CST & VAT : Where Commissioner (Appeals) had himself in different case pertaining to same service recipient held that road construction work for power-generating company is not liable to service tax; he cannot ask for huge pre-deposit in same issue pertaining to same service recipient in case of different service provider
Friday, 3 January 2014
No concealment penalty if income offered in revised return after search was accepted by revenue
IT: Where additional income was surrendered by assessee, in revised return of income which was accepted by department, penalty under section 271(1)(c) on said amount was not leviable
Review order which authorizes filing of appeal by department under Central Excise can't be challenge
Excise & Customs : Order of Committee of Commissioners under Central Excise section 35B authorising filing of appeal by Department cannot be challenged on merits in Court because said opinion is a prima facie opinion; such an order may be challenged only on ground of non-application of mind, absence of material and lack of bona fides
ITAT slams CIT for taxing global income of 'resident but not ordinarily resident'; order of CIT set
IT/ILT : Where assessee was not ordinarily resident, order of Assessing Officer excluding income earned outside India was not erroneous or prejudicial to interest of revenue
Basmati Rice Export To Iran Reaches Record High
India’s agriculture and processed food exports to Iran have more than doubled both in value and quantity terms, in the last one year, mainly on account of an exceptional surge in Basmati rice exports. Consequently, this year India’s export of Basmati rice export to Iran could be highest conceivable past.
In value terms, India’s Basmati rice exports to Iran increased by 137%, or nearly three folds, while in terms of quantity it increased by 77%, between April and September 2013 and 2014, data from Agricultural and Processed Food Products Export Development Authority (APEDA) show.
“This year there has been a great surge in Basmati rice exports to Iran. While the quality of rice exported from India has improved, there could be other reasons for the rise in exports. It might be the reason that the Iranian government wants to stock up their inventory of rice,” said R Sundaresan, Executive Director, All India Rice Exporters Association.
After US sanctions against Iran, India’ export to Iran had suffered a setback. However, with Iran being a key oil supplier to India, both countries reached a new payment mechanism in 2012. Under the method, 45% of India’ crude payments were made in rupees through UCO Bank.
The rupee resources were being used for making payments for Indian export. Thus, with Iran unable to procure food grains from other countries, India’s rice export has witnessed a surge in volume.
About 85% of India’s agriculture and processed food exports to Iran are on account of Basmati rice, which was affected after the US sanctions.
Between April and September 2013, India’s total food exports to Iran was valued at Rs 7104 crore, against Rs 3043 crore in the same period last year, a rise of nearly 133%, according to Apeda. In terms of quantity, the amount of exports increased by almost 104% between April and September this year over the same period last year.
However, India’s brisk export to Iran may be checked by the recent deal of six major countries (US, France, Germany, Britain, China and Russia) and Iran to ease Iran’s nuclear plans in lieu of temporary relief over sanctions.
Source:- business-standard.com
Gratuity paid on employee's promotion to common cadre held allowable if he ceased to be in employmen
IT : Where employees of assessee-co-operative bank on promotion ceased to be employees of assessee and inducted in apex bank, gratuity paid to such employees on cessation of their employment with assessee was allowable as deduction
Bona-fide purchaser can't be made liable to tax dues of seller of property, rules HC
CST & VAT : If bona fide purchaser of property has purchased property for adequate consideration and without notice of any tax dues of seller and after making requisite enquiry from Registration Department, he cannot be made liable for tax dues of seller
FDI ban on Air India won’t hamper competition in relevant market, says competition authority
Competition Act : While an additional option was given to all private airlines to finance their capital needs through FDIs from foreign airlines, not allowing such FDI in Air India would not hamper competition in relevant market
Indian Steel Companies To Benefit As China Cuts Exports
Less than a year ago, several brokerages discontinued actively tracking industrial and cyclical stocks as demand weakened and economic growth plummeted to a 10-year low. These sectors are now seeing a revival of interest as the belief is that a combination of global and local factors will see a revival in demand.
According to Credit Suisse, the cyclical defensives price-to-book gap in India is the biggest in the region. While not all cyclicals are showing promise in equal measure, analysts are betting big on steel stocks.
