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

Limitation period for sec. 154 rectification begins when AO passes original order and not consequent

IT: For purpose of rectification under section 154, limitation starts from date on which original assessment order is passed by subordinate authority and not date when he had passed consequential order in terms of directions issued by appellate authority in remand

Before initiating reassessment AO must dispose of preliminary objection of assessee by passing speak

IT : Before initiating reassessment proceeding, it is obligatory for Assessing Officer to dispose of assessee's preliminary objection by passing a speaking order only

SC remanded case as ruling relied upon by ITAT was overruled yet it was not brought to notice of HC

Cenvat Credit : Where Tribunal had relied upon its own order, which had been overruled by its larger bench and said aspect was not brought to notice of High Court while passing order, matter was required to be remanded back to High Court

Winding-up petition against Co. admitted as disputes raised by it were mere tricks to avoid payment

CL : Where disputes raised by company were mere ruse to avoid paying amount due, company would be deemed to be unable to pay its debt and would be liable for winding up

DRP isn’t empowered either to set aside proposed variation or issue directions to AO for further enq

IT/ILT-I : In terms of section 144C(5), DRP has no power to set aside any proposed variation or issue any direction for further enquiry and passing of assessment order

Erecting road, bus shelters and so forth as part of advertisement business couldn’t be termed as inf

IT: Where assessee - advertising-company had developed existing road median, erected bus-shelters and light poles for its advertisement business, activities indulged by assessee-company were part of its normal activities of advertising and publicity rather than one of infrastructure development and therefore, was not eligible for deduction under section 80-IA(4)

Delay in filing of appeal due to failure of AO to hand over his charge to successor is condonable

IT : Where delay in filing appeal by Revenue took place due to unusual circumstances of failure on part of concerned Assessing Officer to handover charge to successor officer, delay should be condoned

Revenue to give priority to stay request; HC raps revenue for enforcing recovery during pendency of

Excise & Customs : Where stay application remains pending before Tribunal for no fault of assessee, department cannot enforce recovery; Tribunal was directed to give priority to hear applications for waiver of deposit

ITAT had to affirm finding of CIT(A) on determination of ALP when revenue failed to controvert it

IT : Where Tribunal confirmed findings of lower appellate authority on point of determination of arm's length price and Department was not able to controvert those findings said order needed no interference

Payments of commission at higher rate to son of partner without business expediency attracts sec. 40

IT : Where there was no commercial consideration or business expediency for payment of, excessive commission, payment of commission should be restricted to sum as allowed to other workers

No reassessment to restrict sec. 80-IB relief as it was allowed after detailed verification during a

IT : Reassessment notice was bad in law where it was based upon allowance of excessive deduction under section 80-IB but facts revealed that claim for deduction under section 80-IB was allowed in original assessment after consideration

No penalty if payment of taxes was delayed by assessee due to delay in passing of stay order by Trib

CST & VAT : Where assessee preferred second appeal on 24-7-1997 alongwith stay application and thereupon on 4-11-1997 Tribunal passed an interim order staying realisation of disputed amount of tax up to 80 per cent and in meantime Assessing Authority by his order dated 8-9-1997 imposed penalty on assessee under section 15A(1)(e) of U.P. Trade Tax Act, 1948 taking view that assessee had not deposited tax within time, since delay in passing of stay order was attributable to Tribunal, imposition of

No reassessment to make addition of CENVAT balance lying with department if it was disclosed during

IT: Where assessee had in scrutiny assessment disclosed facts that sales were made exclusive of excise duty/Modvat credit balance lying with excise department and excluded such amount from computation of income, initiation of reassessment after expiry of 4 years on ground that income escaped assessment was not proper

Cos shall furnish 'NOC' from FMC for usage of "Commodity Exchange" in its name: MCA

COMPANIES ACT, 2013 : Section 4 of The Companies Act, 2013 - Memorandum - Clarification on Use of The Word "Commodity Exchange" In a Company

CAT grants immunity from deposit of 90% of penalty sum as it had granted exemption in a similar case

Competition Act: Appellant cement manufacturer found guilty of contravention of section 3 entitled to stay of penalty on condition that it deposit 10 per cent of penalty ordered by CCI based on similar order passed against other cement manufacturers before Competition Appellate Tribunal

Training in respect of statutory compliances of export/import amounts to vocational training; exempt

Service Tax : Training relating to various procedures and statutory compliances to be made in relation to export of goods amounts to 'vocational training' and exempt from service tax

HC affirms payment of 20% of tax demand and guarantee for balance sums during pendency of appeal of

IT : Where during pendency of appellate proceedings, Tribunal directed to deposit only 20 per cent of tax demanded and revenue was willing to accept a corporate guarantee for balance amount, impugned direction issued by Tribunal did not require any interference

Retail Onion Prices Soar To Double Of Wholesale Rates

The large difference between wholesale and retail prices of onions in markets such as Delhi, Indore, Chandigarh and Mumbai has taken the government by surprise despite several steps announced by it, including an advisory to states to crack down on hoarding and speculation.

Data available with the government showed that last week, the key kitchen ingredient was available for Rs 12.75 a kg in the wholesale market in Delhi. But the retail price was Rs 24, nearly twice the level. "It is quite surprising that the price doubles from the time it leaves Azadpur mandi. Middlemen seem to be charging a huge premium," said an official.

In fact, official data showed that Delhi is seeing unusually price behaviour, although there is pressure in other markets such as Mumbai too, where the difference is a little under Rs 10 a kg. But in Kolkata, the difference between the wholesale and retail price is Rs 5 with households getting onions for Rs 24 a kg, the same as Delhi. Similarly, in Agra the difference is Rs 3 a kg, while in Hyderabad and Bangalore the gap is just Rs 2 a kg.

A labourer weighs a sack of onions in a wholesale market in Hyderabad. (AFP photo) "There is an element of speculation and expectation that there will be a further spurt due to shortages. This needs to be handled," added an official, pointing to the spurt in retail prices in cities such as Bangalore, Vishakapatnam, Chennai, Indore and Bhubaneswar, where prices rose by up to Rs 12 a kg between May 27 and June 27.

In Delhi, there was a moderation of Re 1 a kg in retail prices due to higher supplies by Nafed, but the wide gap in retail and wholesale rates is expected to be the subject of inter-ministerial discussions to crack down on the possibility of artificial jacking up of prices.

A vendor selling onions and other vegetables in a makeshift retail shop in Kolkata. (TOI file photo)

With monsoon rains expected to be lower than normal levels, the government is monitoring the prices of 22 essential commodities with onions, potatoes, milk, pulses and non-basmati rice coming under special focus. In Delhi, the Centre had ordered a special drive to ensure that there was adequate supply of onions and potatoes at reasonable rates.

Finance minister Arun Jaitley is scheduled to meet state food and consumer affairs ministers this week, where the issue of rise in food prices will be discussed.

While retail prices are holding up, officials said that there is a possibility of an increase in July when supplies from Rajasthan and Nashik slow down. Sources said that Delhi government has asked Nafed to supply onions and potatoes to meet possible shortages.

Source:- timesofindia.indiatimes.com

Sugar Prices Jump After Govt Raised Import Duty To 40%

Exactly a week ago, last Monday, sugar prices jumped by Rs 30-40 a quintal in the wholesale spot market, after the Centre’s decision to raise import duty on sugar to 40 per cent. Likewise, naka prices and mill tender rates also shot up by Rs 20-50 a quintal. The volume also increased as retailers came forward with fresh orders in the markets and stockists made fresh commitments with producers. Prices in the futures market went up by Rs 50-60, crossing the Rs 3,100 level.

The new government hopes that surplus stocks will help stabilise rates and there is enough surplus. India does not depend on imports to meet its requirement of the sugar and the proposed duty should have no impact on prices, union food minister Ram Vilas Paswan said. The Centre is also doing its bit to give additional interest-free loans to sugar mills to clear dues to cane farmers, the crisis facing millers in Uttar Pradesh was due to policies followed by the state government.

Following the recent price rise of Rs 2-3/kg in the national capital, sugar is available at Rs 35-36/kg and Rs 40-41/kg in wholesale and retail outlets, respectively. Cane arrears have increased from Rs 11,000 crore to Rs 13,350 crore across the country. Mills are on the verge of shutdown due to many reasons. According to government officials, the decision aimed at ensuring that mills are able to clear cane arrears to growers.

To improve the cash flow of the mills, the Centre has simultaneously decided to give them upto Rs 4,400 crore in extra-interest free loan, hike import duty to 40 per cent from 15 per cent, extend support subsidy of Rs 3,300 per tonne till September and raise mandatory ethanol blending with petrol to 10 per cent from the existing 5 per cent. The Centre's decision was to protect farmers by ensuring they get payments for the sugarcane sold to factories.

The decision of the Centre to allow export subsidy on sugar till September end only, has, in turn, left the industry in the lurch as prices of the commodity are expected to plummet during the Diwali festival. The Union food minister’s decision is not clear as he has not stated whether the export subsidy will continue after September or not.

Interestingly, the former union agriculture minister Sharad Pawar (in the UPA-II regime) had stipulated the time limit for export subsidy till September 2015. It had also been decided that the subsidy would be reviewed in lieu of the international market rate of sugar and the value of the dollar. By contrast, the high-level committee under the present union food minister Ramvilas Paswan has ignored the formula to calculate the subsidy amount.

Paswan on his parts, attributed the recent spurt in price of essential commodities mostly to speculation, hoarding and creation of a fear psychosis due to low rains.

While the Narendra Modi government promises steps against speculators, black marketers and hoarders, there is no doubt whatsoever that the weakest start to India’s monsoon season in at least five years is delaying planting of crops, threatening to push up food prices in India. According to the latest estimate on the of the India Meteorological Department (IMD) rainfall is 38 per cent below a 50-year average since June 1, the least since 2009. According IMD, the monsoon, stalled over India’s western and central regions since June 15, may not progress further before the beginning of July.

With more than 80 per cent of India getting limited rain, delayed sowing may lead to a decline in crop areas and yield. IMD however given some hopes that rainfall is likely to improve substantially in July and August, though the monsoon has been delayed. While stating the monsoon was expected to improve after July 7, agriculture minister Radha Mohan Singh said that the government was fully prepared to handle the situation in case of poor rainfall.

Source:- mydigitalfc.com

Steel Makers Want Solid Support To Break Shackles Of Slowdown

Industry seeks conducive policy, input security, faster green clearances, infra status Indian steel industry is seeing tumultuous times since the past few years due to slowdown in key steel consuming sectors including construction and automobile.

