IT: Deduction of tax at source from any payment made for land acquisition on or after 1-6-2000 would be illegal and amount so deducted had to be returned to assessee
Monday 21 April 2014
HC stayed recovery proceedings till disposal of stay petition on payment of substantial duty by asse
CST & VAT: Where against assessment order assessee filed appeal before appellate authority belatedly along with application for condonation of delay and stay petition and in meantime he also filed writ petition, till disposal of stay petition, recovery proceedings to be kept in abeyance provided one-third of amount demanded was remitted by assessee
ITAT rightly remanded case to AO with a direction to decide on penalty after verdict of HC in quantu
IT : Where Tribunal finding that appeal against its order in quantum proceedings, was admitted by High Court, remanded penalty proceedings back to Assessing Officer with a direction to dispose of same subject to order passed in quantum proceedings, impugned direction issued by Tribunal being justified, it did not require any interference
Cleaning of residential premises not classifiable either as 'Cleaning service' or 'Maintenance servi
Service Tax : Cleaning of residential premises is not, prima facie, taxable under 'cleaning services' and same can also not be classified under 'Maintenance Service'
Cleaning or residential premises not classifiable either as 'Leaning service' or 'Maintenance servic
Service Tax : Cleaning of residential premises is not, prima facie, taxable under 'cleaning services' and same can also not be classified under 'Maintenance Service'
CLB can reverse an interim order where it find that it may create obstacles in functioning of co
CL : CLB has power to vacate interim order passed by it which related to functioning of company and might be an impediment in its business
ITAT deleted TP adjustment and remanded case to re-fix profit margin after considering DEPB benefit
IT/ILT: Where in transfer pricing proceedings, TPO made certain adjustment to assessee's AP in respect of export of bathrobes to AE, following order passed by Tribunal in assessee's own case relating to earlier assessment year, impugned adjustment was to be set aside and, matter was to be restored to file of Assessing Officer with a direction to recompute profit margin of assessee after taking into consideration DEPB benefit as a part of its turnover
CIT's order that order of AO was erroneous couldn't be questioned on grounds of possible different v
IT : Clause (i) of proviso of Explanation to section 115JA operates when an amount is withdrawn from reserve created but as per proviso adjustment could be made only when at time of creation of reserve or provision, such amount was duly accounted for by increasing book profits by said reserve or provision
Copper, Nickel Ease On Reduced Offtake
Copper and nickel prices eased by Rs 2 per kg on the local non-ferrous base metals market today due to reduced offtake from consuming industries.
Traders said reduced offtake by consuming industries and reports of weak global trend mainly led to decline in copper and nickel prices.
In the national capital, copper mixed scrap and nickel (4x4) were traded lower by Rs 2 each to Rs 432 and Rs 1,068-1,069 per kg, respectively.
Following are today's metal rates per kg:
Zinc ingot 115-121, nickel plate (4x4) 1,068-1,069 gun metal scrap 227, bell metal scrap 229, copper mixed scrap 432, chadri deshi 285.
Lead ingot 126, lead imported 124, aluminium ingots 148,Aluminium sheet cutting 149, aluminium wire scrap 151 and aluminium utensils scrap 148.
Source:- business-standard.com
HC quashed sec. 179 tax recovery notice as it related to later years in which co. was converted into
IT : Where company became public limited company vide certificate of incorporation dated 25-5-1992, notice under section 221 for recovery of dues of company for years 1995-96 to 1996-97 to assessee director of said company could not be sustained
Sc Allows Iron Ore Mining In Goa With Upper Limit Of 20Mt
The Supreme Court on Monday allowed mining in the top iron ore exporting Goa state with an upper limit of 20 million tonne per year.
The top court also asked the state government to constitute an expert panel and submit a report regarding capping of output and other issues, like dumping, within six months, a three-judge bench headed by justice AK Patnaik said.
The SC order states that the dumping outside mining lease is not permissible. However, it said the state government can decide the manner in which lease can be granted.
The Supreme Court had banned mining in all 90 mines in Goa from October 2012, due to investigations into alleged illegal mining operations. The total production coming out of Goa, before the ban came into existence, was around 45 million tonne (MT).
