CST & VAT : Issuance of Sales Tax Declaration Form (C Form under CST Act) neither constitutes acknowledgement of subsisting liability nor establishes jural relationship of a debtor and a creditor and, therefore, cannot be considered for extending period of limitation under section 18 of Limitation Act, 1963
Thursday, 6 March 2014
Assessee punished for being in hurry: sec. 54F relief denied as construction of house was completed
IT : Where construction of residential house takes place prior to date of transfer of long term capital asset, assessee's claim for deduction under section 54F cannot be allowed
AO wasn't justified in rejecting change in system of accounting if such change was permissible merca
IT : Where assessee-company during previous year had changed its system of accounting and started following mercantile system of accounting, since new accounting system followed by assessee was permissible under law, Assessing Officer was not justified in rejecting same
Depart. couldn’t demand ST from recipient of GTA services if ST was paid by service provider
Service Tax : Where service tax, under reverse charge, stands paid to revenue by service provider, same cannot be demanded twice over from service recipient
Assessee filed relevant docs to prove legitimacy of sums paid to sub-contractor; disallowance delete
IT : Where assessee had fully discharged its onus of proving sub-contract expenses by submitting details of sub-contractors as also details of TDS, disallowance made by Assessing Officer was to be deleted
ESOP exp. is an employee cost; ITAT allows deduction for difference between market price and issued
IT : Where in terms of Employees Stock Purchase Scheme (ESOP), assessee company offered shares of its parent company to employees, difference between fair market value of shares of parent company on date of issue of shares and price at which those shares were issued by assessee to its employees was to be regarded as expenditure incurred for business purpose allowable under section 37(1)
No ST on deemed sales of goods; benefit of exemption N.N 12/2013 is available
Service Tax : 'Deemed sale' is also sale for purposes of Notification No. 12/2003-ST and, therefore, deemed sale is also exempted from service tax under said notification
DG couldn’t allege abuse of dominance by party who is dealing in iron ore in compliance with SC's or
Competition Act : Where informant alleged that OP had adopted arbitrary pricing mechanism as a result of its dominant position in relevant market of sale of iron ore, in view of fact that OP was producing iron ore and selling same in compliance with orders of Supreme Court, investigation could not be ordered under section 26
ITAT relying on earlier order set aside TP adjustment in respect of commission paid to AEs
IT/ILT : Following order passed by co-ordinate Bench of Tribunal in assessee's own case for assessment year 2005-06, impugned adjustment made by authorities below in respect of commission paid by assessee to its AE for rendering marketing services was to be set aside
Youth Brigade Members Proposed For Poll Duty
Newly recruited members of the Tamil Nadu Special Police Youth Brigade (TNSPYB) are proposed to be utilised for poll duty by the police for the forthcoming Lok Sabha elections, said police sources.
The youth brigade members are currently undergoing basic trainingthat include law, driving, and handling wireless equipment. The four-week long training that commenced last month is scheduled to get over on March 11.
The brigade have been recruited essentially to assist the police department in various activities so as to utilise police force in their primary tasks of maintenance of law and order and carrying out investigations.
The strength of youth brigade members has been compiled along with that of non-police personnel such as ex-servicemen, personnel of Fire and Rescue Services, Home Guards and Forest Department for the election duty.
Around 300 youth brigade members are in Tiruchi district and those attached with the Tiruchi city police. Sources said that consequent to a recent directive from the State police headquarters; district and city police headquarters from Tiruchi, Pudukottai and Perambalur have furnished complete details of police strength that could be made available during elections.
The figure has been arrived at after deducting personnel required for essential duties as per norms. The State police headquarters has spelt out directive for deployment of strength for critical and non-critical polling booths, flying squads, static surveillance teams, counting centres, pickets and strong rooms in which electronic voting machines are to be deposited. The Tiruchi Range encompasses three Parliamentary constituencies – Tiruchi, Perambalur and Karur - with 22 assembly segments falling under them. The number of polling stations identified by the police in the three constituencies is a little over 5,000.
