CST & VAT : If an assessee after service of notice for assessment did not appear before Assessing Officer, then Assessing Officer could rely upon material which he had with him and was not required to send another notice to assessee
Tuesday, 14 October 2014
Any reduction made from export turnover had to be reduced from total turnover as well to compute sec
IT : While computing deduction under section 10B whatever is to be reduced from export turnover has to be reduced from total turnover as well
HC upholds Tribunal’s order directing partial pre-deposit by encashment of bank guarantee
Excise & Customs : Where assessee was found, prima facie, to have violated provisions of Foreign Trade Policy (Export Promotion Capital Goods (EPCG) Scheme), pre-deposit ordered by Tribunal by way of encashment of bank guarantee was valid
AO couldn’t deny stay of demand on non-compliance of certain conditions without considering merits o
IT : Where assessee filed an application seeking stay of demand during course of appellate proceedings which was dismissed by Assessing Officer on ground that assessee had not fulfilled conditions stipulated in instructions of C.B.D.T., without observing as to under what circumstances, assessee had not made out a prima facie case, impugned order so passed deserved to be set aside
No denial of sec. 10(23EA) relief to NSE investor protection fund even if it had already claimed sec
IT : Where NSE Investor Protection Fund Trust claimed exemption under section 11 stating that none of beneficiaries were trading member of NSE which revenue did not accept, matter was to be decided afresh
India: Ports Traffic Increase By 4 %
Barring Kolkata Port and New Mangalore Port, all the 10 major ports posted a marginal increase in cargo traffic for the first six months of the current financial year.
All these ports put together handled 288.48 million tonnes of cargo against 276.86 million tonnes for the corresponding period last year, marking an increase of 4.2 per cent, according to a data released by the Indian Ports Association.
Mormugao led the pack by posting 22.25 per cent growth, followed by Kamarajar Port (15.56 per cent) and V.O. Chidambaranar Port (11.52 per cent).
Kolkata Dock System and Haldia Dock Complex posted a negative growth of 0.86 per cent.
Total tonnage
Mumbai Port was pushed to fourth slot, Jawaharlal Nehru Port to sixth and Chennai Port Trust to the ninth. Tonnage-wise, Kandla occupied the first slot, followed by Paradip, JNPT, Visakhapatnam, Mumbai and Chennai.
The country as a whole posted negative growth in iron ore volumes at 22.80 per cent and marginal loss in petroleum, oil and lubricants (POL).
Mormugao Port and Chennai Port posted impressive growth by handling iron ore, while Mumbai, Paradip, Kandla, New Mangalore and Kamarajar ports handled large volumes of coal.
Container volume
During April-September 2014, all ports, barring Kamarajar and Kandla, handled 40.6 million Twenty-foot Equivalent Units (TEUs) of containers against 37.63 million tonnes, representing 6.46 per cent. JNPT led the show followed by Chennai Port and V.O. Chidambaranar Port. Visakhapatnam registered a decline in container.
Source:- marinelink.com
India's September Natural Rubber Imports, Output Drop Y/Y- Rubber Board
India's natural rubber imports in September dropped 12.6 percent from a year earlier to 41,848 tonnes, while production plunged by a quarter to 60,000 tonnes due to higher rains in key producing regions, the state-run Rubber Board said on Tuesday.
The country's natural rubber consumption in the month stood at 85,500 tonnes, up 6.1 percent from a year ago, as demand from the auto industry rose.
India imports natural rubber from Indonesia, Thailand, Vietnam and Malaysia.
Source:- http://in.reuters.com
India May Impose Safeguard Tax To Check Chinese Imports
India today said it could consider imposing "some kind of safeguard duties' on Chinese imports to bridge the huge trade gap as it cannot be sustained in the long run.
"This trade deficit (between India and China) is not sustainable in the long run and therefore it is very important to understand for Chinese companies that in the coming years, India will have to put some kind of safeguards whether it is in terms of standards...
"India will do this because (India) can not sustain this (trade deficit) for over a long period," said Department of Industrial Policy and Promotion (DIPP) Secretary Amitabh Kant.
India's trade deficit with China stands at about $36 billion with exports totalling only $15 billion against $51 billion imports.
Speaking at the function of industry body PHDCCI Kant said that it was time that Chinese companies should increase invest in India and set up manufacturing bases.
"Chinese companies should actually manufacture the same goods (which they export to India) in India. We welcome Chinese companies. You please invest and manufacture in India. We will welcome telecom equipment, power equipment but kindly manufacture in India.
"Our government wants Chinese companies to make in India and use India as an export base for other places," he added.
The Secretary said that China is facing problems in export solar equipment to the US as America have imposed anti-dumping duty.
"...please use India as a base for exports...you will face anti-dumping duty on every good in future so the only solution for Chinese companies is to produce in India and export to America," Kant said.
He asked Chinese companies to find domestic partners and export to regions such as Africa and Latin America.
"India is a very attractive FDI destination," he said, adding: "we expect that this year, we will get about $50 billion FDI".
He said although China is setting up two industrial parks - Maharashtra and Gujarat - but there is need to increase investment.
