IT: Where Tribunal remanded matter back for purpose of considering assessee's claim under section 11, Assessing Officer shall consider nature of receipts keeping in mind objects of institution to find out as to whether income earned is incidental to objects of association and or whether income could only be treated as a separate business carried on by assessee
Sunday 4 May 2014
No discretion is available with revenue to levy lesser penalty than that specified in sec. 11AC of E
Excise & Customs : Penalty under section 11AC of Central Excise Act, 1944 is mandatory and there is no discretion to levy lesser penalty than that specified in said section; however, penalty would be leviable only if ingredients of section 11AC are met
Period of limitation to seek rectification under sec. 254 to be counted from date of actual receipt
IT: Rectification application under section 254 filed within period of four years from actual receipt of judgment and order sought to be reviewed, should be admitted for consideration
Punjab Govt Fails To Take Action Against Potato Hoarders
The Punjab government has surrendered before the interests of feudal and stopped taking action against artificial price hike of potatoes.
The Provincial Minister for Food & Chairman Cabinet Price Control Committee Bilal Yasin addressing a press conference here at 90 Shahrah-e-Qauid-e-Azam said that government is taking strict action against profiteering on potatoes hoarding but farmers associations (so-called feudals’ bodies) are forcing the government against interfering in market mechanism as it will dishearten the farmers. The farmers will not sow potatoes in next season if prices were forcibly controlled by the government, the minister argued on behalf of farmers’ representatives’ association.
Despite several measures taken by the federal as well as the provincial governments, the rates of potatoes are sticking to the level of Rs60-70 per kg in open market while the whole Sunday bazaars are not selling this item except sweet potato at Rs45 per kg. Sunday bazaars vendors said that market committee rate was not viable for them so they refused to sell potatoes. However, sale of sweet potatoes is feasible for them.
It is to be noted that the Federal Board of Revenue (FBR) has abolished sales tax, customs duty and withholding tax on the import of potatoes and imposed 25 percent regulatory duty on its export in line with the decision of the Economic Co-ordination Committee (ECC) of the Cabinet.
The FBR has exempted 17 percent sales tax, 5 percent withholding tax and customs duty on the import of potatoes. The ECC had considered a summary of the Ministry of National Food Security and Research on creation of potatoes artificial price hike in the market. The ECC was informed that hoarding and profiteering led to increase in the potatoes price locally.
The ECC on the recommendation of Minister for National Food Security and Research decided to impose 25pc regulatory duty on export of potato with effect from May 5, 2014. It was further decided that there will be zero duty and levy on import of potato from May 5 till July 31, 2014 and the measure will help in bringing potato prices at rational level in the market before and during the month of Ramazan 2014.
But all measures of the federal government along with the checking of monitoring teams of provincial governments seem to be futile as no respite was seen in prices of potatoes neither in open market nor in Sunday Bazaars. Though vendors have pasted rate list of veggies with potatoes rate of Rs54-56 per kg but they are selling the item not less than Rs60 per kg.
It seems that there is no price regulatory body and mechanism of the Punjab government to control prices of essential eatable commodities that are completely manipulated by traders, hoarders and profiteers.
Experts said that Pakistan produces 3.78 million tons potatoes against the annual domestic consumption of about 1.8 million tons. The prices of potato peak up in October and start declining from Dec when the new crop from Punjab is available in the market. The lowest prices are observed from January-March.
They pointed out that there is now no potato left with the farmers as the stockists and hoarders picked up the whole crop. They are selling vegetables at the unaffordable price of Rs 60-70 per kilogram without any check or hindrance.
Meanwhile, the Provincial Minister Bilal Yasin said that provision of quality essential items to the people at cheaper rates in abundance is top priority of the government. He said that edible items are available in Sunday bazaars and Sahulat bazaars in abundance.
Replying to a question, Bilal Yasin said that price of potato is being focused so that its price should be brought at reasonable level before Ramzan-ul-Mubarrak. He said that district administration all over the province is active against hoarders.
Provincial Minister said that there is wheat procurement season and the focus of Food Department is to achieve the wheat target.
