IT : Payment made by assessee engaged in production and distribution of films to a company, as per agreement for joint production of film between assessee and that company, against services provided by that company would be allowed as business expenditure
Sunday 23 February 2014
Tribunal to consider notional tax effect in case of loss while examining maintainability of revenue'
IT : In case of loss, if notional tax effect is above limit prescribed by CBDT, appeal would be maintainable
No sec. 69 additions as assessee explained variation in value of stock appearing in statement given
IT: Commissioner (Appeals) and Tribunal both having accepted assessee's explanation regarding difference between stock statement submitted to bank and stock shown in balance sheet, no addition could be made under section 69B on account of such difference
Construction of workers quarters and Vastuwall is ineligible for input service credit
Cenvat Credit : Construction services used for construction of workers' quarters and Vastuwall are ineligible for credit; but, those for construction of godown for storage of input/finished goods are eligible for credit prior to 1-4-2011
Gold Import Ban Reins In India's Cad, Neighbours Pay The Price.
The government’s success at bringing down the current account deficit (CAD) have apparently come at a very high cost as far as India’s neighbours are concerned.
A senior official told The Indian Express that customs officials of Sri Lanka, Bangladesh and Pakistan have spoken to their Indian counterparts on the rise in gold smuggling in their countries due to steps taken by India to curb gold imports for reining in CAD. The countries, the official added, have also sought India’s advice on tackling the twin issues of smuggling and CAD.
“There was an informal meeting between customs authorities of India and these countries wherein they sought India’s advice as to how to tackle the smuggling and CAD. With India being able to bring down its CAD successfully, these countries have asked it to share these measures with them,” the official said.
Concerned over the rising CAD, largely due to gold imports, India raised import duty on gold to 10 per cent from Rs 300 per gram in 2012.
It also imposed quantitative restrictions on the metal. As a result, the CAD which shot up to $88 billion or 4.8 per cent of GDP in 2012-13, is estimated to narrow down to $45 billion in the current fiscal.
However, the curbs have led to substantial rise in smuggling, both in India and its neighbours including Pakistan, Sri Lanka and Bangladesh due to porous borders. Smugglers have been routing gold in India through Bangladesh, Sri Lanka, Nepal, and Pakistan among others.
This has led to a surge in import of the yellow metal in these countries.
Since all these countries have had customs duties less than the 10 per cent, smugglers have been reaping benefits of the arbitrage.
While a worried Sri Lanka has imposed import duty of 10 per cent on gold for the first time, Pakistan has temporarily banned gold imports for the second time in six months in an attempt to stem smuggling.
The ban would be for 30 days though exports would not be restricted. Pakistan last banned imports for a month in August last year.
Authorities in Sri Lanka and Bangladesh have been routinely nabbing people suspected of smuggling gold out of the country at airports. Bangladesh has seized gold worth more than 300 kg in the last few months, most of it being routed to India.
Further, apart from gold smuggling, Pakistan is also battling with a widening CAD, which ballooned to over $2 billion in the first seven months of FY14 compared to $441 million in the corresponding period of 2012-13, according to State Bank of Pakistan.
Source : financialexpress.com
Pendency of a civil suit on self-same cause of action, won’t ipso facto make a winding up petition n
CL: Mere pendency of a civil suit on self-same cause of action, would not ipso facto make a winding up petition not maintainable
AO to rework penalty after giving effect to ITAT's order if substantial additions were deleted; case
IT : Where Assessing Officer imposed penalty under section 271(1)(c) before disposal of appeal against assessment order by Tribunal and in appeal Tribunal deleted all additions except one, matter was restored back to Assessing Officer to consider issue of imposition of penalty after giving effect to Tribunal's order
New Price Policy, Low Output Sweeten Prospects For Sugar
Maharashtra and Karnataka have already rationalised sugar-pricing policies. Uttar Pradesh is expected to follow suit. Other states, too, have begun rationalising their policies.
This has renewed foreign investors’ interest in the Indian sugar sector, as things seem to be looking up. The potential of the Indian sugar industry can’t be overstated: there has been significant progress in terms of improvement in sugarcane varieties, ethanol sector and productivity. The new pricing policy has infused competitiveness in the industry.
Kamal Jain of Kamal Jain Trading Services argues that Singapore-based agri-business major Wilmar International’s 27.5 per cent stake buy in Shree Renuka Sugars is a pointer to the fact that better things are in store for the industry. As per the deal, Wilmar will take joint control of the company along with its promoters and help it reduce its huge debt to Rs 2,500 crore.
Industry estimates show India has so far exported about seven to eight lakh tonnes of raw sugar this sugar year. Total exports are projected to be between 1.2 million and 1.4 million tonnes. Sugar mills produce raw sugar only when there are orders, as it has a shelf life of only about two months. Most of the raw sugar is exported, as domestic demand is negligible. As the price of white sugar crashed to Rs 23 a kg (ex-mill) in the domestic market, some millers shifted to raw sugar for better realisations. The ex-mill price of raw sugar at the beginning of the season stood at Rs 24 a kg and mills expected to realise about Rs 28-29/kg after availing the subsidy. With exporters now quoting lesser prices, millers are hesitating to sign new contracts.