Iron ore mining ban in various states and long delays in several greenfield projects due to slow regulatory and environmental clearances have compounded the woes.

The previous UPA government had set up a target of achieving 300 million tonne (mt) of step production capacity by 2025. Most industry players believe that in order to achieve this target, there is an immediate need for a conducive policy regime, easy access to funds, raw material linkages and faster clearances for greenfield projects.

Steel is one of the sectors that has been on the radar of Narendra Modi even before he became PM. His criticism of iron ore exports and steel imports had instilled hope in the battered sector for better times. The industry mainly wants finance minister Arun Jaitley to ensure raw material security for the sector and complete removal of the current 2.5% import duty on iron ore.

There has been severe ore shortage in the country after the Supreme Court-appointed Shah panel revealed rampant illegal mining in Karnataka, Odisha and Goa, leading to a mining ban in these three states.

"Duties on import of all raw materials should be made nil, so as to benefit end-user industries." Dilip Oommen, managing director and chief executive officer of Essar Steel, said.

Ashima Tyagi, researcher at Infraline Research, believes that the government should prioritise allotment of resources, especially iron ore. "An iron ore utilisation policy at the central level – on the lines of the gas policy – will go a long way," she said.

Industry also expects that export duty of 30% on iron ore lumps and fines would be maintained. Associated Chambers of Commerce and Industry of India (Assocham) has even requested the commerce ministry to impose 30% duty on iron ore pellet exports, arguing that such exports are draining India's mineral wealth.

However, most industry participants dna spoke to vehemently opposed this move."The existing 5% export duty for pellets itself is not justified as it involves value-addition. The country currently has nearly 62 mt of pellet capacity and only 30 mt is operating. It is a myth that steel industry is demanding such increase in export duty of pellets," Oommen said.

Worried over growing imports from Japan and Korea with whom India has free trade agreements (FTAs), industry members demanded that steel products should come under negative list so as to protect the interest of local firms.

"While iron ore prices are increasing domestically, they are going down globally. With FTAs imports coming at much faster rate, this is not a level-playing field. The government needs to revisit FTA scheme. For Japan and Korea, interest costs are much cheaper and their raw material cost is also going down," Oommen said.

Easier access to finance is another immediate requirement of the sector."From the industry point of view, the entire industrial sector should be provided proper loans by Indian banks and govt itself which would stop them from going abroad in search of cheaper and heavier loans," Prakash Duvvuri, head of research at Ore Team, said. Instead of incentivising the products or services, the loans structure should be eased to fit into the pockets of the industrialists, he said.

"Steel is a capital-intensive business. So we propose the government to set up financial institution on the lines of Power Finance Corp that will provide fund for steel projects at lower interest rates and for longer tenures," Oommen said.

Land acquisition and environmental clearances has been a key impediment for steel manufacturers for almost a decade now.

"Environmental clearance must be given in time-bound manner, and there needs to be enough justification for any denial," RK Goyal, managing director of Kalyani Steels, said. Concurring with him, Oommen said there was an immediate need for streamlining project approvals.

"Single window clearance can be implemented for time-bound clearance of files," he said.One of the best ways to improve steel demand in the country which is currently way behind global standards of per capita consumption is to push infrastructure growth in the country. Fast tracking the processing of big projects like high-speed railway, freight corridor, new cities and towns, rural development, etc could go long way in fueling steel demand.

Goyal said the government could promote low-cost housing projects through budget, which would not only aim at homeless people but would also spur domestic steel consumption."The sector needs to be given an infrastructure sector status as it is a key for faster development of the nation," Oommen said.

Apart from this, steel exports need to be encouraged especially while global demand is slowly picking up. "The government can give focused market and product benefit. Today only 2% of exports are through focused exports. The government can provide duty drawback for specific products like flat products to enhance market for focused products," Oommen said.GST implementation, zero-import duty for plant and machinery are some of the key demands of steel.

Source:- dnaindia.com

Sec. 10(23AAA): Only income from investment is taxable and not whole investment made in violation of

IT: Where Employees Welfare Fund was approved by Commissioner, only income portion from investment made in violation of section 11(5) and not whole of investment, would be liable to tax

Cotton Textile Industry Has Potential To Invest Upto Rs 4,000 Crore

The cotton textile industry has a potential to invest up to Rs 4,000 crore leading to generation of 50,000 new jobs if the government accepts the sector's demands in the forthcoming Budget, a top industry official has said.

"We have urged the government that Technology Upgradation Fund Scheme (TUFS) should be extended during the blackout period from June 29, 2010 to April 27, 2011, when the scheme was suspended to all cases which have been left out for no fault of the industry," Cotton Textiles Export Promotion Council of India (Texprocil) Deputy Chairman R K Dalmia told PTI here.

Dalmia urged Textile Minister Santosh Kumar Gangwar to restore the benefit as investments made during the 18 month gap are eligible investments before and after extension of the TUFS.

Should the Rs 1,000 crore of TUFS money surrendered is given back to the textile industry, we can assure that it would help the industry invest up to Rs 4,000 crore and kickstart the process of capacity creation leading to creation of 50,000 new jobs, he said.

Texprocil, a government constituted body, is seeking duty cut on textile machinery and extending interest rate subvention of three per cent on rupee export credit to cotton textile exports to mitigate high cost of export finance.

"We would have performed even better but for certain impediments we face on account of high tariffs imposed by some countries and discriminatory Free Trade Agreements (FTA's) signed by others," Texprocil Executive Director Siddhartha Rajagopal said.

Source:- economictimes.indiatimes.com

India Raises Minimum Price For Potato Exports

The Indian government has set a minimum export price (MEP) on potato exports in a bid to secure supplies to the domestic market and contain inflation.

On Thursday, the Ministry of Commerce and Industry announced a change in policy for export of the tuber, setting an MEP of US$450 per metric ton (MT).

Click here to see the notification from Director General of Foreign Trade, Pravir Kumar.

This comes at a time when the cost of essential food staples like potatoes and onions have been steadily rising in Indian states.

Price have reportedly risen by INR22-30 (US$0.37-0.50) per kg (2.2lbs) across several states and in the nation’s capital.

Key potato producing states include Uttar Pradesh, West Bengal, Punjab and Uttaranchal, and India mainly exports to the overseas markets of Nepal, Russia, Kuwait, Mauritius and Sri Lanka.

Earlier this year, export restrictions were lifted on onions following complaints from growers, however, on June 17 the government set another MEP of US$300 on the bulbous vegetable.

Source:- freshfruitportal.com

Japan, S Korea, India, China And Singapore Major Export Markets For Qatar

Japan, South Korea, India, China and Singapore are the major export markets for Qatar with exports to these five Asian countries totalling QR27.9bn as of May, new data show.

Japan accounted for QR9.28bn of Qatari exports while South Korea received QR7.28bn worth Qatari produce as of last month, according to the Ministry of Development Planning & Statistics (MDP&S).

Qatari exports to India accounted for QR5.67bn, China QR3.04bn and Singapore QR2.64bn.

All these countries import significant volumes of Qatar’s hydrocarbon products.

The top five import markets for Qatar are China (QR0.91bn), US (QR0.87bn), UAE (QR0.77bn), Germany (0.65bn) and UK (QR0.43bn).

Qatar’s three major export commodities are petroleum gases and other gaseous hydrocarbons, petroleum oil and oil obtained from bituminous minerals (crude as well as non-crude).

Major import commodities include motor cars and other motor vehicles, iron ores and concentrates and aircraft spare parts.

A recent Qatar Consumer Confidence Index (CCI) released by the Ministry of Development Planning & Statistics showed Qatar’s economic development that supports private sector in development projects, consequent job opportunities and better income and allowances, led the country reporting higher consumer confidence in the first quarter of this year.

The report showed that 46.7% of households felt that their financial situation improved over the past 12 months compared to 47.4% in December 2013 survey results.

Also 45.7% of households felt their financial situation was the same as 12 months before compared to 37.8% in December 2013.

Qatar is expected to have “solid” economic growth in 2014 and 2015, driven by the non-hydrocarbon sector owing to accelerated investment spending and population growth, the Ministry of Development Planning and Statistics (MDP&S) said in another report.

The country’s real GDP (adjusted for inflation) is slated to grow 6.3% this year from 6.5% in 2013, and 7.8% in 2015, said the Qatar Economic Outlook (QEO) 2014-15, which was released yesterday by MDP&S.The outlook for 2014–2015 is generally favourable, but subject to low-probability, high-impact downside risks, according to QEO.

Source:- gulf-times.com

Govt May Cut 2% Import Duty On Gold In Budget: Bank Of America Merrill Lynch

The union government is expected to cut two per cent import duty in gold in the forthcoming budget, as local jewellers run out of inventory, a leading US brokerage said.



"We expect a two per cent cut in gold import duty. In our view, the government will, sooner than later, have to withdraw gold import restrictions as local jewellers run out of inventory. The impending drought may also moderate gold import demand," Bank of America Merrill Lynch said in its report.



We expect the current account deficit to widen to 2.6 per cent of GDP in FY15 from 1.7 per cent in FY14 especially as latent demand could lead to a spike in gold import demand, it said.



The March quarter current account deficit came in at $1.3 billion. The net gold imports will increase to $40 billion or 2 per cent of GDP in FY15 from $28.8 billion or 1.5 per cent this past fiscal year. On our part, we never took the shrinkage in the current account deficit from 4.7 per cent of GDP that seriously as it was achieved by these unsustainable curbs in gold imports.



BoAML also expect the RBI to recoup forex at Rs 58/USD levels. After all, Iraq has demonstrated how quickly sentiment can change in the forex market, when import cover is an inadequate eight months.



While advising its clients, the brokerage said its oil strategists expect oil prices to sustain $110+/bbl for now.



This assumes that the ISIS is contained in northern Iraq. It could shoot up to $140/bbl if fighting spills over to the oil fields of the South. Note that $10/bbl rise impacts the current account deficit by 0.4 per cent of GDP, it said.



BoAML also expects some relaxation within the overall $30 billion limit for gilts.



The RBI needs to raise forex reserves to stabilise Indian rupee expectations. At the same time, sovereign wealth funds have not used up their on-tap $10bn limit.

Source:- businesstoday.intoday.in

India Seeks Easier Norms For Entry Of Its Goods In China

Before grabbing China's offer to invest in and help develop India's infrastructure, the Narendra Modi-led government wants to ensure easier norms in return for India to export IT, pharmaceuticals, farm goods, and health and tourism services so that the trade imbalance between the two countries gets reduced.



