, Chennai- 600017

2. The Commissioner of Customs, Custom House, New Harbour Estate, Tuticorin-628004.

3. The Commissioner of Central Excise, No.6/7, A.T.D. Street, Race Course, Coimbatore- 641018.

4. webmaster.cbec@icegate.gov.in.

Reassessment couldn't be alleged as 'change of opinion' if it sought rectification of excess exempti

CST & VAT : Date of introduction/operaton of amendment cannot control its retrospective operation; therefore, it is immaterial if a period for assessment or reassessment under section 21 had already expired before retrospective amendment increasing time-limit therefor

Demerger comes within purview of reconstruction; HC directs demerged co. to pay stamp duty according

CL : Scheme of arrangement between parent company and resulting company was of demerger which amounts to reconstruction as per article 20(d) of Schedule-I of Gujarat Stamp Act, 1958 and applicant was required to pay for change of ownership as per section 2(g) and article 20(d) of Schedule-I of Stamp Act

Sum received by Dutch Co. for providing marketing service outside India to Indian Hotel taxable as p

IT/ILT : Where Dutch company provided marketing services to Indian hotel and receipts were not proved to be mere reimbursement of expenses, following Tribunal's order in earlier years, taxability of impugned amount was required to be determined in terms of article 7 of DTAA with Netherland

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F.No.437/28/2014-Cus-IV

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

New Delhi, dated the 28th March, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No. DRI/MZU/C/Inv-05/2013-14/811 to 815 dated 20.01.2014 issued by Additional Director General, Directorate of Revenue Intelligence, Mumbai Zonal Unit, Mumbai in the case of M/s Romil Jewelry,125, Niraj Industrial Estate, Opp. Sun Pharma, Off Mahakali Caves Road, Andheri (East), Mumbai to the Commissioner of Customs, Chhatrapati Shivaji International Airport, Mumbai for the purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Mumbai Zonal Unit, Mumbai-400020.

2. The Commissioner of Customs ,CSI Airport, Avas Corporate Point, Makwana Lane, Off

Andheri Kurla Road, Marol, Andheri (East), Mumbai.

3. The Commissioner of Customs, Customs House, Near All India Radio, Navrangpura, Ahmedabad.

4. webmaster.cbec@icegate.gov.in

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F.No.437/25/2014-Cus-IV

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

New Delhi, dated the 28th March, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.VIII/26/11/2013 -DRI–HRU (A) dated 09.01.2014 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Chennai in the case of M/s Sai Deepa Rock Drills Pvt. Ltd., Plot No.106, Phase-II, IDA, Cherlapally, Hyderabad-500051 to the Commissioner of Customs (Import), Chennai Sea Port,Custom House, 60, Rajaji Salai, Chennai 600001 for the purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, 25, Gopalakrishna (Iyer) Road, T. Nagar, Chennai- 600017

2. The Commissioner of Customs (Import), Chennai Sea Port, Custom House, 60 Rajaji Salai

Chennai- 600001

3. The Commissioner of Customs (Import), ICD, Patparganj, 56, Near Ghazipur Village,

Patparganj, Delhi

4. The Commissioner of Customs (Import), 15/1, Strand Road, Fairley Place, B.B.Bagh,

Kolkata.

5. webmaster.cbec@icegate.gov.in

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F.No.437/11/2014-Cus-IV

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

New Delhi, dated the 28th March, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.23/63/2010-DZU/6112 dated 20.12.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit, New Delhi in the case of import of old and used photocopier machines by Sh/Shri Amit Vipin Chanana & Sanjeev Goel to the Commissioner of Customs (Sea port-Import), Custom House, Chennai for the purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit, B-3 & B-4, 6th Floor Paryavaran Bhawan, C.G.O. Complex, Lodhi Road, New Delhi.

2. The Commissioner of Customs, (Sea Port Import), Custom House, Chennai.

3. The Commissioner of Customs, (Port-Imports), Custom House, 15/1, Strand Road, M.S. Building, Custom House, Kolkata-700001.

4. The Commissioner of Central Excise, Customs & Service Tax, C.G.O.Complex-II, Kamla Nehru Nagar, Ghaibad-201002.

5. The Commissioner of Customs, Inland Container Depot, ‘ICD’ Tughlakabad, New Delhi.

6. webmaster.cbec@icegate.gov.in

[Indian Customs Order] : Appointment of Common Adjudicating Authority

F.No.437/09/2014-Cus-IV

Government of India

Ministry of Finance

(Department of Revenue)

Central Board Excise & Customs

*****

New Delhi, dated the 28th March, 2014

ORDER

In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice http://ift.tt/1fIPjXO dated 31.12.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s Power Grid Corporation of India Limited, Plot No-2, Sector-29, Gurgaon, Haryana-122001 to the Commissioner, Customs, Central Excise & Service Tax, Bhubaneswar-I, Bhubaneswar (Orissa) for the purpose of adjudication.

(R.P.Singh)

Director (Customs)

Copy to:-

1. The Additional Director General, Directorate of Revenue Intelligence, Ahmedabad Zonal Unit, Ahmedabad.

2. The Commissioner, Customs, Central Excise & Service Tax, Kanpur, Sarvoday Nagar, Kanpur-208005.

3. The Commissioner of Customs, Kolkata Sea, Custom House, 15/1, Strand Road, Kolkata- 700001.

4. The Commissioner of Customs (Import), Chennai Sea port, Custom House, 60, Rajajisali, Chennai, Tamil Nadu-600001.

5. The Commissioner of Customs, (Import), Jawaharlal Nehru Custom House, Nhava Sheva, Tal: Uran, Distt: Raigad, Maharashtra-400707.

6. The Commissioner, Customs Central Excise, & Service Tax, Bhubaneswar -I, C.R. Building, Rajaswa Vihar, Bhubaneswar (Orissa)-751007.

7. webmaster.cbec@icegate.gov.in

MCA rolls out new forms under 2013 Act; allows e-filing of certain old forms during April 1, 2014 to

Companies Act, 2013/Companies Act, 1956 : Staggered roll out plan of various forms under Companies Act, 2013 and continuance of forms under provisions of Companies Act, 1956

MCA allows e-payment of stamp duty and court fees to speed-up process of issuing certified copies by

Companies Act, 2013 : Section 399 of the Companies Act, 2013 - Inspection, production and evidence of documents kept by registrar - Online payment of stamp duty and court fee stamp for issue of certified copies of documents filed with registrar of companies

Sec. 80-IA relief: Energy used for captive consumption to be valued as per rates of State Electricit

IT : Where assessee had established a Captive Power Plant in State of Chhattisgarh to supply electricity to its steel division, for purpose of section 80-IA deduction market value of power supplied by assessee to steel division should be computed considering rate of power charged by Chhattisgarh State Electricity Board for supply of electricity to industrial consumers

Karnataka Sales Tax Act doesn't fix entire liability of co. on any of its directors

CST & VAT : There is no provision under Karnataka Sales Tax Act so as to fasten entire liability on any one of directors of company to recover amounts due in respect of erstwhile assessee-company

No. sec. 194C TDS on sums remitted on hiring of vehicles without any service of carriage of passenge

IT : Where assessee, in pursuance of contract of transporting employees of an institute, hired vehicles from a private agency, in view of fact that assessee had only rented vehicles and said agency had not provided any service of carriage of passengers, assessee was not required to deduct tax at source under section 194C while making payment of hiring charges

Merchant-banker was liable for violating disclosure norms as he failed to exercise post-issue due di

SEBI: Where appellant as a BRLM had failed to exercise due diligence which resulted in lack in veracity and inadequacy of disclosures in offer document, appellant had failed to comply with provisions of SEBI (DIP) Guidelines, 2000

HC quashed order passed by ITAT without considering reasons given for condonation of delay in filing

IT : Order passed by Tribunal was to be set aside where he did not consider explanation offered by assessee for condonation of delay in filing appeal

Pre-deposit through credit or PLA in case of withdrawal of monthly facility of payment is valid, mat

Excise & Customs : In case of withdrawal of facility of monthly payment of duty, duty must be paid consignment-wise in cash and in case of non-compliance therewith, Judicial Member holds pre-deposit through Cenvat credit is valid while Technical Member directs pre-deposit of duty through PLA; matter referred to third member

Derivative losses weren't bogus merely because transaction involved two client codes which was recti

IT : In absence of relevant material on record, assessee's claim for set off of loss incurred in derivative business against other income could not be rejected on ground that 'client code modification' procedure, allowed by NSE was improper and, it gave rise to a bogus loss

LIBOR rate to be used for comparability if terms of credit and transactions between AE and Non-AE ar

IT/ILT : Where no direct comparison could be made between controlled transactions with A.E. and uncontrolled transactions with third party regarding charging of interest on delayed payments for sale transaction, LIBOR rate + 1.5 per cent be applied and adjustment worked out

SC: Limitation period for recovery by State Financial corp. would begin after sale of mortgaged asse

Banking Laws: Where financial corporation took steps for recovery of amount advanced to industrial concern by resorting to provisions of section 29 of State Financial Corporation Act, limitation period for recovery of balance amount would start only after adjusting proceeds from sale of mortgaged assets of industrial concern

Extent of sec. 69C addition due to bogus purchases was a finding of fact; HC dismissed revenue's app

IT: Where Tribunal recorded a finding that 20 per cent of purchases made by assessee from 'R' were bogus and said amount was liable to be added to assessee's taxable income under section 69C, finding so recorded being a finding of fact, no substantial question of law arose therefrom

