Tuesday, 25 February 2014

Exports subjected to minimum export price or export duty are to be considered for fixing FMS entitle

GST : Section 93 of The Finance Act, 1994 - Exemptions - Exemption to Services Provided to Exporters Against Debit to Focus Market Scheme Duty Credit Scrip (FMS Scrip) - Amendment in Notification No.6/2013-ST, Dated 18-4-2013


No concealment penalty for a disallowed claim if income of assessee was otherwise exempt from tax

IT : Where income to be assessed in hands of assessee was itself exempt, levy of penalty was not warranted


Dismissal of appeal be ITAT for non-prosecution of assessee shall be subject to revision under sec.

IT : Where Tribunal dismisses assessee's appeal for non-prosecution, it constitutes an error apparent on face of record which can be rectified under section 254(2), however, in such a situation, prescribed period of limitation to file an application seeking rectification of order within four years from date of passing order would apply


In case of stock transfer no penalty leviable under Rajasthan Sales Tax Act if form ST-18A was found

CST & VAT : There was no requirement of carrying declaration form No. ST-18A in case of stock transfer, branch transfer/depot transfer and SOS transfer; therefore, penalty levied under Rajasthan Sales Tax Act set aside


CBDT's order to admit a belated claim is an administrative order under sec. 119 which isn't appealab

IT: Order passed by Commissioner under section 119(2)(b) is an administrative order against which appeal before Tribunal under section 253 will not be maintainable


India Essar's Oil Imports From Iran Jump Sharply

Essar Oil, a key buyer of Iranian oil, in January sharply raised imports from the Islamic state and also became the first Indian refiner to ship in the Brazilian heavy grade Polvo, tanker arrival data showed.


India's oil imports from Iran more than doubled in January from a month earlier after sanctions on Tehran were eased due to an interim deal on its nuclear programme.


Essar received 141,900 barrels per day (bpd) of oil from Iran last month, up from 54,200 bpd in December, according to the data obtained by Reuters. Shipments last month were about 31 percent higher than a year ago.


Essar officials declined to comment.


During the first 10 months of the fiscal year ending March 31, Essar imported 91,500 bpd oil, a decline of about 6 percent from the same period the year before, the data showed.


Essar purchased Polvo from Brazil as it has been testing new heavy grades to improve refining margins.


In the December quarter, Essar met as much as 98 percent of its oil needs through heavy and ultra heavy grades, it said in a statement earlier this month.


Essar's total crude imports in January rose 81.5 percent from a low base in December, when it drew from inventory and cut purchases.Following are details of Essar's crude and condensate imports in January, according to the data. Volumes are in 1,000 bpd.


Source:- uk.reuters.com





Rice Basmati Declines On Subdued Demand

Rice basmati prices declined by Rs 100 per quintal on the wholesale grains market today owing to subdued demand against adequate supplies.


However, other grains after moving in a narrow range in limited deals and settled around previous levels.


Traders said subdued demand against adequate supplies from producing regions mainly kept pressure on rice basmati.


In the national capital, rice basmati common and Pusa-1121 variety eased by Rs 100 each to Rs 8,200-8,900 and Rs 7,400-9,000 per quintal respectively.


The following were today's quotations per quintal:


Wheat MP (deshi) 2,070-2,270, Wheat dara (for mills) 1,625-1,630, Chakki atta (delivery) 1,630-1,635 Atta Rajdhani (10 kg) 220, Shakti bhog (10 kg) 220, Roller flour mill 870-890 (50 kg), Maida 950-970 (50 kg) and Sooji 990-1,020 (50kg).


Basmati rice (Lal Quila) 10,400, Shri Lal Mahal 10,000, Super Basmati Rice, 9,500, Basmati common new 8,200-8,900, Rice Pusa-(1121) new 7,400-9,000, Permal raw 2,050-2,150, Permal wand 2,200-2,225, Sela 2,800-2,825 and Rice IR-8- 1,825-1,850, Bajra 1,245-1,250, Jowar yellow 1,470-1,500, white 2,275-2,300, Maize 1,400-1,405, Barley 1,395-1,400, Rajasthan 1,080-1,090.


