High Court triggers sec. 41(1) for excess cash collected by South Indian Bank from its depositors

IT: Expenditure incurred on earning tax free bonds and dividends was to be disallowed

Sums paid by TPA to hospitals for settlement of mediclaim won’t attract rigours of sec. 194J TDS

IT: Where assessee-third party administrator, settled mediclaim of insured and arranged said amount from insurance company, it was not liable to deduct tax against said payment made and therefore no disallowance under section 40(a)(ia) could be made

No reversal of credit on excess duty paid by supplier if factory of supplier/recipient was owned by

Cenvat Credit : Where supplier factories and recipient factories, both, belonged to assessee only, demand of Cenvat reversal from recipient factories on ground of excess duty payment by supplier factories, was dropped on undertaking from supplier factories that they would not claim refund of such excess duty

Power distribution Co. abused its dominance by denying access to consumers for availing of electrici

Competition law : Where OP bought power from cost inefficient company and denied open access to consumers for availing electricity from other sources, OP abused its dominant position

FTS receipts pursuant to agreements entered into prior to 1-4-1976 were exempt under proviso to sec.

IT/ILT: Where assessee-company entered into contract with Indian companies for supply of technical know-how prior to 1-4-1976, technical services fee received by it in terms of those contracts was exempt from tax by virtue of proviso to section 9(1)(vii)

Govt. notifies business of storing, safeguarding and retrieving specified records under Money Launde

MONEY-LAUNDERING : Section 2(1)(SA)(VI), Read With Section 12 Of The Prevention of Money-Laundering Act, 2002 - Person Carrying on Designated Business or Profession - Notified Person Deemed To Be

Now Provident Fund of an exempted establishment is eligible to be appointed as a member of Stock Exc

SEBI/INDIAN ACTS & RULES : Securities Contracts (Regulation) (Second Amendment) Rules, 2014 - Amendment in Rule 8

SEBI tweaks norms on Investor Protection Fund/ Customer Protection Fund

SEBI : Modification to Investor Protection Fund (IPF)/Customer Protection Fund (CPF) Guidelines

Sums forfeited on non-payment of instalments of share warrants would be treated as capital receipts,

IT: Where assessee issued optionally convertible warrants during relevant year, amount forfeited by it on account of subsequent non-payment of instalments towards warrants issue had to be treated as capital receipt not liable to tax

Supply of transformer alongwith iron and steel structures for setting-up power project is liable to

CST & VAT : Where assessee supplied to a customer transformer alongwith iron and steel structures, distribution boxes, etc. for setting up Mini Hydel Power Project, transformer constituted a part of renewable energy device and it would fall under Entry No. 80 of Third Schedule to VAT Act

Sec. 10B relief was available on receipt of sums from activity of copying of data from one software

IT : Sale of software on license basis would amount to sale for purpose of deduction under section 10B

No penalty alleging wilful default in filing return if it was filed within extended time allowed by

IT: Where assessee filed its return of income within extended time period granted by revenue authorities, there being no case of wilful default in filing return within prescribed time period, impugned penalty order passed in terms of section 276CC deserved to be set aside

Activity of making small stones by cutting big stones tantamounts to manufacture under Gujarat Sales

CST & VAT : Where assessee was engaged in making small stone of different size by hammering/cutting big stone, activity of assessee could be said to be manufacture

Functional dissimilar Cos can’t be taken as comparables without making adjustment for dissimilaritie

IT/ILT: Where there is functional dissimilarity between assessee and comparable companies, same cannot be compared without making adjustment for dissimilarities

Court couldn't disregard method of valuation of shares in a scheme of reduction unless it was unreas

CL: To disregard a method of valuation of shares in scheme of reduction, it must be shown that chosen method of valuation is such as has resulted in an artificially depressed or contrived valuation well below what a fair-minded person may consider reasonable

Interest was allowable on delayed refund even when refund order was communicated to Commissioner

Excise & Customs : Time-limit for interest on delayed refund of pre-deposit under section 35FF of Excise Act runs from date of communication of appellate order to 'Adjudicating Authority' and, in that context, 'Adjudicating Authority' would mean authority who passed Adjudication Order and/or who can pass refund order

Receipt of additional compensation on compulsory acquisition of capital assets is to be taxed in yea

IT: Additional compensation on compulsory acquisition is to be taxed in year of receipt instead of in year of transfer of capital asset

Sec. 2(22)(e): Lending-Co. advancing loan only to assessee couldn't claim to be having substantial b

IT: Where lending companies advanced loans only to assessee and not to others, lending companies could not be said to have substantial part of business in money lending and thus loans and advances given to assessee were deemed dividend in light of provisions of section 2(22)(e)

HC directs AO to consider exemption for export sales after considering Form C/H available with asse

CST & VAT : Where Assessing Authority disallowed assessee's claim of exemption for export sales on ground of non-production of 'C' forms and 'H' forms, since now assessee was having 'C' forms and 'H' forms, matter was remanded for passing fresh order

HC ordered winding-up of Co. as it failed to pay debt and raised bogus claim about quality of goods

CL: Where dispute raised by respondent-company with regard to quality of goods supplied by petitioner in winding-up petition was not bona fide, respondent company was to be wound up

Gift of shares to foreign AEs wouldn’t attract TP provisions as no income element was involved in su

IT/ILT: Where assessee, an Indian company, transferred shares of its subsidiary company to another group concern located abroad without any consideration, it amounted to transaction of gift and in absence of any income element involved, transaction in question could not be subjected to transfer pricing provisions

General Motors Begins Vehicle Exports From India

General Motors India today said it has begun vehicle exports from India, with a first shipment to Chile.The company shipped the first lot of 140 units of its hatchback Chevrolet 'Beat' from the Mumbai port to Chile last Thursday, a release said here.

Beat was launched in the Indian market in 2010. The vehicle is produced at the company's Talegaon facility in Maharashtra. The plant has an annual production capacity of 1,70,000 vehicles and 1,60,000 engines.

The first 140 left-hand-drive Beats were shipped from the Mumbai Port on September 25 and it is expected to reach Chile in the next few weeks, the company said.

"The first shipment of Chevrolet Beats demonstrates our commitment to make our India-built products available in global markets," GM India president and managing director Arvind Saxena said.

GM India will continue to ship models to Chile on a monthly basis, he said."We expect to identify additional export markets going forward. This will help drive capacity utilisation at our Talegaon plant," Saxena said.

The compact car Beat is already manufactured and sold in many markets across the world.Available in both petrol and diesel versions, Beat is GM India's best-selling model.

As part of GM CEO Mary Barra's recent trip to India, she participated in the roll out of the first Beat for export on September 10.The Chevrolet portfolio in India includes the Spark, Beat, Chevrolet SAIL, SAIL Hatchback, Cruze, Tavera, Chevrolet Enjoy and Captiva.

Source:- business-standard.com

India's Textiles, Apparel Exports To Rise By 10 Pct This Year

India's cotton and apparel exports are set to climb by around 10 percent this year as higher wages, political instability and concerns about workplace conditions in other producing markets steer international buyers toward Indian exporters, industry officials said.

The rise in textile shipments from India - currently around 4.5 percent of world trade - may eat into top exporter China's 36 percent share of the market and will be a boon for Indian textile merchants keen to exploit rising demand stemming from weak cotton prices and global economic growth.

"My orders have increased by about 20 percent so far this financial year. It's a golden period for the Indian textiles industry," said Vijay Agarwal, chairman of Mumbai-based Creative Group, a leading apparel exporter.

Buoyed by fresh export orders, Agarwal is keen to expand his business by investing 2 billion rupees ($32.71 million) in the next year.

The main markets for Indian textiles at the moment are the United States and European Union.

Agarwal and other Indian exporters are anticipating a rise of roughly 5 percent in global demand for textiles and apparel this year.

In addition, India's textile exporters feel the relatively low labour costs in their country, alongside record domestic cotton production this year, should help them gain market share from other exporters in the region.

Cambodia looks set to lose some consumer demand after the government deployed troops in the capital earlier this month as garment workers held rallies to revive a campaign for higher wages that had helped stoke a year-long political crisis.

Textile manufacturers in Vietnam, meanwhile, have been hobbled by the high cost of credit and have struggled to finance expansion drives aimed at winning export market share.

And the collapse of a garment factory in Bangladesh last year continues to divert buyers to India and other markets because of enduring concerns over Bangladeshi workshop safety.

Aside from stronger global demand, larger domestic cotton supplies will also help India push textile and apparel exports up by about 10 percent in 2014/15, said Ajay Sardana, vice-president of Grasim, part of the Aditya Birla conglomerate, on the sidelines of a recent conference in Mumbai.

India will be the world's No. 1 cotton grower this year, ousting China from the top spot for the first time in over 30 years, the U.S. government forecast on Sept. 12.

The Cotton Association of India has pegged next year's output at 39.63 million bales, but experts believe production could be as high as 41 million bales as the area under cultivation has gone up this year.

Expansion in domestic demand is also likely, with India's local textiles market expected to grow to $65-$68 billion in coming years from the current $60 billion, Sardana added.

And unlike in some markets such as China and Cambodia, labour remains cheap in India, keeping costs competitive, said D. K. Nair, secretary general of the Confederation of Indian Textile Industry.

But while exports are expected to rise from India, China, with textiles and apparel exports worth $270 billion, around seven times that of India's receipts, is expected to remain the dominant player.

India's relatively poor infrastructure, wobbly energy supplies and lack of a business-friendly environment for both foreign and domestic investors are expected to constrain overall export growth over the near to medium term, said Christian Schindler, director general of the International Textile Manufacturers Federation

Source:- business-standard.com

India Carmakers Turn To Exports As Local Market Slumps

Heavy investment in India by global car companies in the hope that the fast-growing market would soon rival China are faltering as car sales fall and the depreciating rupee pushes up costs.

But the big brand carmakers such as Volkswagen, Ford and Renault-Nissan are now looking outwards, targeting vehicle shipments to countries abroad, such as the Europe and the U.S., as well as other emerging markets, HSBC said in a trade report on India.

Vehicles and transport equipment currently account for less than 7 percent of India’s total goods exports, but with the oversupply the carmakers have created in the Indian market, the report said it opened the way for India to become an auto export hub.

