IT : Order of transfer of assessee's case should be well reasoned, passed after hearing assessee and same should be communicated to assessee
Wednesday, 26 February 2014
Forfeiture of sum paid in course of business for acquisition of tenancy right is a capital loss
IT: Where assessee paid a sum towards transfer of sub-tenancy of premises, but said deal did not materialize and advance could not be recovered, said sum be treated as capital loss since said transfer would have enabled assessee to use said premises as source of income
Jn Port Clears Psa’S Price Bid For New Terminal
The trust that runs the Union government-owned Jawaharlal Nehru port near Mumbai on Wednesday approved the highest price bid placed by Singapore’s PSA International Pte Ltd for building a Rs.8,000 crore container loading facility at the port that handles more than half of India’s container volumes.
The price bid by PSA Bharat Investments Pte. Ltd, a wholly- owned company formed by PSA International, was approved by the board of trustees of JN port on Wednesday, at least two trustees who attended the meeting said on condition of anonymity.
A spokesman for Jawaharlal Nehru port confirmed the decision taken by the board of trustees.
Last week, PSA emerged as the highest bidder for the project by quoting the highest revenue share price bid of 35.79%.
Ports contracts at union government-controlled ports are decided on the basis of revenue share—the bidder willing to share the most from its annual revenue with the government-owned port gets the contract, according to the port privatization policy of the government.
“JN port will now issue a letter of award to PSA for the project,” one of the two trustees cited above said on condition of anonymity because he is not authorized to speak to the media.
The bidding schedule for public-private partnership projects framed by the Union government mandates that the successful bidder has to sign the concession agreement within 30 days of getting the letter of award from the port authority.
PSA International, the world’s biggest container port operator by volumes, is fully-owned by Temasek Holdings Pte Ltd, the Singapore government’s investment company. PSA handled 61.81 million standard containers in calendar year 2013, according to its website.
PSA International could not be reached immediately for comment.The new project, the fifth at India’s busiest container port, is key to its capacity expansion plans.The new terminal, which will be designed to load 4.8 million standard containers a year, involves the biggest single foreign direct investment yet in an Indian port project, estimated about Rs.2,670 crore.
In the year to March 2013,Jawaharlal Nehru port loaded 4.26 million standard containers, operating at more than its designed capacity of 3.6 million standard containers a year.
Jawaharlal Nehru port currently has three container loading terminals while a fourth one is under construction by Dubai’s DP World Ltd.The port, one of the 13 owned by the union government, is expected to handle 11 million standard containers by 2016 and 23 million standard containers by 2020, according to a 10-year plan for ports unveiled by the shipping ministry in 2011.
The project will be the first to utilize the new guideline for tariff setting at ports owned by the union government that was announced in July 2013.
The new rules grant flexibility to cargo handlers to raise their rates every year based on market conditions subject to a cap of 15% if they comply with certain performance standards.
In the earlier rule, cargo handlers had to seek approval for rate increases from the regulator once in three years, which was either granted or rejected.
Source:- livemint.com
No fees leviable on appeals relating to refund or rebate of service tax, excise and customs duty
Service Tax : No fees is payable on appeals relating to refund/rebate of Service Tax, Excise Duty or Customs Duty
HC teaches basics to AO; asks to allow depreciation as per IT Act and not as per Companies Act
IT: In assessment, depreciation to be provided as per Income-tax Act; and not as provided under Companies Act
Punj Lloyd Faces Rs 61 Crore Service Tax Evasion Charges
Infrastructure and engineering major Punj Lloyd has come under the scanner of the central excise department over alleged pending Service Tax liability of Rs 61 crore.
Punj Lloyd voluntarily deposited Rs 1.06 crore on the spot through challans when excise officials visited them during an investigation in the matter. They have also submitted post-dated cheques of Rs 10 crore as part of their pending Service Tax liability, official sources said.
A Punj Lloyd spokesperson, when contacted for their reaction, said in an emailed response that "routine general investigations" were being carried out against them by the Directorate General of Central Excise Intelligence (DGCEI).
"Neither has the DGCEI issued any show cause notice to the company. Routine general investigations, as they are done for several companies, are being carried out by them and Punj Lloyd is fully cooperating and submitting the required information," the spokesperson said in a statement.
The DGCEI has not found any shortfall in the deposit of Service Tax by Punj Lloyd Limited. "We have been paying Service Tax dues since April 2013. In fact, the last payment was made in January 2014," the company said.
Acting on information that the firm was collecting Service Tax but not depositing it with the exchequer, an investigation through summons proceedings was initiated against Punj Lloyd by DGCEI, the sources said.
