Tribunal doesn't have power to extend period of limitation prescribed by law for entertaining appeal

Service Tax : Appellate Tribunal does not have power or authority to extend period of limitation prescribed by statute, for entertaining appeal before Commissioner (Appeals)

Case remanded for de novo assessment as rental value of property wasn't determined as per direction

IT: Where while making de novo assessment, Assessing Officer relied upon decision of co-ordinate bench of Tribunal but failed to take into consideration directions given by Commissioner for making necessary enquiries for determining fair rental value of property, matter was to be restored to file of Assessing Officer for de novo assessment in accordance with law

Prior to 1-4-2008, transport service for clearance of goods from place of removal was eligible 'inpu

Cenvat Credit : Prior to 1-4-2008, transport service for clearance of goods from place of removal is eligible for Cenvat credit as 'input service'

Pact between customer and seller wasn't anti-competitive as party wasn't working at horizontal level

Competition Law: Where OP had competitive constraints due to presence of other developers in relevant market of provision of services for development and sale/purchase of residential apartments in Tamil Nadu, OP could not be said to be dominant in relevant market

Sales commission paid to NR agent for services rendered outside India wasn't taxable in India; no wi

IT/ILT : Where assessee-company made payment of sales commission to a foreign party by direct remittance for services rendered outside India, amount in question not being chargeable to tax in India, assessee was not required to deduct tax at source while making said payments

Penalty couldn't be imposed on stock transfer merely because it was not followed by a duly filled up

CST & VAT : Where Assistant Commercial Tax Officer intercepted a vehicle on 15-10-1996, wherein goods of assessee were being transferred as stock transfer, and having found that declaration Form No. ST-18A accompanied with goods was lying blank imposed penalty under section 78(5) of Rajasthan Sales tax Act, 1994 upon assessee, imposition of penalty was not justified

No reassessment as profit was treated as capital gain after detailed inquiry during original assessm

IT : Where transactions were treated in nature of capital gain after making detailed inquiry in scrutiny, no reassessment would be sustainable

Interest was payable on differential duty even if it duty was paid before finalization of provisiona

Excise & Customs : In case of provisional assessment, where there is delay in payment of duty (part or full) for whatsoever reason, interest is required to be paid from first day of month succeeding month for which such duty is determined to date of payment of duty even if assessee has paid duty before finalisation of assessment

Selection of wrong code in I-T return won't turn a Public Co. into Private Co. to recover unpaid tax

IT: Where assessee-company was registered as a public limited company and also it came out with public issue, then merely because wrong code number applicable to private company was selected in return, section 179 could not be applied making its director liable for arrear of tax

Telecom operators are eligible to avail of credit of ST paid on inter usage connection services

Cenvat Credit : A telecom operator providing telecom services is, prima facie, eligible to take credit of Inter Usage Connection (IUC) charges paid against bills raised by other telecom operators

HC upheld imprisonment sentence against appellant-Director for violating Collective investment schem

CL : HC convicted appellant-company and its Managing Director for contravening sub-section (1B) of section 12 of SEBI Act as it collected money from the investors under its CIS schemes without registration with SEBI and it also committed contravention of the provisions of section 24 of the Act by not complying with the Regulations framed by SEBI and the directions issued by the Chairman.

Question of retrospective effect of notification which is co-related with rate of duty isn't appeala

Excise & Customs : Question whether exemption Notification can be given retrospective effect is a question having direct co-relation with rate of duty for purpose of assessment and appeal involving such matters is not maintainable before High Court.

HC quashed reassessment notice as info provided by banks about fake accounts didn't pertain to relev

IT : Where information about fake bank accounts created by certain companies for channelising fund was not related to relevant year, notice for reassessment was to be quashed

Scope of term 'Total Income' under sec. 5 can't be used for determining additional tax for settlemen

IT : For computing additional tax for settlement application, definition of 'total income' under section 5 not applicable in view of the deeming fiction contained in Clause (ii) of sub-section (1B) of section 245C whereby total income has to be considered as if the aggregate of the total income returned and the income disclosed would be the total income. Such deeming fiction must be allowed its full effect

Payment to seconded employees is FTS; Foreign co. is real employer if Indian co. can cancel secondme

IT/ILT: Overseas entity was the real employer of seconded employees when Indian entity had only the right to terminate the secondment without conferring the right to terminate the original employment. Reimbursement of salary of seconded employees to the overseas entities could not be characterized as stewardship and was to be regarded as FTS when they rendered quality control services till the necessary skills were acquired by the resident employee group

Excise duty of prior years was to be allowed in year of adjudication even if books were maintained o

IT : Where assessee's liability to pay excise duty relating to earlier years was adjudicated during relevant assessment year, assessee could claim deduction of amount so paid in assessment year in question even though books of account were maintained on mercantile system of accounting

Penalty couldn't be imposed on stock transfer because it was not followed by a duly filled up Form S

CST & VAT : Where Assistant Commercial Tax Officer intercepted a vehicle on 15-10-1996, wherein goods of assessee were being transferred as stock transfer, and having found that declaration Form No. ST-18A accompanied with goods was lying blank imposed penalty under section 78(5) of Rajasthan Sales tax Act, 1994 upon assessee, imposition of penalty was not justified

Income arising to FIIs from derivative transactions would be capital gains and not business income

IT : Following order passed by Tribunal in assessee's own case relating to earlier assessment year, income arising from transactions of derivatives to assessee, a FII, could not be treated as business profit rather same had to be assessed under head 'capital gain'

HC of State where first court was situated is correct authority for appeal; situs of Tribunal won't

Excise & Customs : High Court situated in State where first court is located should be considered to be appropriate appellate authority and situs of Tribunal is not determinative factor for said purpose

Does withholding of tax guarantees deduction HC deleted disallowance of exp. as tax was deducted the

IT: Where TDS was deducted on payments made to sub-contractors and other details were also furnished expenditure was to be allowed

HC condoned delay in filing appeal as reasons for delay were explained by revenue and it involved hu

CST & VAT: Where revenue filed appeal before High Court late by 924 day and sought condonation of delay, since not only delay was explained by revenue but monetary impact in terms of tax involved was also considerable, delay deserved to be condoned

Dishonour of post-dated cheque proves fatal; HC admits winding-up petition on ground of failure to p

Banking Laws : Where respondent company issued post dated cheques to discharge its outstanding dues to petitioner-company and same were dishonoured, objections taken on behalf of respondent company were without merit and hence winding up petition was to be admitted

ALP can't be computed on consolidated basis under TNM Method by merging diverse international transa

IT/ILT: While applying TNMM, assessee cannot combine various international transactions for determining ALP on a consolidated basis

Russia's New Crop Wheat Price Seen Down

Russia's wheat export prices are expected to fall by 7 percent from current levels when the new crop starts to arrive on the market in large volumes in July, the Institute for Agricultural Market Studies (IKAR) said in a note on Monday.



Russia, expected to be the world's fifth-largest wheat exporter this season, is shipping modest volumes now after massive supplies in previous months have cut into its stocks. The country shipped more than 16.5 million tonnes of wheat between the start of the 2013/14 season on July 1 and April 20, IKAR said. By the end of the season, Russia will export an additional 1 million tonnes, it added.



Future prices for the new wheat crop with 12.5 percent protein content are quoted by market participants at $270 per tonne on a free-on-board (FOB) basis in the Black Sea now, IKAR said. That is its first estimate for the price of the new crop. Southern Federal District, the country's main wheat-exporting region, usually starts the harvesting campaign in June.



For the old crop, the tension between Russia and Ukraine, which are adding to concerns over supplies from the Black Sea, continued to lend support to prices last week. Prices for old crop wheat with 12.5 percent protein content rose $2 to $291 per tonne last week on the FOB basis in the Black Sea, IKAR said. Russia's spring grains sowing campaign has continued to proceed faster than last year thanks to the dry weather, and farmers expect to sow a larger area for sunflower and maize (corn) this year, agriculture analytical firm SovEcon said.



Farmers had sown 5.3 million hectares as of April 25, or 16.5 percent of the whole planned area for spring grains, which was 1.2 million hectares more than on the same day a year ago, according to data from the Agriculture Ministry. Spring wheat was sown on 498,400 hectares (3.8 percent of the whole planned area), barley - 2.9 million hectares (33.6 percent), maize - 801,000 hectares (30.9 percent) and sunflower - 1.2 million hectares (17.4 percent).



Market participants expect the first new crop grain - winter barley - to arrive on the market in mid-June, earlier than usual and thanks to an early spring, SovEcon said. It estimated that Russian sunflower seed prices declined by 100 roubles to 13,125 roubles ($360) a tonne at the end of last week. IKAR pegged its sunseed price index at $379 per tonne, up $4. Export prices for sunflower oil were flat, at $870-880 a tonne on the FOB basis in the Black Sea, according to SovEcon. The white sugar price index in Russia's South was flat at 27,950 roubles ($780) per tonne last week, IKAR added.

Source:- brecorder.com

Indian Steel Prices In For Windfall Gain On Input Shortage

The splendid run in long and flat steel might be escalating in the coming days. Going by the direction and mood of Supreme Court in recently it seems iron ore production will be curtailed severely after scrapping of all deemed lease after 2007.

Judgment on Goa mining heralding peril today’s observation on Orissa mining inched closer to disaster. SC firmly indicated at Goa-style ban on all mining in Odisha for three months till the state government sorted out all mining illegalities and granted fresh leases.

Suspense remained with the court reserving its order. Of the 56 operating leases in Odisha, 26 fall under second and subsequent renewal. This include six of Tata Steel's iron and manganese leases and three of SAIL's, leases held by Roongta's mines. Aditya Birla group's Essel Mining, a mine owned by KJS Ahluwalia and two mines owned by state-owned PSU Orissa Mining Corporation.

In Goa the permission to mine 20 million tonne will be ineffectual as except for Vedanta-Sterlite most of the other miners will suffer the axe.

If this were to come out true Indian steel mills will be starved of iron ore and sponge iron leading to production shortage as the capacity utilization will decline. Odisha caters to nearly 50% of iron ore production in the country.

The secondary sector contributes nearly 30% of crude steel production but more than 60% of long steel production. This sector is dependent on imported scrap (4.5 million tonnes) and sponge iron about 23-24 million tonne. Moreover the primary sector steel production is solely dependent on iron ore.

