Tuesday, 15 July 2014
Income certificate of Tehsildar wouldn’t prove financial hardship; appellant to file financials for
ITAT partly stays tax demand against issue of shares by assessee to AEs at lower than ALP
HC stayed winding up proceeding of petitioner-co. as it offered to repay debt along with interest
RBI eases funding mechanism for banks to finance long-term loans for infrastructure and affordable h
Railway Ministry asks Zonal railways to collect ST on charges realized for verification of LTC detai
RBI calls for flexible structuring of long-term loans given to infrastructure and core industries
IRS Association asks I-T department to allow 100% deductions for contributions to Uttarakhand disast
Negligence in payment of excise duty attracts penalty of upto Rs 5,000 under Rule 27 of Excise
ALV of property let out to sister concern had to be as per Municipality records of earlier years if
The Reserve Bank Of India Will Try Swapping Old Gold For New
India’s central bank, the Reserve Bank of India (RBI), has found a novel way of tackling the nation’s gold import deficiency without affecting the Current Account Deficit (CAD). It has decided to swap old gold, 557 tons worth some $21 billion, in its reserves, with new gold, with the aim of standardizing its yellow metal stock.
The move is expected to have fiscal benefits. The increase in domestic gold supply will not put pressure on the CAD, which, at present, is under stress due to rising crude oil prices in the wake of the Iraq conflict. It would also ease India’s balance of payment. In order to check the rising CAD, the Indian Government had raised import duties, while the RBI had imposed curbs on gold imports, in addition to prescribing pre-conditions for inward shipments of the yellow metal. Smuggling gold into India has become a healthy black market, but that is likely to come down once domestic supply increases.
As part of the move to swap its gold, the central bank has asked nominated banks, including the State Bank of India to submit quotes. The chosen bank will import gold on behalf of the RBI and subsequently the metal would be swapped. The bank holds the 11th largest gold reserve in the world.
According to a report in the Business Today, the RBI will exchange “relatively impure gold,” including some dating back to the pre-independence (1947) era, and get the equivalent worth of purer yellow metal.
When the standardization operation was over, the new gold acquired will be delivered to its overseas custodian, the Bank of England. The entire exercise will take place through book entry and without any cash exchanging hands, sources said.
This is not the first time that the RBI has made such a move. It had parked gold abroad during the 1991 financial crisis, and in 1998, before Russia’s default and devaluation caused a meltdown across emerging markets.
India’s gold imports had come down by 72 percent to US $2.19 billion in May due to restrictions imposed by the government on inbound shipments of the precious metal.
Rising gold and petroleum imports had led to the CAD touching a historic high of 4.8 percent in 2012-13 due to the excess of foreign exchange outflows over inflows. India had paid US $54 billion to import 1,017 tons of gold that year. A high CAD puts pressure on the currency, leading to inflation.
Currently, Indian banks import gold for jewelers, and then they can only re-import another batch if 20 percent of the last batch has been exported. There’s a 10 percent duty on imported gold.
Source:- agmetalminer.com
Chinese Imports Threatening Indian Furniture Industry – Assocham
With $447 million worth annual furniture imports into India, China accounts for 53 per cent of India’s total furniture imports worth over $736 million thereby giving severe competition to the domestic industry, according to a just-concluded ASSOCHAM study.
“Furniture imports into India are growing at 27 per cent annually while furniture exports from the country are growing at a growth rate of about 18 per cent,” noted the study titled ‘Potential of Furniture Industry in India’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Australia, France, Germany, The UK and The US are leading destinations for India’s furniture exports while China largely dominates the furniture imports into India followed by Germany, Malaysia, Italy and The US.
“Growing furniture imports from China are threatening jobs of over 25 lakh people engaged in over 10.61 lakh registered and unorganized furniture factories across India,” said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the chamber’s study.
“Lack of modernization and innovative design, dearth of skilled labour, limited market access and lack of quality control are certain key issues restricting the growth of India’s furniture industry and also the main reasons non-operation of furniture factories,” said Mr Rawat.
Non-operation of furniture manufacturing factories in India is also an issue of grave concern to the domestic industry, evidently as of the total 1,419 registered furniture factories in India only 1,157 factories were under operation as of 2011-12 i.e. about 20 per cent of registered furniture factories in India were non-operational, highlighted the ASSOCHAM study.
Maharashtra is the leading state with 222 registered furniture factories followed by Tamil Nadu (201), Rajasthan (124), Andhra Pradesh (119) and Karnataka (112). The top five registered factories constitute almost 55 per cent of registered furniture factories in India.
“Registered furniture factories have more potential in terms of employment generation as on an average one registered furniture factory generates 40 jobs whereas an unorganized factory generates just about three jobs.”
