IT : Where assessee was partner in certain firms and he had not shown any notional income from a residential flat owned by him claiming that flat was used by employees of a firm, income from flat was chargeable in hands of assessee
Tuesday, 4 February 2014
Deletion of additions for unexplained jewellery on admission of evidence need not be interfered with
IT: Deletion of a part of addition made in respect of gold found during search on basis of concurrent finding of fact given by both appellate authorities on appreciation of evidence need not be interfered with
Repair onboard of marine vessel won't be deemed as export if vessel was in territorial waters of Ind
Service Tax : Services by way of repair and maintenance of electronic equipments onboard marine vessels while they are anchored in territorial waters of India cannot be regarded as 'exported', as services are performed in India
Depreciation allowed on composite amount paid for IPR and non-compete fees as it wasn’t possible to
IT : Where assessee carrying on business in software development, etc. entered into an agreement with one 'P' for hiving off and transfer of software development and training divisions from 'P' and paid certain amount to 'P' towards acquisition of intellectual property rights and non compete fee, since agreement between parties was a composite agreement, assessee was entitled to depreciation on intellectual property rights as well as on non compete fee
Assessment of trust under Chapter IV and not chapter III would deny all available benefit; assessmen
IT : Where assessment was completed under Chapter IV instead of Chapter III in case of a trust duly registered under section 12A without pointing out any defect in books of assessee, assessment order passed by Assessing Officer was without any merit
Newmont Upbeat Govt Will Resolve Export Duty Problem
PT Newmont Nusa Tenggara (NNT) is hopeful its talks with the government over a controversial export duty will bear fruit although authorities keep saying there is no room for compromise.
Martiono Hadianto, the president director of NNT — the Indonesian unit of US-based Newmont Mining Corporation — indicated Tuesday that an agreement would be reached over the matter and that the company would not go ahead with its plan to seek international arbitration.
“We keep trying to discuss this with the government. I’m optimistic that we can work it out,” Martiono told the press.Beginning Jan. 12, the government formally banned the export of unprocessed mineral ore in line with the 2009 Mining Law. As most mining companies have not built smelters, as required by the law, they have been given until the end of 2016 to continue exporting semi-finished mineral products. The government, however, has attached strings: Companies must obtain export permits and pay a progressive export duty of between 25 and 60 percent during the three-year period.
Mining companies strongly oppose the export duty because the rates are high, exceeding their average profit margins. For some companies, the duty also violates their contracts of work (CoW).CoW holders, such as Newmont and PT Freeport Indonesia — subsidiary of Freeport-McMoRan Copper & Gold Inc. — have argued the export duties violated their contracts.Under the CoW, the contract-holder shall not be subject to taxes, duties or fees by the government except those already stipulated in their agreements.
Finance Minister Chatib Basri said separately that the export duties were aimed at forcing miners to build smelters in the country, as mandated in the Mining Law.“The key point is whether there is a smelter or not. If a company has already built a smelter and has conducted the purification process [to produce metal], it won’t be required to pay an export duty,” Chatib said.
He added that mining companies would also have to prove they had mustered sufficient investment capital as evidence of intent to process minerals domestically.NNT has said that because of the duty it had no plans to export its copper concentrate until later this quarter and would take the time to talk to the government to resolve the issue.
Freeport-McMoRan’s chief executive officer has made marathon visits to a number of ministries to discuss the new regulation, but so far the government has given no indication that it would ease the export duty for the mining giant.Jakarta-based energy sector think tank Reforminer Institute executive director Pri Agung Rakhmanto said the 2009 Mining Law had drawn multiple interpretations because the issuance of technical regulations for the implementation of the export ban had come too late.
“The government has the right to issue any regulation. On the other side, contractors have the right to hold on to agreed contracts,” he said.“The regulations were issued with good intentions, however, the government lacks coordination so there is no certainty. For example, the export duty was not derived from the Mining Law, but was issued by the Finance Ministry.”
He said any exemption to export duties given to CoW holders would discriminate against non-CoW holders and therefore the fairest solution would be arbitration.“Arbitration is a final option. It is also positive because it will clear up how the game is actually played,” he added.
