Excise & Customs : When there are divergent views rendered by Tribunal, assessee makes out a prima facie for atleast partial waiver of pre-deposit
Monday, 19 May 2014
No reassessment to disallow exp. once allowed during assessment if full disclosures were made for su
IT: Where Assessing Officer allowed assessee's claim for administrative expenses in an order passed under section 143(3), in view of fact that assessee had made full disclosure about said expenses, Assessing Officer could not subsequently initiate reassessment proceedings merely on basis of change of opinion that expenditure in question was wrongly allowed
No concealment penalty if sec. 54F relief was denied because acquisition of house property couldn’t
IT : Where assessee claimed that he had invested sale consideration of a property to purchase another property but due to litigation, deal could not get materialised and he had produced copies of Court paper and had paid LTCG tax and interest, concealment penalty need not be imposed
SSI exemption is optional; Manufacturer can either choose SSI exemption or he can avail of Cenvat cr
Cenvat Credit : In case a manufacturer is covered both under Cenvat scheme and SSI-exemption notification, then manufacturer has right to choose to avail benefit of either of two whichever is more attractive and beneficial
No remand order as CIT(A) had analyzed all clauses of India-UK DTAA to hold that sums couldn’t be ta
IT/ILT : Where in order to determine taxability of payment made to a UK based company for supplying aircraft components to an Indian company, Tribunal remanded matter back to examine provisions of article 13 of India - UK DTAA, in view of fact that article 13(3)(a) would not apply to assessee's case, Commissioner (Appeals) was justified in examining matter from angle of article 13(3)(b) of DTAA only and holding that payment in question was not taxable in India as 'royalty'
CLB permitted petitioner to inspect bank account of respondent Co. to ensure that funds were utilize
Company Law: Where respondent company had opened bank accounts after obtaining necessary approval from Board of Directors in interest of company, they were allowed to continue, however petitioners were given liberty to look into receipts and payments of money in bank accounts so as to ensure that funds were utilised in interest of company
Kochi Can Become Prominent Bunker Hub'
Kochi could easily touch four million tonnes of annual bunker sales and emerge as a prominent bunker hub with its given infrastructure, according to industry experts who spoke at a national bunker business meet, a platform of major stakeholders in the bunker trade in India, which was organised by the Cochin Port Trust here on Thursday.
“The price competitiveness of bunker supplies from Kochi is comparable to major bunker ports such as Fujairah and Singapore and this augurs well for Kochi to ensure its position as a major bunker point,” they said.
Six papers, covering varied topics ranging from international bunkering trends, bunkering scenario in India, initiatives taken by oil majors and the potential of the Cochin Port to emerge as the leading bunker destination, were presented.
Director General of Shipping Gautam Chatterjee inaugurated the conference. Senior executives of all major players such as Chandan Samaiyar of Glander International, D K Basu of Indian Oil, Ashish Khanna of HPCL, Richard D’Souza of Matrix Bharat, Manoj Tandon of Chemoil Adani and Sajith Kumar of JM Baxi, spoke on different aspects like marketing, infrastructure and competitiveness of pricing and quality, to enrich the bunker trade with the latest developments in the business and the way forward.
The event was attended by ship owners, vessel agents, bunker suppliers, bunker traders, barge operators and other allied service providers from the Indian bunker industry. K N Raghavan, Commissioner (Customs), IOC executive director Sharat C Meshram and HPCL executive director S Jeyakrishna also spoke.
Source:- newindianexpress.com
Transfer of trade name and goodwill under franchisee agreement is liable to VAT under Tamil Nadu Sal
CST & VAT : Where assessee was engaged in business of operating supermarket and it entered into a franchise agreement with one 'R' for ten years and transferred licensed right of its names, marks, systems, insignia, symbols and goodwill exclusively in favour of 'R', franchise commission received by assessee from 'R' was taxable at rate of 4 per cent falling under Entry No. 46 of Part B of Schedule I of Tamil Nadu General Sales Tax Act, 1959
Sec. 54F doesn’t stipulate approval from Municipal Corporation for construction of residential house
IT : Provisions of section 54F mandate construction of a residential house, within period specified, however, there is no condition that building plan of residential house should be approved by Municipal Corporation or any other competent authority
Hopes High For Beating India In Mango Exports
Pakistani mango growers are hoping to take a slice out of India’s export market thanks to tough new European regulations.The fruit is a contentious matter regionally with both countries proclaiming it a national treasure and fighting over whose specimens are superior.