In response to the five-year trade and economic planning cooperation plan that China submitted to India in February, the new government at the Centre has proposed to raise the country's exports to $95 billion over the next five years from $15 billion at present.



"India-China trade in the next five years must stand at $200 billion, comprising $105 billion worth of imports and $95 billion exports," a government official familiar with the development told ET. China is now India's biggest trading partner but the trade balance is heavily skewed in China's favour.



India has said the trade deficit must be cut to one-fourth, targeting $10 billion by 2020 from close to $36 billion at present. "The only way to cut trade deficit is by asking China to invest in manufacturing activity. Rather than importing, China can manufacture machinery, heavy duty power equipment etc in SEZs (special economic zones), NIMZs (national investment and manufacturing zones) or industrial parks," said the official, who did not wish to be identified.

India seeks easier norms for entry of its goods in China



The Cabinet has already cleared signing of a memorandum of understanding with China for setting up industrial parks in India. The five-year trade and economic planning road map prepared by India after several rounds of interministerial consultations has noted that information technology sector can be a win-win for both economies if China eases its licensing norms to allow participation of Indian companies in local projects.



Pharmaceutical companies, which rank among India's potential strengths in bilateral trade, face registration hurdles in China, where it takes three-five years for registration compared with just three-six months in India.India has also asked China to allow export of buffalo meat to the country.



China had proposed in its five-year plan to enter critical areas including telecom, railways, roads, and nuclear and solar power for investment in India. While China was silent on narrowing the trade deficit, it noted that the gap was on account of the very nature of the two economies, China's being manufacturing-led and India's services-led.



China, which has accumulated over $4 trillion of forex reserves, plans to invest $500 billion overseas in the coming years, it announced in March.



"There is no need to fear investment from China. It just needs to be leveraged well. We need investment in building our roads, railways, manufacturing. Barring the sensitive areas, flow of funds should not be discouraged from China," the official cited earlier said.



Although India has said that it will welcome investment from China in sectors like roads, effluent treatment and railways, the matter is yet to be examined by the ministries of defence and home affairs. China is keen on railways, particularly electrification, high-speed trains, wagons, last-mile connectivity and gauge conversion.



It has also identified sewage treatment and tunnel building among areas where it can offer substantial expertise. China has invested about $0.4 billion in India in the past 14 years, contributing just 0.18% to the overall foreign direct investment in the country.

Source:- economictimes.indiatimes.com

Rupee Up 7 Paise Against Dollar In Early Trade

The rupee strengthened by seven paise to 60.01 against the American currency in early trade today at the Interbank Foreign Exchange market on selling of dollars by exporters and banks.



A higher opening in the domestic equity market and a weak dollar against other currencies overseas on a string of disappointing US data last week also supported the gain in the rupee, forex dealers said.



The rupee had closed six paise higher at 60.08 against the dollar in Friday's trade on fresh selling of the US currency by exporters amid moderate gains in stock markets.



Meanwhile, the benchmark BSE Sensex rose 141.73 points, or 0.56 per cent, to 25,241.65 in early trade today.

Source:- timesofindia.indiatimes.com

Telephone Services availed at corporate office are also eligible for credit

Cenvat Credit : Transportation of executives/employees from residence to corporate office and back is eligible for input service credit

Failure to apply for final decree within 3 years of interim decree would bar banks to recover overdu

CL : Where respondent bank having obtained preliminary decree for recovery of loan amount against petitioner, did not apply for final degree within prescribed period of three years as mentioned in Article 137 of Limitation Act, 1963, there remained no enforceable decree in existence for which any application under section 31A of Recovery of Debts Due to Bank and Financial Institution Act, 1993, could have been filed

ITAT fixes ALP of oil considering Malaysian Oil Board’s rate on date of contract instead of date of

IT/ILT : Where in transfer pricing proceedings, TPO made addition to assessee's ALP in respect of import of crude palm oil by adopting Malaysian Palm Oil Board (MPOB) rate prevailing on invoice date, in view of fact that for all purposes of execution and cancellation, MPOB rates specified on date of contract were applied, which was in accordance with prevalent practice of trade impugned addition deserved to be set aside

ITAT rightly dismissed revenue’s appeal as tax effect was ‘Nil’ even after disallowance due to sec.

IT : Where Tribunal finding that in view of certain deductions available to assessee tax effect in revenue's appeal would be nil, dismissed said appeal relying upon CBDT Instruction No. 5, dated 15-5-2008, order so passed by Tribunal did not require any interference

Cos get more time to align existing employee benefit schemes with ESOP norms of SEBI

SEBI : SEBI Circulars No. CIR/CFD/DIL/3/2013, dated 17-1-2013, CIR/CFD/DIL/7/2013, dated 13-5-2013 and CIR/CFD/POLICY CELL/14/2013, dated 29-11-2013 - Extension of time line for alignment

RBI directs banks to consider Credit Information Reports in their lending decisions

BANKING : Data format for furnishing of credit information to Credit Information Companies and Other Regulatory Measures

Banks to submit monthly data to Credit Information Cos in respect of defaulters with effect from 201

BANKING : Defaulters of Rs. 1 crore and above (Non-suit filed accounts) and wilful defaulters of Rs. 25 lakhs and above (Non-suit filed accounts) - Changes in reporting to Reserve Bank of India (RBI)/Credit Information Companies (CICs)

HC slams revenue for adjusting refund against demand even when it was stayed by Tribunal

Excise & Customs : Where demand of penalty has been stayed by Tribunal, it ceases to be sum payable by assessee and therefore, same cannot be recovered by Tribunal by adjustment of refund due to assessee

Additions for sum offered during survey affirmed as retraction from earlier statement was made witho

IT : Where loose paper found in survey showed receipts in hands of assessee, and assessee admitted same as his undisclosed income but in assessment reverted back from said admission, since he could not furnish evidence to justify his stand, said receipts be treated as undisclosed income of assessee

Acceptance of cash loans from agriculturists living in remote areas won’t be subjected to penalty, r

IT : No penalty for cash loans exceeding Rs. 20,000 from agriculturists living in remote areas when transaction were not doubted

Penalty affirmed as no docs were produced for movement of goods from assessee’s premises to someone

CST & VAT : Where assessee had purchased goods from Vishakapatnam and they were to be delivered in State of Karnataka at premises of assessee, whereas they were delivered at premises of one 'M' and Check Post Officer on checking of goods found that documents produced were not valid documents for transportation of goods from premises of assessee to premises of 'M', levy of penalty upon assessee under section 28A(4) of Karnataka Sales Tax Act, 1957 was justified

ITAT deleted penalty as assessee had duly disclosed income surrendered during search and paid taxes

IT : Where assessee having surrendered certain income in course of search, filed return wherein said amount was duly disclosed and taxes were paid accordingly, there was sufficient compliance of provisions of section 271AAA(2) and, thus, impugned penalty order deserved to be set aside

Parties can’t challenge a valid interim order of arbitrator merely by filing sec. 397 petition

CL: A valid interim order passed by arbitrator cannot be opposed by filing petition under section 397

Room rent and food/beverages charges aren’t included in value of convention services if they are rai

Service-tax : Bills of room rent and food and beverages raised separately cannot be held to be a part of value of convention service

Sec. 69A additions upheld as sums unearthed during search weren’t proved as initial capital of ances

IT : Where assessee had claimed part of a sum unearthed in search as 'initial working capital' by ancestors but could not substantiate said claim, addition to be made; addition to be made also on account of interest on account of re-pawning

Scrutiny notice could be served on representative of assessee if new address of assessee was not mad

IT: In absence of intimation to revenue about change of address, service of notice to assessee's representative, is valid

Assessee couldn’t take credit on basis of unsigned invoices; ITAT orders for partial predeposit

Cenvat Credit : Credit cannot, prima facie, be allowed on unsigned invoices especially when there is no correspondence or certificate from supplier/service provider that said invoices were issued by them

HC quashed penalty on appellant as ED couldn’t corroborate his retracted confession with a substanti

FERA : Penalty imposed upon appellants on basis of their retracted statements which were not corroborated by any substantive evidence suffered from serious legal infirmity

ITAT relied on its earlier order to fix PLI of assessee for TP adjustments

IT/ILT : Where Tribunal in earlier year in assessee's case applied PLI at 7 per cent, on same set of facts, PLI of 7 per cent be applied

Ministry switches over to a new version of Industrial Classification System on lines of internationa

FDI/FEMA/ILT :Switching Over From NIC - 1987 to NIC - 2008

Director's stay in India for 137 days during calendar year 2014 will satisfy residency requirement o

COMPANIES ACT, 2013 : Section 149 of The Companies Act, 2013 - Company to Have Board of Directors - Clarification on Applicability of Requirement for Resident Director

RBI notifies interest rate of 4% for repayment of unclaimed deposits under Depositor's Education Fun

BANKING : Depositor Education and Awareness Fund Scheme, 2014 - Operational Guidelines - Payment of Interest

RBI tweaks asset classification norms for infrastructure Cos

BANKING : Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances - Projects Under Implementation

FinMin extends validity period of concessional excise duty by six months

EXCISE & CUSTOMS LAWS : Section 5A of The Central Excise Act, 1944 - Power to Grant Exemption from Duty of Excise - Exemption to Specified Excisable Goods - Provision of Concessional Rate of Central Excise Duty on Specified Goods - Amendment in Notification No.12/2012-C.E., Dated 17-3-2012

CBEC seeks adherence to judicial discipline by Commissioners in matters relating to refunds

EXCISE & CUSTOMS LAWS : Instructions on Need to Follow Judicial Discipline in Adjudication Proceedings

Govt. notifies revised tax period and registration date to address VAT issues post division of Andhr

CST & VAT/INDIAN ACTS & RULES : Andhra Pradesh Value Added Tax (Amendment) Rules, 2014 - Amendment in Rules 6 and 23

Exp. incurred prior to establishment of business couldn’t be allowed till commencement of business

IT: Where assessee incurred expenditure prior to setting up of its business, no allowance of assessee's claim under section 37(1) or section 32(1) during said period could be made out

Material found during search not sustained in case of searched person, couldn't be used for other pe

IT : Very foundational facts and materials, not sustained in case of searched person, cannot be permitted to be used in case of person other than searched person for alleged undisclosed income and thereby allowing continuation of such proceedings

Royalty payable on materials/finished goods manufactured in India isn’t includible in value of impor

Excise & Customs : Running royalty paid on 'indigenous materials' and 'finished goods made in India' has nothing to do with imported parts, etc., as same is payable even if 100% indigenization is achieved i.e., there are NIL imports; hence, royalty is not includible in value of imported parts, etc

No disallowance of lawful exp. merely due to non-compliance with provisions of Companies Act

IT : The offence or prohibition under law referred to in Explanation to section 37(1) should be judged with reference to the 'purpose' of the expenditure on a standalone basis divorced from the fulfilment or otherwise of the procedural formalities ( for example requirements of Companies Act like Board's consent, general body approval, Central Govt's approval) attached with and necessary for the incurring of such expenditure.

