Monday, 20 January 2014
Insurance claim received to cover loss of production isn't eligible for sec. 80-IA deductions
No deduction merely on basis of treatment given in prior years unless conditions of that provision a
Adjudicating authority can't review its decision by issuing second SCN, unless power thereof is conf
Sum paid to retiring partner towards his share of capital can't be claimed as deduction towards 'goo
India Set To Retain Top Rice Exporter Tag
Sharp rise in demand from the US, Europe and the middle-eastern countries for Basmati rice and Africa and Asian countries for non-Basmati rice, India is all set emerge as world’s top rice exporters in the current fiscal.
This will be second time in a row that India is likely to emerge as biggest rice exporter globally. As per the commerce ministry data (April-November, 2013), India has exported close to 7 million tonnes (MT) of rice and expected to ship more than 10.5 MT by end of current fiscal.
More than 2.3 MT of aromatic and long-grain Basmati rice and 4.6 MT of non-Basmati rice were exported during first eight months of the current fiscal. “Demand for rice has been rising from all across the globe and we expect to reach a record level of exports by the end of current fiscal,” a commerce ministry official said.
The exporters are targeting to achieve more than 10.5 MT of rice in 2013-14 while in the previous fiscal, the country has shipped 10 MT. Thailand and Vietnam are the other rice exporters, who ship around 7 MT of rice annually each. Rice exports have been looking northwards since the country lifted a four-year ban on non-Basmati rice shipment after in September 2011. The ministry data also indicate that last fiscal rice exports fetched more than Rs 33,800 crore while in the April-November 2013 period, India has earned more than Rs 29,000 crore.
Source:- indianexpress.com
Maine Risks Being Left Behind In Natural Gas Revolution
Maine’s 2013 omnibus energy bill, LD 1559, focused regional attention on the importance of relieving constraints in New England’s natural gas infrastructure, and in particular, on how our region’s natural gas basis differential — the extra price we pay for natural gas on top of what consumers elsewhere pay — silently but dramatically increases heating and electrical costs for homes and businesses.
The omnibus bill provided a mechanism for the Maine Public Utilities Commission to work with the other New England states to contract for pipeline capacity and lower future gas and electricity costs. That process is now underway, but unfortunately, some of the proposals under negotiation fall far short of the longer-term need and may have the primary effect of helping southern New England states while helping Maine consumers only marginally. The proposed new pipeline capacity would increase gas supply for heating, but it does not adequately help power generation or manufacturing needs. Worse, it commits the region to paying for upwards of 2,400 megawatts of power transmission lines, likely sited in Maine, allowing the future purchase of Canadian hydroelectrical power on a massive scale.
So how does this affect the home and small business owners? This group mostly buys electricity through the Standard Offer rate approved by the Maine Public Utilities Commission. Your power rate today was set back in 2012, before the full effects of the pipeline constraints were priced into the market. Expect to see your home electricity costs rise in the near term as future Standard Offer prices increase to match current elevated natural gas prices. While consumers elsewhere in the country enjoy record low prices for electricity and natural gas, Maine shivers and grows poor.
In December, this problem, high energy costs from elevated basis differential, caused a production outage at the 450-employee Huhtamaki mill in Fairfield. On Jan. 11, a two-week shutdown of the Verso Bucksport mill, with 850 employees, was announced for the same reason: high short-term natural gas costs.
This crisis is unprecedented in Maine. It means the situation is getting worse: Last winter, Maine experienced natural gas prices of $16 per MMBtu. This winter is poised to be even worse due to colder weather and continued natural gas pipeline bottlenecks into New England. In December 2013, the average spot price for natural gas at Algonquin Citygate in Boston was $13.367 per MMBtu, up over 130 percent from December 2012. On Jan. 6, 2014, the Algonquin Citygate spot price for natural gas averaged $34.14 per MMBtu, and other prices around New England were in the mid-$30 per MMBtu range. Then, on Jan. 7, 2014, natural gas prices in New England reached record highs, with midpoint prices up to $40 per MMBtu and bids as high as $100 per MMBtu.
What New England needs is 2 billion cubic feet per day of additional natural gas pipeline capacity, along with the electricity transmission capability to set the stage for uniform energy costs for New Englanders, as compared to the rest for the nation. Without a 2 billion cubic feet per day pipeline, we will continue to be energy-cost disadvantaged and will fall further behind in job opportunities and standard of living compared to the rest of the nation. We certainly cannot permit the other New England states to be on parity with the nation while Maine is not.