Source:- nation.com.pk
Cotton Production Shows 3.69 Percent Increase: Pcga
The Pakistan Cotton Ginners Association (PCGA) fortnightly report shows that around 1,33,91,694 cotton bales were sourced to the country's ginners by May 1, 2014, which shows an increase of 3.69 percent compared to last year when ginneries received 1,29,15,585 bales.
PCGA Chairman Mukhtar Ahmed Khan Baloch briefed journalists on Saturday about seed-cotton (phutti) arrivals, sales and unsold stock of cotton. He said that 1,25,84,496 cotton bales were sold to textile units and exporters bought 3,99,382 bales. Thus, overall 1,29,83,878 bales were traded so far. He said the PCGA was following the production target of Pakistan Central Cotton Committee.
Mukhtar Baloch said that total 12 (11 in Punjab and 1 in Sindh) out of 1,200 ginning factories were operational in two provinces. The chairman of PCGA said that Punjab contributed 96,31,362 bales which 1.29 percent more than last year when Punjab contributed 95,08,418 bales, Sindh contributed 37,60,332 bales which 10.37 percent more than last year when it contributed 34,07,167 bales and Balochistan 63,048 bales.
After the total trading of 1,28,29,972 bales, there are 4,07,816 bales available with ginners as unsold stock. He said the modest cotton trading was witnessed in the market as exporters showed interest in buying to meet their needs. However cotton prices continued their downward drive this week conceding other Rs 100 to Rs 150 per maund. Condition on the cotton market is bearish and off take of lint is decidedly low. Ginners are saddled with close to half a million unsold bales from the current season. The ginners were expecting better prices of cotton to meet the demand of European markets after attaining the status of GSP-Plus, the rates are going up.
District wise cotton arrival in Punjab: Multan 4,95,893 bales, 12.93 percent more than last year, Lodhran 3,86,886 bales showing an increase of 37.26 percent, Khanewal 9,36,563 bales showing an increase of 2.95 percent, Muzaffargarh 4,13,961 bales registering a decrease of 6.65 percent, Dera Ghazi Khan 3,94,129 bales showed an increase of 12.51 %, Rajanpur 4,11,578 bales showing an increase of 2.07 %. Layyah 2,78,304 bales, showing 8.78 % more than last year, Vehari 8,76,555 bales 8.78 % decrease , Sahiwal 5,34,340 bales decreased by 3.73 %, Pakpattan 1,73,701 bales showing 33 % less than preceding year, Okara 45,592 showing a decrease of 21.42 %, Kasur 28,386 bales, Toba Tek Singh, 2,34, 968 bales, Faisalabad 64,188, Jhang 1,18,360, Mianwali 3,10,413 bales, Bhakkar 1,76,231 showing a decrease of 6.22 percent, Sargodha 38,514, Rahimyar Khan ,11,84,464, Bahawalpur 11,09,963 and Bahawalnagar 14,18,272 bales. District wise cotton arrival in Sindh, Hyderabad 2,99,110 bales, showing an increase of 18.44 %, Mirpurkhas 3,62,049 bales, showing decrease by 10.31%. Sanghar 14,04,538, Nawabshah 2,92,988, Naushahro Feroze 2,50,303, Khairpur 2,40,387, Ghotki 2,12,279, Sukkur 3,59,126, Dadu 35,500, Jamshoro 1,87,279 and Badin 53,525 bales and Balochistan 63,048 bales.
Ginneries received 906 bales during the fortnight of April 16 to May 1. Unsold stock is 4,07,816 bales which is more than last year when it reached to 3,99,919 bales. Ginners were expecting better prices of their lint but prices have fallen down beyond their expectations. The PCGA blamed the policy-makers who had allowed importing cotton and yarn from India.
Source:- brecorder.com
Most Sectors Barring The Readymade Garment (Rmg) Have Been Performing Poorly In Terms Of Export Earnings Since The Beginning Of The Current Fiscal Year (2013-14).
Most sectors barring the readymade garment (RMG) have been performing poorly in terms of export earnings since the beginning of the current fiscal year (2013-14).
The shortfall in revenue earning of these sectors, stretching from agricultural products to ship-building, was at least US$ 537 million during the July-March period as against the combined target of US$4.5 billion, official statistics at the Export Promotion Bureau (EPB) shows.