According to the bank analysts, car exports will be supported by the weaker rupee and the availability of skilled labour in India at a cheap cost. Rising labor costs in China have seen a decline in the mainland’s competitiveness, and this will provide a further boost to India’s automobile and related exports.

“We expect exports of transport equipment to increase by close to 15 percent a year in 2014-2030, far outpacing the 11 percent a year growth of total exports,” the report stated.

This was supported by strong growth in exports of heavy construction machinery made in India by companies such as Caterpillar, said AGS World Transport group CEO Michael Dye.

“This has turned into a good export engine for the country and is a huge business,” the NVOCC operator told JOC.com in Hong Kong.

India’s economy has expanded by less than 5 percent for the last two consecutive years, after growing by almost 8 percent a year in the previous decade, as weak domestic demand put the brakes on the economy. With exports accounting for just 25 percent of GDP, there is scope for India to rebalance away from the domestic economy towards exports, according to the HSBC trade report.

Yet India is expected to be the world’s fastest growing exporter between 2014 and 2030, and has the potential in that period to move from the 14th largest exporter of goods by value to the world’s 5th largest.

However, poor containerized rail service has been a factor hindering efficiency at India's largest port, Jawaharlal Nehru Port (Nhava Sheva). The congestion also trickles down with the port of Paradip at one point having 27 ships waiting to dock as rains and a jump in imports pushed its capacity handling to the edge. Marine Link reported that in the 2013-14 fiscal year, total cargo handled at Indian ports increased by 4.3 percent to 976 million tons.

India’s goods exports are currently dominated by labour intensive, low-skilled sectors. According to the Ministry of Commerce’s latest data, mineral fuels, lubricants and related materials; and jewellery, precious stones and semi-precious stones, accounted for around 35 percent of India’s total goods exports in 2013-2014.

“Looking ahead, however, we expect more capital and skill-intensive sectors like pharmaceuticals and transport equipment to emerge as major contributors to overall exports.With a lot of potential to leverage India’s raw material strength in textiles such as cotton, jute and silk; textiles exports are likely to contribute strongly as well,” the bank’s analysts said.

“Our forecasts suggest that exports of mineral fuels, lubricants and related materials will rise at a rate of just below 8 percent a year in 2014-30, lower than the average growth rate of around 11 percent a year for total exports over the same period.”

Textiles exports accounted for more than 20 percent of India’s total exports in 2001. Since then the share has fallen to less than 10 percent, but India is still the world’s second largest textiles exporter, second only to China.

The Ministry of Textiles in India has introduced policies to develop the industry, aiming to diversify both the product base as well as export markets, improving textile oriented technology and investing in new marketing strategies. This, combined with a weaker rupee, rising labor costs in China and safety compliance issues for factories in Bangladesh (another major textiles producer), give India an opportunity to increase its market share. HSBC expects India’s textiles exports to increase by 12 percent a year between now and 2030.

An enormous and urbanising population means there are parallels to draw between India and China. Like its giant northern neighbour, India’s rapidly expanding middle class will drive growing demand for consumer goods from overseas markets.

By 2030, India is forecast to emerge as the world’s largest middle class consumer market, surpassing both China and the U.S. The bank analysts said this is likely to be accompanied by a shift away from primary food articles, which currently dominate consumer goods imports, towards more technology-intensive items such as computers and mobile phones.

“This presents opportunities for exporters in advanced economies, especially those who are able to capitalize on existing brand awareness; but they will face strong competition from companies in China, which are likely to grab a significant share of India’s demand for technology intensive goods. Indeed, India’s mobile market is already an important source of revenue for Chinese companies, accounting for more than 11 percent of turnover at Shenzen based Huawei technologies, for example, one of the world’s leading telecoms equipment.

Source:- joc.com

Increased Processed Chicken Exports In India

India's poultry farmers, who remain concerned about the possibility of the government allowing duty-free imports of chicken legs from the US, are looking at increasing exports of processed chicken.

A drop in feed prices has made Indian chicken competitive in the international market, which has prompted the farmers to explore the opportunity. To begin with, the sector is planning to beef up its presence in the Middle East, which mostly imports processed chicken from Thailand, Viet Nam and Brazil, reports The Economic Times.

The poultry sector is anxiously watching whether the chicken leg import issue will come up during Prime Minister Narendra Modi's upcoming visit to the US, where talks are likely to focus on strengthening bilateral trade ties between two nations.

The external affairs ministry had proposed to allow duty-free imports of American chicken leg in return for US access to Indian basmati rice and fruits.

Local poultry farmers say such a step would lead to dumping of an item that Americans usually discard. Americans prefer chicken breast meat, which is sold at a premium, and chicken legs are sold at throwaway prices, say Indian farmers.

"We had requested the agriculture ministry not to allow duty-free import of chicken legs from the US. The minister had assured us that he would look into it," said Amit Saraogi, chairman, Compound Livestock Feed Manufacturer's Association (India).

"But in the meantime, we are trying to increase exports of processed chicken to the Middle East so as to take advantage of the falling input cost prices and also to create a market for our chicken in the world market."

Source:- thepoultrysite.com

A.P. Mulls Moving Court On Red Sanders Auction Stay

Centre likely to issue notification on extension of deadline. While the DirectorGeneral of Foreign Trade (DGFT) has permitted the government to auction 8,584 metric tonnes of seized red sanders in log forms in the international market, only 4,160 metric tonnes will be put up for auction in the first phase from October 10 to 17.

The Andhra Pradesh government is contemplating moving either the Supreme Court or the High Court on the stay imposed by the National Green Tribunal (NGT) on red sanders auction.

The government has also asked the Advocate-General whether a counter-affidavit should be filed before the NGT, seeking to vacate the stay or if the Supreme Court or the High Court should be approached for quashing the stay. Sources said the government would take a final call on the matter by Monday.

While the Director-General of Foreign Trade (DGFT) has permitted the government to auction 8,584 metric tonnes of seized red sanders in log forms in the international market, only 4,160 metric tonnes will be put up for auction in the first phase from October 10 to 17.

Meanwhile, a top official of the Forest Department, who was part of the team that visited China and Japan to conduct pre-bid meetings and road shows, said the response was poor in Tokyo, but it exceeded their expectations in Xianyou and Beijing. “Though we expected 40-50 individuals, 110 people turned up at Xianyou, where 70-80 per cent of Chinese furniture is made,” he added.

According to him, the Chinese authorities were cracking down on illegal trade in red sanders. The official added that the visit had also helped in clearing doubts regarding prospective Chinese buyers of red sanders, with the office of CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) in Beijing agreeing to allow it in view of the permission received by the Andhra Pradesh government to export the wood.

With the Union government agreeing to extend the time-limit for disposal of red sanders by six months from October 31, he said a notification in this regard by the Ministry of Commerce and Industry was expected on Monday or Tuesday. The State government had sought extension of time on the ground that the auction could not be held within the stipulated time owing to elections and State bifurcation.

Source:- thehindu.com

Protocol to India-Poland DTAA cuts down tax rates: 10% tax on dividend and interest, 15% tax on roya

IT/ILT : Section 90 of The Income-Tax Act, 1961 - Double Taxation Agreement - Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries – Poland

Govt. notifies comprehensive DTAA with Colombia

IT/ILT : Section 90 of The Income-Tax Act, 1961 - Double Taxation Agreement - Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries – Columbia

CBDT keeps tolerable limit for ALP unchanged for Assessment Year 2014-15; "wholesale trading" define

IT/ILT : Section 92C of the Income-Tax Act, 1961 - Transfer Pricing - Computation of Arm’s Length Price - Notified Tolerable Limit for Determination of ALP

Fee to allow use of technology for 3 yrs without supply of know-how during that period was taxable i

IT/ILT : Where assessee, a subsidiary of US based company, entered into an agreement during relevant year whereby it received certain amount as licence fee for granting right to use technology relating to manufacturing a particular model of tractor for three years, in view of fact that after execution of agreement, no services or know-how was to be supplied during next three years, entire licence fee was to be taxed in assessment year in question even though payment had to be deposited in escrow

HC directs Commissioner(A) to decides assessee’s appeal as he had made pre-deposit before Tribunal

CST & VAT: Where First Appellate Authority dismissed appeal on account of non payment of pre deposit and Tribunal on deposit of said amount decided appeal on merits, matter was remanded to First Appellate Authority for decision afresh on merits

Sums paid to NR providing consultancy on Nahar Pariyojna studies weren’t taxable in absence of its P

IT/ILT : Where a foreign company, which had no PE in India entered into consultancy agreement with Indian entity and received certain payment which it paid to its sub-consultant for carrying out civil work, said sum could not be treated as income of foreign company

No writ against certificate proceedings under Bihar Recovery Act as alternate remedy was available t

CST & VAT : Where assessee-company filed writ petition for quashing certificate proceedings initiated against it under Bihar and Orissa Pubic Demands Recovery Act, 1914, since said Act contained a detailed mechanism for redressal of grievance of assessee, writ petition could not be entertained

Tribunal was justified in deciding all aspects of case when SC directed it to hear matter afresh: HC

IT : Where in course of appellate proceedings, Supreme Court remanded matter back with a direction to Tribunal to hear matter afresh, in such a case, Tribunal did not commit any error in deciding all aspects of matter which were subject matter of appeal

Market price for purposes of excise rebate means a price in export market at time of exportation of

Central Excise : For rebate under rule 18 of Central Excise Rules, 2002, market price must necessarily refer to : (i) market where goods are sold i.e., export market and (ii) time at which goods are exported; therefore, market price in India or market price in export market after exportation are not relevant

A policy can’t be held as ‘Keyman Insurance Policy’ unless it is a pure life insurance policy on lif

IT : Where assessee purchased Insurance Policies, in view of fact that only a fraction of total premium was meant for risk premium and balance was for deployment of purchase of units i.e. investment in units, policies in question could not be regarded as 'Keyman Insurance Policies'

Payments made to foreign agents for mobilising sales outside India are outside the ambit of ‘FTS’

IT/ILT: Where assessee made payment of selling commission to its agent located abroad for mobilising its sales in foreign countries, since said services were not in nature of managerial services, payment in question was not taxable in India as 'fee for technical services' under section 9(1)(vii)(b)

Non-payment of tax along with return couldn’t be penalized if tax was paid only after SC’s order aga

CST & VAT : Where assessee contested its liability to pay sales tax right upto Supreme Court and after decision of Supreme Court Assessing Officer framed assessment of assessee and also levied penalty upon it under section 12B(4) of Karnataka Sales Tax Act for non payment of tax alongwith returns, levy of penalty was not justified

Removal of petitioner-director without giving any hearing chance to him proved act of oppression by

CL : Where petitioner-director was removed from directorship without complying with statutory provisions of section 284 of the 1956 Act and conduct of respondents towards petitioner had been consistently unfair, harsh and lacked probity, same amounted to illegality and acts of oppression

HC dismissed writ against pre-deposit order of Commissioner (Appeals), as such order was appealable

Excise & Customs : A pre-deposit order passed by Commissioner (Appeals) exercising power under section 35F, is an order passed in an appeal filed under section 35 read with section 35A and shall be appealable to CESTAT under section 35B(1)(b)

Depreciation allowed on asset acquired under genuine sale-lease back transaction followed by payment

IT : Transaction of sale and lease back by assessee finance company being genuine, it would be entitled to depreciation on leased out machinery

Centre Promises Relief To Rubber Growers

The Centre will give top priority to providing relief to rubber growers in crisis because of the fall in prices, Union Commerce Minister Nirmala Sitharaman said today.

