IT : Where in spite of many opportunities assessee failed to clarify as to why rental income had been shown as business income till 2007-08 and as income from house property thereafter, reopening of assessment could not be held to be contrary to law
Wednesday 29 January 2014
Addition on the basis of panchanama was to be deleted if assessee subsequently brought sufficient ev
IT: Where in block assessment proceedings Tribunal confirmed an addition only on account of difference between numbers in fixed deposits receipt as inventorised in panchanama and numbers appearing in supporting documents, in view of fact that assessee subsequently obtained a certificate from concerned bank against said addition, impugned order passed by Tribunal was to be set aside and matter was to be remanded back for disposal afresh
Self-Service Tax Center Now Open For Business
The self-service tax center at Naval Base Ventura County (NBVC) Port Hueneme is now open in Building 103, the headquarters for Naval Mobile Construction Battalion 3 at Harris Street and 23rd Avenue.
Volunteers will be available to help with any tax questions while taxpayers complete their own federal and state returns.The self-service program is available to active-duty service members from all branches, their dependents and retirees. The program is free to all service members and their dependents; there is a minimal charge for retirees whose adjusted gross income is more than $58,000.
“You will get your refund through this program just as fast as you would through any commercial tax preparers — if not faster — and we will usually save you more than $100 in preparation fees,” explained Sal Gonzales, the legal assistance clerk at the Region Legal Service Office, Detachment Ventura, who has coordinated the tax center on base since 2002. “Why pay for a service that is offered to you here at no charge or a minimal charge?”
Taxpayers can prepare their returns on a first-come, first-serve basis. Last year, 1,100 federal and state tax returns were prepared at the center, yielding more than $1.2 million in refunds.
To use the center, taxpayers will be required to have an email address.
“For those taxpayers who do not have an email address, I would suggest you ask a family member or a friend if you could use their email address,” Gonzales said.
The tax center is open from 11 a.m. to 4 p.m. Monday through Friday in classroom 102 of Building 103. The center will be closed Friday, Feb. 14, and Monday, Feb. 17.
If the return is complex — including returns involving homeowners, rentals, day trading, capital gains and other issues — there will be a limited number of appointments available on a case-by-case basis with an experienced volunteer. This service is not guaranteed, however, since this program is designed to assist people with fairly simple returns.
Gonzales said the self-service program does not require both husband and wife to be present since there is no signing of documents.
In addition, he said, if the return comes back rejected after it was prepared at the center, “we can assist you in correcting the issue.
“Unfortunately, if you complete your return with any other program. we cannot assist you in fixing your return because we were not properly training with the program you used.”
Anyone with questions can stop by the tax center during open hours or call the Region Legal Service Office at (805) 982-4548. This also is the number to call to make a tax appointment
Source:- vcstar.com
Wheat Recovers From 42-Month Low On Cold Weather, Export Demand
Wheat rallied from the lowest level since 2010 amid concern cold weather in the U.S. may damage crops and speculation demand for supplies from the biggest exporter rose. Corn headed for the first monthly gain in five.
Wheat for March delivery gained as much as 0.5 percent to $5.5425 a bushel on the Chicago Board of Trade and was at $5.53 by 11:08 a.m. in Singapore. Futures touched $5.50 yesterday, the lowest price since July 14, 2010, and are set for an 8.6 percent loss this month after a 9.5 percent slump in December.
As much as 10 percent of wheat in the Great Plains and 2 percent in the southern Midwest may be hurt after some protective snow cover melted last week, according to Commodity Weather Group LLC. U.S. export sales of corn and wheat probably increased in the week ended Jan. 23 from a year earlier, based on a survey of four analysts by Bloomberg News.
Story: India's Farmers Benefit From Better Roads, Which May Help Singh
“We note some support to wheat prices stemming from concerns that cold temperatures in the U.S. could result in winterkill,” Vanessa Tan, an analyst at Phillip Futures Pte in Singapore, wrote in an e-mail today. The decline in prices to a 3-1/2 year low may also help spur some demand, she said.