Maine citizens should contact Gov. Paul LePage to thank him for his leadership on this problem so far and to request that he dig in, hold fast and get the complete solution Maine needs.
Bob Dorko serves as the president of the Industrial Energy Consumer Group, which represents some of Maine’s largest industrial energy consumers, and can be reached at 474-6805.
Source:- bangordailynews.com
Sec. 40(a)(ia) contemplates actual tax deduction and not mere debit entry in account of payee
Red Wine Fall Drags Down Export Volumes
A report shows Australian wine exports decreased by 6 per cent to 678 million litres last year.The Wine Exports Approval Report reveals bulk exports of red wine into the UK and US fell the most, offsetting a rise in white wine exports.
Despite this, the average value of wine exports actually rose 1 per cent, to $2.59 a litre, due mostly to a 3 per cent rise in the value of bottled wine exports.
The presence of free trade agreements between competing nations like Chile and important export markets such as the European Union and China were singled out by the report as a contributing factor to the decline in exports.
The report says these FTAs are an "exacerbating factor" in the drop in bulk red wine exports.Wine Australia's acting chief executive Andreas Clarke says to remain competitive, Australia must improve its image on the global market.
"I think the key message is we need to continue to work hard to build our brand and engage with our key consumers in our key markets."We just have to continue to work hard to help promote the country on a global basis."
Source:- abc.net.au
Vietnam's 2013 Oil Product Imports Fall For Second Year On Higher Domestic Output
Vietnam's imports of oil products trended lower for the second consecutive year in 2013 amid increased domestic production and continued economic weakness, an analyst from the Vietnam Petroleum Institute said Friday.
The country imported 7.37 million mt of oil products last year, down 19.9% from 2012, customs data released late last week showed. It imported 9.2 million mt in 2012, down from 10.67 million mt in 2011.
The value of the imported oil products totaled $6.98 billion, down 22% from 2012. Vietnam does not reveal its annual oil products consumption data.State-owned Petrolimex, which accounts for over half of Vietnam's domestic market, skipped its quarterly oil product purchases several times in 2013 due to ample stocks amid low demand, Platts reported earlier.
The country's sole refiner PetroVietnam produced 6.6 million mt of oil products in 2013, up 17.8% from 2012, according to the latest data released by the state-owned company. Apart from the 130,000 b/d Dung Quat refinery in central Vietnam, the country's oil products supply comes from some condensate processing plants in the southern province of Ba Ria Vung Tau.
"In 2013, Binh Son Refining and Petrochemicals has maintained stable operations for Dung Quat at its designed capacity in 498 days," General Director Dinh Van Ngoc said earlier this month.
In 2014, Vietnam's domestic output of oil products is expected to fall with PetroVietnam having said that it aims to produce 4.6 million mt, down 30% from 2013, largely due to planned maintenance at the Dung Quat refinery over May 19-July 9. SINGAPORE, CHINA TOP OIL PRODUCT SUPPLIERS
Singapore and China remained the top suppliers of refined products to Vietnam in 2013.Imports from Singapore, however, fell 46.2% year on year to 2.03 million mt while supplies from China remained almost flat at 1.29 million mt.
Vietnam imported 687,000 mt of oil products in December last year, up 22.2% from December 2012, according to customs data released on Friday. Compared with November, imports were up 26.2%.The value of the imports in December totaled $668 million, up 24.8% year on year and up 28.6% from November.
Taiwan accounted for 20% of the oil product imports in December with 137,763 mt, followed by South Korea with 126,372 mt and China with 123,931 mt. Singapore ranked fourth with 109,337 mt.
Meanwhile, Vietnam exported 680,866 mt of crude oil in December, up 11% from a year earlier but down 17.2% from November. The value of the exports totaled $610 million, up 16.2% year on year but down 16.1% from November.
Vietnam exported 231,533 mt of crude oil to Japan in December, 150,102 mt to Australia and 2,493 mt to Malaysia.
In the whole of 2013, Vietnam exported 8.4 million mt of crude oil, down 8.8% from 2012, and the exports were valued at $7.2 billion, down 11.4% from the year before.
Its major customers all saw a drop in supplies in 2013. Vietnam exported 784,316 mt of crude oil to China in 2013, down 33% year on year; 2.42 million mt to Japan, down 15.7%; and 1.89 million mt to Australia, down 3.6% from 2012.
The country imported 93,105 mt of crude oil for its Dung Quat refinery in December 2013, up 10.2% from a year earlier and up 5.9% from November last year. The imports were valued at $82 million, up 17.1% from December 2012 but down 3.3% from November.