“The priority will be on giving some relief to growers,” the Minister told reporters here, adding that the concerns related to rubber imports would also be addressed.

“Many small growers have stopped tapping rubber as prices have come down. Many are unable to pay workers and are left with nothing after paying wages and this will be addressed first,” she said.

The Minister, who had met representatives of rubber growers, traders and tyre manufacturers here yesterday, said the inputs she had received were more relating to problems faced by the rubber industry.

Asked whether the tyre industry was importing more than the required quantity of rubber, the Minister said figures showed import was much more than the demand-supply gap. However, there is no proof that the imports are by the tyre industry, she said.

Rubber Mark, the apex federation of primary cooperative rubber marketing societies, has suggested setting up of a ?1,000 crore price stabilisation fund to compensate the loss to farmers due to price fall.

It is pointed out that the price of natural rubber has come down in the range of ?121-123 a kg, which is the lowest in the last five years.

The federation in a memorandum submitted to the visiting Minister, requested suspension of rubber imports from September to January, the peak season of production. It also demanded hike in the import duty on rubber for both tyre and non-tyre sectors to at least 30 per cent.

According to S Ratnakumaran, Managing Director, Rubber Mark urged the government to include in the forthcoming National Rubber Policy a ?200 crore Marketing Revolving Fund for the federation to pay for rubber procured from cooperative marketing societies.

This has been necessitated following the wipe-out of the working capital on account of the heavy loss incurred through rubber procurement. The federation has 38 member societies and more than 500 primary credit cooperatives as dealers.

In view of the policy announced by the Centre for making indigenous products, the memorandum also suggested the government to set up joint venture industries for rubber-based products with the support of cooperatives involved in rubber industry for value addition.

There was also a request to declare Rubber Mark as the nodal agency for procuring rubber and to route all funds from the Centre for various schemes connected with the sector. During 2002-03, the federation had procured and exported 20,000 tonnes as directed by the Commerce and Industries Ministry.

Source:- thehindubusinessline.com

Non-production of C Form to attract interest from date of filing of return and not from date of asse

CST & VAT : Where assessee could not produce 'C' form in respect of inter-State sale and thereupon Assessing Authority levied tax on such sale at higher rate and also levied interest from date of filing of return, levy of interest from date of filing of return was justified

AO is debarred from taking those issues in search assessment that can be considered in regular asses

IT : When income has already been reflected in books of account of assessee and disclosed in return of income much prior to initiation of proceedings under section 153C, Assessing Officer cannot initiate proceedings under section 153C to assess such income as unexplained cash credit

Indian Textiles Fair Starts Today

A two-day exhibition begins today in Dhaka to showcase a variety of Indian textile products used in the apparel sector in Bangladesh.

The event is being organised by the Synthetic and Rayon Textiles Export Promotion Council of India in association with the High Commission of India in Dhaka, Sanjeev Saran, convener of Export Promotion Committee, said at a press conference at Sonargaon Hotel in Dhaka yesterday.

“We are here in Bangladesh as collaborators, not competitors. Bangladesh has a very vibrant garment sector. India is also a big destination for backward integration for the Bangladeshi garment sector,” said Saran.

A wide range of textile products such as polyester spun yarn, viscose yarn, suiting clothes, ladies' dress fabrics and home textile fabrics are being displayed by 22 Indian companies at the seventh edition of the exhibition.

The exhibition will remain open for all from 10am to 7pm at the Ball Room of Sonargaon Hotel.

In the past five years, the export of synthetic and blended textiles from India to Bangladesh rose from $124 million in 2009-10 to $237 million now.

Source:- thedailystar.net

India, Russia Trade May Touch $15B By 2015

India's bilateral trade with Russia is expected to reach $15 billion by 2015-end on the back of initiatives taken by exporters to tap that market in the wake of sanctions imposed by EU on Russia.



Currently, the two-way commerce between the countries stood at around $10 billion.The sanctions imposed by the EU on Russia gives huge scope and opportunity for Indian traders in sectors, including agro-products, chemicals and textiles to capture the Russian market. We need to tap that space, Federation of Indian Export Organisations (FIEO) President Rafeeq Ahmed told PTI.



The organisation has recently organised a three-day 'India Show' here.



The US and the European Union have imposed economic sanctions on the Ukraine issue.



Ahmed said that exporters received good business orders and inquiries from Russian businesses in the exhibition, where over 100 Indian exporters showcased their products from sectors including pharmaceutical, leather, agriculture, steel and textiles."Our initiatives would help in pushing our bilateral trade with Russia to $15 billion by the end of 2015," he said.



However, he added that domestic traders are facing few big challenges in the Russian market."Banking is a big challenge. The Russian market is still non-transparent. Customs clearances are still a big problem for us. We need to work on these issues by engaging with Russian authorities," Ahmed said.



He also said similar shows would be organised in Africa and Latin American countries to boost India's overall exports.Growth rate of India's merchandise shipments slipped to a five-month low of 2.35% in August at $26.95 billion, pushing up the trade deficit to $10.83 billion.



"EU market is not performing well. There are problems in Germany, France and Italy. Due to this, we are lowering our exports forecast to around $340 billion for the current fiscal from the earlier projection of $350 billion-$360 billion.

Source:- mydigitalfc.com

Driven By Demand Gold Imports Likely To Double This October

India's gold imports are likely to double in October, driven by demand from consumers who purchase jewellery during the festival season. But investment demand, usually in the form of coins and bars, is likely to be less this year, which in turn may reduce the volume of gold entering the country through illegal routes, say industry executives.

The bullion industry pegs gold imports at 80 tonnes next month."Last year during October, we had imported around 35-40 tonnes of gold. Gold availability was under pressure due to the 80:20 rule," Prithviraj Kothari, vice-president of the Indian Bullion & Jewellery Association, told ET.

"But now the process of getting gold has eased and we are expecting 80 tonnes of gold imports as there is demand for the yellow metal in the market."

The 80:20 rule was introduced last year to reduce gold imports, which were straining the country's current account. Under the rule, agencies that import gold have to ensure that 20% of the shipment is exported after adding value, such as by turning them into jewellery. This led to the agencies slowing down imports, as they weren't sure how to ensure the export requirement, leading to a drop in gold availability in the local market. This rule, and a 10% import duty on gold, have also led to an increase in gold smuggling.

According to Kothari, entry of gold through illegal routes gathers momentum if there is a sudden surge among investors for the yellow metal. If investors sense that gold will generate good returns they start putting in money in gold.

But as of now investors are not finding gold as an attractive investment option vis-a-vis equity though the equity market has slipped this week, he said.

Investment demand for gold has dropped by 67% from a year earlier to 49.6 tonnes during the second quarter of 2014, according to the World Gold Council. However, if the capital market enters into a bearish phase, then investors may start looking at gold again, said industry executives.

"In that case, there will be pressure on the supply side which may see premium on gold going up ... which may then result in entry of gold through the illegal route as this gold carries very little premium," said Bachhraj Bamalwa, a member of the All India Gem & Jewellery Trade Federation. "At present, gold through the official route is commanding a premium of $7 per troy ounce, which is lowest in recent times."

Premium is what bulk buyers pay for immediate delivery of the metal.Bamalwa expects gold imports to total 70-80 tonnes this October.

He said at present, the ratio between gold jewellery and investment demand is 90:10, which means most of the gold buying is in the form of jewellery. According to analysts, gold will not give much return in the near term as internationally prices are dropping. "If someone wants to invest for the long term, say for a year, then he can expect some return. That is why there is very less demand for gold in the market," said Hareesh V, senior analyst at Geojit Comtrade.

"Investors across the globe are on a wait and watch mode. Prices in India could have been lesser if the rupee had not weakened against the dollar," Hareesh added.In the international market, gold may drop below $1,200 level, and may fall to as low as $1,180 mark, analysts said. In the local physical market, gold was trading at Rs 27,000 per 10 gms.

"There is demand for gold jewellery and people are keen to buy at this price level," said Saurabh Gadgil, director of Pune-based jewellery firm PN Gadgil.

Source:-economictimes.indiatimes.com

India’S Rare Call For Rice Imports

India is calling for bidders from Myanmar in a rice tender for the northeastern corner of the country, the first such large request in years, according to rice dealers.

India has long been one of the world’s largest rice exporters and a frequent competitor with Myanmar in third-country markets, but a September 19 Reuters report said a plan to broaden a railway in the northeast requires temporary rice imports.

Myanmar traders say they are keen to begin exports to India, which has seldom required rice imports, as it may lead to chances for future trade.

“It’s a good opportunity for Myanmar,” said U Chan Thar Oo, vice president of the Muse Rice Wholesale Centre. “The Myanmar rice market currently depends on China – but the more markets we have, the better.”

While Indian officials had initially targeted finishing the first tender by September 23, the process was delayed due to technical reasons, according to Indian newspaper Business Standard.

Myanmar rice traders said the country’s exporters should take advantage of its position between the world’s two most populous nations.

Although the tender is not too big, it may begin long-term relationships, said U Aung Than Htun, president of the Mandalay Rice Association.

Source:- mmtimes.com

Govt Relaxes Iron Ore Pellet Export Norms For Kiocl

The government has allowed state- owned Kudremukh Iron Ore Company (KIOCL) to directly export iron ore pellets in a bid to revive the cash-starved company.



