CST & VAT: Where on date fixed neither assessee nor his advocate appeared before Revisional Authority and thereupon he passed order on assessee, matter was sent back for passing fresh order after giving assessee an opportunity of hearing
Thursday 18 September 2014
SC: Unabsorbed depreciation is to be adjusted only against export income for computing sec. 10B reli
IT : Supreme Court affirmed decision of Karnataka High Court that for purpose of exemption under section 10B, unabsorbed depreciation should be adjusted against income of export unit only and not against other income
China May Slow But India Still Loves Coal
New Chinese government coal import regulations designed to cut air pollution could mean more drops in exports for the coal mining industry.
Experienced mine cost data analyst and head of coal at AME Group, Linda Taglieri, said China's announcement had already impacted the thermal coal market.She said China's imports had already fallen by 12% in the first part of this year.
Ms Taglieri told attendees at the Queensland Government-organised Major Projects Conference on Thursday it would be a trend for China as the country moved in the direction of renewable energy and against coal.
But she said there was demand for thermal coal in India.Ms Taglieri said the country's coal was currently sourced from Indonesia, but if India wanted to improve its efficiency it could look to Australia.
A senior figure from Indian mining giant Adani Group who is based in Australia, Sandeep Mehta, said India offered the biggest possibility for coal export.The Ports at Australia Adani chief said India would have a need for coal in the foreseeable future, and "as much of it as we can get".
Mr Mehta said both coal and gas would be critical for India's future.He is part of the team working on the Carmichael Mine in the Galilee Basin.Mr Mehta said the project had the potential to be Australia's largest coal mine.
Source:- gladstoneobserver.com.au
Civil courts can order for reconstruction of lost records
Excise & customs : Inherent powers of civil court under section 151 of Code of Civil Procedure can be invoked for re-constructing records, which has been lost or destroyed
AO couldn’t allow notional depreciation while computing capital gains on sale of seized assets by ba
IT: Where assets of assessee were seized by bank as a result of default in repayment of loan, assessee not being in possession of assets, it could not be said that seized assets were kept in a state of readiness and, therefore, while computing capital gain on subsequent sale of those assets carried out by bank directly, Assessing Officer was not justified in allowing notional depreciation in terms of Explanation 5 to section 32
Govts Supporting Subsidies In Cotton, Says Global Body
Across ten countries, Government support to cotton has continued to be high. Subsidies include direct support to production, border protection, crop insurance and minimum support price mechanism.
In the 2013-14 season, such support totalled an estimated $6.5 billion (roughly ?40,000 crore), down from a record $7.4 billion in 2012-13, Washington DC-based International Cotton Advisory Committee, an inter-governmental body, said in a report. Subsidies averaged 26 cents a pound in 2013-14, unchanged from the previous year.
The Cotlook A-Index average price in 2013-14 was 91 cents a pound which means that cotton subsidies accounted for close to 30 per cent of the price.
The strong negative correlation between subsidies and prices is well-known. In a year when prices are high, subsidies tend to decline and vice-versa. The decline in subsidy in 2013-14 can be attributed to a rise in price compared with the previous year when the index averaged 88 cents a pound.
And, for the same reason, in countries such as Brazil, India, Pakistan and Mexico, prices were higher than the minimum support price in 2013-14, ICAC said. In addition, in India, the Government made no direct purchase.
Cotton producers in the US receive support in various forms including direct payments, counter-cyclical payments, loan deficiency payments, marketing loan gains and crop insurance. The US cotton producers received about $593 million in direct payments during 2013-14 ($580 million), the report said.
Source:- thehindubusinessline.com
Basmati Exports To Fall As Iran Raises Import Duty To 45%
India’s Basmati rice exports to Iran, the biggest market for the country's long-grain aromatic rice shipment, are expected to fall this fiscal due to a hefty 45% duty on imports, imposed three months ago.
Besides the Iranian government's insistence on certification on Good Agricultural Practices (GAP) and ISO 2200, which deals with food-safety management and packaging protocols have also slowed down the exports.
As per the latest data, in the first four months of current fiscal (April-July 2014), Basmati rice exports have declined 12% to 1.19 million tonne, mainly due to slow down in the shipment to Iran.
Sources said earlier Iran used to impose only 10% duty on rice import. However, it hiked the import duty a couple of months ago to protect its domestic farmers. The Iranian rice produce enters the market by July and August.
“Last fiscal, the exports of Basmati rice to Iran had reached the highest level at 1.4 million tonne and this year, the shipment is expected to be around one million tonne,” said a commerce ministry official.
The official said that depending on the domestic production in Iran, it would review the import duty structure in the next couple of months. Iran imports about 40% of rice requirement and around 80% of the imports is sourced from India.
