IT : Where it was only before Tribunal, relevant documents were produced by assessee for first time, matter ought to be remitted either to Commissioner (Appeals) or Assessing Officer
Thursday 5 June 2014
TDS Certificate to supersede Form 26AS in case of variation between two; ITAT comes in rescue of ass
IT: Assessee, by furnishing TDS certificates bearing full details of tax deducted at source, had discharged primary onus on it towards claiming credit in respect of tax so deducted
Cenvat credit couldn’t be denied if ST was already paid on services received from abroad prior to 18
Service Tax : Where Revenue was itself insisting on payment of service tax under reverse charge on services received from abroad prior to 18-4-2006, payment of tax and taking of credit by assessee could not be said to be against law
During pendency of oppression plea, CLB allows Co. to raise funds on security of assets in interest
CL : Where petition alleging pending acts of oppression and mismanagement was pending, prayer for vacating interim order to raise finance from banks and financial institutions against security of assets of company for funding construction of project in hand was to be allowed for limited purpose in interest of company
50% of additional depreciation allowable in 1st year and balance in next year on usage of asset for
IT/ILT : In terms of section 32(1)(iia), there is no restriction on assessee to carry forward additional depreciation and, thus, where only 50 per cent of additional depreciation is allowed in year of purchase of machinery as it was put to use for lass than 180 days during said year, balance 50 per cent of additional depreciation can be claimed in subsequent assessment year
Jsw Steel Imports Iron Ore As Local Supply Falls
Importing iron ore, buying low-quality ore and operating mills below capacity are the new normal for JSW Steel Ltd, the third-largest steelmaker in India where illegal mining of minerals has been choked by court orders.
JSW, run by billionaire Sajjan Jindal, is importing 500,000 tonnes of iron ore of Australian and South African origin by end-June or July to make up for a domestic shortfall, its joint managing director Seshagiri Rao told Reuters on Wednesday.
This is the biggest monthly import for JSW, which used to use only higher-grade ores from Karnataka and Odisha states but is now buying low-quality varieties from Goa as a court crackdown on illegal mining has cut supplies in these states.
JSW last month won a bid to buy 11,484 tonnes of low-quality ore from Goa. The state has traditionally exported most of its iron ore to China as local steel mills preferred using higher-quality ores from other states and did not have the technology to use lower grades.
Rao said that top Indian iron ore producer NMDC Ltd's move to raise prices by up to 9 percent in June could make imports cheaper than domestic prices.
"Across the country iron ore prices are going up whereas world prices are coming down," Rao said. "If availability is an issue and prices continue to go up, import is the only option."
This could support global iron ore prices, which fell for a sixth straight month in May in their longest losing streak on record, with hefty supply pushing prices to their lowest since September 2012.
NMDC and some other miners have been able to raise prices mainly because Supreme Court ordered the closure of nearly half of Odisha's 56 mines two weeks ago due to the non-renewal of years-old leases.
Odisha is the biggest iron ore producing state in India and the closed mines accounted for about half of its output of more than 70 million tonnes last fiscal year.
"Demand is quite high due to various mining restrictions," an NMDC official said, decining to be named.India was once the world's third largest exporter of iron ore, sending out more than 117 million tonnes in the fiscal year through March 2010. It slipped to No. 10 last fiscal year, with exports estimated at less than 20 million tonnes.
JSW Steel, whose second-biggest shareholder JFE Steel is the world's ninth-largest steel company and a unit of Japan's JFE Holdings Inc, has been forced to run its 10 million-tonne-per-year plant in Karnataka at about 85 percent capacity due to the shortage of iron ore.
Source:- in.reuters.com
India Boosts Local Wheat Purchases, Gives Buffer Against El Nino
Indian purchases of wheat from local farmers are set to climb at least 8 percent this year, bolstering government stocks against forecasts of below-average monsoon rains and the specter of a possible El Nino weather pattern.
Poor rains in India, where farmers depend on the annual June-September monsoon to irrigate nearly half their land, typically stoke inflation - a key worry for Prime Minister Narendra Modi's newly formed government.