"KIOCL Ltd (formerly known as Kudremukh Iron Ore Company Ltd) has been permitted to export its own manufactured iron ore pellets either by itself or through any entity authorized by them for the purpose," Directorate General of Foreign Trade (DGFT) has said in a notification

Source:- ptinews.com

Time For Cbec To Shed Gatekeeper Approach

The Central Board of Excise and Customs (CBEC) should immediately commence work on the development of a Customs vision and strategic plan, the Tax Administration Reforms Commission (TARC) has suggested.

In its second report submitted to the Government, the TARC said the vision document and the strategic plan should set out the goals and the implementation strategy that will ensure Customs department’s place among “best-in-class” customs administrations.

The strategy must enhance customer focus and proactively promote voluntary compliance and should include measures like customer guidance in the form of self-assessment check-lists, manuals containing standard operating procedures and fully updated, user-friendly and reliable website.

TARC also said there is a need to institute a robust framework which will address data and information exchange.

Core clearance



The CBEC should revamp its core clearance process and aim at aligning with the best international practices to ensure that cargo moves seamlessly through Indian ports and airports and build substantial capacities to the area of post-clearance audit, the TARC has said.

It should abandon the “gatekeeper” approach underlying the current control mechanism as it is ineffective and promotes rent seeking, the report said.

Technology, logistics



Parthasarathi Shome-headed TARC has also suggested that CBEC should commence work on building a new generation system to replace the current ICT systems.

Customs should leverage the adoption of the emerging “Internet of things” by the logistic industry to real-time tracking of movement of goods across the supply chain, including to container freight stations, inland container depots and special economic zones and eliminate dilatory, costly and unreliable paper-based processes.

TARC also wants Customs to move away from its traditional administrative approach towards a more proactive and wholesome compliance management system.

Customs should also move away from excessive revenue orientation to be able to fulfil its mandate in areas such as supply chain security and effective implementation of responsibilities in trade-related areas, the report said.

Source:- thehindubusinessline.com

Rupee Down 25 Paise Against Dollar In Early Trade

The rupee depreciated by 25 paise to 61.40 against the US dollar in early trade today at the Interbank Foreign Exchange due to month-end demand for the US currency from importers amid a weak opening in the domestic equity market.



Forex dealers said besides the dollar's gains against other currencies overseas after US data showed the economy expanded at its fastest pace since 2011 during the April-June quarter, fresh demand from importers for the American unit put pressure on the rupee. ..



Source:- economictimes.indiatimes.com

HC validates affixation of order under mahazar before two witnesses when assessee wasn’t available

Service Tax : Pasting adjudication order on premises of assessee under a Mahazar before two independent witnesses, when assessee was not available in premises and premises was also locked, is a valid service under section 37(1)(b) of Central Excise Act, 1944

Statutory remedy available against oppression couldn't be affected by arbitration clause in the agre

CL : Statutory remedy under sections 397 and 398 of Companies Act, 1956 is not affected by arbitration clause under section 8 of Arbitration and Conciliation Act, 1996

DRP rightly ordered exclusion of comparables as they had related party transactions exceeding 25%, s

IT/ILT : Where in course of determination of ALP in respect of non-banking investment advisory services rendered by assessee to its AE, DRP directed exclusion of three comparables having related party transactions in excess of 25 per cent, in view of order passed by coordinate Bench of Tribunal in case of Willis Processing Services (I) (P.) Ltd. v. Dy. CIT [2013] 57 SOT 339/30 taxmann.com 350 (Mum.) impugned finding recorded by DRP did not require any interference

Cases involving misdeclaration or smuggling can also be settled by SetCom, rules HC

Excise & Customs : Word 'otherwise' in customs section 127B and Words 'any proceedings' in definition of 'case' show that even cases involving smuggling or misdeclaration are admissible before Settlement Commission

No sec. 69 addition if deviation in Qty. of stock shown in books and in statements given to banks wa

IT: Where having regard to difference in figures of closing stock in statement submitted to bank for taking loan and in books of account on last day of relevant financial year, Assessing Officer made addition as unexplained investment, in view of fact that assessee submitted a reconciliation statement wherein said difference was explained as sales which remained uncontroverted, impugned addition deserved to be set aside

AO could attach property to recover VAT dues of assessee even when such mortgaged property was acqui

CST & VAT: Where assessee had mortgaged his properties with a bank in year 2004 and subsequently in SARFAESI proceedings said properties were sold in years 2009 and 2010 and bank was purchaser and long after sale was concluded, for realising sales tax dues of assessee for assessment years 2003-04 and 2004-05, Assessing Officer initiated recovery proceedings against properties in question and issued attachment notice to bank, initiation of recovery proceedings against petitioner-bank was valid in

HC allowed sec. 10A relief as it was proved that receipts of arbitration award weren’t included in e

IT : Merely because payment against impugned invoice of software export was received in advance, section 10A exemption could not be denied on ground that it was an arbitration award as stamp paper purportedly for arbitration was purchased prior to raising such invoice

Benefit of Article 8 of India-Malaysia DTAA is available for shipping of goods under a slot charter

IT/ILT : Benefit of Article 8 of the Indo-Malaysia DTAA is also applicable to shipping of goods from Indian Port to Hub Port using feeder vessels under a space charter or slot charter as the entire voyage from the Indian Port to final destination port is inextricably linked and cannot be segregated. "Operation of ship" for Article 8 purposes can be done as charterer which does not mean to own or control the ship either as owner or as a lessee The word "charterer" should not be confused with the

Delay in filing appeal can be condoned on sufficient cause shown without considering plea of substan

Service Tax : While considering applications for condonation of delay, concepts such as 'liberal approach', 'justice oriented approach', 'substantial justice' cannot be employed to jettison substantial law of limitation especially, in cases where Court concludes that there is no justification for delay

ITAT allows sec. 54EC relief even for investment made beyond due date considering old age and illnes

IT: Where assessee, aged 94 years, sold his residential property, in view of fact that due to his extreme old age and illness, he deposited sale proceeds in REC bonds with a delay of 59 days, it was to be concluded that assessee's case was governed by doctrine of supervening impossibility and, therefore, he was entitled to claim deduction under section 54EC

CBDT reconstitutes DRPs at Delhi, Bengaluru and Mumbai

IT/ILT : Section 144C of The Income-Tax Act, 1961 - Dispute Resolution Panel (DRP) - Reference to - Constitution of DRP-III at Mumbai

CBDT reconstitutes DRPs at Delhi, Bengaluru and Mumbai

IT/ILT : Section 144C of The Income-Tax Act, 1961 - Dispute Resolution Panel (DRP) - Reference to - Reconstitution of DRP-II at Bengaluru

CBDT reconstitutes DRPs at Delhi, Bengaluru and Mumbai

IT/ILT : Section 144C of The Income-Tax Act, 1961 - Dispute Resolution Panel (DRP) - Reference to - Constitution of DRP-IV at Delhi

CBDT notifies jurisdiction of DRPs at Delhi and Bengaluru

IT/ILT : Section 144C of The Income-Tax Act, 1961 - Dispute Resolution Panel (DRP) - Reference to - Reconstitution of DRPS at Delhi – Modification of Order No.7/FT&TR/2014, dated 14-11-2013

CBDT directs AO to enquire into only AIR data/26AS mismatch issues if scrutiny is made on this basis

IT/ILT : Section 143, read with Section 142 of The Income-Tax Act, 1961 – Assessment – Scope of Enquiry in Cases Selected for Scrutiny During Financial Year 2014-15 on Basis of AIR/CIB/26AS mismatch

CBDT directs AO to enquiry into only AIR data/26AS mismatch issues if scrutiny is made on this basis

IT/ILT : Section 143, read with Section 142 of The Income-Tax Act, 1961 – Assessment – Scope of Enquiry in Cases Selected for Scrutiny During Financial Year 2014-15 on Basis of AIR/CIB/26AS mismatch

Comparables can’t be chosen on basis of info obtained under Sec. 133(6) if it’s not made available t

IT/ILT : No company can be selected as comparables only on basis of information obtained under section 133(6), without furnishing such information to assessee

No refund of duty under Rule 173L if returned goods were used to manufacture goods belonging to a di

Excise & Customs : As per rule 173L, no refund of duty is admissible in respect of duty paid goods, which are disposed of in manner other than for production of goods of same class; hence, where returned goods were not used for production of goods of 'same class' i.e., same sub-heading, refund was not permissible

Mere entries in diary couldn't prove violation of FERA norms without any evidence furnished by ED

FERA: Mere diary entry without any credible corroborative evidence being produced by Enforcement Directorate, could not be held to be pertained to foreign exchange transactions

HC directs appellate authority to consider export claim of assessee after verifying his Form H

CST & VAT : Where lower authorities had disallowed assessee's claim for sale in course of export on account of non-production of Form 'H', matter was restored to First Appellate Authority for adjudication afresh with respect to Form 'H' relied by assessee

Concealment penalty rightly levied for claiming depreciation on non-existent asset: Karnataka HC

IT : Where assessee claimed depreciation on non-existent assets, penalty was to be levied for filing inaccurate particulars of income

No suo-motu revision by revisional authority without giving reasons for setting aside order of Appel

CST & VAT : Where Revisional Authority initiated revisional proceedings against assessee and set aside order passed by Appellate Authority, if he was of opinion that order of Appellate Authority was prejudicial to interest of revenue, it was for him to assign reasons for setting aside same

Higher fair market value estimated by DVO isn't sufficient to confirm additions under Section 69B

IT : Where assessee had offered a reasonable and plausible justification regarding actual consideration of sale/ purchase transactions relating to property in question and revenue had failed to discharge its burden to prove, addition made by revenue under section 69B to be deleted

SEBI's circular providing for monthly/quarterly settlement of client's accounts is mandatory

SEBI : Circular issued by SEBI dated 3-12-2009 providing for concept of monthly or quarterly running settlement of clients accounts by brokers is mandatory

Even before 2013 protocol, treaty benefits allowed to fiscally transparent firm if its profits were

IT/ILT : Where assessee a U.K. based partnership firm engaged in 'rendering' legal services in India had PE in India in terms of article 5(2)(k) of India UK DTAA, profits attributable to PE were taxable under article 7 of India UK DTAA

