Service-tax : Contract engaged in laying electrical lines, construction of sub-stations and erection, installation and commissioning of electrical transformers, etc., for power distribution companies, prima facie, exempt under Notification No. 45/2010-ST
Tuesday 8 July 2014
Trust constituted for admin and management of various port activities entitled to sec. 12A registrat
IT: Where assessee-trust was constituted under Major Ports Trusts Act, 1963 for administration, control and management of various port activities, said activities being in nature of general public utility within meaning of section 2(15), assessee's application seeking registration under section 12A was to be allowed
Application for condoning delay was to be rejected if it didn’t specify period of delay in filing ap
CENVAT : No condonation of delay in filing appeal in absence of proper ground; application for condonation of delay to be rejected if does not mention delayed period
No writ for compounding charges of illegal share allotment by a Co. without admitting share applican
FEMA : Where in petition for compounding of offences allegations were mainly against acquisition of shares and any order in petition would affect rights of applicant in respect of shares, applicant was to be impleaded as a party in that petition
Comparables accepted in subsequent year couldn’t be rejected by TPO in earlier year without any reas
IT/ILT-I: Where TPO made adjustment to assessee's ALP by rejecting a comparable picked up by assessee, in view of fact that while making impugned adjustment TPO did not consider assessee's plea that said comparable had been accepted in succeeding year and, moreover detailed reasons for rejecting it had not been assigned, impugned adjustment deserved to be set aside and matter was to be remanded back for disposal afresh
India To Keep Grain Supplies On Fears Of Poor Monsoon Rains
India's government, worried that poor monsoon rains will depress the country's grain production, is planning to hold on to supplies for its domestic market instead of boosting exports—something that could push up global prices for wheat and rice.
India is the world's No. 1 rice exporter and has also become a prominent supplier of wheat ever since the government lifted a ban on exports of the two grains in September 2011.
"We don't want to end up importing grains," a senior food ministry official who declined to be named said in an interview with The Wall Street Journal, explaining plans to scale back commodity sales. "We have sufficient grain stockpiles, but naturally there will be an impact because of the weather situation."
To avoid any shortfall, the government has dropped a plan to auction 5 million tons of rice from state stockpiles in the open market, the official said. Instead, the government plans to distribute the grain to the poor through government welfare programs.
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Lackluster Monsoon Rains Trigger Crop Worries in India
Central government officials have also decided to keep on hold a program under which wheat was being sold regularly through state-run trading companies to global bidders, the official said.
India in September approved exports of up to 2 million tons of wheat by June 30. State-run agencies were able to sell 1.5 million tons to global bidders in that time. The government hasn't issued another order for wheat exports because of the uncertain weather, the official said.
"We have not received any orders for reviving wheat sales. We may or may not decide to go ahead [with the program] only after the monsoon season," the food ministry official said.
Since the arrival of monsoon rains over the country's mainland in the first week of June, rainfall has been 43% below average for this time of year, according to data from the India Meteorological Department. India gets 70% of its total annual rainfall during the June-September monsoon season.
About a third of India's grains production is bought by state agencies that maintain buffer stocks, while the rest is bought by private traders.
While government officials said they weren't planning to impose any curbs immediately on exports of rice and wheat by traders, they said the direction of policy will be shaped by the quantity of rainfall and its distribution through the season.
Weak rains have already delayed the planting of the summer rice crop in swaths of major producing states in eastern India, said Trilochan Mohapatra, a director in the state-run Central Rice Research Institute. "The rainfall situation appears to be serious," he said. "If it continues like this, it could affect our production. We are keeping our fingers crossed."
India's rice production could drop below 100 million tons from the 106 million metric tons harvested last year, he said, adding the impact may be less if rains pick up. However, production concerns have increased as the weather office has predicted an El Niño effect—a weather event associated with below normal rains—late in the monsoon season.
"The disappointing progress of the monsoon is a major worry," said Darren Cooper, senior economist with the London-based International Grains Council. "If monsoon rains don't improve substantially, then we are probably going to lower our forecast for India's rice exports."
