IT : Where purchase of specified bonds just a few days beyond period of six months was under a bona fide mistake, exemption under section 54EC could be denied but penalty under section 271(1)(c) could not be levied
Wednesday 14 May 2014
Case remanded to decide I-T exemption on receipt of incentive bonus to meet exp. on procuring LIC bu
IT : Where assessee, a Development Officer in LIC, received incentive bonus in order to reimburse expenditure required to be incurred for procuring business and claimed that part of incentive bonus was required to be exempted under provisions of Act, Commissioner was directed to decide issue keeping in view decision of Gujarat High Court rendered in case of CIT v. Kiranbhai H. Shelat [1999] 235 ITR 635
Mere dilution doesn’t amount to manufacture unless other ingredients are also added to form a new pr
Central Excise : Mere dilution by way of addition of water does not amount to 'manufacture'; however, where other ingredients are also added in laboratory resulting into new and different products, same shall amount to manufacture
HC upheld sec. 68 addition as assessee failed to substantiate genuineness of loan transaction
IT : Where in support of loan transactions, assessee could not bring any evidence on record including names and addresses of creditors, authorities below rightly concluded that said transactions were bogus and, thus, loan amount was to be added to assessee's income under section 68
Hiring fees received from State Roadways for buses provided to them were liable to ST under ‘rent-a-
Service Tax : Hire charges from State Roadways for buses supplied under specific contract are prima facie liable under 'rent-a-cab service' and not 'supply of tangible goods service
HC dismissed winding-up plea by foreign bank as parties had agreed to settle dispute only through En
CL: Where petitioner had chosen to confer exclusive jurisdiction on English Courts and had intended application of English law to contract, petitioner was not justified in seeking to invoke jurisdiction of High Court in India for winding up of respondent-company
TPO couldn’t reject segmental results to work out ALP if they were accepted for computation of sec.
IT/ILT : Where TPO had accepted segmental results for purpose of computing deduction under section 10B, he could not reject those results while determining ALP of international transactions entered into by assessee with its AE
HC raps AO for revisiting same issue to slap tax notice on 'Vodafone'; reassessment quashed
IT : Where in original assessment and first reassessment, issue of expenditure on dealer's commission was verified, a second reassessment was barred
Rupee At 9-Month High Of 59.67 As Stocks Surge On Hope Of Nda Win
The rupee closed below the 60-level for the first time since April 2 as the euphoria in the stock exchanges had its impact on the foreign currency markets. The local unit ended at a nine-month closing high of 59.67, a gain of 37 paise from Monday's close after exit polls predicted that a National Democratic Alliance government would come to power at the Centre.
The rupee opened higher at 59.70 and touched an intra-day high of 59.59 before closing lower at 59.67. Dealers said that part of the reasons for the rally was renewed buying by foreign institutional investors in the equity markets. The strengthening rupee will make all imports cheaper and reduce pressure on government finances as it brings down the burden of oil subsidies. But exporters warn that gains in the current account deficit would be lost if the rupee remains below 60.
"The fact that the rupee managed to close below 60 seems to suggest that there is a market comfort as well as a regulator comfort with the rupee strengthening," said Harihar Krishnamoorthy, treasurer, First Rand Bank. He added that while the forex market does get influenced by sentiment as, at the end of the day, it is the demand and supply that matters. "After a point, it is the normal factors such as FII inflows that will determine the level. Markets will watch to see if FII inflows are just being front-loaded or whether they continue with budget and other measures. If the GDP is indeed bottoming out, non-oil imports will rise. This is good from the economy point of view but it is negative for the dollar-rupee," he added.
"We view exit polls with some caution based on the results in 2004 and 2009, and especially in this case where there appears to be a differential between them and the majority of pre-election opinion polls. Additionally, the bar to exceed expectations on the final counting day (May 16) has moved even higher. However, notwithstanding a possible knee-jerk market reaction on May 16, the exit polls confirm and strengthen our baseline expectation of a stable NDA-led government, which is a positive outcome, in our view," said Sonal Varma of Nomura Securities.
