IT: Where assessee dealing in sanitary equipments, etc. paid sales commission to agents at 2.81 per cent of total turnover and Assessing Officer allowed such commission at 1 per cent of total turnover, since no evidence was available other than a general contention that commission had been paid, Commissioner (Appeals) was not justified in allowing sales commission at 2.5 per cent
Tuesday 7 January 2014
Vehicles meant for private use of assessee won't be eligible for credit as capital goods
ST/UK VAT : Motor vehicles meant for private use of assessee or his staff are not eligible for credit as capital goods
Limitation period for completing block assessment would resume from date of pronouncement of stay or
IT: Where High Court in writ petition stayed block assessment proceedings and subsequently vacated said stay order, limitation period to complete assessment would resume from date on which stay was vacated
Assessee isn’t entitled to seek credit of input services used for trading purposes
Cenvat Credit : A dealer of motor vehicle is not entitled to credit of rent paid for building used for trading purposes; but, in case of services used for both trading activity and taxable services, reversal of credit may be sought on pro rata basis in ratio of value of two activities or on some other just, fair and equitable basis
Tea Turnover Tops Rs 500 Crore At Coonoor
Two significant records were created by the Coonoor Tea Trade Association in 2013, the turnover crossed Rs 500-crore mark and the average price topped Rs 100 a kg, reveals an analysis of market reports.
The average price was above Rs 80-a-kg mark for the second consecutive year. The volume sold continued to remain above 5-crore-kg level for the third consecutive year.
In all, 51 auctions were held last year with 5.95 crore kg being sold against 5.53 crore kg in 2012. A higher volume was sold despite average price rising to Rs 89.32 a kg from Rs 82.28 in 2012.
Consequently, the turnover rose to Rs 531.45 crore from Rs 455.01 crore. This increase of Rs 76.44 crore marked 16.80 per cent growth.
The increased turnover lay spread among factory owners, growers, traders, workers, auctioneers and warehouse keepers.
For the first time at the auctions, the average price crossed Rs 100/kg to touch Rs 104.11 on March 8. It remained above Rs 100 till April 26 peaking to a high of Rs 110.70 on March 21.
However, oversupply in global market reduced exports. Availability of low-priced tea in north Indian auctions reduced upcountry demand. Collectively, in the last quarter, CTTA auction average price crashed to Rs 72 – the least in the last two years. Otherwise, the year’s average price would have been much higher.
Source:- thehindubusinessline.com
Reassessment notice would be non-est if it was not served at address given by assessee to IT departm
IT: Date of issue of notice under section 148 would be date on which same was handed over for service to proper officer
Natural Rubber Imports Go Up By 46 Pc In Dec
Imports of natural rubber went up by 46 per cent to 26,853 tonnes in December due to lower prices in international markets and drop of over 5 per cent in domestic production.
Imports increased notwithstanding the Centre raising import duty on natural rubber to Rs 30 per kg or 20 per cent, whichever is lower, in December.
The basic customs duty on natural rubber earlier stood at Rs 20 a kg or 20 per cent whichever was lower.
According to the Rubber Board data, India's natural rubber imports rose to 26,853 tonnes from 18,366 tonnes of in the same month in 2012.
"Imports have gone up as contracts for import of natural rubber in December were made during September and October, and at that time prices in the international market were down by Rs 35 per tonne as compared to domestic prices," a senior rubber board official said.
During April-December period of this fiscal, rubber import increased to 2.64 lakh tonnes from 1.73 lakh tonnes in the corresponding period of previous fiscal.
Meanwhile, production of natural rubber dropped by 5 per cent to 1.08 lakh tonnes during December 2013 against 1.14 lakh tonnes in the same month of 2012. However, consumption rose to 79,500 tonnes in December last year from 78,420 tonnes in December 2012.
Rubber exports declined 57 per cent to 695 tonnes in December last year as compare to 1,603 tonnes in the same month in 2012.
Source:- business-standard.com
Wheat Exports May Fetch More On Firm Global Prices
India, currently a big wheat seller in the global market, could gain from the firm trend in prices of the cereal, triggered by the concerns over severe cold snap affecting the US crop and large purchases made by African countries
State trading entities – MMTC, STC and PEC Ltd – have offered to sell a total of nearly 8.3 lakh tonnes of wheat. Tenders for the sales expected to be decided over the next 17 days.