Indian steel price have gained 4% since January. Trend remains up as the cost of production has led to hiked conversion cost by INR 1000-1500 per tonne from scrap/sponge iron to ingot and TMT.

Imported Scrap offers from European suppliers have gone upto USD 8-10 per tonne on anticipation of GRI (General Rate Increase) on freight of container transportation from Europe to Asian countries to be implemented in the month of May ’14. Moreover with domestic consumption of scrap going up in European and US market its availability is likely to be restricted in the coming months .Current offers are hovering at USD 385-390/MT CFR Mumbai against USD 380-385/MT CFR last week for HMS 1&2 and USD 405-408/MT CFR Mumbai for Shredded Scrap.

Flat steel price levels despite looming threat from cheap Chinese imports has maintained parity gap of around INR 3000 per tonne and is unlikely to decline in the coming days if shortage becomes reality. Moreover with summer demand from white good sector picking up price will be ascendant.

In all steel market in India is held on tenterhooks by the Supreme Court rather than by market fundamentals of demand and supply. Heady days are ahead for the steel price levels. Moreover with stable government being formed the prospects of economic and monetary reforms becoming brighter demand from construction, auto, white good sector will pick up giving much desired traction.

Source:- steelguru.com

Rental income from business of letting out of commercial property would be treated as business recei

IT: Where assessee carried on business of letting out commercial property rental income therefrom, would be assessable as business income

Existence of prima-facie case isn't enough to waive off pre-deposit in absence of financial hardship

Excise & Customs : Prima facie case is not sole criteria for deciding pre-deposit, but financial hardship has also to be considered side by side and it is wrong to say that financial difficulty is a subordinate criteria

Dream Knitwear Technology Mission Project To Become Reality Next Week

The long awaited Knitwear Technology Mission in nearby Tirupur to promote product and fabric diversification and value addition across the apparel value chain, would become a reality from May six.

The Rs 13 crore Mission Center, under the aegis of Apparel Export Promotion Council, would offer necessary services to trade and industry to develop innovative apparel categories for sports wear, swimwear and varieties of performance wear mainly from man-made fibres like polyester and nylon, A Shaktivel, Chairman, KTM, told reporters last night at Trirupur.

With majority of the countries now going for high fashion wear from man made fibre yarn, as against almost 95 per cent cotton yarn in India, KTM has imported latest version of Tricot Warp knitting machine from Germany, which can be utilised by Indian apparel exporting community for their sampling needs, he said.

As there was huge market for sports wear and swim wear, crossing 75 to 80 billion dollars, Indian exporters can tap these markets, Shaktivel said.

Stating that the Council has recently discussed with the textile ministry the issue of expanding the Centre and also more funds, he said Zohra Chatterji, Secretary, Union textile ministry, will inaugurate the Centre.

KTM Centre would also impart consultancy and training in the fields of knitting, processing, garmenting, CAD/fashion designing, new product development, testing and consultancy for yarn and fabrics, he said, adding, it has a facility to train at least 5,000 personnel every year.

Source:- economictimes.indiatimes.com

Erratic Weather To Trim India's 2014 Tea Output, Exports

Tea output in India's top-producing Assam state is likely to fall by 10 percent in 2014 due to scanty rainfall and a sharp rise in temperatures, hitting exports of premium grade leaf from the world's biggest black tea producer, industry officials said.

A drop in India's production and exports could push up global prices and boost shipments from competing countries like Kenya, Sri Lanka and Vietnam.

India's north-eastern Assam state produced 618 million kg tea in 2013, more-than half of the country's total production of 1,200 million kg.

"We have lost production since the start of the year due to extreme dry weather. There could be a 10 percent drop in production this year," Rajib Barooah, chairman of Assam Tea Planters' Association, told Reuters.

"Higher temperatures are hitting the growth of tea bushes. There is a concern of pest infestation due to erratic weather."

In Assam and West Bengal, the country's second-biggest tea producer, temperatures were hovering 2 to 5 degrees Celsius above normal, the weather department said on Tuesday.

"Tea plantations badly need rainfall. Further dryness will increase crop damage," said Sujit Patra, joint secretary at the Indian Tea Association.

Tea production in West Bengal, centred on Darjeeeling tea gardens known for their superior quality, could drop if adverse weather conditions prevail for next few weeks, Patra said.

From March 1 to April 23, Assam received 69 percent less rainfall than normal, while rainfall in West Bengal was 63 percent below average. The two states accounted for nearly 80 percent of the tea production last year.

Rainfall in March and April determines production in May and June, when Indian tea gardens produce their premier second flush crop.

"Quality-wise second flush is the best and most sought by exporters. If its production and quality goes down, then obviously it will have a negative impact on exports," Barooah said.

India's tea exports rose 2 percent to 212 million kg in 2013 due to higher purchases from Iran.

India exports CTC (crush-tear-curl) tea mainly to Egypt, Pakistan and the UK, and orthodox variety to Iraq, Iran and Russia.

"Early onset of the monsoon and average rainfall could limit the crop damage. But if the monsoon remains patchy as forecast by weather department, then production would suffer in the second half of the year," said a researcher at Tea Research Association.

India usually produces the bulk of its tea in the second half of the year. The country is likely to receive below-average rainfall in 2014, the government's weather office said on Thursday, citing a risk to the June-September monsoon rain season from the El Nino weather pattern.

Adverse weather could trim tea output at the world's biggest tea producer McLeod Russel and Jay Shree Tea and Industries as they have plantations in Assam and West Bengal. But the impact on earnings would be limited due to a likely rise in tea prices.

"On auction platforms we are getting lower supplies than last year and this is being reflected in tea prices," Kalyan Sundaram, secretary of Calcutta Tea Traders Association, said.

Source:- in.reuters.com

Reviving Indian Manufacturing May Not Be Easy

The economic policy discourse in India, which is on the cusp of getting a new government, is considerably devoted to stimulating large-scale manufacturing.

Historically, this has been the route to absorb a vast pool of surplus labour, otherwise engaged in low-productivity agriculture. However, for various reasons, India has leapfrogged the development trajectory—from agriculture to manufacturing and then, services. As such, unlike in the past when agriculture provided bulk of the gross domestic product (GDP), now it is the services sector, which has far lower employment capacity. As manufacturing is capable of generating more jobs per unit of output, hence the focus.

However, going by past trends, this may not be so easy. Consider the five years to 2007-08, a period of India’s strongest ever growth, 8.9% each year. Manufacturing grew at an annual average rate of 10% in real terms. It also contributed to more than half the increase in private investment, which grew by an annual average of 17%, adjusted for inflation; and spending on machinery and equipment, which directly reflects manufacturing demand, grew at a much faster pace, 31%. Despite this spectacular performance, how much did its share of the GDP pie increase? Just one percentage point!

Global demand is critical in uplifting Indian manufacturing to another level altogether. In the aforesaid period, world output growth was unprecedented, an average 5% annually, outstripping the previous record average of 4% over 1984-89. This fuelled robust growth of Indian exports, which grew 22% each year. Even though direct exports account for just 15% of manufacturing output, manufacturing growth correlates very strongly with lagged export growth (over 2000-10 period), reflecting globalization effects.

But the external environment is far less compelling now; the International Monetary Fund forecasts a much slower pace of world output—3.6% in 2014 (from 3% last year) and then inching up to 3.9% in 2015. Foreign demand structures are changing too. Advanced countries are growing more on the strength of their exports to the developing world, whose exports are projected to grow at a relatively slower pace. That’s one reason for concern in the medium-term.

It is hard to reorient manufacturing towards the domestic market in a short while especially at a time when large-scale foreign direct investment into export-oriented industries has completely bypassed India. Moreover, structural and institutional changes, like better infrastructures, labour market flexibility and so on, requires attracting foreign capital, which again takes time.

In the near term therefore, the best strategy is to expand export shares in other directions—from the established markets in the developed countries to emerging economies and other developing countries. Macroeconomic policies must be suitable too; in a world where almost all currencies have weakened equally, the challenge is to preserve competitiveness.

Indian manufacturing has steadily lost competitiveness since the start of the millennium. Losses are comparatively much higher in some areas, e.g., textiles, which exports two-fifths of its output, adds 14% to industrial production and employs nearly 8% of labour force. Such trends must have a bearing upon policy settings to revive manufacturing.

Source:- livemint.com

Testing Firm Tuv Sud Witnesses Surge In Business From Indian Seafood Sector

Certification and testing agency TUV SUD has observed a surge in business from Indian seafood sector in last 12 months. The seafood export industry is showing signs of recovery after initial hiccups in the past few years when the European Union, Japan and US tightened inspection norms for marine products.

With seafood exports growing exponentially, there has been an increasing need for third party testing and inspection agencies who can help businesses adhere to stringent import norms.

With the government setting up a new breeding centre, tiger shrimp aquaculture in India is set to increase by one lakh tonnes annually with an export value of $1 billion. India's seafood exports recently crossed the one million tonne mark for the first time in history, clearly indicating calibrated growth of the marine exports in the country.

While many factors have contributed to this growth, quality assurance is one aspect that has progressively grown in precedence in the past decade. Seafood exporters are therefore increasingly seeking international third party quality assurance providers to improve the global acceptance of their consignments.

US and Japan being the largest importers of Indian shrimps, international third party assurance agencies provide the quality edge to exporters in India.

TUV SUD's services have helped seafood exporters minimise the risk of legal penalties and costly product recalls through globally acclaimed quality assurance services.

"Presence of antibiotics and unhygienic breeding conditions are some of the most common reasons for seafood consignments being rejected. Exporters in India are often found grappling with dynamic import norms in various countries, the most recent one being; Japan objecting to the levels of ethoxyquin, an anti-oxidant used as preservative in shrimp feed. Our services help exporters comply with the most updated import norms and thereby reduce the risk of large scale rejection of consignments. Seafood exports have a very strong potential of become huge foreign exchange earners for the country and the growth of our marine business is a testament of the growing seafood export sector in India." opines Dr. Pankaj Jaiminy, AVP, Food testing Services, TUV SUD South Asia.

Source:- economictimes.indiatimes.com

Indian Consumers Of The Fruit Rejoice, As European Union Bans Mango Imports

There is probably not even a kernel of truth in the importers' fear that the estimated 16 million Indian mangoes usually headed for Europe in the summer — as compared to the mere half-million aam Indians who apply for European visas annually — will be burned by despondent Indian exporters because of the impending EU ban on them from May 1.

