Centre Promises Relief To Rubber Growers

The Centre will give top priority to providing relief to rubber growers in crisis because of the fall in prices, Union Commerce Minister Nirmala Sitharaman said today.

“The priority will be on giving some relief to growers,” the Minister told reporters here, adding that the concerns related to rubber imports would also be addressed.

“Many small growers have stopped tapping rubber as prices have come down. Many are unable to pay workers and are left with nothing after paying wages and this will be addressed first,” she said.

The Minister, who had met representatives of rubber growers, traders and tyre manufacturers here yesterday, said the inputs she had received were more relating to problems faced by the rubber industry.

Asked whether the tyre industry was importing more than the required quantity of rubber, the Minister said figures showed import was much more than the demand-supply gap. However, there is no proof that the imports are by the tyre industry, she said.

Rubber Mark, the apex federation of primary cooperative rubber marketing societies, has suggested setting up of a ?1,000 crore price stabilisation fund to compensate the loss to farmers due to price fall.

It is pointed out that the price of natural rubber has come down in the range of ?121-123 a kg, which is the lowest in the last five years.

The federation in a memorandum submitted to the visiting Minister, requested suspension of rubber imports from September to January, the peak season of production. It also demanded hike in the import duty on rubber for both tyre and non-tyre sectors to at least 30 per cent.

According to S Ratnakumaran, Managing Director, Rubber Mark urged the government to include in the forthcoming National Rubber Policy a ?200 crore Marketing Revolving Fund for the federation to pay for rubber procured from cooperative marketing societies.

This has been necessitated following the wipe-out of the working capital on account of the heavy loss incurred through rubber procurement. The federation has 38 member societies and more than 500 primary credit cooperatives as dealers.

In view of the policy announced by the Centre for making indigenous products, the memorandum also suggested the government to set up joint venture industries for rubber-based products with the support of cooperatives involved in rubber industry for value addition.

There was also a request to declare Rubber Mark as the nodal agency for procuring rubber and to route all funds from the Centre for various schemes connected with the sector. During 2002-03, the federation had procured and exported 20,000 tonnes as directed by the Commerce and Industries Ministry.

Source:- thehindubusinessline.com

Non-production of C Form to attract interest from date of filing of return and not from date of asse

CST & VAT : Where assessee could not produce 'C' form in respect of inter-State sale and thereupon Assessing Authority levied tax on such sale at higher rate and also levied interest from date of filing of return, levy of interest from date of filing of return was justified

AO is debarred from taking those issues in search assessment that can be considered in regular asses

IT : When income has already been reflected in books of account of assessee and disclosed in return of income much prior to initiation of proceedings under section 153C, Assessing Officer cannot initiate proceedings under section 153C to assess such income as unexplained cash credit

Indian Textiles Fair Starts Today

A two-day exhibition begins today in Dhaka to showcase a variety of Indian textile products used in the apparel sector in Bangladesh.

The event is being organised by the Synthetic and Rayon Textiles Export Promotion Council of India in association with the High Commission of India in Dhaka, Sanjeev Saran, convener of Export Promotion Committee, said at a press conference at Sonargaon Hotel in Dhaka yesterday.

“We are here in Bangladesh as collaborators, not competitors. Bangladesh has a very vibrant garment sector. India is also a big destination for backward integration for the Bangladeshi garment sector,” said Saran.

A wide range of textile products such as polyester spun yarn, viscose yarn, suiting clothes, ladies' dress fabrics and home textile fabrics are being displayed by 22 Indian companies at the seventh edition of the exhibition.

The exhibition will remain open for all from 10am to 7pm at the Ball Room of Sonargaon Hotel.

In the past five years, the export of synthetic and blended textiles from India to Bangladesh rose from $124 million in 2009-10 to $237 million now.

Source:- thedailystar.net

India, Russia Trade May Touch $15B By 2015

India's bilateral trade with Russia is expected to reach $15 billion by 2015-end on the back of initiatives taken by exporters to tap that market in the wake of sanctions imposed by EU on Russia.



Currently, the two-way commerce between the countries stood at around $10 billion.The sanctions imposed by the EU on Russia gives huge scope and opportunity for Indian traders in sectors, including agro-products, chemicals and textiles to capture the Russian market. We need to tap that space, Federation of Indian Export Organisations (FIEO) President Rafeeq Ahmed told PTI.



The organisation has recently organised a three-day 'India Show' here.



