Service Tax : Grant of authorisation to file appeal is an 'administrative act' and there is no need for independent detailed and personal consideration by Commissioners or Chief Commissioners themselves even after detailed consideration by subordinate officers involved in process
Tuesday 13 May 2014
Sec. 80-IB(10) relief was available to developer even if approval for construction was given in name
IT : Though permission for development was taken by owner of land, deduction under section 80-IB was admissible to assessee
Case remanded to AO with a direction to consider docs filed by assessee against cancellation of VAT
VAT: Where Assessing Officer cancelled registration certificate of assessee on plea that it had not deposited tax, whereas it was claim of assessee that it had already paid tax, and Tribunal declined to interfere on ground that before authorities below assessee could not produce evidence for deposit of tax, matter was remitted to Assessing Officer for decision afresh
No Violation of FERA if petitioner co. made correct declaration about Qty. and Quality of goods for
FERA : Where goods imported were not different in quality, and quantity from that declared at time of acquiring foreign exchange for import and foreign exchange acquired had been entirely used for goods imported, there was no violation of section 8 of FERA
No addition of notional interest if assessee wasn’t charging interest from AE and non-AE on pending
IT/ILT: Where there was complete uniformity in act of assessee in not charging interest from both Associated Enterprises and non-Associated Enterprises debtors for delay in realization of export proceeds, Assessing Officer was not justified in making addition of notional interest to assessee's ALP on aforesaid ground in course of transfer pricing proceedings
Vodafone approaching arbitrational panel has led to withdrawal of conciliation offer; FinMin rejects
IT/ILT : Correct Factual Position and Circumstances That Led to Government’s Proposal to Withdraw from Conciliation Measures Initiated Earlier With Vodafone International Holdings B.V.(Vodafone)
RBI includes LLP in definition of 'Indian Party' under FEMA norms on transfer or issue of foreign se
FEMA/ILT/INDIAN ACTS & RULES : FEM (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2014 - Amendment in Regulation 2
RBI raises threshold limit for receipt of export proceeds via rupee account to Rs 5 lakhs
FEMA/ILT/ INDIAN/ACTS & RULES: FEM (Manner of Receipt and Payment) (Amendment) Regulations, 2014 - Amendment in Regulation 4
Overseas branches of Indian banks can offer structured product at financial centres outside India: R
BANKING : Operations of Foreign Branches and Subsidiaries of The Indian Banks - Compliance With Statutory/Regulatory/Administrative Prohibitions/ Restrictions
FM urges Switzerland to ratify signed 'Multilateral Convention on Mutual Administrative Assistance i
IT/ILT : 46 Countries, Including India, Besides The European Union, Meeting under The Auspices of OECD, Adopted A Declaration on Automatic Exchange of Information in Tax Matters
Cotton Yarn Exports Estimated To Touch 1,350 Mkg This Fiscal
Despite the seasonal fluctuations, India’s cotton yarn exports are on target and are estimated to touch 1,350 million kg valued at $4.70 billion for the financial year 2014.
The country has already exported 1,082 million kg of cotton yarn (valued at $3.75 billion) during the first 10 months (April-January) of the current fiscal, according to a study by The Cotton Textiles Export Promotion Council (Texprocil).
“The high quality of Indian yarn is ensuring firm orders from the international markets,” Texprocil said, adding that this is despite the seasonal fluctuations witnessed every April and in spite of high raw cotton prices.
“Given the better quality produced by Indian mills, there will always be good export of Indian yarn taking place, even if the difference between Chinese cotton prices and international cotton prices narrows down substantially. Indian mills need not fear a drop in yarn exports happening beyond the seasonal fluctuations,” Texprocil Chairman Manikam Ramaswami said.
“However profitability of exports will depend upon our price parity with international cotton prices,” he added.However, exports of cotton yarn dropped in April. This is for the fourth consecutive year that the exports have fallen.
Source:- thehindubusinessline.com
Apparel Exports Up 14% In April
Showing clear signs of a revival, apparel export has registered an impressive growth rate of over 14% in the first month of this financial year. The statistics, recently made public by the Apparel Export Promotion Council (AEPC) in Gurgaon, show that the export sector rebounded in double-digit growth in the month of April, having brought off business deals of over $1.3 billion.
"For April 2014-15, the garment sector grew by 14.33%. The Indian garment manufacturing sector has the highest potential and it needs to increase competitiveness to provide a further boost to apparel exports from India," said Virender Uppal, chairman, AEPC.
