Excise & Customs : Differential price received after removal signifies that value (which is a function of price) on date of removal of goods, was not correct; hence, short-payment of duty arising due to differential price is liable to interest even if said short-payment was wholly unintentional or beyond control of assessee
Tuesday 16 December 2014
Presence of other builders offering residential flats in relevant market rules out dominance of oppo
Competition Act : Presence of other builders offering residential flats in relevant market rules out dominance of opposite party
No penalty if TDS default committed by partner on payments to firm due to bona-fide belief of non-de
IT : No penalty if TDS default committed by partner on payments to firm due to bona-fide belief of non-deduction of tax
Electrolytic cell is a part of plant; devices used to replace its worn out parts are capital goods
Cenvat Credit : MS Flats, Plates and Angles used for replacing worn out parts of electrolytic cell are eligible for credit as 'capital goods' applying user test, as electrolytic cell is a part of plant
Additions upheld for cash credits as identity and creditworthiness of share applicants were doubtful
IT : Where in respect of share application money, assessee failed to provide complete address and PAN of certain share applicants whereas in case of some of share applicants, there were transactions of deposits and immediate withdrawals of money from bank, impugned addition made under section 68 was to be confirmed
ALP of royalty paid for know-how had to be determined separately, couldn't be mixed with other trans
IT/ILT : Where royalty was exclusively towards use of know-how in manufacturing process undertaken by assessee and was not in any way interlinked with other international transactions, arm's length price of such royalty could be determined independently
HC allowed set-off of tax as conditions restraining set-off were prescribed under different provisio
CST & VAT: Bombay ST - Where assessee was engaged in manufacturing, selling and exporting pens and it claimed set-off in respect of export sales of pens and Tribunal held that in view of condition No. 3 contained in Annexure-I of Notification Entry A-23 issued under section 41 assessee was not entitled to set-off, since assessee had not claimed exemption from sales tax under section 41, above condition would not apply
Electrolytic cell is a part of plant; devices used to replace its worm out parts are capital goods
Cenvat Credit : MS Flats, Plates and Angles used for replacing worn out parts of electrolytic cell are eligible for credit as 'capital goods' applying user test, as electrolytic cell is a part of plant
Sec. 80-IB(10); Cap on built-up area of commercial space doesn't apply to housing projects approved
IT : Amendment to section 80-IB(10) putting restriction on commercial area was prospective in nature and would not apply to housing projects approved prior to 31-3-2005
Payment made to put-up hoarding is an advertisement contract; attracts TDS under sec. 194C
IT: Contract for putting up a hoarding is in nature of advertising contract and provisions of section 194C would be applicable
Apex Court directs Tribunal to consider period of lease before treating assessee as deemed owner und
IT : Where High Court and Tribunal without considering period of lease held assessee as deemed owner of a premises under section 27, matter was to be remanded for reconsideration
HC deletes penalty as info and docs sought by TPO under Sec. 92D were duly furnished by assessee
IT/ILT: No section 271G penalty, if, specific details and documents sought by TPO were furnished
Bom. HC : Service tax on services of advocate/arbitral tribunal is constitutional
Service Tax : Levy of service tax on services provided by advocates and arbitral tribunal is constitutionally valid and not violative of Article 19(1)(g); further, exemption to services provided to individuals and small businessmen having turnover upto Rs. 10 lakhs is based on intelligible differentia and not violative of Article 14
Sum paid for obtaining permanent right to use design engineering services won’t fall within the purv
IT/ILT : Where assessee was granted a permanent right to use and exploit design engineering, payment for obtaining plant know-how, i.e., designing, characterization of plant and machinery, etc., cannot be considered as payment falling within purview of 'Royalty'
HC reduces predeposit as assessee hadn't collected ST from customers and was hard pressed for funds
Service Tax : Where assessee had not collected any service tax from customers and was hard pressed for funds, pre-deposit was reduced to enable assessee to be heard on merits
HC quashed CLB's order dismissing oppression plea as it failed to notice that it was a composite pet
CL : Where CLB dismissed oppression and mismanagement petition for reason that appellant did not file required application under section 111 by overlooking factum that it was a composite petition under section 111, section 397 and 398, CLB's order was to be dismissed
CBDT notifies limit of 50% Govt. grant for deeming university/hospitals as substantially funded by G
IT : Income-tax (Thirteenth Amendment) Rules, 2014 – Insertion of Rule 2BBB
“Stake money” or “prize money” paid by race clubs to horse owners won’t attract TDS under sec. 194B
IT : The term 'any other similar game' found in Explanation (ii) to Section 2(24)(ix) is inclusive definition and has to be read ejusdem generis and as such, activity of owning and maintaining horses cannot by any stretch of imagination fall in the definition of 'card game or other game of any sort' found in section 194B.Therefore, the "stake money" or "prize money" paid by race clubs to horse owners would not attract the provisions of Section 194B of the IT Act.