Source:- thehindu.com
Cotton Market: Spinners Worried In Wake Of Stock Piling Of Yarn
Local spinners got unnerved as a result of stock piling of yarn, dealers said on the cotton market on Wednesday. The official spot rate was unchanged at Rs 6800, they added.
Prices of seed cotton in Sindh per 40 kg were at Rs 2400-3100, in Punjab, rates were inert at Rs 2400-3200, dealers said. In the ready session, 4200 bales of cotton changed hands between Rs 6700-7100, dealers said.
Cotton Analyst, Naseem Usman said that local spinners were worried about the stock piling of yarn due to import of same from India. The spinners were facing hardship due to financial problem, other brokers said.
Reuters adds: Cotton futures gained for a second straight session on Tuesday, lifted by chart signals and expectations of tight supplies in the United States, the world's top exporter. The most-active May cotton contract on ICE Futures US rose 0.89 cent, or 1 percent, to settle at 89.22 cents a lb.
The following deals were reported: 400 bales of cotton from Haroonabad at Rs 6700, same figure from Fort Abbas at Rs 6800 and 3000 bales from Sadiqabad at Rs 7100, they said.
Source:- brecorder.com
Off-Radar Iron Ore Exporters Helping Hasten Global Market Glut
Iron ore exports from half-a-dozen “off-the-radar” nations such as Peru and Iran are helping tip the $159 billion global iron ore market toward oversupply.
China’s Shougang Corp. and Hong Kong-based CAA Resources Ltd. (2112) are among companies expanding mines in these countries to feed Chinese steel mills. Exports from these emerging suppliers, the so-called EM6 exporters, gained about 30 percent last year, making them the largest source of seaborne supply growth after Australia, according to Goldman Sachs Group Inc.
“I would get on average probably 20 inquiries a week for 100,000 tons or more for one-year, five-year or six-year contracts,” said Phillip Thomas, president of closely held AussieMex SA de CV, which operates the Manto mine in Mexico. “Mostly from China but India is starting to crank up a bit.”
For the past decade China, the world’s biggest buyer of iron ore, has been seeking alternate sources of supply to break the stranglehold of the three biggest exporters led by Brazil’s Vale SA (VALE5) that control almost two-thirds of the global export market. Shougang is outlaying about $1.2 billion on an expansion in Peru, while ArcelorMittal (MT), the world’s biggest steelmaker, has three iron ore mines in Mexico.
Malaysia, Chile and Indonesia make up the balance of EM6 nations. CAA Resources produced about 1.2 million metric tons last year at its operations in Malaysia. The Ibam Project may produce as much as 10 million metric tons in future, Chief Executive Officer Yang Li said in an e-mail interview.
BHP Billiton Ltd. (BHP), the world’s biggest mining company, last month joined Rio Tinto Group in predicting lower prices after key producers in Australia and Brazil spent billions of dollars expanding output to supply China.
CAA Resources’ Chinese clients are keen to diversify their supplier base from the dominant companies, Li said. CAA Resources is also in talks for two acquisitions in Malaysia.
An investment splurge on new mines, ports and transport systems is set to push the global export market into oversupply of 90 million tons this year from a balanced market last year, according to UBS AG. It expects the market to rise 12 percent this year to 1.347 billion tons.
Iron traded at $116.70 a ton yesterday. That compares with an average price of about $135 a ton last year, while prices are forecast to decline every year until at least 2017, according to data compiled by Bloomberg.
As recently as 2009, the EM6 nation’s accounted for the equivalent of the annual output of just one of Rio or BHP’s large mines in Australia, according to Goldman Sachs. Since then, their share of seaborne supply has more than doubled to 82 million tons last year.
Planned iron ore developments in Peru also include Chinese Nanjinzhao Group’s $3 billion Pampa de Pongo project and Strike Resources Ltd.’s $2.9 billion Apurimac and Cuscu projects.
The outlook among the group of six countries is set to diverge as lower prices will see high-cost suppliers struggle to remain profitable, and Indonesia enforces bans on the export of unprocessed mineral ore. Supply from the EM6 should remain stable around 80 million tons from 2014 onwards, according to Goldman Sachs.