Margin earned by seller in high seas sales couldn't be charged to ST under Business Auxiliary Servic

Service Tax : In case of high-sea sales transactions, margin earned by seller, which forms part of customs value for charge of customs duty in hands of buyer, cannot be charged to service tax under Business Auxiliary Services

Trust has to file Form No. 10 before completion of assessment to earmark certain income for future a

IT : Where a charitable trust, claiming benefit of section 11, wants to accumulate certain income in order to carry it forward for application in future years for charitable purpose, it is mandatory for trust to furnish to Assessing Officer particulars required in respect of said income in Form No. 10 in terms of rule 17 before completion of assessment proceedings

Revisional order quashed as basis for such order was completely distinguished from grounds laid down

IT : Where show-cause notice issued is on one ground and revisional order is passed on an entirely different ground, order cannot be sustained in law

Commissioner couldn't consider factor other than those statutorily laid down to waive or reduce pena

IT: While considering prayer for reduction/waiver of penalty, Commissioner shall consider factors enumerated in section 18B and no other factor

Special law providing for tax on sale of alcohol is a 'sales tax law' for purpose of CST Act

CST & VAT : 'United Provinces Sales of Motor Spirit, Diesel Oil and Alcohol Taxation Act, 1939' is a sales tax law within meaning of section 2(i) of CST Act and therefore, if sale of alcohol is liable to tax thereunder, then, it cannot be exempted from CST under section 8(2A) of CST Act

Leather Exports Up 17.5% In April-Jan

Leather exports from the country have increased by 17.5 per cent during the April-January period of this fiscal against the comparable period of the 2012-13 financial year, according to data from the Directorate General of Commercial Intelligence & Statistics.

Shipments increased to $4,861.29 million (? 29,301.6 crore) against $4,138.13 million ( ?22,542.74 crore), bolstered chiefly by leather footwear exports which contributed an increase of $244.53 million.

Germany kept its position as the top importer, buying 13.09 per cent of the goods exported, while the US and the UK bought close to 11.5 per cent each.

Rafeeque Ahmed, President, Federation of Indian Export Organisations, said efforts are on to find buyers in China. “China is now a buyer of top branded products manufactured in India. Now, the effort is to popularise other finished goods manufactured and designed in India.”

China, contributed to only 2.6 per cent of the total exports during the April-January period.

He also said India will meet its target of $6 billion in exports during fiscal 2013-14. “During February-March, exports usually rush to meet deadlines, which lead to a spurt in shipments,” he explained.

Another industry person requesting anonymity said the Tamil Nadu Pollution Control Board’s move to close down tanneries in Tamil Nadu over environmental violations last year has cut back output by close to 20 per cent. He said the industry is recouping, and may scale up production once proper Zero Liquid Discharge Systems are in place.

Source:- thehindubusinessline.com

Indian Iron Ore Imports See Sharp Fall In 2013-14

Business Standard reported that after seeing a record rise in 2012-013, India’s iron ore imports have plunged to a 5 year low so far this financial year.



In the first 11 months of 2013-14, steel mills and sponge iron makers together imported 420,000 tonne of iron ore, primarily lumps, a decline of 86.2% compared with 3.05 million tonnes in 2012-13.



Various factors such as depreciation of the rupee against the dollar, higher prices in the spot market and improved supply in the domestic market contributed to the decline in imports

Source:- steelguru.com

Sum incurred couldn't be disallowed if TDS deducted therefrom was deposited before return filing due

IT: In view of retrospective amendment in section 40(a)(ia), deduction made in last month of financial year would be allowable, if same was deposited before filing of return under section 139(1)

Mere appointment as an agent doesn't entitle him to claim deduction in respect of project of his pri

IT: Concurrent findings of authorities disallowing benefit of deduction to assessee in respect of project of sister concern was to be accepted

Entity engaged in diversified activities excluded from comparable list as its segmental report weren

IT/ILT : Where in course of transfer pricing proceedings, TPO made certain adjustment to assessee's ALP, in view of fact that one of comparables selected by TPO was engaged in diversified activities but segmental reporting was not available, it was to be concluded that said comparable was to be excluded while determining ALP on account of functional difference and, matter was to be remanded back for disposal afresh

Packing of fertilizers not liable to ST under Packing Activity Services as it was integral part of m

Service Tax : Packaging of fertiliser as per Fertiliser (Control) Order, 1985 is an integral part of manufacture, as fertiliser cannot be marketed without it; therefore, said activity could not be regarded as 'service' under Packaging Activity Services

CCI ordered investigation against Western Coalfields Ltd. as it was dominant player in market of non

Competition Law : Where opposite parties were sole and dominant players in market of sale of non-coking coal for power generation in India, their conduct was to be investigated for alleged contravention of Act

Auto Parts Exports From India Up 4.4 Per Cent At $9.7 Bn In 2013

At a time when the Indian auto industry is reeling under a prolonged slump, the component makers have something to cheer as exports grew by 4.4 per cent to touch $9.69 billion in 2013.

Despite a decline in import by five per cent to $12.70 billion last year, the country remained a net importer of components, according to latest data issued by Automotive Component Manufacturers Association of India (ACMA).

Commenting on the rise in exports, ACMA Executive Director Vinnie Mehta told PTI: "80 per cent of our exports are to global original equipment manufacturers (OEMs) and tier I companies. Growing credibility of domestic component makers have led to many global companies setting up their sourcing centres in India."

There are 35-40 international purchasing offices set up by various global entities in India now, he added.

The US remains India's biggest component export market but shipments to the country were down 7.1 per cent last year at $1.98 billion. Exports to Germany, the second largest market, registered 8.6 per cent increase at $780 million, while it was up 3.6 per cent to the UK, the third largest, at 580 million.

On the imports front, Mehta said: "The decline in numbers are largely a reflection of the slowdown in the Indian automobile market."

In 2013, China continued to be the number one country from where maximum components were imported, valued at $2.62 billion, up 10 per cent from the previous year.

Germany was second at $1.86 billion, down 3 per cent, followed by Japan at $1.62 billion, down 14 per cent.

India's components imports are mainly in two categories -- high tech parts which come mainly from Germany, Japan, Korea and Thailand; and aftermarket parts which are usually originating from China.

Annual car sales in India had declined for the first time in 11 years in 2013, posting a 9.59 per cent dip with the auto industry reeling under a prolonged demand slump due to the economic slowdown.

According to the Society of Indian Automobile Industry (SIAM), domestic car sales fell to 18,07,011 units in 2013 from 19,98,703 units in the previous year.

When asked about the prospects in 2014, Mehta said: "It is really difficult to predict but we don't see the market bouncing back soon, as even after the formation of a new government it will take at least six months to stabilise."He, however, hoped that there should be some uptick in the October-December quarter.

Source:- economictimes.indiatimes.com

Needed Devolving In Excise Rules

Last week, the Union government decentralised the power to impose restrictions on certain facilities when a manufacturer or a first-stage or second-stage dealer or an exporter commits certain types of offences. Earlier, only the member (central excise) of the Central Board of Excise and Customs (CBEC) could impose the restrictions. Now, that power has been given to chief commissioners of central excise.

Rule 12CC of the Central Excise Rules, 2002, and Rule 12AA of the Cenvat Credit Rules, 2004, were first introduced on December 30, 2006, empowering an officer authorised by CBEC to impose restrictions on defaulters. Specified as serious offences were removal of goods without the cover of an invoice and without payment of duty, without declaring the correct value for payment of duty, and where a portion of sale price, in excess of invoice price, is received by the assessee or on his behalf but not accounted for in the books of account. Also, taking of Cenvat credit without the receipt of goods specified in the document based on which the said credit has been taken, taking it on invoices or other documents apparently not genuine. Plus, issue of excise duty invoice without delivery of goods specified in the said invoice and claiming of refund or rebate, based on the said invoice or other documents which a person has reason to believe as not genuine.

The deterrent was to withdraw the facility of monthly payment of duties, making it compulsory for the assessee to pay excise duty for each consignment at the time of removal of goods. And, to withdraw the facility for payment of duty by utilisation of Cenvat credit. The restrictions could be imposed only in cases where the duty or Cenvat credit involved in the specified offences exceeded Rs 10 lakh. Time limits for the restrictions to be in force were also laid down.

These restrictions were challenged in courts on technical grounds. In the case of Dhariyal Chemicals [2009 (234) ELT 0208 (Guj.)], the Gujarat high court rejected a challenge to the Constitutional validity of the rules and the notifications. However, in the case of Aryn Ispat and Power Pvt Ltd [2012 (281) ELT 15 (Ori.), the Odisha high court held the Rules 12CC of the CE Rules, 2002, and Rule 12AA of the CC Rules, 2004, notified in the year 2006, were without any authority of law. The government's appeal against that judgment was admitted by the Supreme Court [2013 (295) ELT A22 (SC)]. After the Gujarat HC judgement but before the Odisha one, the government got the necessary amendments made through the Finance Act, 2010, and issued fresh notifications on March 12, 2012.

The recent amendment placing the powers to impose restrictions on facilities in the case of specified offences in the hands of chief commissioners will facilitate personal hearings closer to where the assessee is located and help in quicker decisions. The defaults noticed at the ground level and recommendations to impose the restrictions need not be taken right up to the CBEC. Similarly, an assessee need not go to Delhi to appear in personal hearings to only state one's case.

Source:- business-standard.com

Electronic Data Interchange To Ease Export To Pak Inaugurated

With a view to facilitate trade through Integrated Check Post (ICP) at Attari and to cut down the transaction cost of exporters, custom commissioner Sunil Sawhney inaugurated an electronic data interchange (EDI) on Saturday.