They claimed to have found that Punj Lloyd, engaged in business of engineering and construction, was not filing ST-3, a mandatory form for filing Service Tax returns, since April last year.
After registration of preliminary enquiry, a team of DGCEI officials visited the firm's headquarters in Gurgaon.
The officials recorded the statement of Rajesh Goel, Assistant General Manager of the company, as part of their investigation. Goel admitted to pending tax liability of the company to be around Rs 61 crore before the tax officials, the sources said.
Goel has also undertaken to deposit the balance outstanding amount of the firm's tax dues by March 31, 2014, the sources said.
Actual quantification of alleged Service Tax evasion and further investigations are in progress, they said.
Meanwhile, the DGCEI have also sought relevant information from other financial intelligence agencies on Punj Lloyd, they said.
Service Tax has been a "focus area" for the Finance Ministry to increase its revenue from indirect taxes.
The DGCEI officials are taking strict action against all evaders after a first-of-its-kind amnesty scheme for Service Tax defaulters ended in December last year.
The Voluntary Compliance Encouragement Scheme (VCES), which was implemented from May 10 last year, was announced by Finance Minister P Chidambaram to allow a Service Tax defaulter to pay dues without any penalty or late payment charges.
Under the scheme, a person was to make a declaration to the designated authority on or before December 31, 2013.
Source:- economictimes.indiatimes.com
More Investments Needed In Farm Sector: Gulati
More investments, including private ones, are needed in the agriculture sector so as to achieve 5 per cent farm growth, Commission for Agricultural Costs and Prices (CACP) Chairman Ashok Gulati said today.
He stated this at a seminar on 'Accelerating Agricultural Growth-Role of Policy and Technology' at the Punjab Agricultural University here.
"We need to bring changes in farming to accelerate growth and reduce rural poverty," he added.At present, the agriculture growth rate is nearly 4 per cent and in 2013-14, it is likely to be 4.6 per cent, Gulati said.
Stating that farm technology alone could not do wonders, Gulati said high-value produce like fruits, vegetables, poultry and fish would govern the country's farm sector in future.
"In 2012-13, India exported 22 million tonnes (MT) of cereals and we are likely to export 18 MT of wheat, rice and maize in 2013-14," he said.
In 2007-08, when global food prices went up, India had banned the export of wheat and rice.During the period of five years from 2006-07 to 2011-12, food production increased by 42 MT. As the production was going up and export was banned, the surplus touched 80 MT in 2011-12, he said.
In September 2011, the central government opened up the export of wheat and rice.Stating that the country has witnessed cotton revolution in the past few years, Gulati said India is producing 36 million bales of cotton and exporting 10-13 million bales and has become the second largest exporter of the commodity.
Source:- business-standard.com
Sugar Producers Seek Import Protection
THE sugar industry’s application for protection from cheap imports is unlikely to hurt consumers and will safeguard an important and empowered industry, an analyst says.
In contrast, the poultry sector — which was recently granted protection from Brazilian imports but is now seeking similar buffers against European imports — has faced criticism that its push for help will weigh on consumers’ pockets.
The sugar industry is protected through a dollar-based reference price tariff system that is based on the long-term average world price of sugar. However, this tariff system comes into effect only when the world price drops below this reference price.
A variety of factors affects the tariff, but it is roughly the difference between the world price — which early yesterday was quoted just above 17c/lb — and the set reference price, which is currently 15c/lb. But a world price that is only slightly lower than the reference price means local producers do not benefit meaningfully from the tariff.
The South African Sugar Association has applied to the International Trade Administration Commission of South Africa (Itac) for a higher dollar-based reference price on imports in order to give teeth to the tariff. Investec Securities investment analyst Anthony Geard says the move against cheap imports, which are almost entirely from Brazil, "should be positive for the (local) sugar sector" without having a material effect on prices.
If the tariff protection is not implemented, "jobs could be at risk at black-owned millers and cane growers", given that the sector is a highly empowered one.
While sugar prices in the domestic market are well above those in the world market at the moment, Mr Geard says it seems sugar importers are absorbing most of the import margin, which means consumers have not benefited much from lower world prices. South African producers were dealing with surging Brazilian imports, which was likely to reduce their domestic sales.
However, while excess supply would need to be exported, world sugar prices are below the marginal cost of production because of "four consecutive years of global surpluses". This has been worsened by export subsidies, particularly in India.
The average selling price achieved by South African producers, including both domestic sales and exports, has reduced over the past two years as the mix has shifted towards lower-priced export sales. "At present, I judge that the South African industry — growers and millers — would be running at a meaningful loss at current world prices," Mr Geard says.