“India should exploit the current situation to get the maximum price for its wheat. There is a case for upward revision of the floor price for exports,” said trade sources.
India had set minimum export price of $260 a tonne but has received higher quotes from global buyers for tenders floated recently. So far, about 9 lakh tonnes of wheat have been tendered for sale, but sales of about six lakh tones only have been finalised.
The Government has planned to export about 20 lakh tonnes to create storage space for the new crop expected to arrive in April. The country’s wheat stocks as on December 1 stood at 31 million tonnes, almost thrice the buffer and strategic reserves to be maintained statutorily.
The firm trend in global prices is also aided by the aggressive buying from African nations such as Egypt and Algeria last week. Egypt has bought 5.35 lakh tonnes from Ukraine, Russia and France at an average price of $317 a tonne.
Algeria has bought about 5 lakh tonnes, while Syria has bought about two lakh tonnes.
“Going by the recent market trends India should get better price for its wheat. The intrinsic value of the Indian wheat is $290-300 a tonne – a price at which India should be selling,” an analyst said.
Wheat futures, which rallied to a two week high on the Chicago Board of Trade on concerns of crops damage in the US winter crop, eased a bit on Tuesday on signs of slack demand.
Wheat acreage in the current rabi season has touched a record 302 lakh hectares, raising expectation of a bumper harvest of over 95 million tonnes. Prevailing cold conditions across the wheat growing regions of North India are seen aiding the crop.
Source:- thehindubusinessline.com
Indian Cotton Seen Up On Export Demand, Thin Supply
Cotton futures in India, the world's second-largest producer, are expected to trade higher this week on demand from overseas and local buyers amid a slowdown in supplies due to a cold wave in many parts of the country.
Indian origin cotton is getting good export orders from Pakistan and Bangladesh, while China is buying more of cotton yarn in a bid to bypass duties on the raw fibre, spot traders said.
"Demand for raw cotton has been good from Bangladesh and Pakistan, but supplies have slowed down in the local markets because of the dip in temperature," said Arun Kumar Dalal, a trader from Ahmedabad, a key market in Gujarat state.
Daily cotton supplies have fallen to 170,000-175,000 bales of 170 kg each from 180,000-190,000 the previous week across India due to the cold and cloudy weather, spot traders said.Meanwhile, Chinese buyers are settling cotton import contracts signed earlier to import more yarn from India to bypass duty.
"Chinese buyers are finding importing yarn cheaper than the fiber due to higher duty... Indians have willingly obliged as the deals were struck at much lower rates of 81-82 cents per pound, while current rates are 86-87 cents per pound," Kotak Commodities said in a research note.
The January cotton contract ended up 1.93 percent to close at 20,070 rupees per bale on the Multi Commodity Exchange.In the spot market, the price of the most-traded domestic spot Shankar-6 variety rose 300 rupees to 40,700 rupees per candy of 356 kg, data from the Cotton Association of India showed on Monday.However, estimates of higher output could limit the upside, analysts said.
Spot traders expect cotton prices to fall with the rise in supplies from mid-January.The most-active March cotton contract on ICE Futures U.S. was up 0.80 percent at 83.60 cents per pound at 1248 GMT. (Reporting by Meenakshi Sharma; Editing by Prateek
Source:- in.reuters.com/article
India Emerges Net Exporter Of Steel In April-Dec Period
India has become a net exporter of steel in the first nine months of the present fiscal, mainly due to subdued domestic demand.If the trend strengthens during the January-March period, the country may end up being a net exporter of steel for the entire fiscal, 2013-14, after a gap of five years.
“India emerged as a net exporter of total finished steel in December 2013 as well as during the April-December period,” said Joint Plant Committee (JPC), a unit of Steel Ministry.
Exports went up by 9.5 per cent during the April-December period to 4.136 million tonne (MT), but imports in the same period registered 29.2 per cent decline at 4.09 MT.
In December, exports rose by 13.7 per cent to 0.54 MT while imports nosedived by 46 per cent to 0.37 MT.India has been a net importer of steel since 2007-08. In the last fiscal also, it imported 7.9 MT against its exports of 5.2 MT. Before 2007-08, however, India used to export more than imports.
The surge in exports during the April-December period is a result of rupee volatility, different economic conditions, impact of global downswing and depressed domestic demand, JPC said in its latest report.It attributed the dip in imports to slowdown in domestic economy, exchange rate volatility, relative prices, global downswing and bilateral agreements among others.Almost all domestic producers have had a good growth on the export front in the present fiscal so far.