“I feel comfortable that Chile and Peru go up, I’m pretty comfortable that Indonesia goes down and for Iran, Malaysia and Mexico, it is hard to tell,” Christian Lelong a Sydney-based commodity analyst with the bank, said in a phone interview. “You can see that there is some upside potential but nothing as definitive as what you can see for Chile and Peru.”
EM6 exports may increase further this year should the regulations on unprocessed ore exports by Indonesia not be properly enforced or end up being rescinded, Lelong said. Or strict enforcement may see a decline, he said.
Source:- businessweek.com
South Korea's Feb Coal Imports From Australia's Newcastle Port Slump 55% From Jan
Coal shipments to South Korea from Port Waratah Coal Services' terminals at the Australian port of Newcastle slumped 55% from January to 993,000 mt in February, the company said Thursday.
The drop comes after Port Waratah's terminals loaded 2.2 million mt bound for South Korea in January, the highest since Platts started tracking PWCS export data in January 2010.
Thermal coal accounted for 8.45 million mt or 86% of PWCS's shipments in February, with coking coal at 1.37 million mt or 14%, according to the data.
The drop in South Korean shipments might indicate lower tender activity by the country's power utilities at the beginning of the year, possibly because generators have sufficient stocks, market sources said.
South Korean utilities prefer Australian thermal coal with a calorific value of 5,700-6,000 kcal/kg on a net-as-received basis and an ash content of 17-20%, traders said.
Prices for this coal have slumped to as low as $73/mt FOB Newcastle basis 6,080 kcal/kg NAR, according to market sources.
China took up some of the slack in the Newcastle coal market left by retreating South Korean buyers last month.
PWCS coal shippers including Glencore-Xstrata and Rio Tinto Coal Australia exported 2.5 million mt of coal to customers in China in February, a six-month high and up 35% from the 1.85 million mt shipped in January.
The higher volumes boosted China's share of the PWCS shipments to 25.6% in February, from 20% in January, despite a trading lull during the Lunar New Year holiday in early February.
Chinese customers including power stations in coastal regions are prolific buyers of Newcastle thermal coal with maximum ash content of 23% on an as-received basis. Prices for such coal have fallen to $63/mt FOB Newcastle this week, down from $71/mt in early January, according to Platts data.
Taiwan increased its offtake from the PWCS terminals last month to 930,000 mt, up 96% from 475,000 mt in January, according to PWCS data.
Shipments from Port Waratah's terminals to Japan were relatively steady at 4.4 million mt in February, compared with 4.2 million mt in January. Japan's share of the market was about 45% in both months.
Mexico-bound ships loaded 414,000 mt of coal exports at the PWCS terminals in February, the country's highest offtake since September 2012, according to a Platts analysis.
Major coal exporter Indonesia took delivery of 155,000 mt of Newcastle coal from the Port Waratah terminals in February, the equivalent of two Panamax cargoes.
India was missing from Port Waratah's shipping data as a destination for Newcastle coal exports in February, after taking 125,000 mt in January.
This was despite strong Indian buying interest heard in the spot market last month for mid-calorific value Australian thermal coal, arising from end-users in the country becoming frustrated at being unable to secure enough South African cargoes because of delays at Richards Bay coal terminal related to an electrical outage.
The 66 million mt/year Newcastle Coal Infrastructure Group terminal at Newcastle port owned by five coal producers including BHP Billiton and Peabody Energy does not regularly publish export data.
Source:- platts.com
Nifty Hits Highest Level In More Than 12 Weeks
Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. The market sentiment was boosted by provisional data showing that foreign funds remained buyers of Indian stocks on Wednesday, 5 March 2014 and data showing a sharp reduction in India's current account deficit (CAD) in Q3 December 2013 as barometer index, the S&P BSE Sensex, hit 6-week high and the 50-unit CNX Nifty hit its highest level in more than 12 weeks. The Sensex was up 105.38 points or 0.5%, up about 50 points from the day's low. The market breadth, indicating the overall health of the market was strong. All the thirteen sectoral indices on BSE were in the green. Gains in Asian stocks also underpinned sentiment on the domestic bourses.