Indeed, if El Nino leads to deficient monsoons in India, a bumper consignment of juicy mangoes in local markets courtesy the EU ban would certainly impart seasonal cheer to squeezed exporters and parched local consumers.

While Europeans' fear of desi parasites arriving as illegal immigrants along with the consignments has trumped their greed for mangoes, given India's population and predilection for the fruit, none will be left unconsumed.

However, Britain — and indeed all European governments who will have to implement the ban — should watch out for the rise of local aam aadmis or aficionados, as they are likely to be incensed by this denial of their basic right to access the "king of fruits" because of the Brussels bureaucracy.

Time is ripe for all sorts of revolutions and there is no telling what form this upsurge could take too, provoked by enticing images of their mango-sated counterparts elsewhere. After all, the adage goes, "If you can't lick 'em, join 'em".

Source:- economictimes.indiatimes.com

MCA releases list of new e-forms under 2013 Act alongwith corresponding e-forms under 1956 Act

COMPANIES ACT, 1956/ COMPANIES ACT, 2013 : Mapping of e-forms prescribed under the Companies Act, 2013 with e-forms prescribed under Companies Act, 1956

SEBI specifies requisite infrastructure and controls for proper functioning of FPI regime

SEBI : Infrastructure facilities and submission of periodic reports

Back to basics: Unabsorbed depreciation could be carried forward without fixed limit of 8 years, HC

IT: Unabsorbed depreciation of assessment years 1997-98 to 2001-02 could be allowed to be carried forward and set off even after a period of eight years, in view of amended section 32(2)

Work contracts for fixing metal crash barriers on roads to prevent accidents are liable to VAT at 2%

CST & VAT : Where assessee had undertaken a contract for preparing and installing metal crash barriers on both sides of roads for prevention of accidents, installation of such barriers was basically in nature of civil work of buildings which, in turn, was a part of construction of a road and, therefore, assessee was liable to pay tax at rate of 2 per cent as against 12 per cent demanded by Commissioner

Rupee Strengthens To 60.48 Amid Dollar Sales; Global Factors Weigh

The rupee was trading higher against the US dollar on Tuesday amid dollar sales by exporters in quiet trade as dealers awaited new cues.

At 2.45pm, the home currency was trading at 60.48 per dollar, up 0.27% from previous close. It opened at 60.62 and touched a high and a low of 60.43 and 60.64, respectively.

India’s benchmark index, S&P BSE Sensex, was trading at 22,529.93 points, down 0.45%.Traders were cautious ahead of the two-day US Federal Open Market Committee (FOMC) meeting starting later on Tuesday.

Dollar inflows from exporters supported the rupee.“Overall range-bound movement in the rupee is mainly dictated by global factors such as tensions in Ukraine while locally investors are awaiting the outcome of the elections,” India Forex Advisors, a local foreign exchange advisory firm, said in a note earlier on Tuesday.

Since the beginning of this year, the rupee has gained 2.23%, while foreign institutional investors (FIIs) have bought $5.05 billion during the period from local equity markets.The yield on India’s 10-year benchmark bond was trading at 8.855%, compared with its Monday’s close of 8.857%. Bond yields and prices move in opposite directions.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 79.632, down 0.06% from the previous close of 79.683.

Source:- livemint.com

New Exim Policy To Promote Exports - Imports Substitution'

The new government's Foreign Trade Policy (FTP) document will vigorously promote export as well as import substitution with equal emphasis and lay greater thrust on engaging the rest of the world with Indian pharma, engineering and other such products, said Sumeet Jerath, Additional DGFT, Centre Licensing Area (CLA).

Presiding over the Interactive Session of Members of PHD Chamber of Commerce and Industry with DGFT CLA on Niryat Bandhu Initiative in New Delhi on Monday, Jerath also disclosed that the DGFT's second committee report on reducing transaction cost was ready for public consumption and suggest a way forward as to how the new government should tackle the issues, relating to higher transaction cost to enable exporters achieve the desired level of exports to both developed and developing economies.

"India being part of WTO cannot only think in terms its export promotion without equally supporting import substitution. Therefore, the focus of the new Export & Import Policy would be to vigorously promote both exports and imports with significantly substantial focus on exports," said Jerath.

However, he assured the Indian industry that while the new government would deepen its external engagements with exploring potential markets, it would also make sure that domestic pharma industry gets a fair deal and not subjected to uncalled for regulations as happened with one of the leading pharma company of India recently. The domestic pharma exports would exceed to an extent of thousand of crores after the new EXIM Policy is put in place by the new government, indicated Jerath.

He also said that age old procedures and regulations, governing exporters would be trimmed and pruned to suit the exports requirements of the modern times so that the realistic targets for exports set from time to time are made achievable to enhance the contribution of Indian exports to its national GDP. In the meanwhile, it would be the attempt of the policy makers to take India’s share in global trade to over 5 percent from current level of 2 percent in next five year period for which the new government will unveil its foreign trade policy after constitution of 16th Lok Sabha.

In his welcome remarks, Alok B Shriram, Sr. Vice President, PHD Chamber demanded fair deal for exporters out of the new foreign trade policy and urged the policy makers to restore some of the export promotion policies that were earlier in vogue.

He also urged the officials of the DGFT present during the occasion that the new policies should be such as could help India deepen its external engagements with the rest of the world so that India makes a mark.

Source:- smetimes.in

ITAT denies sec. 80-IB relief as return was filed by assessee after due date specified under sec. 13

IT: Where assessee had sufficient reasons which prevented it from producing various documents before Assessing officer, documents sought to be admitted as additional evidence

Sugar cess paid as additional duty of customs on imported sugar is excise duty and eligible for cenv

Cenvat Credit : Sugar cess is tax, and to be precise it is 'duty of excise' and not 'fee'; it is a duty of excise on all sugar produced by any sugar factory in India

SC: Once an open offer is made through public announcement it can’t be withdrawn later if it becomes

CL : Whether an open offer voluntarily made through a Public Announcement for purchase of shares of the target company can be permitted to be withdrawn at a time when the voluntary open offer has become uneconomical to be performed. Held- No

Demurrage charges to be excluded from value of closing stock; rules ITAT

IT : Demurrage/detention charges were not liable for inclusion in valuation of closing stock

Pre-deposit requirement to be waived off if same issues were decided by HC in favour of assessee

CST & VAT : Pre-deposit must be waived by Tribunal, if identical issue decided finally by jurisdictional High Court

‘Ready to use’ rig isn’t an Installation PE as per India-USA DTAA; HC denies interpreting term ‘used

IT/ILT: The term'used'as specified in Article 5 of India-USA DTAA does not include 'ready to use' as specified by the Income-tax Act - Held Yes - When 'rig' was lying 'ready for use', it could not be considered as 'used' for purpose of said Article 5 - Held Yes -Whether the Tribunal had rightly concluded that the word 'used' as specified in said DTAA clarifies usage of an installation or structure for exploration of natural resources and if it was so used for a period of 120 days in 12 months, o

Issues concerning levy of custom duty and classification of goods were not appealable before the Hig

Excise & Customs : Where issues involved are levy of customs duty and classification of goods, grievance that 'Tribunal has not given a specific finding with regard to classification of goods' is also appealable before Supreme Court only, not High Court

Sec. 80-IB relief available to assessee manufacturing products which are essential for cigarettes ma

IT: Deduction under section 80-IB cannot be denied to an assessee who is in manufacturer of cigarette filter rods which are used for manufacture of filter cigarettes

Issues concerning levy of custom duty and classification of goods were not appeal before the High Co

Excise & Customs : Where issues involved are levy of customs duty and classification of goods, grievance that 'Tribunal has not given a specific finding with regard to classification of goods' is also appealable before Supreme Court only, not High Court

No liability of director to pay taxes of Co. if he was appointed after conversion of private co. int

IT : Where a company was initially incorporated as a private company in September, 1991 and it was converted into a public limited company on 5-4-1995 and thereafter assessee became its director on 9-3-1996, since assessee joined company as a director only after it was converted into a public limited company, outstanding dues of company could not be recovered from him under section 179

Electricity charges and donations for booking of marriage hall are liable to luxury tax

CST & VAT : Electricity charges and voluntary contributions or donations received from persons booking marriage hall are includible in 'marriage hall charges' and are liable to luxury tax

As levy of penalty would cause double jeopardy, Appellate Tribunal remanded matter for fair trial

Foreign Exchange Lows : Where appellant submitted that remittances regarding which penalty had been imposed by impugned order for contravention of section 8 had already been adjudicated by previous order and imposing penalty again in respect of said remittances being bad amounting to double jeopardy, issue regarding such entries of remittances being common in two orders was essential to be considered and determined for right decision on merits

No withholding of tax from installation charges included in purchase price of machinery acquired fro

IT/ILT: Where assessee purchased certain complex machinery from abroad, in view of fact that installation charges of said machinery were included in purchase price itself, assessee was not required to deduct tax at source while making payment of said charges

MCA puts compulsion of pre-certification of e-forms on all cos. excluding small cos. and one person

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Registration Offices and Fees) Amendment Rules, 2014 - Amendment in Rules 8 and 9

Larger bench gives prospective effect to CBDT’s Instructions on revised monetary limits for filing o

IT: Revised monetary limits for filing of an appeal as specified by CBDT through an Instruction of 2011 would not apply to all pending appeals

Issuing cenvatable invoices without actual delivery of goods attracts penalty even prior to insertio

Excise & Customs : A registered dealer issuing Cenvatable invoices without actual delivery of goods is liable to penalty under rule 26(1) or 25(1)(d) of Central Excise Rules, 2002, even for period prior to specific Rule 26(2) covering said offence

HC raps AO for issuing garnishee notice promptly on denial of stay on recovery proceedings; directs

IT : Where Assessing Officer rejected stay application on recovery of tax demand and issued garnishee order on same date when stay application was rejected, though technically no fault could be found with Assessing Officer, still there was an element of impropriety in his action

Issuing cenvatable invoices without actual delivery of goods attracts penalty even prior insertion o

Excise & Customs : A registered dealer issuing Cenvatable invoices without actual delivery of goods is liable to penalty under rule 26(1) or 25(1)(d) of Central Excise Rules, 2002, even for period prior to specific Rule 26(2) covering said offence

Specific grants disbursed by Govt. for implementation of its schemes couldn't be deemed as income of