Issue of ‘whether stay order passed by CESTAT is appealable to High Court’ referred to larger bench

Excise & Customs : Issue 'whether an order passed by CESTAT in terms of section 35F of Excise Act or section 129E of Customs Act would be appealable before High Court' was referred to larger bench of High Court

No reassessment to limit sec. 36(1)(viii) deduction if all facts were truly disclosed during assessm

IT-I : Where Assessing Officer completed assessment under section 143(3) allowing assessee's claim for deduction raised under section 36(1)(viii), since there was no failure on part of assessee to disclose fully and truly all material facts at time of assessment, reassessment proceedings could not be initiated after expiry of four years from end of relevant assessment year taking a view that assessee had raised excessive claim of deduction

HC could admit appeal against rectification order of Tribunal even if its final order related to rat

Excise & Customs : Appeal against rectification order of Tribunal to consider validity of exercise of rectificatory jurisdiction by Tribunal is maintainable before High Court even if original order of Tribunal relates to rate of duty

HC rejects order of Assessing Officer for initiation of reassessment without recording reasons there

IT : Where Assessing Officer passed reassessment order without recording reasons for initiating reassessment proceedings despite repeated requests for same, order so passed being invalid, deserved to be quashed

Brokerage exp. to identify a tenant for under construction building couldn’t be allowed under sec. 3

IT: Where brokerage expenses were incurred by assessee real estate company for finding tenant for its building which was under construction and lease arrangement with tenant was to commence only after construction, claim of expenses under section 37(1) was not maintainable

CLB stayed sale of immovable property as respondents sought to sell co’s property at under price for

CL : Where persons managing company sought to sell immovable property of company at under price for their personal gain, same would amount to oppressive and prejudicial conduct detrimental to interest of all stakeholders

Ministry releases list of defence items requiring industrial license

FDI/FEMA/ILT : List of Defence Items Requiring Industrial License

HC raps Dy. Commercial Tax Officer for levying penalty in haste on genuine stock transfer

CST & VAT : Where assessee, a registered dealer, was transporting cotton seed oil in two vehicles from Hyderabad to its consignment agent at Puducherry and Vigilance Officer intercepted said vehicles and thereafter Deputy Commercial Tax Officer levied tax on value of goods together with penalty alleging that consignment was not covered by proper documents, since it was claimed by assessee that oil was dispatched by way of stock transfer, it was not open to Deputy Commercial Tax Officer to arrive

Tax couldn’t be recovered immediately after order of CIT(A) if time-limit for filing appeal to ITAT

IT : Recovery of outstanding tax demand should not be resorted to when limit of 60 days to prefer appeal before Tribunal had not expired

No reassessment to deny sec. 80-IA relief when assessee had already disclosed all material facts dur

IT: Where assessee had already disclosed all facts truly and completely while claiming exemption under section 80-IA reopening would lack validity

HC condones belated appeal which occurred because assessee believed that its association would file

Service-tax : Where assessee had bona fide belief that Association was pursuing cause of all its members jointly and such ground of genuine belief led assessee not to pursue his individual cause, delay caused thereby is liable to be condoned.

SAT: BSE couldn’t sit in a judgment as it had vested interest in dispute between its subsidiary and

SEBI : Where BSE directed appellant broker to remit payment to it which was claimed to be due to appellant as well as ICCL, Clearing agency, in view of fact that BSE and ICCL were inter-linked and inter-connected as ICCL being wholly owned subsidiary of BSE, BSE should not sit in judgment in such matter

No TP additions if more commission is paid to AE for doing additional work than done by independent

IT/ILT : Where in transfer pricing proceedings, TPO made addition to assessee's ALP on account of higher rate of commission paid to its subsidiaries located abroad, in view of fact that said subsidiaries were performing customization work also which was not being done by independent distributors, payment of commission at higher rate was justified and, thus, impugned addition was to be deleted

Edible Oil Imports In 2014-15 Seen 5.4 Per Cent Up: Expert

India's edible oil imports, including palm oil, may rise 5.4 percent to 11.7 million tonnes in 2014/15 as a weak monsoon hurts domestic oilseeds production, an industry expert said.

Higher purchases by the world's leading cooking oil importer should support Malaysian palm oil futures that have shed almost 7 percent so far this year.

"Considering current monsoon progress, I don't think next year there will be any meaningful growth in local edible oil supplies, but demand will rise," said Govindbhai Patel, a trade expert from India's western city of Rajkot, at a regional palm oil conference in Mumbai on Thursday.

India's annual rains arrived five days late on the southern coast, and covered half of the country four days behind schedule on June 19, but since then it has failed to spread to soybean areas of central India.

Production of the main summer oilseed crop would depend on the quantity of rainfall in the next two months, said Patel, who has been in the edible oil trade for over three decades.

He expects India to import on an average 1.05 million tonnes of edible oil, including 700,000 tonnes of palm oil, each month until October.

India mainly buys palm oils from Indonesia and Malaysia, and small quantities of soyoil from Latin America and sunflower oil from Black Sea nations.

"Imports would rise in next five months as soybean sowing is getting delayed," Dorab Mistry, a noted London-based trade analyst, said on the sidelines of the conference.

Traders said the delay was primarily due to the slow spread of the monsoon rains over the growing areas of the main producing state of Madhya Pradesh.

Source:- economictimes.indiatimes.com

Sec. 158BD block assessment proceedings weren’t time barred if initiated within limitation period un

IT: Where proceedings for assessment by way of notice had been initiated well within period as prescribed under section 149, it could not be held that initiation of proceedings under section 158BD was time barred

Surplus arising to distributor of books from dealing in shares was capital gain if shares were held

IT: Where assessee treated shares as investment, used his own funds and share transactions did not relate to his main business, in spite of assessee receiving bonus share, income arising from sale of such shares were to be treated as 'capital gain', and not as business income

Palm Oil Imports By India Seen Tumbling First Time In Four Years

Palm oil imports by India, the world’s biggest buyer, may drop for the first time in four years as record global cooking oil supplies reduce the tropical oil’s discount to soybean and sunflower oils.

Shipments may decline 8.4 percent to 7.6 million metric tons in the year started Oct. 1 from 8.3 million tons a year earlier, Govindlal G. Patel, managing partner at G.G. Patel & Nikhil Research Co., told reporters in Mumbai today. That would be the first decline since 2009-2010, according to data from the Solvent Extractors’ Association of India. Soybean oil imports are seen 61 percent higher at 1.75 million tons, while sunflower oil imports will jump 49 percent to 1.45 million tons, he said.

Reduced purchases by India may add to palm oil stockpiles in Indonesia and Malaysia, the largest suppliers. Futures in Kuala Lumpur have slumped 15 percent from an 18-month high in March. The discount to soybean oil averaged $93.90 a ton this year from an average of $244 in 2013, data compiled by Bloomberg show. Palm oil production faces the risk of an El Nino event, which can roil agricultural markets worldwide as farmers contend with drought or too much rain.

“There is good supply of sunflower and soybean oil in the market and prices are very competitive compared to palm oil,” Vijay Data, president of the extractors’ association, told a conference in Mumbai today. “If there is an El Nino and palm production drops, then prices could rise making soft oils more attractive.”

A moderate El Nino would reduce output by as much as 12 percent in Malaysia, according to IOI Corp. An event as severe as in 1997-1998 may cut production by as much as 15 percent, Chief Executive Officer Lee Yeow Chor estimates. Goldman Sachs Group Inc. says disruptions associated with El Ninos have been most important for cocoa, coffee, sugar and palm oil.

The event, caused by the periodic warming of the tropical Pacific, brings drought to the Asia-Pacific region and heavier-than-usual rains to South America. Australia remains on El Nino alert even as a slowing in Pacific Ocean warming may push back its onset to September, the Bureau of Meteorology said June 17.

India’s monsoon, which accounts for more than 70 percent of the annual rainfall, is off to the weakest start since 2009, threatening planting of crops including soybeans, peanuts and rice, according to the India Meteorological Department.

“Looking at today’s scenario of the monsoon we do not expect a significant increase in domestic edible oil production,” Patel said. “Imports will rise because consumption is also increasing.”

Total cooking oil imports by India may increase 6.7 percent to a record 11.1 million tons in 2013-2014 from 10.4 million tons a year earlier, Patel said. The South Asian nation imports more than 50 percent of its cooking oil demand, shipping palm from Indonesia and Malaysia, the top producers, and soybean oil from the U.S., Brazil and Argentina.

Soybean oil imports more than doubled to 815,495 tons in the seven months through May from a year earlier and sunflower oil purchases rose 50 percent to 867,599 tons, according to data from the Solvent Extractors’ Association. Palm oil imports tumbled 15 percent to 4.33 million tons, it said.

Palm oil contract for delivery in September rose 0.2 percent to 2,487 ringgit ($773) a ton on the Bursa Malaysia Derivatives today. Prices jumped to 2,916 ringgit on March 11, the highest level since September 2012.

“There is a necessary and compulsory demand base for palm oil of 7 million tons,” said Sandeep Bajoria, chief executive officer of Sunvin Group, by phone from Mumbai on June 24. “Beyond that is dependent on price. This year the differential has reduced and there will be a shift to soft oils.

Source:- bloomberg.com

Ap Mulls Promoting Red Sanders Cultivation To Boost Production

As the Andhra Pradesh forest department prepares itself to sell the piled up stocks of seized red sanders logs through e-auctioning and e-tenders, another proposal relating to investing in the production of the logs in the future is underway.

Going by senior officials in the department, it is also being mulled to encourage private farmers to cultivate red sanders logs to enhance production and exports. According to officials, such a move will help curb smuggling and also help in brining the species out of the endangered list.

Presently, red sanders trees are naturally found only in three districts -- Chittoor, Kadapa and Nellore. Though officials claim there are no restrictions on the cultivation of the tress, promoting their cultivation will surely help in the long run. “We think it is high time to invest more in the production and protection of red sanders.

This will serve as a source of revenue for the future,” a senior official said on condition of anonymity. According to him, presently AP has about 4,000 metric tonnes of red sanders logs stored in various notified godowns. A tonne fetches anywhere between `20-40 lakh in the international market. “Even if a tonne fetched `30 lakh, the government stands to net 1,200 crore,” he said.