Realty stocks and capital goods edged higher for the second day in a row. Astrazeneca Pharma India dropped after the company said its board deferred the proposed delisting of the firm's shares from the domestic stock exchanges.
The market edged higher in early trade after data released by the Reserve Bank of India (RBI) after trading hours on Wednesday, 5 March 2014, showed that India's current account deficit declined sharply in Q3 December 2013. The Sensex extended initial gains and hit fresh intraday high in morning trade. The barometer index hit 6-week high. The 50-unit CNX Nifty hit its highest level in more than 12 weeks.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Wednesday, 5 March 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 737.29 crore on Wednesday, 5 March 2014, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 105.38 points or 0.5% to 21,382.24. The index jumped 106.78 points at the day's high of 21,383.64 in morning trade, its highest level since 23 January 2014. The index rose 53.02 points at the day's low of 21,329.88 in early trade.
The CNX Nifty was up 33.35 points or 0.53% to 6,362. The index hit a high of 6,362 in intraday trade, its highest level since 10 December 2013. The index hit a low of 6,339.70 in intraday trade.
The BSE Mid-Cap index was up 61.02 points or 0.92% at 6,688.53. The BSE Small-Cap index was up 62.03 points or 0.95% at 6,608.47. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,233 shares gained and 549 shares fell. A total of 103 shares were unchanged.
Among the 30-share Sensex pack, 25 stocks rose and rest of them fell. Tata Power Company (up 1.74%), ONGC (up 1.45%) and GAIL (India) (up 1.85%) edged higher from the Sensex pack.
Capital goods stocks edged higher for the second day in a row. ABB (up 2.7%), Crompton Greaves (up 3.34%), L&T (up 0.63%), Bhel (up 1.38%), Punj Lloyd (up 1.92%) and Siemens (up 2.92%) gained.
Realty stocks edged higher for the second day in a row. DLF (up 1.11%), D B Realty (up 2.67%), HDIL (up 1.07%), Sobha Developers (up 2.27%) and Unitech (up 0.26%) gained.
Astrazeneca Pharma India dropped 6.85% to Rs 1093.25 after the company said its board deferred the proposed delisting of the firm's shares from the domestic stock exchanges. The company made the announcement after trading hours on Wednesday, 5 March 2014. AstraZeneca Pharma India (the company), the Indian arm of Swedish drug maker AstraZeneca Pharmaceuticals AB (AZP AB), has deferred its delisting from the stock exchanges, which had been proposed by its parent company last week. The company's board, at a meeting on Wednesday, 5 March 2014, decided to seek additional information on the delisting proposal from the parent. Pending receipt of such additional information, consideration of the promoter's letter dated 1 March 2014 was deferred, the Indian company said in a statement.
On Saturday, 1 March 2014, the company said that its board received a letter from AZP AB, promoter of the company, proposing to delist the equity shares of the company from Indian stock exchanges (BSE, NSE and Bangalore Stock Exchange). AZP AB holds 75% in the company.
In the foreign exchange market, the rupee edged higher against the dollar after data released by the Reserve Bank of India (RBI) after trading hours on Wednesday, 5 March 2014, showed that India's current account deficit declined sharply in Q3 December 2013. The partially convertible rupee was hovering at 61.415, compared with its close of 61.75/76 on Wednesday, 5 March 2014.
India's current account deficit (CAD) narrowed sharply to $4.2 billion or 0.9% of GDP in Q3 December 2013, from $31.9 billion or 6.5% of GDP in Q3 December 2012. CAD in Q3 December 2013 was also lower than $5.2 billion or 1.2% of GDP in Q2 September 2013. The lower CAD was primarily on account of a decline in the trade deficit as merchandise exports picked up and imports moderated, particularly gold imports, the Reserve Bank of India (RBI) said.
On a BoP basis, merchandise exports rose 7.5% year-on-year to $79.8 billion in Q3 December 2013 on the back of significant growth especially in the exports of engineering goods, readymade garments, iron ore, marine products and chemicals. On the other hand, merchandise imports dropped 14.8% year-on-year at $112.9 billion in Q3 December 2013. The decline in imports in Q3 December 2013 was primarily led by a steep decline in gold imports, which amounted to $3.1 billion as compared to $17.8 billion in Q3 December 2012 and $3.9 billion in Q2 September 2013.