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On the occasion, exporters and senior officials of various concerned agencies like National Informatics Centre (NIC), Land Port Authority of India, Central Warehousing Corporation and Border Security Force (BSF) were also present.

"The latest version of this system called ICES 1.5 (Indian Customs EDI System) is now available at ICP, Attari, which has been successfully launched with the joint efforts of the officers of customs and NIC,"said Sawhney.

"ICES is an automation system for processing of documents submitted for clearance of cargo meant for international trade,"he added.

"Traders sitting at home can file their documents, which is reviewed by various levels of officers at various stages of processing. The interaction between the trades and officers is reduced to the minimum and the traders can view the status of the documents online through IceGate (e-Commerce Portal of Central Board of Excise & Customs) web site 'icegate.gov.in',"he said.

Sawhney said, "While reducing the dwell time for export and cutting transaction costs, this system also enhances the efficiency of the department and reduces the chances of frauds which are often observed during manual operations."

"This system also facilitates the integration of documents with other agencies such as DGFT (Directorate General of Foreign Trade), banks as well as custodian of cargo, making the trade hassle free. After full implementation of the system shortly, the exporters, who are exporting their goods to Pakistan, while availing various export incentives, would directly get the export incentive credited to their bank accounts,"he added.

The customs commissioner said the Amritsar customs commissionerate was planning to extend this system for imports also. "This move of the customs department is also a step forwarded in promoting around the clock trade at the Attari-Wagah border,"he added.

Source:- hindustantimes.com

FPI regime to begin from June 1, 2014; SEBI’s registration window for FIIs and sub-accounts opens ti

SEBI : Commencement of Foreign Portfolio Investor (“FPI”) regime

Owner of confiscated vehicle to be given first option to purchase vehicle at highest bid price under

GST/INDIAN ACTS & RULES : Madhya Pradesh Value Added Tax Rules, 2006 - Amendment in rules 56, 74 & substitution of form 61-A

MP Govt. dispenses with requirement of filing challan along with e-return of VAT if taxes are paid e

GST/INDIAN ACTS & RULES : Madhya Pradesh Value Added Tax Rules, 2006 – Amendment in rule 23-A

MCA releases list of notified sections of 2013 Act along with corresponding sections of 1956 Act rem

COMPANIES ACT, 2013/COMPANIES ACT, 1956 : Table Containing Provisions of Companies Act, 2013 as notified up to date and Corresponding provisions thereof under Companies Act, 1956 Issued by MCA

‘Satisfaction’ of AO for assessment of other person may come after concluding assessment of searched

IT: The Assessing Officer could record his satisfaction for issuing notice under section 158BD in the case of person other than searched person even after the completion of assessment of searched person

HC affirms lower presumptive rate than prescribed in sec. 44AD considering history and peculiarity o

IT : Where in case of assessee, engaged in civil construction business, Tribunal applied a net profit rate of 7 per cent keeping in view previous history, local knowledge and circumstances pertaining to assessee, said order of Tribunal did not require any interference

Delay in filing appeal can be condoned only when date of service of notice is established, rule HC

Excise & Customs : For purposes of computing period of limitation, relevant date is date on which order which is sought to be appealed against is communicated; unless such date is determined by Tribunal, there is no question of delay or condonation of any delay or dismissal of appeal being barred by limitation

CCI slapped Rs 1 Cr penalty on Google on its failure to supply docs relating to ongoing investigatio

CL : CCI penalizes Google for dilatory tactics in investigation into alleged abuse of its dominant position

Issue of additional shares without knowledge of director and selling her property at low price is an

CL : Where respondent nos. 2 and 10, i.e., directors of respondent no. 1, company, passed a board resolution for additional allotment of shares at back of petitioner i.e. another director, representing minority shareholding, with motive to sideline her and they also sold property of respondent no. 1 company at throwaway price in favour of buyer connected with them, a case for oppression and mismanagement was clearly made out under sections 397 and 398 of 1956 Act

Annulment of scrutiny assessment by higher authorities can't be a ground for reopening of assessment

IT: Reopening of assessment under section 147 on ground that assessment under section 143(3) has been annulled by higher authorities would mean abuse of process of law; assessment can only be reopened if Assessing Officer comes into knowledge of any new material from which he has reason to believe that certain income of assessee has escaped assessment

Interest on deposits under tea development account to be included or not for sec. 33AB relief is que

IT : Whether income on account of interest earned by assessee from out of deposits is to be included in income of assessee from growing and manufacture of tea in order to compute permissible deduction under section 33AB is a pure question of fact to be decided by lower authorities

Dept.'s delay not condonable as reckless approach shown and no action was taken against erring indiv

CST & VAT : Undoubtedly when Department files appeal/revision with some delay, it may deserve some leverage for official hierarchical steps for permission etc. but a wholly unexplained, reckless and negligent approach of delay cannot be overlooked particularly when no action is taken against erring individual

Scope of retro-amendments couldn’t be curtailed by treaty - HC’s passing remarks; denies stay on rec

IT/ILT: The scope and effect of the legislation cannot be curtailed by the DTAA, if after it comes into force an Act of Parliament is passed which contains contrary provision - This issue could have been discussed further had the petitioner questioned the legality of the Finance Act, 2012 inserting Explanations 5 and 6 in section 9(1)(vi) of the Act - The Tribunal had rightly directed deposit of 50 per cent of tax liability on the grounds urged by the petitioner seeking grant of interim stay

SC allows conditional bail to Subrata Roy; asks Sahara to deposit money and bank guarantee of Rs. 5,

SEBI : Supreme Court allows interim bail to Subrata Roy on condition of deposit of sum of Rs. 5,000 crores with the Court and bank guarantee of Rs. 5,000 crores of a nationalized bank in favour of SEBI

ITAT deletes TP adjustment as BPO and KPO Cos were taken as comparables for co. engaged in software

IT/ILT: Where while determining ALP, TPO had worked out PLI on basis of comparables which were not in same line of business carried on by assessee, same could not be accepted; there was no justification on part of TPO to compare financials of assessee-company to those of BPO and KPO companies and same should be compared only with software development companies

Seized cash not to be released unless assessee proves its source or until completion of block assess

IT : Where there were inherent contradictions in stand of assessee regarding source of asset and source of asset was not explained, release of seized assets was not possible

CLB rejected relief sought to stay AGM as there would be no change in board which would affect co. p

CL: When no change or likely change was going to take place in Board or in ownership of shares or by way of outsiders acquiring shares, section 409 of 1956 Act could not be invoked

Block assessment held null and void as it was passed in absence of search authorization

IT: In absence of a search authorization, assessment orders under section 153A cannot be passed

HC orders for refund of penalty as it was collected even prior to passing of order levying penalty

CST & VAT : Where penalty had been collected even prior to passing of order levying such penalty, such illegal collection/levy of penalty was set aside and department was directed to refund back same

ITAT to consider notional tax effect in case of loss to check maintainability of revenue's appeal, r

IT : For presentation of an appeal before Tribunal, where tax effect involve is nil and it is a case of loss, notional tax effect is to be considered

RBI extends transitional period for implementation of Basel III Capital norms for one year till 31-0

BANKING : Implementation of Basel III Capital Regulations in India - Capital Planning

Interest on borrowed fund couldn't be disallowed if assessee distinguished it from own funds advance

IT: Where there were sufficient funds available with assessee-company on which no interest was paid and out of which loans and advances to associate companies could be made, Assessing Officer was not justified to disallow claim of interest on borrowed funds

RBI goes lenient on forward contracts for exports or imports; allows cancellation up to 75% of eligi

FEMA/ILT : Risk Management and Inter Bank Dealings

In composite contract of sales and service only service element was liable to ST

Service Tax : Goods deemed to be sold in execution of works contract of repair of transformers are not liable to service tax and even otherwise, where facts indicate that both parties to contract were conscious of terms which involved both sales and service, only service element can be charged to service tax

Reassessment justified as exp. claimed by hospital was reported by medical council as bogus

IT : Where assessee trust, running hospital, had not produced list of donors, expenditures claimed were reported by Medical Council to be bogus and discrepancies were found in investment declared and balance sheet submitted, initiation of reassessment was justified

Penalty deleted as deductions claimed were although not allowable yet it were allowed in earlier yea

IT: Where penalty was imposed on assessee for raising a false claim of deduction under section 80-IB, in view of fact that similar claim had been allowed in earlier years, assessee could not be held guilty of filing inaccurate particulars of income with an object to evade tax and, consequently, impugned penalty order was to be set aside

HC lays down guidelines on waiver of pre-deposit requirement

Excise & Customs : Full waiver of pre-deposit must be granted where demand is without jurisdiction or contrary to settled case-law; in case of arguable cases, partial waiver must be granted and in case of appeals involving no case in favour of assessee, full pre-deposit must be ordered

Bidders from different locations quoting similar prices depicts price determination and bid rigging

Competition Law : Quotation of identical prices by opposite party-bidders even though they were located at different geographical locations established that bidders had entered into agreement for bid rigging in contravention of section 3

Sums paid to employee deputed for Indian branch of bank won't be hit by sec. 44C; allowable under se

IT/ILT: Where payment is made to employee deputed to India exclusively for work performed by him for Indian branch of assessee bank, then said expenditure does not fall under section 44C but is fully allowable under section 37

Political parties violated FCRA norms by accepting donations from Indian subsidiaries of foreign Co.

