Thursday, 3 April 2014
ITAT deletes sec. 40(a)(ia) disallowance as TDS was deposited by assessee before due date of filing
No Dismissal of appeal by CIT(A) in haze merely due to grant of few adjournments by AO on insistence
Sampling isn’t the perfect method to decide nature of transactions; HC sets aside sales tax assessme
DVO's report can be used to initiate proceedings but additions can't be made solely on basis of such
No revocation of trust's registration for alleged receipt of capitation fee without any corroborativ
Payment for transponder service is ‘royalty’; ITAT refers Explanation 6 to sec. 9(1)(vi) to interpre
Best judgment assessment under service tax isn’t akin to ex-parte assessment
Ex-director wasn't liable to compensate co. under liquidation as he had resigned long before appoint
TPO couldn't consider profitability at entity level while determining ALP of a particular product, s
Sale of products of member-employee by society isn't collective disposal of labour; no sec. 80P reli
Cenvat credit denied as suppliers were not engaged in manufacturing activity and were issuing fake i
RBI lays additional guidelines for banks on Gold Metal Loans to curb instances of fraud by jewellers
CBDT releases Central Action Plan for departmental officers for 1st Quarter, 2014-15
Asia Naphtha-India Essar Oil Sells 55,000 T To Vitol April Exports Up
India's Essar Oil has sold around 55,000 tonnes of naphtha to Vitol at about $35 a tonne over Middle East quotes on a free-on-board (FOB) basis, traders said on Thursday.
This brought Essar's total April exports to about 90,000 tonnes, its highest monthly volumes since January based on Reuters data.
The cargo is scheduled for April 19-23 loading from Vadinar in western Gujarat state.
Essar Oil usually sells naphtha in 35,000-tonne lots although it offers larger lots of 50,000 to 55,000 tonnes from time to time.
Naphtha sentiment this week however is slightly weaker than last due to largely muted spot demand from South Korea as most of the buyers are covered for first-half May.
Traders said buyers will be scouting for second-half May cargoes soon, but are waiting for the right time in view of the current firm premiums.
Source:- in.reuters.com
India Soymeal Exports To Iran Hit As Sanctions On Tehran Ease
India's near-monopoly in soymeal exports to Iran has been diminishing and exports could drop by nearly a third as Tehran's nuclear deal with the West paved the way for rival south American suppliers to boost their trading with the oil-rich country, industry officials said.
The south Asian country's total soymeal exports would drop due to lower purchases by Iran in the 2013/14 year ending Sept. 30 and force Asia's biggest soymeal exporter to rationalise prices for other buyers like Japan and Vietnam.
"Iran has emerged as the largest buyer of soymeal in the recent past, mainly due to sanctions from the West and barter trade opportunities with India in rupee terms," Dinesh Shahra, managing director of Ruchi Soya Industries Ltd, India's biggest soybean processor, told Reuters.
"With Iran and west reaching to some sort of settlement, Iran has opened up doors for other destination. This has left Indian meal with huge premiums having very limited buyers even in Iran," Shahra said.
India's soymeal exports to Tehran rose fourfold in just three years to 2012/13. But in the current year exports to Tehran are likely to drop by 30 percent from last year's record 964,255 tonnes, Shahra estimates.
The landmark deal struck between the Islamic Republic and six world powers in November eased some of the sanctions on trade with Iran that had slashed the OPEC member's oil exports by more than half and narrowed its options to secure food and agriculture goods to just a few countries.
The sanctions had forced India to trim oil purchases from Iran, but it remained a loyal and large customer. In 2012 as sanctions stalled dollar payments, it started settling part of its oil debt in rupees and Iran was using those to buy goods from India.
That trade in rupees gave India an edge over other soymeal suppliers such as Argentina and Brazil who do not have such huge debts with Tehran and quickly the south Asian country established a near-monopoly in exports.
Iran's difficulties in securing soymeal from other producers due to the sanctions also prompted Indian exporters to seek hefty premiums over global prices, sometimes as high as 20 percent.
"The premium needs to be rationalised or we will lose share to other suppliers," said Rajesh Agrawal, chief co-ordinator at the Soybean Processors' Association of India (SOPA), a trade body.
On Thursday, India was quoting soymeal at $620 per tonne free-on-board basis, compared with $580 for rival south American supplies.
But now reducing the premium quickly is difficult as soymeal availability is stretched due to a drop in soybean supplies.