IT : Where assessee-authority has been constituted by Government for specific purposes of carrying on activities of Government and where grants and advances or loans are disbursed by Government to assessee, said grants and advances cannot be held to be income of assessee

Tribunal may remand matter subject to conditions of per-deposit and underlying reasons thereof

Service Tax : Section 35C empowers Tribunal to remand case back with such directions as Tribunal may think fit and said 'directions' may, in an appropriate case and subject to reasons, include an order of pre-deposit to protect interest of revenue

Only businessmen can rightly assess reasonableness of salary paid to competent specified person unde

IT : Where all payments to sub-contractors were made by account payee cheques and sub-contractors admitted that they had received amount from assessee for job-work done by them and tax had also been duly deducted in their respective cases, disallowance of such expenses was not justified

Delay in filing claim for refund won't upset assessee's statutory right to claim it

CST & VAT : Where assessee purchased chemicals from one 'M' after payment of tax at rate of 4 per cent and subsequently 'M' having found that above commodity was taxable at rate of 12.5 per cent raised debit note in July, 2006 upon assessee demanding tax difference of Rs. 1.40 lakhs and assessee promptly paid said amount and claimed tax rebate of same in VAT return filed for December, 2006, delay in putting forth claim for refund did not in any way affect assessee's right to claim said amount an

Re-assessment notice was valid as accommodation entries to assessee were confirmed by a CA’s confess

IT : Where Assessing Officer had reopened assessment of assessee-company plea that it had arranged accommodation entries from four bogus companies created by a Chartered Accountant in lieu of cash deposits of equal amount plus premium which were not disclosed to department, notice for reopening assessment proceedings was valid

HC remands matter as Tribunal examines validity of assessment order in an appeal against pre-deposit

CST & VAT: Where Appellate Authority while considering assessee's application for waiver of pre deposit of assessed tax ordered assessee to deposit entire assessed tax by way of pre deposit and Tribunal, on appeal filed against impugned order, decided several issues pertaining to validity of assessment order and allowed appeal in part, Tribunal committed serious error in examining validity of assessment order in an appeal concerning question of pre deposit

New e-forms under the Companies Act, 2013 are available for filing, says MCA

COMPANIES ACT, 2013 : Availability of E-Form/Non-E-Form Under the Companies Act, 2013

ITAT stayed recovery of tax as assessee had made a strong case against TP adjustment

IT : Stay on recovery of demand be granted as assessee had made out a prima facie case that T.P. adjustment so made was not warranted

Extended period not available if barging classified under 'Port Service' and subsequently under 'Car

Service Tax : Where department earlier classified barging viz. transportation of goods in barges from a mothership to jetty under Port Service but later sought to classify it under 'Cargo Handling Service', prima facie, extended period was not invocable

HC concluded that difference in quantity of manufacturing and export would be deemed as suppressed l

IT: Where there was considerable discrepancy in quantity of gold recorded in assessee's books at time when ornaments were manufactured and received from artisans, as compared to gold actually exported by assessee to its foreign importers and such differential quantity of gold did not form part of assessee's exports, it was rightly concluded that gold was subjected to local sales

CHA license not to be revoked on violation of law without mens rea; suspension for specific period i

Excise & Customs : Where CHA had granted G Cards, in an unauthorized manner, to certain illegal exporters but CHA had not facilitated illegal exports and same were made without his knowledge, CHA cannot be inflicted with penalty of revocation of license; suspension of license for specific period is a sufficient penalty

Opportunity of being heard and speaking order is mandatory when sec. 17 assessment is contrary to cl

Excise & Customs : Finalization of assessment should be in accordance with procedure contemplated in section 17, including granting of opportunity of being heard and passing of speaking order as contemplated in section 17(5), when assessment is contrary to claim of importer

Director gets scot-free passage in absence of evidence for her involvement in violation of FERA prov

Foreign Exchange Laws : In absence of any evidence to show manner in which appellant-director was responsible for conduct of business of company which contravened provisions of section 18 of FERA, no case of contravention of section 18 was made out against appellant

Incentives to subscribers for generating additional revenue is a 'selling exp.' to be excluded from

IT/ILT: Revenue generated by assessee from bookings done by subscribers was major source of assessee's income from its AE and such 'Incentive' to subscribers could not be viewed as anything other than 'Selling expense' which was liable to excluded from total AMP expenses

SC: An interim order directing a Co. not to alienate its asset didn’t amount to creation of charge i

CL : Whereby through an interim order the company-in-liquidation was directed, not to charge encumber or alienate any of its assets except with the leave of court, including the assets listed in the respective undertaking given by the company. Since the injunction was issued only to ensure that the company-in-liquidation does not further encumber or create charges in favour of third parties over the assets of the company in liquidation therefore, neither the interim order nor undertaking given b

Sum paid to Iraq authorities after RBI's approval under 'Oil for food' programme wasn't illegal and

IT: Payments made by assessee as inland transportation charges for delivery of goods and commission payment to parties who rendered services for procurement of order were fully deductible as said expenditures were incurred by assessee for purpose of its business and did not fall under category of an expenditure incurred for any purpose which is an offence or which is prohibited in law in terms of Explanation to section 37(1)

CHA license not to be revoked on violation of law without men srea; suspension for specific period i

Excise & Customs : Where CHA had granted G Cards, in an unauthorized manner, to certain illegal exporters but CHA had not facilitated illegal exports and same were made without his knowledge, CHA cannot be inflicted with penalty of revocation of license; suspension of license for specific period is a sufficient penalty

RBI allows use of transaction based reporting format for cross border wire transfer

FEMA/ILT : Reporting of Cross Border Wire Transfers - Specified Format/Reports for

Assessee immune to penalty when revenue failed to invoke correct provision in show-cause notice

Excise & Customs : Where assessee has paid entire duty at time of provisional assessment and there is no duty demand in adjudication order, no penalty can be levied under section 114A

ITAT grants sec. 80-IB(10) relief on additional income offered by real estate entity during search

IT : Assessee is eligible for deduction under section 80-IB(10) in relation to additional income offered in a statement under section 132(4) in course of search and subsequently declared in return filed in response to notice under section 153A(1)(a)

Unexplained cash to be added as assessee failed to prove that he acted as transfer agent and didn't

IT : Where assessee failed to bring any material on record to substantiate that he acted as an agent and was given cash for purchasing gold, addition was justified

Failure to pay collected service-tax was a bailable offence until provision was amended by FA 2013

Service Tax: Where assessee had not paid service tax exceeding Rs. 50 lakhs collected during 2008 to 2012, assessee was entitled to bail because amendment vide Finance Act, 2013 is not retrospective and though offence is continuing one, it was bailable when it was originated

Registration denied to trust formed to impart education to children of Christian community only

IT : Where assessee-trust had been formed to impart education primarily to children of Christian Minority Community and main objective of society-trust was to provide quality education in Christian environment, registration under section 12AA should be denied to it

Withdrawal of requirement to take clearance from 'Committee on Disputes' for filing of appeal isn't

Excise & Customs : In case of appeals filed before 17-2-2011, either COD clearance must have been obtained or an application in that behalf must be pending on 17-2-2011, failing which appeals are liable to be dismissed as not maintainable

HC upheld transfer order as it was issued to facilitate coordinated investigation of related entitie

IT: Where purpose of section 127 order was to ensure that an orderly and coordinated investigation took place while conducting assessment of related entities involved and show-cause notice was issued granting an opportunity of being heard, no prejudice would be caused by mere section 127 order

SAT upheld penalty for 'front running' as appellant was trading in scrips of co. with prior knowledg

SEBI : Where appellant traded in sale of scrip of company with prior knowledge of buy of orders of other entities, appellant indulged in front running which was violative FUTP Regulations

A manufacturer has to prove unjust enrichment vis-à-vis his buyer and not 'ultimate consumer'

Excise & Customs : A manufacturer cannot be asked to produce evidence to show as to who ultimate consumer was and whether such consumer had borne burden of duty; a manufacturer has to prove unjust enrichment vis-à-vis his buyer and not 'ultimate consumer

Transport subsidy aiming to reduce transportation cost is to be treated as revenue receipts

IT : Transport subsidy granted to assessee-company after setting up of new industry which had effect of reducing inward and outward transport costs, had to be treated as subsidy of revenue nature liable to tax

VAT dues get preferential treatment; it has first charge over dues of bank and secured creditors

CST & VAT : By virtue of first charge created under section 26 of AP VAT Act, VAT dues would have precedence over dues of Banks, Financial Institutions and other secured creditors and said section overrides DRT Act and SARFAESI Act

SC set aside sale of mortgaged assets as it was conducted through a private treaty without knowledge

Banking Laws : Sale of secured asset effected by bank in favour of purchaser by a private treaty without informing borrower would be in violation of rules 8 and 9 of Security Interest (Enforcement) Rules and, thus, illegal

Payment for software licensed to foreign HO and used by Indian branch with non-exclusive rights isn'

IT/ILT : Where assessee, a Belgium based bank, having obtained a licence to use software, allowed its Indian branch to use same software by making it accessable through server located at Belgium, amount reimbursed by branch on pro rata basis for use of said resources was not liable to tax in India as royalty under section 9(1)(vi) or article 12(3) of India-Belgium DTAA

HC treats high sea-sale as inter-state as variations found in bill of entry filed before customs and

CST : Where assessee, a dealer in plastic raw materials, claimed high sea sales under section 5(2), since there were differences in names found in original bills of entry filed before customs department and photocopy of triplicate copy of bills of entry filed before sales tax department, Tribunal was justified in rejecting claim of assessee and treating sales in question as direct inter-State sale

Concealment penalty rightly imposed as illegal payment to union leaders were claimed to evade taxes

IT : Where an assessee being aware of unambiguous provisions of Explanation to section 37(1), incurred expenditure prohibited by said Explanation, it exposed itself to penal provisions envisaged by section 271(1)(c)

Even statutory authorities are bound to comply with pre-deposit requirement, rule HC

Excise & Customs : Pre-deposit is applicable to statutory authority set up by State Government as well; when Legislature has not made any distinction, Court cannot make any distinction by judicial order

Unlisted cos. raising funds abroad to comply with SEBI's disclosure norms at time of listing in Indi

IT/ILT/INDIAN ACTS & RULES : Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) (Amendment) Scheme, 2014 - Amendment in Paragraph 3

HC treats sea-sale as inter-State as variations found in bill of entry filed before customs and sale