The current growth pattern, according to industry analysts, seems counter-intuitive, given the rapid depreciation in value that the rupee has undergone. Factors like increasing labour costs in China and non-compliance with labour laws by manufacturers in Bangladesh have played a part in this recent turnaround. "But to capture the market space left by these countries we have to be competitive when it comes to pricing, we have meet stricter deadlines, and deliver better quality to buyers. And for this active support by the government agencies is crucial," Uppal said.
The industry has put forward a number of demands. Certain 'inhibiting factors,' related to complicated export procedures and high production costs, need to be resolved, industry representatives say.
The other cause for worry for the export sector is the strengthening of the rupee on the foreign exchange market. "While the export figures for the month of April were good, the RBI must ensure that the domestic currency does not become too strong because of the hot money pursuits on the stock market. This is the right time for the RBI to buy dollars and build forex reserves," said Anupam Shah, chairman, Engineering Export Promotion Council, India.
Source:- timesofindia.indiatimes.com
Holding of shares for a few days indicates systematic trading; resultant profits are capital gains
IT: Where assessee used only 30 per cent of his own capital in share transactions and, moreover, in most of cases he held those shares for less than one month, it was apparent that assessee was engaged in trading of shares and, thus, income arising from said transactions was to be taxed as business income
Ignorance of changed law is valid excuse; no concealment penalty if assessee was ignorant of change
Cenvat Credit : Penalty under section 11AC of Central Excise Act, 1944 cannot be levied if assessee was ignorant of change of law and department fails to prove that assessee had an intention to evade payment of duty
Holding of shares for a few days or more indicates systematic trading; resultant profits are capital
IT: Where assessee used only 30 per cent of his own capital in share transactions and, moreover, in most of cases he held those shares for less than one month, it was apparent that assessee was engaged in trading of shares and, thus, income arising from said transactions was to be taxed as business income
HC remands case to provide an opportunity to assessee to establish his claim of high sea sales
CST & VAT: Where Assessing Officer found various defects in documents produced by assessee and without asking her to explain those defects disallowed her claim for high sea sale, Assessing Officer was directed to provide an opportunity of hearing to assessee to establish her claim that there was indeed high sea sale as contemplated in law and to take decision in matter afresh
Cheaper Imports Dent Himachal Pradesh's Apple Business
Not long after quitting a lucrative job at Dell Systems to nurture his fruit orchards in Shimla, Kunaal Singh Thalta is having second thoughts. Fruit buyers are increasingly flocking to cheaper and better quality imports, often giving his farm-fresh apples a miss.
Himachal's Rs 2,500-crore apple industry, which accounts for more than 6% of the state's GDP and supports more than half of its rural population across six districts, is facing stiff challenge from better quality imports that are often competitively priced.
The consequent rise in fruit imports has not just hit the local economy, but is also forcing the newer generation to move away from this traditional occupation. And folks like Thalta, who have ventured into fruit farming, are feeling let down, as the issue finds no mention in the going elections.
"Apples are no longer delivering similar returns, which is making the business unviable as imported fruits are getting preference," Thalta, who is often chided by family members for his leap of faith, told ET. "No political party seems to care and raise the issue."
In this hilly state, incomes of local fruit growers had soared after the economic liberalisation of the 90s, but farmers gradually lost the momentum in the absence of a consistent policy and infrastructure. They now find it difficult to compete with the big companies that import apples in bulk every year.
While the Congress is seen as an ally of Himachal's apple growers, the party has not provided a roadmap for resolving their problem. Party spokesperson Subash Manglate said there was a need to improve the quality of Himachali apples, but failed to say how that could be achieved.
Congress also faces criticism for the UPA government's decision to halve import duty to 50%, which is widely seen as the main reason for imports multiplying in the last one decade.
According to the commerce ministry's estimates, import of apples touched an all-time high of about Rs 1,500 crore in 2013-14. "Not much has changed in the past 10 years, except for the Chinese apples that sell in every part of the country all year round, unlike the domestic produce that is available for only five months," said Rajeev Chauhan of Himalayan Apple Growers Society, a non-profit body. According to Chauhan, China has utilised the South Asia Free Trade Agreement to evade the 50% import duty to dump its apples at cheap rates in India via Sri Lanka.
