IT : Where no material was found with regard to assessee's ownership of asset found in search, deeming provision in view of Explanation 5 to section 271(1)(c) could not be applied to presume deeming concealment so as to levy penalty
Thursday 17 July 2014
Hyundai Motor Group Car Sales In China, India Up 8.2 Pct In June
Hyundai Motor Group, the world's fifth-largest automotive conglomerate, said Wednesday that its sales in China and India rose 8.2 percent on-year in June, fueled by solid demand for its popular models.
The conglomerate said combined sales by its flagship companies Hyundai Motor Co. and Kia Motors Corp. in the two countries stood at 171,188 units last month, up from 158,225 a year earlier.
China represents the largest market for Hyundai and Kia vehicles, even surpassing the United States market. India, where only Hyundai cars are sold, is also a significant market.
For the first half of this year, combined sales of the two companies stood at 1,071,065, up just under 8.8 percent from 984,585 units tallied for the previous year.
In the larger Chinese market, Hyundai and Kia, who sell cars through local affiliates Beijing Hyundai Motor Co. and Dongfeng Yueda Kia Automobile Co., said sales rose 5.1 percent and 13 percent, respectively.
Both Hyundai and Kia have production facilities in China that can churn out up to 1.79 million cars per year along with 160,000 commercial vehicles, such as trucks and buses.
Hyundai sold 86,668 cars, with Kia managing to post sales hitting 51,006 units.
The carmakers said strong sales of steady selling models, mainly compact, midsize and SUVs, and generally good consumer demand contributed to the rise in overall numbers.
Hyundai said sales of its Langdong and Verna models all surpassed the 20,000-unit mark last month, with models like ix35 CUV, Mistra midsize sedan exceeding 10,000 units.
Of all cars sold, the Langdong, a compact sedan based on the Avante, ranked No. 1 in terms of sales with 20,142 units.
Kia said sales of its K3 compacts and K2 subcompact did well, with numbers hitting 14,916 and 11,907 units, each, in the one-month period. Sales of its Forte and K5 reached a solid 5,865 and 4,394 vehicles.
In the Indian market, Hyundai sold 33,514 cars, up 9.5 percent from 30,610 units sold in June 2013.
Of the 10 models sold on the subcontinent, the Grand i10 supermini ranked No. 1 with sales hitting 7,901 units. This was followed by 7,069 Accent subcompacts being sold in the country. Combined sales of the Grand i10 and regular i10 hit 10,487.
Sales of the EON city car placed third at 6,579 units.
India is the world's third-largest new car market and an important production and export base for the South Korean carmaker, which has a plant in Chennai with an annual production capacity of 600,000 cars.
The overall rise is good news for the automaker, which aims to sell a combined 7.86 million cars in 2014, up about 4 percent from 7.56 million units sold worldwide last year. In the first half, Hyundai and Kia sales hit 4,043,415 units, a gain of 5.4 percent from 3,836,445 units sold a year earlier.
Source:- globalpost.com
Exports Rise 10% In June, Trade Deficit Touches 11-Month High
In a sign that the global economy is gaining some momentum, exports increased for the third straight month in June, growing 10.22 per cent to $26.47 billion over the same month a year ago.
Imports, too, rose 8.33 per cent to $38.24 billion after declining for several months, with gold imports surging following the easing of restrictions. This widened the trade deficit slightly to an 11-month high of $11.76 billion, against $11.28 billion in June 2013.
The increase in exports was largely driven by readymade garments, engineering goods, petroleum products, leather and handicrafts, going by quick trade data estimates released by the Commerce Ministry, on Wednesday.
“The global situation is conducive to exports as both advanced and emerging economies are showing better economic indicators. Credit flow to exporters should increase so that exporters can utilise the opportunity,” said Federation of Indian Export Organisations President Rafeeque Ahmed.
Some negatives
There was, however, a decline in gems and jewellery, electronic goods and agricultural exports.“The electronics goods sector has a small base that is getting squeezed further. This does not augur well for the skilled labour-intensive sector. The sectors where exports are declining need immediate help from the Government,” said industry body Assocham.
Gold imports rose by a whopping 65 per cent to $31.20 billion in June after the RBI allowed seven more private agencies, in addition to designated banks, to procure gold. Imports of project goods and machinery, both indicators of a revival in manufacturing activity, however, were lower in June compared with the same month last year.
Oil imports in June were 10.90 per cent higher, at $13.34 billion. Goods exports in the April-June quarter stood at $80.11 billion, 9.31 per cent higher than the comparable period of the previous year. Imports in the first quarter of the current fiscal year were at $113.196 billion, 6.92 per cent lower than last year.
The trade deficit for the April-June period was estimated at $33.08 billion, lower than the deficit of $48.32 billion in the same quarter last year.
Services exports
For the first time, the Commerce Ministry released data for services exports, based on RBI data. Services exports in May this year were valued at $13.92 billion. Services imports during the month were valued at $8.02 billion. The trade surplus was at $5.89 billion.
Source:- thehindubusinesssline.com
India Coal Demand Set To Rise 6% In Fy15, Lifting Imports
India’s coal demand is expected to rise 6% to 787 million tonnes this fiscal year, coal and power minister Piyush Goyal said, which could lift imports close to 200 million as local supply falters.