RBI allows flexible structuring of existing project loans given to infrastructure and core industrie
BANKING : Flexible Structuring of Existing Long Term Project Loans to Infrastructure and Core Industries
ITAT directs adjudication of TP issue afresh allowing assessee to prove that service had been render
IT/ILT: Where assessee failed to produce any evidence to substantiate its claim of receiving services from its AE, however he submitted that he was in possession of relevant evidence to prove that relevant services had been rendered by AE, matter required readjudication
SC admits appeal to decide taxability of 'waxed doubled cotton yarn' that arose in manufacturing of
Excise & Customs : Supreme Court admitted appeal against order of Tribunal holding that where, during process of making of sewing thread from cotton yarn, 'waxed doubled cotton yarn' emerges, assessee was liable to duty only on original cotton yarn and not 'waxed doubled cotton yarn'
Commissioner(A) couldn't condone delay in filing appeal beyond specified period of condonation
Service Tax : Where appeal was filed beyond period prescribed under section 85 of Finance Act, 1994 and also beyond permissible period of condonation by Commissioner (Appeals), there was no power to condone such delay
Congestion Fee To Make Imported Coal Costlier
Power companies will be forced to pay more for imported coal as Indian Railways has decided to levy congestion charge of 10% on base freight rates for traffic originating from ports.
The decision comes at a time when there has been a spurt in demand for imported coal, mainly due to dwindling stocks at a large number of power plants. Subhasri Chaudhuri, secretary general of Coal Consumers' Association of India, which has urged the government to revoke the surcharge, blamed the railways solely for the congestion.
"Domestic coal consumers are grappling with non-availability of rakes. The congestion at the ports is the result of non-supply of sufficient wagons by the Indian Railways," she said.
The companies which meet a portion of their coal requirement through imports include India's largest power producer NTPC, Damodar Valley Corporation, Madhya Pradesh Power Genco, state utilities in Uttar Pradesh and private companies such as Adani Power and CESC. Coal India has also started importing coal on behalf of its customers.
This fiscal, the state-run monopoly miner is likely to import 5 lakh tonnes of coal, of which 1.7 lakh tonnes has already reached the Mundra Port.
NTPC is currently finalising import contracts for 5 million tonnes of coal for its power plants while MP Power Generating Co is firming up shipment of 7 lakh tonnes. "At ports there are more a few hundred indents pending and railways supplies only a few rakes every day," said Chaudhuri.
"As a result, indents are piling up and coal consumers are paying huge penalty by way of moving cargo by road, paying higher freight, paying increased rent to port authorities, slow or non-evacuation of cargos, resulting in waiting of vessels and incurring very high demurrages and reduction in generation due to non-receipt of coal on time from ports," she added.
Indian Railways is already collecting a number of surcharges including busy season charge and development charge, without changing the base freight rates, leading to a substantial rise in total freight, importers said.
