Service-tax : Fabrication of steel storage tanks, dozers and settlers, steel structures, steel platforms, railing, foundation frames etc. and their erection and installation is not covered under Business Auxiliary Services
Wednesday, 20 August 2014
Lessee can take credit of capital goods received from lessor on basis of invoices endorsed in favour
Cenvat Credit : Where lessee is manufacturing goods under lease agreement with lessor and lessor supplies capital goods to lessee, lessee may take credit on basis of supplier's invoice in name of lessor but endorsed by lessor in favour of lesse.
No interest on late filing of block return due to delay on part of department in issuing copy of sei
IT : No interest can be levied under section 158BFA for late filing of block return where such delay was on account of delay on part of department in issuing copies of documents seized during search
Non-signing of appeal doesn’t lead to its dismissal, Tribunal must give chance to assessee to rectif
Excise & Customs : Signing of appeal of proprietorship firm by one staff member instead of proprietor cannot be made basis to dismiss appeal; in such circumstances, Tribunal should grant an opportunity to assessee to rectify defects
CLB declared transfer of shares and appointment of accountant as director void as it wasn't in compl
CL : Where transfer of shares of respondent company from petitioners to respondents, removal of petitioners-directors and appointment of respondents as additional directors was not done properly in accordance with applicable provisions of Act, same were to be declared null and void
Transaction between two resident entities won’t be an ‘International transaction’; no additions to b
IT/ILT : Where for assessment year 2006-07 assessee and its associated enterprise both were residents of India for tax purposes, transaction between them did not constitute an international transaction, thus, addition made under section 92CA(4) was to be deleted
Due date for e-furnishing of tax audit report under Section 44AB for AY 2014-15 extended to 30-11-20
IT/ILT : Section 119 of the Income-Tax Act, 1961 - Income-Tax Authorities - Instructions to Subordinate Authorities – Extension of Due Date for Obtaining and Furnishing of Report of Audit Under Section 44AB for A.Y. 2014-15 in Case of Assessees who are not Required to Furnish Report under Section 92E from 30-9-2014 To 30-11-2014
Cotton Market Prices Fall On Regular Supplies Of Phutti
Rates dropped modestly due to easy supply of phutti on the cotton market on Tuesday, dealers said. The official spot rate was down by Rs 50 to Rs 5350, they added. In ready session, around 22,000 bales of cotton changed hands between Rs 5350-5525, they said. Prices of seed cotton in Sindh were at Rs 2525 and Rs 2550 and in Punjab prices were unchanged at Rs 2600 and Rs 2625, they said.
Market sources said that volume of business improved as mills and spinners were active due to declining trend in prices. Cotton analyst, Naseem Usman said that supply of seed cotton improved which caused an attraction for buyers. Besides, NY cotton futures also drifted lower due to good crop size, so it looks that prices hold the current levels or fall but slow paced, other brokers said.
Reuters adds; cotton futures fell on Monday as bearish expectations for a large crop in the United States, the world's top exporter, offset mill buying. The benchmark December cotton contract on ICE Futures US closed down 0.51 cent, or 0.8 percent, at 63.84 cents a lb. The US government last week projected domestic production will reach a four-year high as demand in top consumer China is expected to fall dramatically due to a policy overhaul during the 2014/15 crop year that began on August 1.
Source:- brecorder.com
Oil Exports To India Topping List Show Shale Impact
The level of economic activity in India is becoming of great importance to Nigeria as the rise of shale oil moves Asia’s third largest economy to the top of the list of receivers of oil shipments from Nigeria.
Nigerian oil exports to India surged in the first quarter (Q1) of 2014 to N516.78 billion ($3.19 billion), from almost negligible levels in 2012, making it number one among the top 10 importers of Nigerian crude between January and March this year, data from the National Bureau of Statistics (NBS) show.
The USA which was top of the list in Q1 2012 when it received N609.66 billion ($3.76 billion) worth of Nigerian crude moved down to the 10th position in Q1 2014 with only N147.4 billion ($909.8 million) of crude imports.
