Excise & Customs : Time-limit for interest on delayed refund of pre-deposit under section 35FF of Excise Act runs from date of communication of appellate order to 'Adjudicating Authority' and, in that context, 'Adjudicating Authority' would mean authority who passed Adjudication Order and/or who can pass refund order
Monday, 29 September 2014
Receipt of additional compensation on compulsory acquisition of capital assets is to be taxed in yea
IT: Additional compensation on compulsory acquisition is to be taxed in year of receipt instead of in year of transfer of capital asset
Sec. 2(22)(e): Lending-Co. advancing loan only to assessee couldn't claim to be having substantial b
IT: Where lending companies advanced loans only to assessee and not to others, lending companies could not be said to have substantial part of business in money lending and thus loans and advances given to assessee were deemed dividend in light of provisions of section 2(22)(e)
HC directs AO to consider exemption for export sales after considering Form C/H available with asse
CST & VAT : Where Assessing Authority disallowed assessee's claim of exemption for export sales on ground of non-production of 'C' forms and 'H' forms, since now assessee was having 'C' forms and 'H' forms, matter was remanded for passing fresh order
HC ordered winding-up of Co. as it failed to pay debt and raised bogus claim about quality of goods
CL: Where dispute raised by respondent-company with regard to quality of goods supplied by petitioner in winding-up petition was not bona fide, respondent company was to be wound up
Gift of shares to foreign AEs wouldn’t attract TP provisions as no income element was involved in su
IT/ILT: Where assessee, an Indian company, transferred shares of its subsidiary company to another group concern located abroad without any consideration, it amounted to transaction of gift and in absence of any income element involved, transaction in question could not be subjected to transfer pricing provisions
General Motors Begins Vehicle Exports From India
General Motors India today said it has begun vehicle exports from India, with a first shipment to Chile.The company shipped the first lot of 140 units of its hatchback Chevrolet 'Beat' from the Mumbai port to Chile last Thursday, a release said here.
Beat was launched in the Indian market in 2010. The vehicle is produced at the company's Talegaon facility in Maharashtra. The plant has an annual production capacity of 1,70,000 vehicles and 1,60,000 engines.
The first 140 left-hand-drive Beats were shipped from the Mumbai Port on September 25 and it is expected to reach Chile in the next few weeks, the company said.
"The first shipment of Chevrolet Beats demonstrates our commitment to make our India-built products available in global markets," GM India president and managing director Arvind Saxena said.
GM India will continue to ship models to Chile on a monthly basis, he said."We expect to identify additional export markets going forward. This will help drive capacity utilisation at our Talegaon plant," Saxena said.
The compact car Beat is already manufactured and sold in many markets across the world.Available in both petrol and diesel versions, Beat is GM India's best-selling model.
As part of GM CEO Mary Barra's recent trip to India, she participated in the roll out of the first Beat for export on September 10.The Chevrolet portfolio in India includes the Spark, Beat, Chevrolet SAIL, SAIL Hatchback, Cruze, Tavera, Chevrolet Enjoy and Captiva.
Source:- business-standard.com
India's Textiles, Apparel Exports To Rise By 10 Pct This Year
India's cotton and apparel exports are set to climb by around 10 percent this year as higher wages, political instability and concerns about workplace conditions in other producing markets steer international buyers toward Indian exporters, industry officials said.
The rise in textile shipments from India - currently around 4.5 percent of world trade - may eat into top exporter China's 36 percent share of the market and will be a boon for Indian textile merchants keen to exploit rising demand stemming from weak cotton prices and global economic growth.
"My orders have increased by about 20 percent so far this financial year. It's a golden period for the Indian textiles industry," said Vijay Agarwal, chairman of Mumbai-based Creative Group, a leading apparel exporter.
Buoyed by fresh export orders, Agarwal is keen to expand his business by investing 2 billion rupees ($32.71 million) in the next year.
The main markets for Indian textiles at the moment are the United States and European Union.
Agarwal and other Indian exporters are anticipating a rise of roughly 5 percent in global demand for textiles and apparel this year.
In addition, India's textile exporters feel the relatively low labour costs in their country, alongside record domestic cotton production this year, should help them gain market share from other exporters in the region.
Cambodia looks set to lose some consumer demand after the government deployed troops in the capital earlier this month as garment workers held rallies to revive a campaign for higher wages that had helped stoke a year-long political crisis.
Textile manufacturers in Vietnam, meanwhile, have been hobbled by the high cost of credit and have struggled to finance expansion drives aimed at winning export market share.