Economically, at least, mango exports are one area where Pakistan appears to have a slight edge.According to respective official figures, Pakistan last year exported around 100,000 tonnes for a revenue of $48.6 million over India’s 56,000 tonnes for $44.6m.
But a European Union ban on India’s prized Alphonsos, known as the “King of Fruits”, has presented Pakistan with a chance to widen the gap.
The embargo came into force on May 1, after many shipments were found to contain fruit flies and also affected four types of vegetable.
For Raja Ijaz Ahmed Noon, parliamentary secretary for Punjab, improving farming standards and learning where India went wrong is critical to benefiting from the situation.
“We are taking this development as positive. We are trying to learn from the mistake which India has made,” he said.
Mr Noon was speaking after a seminar of 50 landowners and farmers at a farm 40km northeast of Multan to learn new methods of protecting mangoes from insects.
“We have a potential to export 40 per cent of our total production of mangoes and this year we will try to improve our exports up to 16 per cent,” he said.
Syed Ismat Hussain, a senior pest control official, said his department was visiting farms and orchards to spread the word about the lucrative profits available if Pakistan could continue to meet EU standards.
“Fruit fly hasn’t only affected India but has threatened our orchards also. So we have devised simple but scientific methods to control it,” he said.
Experts are busy hanging plastic bowls on mango trees that are laced with chemicals that mimic female-fly pheromones to attract males.
“The holes are for the flies to enter, but they never fly out,” said Mr Hussain. The so-called sex-trap is fast becoming an industry standard.
Meanwhile, a special awareness campaign on fighting the insect has also been initiated in newspapers and on television and social media.
Syed Zahid Hussain Gardezi, president of the Mango Growers Association of Pakistan, described the taste of Pakistani mangoes as “mesmerising” and said he was hopeful about the chances for global growth in markets such as the EU, America and Canada if the campaign was a success.
“We have to work very meticulously, very scientifically to capture those markets,” he said.
The experts have also been extolling the benefits of the so-called “hot water treatment” which involves immersing the fruit in water at 52 degrees Celsius to kill larvae within the mango pulp. The practice has become a common substitute for fumigation that is seen as harmful to human health.
Habib Agha, an exporter who sends his fruit to Scandinavia, said his mangoes were already of top quality and he hoped to increase his shipments four-fold this year.
“There is a demand from the European Union that there should be no fruit fly in our fruits, it should be hot-water treated, it should be anti-fungus, it should be washed properly. We (have) got these facilities in Multan now,” he said.
Despite a growing sense of optimism, there are several factors holding back the export market.The fruit is most abundant in the southern Punjab, but the airport in Multan lacks direct flights to many major international capitals, meaning the mangoes must travel for hours by road to either Lahore or Karachi.
The mango is a sensitive fruit and needs plenty of irrigation, while long periods in cold-storage can negatively impact on its quality.
Pakistan’s chronic energy crisis means farmers are at times unable to use their water pumps to irrigate fields, while the increasing irregularity of the traditional monsoon season has exacerbated the issue.
Source:- dawn.com
Thai Gold Imports Plunge Amid Political Deadlock
Gold shipments to Southeast Asia’s biggest consumer are forecast to contract by as much as half this year, a sign the unprecedented Asian demand that helped stem last year’s rout in prices is weakening.
Thailand’s purchases may be 150 to 200 metric tons because of falling prices and the country’s political crisis, according to YLG Bullion International Co., the largest local importer. They fell 78 percent in the first quarter from a year earlier and totaled 314 tons in 2013, valued at about $13 billion.
Consumption across Asia reached a record in 2013 even as some investors in the U.S. and Europe lost their faith in bullion as a store of value. Prices snapped a 12-year bull market, the longest in at least nine decades. Holdings in exchange-traded products backed by gold are contracting and Goldman Sachs Group Inc. says prices will keep retreating.
“Investors have a reduced appetite for gold as prices are expected to fall further this year, while returns are much lower than investing in equities,” Pawan Nawawattanasub, the chief executive officer of YLG, said in a May 7 interview in Bangkok. “As the local economy becomes sluggish amid the political uncertainty, and with the downward trend in gold prices, people would rather save money than spend it.”
Gold rose as much as 15 percent this year, before paring about half those gains. Bullion traded at $1,295.24 an ounce today, for an annual advance of 7.8 percent. The metal slumped 28 percent in 2013, the biggest annual loss since 1981. The Standard & Poor’s 500 Index reached a record this month, while Stoxx Europe 600 Index advanced to the highest since 2008.