Source:- thejakartapost.com
Garment Exporters Worry Over Costlier Yarn
The Textiles Ministry expects exporters to achieve a target of $43 billion this fiscal. But, fundamental issues such as the rise in costs of raw cotton, freight charges, and labour puts it a little beyond reach.
The recent hike in cotton yarn prices by mills is a roadblock to the revival in garment and knitwear exports, said A. Sakthivel, President, Tirupur Exporters’ Association, in a letter sent on Monday to the Textiles Minister Kavuru Sambasiva Rao.
He protested the ? 10/kg increase mills have effected over the last 10 days, raising bottom-line concerns for clothing manufacturers at a time Indian textile units have just begun to benefit from European and American economic recovery.
“When we have been taking efforts to reach the export targets fixed by the Ministry of Textiles, the increase in yarn prices have come as a blow. It would be difficult to reach the set level in this year,” he said in the letter.
S. Sakthivel, Executive Secretary, TEA, told Business Line the Ministry has set a stiff export target against $34 billion achieved last fiscal. The spinning mills, he said, are a tad slow in reducing yarn prices after rates of raw cotton decline.
However, the mills, which supply cotton yarn for the manufacture of fabrics and garments, tell a different story: the input costs for these factories have increased by ?30 a kg in the last six months. One of the chief contributors to this inflation is the increase in raw cotton prices despite a record output forecast of 375 lakh bales for 2013-14.
K. Selvaraju, Secretary-General, The Southern India Mills’ Association, says the on-the-ground output this year could fall short of that prediction by 15 lakh bales. On top of that, export of raw cotton is seeing swift registration despite tepid demand from China and other buying nations.
Over 65 lakh bales have been marked for export this season, and the total shipments may touch 90 lakh bales this year. Since consumption by Indian mills is pegged at 290 lakh bales, exports above 70 lakh bales will mean short supply for domestic mills, and as a result – price inflation. “Add to this the holding back of stock by farmers for want of a better price. This is obviously bound to create a pressure on prices.” The incremental hike in diesel prices and rising labour costs are not on the credit side for mills grappling with working capital issues.
Lorry freight charges have risen by ?7,000 for a consignment of 100 bales (17,000 kg). Tamil Nadu, which produces about 70 per cent of the cotton yarn in the country, has a raw cotton production capacity of only 5 lakh bales.
To meet its targets, it transports, chiefly from Gujarat, about 115 lakh bales each year.Around 2.09 bales make a candy of cotton. “With the price of good quality cotton from Gujarat ruling at Rs. 46,000 a candy, how can yarn prices be kept down,” questions Selvaraju.
Source:- thehindubusinessline.com
Conference On Harbour And Ocean Engineering
The 5th Indian National Conference on Harbour and Ocean Engineering will be held at the National Institute Of Oceanography, Dona Paula, from February 5 to 7. The inaugural session at 10am on February 5 will be chaired by NIO director S W A Naqvi and scientist Ehrlich Desa.
Kosambi festival of ideas: The 7th D D Kosambi Festival of Ideas, organized by the directorate of art and culture, will be held till February 8 at Kala Academy, Campal. This year, the speakers include Vandana Shiva, Indian environmental activist and anti-globalization author; Jayant Narlikar, Indian astrophysicist and a proponent of steady state cosmology; and Kishore Mahbubani, a Singapore-based academician and former Singaporean diplomat and currently professor in the Practice of Public Policy and Dean of the Lee Kuan Yew School of Public Policy at the National University of Singapore.
Photography exhibition : In collaboration with the directorate of art and culture, the parish priest of Holy Family Church, Alto-Porvorim, Fr Tomas Lobo will be holding a photography exhibition titled 'Eco Yatra' at the art gallery, directorate of art and culture until February 6. The exhibition will continue at the venue from 10.30am to 7.30pm.
Sufi music workshop: Artistes Priyanka Patel and Anuraag Dhoundeyal of the 'Looking Glass' initiative will conduct a sufi music workshop at Literati, Calangute, on February 12 at 4pm. The two and a half hour workshop is open to people aged 18 and above. Registration fee is Rs 1,000 and prior registration can be doe.