In the short term, future movement of the rupee will depend on the election results and the budget. Besides this, markets will look at signals from the rating agencies. The rise in the stock market indices raises the possibility that more companies will tap domestic and international markets with equity issuances.
According to Krishnamoorthy, investors are looking out for decontrol of administered prices for diesel or gas in the budget which will reduce the burden of subsidies on government finances. "This can either mean lesser borrowing or freeing up resources to productive segments. The strengthening rupee will reduce the subsidy numbers and some of the rise in stock prices seems to be factoring in general decontrol," he added.
Source:- timesofindia.indiatimes.com
Domestic Iron Ore Prices Will Not Fluctuate Much: Nmdc
India's largest iron ore producer NMDC Ltd today said there would not be much fluctuation in domestic prices of the key steel-making raw material even after a slump in international rates.
"Prices will remain stable here. There could be slight up and down, but it will remain largely stable. My hunch is that domestic iron ore prices will remain same at current level," NMDC Chairman Narendra Kothari told PTI in an interview.
International iron ore prices have declined almost 25% so far in 2014 to just above % 100 a tonne, the lowest level since September 2012, on increased supply and subdued steel demand.
The Australian Treasury earlier in the day reportedly said iron ore prices could fall continuously until June 2016 to below % 83 a tonne. Australia is the world's third-largest exporter of iron ore.
Kothari, who took over as Chairman and Managing Director of NMDC on April 21, is unperturbed about the declining trend, saying, "Our prices are almost half of the international prices. So I don't find any effect on this. Our prices should remain same."
After keeping prices unchanged for two months, state-run NMDC slashed prices of iron ore lumps, considered high grade due to its rich iron content, by Rs 200 per tonne in May and kept prices of iron ore fines, considered low grade, at the previous month's level.
Following this, lump ore prices increased to Rs 4,300 per tonne while that of fines was at Rs 2,910 a tonne. NMDC decides product prices on a monthly basis.
Kothari said the company's margins would remain "more or less same" for the current financial year, in which sales could touch 31 million tonnes and production 32 million tonnes. The targeted turnover is about Rs 12,000 crore, while profit could be more than Rs 6,000 crore.
Buoyed by a rise in demand from domestic steel makers, NMDC's sales and production touched a record of over 30 million tonnes in 2013-14. The company's current iron ore production capacity is 32 million tonnes.
Source:- business-standard.com
Exports Up 19.9Pc To Rs 68.2B
Exports of Nepal’s major export products, including woollen carpet, readymade garment and large cardamom, have surged in the first nine months of the current fiscal year, thanks to a depreciation of the Nepali rupee against the US dollar.
However, Iron and steel products, which have emerged as the largest export items over the last few years, posted a meagre 1.2 percent growth to Rs 9.18 billion.The overall exports grew 19.9 percent to Rs 68.2 billion.
Export earnings from woollen carpet increased 39 percent to Rs 5.48 billion, while exports of readymade garment surged 46.4 percent to Rs 4.01 billion, according to the Trade and Export Promotion Centre (TEPC). Large cardamom saw its exports soar 40.1 percent to Rs 3.69 billion.
Iron and steel products are also Nepal’s second largest import items after petroleum. The country imported iron and steel products worth Rs 47.24 billion over the review period, according to TEPC.
Exporters attributed the growth in exports, particularly of readymade garment and carpets, to the appreciation of the US dollar. In the case of readymade garment, market diversification towards Europe from the US has also helped boost their exports.
“The strong dollar resulted in high export earnings,” said Yagya Pokharel, an exporter of readymade garment. “Orders have also increased 12-15 percent,” he said, adding the demand from European countries like Italy, Germany, France and Spain has increased. “We have been receiving bulk orders in the recent days from these countries.”
