Wednesday, 19 March 2014
HC grants stay on demand as it required an enquiry into assertion of assessee that it was exempt fro
Assessee-co. couldn’t set-off loss from share trading business with other business income
Remission application rejected as no reasonable cause was shown by dealer for not taking VAT Registr
Commission paid rationally by a distributor to its sub-distributor was an allowable business expense
Matter remanded as addition was made by AO without verifying details of sum incurred on construction
Condonation of delay on ground of unawareness not allowed as assessee was involved in several ongoin
BIFR's direction to wind-up sick co. ended rehabilitation process, yet recovery proceeding could be
Business income can’t be taxed in India if there is no PE in India or if no income is attributable t
India Allows More Banks To Import Gold In Easing Of Curbs
India has allowed five domestic private sector banks to import gold, in what industry officials say could be a significant step towards easing of tough curbs on the metal imposed last year to cut the country's trade deficit.
The move could boost gold supplies and bring down premiums for the metal in the world's second-biggest consumer after China.
The Reserve Bank of India (RBI) has allowed gold imports by HDFC Bank (HDBK.NS), Axis Bank (AXBK.NS), Kotak Mahindra Bank (KTKM.NS), IndusInd Bank (INBK.NS) and Yes Bank (YESB.NS), officials at the respective banks told Reuters.
Two industry sources confirmed the names of the banks. They and the bank officials did not want to be named as they are not authorised to speak to media.
India enforced the so-called 80/20 rule in July, making it mandatory to export a fifth of all gold imports. Under that rule, only six banks and three state-run trading agencies that had facilitated export of gold or jewellery in the past three years were allowed to import. The six banks were mostly state-run lenders.
The RBI has now permitted gold imports within prescribed limits by the private banks even though they had not facilitated any exports of metal or jewellery in the past three years.
"They have decided upon limits on quantities depending upon the number of (current) customers you have for exports," said Shekhar Bhandari, executive vice-president of Kotak Mahindra Bank.
The RBI did not immediately respond to a request for comment.
The move to allow more banks to import gold may raise shipments to about 40 tonnes per month from more than 20 in February, industry officials said. India used to ship in as much 70 tonnes per month, the biggest import after oil that had pushed the current account deficit (CAD) to a record high in the year ended March 2013.
"Supplies will be smooth from now and I think premiums will come down," said Haresh Soni, chairman of the All India Gems and Jewellery Trade Federation. "This looks like just a beginning to the further easing of 80/20 rule."
NEW GOVERNMENT, NEW RULES
India used to be the No. 1 buyer of gold before the levy of a record 10 percent import tax in stages and other restrictions led to a sharp cut. Premiums hit a record of $160 an ounce in December, triggering smuggling and forcing industry officials to call for a repeal of the curbs.
Further major relaxations of the curbs are likely only after a new government is formed around June, officials involved with policymaking said.
Finance Minister P. Chidambaram said earlier this month the gold import duty could be revisited only after the final CAD numbers are out.
The CAD, final figures for which are expected to come in the first week of June, is likely to fall to less than $40 billion for the fiscal year ending March 31 from its record $88 billion in the previous year.
By that time it will also be clear who will form the government, after India's general elections that start in April. The main opposition Bharatiya Janata Party - the favourite to win the polls - has already spoken against the gold import restrictions.
Its prime ministerial candidate Narendra Modi has said that any action on gold should look at the interests of the public and traders, not just economics and policy.
A senior policy official aware of the deliberations said the government and the central bank wanted to gradually remove the curbs as falling gold prices are expected to cut the CAD by $10-$12 billion.
"We don't believe in artificial kind of compression of current account deficit," the official said. "Since it was an extraordinary kind of situation and it was a policy option available, we tried that."The official estimates India's gold imports this fiscal year to be around 800-850 tonnes, lower than last year's 950 tonnes.
Source:- in.reuters.com
Prima facie case in favour of assessee doesn't justify 100% stay as it would require other reasons a
Russian Grain Export Forecast Seen Higher
Russian analytical firm SovEcon has raised its 2013/14 grain export forecast thanks to a weaker local currency and concern over Ukraine, it said on Monday. Turmoil in Ukraine, one of the world's key grain exporters via the Black Sea together with Russia, is supporting global commodities prices.