High Court extends time-limit for making pre-deposit after considering the financial hardship of ass

Service Tax : Where assessee could not make pre-deposit in time (or extended time) due to financial constraint, High Court extended time-limit for pre-deposit

Norms on 'Infrastructure Investment Trusts' notified

SEBI/INDIAN ACTS & RULES : SEBI (Infrastructure Investment Trusts) Regulations, 2014

SEBI notifies norms on 'Real Estate Investment Trusts'

SEBI/INDIAN ACTS & RULES : SEBI (Real Estate Investment Trusts) Regulations, 2014

HC stays recovery of tax on its partial deposit on reasoning that Excise Act grants stay on similar

IT: HC stays recovery of tax on its partial deposit on reasoning that Excise Act grants stay on similar conditions

Tribunal can review validity of pre-deposit ordered by Commissioner(A), yet it can’t adjudicate appe

Service Tax : In an appeal against final order of Commissioner (Appeals) dismissing appeal for default of pre-deposit, Tribunal cannot adjudicate upon merits of appeal, but may review correctness of pre-deposit ordered by Commissioner (Appeals)

Loss arising due to share dealing wasn’t speculative if assessee had only carried out solitary trans

Solitary transaction of purchase and sale of shares in which assessee incurred loss due to fall in value of share, did not constitute assessee's business and loss could be set off against assessee's profit from other businesses

SC: HC couldn’t issue directions to CIT on issue which was already dropped and not raised by him bef

IT : Where proceedings under section 12AA(3) had already been dropped by Commissioner and this was not an issue before High Court in writ petition, High Court was not justified in issuing direction to Commissioner to pass an order under section 12AA(3)

CBDT mandates issue of nil TDS certificate to deductor and lower TDS certificate to recipient of inc

IT/ILT : Income-Tax (Ninth Amendment) Rules, 2014 – Amendment in Rule 28AA and Substitutiton of Form No.13

No deduction against Form ST-1 in respect of sales if assessee had sold goods to unregistered dealer

CST & VAT: Where assessee claimed deduction in respect of electronic goods sold to another registered dealer 'N' against form ST-1, since 'N' did not hold a registration certificate with respect to electronic goods, assessee was not entitled for deduction

Money found credited in saving account of assessee added to his income on his failure to prove sourc

IT : Where assessee failed to produce evidence in respect of source of amount found in saving bank account, addition was to be made as unexplained money

RBI approves of 'SME Rating Agency of India' for rating of fixed deposits of NBFCs

NBFCs : Rating of Fixed Deposits of NBFCs - Eligible Credit Rating Agencies – SME Rating Agency of India Ltd. (SMERA)

Event arising after expiry of time-limit for filing review petition couldn’t be considered in condon

Excise & Customs : Sufficient cause for condonation of delay must be referable to period prior to expiry of limitation; any event or circumstance arising after expiry of limitation cannot constitute such sufficient cause

Issue of levy of ship charges in breach of gas transportation agreement raises no competitional issu

Competition Law : Issue of reasonable levy of 'Ship or Pay' charge on shipper of gas by transporter in violation of gas transport agreement was to be decided by appropriate forum; it raised no competition issue

Revenue had rightly taxed capital gains on sale of property in the year in which its possession was

IT: Where assessee filed his return for assessment year 2007-08 declaring capital gain from sale of property, in view of fact that sale deed was executed on 3-9-2005 and possession of property was also handed over on same date, revenue authorities rightly concluded that capital gain in question was to be assessed in assessment year 2006-07

No deemed concealment if additional income was declared by assessee pursuant to search via belated r

IT: In absence of any limitation or restriction relating to words 'due date' given in clause (b) of Explanation 5A to section 271(1)(c), it cannot be read as 'due date' as provided in section 139(1) alone rather it can also mean date of filing of return of income under section 139(4)

Interest paid on borrowings used for investment in foreign co. disallowed as this wasn’t assessee’s

IT : Where interest paid on borrowals utilized for investments in a foreign company was not in course of assessee's business, its claim for deduction under section 36(1)(iii) was to be rejected

High Court upheld penalty on assessee’s failure to file monthly VAT returns and pay VAT dues

CST & VAT : Where assessee had failed to submit monthly returns and to make payment of tax due, non-filing of returns and non-payment of tax due was not a technical offence and imposition of penalty under section 45A was justified

Sec. 10(23C): Apart from annual grants, other grants are also relevant to check whole/substantial fu

IT: Word 'wholly or substantially financed by Government' cannot be confined only to annual grants as apart from providing annual grant, if Government grants land, invests money in building and infrastructure and also running educational institution all that has to be taken into consideration to decide whether institution is wholly or substantially financed by Government in order to become eligible to claim exemption under section 10(23C)(iiiab)

Place of issuing notice on dishonour of cheque doesn't confer jurisdiction upon Court to take cogniz

Negotiable Instruments Act : Place of issue of a statutory notice cannot constitute a valid ground for conferring jurisdiction upon Court concerned to take cognizance of an offence under section 138

TPO couldn't make consulting company a 'comparable' for marketing company for TP adjustments

IT/ILT : Functionally dissimilar companies cannot be selected as comparables

Transportation charges incurred by supplier of LPG would form part of its sale price under Karnataka

CST & VAT : Where assessee issued credit note to purchaser of goods subsequent to date of invoice and claimed deduction of same from taxable turnover stating that it was discount given to purchaser, since discount was given after completion of sale, assessee was not entitled to deduction

SC : National Tax Tribunal Act held as unconstitutional; CS ineligible to appear before National Tax

IT : SC : National Tax Tribunal Act unconstitutional; Company Secretaries ineligible to represent parties in appeal before NTT

Now the Madras High Court directs CBDT to extend the due date for filing return to November 30, 2014

IT/ILT : Now the Madras High Court directs CBDT to extend the due date for filing return to November 30, 2014

Palm Oil Export Battle To Dominate India Conference

Competing efforts by leading palm oil producers Indonesia and Malaysia to raise exports of the tropical oil and the impact of falling crude oil prices on biodiesel demand will be the primary focus of an industry conference in India this week.



At the Globoil India 2014 meeting that starts in Mumbai on Friday, edible oil traders and analysts are also likely to discuss rising palm oil inventories and an expected bumper US soybean crop, and the combined impact on palm oil prices that dropped to a five-year low early this month.



"The market is oversupplied. Industry officials are keen to know the impact of competition between Indonesia and Malaysia to export more palm oil by reducing export taxes," said B.V. Mehta, executive director of the Mumbai-based industry body Solvent Extractors' Association of India (SEA).



Malaysia, the world's second biggest palm oil producer, has allowed duty free exports of crude palm oil for September and October, and rival top producer Indonesia is likely to respond with the same export incentive from October.



"I don't think anyone would be bullish at the conference," said a Mumbai-based dealer with a global trading firm.



Both Malaysia and neighbour Indonesia set export taxes on a monthly basis. Prior to its announcement, Malaysia's export duty for crude palm oil was set at 4.5 per cent for September, down from 5.0 per cent in August. Indonesia set its September rate at 9 per cent compared to 10.5 per cent in August.



The competition between the producers could depress palm oil prices and make it more attractive over other edible oils like those from soybeans and sunflowers, said the Mumbai-based dealer.



"Indian and Chinese importers ... are getting edible oils at lower prices during their peak consumption period," the dealer said.



India's vegetable oil imports typically peak between August and October when Indians celebrate a number of festivals and consumption of fried and calorie-laden food rises.



Top edible oil importer India shipped in a record 1.3 million tonnes of vegetable oils in August.With Brent crude falling to its lowest in more than two years this week, traders and analysts will also be looking for any clues to the impact on biodiesel demand, said Faiyaz Hudani, associate vice president at Kotak Commodity Services.After hitting a five-year low at 1,914 ringgit on Sept. 2, palm oil futures have climbed back to 2,193 ringgit on Thursday.

Source:- economictimes.indiatimes.com

Norway Sees Potential In Fish Exports To India

With over one billion people and an economy in expansion, the Norwegian Seafood Council sees an increased opportunity for selling fish to India.

"Norway currently has no free trade agreement with India, but we see the potential for it to fall into place," said Ingelill Jacobsen, Norwegian Seafood Council.

From 24 to 31 October, the Norwegian Seafood Council will hold a seminar and reception in New Delhi and Mumbai.

The aim is to inform Norwegian exporters about opportunities in the market but also let the Indian players get better acquainted with Norwegian seafood.

Several regions in Asia are experiencing rapid economic growth as well as population growth. India is the world's second most populous country with a population of about 1.22 billion people.

"There is a market with great potential. It is also a country with many vegetarians, and among these there are many who eat seafood. We therefore believe there are good opportunities in this market," said Mr Jacobsen.

"Foreign retailers have not been allowed to establish themselves here, but we think we will. For the time being we will concentrate on two of the country's most populous cities, New Delhi and Mumbai."Doing business in India requires cultural and social understanding.

"We will therefore leave the Norwegian players to get an analysis of the market, but also to learn from the experiences of others about what is required in this market. We also want them to learn a little about Indian traditions so that they are given the chance to see how the Norwegian seafood can fit in.

Source:- thefishsite.com

SC : Claim of 'BSE', being secured creditor of defaulting member, had priority over income-tax dues

CL : By virtue of lien on securities under rule 43 of Stock Exchange Rules, Stock Exchange, being a secured creditor would have priority over Government dues and, therefore, if a member of a Stock Exchange was declared a defaulter, Income-tax Department would not have priority over all debts owed by defaulter member

HC follows SC's ruling in Sandvik's case; directs revenue to pay compensation if payment of interest

IT : If tax, interest, penalty, etc., has been collected in excess and it is withheld beyond permissible period under Act, Revenue should compensate for same

Rway Sees Potential In Fish Exports To India

With over one billion people and an economy in expansion, the Norwegian Seafood Council sees an increased opportunity for selling fish to India.

"Norway currently has no free trade agreement with India, but we see the potential for it to fall into place," said Ingelill Jacobsen, Norwegian Seafood Council.

From 24 to 31 October, the Norwegian Seafood Council will hold a seminar and reception in New Delhi and Mumbai.

The aim is to inform Norwegian exporters about opportunities in the market but also let the Indian players get better acquainted with Norwegian seafood.

Several regions in Asia are experiencing rapid economic growth as well as population growth. India is the world's second most populous country with a population of about 1.22 billion people.