Bookworm's Jumble Sale: Bookworm,a library based organisation is conducting its annual fund raising Jumble Sale. The funds raised will support Bookworm's 'Library in Schools Program' ( LiS) and the 'Mobile Outreach Program' ( MOP). The Jumble Sale is a massive drive to raise funds from the community to help spread a love for reading. The Jumble Sale will be held at the Indoor Stadium Parking Lot ( Behind Fab India) Campal, Panaji on the February 9, from 9am to 6pm. For further details contact Bookworm 0832 2451233.
Workshop on clay play for kids: Intro Creative Clay Studio at Gallery Gitanjali, Panaji, will organize an introduction workshop to clay play with Verodina de Sousa for children aged 6 years and above. The workshop will be held from February 8 to March 1 every Saturday between 5.30pm and 6.30pm. Sousa is a sculptor trained in clay at the teachers training center in Mumbai after graduating from the Goa College of Art. Her works include the fisherwoman traffic island at Panaji and a 4m tall figure of the risen Christ at the Bambolim church. The Creative Clay Workshop will have four sessions involving the following clay projects: an elephant as a lamp, bird's nest serving dish, a mask as a wall hanging and a plaque. Limited seats available. For registration contact at 2423331 / 8806035195 or email at gallerygitanjali@gmail.com.' Bookgallerygitanjali@gmail.com
The Hungry Mind presents 'Book in a Bag' where children from age 2 to 8 cajoin a session of fun and story telling on February 5 at Pajifond-Margao from 5.30pm to 6.30 pm. Call Andrea Menezes Crasto on 9923103514 to confirm attendance.
Discourse: Fr Abraham SJ, a Jesuit priest and counsellor, will deliver a discourse on 'Ego's Death Leads to Happier Life' on February 6 at 6 pm at Jesuit House, Panjim. It is free and open to all. Fr Abraham is available for counselling atJesuit House, Panjim. Contact 9850123667/2223495 for details.
Seminar on textile laundering: Goa state museum, in collaboration with Goa college of home science, is organizing a one-day state level seminar 'Selection and Laundering of Silk Textiles' on February 17 from 9.30am to 4.30pm at Goa state museum auditorium. The seminar is open to entrepreneurs,professionals, fashion designers and clothing conscious home makers. Limited seats are available.For registration and further queries contact Goa College of Home Science office on 0832 2227603 or 2425254.The last date for registering is February 12. Spot entries will not be accepted.
Monte music festival: The 12th Monte Music Festival 2014, will be held from February 7 to 9 at Chapel of Our Lady of the Mount, Old Goa. After the inaugural at 5.45pm, the festival will feature an Indian bamboo flute recital by Shantala Subramanyam (Chennai) in Courtyard-1. Later at 7.30pm, a vocal recital by soprano Lourdes Martins (Italy) will be held inside the chapel. The second day of the festival features a Bharatnatyam recital by Sharanya Chandran (Delhi) at 6pm in Courtyard-1, Goan mando by Goenchim Kirnnam and Porvorechim Sobit Fullam (Goa) at 7pm in Courtyard-2, and Bangalore's Cecilian choir inside the chapel at 8pm. The final day of the festival will kick off with a violin recital by Anupriya Deotale (Delhi) at 6pm in Courtyard-1, and a Portuguese guitar recital by Franz Schubert Cotta and Siddharth Cotta in Courtyard-2 at 7pm. The last performance of the festival will be the Goa University choir, which will sing inside the chapel at 8pm. No parking will be allowed at the venue.
Source:- timesofindia.indiatimes.com
Mills Rule Out Yarn Price Revision
Close on the heels of garment units in Tirupur urging the Union textile minister to intervene in controlling the rise in yarn prices, spinning mills in the region have ruled out any reduction in prices.
Cotton prices, which were ruling at 47,500 (spot price per candy of 355kg) during September 2013, came down to 39,000 in December. But they have again increased to 43,000 now, mills said. Prices of 40s combed hosiery yarn for the corresponding months stood at 260 per kg, 241 and 256 respectively.
"The cotton price rise alone would have an impact of 25 per kg on yarn, which has been only partly passed on to downstream sectors, which is unavoidable to sustain viability," said T Rajkumar , chairman, Southern India Mills' Association.
