CST & VAT : Where against order of assessment, assessee filed appeal and Appellate Authority insisted that assessee must deposit 20 per cent of total demand by way of pre deposit and thereupon assessee filed second appeal and Tribunal without passing any order on condition of pre deposit proceeded to hear assessee on merits and allowed appeal in part, approach of Tribunal to hear appeal on merits bypassing Appellate Authority was wholly erroneous
Thursday, 19 June 2014
Loan to assessee couldn’t be taxed as deemed dividend if his HUF and minor children were owners of s
IT : Merely because assessee liquidates its investment within a short span of time, which had given better overall earning to assessee, it would not lead to conclusion that assessee had no intention to keep shares as investor, but actually intended to trade in shares
Nagpur First To Have Ethanol-Run Bus, But Civic Heads Unaware
Nagpur is set to be the first city in the country where 100% ethanol-fuelled bus would ply on a pilot basis. Government sources said the bus, which has already reached India, would be launched in the city in next 2-3 weeks.
Strangely, municipal commissioner Shyam Wardhane, leader of ruling party (BJP) in the Nagpur Municipal Corporation Pravin Datke and the operator of the Starbus service were aware of any such move.
Saying there are no immediate plans to ply ethanol-based buses, Wardhane said that surface transport and highways minister Nitin Gadkari had advised the NMC to generate ethanol from sewage treatment plants to be set up at many places. "We also don't have any ethanol filling stations," he added.
Sanket Pande, the GM of Vansh Nimay Infraproject which operates the Starbus service, too said that Gadkari had in the past advised them to opt for a cheaper fuel like ethanol. "But, presently, we have no plans to ply buses using it," he said.
Gadkari has always championed the need for the use ethanol as a fuel for vehicles. He had recently pushed the need of importing engines that can run on 85% blending of ethanol in the country. Sources said the Scandinavian commercial vehicle manufacturer Scania made a presentation in the ministry recently to explore the possibility of plying such bus.
The company had said that two more such buses would soon reach India from Stockholm, officials said. Earlier Scania had proposed to introduce similar buses in Bengaluru, but it could not happen.
Since ethanol-based buses can ply only in areas where enough ethanol is available, the government will explore to start such services in manageable areas such as within cities. Towns and cities in major sugar producing states such as Maharashtra, Uttar Pradesh, Karnataka and Punjab are likely to be the options for starting such experiments.
The Gadkari-promoted Purti Power and Sugar Limited (PPSL) is also engaged in the manufacture of ethanol. PPSL has often supported the idea of increasing the ethanol proportion to be blended in petrol to 10% at least. Ethanol is not just a clean, but the cost of the fuel is also less.
The PPSL's plant at Bela, 40 kms from Nagpur, has a facility to make ethanol out of molasses and is currently supplying it to the PSU oil companies. It has plans to set up a bio-waste ethanol plant too. The new plant may have a capacity of to make 15,000 litres of ethanol a day.
Soon after taking charge of the road transport ministry, Gadkari had said, "I have asked the department to study whether the five big companies — Volkswagen, Ford, Toyota, Honda and Fiat — can import E85 engine here, like they do in Brazil and Canada." E85 engines can run with 85% blending of ethanol.
TOI had earlier reported how the government is once again trying to ride on the back of the auto sector to pull the sugar industry out of the slump, which has been induced by a bumper cane harvest.
Source:- timesofindia.indiatimes.com
Sharp Increase In Exports Of Solar Modules From India
Exports of solar modules from India have been on the rise. In 2013-14, they rose by 152 per cent over the previous year — from $106 million in 2012-13 to $270 million last year. Leading manufacturer-exporters say the momentum is continuing into the current year, if not increasing.
Nearly 80 per cent of the exports have been to Europe, notably, to Germany, the Netherlands and the UK (see Table).Minimum selling price . Why the surge in exports? Last year, the European Union entered into a pact with several Chinese companies — which together had over 60 per cent of the EU market — that made them commit to a minimum selling price and limited their sales by volume.
On those Chinese companies that did not participate in the pact, countervailing duties ranging between 27.3 per cent and 64.9 per cent, were brought in. The pact was struck in December, but ‘provisional anti-dumping duties’ were in force between June and August.
The EU move has clearly helped Indian companies. Narender Surana, Managing Director of the Hyderabad-based Surana Ventures, told Business Line recently that the company had been exporting about 3 MW worth of modules to Germany since last November. Surana Ventures imports cells and makes modules out of them, but intends to soon commission its own cell manufacturing using the machinery it bought last year from bankrupt German company Schott Solar.
Chennai-based Swelect Energy Systems, which produces modules from a plant that it took over from HHV Solar of Bangalore, has found a German customer.
The company’s Managing Director, R Chellappan, said the German company helped Swelect achieve improvements in manufacturing products and is now buying from Swelect.