Wheat shipments are expected to be in a range of 300,000 metric tons to 625,000 tons from 293,627 tons a year earlier, the survey showed. The U.S. Department of Agriculture is set to release its sales report at 8:30 a.m. in Washington today.
Corn for delivery in March gained 0.1 percent to $4.2775 a bushel, heading for a 1.4 percent advance this month, the first such increase since August. Soybeans fell 0.2 percent to $12.6725 a bushel, poised for a second monthly decline.
Source:- businessweek.com
Textile: Take Eu Conventions Seriously, Advise Experts
Experts have warned the government against taking the European Union (EU) conventions non-seriously if it wants to avail the benefits of the Generalised System of Preferences (GSP) Plus beyond 2017.
“I am sure that even our most important ministries have not gone through the requirements of GSP Plus scheme that the country has to comply with,” Habib Metropolitan Bank President and Chief Executive Officer (CEO) Sirajuddin Aziz commented during a panel discussion of a conference on ‘GSP Plus: Opportunities Through Good Governance’.The conference was organised by the Pakistan Institute of Corporate Governance (PICG) on Wednesday.
After commenting on the government’s responsibility, Aziz said that the country would see improvement in governance when individuals also feel their responsibilities.
“Pakistan is a nation of 180 million leaders, that is why we have so many leaders and no followers,” said Aziz as he concluded his speech on corporate governance.
Pakistan’s top experts who gathered from different sectors also urged the private sector to do what it can for the GSP Plus scheme instead of only relying on the government.
“It’s a collective process in which both the private and public sector need to take steps,” Orient Textile Mills CEO Iqbal Ebrahim said.
“But I must tell you, we have to take care of the 27 international conventions to succeed in the reassessment that the EU would do after three years in 2017, or we will lose these important duty concessions,” warned Ebrahim.
However, former chairman Federal Board of Revenue (FBR) Abdullah Yusuf allayed fears. “The government can improve things and there is no need to be pessimistic,” said Yusuf.
Most of the speakers seemed confident with PML-N’s commitment on the issue and said that they believe the government is serious about benefitting from trade concessions.
“Pakistani leather companies are getting orders from Europe for new products and industrialists are confident that this will continue,” Firoz International CEO Gulzar Firoz said.
Speaking on diversification, Firoz citied various examples of new leather products that have been developed by local industries, and are now being exported to Europe.
However, Firoz urged government to start focusing on environment-related EU conventions.
The experts were unanimous that with the GSP Plus scheme, Pakistan has a strong edge over its competing countries. They quoted the examples of incoming Chinese investments in the country’s textile sector and the decline of China’s share in world textile market.
China’s share in world textile market has declined to $270 billion from $300 billion. This is happening at a time when Pakistan is going to improve its position in world textile market. Besides, China’s textile imports from Pakistan have also jumped to $1.7 billion which is another opportunity for Pakistan to increase its exports.
In last six months, textile sector has outperformed KSE-100 Index by a big margin. Textile sector posted a return of 37% in last six months against the overall KSE-100 return of 15%.
One of the biggest beneficiaries of new duty concessions in EU market would be the textile industry of Pakistan that exported products worth $13.1 billion in last fiscal year – almost half of Pakistan’s total exports of $24.6 billion.
Source:- tribune.com.pk
Mere polishing, packing or fixing threads on jewellery doesn't amount to manufacture
CST & VAT : Activity of skillfully fabricating of gold by goldsmiths to make ornaments as per designs given by supplier of gold amounts to 'manufacture' but mere hand polishing, packing or fixing threads to made-up ornaments would not amount to manufacture
Taxability on presumptive basis won't stop AO from making addition for unexplained cash credits
IT: In an appropriate case, Assessing Officer can make addition in respect of both cash credits under section 68 as well as business income estimated by him under section 44AD after rejecting books of account maintained by assessee finding those books as unreliable
Underweight Rating On Jsw Steel Hsbc
Stood at Rs 24 a share, in line with our and Street estimates. Crude steel production, at 3.2mt, was up c16% y-o-y on pro-forma basis (adjusted for a scheme of amalgamation) amid tepid consumption growth in India as a third of production was channelled into export markets.
