IT : Receipt on account of sale of carbon credits is to be considered as capital receipt
Thursday 9 January 2014
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
Sindh Sets 1.3M Tons Wheat Procurement Target
The Sindh Government has fixed the wheat procurement target of 1.3 million tons during the upcoming harvesting of the wheat crop and decided to start procurement from the end of March 2014.
This was decided in the meeting regarding wheat procurement plan for crop-2013-14 held at CM House Karachi on Thursday.
The Sindh Minister for Food Jam Mehtab Dahar, Sindh Minister for Local Government, Shajreel Enam Memon, Advisor to Chief Minister for Finance Syed Murad Ali Shah, Chief Secretary Sindh Saleem Sajjad Hotiyana, Additional Chief Secretary Food Naseer Ahmed Jamali, Secretary Finance Sohail Rajput, Additional Secretary CM House Captain Anwar Ahmed and other officers attended the meeting.
Addressing the meeting, the Chief Minister Sindh Syed Qaim Ali Shah directed the officers of Food Department to ensure that each grower should be provided Bardana. He directed that Bardana must be made available at the places accessible to each grower and to ensure that target of wheat procurement is achieved.
The Chief Minister Sindh also directed to all Commissioners, Deputy Commissioners in Sindh to take strict action against hoarders, blackmailers who by creating artificial shortage of wheat, charging high prices from the people. He directed for strictly implementation on the crpc-144 to maintain the demand and supply of the wheat.
The Chief Minister Sindh while lauding the role of the provincial Food Department said that due to the farmers friendly policies of the present Government good production of wheat was harvested, procured and channelised in a systemic way and required wheat quota was regularly supplied to flour mills and to Atta Chakki owners. It was Sindh province where flour is available to each common man at the rate of Rs 42/Kg as compared to Rs 48 in Punjab province and Rs 52 at Islamabad, he added and said that Sindh Government is spending billions of Rupees on subsidy and support price not only to benefit the growers community but consumers interest as well.
Chief Minister Sindh said that with grace of God, the upcoming wheat- crop would be a bumper one. He directed the officers to increase the wheat storage capacity so that we can get benefit by exporting the surplus production in future.
Sindh Minister for Food Jam Mehtab Dahar while briefing the meeting said that in addition to 2 million available jute bags, 11 million more bags to be required for the wheat procurement. He said that he himself to visit each district to get feedback from the growers to ensure judicious supply of Bardana to them. He said that his department has planned to establish control room to get complaints. He assured that Bardana be made available at the place, easily accessible to each individual. While discussing on the subject for the fixation of Government support price of the wheat, the meeting decided that wheat support price would be fixed in the end of February 2014. The Chief Minister Sindh Syed Qaim Ali Shah constituted two-member committee with Additional Chief Secretary Food Naseer Jamali and Secretary Finance Sohail Rajput to discuss and decide about the financial assistance needed to the food department in the head of subsidy and cost of jute bags, transportation and other activities.
Source:-nation.com.pk
Fresh Vegetable Market Opened In Al Khor
Qatar expects to meet 40 to 50 percent of its requirements for livestock and agricultural products through local produce in the next three to five years, the Minister of Environment H E Ahmed Amer Mohamed Al Humaidi said yesterday.
The Minister yesterday opened the Al Khor-Al Dhakira yard, the second market after the Mazrouh yard in Umm Salal, that offers fresh vegetables from local farms for sale at highly competitive prices.
Speaking to the media after opening the new market, the Minister said Qatar was keen to support local farmers to meet the growing demand for livestock and agricultural products in the country.
Currently, locally produced livestock can meet 20 to 30 per cent of the country’s requirements while vegetables from local farms meet 10 to 15 percent of the requirements.“This will be increased to 40 to 50 percent in the next three to five years,” said the Minister.
He said the government is giving lands to the farmers, besides technical and financial support as parts of efforts to achieve food security. “ I met with the farmers and listened to their suggestions to increase local produce,” said the minister.
He said opening of the new market was inspired by the success of Al Mazrouah yard set up last year. More such markets will be opened in the country including one in Al Wakrah, he added.