CST : Where assessee, a dealer in plastic raw materials, claimed high sea sales under section 5(2), since there were differences in names found in original bills of entry filed before customs department and photocopy of triplicate copy of bills of entry filed before sales tax department, Tribunal was justified in rejecting claim of assessee and treating sales in question as direct inter-State sale

Sec. 14A disallowance deleted on presumption that investment was made out of owned funds available i

IT: Where assessee is able to show near proximity of availability of own funds, may be exactly not on date of investment or advancement of loan but in a very near future date or within a reasonable short period of time, even then presumption will be that investment was made by assessee from his own funds or in anticipation of availability of its own funds within a short period of time

No ST on construction of educational units as its activity of charging high fees couldn’t be deemed

Service Tax : Merely because fees are charged for education, educational institutions cannot prima facie be considered a commercial institution and, therefore, construction thereof cannot be charged to service tax; Explanation to section 65(105)(zzzc) is not applicable for interpreting scope of Construction Services

Method of valuation used by dept. would be factual even if it caused over-valuation of goods; non-ap

Excise & Customs : Argument that : (a) method used by Department to determine weight of cables/wires led to over-valuation and (b) use of simpler subtraction method would be more just, was a 'factual issue' and not appealable before High Court

Reassessment quashed as AO couldn't suddenly treat profit from share dealing as business income and

IT: Where income from sale purchase of shares was treated as capital gain in earlier years, in absence of any new material, reassessment could not be initiated holding same as business income

Method of valuation used by dept. would be factual even if it caused over-valuation of goods; non-ap

Excise & Customs : Argument that : (a) method used by Department to determine weight of cables/wires led to over-valuation and (b) use of simpler subtraction method would be more just, was a 'factual issue' and not appealable before High Court

HC raps AO for allowing sec. 80-IB(10) relief as return was filed after due date specified under sec

IT : Deduction under section 80-IB(10) can be allowed only when return is filed on or before due date specified under section 139(1)

Even exempted export services are includible in 'export turnover' to determine cenvat refund under R

Cenvat Credit : Even exempted export services are required to be added to Export turnover of services; and in case of 100% exporter, all unutilised service tax credit pertaining to exported service will be admissible as refund under Cenvat Rule 5

ITAT slams AO for making afresh sec. 153A assessments when no incriminating material was found durin

IT : Where Assessing Officer as a result of search conducted under section 132 on assessee proceeded against him and made fresh assessments under section 153A for three assessment years, which had already been concluded, assessments made under section 153A were liable to be set aside, since no incriminating material was found during search and seizure operation

HC lays criteria to identify AOP; relies on ratio of ‘Ishikawajima-Harima’ for taxability of offsho

IT/ILT- In absence of sufficient degree of joint action between consortium members in either execution or management of project, consortium would not be deemed as an AOP for purposes of Income-tax Act

When service-tax wasn't paid under a bonafide belief, revenue couldn't invoke extended period

Service Tax : Where assessee had not paid service tax for earlier period owing to bona fide belief as to non-charge of service tax, extended period was, prima facie, not invocable and, therefore, quantum of pre-deposit was reduced

CLB imposed penalty on respondent co. for refusing to register transfer of shares in favour of new h

CL : Where company issued shares as security to bank, and bank transferred entire debt portfolio of company to an asset reconstruction company, company cannot refuse to accept and transfer shares in name of new holder

Export commission paid to NR not subjected to withholding of taxes as NR agent had no PE in India

IT/ILT-I : Where in transfer pricing proceedings, TPO made addition to assessee's ALP in respect of card machines sold to AEs without granting adjustments on account of payment of royalty, commission to selling agent and warranty cost, following order passed by Tribunal in assessee's own case, aforesaid adjustments as sought by assessee were to be allowed

SEBI further revises guidelines for Liquidity enhancement with an intent to boost liquidity in illiq

SEBI : Revised Guidelines for Liquidity Enhancement Scheme in The Equity Cash and Equity Derivatives Segments

RBI notifies Uniform Accounting Rules for Asset Reconstruction Cos

NBFCs : Uniform Accounting Standards at ARCs

Assessee was liable to VAT on rent as it accepted regular sums from tenants and latter wasn’t proved

CST & VAT : When assessee accepted regular payments from user of property, there was implied tenancy and amounts received were liable to tax; for non-taxation, it is on assessee to prove that tenant was a trespasser and sums received were damages in form of mesne profits.

No IT relief to trust if its business receipts exceeded threshold; yet its registration couldn't be

IT: Where gross receipts of a charitable institution from its business exceeds limit of Rs. 10 lakhs, it will not be entitled for exemption or other admissible tax benefits for relevant year only; however its registration as charitable institution will continue

Revenue authorities must adjust excess duty towards pending dues to determine penalty on evasion of

Excise & Customs : If assessee has made excess payment, excess payment should be adjusted towards amount due and if, after deduction, no duty/interest is payable, question of imposing penalty under section 11AC would not arise at all

India’S Fy '14 Gems And Jewellery Exports Fell 9% To $39.5 Billion

According to latest government statistics, the country’s gems and jewellery exports declined sharply during the fiscal year FY ’14. The exports during FY ’14 totaled $39.5 billion during 2013-’14, nearly 9% lower when compared with the exports of $43.34 billion during the previous fiscal.

According to Gems and Jewellery Trade Federation- the representative body that promotes growth of trade in gems and jewellery, the sharp decline in exports was primarily due to flat demand from global markets and partly on account of tight norms of gold imports by the government which led to non-availability of gold for exports.

The exports of gems and jewellery from India had been declining since October last year. This was mainly due to various regulatory curbs on gold imports. The government had raised the customs duty on gold imports from 2% to 10% in an attempt to arrest the rising Current Account Deficit (CAD). The confusion surrounding 80:20 rule also resulted in reduced gold imports by the country. All these led to severe scarcity of gold in India.

The contraction in gold imports helped the country to contain the CAD to to $31.1 billion (2.3% of GDP) during the April-December FY14 period as compared to $69.8 billion (5.2% of GDP) reported in the same period of previous fiscal year. The final CAD data for the entire fiscal is due to be announced shortly.The exports of gems and jewellery constituted 15% of the country’s total exports during the fiscal.

Source:- metal.com

India May Cede Top Rice Exporter Spot Under Southeast Asian Price Onslaught

India's rice exports could slide by nearly a quarter this year and knock the country off its perch as top exporter of the grain due to stiff competition from Southeast Asian rivals that have recently slashed prices, Indian industry executives said.

A drop in Indian exports could help Thailand trim a record inventory chalked up under a controversial rice-buying scheme. Thailand may also be able to reclaim its status as the world's biggest rice exporter, which it lost to India two years ago.

It will also leave more rice in Indian hands at a time when the country's stocks are bulging and it faces the prospect of a record harvest, creating problems of storage.

"We are almost out of the market now. Thailand and Vietnam are selling aggressively and it is difficult for Indian exporters to match those prices," B.V. Krishna Rao, managing director at Pattabhi Agro Foods Pvt Ltd, India's biggest non-basmati rice exporter, told Reuters.

"Thailand will again become the world's biggest rice exporter. Our non-basmati rice exports could drop to 4 million tonnes," Rao said.

India toppled Thailand in 2012 to become the world's biggest rice exporter after the government lifted a four-year-old ban on non-basmati rice shipments in 2011 to trim a growing mountain of the grain following bountiful harvests.

In the 2013/14 financial year that ended on March 31, India's total rice exports stood at a record 10.5 million tonnes, comprising 4 million tonnes aromatic basmati rice and 6.5 million tonnes of the non-basmati variety.

While India's shipments of the basmati variety are likely to remain steady in 2014/15 at around 4 million tonnes, total rice exports could drop to 8 million tonnes due to the slide in exports of non-basmati rice, industry officials said.Desperate for revenues, Thailand has this year been selling larger quantities of the grain from state warehouses at low prices to private traders. Thailand-origin rice was offered at the lowest price in an international tender from Iraq's state grains buyer to purchase at least 30,000 tonnes, European traders said on Tuesday.

The push could boost Thailand's rice exports to 9 million tonnes in the 2014 calendar year from 6.7 million a year ago, according to a March report issued by a U.S. Department of Agriculture attache in Thailand. India's exports in the 2014 calendar year are expected to be lower than that, industry executives said.

Thailand is now offering 5 percent broken rice at $390 to $395 per tonne free-on-board basis, compared to India's offer price of $400.

The Southeast Asian nation usually charges a premium over Indian rice due to its longer grains

"India and Thailand are quoting nearly the same price for 5 percent broken rice. Thailand's prices need to go up by $40 per tonne to make Indian exports viable," said M. Adishankar, executive director at Sri Lalitha, a leading rice exporter based in the southern Indian state of Andhra Pradesh.

Since the first week of February, Thailand has cut export prices of 5 percent broken rice by nearly 12 percent, compared with a 2 percent drop in export prices from Vietnam, the world's second-biggest exporter. Indian prices rose 2 percent during the same period as the rupee strengthened.

"For some grades Thailand has been offering discounts compared to Indian prices. Indian exporters can't lower prices substantially due to the appreciating rupee," said M.P. Jindal, president of the All India Rice Exporters Association.

A strong rupee cuts the returns of exporters. The Indian currency has risen nearly 3 percent since the start of February.

The imposition of a 110 percent import duty on rice last year by Nigeria, a major importer of the grain from India, could further hamper exports from the South Asian country.

India mainly exports non-basmati rice to African countries such as Nigeria, Senegal and Benin, while Iran, Saudi Arabia and United Arab Emirates are key buyers of its basmati rice.

"Shipments to Nigeria are hit due to the new duty structure," said Adishankar of Sri Lalitha.

Other African buyers are switching to Thailand as the government has been aggressively selling stocks from its warehouses, the exporters said.

Slowing exports will add to India's problem of plenty in foodgrains. Rice inventories with India's state-run agencies have already jumped above 30 million tonnes as on April 1, government data shows, against a target of 14.2 million tonnes. Moreover, the country is estimated to produce a record 106.19 million tonnes rice in the year to July 2014.

"Slowing exports mean more and more farmers will sell their crop to the government, but it doesn’t have enough storage space," said a rice miller based in Kakinada, Andhra Pradesh.

Source:- in.reuters.com

India Containerized Scrap Import Prices Rise Further By $13 A Ton

India containerized scrap import prices rose further by 3.7% week-on-week to $395 a ton in the week ended April 18th this year, as per the latest figures released by the The Steel Index (TSI).