"The rouble's decline, higher global prices and possibly weaker competition from Ukraine cause strong support for (Russian grain) exports during the spring," SovEcon said. It has raised Russia's grain exports forecast to between 24.0 million tonnes and 24.4 million tonnes during the 2013/14 marketing season, which lasts until June 30. Previously SovEcon expected grain exports at 23.1 million tonnes.
Its wheat exports forecast was increased to 17.4-17.8 million tonnes from 16.5 million tonnes, while the maize (corn) exports estimate was raised by 300,000 tonnes to 3.8 million tonnes. The forecast for barley exports remained unchanged at 2.2 million tonnes. It said it expected Russia to export 1.5 million tonnes of grains per month in March and April, up from 1.3 million tonnes in February. SovEcon's estimate includes pulses and flour. The increase in global wheat prices has made Russian wheat more competitive on its traditional markets during recent weeks.
"This (factor) will allow Russian wheat exporters to continue to dominate the markets of Egypt and Turkey, the key for Russian wheat, and get into the markets of Western Africa (Nigeria, Senegal) and Morocco," SovEcon said. Additional demand from traders who are concerned over possible disruptions to supplies from Ukraine is also expected to support Russian wheat and maize exports.
It expects March maize exports to remain high at between 400,000 tonnes and 450,000 tonnes. The country has exported a record 2.3 million tonnes of maize since the start of October and by the end of February following a record harvest. Barley exports fell sharply in January and will remain at s low level until the end of the season as export resources in Russia's southern regions are dwindling.
Source:- brecorder.com
Push Exports To China To Reduce Trade Deficit: Montek
Deputy Chairman of the Planning Commission Montek Singh Ahluwalia Tuesday raised its concerns to China over 'unsustainable' trade deficit of $ 35 billion per year and viewed that it needs to be brought down by increasing India's exports to the country.
"I must, at this stage, mention the growing imbalance in our trade which is a cause of concern in India," Singh said in Beijing, addressing the third Strategic Economic Dialogue forum.
"Trade is an important indicator of economic cooperation and we are happy at the remarkable expansion that has taken place," he added, expressing hope that bilateral trade would reach the official target of $100 billion by 2015.
"We recognise that trade does not have to be balanced between each pair of countries.
"However, India's trade deficit over the last three successive years has been in excess of $35 billion per annum which is not sustainable," he said.
It needs to be reduced to sustainable levels by more exports from India to China, and also by China building manufacturing capacities in India for goods it currently export, Ahluwalia said.
Under Railways, India and China Tuesday agreed to pursue specific collaboration arrangements in heavy haul, station redevelopment and raising speed of existing trains in India.
Nodal agencies have been designated to work out implementation of modalities in this regard, a press release issued at the end of the talks on Tuesday said.
Highlighting India's competitive advantage in niche engineering products, IT-enabled services, cotton textiles and home furnishings, and pharmaceuticals, Ahluwalia said the two governments have a large role to play in pushing it up.
"I hope the Chinese government will help to provide our exports greater access to the market so that the target of $100 billion can be achieved in a more balanced manner," he said.
The bilateral trade touched $65.47 billion, a slight dip of 1.5 per cent year-on-year. The bilateral trade declined to $ 66.7 billion 2012 from around $74 billion in 2011.
Source:- smetimes.in
Plea not raised before ITAT that CIT(A) wrongly admitted additional evidence couldn't be raised befo
Variation in electricity consumption doesn't show involvement of any unexplained exp.
HC won't interfere against a tender floated by PSU unless its terms were discriminatory to evade an
Sum paid in cash of smaller denomination in lieu of currency of higher denomination is out of ambit
If assessee repays for cenvat credit utilized wrongly, he may take back original credit suo motu
HC denied to admit writ filed by Rajasthan Cricket Association as matter was in dispute before ITAT
CCI nods to combination of Essar Steel and Inox Air as it won’t affect competition in India adversel
HC directs CIT to examine assessee’s claim for setting off of interest income with interest payment
HC raps ITAT for bypassing TPO when he was dissatisfied with selection of comparables
India’S Iron Ore Export Slump: Not Necessarily A Bad Thing?
India’s iron ore exports saw a 27.6 percent slump at 12.6 million tons (MT) during the April-February period of the current fiscal year, and much of the drop is being attributed to the export duty.
The Federation of Indian Mineral Industries (FIMI), a mineral industries body, has said India, once the third largest exporter of iron ore, had exported 17.35 MT of the mineral in the corresponding period of the last fiscal year.
