MAT Cos aren't liable to pay interest under sec. 234B and sec. 234C for non-payment of MAT in advanc

IT: No interest is chargeable under sections 234B and 234C for non-payment of minimum alternate tax in advance

Assembling of computers and servers would be deemed as manufacturing activity for purpose of sec. 80

IT : Where assessee was engaged in business of assembling of computer and servers, it was to be regarded as process of 'manufacturing' and, thus, assessee's claim for deduction under section 80-IB was to be allowed

In case of common partner in two firms, bank account of one firm couldn't be freezed to recover dues

CST & VAT : Presence of common partner in two firms, cannot be a ground to freeze bank account of one firm for recovering dues of another

Tax recovery couldn’t be initiated until matter is heard and outcome of stay application is decided

IT : ITO being a quasi judicial authority should not act as a mere tax gatherer but also as an authority vested with power of mitigating hardships to assessee and should at least delay recovery till outcome of stay application

No denial of registration to trust merely due to spending of small amount on charitable activities

IT : Registration under section 12AA could not be declined on ground that trust had spent low quantum towards charitable activity

No writ lies to High Court for deciding issue of non-compliance of DRT's order by respondent-bank

RDDBFI ACT: Non-compliance of DRT's order by one of party for discovery and production of documents in an adjudication pending before it is a matter to be decided on merit by DRT and DRAT; writ jurisdiction cannot be enforced

No withholding tax on commission paid to NR agent for rendering of services outside India

IT/ILT : Where non-resident agents had acted as selling agents of an Indian company outside India and they did not have any business connection in India, commission earned by them for services rendered by them outside India could not be considered as income chargeable to tax in India

Amendment in Cenvat Rule 6(6)(i) to clarify that term SEZ 'unit' shall include SEZ 'developers' is r

Cenvat credit : In rule 6(6)(i) of Cenvat Credit Rules, reference to SEZ 'unit' was there but word 'Developer' was conspicuously missing, which was introduced vide Notification dated 31-12-2008 to clarify doubt; hence, said amendment was clarificatory and retrospective

Rising Steel Imports Hurt Pm Narendra Modi's 'Make In India' Push

The country's steel consumption is expected to grow at its fastest pace in five years in 2015 on Prime Minister Narendra Modi's infrastructure push, but a scarcity of raw materials means it will be at the expense of another key goal - curbing imports.

In his triumphant election campaign, PM Modi criticised the previous government for exporting iron ore but importing steel. However, the Prime Minister's first five months have coincided with a surge in imports of both, denting his high-decibel drive to make the country an export powerhouse.

The nation's steel imports from China, which is the world's biggest producer of the alloy, doubled in the first half of the current financial year, that is between April-September, from a year ago though the country has enough capacity to meet its demand.

While the country's consumption is expected to rise, China will continue to see a downtrend, likely leading to a flood of cheap steel from China just as Modi pushes ahead with the flagship 'Make in India' initiative to boost domestic industry.

Charged by the strongest electoral mandate in three decades, the prime minister has staked his reputation on making the country an export hub, launching his pet campaign with much fanfare in September with a lion as its logo.

Soaring steel imports, however, underscore the challenges Modi faces in realising his dream. Steelmakers, such as JSW, are clamouring for higher import tariffs.

"The 'Make in India' slogan has to be true for steel also," said Ravinder Bhan, deputy general manager of marketing at state-run Steel Authority of India (SAIL). "Let steel firms get iron ore and other raw materials. But that's not happening," he added.

The country has become a major importer of iron ore and coal despite having big reserves of both at home. Once a top exporter, the domestic steel industry is now bringing in shiploads of iron ore due to court action against illegal mining that has stifled supply, while coal behemoth Coal India (CIL) is struggling to boost production.

The shortages mean that the domestic steel industry is running at 80 per cent of capacity. But the World Steel Association expects the prime minister's pro-business plans - building 100 new 'smart' cities, creating new logistic hubs and residential townships - to spur steel demand that has been weak in recent years.

World Steel expects domestic demand to rise 3.4 per cent to 76.2 million tonnes in 2014, after growth of 1.8 per cent in 2013. Structural reforms and improving confidence will support a further 6 per cent growth in 2015, it said.

Home-grown steelmakers such as JSW, Tata Steel and Jindal Steel and Power (JSPL), however, run the risk of being priced out by their Chinese competitors.

"The global market is such that the only thing that you can do is take some protective action to save the (domestic) industry," said AS Firoz, chief economist at a Steel Ministry unit. "Otherwise you can't decide what the global prices will be or at what price China will export steel."

A Steel Ministry spokesman said he had no immediate comment on whether authorities would consider raising tariffs, although a government official, who spoke on condition of anonymity, said the issue was being looked into.

China, the world's largest steel producer, rolls more steel in a month than the country, which is the fourth largest producer, manages in nine months. However, a slowdown in China means it is set to end with a surplus of about 100 million tonnes a year.

A tonne of reinforcement steel produced in the country for use in buildings can cost up to Rs 15,000 ($244) more than that from China, according to Firoz.

Shipments into the country jumped 33 per cent to 4.19 million tonnes in April-September period of the current financial year from a year ago, with imports from China leaping 108 per cent to 1.34 million tonnes. Total steel imports in the financial year ending March 31, 2015 could nearly double to 9 million tonnes, JSW predicts.

"Through 'Make in India', Modi is saying that India should be the hub for the rest of the world and of course to meet our full demand," said NC Mathur, president of the Indian Stainless Steel Development Association.