And the collapse of a garment factory in Bangladesh last year continues to divert buyers to India and other markets because of enduring concerns over Bangladeshi workshop safety.
Aside from stronger global demand, larger domestic cotton supplies will also help India push textile and apparel exports up by about 10 percent in 2014/15, said Ajay Sardana, vice-president of Grasim, part of the Aditya Birla conglomerate, on the sidelines of a recent conference in Mumbai.
India will be the world's No. 1 cotton grower this year, ousting China from the top spot for the first time in over 30 years, the U.S. government forecast on Sept. 12.
The Cotton Association of India has pegged next year's output at 39.63 million bales, but experts believe production could be as high as 41 million bales as the area under cultivation has gone up this year.
Expansion in domestic demand is also likely, with India's local textiles market expected to grow to $65-$68 billion in coming years from the current $60 billion, Sardana added.
And unlike in some markets such as China and Cambodia, labour remains cheap in India, keeping costs competitive, said D. K. Nair, secretary general of the Confederation of Indian Textile Industry.
But while exports are expected to rise from India, China, with textiles and apparel exports worth $270 billion, around seven times that of India's receipts, is expected to remain the dominant player.
India's relatively poor infrastructure, wobbly energy supplies and lack of a business-friendly environment for both foreign and domestic investors are expected to constrain overall export growth over the near to medium term, said Christian Schindler, director general of the International Textile Manufacturers Federation
Source:- business-standard.com
India Carmakers Turn To Exports As Local Market Slumps
Heavy investment in India by global car companies in the hope that the fast-growing market would soon rival China are faltering as car sales fall and the depreciating rupee pushes up costs.
But the big brand carmakers such as Volkswagen, Ford and Renault-Nissan are now looking outwards, targeting vehicle shipments to countries abroad, such as the Europe and the U.S., as well as other emerging markets, HSBC said in a trade report on India.
Vehicles and transport equipment currently account for less than 7 percent of India’s total goods exports, but with the oversupply the carmakers have created in the Indian market, the report said it opened the way for India to become an auto export hub.
According to the bank analysts, car exports will be supported by the weaker rupee and the availability of skilled labour in India at a cheap cost. Rising labor costs in China have seen a decline in the mainland’s competitiveness, and this will provide a further boost to India’s automobile and related exports.
“We expect exports of transport equipment to increase by close to 15 percent a year in 2014-2030, far outpacing the 11 percent a year growth of total exports,” the report stated.
This was supported by strong growth in exports of heavy construction machinery made in India by companies such as Caterpillar, said AGS World Transport group CEO Michael Dye.
“This has turned into a good export engine for the country and is a huge business,” the NVOCC operator told JOC.com in Hong Kong.
India’s economy has expanded by less than 5 percent for the last two consecutive years, after growing by almost 8 percent a year in the previous decade, as weak domestic demand put the brakes on the economy. With exports accounting for just 25 percent of GDP, there is scope for India to rebalance away from the domestic economy towards exports, according to the HSBC trade report.
Yet India is expected to be the world’s fastest growing exporter between 2014 and 2030, and has the potential in that period to move from the 14th largest exporter of goods by value to the world’s 5th largest.
However, poor containerized rail service has been a factor hindering efficiency at India's largest port, Jawaharlal Nehru Port (Nhava Sheva). The congestion also trickles down with the port of Paradip at one point having 27 ships waiting to dock as rains and a jump in imports pushed its capacity handling to the edge. Marine Link reported that in the 2013-14 fiscal year, total cargo handled at Indian ports increased by 4.3 percent to 976 million tons.
India’s goods exports are currently dominated by labour intensive, low-skilled sectors. According to the Ministry of Commerce’s latest data, mineral fuels, lubricants and related materials; and jewellery, precious stones and semi-precious stones, accounted for around 35 percent of India’s total goods exports in 2013-2014.
“Looking ahead, however, we expect more capital and skill-intensive sectors like pharmaceuticals and transport equipment to emerge as major contributors to overall exports.With a lot of potential to leverage India’s raw material strength in textiles such as cotton, jute and silk; textiles exports are likely to contribute strongly as well,” the bank’s analysts said.
“Our forecasts suggest that exports of mineral fuels, lubricants and related materials will rise at a rate of just below 8 percent a year in 2014-30, lower than the average growth rate of around 11 percent a year for total exports over the same period.”
Textiles exports accounted for more than 20 percent of India’s total exports in 2001. Since then the share has fallen to less than 10 percent, but India is still the world’s second largest textiles exporter, second only to China.