The US was the main buyer of Nepali garment products until 2005. But after the end of quota system in the year, Nepali garment products lost their competitive edge, eventually losing the US market. Although India was emerging as the next growth market for Nepali garment, the countervailing duty imposed on the product by India last year resulted in a drop in garment exports to the southern neighbour.
As Europe has emerged as the major market for Nepali garment, carpet exports to the US have increased notably. “Demand from the US is on the rise,” said Lanka Man Roka, past president of Nepal Carpet Exporters’ Association. According to carpet exporters, US buyers purchase high-value (more than 100 knots) carpets.
As far as iron and steel products are concerned, manufacturers say the exports to new markets, such as African countries, helped the sector grow.
Bal Krishna Shrestha, past president of Nepal Steel Rolling Mills Association, said orders have been encouraging in the recent days due increased demand from both India and Africa.
“Mainly, the demand for MS Pipe, zinc sheet and iron rod made up of prime billet has surged,” said Shrestha, adding they were exporting zinc sheet to India and some African countries, including Kenya.
Source:- ekantipur.com
Tüv Süd’S Bangalore Lab Offers Certification For Mango, Vegetable Exports
TÜV SÜD’s Bangalore laboratory has come forward to help mango and vegetable exporters obtain certification as prescribed by importing countries.
TÜV SÜD food testing laboratory in Bangalore has been recognised by APEDA to carry out chemical and microbiological analysis of products classified as fresh fruits and vegetables, including mangoes, processed fruits and vegetables and other processed foods.
"The temporary ban on Indian mangoes has the potential to impact the growth of the agriculture export sector in India. The months of May and June witness the most number of mango consignments being exported out of the country and we intend to help Indian exporters in every possible way to improve the acceptability of their products globally.
We extend the support to pack houses and exporters to comply with the food safety management system practices through our internationally accredited and APEDA approved certification services and food testing laboratory network,” Pankaj Jaiminy, AVP, Food testing Services, TÜV SÜD South Asia, said.
Source:- thehindubusinessline.com
Postal ballot voting can't completely substitute actual meeting; doesn't apply to court-convened mee
CL : Provisions for compulsory voting by postal ballot and by electronic voting to the exclusion of an actual meeting cannot and do not apply to court-convened meetings, such as meetings for approval of Schemes u/s 391/394 of the Companies Act, 1956 and section 230/232 of the Companies Act, 2013. At such meetings, provision must be made for postal ballots and electronic voting, in addition to an actual meeting. Electronic-voting, must be made available at the venue of the meeting. Any shareholde
HC raps AO for revisiting same issue to slap tax notice on 'Vodafore'; reassessment quashed
IT : Where in original assessment and first reassessment, issue of expenditure on dealer's commission was verified, a second reassessment was barred
HC affirms penalty as purchases made against ‘C’ form wasn’t in compliance with registration certifi
CST & VAT: Where assessee had purchased diesel generator set by using 'C' form, whereas certificate of registration issued under Central Sales Tax Act authorised it to purchase machines, mechanical press, welding machine, etc., against C form imposition of penalty upon assessee under section 10(b) for false representation was justified
HC denied request for deferment of advertisement for winding-up of co. as it was filed to abuse Cour
CL : Court cannot pass an order for winding up, unless petition is advertised and is heard thereafter; however, company can invoke inherent jurisdiction of Court under rule 9 of Court Rules, inter alia, seeking deferment or suspension of advertisement of petition in interest of justice or to prevent abuse of process of Court
Sugar Bloc Livid As Centre Trims Sop For Exports
The Union government has reduced the incentive for raw sugar export almost by a third from Rs 3,300 per tonne to Rs 2,277 per tonne for April and May. Calling it a betrayal , the sugar industry has said the decision will result in losses for mills which exported sugar in April and May. "The industry is not only surprised but highly disappointed about the reduction in the rate of incentive," said Abinash Verma, director general, Indian Sugar Mills Association (ISMA).