Of over 57,000 jobs being generated by registered furniture factories across India, Maharashtra is numero uno in generating maximum of over 15,100 jobs followed by Tamil Nadu (9,318), Rajasthan (5,053), Karnataka (4,998) and Andhra Pradesh (4,087) with top five states accounting for about 68 per cent of total employment generated by registered furniture sector in India.
While Punjab has about 62 per cent of non-operative registered furniture factories followed by Haryana (60 per cent), Tamil Nadu (30 per cent) and Karnataka (25 per cent).
Considering that the private final consumption expenditure on furniture in India has been growing at a compounded annual growth rate (CAGR) of about 17 per cent (during 2004-05 and 2012-13), revival in real estate and hospitality sectors combined with rising disposable incomes will further drive the furniture industry’s growth in India, noted the study conducted by The ASSOCHAM Economic Research Bureau (AERB).
If the aforesaid issues are addressed effectively, then the sector has the potential to generate about five lakh additional employment opportunities during the course of next three years.
Source:- rtn.asia
Palm Imports By India Drop For Second Month As Sunflower Climbs
Palm oil imports by India, the world’s biggest buyer, declined for a second month in June as refiners bought more sunflower oil after prices retreated on rising global cooking oil supplies.
Purchases of crude and refined palm oils slid 8.8 percent to 592,749 metric tons last month from a year earlier, the Solvent Extractors’ Association of India said in an e-mailed statement today. That’s lower than the median estimate of 625,000 tons in a Bloomberg survey. Sunflower oil shipments jumped 53 percent to 155,475 tons, while crude soybean oil imports dropped 28 percent to 99,682 tons, the association said.
A decline in premium of sunflower and soybean oils over palm oil is spurring Indian refiners and traders to reduce purchase of the tropical oil, according to B.V. Mehta, executive director of the association. Declining palm demand in India may expand inventories in Indonesia and Malaysia, the world’s biggest producers, and pressure prices in Kuala Lumpur, which entered a bear market yesterday.
“Ukraine has a bumper crop of sunflower oil, so prices are bound to remain subdued in the coming months, and India will continue to buy the oil,” Mehta said. “The incremental growth in oil demand and a certain part of palm oil share are being taken over by the soft oils.”
Futures fell 2.1 percent to 2,298 ringgit ($721) a ton at close on Bursa Malaysia Derivatives yesterday, down 21 percent from the 2,901 ringgit settlement high on March 10. Soybean oil’s premium over palm, the world’s most-used cooking oil, narrowed to average about $94 a ton this year from $244 a ton in 2013, according to data compiled by Bloomberg.
Stockpiles Gain
“Palm oil imports will continue as it is the No. 1 cooking oil,” Mehta said. Purchases may total 8 million tons this year, compared with 8.3 million tons a year earlier, he said.
Cooking oil stockpiles at ports and scheduled shipments rose to 1.49 million tons on July 1 from 1.42 million tons a month earlier, data showed. Total imports, including for industrial use, fell 4 percent in June to 883,679 tons, the association said. Total cooking oil imports were little changed at 7.08 million tons in the eight months ended June from 7.15 million tons a year earlier, data showed.
Source:- bloomberg.com
Rupee Rises To 60.07/ Dollar As Shares Gain
The rupee rose from a session low of 60.2450 to trade at 60.09/60.10, as gains in shares helped offset dollar demand from state-run banks. It had closed at 60.07/60.08 on Monday.
State-run banks have been mopping up dollars for oil- and defence-related payments in the recent sessions, aiding the greenback.
Some of this demand could be for the government's effort to pay Iran a part of its oil dues, dealers say.
India paid a second instalment of $550 million in oil dues to Iran last week under an interim deal that has allowed Tehran access to $4.2 billion in blocked funds globally, Reuters reported last week.
The Nifty was up 0.3 per cent, heading for its first daily rise in six sessions as interest rate-sensitive stocks gain after June consumer inflation slowed to the lowest since figures were first published in January 2012.
Source:- profit.ndtv.com
Double jeopardy - Non-deduction of TDS disallows expenditure and withdraws sec. 10(20) exemption
Value of input used to make final marketable product is includible in value of final product
RBI recognizes partly paid shares and warrants as FDI compliant instruments
Proviso to sec. 44BB ruling out applicability of provision in cases where sec. 44DA applies has pros
AO couldn’t revisit claim of sec. 80-IA relief if it was allowed after thorough examination during a
Even joint ownership in second house at the time of sale of capital assets would lead to denial of s
[Central Excise Tariff Notification] : Seeks to amend notification No. 108/95-CE, dated the 28th August, 1995 so as to allow transfer/sale of goods procured prior to 1.3.2008 for use in projects financed by the UN or an international organization.
