IT: Where assessee after purchasing unfinished handicraft goods applied various processes like cutting, polishing, repairing, remaking, etc., and for that purpose, incurred substantial labour expenses, it could not be denied exemption under section 10AA on ground that it was not a manufacturing concern
Wednesday, 12 November 2014
AO couldn't make reassessment to disallow sec. 80-IA relief if such issue was considered during asse
IT: Where issue of deduction under section 80-IA was discussed and deliberated by Assessing officer during regular scrutiny proceedings and responded to by assessee, merely because issue was not discussed in assessment order would not lead to reopening of assessment
Sale of pickle with a brand name not registered under Trade Mark Act to be taxed at 4% under kerala
CST & VAT : Where pickle sold by assessee under a brand name 'Happy' had not been specifically registered under Trade Marks Act, same was taxable at four per cent falling under Entry No. 49 of Third Schedule to Kerala VAT Act
Investment in REC bonds out of advance money received in an agreement to sell would qualify for sec.
IT : Where assessee had invested part of advance money received on agreement to sell of property in specified bonds prior to actual sale, such investment would qualify for exemption under section 54EC
HC grants stay on recovery proceedings as appeal was pending for adjudication before CIT(A)
IT: Pending appeal against assessment, application for stay cannot be rejected on ground that recovery cannot be stayed
Income earned by NR from supply of hardware alongwith embedded software was business receipt and not
IT/ILT : Where assessee, a French Company, was engaged in business of manufacturing, trading and supplying of equipment and services for GSM cellular radio telephones system, revenue received by assessee on account of supply of software which was embedded in hardware was not in nature of royalty and therefore, it was to be taxed as business profits in accordance with article 7 of India-France DTAA
CLB can order rectification of register of members if it finds that shares are acquired in violation
CL : Mere imposition of penalty by SEBI for acquisition of shares in violation of 'Takeover Code' does not absolve a person from consequence as contemplated by section 111A and thus CLB is empowered to pass on order for rectification of register of members
Payment by exporter to NR consignee agent for office exp. couldn't be held post-sales exp. not perta
IT/ILT: Where assessee exporter paid "USA office expenses" viz., ocean freight, duties, warehousing expenses, road freight and selling and administrative expenses to US consignee agent, concurrent finding by appellate authorities allowing substantial part of expenditure on verification of documents, was to be upheld
SEBI asks depositors/AMCs to put in place a system for generation of single account statement for in
SEBI : Consolidated Account Statement (CAS) for All Securities Assets
Consent fee paid to SEBI without admitting alleged violation by broker couldn’t be held as penalty;
IT: When SEBI accepted consent application (settlement application) without admitting or denying guilt by assessee-stock-broker, resultant consent fee paid to SEBI could not be equated with a "penalty" - The fee was paid for purpose of business, to settle a dispute with SEBI and to be able to conduct business without interruption - Thus, consent fee was allowable as business expenditure under section 37.
MCA extends due date of e-filing of new form for notice of appointment of cost auditor to January 31
COMPANIES ACT, 2013 : Section 148 of The Companies Act, 2013 - Central Government to Specify Audit of Items of Cost in Respect of Certain Companies – Clarification on Matters Relating to Companies (Cost Records and Audit) Rules, 2014
Govt May Raise Steel Import Duty To Curb Shipments From China
The government is considering raising import duties on steel after domestic steel firms complained about surging shipments from China, and a decision may be taken in the next two to three days, Steel and Mines Minister Narendra Singh Tomar said.
Steel imports from China, the world's biggest producer of the alloy, doubled in April-September from 2013, prompting JSW Steel and other domestic steelmakers to ask for higher import tariffs.
"We have received several letters from Indian steel companies seeking help to compete with imports from China," Tomar said on Wednesday. He did not say by how much the duties would be raised. Currently the duties are in the range of 5 per cent to 7.5 per cent.
Struggling with overcapacity at home, China has boosted exports of steel qualifying for a generous tax exemption to countries like India and Japan, triggering accusations that mills there are taking advantage of the rebate to sell surplus steel cheaply.
A tonne of reinforcement steel produced in the domestic industry for use in buildings can cost up to Rs 15,000 ($244) more than that from China, according to AS Firoz, chief economist at a research unit of the steel ministry.
Meanwhile, home-grown companies are struggling with a shortage of iron ore and coking coal that has pushed their costs up.