Source:- business-standard.com





Interest on refund is allowable on all tax payments and not only in case of tax paid on demand

IT : Interest on refund is allowable on all kinds of tax payment; it is not confined only to tax paid on demand


Proposal Would Expand Eligibility For Service Tax Credit

Organizations that provide technical education services would be eligible for $4.1M pool.There was no dissent voiced Tuesday for a legislative proposal to extend eligibility for a community service tax credit program to organizations that provide youth technical education training and apprenticeships.


State law currently allows individuals and businesses to claim a tax credit for donating to approved community service non-profits. Senate Bill 295 would add technical education organizations to that list.


“In my mind one of the most important things we can do for our young people is get them technical training and teach them the value of entrepreneurship," said Sen. Les Donovan, R-Wichita, chairman of the Senate Assessment and Taxation Committee.


Donovan said the bill has no cost to the state because the community service tax credit pool is capped at $4.13 million.


He asked Chris Harris from the Kansas Department of Commerce how much in demand that money is and Harris said the department receives about $16 million worth of applications in recent years.


Donovan said the technical education groups carved in would have to compete with those already eligible for the dollars.“You just have to kind of get in line and first-come, first-serve is the way it works,” Donovan said.


Harris said his department is for the bill, adding that he believes the projects it has funded such as improvements to critical access hospitals and shelters, have returned $1.44 to their communities for every $1 spent.“The tax credit has been very effective for non-profits across the state,” Harris said.


Source:- cjonline.com





IT : Interest on refund is allowable on all kinds of tax payment; it is not confined only to tax pai

IT : Interest on refund is allowable on all kinds of tax payment; it is not confined only to tax paid on demand


Jsw Increases Steel Prices By Rs 500 A Tonne

JSW Steel, India's biggest private sector steel producer, has decided to increase steel rates yet again.This time the quantum of increase has been kept between Rs 500 and Rs 750 per tonne for both flat and long products and will be effective from March 1. This is in contrast to the first two hikes of Rs 1,500 per tonne in January and Rs 1,250 per tonne in February. Other companies too are expected to follow suit once JSW increases the price.


“If we see the April-May 2012 rates, the price of flat steel today is at that level but the price of long steel is still less by Rs 3,500 per tonne. However, in this period, the input costs have gone up and there is a scope to increase the prices,” said JSW Steel marketing and commercial director Jayant Acharya.


He said in spite of increase in prices by almost Rs 3,000 per tonne since January, India is still lagging its peers in the international market by almost $200 per tonne, which also justifies a hike in the price. The import equivalent of Europe's hot rolled coil is at $625 per tonne and the United States is over $700 per tonne. In China, the important equivalent stands at around $570 per tonne.


However, analysts term it as a “market testing” tactic of JSW as the year is coming to a close and all steel companies would like to achieve their targets. “Considering current demand scenario in India and the emerging trends of a downward correction in international steel prices, any price hike in India will not be sustainable,” said an analyst with a domestic brokerage.


He said JSW would “test the waters” to see if a price hike is possible as internationally prices are still high compared with the domestic market, although they are expected to come down slowly.


“Steel mills are optimistic of another round of price increases in March 2014, though we are not sure if such increases will be accepted by the markets. We expect softening in domestic steel prices in the course of next three months,” said analysts with domestic.