The share of these industries in the country's total exports is shrinking fast, officials of the Export Promotion Bureau told the FE late last week.Of all the 32 non-RMG sectors, only footwear, shrimp, rubber and leather performed relatively well during July-March period of the current fiscal.
The share of non-RMG sectors has shrunk to 19 per cent during the period under review against their usual share of around 30 per cent.Previously, non-RMG goods and products, had at times dominated the country's export sector in terms of growth.
Economists and industry insiders said restive politics during the October-December period last year and appreciation of the local currency, Taka, against the US dollar were the main reasons behind the fall of the share of non-RMG sectors in the total export earnings.
Ahsan H Mansur, executive director at the Policy Research Institute of Bangladesh (PRI) said the RMG sector being much organised one can overcome difficulties while the non-RMG sectors cannot.Until March last, the RMG sector fetched $18 billion out of $22 billion total shipment.
Mr. Mansur said domestic restive politics had caused problems for many fast growing export earning sectors like the bicycle exports to Europe.
"In my view, political situation that prevailed until December last affected our many fastest growing export earning sectors," Mr. Mansur said.
He said India bagged many non-RMG products following the weakening of its currency, Rupee.The export receipts from fast growing sectors like jute, home textile, specialised textile, plastic, vegetables and engineering fell significantly during July-March period.
Kaihan N Rahman, deputy managing director at Pubali Jute Mills Ltd., said export of jute goods fell substantially during July-March period as almost all its destinations were beset with either tension or political problems.
He said export to Syria and Egypt remained almost halted for long due to political problems there.He said weaker Indian currency made its products cheaper to the global buyers leading to fall in orders for Bangladesh-made goods.
He also said US sanctions on Iran had affected Bangladesh jute goods exports to the country significantly.According to the EPB, jute and jute goods sectors fetched only US$612 million against its target of $841 million for the period.
Md Nurul Islam, chairman of Noman Group, one of the key exporters of home textile products, said granting generalised system of preference (GSP) to Pakistan by the European Union (EU) affected export of Bangladesh-made products.
The EU granted GSP plus facilities to Pakistan until 2017 from January last. The GSP Plus status will allow almost 20 per cent of Pakistani exports to enter the EU market at zero tariff and 70 per cent at preferential rates.Mr. Islam said Pakistan is the reputed home textile producer in the global market and allowing GSP helped the country grab the market share fast.
Lt. Col. M Anisuzzaman, managing director of the Global Fabrics told the FE that appreciation of local currency against the US dollar was responsible for erosion in competitiveness of Bangladesh-made products."Bangladesh Taka appreciation made Indian products much cheaper and our many orders were diverted there," Mr. Anisuzzaman noted.
He said recent labour wage hike in the country has led to loss of efficiency in terms of prices."Our competitiveness lies with cheap labour as we import almost cent per cent raw materials for manufacturing terry towel products," he said. "We cannot compete when labour prices go up," he added.
Currently, Bangladesh has 70 terry towel plants and its export target for the July-March 2014 fiscal was at $62 million. But it could fetch $53 million, nearly 14 per cent less than that of target.
Source:- thefinancialexpress-bd.com
India’S Leather Exports To Take A Hiding
The recent EU ban on imports of Indian Alphonso mangoes after pests were reportedly found in consignments has generated considerable concern. Now the EC has notified the WTO of its plan to introduce new restrictions on leather goods imported into the EU. These new rules target hexavalent chromium, or Cr(6), in leather products and could take effect in early 2015.
This could seriously hit the global leather goods trade. Almost 60 per cent of India’s leather exports, worth $5 billion in 2012-13, go to the EU. India along with other affected exporting countries such as China, Vietnam and Turkey, needs to take proactive action to meet this threat.
Chromium tanning, used in 80 per cent of leather production globally, results in higher strength and resistance to temperature. The chemical used is chromium sulphate, which is trivalent chromium, and not harmful.
However, exposure to sunlight and air can oxidise the trivalent Chromium to Cr (6). In cars, for instance, the leather can be subject to high temperatures and sunlight in summer. Cr (6) can cause lung cancer if inhaled, especially by workers in chromium mining, electroplating, welding and tanneries.