"Between April 2000 and July 2014, China have invested only $411 million. This is only 0.18 per cent of India's total FDI which it has received so far. The Chinese figure is very low. Lower than Botswana and Rwanda. FDI from China in India is insignificant and extremely poor. This is shocking," he added.
Assuring full support and hand holding to Chinese companies, the secretary said the Chinese companies should look at sectors such as automobile, power, telecom, infrastructure and development of smart cities and industrial corridors".
"China and India -- the two elephants -- when they dance together, the whole world will shake. America will shake, Europe will shake. And if you dance alone, then the world will not shake. Join hands with India to ensure that Chinese companies entered the world in partnership with India," Kant said.
He said India's average foreign direct investment in the last three years was about USD 39 billion and the country is now focusing on manufacturing growth and infrastructure development.
Chinese companies should grab this opportunity and invest heavily in India, he said.
"While we are seeing huge growth of FDI from all over the world... but as per our data FDI from China is extremely poor. China ranks 28th in terms of FDI equity into India," he said.
The DIPP secretary said China has started with Gujarat and Maharashtra and now "China should get into every state of India. That is the challenge for Chinese companies here".He said that the neighbouring countries should quickly set up the two industrial parks.
Source:-articles.economictimes.indiatimes.com
India Loses Wto Case Against Us On Poultry Imports
In a big setback, India on Tuesday lost a case in the WTO against the US on restrictions it had imposed on poultry imports from America.Giving its ruling on a case filed by the US, the World Trade Organization's dispute panel said that restrictions imposed by India on imports of poultry from America were "inconsistent" with the international norms.
In March 2012, the US had dragged India to the WTO against India's ban on imports of certain American farm products, including poultry meat and eggs.
India had banned imports of various agricultural products from the US in 2007, as a precautionary measure to prevent outbreaks of avian influenza in the country.
"India's Avian Influenza (AI) measures are inconsistent with (several articles)....of the SPS (sanitary and phyto-sanitary) Agreement because they are not based on the relevant international standard," the ruling said.
India's measures, it added, are "arbitrarily and unjustifiably discriminate between Members where identical or similar conditions prevail and are applied in a manner which constitutes a disguised restriction on international trade."
It also said that the measures are "significantly more trade-restrictive" than required to achieve India's appropriate level of protection with respect to the products and "therefore are also applied beyond the extent necessary to protect human and animal life or health".
Source:- timesofindia.indiatimes.com
Cbec Says Excise Audits Will Continue
The Centre on Tuesday decided to garner revenue by indirectly levying service tax on NRI remittances, a move that will eat into the earnings of lakhs of NRIs who regularly send money back home.
In a circular issued by the Central Board of Excise and Customs (CBEC), the government said banks and financial institutions which levy a fee or commission for facilitating the transfer of money from abroad will have to pay service tax.
The circular effectively revises the government decision of 2012 to not levy service tax on NRI remittances.
The circular issued late on Tuesday night by Dr Abhishek Chandra Gupta, technical officer of CBEC, said that banks and financial institutions fall under the
category of intermediary as defined in rule 2 (F) of the Place of Provision of Service Rules 2012.
Sachin Menon, chief operating officer, tax and regulatory services, KPMG, said the circular was "completely unfair" to NRIs who send remittances to the country.
"No service provider pays service tax from his pocket," Menon said.
Menon said the move was akin to "picking the pockets of labourers and maidservants" who work abroad.
"Assuming that Rs10 is the additional cost [transaction fee charged by money transfer agent] of every Rs 100 that an NRI sends, now only Rs 98.76 will be received for every Rs100 sent [after reducing 12.36% service tax on Rs10]," Menon said.
Critics also said the move might result in a rise in anti-national activities, with money remitted through hawala as an alternative.
Emerging as the top recipient of money from abroad among developing nations, the country received remittances of $64 billion in 2011, according to World Bank data.
Chief ministers of Punjab and Kerala, states that get the largest remittances, had taken up the matter with prime minister Manmohan Singh when the tax was previously mooted, and the circular was withdrawn in 2012.
Source:- timesofindia.indiatimes.com
Indian Rupee Marks Lowest Close In Over 1 Week; Dollar Rebounds
The Indian rupee slumped on Tuesday, retreating from a nearly three-week high hit earlier in the day as growing worries about global economic growth sparked a recovery in the dollar, offsetting data showing sharply easing domestic inflation.
The dollar recovered its footing in Europe on Tuesday after sinking to its lowest in a month against the yen amid deepening worries over global growth and an equities sell-off that is gathering pace.
The advance in the greenback erased earlier gains in the rupee after data late on Monday showed India's consumer inflation in September slowed to its lowest on record. Data on Tuesday showed wholesale inflation slid to the lowest in nearly five years in September.
"The rupee may remain range bound from here, but the next big move will again be defined by how the dollar moves globally," said Anil Bhansali, vice president at Mecklai Financial.
The partially convertible rupee closed at 61.41/42 per dollar compared with 61.0950/1050 on Monday, its weakest close since Oct. 1.
That marked a sharp swing after the rupee had risen to as much as 60.90 earlier in the day, its highest level since Sept. 23.