"Instead something made outside India is coming into the country. That's a big threat. It's a week after week, month after month survival issue.

Source:- businesstoday.intoday.in

Pak Imports From India Cross $2Bn First Time

Despite complexes diplomatic ties between the two bordering countries, for the first time Pakistan’s annual imports from India crossed $2 billion level in the last financial year, 2013-14.

In FY 2013-14 Pakistan had imported $2.04 billion worth different items from the neighbouring country that marked the year’s highest imports from India since the partition.

Pakistan’s imports from India show a steady growth during the past three years. For example, in 2011-12 Pakistan imported goods worth 1.5 billion dollars from India.

In 2012-13 the Indian exports to Pakistan further increased to 1.81 billion dollars. Finally in 2013-14 Pakistan’s imports from India crossed the barrier of $2 billion and mounted to 2.04 billion dollars.

Pakistan’s exports to India, however, did not show any plausible growth and remained less than half a billion dollars. In 2011-12 Pakistan exported 338 million dollars goods to India, 327 million dollars goods were sold to India in 2012-13 and a slight increase in Pakistan’s exports to India was seen in 2013-14, when exports reached 407 million dollars, still far less than imports from the neighbouring country.

The foreign trade data of the Pakistan Bureau of Statistics clearly shows that the key beneficiary of the two countries trade is India and Pakistan is sustaining more than 1.5 billion dollars deficit in trade with bordering country.

In last three years, from 2011-12 to 2013-14, Pakistan had sustained 4.285 billion dollars in trade with India. During this period Pakistan imported 5.357 billion dollars goods from India, and exported there only 1.072 billion dollars goods.

Source:- thenewstribe.com

Norway Pushes Seafood Exports To India

Norway is looking to India as new market for seafood exports after the Russian ban imposed since Aug. 7, reports The Hindu.Norway, which exports seafood to 140 countries, is now looking at potential markets such as India, Indonesia, Vietnam and countries in Central and Eastern Europe, officials said.

“We see a huge potential in India and foresee similar positive changes in demand for Norwegian Salmon that we have seen in countries like Russia and China. These are countries where Salmon was not well known ten to 15 years ago but is now growing rapidly,” said Norwegian Seafood Council director Christian Chramer.

“India has a large population that prefers to eat healthier food, and is aware of the benefits of Omega 3 in seafood. At present, people are having it in five-star hotels and may soon have salmon at home or at restaurants,” Chramer said.

“At this stage, we are facilitating contact between Norwegian exporters and the Indian seafood importers, trade and the retail sector. We are still at an early stage, and are building up our competence and establishing contacts with relevant partners in India step by step,” he said.

Norway has been exporting seafood to India for over ten years but in limited volume.

Important milestones needed to be reached, the most important being establishment of a Free Trade Agreement between Norway and India before setting any export volumes’ target, Chramer said.

Source:-undercurrentnews.com

Indian Coal Import Down By 9Pct In October - Mjunction

According to provisional data from online trader mjunction, India's coal imports fell 9% to 15.33 million tonnes in October from a month ago as cyclone Hudhud exacerbated congestion at some ports.

Shipments into the world's third largest coal importer are, however, expected to jump to as much as 17 million tonnes this month due to lower international prices and as fuel-starved power companies order more.

61 of India's 103 power plants had enough coal for less than a week as of last Sunday because of lower supplies from state giant CIL. This has forced even financially stressed power firms to place import orders.

Mr Viresh Oberoi of chief executive and MD of mjunction said that "We understand that the material against deals struck in October will arrive in November."

Mr Oberoi said that "We also anticipate that some of the vessels, the loading of which might have been delayed in October due to Hudhud, will arrive in November."

India's October coal imports were slightly higher than the 15.16 million tonnes brought in a year ago but was much lower than the 16.92 million imported in September.

Operations at four eastern Indian ports were affected by cyclone Hudhud, which slammed into the coast of Andhra Pradesh and Odisha states last month killing at least 41 people and leaving hundreds homeless.Some ports were congested even before the cyclone hit.

Mjunction said that out of the total coal imported in October, shipments of power-generating thermal coal stood at 12.7 million tonnes and steelmaking coking coal at 1.92 million.

Source:- coal.steelguru.com

No sec. 192 TDS on sums paid to consultant-doctors even if agreement prohibits them from taking othe

IT : Payment made to consultant doctors who were engaged through an agreement, could not be treated as salary liable to TDS under section 192

HC reduced penalty for delayed deposit of TDS as delay occurred when AO denied to accept outstation

CST & VAT : Where assessee deducted tax at source and prepared drafts equivalent to amount of tax deducted in name of Assessing Officer, but banker of Assessing Officer refused to accept drafts as they were outstation drafts and thereupon assessee deposited deducted amount belatedly, penalty imposed for delayed payment was justfied but same was liable to be reduced

Sec. 149 of Customs Act applies to simple amendment in shipping bills, not to conversion from one sc

Excise & Customs : Section 149 of Customs Act, 1962 applies only to simple amendment in shipping bills; it does not apply to conversion of shipping bills from one export promotion Scheme to another

No obligation to listen to financier of vehicle during inspection of goods in transit under sec. 47

CST & VAT : In proceedings under section 47(2) of Kerala VAT Act, registered owner of vehicle or owner of consignment alone are liable to be heard and not financier of vehicle

Sec. 54B relief rightly denied as land wasn't used for agricultural purposes in preceding two years

IT: Where land was not used by assessee or his parent for agricultural purposes for a period of two years immediately preceding date of transfer, exemption under section 54B was rightly disallowed