"There is a market with great potential. It is also a country with many vegetarians, and among these there are many who eat seafood. We therefore believe there are good opportunities in this market," said Mr Jacobsen.

"Foreign retailers have not been allowed to establish themselves here, but we think we will. For the time being we will concentrate on two of the country's most populous cities, New Delhi and Mumbai."Doing business in India requires cultural and social understanding.

"We will therefore leave the Norwegian players to get an analysis of the market, but also to learn from the experiences of others about what is required in this market. We also want them to learn a little about Indian traditions so that they are given the chance to see how the Norwegian seafood can fit in.

Source:- thefishsite.com

Frozen Shrimp Now Accounts For 78% Of The Total Seafood Consignments From India

Global shortage of farmed shrimp continues to boost India's seafood export prospects. After crossing the Rs30,000-crore mark last year, the shipments have shown nearly 30% rise till the end of July with vannamei shrimp bringing in a significant part of the revenue.



Frozen shrimp now accounts for 78% of the total seafood consignments from India, up from 71% in the same period last year. Another notable feature is that exports to the European Union and Middle East have increased during four months.



Frozen shrimp now accounts for 78% of the total seafood consignments from IndiaSeafood exports from India totalled 2,41,600 tonne valued at Rs9,345 crore during the period April-July 2014. Though there is only a marginal increase in quantity, the value is up by 29%, indicating good prices for Indian shrimps.



"Middle East countries have been buying lot of Indian seafood, particularly Egypt, Saudi Arabia and UAE. There has been failure of white shrimp crop in Saudi Arabia," said Anwar Hashim, managing director of Abad Fisheries, a leading exporter. The prices of Indian shrimp, he said, increased from Rs500 to Rs650 per kg , though it has come down in the recent weeks.



Indian aquaculture farms are breeding more shrimps to meet the demand, encouraged by good prices for shrimps in the global market. The shrimp farms in South East Asia are gradually recovering after the early mortality syndrome (EMS) disease attack.



"Last year our production was around 3 lakh tonne. This year it could be 25,000 tonne more as the demand is still good," said L Satyanarayana, president of All India Shrimp Hatcheries Association. The farming is mainly concentrated in the eastern parts of the country mainly in Andhra Pradesh, Tamil Nadu, Orissa and West Bengal. It is also picking up in Gujarat.



Thailand is the main producer of cultured shrimp in the world. But after the disease attack, the production has dropped from an average 6 lakh tonne to 2.6 lakh tonne. "There is still a shortage of around 3.4 lakh tonne," Satyanarayana said.



Globefish, a unit of FAO Fisheries and Aquaculture Department says in its reports that Indian farmers have been holding stocks in their ponds from mid-June onwards following renewed import inquiries from the US and European Union. The farms are moving away from black tiger variety of shrimp in favour of vannamei.According to the report, there has been a 40% reduction in black tiger shrimp production in India in 2013.

Source:- economictimes.indiatimes.com

India Has Potential To Become World's Biggest Car Maker Kenichi Ayukawa, Maruti Suzuki

Stating India has the potential to become the biggest car manufacturer of the world, country's top car maker Maruti Suzuki today hoped factors adversely affecting competitiveness of manufacturing will be removed quickly, in line with Prime Minister Narendra Modi's call to make India a manufacturing hub.



"Costs of production in India increase because of various government policies, procedures, regulations and the way some of the laws are implemented," said Kenichi Ayukawa, Managing Director and CEO, Maruti Suzuki India Ltd, at the 'Make in India' campaign.



Stating that India is not the easiest country to do business in, he said, "We are fully confident that, under the Make in India programme of the Prime Minister, factors that adversely affect the competitiveness of manufacturing will now be removed quickly," he said adding India will then become one of the most competitive manufacturing countries in the world.



Welcoming Modi's call to 'Make in India', he said Maruti Suzuki was amongst the very first multi-national corporation companies to start a major manufacturing operation in India in 1983.



"Over 30 years ago, Osamu Suzuki, Chairman, Suzuki Motor Corporation, recognised the potential of India, both as a market and as a country where high quality manufacturing was possible," he said, adding globally, Maruti Suzuki is the most successful venture of Suzuki group.



He said the cars Maruti Suzuki makes in India are lower in costs than similar products made by it in other parts of the world.



This enabled Maruti to start exporting cars in 1986 to several countries including western Europe. Suzuki Japan made India its manufacturing hub for compact car Zen in 1994 for export to European countries.



Since 1983, Maruti has been making special efforts to develop a vibrant component manufacturing industry in India.



"This, along with the rapidly growing car production and demand, with high local content, and low costs, was largely responsible for all the major car manufacturers of the world establishing production facilities in India," he said.



The growth of the car industry also attracted investments from a large number of global automotive component manufacturers.



"Our experience with Indian managers, engineers and work force, despite an exception in 2012, has been excellent. We have been able to effectively implement work practices based on our Japanese experience, but suitably modified for India, that have resulted in continuous growth of productivity, improvements in quality and lower costs," he said.



India continues to be a major exporter of Suzuki branded cars. Other car manufacturers have also made India one of their manufacturing hubs for exports. Car exports from India have reached the levels of around six lakh units annually."This has been achieved despite the well recognised fact that India is not the easiest country to do business .

Source:-economictimes.indiatimes.com

Rupee Breaches 61 Against Dollar Tracking Weak Stock Market

The Indian rupee was trading weak against the US dollar on Thursday afternoon, as banks sold the local currency noting the weakness in the local stock market and on doubts about the investment sentiment in India following the de-allocation of coal mines by the Supreme Court on Wednesday.

However, dollar sales by state-owned banks likely on behalf of the Reserve Bank of India (RBI) prevented the rupee from falling sharply.

At 1.55pm, the home currency was trading at 61.09, down 0.20% from its previous close of 60.97. It had opened at 60.96 and touched a low of 61.12. India’s benchmark index, Sensex was trading at 26,582.60 points on BSE, down 0.61%.

“The impact is sentimental. Local equities are down and that has spilled over to the rupee. Add to that the fact that the dollar is also stronger overseas has kept the rupee under pressure. If not for dollar sales by state-owned banks, the Indian currency could have fallen more sharply,” said a dealer with a French bank.

The yield on India’s 10-year benchmark bond was trading at 8.476%, compared with its Wednesday’s close of 8.482%. Bond yields and prices move in opposite directions.Since the beginning of this year, the rupee has gained 1.14%, while foreign institutional investors have bought $14.02 billion from local equity markets.The dollar index, which measures the US currency’s strength against major currencies, was trading at 85.395, down 0.42% from the previous close of 85.037.

Source:- livemint.com

Sec. 263 revision was valid if AO had wrongly taken threshold limit for TDS exemption as standard de

IT : Where Assessing Officer passed assessment order taking a view that assessee was not liable to deduct tax at source under section 194C where single payment to transport contractors did not exceed Rs. 20,000, Commissioner, in exercise of revisional power, rightly set aside assessment holding that bifurcation of payments made by assessee was not permissible

Disclosure of income in belated return not to be held as undisclosed even if return was filed after

IT: Where regular return was filed within time prescribed under section 139(4) merely, because it was filed after date of search, income therein could not be treated as undisclosed income

Department can’t initiate penalty proceedings for tax evasions after five years from the relevant da

Excise & Customs : Penalty proceedings must be initiated within a reasonable period and said reasonable period is 5 years from relevant date; thereafter, no penalty proceedings can be initiated

Amendments to sec. 40(a)(ia) allowing deduction on payment of TDS of any month before due date has r

IT : Amendment to section 40(a)(ia) by Finance Act, 2010, which comes into effect from 1-4-2010 is curative in nature and, thus, it has retrospective operation

Steel wire rope, MS plates used directly/indirectly in manufacture of aluminium articles are eligibl

Cenvat Credit : Goods used directly or indirectly in manufacture of final product are eligible for credit; hence, for manufacturer of Aluminium Articles, Alfoc Power; Steel Wire rope; MS Plates and Welding electrodes; Oxygen Gas; Aluminium Welding wire; and PVC Pipes, etc. are eligible for credit

No reassessment if property alleged to have been acquired out of undisclosed income didn’t relate to

IT : Where in course of proceedings relating to reopening of assessment, first respondent passed on order accepting assessee's objection that there was no evidence to connect him with certain properties allegedly acquired out of undisclosed income, he should have dropped reassessment proceedings and, therefore, impugned letter issued by first respondent calling upon assesee to avail of opportunity to cross examine complainant i.e. person, who was author of tax evasion petition, deserved to be qu

Chemicals and dyes used for dying/colouring of fabric under job work weren’t taxable in hands of ass

CST & VAT : Where assessee was also getting job work done on fabric and after processing, which included colouring, dyeing, etc., fabric was returned to customer, chemicals and dyes used in job work were not liable to tax in hands of assessee

Engagement of vendors for e-procurement solutions without bidding process wasn't an abuse of dominan

Competition Law: Engagement of Central Government entities for providing e-procurement solutions in various government departments, PSU's etc., without going through bidding process is not abuse of dominant position by Central Government

CBDT notifies functional jurisdiction of Direct Taxes Regional Training Institutes

IT : Section 120 of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of – Direct Taxes Regional Training Institutes (DTRTIS)

CBDT notifies functional jurisdiction of Ministerial Staff Training Units

IT : Section 120 of The Income-Tax Act, 1961 - Income-Tax Authorities - Jurisdiction of – Ministerial Staff Training Units (MSTUs)

Tribunal can extend stay after passing speaking order that delay isn’t attributable to assessee

Excise & Customs : Tribunal may extend stay each time only after passing a speaking/reasoned order that delay in disposal of appeal is not attributable to assessee

Donation by one charitable trust to other charitable trust amounts to application of income

IT : In order to obtain approval under section 80G(5), donation made by a charitable trust to other charitable trusts/institutions amounts to application of income within meaning of section 11(1)(a)

HC directs fresh adjudication as assessment order was passed by AO without hearing assessee

CST & VAT : Where Assessing Authority passed assessment order on assessee without affording opportunity of hearing, matter was remitted for fresh adjudication after affording opportunity of hearing to assessee

HC follows SC’s ruling in Savdik’s case; directs revenue to pay compensation if payment of interest

IT : If tax, interest, penalty, etc., has been collected in excess and it is withheld beyond permissible period under Act, Revenue should compensate for same

Assessee couldn’t take Cenvat credit on basis of zerox copy of invoice, rules High Court

Cenvat Credit : A photocopy of invoice cannot be recognised either as an original or duplicate or triplicate or quadruplicate; it is no document at all in terms of rules and, therefore, no credit can be taken on basis thereof

CLB denied relief prayed for by Petitioner Co. as it deliberately withheld facts vital for decision

CL: Where facts regarding pendency of disputes before Arbitral Tribunal in respect of resignation and appointment of directors by petitioner company was deliberately withheld, respondent company could not be directed to file form 32 with ROC in view of Share subscription and shareholders agreements

TPO couldn’t reject a manufacturing comparable ignoring fact that assessee was into trading as well

IT/ILT : Where assessee was engaged in manufacture and marketing of food products but comparables were rejected by TPO on basis that assessee-company was engaged in sale of ready to eat items, matter was to be re-adjudicated

CT scan equipments are entitled to higher depreciation rate of 40%, says ITAT

IT : PET/CT scan equipment is entitled for higher rate of depreciation at 40 per cent

VAT penalty upheld as assessee didn’t obtain endorsement from check post while transporting goods fr

CST & VAT: Where assessee was carrying goods in a lorry from Tamil Nadu to Karnataka and it had not obtained any endorsement from check post of Karnataka, levy of penalty for non-compliance of mandatory requirements of law was justified

Renovation exp. by hotel to facilitate its business was allowable as revenue exp.