Red sanders are said to be in demand in countries like Japan and China. Officials, however, feel such speculations are unfair and the logs are sold at such prices only in the grey market. “We will be selling the wood in the open market while following all legal procedures and it is unfair to assess the prices. The government will correspond and negotiate with importers,” principal chief conservator of forests AV Joseph said and added that the export will be taken up only through forest corporations to ensure no malpractice takes place.

Further, statistics available with the department suggest that 1,025 tonnes of red sanders were exported in the log form in 2006-07 where as in 2007-08 several tonnes were exported in the value addition form (furniture, medicine, etc). “We have about 85 percent of C And D category logs.

These do not fetch large amounts in the international market,” the official said. On concerns of the director general of foreign trade’s (DGFT) one-year deadline to auction the seized logs ending in October, officials said the government has been corresponding with the DGFT and the chances of getting an extension were bright.

Source:- newindianexpress.com

Shares held in fiduciary capacity won't be counted to determine relationship of 'Associate Co.' unde

COMPANIES ACT, 2013 : Section 2(6) of The Companies Act, 2013 - Associate Company - Clarification on Holding of Shares in A Fiduciary Capacity by Associate Company Under Section 2(6)

MCA clarifies incorporation status of subsidiaries of foreign Co. in absence of deeming provision un

COMPANIES ACT, 1956/COMPANIES ACT, 2013 : Section 2(87) of The Companies Act, 2013 - Subsidiary Company or Subsidiary - Clarification on Incorporation of A Company, I.E., Company Incorporated Outside India

Revenue had to grant interest on belated refund even when assessee had waived off his rights thereof

Excise & Customs : Interest on belated refund is statutory (not discretionary) and is payable automatically and waiver thereof by assessee has no relevance; therefore, when department denied interest on refund on ground of being waived by assessee, High Court directed Revenue to pay interest on belated refund as per section 11BB

Doc signed in presence of witnesses couldn’t be termed as irrelevant after being unearthed in a sear

IT: Where in case of search carried out at premises of a builder, a MOU was seized showing that assessee had to receive certain amount from said builder on transfer of plot, in view of fact that MOU was duly signed by assessee in presence of five witnesses, it could not be regarded as a dumb or irrelevant document, and, therefore, impugned addition made on basis of said document was to be upheld

Case remanded to decide if letting out of commercial complexes were business income or income from h

IT : Where material placed on record did not clearly show that assessee was in business of acquiring properties and letting them out or that assessee had other properties, matter was to be remanded back to Assessing Officer to verify whether rental income from commercial complex comes under head 'business income' or under 'house property'

Revision application filed before 01-04-2005 would be governed by provisions of sec. 46 of Delhi Sal

CST & VAT : Where assessee had filed a revision, which related to period ending before 1-4-2005, under section 74A of Delhi Value Added Tax Act, 2004, entire provision of revision as contemplated under section 46 of Delhi Sales Tax Act, 1975 including period of limitation of five years prescribed therein would be applicable to such revision notwithstanding repeal of said Act by DVAT Act

Department couldn’t reassess consequential order of AO after ITAT affirmed order of CIT(A)

IT: Where department sought to revise order passed by Assessing Officer which had got merged with order of Tribunal, reassessment of said order would not be justified

Winding-up of Co. was maintainable if it neither had resources to repay debts nor had any intention

Company Law: Where company had admittedly committed a default in redemption of outstanding bonds and assets of company were wholly inadequate to repay these debts and there was nothing to indicate that appellant would ever be able to repay this debt ever or even had any intention to repay/redeem bonds; order for winding up, was inevitable

Declaration under ST Amnesty Scheme is maintainable if issues therein aren’t pending before authorit

Service Tax : As long as in respect of particular distinct period, subject matter of declaration or application is not pending or determined, main part of Section 106 would prevail and second proviso would not apply

Undisclosed income couldn’t be determined on basis of evidence not found during search or on requis

IT : Evidence/material which is not found at time of search or as a result of requisition of books of account or other document, cannot be made basis for determination of undisclosed income under section 158BB

Bank couldn’t be held as assessee-in-default for TDS default if customer pays taxes on his interest

IT: Where payees had included interest income earned from assessee-bank in their total income and paid tax thereon, assessee bank could not be considered as in default in terms of section 201(1) for short deduction of tax on such interest income

SC: No percentage based credit reversal was required on generation of exempted by- products during m

Cenvat Credit : Sulphuric acid arising in course of manufacture of zinc is a by-product and even if it is exempt, percentage payment based credit reversal at 8% of sale price thereof under rule 57CC is not applicable

Filing of a compliant before SEBI couldn’t render proceedings before CLB an abuse of law

Company Act: Scope of provisions before CLB and SEBI are different and independent of each other and they are not mutually exclusive but are cumulative; thus proceedings before SEBI regarding conduct of affairs of company would not render proceedings before CLB an abuse of process of law

AO can’t act in violation of directions of DRP that TP additions had not to exceed global profit of

IT/ILT: Every direction issued by DRP shall be binding on Assessing Officer, thus, where Assessing Officer had failed to take into consideration directions of DRP that TP adjustments shall not exceed global profits earned by assessee-company, matter was to be remitted to file of Assessing Officer to recompute Transfer Pricing Adjustment, duly complying with directions of DRP

New Annual Return Form MGT-7 isn't applicable to Cos whose financial year ended on or before 31-03-2

COMPANIES ACT 2013 : Section 92 of The Companies Act, 2013 - Annual Return - Clarification on Format of Annual Return Applicable for Financial Year 2013-14 And Fees to be Charged by Companies for Allowing Inspection of Records

Riding High On A Variety Of Exotic Fruits

In May agents of traders, mostly from Tamil Nadu, visit the households in the villages, booking trees of mangosteen, rambutan, pulasan, and durian, even in the early flowering stages, at competitive prices.

The water-rich river basins of the Pampa, Manimala and Achencoil in the district are suitable for the cultivation of the tropical fruit trees. The legendary Malayalam writer Vaikom Muhammad Basheer had celebrated mangosteen in his work ‘Under the Mangosteen Tree’. The small village of Eraviperoor near Thiruvalla is known as the heartland of mangosteen in Central Travancore.

Traders say Pathanamthitta provides a major share of the State’s mangosteen production and more than 60 per cent of the district’s mangosteen crop comes from Eraviperoor and the surrounding villages.

P.V. Chacko of Plavelil in Eraviperoor owns one of the major and richest mangosteen gardens in the region. It was P.C. Varkey, grandfather of Mr. Chacko, who had introduced mangosteen to Eraviperoor, almost a century back, according to the villagers. A 95-year-old mangosteen tree grown by him is still standing in full bloom in the garden of Plavelil house.

Keeping strong faith in the monetary prospects of this Malaysian fruit, Varkey had left his teacher’s job to concentrate on exotic fruit farming. He took much pain, exploring the market for mangosteen in Tamil Nadu, besides popularising its cultivation in his own village. He had replaced his one-acre rubber plantation with mangosteen. The present generation of this visionary peasant has now started reaping the fruits of his hard work, says his grandson.

Mr. Chacko, now has 60 fruit-bearing mangosteen trees, 20 pulasan trees, and a few durian trees in his garden. He had sold mangosteen worth Rs.9.5 lakh last year. A 65-year-old durian tree in his garden gives 600 to 800 fruits a year. He sold durian fruits worth Rs.97,000 this year. He also gets handsome revenue from the pulasan trees as well as from his nursery that sells good quality saplings.

Native to Malaysia, Indonesia and Brunei, durian is distinctive for its size, unique odour, and thorny cover.

Durian costs Rs.400 to Rs.500 a kg in Indian market while it costs as much as $12 in the U.S. where it is used for preparing juice, says Dr. Thomas P. Thomas, Associate Professor in Botany at Kozhencherry St. Thomas College.

Rambutan too has its origin in Indonesia which is cultivated extensively in Malaysia, the Philippines, Thailand, India, Australia, and Sri Lanka. Flesh of this small, red-and-yellow fruit with spiky hair on the skin is sweet and juicy. Rich in carbohydrates, protein, vitamin-C, fibre, etc., rambutan is also used as a traditional medicine in Malaysia and Indonesia, says Dr. Thomas. Rambutan costs Rs.150 to Rs.200 a kg in the Kerala market.

Pulasan closely resembles rambutan and is sometimes confused with the latter. The juicy flesh of this Malaysian fruit is more sweet and it separates easily from the seed, which is also edible.

Cultivation of pulasan is picking up in Eraviperoor and the surrounding villages as people are realising its export potential.

Konni is known as the marketing hub of various Malaysian fruits collected from different parts of the district. Ponnachan, a trader from Konni, says that the mangosteen, pulasan, rambutan and durian collected from different parts of the region were transported in bulk to Thenkasi and Chennai. Mangosteen that costs Rs.250 to Rs.300 a kg in Kerala retail market is sold at Rs.400 to Rs.550 outside the State, he says. K.K. Gopinatha Kurup, retired college principal, is of the opinion that the State government should extend a helping hand to the farmers who are at the mercy of the agents of traders from Tamil Nadu for the marketing of these exotic fruits having very high export potential.

Source:- thehindu.com

Cotton Market Rates Depressed Amid Fresh Arrivals

Slight improvement in arrivals of seed cotton pushed the rate lower on the local cotton market on Tuesday, dealers said. The official spot rate was lower by Rs 50 to Rs 6,750, they added. The seed cotton from Sindh drifted lower, shedding Rs 100 to Rs 3050-3100 and in the Punjab rates of phutti lost the same amount to Rs 3200-3300 per 40 kg, they said.



In the ready session, about 2000 bales of cotton changed hands between Rs 6400-6600, but in late evening, prices came down further, they said. Commenting on the latest trend in the market, cotton analyst, Naseem Usman who returned from Makkah and Madina after performing Umrah said that unsold heap of yarn is causing a high concern among cotton traders, some experts said. He said that quality of seed cotton is good, but the major buyer (China) is not active because fluctuations in rates of yuan are making imports more expensive. Prices of cotton in India are stable, local cotton traders were expecting that monsoon rains may be favourable for standing crop, other experts said.



Front-month cotton futures in New York fell the daily limit in the final moments of trade on Monday, hitting a two-week low of 84.16 cents a lb as traders raced to exit positions ahead of an expected large delivery against the July contract.