The Ministry of Textiles in India has introduced policies to develop the industry, aiming to diversify both the product base as well as export markets, improving textile oriented technology and investing in new marketing strategies. This, combined with a weaker rupee, rising labor costs in China and safety compliance issues for factories in Bangladesh (another major textiles producer), give India an opportunity to increase its market share. HSBC expects India’s textiles exports to increase by 12 percent a year between now and 2030.
An enormous and urbanising population means there are parallels to draw between India and China. Like its giant northern neighbour, India’s rapidly expanding middle class will drive growing demand for consumer goods from overseas markets.
By 2030, India is forecast to emerge as the world’s largest middle class consumer market, surpassing both China and the U.S. The bank analysts said this is likely to be accompanied by a shift away from primary food articles, which currently dominate consumer goods imports, towards more technology-intensive items such as computers and mobile phones.
“This presents opportunities for exporters in advanced economies, especially those who are able to capitalize on existing brand awareness; but they will face strong competition from companies in China, which are likely to grab a significant share of India’s demand for technology intensive goods. Indeed, India’s mobile market is already an important source of revenue for Chinese companies, accounting for more than 11 percent of turnover at Shenzen based Huawei technologies, for example, one of the world’s leading telecoms equipment.
Source:- joc.com
Increased Processed Chicken Exports In India
India's poultry farmers, who remain concerned about the possibility of the government allowing duty-free imports of chicken legs from the US, are looking at increasing exports of processed chicken.
A drop in feed prices has made Indian chicken competitive in the international market, which has prompted the farmers to explore the opportunity. To begin with, the sector is planning to beef up its presence in the Middle East, which mostly imports processed chicken from Thailand, Viet Nam and Brazil, reports The Economic Times.
The poultry sector is anxiously watching whether the chicken leg import issue will come up during Prime Minister Narendra Modi's upcoming visit to the US, where talks are likely to focus on strengthening bilateral trade ties between two nations.
The external affairs ministry had proposed to allow duty-free imports of American chicken leg in return for US access to Indian basmati rice and fruits.
Local poultry farmers say such a step would lead to dumping of an item that Americans usually discard. Americans prefer chicken breast meat, which is sold at a premium, and chicken legs are sold at throwaway prices, say Indian farmers.
"We had requested the agriculture ministry not to allow duty-free import of chicken legs from the US. The minister had assured us that he would look into it," said Amit Saraogi, chairman, Compound Livestock Feed Manufacturer's Association (India).
"But in the meantime, we are trying to increase exports of processed chicken to the Middle East so as to take advantage of the falling input cost prices and also to create a market for our chicken in the world market."
Source:- thepoultrysite.com
A.P. Mulls Moving Court On Red Sanders Auction Stay
Centre likely to issue notification on extension of deadline. While the DirectorGeneral of Foreign Trade (DGFT) has permitted the government to auction 8,584 metric tonnes of seized red sanders in log forms in the international market, only 4,160 metric tonnes will be put up for auction in the first phase from October 10 to 17.
The Andhra Pradesh government is contemplating moving either the Supreme Court or the High Court on the stay imposed by the National Green Tribunal (NGT) on red sanders auction.
The government has also asked the Advocate-General whether a counter-affidavit should be filed before the NGT, seeking to vacate the stay or if the Supreme Court or the High Court should be approached for quashing the stay. Sources said the government would take a final call on the matter by Monday.
While the Director-General of Foreign Trade (DGFT) has permitted the government to auction 8,584 metric tonnes of seized red sanders in log forms in the international market, only 4,160 metric tonnes will be put up for auction in the first phase from October 10 to 17.
Meanwhile, a top official of the Forest Department, who was part of the team that visited China and Japan to conduct pre-bid meetings and road shows, said the response was poor in Tokyo, but it exceeded their expectations in Xianyou and Beijing. “Though we expected 40-50 individuals, 110 people turned up at Xianyou, where 70-80 per cent of Chinese furniture is made,” he added.
According to him, the Chinese authorities were cracking down on illegal trade in red sanders. The official added that the visit had also helped in clearing doubts regarding prospective Chinese buyers of red sanders, with the office of CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) in Beijing agreeing to allow it in view of the permission received by the Andhra Pradesh government to export the wood.
With the Union government agreeing to extend the time-limit for disposal of red sanders by six months from October 31, he said a notification in this regard by the Ministry of Commerce and Industry was expected on Monday or Tuesday. The State government had sought extension of time on the ground that the auction could not be held within the stipulated time owing to elections and State bifurcation.