The Ministry of Consumer Affairs , Food and Civil Supplies issued the notification in this regard on May 7. In a letter written to the food secretary, ISMA has said: "According to the notification, sugar mills, exporters as also importing countries entered into contracts for export and import of sugar from India, and physically exported substantial quantities expecting Rs 3,300 per tonne as the incentive on raw sugar exports. Such a change in position by the government without any notice or any ground whatsoever, in contravention to the provisions of the Gazette Notification (law prescribed in this regard) has created a massive confusion in the market and a sense of betrayal amongst the millers of the country."
Based on the ruppe-dollar exchange rate criteria, the subsidy for April and May was working out to be Rs 3,800 per tonne. However, the industry was expecting it to remain constant at Rs 3,300 sper tonne as one has to go to the cabinet to increase the subsidy. The reduction will result in losses to the mills which have dispatched or exported sugar after April 1. According to industry sources, this quantity could be between 3 lakh tonne to 5 lakh tonne.
The downward revision of export incentive by almost one third is also likely to put pressure on domestic prices, which have seen a declining trend for the past few weeks. "There was a big disparity in the world market and the Indian market before the announcement of the raw sugar subsidy. A reduction in the subsidy has widened the disparity which will reduce exports and put prices in the domestic market under pressure," said Rahil Shaikh, managing director of the London head-quartered trading company ED&F Man.
The ministry of food had announced an incentive of Rs 3,300 per tonne for February and March 2014. It has to be calculated every two months after taking into account the average exchange rate of the rupee vis-a-vis the dollar during the seven days immediately April 1, June 1, and August 1 for April-May , June-July and August-September respectively . Claiming that it is not according to the law prescribed by the ministry in February, ISMA has said the reduction in the rate of incentive cannot be appreciated as there is more than surplus sugar in the country which needs to be exported .
"Ex-mill sugar prices have not only fallen in the past one month but continues to be lower than the cost of production leading to losses to the industry when cane price arrears for farmers continue to be outstanding at historically highest levels at over Rs 12,000 crore," said the letter.
Source:- economictimes.indiatimes.com
Wheat Exports From India Can Reach 10 Mn Tonnes
India can achieve 10 million tonnes of wheat exports every year on managing its annual output at 95 million tonnes and reducing spoilage, a study conducted by The Associated Chambers of Commerce and Industry of India (Assocham) said.
Total wheat exports from India was recorded at 6.5 million tonnes worth Rs 10,529 crore in the financial year 2012-13 as compared to a mere 0.74 million tonnes worth Rs 1,023 crore in the previous year, data compiled by Directorate General of Commercial Intelligence and Statistics (DGCI&S) under the Ministry of Commerce, showed.
The Assocham study quantifies total spoilage at around 40% of India’s annual wheat output worth Rs 50,000 crore due to the dearth of adequate scientific storage together with slow pace of creating fresh warehousing capacity.
“A long-term and stable wheat export policy is the need of the hour as it would go a long way in developing dedicated clientele in the global wheat market thereby helping India in earning much needed foreign exchange, thus issues vis-à-vis storage, domestic consumption, food security needs, population growth and others must be analysed and a pragmatic view should be taken in this regard,” noted the study titled ‘Wheat Economy of India,’ conducted by Assocham.
Afghanistan, Bangladesh, Indonesia, Korea (RP), Malaysia, Nepal, Oman, Philippines, Qatar, Saudi Arabia, Thailand, UAE, Yemen, Vietnam and African Countries like Djibouti, Ethiopia, Sudan, Tanzania and others are major importers of wheat from India.
“India should formulate a strategy to corner about 10% share in the 100 tonnes global wheat market provided right steps are taken to tap this potential in the long run,” said D S Rawat, national secretary general of Assocham while releasing the chamber’s study.