Source:- businesstoday.intoday.in
Loss arising in derivative transaction to hedge exchange rate and interest rate exposure wasn’t spec
IT : Loss arising from derivative transactions which were entered into by assessee in order to hedge against exchange rate and interest risk exposure could not be treated as speculative loss, but as business loss
Sale of inputs while providing services amounts to 'removal of input as such'; Cenvat credit to be r
Service Tax : If, while providing services there is sale of raw materials/inputs, same will amount to clearing of inputs as such on which CENVAT Credit is required to be reversed at time of clearance as per CENVAT Credit Rules, 2004
Illusionary entry passed by assessee to impress bankers and stakeholder didn't represent real income
IT: Where illusory entry passed by assessee company to impress bankers and to please shareholders and same did not represent any real income/receipt, same would not be taxable
Make In India” To Rely Heavily On Chinese Steel Imports
Steel consumption in India is forecast to grow at record rates in accordance with Indian Government's “Make in India” campaign. Indian steel buyers have caused consumption to grow at its fastest pace in 5 years, and this trend is expected to continue with Indian raw-alloys growing scarce.
The Indian government, while a strong exporter of iron ore, has an insatiable appetite for steel. India’s steel imports from China alone doubled in April-September. The “Make in India” campaign seeks to transform India into an exporting hub and the inflow of steel from China will be used to revitalize its wavering manufacturing capacity.
With crude stainless steel production at 3 million tonnes, India ranks as the third largest producer of stainless steel. Low per-capita steel consumption of 2.1 kg compared to the world average of 5 kgs show that there is potential for long-term growth, but sluggish progress in infrastructure and a growing demand for steel across numerous sectors have proven to be major obstacles.
India’s steel industry is currently only running at 80 percent of capacity. Nevertheless, the World Steel Association (WSA) expects Narendra Modi’s pro-business plans to spur weakening Indian steel demand.
In fact, WSA predicts India will meet a demand of 76.2 million tons of steel by the end of this year. Additionally, there are expectations that the “Make in India” campaign will implement structural reforms designed to increase business confidence, which would result in a further six percent growth by 2015.
However, since a large majority of Indian steel imports stem from Chinese companies, Indian steelmakers such as JSW, Tata Steel, Jindal Steel and Power Ltd are likely to be priced out by their Chinese competitors. While formulating ways to remain competitive, a steel ministry spokesman said he had no immediate comment on whether authorities would consider raising tariffs.
A.S. Firoz, chief economist at a Steel Ministry unit, told Reuters: “The global market is such that the only thing that you can do is take some protective action to save the (Indian) industry. Otherwise you can’t decide what the global prices will be or at what price China will export steel.”
India’s steel operating capacity remains comparatively low. Despite heavy investment into the stainless steel industry (30,000 crore to build capacity of around 3.5 million tonnes), it is likely that Modi’s “Make in India” program will continue to rely on Chinese steel exports.
Source:india-briefing.com
India Gold Imports To Rise Into 2015 – Scotia-Mocatta
Gold imports into India have returned to more normal levels and could climb higher in 2015 amid tepid bullion prices and improved domestic economic conditions, Sunil Kashyap, Bank of Scotia-Mocatta managing director, said at the London Bullion Market Association (LBMA) conference held in Lima.
Last year began normally, demand was stable and imports were coming in at around 50-60 tonnes per month. Then the Indian government introduced a slew of measures, starting with custom duty increases from 2 to 10 percent of the value of gold.
In July 2013, the Reserve Bank of India implemented the controversial so-called 20:80 scheme in an attempt to control the escalating current account deficit and stabilise the rupee. Under the rule, every importer had to ensure that 20 percent of all th gold brought into the country would be made exclusively available for export.
“These measures led to a sharp decline in official imports – they fell to 5 tonnes in September. Once the market got its head around the new policy, imports resumed but only to about 15 tonnes in December,” Kashyap said.
But in 2014 the pace of official imports started to pick up steam. The real turning point came in May when the government increased the number of star trading houses/premier trading houses (PTH) that would be allowed to import gold.
Over the last three months, imports increased to an average of 60-70 tonnes per month. And even when accounting for the 20:80 rule, net imports into India are running at about 40-50 tonnes per month.
“We’re now now seeing regular imports of gold,” Kashyap said. “This has led to much more availability in the market – premiums have fallen from $50-$100 to $5-$10.”
Meanwhile, domestic Indian gold demand next year will hinge on two factors. The first will be price, which has been falling over the past several months.
Gold futures on the Comex division of the New York Mercantile Exchange closed Tuesday at $1,163.00 an ounce, which is about $225 below the February high.
“Most people see the price going lower, so the expectation is that demand will improve,” Kashyap said.
The second driver for demand growth will be the macroeconomic conditions inside India, which have improved significantly since Prime Minister Narendra Modi took office in May.
“The currency has been more stable, trading in a range of about 2 percent this year compared to a range of 10-15 percent last year. Inflation in September was at a five year low of 3 percent, while the stock market reached record highs this week,”
Souce:- www.bulliondesk.com
India May Be Able To Stop Thermal Coal Imports In 3 Years
India, the world's third-largest buyer of overseas coal, may be able to stop imports of power-generating thermal coal in the next three years as state behemoth Coal India steps up production, Power and Coal Minister Piyush Goyal said on Wednesday.