Stiff public opposition to land acquisition, environmental red tape and inherent inefficiencies of behemoth Coal India Ltd, the world’s largest coal miner, have made the country a big importer of coal despite sitting on plentiful reserves.
India’s total output has grown at an annual rate of about 2% over the past few years, reaching 566 million tonnes in the year to 31 March, when demand totalled 739.4 million tonnes.
“Over a period of one or two or three years we are confident that we will bring the position to a better situation,” Goyal told reporters, adding that the aim was to increase production by up to 8% every year.
Former banker Goyal—handed the key ministries by new Prime Minister Narendra Modi to fulfil his pledge of power to all—last week pushed a Coal India unit into opening its first mine in decades, work on which was started ten years ago.
On Thursday he urged lawmakers to help the federal government to acquire land faster for new mines and to build railway lines to connect remote pits with fuel-hungry power plants.
Goyal has also asked power companies to raise imports, which hit 169 million tonnes in 2013/14, until local supply picks up.
Coal India and closest rival Singareni Collieries Co. Ltd, which together account for more than 90% of India’s coal production, plan to produce 561.5 million tonnes this year.
This suggests that imports could be much higher than last year, benefiting suppliers such as Indonesia, Australia, South Africa and the US.
Source:- livemint.com
Amendment to sec. 11AB by FA, 2001 would not wipe out existing interest liability under erstwhile pr
Excise & Customs : Section 11AB(2), as substituted by Finance Act, 2001 and providing that section 11AB(1) would not apply if duty had become payable before 11-5-2001, only provides that interest cannot be imposed under amended section 11AB for dues prior to 11-5-2001; it does not wipe out existing liability to pay interest under unamended provisions
NBFC couldn't take shelter of prudential norms to treat overdue interest as NPA if it didn't try to
IT : Where assessee, a NBFC, did not show interest income on loans advanced to two parties on ground that interest remained overdue on it for more than six months, in view of fact that loan in question was a term loan and, moreover, assessee did not demand return of same, it could not be regarded as a non-performing asset and, thus, impugned addition made on account of interest deserved to be confirmed
India's Scrap Imports Down 40.8% During Jan-Apr '14, Says Trade Data
The scrap imports by India during the initial four months of the year declined sharply. The country’s scrap imports during this period plunged significantly upon comparison with the imports during the corresponding four-month period in 2013.
According to trade data, India imported 1,419,902 tons of scrap during Jan-Apr ’14 this year. This is 40.8% lower when compared with the imports of 2,399,880 tons during the same period last year.
During Jan to Apr ‘14, UAE was the main exporter of scrap to India. The scrap imports from the UAE totaled 372,000 tons, accounting for 26.2% of the total imports by India. The scrap imports from the UAE were marginally up by 2.7% when compared with the imports during the same period a year ago.
The second largest source of scrap imports by India was the UK. The scrap imports from the UK during the four-month period totaled 212,000 tons, down 21.6% over the previous year. The scrap imports from the UK constituted 15% of Indian imports.
South Africa remained the third largest ferrous scrap exporter to India during the initial four months of the year. The scrap imports from South Africa plunged significantly lower during the period. South Africa exported 180,000 tons of scrap into India. The scrap imports from South Africa during the first four months of the current year are nearly 56.5% lower when compared with the imports during the similar four-month period last year.The scrap imports by the country during the month of April ’14 alone totaled 426,832 tons.
Source:- metal.com
Rupee Opens Lower At 60.46 Per Dollar
The Indian rupee was trading lower on Friday as the dollar strengthened worldwide following a Malaysia Airlines plane crash in Ukraine that boosted haven assets.
The local currency opened at 60.46 per dollar against its Thursday’s close of 60.18. At 9.12am, the rupee was trading at 60.41, down 0.38% from its previous close, while India’s equity benchmark Sensex index was trading at 25,558.48 points on BSE, down 0.01%.
Most of the Asian currencies were trading lower. The Malaysian ringgit was trading down 0.35%, South Korean won was down 0.28%, Philippines peso fell 0.15%, Japanese yen slipped 0.15%, Thai baht fell 0.03%.
Since the beginning of this year, the rupee has gained 2.29%, while foreign institutional investors have bought $11.4 billion from local equity markets.
The yield on India’s 10-year benchmark bond was trading at 8.73%, compared with its Thursday’s close of 8.73%. Bond yields and prices move in opposite directions.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 80.529, up 0.03% from the previous close of 80.505.
