IT : In absence of proper clarification with regard to claim of audit fees and bad debt, onus to establish its case being on assessee, matter was remitted for readjudication
Wednesday, 8 January 2014
Onus is cost on assessee to prove genuineness of impugned exp. if it has failed to give explanation
IT : In absence of proper clarification with regard to claim of audit fees and bad debt, onus to establish its case being on assessee, matter was remitted for readjudication
Land Acquisition Act effective from January 1, 2014
CL : OTHERS : Section 1 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Enforcement of Act - Notified date of enforcement of said act
Insurance cover provided by seller to buyer is a separate service; won't be deemed as part of sales
ST/UK VAT : Where seller of goods, acting as an agent of insurance company, arranges insurance cover for buyer towards risk of buyer, insurance commission received by seller cannot form part of value of goods; it is a service but is covered under reverse charge
Sales made at lesser discount won't attract sec. 40A(2) as no deduction was claimed for such discoun
IT : Where assessee while selling books to its sister concern offered less discount than other customers and did not claim any deduction for amount which had been charged less than that from other customers, then provisions of section 40A(2)(a) could not be applied
Renting of building along with other facilities to preparatory schools is exempt from service tax
Currant Credit/UK VAT : Renting of school building along with other facilities to two nursery/ preparatory schools jointly was exempt from service tax under Entry 9 of Notification No. 25/2012-ST
No EC or SHEC on sugar, tea and other cesses not administered by MoF; CBEC clarifies
GST : Section 3 of The Central Excise Act, 1944 Read with Section 93 of The Finance (No.2) Act, 2004 and Section 138 of The Finance Act, 2007 - Charge/Levy - Excise Duty - Education Cess and Secondary & Higher Education Cess is not Leviable on Sugar Cess, Tea Cess and Other Cesses Not Levied/Administered by Department of Revenue But Levied/Administered by Other Departments Under Special Acts
Natural Rubber Imports Rise 46%, Output Down
Imports of natural rubber went up by 46% to 26,853 tonne in December due to lower prices in international markets and drop of over 5% in domestic production.
Imports increased despite the Centre raising import duty on natural rubber to R30 per kg or 20%, whichever is lower, in December.
The basic customs duty on natural rubber earlier stood at R20 a kg or 20% whichever was lower.
According to Rubber Board data, India's natural rubber imports rose to 26,853 tonne from 18,366 tonne 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 R35 per tonne as compared to domestic prices," a senior rubber board official said.
During the April-December period of this fiscal, rubber import increased to 2.64 lakh tonne from 1.73 lakh tonne in the corresponding period of previous fiscal.
Meanwhile, production of natural rubber dropped by 5% to 1.08 lakh tonne during December 2013 against 1.14 lakh tonne in the same month of 2012. However, consumption rose to 79,500 tonne in December last year from 78,420 tonne in December 2012.
Rubber exports declined 57% to 695 tonne in December last year as compare to 1,603 tonne in the same month in 2012.
Source:- financialexpress.com
Ccea May Consider Import Duty Hike On Refined Edible Oil To 10%
The cabinet committee on economic affairs (CCEA) is expected to consider a proposal on Thursday to hike import duty on refined edible oil to 10% for protecting domestic industry and farmers.
“The CCEA is scheduled to meet tomorrow and among other things it will consider the food ministry’s proposal of increasing import duty on refined edible oils,” said a source.Currently, the import duty on crude edible oil is 2.5%, while on refined edible oil is 7.5%. Since the duty difference is only 5% between the two varieties, traders have resorted to higher import of refined oils, thereby affecting the domestic refiners and farmers.
To keep domestic refiners from operating at under- capacity, the food ministry has proposed duty difference of 7.5% between the two varieties by raising import tax on refined edible oil to 10%, the source said.If approved, the move is expected to fetch Rs.600 crore revenue to the government, the source added.
Ministries of finance and commerce have endorsed the food ministry’s proposal. The agriculture ministry has however recommended flexible import duty structure, whereby they would automatically go up if global edible oil prices decline by a certain level and fall as soon as international prices rise.
The edible oil industry has demanded increasing import duty on refined edible oil to 30%. India produces 9 million tonne edible oil, while the consumption is around 20 million tonne. The rest is met through imports. In the 2012-13 fiscal, the country had imported Rs.61,273 crore worth of edible oils.