Net services receipts improved during Q3 December 2013, essentially reflecting a decline in payments on account of services imports. Net services at $18.1 billion recorded a growth of 8.9% year-on-year in Q3 December 2013.
In the financial account, on net basis, both foreign direct investment registered inflows of $6.1 billion and foreign portfolio investment recorded inflows $2.4 billion in Q3 December 2013. Within portfolio investment, the debt segment showed net outflow in Q3 which, however, was offset by higher net inflows of $6.2 billion under the category of equity. On a BoP basis, there was a net accretion of $19.1 billion to India's foreign exchange reserves in Q3 December 2013 as compared to a drawdown of $10.4 billion in the preceding quarter, the RBI said in a statement.
The turnaround in export growth and decline in imports from July 2013 onwards led to a sharp improvement in the trade deficit to $116.9 billion in April-December 2013 from $150.0 billion in April-December 2012. Contraction in the trade deficit, coupled with a rise in net invisibles receipts, resulted in a reduction of the CAD to $31.1 billion (2.3% of GDP) in April-December 2013, from $69.8 billion (5.2% of GDP) in April-December of 2012. Net inflows under the capital and financial account (excluding change in foreign exchange reserves) declined to $39.7 billion in April-December 2013, from $68.5 billion in corresponding period of 2012-13 owing to net outflows on account of portfolio investment, higher repayment of loans, and trade credit & advances. On BoP basis, foreign exchange reserves increased by $8.4 billion during April-December 2013, as compared with an accretion of $1.1 billion in April-December 2012.
Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Citing price pressures, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.
Business activity across emerging markets expanded in February at the slowest pace in five months, weighed down by weaker manufacturing in big developing countries such as Russia and China, a survey showed on Thursday, 6 March 2014. HSBC's composite emerging markets index of manufacturing and services purchasing managers' surveys slipped for the third month running to 51.1 in February. It stayed under the 2013 average of 51.7 and well below a long-run level of 54. But the monthly index remained above the 50 threshold which marks the difference between expansion and contraction.
Based on data from purchasing managers at about 8,000 firms in 17 countries, the survey showed Chinese factory output stayed below the 50 mark. Manufacturing in Russia, India and Brazil hovered just above 50.
On the domestic political front, the Election Commission on Wednesday, 5 March 2014, announced the dates for 2014 Lok Sabha elections. The polls will be held between 7 April 2014 and 12 May 2014 in nine phases. The counting of votes will be take place on 16 May 2014.
The term of the current Lok Sabha expires on June 1 and the new House has to be constituted by May 31. Along with the Lok Sabha election, Andhra Pradesh, including the regions comprising Telangana, Odisha and Sikkim will go to polls to elect new assemblies. AP, Odisha and Sikkim assemblies come to end on June 2, June 7 and May 7 respectively.
An estimated 81.4 crore voters will be eligible to vote in the coming elections after 9.71 crore new voters have been added to the rolls since the last elections. From the coming elections, candidates in a Parliamentary constituency in bigger states can spend up to Rs 70 lakh on their campaign, up from Rs 40 lakh in 2011. In the 2009 elections, it was Rs 25 lakh.
The 2014 Lok Sabha elections will see the introduction of "None of the Above" (NOTA) option in voting, which came into vogue in the assembly elections a few months ago.
Asian stocks edged higher on Thursday, 6 March 2014, as telecommunications companies led gains. Key benchmark indices in Singapore, Japan, South Korea, Indonesia, Taiwan and Hong Kong were up 0.07% to 1.09%. China's Shanghai Composite fell 0.1%.
China's Finance Minister Lou Jiwei today, 6 March 2014, said economic growth below the government's target is acceptable, with employment, not the exact level of expansion, being key. China's Premier Li Keqiang yesterday, 5 March 2014, kept China's annual growth target unchanged at 7.5% for 2014.
Trading in US index futures indicated that the Dow could advance 15 points at the opening bell on Thursday, 6 March 2014. US stocks finished a choppy trading day on Wednesday generally lower with blue-chips falling the most, as investors reacted mildly to mostly disappointing economic reports.