“There is no middlemen in these markets and the farmers don’t have to pay any fee (for the stalls). This will reduce their cost and the market is beneficial for citizens and expatriates, where they can buy fresh and best quality products at best prices,” said the Minister. The Al Khor-Al Dhakira yard located near Al Khor roundabout has 22 outlets selling vegetables from different local farms. Only two farms that have stalls in Mazrouah yards are participating in the new market while all others are new, according to Yousuf Khalid Al Khulaifi, Director of Agricultural Affairs Department at the Ministry.“ We will include stalls for fresh fish, poultry and livestock in the new market if there is a need,” said Khulaifi.
Farhoud Al Hajiri, director of animal resources department at the Ministry said there is a plan to set up a slaughter house- fixed or mobile- at the new market.
Source:- thepeninsulaqatar.com
Pre-deposit requirement to dispensed with if ST demand is tax neutral, rules HC
Service Tax : Where service tax demanded under reverse charge on foreign commission agent's services would be available as Cenvat credit to assessee, such demand was revenue neutral and, therefore requirement of pre-deposit was to be dispensed with
Passenger Service Fee paid by Jet Airways on behalf of its customers won't attract TDS under sec. 19
IT : PSF passenger service fee paid by assessee, airport operator to airport authority on behalf of its customers did not attract provisions of section 194-I
No service tax leviable on distributors engaged in selling and purchasing of lottery tickets
Service Tax : Where transaction between assessee-distributor and State Government involved only sale and purchase including 'on sale or return' of lottery tickets, which are actionable claims, and assessee was not acting as agent of Government, there was no service involved in transaction and no service tax could therefore be levied
Govt Believes In Economic Diplomacy For Prosperity
Minister of State for Commerce and Textile Industry Engr Khurram Dastagir said that the government believed in trade and economic diplomacy and had evolved a multi-pronged strategy to enhance economic and trade relations with the whole world, especially the regional countries.
While addressing the members of Faisalabad Chamber of Commerce and Industry here on Thursday, the state minister said that grant of GSP Plus Status to Pakistan by the European Union (EU) was a landmark achievement of the government and people deserved congratulation for this unprecedented success. He said that concessions were allowed time and again by the western countries but for grant of GSP Plus Status, Pakistan had fulfilled all requirement and qualified for the status which was for ten year period - from January 2014 to January 2023.
He said that it was a greater success of Pakistan on the international diplomatic level wherein we got inculcated to the European countries that Pakistan had smooth record of democratic transition of government, economic strength and stability was integral to overcome the terrorism in the country. “It is for the first time in the country’s history that a government has raised the slogan of ‘Trade not Aid’ which reflects the government priorities,” Dastagir pointed out.
He asserted that the government had been working hard to enhance economic and trade relations particularly with the regional countries, adding that the government wanted to go beyond India to Far-East countries. The state elaborated that the government was firm to enhance exports of Pakistan through its policy of economic diplomacy and tangible steps were being taken to remove difficulties and hurdles to enhance exports as much as possible.
Eng Khurram Dastagir claimed that a new horizon of economic prosperity had ushered in where people were being taken along as partners in the road to progress of the country. He argued that real democracy laid in empowering the masses and honouring their will and opinions in the decision-making. On the occasion, he announced giving representation to FCCI in various Boards and Standing Committees of the Ministry of Commerce and Textile Industry. He informed that briefings and seminars were being organised to sensitise and create awareness among exporters on GSP Plus procedures and monitoring mechanism.
The state minister emphasised that export of value added textile was being encouraged as it was more cost-benefitting in terms of electricity usage and fetching foreign exchange and a package was in hand for this sector. Khurram Dastagir assured that he was endeavouring hard for the release of refund claims of exporters in the context of R&D, Sales Tax and Duty Draw Back.
He said that successful completion of projects under public-private partnership had set a glowing example and both the public and private sectors could take the nation economy to new heights through this example. He said that import of LNG would be launched from November, 2014 to resolve the problem of gas shortage to industries. He said that he would personally talk to the Punjab Chief Minister for allocation of land for Faisalabad Expo centre with necessary funds from the export development fund.