Source:- livemint.com
No concealment penalty merely on wrong claim if assessee had made bona-fide claim without any intent
IT: Where assessee's claim of deduction under section 80-IB was bona fide without intent to evade tax, no penalty under section 271 would be levied merely because its claim was rejected
India’S Ample Steel Supply Meets Weak Demand
India’s steel industry in 2013-14 was not short of the metal as new capacities came on stream, especially among the large producers. Between April-December, the steel industry’s output rose by 5.2% over the corresponding previous period, according to data from the Joint Plant Committee.
Much of this increase was attributable to the main producers, whose output rose by 10.4%, but the major producers’ output fell by 0.3% while that of others rose by 1.9%. The others category represents steel plants with less than 0.5 million tonne capacity while the main producers are Steel Authority of India Ltd and Tata Steel Ltd. Major producers are those in between.
The share of output of other producers has been steadily declining and is now at 56% compared with 69% in the same period in 2012-13. The large plants are increasingly playing a more dominant role and that is likely to increase in the years ahead. But it would be easier for everyone to co-exist if demand was not such a spoilsport.
In April-December, ample production led to a fall in imports and an increase in exports, but what failed the industry was weak user demand, as consumption is estimated to have increased by just 0.5%.
Source:- livemint.com
Cotton Prices Up On Short Phutti Supply
Cotton prices bounced back to overnight level on Wednesday because of short phutti (seed cotton) supply and ginners demanding higher rates.However, trading activity failed to pick up as spinners are not ready to pay higher prices.
Floor brokers said that in the absence of buying and selling activity cotton market continues to be dull and listless.A large participation of Pakistani textile sector in Heimtexil fair being held from Jan 8 to 11 in Frankfurt, Germany, is another reason which has pushed cotton prices up, brokers added.
They added that the expectations that 226 companies from Pakistan displaying their textile products in the fair could get large export orders are presently inducing sentiment.
The world cotton markets also remained firm where New York cotton market closed higher for all future contracts. Cotton prices in India also rose and during last couple of days gained around 10 cents per lb from 81-82 cent per lb to 90-91 cent per lb.
The Karachi Cotton Association (KCA) revised its spot rates upward by Rs50 to overnight level of Rs7,000 per maund. However, trading activity on ready counter continues to be slow and restricted.
The following deals were reported to have changed hands on ready counter: 200 bales from station Rahimyar Khan at Rs7,000, 1000 bales from Fort Abbas at Rs7,000, 200 bales from Dharanwala at Rs7,040, 200 bales from Faqirwali at Rs7,040, 3,000 bales from Khanewal at Rs7,100, 800 bales from Obaro at Rs7,300 and 1,000 bales from Mianwali at Rs7,350.
Source:- dawn.com
Rupee Up 23 Paise To One-Week High Of 62.07 Vs Dollar
The rupee gained for the second day, climbing 23 paise to a one-week high of 62.07 against the dollar today, amid a modest recovery in local stocks and sales of the US currency by exporters and banks.A firm dollar overseas and capital outflows from domestic equities failed to cap the rupee's gains, a forex dealer said.
At the interbank foreign exchange market, the local currency opened strong at 62.20 a dollar from the previous close of 62.30. It declined to a low of 62.27 on initial hesitancy in local equities and capital outflows.
The rupee bounced back and ended at the day's high of 62.07, a rise of 23 paise or 0.37 per cent. It was the highest level for the rupee since closing at 61.90 on January 1.
"It was a positive session for the rupee, which was seen joining the Asian currencies as majority of them were seen gaining against the US dollar," said Abhishek Goenka, CEO of India Forex Advisors.
"Yesterday's US trade data, which saw the deficit shrink markedly, laid the foundation for the rally in the USD/JPY pair," Goenka said.
The benchmark 30-share S&P BSE Sensex washed out part of its early gains and closed about 36 points higher, advancing for the first time in 2014.
Foreign institutional investors continued their selling spree and pulled out USD 85.74 million yesterday, as per Sebi data, taking the total to USD 129.31 million in the past three days.
The dollar index rose 0.17 per cent against most rivals as investors awaited the release of minutes from the Federal Reserve's December meeting later today. The European Central Bank and the Bank of England will release monetary-policy decisions on Thursday.
The US Labor Department is scheduled to release December non-farm jobs data on Friday, providing investors another indication of how the world's largest economy is faring.
"Rupee closed on a positive note. Investors are waiting for the release of minutes from the Federal Reserve's last policy meeting and an employment indicator," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).
Forward dollar premiums dropped further on persistent receipts by exporters.
The benchmark six-month forward dollar premium payable in June declined to 242-244 paise from 245-247 paise and far-forward contracts maturing in December slipped to 481-483 paise from 484-1/2 to 486-1/2 paise.The RBI fixed the reference rate for the dollar at 62.2430 and for the euro at 84.8185.