FERA : Where more than one half of nominal value of share capital of companies Sterlite and Sesa was held by Vedanta, a corporation incorporated in a foreign country or territory within meaning of section 2(e)(vi)(c) of Foreign Contribution (Regulation) Act, 1976, donations accepted by political parties from Sterlite and Sesa accrued from 'Foreign sources' and was a blatant violation of FCRA, 1976

Review order couldn't be passed on grounds not examined earlier while passing of original order

IT: Review/recall judgment and order passed by High Court on grounds which were not canvassed at all at the time of hearing of main special civil application is not permissible

Sale tax incentive available under scheme not be deducted from assessable value under excise wef 1-7

Excise & Customs : Where assessee is allowed to retain a part of sales-tax collected by it under a scheme framed by State Government, then, in computing assessable value such retained sales tax is : (a) allowed as deduction under old law prevalent upto 30-6-2000; but (b) is not allowed as deduction under new law effective from 1-7-2000

Income duty reflected in accounts and disclosed in revised return after search couldn't be held as u

IT : Income entered in books of account, which is detected in search and duly disclosed in return filed under section 139(4) subsequent to search, would not constitute undisclosed income

No abuse of dominance by SAIL as it was not dominant player in production of iron ore, says CCI

Competition Act: Steel Authority of India is not dominant in iron ore production market of India and, thus, abuse of dominant position in respect of bidding for setting iron ore processing plants for supporting its activity could not be inferred

Enabling Environment For Steel Industry Slowly Taking Shape In India

Mr Sushim Banerjee FG of INSDAG wrote in the Financial Express that amid subdued demand, excess capacity and compressed margins, there is some good news for the Indian steel industry. After a long gap, it has turned a net exporter surplus for the first 11 months of the fiscal stands at 0.24 million tonne and the figure may reach 0.5 million tonne for the whole year.

One of the factors that might help steel exports is the eurozone’s gradual recovery, which is likely to enhance Europe’s appetite for imported steel such as HR coil. Global iron ore prices, currently at USD 115 per tonne CFR China, are projected to fall below USD 100 per tonne in coming weeks. That will put further pressure on NMDC to lower indigenous prices for direct sale, and to reduce benchmark prices for e-auctions in Goa and Karnataka.

Global coking coal prices are also coming down, which is evident from the current import rate of USD 150 per cfr/tonne. The recent gain in the exchange rate is likely to bring down the landed cost of imported coal.

For both these raw materials, the possibility of a slowdown in China is cited as a key factor for price depression. In the first 2 months of 2014, China’s crude steel production grew a mere 1.7% over the previous year. The unrecovered loans extended to the steel industry by Chinese banks have made bank credit tough to secure for industry.

In India, the price hike of USD 30 to USD 40 per tonne for both long and flat steel over the last three months has by and large been absorbed. Thus, with the major costs of production contained, along with a rise in domestic realisation, the Indian steel industry can look forward to reasonable growth in Ebitda margin in coming quarters.

There is a strong belief among the business fraternity, working professionals and employees that a better environment awaits us after the elections. As investment decisions are deeply influenced by uncertainty, this feel good anticipation is prompting buyers and processors to build up inventories and complete unfinished construction. These 2 factors would drive steel demand.

A renewed interest in completing stalled projects is also likely. Steelmakers are focusing on their brownfield expansion plans as the cost of losing market share could be steep. With inflation cooling off, lower rates by the RBI will enhance credit flow by keeping the cost of capital in check and facilitate economic activity.The contours of an enabling environment are taking shape the challenge is to make them into a reality.

Source:- steelguru.com

Wto Members Ask India To Remove Raw Sugar Export Subsidy Immediately

Australia has asked India to remove export subsidies immediately. It said the 3,300 rupees per tonne incentive payment is the equivalent of 14-16% of the world price. Since India is the third largest exporter of sugar this threatens to seriously distort trade. It said that the amount envisaged could potentially finance all its own exports half way across the Pacific Ocean.

Australia, Colombia, Brazil and the EU asked India about a new policy announced in February involving incentive payments to Indian sugar exporters. Members sought to know the legal basis for extending the export subsidy under the WTO regime. Several pointed out that India has agreed not to subsidize exports.

In a reply to this India said, The policy was designed to encourage diversification away from white sugar to raw sugar and that no intervention payments have been paid yet. India said export subsidies will be notified to the WTO.

India's new support programme for sugar sparked comment among a number of delegations with some urging India to remove immediately what they described as export subsidies that will potentially impact world trade, WTO said.

The Agriculture Agreement allowed developing countries to subsidize marketing costs and internal transportation costs during the agreement's implementation period. Brazil asked how India could justify the subsidies since there has been no consensus to extend these special provisions for developing countries.Sharing the concerns were Paraguay, Thailand, El Salvador, Canada, the US, Pakistan and New Zealand.

Source:- business-standard.com

Dhamra Berths Largest Parcel Size Vessel

Dhamra Port has become the first among Indian ports to berth a parcel size vessel of 2,07,785 DWT (dead weight tonnage). The vessel named ‘Macau Mineral’ carrying 1,94,073 tonne of coal from Richards Bay, South Africa is 312 metre long and about 50 metre in breadth.

The vessel berthed at the Dhamra Port jetty on March 26 and is likely to depart after unloading the cargo on March 29. It has 21 Chinese Crew headed by Captain Wang Yongan. Macau Mineral is a Panama registered super cape size vessel. The Harbour Master of Dhamra Port Captain Mirza Baig along with senior officials of Dhamra Port Company Limited (DPCL) were present during berthing of the biggest parcel size vessel.

Dhamra Port had started commercial operations in May 2011 and till date, it has berthed 424 cargo ships including over 100 cape size vessels. With fully mechanised loading and unloading facilities, the port has a channel of 18 km which is 18 metre deep for berthing cape size and super cape size vessels.

Presently, Dhamra Port has two fully mechanised berths of 350 metre each. DPCL has built a 62-km fully electrified railway line from Dhamra to Bhadrak connecting the main Howrah-Chennai line for transportation of cargo.

Source:- newindianexpress.com

SC allowed educational institute with amended objects to re-file application for exemption rejected

IT: Where subsequent to rejection of application for grant of certificate under section 10(23C)(vi), assessee-society amended its objects, assessee should make a fresh application before authorities along with amended objects of society

Commissioner received by auto-dealers on promotion and after sales services was liable to ST under '

Service Tax : Where auto-dealers, under an agreement, agree to undertake sales-promotion, after-sales services and advertisement of goods belonging to principal, Commission received therefor is prima facie liable to service tax under Business Auxiliary Services

China To Cut Price, Offer Better-Quality Cotton To Lower Reserves

China said it is cutting the price of domestic cotton being sold from its state reserves and will offer 200,000 tonnes of higher-quality, imported fibre for bidding weekly, as the world's top cotton consumer steps up moves to cut its massive stockpile.

The moves could pressure cotton imports and prices, hitting top exporters India and the United States, which have already seen shipments drop by 7 and 47 percent, respectively in the first two months of this year.

From April 1, mills can bid as low as 17,250 yuan ($2,800)per tonne for standard-quality cotton in the daily state auction, below the current floor price of 18,000 yuan per tonne fixed in November, the China National Cotton Reserves Corporation said in a statement on Friday

Beijing is unwinding a stockpiling program aimed at supporting farmers as it switches to a subsidy-based program. The reserve is holding more than 10 million tonnes of cotton, equal to about 60 percent of global stocks and sufficient for more than a year of local consumption.

On Monday, New York cotton futures, which are used as a global benchmark, sank more than 2 percent and were on track for their sharpest daily rout in two months after the China Cotton Association, which represents the interests of farmers, unveiled the lowering of the floor price.

The reserves bureau did not say how much local cotton will be offered in its daily sale, although it said mills were free to bid for any volumes.

In a desperate bid to liquidate its stocks, Beijing has since last year given incentives to mills to buy cotton from state reserves with import quotas that gave preferential tariffs.

Mills in the past, however, have shunned the government's auction due to poor quality and much higher prices. The government had sold only 36 percent, or 684,671 tonnes, of the total offered in the auctions as of last week since the latest round of auctions began in November.

Industry sources have estimated that stockpiles of imported fibre, which are preferred by textile mills due to better quality, stood at more than 1 million tonnes.

To prevent mills from rushing to only bid for the imported material, the reserves corporation will require buyers to purchase three tonnes of locally produced cotton stored in the largest growing region of Xinjiang in exchange for each tonne of overseas fibre from the stockpile, according to the statement.

The official announcement did not publish details on government's plan to offer import quotas for access to cheap overseas cotton.

Industry sources told Reuters that Beijing will give one tonne of import quotas to mills which buy 4 tonnes of state reserves from April. ($1 = 6.2130 Yuan) (Reporting by Niu Shuping and Fayen Wong; Editing by Himani Sarkar and Muralikumar Anantharaman).

Source:- reuters.com

Grape Exports Rise In District

The state has exported 35,627.43 metric tonnes of grapes by March 25 in the current grape season, including 32,000 metric tonnes from Nashik district alone; which is 10,600 tonnes more than last year's export of 25,107.57 metric tonnes in the corresponding period.

The grape export from Maharashtra in the current grape season is expected to reach the target of 55,000 metric tonnes achieved last year, including 48,465 metric tonnes which were exported from Nashik district in 2013.

An official from the agriculture department informed, "The state has exported 35,627.43 metric tonnes of the produce till March 25, against 25,107.57 metric tonnes during the corresponding period last year. Out of the total, 32,000 metric tonnes have been exported from the district, against 23,000 metric tonnes during the corresponding period last year."