The first lot of 2,400 modules is expected to be shipped to a UK project of the German company next week. Other leading Indian manufacturers such as Vikram Solar and Waaree have also said their exports are on the rise.
Debate on dumping duties
Amid the raging debate in India over whether or not the Government should bring in anti-dumping duties on the Chinese (and American, Malaysian and Taiwanese) companies, the rising exports of modules from India reflects different perspectives to different people.
The manufacturers point to the export statistics and say: ‘See? We do well when the competition is fair’.
The developers feel that the manufacturers have sufficient market reservation for them, in terms of ‘domestic content requirement’ rules. (At the Renergy 2014 expo in Chennai last week, the Joint Secretary in the Ministry of New and Renewable Energy, Tarun Kapur, was overheard saying the Ministry intends to reserve 500 MW a year for domestic manufacturers.)
Now, in addition to the reserved domestic market, Indian manufacturers also have lucrative export business. So, what are they cribbing about, is the other perspective.
Source:- thehindubusinessline.com
HC rejects ad hoc additions to income of transporter without considering his contracts with parties
IT : Where in case of assessee, a transporter, authorities below having rejected books of account, estimated income at rate of Rs. 3 per metric ton received as commission, in view of fact that said addition was not based on agreement entered into by assessee with goods owners, same was to be set aside and, matter was to be remanded back for disposal afresh
India Moves To Curb Onion Exports
India yesterday imposed a minimum export price (MEP) of $300 a tonne on onion to curb its overseas sales amid an inflation scare that threatens to stoke public anger over rising prices at local food markets.
Prime Minister Narendra Modi has made tackling inflation his top priority after widespread resentment about rising prices contributed to the exit of the previous government last month.
Onion is now selling at Rs 25-30 a kg in the Indian capital, up from Rs 15-20 a fortnight ago. Until early March, the minimum export price was $150 a tonne.
India's move is likely to fuel onion prices in Bangladesh markets as traders may squeeze supply.
In Dhaka, onion prices ranged between Tk 28 and Tk 35 a kg yesterday, a 5 percent rise from a month ago, according to Trading Corporation of Bangladesh.
The MEP, the rate below which no exports are allowed, has been re-introduced barely three months after India's previous government abolished it in March.
In India, rising prices of essential food items -- vegetables, fruits and cereals -- pushed up the wholesale price index-based inflation to a five-month high of 6.01 percent in May.
India annually exports 15 lakh tonnes of onions on average, Consumer Affairs Secretary Keshav Desiraju said. "The MEP is expected to have some impact on the increasing domestic supply and check rising prices."
The Centre had imposed an MEP on onion in September 2013, and it was raised several times to curb exports as retail prices had shot up as high as Rs 100 a kg in major parts of India which had to even import onion.
India produces around 17-18 million tonnes of onion a year. It exported 13.58 lakh tonnes of onions in 2013-14, compared to 18.22 lakh tonnes in the previous year.
Source:- thedailystar.net
How India Will Pay Iran $ 1.65 Billion For Oil Importshow India Will Pay Iran $ 1.65 Billion For Oil Imports
India will pay Iran USD 1.65 billion through the UAE central bank to clear over 40 per cent of the backlog payments for oil imports.
Since February 2013 when US blocked payment channels, India has been paying 45 per cent of its Iran oil bill in rupees through a Uco Bank branch in Kolkata.
For the rest, it has been waiting for a payment channel. As much as USD 4 billion has been accumulated in past dues. A payment mechanism is now in place under which USD 1.65 billion in three equal instalments of USD 550 million each will be transferred to Iran via the UAE central bank, senior government and industry officials said.
Under the two-stage payment mechanism worked out, Indian refiners, in proportion to their dues, will make rupee payment to the Uco Bank. This money will be transferred to the RBI for onward credit to the central bank of United Arab Emirates. The UAE central bank will then make payments in dirhams to Iran.
Officials said the first two instalments may be paid this month and the third USD 550 million tranche by July 20 deadline set by the US and five other world powers for Iran to receive part of its past payments from its oil buyers.
The two instalments this month will be made up of USD 238 million by Mangalore Refinery and Petrochemicals Ltd, USD 232 million from Essar Oil, USD 57 million by Indian Oil Corp (IOC), USD 8 million by Hindustan Petroleum Corp Ltd (HPCL) and USD 15 million by HPCL Mittal Energy (HMEL).
Iran is seeking interest on pending dues. However, the Indian government as well as the RBI have flatly refused to pay interest saying they have always been ready to make timely payments but the problem of mode and channel were due to Iran.
Under an interim nuclear deal with US and five other world powers, Iran on November 24, 2013, won access to USD 4.2 billion in past oil revenues from a number of countries including India.
The funds, which previously could not be transferred as western powers clamped down on payment routes, were to be paid in eight instalments of USD 550 million each beginning with the first transfer by Japan on February 1.