Source:- financialexpress.com





ITAT sets aside order of TPO as it made huge additions in rectification proceedings without assignin

IT/ILT : Where in transfer pricing proceedings, TPO computed working capital adjustment by taking figure of trade receivables at 'nil' which was subsequently enhanced to a very high positive figure in rectification proceedings without assigning any reason, said rectification order of TPO was to be set aside and matter was to be remanded back for disposal afresh


Depart. to consider period-wise price indicated in contract to fix valuation of goods under Excise,

Excise & Customs : Where a single contract fixes separate prices for separate time-periods, those separate prices would be taken into account for valuation purposes during those separate time-periods


Allotment of fresh shares to petitioner in breach of family settlement order was void

CL: Where consent order passed in terms of memorandum of family settlement contemplated achieving object of equality of shares to each party by inter se transfer of shares, fresh allotment of equity shares to themselves by petitioners in board meeting, being in blatant violation of MFS was illegal, and did not give to petitioners status of a member of company competent to maintain petition under section 397 and, therefore, proper remedy available to petitioner would be to seek enforcement of con


Either annual or quarterly turnover is relevant for distribution of credit by ISD on pro-rata basis

GST : Cenvat Credit (Third Amendment) Rules, 2014 - Amendment in Rule 7


Gold Price Holds Near Four-Month High On China Growth, Ukraine Worries

Gold ticked lower on Tuesday but held near its strongest level in four months, underpinned by concerns about economic growth in China and nervousness over Ukraine after acting President Oleksander Turchinov warned that his country was close to default.


An increase in holdings on bullion-backed exchange-traded funds also could also reflect renewed interest from investors, although bullion will have to crack key technical resistance levels before it can move higher.


Gold eased 0.28 percent to USD 1,332.80 an ounce by 0322 GMT after rising as high as USD 1,338.60 on Monday, its strongest since late October. Gold has risen more than 10 percent this year.


"I think we are now pushing up against some pretty key technical barriers around USD 1,340 and up then around USD 1,350 as well. I think it`s going to be hard to break given Chinese exchange premiums are very low now," said Victor Thianpiriya, an analyst with ANZ in Singapore.


"Having said that, if we get continued ructions out of Ukraine, I think that`s one of the key things that can support gold and the market may continue to rally on safe-haven demand."


Premiums for 99.99 percent purity gold on the Shanghai Gold Exchange over cash gold was around 50 U.S. cents a ounce to USD 1 on Tuesday, down from a high around USD 11 last week.


U.S. gold was USD 1,333.00 an ounce, down 0.37 percent. It jumped to a four-month high of USD 1,339.20 on Monday.


Ukraine`s fugitive president was indicted for "mass murder" on Monday over the shooting of demonstrators, as new leaders in Kiev sought urgent Western aid to make up for a loss of funding from Russia, which is angry at the overthrow of its ally.


Gold is often seen as a safe haven in times of political and economic turmoil


SPDR Gold Trust, the world`s largest gold-backed exchange-traded fund, said its holdings rose 0.41 percent to 801.61 tonnes on Monday from 798.31 tonnes on Friday.


In the physical sector, Indian and Indonesian buyers purchased small amounts of gold bars, keeping premiums against the spot London prices steady at USD 1.20 to USD 1.50 an ounce in Singapore.


Gold demand in India is expected to be robust in 2014 and is likely to lead to increased smuggling so long as curbs on bullion imports remain, the World Gold Council.


"We are seeing some buying, and there are purchases from India. Other clients are still buying some quantity, about 20 to 30 kilos each time," said a dealer in Singapore. "Thailand is quiet because of the political situation there. The market has died down a lot."


Thai Prime Minister Yingluck Shinawatra, the target of anti-government protests in Bangkok, has been staying outside the capital and on Monday ruled out resigning despite a series of deadly attacks heaping pressure on her administration.


Source:- zeenews.india.com





Ndia Essar's Oil Imports From Iran Jump Sharply

Essar Oil, a key buyer of Iranian oil, in January sharply raised imports from the Islamic state and also became the first Indian refiner to ship in the Brazilian heavy grade Polvo, tanker arrival data showed.


India's oil imports from Iran more than doubled in January from a month earlier after sanctions on Tehran were eased due to an interim deal on its nuclear programme.


Essar received 141,900 barrels per day (bpd) of oil from Iran last month, up from 54,200 bpd in December, according to the data obtained by Reuters. Shipments last month were about 31 percent higher than a year ago.