Source:- thehindu.com
Protocol to India-Poland DTAA cuts down tax rates: 10% tax on dividend and interest, 15% tax on roya
IT/ILT : Section 90 of The Income-Tax Act, 1961 - Double Taxation Agreement - Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries – Poland
Govt. notifies comprehensive DTAA with Colombia
IT/ILT : Section 90 of The Income-Tax Act, 1961 - Double Taxation Agreement - Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries – Columbia
CBDT keeps tolerable limit for ALP unchanged for Assessment Year 2014-15; "wholesale trading" define
IT/ILT : Section 92C of the Income-Tax Act, 1961 - Transfer Pricing - Computation of Arm’s Length Price - Notified Tolerable Limit for Determination of ALP
Fee to allow use of technology for 3 yrs without supply of know-how during that period was taxable i
IT/ILT : Where assessee, a subsidiary of US based company, entered into an agreement during relevant year whereby it received certain amount as licence fee for granting right to use technology relating to manufacturing a particular model of tractor for three years, in view of fact that after execution of agreement, no services or know-how was to be supplied during next three years, entire licence fee was to be taxed in assessment year in question even though payment had to be deposited in escrow
HC directs Commissioner(A) to decides assessee’s appeal as he had made pre-deposit before Tribunal
CST & VAT: Where First Appellate Authority dismissed appeal on account of non payment of pre deposit and Tribunal on deposit of said amount decided appeal on merits, matter was remanded to First Appellate Authority for decision afresh on merits
Sums paid to NR providing consultancy on Nahar Pariyojna studies weren’t taxable in absence of its P
IT/ILT : Where a foreign company, which had no PE in India entered into consultancy agreement with Indian entity and received certain payment which it paid to its sub-consultant for carrying out civil work, said sum could not be treated as income of foreign company
No writ against certificate proceedings under Bihar Recovery Act as alternate remedy was available t
CST & VAT : Where assessee-company filed writ petition for quashing certificate proceedings initiated against it under Bihar and Orissa Pubic Demands Recovery Act, 1914, since said Act contained a detailed mechanism for redressal of grievance of assessee, writ petition could not be entertained
Tribunal was justified in deciding all aspects of case when SC directed it to hear matter afresh: HC
IT : Where in course of appellate proceedings, Supreme Court remanded matter back with a direction to Tribunal to hear matter afresh, in such a case, Tribunal did not commit any error in deciding all aspects of matter which were subject matter of appeal
Market price for purposes of excise rebate means a price in export market at time of exportation of
Central Excise : For rebate under rule 18 of Central Excise Rules, 2002, market price must necessarily refer to : (i) market where goods are sold i.e., export market and (ii) time at which goods are exported; therefore, market price in India or market price in export market after exportation are not relevant
A policy can’t be held as ‘Keyman Insurance Policy’ unless it is a pure life insurance policy on lif
IT : Where assessee purchased Insurance Policies, in view of fact that only a fraction of total premium was meant for risk premium and balance was for deployment of purchase of units i.e. investment in units, policies in question could not be regarded as 'Keyman Insurance Policies'
Payments made to foreign agents for mobilising sales outside India are outside the ambit of ‘FTS’
IT/ILT: Where assessee made payment of selling commission to its agent located abroad for mobilising its sales in foreign countries, since said services were not in nature of managerial services, payment in question was not taxable in India as 'fee for technical services' under section 9(1)(vii)(b)
Non-payment of tax along with return couldn’t be penalized if tax was paid only after SC’s order aga
CST & VAT : Where assessee contested its liability to pay sales tax right upto Supreme Court and after decision of Supreme Court Assessing Officer framed assessment of assessee and also levied penalty upon it under section 12B(4) of Karnataka Sales Tax Act for non payment of tax alongwith returns, levy of penalty was not justified
Removal of petitioner-director without giving any hearing chance to him proved act of oppression by
CL : Where petitioner-director was removed from directorship without complying with statutory provisions of section 284 of the 1956 Act and conduct of respondents towards petitioner had been consistently unfair, harsh and lacked probity, same amounted to illegality and acts of oppression
HC dismissed writ against pre-deposit order of Commissioner (Appeals), as such order was appealable
Excise & Customs : A pre-deposit order passed by Commissioner (Appeals) exercising power under section 35F, is an order passed in an appeal filed under section 35 read with section 35A and shall be appealable to CESTAT under section 35B(1)(b)
Depreciation allowed on asset acquired under genuine sale-lease back transaction followed by payment
IT : Transaction of sale and lease back by assessee finance company being genuine, it would be entitled to depreciation on leased out machinery
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