Source:- livemint.com
Onus is on assessee to prove payment of taxes by furnishing either challans or other documentary evi
Service Tax : Where assessee claims that demand has been paid by him, it is for him to produce sufficient material before authorities either in form of challans or otherwise through cogent documentary material that tax has been paid
Issues relating to deficient Car repair services by authorized service station aren’t Competitional
Competition Law: Where OPs failed to repair car of informant despite charging hefty sum, matter related to deficiency in services provided by OPs and did not fall within domain of Competition Law
ITAT directs TPO to identify and allocate exp. on actual basis while computing operating cost for AL
IT/ILT : Matter remanded where TPO while computing operating cost to determine ALP of international transactions did not identify certain expenses on actual payment basis
No need to obtain fresh approvals under Companies Act, 2013 for past related party transactions; MCA
COMPANIES ACT, 2013 : Section 188 of the Companies Act, 2013 - Related Party Transactions - Clarifications on Matters Relating to Related Party Transactions
AO’s discretion to initiate penalty proceedings couldn’t be vitiated by revisional order of CIT
IT : In terms of section 271AAA, Assessing Officer has discretionary power to initiate penalty proceedings and, therefore, revisional order under section 263 cannot be passed for directing Assessing Officer to initiate penalty proceedings
Revenue had no discretion to levy lesser penalty than duty without challenging validity of Rule 96ZO
Excise & Customs : Where validity of Rule 96ZO of Central Excise Rules, 1944 is not under challenge, penalty leviable under said rule would be equal to duty and there is no discretion with authorities to levy lesser penalty
HC deletes disallowance for TDS default which was invoked by AO without giving an opportunity to ass
IT : Where AO disallowed payment of freight expenses on account of non-deduction of tax at source without giving assessee an opportunity to collect necessary evidence and explaining same in support of its case, there being violation of principles of natural justice, impugned disallowance diserved to be deleted
Revenue couldn’t seek confiscation and penalty on undervaluation of banned goods without raising suc
Excise & Customs : Where grounds of undervaluation and confiscation/penalty on that count were not raised in show-cause notice as well as adjudication order, department could not confirm confiscation/penalty on that ground
Benefit of Article 8 of India-Malaysia DTAA is available for shipping of goods under a slot charter
IT/ILT : Benefit of Article 8 of the Indo-Malaysia DTAA is also applicable to shipping of goods from Indian Port to Hub Port using feeder vessels under a space charter or slot charter as the entire voyage from the Indian Port to final destination port is inextricably linked and cannot be segregated. "Operation of ship" for Article 8 purposes can be done as charterer which does not mean to own or control the ship either as owner or as a lessee The word "charterer" should not be confused with the
Revenue has to enquire into whether duplex house is one house or two separate houses before determin
IT: Where assessee claimed that two flats owned by him in a building in fact formed a single property by way of one duplex flat and, thus, its annual value was to be assessed at nil, matter was to be remanded back for disposal as to whether it was a case of two separate residential houses joined together for easy access, or two flats represented a single residential house by applying user test
Recovery proceedings against assessee upheld as it related to assessments made prior to transfer of
CST & VAT: Where assessee had transferred his business in name of his daughter in year 1997 and thereafter Assessing Authority issued on assessee revenue recovery notice, wherein certain amount was claimed as demand made pursuant to assessments completed in years 1987-88 and 1994-95 as also an order of penalty in year 1993-94, initiation of recovery proceedings against assessee was justified
Export of ready to print books via CD or email deemed as customized electronic data; eligible for se
IT: 'Ready to print books' exported by assessee in form of a CD or e-mail are customized electronic data eligible for claiming benefit of deduction under section 10B
MCA asks ROCs to ensure compliance of Emblems and Names Act while allotting names to Cos
COMPANIES ACT, 2013 : Section 4 of the Companies Act, 2013 - Memorandum - Registration of Names of the Companies Shall be in Consonance with Provisions of Emblems and Names (Prevention of Improper use) Act, 1950
Delhi Govt. asks for details of TAN and tax deficiency admitted during search in revised Form DVAT
GST/Indian Acts & Rules : Delhi Value Added Tax (Second Amendment) Rules, 2014 - Amendment in Rule 57A, Annexure-1, Form DVAT-16, 17 & 48
Interest on FDR isn’t an income from International Transaction; to be excluded from operating income
IT/ILT : Where assessee-company was engaged in rendering only mediatory and support services to its AE located abroad, interest income earned by it on amount deposited in FDRs would not qualify as income from international transactions and, consequently, same could not be included in operating income while determining ALP on basis of TNMM
In case of combination packs of dissimilar products, excise duty is to levied on individual MRP of e
Excise & Customs : If a manufacturer manufactures two products A and B, both notified under section 4A, and clears them as combination pack, duty has to be paid in respect of each item separately on basis of its individual MRP, its individual rate of abatement and individual rate of duty; and not on basis of MRP of combination pack
No Special Resolution required for capital reduction if an approved arrangement had already included
CL: While construing a scheme or resolution effecting reduction of capital, though section 100(2) requires same to be done through a special resolution for reducing share capital passed by members, it would be sufficient if all members were put on notice of proposed agenda of reduction of share capital and requisite majority for a special resolution, as posited by section 189(2), approve or consent to same
HC directs first appellate authority to consider case on merits as Commissioner had set aside its re
CST & VAT: Where First Appellate Authority set aside assessment order passed by Assessing Authority and remanded case to him to make fresh assessment and thereafter Commissioner, in exercise of his revisional powers, set aside order of First Appellate Authority, in light of provisions of appeal contained in section 62 of Karnataka Value Added Tax Act, 2003, matter was remanded to First Appellate Authority for reconsideration of appeal on merits
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