The rupee rebounded to 101.88 against the pound from 102.33 previously and bounced back to 84.33 per euro from 85. It recovered to 59.26 per 100 Japanese yen from 59.66.
Source:- news.outlookindia.com
Neither sec. 194C nor sec. 195 attracted if sums paid to NR outside India for services rendered outs
IT/ILT : Where assessee paid freight charges to foreign parties outside India for rendering services abroad, income did not accrue or arise in India and, thus, assessee was not liable to deduct tax at source while making said payments
‘Stolen goods’ can’t be liable to VAT even if they are liable to excise duty
Excise & Custom/ECJ : Theft of goods does not constitute a supply of goods for consideration and cannot be subject to VAT; fact that said goods are subject to excise duty does not affect that conclusion
Entity held guilty under sec. 138 as it was proved that cheque wasn’t issued as security but to hono
Negotiable Instruments Act : Cheques given by petitioner not towards security but towards liability which was co-extensive with that of debtor would attract section 138
Bank’s exposure to Qualified Central Counterparty is outside the ceiling limit related to single cou
BANKING : Banks’ Exposure to Central Counterparties (CCPS) - Interim Arrangements
Trade in Securitised debt instruments to be reported on trade reporting platform within 15 min of tr
SEBI : Reporting of Trades in Securitised Debt Instruments in Trade Reporting Platforms and Clearing and Settlement of Trades in Securitised Debt Instruments Through Clearing Corporations
SEBI list out stiff procedures for depositors in case of issuance and processing of delivery instru
SEBI : Delivery Instruction Slip (DIS) Issuance and Processing
CBDT notifies authority for providing info of income-tax payees to facilitate execution of Food Secu
IT : Section 138 of The Income-Tax Act, 1961 - Disclosure of Information Respecting Assessees to Specified Officer, Authority or Body Performing Functions under Any Other Law - Notified Authority – Director General of Income-Tax (Systems)
Erecting temporary structures without transferring their possession to customers is a 'service'
ST/UK VAT : Activity of advising customers and erecting scaffolding for their use without transfer of possession of scaffolding amounts to provision of service and may be exempt if said service is provided in relation to residential dwelling
HC relies on sanctity of payment via bank; commission paid through cheques held as genuine business
IT: Where purchases were supported by bills, entries were made in books of account and payment was made by cheque, said purchases could not be held as bogus purchases
CESTAT member can practice before Tribunal after demitting his office in probation period; no bar un
Excise & Customs : Bar under section 129(6) of Customs Act, 1962 is not applicable to a Member who demits office while on probation and, therefore, such member may plead/practice before Tribunal after demitting his office
Retro-amendment could only impose liability to pay tax and not interest for default of advance tax
IT : Where assessee claimed exemption under section 80-IA under a bona fide belief that claim of deduction under section 80-IA was available but said exemption was nullified by an amendment that came into force under Finance Act, 2007 with retrospective effect, assessee though would be liable to pay tax in view of retrospective amendment but it could not be held liable to pay interest under section 234B
Expl. to eleventh schedule which expands definition of items ineligible for sec. 32A relief, has ret
IT : Explanation to item 5 of Eleventh Schedule has retrospective effect applicable from assessment year 1988-89
Ex-parte assessment held valid as assessee didn't furnish sales invoices to department even on repea
ST/UK VAT : Where bank receipts exceeded receipts disclosed in return and despite Department's repeated reminders, assessee did not furnish sales invoices nor did it explain source of bank receipts, Department was right in making best judgment assessment
No writ to challenge notice of tax recovery without challenging orders of appellate authorities, say
IT: Writ challenging section 226 order and notice would not be maintainable without challenging Tribunal's decision passed in appeal; in such cases remedy available is statutory appeal to High Court
Poha and Murmura are cereals; entitled to exemption from MP sales tax, rules HC
CST & VAT : 'Cereals' include 'rice' and "Rice" includes both parched rice (poha) and puffed rice (murmura); therefore, exemption from Madhya Pradesh General Sales Tax in respect of 'cereals' would be available to poha and murmura as well
No interest for late VAT payments due to delay in realization of cheques if delay wasn’t attributabl
CST & VAT : For charge of interest from assessee, there should have been default on part of assessee in paying tax within time prescribed in Act; if cheque is presented in time, delay in realization for reasons beyond control of assessee, either for reasons attributable to Department or bank, cannot render assessee liable to interest
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