In the whole of 2013, Vietnam imported 1.29 million mt of crude oil, up 77.2% from 2012, valued at $1.1 billion, up 70.4%. Most of the crude oil came from Brunei (718,154 mt) and Malaysia (218,696 mt).
Source:- platts.com
Gold Importers Come Under Tax Scanner In India
Analysts said the latest move, which comes in the wake of a rise in the import tariff value of gold to $407 per 10 grams last week by India, is expected to incentivise the illegal transportation of gold into India.
Financial details of Indians bringing in gold from abroad after duty payment will henceforth be shared by customs authorities with Income Tax department.
The dramatic joint move by customs and tax authorities is aimed at curbing suspicious ferrying of gold into India by carriers — mostly low income expatriate workers in the Gulf — deployed by organised gang of ‘indirect’ importers.
Analysts said the latest move, which comes in the wake of a rise in the import tariff value of gold to $407 per 10 grams last week by India, is expected to incentivise the illegal transportation of gold into India, the largest yellow metal consumer in the world with imports surging to 830 tonnes in 2012-13.
Under the current rule, an Indian who has been living abroad for over six months can legally bring in a kilo of gold after payment of duty. The duty, which is charged at the rate of 10 per cent of the value, is payable in currency of the nation where the gold was bought.
Besides, a man can also bring in gold jewellery worth Rs50,000 and women Rs100,000, without payment of any duty, provided they live abroad for more than a year.
Indirect gold importers in India have been paying Rs50,000 to Rs75,000 and free air tickets to each carrier for importing one kilo of gold. A smuggler is able to make a profit of Rs75,000 on every kilo of gold even after paying the duty and the commission to the carriers.
The smuggled gold is being sold to jewellery makers in Kerala, Tamil Nadu and Andhra Pradesh. According to reports, gold that was brought in after paying the required duty totalled 80kg in a week last month at Kerala’s Calicut airport alone. However, the new move to put the person bringing the gold under the income tax net may deter many from acting as carriers.
Officials in the Directorate of Revenue Intelligence (DRI) said at least 3,000kg of gold has been legally brought into the country after payment of customs duty during 2013-14.
“There is a possibility of an organised gang of hawala operatives who could be exploiting these people after paying money. The PAN card details of these flyers are being shared with Income Tax department to ascertain source of their income and avoid possibility of any wrongdoing,” a senior DRI official said.
Informed source say that the carriers may have to pay wealth tax if they declare that the gold brought by them is for themselves. If they say the gold is sold they will be forced to pay the sales tax. In that case, they will also have to produce the documents for the sale.
Source:- khaleejtimes.com
Rupee Closes 8 Paise Lower Against Dollar
In a dull and listless trade, the rupee on Monday lost eight paise to close the day at 61.62 against the dollar on demand for the US currency from importers.
The domestic currency resumed lower at 61.65 a dollar from last weekend's close of 61.54 at the Interbank Foreign Exchange (Forex) market. It was trapped in a narrow range of 61.54 and 61.67 before ending the day at 61.62, a fall of 8 paise.
Sustained capital inflows, a slightly weak dollar in the overseas markets and recovery in local equities restricted the rupee fall, a forex dealer said.
The benchmark S&P Sensex bounced back by 141.43 points after two days of loses, while FIIs injected Rs 384.89 crore as per provisional data with stock exchanges.The dollar index was down by 0.05 per cent against a basket of six major global rivals.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India), said: "Dollar demand from oil importers weakened the rupee but the fall was capped as the dollar index traded weak in the global market and the local equities closed up."Forward dollar premiums dropped sharply on fresh receipts by exporters.
The benchmark six-month forward dollar premium payable in June dipped to 214-216 paise from last Friday's close.Far-forward contracts maturing in December tumbled to 442-444 paise from 459-461 paise.
The RBI fixed the reference rate for the dollar at 61.6345 and for the euro at 83.4245.Forward dollar premiums dropped sharply on fresh receipts by exporters.
The benchmark six-month forward dollar premium payable in June dipped to 214-216 paise from last Friday's close.Far-forward contracts maturing in December tumbled to 442-444 paise from 459-461 paise.
The RBI fixed the reference rate for the dollar at 61.6345 and for the euro at 83.4245.The rupee eased to 101.24 against the pound from 101.22 previously and also remained weak at 59.16 per 100 Japanese yen from 58.94.It, however, firmed up further to 83.47 per euro from 83.71.
Source:- businesstoday.intoday.in