In our 17 January report, we had highlighted that exports from India have grown c15% y-o-y between Apr-November 13 largely following rupee depreciation. The quantum of JSTL’s exports accounted for almost 60% of exports out of India during the last quarter.
Net income, at Rs 460 crore came marginally below estimates as effective tax rate stood at c45%. Subsidiaries’ operating performance was broadly in line with expectations.On the conference call, JSTL mentioned that it has accelerated capital spending in FY14e although the quantum of capex over the next three years remains constant. JSTL also mentioned that cost of iron ore in Karnataka auction market has risen in Q3FY14, and has been increasing post December 13 as well.
We stay ‘underweight’ on JSTL with an unchanged target price of Rs 950 per share. Our target implies a potential return of 5% (including forecast dividend yield of c1%).
Source:- financialexpress.com
China’S Slowdown Fears Hit Metal Stocks
Though China’s manufacturing slowdown will help steel companies tap export markets more vigorously, demand for other industrial metals, such as copper, nickel, zinc and aluminium, depends on China’s demand.
Most metal and mining company stocks tumbled on Wednesday after the HSBC PMI (Purchasing Managers’ Index) for China released on Wednesday indicated a sharp slowdown in their economy.
The index fell to its lowest level in six month to 49.6 in January against 50.5 in December. Though China’s manufacturing slowdown will help steel companies tap export markets more vigorously, demand for other industrial metals, such as copper, nickel, zinc and aluminium, depends on China’s demand. Prices of these industrial metals may crash as the demand in China determines the pricing trend.
Besides, export of iron ore from India to China will come under pressure. Earlier this week, the Government imposed a 5 per cent export duty on pellets. Export of raw iron ore or fines and lumps already attract an export duty of 30 per cent.
Pellets are value-added products derived from the leftover material or low-grade iron ore and are used in steel making. In recent times, they have emerged as a major product for the iron and steel industry in the country due to scarcity of ore in some regions following mining bans in Karnataka and Goa.
Most metal and mining stocks, including Jindal Saw(-1 per cent), Tata Steel (-2 per cent), Hindalco (-2 per cent), SAIL (-3 per cent), Jindal Steel and Power (-2 per cent) and Sesa Sterlite (-3 per cent), fell on Wednesday.
Terming the levy of export duty on pellets as a retrograde step, S.K. Chatterjee, Secretary, Pellet Manufacturers Association, said: “We strongly feel that the Government is playing into the hands of a handful of steel makers. We urge the Government to reconsider their decision and exempt pellets from export duty.”
Goutam Chakraborty, Research Analyst, Emkay Global Financial Services, said China faced a similar situation of a slowing economy about four to five months back, but investors felt a resurgent US economy would bail out China from the slowdown. Wednesday’s PMI’s data however, reveals that the Chinese economy is struggling.
“Besides the China factor, the recent hike in key banking rates by the RBI may push up lending rates and further cripple investment in the infrastructure sector,” he said.
Source:- thehindubusinessline.com
P Chidambaram Says Restriction On Gold Imports Helped Control Current Account Deficit
Finance minister P Chidambaram has identified quantitative curbs and enhanced tariffs on gold imports as an important factor in bringing India's current account deficit (CAD) under control this year. At the same time, he has said up to three tonnes of gold are probably smuggled in every month. Gold smuggled in has to be paid for in foreign currency, which means that it is flowing out of India through fictitious accounts. This inconsistency is a reason why import restrictions on a scale that encourage smuggling are counterproductive. Moreover, the unintended consequence of a well-oiled smuggling network has adverse security implications.
The data shows a sharp turnaround in India's CAD over the last six months. CAD between July and October was $5.2 billion, or 1.2% of gross domestic product. To put the improvement in perspective, CAD had exceeded 6% of GDP for a while in 2012. A fall in stated gold imports contributed to the improvement as did a dip in machinery and coal imports and a pick-up in exports. The improvement in CAD appears to be a combination of exports responding positively to a fall in the value of the rupee and an improvement in US economy, as well as to a domestic slowdown curtailing imports.