The front-month July contract fell 4 cents a lb ahead of the notice period for cash delivery against the contract, which begins on Tuesday. The big drop came after the settlement window. The July contract closed down 0.64 cent, or 0.7 percent, at 87.52 cents a lb as trading volumes picked up.



The most-active December cotton contract on ICE Futures US closed up 0.6 cent, or 0.8 percent, at 77.68 cents a lb after rallying to a one-week high of 77.90 cents a lb. The following deals were reported: 200 bales of cotton from Golarchi at Rs 6400, 600 bales from Tando Mohammad Khan at Rs 6400-6600, 600 bales of cotton from Mirpurkhas at Rs 6425-6450 and 400 bales from Shahdadpur at Rs 6500, dealers.

Source:- brecorder.com

AO is to abide by SetCom's order; he can only raise consequential demand to give effect to same, say

IT: Assessing Officer cannot go beyond order passed by Settlement Commission and it is only a consequential demand that can be raised by Assessing Officer while giving effect to order passed by Settlement Commission

No reduction of sundry receipts from income declared in search if assessee failed to substantiate su

IT: Where assessee claimed to set-off certain amount toward miscellaneous receipt but failed to produce any material to support claim with regard to miscellaneous receipts and also failed to maintain true and correct account, setting off could not be allowed

Banks allowed to appoint NBFCs as business correspondents

BANKING : Financial Inclusion by Extension of Banking Services - Use of Business Correspondents

India’S Rice Dump May Impact Local Exports

With the Indian government set to inject five million tonnes of rice in to its domestic market, Cambodia’s rice producers fear that any spillover into the global rice trade may impact local exports.

According to a June 18 Bloomberg report, India intends to dump about a quarter of its rice stockpiles into the country as soon as possible, to curb inflation caused by lower crop yields brought on by lower rainfall during the monsoon season.

David Van, acting secretary-general of a newly established Cambodia Rice Federation, said the extent of the effects of five million additional tonnes of rice into the Indian market is hard to measure at this time. But he acknowledged that India’s move could effect how much of the grain Cambodia is capable of exporting.

“Should the Indian government indeed pour more volume into the global rice trade with softer prices, the global market prices would certainly be affected as prices could continue to soften, thereby driving further to the edge Cambodia’s ability to export,” he said.

Van added that India’s long grain white rice would be the main competitor for Cambodian rice exports.

According to data from the Ministry of Agriculture, Cambodia exported 120,300 tonnes of milled rice over the first four months of the year, of which fragrant rice accounted for 52 per cent, while long grain white rice made up 41 per cent.

Khan Kunthy, a local rice miller and exporter was also concerned with India’s plans to inject rice into the market.

“More or less it will affect the global price as there will be more supply in the market. But I think it will not affect our fragrant rice but our long grain white rice,” Kunthy said yesterday.

India was the world’s top rice exporter in 2012 and 2013.

According to data from the Agricultural and Processed Food Products Export Development Authority in India, the country exported a total of 10.78 million tonnes of rice in 2013-2014 financial year.

The exporting period, which runs from April 1 2013, to March 31 2014, was up by about 6 per cent from close to 10.15 million tonnes exported in the same period the year before.

Source:- phnompenhpost.com

India's Beef Exports Rise 31% In 2013-14

Beef has become an important foreign exchange earner for India among the agriculture commodity exports after basmati rice, with 31% increase in quantity and 52% rise in value terms during 2013-14. India was ranked second largest beef exporter in the world with 20% market share after Brazil by the department of agriculture of the United States (USDA) in its recent report.

Curiously, India's beef exports comprise almost entirely water buffalo meat (carabeef) as cow slaughter is banned in most places. As per the figures of Agricultural and Processed Food Products Export Development Authority (Apeda), the beef exports totaled 14,49,759 tonne worth Rs 26,458 crore last year. The country exports mostly to South East Asian and Middle East countries. In the previous year, the growth in quantity and value was 12% and 27% respectively.

"The main reasons for increased growth in exports are the emergence of more state-of-the-art abattoirs and price competitiveness of our meat. India's buffalo meat is cheaper and is bought by Asian countries," says Apeda chairman Santosh Sarangi. Unlike India, the western countries export both cow and buffalo meat. Perhaps because of the taste difference, the US and the Europe hardly buys Indian beef. Huge markets like China and Russia have not opened their market to Indian beef. "Bovine meat import is included in the trade agreement signed between India and China.

They sought some technical clarifications which we have provided," Santhosh Sarangi adds. With the opening up of Chinese market, beef export from India could see a big jump. The fact that India has a huge buffalo herd population and supplies halal meat has worked to its advantage. "Most of the major brands like Al Kabeer buy our products," says Mir Ali of Quereshi International, based in Hyderabad. Vietnam is the largest buyer of Indian buffalo meat, followed by Malaysia, Egypt, Thailand and Saudi Arabia.

However, the exporters declined to comment when asked whether they expect any change in the policies regarding export of buffalo meat from the new government. Prime Minister Narendra Modi had criticised the previous government for the rising meat export and cow slaughter, which he referred as pink revolution, during his election campaign.

USDA has projected India's beef shipments to touch 1.9 million tonne in 2014. It states that a more favourable demand outlook for a wide range of countries will stimulate greater shipments from Brazil and India, which will offset the downward revision in production in Europe and Australia.

Source:- economictimes.indiatimes.com

Indian Rupee Down 19 Paise Against Us Dollar

The Indian rupee weakened by 19 paise to 60.32 against the US dollar in early trade today at the Interbank Foreign Exchange market on high demand for the American currency from importers.

Forex dealers said though increased demand for the US currency from importers put pressure on the rupee but a higher opening in the domestic equity market and the dollar’s weakness against other currencies overseas, capped the losses.

Yesterday, the rupee strengthened by seven paise to close at 60.13 against the US currency on the back of a sharp rise in local equities, following a drop in global crude oil prices.

Meanwhile, the benchmark BSE Sensex rose 58.90 points, or 0.23 per cent, to 25,427.80 in early trade today.

Source:- indianexpress.com

Duty drawback allowable on re-export of goods if ‘let export order’ was passed within 2 years of pay

Excise & Customs : For drawback on re-export under section 74, 'let export order' under section 51 must have been passed within 2 years from date of payment of duty

Asset acquired under sale and lease back transaction with payment of rent held as 'sham'; no depreci

IT-I : Where assessee having purchased lanterns from PHOTON, alleged by leased out same to third parties, in view of fact that amount paid to PHOTON was received back instantaneously in form of advance lease rent, revenue authorities rightly concluded that transaction in question was sham and, therefore, assessee's claim for depreciation in respect of leased out assets was to be rejected

Long term capital loss once accepted by revenue couldn't be reduced subsequently in year of set off

IT : Long term capital loss determined and accepted by revenue in relevant assessment year could not be reduced in year where assessee had claimed only set off assessed and determined loss

Unjust enrichment was absent if duty was paid by assessee after clearance of goods and on insistence

Excise & Customs : Where assessee has paid duty after clearance of excisable goods and that too, on insistence of Anti Evasion Branch of Department, burden of duty was not passed onto its customers and, therefore, unjust enrichment was inapplicable

In case of sale of an under construction building, projected cost of completion to be taken as cost

IT : Capital gains arising out of sale of property under construction is to be computed by taking projected cost of construction and not merely on cost till date

CLB dismissed oppression petition as subject matter of alleged complaint was already brought to an e

CL: There must be continuous act on part of majority shareholders, continuing upto date of petition, showing that affairs of company were being conducted in a manner oppressive to some part of members

HC upheld interim order of revisional authority to stay collection of 50% of disputed tax

CST & VAT: Where Appellate Authority rejected assessee's application for stay of recovery of disputed tax and on revision preferred by assessee, Revisional Authority stayed collection of 50 per cent of disputed tax, since order of Revisional Authority was only interim order pending appeal before Appellate Authority, it did not warrant interference

Failure to maintain books of account would bar assessee to claim min. exemption benefit from undiscl

IT : In block assessment, assessee shall not be entitled to exclude basic exemption granted under section 139(1) without satisfaction of Assessing Officer regarding genuineness of books of account or other documents in respect of his income

No reassessment for alleged non-disclosure of sum earmarked under sec. 11(2) if it was disclosed dur

IT: Where reasons themselves did not indicate anywhere that assessee had not truly and fully disclosed all material facts nor had any material brought to reveal such non-disclosure in respect of sum set apart by assessee charitable trust under section 11(2), notice under section 148 would be invalid

HC dismissed appeal as ITAT had deleted penalty due to sufficient cause on part of assessee

Service Tax : Where Tribunal has adverted to relevant facts to hold that there was sufficient cause on part of assessee in not paying service tax or paying service tax belatedly, no question of law arose for consideration of High Court

SAT: Stock broker fined for providing assistance and abetting clients in placing synchronized trades

CL : Where stock broker aided and abetted entities by providing a platform for circular/synchronised trades in an ill-liquid scrip and thus, manipulated price to attract investors interest penalty was to be imposed

No TDS on sales commission paid to a non-resident for services rendered outside India

IT/ILT : Agency/sales commission payment to non-resident agents for services outside India is not tax deductible at source and outside the purview of section 40(a)(i)

Philippines May Loosen Rice-Import Curbs As Prices Soar

The Philippines is considering easing rice-import curbs as Asia’s second-biggest buyer battles record-high domestic prices and seeks to limit losses at a state agency, Economic Planning Secretary Arsenio Balisacan said.

Policy makers will consider a proposal next month to adopt a free market and allow private traders to import as much rice as they want, Balisacan, 56, said in an interview in his office in Manila yesterday. The government would instead collect tariffs on the imports, he said.

“We need to get our trade policy right to address rising rice prices,” Balisacan said. “Our approach in restricting rice imports without an adequate assurance that local rice production would be sufficient to meet demand was the main factor” that led to higher prices, he said.

President Benigno Aquino is seeking to curb inflation running at the fastest pace since November 2011, boosted by the higher cost of rice, a staple in the Southeast Asian nation. Debt at the National Food Authority, which subsidizes farmers by buying their rice at higher prices, will probably climb to 180 billion pesos ($4.1 billion) by end-2016 without any changes to the program, Aquino said, or twice the nation’s defense budget this year, according to Bloomberg calculations.

“Moving to a free market allows the government to plug its cash leaks stemming from rice subsidies,” said Jonathan Ravelas, chief market strategist at BDO Unibank Inc. in Manila. “It also provides more market access for people to buy rice.”

The government had planned to import 1 million metric tons of rice this year, including 200,000 tons secured last year after Super Typhoon Haiyan struck in November. Separately, it allowed private traders in February to buy 163,000 tons of rice from overseas.