The commerce ministry official also said an Indian delegation will visit Iran in October to discuss rice export issues. “We need a single-window clearance system for our rice exports to Iran so that shipment is stream-lined and remains sustainable,” said All India Rice Exporters’ Association (AIREA) president MP Jindal,
Meanwhile, Iran has also revised the 'accepted level' of arsenic in basmati rice from 150 ppm (parts per million) to 120 ppm and asked Indian exporters to put a tag on each pack of consignment ensuring traceability in case aresenic level is found more than the specified limit.
Apart from Iran, other key destinations for Indian basmati rice are Saudi Arabia, the UAE, Kuwait and Iraq. Non-basmati rice is exported mainly to African countries, including Benin, Nigeria, South Africa and Senegal.
The value of Basmati rice exports in 2013-14 was at Rs 28,187 crore. The country exported 3.7 million tonne of Basmati rice last fiscal.
India had launched a rupee-settlement mechanism from April 2012 with Iran to avoid sanctions from the US and the European Union.
Source:- financialexpress.com
India Inflicts Tax On Chinese Steel Imports
The new action is to strengthen the domestic steel industries, who has been complaining repeatedly about the increase in cheaper imports of steel products like long and flat coils, especially from China occupies large part of the Indian market. Steel products from other countries like Japan, Ukraine, South Korea is also being imported into the country.
Chief Executives of six major steel companies in India meet up with the Steel and Mine Minister of India, Narendra Singh Tomar, in order to discuss about the companies’ conflict regarding the increasing input cost and slow market condition, and along with that also the increasing problems with cheap imports.
According to the sources the meeting ended up with a decision of imposing a safeguard tax in all cheaper imports. The heads of companies stated the minister that the last year’s import from China exceeded all the highest records, and so the government should make required pressing to contain the situation.
The steel companies also accused Chinese imports to be lower than required quality standards, under the Quality Control Order 2012 and import classification. The chairman of SAIL, CS Verma stated that, China is exporting TMT bars, which are thermo mechanically treated, are imported to India in lower taxes as well as with export benefits. He also added that many of the Asian countries, including Thailand, have already taken action to contain Chinese imports, and it is already time that India takes action too.
Source:- metal.com
India Nearly Doubles Oil Imports From Iran In Jan-Aug
Fresh figures show that India’s crude oil imports from Iran have increased by nearly 50 percent in January-August compared with the same period in 2013.
According to data from trade sources, New Delhi imported 271,000 barrels per day (bpd) of Iranian crude in the first eight months of this year, which is nearly double the amount it had purchased during the corresponding time span last year.
Figures further indicate that India bought 273,500 bpd of Iranian oil in August, up 30 percent from the previous month and some 81 percent higher than a year ago.
The August rise in India’s oil imports from Iran came after the Indian Oil Corporation, the country’s biggest refiner, shipped in nearly two million barrels of Iranian crude following a two-month gap.
Last month, Reuters cited similar data showing that Indian crude imports from the Islamic Republic rose by around 46 percent in January-July compared with the same period in 2013.
India is the largest buyer of Iran’s crude after China.
Iran has seen a rise in its oil exports following the implementation of an interim nuclear deal between the Islamic Republic and the five permanent members of the UN Security Council - the United States, China, Russia, France and Britain - plus Germany.
The interim agreement has provided Iran with some sanctions relief in exchange for the country having agreed to limit certain aspects of its civilian nuclear work. Part of the sanctions targeted the Islamic Republic’s oil and financial sector.
Source:- presstv.ir
Renews Customs Cooperation Pact
India and China have renewed the agreement for Mutual Administrative Assistance and Cooperation in Customs matters. A fresh agreement was signed by the Chairperson of Central Board of Excise and Custom (CBEC) JM Shanti Sundharam and the Chinese Ambassador to India.
The fresh agreement will help in timely availability of relevant information for prevention, investigation and combating Customs offences. It will assist customs administrations in both the countries to exchange experiences in the techniques and methods of clearance of goods and passengers, exchanging information on new trends of smuggling and in simplification and harmonisation of procedures.
Source:- thehindubusinessline.com
Rupee Ducks Asia Forex Falls To End Higher At 60.83/Dollar
The rupee gained on Thursday tracking a rally in domestic shares on hopes the country would retain its appeal to foreign investors, despite uncertainty about the outlook for US interest rates that hit other emerging markets.
The partially convertible rupee ended at 60.83/84 per dollar, compared to its close of 60.92/93 on Wednesday.The US Federal Reserve on Wednesday renewed its pledge to keep interest rates near zero for a "considerable time," but also indicated it could raise borrowing costs faster than expected when it starts moving.
Although emerging Asian currencies were hit, the rupee gained as Indian shares rose nearly 2 per cent on speculation of strong foreign buying due to improving domestic fundamentals.
"The turnaround in the stock market during the course of the day on back of various rumours changed the outlook for the pair," said Naveen Raghuvanshi, a foreign exchange dealer with DCB Bank in Mumbai.
The rupee's modest gain stood out against the 0.27 to 0.81 per cent fall in the Indonesian rupiah, Korean won, Malaysian ringgit and the Philippine peso.