The US and the European Union have imposed economic sanctions on the Ukraine issue.



Ahmed said that exporters received good business orders and inquiries from Russian businesses in the exhibition, where over 100 Indian exporters showcased their products from sectors including pharmaceutical, leather, agriculture, steel and textiles."Our initiatives would help in pushing our bilateral trade with Russia to $15 billion by the end of 2015," he said.



However, he added that domestic traders are facing few big challenges in the Russian market."Banking is a big challenge. The Russian market is still non-transparent. Customs clearances are still a big problem for us. We need to work on these issues by engaging with Russian authorities," Ahmed said.



He also said similar shows would be organised in Africa and Latin American countries to boost India's overall exports.Growth rate of India's merchandise shipments slipped to a five-month low of 2.35% in August at $26.95 billion, pushing up the trade deficit to $10.83 billion.



"EU market is not performing well. There are problems in Germany, France and Italy. Due to this, we are lowering our exports forecast to around $340 billion for the current fiscal from the earlier projection of $350 billion-$360 billion.

Source:- mydigitalfc.com

Driven By Demand Gold Imports Likely To Double This October

India's gold imports are likely to double in October, driven by demand from consumers who purchase jewellery during the festival season. But investment demand, usually in the form of coins and bars, is likely to be less this year, which in turn may reduce the volume of gold entering the country through illegal routes, say industry executives.

The bullion industry pegs gold imports at 80 tonnes next month."Last year during October, we had imported around 35-40 tonnes of gold. Gold availability was under pressure due to the 80:20 rule," Prithviraj Kothari, vice-president of the Indian Bullion & Jewellery Association, told ET.

"But now the process of getting gold has eased and we are expecting 80 tonnes of gold imports as there is demand for the yellow metal in the market."

The 80:20 rule was introduced last year to reduce gold imports, which were straining the country's current account. Under the rule, agencies that import gold have to ensure that 20% of the shipment is exported after adding value, such as by turning them into jewellery. This led to the agencies slowing down imports, as they weren't sure how to ensure the export requirement, leading to a drop in gold availability in the local market. This rule, and a 10% import duty on gold, have also led to an increase in gold smuggling.

According to Kothari, entry of gold through illegal routes gathers momentum if there is a sudden surge among investors for the yellow metal. If investors sense that gold will generate good returns they start putting in money in gold.

But as of now investors are not finding gold as an attractive investment option vis-a-vis equity though the equity market has slipped this week, he said.

Investment demand for gold has dropped by 67% from a year earlier to 49.6 tonnes during the second quarter of 2014, according to the World Gold Council. However, if the capital market enters into a bearish phase, then investors may start looking at gold again, said industry executives.

"In that case, there will be pressure on the supply side which may see premium on gold going up ... which may then result in entry of gold through the illegal route as this gold carries very little premium," said Bachhraj Bamalwa, a member of the All India Gem & Jewellery Trade Federation. "At present, gold through the official route is commanding a premium of $7 per troy ounce, which is lowest in recent times."

Premium is what bulk buyers pay for immediate delivery of the metal.Bamalwa expects gold imports to total 70-80 tonnes this October.

He said at present, the ratio between gold jewellery and investment demand is 90:10, which means most of the gold buying is in the form of jewellery. According to analysts, gold will not give much return in the near term as internationally prices are dropping. "If someone wants to invest for the long term, say for a year, then he can expect some return. That is why there is very less demand for gold in the market," said Hareesh V, senior analyst at Geojit Comtrade.

"Investors across the globe are on a wait and watch mode. Prices in India could have been lesser if the rupee had not weakened against the dollar," Hareesh added.In the international market, gold may drop below $1,200 level, and may fall to as low as $1,180 mark, analysts said. In the local physical market, gold was trading at Rs 27,000 per 10 gms.

"There is demand for gold jewellery and people are keen to buy at this price level," said Saurabh Gadgil, director of Pune-based jewellery firm PN Gadgil.

Source:-economictimes.indiatimes.com

India’S Rare Call For Rice Imports

India is calling for bidders from Myanmar in a rice tender for the northeastern corner of the country, the first such large request in years, according to rice dealers.

India has long been one of the world’s largest rice exporters and a frequent competitor with Myanmar in third-country markets, but a September 19 Reuters report said a plan to broaden a railway in the northeast requires temporary rice imports.

Myanmar traders say they are keen to begin exports to India, which has seldom required rice imports, as it may lead to chances for future trade.