Jain said it remains to be seen if India will have enough surplus for exports as sugar output in India, the largest producer after Brazil, may tumble to the lowest in four years after excessive rains in the biggest sugarcane-growing regions cut yields while some farmers diverted crop to make local sweetener. Production will probably drop by 6.4 per cent to 23.5 million tonnes in the sugar year that began on October 1, the smallest since 2009-2010. That’s less than the 25 million tonnes forecast in September by the Indian Sugar Mills Association, which is set to revise the outlook in the next two weeks. Lower output will trim the biggest domestic reserve in five years and reduce surplus for exports, helping cut a global glut and record losses at producers.
Other analysts look at these issues from a different perspective. They say lower domestic output is actually good for prices and it is already affecting price trends. There is a feeling that government subsidy for production of raw sugar will boost export of raw sugar from India.
New deals dried up after the Union cabinet approved subsidy for raw sugar, as global buyers and local exporters quoted low prices. Sugar mills, which expected to get better realisation from exports than domestic sales after the subsidy, are not willing to sign deals at lower prices.
On Thursday (February 20), sugar prices climbed by Rs 56, or 2 per cent, to Rs 2,850 a quintal in futures trading at NCDEX, as participants engaged in speculative trade on a 13 per cent drop in output so far this year. Likewise, the sweetener for delivery in March traded Rs 17, or 0.61 per cent, higher at Rs 2,822 per quintal in 20,050 lots.
Market analysts attributed the significant rise in sugar prices in futures trade to speculative positions created by participants after output fell on delayed crushing. The announcement of Rs 3,333 per tonne subsidy for export of raw sugar is expected to boost overseas sales and help the cash-starved industry to pay arrears to sugarcane farmers.
Souce:- mydigitalfc.com
India's Wheat, Rice And Corn Exports May Fall 29% In 2014-15
India's exports of wheat, rice and corn are expected to drop sharply by 29 per cent to 13.5 million tonnes in the 2014-15 marketing year due to sluggish global prices, according to a USDA report.
The combined shipments of wheat, rice and corn from India are estimated to touch 19 million tonnes in the ongoing 2013-14 marketing year, it said.
The marketing year for wheat runs from April to March; for rice, from October to September and for corn, from November to October.
"Exports of wheat, rice and corn during the 2014-15 marketing year are forecast down from the year prior, due to softening global prices," the US Department of Agriculture (USDA) said in its latest report.
Out of 13.5 million tonnes of cereals, India is expected to ship 8 million tonnes of rice, 3 million tonnes of wheat and 2.5 million tonnes of corn in 2014-15, it said.
According to USDA, wheat exports are forecast to halve to 3 million tonnes in 2014-15, most of which will be private exports and some spillover of government wheat from the existing current 2 million tonnes quota announced in August 2013.
"With international prices expected to remain depressed during the upcoming marketing year, it will be very difficult for the government to export wheat at USD 260 per tonne floor price," the report said.
On rice exports, the USDA said it has forecast it to be lower at 8 million tonnes (both Basmati and non-Basmati) for 2014-15 marketing year, as against 10 million tonnes this year, on expected weak international prices and expected lower import demand from Iran.
Trade sources report that exports of long grain Basmati rice to Iran have slowed since October 2013 following the withdrawal of Iran sanctions by the US and five other nations, it added.
On corn exports, the USDA said the shipments are likely to drop further to 2.5 million tonnes in 2014-15 from 3 million tonnes this year, on expected strong domestic demand.
"Market sources report that Indian corn is barely competitive in the global market due to weak international prices," it said.
Typically Indian corn is discounted for quality vis-a-vis other origins and export volumes largely depend on the price competitiveness of Indian corn in the global market, it said.
Any significant improvement in international corn prices or weakening of the value of Indian rupee may improve the export prospects, it added.
Source:- articles.economictimes.indiatimes.com
Cotton Exports Pick Up On Rupee Stability
Cotton exports are picking up following exchange-rate stability. China, with buffer stocks, has started increasing imports from India. Demand from Pakistan, Bangladesh, Indonesia and Vietnam has also increased.
So far this cotton year (October-September) six million bales (one is 170 kg) have been shipped and one million are expected to be in a month. Exports are expected to reach 10 million this cotton year. The Cotton Advisory Board (CAB) had projected nine million bales for this cotton year. A year ago, these were 10 million. In cotton year 2011-12, these were 13 million.
Though China in the recent past had decided to increase cotton-yarn imports instead of cotton’s, it has resumed buying to a certain extent from India.
Rupee in one month has stabilised around 62 a dollar, while cotton prices have also remained stable, though elevated, at Rs 43,000 a candy for the benchmark variety Shankar-6, during the period.