Foreign funds have bought debt and equity worth nearly $3.10 billion so far in September, as per regulatory data, bringing their total for the year to $33.15 billion.
Some traders said a report from a local news channel that Standard & Poor's would raise its rating on India also boosted shares and bonds, even as analysts said a full grade upgrade is unlikely given that India is at a "negative" outlook.
In the offshore non-deliverable forwards PNDF, the one-month contract was at 61.17/22 while the three-month contract was at 61.76/86.
Source:- profit.ndtv.com
Assessee providing buses for dropping client’s staff at door step fall under ‘tour operator services
Service Tax : Providing buses to clients for dropping of staff is covered under Tour Operator Services; and further renting of hired cabs amounts to 'rent-a-cab operator services' and liable to service tax accordingly
Trading member to pay fees even after deactivation of terminal as it doesn’t amount to cessation of
SEBI: Deactivating terminal does not ipso facto amount to cancellation of membership of broker as registered trading member of stock exchange and, therefore, exchange would be justified in demanding annual membership fees till application for cancellation of membership
TPO directed to examine proper facts and fix ALP of credit risk assessment exp. charged by HO to Ind
IT/ILT : Where assessee, a non-resident bank, charged credit risk assistance expenses from Indian branch separately in same invoice in which it had allocated certain expenses as share of Indian branch in Head Office expenses and, therefore, TPO opined that ALP of seperately claimed expenses was nil, in absence of assessee's explanation and any certificate issued by auditor of Head Office in support of expenses in dispute, matter was to be remanded back for disposal afresh
CBDT reconstitutes DRP panel at Bengaluru
IT/ILT : Section 144C of The Income-Tax Act, 1961 - Dispute Resolution Panel (DRP) - Reference to - Reconstitution Of DRP at Bengaluru
CBEC asks AO to follow SC's verdict, i.e, only VAT paid under Abatement Scheme is excludible from as
EXCISE & CUSTOMS LAWS : Section 4 of The Central Excise Act, 1944 - Valuation Under Central Excise - Transaction Value - Exclusion of Actual Duties and Taxes - Position Prior to 1-7-2000 - Instruction in Light of Judgment of Supreme Court on Sales Tax Incentive Scheme
Amended definition of sale price imposing VAT on expected sale price of petrol/diesel wasn’t ultra v
CST & VAT : Where Government of Haryana vide Notification No. Leg. 22/ 2011, dated 29-9-2011 had amended definition of 'sale price' by adding Explanation (v) to section 2(1)(zg), amendment was legal and valid
HC reduces pre-deposit amount of sub-contractor as entire tax had been paid by main contractor
Service Tax : When tax on entire value has been paid by main contractor, prima facie, sub-contractor was not liable to service tax and accordingly, pre-deposit payable by sub-contractor was liable to be reduced
RBI revises norms for issuance of equity shares under FDI route
FEMA/ILT : Foreign Direct Investment (FDI) in India - issue of Equity Shares Under the FDI Scheme Against Legitimate Dues
HC stays tax demand as there was huge difference between income stated in return and assessment orde
IT: Where assessee were individual assessees not running commercial business and difference between income shown in returns and assessment orders was very high, assessees were granted stay of demand subject to deposit of certain percentage of demand
No appeal would lie against communication made by department for payment of penalty
Excise & Customs : Mere communication by Superintendent to : (a) pay penalty/dues as per order of Tribunal or (b) face recovery proceedings, does not amount to an 'appealable order' and, therefore, no appeal lies thereagainst
AO couldn’t make addition of entire unaccounted sales as he could only make addition of profit compo
IT: Entire unaccounted sales cannot be added to income but only net profit
Data processing for foreign clients relating to reservation system located outside India was export
Service Tax : Computer data processing for foreign clients in relation to client's Computer Reservation System (CRS)/computer software and database located outside India amounts to Business Auxiliary Services, but, it amounts to Export of Service under Export of Services Rules, 2005 and not liable to service tax
Income from offshore supply of cables couldn’t be attributed to PE of NR in India, says ITAT
IT/ILT: Where offshore contract was only for procurement of cables that too outside India, no part of income could be said to be attributable to assessee's PE in India
Appellant couldn't be allowed to raise belated objection on competence or jurisdiction of an Arbitra
Arbitration: Where appellant failed to raise plea of jurisdiction before Arbitral Tribunal and participated in proceedings before arbitration so appointed without objection could not be permitted to raise it for first time before Supreme Court
Freight and insurance charges are not includible in excisable value of goods if charges separately o
Excise & Customs : When freight and insurance is charged separately on actual basis under debit notes which are like invoices, it cannot be said that freight and insurance charges are not being separately charged; therefore, same is deductible (not includible) in assessable value under Central Excise
ITAT quashed sec. 148 notice as it was issued prior to date of approval from Joint or Additional CIT
IT: Where Assessing Officer issued notice under section 148 prior to date of approval from Jt. Commissioner /Addl. Commissioner, notice was bad in law and liable to be quashed
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