According to TSI, Indian imports of containerised scrap gained by $14 ton last week to finish at $395 a ton.

According to a prominent trader in the region ‘whilst finished product sales remain slow, buyers are back into imports thanks to local scrap prices going up’.

US and European offers into the region were said to be around $410-415 a ton, although buyers are slowly beginning to take a more cautious approach to procurement, with many expecting prices to soften in May when scrap flows into yards traditionally start to pick-up pace.

Source:- metal.com

Lower Prices Propel India’S Coking Coal Imports By 18% In Fy ‘14

In current fiscal year 2013-‘14(FY14), lower rates of coking coal produced 18 pct increase in imports. Indian steel producers imported about 33.1 million tonnes of coking coal during 2013-14.

According to traders and analysts, the coking coal imports by the country took advantage of the price crash. Globally, the average prices dropped from $140 per tonne during previous fiscal to as low as $111- $118 per tonne in FY ’14.

However, all of the imported coke is not used for steel production. Some other plants produce coke in order to sell to other parties. India buys 30 to32 mt of coking coal from Australia annually. The rising coking coal imports also made improvements in India’s crude steel output. Based on the data of world steel organization, due to this high coke imports, steel production rose to 81mt in 2013 from 77.3 mt of 2012.

Coke traders also mentioned that usage of coke to produce hot metal and stockpiling the material by many plants is likely to make later rise in price. When Prices reached around $100 per tonne, the steel plants tried to stockpile the coke so as to meet up future price rise. Thus, normal steel production and rising imports of coking coal implies that the steel units have concern over both inventory and production.

Source:- metal.com

Russian Jv Venture Promises To End India's Butyl Rubber Import

India's $360 million imports of synthetic butyl rubber, used mainly to make tyres, may soon be rendered unnecessary after a Russian joint venture with Reliance Industries starts production end-2015, a top official has said.

Russian gas processing and petrochemicals major Sibur has a 25:75 joint venture with Reliance and the upcoming plant at Jamnagar is set to commence production by the end of next year, said Evgeny Griva, chief executive of Sibur Petrochemical India.

"Sibur believes that once production begins at Jamnagar, India will stop importing butyl rubber," Griva told IANS, adding the current imports were estimated at 60,000 tonnes per annum as against the plant's capacity of 100,000 tonnes.

The $7.6-billion Sibur's projections for India are based on a conservative medium-term growth in demand for butyl rubber at around 6.3 percent per annum, thanks to India emerging as a major hub for small cars.

"Production of small cars in India increased eight percent last year and is expected to maintain the same growth rate over the next there years. We anticipate a similar growth in demand for butyl rubbers as in tyre production," Griva said.

According to him, Russia has a leading position as a supplier of butyl rubber to the global market. "We at Sibur are among a few companies with technology to produce butyl rubber and the practical experience to produce and sell our product," he said.

"We are using a unique solution polymerization technology in Jamnagar. It is consistent in product quality and is also eco-friendly since it uses non-toxic solvents," the Russian chief executive said.

The technology is currently only being used at at Sibur's Togliattikauchuk plant in Togliatti in the Samara region of central Russia which has been operating since the early 1980s.

India's tyre output is expected to expand rapidly, with the credit ratings agency ICRA estimating growth at 8-10 percent a year to drive the Indian synthetic rubber industry forward.

"Once domestic demand is being satisfied in India, Reliance Sibur Elastomers may export its remaining output to neighbouring countries. But our joint venture's prime focus will be India", Griva said.

Sibur Petrochemical India, the group's subsidiary since in 2012, is also conducting detailed research on the country's petrochemical market and the related business development to tap the demand.

"India's per capita consumption of polyolefins lags well behind that in other countries in Southeast Asia and further behind Western Europe or North America. The demand will only grow as personal incomes are rising and consumption patterns.

Source:- business-standard.com

India To Make May-July Oil Payments To Iran - Sources

India is set to pay Iran $1.65 billion over the next three months under an interim nuclear deal that eases sanctions on Tehran and gives it access to $4.2 billion in blocked funds, four sources with knowledge of the matter said.

As long as Tehran complies with the terms of its preliminary agreement with western powers, which took effect on Jan. 20, Iran receives some of its funds frozen abroad in eight payments from various buyers over six months.

Iran has cut its most sensitive nuclear stockpile by nearly 75 percent in implementing the pact, the International Atomic Energy Agency said in its latest report, as the OPEC member allays fears about its atomic aims.

This means Tehran will have access to the next two installments, each of $550 million, which are due on May 14 and June 17. The final $550 million installment, due on July 20, is contingent on confirmation that Iran has fulfilled all of its commitment.

The Indian government has asked refiners to make the first payment by mid-May, three of the sources said, adding that refiners will settle all three tranches if payment is allowed by the United States and European Union.

"The individual companies' share is to be worked out," one of the sources said.Iran has so far received $2.55 billion in frozen oil funds, in five payments, four from Japan and one from South Korea.

Three of the sources said Iran had asked India to make payments into the Central Bank of Iran's account with Oman's Bank Muscat BMAO.OM in Omani rails.

"All I can confirm is that some movement is happening on payments by India to Iran, but the modalities as to which bank will be used by India to remit funds is yet to be worked out," said a western diplomat privy to the matter, who was not one of the four previously cited sources.

Indian refiners Essay Oil (ESRO.NS), Bangalore Refinery and Petrochemicals Ltd (MRPL.NS), Hindustan Petroleum Corp (HPCL.NS) and HPCL-Mittal Energy Ltd together owe $3.6 billion to National Iranian Oil Co.

The tough sanctions slapped on Iran in 2012 closed banking channels for the transfer of oil payments to the OPEC member country, putting a stranglehold on its revenue, crippling its economy and ultimately bringing it to the negotiating table.

Indian buyers of Iranian oil have been settling 45 percent of payments in rupees, which Iran used for importing goods from India, while the refiners held the remainder.

Before the interim deal, countries that imported Iranian oil were required to steadily reduce their purchases to qualify every six months for a waiver from U.S. sanctions.

Iran's crude oil exports fell for the first time in five months in March and are slated to drop further in April, moving closer to the levels stipulated by the November interim deal.

That agreement allows Iran to keep exporting at current reduced levels of about 1 million bpd and opens a door for lifting shipment volumes later.

Iran's top four oil clients - China, India, Japan and South Korea - together cut oil imports from Iran by 15 percent to an average of 935,862 barrels per day (bpd) in 2013, government and industry data showed.

India's intake of Iranian oil surged nearly 43 percent in the first quarter of 2014, bringing a warning from the United States that it needed to hold the shipments closer to end-2013 levels of 195,000 bpd.

Source:- in.reuters.com

Pakistan Ready To Lift Import Ban On Items From India, Says Envoy

Pakistan has said it will allow imports of all items from India once the on-going election process in the country is over and New Delhi is in a position to implement the "arrangement'' of reducing subsidies on some items of export interest to Pakistan.

"Early this year, both the countries had agreed on an arrangement under which India would reduce subsidies on items that can be exported by Pakistan. But it could not be implemented as the model code of conduct came into play," Pakistan High Commissioner to India Abdul Basit said in an interaction with women journalists on Wednesday.

Basit said that once the new Government is in place in India, the whole issue could be reconsidered.

Extending India non-discriminatory market access, which basically means allowing all Indian items to be sold in Pakistan, is a key condition that New Delhi has laid down before Islamabad for re-starting the bilateral trade dialogue that has been stalled for the past year.

Although Pakistan has opened its doors to over 85 per cent of items to be exported from India, it still disallows 1,209 items such as automobiles, many pharmaceutical products, agricultural produce and textile items such as polyester.

India, on the other hand, allows import of all items from its neighbour, but Pakistan alleges that there were a number of non tariff barriers that impeded imports.

"There are four sectors in Pakistan, which includes pharmaceuticals, agriculture, automobile and textiles which are apprehensive about competing with India," the High Commissioner said.

More opportunity



India needs to reassure Pakistan’s industry that there would be more opportunity for them for doing business in the country by removing some domestic subsidies and giving it a more level playing field, he added.

Islamabad had promised to do away with all import bans by December 31, 2013. It had also promised that it would allow trade of all products through the land route, instead of the expensive sea-route.

Source:- thehindubusinessline.com

Sri Lanka Rupee Edges Down On Light Importer Dollar Demand; Stx Fall

The Sri Lankan rupee traded weaker on Thursday in thin trade due to light importer dollar demand, while dealers expected the currency to remain stable until imports pick up sharply with remittances slowing down.

The spot rupee was traded at 130.63/66 per dollar at 0617 GMT, a tad weaker from Wednesday's close of 130.60/61.

"We see importer dollar demand coming in with inflows drying," said a currency dealer, adding that the market was waiting to see if the central bank would defend the rupee or allow flexible movement in the exchange rate.

The benchmark 91-day treasury bill yield dropped to its lowest since January 2007, data showed on Wednesday, a day after the central bank kept policy rates steady at multi-year lows. ,

Many dealers said they are surprised by the lower credit demand from the private sector even though key interest rates have been at multi-year lows since January.

Private sector credit grew 4.4 percent year-on-year in February, the slowest since May 2010, latest data from the central bank showed. That compared with a growth of 5.2 percent in January this year and 13.3 percent in February 2013.

The central bank, in its monetary policy statement on Tuesday, expressed confidence that private sector credit growth would rebound in the second quarter and push up the pace of economic expansion.

Dealers expect the rupee to trade in a range of 130.60-70 in the near future. It has been hovering between 130.55 and 130.70 per dollar since March 3, Thomson Reuters data showed, with the central bank intervening to smoothen any sharp volatility.

There was a gradual increase since mid-March in remittances by Sri Lankan expatriates to their relatives, while dollar selling also increased as exporters paid bonuses to their employees until end of the festival season last week.

Those inflows have helped ease the depreciation pressure seen in the early part of the year.

Sri Lanka's main stock index was down 0.1 percent, or 5.87 points, at 6,166.90 as of 0624 GMT, with the market turnover at 780.8 million rupees ($5.98 million), with 21.4 million shares traded. ($1 = 130.6250 Sri Lanka Rupees).