Goldman Sachs initiated coverage of three steel stocks — Tata Steel, JSW Steel and Steel Authority of India — in December as it believes that India will benefit from the improved global steel outlook. The brokerage expects global steel consumption to rise by 4.7 per cent to 1.5 billion tonnes in 2014, driven by rising demand from Europe and China.
There are several domestic as well as global factors that are likely to aid the profitability of select steel players in India. For starters, global steel prices have strengthened through 2013. In the fortnight ending December 30, CIS Black Sea export prices gained 0.9 per cent to $537.5/tonne, while hot rolled sheet prices remained intact at $559/tonne. Long product prices in India also strengthened in December. JSW Steel is expected to raise steel prices by Rs 700-1,000/tonne, claim analysts.
Even though underlying demand in India remains weak, Goutam Chakraborty of Emkay Global believes that a weaker rupee and some supply constraints have helped domestic steel prices. There’s good news even on the raw material side. In the last week of December, 62 per cent grade iron ore prices have dipped and they are unlikely to see an upward movement in 2014.
India is going to turn into a net exporter of steel in FY14 as higher capacity additions and flat demand will force many companies to look at overseas markets. A weak currency and slowing exports from China are expected to aid Indian exports. Due to environmental concerns, China is slated to cut steel capacity by 8 per cent by FY17. China is estimated to have exported 52 million tonnes of steel in 2013 and this is expected to decline by 11 million tonnes by FY15 to 41 million tonnes. This would be an opportunity for Indian steel makers. With global demand for steel increasing and China cutting exports, Indian steel makers like Tata Steel, JSW Steel and SAIL stand to gain. JSW could be a major beneficiary of this as its capital expansion phase is over and the company is expected generate free cash flows from FY15.
Source:- business-standard.com
Draft Loe On Vehicle Imports Ready
The government has prepared a draft of bilateral Letter of Exchange (LoE) for allowing transport of vehicles, imported from third countries via India´s Kolkata Port, to the Nepali border ´on their own power´.
“We have prepared a draft of LoE and are in the process of getting inputs from line agencies such as the Department of Customs (DoC), foreign ministry and law ministry. After incorporating their inputs, we will forward the draft to the cabinet for approval,” an official at the Ministry of Commerce and Supplies (MoCS) told Republica on Friday.
Once it is approved by the cabinet, the MoCS will send the LoE to India via foreign ministry.The recently held Inter-government Committee (IGC) meeting decided to allow Nepal to transport vehicles imported form third countries to the Nepali border on their own power.
The Nepal-India Transit Treaty requires traders to use only wagons or containers to transport such vehicles to Nepal.The MoCS has already sent another LOE, on implementation of the agreement that allows Nepal to export third country goods via the Indian port, to India. The agreement was signed at the IGC meeting held in Kathmandu in December 2013.
“We have already forwarded the LoT to the concerned Indian authority. We are waiting for the southern neighbor to sign it,” the official added.
Traders are facing difficulties in exporting different goods and equipment brought to Nepal from countries other than India for various purposes like trade fairs, aviation, diplomatic purposes, and development projects, as bilateral transit treaty bars Nepal from sending back goods to their countries of origin through the Indian territory.
In June, India had stopped allowing third country vehicles imported by Nepal through its port. Similarly, it had also stopped allowing export of third country goods to the countries of origin citing bilateral transit treaty.
Following diplomatic pressure from Nepal, India has lifted the restriction till January 9.
“We are hopeful that both the LoEs will be signed by both the countries before January 9,” the official added.
In a bid to expedite implementation of the agreement signed in IGC, the MoCS has prepared an initial draft of a work plan, setting deadline and specifying executing agencies.
“We will sit with line agencies soon to finalize the draft so that implementation process becomes smooth,” the source added.
During the meeting, both the countries agreed on most of the points that are important for bilateral trade.
Source:- myrepublica.com
Rupee Recovers From Intraday Lows; Closes At 62.155 Per Dollar
The Indian rupee recovered from its intraday lows on Friday, to close stronger than its previous close, on possible intervention by the Reserve Bank of India (RBI) even as other Asian currencies weakened against the dollar and the domestic stock market fell.