Steel Authority of India (SAIL) clocked a 122 per cent growth in exports to 177,000 tonne during October-December quarter alone and it is eyeing doubling last year’s volume to 700,000 tonne this fiscal.
Rashtriya Ispat Nigam Ltd (RINL) recorded 142 per cent growth in its export revenue during the April-December period at Rs 519 crore.Rising exports have also helped them raise domestic prices and reduce inventories. Steel makers have raised prices by up to Rs 1,500 per tonne earlier this month.
Impacted by economic slowdown, India’s steel consumption grew by just 0.5 per cent to 53.789 MT during April-December period of the current fiscal.
Source:- business-standard.com
No TP adjustment even if no fee charged by assessee on services rendered to AE as it won’t erode its
IT/ILT: Where assessee's arrangement of not paying any counting fees to its AE and also foregoing corresponding service/incentive fees did not erode tax base, no TP adjustment was required
HC dispenses with pre-deposit requirement of interest and penalty as assessee’s case was arguable
Service Tax: Where assessee's case that 'reimbursement of expenses to foreign party did not amount to receipt of services for reverse charge liability was eminently arguable one, pre-deposit of interest and penalty was dispensed with
CAT directs closure of enquiry instigated by DG when undertaking by Amway clarified all his objectio
CL : Enquiry initiated by DG in respect of alleged unfair trade practices adopted by respondent-Amway was ordered to be closed when undertaking given by respondent would meet all issues /objections raised by DG
Interest on belated payments of EMI on home loan doesn't qualify for sec. 24 deductions: HC
IT : Interest on interest paid due to default in payment of home loan instalments is not deductible u/s 24
Even delay in grant of provisional refund under Gujarat VAT entitled assessee to seek interest there
CST & VAT : Word 'order' includes 'provisional assessment order/provisional refund order' and, therefore, even delayed grant of provisional refund under Gujarat VAT Act, 2003 is entitled to interest at rate of 6 per cent per annum under section 38(2) ibid
No ad-hoc disallowance merely due to auditor's remarks of personal use of business assets by assesse
IT: Gifts already disclosed by assessee in returns of income, which had attained finality, could not be disturbed in assessment proceedings under section 153A
Inputs used in construction of rented building are not eligible for credit
Cenvat Credit : Prima facie, input as defined in Rule 2(k)(i) of CENVAT Credit Rules, 2004 refers to all input tax paid on all goods 'used for providing any output service'; therefore, inputs used in construction of rented building are not eligible for credit
No concealment penalty on wrong depreciation claim if its details were disclosed in tax audit report
IT: Where assessee claimed depreciation on basis of tax audit report and complete particulars regarding depreciation were disclosed in tax audit report, disallowance of depreciation would not warrant penalty under section 271(1)(c)
Sums paid by distributors to dealers on sale of SIM cards liable for sec. 194H TDS
IT : Payment made by assessee distributor of SIM cards, to dealers in relation to sale of SIM cards, is in nature of commission as per section 194H
No writ maintainable against seizure of imported goods pending issuance of show cause notice
Excise & Customs : Where matter involving 'illegal import of gold without declaration in baggage declaration form' required issuance of show-cause notice and adjudication thereof, High Court could not interfere in its writ jurisdiction
No denial of sec. 54F relief even if construction of new house commences before sale of original ass
IT : No denial of deduction u/s 54F for commencing construction of new house before the sale of 'original asset'
Deemed transfer if property was given to builder under development agreement along with power of att
IT: Where assessing Officer found that joint venture agreement entered by assessee with builder relating to her house property resulted into 'transfer' within meaning of section 2(47), reassessment proceedings to tax such capital gains were justified
No appeal lay to HC against charge of clandestine removal on dismissal of such charge by Tribunal
Excise & Customs : Where Commissioner (Appeals) and Tribunal had, on consideration of records of assessee and evidences put forth by assessee (which were not challenged as false by Department), dismissed charge of clandestine removal in part, no appeal could be filed against such finding of fact before High Court
Services in relation to raising of share capital and listing on stock exchange are input services
ST/UK VAT : Services of nominated advisor, reporting accountants, auditors, broker, portfolio valuer, solicitors, registrars and receiving bankers with a view to raise capital and secure a quotation for assessee's shares on Stock Exchange are 'input services'
Subscribe to:
Posts (Atom)