Service Tax : Deputation of employees to subsidiary companies for limited period on cost-sharing basis does not make assessee a 'commercial concern' and does not establish 'agency-client' relationship and is, therefore, not covered under Manpower Recruitment or Supply Agency's Services
Thursday, 12 June 2014
No reassessment on basis of report of DVO which merely casted doubt on valuation method opted by ass
IT : Assessing Officer could not refer matter to DVO without books of account being rejected; no reopening assessment based upon incomplete report of DVO raising doubts only about assessee's methodology
Block assessment under sec. 158BD set aside as reasons recorded by AO for assessment weren’t produce
IT : Mere recording of fact that in course of search of third party, some documents related to assessee were seized and, hence, jurisdiction of concerned Commissioner was assigned, is no proper reasoning as required for issuing notice to initiate block assessment
India. Government Restores Sugar Export Subsidy At Rs 3,300/Tonne.
The new government today reinstated the export subsidy at Rs 3,300 per tonne on raw sugar shipments to be undertaken during June-July, a move the industry said would boost exports.
To help the cash-starved industry to pay arrears to sugarcane farmers, the previous government had announced a subsidy for export of raw sugar up to 4 million tonnes during 2013-14 and 2014-15 marketing years (October-September).
It had fixed the subsidy at Rs 3,300 per tonne for February-March and decided to review it every two months. However for April-May, the subsidy was reduced to Rs 2,277 per tonne for raw sugar shipments.
Issuing a fresh notification, the Food ministry said: "The incentive towards marketing and promotion services for raw sugar production for the period beginning from June 1, 2014 and ending on July 31, 2014, shall be at the rate of Rs 3,300 per tonne."
Welcoming the decision, Indian Sugar Mills Association ( ISMA) said: "The mistake of reducing the export incentive for April-May even though the rupee had appreciated, is now rectified. Sugar exports, which could not take pace in last two months due to cut in incentive, will now resume."
"This positive step gives a lot of confidence to the sector that the new government will be fair in its decisions and positive towards farmers' interests," it said.
The country has exported about 5 lakh tonnes of raw sugar so far availing the benefit of the subsidy, it added. At present, sugarcane arrears are around Rs 11,000 crore, of this Rs 7,200 crore belongs to Uttar Pradesh.
Source:- blackseagrain.net
Growing Iran Oil Exports Challenge U.S. Nuclear Sanctions
Iran’s oil exports have risen this year, according to Bloomberg calculations, a trend that threatens to violate U.S. sanctions on the Islamic Republic’s main source of revenue.
Shipments of Iranian crude oil and condensate have increased about 28 percent on average this year, according to an analysis of customs data from importing nations and figures from the International Energy Agency in Paris. If crude sales are up by the end of July, that would break an international accord to hold Iran’s oil exports at the same level in the first half of this year that they were at in the previous six months.
Questioned in Congress yesterday about possible sanctions violations, an Obama administration official who monitors Iran’s oil exports said he’s confident Iranian crude shipments have remained within the limits set in a six-month agreement signed Jan. 20 that granted Iran limited sanctions relief in exchange for some nuclear concessions.
“Where we are today, we feel comfortable that the crude oil exports of Iran are remaining in the 1 million to 1.1 million barrels per day average,” Amos Hochstein, deputy assistant secretary of state for energy diplomacy, testified before the House Foreign Affairs Committee.
The U.S. Congress passed legislation in December 2011 to curtail Iran’s oil exports in an effort to deprive the Persian Gulf state of its leading foreign revenue earner, to pressure its leaders to accept constraints on a suspected nuclear weapons program. A month later, the European Union approved an embargo on Iranian oil purchases by its members.
Only six buyers are still allowed to take crude from Iran - - China, India, Japan, South Korea, Turkey and Taiwan -- down from 21 before the restrictions went into effect in mid-2012.
Among the reasons that exports in the first few months of this year look higher are seasonal variations in oil purchases and the fact that reporting lags shipments and customs data are sometimes revised, according to two U.S. officials who weren’t authorized to be quoted.
Another reason is that while India’s crude imports from Iran were up significantly in the first few months of this year, its refiners have signed contracts for lower purchases in the coming months, which should bring down Iran’s average exports by July, the officials said.
The Obama administration says Iran’s oil exports have been reduced by more than half from 2.5 million barrels a day before sanctions. The U.S. also says Iran is losing as much as $5 billion a month in oil revenue.
Customs and other publicly available data, though, show that Iran’s exports of crude and condensates rose to an average of 1.33 million barrels a day in the first four months of this year from 1.04 million barrels a day on average in 2013, according to Bloomberg calculations.
Iranian Oil Minister Bijan Zanganeh, asked by a reporter at an OPEC meeting in Vienna yesterday, gave a higher figure, saying the Persian Gulf producer is exporting 1.2 million barrels of crude oil and 300,000 barrels of condensate a day.
U.S. officials say Iran consistently inflates trade figures to create an illusion that sanctions are crumbling.
Using customs and ship-tracking data to assess Iran’s oil export quantities is complicated by the fact that crude and condensates can be transported by the same type of tanker or blended together and that some countries combine the two in their import data.