"Farmers are slowly releasing soybeans in the market due to lower production. Without a substantial rise in soybean supplies, soymeal prices won't come down," Agrawal said.
India's soybean output in 2013/14 is estimated to have fallen by 4.4 percent from the previous year to 10.23 million tonnes after heavy rains damaged the crop.
The hefty premium, sometimes as high has $90 per tonne, is forcing buyers to other destinations, said Shahra of Ruchi Soya.
In February, India's soymeal exports to Iran plunged 63 percent from a year earlier, while total exports during the month dropped 68 percent, according to SOPA data.
"As Iran is making fewer purchases, we need to attract traditional buyers like Japan, Vietnam and Indonesia by offering soymeal at competitive price," said an oil miller based in central Indian city Indore.
Source:- in.reuters.com
Exp. on replacement of chamber assembly rightly held by appellate authorities as current repairs: HC
CCI approved of proposed combination of two PVC producers as it wouldn't have significant effect on
Tambangraya To Increase Exports To India
Coal miner PT Indo Tambangraya Megah (ITMG) expects to see a shift in its export market, with higher sales to India forecast this year as sales to other countries remain flat.
ITMG marketing director Hartono Widjaja said India would remain as one of the publicly listed company’s three main export destinations, along with China and Japan.
“However, we think that India will play a bigger role in our export composition because demand keeps growing there, but the country’s production capacity does not seem to be able to meet it,” he told reporters during a press conference on Wednesday.
ITMG is looking to sell a total of 29.7 million tons of coal in 2014, up from 29.1 million tons booked last year. Exports to India are expected to make up more than 9 percent of the sales target.
It attributed India’s higher needs to its thriving business and the depreciation of the rupee, which might spur coal imports.
It estimates that India’s thermal coal imports will surge to 148 million tons from 136 million tons recorded in 2013.
Last year, ITMG — which is part of Thai energy firm Banpu Group — sold 29.1 million tons of coal, 7 percent higher than 2012. About 8.6 percent of the sales, or 2.5 million tons, went to India. China accounted for 27.8 percent of the figure with Japan at 15.8 percent.
India’s bigger contribution this year, Hartono said, would be caused by relatively flat growth in China. In a business presentation, ITMG noted that exporters would see greater competition from China’s own suppliers.
Meanwhile, ITMG president director Pongsak Thongampai said that he expected global coal prices to rebound in 2014 to around US$80 or $85 per ton. “Global supply will decline because companies may reduce their production due to soaring costs,” he said.
ITMG itself predicts that its average selling price will stabilize around $75 per ton in 2014.
To support its operations, the company is setting aside $86 million of its internal reserves for capital expenditure (capex). ITMG finance director Edward Manurung said that most of the capex would be used to improve infrastructure facilities at all of its mines.
Currently, ITMG operates six mines in Central Kalimantan, East Kalimantan and South Kalimantan.
According to Edward, ITMG is looking to acquire new mines, but no decision has been made regarding the targeted mines. It is also planning to develop a coal-fired power plant, with state power firm PT PLN as its principal customer.
“We may construct the plant ourselves, partner with a third party to form a joint venture or acquire an existing power firm. We are open to all options,” he said.
He did not provide details on the plant’s capacity, but said that it would be higher than the 2.7 megawatts produced by its power plant in Bontang, East Kalimantan. The current plant is used to supply power for its internal activities.
Meanwhile, during its annual general shareholder’s meeting, ITMG decided that it would disburse $195.91 million in dividends, at Rp 1,989 (17 US cents) per share.
The amount is equal to 85 percent of its 2013 net profits, which stood at $230.48 million. The dividend payment is scheduled to take place on May 14.ITMG’s shares closed at Rp 24,850 on Wednesday, up 0.4 percent on the day before.
Source:- thejakartapost.com
India: Curbed Shipments To Hurt Onion Exports By Over 28%
India's onion export this fiscal is set to fall by more than 28% to 1.4 million tonne (mt) from 1.8 mt in 2012-13. This sharp fall is mainly attributed to curbs on exports put by the government in the August – November period last year for improving domestic supply.
According to official data, the country exported more than 1.3 mt of onions till the middle of March and in the last two weeks of current fiscal, more than one lakh tonne of the key agricultural commodity would be shipped.