FIMI Secretary General R. K. Sharma was quoted in The Hindu as saying this was a “disturbing trend” since for some years now, India has been slipping in iron ore exports because of the contentious export duty. Agencies such as FIMI have been consistently asking the Indian government to withdraw the export duty on iron ore as well as on iron ore pellets.
FREE Download: 7 Metal Buying Strategies for 2014 (Base Metals, HRC, CRC)
Indian iron ore exports have also been hit due to mining bans in the Indian states of Goa and Karnataka, leading to a drastic fall in domestic production. The export duty had been increased to 30 percent on both types of iron ore, lumps and fines, in December 2012.
China has been the traditional export market for Indian iron ore, though the quantity has declined by 31 percent to 10.44 MT in April-February. China is followed by Japan, according to FIMI data.
With the poor response in the international markets and prices remaining weak, Goa has decided to halt the third phase of its iron ore e-auction launched last month.
FIMI has even forecast that this year’s iron ore exports would come down by over 20 percent to about 13.5-14 MT from 18.37 MT of 2012-13.
Silver Iron Ore Lining?
However, there could be a silver lining to the slump story of Indian iron ore exports. Experts here believe the country’s exports could have supplied seven years of domestic steel demand.
MetalMiner had reported on a research report by Credit Analysis and Research Limited (CARE) that had warned that India’s reserves were likely to last only 28 years if exports continued at the current rate.
Overall, India would have iron ore reserves that could last for about 38 years if exports are curtailed, according to CARE, but the continued export of fines could bring the reserve down by as much as a decade.
Iron ore mines on average produce about 35 percent of their overall production in the form of lumps (high-grade ore), while the rest is by way of fines (low-grade ore), which have fewer buyers in the Indian market.
Besides, the ore from Goa is very low-grade ore. Presently, along with this tourist state, low-grade iron ore (or fines) are being exported from states like Odisha, Jharkhand, Rajasthan and Madhya Pradesh.In the last two months, the Goa government has already auctioned over a million tons of iron ore, mined before the ban.
Source:- agmetalminer.com
'Prolonged Crisis In Ukraine May Hit India's Pharma Exports'
A prolonged Russia-Ukraine crisis will affect Indian pharma companies based in Ukraine, the Federation of Indian Chambers of Commerce and Industry (Ficci) said Tuesday
"If the situation continues, then it could have a bearing on the country̢۪s (Ukraine) exchange rate that would make the landed cost of Indian pharmaceuticals higher," Ficci said here after it surveyed representatives of leading Indian pharmaceutical companies based in Ukraine.
While recent developments in Ukraine have had no immediate impact on the businesses of Indian pharmaceutical companies, there have been reasons for concern mainly due to a recent devaluation of the Ukrainian currency - Hryvnia - against the US dollar, Ficci said.
An exchange rate of 8.20 Hryvnia to the US dollar in mid-December had dropped to 9.86 Hryvnia by the beginning of March, signalling a devaluation of 20 percent.
Ukraine is India̢۪s second largest trading partner in the Commonwealth of Independent States (CIS) after Russia. Exports of pharmaceuticals from India in 2012-13 were worth USD 154 million, which is about 30 percent of India's total exports to Ukraine.
In 2012-13, India̢۪s total trade with Ukraine was USD 3.18 billion.
Among Indian companies, Dr Reddy̢۪s is a significant exporter to the region, with about 20 percent of the company's revenues during fiscal 2013 coming from Russia and the CIS.
Source:- smetimes.in
Banks To Remain Open On Weekend To Facilitate Tax Collection
Bank branches will remain open for full day on March 29, 30 and 31 to facilitate tax collection.While March 29 is a Saturday, March 30 is Sunday and March 31 is the last year of financial year and is a public holiday in some parts of the country.
"The Chairperson, Central Board of Excise and Customs ( CBEC) has requested the Secretary Financial Services to issue instructions to have the banks open for full day on 29th, 30th and 31st March 2014 so that the efforts made for collections of revenue are reflected appropriately," an office memorandum said.
Bulk of the revenue is received at the end of the month, it said, adding banks need to facilitate electronic tax payment by assessees.
In the 2014 interim budget, the government has lowered the indirect tax collection target for the current fiscal by Rs 45,483 crore to over Rs 5.19 lakh crore.
Of this, over Rs 1.75 lakh crore and Rs 1.79 lakh crore is to be mobilised from customs and excise duty collection and about Rs 1.65 lakh crore from service tax.
Source:- economictimes.indiatimes.com