The total production of wheat which accounts for about 35% of India’s foodgrains’ basket may reach 100 tonnes by 2016-17 from the level of about 93.5 tonnes as of 2012-13. However, unless concerted efforts are made to fight the vagaries of weather, risk of pests and diseases and poor productivity in most wheat producing states, it is difficult to achieve higher wheat production targets on a consistent basis, Rawat added.
Source:- business-standard.com
Veg Oil Imports Rise 27% To 8.3 Lakh T In April
Vegetable oil imports rose 27 per cent to 8.32 lakh tonne in April on account of a sharp increase in the shipment of crude palm oil (CPO) and crude soft oils, the Solvent Extractors Association of India today said.
Imports stood at 6.54 lakh tonne in the same month of the previous year, it said in a statement.
India meets about 60 per cent of its annual vegetable oil demand of 17-18 million tonne via imports. Palm oil makes up 80 per cent of the country’s total vegetable oil imports.
“Indian refiners prefer to import crude soft oil over CPO in India, which has reflected in the pattern of import in the last few months,” it said.
While crude soft oil imports rose two-fold to 2.83 lakh tonne in April 2014 from 1.39 lakh tonne a year-ago, the shipment of palm oil import fell 7.45 per cent to 5.36 lakh tonne from 4.98 lakh tonnes.
Among crude soft oils, the import of soyabean increased to 1.13 lakh tonne from 50,000 tonne. Similarly, import of sunflower oil rose to 1.7 lakh tonne from 88,368 tonne.
Among palm oil variants, the shipment of CPO rose 87 per cent to 4.38 lakh tonnes from 2.33 lakh tonnes, while the import of RBD palmolien declined sharply to 81,100 tonne from 2.53 lakh tonnes.
According to SEAI, import of non-edible oils fell marginally to 13,325 tonne in April this year compared with 13,500 tonne in the year-ago period.
As on May 1, edible oils stock at various ports is estimated at 4.65 lakh tonne, of which CPO stood at 2.3 lakh tonne. About 7 lakh tonnes of edible oil is in the pipeline.
Source:- thehindubusinessline.com
HC denied deferment of advertisement of winding-up of co. as it was filled with an intent to abuse C
CL : Court cannot pass an order for winding up, unless petition is advertised and is heard thereafter; however, company can invoke inherent jurisdiction of Court under rule 9 of Court Rules, inter alia, seeking deferment or suspension of advertisement of petition in interest of justice or to prevent abuse of process of Court
Service tax paid on Group Personal Accident and Group Medical Policies of employees is an eligible i
Cenvat Credit: Service tax paid on Group Personal Accident and Group Medical Policies for employees is eligible for credit as input service
No deduction of sum incurred by firm on partner's property even if it was used for business of firm
IT : Where payment was done on behalf of and at behest of individual partners who owned property, claim of such expenses by partnership firm was not allowable
Concessional excise duty rate on non-availment of credit isn’t applicable to imported goods for lev
Excise & Customs : Since question of taking Cenvat credit does not arise in case of imported goods, this condition cannot be satisfied in respect of imported goods and hence, concessional rate of excise subject to non-availment of credit is not applicable to imported goods for levy of additional duty of customs
No selection of comparables on basis of info obtained under sec. 133 if it wasn’t made available to
IT/ILT : Where TPO selects a comparable only on basis of information obtained under section 133(6), it becomes duty of TPO to have necessarily furnished information so gathered to assessee and take its submissions thereon into consideration before deciding to include said company in final list of comparables
SAT bans appellant from accessing securities market as he withheld info on withdrawal of investment
SEBI : Where corporate announcement was made regarding investment to be made resulting in spiking share prices but said offer was withdrawn without being announced to public and stock exchange and chairman offloaded securities at higher price, penal consequences would follow
No denial of sec. 11 relief when some income of trust was also exempt under sec. 10
IT-I: For availing exemption under section 11, income derived from property held under trust has to be considered irrespective of fact that some of income so derived is also exempt under section 10
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