The total value of onions exported in April–March 2014 had been more than Rs 30 billion. India, the second-largest onion producer in the world, had shipped 1.8 million tonnes of onions, worth of Rs 22.94 billion, in 2012-13.
The latest data indicates that against a monthly shipment of more than 1 lakh tonnes achieved during 2013-14 , the country could export only about 23,000 tonnes in September last year and the shipment picked up pace only in December, 2013, after the government stated to reduce the minimum exports price (MEP).
“The export curb imposed last year pulled down the overall shipment of onion from the country,” a Nafed official told FE.
However, with an expectation of a bumper summer crop, which caters to about 50% to 60% of the domestic demand, exports are expected to increase in next fiscal, the official said.
Due to decline in rabi or summer production, retail prices rose to as high as Rs 90 per kg in many cities across the country in September last year which forced the government to import onions and hike the MEP.
The government imposed a higher MEP on onions back in September 2013 at $ 900 per tonne and then it was hiked to $ 1,100 a tonne for putting a curb on exports and boost domestic supplies. In December 2013, the MEP was reduced to $150 per tonne.
Source:- freshplaza.com
India: Reliance On Timber Imports Of Concern
India has been meeting its growing demand for wood products such as plywood, sawnwood and pulp and paper through imports as domestic industries are inadequate to meet the growth in demand but the dependence on imports is of concern. According to the National Research Centre for Agro forestry (NCRA), the country imported six million cubic metres of timber last year.
NCRA data suggests India has 23,220 saw mills, 2,562 large and small plywood mills, 660 pulp and paper mills but says most are operating at only 40 per cent of their capacity.
The NCRA says the main reason for the inadequate supply of raw materials is that a high proportion of logs come from farmers and land owners which, under the present regulations, have little incentive to produce wood raw materials.
In an effort to boost agro-forestry output a National Agroforestry Policy (2014) has been drafted which, say analysts, has the potential to revive the agro-forestry sector.
Currently small farmers avoid agro-forestry production because of unfavourable regulations on felling and transporting of farm grown trees in the Indian Forest Act. The Act restricts felling and transportation of trees grown even on private farmland, especially of those species which are found in the nearby forests, a measure aimed at reducing illegal felling.
In addition, unlike the agriculture sector, the agro-forestry sector lacks an institutional insurance facility. The new policy addresses this and for the first time promises risk coverage to farmers practicing agro forestry against theft and natural calamit ies such as cyclone, storm, floods and drought.
The policy calls for farmers to be provided with soft loans. Government estimates suggest that the policy will help increase the area under agro forestry from 25.32 million hectares to 53 million ha India‘s imports of wood and wood products continue to grow with firm demand from manufacturers
Source:- ihb.de
Weak Rupee Drags On Indian Fruit Imports
Although the Indian rupee has made gains this month, the sharp devaluation of the currency this past year has taken its toll on importers.
Fresco Fruits N Nuts managing director Manish Sharma of New Delhi said his company has slashed imports by around 50% in response to high prices and weak currency.
“This year the pricing for any product, whether you are talking about nuts or fruits, is very high. Last year we purchased apples starting from US$19 to US$24 from China. This year the same product is quoting at US$23.50 to US$30. The price has gone up and the rupee’s value has gone down, so we see a double impact on the product,” he told .
The rupee closed at 0.0167 to the U.S. dollar yesterday, down 9% year on date. At its lowest this year, the rupee dipped to 0.01467 to the dollar in September, according to XE.com.
For produce distributors such as Sharma, poor trade conditions have meant a greater focus on domestic products.
“Importers are surprised. After buying such an expensive product, the market is bad. Importers are losing money, especially for fruit products. To sell a container is very difficult at the moment,” he said.
Sharma described a significant impact on imported apples, almonds, pistachios and citrus, noting India’s limited buying power for high-priced, foreign goods.
“The purchasing power goes down and people don’t want to step in and buy products like apples,” he said.
Source:- freshfruitportal.com
Extend Anti-Dumping Duty On Raw Silk Imports From China
To boost domestic silk production, Assocham has urged the government to extend anti-dumping duty on raw silk imports from China, which have grown by 7 per cent during the last 12 years, till December 2015.
The Government had imposed antidumping duty on imports of Mulberry Raw Silk of 2A grade and below from China in January 2003, which remained in force until January 2008 and was subsequently extended till January 2014 after a sunset review.
