IT : Where assessee society was engaged in running an educational institution on charitable basis, even if it derived some surplus while carrying out said activity, registration granted under section 12AA could not be cancelled on aforesaid ground
Thursday 8 May 2014
Roasted dry fruits are kirana items; falls under entry no. 81 of schedule III of Delhi VAT Act
CST & VAT : Roasted dry fruits are kirana items and would fall under Entry No. 81 of Schedule III of Delhi Value Added Tax Act, 2004
No reassessment on pretext of faulty stock valuation if valuation made as per AS-2 was duly reflecte
IT: Where Assessing Officer having completed assessment under section 143(3), initiated reassessment proceedings on ground of incorrect valuation of stock, in view of fact that assessee had valued stock on basis of cost or market price whichever was lower and said method was duly reflected in books of account, impugned reassessment proceedings deserved to be quashed
SEBI’s Chairman is empowered to initiate criminal prosecution against offenders without board’s appr
SEBI : Chairman, SEBI by virtue of section 4(3) of SEBI Act is empowered to initiate criminal prosecution of offender and for doing so, Chairman, SEBI does not require any authorization from Board under section 19 of SEBI Act
Collection of Toll charges under 'BOT' scheme is not liable to service tax
Service Tax : Construction of roads on Build, Operate and Transfer (BOT) basis and receiving consideration therefor by collection of toll charges for a fixed tenure is not liable to service tax
Activities of drug association enforcing sale of drugs on MRP without any discount was anti-competit
CL: Where Druggist association-BCDA was engaged in concerted activities of enforcing sale of drugs on MRP, its conduct was anti competitive in contravention of provisions of section 3
Assessee couldn’t seek rectification of ITAT’s order if TP provisions were thoroughly discussed ther
IT/ILT : Where Tribunal had elaborately discussed and analysed T.P. provisions as contained under section 92C as well as rule 10B, rectification of said order would certainly amount to review of earlier order which was beyond jurisdiction of Tribunal and scope of section 254(2)
HC upholds penalty order against directors of co. on violation of CIS norms
SEBI : Where company running CIS neither sought registration under section 12(1B) of SEBI Act nor repaid its investors, company contravened CIS Regulations, 1999 and penalty was to be imposed on its directors who were person in charge at time of offences
HC prepones hearing date on issue of de-recognition of Vadodara Stock Exchange
SEBI : Where by virtue of notification dated 30-12-2013 SEBI renewed recognition of Vadodara Stock Exchange till 3-1-2015 and applicant was saved from being derecognised till 30-5-2014 by virtue of circular dated 30-5-2012, applicant prayed for fixation of earlier date of final hearing in main petition before High Court
Agro-cos. directed to appear before SEBI for their winding-up and for returning of investor's money
SEBI : Where petitioner-agro companies filed writ petition against sealing order of their premises by State Authorities, petitioners were directed to appear before SEBI in proceeding undertaken by SEBI under SEBI Act, 1992 in compliance with order passed by SEBI directing petitioners to wind up their operations and ensure return of the investors' money within stipulated time which had elapsed much long ago
HC denies interim relief to petitioner against order restraining him from carrying out his business
SEBI: Where order was passed against petitioner-company restraining it from carrying business of holiday membership plan (HMP) alleging that company was engaged in collecting public deposits, burden lay on petitioner-company to show that collection of deposits under HMP did not come within purview of CIS
Sec. 194-I applicable if vehicle hired for employee is at his disposal; Chauffeur cost covered under
IT: The maintenance work would clearly fall within the ambit of 'work' as defined under Section 194C - Intermittent hiring of vehicle or for pick and drop facility would be subject to TDS under Section 194C and not under Section 194-I – Hiring of vehicle and at disposal of employee shall be subject to Section 194-I – A reasonable sum towards chauffeur and fuel charges are to be deducted from composite sum and the balance amount would fall under Section 194-I
SC: No appeal against HC's order to withdraw recognition of Stock Exchange if SLP on that issue alre
CL : Where High Court in its judgment held that withdrawal of recognition of appellant stock exchange under section 5 of Securities Contracts (Regulations) Act, 1956 by fulltime member of SEBI under section 11 of SEBI Act, 1992 cannot be said to be de hors provisions of Act and special leave petition from that order had been dismissed by SC, same question could not be reopened in instant appeal, however, withdrawal of recognition of appellant in no way affects functioning of its subsidiary
Exports Of Rubber Up, But Prices On The Fall
Despite a large increase in exports during the first quarter, natural rubber producers continue to see declining revenues, as world prices fall further.