Earlier in his welcome address, FCCI President Engr Suhail Bin Rashid congratulated the Ministry of Commerce, the PML-N Government for the milestone achievement of GSP Plus Status. He emphasized on the export diversification, enhancing trade with regional countries, economic and trade diplomacy , sustained economic policies and urged for the release of refund claims of exporters stuck up with various government departments to improve liquidity position of industries to produce trade surplus in the context of GSP Plus.
He emphasized on setting up of Faisalabad Expo centre, representation to FCCI in the export development fund and the TDAP Boards, participation of FCCI in foreign trade delegations, signing of more PTAs and FTAs with North America, European and Far East countries. MNAs Mian Abdul Manan and Haji Akram Ansari, former FCCI presidents - Sh Muhammad Khalid Habib, Mian Aftab Ahmed, Mian Javed Iqbal and Muhammad Ayub Sabir, FCCI Senior Vice President Riazul Haq, Vice President Ch Muhammad Asghar, Sh Muhammad Bashir, Seth Mehmood Akbar, Engr Rizwan Ashraf and Rana Sikandar Azam also shared their views on the occasion.
Illegal sand mining from Jhang branch canal continues: Illegal sand mining from Jhang branch canal closed for de-sitting, continued unchecked. Addressing a press conference at Gojra here on Tuesday, Irrigation Employees Power Union leader Allah Bakhsh Sial demanded the Irrigation Department and Toba District Administration, Faisalabad and Chiniot officials to take action against alleged thieves.
He said that canal had been closed under rotation schedule for a month and during the period it was continued unabated despite laws prohibiting the practice. Excessive in-stream sand mining has now begun to threaten some of the banks and shoulders of the canal. He claimed that whenever lower grade staffers of the Irrigation Department stopped the thieves from digging sand from the canal, they attacked and tortured them.
Source:- nation.com.pk
World's Largest Gold Coin Worth More Than Hk$300 Million Goes On Display In Hong Kong
The world’s largest gold coin, on its first visit outside Australia, was unveiled on Thursday at the Hang Seng Bank headquarters in Central as part of a showcase tour for the historic Perth Mint.
The enormous coin weighs 1,012 kilograms and is made from 99.99 per cent pure gold. It is 31 inches wide, more than 4.7 inches thick, and took some 18 months to manufacture.
The coin carries the image of Queen Elizabeth II, the head of state, on one side and a leaping kangaroo on the other.
The 2012 Australian Kangaroo One Tonne Gold Coin is worth HK$305 million, far more than the AU$1 million (HK$6.9 million) legal tender.
Since the coin was released, its worth has dropped to HK$305 million from HK$431.66 million, as the value of gold has tumbled.
Unveiling the golden disc, Andrew Fung Hau-chung, head of global banking and markets at Hang Seng Bank, said it was with luck that Perth Mint, a long-term customer of the bank, chose Hong Kong as a “strategically important” first visit.
“We distribute Perth Mint’s gold coins, and is very popular in Hong Kong and with Chinese everywhere…it demonstrates Chinese as a whole like to accumulate gold and gold bars.”
Despite the Chinese people’s huge appetite for gold, the huge coin will not be put on public display. Only ‘selected’ retail and commercial customers at Hang Seng Bank will be invited to view the coin at the bank’s headquarters. It will be on show there until January 11 before it heads to Berlin, Germany, for a world exhibition.
On its release two years ago, Perth Mint chief executive Ed Harbuz said it was “the pinnacle of ingenuity and innovation”.
“To cast and handcraft a coin of this size and weight was an incredible challenge - one which few other mints would even consider,” said Harbuz, at the time.
Fung said a number of considerations, from a lack of space to host an exhibition to a range of security and safety concerns, ultimately prevented a full public display.
Source:- scmp.com
No sec. 69B addition merely on basis of inflated stock statements given to banks for credit facility
IT: Where Assessing Officer made addition to income of assessee under section 69B on plea that there was difference in quantity and value of stock shown in books of account vis-Ã -vis as shown to bank, since assessee for purpose of fulfilling margin requirements of bank in stock statement furnished to banking authorities had reflected inflated value of stock, impugned addition was not justified
India Ups Refined Palm Oil Import Tax To Shield Local Producers
India increased import duties on refined edible oils, including palm oil, to 10 percent from 7.5 percent to protect local oilseed growers and refiners against cheaper supplies from major exporters.