Source;- in.reuters.com

HC raps ITAT for extending stay on tax demand beyond period of 365 days; orders for expedite disposa

IT : In view of third proviso to section 254(2A) substituted by Finance Act, 2008, with effect from 1-10-2008, Tribunal cannot extend stay beyond period of 365 days from date of first order of stay, but assessee can file a writ petition in High Court asking for stay and section 254(2A) does not prohibit/bar High Court from granting stay of recovery

Exemption on consignment not allowed as agent never unloaded goods and sold entire goods in one lot

CST & VAT : Where assessee claimed exemption on consignment sales made through its Bombay agent and Assessing Authority disallowed claim on plea that Bombay agent never unloaded goods that were dispatched by assessee and he had sold entire goods in one lot within a couple of days to one buyer, since Assessing Authority had not held an enquiry as to individual transactions, matter was sent back to him for fresh consideration

Assessee couldn't seek complete stay on tax demand even when it had strong case in its favour; rules

IT: Where contention of revenue that in case a person was seeking exemption under section 11 then benefit of section 10 was not available, was prima facie negatived, a complete stay on tax attributable to income excluded under section 10 was unexceptionable

Assessee was liable to VAT on Rent as it accepted regular sums from tenants and latter wasn’t proved

CST & VAT : When assessee accepted regular payments from user of property, there was implied tenancy and amounts received were liable to tax; for non-taxation, it is on assessee to prove that tenant was a trespasser and sums received were damages in form of mesne profits.

Higher salary bill couldn't be disallowed on pretext of odd trend if it was genuinely incurred for b

IT-I : Where assessee claimed deduction of higher salary expenditure on account of change in business profile, since said claim was supported by necessary statements and vouchers, disallowance of a part of said expenditure on basis of percentage of salary expenditure claimed on domestic turnover in earlier year, could not be sustained

HC has no power to change findings of fact recorded by the Tribunal

Excise & Customs : High Court has no power to make endeavour to record different fact findings, even prima facie, from that recorded in Tribunal order

Judiciary denies to pardon consultant's laxity which caused delay in filing of appeal

Excise & Customs : Delay in filing appeal is condonable where consultant, though instructed to file separate appeals for buyer and seller arising from common cause, failed to file separate appeal in time on behalf of assessee-buyer

Interest income couldn't be adjusted with pre-operative exp. if investment had no nexus with busines

IT: Where there was no inextricable link between investment and project, interest income on said investment could not be permitted to be adjusted against pre-operative expenses in respect of said project

ITAT set aside TP adjustments as functionally inappropriate comparables were selected by TPO

IT/ILT : Wherein transfer pricing proceedings, TPO made certain adjustment to assessee's ALP in respect of import of traded goods, in view of fact that some of comparables selected by TPO were inappropriate on account of functional difference and, moreover, after excluding certain unrelated expenses such as depreciation on let out building, write off of fixed assets etc., assessee's operating margin was higher than that of remaining comparable adopted by TPO, impugned adjustment made to assessee

Sec. 27 of customs Act isn't applicable for refund of anti-dumping duty

Customs : Sections 9A and 9AA of Customs Tariff Act are a complete code for refund of anti-dumping duty, section 9A(8) ibid read with section 27 of Customs Act, 1962 has extremely restricted application and can be applied only for manner and time-limit for refund until framing of rules under section 9AA(2) ibid.

SAT remanded matter to pass a fresh order as both parties pleaded for inclusion of additional docs o

SEBI : Where penalty was imposed upon appellant for violation of PIT Regulations and parties pleaded for remand of case to Adjudicating Officer for considering some documents on record, matter was to be remanded to Adjudicating Officer for passing fresh order on merits

ITAT set aside TP adjustments functionally inappropriate comparables were selected by TPO

IT/ILT : Wherein transfer pricing proceedings, TPO made certain adjustment to assessee's ALP in respect of import of traded goods, in view of fact that some of comparables selected by TPO were inappropriate on account of functional difference and, moreover, after excluding certain unrelated expenses such as depreciation on let out building, write off of fixed assets etc., assessee's operating margin was higher than that of remaining comparable adopted by TPO, impugned adjustment made to assessee

No depreciation on development of roads/highways on BOT basis; development exp. to be amortized - CB

IT : Section 119, Read With Section 32, of The Income-Tax Act, 1961 - Income-Tax Authorities - Instructions to Subordinate Authorities – Clarification On treatment of Expenditure Incurred for Development of Roads/Highways in Bot Agreements

Govt. notifies revised Form 'A' for 8% savings (taxable) bonds, 2003

IT : 8% Savings (Taxable) Bonds, 2003 - Amendment in Paragraph 9

RBI bans repayment of domestic loans through ECBs

BANKING/FEMA/ILT : Fund/Non-Fund Based Credit Facilities to Overseas Joint Ventures/Wholly Owned Subsidiaries/Wholly Owned Step-Down Subsidiaries of Indian Companies

El Nino Likely To Reduce Farm Incomes And Wheat Exports

All the climate models now show an El Nino pattern is likely this year, with six of the seven global models predicting the threshold will be reached as early as July.

The Australian Bureau of Meteorology says it's based on warmer temperatures in the Pacific Ocean along the equator.

El Ninos tend to bring hotter and drier weather to eastern Australia.Seventy per cent of the El Nino events in the past century have resulted in drought over Australia, especially when combined with a positive Indian Ocean Dipole, which is also predicted for early spring.

Luke Matthews, agricultural commodity researcher with the Commonwealth Bank, says it's likely to reduce farm output and exports this year, with wheat crops in eastern Australia worst affected.

Since 1970, none of the 11 El Nino events have produced bumper grain crops.

"Specifically for wheat yields across eastern states; what we see is that in eight of 11 of those El Ninos, yields have fallen by at least 15 per cent.

"So there is a significant chance that if we have an El Nino, we'll see disappointing wheat crops across the east coast."

Mr Matthews says it's different for Western and South Australia, where there is no consistent correlation between El Nino and low wheat yields.

He hopes there won't be an El Nino, and remains optimistic that the recent weeks of autumn rain have set up the soil to grow good crops.

Global wheat prices have fallen in the past week, but Mr Matthews says the price is still around $290 a tonne, which is in the high range, with the unrest in the Black Sea region providing a floor to the price.

The US wheat crop is currently rated as a 'very disappointing 34 per cent good to excellent'.Wheat futures have also fallen off a recent high of 725 US cents a bushel to 680 US cents bushel for July delivery.

Source:- abc.net.au

No sec. 80-IB relief to manufacturer of polyurethane foam as it is specified under prohibited list

IT : Where assessee was engaged in manufacture of polyurethane foam [PT foam] in different shapes of automobile seats and it claimed deduction under section 80-IB contending that PT foam was used by it as a raw material for manufacturing automobile seats and, therefore, end product was automobile seats, since assessee simply produced foam seats and did not undertake any further process to change its original character as PT foam, said item was covered by Entry No. 25 of Eleventh Schedule to Act

ST penalty under sec. 80 couldn’t be waived off if extended period was validly invoked

Service Tax : Confirmation of service tax demand by invoking extended period and waiver of penalty by invoking Section 80 cannot go hand in hand; therefore, penalty cannot be waived, if extended period is validly invoked

Bring Indian Investments To Boost Exports: Cpd

The Centre for Policy Dialogue organised a talk on trade between India and Bangladesh on Tuesday.The institution also recommended infrastructural improvements in the land ports and removing India’s non-tariff barriers on export to improve trade.

State Minister for Foreign Affairs Shahriar Alam was the chief guest at the event.CPD Executive Director Mostafizur Rahman, who presented the keynote paper, said luring in Indian investments to the sectors which export to the country was crucial for facilitating trade between the countries.

“Trade barriers have to be removed if we want to attract this investment,” he said.But he said India’s duty-free access of readymade garment products for Bangladesh would not have a big impact on export.

“Bangladesh will also have to take some major steps to relax trade barriers.”Rahman said 90 percent of the trade with India was done through land ports. “We have not done the kind of development required to handle such a large flow of trade,” he said.

He recommended improvement of land port infrastructures, increasing warehouse facilities, setting up cold storages and laboratories and digitalisation of import-export documents.

“These things will reduce the costs of trade and increase Bangladesh’s trade capacity in the Indian market. These things are also important for import, because they affect the costs of both,” he said.

CPD Honorary Fellow Debapriya Bhattacharya said Bangladesh had been unable to make use of the facilities given by India because of lack of effort, continuity and coordination within the government.

Bangladeshi businesses need 21 pieces of documentation to export to the European Union while for India they need 75.

Former FBCCI president Abdul Awal Mintoo said Bangladesh would have to diversify its export goods and improve their quality to capture the market.

India-Bangladesh Chamber of Commerce and Industries President Abdul Matlub Ahmed said many Indian investors wanted to come to Bangladesh but uncertainty over getting land, gas and power connections held them back.

State Minister Shahriar Alam said the government had taken several initiatives to bolster trade with India, including the ongoing effort to open two deputy high commissions, one at Guwahati in Assam and another in Chennai.

“These two deputy high commissions are awaiting Indian government approval,” he said.“Also, we are trying to launch two more sets of trains and container trains. Hopefully in the future more initiatives will be taken to increase communications with India, which will benefit both the countries in trade and other issues,” he said.

Source:- bdnews24.com

HC marked power tariff concession as revenue receipt as it was contingent to commencement of product

IT : Where grant of subsidy was contingent upon commencement of production, same had to be treated as revenue receipt

HC sets aside Tribunal's order as it dismissed assessee's appeal for failure of other party to make

Excise & Customs : Where Tribunal order had directed dismissal of assessee's appeal in event of not making of pre-deposit by other party, such order was set aside/modified, as assessee cannot be penalized for fault of other parties

Pak Says Import Bans To Go After India Eases Subsidies

Pakistan has said it will allow import of all items from India once the ongoing election process in the country is over and New Delhi is in a position to implement the “arrangement” for reducing subsidies on some items of export interest to Pakistan.

“Early this year both countries agreed on an arrangement under which India would reduce subsidies on items that can be exported by Pakistan. But it could not be implemented as the model code of conduct came into play,” the Pakistani High Commissioner to India Abdul Basit said in an interaction with members of the Indian Women's Press Corps on Wednesday.

Basit said once the new Government is in place, the whole issue could be reconsidered.Extending India non-discriminatory market access, which basically means allowing all Indian items to be sold in Pakistan, is a key condition that New Delhi has laid down before Islamabad for re-starting the bilateral trade dialogue that has been stalled for the past year. Pakistan disallows 1,209 items from India.