Condensate, a light petroleum liquid often found with oil or gas, is not restricted by U.S. sanctions as long as the buyer nation was granted a waiver from the sanctions by reducing the amount of crude oil it buys from Iran.
China has considerably increased its purchases of Iranian condensate this year, and that has inflated overall import figures, according to the two Obama administration officials who spoke on condition of anonymity. U.S. officials say Iran may be offering China and other customers significant discounts on condensate and crude in an attempt to keep sales flowing despite punishing sanctions.
Although Iran exports condensate in much smaller quantities than crude oil, the product fetches higher prices because it’s easier and less expensive to refine into gasoline or diesel fuel.
Source:- businessweek.com
Ford To Make India Its Export Hub: Ceo Alan Mulally
Terming India among the fastest growing markets, US-based carmaker Ford today said it has decided to make the country as its export hub.
"We have decided that India will be an export hub for Ford. We are exporting to over 50 countries from here and are increasing it overtime," Ford Motor President and chief executive officer Alan Mulally said.
Ford India has two manufacturing plants in the country - one in Gujarat and another at Maraimalai Nagar near here.
"It is because our (Ford India) operations are great, our quality is great and our efficiency is great. Its just that the location of India is great for us (to look for exports)," Mulally, who is set to retire from the company after eight years of service later this month, told reporters here.
Asked whether Ford India met his expectations, he said, "Remember Ford was in trouble in September eight years ago. We had the worst report in 2006. I remind you there was $17 billion loss to the company. If you are in business, you are going to have brackets around your numbers (net losses). We grew decisively. Not only we survived but are also prospering now.
"As soon as we attained profitability, we turned our attention to Asia Pacific. Our investments have been tremendous in India and China. These are the fastest growing markets in the world."
Asked on what would be his advice to chief operating officer Mark Fields who is tipped to replace him, Mulally said, "My advice (to him) will be to stay on the 'One Ford' plan. That transformation is one of the biggest transformation in the history (of Ford)."
On what difference he made in the company during his eight-year stint, he said the focus was on seven aspects, including making Ford serve all markets worldwide.
"Number two, we focused on the Ford brand. Third reason was our commitment to customers; fourth was on delivering better quality and fuel efficient vehicles; fifth to operate as one global company; sixth to always produce to the demand; seventh is financing plan... we have restructured our business and now have repaid all of USD 23.5 billion."
Earlier, Mulally met the 3,600 employees working at the Ford plant and the company's business service division here.
Source:- timesofindia.indiatimes.com
Solar Water Heater Makers Demand Rs 350 Crore Subsidy Arrears.
A grouping of solar water heater manufacturers today demanded that the government immediately pay them Rs 350 crore in arrears related to unpaid subsidies.
The pending subsidy includes Rs 50 crore for 2012-13 and around Rs 300 crore for the last fiscal, according to Solar Thermal Federation of India (STFI).
"The industry is on death bed. It is Rs 800-crore industry," STFI Secretary General Jaideep Malaviya said.
As of now, arrears have gone up to Rs 375 crore, he added.
To promote solar energy, the Ministry of New and Renewable Energy (MNRE) had launched a programme under which 30 per cent subsidy would be provided to solar water heater manufacturers for every unit sold.
The subsidy scheme comes under the Jawaharlal Nehru National Solar Mission (JNNSM).
Malaviya claimed that subsidies could touch Rs 500 crore in this financial year as the market for solar water heaters is expected to see a boom.
"The industry is on the verge of shutdown. Government immediately needs to set deadline of setting off the pending claims," Malaviya said.
The Federation has taken up the issue with the government.
"Our expectations from the government are that first all outstanding dues be paid and secondly there has to be anti-dumping duty on import of low quality systems...," STFI Chairman Mangal D Akole said.
He also stressed that subsidy should be given only to locally-made solar water heaters.
Source:- economictimes.indiatimes.com
After Eu Ban On Mangoes, Iran Cuts Basmati Import
Close on the heels of a ban on mangoes from India by the European Union (EU), Iran has cut down its purchase of basmati rice by around half over the past three months. And yet, even farmers in Punjab and Haryana - the country's biggest producers of the aromatic crop - are planning to bring more area under basmati this kharif season.
About of 80% of basmati rice exported by India is bought by millers from Punjab and Haryana. Last year, Punjab had about 5.59 lakh hectares (ha) of area under basmati and had an output of 14.87 lakh tonnes while in Haryana the area under the crop was 7.21 lakh ha and production was 18.90 lakh tonnes.
Iran, which is the biggest importer of basmati rice from India, has cited stringent standards on chemical contamination, mainly arsenic, and dissatisfaction with the quality of commodity being delivered for lowered buying. While experts and officials fear this could hurt prices of the new crop as its transplantation begins in the first fortnight of July, exporters have allayed such fears.
Amit Marwaha, a leading rice exporter from Amritsar, said Iran had changed its food safety norms therefore it sent back some consignments of basmati rice from India. "I don't think this will impact rice exports to Iran and other countries since most of us have applied for hazard analysis and critical control points (HACCP) certification, which states that all food safety standards are met by the millers."