"Higher procurement this year will add substantially to higher stocks and that gives us a considerable cushion to deal with any price rise if lower monsoon rains affect sentiment, pushing up prices," said a government official who did not wish to be named as he is not authorized to speak with media.
Larger state purchases in the world's second-biggest grain producer could also enable the government to allow more exports if it turns out the wheat is not needed domestically.
India has sold a total of about 11.5-12 million tonnes of wheat overseas in the past two years, dragging on global prices Wc1.
India's weather office has already forecast a high chance of El Nino, a weather warming event associated with droughts in some regions.
The monsoon typically arrives on June 1, but rains are late this year with the weather office expecting them to hit the southern Kerala coast over the next day.
Poor rains could thwart government efforts to boost growth which has nearly halved to 5 percent in the past few years and curb inflation that has been running close to double digits.
State procurement agency Food Corp of India has bought 27.6 million tonnes of new-season wheat from local farmers so far this year and will likely purchase a total of 28 million tonnes in the whole of 2014, said a government source, declining to be identified.
The government-backed corporation bought 25.9 million tonnes of wheat from local farmers in 2013.
Unlike rice, Indian farmers grow only one wheat crop a year, with planting from October and harvests in March.
The government buys rice and wheat from local farmers at a fixed price to help boost output, build stocks for its mammoth food welfare programs and to meet any emergency.
India eased a four year-old ban on wheat exports in 2011 by allowing private traders to sell wheat overseas. It later permitted some sales from state-run trading firms.
Shipments totaled 11.5-12 million tonnes in the 2012/13 and 2013/14 fiscal years that end on March 31, with about 6 million tonnes of exports from the Food Corp's warehouses.The government has forecast a record 95.85 million tonnes of wheat output this year against 93.61 million tonnes in 2013.
Source:- in.reuters.com
Phdec's Inaction Hurting Mango Export
While the Ministry of National Food Security and Research (NFS&R), Department of Plant Protection, and All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) are up jointly to stall European Union's warning to stop the import of mangos in case fruit flies are detected, Pakistan Horticulture Development and Export Company (PHDEC) which should have been in the forefront in meeting this challenge is lying dormant and criminally silent over the issue.
Indeed, it is a major issue which should have engaged the attention of the PHDEC to save the exports of mangos, an important foreign exchange earner, to 27 countries of the EU. Not only that, no measures have been taken so far to ensure the export of mangos to the high end market of United States. Whereas India followed US Department of Agriculture's guidelines which enabled it to enter that high end market, Pakistani mangos which are in great demand have not been able to make way to that market as no facilities have been established here yet to meet the sanitary, phyto-sanitary and quarantine requirements of Department of Agriculture.
Pakistan is the fifth largest producer and eighth largest exporter of mango in the world, according to a 2011 FAO report. Our mango is being exported in large quantities (about 83,029 tons in 2010-11) to Europe and the Middle East. According to the Federal Board of Statistics, Pakistani mango export volume (2011-2012) was 85.11 thousand tons valued at 36.66 million US dollars.
Average export of Pakistani mango during the last five years was 80,370 tons. Although Pakistan produces around 1.8 million tones mango annually but the export volume has been very low (4-5% only) of the total production, as it is facing multiple serious challenges in international markets.
Ahmad Jawad of Harvest Trading told Business Recorder that mango export is decreasing mainly due to unreliable cool chain system, low transport capacity, poor packaging materials, and lack of processing technology. Recently, 14 processing plants (HWT) have been installed by USAID funding. However, these are still inadequate to properly quarantine pest mitigation. "Controlled temperature, proper packaging and transportation in reefers improve freshness of mango and its shelf life," he said.
If we look at the things in international scenario, in last three years, over 1.1 million tonnes of mangos has been traded internationally each year. Parts of the mangos were traded by importing countries. If the import of all countries is added up, there is an annual import of 1.5 million tonnes with a collective (C&F) import value of $1.9 billion.
Holland plays an important role in the trade. Globally, Holland is the second largest importer of mangos. But almost 80% is re-exported. Holland comes fourth in the list of mango exporters.