Gold consumption in Thailand, the biggest user in Asia after China and India, expanded 73 percent to 140.1 tons last year, according to World Gold Council data. Imports were higher than local consumption in 2013 as some bullion was re-exported, including jewelry.
World consumer demand rose 21 percent to 3,864 tons in 2013 as usage in China, the largest, surged 32 percent to 1,065.8 tons, an all-time high. Across Asian countries tracked by the council, including India, China, Japan and Southeast Asia, consumption expanded 25 percent to 2,434 tons.
Demand in China in 2014 may drop to the 2012 level, Dick Poon, the general manager at Heraeus Metals Hong Kong Ltd., said in a May 8 interview. Sales at Hong Kong jewelers fell about 30 percent from a year earlier during the Golden Week break that began May 1, according to Haywood Cheung, president of the Chinese Gold & Silver Exchange Society. Demand last year was special after prices slumped into a bear market, he said.
Imports by India, the second-largest consumer, may total 650 tons to 700 tons in the 12 months started April 1 from 650 tons a year earlier, Rajesh Khosla, the managing director of MMTC-PAMP India Pvt., the country’s biggest refiner, said last month. The government will probably keep some form of curbs on imports after the elections to control the current account deficit and defend the rupee, he said in an interview.
Thailand has had a caretaker administration since December amid a multi-year tussle between rival groups over control of the government. The deadlock, marked by violent street clashes, has caused consumer confidence to slump to an almost 13-year low, and credit-rating companies warned that prolonged unrest threatens to damage an already fragile economy.
The crisis has crippled many of the main economic drivers, hurting private consumption and tourism. Data from the government today showed the economy shrank 2.1 percent in the first quarter from the previous three months.
While the political impasse makes it hard for businesses to make investment decisions, consumers still seem to have a positive view on the gold price, said Victor Thianpiriya, a commodity strategist at Australia & New Zealand Banking Group Ltd. in Singapore.
Imports of bullion nearly doubled to 10.6 tons in March from February, according to the data from the Ministry of Commerce. That may mean demand is starting to improve, Thianpiriya wrote in an e-mail.
“The sharp increase in gold buying last year is a clear indication of the demand response to lower prices,” Thianpiriya said. While prices continued to drop, hurting confidence in gold as an investment, Asia demand isn’t temporary and will continue to support prices, he said.
Thai consumption may drop this year to the 2012 total of about 80 tons, Albert Cheng, the WGC’s Far East managing director, said in an e-mail. Purchases will extend declines as long as India continues to impose high import taxes designed to curb inflows of goods such as jewelry from Thailand, he said.
India raised tariffs on overseas bullion three times last year, and tightened financing to rein in a record current-account deficit and defend the rupee. The government also increased the import tax on gold jewelry.
Bullion prices will extend losses as the U.S. Federal Reserve trims its stimulus program, according to Goldman Sachs. The metal will drop to $1,195 in three months and $1,050 in a year, the New York-based bank said in a May 13 report.
Holdings in the SPDR Gold Trust, the largest bullion-backed ETP, dropped to 780.46 metric tons on May 12, the lowest level since January 2009, data compiled by Bloomberg show. The assets fell 41 percent last year.
The number of Thai investors trading gold is significantly lower this year as many still hold bullion bought last year, said Pawan, who last year correctly estimated imports of more than 300 tons. Local demand this year is mainly driven by consumers buying necklaces and small-sized bars, she said.
“If prices continue on a downward trend, gold demand will remain slow,” Pawan said. “We could see investors returning into the market, building up positions, if prices fall to $1,100.”
Source:- businessweek.com
Temporary Closure Of Odisha Iron-Ore Mines To Hike Indian Import Dependency
India’s Supreme Court order temporarily shutting down almost half of the iron-ore-producing mines in Odisha, which was issued last Friday, was expected to trigger a sharp rise in imports of the resource, reversing the current falling trend.
The Supreme Court order closing down 26 mines across the province followed its previous verdict that mines under ‘deemed second or subsequent renewal’ had been operating illegally.
The closure of the mines would bring down iron-ore production from Odisha by about 40-million tonnes a year. The court order would entail a halt in operations of six of Tata Steel's mines, two of Steel Authority of India Limited (SAIL), two of Orissa Mining Corporation and one of Aditya Birla Group subsidiary, Essel Mining.