The council had forecast that India would export 9.7 million tons of rice this year, while No. 2 exporter Thailand would ship out 9.2 million tons.
"If a problem with this year's kharif [summer] crop becomes increasingly apparent, then I would expect the pace of India's exports to slow quite considerably and the domestic market would then become the priority," Mr. Cooper said.
Indian 5% broken rice grades are currently quoting around $430 per ton, compared with $415 per ton for comparable Thai varieties.
The effect of a poor monsoon on wheat production won't become apparent until later, since winter is the main sowing period for the crop. Wheat is less dependent on rainfall than rice, as the main cultivation areas are in the northwestern region, which have an extensive network of canals and dams for irrigation.
Source:- online.wsj.com
Daimler India Starts Production Of Left-Hand Drive Trucks For Exports
Daimler India rolls out first Left-Hand Drive (LHD) FUSO trucks for export markets from Oragadam plant near here. The first heavy-duty truck - the FUSO FJ (equivalent to a 2528C), will be launched in markets like, Nigeria, Ethiopia and Egypt. The trucks will aslo be exported to other markets like Africa, Latin America, and the Middle East.
With this, Daimler Trucks Asia strengthens its portfolio of new FUSO trucks for the non-Asian markets as well blostering its export strategy. A variant of the new DICV-made FUSO LHD will be showcased at the upcoming IAA Hannover show in September 2014.
As part of the first wave of Export-markets DICV-made FUSO trucks are already exported to markets like Sri Lanka, Bangladesh, Indonesia, Kenya, Zambia, Zimbabwe, Tanzania and Brunei.
DICV will also start manufacturing medium-duty FUSO LHD vehicles subsequently later this year to address the wider market.
Daimler Trucks Asia expects to gain additional growth momentum in the future markets on top of the current existing markets from its new Asia Business Model introduced in 2013.
The new business model creates synergies by bundling the strengths of the Japan-based Mitsubishi Fuso Truck and Bus Corp. (MFTBC) and Daimler India Commercial Vehicles (DICV) under the Umbrella of Daimler Trucks Asia.
Source:- auto.economictimes.indiatimes.com
India's June Natural Rubber Imports Surge 41.5 Pct Y/Y-Board
India's natural rubber imports in June surged 41.5 percent from a year ago to 32,550 tonnes despite a rise in local output, the state-run Rubber Board said, as a drop in global prices prompted local tyre makers to increase overseas purchases.
The south Asian country's production during the month jumped nearly 66 percent from a year ago to 63,000 tonnes, the board said in a statement on Tuesday.
India's natural rubber consumption in June rose to 86,000 tonnes from 81,710 tonnes last year, it said.The south Asian country mainly imports natural rubber from Indonesia, Thailand, Vietnam and Malaysia.
Source:- in.reuters.com
Nearly Half Of India's Coal Power Plants Have One Week Of Stocks
Nearly half of India's coal-fired power stations only have enough stocks to last a week, the power minister said, as the country struggles to connect millions to the grid and wrestles with a growing coal import bill.
imports equate to about one percent of India's economy as state behemoth Coal India, the world's largest coal miner, has failed to raise output fast enough to meet demand.
This leads to frequent blackouts, something new Prime Minister Narendra Modi is keen to fix soon but which will raise coal shipments from countries such as Indonesia, Australia and South Africa. Coal fires more than half of India's electricity.
Power Minister Piyush Goyal said on Monday 26 out of 100 coal-based power plants in India had "super critical coal stock" - enough to meet requirements for less than four days.
A total of 44 plants, including the super critical ones, have "critical coal stocks" sufficient for less than a week, with the majority in the state of Maharashtra, the home of India's financial capital Mumbai.
"In order to ensure adequate availability of coal, Coal India Limited has been impressed upon to enhance production of domestic coal in the country and power utilities have also been advised to enhance imports of coal," Goyal told lawmakers.
India is already the world's third-largest coal importer despite sitting on the fifth largest reserves, mainly due to delays in securing environmental clearances to add new mines and to build facilities to transport coal from remote mines.