In January 2012, Danish authorities submitted a dossier to the EC on reported cases of contact dermatitis and allergies caused by Cr(6) in leather articles such as shoes, handbags and gloves. A study of over 16,000 patients with eczema in Denmark concluded that the majority of cases were caused by leather products — particularly footwear.
Wide-ranging impact
The dossier requested action on an EU-wide basis to safeguard human health. According to the dossier, the mechanisms of and conditions under which Cr (6) is formed are known and “most tanneries in the European Union have already developed and widely implemented measures to control and minimise its formation”.
This last assertion means tanneries and leather manufacturers in the EU will get a huge competitive advantage if the restrictions are applied. Consumers would end up paying higher prices for the products. The EU has in the past lobbied hard to get export restrictions and duties on semi-finished leather lifted.
Meanwhile, Germany banned the presence of Cr (6) under the German Ordinance on Commodities (BGVO) since August 2010, which explicitly mentions clothing, furniture and bags. Producers or retailers of leather goods are obligated to ensure that Cr (6) is not present.
On November 2012, the Risk Assessment Committee endorsed and widened the recommendation by Denmark, to cover “leather articles and articles containing leather parts that, under normal or reasonably foreseeable conditions of use, come into contact with the skin. The limit set for such articles is less than 3 mg/kg of Cr (6) in total dry weight of leather, which could reduce by 80 per cent the risk of contact. The proposed restrictions would go into effect in the first quarter of 2015. Existing stocks of leather goods and second-hand leather articles already within the EU would not be covered.
Examples of products that will come under the restrictions are: footwear, gloves, articles of clothing, accessories such as hats, belts and braces, watch straps, purses and wallets, bags, horse-riding gear, dog-leashes, auto seats, covers for car steering wheels, and furniture. Suppliers have time until the new curbs apply in 2015 to take care of their existing stock that does not comply with the new requirement.
Disruptive
The EU move to ban leather articles that contain more than 3 mg Cr (6)/kg is out of proportion to the problem of chrome allergies caused by leathers. It will cause severe disruption in the global leather industry.
Only about 0.2 per cent of the European population is said to be sensitive to chromium but chrome-tanned leather has been worn for over 100 years and this sensitivity has been known but managed. People allergic to Cr(6) can wear socks to reduce contact and can wear synthetics if necessary. Before any restriction is considered there should be substantial further investigation into issues such as managing allergies to leather items; control of Cr(6) formation in finished leather; viable substitute for chrome in shoe leathers; consequences of the restriction throughout the world; and whether the restriction will actually solve the problem of chrome allergies.
Obviously the proposed restriction will have a drastic and adverse impact on Indian leather exports to the EU. Other countries such as China, Vietnam, Turkey, etc., with substantial leather goods exports to the EU, will also be affected.
While techniques to reduce Cr (6) levels have been adopted by EU tanneries (such as chrome6-free process), and there are technologies that totally eliminate chromium (glutaraldehyde process), time and technical support are required for tanneries to make the adjustments.
India’s leather industry needs to take early action. This should include submitting a well argued counter to the WTO questioning the basis for the ban, supported by other affected countries. Technology upgrades are required too, to cut Cr(6) levels to the minimum. This will require improved tanning and processing techniques such as Chrome6free and others developed and used by EU tanneries.
Source:- thehindubusinessline.com
Eu Ban Won’T Affect India’S Mango Export’
The total mango export from India to the EU is only seven per cent of total mango experts.The ban imposed by the European Union (EU) on Indian mangoes is unlikely to affect India’s overall mango export this season. The reason is that export to the EU constitutes only seven per cent of the country’s total mango exports. Besides, the EU hasn’t placed any restrictions on Indian mango pulp, which will now be used as an alternative to direct mango export.
Agriculture minister of Maharashtra, Radhakrish-na Vikhe Patil, held a meeting with senior officials of the state and central governments at the Sakhar Sankul in Pune
on Saturday. Various facets of the EU ban on Indian mangoes and other vegetables were discussed.