Furthermore, the application for tariff protection "is not unusual in the world of sugar", which is likely the most protected major soft commodity in the world. The expected new reference price of about 30c/lb "should extinguish imports completely", he says.
Itac has finalised its investigation of the sector’s application "and a final decision will be made by the minister of trade and industry in due course", Itac spokesman Thembinkosi Gamlashe says.
Illovo Sugar MD Gavin Dalgleish says the move to raise the dollar-based reference price on sugar imports is aimed at preventing independent traders from importing sugar that is being sold at prices "below the cost of production of even the most efficient producers on the world market". Illovo, a member of the South African Sugar Association, contributed to the application for a review of the existing tariff mechanism.
Mr Dalgleish says that 160,000 tonnes of sugar was imported into South Africa during the past two months of this year alone.
The domestic sugar market is about 1.6-million tonnes annually, with local producers exporting about 400,000 tonnes each year.
"The imports currently entering South Africa almost match its total exports — in effect forcing the industry to export its own sugar onto the low-priced world sugar market and in the process taking significant losses in revenue," Mr Dalgleish says.
He says the South African sugar industry is an important contributor to economic and development growth, with about 1-million people directly and indirectly dependent on the industry for their income.
Meanwhile, also on the hunt for import protection is the embattled poultry sector, which was granted import tariff hikes in September last year on imported chicken products. The hikes were aimed largely at curbing Brazilian imports, but as was widely expected, the industry has reported that imports have since shifted to European chicken products.
South Africa does not impose duties on members of the European Union because of a trade and co-operation agreement it has with the 28-member bloc.
The industry is now seeking antidumping duties on various European imports, but has come under fire for an expected material rise in chicken prices should it be granted further protection.
Source:- bdlive.co.za
When term 'manufacture' wasn't defined in Act, it included all processes generating new article with
IT : In absence of specific definition of term 'manufacture' in section 10B as well as in section 2(29BA) during year 2003-04, term 'manufacture' would include every process, which would ultimately result in production of new article having a different character
India-Us Relations Strain Against Trade Differences
US business groups are lobbying for strong action against India which they say is a serious violator of intellectual property rights.On top of the bitter diplomatic row over the arrest of an Indian diplomat last year it risks a further deterioration in bilateral ties.
Speakers: Shekhar Gupta editor-in-chief of The Indian Express newspaper; Dr Amitendu Palit, visiting senior research fellow, National University of Singapore
SNOWDON: Some US business groups are very unhappy with India.
Their anger is often directed at India's generic drug industry which provides affordable medicines outside of patents.
They say India is one of the worst offenders for pirated software. Its domestic content rules for the solar industry and its steel exports threaten US jobs.
US Manufacturers want India designated as a Priority Foreign Country and that could lead to trade sanctions.
Dr Amitendu Palit, visiting senior research fellow, at the National University of Singapore says India has been on the watch list for some time and wont be worried.
PALIT: In fact you would find not only India there but also China and a country like Thailand and several other countries.
SNOWDON: Shekhar Gupta editor-in-chief of The Indian Express newspaper says India's growing export clout is the reason for US disquiet.
GUPTA: Because when the relationship was much smaller these things did not matter that much. Or when the relationship was more onesided these things did not matter. But India is now a sizeable exporter of skilled services or of value added products so there are tensions.
SNOWDON: It's unlikely the issues of trade will be sorted out soon.
Amitendu Palit says India won't back down and disagreements will be a feature of the relationship.
PALIT: Some of these are going to be very difficult to wash under the carpet and I think the issues like intellectual property on which there have been long differences between India and the US is going to remain there for a considerable period of time.
SNOWDON: Even with the signing of the historic nuclear accord in 2006 US industry was unhappy over the restrictions against it.
Over several years the two trading partners have lodged 14 cases with the World Trade Organisation. They also don't agree on climate change.
But dire predictions that the important strategic partnership between Washington and New Delhi are shaky are probably exaggerated.
Amitendu Palit says the relationship will withstand the stresses.
PALIT: So when we look at the larger geopolitical spectrum I think both India and the US will obviously take note of the fact that this is a relationship that's important not only for the two of them but also for the greater stability of the region and the rest of the world. So to that extent they will obviously work on ensuring that their relationship does not under any circumstances gets to a point where it creates greater instability or brings in a sense of disharmony that kind of upsets the geopolitical equilibrium. But at the same time I think its pretty clear at least as far as India is concerned, there are certain areas where India is not willing to budge as easily as it might have done in the past.