The rupee ceded ground in the late session as the dollar index, which measures the greenback against a basket of currencies, was up close to 0.2 percent for most of the session.
The greenback was also helped by pent-up demand as U.S. markets were closed on Monday and by the mid-month requirement of Indian defence companies, traders said.
Source:- brecorder.com
Supreme Court admits against Delhi High Court's verdict striking down Service Tax valuation Rule 5(1
Service Tax : Where Delhi High Court had held that rule 5(1) of Service Tax Valuation Rules providing for inclusion of value of expenditure or costs incurred by service provider was ultra vires and liable to be struck down, Supreme Court admitted appeal thereagainst
CLB norms don’t allow co-respondent to file counter reply against respondent, rules HC
CL: In a petition before CLB, a co-respondent cannot file a rejoinder/counter reply to a reply filed by one or more respondent
Sum received for laying and installation of pipelines couldn't be treated as 'FTS'; taxable under se
IT/ILT : Where assessee providing technical and engineer service, was given a turnkey project for laying and installation of pipelines, provisions of section 44BB would clearly apply
Sum paid to resident to advertise TV channels in India won't attract TP provisions even if it benefi
IT/ILT : Payments made by resident agent to residents by way of ad spends are not international transactions u/s 92
Sec. 158BD block assessment could be made against the Co. even if seized material related to its dir
IT : Where in course of search proceedings in case of 'M' group, certain incriminating material relating to assessee-company was seized, initiation of block assessment proceedings under section 158BD against assessee could not be challenged by raising a plea that material seized related to director of assessee-company only and not to company itself
Construction services provided to Haryana Seed Development Corporation are liable to service tax
Service Tax : Construction services provided to Haryana Seed Development Corporation or HAFED, which are prima facie commercial concerns, are liable to service tax
No TDS on sums paid to transporters if assessee had collected their correct PAN
IT : Where in respect of payments made to transporters, assessee rectified PAN of those transport operators who had given wrong PAN originally, Assessing Officer could not deny benefit of section 194C(6) in respect of said payments
100% EOU can't claim rebate on export of goods as such goods are already exempted from duty
Excise & Customs : In case of goods exported by 100 per cent EOU, said goods are absolutely and unconditionally exempted from excise duty and, therefore, as per section 5A(1A), EOU cannot pay duty thereon so as to claim rebate
No tax on advance received by NHPC against depreciation as it was part of tariff and it would reduce
IT : Where assessee, a public sector company, engaged in selling electricity to State Electricity Boards, received Advance Against Depreciation (AAD) by way of tariff charges which was to be adjusted against future depreciation so as to reduce tariff in future years, amount so received was to be regarded as liability and, thus, not includible in computation of taxable income
ITAT interprets Formula prescribed under Rule 8D for allocating common interest exp.
IT : Interest expenses directly attributable to tax exempt income as also directly attributable to taxable income, are required to be excluded from computation of common interest expenses to be allocated under rule 8D(2)(ii) of Income-tax Rules, 1962
ITAT had to consider legal effect of amalgamation and winding-up order while deciding penalty procee
IT: Effect of order of amalgamation and winding up of assessee on penalty proceedings being a legal issue to be answered by Tribunal which had admitted that question and additional evidence in that regard; remand to Assessing Officer was unjustified
Commissioner can pass revisional order if order of first appellate authority is erroneous/prejudicia
CST & VAT: Where Additional Commissioner initiated revisional proceedings against assessee and set aside order passed by first revisional authority, before setting aside impugned order, he must record a finding that said order was not only erroneous, but also prejudicial to interest of revenue
Sec. 80-IB relief allowed to assessee as it was treated as manufacturer under Excise Laws
IT : Where assessee was engaged in manufacturing LED based aviation signalling, warning, traffic lights, push buttons, selector switch, lamp holders, LED modules/lamps/indicators, in view of fact that Central Excise Department recognised assessee as manufacturer and callected excise duty from it, assessee's claim for deduction under section 80-IB was to be allowed
Department couldn’t reassess amount of refund allowed by appellate authority without challenging its
Excise & Customs : Where refund has been allowed by appellate authority, then, without challenging such appellate order in further appeal/revision, department cannot reassess or re-quantify amount of refund
Revenue couldn't plead that assessee was agent of NR without challenging non-taxability of NR in Ind
IT/ILT : Where revenue did not prefer appeal against order of Tribunal holding that amount received by non-resident from assessee was not taxable in India, question as to whether assessee could be treated as agent of said non-resident or not became academic
PVC pipe used in pumping sets wasn't exempt from commercial tax as it was an essential part of pumpi
CST & VAT : PVC Pipes used in pumping sets are not eligible for exemption from commercial tax
SEBI has barred DLF and its directors from accessing securities market for 3 years
CL : DLF, its chairman and directors employed a plan, scheme, design and device to camouflage association of DLF with its three subsidiaries namely, Felicite, Shalika and Sudipti to mislead and defraud the investors in securities market in connection with issue of shares of DLF in its IPO. DLF and its directors were restrained from accessing securities market and were prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, in any manner, whatsoever, for the pe
Subscribe to:
Posts (Atom)