Following the meeting, an official statement was issued that read, “India exports mangoes to 51 countries around the world. We also supply mango pulp on a large scale.
Maharashtra itself accounts for 50 to 55 per cent of the total export. While the total export from India to the EU is only seven per cent.”
According to figures available with the department of agriculture, India produces approximately 152 lakh metric (L.M.) tonne mangoes and Maharashtra produces 3.5 L.M. tonne mangoes. India exports 55,413 M. tonne mangoes, including 3,890 M. tonne to the EU. While mango pulp export in 2011-12 was 29,800 M. tonne worth `163 crore, in 2012-13, it was 19,950 M. tonne worth `118 crore. The government is focusing on the export of mango pulp, which is why the EU ban will not affect India’s mango export this summer.
Source:- asianage.com
India's Silver Jewellery Exports Fell 42% Y/Y In March, Gold Exports Up 19%
The silver jewellery exports from India recorded significant decline of 41.89% year-on-year to $106.77 million (Rs. 651.43 Crore) in March 2014 while its gold jewellery exports picked up significantly by 18.99% year-on-year to $992.03 million, in accordance with the latest data released by the Gems and Jewellery Export Promotion Council (GJEPC).
According to GJEPC, country's cut and polished diamond exports in March reached $1,571.44 million, dropping 24.99% over the previous year. The country’s export of Coloured Gemstones plunged by 50.74% from $50.63 million in March 2013 to $24.94 million in March 2014. The exports of Pearls staged a rebound to $0.63 million from $0.29 million a year ago. The exports of Synthetic stones witnessed sharp rise of 221.80% from $2.34 million in March 2013 to $7.53 million in March 2014.
India's gold medallions & coin exports was reduced to almost half, dropping sharply to $250.92 million (Rs.1,530.89 Crore). The export of Rough diamond from the country dropped 8.01% in March. The total exports of Rough diamonds during the month totaled $183.77 million (Rs. 1,121.20 Crore).
In short, the figures released by the country’s Export Promotion Council demonstrate robust growth in exports of Gold Jewellery, whereas a sharp decline in exports of Silver Jewellery, Gold Medallions and Coins during March ‘14.
Source:- metal.com
Rupee Strengthens To Trade Near 60 Per Dollar
The Indian rupee on Monday opened higher against the dollar tracking gains in the Asian currencies market. The local currency opened at 60.10 per dollar against its Friday’s close of 60.16.
Most of the Asian currencies were trading higher. The Japanese yen was trading up 0.3%, South Korean won was up 0.26%, Malaysian ringgit up 0.23%, Thai baht up 0.16%, while the Philippines peso rose 0.16%.
Since the beginning of this year, the rupee has gained 2.87% against the dollar, while foreign institutional investors have bought $5.3 billion from local equity markets.
The yield on India’s 10-year benchmark bond was trading at 8.78%, compared with its Friday’s close of 8.81%. Bond yields and prices move in opposite directions.
At 9.12am, the rupee was trading at 60.05 per dollar, up 0.15% from its previous close, while India’s equity benchmark Sensex index was trading at 22,432.77 points on BSE, up 0.13%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 79.46, down 0.07% from the previous close of 79.51.
Source:- livemint.com
No service-tax on unit of body corporate as it couldn't be regarded as a 'assessee' or 'person'
Service Tax : Karnataka Central Diocese, being a unit of body corporate 'Church of South India Trust Association (CSITA)' is not a 'a separate legal entity' or 'person' or 'assessee' under service tax and cannot be made liable for services provided by CSITA
Sum received by Warner Bros. for distribution of films in India isn't 'royalty'; ITAT follows previo
IT/ILT : Where assessee, a US based company, engaged in distribution of cinematographic films, received certain amount from its divisional office on account of distribution of films in India, following order passed by Tribunal in assessee's own case relating to earlier assessment years, amount in question could not be taxed as royalty within meaning of Act or DTAA and, at same time, it could not be taxed as 'business income' because assessee did not have Permanent Establishment in India
CLB dismissed petition against oppression as matter was still sub-judice with arbitral proceeding
CL: Company petition filed under section 397 for similar reliefs as sought in arbitration proceedings by petitioner would not be maintainable
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