Of the total of 35,627.43 metric tones exported, 18,720.51 metric tonnes have been exported to the Netherlands, 1,741.80 metric tonnes to the United Kingdom, 3,223.82 metric tonnes to Germany, 1,657.10 metric tonnes to Belgium, 984.72 metric tonnes to Sweden, 839.68 metric tonnes to Denmark, 831.75 metric tonnes to Norway, 468 metric tonnes to Lithuania, 365.46 metric tonnes to Finland, 279.43 metric tonnes to Ireland, 251.55 metric tonnes to Italy, 113.32 metric tonnes to Austria, 72 metric tonnes to Switzerland, 35.42 metric tonnes to Portugal, 29.11 metric tonnes to Estonia and 13.72 metric tonnes to Malta.

Speaking to TOI, president of the Grape Exporters' Association of India (GEAI) Jagannath Khapare said, "In the beginning, the grape season was good and we were expecting 65,000 metric tonnes of export this season.

But unseasonal rains and hailstorms ended up damaging the vineyards to some extent. Nevertheless, the grape export will be the same as it was during the previous year. By April end, we are expecting exports of 55,000 metric tonnes from the state."

From 2004, the Agricultural and Processed Food Products Export Development Authority (APEDA) has made registration of vineyards compulsory for grape growers wanting to export their prodcuce to promote export quality grapes production. In the current season, 19,793 vineyards (13,900 hectares), each admeasuring betwen 0.40 hectares and 1.20 hectares, have been registered for export of grapes in the district. Last year, 15,679 vineyards (13,123 hectares) had been registered with the office of the superintending agriculture office for the purpose.

Source:- timesofindia.indiatimes.com

With Reserve Bank Allowing Imports, Is India Going Back To Its G(Old) Ways?

There’s a slow but perceptible shift in India’s gold business. In February this year, for example, gold jewelry exports from India had risen for the first time this fiscal year, as per figures made available by the Gems and Jewelry Export Promotion Council (GJEPC).

The reason? Better availability of gold.

India’s jewelry exports had been hit by a reduction in the supply of the yellow metal after the country had curtailed imports by imposing restrictions, and on increasing the customs duty to 10 percent from 4 percent, in an effort to rein in its current account deficit that had hit a record high of US $88 billion last year.

FREE Download: The Monthly MMI® Report – covering the Precious markets.

India used to be the No. 1 buyer of gold in the world before the levy of the import tax, shipping in about 70 tons a month. After oil, gold was the nation’s biggest import, adding to the current account deficit, which was groaning under a weak rupee-dollar rate.

In January, jewelry exports had gone down by as much as 50 percent, but in February, there was a visible improvement in this. Bullion analysts and the GJEPC feel this trend would only gain in the next few months, especially because of more banks now being allowed to import gold.

A few days ago, the Reserve Bank of India (RBI) had permitted five domestic private sector banks to import gold.

According to a report in The Economic Times, the move is seen as a precursor to easing restrictions on inward shipments of the metal. The RBI had allowed Axis Bank, Kotak Mahindra, and IndusInd Bank, among others from the private sector, to import gold. This, said industry officials, was a “significant step” towards the easing of tough curbs on the metal.

Lately, as reported by MetalMiner, the smuggling of gold into the country had gone up considerably due to the high demand of the yellow metal despite import restrictions. Under what is now popularly called the 80:20 scheme, introduced in August last year, agencies could import gold on the condition that 20 percent of the shipment would be exported.

Only six banks, almost all public-owned, and three financial institutions were allowed to import gold under the 80:20 scheme.

After it allowed more banks to import recently, RBI Deputy Governor K. C. Chakrabarty was quoted by The Economic Times as saying more players being allowed to get into gold imports would ultimately lower the cost and help the country’s external balances. The move is also expected to bring down premiums for the metal in one of the biggest markets in the world. Premiums had hit a record of US $160 an ounce in December last year.

Chakrabarty’s logic was that if increased competition existed, gold would be imported at an even lower cost, which would then translate into a reduction in India’s current account deficit.

The move to allow more banks to import gold may raise shipments to about 40 tons per month from more than 20 tons in February.

Source:- agmetalminer.com

Agriculture Subsidies: Pakistan Versus India

Pakistan is currently contemplating to grant non-discriminatory nation status (equivalent to MFN status) to India in its bilateral trade. It is hoped that reciprocal gestures by India will lead to the shortening of its SAFTA Sensitive List and give access to Pakistani agricultural and textile products, while simultaneously relaxing its non-tariff barriers that are applied more strictly on imports from Pakistan.

Presently, Pakistan maintains a Negative List with respect to imports from India. This list includes 1,209 tariff lines. Despite this restriction, Indian exports to Pakistan were $2.06 billion compared to only $542 million exported by Pakistan to India in FY13. Therefore, India enjoys a large trade surplus of $1.52 billion with respect to Pakistan.

Major Indian exports to Pakistan include cotton, oil cakes, vegetables, synthetic yarn, fabrics and chemicals. The share of agricultural exports to Pakistan was 55 percent. There have also been years like FY11 when Pakistan imported $337 million worth of sugar from India. On the other hand, Pakistans major exports to India in FY13 included minerals, dates, cement, chemicals and petroleum products. The share of agricultural items to India was only 21 percent.

There has been a dramatic reversal in the pattern of trade between India and Pakistan. At the time of partition, Pakistans exports to India primarily comprised of agricultural products like cotton and wheat. Now, India is the major exporter of Pakistan of agricultural commodities like cotton, vegetables, sugar, animal and poultry feed, etc.

What explains the fundamental change in relative comparative advantage in agriculture between the two countries? The view strongly put forward by the Farmers Associations of Pakistan is that this is primarily due to two factors.

First, India subsidizes its agriculture much more than Pakistan, thereby making it artificially competitive. Second, Pakistan provides little or no protection to its farmers though import tariffs.

Lets examine the validity of these two explanations below.

On the subsidy issue, the latest information, as of FY12, is that India subsidised fertiliser use (all types) to the tune of $15,171 million. Other subsidies went to irrigation ($6,303 million), electricity consumption by farmers ($7,326 million) and to other inputs like seed, tractors, crop insurance, etc ($8,832 million). The total agricultural subsidy bill for India in FY12 is estimated at $37,362 million, equivalent to 2.2 percent of the GDP.

The corresponding estimates for subsidies in Pakistan in FY12 are $356 million on fertiliser (net of the GST on the input). Other subsidies are for irrigation ($193 million), electricity and others ($342 million). The total subsidy aggregates to $897 million, which is 0.4 percent of the GDP. Therefore, controlling for the size of the economy, Indian subsidies to agriculture are over five times as much as of Pakistan. Consequently, yields are somewhat higher by 10 to 27 percent in many crops.

The second explanation is also valid. Pakistans imports of cotton, tomatoes and onions are all importable duty free from any source, including India. This is primarily due to strong trading and industrial lobbies in the country. The cost of production of different crops in India is about 10 to 15 percent lower on average than in Pakistan; mainly due to substantially larger subsidies.

Clearly, if a level playing field is to be provided to Pakistani farmers, then there is a strong case for introduction of a minimum MFN duty on agricultural products of 10 to 15 percent.

In addition, Pakistan must emphasise to India that the trade imbalance has been magnified by the fact that many of its potential exports to India, of agricultural products and textiles especially, are in Indias Sensitive List of SAFTA. Also, both countries must ensure that all non-tariff barriers are not applied in a discriminatory manner towards each other.

Source:- brecorder.com

Moef Puts Spanner In Lion Hunter Jaideep Singh's Efforts To Bring African Lion Trophy Back From South Africa

In the drawing room of a home in Chandigarh's posh Sector 4 a lion poses on a platform. The king of the jungle seems to be slightly bemused at finding himself in a northern Indian city rather than deep in the Kalahari, where he's supposed to belong. No doubt the lion would have been equally surprised when confronted by Jaideep Singh, 44, who felled him with one shot from a 7 mm Van Chester rifle. Right now he's stuffed and mounted and as alive as the elephant's tusk that's displayed close by in Singh's home.

But where this tale gets really wild is in relation to the ways of the Indian bureaucracy and the trouble Singh has taken to get his "fully mounted trophy" home from South Africa. While the kill was made in June 2012, Singh had done all the complicated paperwork necessary to bring the lion back beforehand, including getting the approval of the Directorate General of Foreign Trade.

Then the environment ministry's wildlife division refused him a no-objection certificate.

Why? The May 30, 2013, communication, signed by Shiv Pal Singh, joint director, reads thus: "This ministry has taken a policy decision to discourage import of look-alike hunting trophies which are look-alike India fauna. In this regard, this is to inform that the African lion trophy is a look-alike of Asiatic lion and hence is not allowed for import."

ET has reviewed a copy of this explanation.

Aggrieved, Singh approached the Punjab and Haryana High Court and after five months, the court allowed import of Singh's trophy to India in January, pending the ultimate fate of the case.

After the trophy came to India, the authorities expressed their inability to "maintain" the trophy, Singh said. He then asked the High Court to allow him to maintain the stuffed animal. The High Court allowed this with a caveat. Singh had to deposit a cheque of Rs 10 lakh first, which he did and brought the lion home.

It's arguably the first time in the country that a court will decide such a unique legal proposition. Singh, who has an estate and owns property, had first applied to the DGFT in April 2012, saying he was interested in going after an African lion and some members of the deer family.