The Agricultural and Processed Food Products Export Development Authority (APEDA) data shows that India exported 35 lakh tonnes of basmati rice worth Rs 19,409 crore in the crop year 2012-13. Of this, Iran accounted for about 10.82 lakh tonnes valued at Rs 6,463 crore. From April 2013 to February 2014, basmati rice export stood at 34.38 lakh tonnes worth Rs 26,519 crore, riding mainly on strong demand from Iran, Saudi Arabia and Iraq.
Former president of the All India Rice Exporters Association (AIREA), Vijay Setia, said demand from overseas wouldn't suffer much in the coming season since most of the exporters had started maintaining the required international standards for metal residue in rice. "All concerns about quality of rice have been addressed so I see no negative impact on the export from India this year as well," said the Karnal-based exporter.
Source: - timesofindia.indiatimes.com
Rupee Down 8 Paise Against Dollar In Early Trade
The rupee weakened by eight paise to 59.33 against the US dollar in early trade on Friday at the Interbank Foreign Exchange market due to increased demand for the American currency from importers.
However, a higher opening in the domestic equity market and the US dollar's weakness against other currencies overseas, capped the rupee's fall.
Forex dealers said fresh demand for the dollar also put pressure on the rupee.
The rupee ended two paise higher at 59.25 in yesterday's session on range-bound movements.
Source:- thehindubusinessline.com
Mere plea of financial hardship wasn’t a valid ground to condone delay of more than 10 years in fili
Excise & Customs : Financial hardship is a ground for considering what should be appropriate condition for pre-deposit for entertaining appeal; however, merely on such financial hardships, writ petition after more than 10 years cannot be entertained
HC dismissed winding-up plea as dispute raised by respondent for the overdue sum required detailed i
CL : Where respondent was liable to pay a sum but had raised contentious issues which required detailed enquiry, winding up petition against respondent was not maintainable
Indian citizen taking employment abroad would be ‘non-resident’ in India if his stay in India is for
IT/ILT : Assessee should be treated as an NRI since he had left India for employment outside India and his stay in India in previous year was only 68 days
Alterations in AOA to be made as per 1956 Act on conversion of Public Co. into Private till new prov
COMPANIES ACT, 2013/COMPANIES ACT, 1956 : Clarification for Filing of Form No. INC-27 for Conversion of Company from Public to Private Under Provisions of Companies Act, 2013
MCA fixes time period for constitution of Audit Committee for Specified Public Cos earlier exempted
CL/INDIAN ACTS & RULES : Companies (Meetings and Its Powers ) Amendment Rules, 2014 – Amendment in Rule 6
Cos to accept old share transfer forms executed prior to April 1, 2014 for registration of transfer:
COMPANIES ACT, 2013 : Clarifications on Rules Prescribed under Companies Act, 2013 – Matters Relating to Share Capital and Debentures
MCA allows physical filing of Form MGT-10 for change in shareholding pattern until e-form is made av
COMPANIES ACT, 2013 : Clarification on Filling of MGT-10
Service-tax not collected from customer but paid to Treasury is an allowable business expenditure
IT: Where assessee had not collected and deposited service tax but on being pointed out, deposited same, amount being expended by assessee in course of business was allowable as business expenditure
HC set aside order of ITAT as it hadn’t examined the plea raised by assessee
Service Tax : Where issue raised by assessee as to calculation of interest had not been examined by Tribunal, order of Tribunal was set aside and matter was remanded back to Tribunal for a fresh decision
Sums collected by society for area development was for specific social purposes which couldn’t be he
IT: Where, assessee, a co-operative sugar factory, deducted certain amount from bills payable to members and non-members towards supply of sugarcane on account of 'Area Development Fund', in view of fact that said amount was impressed with an obligation to spend same for specified social purposes approved in AGM, it could not be brought to tax in assessee's hands as income
Receipts from sale of scrap generated after demolition of building is taxable as Cap gains and not r
IT-I : Proceeds of Malba (scrap), i.e., material left over after demolition of a structure, is taxable under head 'Capital gain', and not as 'Income from other sources'
Input is available for taxes paid on purchases used in execution of job work even if no tax is payab
CST & VAT : Where assessee claimed deduction under section 10 of Karnataka Value Added Tax Act, 2003 of input tax paid on local purchases of raw materials, consumables, etc., which were consumed in execution of job work undertaken on behalf of others, assessee was entitled to benefit of input tax rebate in respect of consumables used in relation to job work, even though no output tax was paid on turnover of job work
Shareholding of one partner and not cumulative holding of all partners should exceed 10% to invoke s
IT : Where shareholding of each partners of assessee-firm as well as of assessee-firm in closely held company is less than 10 per cent, even though their cumulative shareholding is more than 10 per cent, section 2(22)(e) cannot be resorted to for treating amount advanced by company as deemed dividend
Delay in filing appeal not condonable if assessee didn’t specify reason for delay and date of receip
Excise & Customs : Where assessee had failed to state date on which order passed by Tribunal was served on him and failed to furnish any reason for delay for a part of period (more than an year), condonation could not be granted
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