In 2013/14, the eastern Indian coastal province produced an estimated 70-million tonnes of iron-ore from 56 operational mines.
According to Tata Steel and Federation of Indian Mineral Industries, the court order would seriously impact supply of raw material for the steel industry, both in terms of availability and prices, with several steel plants in the province dependent on iron-ore from the region forced to resort to high-cost imports of iron-ore.
The fall in domestic supplies and forced import dependency would also reverse the current falling trend in iron-ore imports.
During 2013/14 Indian imports of iron-ore fell to a five-year low at 420 000 t, down 86% over the previous year when imports had touched 3.05-million tonnes.
Over the last one year, higher availability from domestic mines and steadily falling international prices had resulted in an average $11/t fall in the local price of iron-ore lumps and a $6/t average fall in the local price of high-grade fines (iron content 63.5% and above).
However, according to FIMI, the trend would be reversed following the closure of mines in Odisha.
According to analysts, Tata Steel and SAIL, two of the country’s largest steel producers, would be most impacted by the mines closure. Tata Steel would have one lease still valid in the province, which would produce a maximum of 1.2-million tonnes a year, while SAIL would have two valid leases with maximum production capacity of 3-million tonnes a year.
Tata Steel, with domestic production capacity of about 10-million tonnes a year, sourced an estimated 75% of its ore requirement from captive mines in Odisha. While no information was available of the company’s existing inventory of the raw material, analysts said that the steel producer would have to source ore from open market auctions within the country and also resort to imports.
To curb illegal mining, the Supreme Court imposed a ban on mining in the southern province of Karnataka and in Goa, on the western coast. The ban on mining in these two regions slashed Indian iron-ore exports by 85% pushing India down to tenth slot from third on the list of the largest ore-exporting countries.
The court lifted the ban on mining in Goa on April 22, following a similar move in Karnataka earlier. But mining operations in these two producing regions were yet to get back on the rails.
Source:- miningweekly.com
ESIC couldn't go against rehab scheme framed by BIFR to deny waiver of damages payable by petitioner
CL: Where BIFR sanctioned scheme for rehabilitation and scheduled payment due to ESIC, ESIC could not later on raise demand of interest due
No sec. 68 additions on receipt of loan from father when his credibility to pay loan was proved
IT: Where assessee had entered into an agreement for sale and it was clear from facts that assessee had understated transaction and consideration had been passed over and above what had been stated, Assessing Officer rightly accepted value adopted for stamp duty as sale consideration and made addition under section 69B
Industrial cables with capacity of 11,00 volts are liable to VAT at 5% as per Delhi VAT Act
CST & VAT : Where assessee was engaged in manufacture of industrial cables having capacity of 1100 volts, said cables were classifiable under Entry No. 40 of Schedule III of Delhi Value Added Tax Act, 2004 and thus attracting rate of tax at 5 per cent
Cutting and polishing of diamond amounts to ‘manufacture’ for purposes of sec. 80-IC deductions
IT: Cutting and polishing of diamond amounts to manufacturing or production of article or thing and, therefore, an assessee, engaged in said activity, is entitled to claim deduction under section 80-IC
Payment to NR assisting in overseas shoot was subject to Article 14 of Indo-Thai DTAA; not taxable i
IT/ILT: Payment made for shoot carried out abroad to a foreign company which has no Permanent Establishment (PE) in India, is not taxable in India as per Indo-Thailand DTAA
Levy of service tax on services in restaurant is valid
Service Tax : Article 366(29)(f) enabling levy of VAT on 'deemed sale' of food, etc. cannot bar imposition of service tax on service rendered by a restaurant; hence, imposition of service tax on service element in restaurant transactions was valid but pleas of double taxation was not considered, as same was not raised by assessee
SAT deleted penalty for not closing trading window prior to board meeting as AO didn’t assert any vi
SEBI: Where Adjudicating Officer imposed penalty upon appellant-company for not closing trading window prior to board meeting of appellant-company, in view of fact that in impugned order on one side it was held that Compliance Officer was liable for not closing trading window and, on other hand it was held that Compliance Officer had not violated any of regulations, impugned order making appellant company liable for not closing trading window could not be sustained
Case remanded to AO as he had made additions for undisclosed income without verifying facts
IT: Matter remanded since addition as undisclosed income was subject to ascertainment of facts on proper verification by Assessing Officer
Subscribe to:
Posts (Atom)