US companies added 139,000 workers in February, fewer than the market estimates, a sign that employers were waiting for a pickup in demand before boosting headcount, a report from the ADP Research Institute in Roseland, New Jersey showed on Wednesday.
Separate data indicated that service industries in the US expanded in February at the slowest pace in four years, reflecting a plunge in hiring that shows the biggest part of the economy is struggling as harsher weather weighs on consumers and businesses. The Institute for Supply Management's non- manufacturing index slipped to 51.6 in February from 54 the previous month.
The Federal Reserve said the economy in most regions grew last month even as harsh winter weather impeded hiring, disrupted supply chains, and kept customers away from stores and auto dealerships. Eight of the Fed's 12 districts "reported improved levels of activity, but in most cases the increases were characterized as modest to moderate," the central bank said in its Beige Book business survey.
Federal Reserve Chair Janet Yellen vowed on Wednesday to do all that she can to boost the US economy that is running well short of the central bank's objectives. "The economy continues to operate considerably short of these objectives" of maximum employment and stable prices, Yellen said according to prepared remarks at a swearing-in ceremony at the central bank in Washington. "The economy is stronger and the financial system is sounder," added Yellen, who succeeded Ben Bernanke on February 1. "We have come a long way, but we have farther to go."
"Too many Americans still can't find a job or are forced to work part-time," Yellen said on Wednesday, underscoring her long-standing focus on the troubled labor market. "I promise to never forget the individual lives, experiences and challenges that lie behind the statistics we use to gauge the health of the economy," she said. "When we make progress toward our goals, each job that is created lifts this burden for someone who is better equipped to be a good parent, to build a stronger community, and to contribute to a more prosperous nation."
Turning to Wall Street reforms, Yellen said the Fed will move forward "quickly and responsibly" to complete the work that remains to safeguard the financial system.
Richard Fisher, president of the Federal Reserve Bank of Dallas, on Wednesday said he was concerned about "eye-popping levels" of some stock market metrics, and said the central bank has to monitor the signs carefully to make sure another bubble isn't forming. In his speech in Mexico City, Fisher said some indicators like the price-to-projected forward earnings, price-to-sales ratios and market capitalization as a percentage of GDP, are at levels not seen since the dot-com boom of the late 1990s. He noted that margin debt is pushing up against all-time records. "We must monitor these indicators very carefully so as to ensure that the ghost of 'irrational exuberance' does not haunt us again," Fisher said. While a few Fed officials have mentioned unease about stock prices, Fisher's comments are the most pointed to date. Fisher did not spare the bond market, saying that narrow spreads between corporate and Treasury debt "reflect lower risk premia on top of already abnormally low nominal yields." Fisher is a voting member of the Fed's monetary policy committee this year. He has been a strong opponent of the Fed's latest round of asset purchases.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion.
In Europe, a monthly meeting of the Governing Council of the European Central Bank (ECB) is scheduled today, 6 March 2014, in Frankfurt to decide euro zone interest rates.
A two-day meeting of Bank of England's Monetary Policy Committee (MPC) ends today, 6 March 2014, to decide interest rates in UK. Policy rates are expected to remain unchanged at record low. The UK's central bank slashed interest rates to record low of 0.5% at the height of the financial crisis in 2009.
European Union leaders will consider repercussions for Russia at an emergency meeting today, 6 March 2014, on the Ukraine crisis, after Russia's foreign minister fended off a US effort to ease tensions in the Crimean peninsula. Western nations are threatening Russia with sanctions over its military intervention in Crimea while pursuing diplomacy in an effort to defuse the situation.
Source:- business-standard.com
February Us Steel Imports Expected To Remain Elevated: Commerce Data
February steel imports are expected to hold at elevated levels seen in January, which was already a near 27% boost from December, according to Department of Commerce data that was updated Tuesday.
The US had 2.9 million mt of steel products licensed to be imported in February, up nearly 1% from 2.88 million mt in January. In December, the US imported 2.27 million mt of steel products, finalized Commerce data says.