The USA is the world’s largest economy, while India forecast by International Monetary Fund (IMF) economists to become the world’s seventh-largest economy in 2019, is seen as an attractive replacement for the loss of US markets to Nigerian crude.
U.S. oil production has soared over the past five years, while oil imports, especially from OPEC members fell significantly, a development which the minister of petroleum resources, Diezani Allison-Madueke, said was of “grave concern”.
New breakthroughs in technology, such as hydraulic fracturing and horizontal drilling have enabled energy producers to tap previously inaccessible shale oil resources, enabling the shale boom.
Rising American production is also impacting Nigeria (beyond reduced demand) by putting pressure on prices.
Brent crude traded on Tuesday near the lowest since June 25, 2013 or in almost 14 months at $101.89 a barrel on the London-based ICE Futures Europe exchange.
“Oil producers will have to carefully assess their current portfolios and planned projects against lower oil price scenarios,” said PricewaterhouseCoopers (PWC) in their 2013 shale oil report.
“Lower than expected oil prices could also create long-term benefits for a wide range of businesses with products that use oil or oil-related products as inputs (e.g. petrochemicals and plastics, airlines, automotive manufacturers and heavy industry more generally).”
Oil exports to the USA from Nigeria fell 66 percent to 400,000 barrels a day at the end of 2013 from 1.2 million in 2005, according to the USA governments Energy Information Administration (EIA).
Nigeria pumped about 2.15 million barrels of crude a day in June.
The oil and gas industry accounts for 75 percent of the Nigerian government’s revenue and up to 95 percent of dollar earnings.
Analysts say it is crucial to look into ways of facilitating “in-country energy value-add” as opposed to direct lifting of crude, as well as passing the long stalled Petroleum Industry Bill (PIB), to help mitigate the impact of shale.
“In-country energy value-add starts from refining, gas utilisation, and other spin-off sectors from oil & gas, such as petrochemicals,” said Diekola Onaolapo, chief executive of boutique investment bank, Eczellon Capital.
“This is because, while the impacts of shale oil development can be mitigated in the short to medium term, there is a need to be aware of its long term implications.”
Source:- businessdayonline.com
Vw India To Export Half Of 2014 Production
Volkswagen India plans to export half the cars it will make at its Chakan plant this year amid continuing sluggishness in the domestic market.
Last year, the German company sold 100,000 units, while exports stood at 25 per cent.Though the Chakan plant in Pune was built primarily to serve the Indian market, VW is not complaining about the rising overseas sales. “We need to stand on two strong legs,” Mahesh Kodumudi, Group Chief Representative, Volkswagen Group India, and President and MD, VW India, told BusinessLine.
VW currently exports both the Polo and the Vento, and Mexico is one of its main overseas markets. The higher exports have also led VW to sell more petrol cars in comparison to diesel cars. While last year, 45 per cent of all the cars sold were petrol variants, in the first half of this year, the number stood at 69 per cent.
Earlier on Tuesday, VW announced it has invested ?240 crore to establish a new diesel engine assembly line and an engine testing facility at Chakan. At full capacity, the new line can assemble over 98,000 engines.
Building of the new 1.5-litre TDI diesel engine, developed specially for the Indian market and used in the recently launched new Polo and the Polo GT TDI, will begin at the end of 2014.
The company was also looking at building petrol engines at Chakan, Kodumudi said, but plans have not yet been finalised.
The new line will address the needs of the Indian market, as currently the overseas countries are mainly petrol markets. “If needed, we will be happy to make them for export,” Kodumudi added.
Over 260 additional direct jobs will be created in the Pune plant alone, in addition to those created at the Indian suppliers who will be producing and supplying parts and components for this engine.