Prime Minister Narendra Modi's government has asked Coal India, the world's largest miner of the fuel, to more than double its output to 1 billion tonnes by 2019 to feed existing and upcoming power plants.
Modi has promised round-the-clock power to all Indians by 2022 and recently announced the nationalised coal industry would be opened up to allow private firms to compete with Coal India, which accounts for 80 percent of the country's output.
Declining shipments to India would drag on global coal markets grappling with oversupply as top consumer and importer China tries to shift towards cleaner fuels.
"I'm very confident of achieving these targets and am very confident that India's current account deficit will not be burdened with the amount of money we lose for imports of coal," Goyal told a conference.
"Possibly in the next two or three years we should be able to stop imports of thermal coal."Coal generates three-fifths of India's power, but a shortage of the fuel means millions still go without electricity and power cuts are common.
Around 60 of India's 103 power plants had enough coal for less than a week's usage as of Nov. 2 due to lower supplies from Coal India.
Imports of coal have been surging as a result, equating to about 1 percent of India's economy.Shipments rose to 168.4 million tonnes last fiscal year, and the government estimated earlier this year that the domestic shortage would range between 185 and 265 million tonnes by 2016/17.
And some analysts were sceptical the country would be able to end imports soon."India's reliance on imports is not going away anytime soon," said Prakash Duvvuri, head of research at consultancy OreTeam."Obviously coal demand will continue to mean imports are needed in.
Source:- firstbiz.firstpost.com
Indian Rupee Opens Flat At 61.52 Per Dollar
The Indian rupee opened flat on Wednesday at 61.52 per dollar versus 61.55 on Tuesday.The yen hovers around seven-year lows against the dollar early on reports that Prime Minister Shinzo Abe will call a general election in December.
Tata Capital NS Venkatesh of IDBI Bank said, "Both rupee & bond markets will closely watch the macro economic data release lined up later today. Rupee markets will also take cues from equity markets.
The yen hovers around seven-year lows against the dollar early on reports that Prime Minister Shinzo Abe will call a general election in December. "Softening of inflation will be positive for currency and the rupee is expected to marginally strengthen against the dollar on the back of trade flows as well as capital flows. We expect a narrow USD-INR range of Rs 61.45-61.60/dollar".
Source:ibnlive.in.com
Authority can't insist for any specific form of security for release of goods; bank guarantee is suf
CST & VAT : Adjudicating Authority had no jurisdiction to choose form of security for release of goods detained under section 47(2) of Kerala VAT Act and where assessee had furnished bank guarantee for release of goods detained, Adjudicating Authority could not have required assessee for production of cash security
Estimated addition upheld due to discrepancies found in books of assessee and non-maintenance of sto
IT: Where there was fall in GP rate, stock register were not maintained and other discrepancies were not properly explained, addition on account of estimation of GP rate was justified
No reassessment to curtail sec. 80-IC relief on basis of past order of AO if such claim was verified
IT : Where Assessing Officer on basis of earlier years order sought to re-open assessment though he had duly verified claim for deduction under section 80-IC in original assessment, reassessment was not valid
SC admits appeal on issue of chargeability of ST on coaching in mathematics based on ancient Japanes
Service Tax : Supreme Court admits appeal against Tribunal order holding that imparting coaching in mathematics based on ancient Japanese methods of mathematical calculation with help 'Abacus' amounts to 'recreational training institute' and is exempt from service tax under Notification No. 24/2004-S.T., dated 10-9-2004
Income arising to EOU on sale of scrap generated during manufacture was eligible for sec. 10B relief
IT: When assessee imports spare parts and exports them in same condition without involving those parts is any manufacturing activity, in such a case provisions of section 10B are not attracted
Sec. 54F relief denied as assessee had acquired another residential house within 1 year of transfer
IT: While computing capital gains arising on transfer of a capital asset acquired by assessee under a gift or will, indexed cost of acquisition has to be computed with reference to year in which previous owner first held asset and not year in which assessee became owner of asset
Demand under omitted provisions couldn't be held as invalid when it was validated by new provisions
Excise & Customs : Where demands made under omitted provisions of section 3A of Central Excise Act, 1944 and Rule 96ZP of Central Excise Rules, 1944 have been validated by validation provisions, same cannot be held invalid
Place of presentation of cheque wouldn't by itself confer jurisdiction upon local Court to take cogn
Negotiable Instruments Act: Where cheque was drawn at a bank in Karnataka, presentation of cheque to a bank in Kerala would not by itself confer jurisdiction upon Kerala Court
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