Unlike India, hunting is allowed in South Africa to maintain the ecological balance in wildlife habitats. There is also a charge involved, estimated at about $1,000, although ET couldn't verify this independently.

If the client is successful in shooting the lion, the hunting safari company, after treatment of the skin, exports the trophy to the hunter, provided an import permit is issued by the receiving country.

The import was denied after Singh returned to India. That's when he was given the "lookalike" explanation for this by the ministry. Singh approached the high court three months later. Singh said he needed to go to South Africa to fulfill his "pent-up desire" to hunt what he described as "the most beautiful animal of all" because the Indian government had failed to maintain an ecological balance in its jungles, resulting in the country banning the activity.

While this was Singh's maiden attempt at hunting a lion, his success hasn't gone down all that well at home. His daughter Nayantara, 14, is against the killing of animals, said the surprisingly soft-spoken Singh.

In the Kalahari, Singh followed the pugmarks of the nine-year-old wild cat for three days along with a team comprising a professional hunter and Kalahari locals.

Singh said he fell in love with the sport when he was 12. "Shooting is in our genes," he added. While his grandfather hunted elephants, Singh is the first in the family to have shot a lion. He got his trophy from the wildlife authorities about two weeks ago.

"There isn't much maintenance required as it is very fresh. It may require little more maintenance as it gets old," he smiled. "As against other animals, lions are very soft-skinned." Asked about the case, Singh flatly refused to comment. "The matter is sub judice."

Source:- economictimes.indiatimes.com

While granting registration to a trust CIT shall verify genuineness of its objects only and not its

IT : Only genuineness of objects and not activities is to be verified while granting registration to a charitable trust

Copy of an annual report which was claimed to have been lost couldn't be relied upon to prove shareh

CL: Where petitioner-director himself lost impugned Annual report long ago during shifting of company's office, copy of said Annual Return could not be relied upon to prove that petitioners were holding shares as reflected therein

No sec. 195 TDS if payments were made to Indian Cos. after NR subcontracted his work to them

IT/ILT : Where assessee entered into a contract with one 'G', Dubai [a non-resident] for Mass Alkali Flushing work of boiler unit of one 'J' and subsequently said work was sub-contracted by 'G' to two Indian Companies and 'G' also required assessee to make payments directly to them, since assessee never effected any payment to 'G' and under its instruction had given work orders to two Indian companies and made payments directly to them after deducting tax at source, it could not be said that ass

Addition justified as assessee failed to prove source of huge amount deposited in saving bank accoun

IT : Amount in savings bank account being remained unexplained, addition was justified

Case remanded on Cenvat eligibility as capital goods used for dutiable goods were later used for exe

Cenvat Credit : Where imported capital goods had been initially used for exempted goods only and later (after receipt of notice denying said credit), said goods were used for dutiable products as well, issue regarding availability of credit was remanded back to Tribunal

No denial of interest on refund money that remained with revenue even for period assessee took to re

IT: Interest cannot be denied by revenue for time taken by assessee to cure defects in TDS certificates

MCA notifies Rules under Companies Act, 2013

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Ministry of Corporate Affairs notifies various Rules under Companies Act, 2013 on March 27, 2014

Concealment penalty upheld as claim of depreciation on computer was not genuine: HC

IT : Where assessee's claim for depreciation on computers was neither bona fide nor substantiated with evidence on record, imposition of concealment and leased to ALTOS penalty was warranted

AO can't make additions on estimations without rejecting books of account or directing special audit

IT: Where audited books of account were not rejected or matter was not referred to special audit, Assessing Officer was not entitled to compute average interest on advances and to add difference between such average interest and interest actually charged

Where assessee sought for personal hearing, mere reference to written submissions not suffice; matte

CST & VAT : Where assessee has sought for personal hearing, then, mere reference to written submissions, documents and reply furnished by assessee would not suffice; in such cases, grant of personal hearing is mandatory

HC directs revenue to stay recovery as assessee agreed not to press for refund till disposal of appe

IT: Revenue was directed to lift attachment in respect of bank accounts forthwith and not to take any percipitative action with regard to outstanding dues as assessee agreed that it would not press for refund for which it was eligible for assessment years 2012-13 and 2013-14 till disposal of appeal before Commissioner (Appeals)

Genuine sale advances weren't unexplained cash credits merely if cash balance wasn't found on respec

IT : Where Assessing Officer made a lump sum addition in income of assessee on ground that it had accounted sale advances on various dates, but it did not have sufficient cash and Commissioner (Appeals) admitting additional evidence allowed appeal of assessee, Tribunal was justified in remanding matter to Assessing Officer to appreciate entire issue afresh

Parking services provided at airport were liable to ST either under Airport services or renting serv

Service Tax : Parking Services provided at airport or at any other place are not liable to service tax before or after 1-6-2007 under 'Airport Services' and/or 'Renting of Immovable Property Services'

Definition of NPA is neither unfair nor in violation of Articles 14 and 19 of Constitution: Delhi Hi

SARFAESI : Section 2(1)(o) is neither unreasonable nor violative of articles 14 and 19(1)(g) of Constitution

CUP method is more appropriate than TNMM if details of internal and external CUP are available

IT/ILT: Where assessee has both details for internal CUP as well as external CUP, CUP method should have been adopted as most appropriate method for comparing purchase price of raw materials of ferro-alloys acquired by assessee from AE

Yarn Producers Seek Govt Help To Avert Crisis

After several years of good business despite growing energy shortages, Punjab’s yarn producers could be headed for another crisis that may force many to close down factories to avert losses.

A confluence of domestic and regional developments is said to have obliged many spinners to stop purchasing cotton and production until the market stabilises, causing ginners’ unsold stock to pile up.

Major regional developments claimed to have made domestic yarn production ‘unviable’ include slowdown in Chinese demand for Pakistani yarn and 5pc rebate allowed by India on its yarn exports since January.

Domestic factors affecting yarn production in Punjab include rising electricity prices (currently standing at $0.18 per unit), unavailability of cheaper gas for captive power generation and strong revaluation of the rupee.

“Yarn market has fallen like ninepins in the recent weeks,” a yarn merchant at Faisalabad’s Sooter Mandi told Dawn. He said Punjab’s spinning had flourished in last few years despite energy crunch on the back of a strong Chinese demand.

“But now the Chinese demand is tapering off. On top of that India with surplus cotton of 10m bales has entered the market with a big bang. India’s yarn isn’t only replacing Pakistan in China but also flooding our market because of 10-20pc price differential in various categories,” the merchant, who spoke on condition of anonymity, claimed.

“Power loom owners prefer Indian yarn despite its poor quality because of its low price,” he argued.

“I don’t have the exact numbers because India is sending yarn mostly from the sea route. But some in the market say at least 1m bales would have made their way into Pakistan’s market by the end of the present fiscal,” he reluctantly said.

A Lahore-based spinner contended that yarn imports from India could rise to 1.5-2m bales this year. “India has given rebate to damage our textile industry, which was feeling buoyed after getting GSP+ status from the EU.”

“We could have somehow survived competition from India but the recent rupee appreciation against the dollar and increasing electricity prices have broken our back,” said the spinner, who said at least 100 spinning factories in Punjab faced closure once their current cotton stocks are exhausted over the next few days.

He said the spinners wouldn’t survive Indian competition unless the government allowed them rebate to offset the effect of the currency appreciation, imposed 5pc duty on yarn imports, brought down electricity prices and provided gas for captive power five days a week.

The ginners approached the commerce minister last week to request him to force spinners to lift their stocks. “Since it’s not possible to force the spinners, the minister has promised to look into the possibility of pulling in the TCP to procure their unsold stocks,” an apparel exporter, who claimed he was present in the meeting between the ginners and the minister, said.The value-added textile exporters are opposing restrictions on Indian yarn.

Source:- dawn.com

Indirect Tax Collection Up 5.6 Pc At Rs 4.41 Lakh Crore In Apr-Feb

Indirect tax collections grew by 5.6 per cent to Rs 4,41,826 crore in the April-February period of this financial year amid a slowing economy.

Total collection of indirect taxes - excise, customs and service tax - in February rose by 5 per cent to Rs 43,794 crore, against Rs 41,714 crore in the same month last financial year, official sources said.

Service tax collection grew 15.4 per cent to Rs 12,181 crore in the last month, against Rs 10,556 crore in the year-ago period.

Customs mop-up stood at Rs 15,109 crore, while Central Excise collection was at Rs 16,504 crore in the month.

Total collection of indirect taxes stood at Rs 4,18,286 crore during April-February 2012-13.

Excise collection dropped by 3.8 per cent to Rs 1,49,711 crore during April-February FY14, against Rs 1,55,570 crore in the same period last financial year, reflecting a slump in manufacturing activity, the sources said.

Service tax collection, which has become a new focus area for revenue department, grew by 18.2 per cent to Rs 1,34,171 crore in April-February FY14, against Rs 1,13,505 crore in the same period last financial year.Customs duty contributed Rs 1,49,211 crore during the period, sources said.The Government has set a revised indirect tax collection target of Rs 5.19 lakh crore for 2013-14.