Experts say the quality of Himachal's apples has deteriorated partly due to the poor quality of subsidised fertilizers that the government supplies. Adding to farmers' woes is the absence of new plants. "Most of the apple varieties grown in India are almost a century old. How can we compete with the superior imported stuff that has longer shelf life and is more appealing," said Dixit Chauhan, who quit a marketing job at Dabur India to help out in the family's apple business in Chajpur, a remote village of Shimla.
Faced with policy issues and an apparent lack of political will, the state's younger generation has started importing new plants from overseas nurseries situated in Italy, France, South Africa and the US. "The government has failed to change the first generation orchards that are running on old trees and are highly susceptible to disease.
To increase returns, we have to start the second generation orchards by breeding highquality fruits as successive governments have failed modernise farmers," said Vijay Thakur, an orchardist-turned-hotelier from Manali. "There is no concrete policy even as three of the five chief ministers were apple growers themselves." Indian apple growers have a higher cost of production compared with their Chinese or Australian counterparts.While it is about Rs 15 per kg in India, it is Rs 8 per kg in China and about Rs 10 per kg in Australia.
Source:- economictimes.indiatimes.com
Tax Board Spanner In Outgoing Govt’S Appointment Plans
Senior-level appointments in income tax, customs and excise departments have been stalled for the time being after the Central Board of Direct Taxes (CBDT), the cadre controlling authority of I-T, refused to submit a list of its annual general transfers to the revenue secretary.
Sources said revenue secretary Rajiv Takru had asked the chairmen of the two revenue boards — CBDT and Central Board of Excise and Customs (CBEC) — to place lists of all commissioner-level and other senior postings in the two departments by May 7. This was objected by the CBDT as it maintained that preparing an exhaustive list would take time as the process was yet to begin.
The insistence of the revenue secretary for high-level postings had come at a time when the BJP had objected to any senior-level appointments days before the formation of a new government.
Meanwhile, the CBDT has sent a list of 1991-92 batch I-T officers, promoted to the rank of commissioners, to the finance minister for his approval while it is still in the process of finalizing list of annual general transfers.
The CBEC, the cadre controlling authority of the Customs and Excise officials, is also believed to have forwarded a list of senior officials for their transfers but the Revenue Board has not taken any decision on the two lists yet.
Sources said the revenue secretary had insisted that all Indian Revenue Service officers posted in Delhi for more than five years be shifted out of the capital to field formations.
"This was reversing the existing transfer rules where an officer depending on his place of postings could remain in the Delhi region for up to 15 years," a senior official pointed out.
Takru, a 1979 batch IAS of the Gujarat cadre, had taken over as revenue secretary after Sumit Bose retired on March 31. Takru was earlier secretary, department of financial services.
Source:- timesofindia.indiatimes.com
HC remands case to provide an opportunity to assessee to establish his claim of high seas sales
CST & VAT: Where Assessing Officer found various defects in documents produced by assessee and without asking her to explain those defects disallowed her claim for high sea sale, Assessing Officer was directed to provide an opportunity of hearing to assessee to establish her claim that there was indeed high sea sale as contemplated in law and to take decision in matter afresh
HC: Non-payment of license fee on breach of agreement during lock-in-perod was equivalent to debt
CL : Where leave and license agreement provided that if respondent terminated agreement after lock-in period commenced but before it ended, it incurred an immediate liability on respondent to pay license fee for remainder of lock-in period, same was simply be a component of contractual consideration and, therefore, a debt, properly so called when contingency in contemplation came to pass, for purpose of section 433
Extended period of limitation couldn't be invoked to recover interest where details had been disclos
Excise & Customs : Time-limit of section 11A applies to recovery of interest as well; hence, if duty has been paid regularly and all facts have been disclosed regularly in ER-1 returns, extended period of limitation cannot be invoked to recover interest
Notice is required while contemplating attachment of bank a/c and not for initiating action for such
IT: No notice is required for initiating action for attaching account of tax defaulter; notice required when such act is contemplated
ITAT teaches basics to AO: Income earned by ‘RNOR’ from services rendered abroad wasn’t taxable in I
IT/ILT: Where assessee was not ordinarily resident in India within meaning of section 6(6), income earned by him by setting up an investment fund outside India was not liable to tax in India
CCI approves of combination of Cos. offering hotel and travel services as it would not adversely aff
Competition Act : Where proposed combination between parties engaged in tour and travel would result in providing travel related services under one roof and was not likely to have any appreciable adverse effect on competition in India, same was to be approved
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