Source:- thehindubusinessline.com
India’S Q1 Gold Jewellery Exports Up 23%, Even As Global Falls
Gold jewellery exports from India has increased 23% in the first quarter of the current fiscal to nearly $2 billion, even as the global demand for the jewellery saw a decline of 36% in the same period.
According to a report by the World Gold Council, the demand fell due to a decreased off-take in Asia and the Middle East. However, demand picked up in the US and UK.
Industry experts also attributed the increase in exports to a decline in gold price.Pankaj Parekh, vice-chairman, GJEPC, said, "As compared to 2013, gold prices have softened almost 13%. Also, the economies of the US and the UK are recovering, which has led to the rise in exports."
Vipul Sutariya of Dharmanandan Diamonds, a DTC sightholder company, said, "The jewellery markets in US and UK are performing well. Since the gold prices have fallen internationally, consumers are looking at gold-studded jewellery."
Aniruddha Lidbide, gems and jewellery sector analyst, said, "Some jewellery manufacturers are making minimum use of gold in studded jewellery to cut costs. Jewellery with lower gold component has become a major hit in western countries."
According to the Gems and Jewellery Export Promotion Council (GJEPC), India exported Rs 12,115 crore worth gold jewellery in the quarter, registering an increase of 23.36% compared to the same period last year.
"The decline in jewellery demand was dramatic, given such high levels of demand one year earlier. Broad weakness for gold jewelry was noted across Asia and the Middle East, while western markets recorded some improvement, except for Italy, where the fabrication sector is benefiting from improved US demand and re-stocking in other key markets," WGC said in its report.
In India, however, gold jewelry demand fell 25% to $6.4 billion. The WGC stated that an "unofficial flow of gold" into India continued during the second quarter, particularly during the first half as premiums were pushed higher. Such flow of gold will likely build momentum over the coming months as the market moves into the seasonally stronger period of Diwali and the wedding season.
Source:- timesofindia.indiatimes.com
Overseas Bidders Head To Andhra Pradesh Godowns Ahead Of Red Sanders Sale
Overseas bidders have evinced keen interest in seized red sanders wood sale, even a month before Andhra Pradesh government is set to float a global e-tender-cum-e-auction for the same, eyeing a revenue of over Rs. 1,000 crore.
In the last few days since the government announced to sell more than 4,000 metric tonnes (MTs) of seized red sanders in log form, interested groups from countries like China, Japan, Singapore, Australia, and UAE have visited godowns across the state to check the quality of the precious wood, Forest Department officials said.
The sale of seized red sanders (confiscated from smugglers who illegally cut red sanders trees at Seshachalam forests) will be conducted for six days from September 19 for selling 4,160 MTs of red-sanders wood in 177 e-lots containing 1,77,877 logs in first phase on electronic platform by e-tender-cum-e-auction process.
"I see it as a good response shown by prospective buyers both from foreign countries and domestic buyers who have been visiting godowns stocking the wood. In coming weeks we expect maximum number of potential bidders," Additional Principal Chief Conservator of Forests P K Jha told PTI.
Prospective customers from abroad and India have already visited godowns in Tirupati, Kadapa, and Nellore forest divisions, before the e-auction process begins, to inspect quality/quantity of wood to be put out for sale, he said.
The government has fixed a starting price of Rs. 7 lakh to Rs. 12 lakh per MT for A, B, C, and non-grades respectively.
Red sanders is endemic in Seshachalam, Veliganda, Lankamala, and Palakonda hill ranges of the state, distributed in districts of Kadapa, Chittoor, and Kurnool in Rayalaseema region and parts of Nellore and Prakasam, though majority of red sanders smuggling takes place from Chittoor and Kadapa.
Red sanders, also known as red sandalwood, is a valuable wood which has a huge demand overseas, particularly in China, Japan, and East Asia, where it is used for making cosmetic products, furniture, musical instruments, and even drugs. Each tonne of red sanders commands a price of Rs. 25 lakh in the international market.