IT : Where renovation expenses did not bring any new asset and same merely facilitated assessee's business, same was allowable as revenue expenditure

No sec. 263 revision if taxability of lease rental relating to land developed for business purposes

IT : Where lease rentals were earned from land which were developed for creating film shooting facilities/locations and it was directly, connected with main activity of assessee, i.e., development of infrastructure for shooting locations, such rental income being capital in nature could not be held income

Delay in making pre-deposit condoned as delay occurred due to perusal of appellate remedy before HC

Excise & Customs : Delay in making pre-deposit as directed by Tribunal can be condoned where such delay occurred due to assessee pursuing appeal remedy before High Court against pre-deposit order of Tribunal

Equity investments in AE can’t be deemed as loans/advances; it’s outside the ambit of international

IT/ILT: Investments in nature of equity, cannot be treated as loans and advances and hence cannot be brought within purview of 'international transactions' as defined under section 92B

Respondent-Co gets a final opportunity to pay overdue sum due to director's effort for discharging C

CL : Where respondent company failed to pay sum due under hire purchase agreement and defences raised by it were not bona fide, a final opportunity to make payment was granted to respondent company in view of efforts of its director in discharging burden of defence on behalf of company

AO had to consider exemption for export sales after verifying Form C and Form H available with asses

CST & VAT : Where Assessing Officer had disallowed assessee's claim of exemption for export sales on ground of non production of 'C' forms and 'H' forms, matter was remanded for passing fresh order after considering declaration forms being produced by assessee

Imparting of training in seminary is 'education'; assessee was entitled for registration as a trust

IT : Where assessee was imparting training to students in 'Seminary', training programme undertaken by assessee was also education and, therefore, it was entitled for registration under section 12A

An amendment to by-laws of BSE doesn't restrict powers of its appellate Tribunal to condone delay in

CL: Whether the Appellate bench of Bombay Stock Exchange (BSE) was right in concluding that it had no power to condone delay in filing appeal as amendment to the by-laws of BSE had restricted its powers - Held - No

AO to verify assessee's plea that sec. 69A addition couldn't be made on him as it was already made o

IT: Where assessee challenged addition made on account of unaccounted commission in respect of giving accommodation entries to various parties taking a plea that said addition had already been made in case of his brother, since aforesaid plea required verification at level of Assessing Officer, matter was to be remanded back for disposal afresh

Indian Ports Get Clogged After Rush To Import Coal

India’s power and steel companies are importing shiploads of coal due to a severe shortage at home, leading to heavy congestion in one of the country’s busiest ports that now has twice the number of vessels waiting than its available berths.

The over-crowding at Paradip port in Orissa could derail India’s efforts to prevent a shutdown of more than half of its power plants which are running on stocks of less than a week in the worst deficit since a massive blackout in 2012.

While power and coal minister Piyush Goyal has urged power firms to bring more coal into India, already the world’s No. 3 importer of the fuel, the country’s ports are finding it difficult to deal with the swelling traffic.

“We’re 100 per cent houseful,” said G.P. Biswal, deputy conservator of Paradip port. “We’re not able to cope with the sudden incre-ase in traffic."

Half of the 27 stranded ships at Paradip are carrying up to 90,000 tonnes of coal each and it takes up to six days to offload a ship once it is berthed.

Mr Biswal said rains in the eastern part of the country over the past few days have hampered operations but there could be an improvement in a week.

Some of the ships are to deliver coal for top power and steel firms like Jindal Steel and Power Ltd, Steel Authority of India Ltd, GMR Energy, Tata group and the Adani group run by billionaire Gautam Adani

Source:- porttechnology.org

Service Taxes Set To Get A Big Infrastructure Bump

The service tax net will be cast wider soon to include a wide range of construction-related services, which are currently exempt as “infrastructure services” and form more than a third of the country’s Rs 4.5-lakh-crore construction sector.

A 12% levy on services such as construction and upkeep of highways, bridges, airports, metro rail networks, post-harvest storage infrastructure, mechanised food grain handling systems and possibly even low-cost housing projects would add to the cost of these services, experts said.

Currently, commercial real estate projects are the chief source of service tax revenue from the construction sector for the Centre.

The Centre’s service tax revenue had grown at just 15% in April-August this year compared with the targetted growth of 31% for the full year.

The government’s move to do away with the exemption for a slew of infrastructure services would appear to be at variance with the thrust being given to infrastructure investments, but tax experts said the industries concerned won’t really bear the brunt of the decision. This is because the new tax on their outputs would allow them to more efficiently utilise their input tax credits. It would, however, result in an additional tax burden on users of these infrastructure facilities.

“At present, real estate activities are subject to service tax but not infrastructure development services such as construction of roads, bridges and airports. If infrastructure services are subject to service tax, the real impact for developers would be on the net value addition as they would get credit for the taxes paid on the inputs,” said R Muralidharan, Executive Director, PwC India.

This means the additional tax revenue for the government from the move would be significant but much less than the figure derived from applying the levy on the total value of the output.

Sources privy to the government’s plan said that bringing infrastructure services under service tax would not only widen the base of this levy but also help in keeping exemptions to the minimum to facilitate an easy transition to the proposed Goods and Services Tax (GST). Under GST, businesses could utilise credit for the taxes previously paid on raw materials and services for meeting their final output tax liability, for which it is essential for the output of an industry to be within the tax net.

Besides air and sea ports, railways, metro rail, single residential houses and low cost housing projects, exempted services also include construction of post harvest storage infrastructure and mechanized food grain handling systems. Construction and maintenance of civil structures, roads, bridges, tunnel, terminals and projects under certain welfare schemes like JNNURM and Rajiv Awaas Yojana (RAY) are also exempted from service tax now. The revenue department’s current thinking is to bring

Source:- articles.economictimes.indiatimes.com

Centre To Discuss New Textile Policy With States On Wednesday

Minister of State (Independent Charge) for Textiles Santosh Gangwar will discuss the provisions of the proposed New Textile Policy such as introducing flexible labour laws and setting up integrated textile parks with States in an annual conference of State textiles ministers on Wednesday.

States will give their views on the proposals of a draft report on the New Textile Policy prepared by an expert committee which has already been circulated to them.

“Getting State Governments’ views on labour reforms is important as a number of important changes have been proposed in the textiles sector,” a Government official told BusinessLine.

The proposed reforms include removing restrictions on women working in night shifts, allowing fixed term employment and revising overtime work hours. The Centre has also proposed keeping units employing up to 500 people outside the ambit of the Industrial Disputes Act so that they don’t have the responsibility of providing employment to workers in case a unit winds up.

The proposed policy also suggests giving a blanket exemption to export oriented units to allow contractual labour without any restriction.

Gangwar is also expected to discuss the proposal of partnering with States for reengineering of existing schemes and policies such as the integrated textile parks, Technology Upgradation Fund Schemes and Integrated Processing Development Scheme.

“The State Ministers will also be asked to emphasise on ways to generate productive employment opportunity for the youth through the textile sector. Stress would be laid on inclusive and participative growth, developing skill, scale and speed, targeting zero defect and promoting ‘Make in India’ brand,” an official release said.Textiles exports contribute more than 13 per cent to the country’s total exports.

Source:- thehindubusinessline.com

China’S Move To Cut Cotton Imports To Hurt Growers

China’s decision to reduce cotton imports will hurt Indian farmers more. The latest move of the world’s largest cotton buyer will accelerate the fall in prices that are already headed south on excess supplies.

On Monday, China said it would cut import quota to drawdown on inventories, pressurising prices.“This was expected for quite some time now. They had huge surplus and wanted to exhaust them. It will lead to bearishness in global prices. Though this is a cause for concern, there’s no reason for panic,” said Dhiren Seth, President, Cotton Association of India, the apex body for cotton trade.

Domestic prices reacted on China’s announcement. Price of 29 mm cotton which traded around ?39,900 a candy (355.62 kg each) at the beginning of September ended at ?37,400 on Monday. Trade sources said that prices would come down further on harvest pressure.

“Cotton prices have come down by ?3,000 in the past one month. By the time new arrivals come in by end-October or early November, we expect prices to come down further by another ?3,000/candy,” said MB Lal, Managing Director of Shail Exports and former Chairman of Cotton Corporation of India.

Farmers in India have planted a record 12.57 million hectares under cotton this year as a delayed and truant monsoon prompted many of them to take up the cultivation of the fibre crop considered sturdy and relatively drought-resistant. Cotton output is projected to exceed a record four crore bales (of 170 kg each) this year.

India had exported about 1.25 crore bales each in 2013-14, of which about 70-75 per cent was bought by China. “This year our exports will come down to around 75-80 lakh bales,” Lal added. Seth said Indian exporters need to explore markets in other countries such as Bangladesh, Pakistan, Vietnam and the Far East.

Reuters adds: Beijing will only provide import quotas next year for the 894,000 tonnes that it is required to offer at low duties under commitments with the World Trade Organisation, according to Liu Xiaonan, vice-head of the economy and trade department at the National Development and Reform Commission.