Interestingly, Holland is an important centre in the EU mango trade. Last year, a total of almost 150,000 tonnes was imported, but of this, 110,000 tonnes was re-exported. Similarly Mexico, Brazil and Peru are the most important exporters. After Holland, China, Saudi Arabia and the United Arab Emirates are the main importers of mangos. The Gulf States as a group are a grouping market with an import of 245,000 tonnes. Jawad said that the important growing markets for mango sales are the United States and the Gulf States as well as Canada, UK and Russia.
It's high time that Pakistan Horticulture Development & Export Company (PHDEC) lay down detailed marketing strategy in consultation with the Ministry of Commerce for the export of mangoes to different destination for the next 5 years. Then only we may be able to en-cash this crop properly. We must keep in mind that in exports, creating linkages are most important otherwise one cannot achieve desired results.
Source:- brecorder.com
Maharashtra Sugar Mills Await Clarity Over Export Subsidy On Raw Sugar
Sugar mills in Maharashtra have completed contracts for export of raw sugar to the tune of 61 lakh quintals this season. They had signed contracts for 66 lakh tonne of raw.sugar, senior officials from Maharashtra State Cooperative Factories Federation (MSCFF) said.
Since the contracts have already been signed, a large quantum of exports had to be honoured in the absence of clarity on the export subsidy, Sanjeev Babar, MD, MSCFF said. There has been uncertainty regarding this issue, he said. “The federation has been seeking clarity on the issue of export subsidy and wanted the notification on the subsidy with retrospective effect in order to avoid losses to mills,” he added.
Letters have been sent to the new ministry and we now await measures from the new government, he said.Senior industry officials said that withdrawing the incentives at this stage would be wrong. Currently, the ex-factory sugar sale price in Maharashtra stands at R28-29 a kg, while the cost of production is R31-32.
The UPA government had announced export subsidy of R3,300 a tonne on raw sugar to help the industry export excess stock and clear dues. The subsidy was for February and March. For April and May, the government had reduced it to R2, 277 a tonne, owing to change in dollar-rupee exchange rates.
According to Indian Sugar Mills Association, although exports have surged this year, a 31% cut in subsidy for raw sugar production for April and May from R3,300 per tonne offered in February and March has slowed the pace of exports.
They say the subsidy quantum for April and May should have been around R3,800 per tonne, factoring in the appreciation of the rupee, and not R2,277 per tonne, as decided by the food department. Maharashtra, the largest producer, has produced around 7.70 million tonne until May 15 this year, the same as the previous year.
Arrears to cane farmers across the country have mounted to about R10,000 crore from about R3,000 crore at the start of the current marketing year in October 2013. In December, the centre had approved a R6,600 crore interest-free loan to the sugar industry to help make payments to sugarcane farmers.
Source:- financialexpress.com
Gold Drops On Weak Global Cues
Gold prices declined by Rs 60 to Rs 27,180 per ten gram in the national capital on Thursday on stockists selling, tracking a weak trend overseas.
Silver, however, held steady at Rs 40,500 per kg on restricted buying activity.Sentiments in gold remained bearish, weighed down by a weak trend in the global markets as buying interest shifted towards surging equities and firming dollar and fall in demand from jewellers in the domestic markets, traders said.
Besides, appreciating rupee, making imports cheaper, was another factor behind weakness in the gold, they said.
Gold in New York, which normally sets price trend on the domestic front, traded at USD 1,243.60 an ounce and silver at USD 18.80 an ounce in Wednesday's trade.
In Delhi, gold of 99.9 and 99.5 per cent purity fell by Rs 60 each to Rs 27,180 and Rs 26,980 per ten gram respectively, while sovereign remained flat at Rs 24,400 per piece of 8 gram.
On the other hand, silver ready ruled steady at Rs 40,500 per kg while weekly-based delivery lost Rs 100 at Rs 39,800 per kg on lack of speculators' buying support.Silver coins remained steady at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.
Source:- timesofindia.indiatimes.com
HC disallows interest on borrowings as assessee artificially borrowed its owned funds through a circ
IT: Deduction on account of lease rental was not allowable when lessor had not purchased any machinery
Cotton Exports Likely To Fall In Fy15 Despite Expectations Of Higher Acreage
Cotton exports in 2013-14 are estimated to be higher than the Cotton Advisory Board's earlier projection, but in the current year, 2014-15, direct exports of cotton may fall around 15%. Exports at present are also virtually on hold as there is no price parity for exporters. However, at this price, imports are happening.