Gold serves as an important financial asset for a typical Indian household. Our underdeveloped financial system inevitably leads to its demand, which cannot be checked for long through import restrictions. Also, a network established for smuggling gold is available for use by terror networks. The answer to a widening CAD is more economic reforms, not policies that simply push the problem out of sight. The more India is integrated with the global economy, the less effective are controls such as import restrictions.
Demands for rolling back restrictions on gold imports, in order to curtail gold smuggling, are inopportune. Import restrictions have reduced gold inflows. A rollback can reverse these gains and cause another import surge. This will once again worsen external sector imbalances and cause another run on the rupee. With emerging market currencies facing greater volatility following fears of a faster tapering of quantitative easing by the Federal Reserve, this is certainly not the right time to free gold imports and trigger another free fall of the rupee.
Freeing up regulatory restrictions on gold imports will have to await a sharp correction in macroeconomic imbalances, caused by government's inability to curb oil import bills because of subsidised consumption of oil products and the erosion of real return on assets due to rising prices. While availability of subsidised oil products bloated imports, rising prices forced people to shift savings from bank deposits and other assets to more attractive avenues like gold. The resultant surge in imports and current account deficit could only be halted by a sudden clampdown on gold inflows as curbs on oil imports would bring the Indian economy to a grinding halt.
Even if curbing gold imports leads to smuggling, the overall quantum of gold imports will still be reduced because of the difficulties of smuggling gold as opposed to buying freely available gold in the open market. Restrictions should be coupled with better monitoring and a tough crackdown on gold smuggling, so that smuggling rings do not take root. Along with this one can have financial products pegged to the price of gold, so that those who crave the security of gold can purchase these products instead. Today's dire macroeconomic situation admits of no other solution.
Source:- timesofindia.indiatimes.com
Indian Rupee Ends 10 Paise Higher At 62.41 Against Us Dollar Ahead Of Fed Decision
Rising for the second day, the rupee appreciated by 10 paise to end at 62.41 against the dollar today on sustained selling of the American currency by exporters ahead of a decision of US Federal Reserve on tapering its monetary stimulus.
Weakness in the dollar index, which was down by 0.10 per cent against a basket of major global rivals, also helped the rupee gain after a 59 paise rise yesterday when the RBI unexpectedly increased the repo rate.
At the Interbank Foreign Exchange (Forex) market, the local unit resumed strong at 62.28 a dollar from last close of 62.51. It rose further to a high of 62.1050 on initial rise in domestic stocks.
However, tracking volatility in stocks, the rupee later fell back on dollar demand from importers, mainly oil refiners, to meet their month-end requirements.It touched the day's low low of 62.52 before settling at 62.41, a rise of 10 paise or 0.16 per cent over Tuesday.
Pramit Brahmbhatt, CEO, Alpari Financial Services, India said: "Rupee extended its gain today and traded near 62-levels...overall signs of improvement in the US economy suggest Fed officials will stay on track to cut monthly buys."
Fears of a fresh cut in the US central bank's monthly bond buying programme are among the reasons that have dragged down emerging market assets recently. The Fed has already cut its purchases by USD 10 billion to USD 75 billion.
"Some portion of the weakness can also be attributed to the rising talks about (another) USD 10 billion reduction in the asset purchase program at the FOMC meet which will end today. After the RBI policy, the FOMC meeting will be the most significant event which will be giving a direction to the USD-INR pair," said Abhishek Goenka, Founder and CEO, India Forex Advisors.The Indian benchmark S&P BSE Sensex today washed out initial gains on late profit-booking and closed down by 36.21 points.FIIs pumped in Rs 250 crore in equity markets today after pulling out over Rs 1,250 crore yesterday.