The order is significant for Sesa Sterlite , which is the largest private sector iron ore producer in India. Its iron ore business, earlier known as Sesa Goa, is based in Goa. Sesa Sterlite shares jumped 6.5 per cent to Rs 205 on the BSE, after the news.
Besides the production caveat, the apex court said there will be no grant of lease for mining around one km of national parks and wild life sanctuaries. The Ministry of Environment and forests will identify eco-sensitive areas around national parks within six months.
Source:- moneycontrol.com
Sensex, Nifty Surge To Record High; Sesa Gains
The Sensex and Nifty hit record highs on Monday as lenders such as Axis Bank rallied ahead of their financial results starting later this week, while strong gains in debt markets reduced concerns about potential losses in the sector's bond portfolios.
Sentiment also got a boost after the Supreme Court allowed resumption of mining in Goa, sending shares in miners such as Sesa Sterlite (SESA.NS) surging.
Overseas investors, who have pumped in nearly $4.8 billion into Indian shares so far this year, were net buyers worth 4.3 billion rupees ($71.20 million) on Thursday, snapping three days of a selling streak totalling 5.69 billion rupees ($94.21 million), exchange and regulatory data showed.
Still, analysts warned the stock markets were unlikely to sustain strong gains given the Nifty is already up 8.2 percent so far this year while caution is likely to prevail ahead of the outcome of the elections next month.
"We think markets will trade range-bound, and do expect profit-taking at higher levels. We have seen even FIIs have started booking profits. So, one should be careful in entering a position," said Suresh Parmar, head, institutional equities at KJMC Capital Markets.The Sensex closed 0.6 percent higher at 22,764.83.The Nifty ended 0.56 percent higher at 6,817.65.
Banking shares led the gains, with the sector's sub-index up 1.34 percent on hopes banks will show sturdier earnings when they start reporting their financial results later this week.
Concerns about potential mark-to-market losses in their bond portfolios were also calmed after the central bank fully sold the 200 billion rupees ($3.31 billion) worth of debt on offer on Thursday without any devolvements.
Axis Bank Ltd (AXBK.NS) rose 2.67 percent while ICICI Bank (ICBK.NS) gained 1.52 percent. Both the banks are set to report their earnings on Friday.
State-run lenders also gained, with State Bank of India ending up 2.72 percent.A ruling by the Supreme Court allowing mining from Goa of up to 20 million tonnes iron ores a year boosted miners. Sesa Sterlite (SESA.NS) rose 4.64 percent, its biggest single-day gain since Dec. 9, 2013.
Capital goods and auto stocks also gained sharply as dealers cited strong buying by foreign institutional investors. Larsen and Toubro (LART.NS) gained 4.2 percent while Mahindra & Mahindra (MAHM.NS) gained 3.6 percent.
Among other gainers, Natco Pharma Ltd (NATP.NS) gained 7.5 percent after U.S. Supreme Court Chief Justice John Roberts denied a request by Teva Pharmaceutical Industries Ltd (TEVA.TA) to stay a lower-court ruling in a patent case that favoured the developers of generic versions of Teva's multiple sclerosis drug.
Shares in AstraZeneca India (ASTR.NS) gained 4.3 percent after the Sunday Times newspaper reported Pfizer Inc (PFE.N) approached its parent AstraZeneca PLC (AZN.L) to propose a 60 billion pound ($101 billion) takeover.
However, shares in third largest software exporter, Wipro Ltd (WIPR.NS) plunged 6.8 percent after the company's IT revenue guidance was seen as below estimates by some analysts.
Source:- in.reuters.com
Turkey Aspires To Be Top Exporter In Carpet Sector
Exports of machine made carpets in Turkey surpassed the US$0.5 billion threshold in the first quarter of 2014, suggesting that a global top spot is likely according to the figures of Istanbul Textile and Apparel Exporter Association.
Turkey has become the second largest carpet exporter in 2013 with a $2.2 billion worth of exports, an all time record after China, which exports $2.4 billion of carpets annually.
According to the Association's figures, Turkey's machine made carpet exports increased by 9.9 percent from $497 million in first quarter of last year to $546 million in same period of 2014.
In 2014, exporters are setting their sights on $2.4 billion worth of exports to topple the reigning champion China - a feat achieved four years ago with the Netherlands and with Belgium two years ago.