India, on the other hand, allows import of all items from its neighbour, but Pakistan alleges that there were a number of non-tariff barriers that impeded imports.

“There are four sectors in Pakistan, namely, pharmaceuticals, agriculture, automobile and textiles, that are apprehensive about competing with India, " the High Commissioner said.

Source:- thehindubusinessline.com

Ls Polls: Cash Restrictions To Dent India’S Gold Imports

India's gold imports in April and May could be less than half of arrivals in March as restrictions on the movement of cash during general elections dent the buying power of consumer’s jewellery industry officials said.

Lower imports by the world's No.2 buyer of gold after China could hurt a recovery in global prices of the precious metal after a sharp 28 percent drop last year.

"Indian demand for gold is lower as it is difficult for consumers to carry cash given election-related curbs. They are resisting unnecessary buying at the moment," said Bachhraj Bamalwa, Director with All India Gems and Jewellery Trade Federation (GJF), which groups more than 300,000 jewellers.

Gold arrivals in both April and May could plunge to 20 tonnes from March imports of 50 tonnes, Bamalwa said.

To guard against bribes or vote buying during the ongoing elections the Election Commission has made it mandatory for individuals carrying more than 50,000 rupees ($830) to provide documentation, such as a proof of identity and an explanation for the source of funds.

For jewellers, the cap is 200,000 rupees in cash. This has hit jewellery sales, which have already been squeezed by a 10 percent gold import duty imposed last year to reign in India's ballooning current account deficit.

Rural buyers, who account for about 70 percent of India's gold demand pay in cash for jewellery as they have limited access to banking facilities like cheques and credit cards.

"The (Income Tax) department is very strict on the movement of cash and has opened a 24x7 call centre to receive complaints on violations, so people are scared to carry cash or gold," said Kumar Jain, vice-president with Mumbai Jewellers Association.

In previous elections, political workers suspected of trying to bribe voters were caught with suitcases packed with cash and stowed in car trunks, ambulances and even hearses.

The ongoing elections in India started on April 7 and will continue till May 12. Results will be announced on May 16.

Jewellers are unwilling to transport huge stock and cash due to the curbs, GJF's Bamalwa said, adding that about 58 kilograms of legal gold was seized by income tax officials in the western state of Maharashtra earlier this month.

"Seizures of legal gold are happening everywhere ... government officials are harassing jewellers with legal gold in the name of elections," Bamalwa said.

Tighter supply of gold as the wedding season peaks next month could further boost premiums from their current two-month high of $89 an ounce in India.

"There will be wedding season and Akshaya Tritiya demand in May, but supplies won't suffice. We may see high premiums till May, after that it may cool down," said a senior official with a private bank, which imports gold.

Gold is a popular gift at weddings in India. Akshaya Tritiya, which is on May 2 this year, is one of the days considered auspicious according to the Hindu calendar for gold purchases.

India's overseas purchases of gold may return to the 50-tonne mark only after June and hold steady thereafter until import curbs such as the so-called 80/20 rule according to which a fifth of all shipments should be re-exported as finished product are eased, industry sources said.

Prior to the curbs, India on average imported about 80 tonnes per month. "The government may consider partial lifting of restrictions like relaxation of the 80/20 rule ... but they won't do anything in a hurry as it will be very harsh for the current account deficit," said Surendra Mehta, secretary general of India Bullion and Jewellers Association, which controls 70 percent of the imports by its members.

Source:- post.jagran.com

Rupee Trading Weak At 61.14 On Month-End Dollar Demand

The rupee was trading weak by 38 paise at 61.14 per dollar at 1.39 p.m. local time on good demand for greenback from banks and importers despite weakness of dollar in the overseas market.

The domestic unit resumed weak at 60.88 per dollar against the last closing level of 60.76 per dollar at the Interbank Foreign Exchange (Forex) market.

It hovered in a range of 60.87-61.19 per dollar during the afternoon trade.

Analysts believe that the Indian currency is likely to trade in the range of 60-61 over the next two weeks.

FII inflows

A slowdown in capital inflows into the Indian markets has also been cited as the reason for the rupee’s fall.

Abhishek Goenka, Founder & CEO, India Forex Advisors, said: “The sluggish pace of FII flows is seen eating away the gains in the domestic currency. The pace of FII flows in the Indian markets has dramatically reduced. From the humungous inflows of $5.17 billion in the previous month, the Indian markets have been able to get only $1.31 billion this month till now with the month-end inching nearer.”

Call rates, G-Secs

The overnight call money rate (the rate at which banks borrow money from each other to overcome short-term liquidity mismatches) opened higher at 8.90 per cent against the previous close of 8 per cent.

The yield on 10-year benchmark 8.83 per cent bond, maturing in 2023, opened higher at 8.86 per cent against the previous close of 8.85 per cent. Prices fell to Rs. 99.86 from Rs. 99.83. Bond yields and prices move in the opposite direction.

Source:- thehindubusinessline.com

Appeal with ITAT is maintainable if an order of refund pursuant to order of CIT(A) wasn't followed b

IT: Where Commissioner (Appeals) deleted disallowance made by Assessing Officer and thereupon Assessing Officer passed an order on assessee granting refund, but no order for payment of interest under section 244(1A) on refund amount was passed and assessee aggrieved by order omitting to grant interest preferred appeal before Commissioner (Appeals), said appeal was maintainable under section 246

Best judgment assessment can’t be challenged unless it was not proved as best judgment of revenue of

CST & VAT : Best judgment assessment has to be to best of judgment of Revenue Officers and can be challenged only if it is proved that that it was not to best of judgment of 'Revenue Officer'.

Deemed dividend arises as assessee failed to show that sum was advanced in course of money lending b

IT: Where assessee had failed to establish that substantial part of business of company was money lending and loans and advances received by assessee were in ordinary course of money lending business, same were to be treated as deemed dividend under section 2(22)(e)

No VAT on basis of provisional invoices of LPG when its price subsequently fixed by Petroleum Planni

CST & VAT : Where assessee-company was engaged in manufacture of LPG and it at time of supply of LPG to oil companies issued provisional invoices and after receiving information from Petroleum Planning and Analysis Cell [PPAC] about final price of LPG fixed by it issued final invoices by issuing credit or debit notes, sale price of LPG in case of assessee would be price fixed by it after deduction in primary invoice on basis of credit notes issued subsequently

HC affirms ITAT's action of remanding case to decide whether exp. was 'deferred revenue exp'

IT: Where Tribunal remitted matter to Assessing Officer to consider issue with respect to addition of 'water and service charges' after verifying facts as to whether any deduction was allowed in earlier years on basis that same was deferred revenue expenditure, no interference was called for

Pre-deposit order of Tribunal was revived on vacation of interim stay by HC on such order

Central Excise : Where High Court had vacated interim stay over pre-deposit order of Tribunal, said pre-deposit order of Tribunal stood revived and was to be complied with

Participation in reassessment proceeding ratified procedural lapse and validated notice served on as

IT : Where notice under section 148 was served on assessee-company at its registered office though not received by an authorised person, assessee, by participating voluntarily in proceedings, had rectified procedural irregularity

No. hefty deposit under Gujarat VAT Act merely if assessee had dealt with persons whose registration

CST & VAT : Though power to impose security is available in terms of section 28(2) of Gujarat VAT Act, however, it cannot be too harsh and cannot be imposed merely because assessee had business with some dealers whose registrations were cancelled

SC upheld order of DRT dismissing sale of secured asset by creditors as it hadn't been conducted pro

SARFAESI: Where sale did not take place pursuant to a notice issued under Rules 8 and 9 of Security Rules, 2002, read along with section 13(8), for reasons which could not be solely attributable to borrower, secured creditor could not effect sale or transfer of secured asset on any subsequent date by relying upon notice issued earlier

Presumptive taxation under sec. 44DA couldn't invoked if services were squarely covered by sec. 44BB

IT/ILT : Where services rendered by assessee squarely fall within scope of section 44BB, its income would be computed under section 44BB and not section 44DA

India, Bhutan Ink Preliminary Pact For Four Hydropower Projects

In a move that will strengthen the strategic partnership between India and Bhutan, the two countries have signed a preliminary pact for the joint construction of four hydropower projects in the landlocked country that is expected to generate 2,120 megawatts (MW) of electricity, a foreign ministry statement said on Tuesday.

The agreement between Bhutan and India was signed on Monday in Thimphu, the statement said.The largest of the four projects is the 770MW Chamkarchu project; the others include the 600MW Kholongchu hydel power project, the 180MW Bunakha project and the 570MW Wangchu hydel project, the statement said.

“Hydropower cooperation with Bhutan is a classic example of win-win cooperation, providing clean electricity to India, generating export revenues for Bhutan, and further strengthening our bilateral economic linkages,” it said.

Three hydroelectric projects totalling 1,416MW, which includes the 336MW Chukha project, the 60MW Kurichu project, and the 1,020MW Tala project, are already operational in Bhutan and are supplying electricity to India, according to the Indian foreign ministry.

Three others totalling 2,940MW, which include the 1,200MW Punatsangchu-I, the 1,020MW Punatsangchu-II and the 720MW Mangdehchu project that are under construction, and are scheduled to be commissioned by 2018, a foreign ministry official said, requesting anonymity.

Source:- livemint.com

India's Natural Rubber Prices Fall

Natural rubber prices in India, the world's fifth-biggest producer, dropped to their lowest level in more than four years on Monday, following losses in overseas prices and on sluggish demand, three dealers said.

Lower prices would bring down raw material costs for tyre makers, thereby boosting their profitability, as natural rubber makes up more than 40 percent of the cost of a tyre.

The spot price of the most-traded RSS-4 rubber (ribbed, smoked sheet) at the Kottayam market in the top producing Kerala state fell by 300 rupees to 14,100 rupees per 100 kg on Monday, the lowest level since February 20, 2010.

Benchmark Tokyo rubber futures sank to their weakest in more than four years on Monday amid nagging concerns over growth in China, while rising supply could dictate prices of other soft commodities this week.

"Tyre companies are consistently importing natural rubber as it is cheaper in the world market. Higher imports are putting pressure on local prices," George Valy, president of the Indian Rubber Dealers' Federation, told Reuters. CEAT Ltd, JK Tyre and Industries Ltd, MRF Ltd, Balkrishna Industries Ltd and Apollo Tyres Ltd are likely to benefit from the lower prices.

Source:- brecorder.com