SNOWDON: As to the latest trade dispute, and the possibility of India being listed as the worst of intellectual property offenders Shekhar Gupta thinks there's a lot of hot air around the issue.
GUPTA: I think some of what's happening in Washington is bullshit. It's bullshitting also for the sake of their own domestic industry, their pressure groups there. So I think this will be resolved through negotiation I think Indian companies are very strong now. They also have lobbying power in New Delhi, so this is lobbying power verses lobbying power.
Source:- radioaustralia.net.au
General Motors Bets Big On Exports From India
General Motors India, which has two plants with a combined capacity of 2.82 lakh units per annum, is betting big on export of cars from the country.
The company would start export of cars late this year. "Export out of India is an attractive proposition. India has a skilled workforce, strong supplier base and strong engineering skills," president and MD of GM India Lowell Paddock said.
"The countries earmarked for exports are yet to be firmed up," he told reporters here last night.Paddock said GM has a plant in South Korea, which functions as an export hub.So far, GM India had been selling cars to Nepal and Bangladesh in a limited way.
Besides exports, the company is also willing to have a strong domestic presence."We want to have a strong domestic market. To have that, there is a need to increase the level of localisation. As dependence on imports will make us vulnerable to foreign exchange fluctuations," Paddock said.
Amid downturn in the automotive sector, GM India's sales in 2013 showed a de-growth of 6 per cent at 86,000 units.Paddock said the cut in excise duty as announced in the interim budget would stimulate the industry.He said GM India had refreshed its entire portfolio last year with the launch of SAIL hatchback, SAIL sedan and Enjoy MPV.
Source:- economictimes.indiatimes.com
Gold Imports To Drop 35% This Fiscal
India’s gold imports this fiscal are likely to drop 35% from a year before to 550 tonne as restrictive measures by the government and the central bank choked supplies from overseas, All India Gems and Jewellery Trade Federation chairman Haresh Soni said on Wednesday.
The country has so far imported 515.65 tonnes of gold this fiscal, he said, of which 300 tonnes were purchased from overseas in just April and May. Concerned over the impact of high gold imports on CAD, the government raised the import duty on gold periodically to 10% from 4% in the beginning of last year and the central bank mandated that at least 20% of the imported gold be kept aside for re-exports, leading to a crash in purchases from overseas.
In value terms, bullion imports dropped almost 40% to roughly $27 billion during the April-January period of this fiscal, industry data showed.
However, the plunge in raw material imports drove down exports of gold jewellery, medallions and coins by a half to to $15.60 billion in the April-January period.
This has led to renewed demand by the industry to lower the import duty on gold to 2% from the current 10% and scrap the 80:20 rule imposed by the RBI, especially when the country's current account deficit is expected to drop by almost a half to $45 billion in 2013-14 from a record $88.2 billion a year before."Gold can't be treated as the only villain in the whole CAD saga, as there are other commodities and finished products, too, which contribute to the widening CAD. As many as six crore people are dependent on the jewellery-making business for a livelihood and putting their lives to risk is not a sensible decision," said Soni.
India, which was dethroned by China last year as the world's biggest bullion consumer, barely produces gold and depends on imports to cater to both domestic and export demand. It purchases gold from overseas and exports value-added products such as jewellery, medallions and coins.The industry executives said the government must clarify its stand on how much of imports it can allow while ensuring.
Source:- financialexpress.com
Indian Rupee Loses 4 Paise Against Us Dollar
Snapping three days of gains, the Indian rupee lost 4 paise to end the day at 61.98 against the dollar on fresh US dollar demand from importers, including oil firms.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced slightly lower at 61.96 a dollar from previous close of 61.94.
It traded in a narrow range of 61.90 and 62.06 before concluding at 61.98, down 4 paise from its last close.
In the previous three days, the rupee had jumped 29 paise or 0.47 per cent.
"It was a mixed session for the rupee, as locally and globally there was absence of cues. Positive closing of the stock markets and weak dollar index is seen consistently supporting the rupee," said Abhishek Goenka, Founder & CEO of India Forex Advisors.
Month-end dollar demand from importers, including oil firms, however, was seen putting pressure on the Indian rupee, he added.
The US dollar index was up by a modest 0.04 per cent against its major global rivals.
Pramit Brahmbhatt, CEO, Alpari Financial Services, (India), said: "After strengthening for three consecutive days, today Indian rupee depreciated against the US currency on renewed dollar demand from importers and banks though the fall
was capped by the strong local equity markets."