The decision could shift demand in India, the world's leading importer of vegetable oils, to crude palm oil (CPO), benefiting Malaysian exporters as the country charges a lower duty on overseas CPO sales than rival producer Indonesia.
The duty on imports of crude edible oil was left unchanged at 2.5 percent, Food Minister K.V. Thomas said."The duty difference between crude and refined edible oils has been raised," Thomas told Reuters after a cabinet meeting.India mainly buys palm oil from the world' top two exporters of the tropical oil, Indonesia and Malaysia, and a small quantity of soyoil from Brazil and Argentina.
India's refined palm oil imports surged 40.5 percent to 2.2 million tonnes in the year to October 2013 as Indonesia structured taxes to favour exports of refined products over crude to support its refining industry.
The Indian government had long resisted local refiners' demands to raise duty on refined palm oil imports because of fears that such a move would stoke inflation.These fears have diminished following last year's good monsoon season which has limited food price increases.The lobby group representing Indian refiners said the measure was modest and would not affect inflation.
"This is an inflation neutral meagre support to the domestic refining industry as the duty gap with crude variant should have been more," said B.V. Mehta, executive director of Mumbai-based trade body the Solvent Extractors' Association.Fadhil Hasan, executive director of Indonesian Palm Oil Association, said the measure would hinder the country's exports to India.
"It will be more difficult for Indonesian refined palm oil producers to enter the Indian market," he said.A Kuala Lumpur-based trader said the hike would shift demand to CPO, forcing Malaysian refiners to seek new markets."Any displacement of import of processed palm oil means we have to find other export outlets," said Mohammad Jaaffar Ahmad, chief executive of Palm Oil Refiners Association of Malaysia.
Source:- in.reuters.com
Import Duty On Refined Oil Raised To 10 Per Cent
The government, on Thursday, increased the import duty on refined edible oil to 10 per cent from 7.5 per cent at present to protect the domestic processing industry and farmers.
The increased duty was approved by the Cabinet Committee on Economic Affairs (CCEA).
The move is expected to fetch the government Rs.600 crore in revenue, while retail prices of refined oil may increase marginally.
“The CCEA has approved increasing import duty on refined edible oil to 10 per cent,” Food Minister K. V. Thomas told PTI after the meeting.
The agriculture, finance and commerce ministries supported the decision to maintain a 7.5 per cent import duty difference between refined and crude edible oils, he added.
The import duty on crude edible oil is now 2.5 per cent. India imports more than 10 million tonnes of vegetable oils every year, which is almost 50 per cent of the domestic need.
Local refiners are now operating below capacity, which affects farmers as well, because importing refined edible oil has become more viable than buying crude edible oil from overseas.
Source:-thehindu.com
Rupee Ends Flat At 62.07 After Erasing Initial Losses
The rupee recovered from initial losses and settled at the overnight closing level of 62.07 against the dollar on Thursday after a late bout of sales by exporters as the US currency weakened overseas.
Fresh capital inflows after three days of outflows and a late recovery in local equities also helped the rupee.
At the interbank foreign exchange market, the local currency resumed lower at 62.22 a dollar from the previous close of 62.07 and declined to a low of 62.24 as domestic equities declined.
It rebounded to a high of 61.9650 on late dollar selling by exporters before ending at 62.07. Yesterday, it had gained 23 paise to a one—week high.
The benchmark 30—share S&P BSE Sensex fell 16.01 points today. Overseas investors bought a net 27.07 million of shares yesterday, as per Sebi data.
“The rupee recovered and closed flat as the dollar index, which measures the greenback against a basket of six major rivals, traded weak after strengthening for two consecutive days,” said Pramit Brahmbhatt, CEO of Alpari Financial Services (India). “Now the local investors are eyeing the release of key inflation data next week.