South Korea was to make two payments in March totalling USD 1.1 billion and India was to make its first payment on May 17, but in absence of payment modalities it was delayed.
There is now a broad understanding on the payment route and subject to agreement with Iran the first tranche may go out as early as next week, officials said.
India had been, since July 2011, paying in euros to clear 55 per cent of its purchases of Iranian oil through Ankara- based Halkbank.
The remaining 45 per cent due amount was remitted in rupees through Uco Bank. Payments in euro through Turkey ceased from February 6 2013 but the rupee payments for 45 per cent of the purchases continued through Uco Bank.
Source:- ndtv.com
Courts couldn’t extend deadline prescribed under Service Tax Amnesty Scheme for payment of initial 5
Service Tax : Right of assessee to claim benefit of Service Tax Voluntary Compliance Encouragement Scheme is dependent upon its depositing initial 50%, which is a mandatory condition and authorities do not have any discretion to grant extension of time to make initial deposit of 50% of declared tax amount beyond 31-12-2013
CCI ruled out dominance of SBI as several other banks existed in the relevant market of vehicle loan
Competition Act : With presence of many big players from public sector banks, private sector banks and foreign banks besides, non-banking finance companies and co-operative banks, prima facie, SBI did not appear to be in a dominant position in relevant market of vehicle loan in India and therefore, question of abuse of dominant position by it did not arise
AO can make reference to TPO without recording his satisfaction that International Transactions aren
IT/ILT: At time of making reference to TPO, Assessing Officer is not required to record detailed satisfaction that price charged/paid in an international transaction is not at ALP
MCA releases illustrative list of CSR activities; includes salary to CSR staff and excludes exp. on
COMPANIES ACT, 2013 : Section 135 of The Companies Act, 2013 – Corporate Social Responsibility – Clarifications With Regard to Provisions of Corporate Social Responsibility under Section 135
New format of Annual Return notified for reporting of foreign liabilities and assets by Indian Cos a
FEMA/ILT : Revised Format of Annual Return on Foreign Liabilities and Assets Reporting by Indian Companies
RBI asks Banks to disclose sector-wise advances from financial year 2014-15; releases format for the
BANKING : Disclosure Of Sector-Wise Advances
Report of Merchant Banker or CA is acceptable for preferential issue till valuer is appointed under
COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Share Capital and Debentures) Amendment Rules, 2014 - Amendment in Rules 4, 13 and 18
AO couldn’t initiate re-assessment if broker who previously substantiated the transaction wasn’t tra
IT : Where assessee had filed bills, vouchers, contractor's note and also detail of transactions of sale and purchase of shares which had been routed through banking channels and Assessing Officer had not found any defect in assessment order, reopening would not be justified
No person is entitled to appeal under sec. 52 of Tamil Nadu VAT Act without depositing 25% of disput
CST & VAT : Where against order of Assessing Authority, assessee filed appeal before Appellate Authority, in view of second proviso to section 52(1) of Tamil Nadu Value Added Tax Act, 2006, assessee shall not be entitled to have appeal numbered without meeting out statutory requirement of depositing 25 per cent of disputed tax amount
No question of law arose when assessee couldn’t substantiate his claim of earning agriculture income
IT : Where all three authorities found that assessee's claim of income having been generated from agricultural operations was not believable and treated such income as assessee's undisclosed income, no question of law arise
CIT could not revise AO’s order in absence of any material on record to differ with view taken by AO
IT : Where Assessing Officer made enquiries, elicited replies and thereafter passed assessment, assumption of jurisdiction was not proper particularly when view taken by Assessing Officer that compensation received by assessee was a capital receipt, was one of possible view and there was no material before Commissioner to vary with opinion of Assessing Officer
Payments to foreign agencies for access to online database of consumers to be deemed as 'royalty'
IT/ILT : Where in order to carry out market research for its clients, assessee made payment of fee to foreign agencies for allowing access to record of online consumers maintained by them, in view of order passed by jurisdictional High Court in case of CIT v. Wipro Ltd. ITA No. 2804/2005 dated 15-10-2011, said payment was to be regarded as 'royalty' and, thus, assessee was liable to deduct tax at source while making payment in question
Rule 96ZO of Central Excise Rule gives discretion to authorities to levy lesser penalty than duty
Central Excise : Rule 96ZO providing for mandatory minimum penalty without mens rea and without any discretion is ultra vires; department may, looking to nature and reasons of delay in payment of duty, levy penalty lesser than duty
SC sets aside sale of secured property by bank as it was done without issuing a 30 days auction noti
CL: Merely because dilatory and delaying tactics were adopted by borrower in respect of auctions of property meant for repaying loan to bank, same would not relieve bank from mandatory requirement of publishing 30 days action notice
Subscribe to:
Posts (Atom)