Source:- businesstoday.intoday.in

HC denied sec. 12A registration to 'Guru Harkishan Medical Trust' as it was created contrary to law

IT : If the creation of a trust is illegal and contrary to law , no registration can be granted to it under section 12A especially when a civil court has held that establishment of trust is illegal and contrary to law. There is mandate to question or re-appreciate the civil court's decision in income-tax appeals filed before HC under section 260A of the Act. The HC while dealing with IT appeals under section 260A shall regard civil court decision as final subject to any further appellate interfe

High Court permits re-export as importer abandoned goods due to increase in duty; matter remanded

Excise & Customs : Where importer had abandoned goods owing to increase/levy of anti-dumping duty and there was no allegation of misdeclaration/undervaluation, goods were allowed to be re-exported back to foreign exporter

Payment to villagers not having any bank account during holidays shielded from sec. 40A(3) disallowa

IT: Where persons to whom cash payments exceeding rupees 20,000 were made were villagers and they did not have bank accounts and payment had to be made to them immediately to secure lands on holidays and Sundays, said payments could not be disallowed under section 40A(3)

Sugar Production In India Seen Jumping As Subsidy Boosts Exports

Sugar output in India, the world’s largest producer after Brazil, is set to climb for the first time in three years as a subsidy for raw exports and abundant dam water spur farmers to increase planting.

“Production may gain 5% to 25 million tonnes in the harvesting season starting 1 October,” said M.G. Joshi, managing director of the National Federation of Cooperative Sugar Factories Ltd, which account for 48% of the national output. The area under the crop will increase in Uttar Pradesh and Maharashtra, the biggest growers, he said.

Prospects for higher Indian output may halt a rally in raw-sugar futures in New York and extend a global glut into a fifth year. A bigger Indian harvest will boost exports of subsidized raw sweetener, bridging any potential decline in supplies from Brazil due to dry weather.

“Farmers are opting for cane even if they are getting lower prices this year as there is assured demand and return for the crop,” said Sanjeev Babar, managing director of Maharashtra State Cooperative Sugar Factories Federation, which represents 173 mills. Reservoirs are full and good rainfall last year has improved moisture in soil.

India announced a cash subsidy for exports of as much as 4 million tonnes over two years and interest-free loans to mills to allow them pay arrears to farmers. Producers including Bajaj Hindusthan Ltd and Shree Renuka Sugars Ltd are betting on exports to prevent stockpiles expanding from a five-year high.

Competitive crop

“Farmers will stick with cane as no other crop is as competitive,” according to Avdhesh Mishra, president of the Cane Committees’ Association, a grouping of farmers. “Even if payments are delayed, farmers know that mills will clear the dues,” he said by phone from Gorakhpur in Uttar Pradesh on Wednesday.

Cane production in Maharashtra will probably jump 26% to 85 million tonnes in 2014-2015, Babar said. Sugar output may climb 17% to 9 million tonnes if the monsoon is normal, he said. Farmers planted the crop on 565,000 hectares as of 19 March, compared with 482,000 hectares a year earlier, agriculture ministry data showed. The area in Uttar Pradesh was little changed at 1.22 million hectares, the data show.

“There is a turnaround in domestic sentiments after the government decided to subsidize exports of raw sugar and a downward revision in output this year,” said Sudha Acharya, a senior analyst with Kotak Commodity Services Ltd in Mumbai. “The increased demand for summer also pushed up prices. Besides, the global rally in prices due to weather woes in Brazil helped Indian sentiments.”

Futures in New York rallied 14% in February, the biggest monthly advance since June 2011. The contract for May delivery rose 2.3% to 17.36 cents on ICE Futures US on Wednesday. Futures in Mumbai climbed to Rs.3,077 per 100kg on Wednesday, the highest since August.Monsoon rainfall was the highest since 2007 last year, boosting water levels in the nation’s reservoirs, the India Meteorological Department estimates. Water levels are 24 percent above last year, according to water resources ministry data.

Source:- livemint.com

India’S Spice Exports Surge 41% During April-Dec 2013

Riding on the excellent export performance of mint, chilli and seed spices, India’s spice exports has registered a 41 per cent growth in terms of rupee value during April-December 2013.

The period witnessed a total export of 57,1680 tonnes of spices and spice products valued ?9,433 crore as against 44,9926 tonnes valued at ?6,696 crore during April-December 2012. An increase of 27 per cent has been registered, both in terms of volume and dollar value.

The steady growth of spice exports reiterates the unshaken global demand for Indian spices. The conspicuous export performance of mint, chilli, value-added products and seed spices points to a promising future for the Indian spice industry, A Jayathilak, Chairman, Spices Board India told reporters here.

He further added that spice is the only one sector which is recession proof as the eating habits of people globally has not changed during the slowdown period. Central and South America and Africa have emerged as the fastest growing markets for spices as the traditional markets in US and Europe are saturated, he said.

Jayathilak pointed out that 92 per cent of the target in terms of volume and 91 per cent in terms of value set for spice exports during FY 2013-14 has been achieved.

The seed spice basket had registered 78 per cent increase in volume and 89 per cent in value compared with April-December 2012. The total volume of 1,93,625 tonnes seed spices valued at ?1,906 crore has been exported against 1,09,067 tonnes valued at ?1,008 crore in the previous year.

Amongst the seed spices, cumin registered a prominent increase of 89 per cent in volume and 83 per cent in value with a total export volume of 96,500 tonnes valued at ?1,282 crore.

Mint and mint products, which includes mint oils, menthol and menthol crystals, topped the item-wise list, in terms of value, with an export turnover of ?2,202 crore and 17,850 tonnes in volume. Chilli netted a foreign exchange worth ?1,846 crore with a total export volume of 2,05,500 tonnes.

Value-added products such as spice oils and oleoresins fetched ?1,242 crore by exporting 8,665 tonnes. Pepper and cardamom (small) marked an increase of 41 per cent and 23 per cent respectively in value, with a corresponding export volume of 15,350 tonnes and 2,080 tonnes. The exports of pepper and cardamom (small) were valued at ?651 crore and ?164 crore respectively.

Source:- thehindubusinessline.com

Major American Port Eyes Expanding Indian Businesses

A major American port has entered into an agreement with an Indian shipping company to gain more business both in steel imports and capital investment.

Located in the US state of Louisiana, the New Orleans port has reached an agreement with India's Samsara Shipping to represent the Port in India.

"The Port of New Orleans is well positioned for growth in imported steel products, as it offers excellent connectivity via barge, rail and truck to major oil and gas projects in the United States and Canada," port president and CEO Gary LaGrange said.

"With India's fast-paced economic growth, we see opportunities to grow two-way trade between the Port and India through a variety of commodities," he added.

The New Orleans port is the 6th largest port in the US based on volume of cargo handled and 13th largest in terms of value of cargo.

He said while the marketing focus will be on steel for oil and gas projects, the port will also target apparel, furniture, machinery and retail merchandise.

"We welcome the Port of New Orleans to India and Samsara shall provide the right platform to explore the possibilities of growth for the Port in the land of opportunities," Group president and CEO of Samsara Group India Mukesh Oza said.

In its media note, the port of new Orleans said India is a significant player in the global steel market and is responsible for meeting the demand of many US customers.

In addition, India imports many products from Louisiana, including forest products, synthetic rubber and various chemical commodities, it said.

Under the deal, Samsara Shipping, which has 54 offices in 44 locations across India and keeps track of which companies are looking to expand, which ones are already exporting to the US and businesses that need to import products from outside India, will submit monthly reports to the Port of New Orleans for a one-year, USD 3,000-a-month contract.

"We wanted better coverage and more information about the Indian market," chief commercial officer at the port Robert Landry said.

Source:- business-standard.com

Ruchi Soya Expects India's Sunflower Oil Imports To Hit Record High

India's sunflower oil imports are likely to jump 54 percent to a record high in the year to October 2014 as the world's biggest edible oil importer trims palm oil purchases to make room for the soft oil, said Dinesh Shahra, managing director of Ruchi Soya Industries Ltd .

The rise in sunflower oil imports would provide support to prices that are under pressure due to a record crop in top producer Ukraine, but will cap palm oil prices that have risen in the last two months on a likely drop in production in top two producing countries.

"We are expecting palm oil imports would drop significantly to around 7.4 million tonnes from 8.17 million tonnes last year due to price spreads in favour of soft oils," Managing Director of the country's biggest edible oil buyer said.

India is likely to buy 1.45 million tonnes sunflower oil in 2013/14, higher than the previous record purchase of 1.1 million tonnes in 2011/12, Shahra said. India imports most of its sunflower oil from Ukraine and palm oil from Indonesia and Malaysia.

The country's total edible oil imports are set to rise by 4 percent in 2013/14 to 10.8 million tonnes due to higher imports of soft oils like sunflower and soyoil, he said.

The price gap between crude palm oil and crude sunflower oil narrowed to $47 per tonne in February, compared with $430 per tonne during the same period last year, according data compiled by Solvent Extractors Association.

Source:- reuters.com

Gold Shipments Into India Seen Rebounding By Billionaire Jeweller

Gold imports by India, the second- biggest consumer, will rebound in the second half as a new government may ease trade curbs while festivals and weddings spur demand, said billionaire jeweller T.S. Kalyanaraman.

“The pickup in shipments from mid-year will help overseas purchases over 2014 match the 825 tonnes imported in 2013,” Kalyanaraman, chairman of the Thrissur-India based Kalyan Jewellers Ltd, said in an interview. “The curbs on bullion will probably be removed as smaller jewellers are struggling to get raw material, spurring increased smuggling,” he said on Wednesday.

Prime Minister Manmohan Singh raised the import tax on bullion three times last year and tightened financing norms to rein in a record current-account deficit and reverse a slump in the rupee. The controls cut shipments, narrowing the deficit to the smallest in at least four years in the fourth quarter as the currency rebounded. The opposition Bharatiya Janata Party (BJP) is leading in opinion polls before voting that starts 7 April.