Currently China leads the competition in the carpet market worths of $13.6 billion exports ,followed by Turkey, Belgium and India.
The sector accounted for 1.45 percent of Turkey's overall exports in 2013.
Source:- worldbulletin.net
Gems And Jewellery Exports Drop 9 Pc In Fy'13-14
Country's gems and jewellery exports fell by about 9 percent to USD 39.5 billion in 2013-14, reports media."Exporters were already facing a demand slowdown in the western markets and the imposition of curbs on gold imports are now acting as a double whammy," an industry expert said.
Gems and jewellery exports were at USD 43.34 billion in 2012-13, an official in the Ministry of Commerce and Industry said. Sector contributes about 15 percent of the country's overseas shipments, it said.
The government took steps last year to contain gold imports in a bid to narrow the current account deficit. It raised the import duty on the metal to 10 percent and made it mandatory for traders to export 20 percent of imported gold, creating a supply crunch in the domestic market.
A local supply shortage hit exports as well, with volumes declining on a monthly basis. The gems and jewellery export sector employs 1.5 million people.
The commerce ministry has asked the Ministry of Finance to relax curbs on gold imports.After registering growth of 21.8 percent in October, exports of gems and jewellery started contracting, with shipments down 22 percent in March.
Commerce and Industry Minister Anand Sharma had favoured a review of curbs on gold imports and said the restrictions were leading to smuggling.
Gold and silver imports dipped 40 percent to USD 33.46 billion in 2013-14. India's overall exports touched USD 312.3 billion in 2013-14, short of the target of USD 325 billion.
The current account deficit narrowed to USD 31.1 billion, or 2.3 percent of GDP, in April-December 2013 from USD 69.8 billion, or 5.2 percent of GDP, a year earlier, the Reserve Bank of India said on March 5.
Source:- smetimes.in
Nissan Motor India Overtakes Maruti Suzuki In Car Exports
Nissan Motor India has overtaken Maruti Suzuki to become the country's second largest car exporter with a 17 per cent increase in shipments in 2013-14. Hyundai Motor India continues to retain the top spot.
Nissan exported 1.18 lakh units for the financial year ended March 31, 2014, as Maruti Suzuki recorded a 16 per cent decline in exports to 99,832 units in 2013-14 from 1,18,857 units in 2012-13.
A major reason for decline in Maruti Suzuki's exports has been the change in the homologation norms in Algeria and several African countries signing a preferential import duty agreement with European companies. Cars from European manufacturers enter these markets with a 10-20-per cent lower duty than that imposed on Indian carmakers.
According to the latest figures compiled by the Society of Indian Automobile Manufacturers (SIAM), total car exports from India remained flat at 5.50 lakh units during 2013-14.
Hyundai Motor India, India's largest car exporter, saw sales falling by 10.2 per cent to 2.33 lakh units during the year from 2.56 lakh units exported in 2012-13.
Toyota Kirloskar Motor and Volkswagen India also recorded an increase in exports but this was on much smaller base. While Toyota' exports of passenger cars rose 16.31 per cent to 27,266 units, Volkswagen clocked a close to fourfold increase in shipments to 32,588 cars.
Nissan is anticipating a rise in exports in the next two years with the addition of Datsun. The company plans to export parts of Datsun to other emerging markets where the brand will make a debut soon.
The carmaker also exports a number of engine and body parts to over 14 countries, including the UK, Brazil, Mexico and the US.
Nissan began to export cars in 2010 from its Oragadam plant near Chennai and currently ships 85 per cent of its production to overseas markets. It exports fully-built cars such as Micra from Chennai, its strategic production hub for Africa and Europe.
The company has now started exporting completely knocked down kits of its sedan Sunny to Egypt. These kits from India would be assembled by the local Nissan subsidiary abroad.
Source:- businesstoday.intoday.in
India Govt Raises Import Tariff Value On Gold, Silver
The government on Wednesday hiked the import tariff value on gold and silver to $431 per 10g, $646 a kg, respectively, taking firm global cues. During the first fortnight of the current month, the tariff value on imported gold was fixed at $ 421 per 10g and silver at $644 a kg.
The import tariff value - the base price at which customs duty is determined to prevent under-invoicing - is revised on a fortnightly basis taking into account the volatility in global prices. The increase in tariff value on imported gold and silver has been notified by the Central Board of Excise and Customs, an official statement said.