Source:- thehindu.com
No credit on free supply of goods under sales promotion scheme
Cenvat Credit/ECJ : Goods supplied free under sales promotion scheme are ineligible for credit except where said goods were used for providing free warranty for final product
HC dismissed winding up petition as petitioner failed to prove unpaid claim of respondent
CL : Where petitioner failed to produce any document to establish that goods were sold by petitioner to respondent company and bills had remained unpaid, winding up petition against respondent was to be dismissed
HC rules out applicability of sec. 43B to employees’ contribution to PF; no deduction if paid after
IT : Due date under section 43B (i.e. due date of filing ITR) not applicable under section 36(1)(va) to employees' contributions to PF/ESI etc.
FDI policy reviewed: Ministry retains 100% FDI in Pharma Sector, restricts use of ‘non-compete’ clau
FDI/FEMA/ILT : Consolidated FDI Policy Circular 1 of 2013 - Review of Existing Policy on FDI in Pharmaceuticals Sector - Amendment in Paragraph 6.2.18 of Consolidated FDI Policy Circular 1 of 2013
Setcom has discretionary powers to order further enquiry in order to fix the fate of settlement appl
IT : Jurisdiction to determine as to whether a further enquiry or investigation is necessary under section 245D is vested with Settlement Commission
Sum actually received by assessee from sale of goods can only be subjected to VAT
ST/VAT : In case of sale of vouchers/coupons at discount to distributors/prospective buyers for being adjusted at face value against subsequent purchases, sale value of subsequent purchase of goods by buyers would be price paid by them and sum received on sale of vouchers
Remission of duty - Reverse pro rata input service credit as well; CCR amended
GST : Rule 3 of The Cenvat Credit Rules, 2004 - Cenvat Credit - Reversal of, In Case Duty Remitted on Final Product - Manufacturers Required to Reverse Pro Rata Credit of Input Services Also Pertaining to Final Product on Which Duty Has Been Remitted; Reversal to be Made on Monthly Basis
Interest paid by assessee on its failure to export as per export promotion scheme is not illegal; no
IT: Interest paid by assessee to DGFT on account of its failure to fulfil export obligation under EPCG scheme was not penal in nature and, thus, assessee's claim for deduction in respect of said payment was to be allowed
On acceptance of demand, consequential interest thereto can’t be avoided
Cenvat Credit : Where assessee had, voluntarily, reversed pro rata Cenvat credit pertaining to exempted goods, assessee could not contend that it was not liable to reverse any credit and since assessee had itself accepted requirement of reversal of credit, interest liability would follow as a consequence
Admission of substantial question of law by HC saves assessee from clutches of concealment penalty
IT: Where High Court admitted substantial question of law on addition in respect of which penalty was levied, impugned order of penalty was to be deleted
SEBI issues operational norms for depository participants to facilitate execution of foreign portfol
SEBI : SEBI (Foreign Portfolio Investors) Regulations, 2014 - Operational Guidelines for Designated Depository Participants
RBI eases gold loans norms; lending cap raised to 75% of gold value, devises new way to verify owner
NBFCs : Lending Against Security of Single Product – Gold Jewellery
Deemed capital gain on sale of shares if shares were held for investment and not for trading purpose
IT: Gains from sale of shares, held as investments and not for trading, by assessee who was a salaried employee, is assessable as capital gains and not business income
Writ against pre-deposit order of Tribunal isn’t maintainable, as such order is appealable before HC
Excise & Customs : Interim/Pre-deposit orders passed by Tribunal are appealable before High Court under section 35G of Central Excise Act, 1944; therefore, High Court cannot entertain any writ petition against judgment of Appellate Tribunal except where there is : (1) lack of jurisdiction; or (2) violation of natural justice; or (3) Tribunal order based on ultra vires law
Input credit isn’t available on services used for trading activities
Excise & Customs : Assessee is not entitled to credit of input services used in respect of traded goods; hence, assessee was required to make proportionate pre-deposit.
Duty leviable from first day of FY when assessee admits manufacturing of ‘PAN Masala’ without regist
Excise & Customs : Where assessee had admitted manufacture of Pan Masala without registration since Jan., 2011, prima facie, duty was leviable as per deeming provisions of rule 17(2) of Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008, since 1st April of that financial year i.e., since 1-4-2010
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