Factoring in February import licenses, US steel imports in the first two months of 2014 are expected to total 5.78 million mt, up 24% from 4.65 million mt imported in the same two-month period a year ago.
Plate products are expected to have spiked in February, while rebar and wire rod imports apparently dropped month on month.
In February, carbon and alloy cut plate imports are slated to jump 69% to 97,447 mt, comparing February import licenses to preliminary Census Bureau data for January. At the same time, coiled plate imports could have grown 18% to 158,140 mt. Much of the rise in coiled plate imports can be attributed to the 41,608 mt of Indian plate licensed for February, which would be the first shipment from India since February 2013.
After surging 168% in January, US rebar imports are expected to decline 58% in February to 81,121 mt. Licensed wire rod imports of 87,873 mt also represent a 32% reduction in imports month on month.
Import licenses for carbon and alloy semi-finished steel rose 24% to 846,033 mt in February. Brazil, the largest exporter of semi-finished steel products to the US in January, increased its shipments of semis by 32% to 346,657 mt. The UK, which does not typically export much semi-finished steel to the US, had 107,572 mt licensed for February, up from 74 mt in January.
The most imported finished steel product in February was Oil Country Tubular Goods, with 275,659 mt licensed, but this is down 7.4% from January's preliminary count.
Imports from Brazil are expected to be up 23%, while imports from Russia apparently rose 7%. South Korean steel shipments to the US dropped nearly 8% month on month, while licensed steel products from Canada and Mexico dropped 18% and 12%, respectively.
The American Iron and Steel Institute reported that finished steel import market share year to date has been 25%.
Source:- platts.com
Matter remanded to identify whether assessee was a contractor or developer for deductions under sec.
IT: Where assessee carrying on development work in respect of water supply and sewerage system of municipal authorities, claimed deduction under section 80-IA which was rejected on ground that assessee was executing only 'work contract', since it was not clear from records as to whether assessee fell under category of 'contractor' or a 'developer', impugned order was to be set aside and, matter was to be remanded back for disposal afresh
Refiners Eye Better Oil Deal Terms On U.S. Boom: Corporate India
India, Asia’s second-biggest energy user, is in talks with Saudi Arabia and Kuwait for better terms on oil contracts as surging U.S. output frees up supplies.
Hindustan Petroleum Corp. (HPCL), India’s third-largest state refiner, is seeking to at least double the interest-free credit period for crude purchases from Saudi Arabia and Kuwait to 60 days, B.K. Namdeo, the company’s refineries director, said in Mumbai. Mangalore Refinery & Petrochemicals Ltd. (MRPL) wants price discounts for agreeing to contracts that are more than 10 years long, according to Managing Director P.P. Upadhya.
“Discussions are going on, and we expect the extended credit period to be reflected in the new contracts from April 1,” Namdeo said. “There is a surplus in the market, and India should take full advantage of the situation.”
A shale-oil boom in the U.S., the world’s biggest consumer, has pushed crude production to the highest in almost 26 years, leading the country to cut imports. In response, some of the biggest Middle East producers are turning to Asian nations to lock in buyers as the easing of sanctions on Iran brings more oil into the market.
“Deals between Indian refiners and countries in the Middle East are best viewed as a security of supply effort,” said Abhishek Kumar, a London-based energy and modeling analyst at Interfax Europe Ltd.’s Global Gas Analytics. “Countries like Saudi Arabia and Kuwait are as much concerned about competition from Iran as from the U.S.”
Credit Terms
Indian Oil (IOCL) Corp., the nation’s biggest refiner, is in talks with some Middle East suppliers, including Saudi Arabia and Kuwait, to increase the credit period for crude purchases to 60 days, its Finance Director P.K. Goyal said in an interview in New Delhi yesterday. Iraq, the company’s biggest crude supplier, started offering 60-day credit from January, he said.
Iran currently gives Mangalore Refinery and Mumbai-based Essar Oil Ltd. 90-day credit.
“Until some years back, Saudi Arabia used to give us better payment terms, which was later stopped,” said B.K. Datta, Mumbai-based director of refineries at Bharat Petroleum Corp., the nation’s second-biggest state refiner. “It will be good if payment terms are relaxed once again.”