Garment exporters said that mills had increased yarn prices by 5 per kg for all counts twice in the last 10 days. "This kind of pricing strategy of mills has put the garment sector in jeopardy," said A Sakthivel, president, Tirupur Exporters' Association in a letter to union textiles minister K Sambasiva Rao.
Stating that export units are getting orders after a prolonged demand contraction in the EU market amidst a gradual recovery in the US market, he said that any deviation in planning for overseas orders would have a cascading effect on stakeholders in the garment industry.
"After getting rejuvenation through the arrival of orders, the increase in yarn prices have come as a blow on the knitwear sector and it would be difficult to reach the set level (for exports) this year," Sakthivel said.
Source:- timesofindia.indiatimes.com
Mexico Exports First Shipment Of Extra Light Olmeca Crude To India
Mexico's national oil company Pemex will export its first shipment of extra light Olmeca crude to India later this month, the company said on Tuesday, as it seeks to expand markets beyond the neighboring United States.
Pemex's commercial arm P.M.I. Comercio Internacional will deliver a shipment of 500,000 barrels of Olmeca in addition to 1.5 million barrels of heavy Maya crude oil to the Asian nation during the second half of February, a company spokesperson told Reuters.
Olmeca is Mexico's most valuable form of crude. The vast majority of Mexican output is heavier crude which is more costly to refine.
Current average Mexican oil exports to India are around 100,000 bpd, which up until now has only comprised of Maya.The exports are part of an ongoing plan by Pemex to diversify its export markets away from the United States, which is importing less Mexican crude as its own domestic production surges.
Last year, about 70 percent of Mexico's crude exports were sent to the United States, but export volumes to the U.S. are down by half since reaching a peak of 1.6 million barrels per day (bpd) in 2004, according to data from Mexico's national statistics agency INEGI.
Mexico's crude oil production, which currently stands at 2.5 million bpd, is down by a quarter over the past decade.Pemex has said it sees both India and China as future growth markets for its crude.
A sweeping energy reform signed into law in December promises to boost output by luring significant new streams of foreign investment into Mexico's oil industry over the next several years.So-called secondary laws needed to implement the reform are expected by April.
(Reporting by David Alire Garcia: Editing by Diane Craft).This story has not been edited by Firstpost staff and is generated by auto-feed.
Source:- firstpost.com
Indian Rupee Gains Against Us Dollar As Stocks Rebound, Demand Strong At Spectrum Auction
The Indian rupee recovered against the US dollar from early losses on Tuesday to end the session with marginal gains as the government's mobile spectrum auction attracted strong demand, including from bidders such as Vodafone, offsetting concerns about global risk aversion.
The government received $7 billion worth of total bids on Monday, the first day of the auction and looked set to top its minimum target of raising $1.8 billion initially.
Foreign companies like Vodafone and Telenor would have to convert their dollars to rupees if they win licences, with the first tranche needing to be paid within 10 days of allocation.
The rupee also benefited as Asian currencies firmed up later in the session on Tuesday as the region is seen better placed than other emerging markets to face the fallout of any global risk aversion due to the U.S. Federal Reserve's stimulus tapering and concerns of a slowdown in China.
"There have been rumours of fund flows related to the mobile spectrum auction over the last two days. The recovery in stocks also helped the rupee," said Uday Bhatt, a senior manager at UCO Bank.
He expects the rupee to trade in a range of 62-63.50 to the dollar in the near term.
The partially convertible rupee closed at 62.5250/5350 per dollar compared with Monday's 62.56/57, after initially falling to a session low of 62.81.
Dealers spotted healthy dollar selling by foreign banks, which they attributed to inflows related to the spectrum sale.
Meanwhile, shares rebounded from four-month lows, also helping the rupee. India's benchmark BSE index ended flat on Tuesday after declining as much as 1.2 percent.
Concerns about selling by foreign investors have clouded the outlook for Indian markets. Overseas funds sold a net $1.7 billion worth of shares and debt over seven sessions to Monday, according to preliminary exchange and regulatory data.