Consumer prices climbed 4.5 percent in May from a year earlier. Retail prices of well-milled rice rose 20 percent from a year earlier to a record as of the second week of June, according to the Philippine Statistics Authority.

That’s in contrast to prices of Thai 5-percent broken white rice, an Asian benchmark, which have tumbled 26 percent in the past year as the Thai government accelerated sales of stockpiles to make payments to farmers. Thai reserves have more than doubled to almost 14 million tons from 5.6 million tons in the 2010-2011 crop year prior to the start of the government’s rice purchase program, according to data from the U.S. Department of Agriculture.

“While we want to provide sufficient protection for our rice farmers, we also want to ensure that consumers, particularly the poor, would have access to inexpensive rice,” said Balisacan. “Instead of the government deciding, let the private traders and players decide that.”

To help farmers who may be hurt by cheaper imports, the government could take steps to boost irrigation, develop higher-yielding rice varieties, provide better access to credit and improve the supply chain, said Balisacan. The former World Bank economist oversees agencies including the Public-Private Partnership Center and the Philippine Statistics Authority, and is also in charge of approving infrastructure projects.

Restrictions on rice imports had encouraged smuggling, and the country’s Bureau of Customs has stepped up efforts to clamp down on the release of illegal rice shipments since Commissioner Sunny Sevilla took office in December.

The Philippines, the largest importer of rice in Southeast Asia and the biggest buyer in Asia after China, may import 2 million tons this year and 1.8 million tons in 2015, according to USDA estimates. India, the top shipper, exported 10.48 million tons in 2013, with Thailand at 6.72 million tons and Vietnam at 6.7 million tons, according to USDA data.

Officials around the region have come under pressure to control rising food prices and curb the cost of living. India will offload 5 million tons of rice, about a quarter of its state stockpiles, at subsidized rates to check price gains, Food Minister Ram Vilas Paswan said last week.

Bangko Sentral ng Pilipinas is the first central bank this year among Southeast Asia’s biggest economies to move toward tightening monetary policy as inflation quickens. Last week it increased the rate on special deposit accounts a quarter of a percentage point after raising the reserve ratio twice earlier.

The monetary authority last week also raised its inflation forecasts for 2014 and 2015, citing risks including El Nino and food costs. Food prices surged 6.7 percent in May from a year earlier, the fastest pace since April 2009, according to data compiled by Bloomberg. Food and non-alcoholic beverages have a weightage of about 40 percent in the consumer price basket.

Source:- bloomberg.com

Slight delay in service of demand notice and copy of assessment order would not invalidate assessmen

IT : Assessment within limitation period cannot be doubted merely because demand notice is served after 47 days of said period

No concealment penalty if confirmation of creditors couldn’t be obtained as they were not traceable

IT: Where a few creditors could not be traced due to riot in related areas and assessee surrendering outstanding amount in revised return, penalty under section 271(1)(c) could not be levied

RBI asks banks and financial institutions to provide info to SIT for unearthing of black money stash

BANKING : Constitution of Special Investigating Team - Sharing of Information

CBDT notifies new Wealth-tax return form - Mandatory e-filing except by Individual/HUF not liable to

IT/ILT : Wealth-Tax (First Amendment) Rules, 2014 - Substitution of Rule 3 and Insertion of Form BB

Import Ban On Milk Items From China Extended By One Year

The government has again extended the ban on imports of milk and its products from China for one more year till June 2015.

"Prohibition on import of milk and milk products (including chocolates and chocolate products and candies/ confectionery/ food preparations with milk or milk solids as an ingredient) from China is extended for one more year, i.E., till 23.6.2015 or until further orders, whichever is earlier," Directorate General of Foreign Trade (DGFT) said in a notification.

The ban, which expired on June 23, is extended every year.India had first imposed the ban in September 2008 due to presence of melamine, used for making plastics and fertiliser.

India, however, does not import milk products from China, but as a preventive measure, it has imposed the ban.The country's milk production is estimated to have increased by 6 per cent to about 140 million tonnes in 2013-14 from 132.4 million tonnes during the previous fiscal. India is the world's largest producer and consumer of milk.

Among states, Uttar Pradesh continued to remain the leading milk producer, followed by Rajasthan and Gujarat, whereas, the per capita demand was maximum in Punjab followed by Haryana in 2013-14.

Recently, all major milk producers including Mother Dairy and Amul had raised milk prices by Rs 2 per litre across all variants due to increase in procurement costs.

Source:- mydigitalfc.com

Rupee Opens 5 Paise Stronger At 60.16 Per Dollar

The Indian rupee opened marginally higher against the US dollar on Tuesday, even as Asian currencies showed a mixed trend.The home currency opened at 60.16 against the dollar against its Monday’s close of 60.21.

At 9.13am, the rupee was trading at 60.14 per dollar, up 0.11% from its previous close.India’s benchmark equity index, S&P BSE Sensex, rose 0.61%, or 151.55 points, to 25,182.87.

The yield on India’s 10-year benchmark bond was trading at 8.738%, compared with its Monday’s close of 8.78%. Bond yields and prices move in opposite directions.

Currencies in the region showed a mixed trend. The Malaysian ringgit was trading up 0.17%, but Japanese yen, Philippines peso, Thai baht and Singapore dollar were down marginally.

The dollar index, which measures the U.S. currency’s strength against major currencies, was trading at 80.297, up 0.02% from its previous close of 80.272.

Since the beginning of this year, the rupee has gained 2.73% against the dollar, while foreign institutional investors have bought $9.87 billion from local equity markets.

Source:- livemint.com

Show Cause Notice must be issued in conformity with the law prevalent on date of its issue, rules HC

Service Tax : Show-cause notice must be issued in conformance with law, as it stands amended, on date of issuance thereof; notice issued on 6-10-2004 as per law in force prior to 10-9-2004 was, therefore, set aside

HC affirmed additions in hands of a bank for its long outstanding surplus reflected in suspense acco

IT: Bad debts relating to non-rural branches of a bank in excess of credit balance of provisions for bad debts created under section 36(1)(viia), alone would be admissible deduction under section 36(1)(vii)

No disallowance of interest on loan when assessee had enough interest free funds to invest in tax fr

IT : Where assessee had sufficient interest free fund available with it to be invested in mutual funds, deduction of interest expenditure on borrowed fund could not be disallowed under section 36(1)(iii)

Recovery proceedings were valid if initiated after Sep. 10, 2004 even if demand pertained to earlier

Excise & Customs : Were proceedings for recovery are initiated after introduction of proviso to section 11 on 10-9-2004 providing for recovery from successor, recovery is valid even if demand pertains to period prior thereto

No addition of unexplained sums if it was duly explained by assessee in absence of any response from

IT : In a case of purchase of shares on credit, assessee's obligation stood discharged under section 69A if he furnished details of cheques, details of banks and addresses of sellers of shares

Even if decree for non-payment of debt is obtained, winding-up is valid mode of execution against in

CL : Even where valid decree was obtained by winding up petitioners for non-payments of debts by respondent-company on its becoming commercially insolvent, winding up petition, being an equitable mode of execution, would still be admitted

Common salt purchased by Britannia to make biscuits was exempt under Third Schedule of Tamil Nadu Sa

CST & VAT : Where assessee purchased common salt and used it in manufacture of biscuits, etc., common salt in question would fall under Entry No. 7 of Part B of Third Schedule of Tamil Nadu General Sales Tax Act, 1959 and was exempt from tax

Sec. 143(2) notice is must even if assessee treats original return as one in response to sec. 148 no

IT: Even where assessee requested Assessing Officer to treat original return as one in response to section 148 proceeding, notice under section 143(2) was mandatory; otherwise re-assessment would be bad in law

Penalty u/s 273 levied on assessee on its failure to furnish return without making any explanation b

IT : For failure to discharge statutory obligation to file return and to appear or offer explanation before authorities therefor, penalty under section 273 was to be levied

Tribunal couldn’t adjudicate upon merits of case if ST demand was found time barred

Service Tax : If demand is found time barred, there is no jurisdiction with Tribunal to enter upon merits of dispute and pass order on merit

Charitable institutions enjoying I-T exemption not liable to pay FAR charges to DDA on land allotted

Charitable Institutions: No additional FAR charges to be recovered from Educational Societies and Health Care as also Social Welfare societies having Income -tax exemption

TP adjustment in respect of assignment fees deleted by ITAT in view of its earlier decision

IT/ILT : Where in transfer pricing proceedings, TPO made addition to assessee's ALP in respect of assignment fee, in absence of any contrary material brought on record, following order passed by Tribunal in assessee's own case relating to earlier assessment year, impugned addition was to be deleted in assessment year in question as well

India To Raise Import Duty On Sugar, Promote Exports

India will raise its import duty on sugar to 40 percent from 15 percent, as the government tries to revive business at mills that owe farmers around $1.84 billion, the food minister said on Monday.

The climb in import duty will make overseas purchases nearly unviable for refiners in the world's biggest consumer of the sweetener, hitting shipments from suppliers such as Brazil, Thailand and Pakistan.

"We have reached a consensus to raise the import duty to 40 percent," Ram Vilas Paswan said after meeting senior government officials.

Local sugar prices NSMc1, which had been stifled by rising stockpiles, jumped 1.5 percent following the announcement and are likely to rise further if monsoon rains stay subdued as expected in the next few weeks, dealers said.

Paswan also told reporters the subsidy on raw sugar exports would be extended until September. India increased the subsidy for raw sugar earlier this month to boost output and exports.

But large-scale exports are unlikely in the short term, as most of this year's raw sugar output has already been shipped.

India is likely to export more than 2 million tonnes of sugar in 2014/15 as the top consumer is set to produce a surplus of the sweetener for the fifth straight year despite chances of reduced rainfall, a commodities executive said earlier this month.

The government has also decided to raise the mandatory level for blending ethanol in gasoline to 10 percent from 5 percent, Paswan said.

Trying to emulate the success of Brazil's booming biofuel industry, India launched its ambitious ethanol blending programme in 2006, but disagreements between sugar mills and oil companies over pricing stymied progress.

New Delhi is now trying to promote ethanol blending that could help it in reducing its current account deficit and also boost mills' earnings. Indian mills produce ethanol from molasses, a byproduct of sugar production.

The government is also considering extending the duration of repayments of interest free loans made to mills against excise duty to five years from three years, Paswan said.