Coal-fired power plants are expected to see demand of 551.60 million tonnes this fiscal year ending March 31, but supply will be limited to 466.89 million, Goyal said.
In April-June, Coal India supplied 88.66 million tonnes to power companies against a target of 101.61 million. Coal shipments rose as a result.
India's imports of thermal coal, used in power generation, rose 11 percent to 14.77 million tonnes in June, according to a joint venture of Tata Steel and Steel Authority of India Ltd.Weaker-than-average monsoon rain this year could also encourage coal imports as hydro-electric production is expected to fall.
Source:- in.reuters.com
Profit on sale of commercial space gets sec. 80-IB relief as housing project was approved prior to 1
IT : Prior to 1-4-2005, local authority could approve a housing project without or with commercial use to extent permitted under Development Control Rules and, therefore, an assessee would be entitled to deduction under section 80-IB(10) in respect of profits derived from approved project including profits from sale of commercial space
Hospital is entitled to claim sec. 11 relief from income arising from pharmacy, an integral part of
IT : Where assessee, a charitable society registered under section 12A, was running a hospital, income earned by it from its pharmacy being integral to main object of running hospital, could not be excluded from computing income eligible for exemption under section 11
Indian Rupee Opens Higher At 59.94 Per Dollar
The Indian rupee gained marginally in the early trade on Tuesday. It has opened higher by 7 paise at 59.94 per dollar versus 60.01 Monday.
The dollar inched higher against the euro but pared some early gains, as investors continued to digest last week's strong US employment report and speculated about when the Federal Reserve is likely to begin raising rates.
Ashutosh Raina of HDFC Bank said that, “Better than expected US jobs data last week stoked the positive sentiment across global markets. Markets are now re-assessing as to when the Fed will start raising the interest rates.”
“The Indian markets are awaiting the first Budget from the new government. USD-INR pair has been trading in the 59.50-60.50/dollar range and should continue to trade in this range till the Budget,” he added.
Source:- moneycontrol.com
RBI increases credit period for import of diamonds from 90 days to 180 days
FEMA/ILT : Import of Rough, Cut and Polished Diamonds
Pre-deposit order passed by Commissioner (Appeals) under sec. 35F wasn’t appealable before Tribunal
Excise & Customs : Only orders passed by Commissioner (Appeals) under section 35A of Central Excise Act are appealable before Tribunal; pre-deposit order passed by Commissioner (Appeals) under section 35F ibid are not appealable before Tribunal
Leave encashment payments are deductible on basis of ‘actual’ payment under sec. 43B, says ITAT
IT : Depreciation on goodwill which is an asset as per section 32 is allowable as held by Tribunal in series of earlier years
HC upheld reassessment on sec. 69A additions as search initiated by AO had revealed bogus loan trans
IT : Where subsequent to completion of assessment, Assessing Officer, on basis of search carried out in case of another person, came to know that loan transactions of assessee with a finance company were bogus as said company was engaged in providing accommodation entries, it being a fresh information, he was justified in initiating reassessment proceeding in case of assessee
‘Harpic’ and ‘Lizol’ are pesticides covered by Entry 20 of Schedule IV and liable to Andhra Pradesh
VAT/CST : Harpic and Lizol are disinfectants capable of destroying germs and micro-organisms and they fall within category of pesticides covered by entry 20 of Schedule IV and liable to VAT at 4 per cent
Limitation period for assessment restarted once stay order was vacated even if it wasn’t communicate
IT : In terms of provisions of Explanation 1(ii) to section 153, period of limitation for assessment can be stayed only by an order or injunction of any Court and as soon as said order or injunction of Court is vacated, period of limitation shall re-start even though order vacating injunction is not communicated to department
HC rejected winding-up plea as it was pushed as a tactic to pressurize respondent-co. for payment of
CL : Winding up petition being pursued by petitioners as a pressure tactics for extracting disputed sums from respondent was to be rejected
No ST demand on bills raised amongst two departments of one Co. by treating them as separate persons
Service-tax : Two divisions of same company cannot be regarded as two persons for purposes of service tax; therefore, no service tax can be levied on inter-divisional bills raised by two divisions of same company
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