Still, India is seen as less vulnerable than last year when similar fears of a Fed tapering sent the rupee crashing to a record low of 68.85 to the dollar on Aug. 28.In the offshore non-deliverable forwards, the one-month contract was at 62.95, while the three-month was at 63.84
Source:- financialexpress.com
Assessment order to be quashed if matter not referred to TPO even when international transactions ex
IT/ILT: Where aggregate value of international transactions entered into by assessee exceeded Rs. 5 crore, still Assessing Officer did not refer matter to TPO, Commissioner was justified in setting aside said assessment order
Indian resident held guilty on confession that he received and made payment on behalf of NR in contr
FERA : Where certain amount was recovered and seized by Enforcement Officers from office and residence of appellant who confessed that he was indulged in receiving and making payment in India on behalf of a Singapore resident without any exemption from RBI, appellant was rightly held guilty of provisions of section 9(1)(b) and 9(1)(d)
SEBI paves way for issuer to make IPOs without any grading mandate
SEBI/INDIAN ACTS & RULES : SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2014 - Amendment in Regulation 26, Schedule VIII & Schedule XIII
No ST on services provided by authorized person in relation to forward contracts during 10-09-2014 t
GST : Section 83 of The Finance Act, 1994 Read With Section 11C of The Central Excise Act, 1944 - Power not to Recover Duty of Excise not Levied or Short-Levied As A Result of General Practice - Period From 10-9-2004 to 30-6-2012 - Services Provided by an Authorised Person or Sub-Broker to The Member of A Recognized Association or A Registered Association, In Relation to A Forward Contract, Exempted From Service Tax
Laying of pipelines for irrigation work isn't liable to service-tax
Service Tax : Activity of laying of pipelines falls under 'works contract service' and, on account of exclusion of laying of pipelines for irrigation work from taxable services, said activity is not liable service tax
Notice of penalty issued not in course of survey proceedings, but after its closure, is invalid
IT : Where penalty notice had been issued not in course of survey proceedings, but after its closure, assessee could not be prosecuted qua concealment of income
Time-limit to complete block assessment counted from date of second search which is continuation of
IT: Where there is more than one authorisation, starting point of limitation is to be computed from last of authorisation which as per Explanation 2 to sub-section (2) of section 158BE is deemed to have been executed on conclusion of search as recorded in last panchnama drawn
CCI approves of combination of two banks as resultant business would have insignificant impact on co
Competition Act : Proposed combination was to be approved when presence of acquirer in mortgage and banking business in India after proposed combination was insignificant and same did not have any appreciable adverse effect on competition
Spares supplied by vehicle manufacturer were not includible in value of authorized service station s
Service Tax : Cost of spare parts supplied by vehicle manufacturer by way of credit notes is not, prima facie, includible in value of authorised service station's services in view of Notification No. 12/2003-ST
Additions made in substantive assessment couldn't be added back during protective assessment
IT: Where certain amount of premium arising on sale of land was added to income of AOP consisting of nine persons including assessee in substantive assessment, said amount could not be added to assessee's individual income again in course of protective assessment
Amortization of premium paid in excess of face value of ‘Held to Maturity’ investment allowable as r
IT: Where premium paid in excess of face value of investments classified under HTM category had been amortized over period till maturity, same was allowable as 'revenue expenditure'
Advisory fee earned by investment banker is business income even if he can’t substantiate sum incurr
IT : Management and advisory fee received by assessee engaged in dealing in shares, investments, loan, finance and related activities, is business income of assessee, irrespective of fact as to whether assessee has not substantiated sum incurred to earn same
Terminal handling charges paid for export of goods were eligible for ST refund
Service Tax : Terminal handling charges paid in respect of export of goods are eligible for refund/exemption under notification No. 41/2007-ST
Liability to deduct tax under sec. 194C would not arise in case of purchase of goods and equipment
IT : In a case of purchase of goods and equipment, provisions of section 194C would not be attracted
No penalty on director under FERA if he wasn't looking after routine matters of co., including impug
FERA: No penalty could be imposed on director of company, which was held guilty for contravention of provisions of sections 8(3) & 8(4) for not producing evidence for import of goods against remittance of certain amount, in absence of any evidence to prove that said director was looking after day-to-day affairs of company including transaction in question
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