The latest figures from the Ministry of Commerce show natural rubber exports grew 26 per cent during the first quarter of 2014, compared with the same period last year.
Meanwhile, overall revenue from natural rubber sales fell 28 per cent.
“Last year, rubber was selling at about $2,800 per tonne, but early this year, surprisingly, the price has dropped to as low as $1,980 per tonne,” Heng Sarath, deputy director of the General Directorate of Rubber, said, adding that prices had been on the decline since 2011.
Sarath said he could not foresee an end to the sector’s price slump, citing a slowdown in global demand for natural rubber, in particular China’s car tyre manufacturing industry.
Srey Chanthy, an independent economist, said a lack of infrastructure meant Cambodia had little choice but to sell natural rubber straight to the market despite falling prices.
“The reason exports are increasing [despite low prices] is because Cambodia does not have processing plant or warehouse to stock the harvested rubber,” he said, while agreeing that the Kingdom’s skilled labour shortage may deter investment in such
infrastructure.
Cambodia produced 85,000 tonnes in total of raw natural rubber in 2013.
“I believe when Cambodia could produce 400,000 tonnes of nature rubber, there will be investors who will consider investing in a processing plant,” Men Sopheak, deputy director general of Chop Rubber Plantation, said in April.
Source:- phnompenhpost.com
Iron Ore Mining Overhaul Policy And Access To Ferric Resources
Amidst avoidable mudslinging and counter-allegations at the hustings in the ongoing polls, the Supreme Court of India has lifted the ban on iron ore mining in Goa after about one-and-a-half years, albeit with conditions.
The apex court has already removed some of its earlier restrictions on ferrous ore in Karnataka, which were put in place to clamp down on rampant illegal mining. And an interim court order to prevent excessive mining of the ore in resource-rich Odisha is expected soon.
The next government needs to thoroughly modernise and transform iron ore into a modern commodity with transparent practices and norms, and attendant prices that genuinely reflect international traded value.
Revamped iron ore mining and arm's-length prices would actually incentivise the domestic steel industry to produce value-added products, including for exports. And given our endowments of raw material and talent, we should really be aiming to be the world's largest steel exporter, particularly of branded high-grade steels, in the medium term and beyond.
We do need to get out of the cycle of periodic judicial crackdown on illegal mining, with the political executive in the states preferring to turn a Nelson's eye to wanton malpractices and illicit diversion of ore.
Such transgression and the routine cutting of corners come at a huge national cost, not just as loss in current revenues, royalty, cess and other payments, but can also lead to serious environmental consequences as well. And given that there remains a huge infrastructure deficit between available highgrade ferrous ore, modern steel plants and the main markets for finished steel, it makes illegal mining all the more regressive and corrupting.
We need to blot out such practices for good, with both the states and the Centre joining hands when it comes to oversight and supervision. The way ahead is to levy a nominal central excise duty on iron ore mining, as is already in place for coal. The objective ought to be not so much to boost revenue collection as to increase multi-stakeholder oversight.
In any case, value-added indirect taxes on production and sales do already provide for tax offsets for levies paid earlier in the transaction value chain, so the actual burden of taxation of ore would be quite minimal. The next government clearly needs to convince the states concerned that central excise on ore is an idea that needs to be purposefully implemented without further ado.
Next, opacity in the pricing of ferrous ore needs to go. A while ago, the Machindranath committee had suggested that the rates reflect quarterly import prices paid by Japanese steel producers, who remain the world's most competitive exporters. Such benchmarking does make ample sense, certainly to begin with.
The quotes can then be compared with the rates published by the Indian Bureau of Mines to keep better tab of commodity scarcity value. We do need proper pricing of ore not just for targeted funds for social development, but also to egg on downstream industry to rev up value addition and customisation to improve margins.
Ultimately though, instead of rather administratively determining ore prices, we need a thriving market for iron ore options and futures at home. Markets in the region are already quite mature. The Singapore Exchange, for instance, already accounts for some 90 per cent of international iron ore derivatives clearing.
There may be a case for captive iron ore mines for new steel producers setting up plants in remote areas lacking infrastructure and linkages. However, such arrangements surely need to be time-bound and temporary, say, until the unit has fully depreciated plant and machinery.