Kuwait Petroleum officials couldn’t immediately be reached to comment on potential changes to payment terms. Saudi Aramco declined to comment.
Indian state-run refiners sell fuels below their production cost to help the government curb inflation. While they are partly compensated by the government, subsidies are often delayed, forcing the oil processors to borrow money.
Working Capital
“Longer credit periods from the biggest crude suppliers will help the refiners reduce their working capital loans, which in turn will bring down interest charges,” said Dhaval Joshi, a Mumbai-based analyst at Emkay Global Financial Services Ltd. “This is crucial, especially because the compensation provided by the government is not regular and takes time to come.”
Oil companies rose in trading today in Mumbail. Bharat Petroleum increased as much as 3 percent to 399.20 rupees, the highest since May 2013. Hindustan Petroleum gained as much as 3.8 percent, Indian Oil, 2.2 percent, and Mangalore Refinery, 3.5 percent.
Imports of Iranian crude by countries including China, Japan and India rose by 100,000 barrels a day in January to 1.32 million barrels as a deal easing sanctions over Iranâ??s nuclear program took effect, the International Energy Agency said in its monthly oil market report released Feb. 13. Six world powers including the U.S. agreed to ease sanctions on Iran in November in return for curbs on the country’s nuclear program.
“Negotiations between Iran and P5+1 may result in the lifting of the ban on petroleum products from Iran, which is certainly not ideal for countries like Saudi and Kuwait,” Kumar said. “Therefore, they are keen on long-term contracts with Asian buyers prior to the lifting of sanctions on Iran.”
India, which imported about 185 million metric tons (3.7 million barrels a day) of crude in the year ended March 2013, gets about 63 percent of its requirement from Middle East suppliers including Saudi Arabia, Kuwait, Iraq, Iran, the United Arab Emirates, Qatar, Oman and Yemen, according to data from India’s Ministry of Oil.
Saudi Arabia is the biggest supplier, followed by Iraq and Kuwait, together making up 43 percent of the South Asian economy’s total oil imports, according to the oil ministry.
India Jewelers To Protest Gold Import Curbs
India's gem and jewelry industry would launch a one-day strike next Monday to protest against a government clampdown on gold imports that has hurt sales and threatened the livelihood of thousands of poor artisans.
The government has raised the import tax on gold to 10% from 2% in 2012 and mandated that importers keep aside 20% of any imported gold for re-export. Gold supplies in India, which imports nearly all of its gold needs, have virtually dried up as a result.
The one-day strike by the industry is the first since jewelers went on a 20-day strike in March 2012 when the government had doubled the import tax and imposed a tax on manufacture of jewelry.
"We want the harassment by government agencies to end," said Surendra Mehta, secretary of India Bullion and Jewellers Association Ltd, a leading industry body. "The government should reduce the customs duty and speedily clear the imported gold."
While the restrictions have helped to bring down the current-account deficit by reducing supplies, but the country has lost its position as the top gold consumer to China last year.
Indian industry officials say that in particular the rule on setting aside 20% of any imported gold for re-exports has hurt supplies as the government doesn't have sufficient warehouse and other infrastructure required for regulation.
"We demand that the government should review this rule at once as our business is down by 90%," said Mr. Mehta. "Otherwise, we won't be able to sustain in the jewelry business."
The rule on re-exports was introduced in August, days after the import tax was raised.
"There is a gold control regime now in place. It has pushed back the industry by 50 years," said Haresh Soni, chairman of All India Gems and Jewellery Trade Federation.
Indian officials have also started verifying gold stocks of traders to ensure their inventories match bank records, a move that has compounded red tape for the industry.
Mr. Soni said jewelry artisans have started leaving the local industry and migrated to Singapore and Dubai in search of employment.
He said the government ought to place curbs on things such as luxury cars rather than solely target the gold industry.
Finance Minister P. Chidambaram has hinted that the government would review the current restrictions on gold imports, but no concrete measures have come through. India's current-account deficit is estimated to have more than halved to around $31 billion during the first nine months of this financial year.
Source:- online.wsj.com
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