In Singapore, gold prices on Wednesday ruled firm at above $1,300 per pounce and silver at $19.52 per ounce. In the national capital, gold price rose by Rs 130 to Rs 30,130 per 10g and silver fell Rs 300 to Rs 43,000 a kg. Due to government curbs, the country's total gold and silver imports dropped 40 per cent to $33.46 billion in 2013-14, as against $55.79 billion in the previous year.
Gold is the second largest import item for India after petroleum. The government had taken several measures to curb gold shipments to address the high current account deficit.
These measures include raising the import duty to 10 per cent on the metal and also made it mandatory for traders to export 20 per cent of the imported gold. The Commerce and Industry Ministry is pitching for easing of the gold import restrictions to boost gems and jewellery exports, which declined 8.82 per cent in 2013-14 to $39.52 billion.
Source:- metal.com
Rupee Weakens 6 Paise Against Dollar To 60.35
The Indian rupee is trading marginally weaker against the US currency on speculation that dollar demand will increase from importers planning to meet month-end payments, some dealers said.
However, some dollar sale by foreign banks during the day arrested further weakening of the local unit, dealers said.
At 2.32pm, the rupee was trading at 60.35, down 0.1% from the previous close. The unit opened at 60.31 against its Thursday’s close of 60.29. During intra-day trading, the rupee fell to a low of 60.41.
“The rupee is under pressure as oil and defence importers will demand the greenback to pay month-end bills,” said Amogh Moghe, a Mumbai-based currency trader at Mecklai and Mecklai. “Rising reserves will cap big losses in the currency.”
Most Asian currencies were trading lower. The Malaysian ringgit weakened 0.35%, the Thai baht shed 0.25%, the Indonesian rupiah fell 0.21%, the South Korean won fell 0.14% and the Taiwan dollar slid 0.12%.
The S&P BSE Sensex rose 0.73%, or 164.96 points, to 22,793.8 points, while the CNX Nifty soared 0.63%, or 43.2 points, to 6,822.60 points, new all-time highs for both indices.
The rupee has strengthened 2.43% this year as foreign portfolio investors bought $4.74 billion of local equities during the period.
The yield on India’s 10-year benchmark bond was trading at 8.822%, compared with its Thursday’s close of 8.853%. Bond yields and prices move in opposite directions.The dollar index, which measures the US currency’s strength against major currencies, was trading at 79.814, down 0.04% from the previous close of 79.847.
Source:- livemint.com
Rejection of exemption to trust would be limited to income earned from investment in non-specified s
IT : Provisions of section 12AA(3) relating to cancellation of registration inserted with effect from 1-10-2004 are not retrospective
Prior to 1-4-2011, interest was leviable even when credit was wrongly taken and was reversed before
Cenvat Credit : Prior to 1-4-2011, credit was recoverable with interest even if it was wrongly taken and reversed before use; and contention that 'reversal before use' amounted to 'not taking credit' was invalid as rule 14 itself provides for recovery of 'wrongly taken credit'
No addition if AO couldn't prove that some money was paid in excess of sale consideration specified
IT : Where in course of assessment, Assessing Officer enhanced amount of taxable capital gain, in view of fact that there was no material on record indicating that sale consideration in excess of amount mentioned in sale deed was paid and, moreover, Assessing Officer could not substitute amount of FMV declared on basis of valuation report given by registered valuer, impugned addition was rightly deleted by Tribunal
Input tax credit of expenditure incurred for business and non-business purposes to be apportioned ac
CST & VAT : Input tax credit pertaining to expenditure on radio-broadcast meant for advertising business as well as promotion of other non-business/religious purposes should be apportioned based on extent of time-slot used for said purposes
Addition on basis of DVO's report deleted as no material was found during search to indicate unrecor
IT : Where no material was found during search to indicate that assessee had not recorded expenses incurred on construction in books of account, addition of undisclosed income under section 158BB could not be made solely on basis of DVO's report
Estimates made in Turnover escaping assessment couldn't be challenged before the HC
CST & VAT : In best judgment/turnover escaping assessment, there is bound to be some guess work and estimate, however, whether an estimate should be a particular sum or at a different sum is not an issue of law so as to be appealable to High Court
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