It might be perverse incentive to go for modular investments so as to rationalise captive access to ore perennially. But we do need proactive policy to have arm's-length prices for the ore, to garner revenues to purposefully tackle the umpteen social and developmental problems rife in mine-intensive areas.
We need to set up special purpose vehicles (SPVs) to channel resources and funds. To begin with, a part of the substantial export duty that the Centre now levies on iron ore exports, to make up for the loss in domestic value addition, surely needs to accrue to SPVs in directly affected blocks and districts.
Source:- economictimes.indiatimes.com
India’S Cotton Yarn Exports Plummet With Low Demand From China
The Indian cotton yarn industry feeling the pressure as China has reduced its cotton yarn import after the announcement of China’s new cotton policy. India has witnessed drop by 25 percent in the month of April which is the effect of Chinese policy. Prior to the announcement of China’s policy, India export nearly 50 percent of yarn into China.
Last year the average exports was around 120 million kg which is mainly due to demand from China. But this April yarn exports has plunged to 90 million kg.
Although there is a demand for cotton yarn in domestic market, but the textile industry is concern over the downward demand flow from China as the industry has just managed to come out from the financial hardship of 2009-10.
Moreover, the new Chinese policy which has come effective from April 1, the government has lowered cotton auction bids to 17,250 Yuan per tonne, down 4.2% from its floor price of 18,000 Yuan per tonne.
Hence, price has also become the main concern for Indian yarn exporters. But they are optimistic that the situation will soon change in their favour.
Indian yarn exporters are making all efforts to build up their presence in Bangladesh, Korea and Hong Kong to overcome the low demand trend going on in the industry.
Source:- ccfgroup.com
Sugar Exports From India Slowing As Subsidy Delay Deters Buyers
Sugar shipments from India, the second-biggest producer, have slowed after domestic prices climbed to a 15-month high and as a delay in announcement of export incentives deters traders, the largest refiner said.
Exports may total about 300,000 tons in the six months through September, compared with 1.5 million tons in the prior six months, Narendra Murkumbi, managing director of Shree Renuka Sugars (SHRS) Ltd., said in a phone interview on May 5.
Lower than expected shipments from India may support prices in New York amid forecasts for the first global deficit in five years amid dry weather in Brazil and Australia. India announced a subsidy for raw sugar exports in February to help mills clear dues to farmers after stockpiles jumped to the highest level in five years. The incentives spurred a rally in local prices above global rates, turning away potential importers.
“I think because of the uncertainty on subsidy there may not be much exports in the second half of the sugar year,” Murkumbi said. “Domestic prices have moved up. So parity is not there anymore. Domestic demand has been quite encouraging this time. It’s definitely firmer than last year.”
The government, which set export incentives at 3,300 rupees ($55) per ton for February and March, has yet to notify the aid for April and May. The delay will keep shipments this season at about 1.8 million tons, Abinash Verma, director general of the Indian Sugar Mills Association, said April 30.
Volatile Prices
Prices on the National Commodity and Derivatives Exchange in Mumbai jumped to 3,265 rupees per 100 kilograms on April 25, the highest since January 2013. Futures have since fallen 4.7 percent, trimming gains this year to 10 percent. Prices are 4.9 percent higher on ICE Futures U.S.
“I think there is a lot of weather risks connected to sugar in the next six to eight months,” Murkumbi said. “Sugar could be volatile because of that.”
Sugar output in India will total 23.8 million tons in the 12 months ending Sept. 30, the lowest level in four years, compared with 25.1 million tons a year earlier after excess rains cut yields, the mills’ association estimates. Inventories will drop to about 6 million tons as of Oct. 1 from 9.3 million tons a year earlier, Murkumbi said. Outlook for production next year will depend on monsoon rainfall, he said.
“If there is a surplus there will be exports,” Murkumbi said. “India’s role in the world market will continue to fluctuate. We are very sensitive to the last 3 or 4 million tons of production on the either side.