Shares of sugar makers such as Bajaj Hindusthan Ltd (BJHN.NS) Shree Renuka Sugars (SRES.NS) Balrampur Chini Mills (BACH.NS) and Dhampur Sugar Mills (DAMS.NS) jumped more than 10 percent following the government announcement in a weak Mumbai market.

Source:- in.reuters.com

India’S Tax Administration Reform Commission (Tarc) Releases First Report

India’s Tax Administration Reform Commission (TARC) has submitted its first report to Finance Minister Jaitley suggesting a variety of changes to India’s tax administration framework.

Constituted in August 2013 under the leadership of economist Dr. Parthasarathi Shome, the TARC is charged with identifying key areas for improvement in India’s tax system. In its first report released last month, the commission suggested merging the Central Board of Direct Taxes (CBDT) with the Central Board of Excise and Customs (CBEC), broadening India’s use of the Permanent Account Number (PAN) system, improving services to taxpayers and ending retrospective taxation, among other measures.

“The TARC recommends that the two boards [CBDT and CBEC] must embark on selective convergence immediately to achieve better tax governance and, in the next five years, move towards a unified management structure with a common board for both direct and indirect taxes, called the Central Board of Direct and Indirect Taxes. The tax administration needs to have greater functional and financial autonomy and independence from governmental structures, given their special needs. The post of revenue secretary should be abolished [and] the present functions of the Department of Revenue should be allocated to the two boards [the CBDT and CBEC],” the report reads.

In addition to suggesting structural changes, the report recommends the tax administration adopt a more “customer focused” modus operandi – partly in response to increased complaints in recent years regarding the perceived rude and arbitrary behavior of tax officials.

“The prevailing treatment of the taxpayer by the tax administration requires much to be improved in reflection of global practice. Customer focus reform therefore is the first need. Officers and staff at all levels of tax administration should be trained for customer orientation. Further, for people posted in this vertical, the training in customer focus need to be more specialized and intensive. This training should be appropriate to the areas in which such officers are deployed such as customer relationship, measurement of customer satisfaction [and] taxpayer education. In redressing taxpayer grievances, the decision of the Ombudsman should be binding on tax officers,” the report recommends.

Along the same lines of recommending the administration enhance its treatment of taxpayers, the report explicitly identifies retrospective taxation as an issue requiring immediate attention and amelioration.

“The lack of accountability in the system is represented by infructuous demands raised by the tax administration with impunity as well as massive escalation, non-resolution and non-recovery of such demands by global standards. Getting a handle on dispute management is crucial for retrieving stakeholder confidence and for saving much needed staff and financial resources of the tax administration,” the report recommends.

“For clarity in law and procedures, a process based on best practices should be followed. Retrospective amendment should be avoided as a principle [and the] fundamental approach should be collaborative and solution oriented,” it continues.

The TARC’s explicit rebuke of India’s retrospective tax policies follows strong rhetoric from Ravi Shankar Prasad, Minister for Telecommunications, Law and Information Technology, on the issue earlier this month.

With several multi-million dollar tax disputes over retroactive taxation currently in limbo between the Indian government and Vodafone, Nokia, Royal Dutch Shell, AT&T and General Electric (among others), modifying India’s existing tax law – which currently lacks a provision for resolving tax disputes through negotiation – has been cited as a priority for Modi’s administration.

“Both the boards must immediately launch a special drive for review and liquidation of cases currently clogging the system by setting up dedicated task forces for that purpose. The review and liquidation should be completed within one year and the objective should be to decide all cases pending in departmental channels for longer than a year as on the start date of the action plan,” the TARC recommends.

While Minister Jaitley’s official response to the TARC recommendations has yet to be made public, foreign investors are hopeful a number of the report’s key points – especially those related to discontinuing retrospective taxation and enhancing customer service – will ultimately find their way into official government policy.

Source:- india-briefing.com

Frequent dealing in shares and earning of meagre dividend bring resultant gains in realm of business

IT: Where assessee was selling shares very frequently, volume and magnitude was very high and he earned only a meagre amount of dividend, income arising from sales of shares was assessable as business income

SC: By product isn’t a ‘waste’, it’s not exempt under excise notification even if final product is e

Central Excise : Soap stock/fatty acid, waxes and gums, etc. arising in course of refining of oil are not waste but are by-products as they are 'valuable'; hence, they are not exempt under Notification No. 89/95-CE, even if main product being oil is exempt

Non-filing of return by employees creates doubts; HC disallows commission paid to employees by emplo

IT : Where assessee claimed deduction on account of payment of huge commission to employees for boosting up sales but it was found that payment was made to an individual, whose role was not clear, claim needed disallowance

HC postpones hearing as Third member appointed by President of Tribunal had already heard the matter

Excise & Customs : Where President of Tribunal had appointed Member (J) who heard matter earlier as Third Member to hear difference of opinion as well, High Court directed deferment of hearing

No registration to a trust if its financing activities weren’t carried out for furtherance of its ob

IT : Principal activities of metropolitan development authority are to be ascertained before denying it registration under section 12A on account of financing and rental activity

SAT upheld penalty on appellant as he was manipulating price of Cos. through off market trade

CL : Where appellant manipulated price of a particular scrip by entering into off market transactions and carrying out large number of reverse trades which were fictitious in nature, it violated provisions of regulation 4(1) and 4(2)(e) of PFUTP Regulations, 2003 and, thus, penalty order passed by authorities below was to be confirmed

Assessee is entitled to obtain benefit of concessional rate of tax even on basis of duplicate part o

CST & VAT : Where assessee carried out some inter-State sale against 'C' form and to obtain benefit of concessional rate of tax filed duplicate part of 'C' form, assessee was entitled to benefit of concessional rate of tax, though it did not file original part of 'C' form

Fair market value determined by DVO isn’t relevant to fix full value of consideration for purpose of

IT: Ascertainment of fair market value with aid of DVO's report would have no relevance for purpose of determining full value of consideration received or accruing as a result of transfer of capital asset for purposes of section 48

Asset of a Co. can’t be said to be transferred on date when shareholders agreed to sell their shares

IT : Where there was neither payment of full price, nor was transfer deed executed transferring property to buyer, merely on entering in an agreement of sale, there would be no transfer in property under section 2(47)(vi)

You Are Here: Home > Business > Current Articlefurniture Exports Register Egp1.1Bn, Reaching Egp 2.8Bn By End Of 2014

The value of Egyptian furniture exports reached EGP 1.1bn between January and May 2014, marking an increase of 36% compared to the same period last year, the Egyptian Furniture Export Council announced Sunday. The council added that by the end of 2014 exports are expected to reach EGP 2.8bn.

Over the past four years, furniture exports have witnessed a steady climb. In 2013, exports registered EGP2.4bn while in 2013 exports recorded EGP 1.99bn. In 2010 and 2011, Egypt exports of furniture amounted to EGP 1.44bn and EGP 1.789bn respectively.

Earlier last month, the Ministry of Foreign Trade and Industry announced that Egyptian non-petroleum exports declined by 11% during the month of April, earning $1.8 billion compared to $2bn during the same month the year before.

From January through to April of this year, exports declined 2%, signalling earnings of $7.6bn over the four months or, 30% of the current year’s target value of $25bn. In comparison, earnings over the same same period in 2013 reached $7.76bn.

Source:- dailynewsegypt.com

Odisha Aims Rs 29K Cr Export Turnover In 10 Yrs

The draft export policy of the state government aims to achieve Rs 29,693 crore worth of exports in next ten years from Odisha, whose combined export turnover stood at Rs 11,448 crore in 2012-13.

Stating that the export scenario of the state is not very encouraging, the draft policy has projected at least 10 per cent year on year growth of exports.

The policy has identified six potential sectors for this purpose. These are-agriculture and forest products, handloom products, handicraft products, marine products, engineering and allied products and service exports.

The service sector include exports of computer software, tourism, medical services, education services, engineering consultancy and export management service. Metallurgical and mineral products have a lion's share in the export basket.

The draft paper has proposed to introduce "Green Cards (Exporters' Card)" for the exporters having good track records for early passage of their consignments at the check gates of the government on priority basis subject to the fulfilment of certain provisions. The Exporters Card would entitle the holder to minimum inspection and speedy clearance of all proposals by all departments of the state government.

For uninterrupted supply of raw materials to the exporting units, the Odisha Small Industries Corporation limited (OSIC), a state run PSU, will supply raw materials and fuel (such as coal etc) to them on priority basis. The new policy, which is likely to receive the nod of the state cabinet soon, proposes setting up of export parks for various products by making available all necessary infrastructure facilities at one place and for effective monitoring. In the first phase, such parks are proposed to be set up in Cuttack, Balasore, Berhampur and Sambalpur.

To educate the younger generation about the nitty-gritty of the international business, the draft policy promises introduction of Export-Import Management course covering all aspects of export business in the syllabus of all the universities in the state.

Source:- business-standard.com

Stainless Steel Manufacturers Call For Hike In Import Duty

The Indian Stainless Steel Development Association has called for an increase in basic customs duty rates on stainless steel flat products to 15 per cent from the existing 5 per cent. They also want removal of customs duty on key raw materials and on scrap to provide an impetus to the fledgling domestic industry.

In a pre-Budget memorandum, the association has said the domestic stainless steel makers are under threat from Chinese imports. The association says that the low customs duty in India has resulted in imports increasing to 307,226 tonnes in 2013-14 from 239,136 tonnes in 2011-12. China accounted for one-third of the total imports in 2013-14.

The association states that Indian manufacturers depend on imported coking coal and suffer from borrowing costs in the region of 12 to 13 per cent, which is impacting their price competitiveness against Chinese imports.

“China’s capacity of stainless steel has grown at a radical pace, outgrowing its demand and resulting in excess production,” the association said in a statement. “It is this excess produce that finds its way to Indian markets creating an imbalance and destroying the level playing field. In 2013 alone, China has created an over supply of 1.84 million tonnes.”

According to the ISSDA, India’s stainless steel consumption is expected to grow to 3.5 million tonnes by 2015.As a result of cheaper imports and a slowdown in the economy, domestic manufacturers have struggled. Jindal Stainless Ltd, one of the largest stainless steel manufacturers in the country has accumulated losses of ?2,314.72 crore in fiscal years 2013-14, 2012-13 and 2011-12. The last time the company had reported an annual net profit was in the 2010-11 fiscal when it had a profit of ?318.34 crore.

The fiscal 2013-14 has been particularly bad for Jindal Stainless with over ?1,200 crore being eroded from its net worth. As on March 31, 2014, the company’s consolidated net worth stood at ?61.97 crore as against ?1,339.56 crore on March 31, 2013.

Source:- thehindubusinessline.com