Essar officials declined to comment.


During the first 10 months of the fiscal year ending March 31, Essar imported 91,500 bpd oil, a decline of about 6 percent from the same period the year before, the data showed.


Essar purchased Polvo from Brazil as it has been testing new heavy grades to improve refining margins.


In the December quarter, Essar met as much as 98 percent of its oil needs through heavy and ultra heavy grades, it said in a statement earlier this month.


Essar's total crude imports in January rose 81.5 percent from a low base in December, when it drew from inventory and cut purchases.Following are details of Essar's crude and condensate imports in January, according to the data. Volumes are in 1,000 bpd.


Source:- uk.reuters.com





Pakistan In Talks With Its Industry To Allow Import Of All Goods From India

Pakistan’s Commerce Ministry is trying to persuade the country’s four key sectors — automobiles, pharmaceuticals, agriculture and polyester — to support its proposal to remove all existing bans on Indian products.


Extending India non-discriminatory market access, which basically means allowing all Indian items to be sold in Pakistan, is a key condition that New Delhi has laid down before Islamabad for re-starting the bilateral trade dialogue that has been stalled for the past year. Pakistan disallows 1,209 items from India.


“We are in talks with representatives of the automobiles, pharmaceuticals, polyester and agriculture sectors to convince them that allowing imports of these items from India will not necessarily result in loss of business for them. We could put in place a number of safeguards to prevent that,” a senior official from Pakistan’s Commerce Ministry told Business Line.


The number of Indian goods banned by Pakistan was much higher, at around 6,000, when the two countries started the two-way trade liberalisation talks in February 2012. Since then, Pakistan has increased the number of permitted items around three-fold.


However, a number of Indian items, mostly from the agriculture, automobile and auto parts, pharmaceutical and chemicals and the polyester sectors, are still not allowed access into Pakistani markets despite the country promising to do away with such bans by December 31, 2013. It had also promised that it would allow trade of all products through the land route, instead of the expensive sea-route.


The Indian Commerce Ministry, in a letter to the Pakistani Government last month, said it would hold further talks with the country only after it gives strict timelines for extending it non-discriminatory market access (by removing import bans) and allowing trade through the land route.


India’s automobile industry, especially the two-wheeler segment, pharmaceuticals producers and polyester makers are likely to find a ready market in Pakistan for their goods once the import restrictions go, as they are more competitive in a number of categories. India has no ban on Pakistani products and allows all imports.


The Pakistani industry, too, stands to gain substantially from the move, as it would then prompt India to bring down duties on a large number of Pakistani goods, including all kinds of textiles and garments, in line with what it offers to other South Asian countries. India-Pakistan bilateral trade is at present just above $3 billion, but, according to industry estimates, has the potential to touch $20 billion if normal relations are established. Pakistani Trade Minister Khurram Dastgir Khan recently put the blame on the two Foreign Ministries for the stalemate in talks. The talks got suspended last year following violence at the Line of Control.


Source:- thehindubusinessline.com





Mines Ministry Examining 5 Per Cent Export Duty On Iron Ore Pellets

The Mines Ministry is examining the recently levied 5 per cent export duty on iron ore pellets following representations from various manufacturers opposing its imposition, and would write to the Finance Ministry on the matter soon.


The Mines Ministry was not consulted by the Central Board of Excise and Customs (CBEC) or by the Finance Ministry when the duty was imposed on January 27, said a senior official. He said the Mines Ministry has received several representations opposing imposition of the duty.


When asked about this, Mines Minister Dinsha Patel said: "We will give whatever representation is required to the Finance and Commerce Ministries. This is an issue concerned with the Finance Ministry, they have done it as per their own way. We will soon give our own report on it."


Speaking to reporters after presenting National Geo- science Awards-2012, he also said that domestic pellet manufacturers need to be encouraged as it will help in removing the scarcity of iron ore.