Source:- businessweek.com
Securities contracts norms for Stock Exchanges and Clearing Corporations were constitutionally valid
Securities contracts norms for Stock Exchanges and Clearing Corporations were constitutionally valid: HC
Dept. can’t review its order determining production capacity in absence of any suppression of info b
Central Excise : As per section 3A read with Hot Re-rolling Steel Mills Annual Capacity Determination Rules, 1997, Department has power to determine capacity; however, in absence of any suppression on part of assessee, it is not open to department to review his own order retrospectively
Subsidy provided by Govt. to theater owners in form of entertainment tax was capital receipt
IT : Where in terms of scheme introduced by State Government to encourage construction of new cinema halls debited a part of entertainment tax in profit and loss account as subsidy, amount of assessee, running a cinema hall, so debited being in nature of capital receipt, was not liable to tax
India To Face Tough Fight From China In Services Exports
The Philippines has already taken away a lot of business from India in the BPO sector. Will China do the same in the software sector ? A report from State Bank of India says China is going to emerge as a threat to India for global services business.
"In the first step the import substitution measure of China would affect India's services export to China. In medium term, when China starts exporting services it may eat up India's share in the international market," the report says.
In 2013, India's net services export was at $18 billion while China was a net importer of $124.5 billion worth of services, the report said. Within India's net services export pie, software sector's net contribution was $16.8 billion.
Despite being a big importer of services, China sees current account surpluses unlike most its emerging market peers due to its huge merchandise exports.
The authors of the report however say that it will be a while before China gives a strong competition to India for global services business given India's demographic advantage. "Given the demographic structure of the Chinese economy with growing ageing population such structural transformation process would take a while to materialize," the report says.
In recent years, the Chinese authorities have been focusing on rebalancing its economy towards domestic consumption and services sector. This has led to contribution from its service sector jump to 49 per cent of gross domestic product in the quarter ending March 2014, from 41 per cent in quarter ending September 2008, says the report.
China has traditionally focused on investment- and export-led growth but the global financial crises of 2008 put brakes to the model.The shift towards services has also been driven by China's rapidly ageing demographic structure that would demand more and more services including hospital, health and insurance etc, says the report.
The report also noted that China's push toward service sector could result in higher wages, undercutting China's cheap production advantage in the global market.
Source:- profit.ndtv.com
Indian Apr Coal Imports Rise 6.45% On Month To 15.9 Mil Mt: Interocean
India imported around 15.86 million mt of coal at 24 major ports in April, up 6.45% from March, according to data released Wednesday by Indian ship broker Interocean.
The April imports consisted of 12.3 million mt of thermal coal, up 8.76% from March, and 3.56 million mt of coking coal, down 0.84%.
Mundra port on India's west coast received the highest coal shipments last month at 2.98 million mt, down 18.88% from 3.67 million mt in March. It also received the highest steam coal shipments at 2.98 million mt, up 27.26% from 2.34 million mt in March.
Paradip port on the east coast received the most coking coal last month, 754,159 mt up 0.29% on the month.
The surveyed ports were: Kandla, Navlakhi, Mundra, Bhavnagar, Pipavav, Muldwarka, Bedi, Magdalla, Dahej, Dharamtar, Haji Bunder, Jaigarh, Goa, Mangalore, Tuticorin, Ennore, Karaikal, Krishnapatnam, Kakinada, Gangavaram, Vizag, Paradip, Dhamra and Haldia.
Most of the coal was imported from Indonesia (9.98 million mt), South Africa (1.76 million mt), Australia (2.95 million mt) and the US (656,102 mt).
It also bought 514,377 mt from other countries such as Mozambique, New Zealand and Chile.Adani Enterprises, Bhatia Coal, JSW Group, Tata Group, and Steel Authority of India Limited were the main importers.
Source:- platts.com
Securities contracts norms for Stock Exchanges and Clearing Corporations was constitutionally valid:
Securities contracts norms for Stock Exchanges and Clearing Corporations was constitutionally valid: HC
RBI bans prepayment penalties on floating rate term loans sanctioned to individual borrowers
Banking : Levy of Foreclosure Charges/Pre-Payment Penalty on Floating Rate Term Loans
MCA annoyed over faulty certification of e-forms by professionals; seeks punitive action against mem
Companies Act, 2013 : Certification of E-Forms/Non E-Forms under The Companies Act, 2013 by the Practicing Professionals
Transferee to get Sec. 80-IA relief for unexpired period if infra facility is transferred without me
IT : CBDT: Section 80-IA, Sub-Clause (iii) of Sub-Section (4) of the Income-Tax Act, 1961 - Deductions - Profits and Gains from Industrial Undertakings, or Enterprises Engaged in Infrastructure Development, Etc. - Eligibility of Deduction Under Section 80-IA for Unexpired Period
India Feasts On Royal Mangoes After European Union Banned Imports Of Fruit From India
Indians are feasting on some of the world’s most succulent mangoes after the European Union banned imports of the fruit from India this month, producing a glut and rock-bottom prices for local consumers. Starting May 1, the EU banned imports of Indian mangoes including the Alphonso, considered the king of all the mango varieties grown in South Asia, because a large number of shipments were contaminated with fruit flies. The pests are considered a threat to crops grown locally in Europe.