Andhra Pradesh government has already made efforts to reach out to maximum number of potential purchasers by trying to involve foreign embassies in India and has also written to International Tropical Timber Organisation (ITTO) to pass on the message with regard to auction of red-sanders.
In addition, the government has also proposed to hold roadshows in key countries such as China, Japan, and Singapore in the coming days which has more number of purchasers.
The forest department has also undertaken print campaign, placing advertisements in some of the leading global dailies, including Financial Times.
"Apart from domestic buyers...we are trying to reach maximum number of buyers abroad where red-sanders has huge demand," the senior forest official explained.
The bidders who are visiting the godowns (where CCTVs have been installed and armed guards deployed as part of security measures) have to furnish their identity cards while foreign buyers need to submit their passports details and names of such visitors will be recorded in register, Jha said.
"We are also collecting feedback/ suggestions from them," he said.
Convention on International Trade in Endangered Species (CITES) has given a one-time relaxation permitting India to export 11,806 MTs of seized and confiscated red sanders in any form, including log form.
The Director General of Foreign Trade (DGFT) has also issued notification permitting AP government to export 8,584 MT of red sanders wood in log form by amending EXIM policy.
The forest department had been seeking nod for auctioning the logs stocked in various forest godowns in AP so that the demand becomes less, which in turn will bring down smuggling.
RelatedChinese Rail Official Gets Death Sentence in Corruption CaseChina's Latest Bus Fire Kills One, Injures 19China Paper Denounces 'Rampant Rascality' of Australia Tycoon.
Source:- ndtv.com
Push For Mop-Up Behind Rising Tax Cases, Says Cbec
The Central Board of Excise and Customs (CBEC) has asked its officers to become "responsible litigants" and change their mindset towards revenue maximisation, as the latest data showed the success rate of the department at various levels of appeals was barely 31 per cent in 2013-14, same as the previous year.
The success rate slightly improved to 34 per cent in April-May this year but as these are only early days, the CBEC has evolved a strategy to reduce litigation with taxpayers.
"The mindset or revenue bias is a major cause of rising litigation. With time when the role of the department has changed from the tax enforcers to that of tax facilitators, then definitely the same is reflected in the way CBEC now perceives litigation," said CBEC, in its instructions to field officers.
The Board noted in the long-term with the change of mindset, proper mediation and reconciliatory policies, the litigation would not only be avoided but extinguished before its inception.
At the end of May 2014, the success rate of the department in appeals before the Supreme Court was 43 per cent, against 27 per cent before high courts, 35 per cent before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), and 31 per cent before the Commissioner of Appeals.
Interestingly, in the appeals filed before SC by the department, the CBEC's success rate was poor at 26 per cent. However, in 78 per cent of the cases, where the appeal was filed by the taxpayer, the court's verdict went in favour of the tax department.
"There are three main reasons for their low success rate. First, a lot of appeals are repetitive. They keep on filing fresh appeals for each assessment year till the matter is decided by the court. Second, a lot of time a frivolous position is taken by the department. Last, in many cases the department is not well represented because their officers are overloaded with work and have very little time to work on a case," said Rakesh Nangia, Managing Partner with consultancy firm Nangia & Co. To improve the success rate at all levels, CBEC has asked its officers to ensure voluntary compliance, put in place an alternative dispute resolution scheme and seek the settlement of disputes with the taxpayer through the process of mediation, reconciliation and settlement.
At the end of 2013-14, 122,115 cases involving an amount of Rs 1,55,337 crore were locked up in appeals at various levels. This translates into merely Rs 1.27 crore a case. The amount held up in dispute increased to Rs 1,63,267 crore at the end of May 2014.
The indirect tax collection target for this year is Rs 6.24 lakh crore - about 26 per cent higher than Rs 4.96 crore collected in 2013-14. The growth will be led by service tax collections, which are projected to rise by 40 per cent to Rs 2.15 lakh crore, against Rs 1.54 lakh crore last year. The estimated growth in excise duty and customs collections in 2014-15 is 22 per cent and 17 per cent, respectively.
