Wednesday, 10 September 2014
Fabricated items supplied to mega-power projects were classifiable as part of such project; eligible
HC asks for afresh proceeding as ITAT simply allowed exp. in year of payment of TDS without consider
Services provided by common effluent treatment plant are exempt from service tax
No adjustment of excess payment of ST without intimation when amount of adjustment exceeded one lakh
Deputation of persons for exchange of Forex between licensed money changers isn’t in violation of FE
No withholding taxes from freight paid to foreign shipping Co. or to its agent which was assessed un
Steel Min Asks Finmin To Roll Back Duty Of Coking Coal Imports
The Steel and Mines Ministry has sought rollback of 2.5 per cent duty on coking coal imports, imposed in the last Budget, to unburden domestic steel makers.
Finance Minister Arun Jaitley in Budget 2014-15 had imposed 2.5 per cent duty on coking coal imports, which the steel industry had said could lead to an increase in cost of steel production by Rs. 200 a tonne.
“We have written to the Finance Ministry urging to bring down the import duty to nil. However, we are yet to hear from the Finance Ministry,” a senior steel ministry official said.
“Coking coal is an essential raw material for the making of steel and our steel makers do not get them adequately from domestic sources. Hence, they have to import them from abroad. We believe the cost of raw material should always be lower,” he said.
Reacting to the Budget proposal, domestic steel makers had said that in view of the current shortage of domestic coal for both steel and power sector, increase in basic customs duty on coking coal “requires to be reconsidered”.
Indian steel makers mostly used imported coking coal for use in the blast furnace and the annual volume goes up beyond 35 million tonnes. This is due to subdued and stagnant supply from state-run Coal India Ltd.Production of one tonne of steel requires 0.8 tonnes of coking coal.
Source:- thehindu.com
India Says Not Considering Immediate Gold Import Duty Cut
The government is not considering an immediate gold import duty cut, Trade Minister Nirmala Sitharaman told reporters on Wednesday.
New Delhi had raised the import duty on the yellow metal last year to 10 percent to limit overseas purchases by the second-biggest bullion consumer and help trim its bloated current account deficit.However, a dramatic improvement in the deficit had raised market expectations of a duty cut.
Source:- in.reuters.com
High Agri Imports Under Govt Lens
Faced with a burgeoning trade deficit due to rising import, the ministry of commerce has identified nine agricultural commodities of which annual import constitutes more than $100 million each for action in this regard.
The commerce ministry initiative is following a directive from the Prime Minister’s Office (PMO).It has written to the respective sector councils and associations, seeking ways to reduce such imports. The nine commodities are vegetable oils, pulses, fresh fruits, cashew, sugar, alcoholic beverages, processed items, cocoa products and sesame seeds.
One such letter, addressed to the chairman of the Agricultural & Processed Food Products Export Development Authority (Apeda) and industry bodies such as the Solvent Extractors' Association of India (SEA) and Indian Oilseeds Produce and Export Promotion Council, reads: "There is a directive from the Prime Minister's Office on institutionalising import appraisal and reducing import dependence. Department of commerce is required to prepare a policy paper containing strategy, goal, road map and outcome for reducing (such) unwarranted dependence. It has been decided that import items of a value more than $100 mn may be analysed in the first instance."
Edible oil leads the agri commodities' import basket with a 60 per cent share. Pulses (15 per cent), fresh fruits (10 per cent), cashew (six per cent) and sugar (three per cent) also contribute.
India's annual consumption of edible oil is estimated at 19.5 mn tonnes, of which around 60 per cent is met through import, largely from Indonesia and Malaysia. The dependence on imported pulses is 18 per cent of the total 20 mt of annual consumption. The import bill for edible oil was $7,250 mn in 2013-14 ($9,851 mn in 2012-13). Pulses worth $1,828 mn was imported in 2013-14, compared with $2,450 mn the previous year.
“To check import of vegetable oils, we should increase domestic production of oilseeds. At 1,000-1,100 kg per hectare (ha), oilseeds production is half of the global average. Since India’s strength lies in soybean and cotton seed, their production should be increased at least by 50 per cent in the next five years,” said Vijay Data, president of SEA.
It also recommends introduction of genetically modified oilseeds for cultivation.India is also a major importer of fresh fruits and juices to the tune of $1,273 mn (in 2013-14, versus $1,138 mn the previous year).
“The only way to contain import is to increase domestic production. Apart from focus on increasing productivity, we need to concentrate on reducing post-harvest loss and to increase cold storage capacity. Attempts made in the last two Plan periods have resulted in an increase in pulses production by three mt to 17 mt (yearly) now. That efforts need to be continued to make India self reliant in pulses in the next five-six years,” said Santosh Sarangi, chairman of Apeda.
For this, we needs to invest immensely on research and development. According to Bimal Kothari, vice-president of India Pulses and Grains Association, our average yeild of pulses is one of the lowest in the world.Abinash Verma, director-general of India Sugar Mills Association, wants import duties raised to stop a supply glut.
Source:- business-standard.com
Rupee Weakens To Near One-Month Low On Fed Worries
The rupee weakened to its lowest in nearly a month on Wednesday tracking falls in emerging markets due to worries the U.S. Federal Reserve would raise interest rates earlier than expected, although exporters' dollar sales capped broader falls.
Emerging markets tracked falls in Wall Street and a rise in U.S. bond yields after a San Francisco Federal Reserve Bank paper released on Monday showed investors underestimated the speed at which the Fed might raise interest rates.
That raised concerns the U.S. central bank could signal an earlier-than-expected rate hike at its next policy meeting on Sept. 16-17.
The partially convertible rupee traded at 60.8850/8950 per dollar, its weakest level since Aug. 14, at 12:50 p.m. The rupee had ended trade on Tuesday at 60.60/61.Traders expect the rupee to hold in a 60.70 to 61.00 to a dollar range in the rest of the session.
Source:- businesstoday.intoday.in