For years, the Alphonso mangoes had been out of the reach of most Indians as the best of the fruit was shipped to the supermarkets of Europe and other parts of the world where it commanded a premium price. In Mumbai, the capital of the main Alphonso growing region, the fruit is now selling for Rs 150-550 ($2.50-$9) a kilogram, about $2-3 below prices last week. And sellers say they expect the prices to fall even further. Mangoes start arriving in Indian markets in April, providing a juicy, delicious respite from summer temperatures and humidity as they start climbing to oppressive levels.
Piles of mangoes are cooled in refrigerators or buckets of ice-cold water or pureed to create refreshing drinks that cut through the scorching heat. The Alphonso, with its golden yellow flesh and distinct aroma, is a favorite and is especially prized because the best varieties are either exported or prohibitively expensive. This year, however, the stores in Mumbai’s Crawford market are piled high with crates and baskets of perfectly ripe Alphonso.
Deepak Kanulkar and his family are now gorging on the delicious fruit. “There is difference in the size and texture. The moment you touch it, you feel the difference. When you cut it, you get this aroma, which fills the room. The taste is definitely superior,” he said. “I have had these mangoes while living abroad and now I am seeing the same quality here.” But the EU ban is likely to disappoint legions of Indian mango fans in Britain.
Source:- deccanchronicle.com
Rupee Trading Strong At 60/Dollar
The rupee was trading strong by 14 paise at 60.00 against the dollar at 3.57 p.m. local time.The domestic unit opened significantly higher at 59.97 per dollar against the previous close of 60.14 on fresh dollar selling by exporters.
The rupee hovered in the range of 59.96-60.05 against the dollar during the morning trade.According to dealers, a higher opening in the domestic equity market and weakness in the dollar index overseas supported the domestic unit.
Amid cautious stand by market participants, investors are waiting for the election results due on May 16.
The overnight call money rate (the rate at which banks borrow money from each other to overcome short-term liquidity mismatches) opened higher at 8.1 per cent against the previous close of 7.25 per cent.
The yield on 10-year benchmark 8.83 per cent bond, maturing in 2023, remained flat at 8.78 per cent . Bond prices dropped to Rs 100.27 from Rs 100.31. Bond yields and prices move in opposite direction.
Source:- thehindubusinessline.com
Long-term leasing with rights of transfer and mortgage is analogous to sales; not liable to service
Service Tax : Renting/Leasing referred to in section 65(105)(zzzz) does not, prima facie, cover 'long-term leasing' where a property is given to a person with rights to transfer, assign and mortgage rights, as such transfers are more akin to sale
Concealment penalty upheld as VAT return was filed by assessee without disclosing actual sales
CST & VAT : If return pertaining to a particular period does not disclose true sales of that period, misdeclaration/concealment penalty is leviable
Nissan motors wasn't a dominant player in dealership of cars as it had negligible share in Indian ca
Competition Law: Where OP who was manufacturer of Nissan cars had a very negligible share in passenger car segment in India, OP was not dominant in relevant market for dealership of passenger cars
No sec. 80-IB(10) relief on mere raising of infrastructural facilities without development of reside
IT: Where petitioner having not constructed residential flats and as such barely raising infrastructural facilities was not entitled to deduction under section 80-IB(10) and could not have raised any substantial question of law requiring adjudication by this Court, issue of framing of substantial question of law did not arise and hence review petition was to be dismissed
Installation and testing charges are includible in excisable value of Diesel Generator sets
Excise & Customs : When tender prices submitted by assessee are inclusive of installation, commissioning and testing charges on D. G. Sets manufactured by them and no bifurcation is shown in tender, said charges are related to manufacture and not allowable as deduction in computing assessable value
Govt. allows FDI in existing as well as new airline business; HC denies to interfere in FDI policy
FDI : From a mere use of words 'operating scheduled and non-scheduled air transport services, it could not be held that, FDI Policy, 2012 of Government of India announced vide Press Note No. 6 of 2012 was to allow FDI in 'existing airlines' only and not in 'proposed/new airlines'
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