Rupee ended at 62.155 a dollar, up 0.18% from its previous close of 62.2675. The domestic currency had opened at 62.355 and slid to 62.56 in the day.
Lower manufacturing data and a weak equity market also weighed on the rupee. The manufacturing purchasing managers’ index (PMI) released by HSBC Holdings Plc and Markit Economics on Thursday was at 50.7 in December, lower than November’s 51.3. A figure above 50 indicates expansion.
“Rupee weakness will continue for quite some time,” said Pramit Brahmbhatt, chief executive officer of Alpari Financial Services (India) Pvt. Ltd.
“Both the US and the Japanese economies are recovering and soon crude prices will shoot up. This year is going to be a dollar year,” said Brahmbhatt, adding rupee should touch 63.50 a dollar by January end.
From January 2013 to date, the rupee has weakened 11.52% and is the third highest loser in Asia after Indonesian rupiah and Japanese yen.
Overnight though, the dollar index, fell, trading at 80.583, down from the previous close of 80.63.
India’s benchmark equity index Sensex closed at 20,832.84, 20851.33, down 0.18%, or 37 points, from its previous close.
Source:- livemint.com
Input entitles to lower sales-tax even if it's not used in manufacturing process if manufacturing un
CST & VAT : If assessee has manufacturing unit inside State, benefit of concessional rate of Karnataka Sales-tax on industrial inputs is available even if process in which such inputs are used does not amount to 'manufacture'
No concealment penalty if tax was correctly paid by assessee and only year of taxability was in disp
IT : Where assessee had on its own paid tax on amounts in question and it was not a case where assessee had concealed facts of earning of income rather it was a case where year of taxability of income was in dispute, penalty for concealment of income could not be imposed
Zinc dross isn't a manufactured product; not liable to duty even if it's a marketable product
Central Excise : For goods to be dutiable, conditions of section 2(d) (movable and marketable) and section 2(f) (manufacture) have to be satisfied; therefore, zinc dross arising in course of manufacture of galvanized tower parts is not liable to duty as it is, prima facie, not a manufactured product; though it may be marketable
Re-assessment can be completed even within time specified for assessment under sec 143(3)
IT: Even where notice under section 143(2) had been issued and time provided for regular assessment under section 143(3) had not been expired, reassessment is permissible
Observation of Dept. in docs maintained by assessee but not supported by any sample wasn't convincib
Excise & Customs : If department, on inspection, detects that goods of a particular specification are being manufactured and it has drawn samples for verifying that, department is entitled in law to presume that (until manufacturer proves contrary) goods of same specification are continued to be manufactured
Occasional dealing in properties can't be considered as adventure in nature of trade; Tribunal says
IT : If an assessee is not ordinarily engaged in business of purchase and sale of properties, primary inference would be that any transaction of purchase/sale of land is not an adventure in nature of trade
No intention to evade duty in revenue neutral cases; it's a strong ground to set aside evasion penal
GST : If amount payable by one unit of assessee would have been allowed as credit to other unit of same assessee, entire issue is revenue neutral and, therefore, evasion penalty imposed is liable to be set aside on ground of revenue neutrality, as there cannot be any intention to evade duty
Provision for gratuity and leave encashment isn't a contingent liability; deductible as business exp
IT: Provision for diminution in value of assets debited to profit and loss account is not required to be increased as per clause (i) of Explanation 1 to section 115JB to compute book profit under section 115JB when assessee has debited diminution in value of assets as a provision to profit and loss account
Mango pulp based slice is merely a drink and not a 'food article'; liable to Delhi Sale Tax at 8%
Sales tax : Mango pulp based drink 'Slice' is merely a drink/thirst quencher; and not a 'food article' as per common parlance test; hence, it was liable to Delhi sales-tax only at 8 per cent
Sum paid for usage of wharf to be treated as 'rent'; liable for TDS under sec. 194-I
IT: Wharf charge is payment for using land together with structure on shore of navigation water and, thus, would be treated as rent under section 194-I
Subscribe to:
Posts (Atom)