“Imports will be slow till June, and then the trend will be the opposite and we will land with the same figures as the previous year,” said Ramesh Kalyanaraman, executive director and the chairman’s son. “Sudden antibiotics are necessary when somebody is ill. But it should be a temporary thing, and we believe that the government will take off the curbs soon.”

A rebound in Indian demand may help sustain bullion’s gains this year amid forecasts by Goldman Sachs Group Inc. and Societe General SA that the metal may drop below $1,000 an ounce. Gold for immediate delivery traded at $1,304.73 an ounce at 5:03 am in Mumbai, set for a second weekly loss on expectations US stimulus will be cut. The loss pared this year’s rise, spurred by haven demand on tension in Ukraine, to 8.2%.

Record premiums

India was surpassed by China as the largest consumer last year as imports slumped 57% to 205 tonnes in the six months to December from a year earlier, according to the World Gold Council. Sales fell at retailers including Gitanjali Gems Ltd and Titan Co. Ltd in the quarter ended December as premiums paid by jewellers rose to a record $160 an ounce over the London cash price because of a shortage of metal in the local market.

India, which imports almost all of the gold it consumes, accounted for 25% of global demand in 2013, the London- based WGC estimates. Official imports fell 4% to 825 tons in 2013, while unofficial flows almost doubled to 200 tons, WGC data show. China consumed a record 1,065.8 tonnes last year.

“If you add the smuggled gold, demand in India will be 40 to 50% more than in China,” Kalyanaraman said. “Demand is very much there as a lot of small, organized players are selling without bills and not showing in official figures.’

Rupee’s rally

The Reserve Bank of India estimates bullion contributed to almost 80% of a record $87.8 billion deficit in the year ended 31 March. The shortfall this year will be contained below $40 billion, finance minister P. Chidambaram said on 7 March, less than the $70 billion target. That helped to spur a rally in the rupee to an eight-month high.

“The current-account deficit is under control and that might provide some kind of comfort for the new government to look at reviewing gold restrictions,” said Harish Galipelli, head of commodities and currencies at JRG Wealth Management Pvt in Hyderabad. Pressure from the industry is increasing and also the imports from other channels are rising.

Source:- livemint.com

Rupee Down 8 Paise Against Dollar In Morning Trade

The rupee dropped 8 paise to 60.22 per dollar in morning trade on Thursday due to month-end demand for the US currency from importers, triggered by its firm value overseas.

However, sustained foreign capital inflows into equity market restricted the rupee’s fall, forex dealers said.

The rupee resumed lower at 60.21 per dollar as against Wednesday’s closing level of 60.14 at the Interbank Foreign Exchange (Forex) Market.

It hovered in a range of 60.27—60.17 per dollar before quoting at 60.22 at 1000 hours.

The month-end dollar demand from importers, mainly oil refiners, affected the value of rupee against the American currency, dealers said.

In the global markets, the euro was under pressure against the US dollar on Wednesday, dragged lower as European monetary policy officials indicated willingness towards supporting more stimulus measures to aid the regional economy.

Meanwhile, the benchmark BSE Sensex rose by 83.92 points, or 0.38 per cent, to 22,179.22 at 1000 hours, after hitting an all-time high of 22,188.63 in early trade.

Source:- thehindu.com

Receipts of foreign co. from software sales and support services provided in India couldn’t be taxed

IT/ILT: In view of decision of Jurisdictional High Court in case of DIT v. Infrasoft Ltd. [2014] 220 Taxman 273/[2013] 39 taxmann.com 88 (Delhi), addition made for sale of software and provisions of maintenance/other support services to customers in India being not taxable was to be deleted

Mere observations not supported by any fact couldn't be a ground to revoke registration of trust

Registration granted under section 12A cannot be cancelled on basis of general observation not substantiated by any fact

No abuse of dominance by DMRC if it restricts parties held guilty of contravening competition law fr

Competition Law : Restraint prescribed by opposite party in tender document as regards participation of parties guilty of contravening provisions of Competition Act, would not be discriminatory or unfair

HC remanded matter as Tribunal rejected assessee's claim for deduction without examining relevant do

IT: Where Tribunal without looking into documents rejected claim under sections 10B and 80HHC, it was proper to remit matter to assessing authority to decide afresh

No interest is chargeable on additional tax payable due to retrospective levy

CST & VAT : Where liability to pay tax arises by virtue of a retrospective levy/charge of tax, interest cannot be made chargeable in case of such retrospective levy of tax

Exemption from wealth tax denied as house wasn't occupied by assessee himself for the purpose of bus

IT : To claim exemption under items (2) and (5) of section 2 (ea)(i) it must be established that house is occupied by assessee himself for purpose of any business or profession carried on by him and property itself is in nature of commercial establishment or complex and used in a business or trade carried thereon

RBI further extends validity of ECB scheme for Civil Aviation Sector till March 31, 2015

FEMA/ILT : External Commercial Borrowings (ECB) for Civil Aviation Sector

Sum paid to NR assisting in production of TV shows wasn't FTS as it didn't make available technical

IT/ILT : Payment to a non-resident for production of programmes for purpose of broadcasting and telecasting shall not be treated as 'Fees for technical service' in terms of article 12.4 of India Singapore Tax Treaty

CCI : No abuse of dominate position by a manufacture of Scotch as other parties also available in ma

Competition Law : Presence of various competing brands of Scotch and imported whiskey in relevant market for whiskey in India, rules out dominance of OP, a producer of scotch whiskey, in relevant market

Trust can't be deprived of registration on mere reasoning that it undertook services of a commercial

IT : Where assessee was engaged in educational activities, merely because it engaged Z, a commercial venture for setting up of school or to provide educational programs to school of assessee, it would not make assessee disentitled for registration

CBDT notifies revised guidelines for approval of agricultural extension project under sec. 35CCC

IT : Income-Tax (Third Amendment) Rules, 2014 - Amendment in Rule 6AAE and Substitution of Rule 6AAD

Steamer agent providing services to foreign principal amounted to export of services

Service Tax : Where a steamer agent provides services to foreign principal and gets consideration in convertible foreign exchange, such service amount to 'export of services' and cannot be charged to service tax.

Agricultural land won't lose its privileges even if sold in violation of State laws; not taxable as

IT : Merely because agricultural land was sold in favour of non-agriculturist in breach of law prevailing in State, said land would not lose its character as agricultural land and, hence, could not be treated as capital assets

Writ filed against TRO dismissed as its was passed after giving an opportunity of being heard to ass

IT: Where representation had been submitted by petitioner before TRO Prior to notice of attachment, petition filed against order of TRO was premature

Tribunal couldn’t make adverse observations on merits of case while dealing with stay application

Service Tax : Tribunal may, in exceptional cases, assess prima facie case treating same to be a hardship for maintaining appeal by dispensation of pre-deposit; however, Tribunal cannot observe adversely on merits of case

Assessee once admitted can't re-agitate disallowance of interest on funds diverted to sister concern

IT : Where assessee itself admitted that payment of interest to extent of loan utilised by sister concern had to be disallowed, it could not subsequently re-agitate said issue by contending that once funds were used by sister concern for its business purpose, there could not be any disallowance

Credit for TDS not claimed in original return but claimed in revised return filed within stipulated

IT : Where assessee had submitted revised return within prescribed period of limitation as provided under section 139(5) claiming credit/refund of TDS, which was not made in original return, assessee was entitled to credit of TDS

Order of CCE(A) is binding on Depart. even if revision proceedings are pending against it

Excise & Customs : Mere fact that order of appellate authority is not acceptable to department and is subject matter of an appeal/revision, cannot be a ground for not following it unless its operation is suspended by competent court

Sale deed to be executed in favour of applicant only when he pays sum due to liquidating Co., HC say

CL : Where certain dues were pending towards company-in-liquidation under lease-cum-sale deed of a property which was auctioned in favour of applicant, sale deed would be executed in favour of applicant only on payment of those dues

Cos with either huge turnover or extraordinary events couldn’t be taken as comparable for TP study

IT/ILT: Companies which are functionally different, have a very high turnover, have incomparable size, have exceptional circumstances and events like merger/demerger, which impact financial statements, cannot be selected as comparables

SC denies interest on interest on refund; directs HC to consider its earlier judgment in case of Guj

IT : Where High Court relying upon decision in case of Sandvik Asia Ltd. v. CIT [2006] 150 Taxman 591 (SC), directed revenue to pay interest on amount refunded as provided for under section 244(1A), order so passed was to be set aside and, matter was to be remanded back for disposal afresh keeping in view observations made in case of CIT v. Gujarat Fluoro Chemicals [2014] 42 taxmann.com 1 (SC)

SEBI releases standardized format of Auditor's Certificate under clause 24(i) of Equity Listing Agre

SEBI : Format for Auditors’ Certificate Required Under Clause 24(I) of The Equity Listing Agreement

Transporter Held For Evading Service Tax

The customs, central excise and service tax department on Tuesday arrested proprietor of a transport firm in the city for not paying Rs 2.35 crore service tax in the six months.

William Colaco, superintendent of central excise, preventive section (Surat-I) arrested Mahesh Ahir, proprietor of Khodiyar Earth Movers Ltd and Ambe Transport for the offence punishable under section 89(1)(a) and (d) of the Finance Act, 1994. Ahir has been sent in to judicial custody of the department. Official sources said that this is the fourth arrest by the service tax department in the last one month. Earlier, four persons running transport and labour contract firms in Hazira were arrested for evading huge amount of service tax.

Source:- timesofindia.indiatimes.com