Source:- financialexpress.com
TPO can use comparable data which weren't available in public domain while preparing TP documents by
IT/ILT: Comparable data which was not available to assessee at time of preparing TP documentation can be used by TPO at time of TP analysis, provided such information is made available to assessee for its objections
Services provided to identify prospective Indian clients for foreign co. tantamounted to export of s
Service Tax : Support services provided to a foreign company by way of identification of prospective customers in India amounts to 'export of service' and is not liable to service tax
Delhi HC rejects writ filed beyond jurisdictional limits, directs petitioner to file writ with right
CL: Where petitioner filed writ petition and sought quashing of trial proceeding initiated against him, it would be appropriate that only such High Court, within whose jurisdiction sub-ordinate Court was located before whom such trial proceedings were pending should entertain writ petitions under article 226
Free supply of diesel by service recipient isn't includible in value of mining services
Service Tax : Diesel received free of cost from service recipient and used for running of machinery used in mining activity is not includible in value of minding services
When SC confirmed that shares issued under ESOP wasn't perquisite, any tax deducted from salary was
IT : In pursuance of order passed by Supreme Court that shares allotted to employees under Employees Stock Option Scheme did not amount to perquisite and, thus, there was no liability to deduct tax at source in respect of same, amount so deducted in case of assessee-employee on aforesaid ground was to be refunded alongwith interest
Mere possibility of an event which has actually not happened can't said to be a violation of regulat
CL : Mere possibility of an event which has actually not happened can't said to be a violation of regulation
Sec. 54F relief isn’t allowable if assessee owns more than one residential house even on joint-owner
IT : Where an assessee on date of transfer of original asset, owns more than one residential house, he is not eligible for deduction under section 54F, even if other residential house is owned by assessee wholly or partially
De-facto ownership of asset to be considered for computing holding period of capital assets, rules H
IT : Period of holding as de facto owner should be considered for computing holding period of capital asset u/s 2(42A)
Period of delay doesn't matter if cause of delay is genuine; HC condones delay of 10 years in filing
CST & VAT : If, due to taking over of assessee's factory by State Corporation and assessee leaving India, assessee became aware of assessment proceedings after delay of 10 years, then, even such delay could be condoned
HC directs CIT(A) to swiftly dispose of pending appeal as it would decide fate of recovery proceedin
IT : Where application for stay of recovery proceeding was filed before Recovery Officer contending that application for stay of demand was pending in appeal, Commissioner (Appeals) was to be directed to dispose of pending appeal
Investment advisors certified by Financial Planning Standard Board need not to obtain certification
SEBI : SEBI (Certification of Associated Persons in The Securities Markets) Regulations, 2007 - Obtainment of Specified Certification by Investment Advisers and Their Associated Persons, Including Their Partners and Representatives, Offering Investment Advice
RBI hikes penal interest rates on shortfall in reserve requirements consequent to increase in bank r
BANKING : Revision of Bank Rate
Assessee's case transferred from Mumbai to Delhi as it had transactions with entity being assessed b
IT: Where Commissioner, Mumbai, in exercise of power under section 127(2), transferred assessee's case from jurisdiction of Deputy Commissioner, Mumbai to Deputy Commissioner, New Delhi, on ground that cases of one 'S' Group were centralised with Deputy Commissioner, New Delhi, with whom assessee had large scale financial transactions, there being a valid reason to transfer assessee's case, impugned order passed by Commissioner did not require any interference
Bogus purchases and profit earned therefrom surrendered by assessee had to be added to his income
IT : Declared income on account of surrender made by assessee during course of assessment proceedings should be added to income of assessee
AO's satisfaction isn't enough to levy penalty, he should state reasons for his being satisfied in h
IT : In his order imposing penalty, AO must also state the "reasons" for his 'satisfaction' that penalty is attracted
Hiring out broadband network won't be deemed as 'on-line information and database access or retrieva
Service Tax : Where assessee had only hired out infrastructure of broadband for use of customer and had not provided any data or information to customer, said activity did not amount to 'online information and data base access and/or retrievable services'
Matter couldn't be referred to VO without rejection of books or if AO couldn't prove suppression in
IT : Matter cannot be referred to Valuation Officer under section 142A by Assessing Officer without rejecting books of account
Petitioner couldn't file oppression plea if he had divested himself of his entire shares in responde
CL : Where petitioner had divested himself of his entire shares in respondent-company, he had no locus to file a petition under section 397
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