The BSE Sensex today spurted by 134.52 points or 0.65 per cent. FIIs picked up shares worth Rs 423.41 crore yesterday, as per provisional data with stock exchanges.
Forward dollar premium softened on stray receipts from exporters. The benchmark six-month premium payable in July declined to 224.5-226.5 paise from 227-229 paise.
Far forward contracts maturing in January 2015 eased to 471-473 paise from 471.5-473.5 paise previously.
The RBI fixed the reference rate for dollar at 61.97 and for the euro at 85.14.
The Indian rupee fell against the pound to 103.37 from 103.30, while recovered to 85.14 per euro from 85.29. It also regained to 60.52 per 100 Japanese yen from 60.64.
Source:- financialexpress.com
Case remanded as comparables chosen by TPO were not appropriate due to functional differences and hi
IT/ILT : Where in course of in respect of transfer pricing proceedings of assessee-company engaged in providing software development services to its AE located abroad, TPO made certain adjustment to assessee's ALP, in view of fact that some of comparables selected by TPO were inappropriate on account of functional difference, high turnover and brand value, impugned adjustment was to be set aside and, matter was to be remanded back for disposal afresh
ST abatement won't be included in 'aggregate value' for small service provider's exemption
Service Tax : Since 'aggregate value' for purposes of Small Service Providers/Threshold Exemption does not include 'exempted' services and abatement is allowed vide 'exemption notifications', said abatement shall not, prima facie, form part of aggregate value under Small Service Providers/Threshold Exemption
SAT reduced penalty on appellant-co. as it furnished docs relating to private placements though bela
SEBI: Where appellant company furnished documents relating to issuance of debenture belatedly, since issue was to employees and their relatives/associates on private placement basis, penalty was to be restricted
Exp. held genuine by appellate authorities in absence of any adverse material; HC denies to interfer
IT : Where there was a concurrent finding of facts from Commissioner (Appeals) and Tribunal that payment regarding Transportation charges was genuine and revenue had no adverse material, there was no reason to interfere order of both appellate authorities
'Liquidated damages' are deductible in determining transaction value
Excise & Customs : "Liquidated damages" deducted by buyer as compensation for delay in supply of goods by assessee shall be allowed as deduction in determining transaction value even if they are termed as "penalty" in contract
Matter remanded as ITAT didn't deal with cases cited by assessee while confirming order of CIT(A)
IT : Where in course of appellate proceedings, Tribunal confirmed addition made by authorities below under section 68 without dealing with any case law cited by assessee in support of its case, said order of Tribunal was to be set aside and, matter was to be remanded back for disposal afresh
CLB directs respondent-co. to convene GM to consider notice of appellant proposing director's appoin
CL: Where respondent-company had failed to perform their obligation in considering notice issued under section 257 by applicant proposing appointment of director, respondent-company was to be directed to consider same by convening general meeting
Refund of excise duty couldn't be taxed under sec. 41(1) if it was never claimed as deduction in ear
IT : Since excise duty collected by assessee was neither offered as income nor claimed as deduction in earlier year, provision of section 41(1) was not applicable
Purchase tax isn't refundable unless doctrine of unjust enrichment is proved
CST/VAT : Refund of purchase tax cannot be granted if it results in unjust enrichment i.e., if tax paid forms part of final price and is passed on to purchaser, then assessee is not entitled to unjustly enrich himself by getting refund of such tax
HC asks for disposal afresh as ITAT overlooked the fact that order it relied upon was also remanded
IT: Where Tribunal relying upon its earlier order, allowed assessee's claim for depreciation on aircrafts, in view of fact that said earlier order was subject matter of appeal in which High Court had remanded proceedings back, impugned order of Tribunal was to be set aside
CLB bans audio or video recording of proceedings by parties
COMPANIES ACT, 1956/INDIAN ACTS & RULES : Company Law Board (Amendment) Regulations, 2014 - Insertion of Regulation 51
It's an obligation of company to file Form 32 on acceptance of resignation of a director
CL : Resignation of a director being accepted and acted upon, company should file statutory Form No. 32 showing his cessation as director from board of company
No concealment penalty if assessee offers to tax actual consideration instead of sec. 50C deemed con
IT : Where assessee had offered actual amount received on sale of property for taxation, revenue authorities were not justified in passing penalty order under section 271(1)(c) by adopting higher sale consideration under section 50C on basis of stamp duty valuation of said property
Employees health insurance services and fire insurance services at staff quarters are eligible for i
Cenvat Credit : Service tax paid on employee health insurance services and staff residential fire insurance services is eligible for input service credit
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