“Though China in the last couple of months had started to decrease cotton imports, stability in the rupee revived its purchases from India. Pakistan and Bangladesh have also started to import from India in a big way,” said M B Lal, a Mumbai-based cotton exporter.
Buying from our neighbours have picked up in a big way and also their need for cotton is very high which has caused exports of cotton to pick up.
China is expected to buy small quantities of cotton in the coming months as well and this will also help push exports, as China is the biggest importer of the Indian cotton. “Due to heavy demand from neighbours, this year exports are likely to pick up,” said S P Oswal, chairman of Vardhman Textiles.
Source:- business-standard.com
Coal, Coke, Petroleum Products Eligible For Green Cess
Coal, coke and petroleum products which are transported from Goa have now come under the ambit of green cess, after the state government notified the Goa Cess on Products and Substances Causing Pollution (Green Cess) Act, 2013 (Goa Act 15 of 2013). The state government is expected to collect around 200 crore from green cess.
The commercial tax department will collect 0.5% green cess on products, including petrol, diesel, asphalts, bitumen and lubricants, and 2% on coal, coke and similar substances.
Government sources said that maximum revenue will be collected on coal and coke. Goa handled around 12 million tonnes of coal and coke which were transported to Karnataka.
Sources argued that the products which have now been brought under green cess, were earlier not beneficial to Goa, as the state was a transit point for the products and they only caused pollution here.
Levinson Martins, member secretary of the department of science, technology and environment, in a notification said that the products which will be eligible for green cess are also aviation spirit, aviation turbine fuel, high speed diesel oil (HSD), light diesel oil (LDO), motor spirit which is commonly known as petrol, including ethanol blended, petrol, furnace oil, low sulphur heavy stock, grease, furnace oil from bond sold to foreign going vessels, high speed diesel from bond sold to foreign going vessels, paraffin wax of all grades and standards other than food grade standard including standard wax and match wax, slack wax, solvent oil other than organic solvent oil and any petroleum products other than the above.
Source:- timesofindia.indiatimes.com
Indian Printing Packaging And Allied Machinery Makers' Body To Export Printing Packaging Machinery To Saudi Arabia
Indian Printing Packaging and Allied Machinery Manufacturers Association (IPAMA) will export printing-packaging machinery to Saudi Arabia. "There had been a talk with Saudi Arabian printing-packaging businessmen and they are quite influenced by Indian machinery and its prices" said Head of IPAMA and a resident of Amritsar, KS Khurana while talking to TOI on Sunday after his return from an exhibition at Print Pack Arabia-2014 organized in Saudi Arabia.
Khurana who was accompanied by Tilak Raj Mahajan, the associate head of IPAMA said the Indian Ambassador in Saudi Arabia, Hamid Ali Rao had especially invited them to this Print Pack. Indian embassy organized a special meeting of Saudi Arabian businessmen wherein the head and associate head of IPAMA gave a detailed information about the printing packaging machinery he informed.
He said there were tremendous opportunities for business in Saudi Arabia. "There is no unit or management in Saudi Arabia for printing-packaging machinery" he said adding that currently, Saudi Arabia was importing printing-packaging machinery from UK, USA and Germany and this machinery was 60 to 70 percent expensive than Indian machinery. He said that on one hand Indian machinery was less expensive than that of these countries, on the other hand, it was the best in terms of quality. He informed that Amritsar was the hub of Printing-Packaging and binding machinery and supplies to more than 50% of the printing & packaging machinery demand of the country.
Source:- timesofindia.indiatimes.com
Rupee Down 3 Paise/Dollar In Early Trade
The rupee fell marginally by 3 paise to 62.15 against the US dollar in early trade today at the Interbank Foreign Exchange market due to increased demand for the US currency from importers.
Forex dealers said besides dollar's gains against other currencies overseas, increased demand from importers for the American currency and a lower opening in the domestic equity market also put pressure on the rupee.
The rupee had gained 11 paise to close at 62.12 against the US dollar in the previous session on Friday on selling of the American currency by banks and exporters amid foreign capital inflows fuelling a rebound in shares.
Meanwhile, the BSE benchmark Sensex fell by 62.09 points, or 0.30%, to 20,638.66 in early trade today.
Source:- http://ift.tt/15HW3lL
Case remanded as DRP failed to examine assessee's stand on PLI adjustment and choice of comparable
IT/ILT : Where DRP failed to consider assessee's contention on issue of adjustment of low capacity utilization, determination of PLI and selection of comparables, matter required fresh adjudication
Revisional authority can't go beyond Form F declaration in case of stock transfer except in instance
CST/VAT : If it is not an inter-State sale provided through a legal fiction under section 6A, then it amounts to transfer of stock and such a finding cannot be appealed against or reopened on premise that there was a mere error of judgment or change in opinion except in limited cases of fraud, mis-representation, etc.
CCI approves of combination of power cos. As their activities complement each other and don’t effect
Competition Act: Where two power generation companies were to be merged and their activities and products would be complementary to each other in setting up power plants and proposed combination was not likely to have an appreciable adverse effect on competition in India, same was to be approved
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