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
NOTIFICATION
No. 11/2014-Central Excise
New Delhi, the 11th July, 2014
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 108/95-Central Excise, dated the 28th August, 1995 which was published in the Gazette of India, Extraordinary, vide number G.S.R. 602(E) dated the 28th August, 1995, namely: -
In the said notification, after the proviso, the following shall be inserted, namely:-
"2. Where the said goods are cleared prior to the 1st March, 2008, the manufacturer may -
(a) transfer the said goods to a new project subject to the condition that the manufacturer produces before the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of manufacture, a certificate from the officer concerned of the Central Government, State Government or Union territory Administration, as the case may be, that the said goods are no longer required for the said project and a declaration from the United Nations, the World Bank, the Asian Development Bank or any other international organization listed in the Annexure to the said notification that the said goods are required for the new project and the said project has duly been approved by the Government of India; or
(b) pay duty of excise which would have been payable but for the exemption contained herein on the depreciated value of the said goods subject to the condition that the importer produces before the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of manufacture, a certificate from the officer concerned of the Central Government, State Government or Union territory Administration, as the case may be, that the said goods are no longer required for the existing project. The depreciated value of the said goods
shall be equal to the original value of the goods at the time of clearance reduced by the percentage points calculated by straight line method as specified below for each quarter of a year or part thereof from the date of clearance of the said goods, namely:-
(i) for each quarter in the first year at the rate of 4 per cent;
(ii) for each quarter in the second year at the rate of 3 per cent;
(iii) for each quarter in the third year at the rate of 2.5 per cent; and
(iv) for each quarter in the fourth year and subsequent years at the rate of 2%,
subject to the maximum of 70%.".
[F. No.334/15/2014-TRU]
(Akshay Joshi) Under Secretary to the Government of India
Note.- The principal notification No. 108/95-Central Excise, dated the 28th August, 1995 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 602(E) dated the 28th August, 1995 and last amended by notification No.13/2008-Central Excise, dated the 1st March, 2008 which was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 141(E) dated the 1st March,2008.
Exchange of defective compressor by manufacturer after recovering repair charges won’t be deemed as
Company Court can’t scrutinize accounts along the lines of auditors while sanctioning compromise arr
Paint used in testing and painting of old gas cylinders are consumables; eligible for ST exemption
[Central Excise Tariff Notification] : Seeks to amend notification No. 33/2005-CE, dated the 8th September, 2005 so as to provide for full exemption from excise duty on machinery required for setting up of compressed biogas plant (Bio-CNG).
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification
No.14/2014-Central Excise
New Delhi, the 11th July, 2014
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 33/2005- Central Excise, dated the 8th September, 2005, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 570(E), dated the 8th September, 2005, namely: -
In the said notification,-
(a) in the opening paragraph, after the words, "initial setting up of a project for the generation of power", the words, brackets and letters "or generation of compressed bio-gas (Bio-CNG)" shall be inserted;
(b) in condition (i), after the words, "initial setting up of a project for the generation of power", the words, brackets and letters "or compressed bio-gas (Bio-CNG), as the case may be," shall be inserted;
(c) in condition (ii), for the words "the manufacturer proves", the words "in the case of projects for the generation of power, the manufacturer proves" shall be substituted.
[F.No.334/15/2014-TRU]
(Akshay Joshi)
Under Secretary to the Government of India
Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section-3, Sub-section (i), vide number G.S.R. 570(E), dated the 8th September, 2005 and was last amended by notification No 34/2010-C.E., dated the 18th November, 2010 vide number G.S.R. 916(E), dated the 18th November, 2010.
[Central Excise Tariff Notification] : Seeks to amend notification No. 15/2010-CE, dated the 27th February, 2010 so as to provide for exemption of excise duty on machineries required for initial setting up of solar energy production projects.
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification
No. 15/2014-Central Excise
New Delhi, the 11th July, 2014
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944(1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 15/2010- Central Excise, dated the 27th February, 2010, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.117(E), dated the 27th February, 2010, namely: -
In the said notification,-
(a) in the opening paragraph, after the words "components, required for initial setting up of a solar power generation", the words "or solar energy production" shall be inserted;
(b) for condition (1), the following condition shall be substituted, namely:-
"(1) that an officer not below the rank of a Deputy Secretary to the Government of India, in the Ministry of New and Renewable Energy recommends the grant of this exemption, indicating the quantity, description and specification of the goods and certifies that they are required for initial setting up of a solar power generation or solar energy production project or facility, as the case may be; and".
[F.No.334/15/2014-TRU]
(Akshay Joshi)
Under Secretary to the Government of India
Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section-3, Sub-section (i), vide number G.S.R.117(E), dated the 27th February, 2010 and was
last amended by notification No. 26/2012-C.E., dated the 8th May, 2012 vide number G.S.R. 342(E), dated the 8th May, 2012.