"Silk import restrictions have two facets; one is concern of sericulture farmers opposing cheap Chinese raw silk imports threatening their livelihood, while the other issue is of the weaving community which requires raw silk to meet the rising demand," Assocham Secretary General D S Rawat said.
"There is a need to strike a balance between these two warring sections by periodically reviewing the import policy for raw silk, taking into account balanced interests of both sericulturists and export manufacturers," he emphasised.
India's silk industry provides jobs to over 7.6 million people across 51,000 villages operating over 3.28 lakh handlooms and over 45,800 powerlooms with over 8.14 lakh weavers, an Assocham study found.
"Clocking a compounded annual growth rate ( CAGR) of about eight per cent, India's total silk imports rose from $124 million in 2000-01 to about $312 million in 2012-13, with raw silk alone comprising about 73 per cent of these imports worth over $227 million," it pointed out.
China is biggest exporter of raw silk to India accounting for almost 99 per cent of exported raw silk worth $224.5 million as of 2012-13. Raw silk imports from China grew at a compounded nnual growth rate of 7 over per cent during 2000-01 and 2012-13.
To boost domestic silk production, Assocham has suggested that state governments promote tie-up of weaver cluster with raw silk production units for establishing close linkage between forward and backward sub-systems.
Besides, the state governments should also facilitate establishment of weaver centers to empower and enlighten the producers with latest information on research and development, technological advances and new designs related to weaving techniques.
Source:- economictimes.indiatimes.com
Fda Bans Imports From Canadian Drugmaker Apotex's India Plant
The U.S. Food and Drug Administration banned imports from Canadian drugmaker Apotex Inc's manufacturing plant in India for not complying with quality standards, the latest in a series of sanctions against medicines produced in India.
Drugs made at the plant, based in Bangalore, will be detained without physical examination because the factory did not meet the FDA's good manufacturing practices, the agency said on its website on Wednesday.
The ban excludes Riluzole, a drug used to treat amyotrophic lateral sclerosis, commonly called Lou Gehrig's disease. (r.reuters.com/pug23v)
The ban on Apotex's factory comes after manufacturing plants of top Indian drugmakers like Ranbaxy Laboratories Ltd (RANB.NS), Wockhardt Ltd (WCKH.NS) and Sun Pharmaceutical Industries Ltd (SUN.NS) were barred from exporting to the United States due to quality concerns.
The FDA has stepped up scrutiny of medicines made in India, which supplies about 40 percent of generic and over-the-counter drugs to the United States.
FDA Commissioner Margaret Hamburg in February said the agency was not unduly targeting drug companies in India, but "undertaking our required regulatory activities" needed to protect public health in the United States.
Apotex currently makes about 260 generic drugs, or copies of name-brand pharmaceutical products, that are sold in Canada and exported to more than 115 countries. The company's sales exceed C$1 billion a year, according to its website.
Ontario-based Apotex was not available to comment outside of regular business hours and calls to its Bangalore research facility went unanswered.
Source:- in.reuters.com
Rupee Weakens By 32 Paise To 60.21
The rupee snapped its two-day gains against the American currency by slipping 32 paise to 60.21 per dollar on renewed dollar demand from banks and importers in view of firm dollar in the overseas market.
However, the fall in rupee value against the dollar was restricted due to persistent foreign capital inflows into the equity market.
The rupee opened weak at 59.93 per dollar against the previous close of 59.89 per dollar at the Interbank Foreign Exchange (Forex) market. It moved in a range of 59.83-60.27 per dollar during the afternoon trade.
Market participants will be keenly watching PMI numbers scheduled to be released today.
Abhishek Goenka, Founder and CEO of India Forex Advisors, said: "The Indian rupee was seen retreating after nudging towards its highest levels in eight months as importers rushed in to buy dollars, while intervention by the central bank also seemed a plausible reason giving support to the domestic currency. "
In the New York market, the dollar rose against the euro yesterday after the US private sector added the most jobs in three months, setting the stage for Friday’s broader read on employment and its implications for rate hikes next year.
Call rates, bonds
The overnight call money rate, interest rate at which banks borrow money from each other to overcome short-term liquidity mismatches, opened higher at 9 per cent against the previous close of 8.15 per cent
The yield on 10-year benchmark 8.83 per cent government bond, maturing in 2023, opened flat from the previous close of 8.96 per cent.
Source:- thehindubusinessline.com