Previously, China has offered another type of quota, in addition to the one compliant with the WTO, but Liu said no additional quota would be made available next year.

Non-quota imports are subject to a 40 per cent tariff, so the restricted availability of import quotas will inevitably dampen Chinese demand for foreign cotton.

In the 2013-14 marketing year, traders estimated that Beijing had issued 600,000-800,000 tonnes through the additional quota that will not be available next year.

“Apart from the 894,000 tonnes of import quota required under WTO entry commitments...we will not issue additional import quota, instead guiding domestic textile companies to use more Chinese cotton,” NRDC’s Liu told reporters.

Source:- thehindubusinessline.com

Alm Oil Imports By India Surge As Prices Slump

Palm oil shipments by India, the world’s biggest buyer, will climb to a record this year as tumbling prices and zero-tax on exports from Malaysia make the oil attractive to refiners, said Ruchi Soya Industries Ltd.

Inbound shipments may increase to 9 million metric tons in the year ending October 31, more than the 8 million tons estimated in July, Dinesh Shahra, managing director of the nation’s biggest importer, said in an e-mail interview. Purchases were at 8.3 million tons in 2012-2013, the highest ever, data from the Solvent Extractors’ Association of India show.

Palm and soybean oils slumped to the lowest in five years this month as forecasts for record supplies threatened to widen a glut in global cooking oils.

Palm will drop in the next few weeks toward the cost at which growers in Asia produce the world’s most-used cooking oil, Dorab Mistry, director at Godrej International Ltd, said September 15.

The decline spurred Malaysia, the world’s second-biggest grower, to scrap export tax on crude palm oil for two months through October to boost shipments.

“We have seen and would see a surge in imports in the nearby month” because of the Malaysian tax cut, Shahra said. “Stockpiles are thinner versus previous years,” he said. Most traders had “hand-to-mouth” stockpiles as longer dated deliveries were cheaper than spot rates, he said.

Futures tumbled to a five-year low of RM1,914 a ton on September 2 and traded at RM2,127 on the Bursa Malaysia Derivatives in Kuala Lumpur. Palm’s discount to soybean oil averages about US$91 a ton this year, compared with US$244 in 2013 as the US harvests a record soybean crop, data compiled by Bloomberg show.

India’s imports of vegetable oils, including those for industrial use, may jump to an all-time high of 13 million tons this year, Shahra said. The country bought 10.7 million tons in 2012-2013, according to the extractors’ association.

“Our oilseed crops are not big and demand will continue to outpace production,” Faiyaz Hudani, associate vice president at Kotak Commodity Services, said by phone from Mumbai. “Palm will have to be at a very good discount to motivate demand and shift people from soybean and sunflower oils.”

Soybean oil shipments will jump to more than 2 million tons and sunflower oil imports may climb to 1.6 million to 1.7 million tons, Shahra said. Soybean oil prices in Chicago have dropped 17 per cent this year, reaching 31.52 cents a pound on September 10, the lowest since 2009.

“The price gap should remain narrow due to ample supply of both oils,” Shahra said. “Though the supply suggests that prices should remain lower to attract demand, however, amid policy driven steps, prices for palm may get underpinned.”

India buys more than 50 per cent of its annual demand, shipping palm oil from Indonesia and Malaysia, and soybean oil from the US, Brazil and Argentina. Imports rose 8 per cent to 9.53 million tons in the 10 months through August from a year earlier, the extractors’ association estimates.

Domestic soybean production may decline to 9.5 million tons to 10.5 million tons in the crop year starting October 1 from 11 million tons predicted in July because of inconsistent monsoon rainfall, lower acreage and some crop losses during the germination stage, Shahra said.

Plantings of oilseeds fell to 17.68 million hectares (43.69 million acres) from 19.25 million hectares a year earlier, the Agriculture Ministry said yesterday. Monsoon rains were 11 per cent less than the 50-year average since June 1, the India Meteorological Department said yesterday.

Source:- themalaymailonline.com

High Court stayed garnishee proceedings as amount of duties weren’t quantified

Service Tax : Where dues/demand was not exactly quantified and figure stated in recovery notice was challenged, High Court stayed garnishee proceedings and directed department to hear assessee for purpose of quantification of exact amount

HC dismissed winding-up of Co. as it merely failed to pay interest amount after paying the principal

CL : Where respondent paid principal amount due towards petitioner but did not pay interest demanded, winding up petition against respondent would not be maintainable

Group Cos negotiating/securing contracts on behalf of foreign Co. would be deemed as service PE in I

IT/ILT : Where assessee, a US based company, entered into contract with an Indian company for supply, installation, testing and commissioning of equipment relating to GSM Cellular Radio Telephone System, in view of fact that a group company namely 'NL' India undertook responsibility for negotiating and securing contracts whereas another group company namely 'NL' Canada supplied aforesaid equipments and its LO in India rendered other services to assessee, those group concerns constituted assessee

SC: No violation of service rules by whistleblower, an IAS officer, on filing of writ petition again

CL: Filing of writ petition by IAS Officer containing allegations that the Government of India is lax in discharging its constitutional obligations of establishing the rule of law can be said to amount to either failure to maintain absolute integrity and devotion to duty or of indulging in conduct unbecoming of a member of the service

Salary paid by overseas HO to expatriate employees working exclusively for Indian branch is fully de

IT/ILT : Where assessee, a bank incorporated in Japan, paid salaries abroad to its expatriates working in Indian branch constituting PE, in view of fact that said expenditure had been incurred wholly and exclusively for Indian branch and, no part of those expenses could be allocated to any other branch by head office, provisions of section 44C did not apply to said expenditure and thus, assessee's claim for deduction of salary expenses was to be allowed

No further addition to be made in survey proceedings if addition was already made in original assess

IT: Where gross receipt of assessee was enhanced in original assessment proceedings, no further addition to be made on basis of survey proceedings

HC advises Commercial Tax Officer to follow set time-limit to take consequential action in case of i

CST & VAT : Where CTO conducted inspection at business premises of assessee on 27-6-2003 and thereafter he passed an order dated 16-6-2014 on assessee, since CTO had failed to follow Circular No. 8/13, dated 18-7-2013 prescribing time schedule, for taking consequential action, matter was remanded back for fresh adjudication

CBDT seeks inputs from officials on its instructions containing allocation of work amongst CIT(Judic

IT : Section 268 of the Income-Tax Act, 1961 - Allocation of Work Amongst CIT (Judicial) and their Jurisdiction – Committee to Review the CBDT Instruction No.4/2002, Dated 7-5-2002 on Work Allocation of CSIT(j) – Suggestions Invited From All Officers Thereon

CBDT reconstitutes DRP panel at Kolkata

IT/ILT : Section 144C of the Income-Tax Act, 1961 – Dispute Resolution Panel (DRP) – Reference To – Reconstitution of DRP at Kolkata

No reassessment on basis of audit report as it couldn’t be regarded as info indicating escaped incom

IT: Audit report could not be regarded as 'information' for purpose of reopening an assessment; hence reassessment proceedings initiated on basis of such audit report were illegal

HC directed revenue to lift attachment of bank accounts as ITAT had already granted stay against tax

IT : Where despite stay granted by Tribunal revenue attached and took away proceeds of assessee's bank account, revenue was directed to lift attachment

CBEC releases guidelines on structure, administrative set-up and functions of Audit Commissionerates

EXCISE & CUSTOMS LAWS : Guidelines on Structure, Administrative Set up and Functions of Audit Commissionerates

Madhya Pradesh Govt. amends VAT Rules; revises Form 10 and forms for work contractors/composition de

CST & VAT : Madhya Pradesh Value Added Tax Rules, 2006 - Amendment in Rule 21 and Forms 4B, Form 5, Form 10, Form 10.1, Form 10.2, Form 10-B

CBEC takes a leaf out of CBDT's book; mandates transfer of refund/rebate claim into bank account of

ST LAWS : Clarification on Payment of Sanctioned Rebate/Refund to Service Provider/Manufacturer Under Electronic Clearing System Through RTGS/NEFT Facility

Revisional proceedings by Joint Commissioner upheld as assessee had misused from XVII for concession

CST & VAT : Where in course of first appeal filed by assessee, revenue pointed out First Appellate Authority that for misuse of form XVII penalty was to levied upon assessee under section 23 and First Appellate Authority rejected revenue's contention and thereafter Joint Commissioner invoked his suo moto revisional powers under section 34 of Tamil Nadu General Sales Tax Act, 1959 and directed Assessing Authority to initiate fresh penalty proceedings under section 23 against assessee, Joint Commi

Order of DRP without considering objections of assessee is a 'non-speaking' order; set aside by ITAT

IT/ILT: Where order passed by DRP was a laconic non-speaking order as it had not given any reason for disposal of assessee's objections and had also not adopted any reasons contained in draft assessment order nor even reasons that were contained in order of TPO; same was to be set aside

Even employee’s contributions to PF are deductible if paid by employer before due date of filing ret

IT: Contribution by employer towards provident fund means both employer's contribution and employee's contributions and if such contributions are paid before due date prescribed under section 139(1), employer shall be entitled to deductions as provided under section 36(1)(iv)

HC sanctioned amalgamation scheme as it was in interest of Co. and IT department didn't raise object

CL : Where income tax department had raised no objection to proposed scheme of amalgamation and same was in interest of company and its members, proposed scheme was to be sanctioned

Manufacturer couldn’t be deemed as job-worker merely due to professional control of buyer over raw m

Excise & Customs : Where assessee manufactures coolers and sells them to buyer, said transaction cannot be regarded as job-work transaction merely because of professional control of buyer over raw material purchases by assessee to ensure quality and timely supply; rule 10A of Valuation Rules, 2000 is inapplicable

MCA tweaks norms for DIN, excludes requirement of PAN in data bank of eligible independent directors

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Appointment and Qualification of Directors) Amendment Rules, 2014 - Amendment in Rules 6, 9, 10, 11, 12; Insertion of Rule 10A, Forms DIR-3A, DIR-3B and DIR-3C; Omission of Form DIR-1 and Substitution of Form DIR-3

Contribution towards approved group gratuity scheme of LIC is a deductible exp. under section 36(1)(

IT: Liability to pay in respect of salary settlement crystallizes in year of approval