The International Cotton Advisory Committee (ICAC) said in a note that "the volume of cotton traded internationally is expected to decline by 8% to 8.1 million tons in 2014/15, driven by reduced shipments to China from a record of 5.3 million tons in 2011/12 to an anticipated 2.1 million tons 2014/15."
The Chinese government has a large cotton stock in reserves and wants local users to use more and more domestic cotton. This is happening at a time when the cotton crop, globally, has remained high. ICAC has also projected India's cotton exports to come down by up to 20% due to reducing global trade and increasing local consumption of cotton.
Prerana Desai, head of commodities research at Kotak Commodities said, "Yes, there could be a fall in India's exports in 2014-15 by 15% and exports may settle at around 8.5 million bales compared to previous two years' exports around 10 million bales." In 13-14, the Cotton Advisory Board had estimated cotton exports at 9 million bales but that has already crossed the 10 million figure.
Yarn is exported to China by non-traditional exporters like Indonesia and Thailand. These countries are importing Indian cotton, and hence China's share in India's cotton exports has been falling. It used to be over 80% which has decreased to 65% and still India's exports have remained high, around 10 million bales.
A cotton exporter said, "China's demand will continue as under global trade obligation, China has to import 8.6 lakh tonnes of cotton."
Meanwhile India's cotton production for 2013-14 is estimated to be much higher than earlier. As per the latest estimation by the Cotton Association, India is likely to produce 38 million bales. For 2014-15 also, acreage under cotton is expected to go up by 10%-15% as cotton is a short duration crop and most suitable when the weather is not very certain.
Although India's cotton exports are on hold, its imports are on the rise because India's prices are cheaper than the international market's and the lean season for cotton arrivals has set in. In the next few months, one to 1.5 million bales of cotton is expected to enter India, according to trade circles. The country's total annual import of cotton, thus, will be around two million bales.
Source:- business-standard.com
No reassessment to deny depreciation on windmill if all facts were disclosed by assessee to justify
IT : Where assessee disclosed all material facts in support of its claim for depreciation on wind mills at time of filing return, Assessing Officer could not initiate reassessment proceedings after expiry of four years from end of relevant assessment year taking a view that assessee had not utilized its wind mills for generation of electricity and, thus, its claim for depreciation was wrongly allowed
No deemed dividend on receipt of loan if assessee wasn’t a shareholder in payer-co.
IT : Loan granted to assessee-company, which was neither a shareholder nor a member of payer company, could not be treated as deemed dividend in hands of assessee
Assessee to get refund of tax paid on services used for export without verifying registration of ser
Service Tax : Exporter is entitled to refund of tax paid on service used for export without verification of registration certificate of service provider, even if provider is registered for one service only
Reassessment to deny sec. 80-IA relief pursuant to retro-amendment in provision is unjustified, rule
IT : Reassessment could not be made on basis of insertion of Explanation to sub-section (13) of section 80-IA with retrospective effect
Supreme Court paves way for bail of 'Subrata Roy', orders for partial release of assets of Sahara
SEBI : SC partially unfreezes assets of Sahara Companies to enable them to arrange bail for Mr. Subrata Roy Sahara
Certificate for lower TDS is effective for period specified therein and not from date of its issue,
IT : Where TDS certificate for deduction at lower rate effective from beginning of financial year, was issue in middle of relevant year, penalty cannot be levied only on ground that certificate can be made effective only from its date of issue and not for a period prior thereto
A civil court can’t decide chargeability of duty or tax under Excise, Customs or Service-tax laws
Excise & Customs : Payment of duty/tax under Excise/Customs/Service Tax is determined through a complete procedure prescribed in law and Civil Court is not competent to hold, no duty/tax was payable
Delay in filing of appeal due to resignation of key employee dealing with case was condonable
IT : Where assessee directed its CA to file appeal before Tribunal but its manager resigned at crucial stage and CA delayed in filing appeal beyond 45 days, delay could not be said to be entirely on account of assessee and, hence, was to be condoned
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