Pellets are value-added products of leftover material or low grade iron ore and are used in steel-making. In recent times, they have emerged as a major product for iron and steel industry in the country due to scarcity of ore in some regions following mining bans in Karnataka and Goa.


Opposing the duty, various pellet manufacturers and their industry associations have given representation to the government, crying foul and terming the move "retrograde". They had said in past that the move would lead to closure of many units and the country will be deprived of valuable foreign exchange.


According to industry estimates, India's pellet production capacity is currently at about 60 million tonne and has risen manifold since 2010-11 as government then encouraged value addition of iron ore fines.


Opposing the imposition of duty, Pellet Manufacturers Association of India (PMAI) had said that the decision was based on "erroneous facts" and of the total pellet production, current exports is over 1 MT only and accounts for 1.2 per cent of the installed capacity.


Moreover, the current capacity utilisation of pellet industry is less than 50 per cent owing to lower off-take by the steel industry, the PMAI had said. Export of raw iron ore or fines and lumps already attract an export duty of 30 per cent.


Source:- economictimes.indiatimes.com





Failure to initiate scrutiny assessment won't stop AO from re-assessment if sec. 147 ingredients are

IT: So long as ingredients of section 147 are fulfilled, Assessing Officer is free to initiate proceeding under section 147 and failure to take steps under section 143(3) will not render Assessing Officer powerless to initiate reassessment proceedings even when intimation under section 143(1) has been issued


Extended period of 6 years not available for reassessment unless AO gets info to show escaped income

IT : Extended time limit of 6 years under section 149(1)(b) requires data for prima facie computation of income escaping assessment


No invocation of extended period if exemption was availed due to general practice prevailing in mark

Central Excise: Where there was a trade practice packing materials bearing brand name of another person were eligible for SSI-exemption, same belief could not have entertained bona fide in respect of printed catch covers also and, hence, invocation of extended period of limitation was incorrect


No question of law was involved if ITAT ruled that sum received by assessee had nexus with family se

IT: Where in course of appellate proceedings, Tribunal recorded a finding that there was no transfer of assets and amount received by assessee was a part of family arrangement which did not give rise to liability of capital gain tax, said finding being a finding of fact, no substantial question of law arose therefrom


Prosecution on dishonour of cheque can't be extended to all director disregarding their duty and fun

Banking Laws : In prosecution under section 138 of NI Act, vicarious criminal liability cannot be extended to all directors of company irrespective of their duty and function in company


Purchases by account-payee cheque held sufficient to allow claim even if recipient couldn't be produ

IT-I : Where assessee, a builder, purchased cement from one party by account payee cheques at rates which were reasonable as compared to rates paid to other parties, assessee's claim for deduction in respect of said expenses was to be allowed under section 37(1)


Extended period was invocable only if misstatement was wilful

Service Tax : When assessee avails certain benefits/Cenvat credit claiming to be covered by statute and when it is found that such benefits are not available, surely assessee can be stated to have made misstatement, but, for invocation of extened period of limitation and levy of penalty, such misstatement must be shown to be wilful


Seized amount already disclosed in sec. 139 return can't be added back to income during block assess

IT : Where prior to initiation of block assessment proceedings, assessee filed his return under section 139 wherein amount seized from him had already been disclosed, in view of provisions of clause (b) of sub-section (1) of section 158BB, amount so disclosed could not be added to assesse's undisclosed income while completing block assessment


Refund of duty under compounded levy scheme was not hit by doctrine of unjust enrichment

Central Excise : Provisions of section 11B are not applicable for refund of excess duty paid under compounded levy scheme and, therefore, said refund cannot be denied on ground of principle of unjust enrichment


Deeming fiction of sec. 50 can't be extended further to disallow exemptions available for long-term

IT : Deeming fiction of a long-term capital gain to be treated as short-term capital gain is restricted only to section 50 and it would have no application to other provisions such as section 54EC


Delay in filing of appeal under FEMA to be condoned in absence of malafide intention of appellants

FEMA : Where delay in filing appeal was not deliberate and mala fide, delay was to be condoned