“It’s a good opportunity for Myanmar,” said U Chan Thar Oo, vice president of the Muse Rice Wholesale Centre. “The Myanmar rice market currently depends on China – but the more markets we have, the better.”

While Indian officials had initially targeted finishing the first tender by September 23, the process was delayed due to technical reasons, according to Indian newspaper Business Standard.

Myanmar rice traders said the country’s exporters should take advantage of its position between the world’s two most populous nations.

Although the tender is not too big, it may begin long-term relationships, said U Aung Than Htun, president of the Mandalay Rice Association.

Source:- mmtimes.com

Govt Relaxes Iron Ore Pellet Export Norms For Kiocl

The government has allowed state- owned Kudremukh Iron Ore Company (KIOCL) to directly export iron ore pellets in a bid to revive the cash-starved company.



"KIOCL Ltd (formerly known as Kudremukh Iron Ore Company Ltd) has been permitted to export its own manufactured iron ore pellets either by itself or through any entity authorized by them for the purpose," Directorate General of Foreign Trade (DGFT) has said in a notification

Source:- ptinews.com

Time For Cbec To Shed Gatekeeper Approach

The Central Board of Excise and Customs (CBEC) should immediately commence work on the development of a Customs vision and strategic plan, the Tax Administration Reforms Commission (TARC) has suggested.

In its second report submitted to the Government, the TARC said the vision document and the strategic plan should set out the goals and the implementation strategy that will ensure Customs department’s place among “best-in-class” customs administrations.

The strategy must enhance customer focus and proactively promote voluntary compliance and should include measures like customer guidance in the form of self-assessment check-lists, manuals containing standard operating procedures and fully updated, user-friendly and reliable website.

TARC also said there is a need to institute a robust framework which will address data and information exchange.

Core clearance



The CBEC should revamp its core clearance process and aim at aligning with the best international practices to ensure that cargo moves seamlessly through Indian ports and airports and build substantial capacities to the area of post-clearance audit, the TARC has said.

It should abandon the “gatekeeper” approach underlying the current control mechanism as it is ineffective and promotes rent seeking, the report said.

Technology, logistics



Parthasarathi Shome-headed TARC has also suggested that CBEC should commence work on building a new generation system to replace the current ICT systems.

Customs should leverage the adoption of the emerging “Internet of things” by the logistic industry to real-time tracking of movement of goods across the supply chain, including to container freight stations, inland container depots and special economic zones and eliminate dilatory, costly and unreliable paper-based processes.

TARC also wants Customs to move away from its traditional administrative approach towards a more proactive and wholesome compliance management system.

Customs should also move away from excessive revenue orientation to be able to fulfil its mandate in areas such as supply chain security and effective implementation of responsibilities in trade-related areas, the report said.

Source:- thehindubusinessline.com

Rupee Down 25 Paise Against Dollar In Early Trade

The rupee depreciated by 25 paise to 61.40 against the US dollar in early trade today at the Interbank Foreign Exchange due to month-end demand for the US currency from importers amid a weak opening in the domestic equity market.



Forex dealers said besides the dollar's gains against other currencies overseas after US data showed the economy expanded at its fastest pace since 2011 during the April-June quarter, fresh demand from importers for the American unit put pressure on the rupee. ..



Source:- economictimes.indiatimes.com

HC validates affixation of order under mahazar before two witnesses when assessee wasn’t available

Service Tax : Pasting adjudication order on premises of assessee under a Mahazar before two independent witnesses, when assessee was not available in premises and premises was also locked, is a valid service under section 37(1)(b) of Central Excise Act, 1944

Statutory remedy available against oppression couldn't be affected by arbitration clause in the agre

CL : Statutory remedy under sections 397 and 398 of Companies Act, 1956 is not affected by arbitration clause under section 8 of Arbitration and Conciliation Act, 1996

DRP rightly ordered exclusion of comparables as they had related party transactions exceeding 25%, s

IT/ILT : Where in course of determination of ALP in respect of non-banking investment advisory services rendered by assessee to its AE, DRP directed exclusion of three comparables having related party transactions in excess of 25 per cent, in view of order passed by coordinate Bench of Tribunal in case of Willis Processing Services (I) (P.) Ltd. v. Dy. CIT [2013] 57 SOT 339/30 taxmann.com 350 (Mum.) impugned finding recorded by DRP did not require any interference