A finance ministry official said the irony was that very high tax targets are set by the finance ministers and, hence, the target is missed like it did in 2013-14.
"A fiscal deficit number is decided and then all calculations are done backwards. A target is given for tax collections and then everybody is made to work towards achieving that," the official said.
Addressing the annual conference of chief commissioners and directors general of customs of Central Excise and Service Tax on August 11, where the strategy to reduce litigation was discussed, Finance Minister Arun Jaitley had said the revenue targets in the case of indirect taxes for the current financial year 2014-15 were "challenging but very much achievable".
Source:- business-standard.com
Indian Rupee Down 15 Paise Against Us Dollar In Early Trade
Snapping its two-day rising streak, the rupee fell by 15 paise to 60.82 against the US currency in early trade at the Interbank Foreign Exchange market today due to the dollar’s gain against other units overseas.
Forex dealers said besides the dollar’s gain against other currencies on upbeat economic data, fresh demand for the American unit from importers put pressure on the rupee but a higher opening in the domestic equity market capped the losses.
The domestic currency had gained nine paise to close at nearly three-week high of 60.67 against the American unit in yesterday’s trade on the back of sustained dollar selling by exporters and a surge in local stocks.Meanwhile, the benchmark BSE Sensex gained 36 points, or 0.14 per cent, to 26,456.67 in early trade today.
Source:- indianexpress.com
AO can’t decide issue of jurisdiction himself without referring matter to concerned DG, Chief CIT or
IT : Where an assessee calls in question jurisdiction of Assessing Officer, then Assessing Officer shall, if not satisfied with correctness of claim, refer matter for determination under sub-section (2) of section 124 before assessment is made to Chief Commissioner or Director General and Commissioner; he cannot decide issue of jurisdiction himself
Handing over of entire operations alongwith employees under transfer agreement doesn’t amount to man
Service-tax : Where entire operations and employees handover under an agreement of transfer of operations and employees become employees of transferee and no consideration is paid by transferee to transferor, service tax cannot be levied in hands of transferor under Manpower Supply Services
Amount paid at any time without deducting tax therefrom would be hit by Sec.40(a)(ia) disallowance
IT : Where assessee challenged disallowance made by Assessing Officer on account of non-deduction of tax at source while making payments to sub-contractors on ground that disallowance under section 40(a)(ia) could only be made in respect of sums remaining outstanding at end of year, following order passed by Gujarat High Court in case of CIT v. Sikandar Khan N. Tanvar [2013] 357 ITR 312/[2014] 220 Taxman 256/[2013] 33 taxmann.com 133 plea raised by assessee was to be rejected
AO couldn’t ask for cheques for future VAT liability without making provisional or final assessment:
CST & VAT: Where Assessing Authority without passing any provisional or final assessment order had recovered three cheques from assessee towards its future tax demand and/or liability, action of Assessing Authority was not justified
Payment to sub-contractors for transportation of LPG cylinders would be subject to TDS under Sec. 19
IT: Where assessee entered into a contract with IOC for carriage of LPG cylinders, in view of fact that assessee in turn got transportation of cylinders done through three parties by entering into sub-contracts with them, payments of freight charges made to sub-contractors were covered by section 194C(2) and, thus, assessee was required to deduct tax at source while making payments in question
No clandestine removal deemed if revenue failed to prove that assessee had cleared goods without pay
Excise & Customs : Demand cannot be confirmed alleging clandestine removal merely because goods bearing brand/trade name of assessee are found in certain godowns; department must show that goods were manufactured by assessee and cleared without payment of duty
Penalty imposed on appellant for trading in scrip at higher than LTP prior to disclosure of its fina
CL : Where trading in a scrip was done at a price higher than LTP on ground of improved performance of company, but in fact trading was done much prior to disclosure of financial status of that scrip, such trading would establish mala fide intention of misguiding investors about price hike
Subscribe to:
Posts (Atom)