Source:economictimes.indiatimes.com
Registration with Software Technology Parks of India is a pre-condition to claim sec. 10B relief
IT : Registration with Software Technology parks of India (STPI) is a pre-requisite for grant of deduction under section 10B
ITAT directs fresh adjudication as assessee failed to file evidence showing services were received f
IT/ILT: Where assessee failed to produce any evidence to substantiate its claim of having received services from its AE for which management fee was being paid, matter required readjudication
Pakistan Imports Rs 2.88 Billion Goods From India In 15 Days
Pakistan has imported items worth Rs 2.88 billion during 28 November-12 December of current fiscal year from India via Wahga border, while total taxes worth Rs 354 million were collected during the period.
As per details, Pakistan imported tomatoes, garlic, polyethylene, cotton and machinery from India.
Pakistan imported 11,312,313 kg of tomatoes worth Rs 526 million, while Rs 31 million generated by getting income tax on the import. On the other hand, 184,834 kg of garlic worth Rs 19 million was imported and income tax remained Rs 1.1 million.
Documents show that Pakistan imported 371,099 kg of fruits (H.S Code 709-6000) from India worth Rs 21 million, while the Rs 1 million as duty tax and income tax Rs 1.3 million was collected. Ginger worth Rs 155 million was imported; however duty tax Rs 23 million and Income Tax Rs 10 million was collected.
Pakistan imported peas worth Rs 390 million and Rs 43 million duty and income tax was collected.
Pakistan imported polyethylene worth Rs 30 million, while the customs duty collected was Rs 1.3 million, Rs 4.8 million sales tax and Rs 0.5 million income tax. Similarly, polypropylene worth Rs 39 million was imported, while total tax Rs 11 million was collected on the import.
Besides that, Pakistan also imported cotton yarn worth Rs 27.6 million, cotton not comber worth Rs 64 million, oil-cake and other solid residues worth Rs 1.5 billion and machinery worth Rs 55 million from India during 28 November-12 December of the current fiscal year.
As a whole, Pakistan imported Rs 2.88 billion worth goods from India. While total paid duty remained Rs 130 million, sales tax Rs 100 million, additional sales tax Rs 4.2 million and income tax Rs 120 million.
Source:customstoday.com.pk
India’S Nov Crude Oil Imports Jump 17.3% On Year To 4.2 Mil B/D
India imported 17.25 million mt, or an average 4.21 million b/d, of crude oil in November, up 17.3% year on year, latest data obtained by shipping sources showed. The November crude imports were up 14.9% from October.
India imported 1.46 million mt, or an average 356,726 b/d, of crude oil from Iran in the month under review, up 23.7% year on year. Saudi Arabia was India’s top crude oil supplier in November at 4.57 million mt.
The volume was up 55% year on year and also up 79.2% from October. Imports from Venezuela, the UAE and Iraq surged in November, but from Nigeria, Kuwait and Angola dropped.
Imports from Iran jumped 24.6% year on year to 11.96 million mt, or an average 262,475 b/d, in the first 11 months of the year, the data showed.
India’s total crude imports in the first 11 months of the year edged down 0.4% year on year to 170.77 million mt, the shipping data showed.
The Petroleum Planning and Analysis Cell, a division of India’s Ministry of Petroleum and Natural Gas, will release official crude import data for November in the third week of December.
Source:hellenicshippingnews.com
'Phenomenal' Rise In India's Gold Imports A Concern - Trade Secy
A "phenomenal" rise in India's gold imports is a concern and the government will watch the impact from a recent easing in gold import rules, Trade Secretary Rajeev Kher said on Tuesday.
Gold imports jumped 34 percent in November to $5.61 billion, sending India's trade deficit to a 18 month high, data showed late on Monday.
Despite the surge in gold imports, India late last month scrapped a rule mandating traders to export 20 percent of all gold imported into the country.
Kher, at an event in Mumbai, also said the rupee at 60-62 per dollar was good for exporters, although he added he would be a "little more concerned" if the rupee falls further.
The rupee earlier dropped to a 13 month low of 63.54 to the dollar on worries about the turmoil in global markets.
Source:in.reuters.com
Rupee Weakens To Trade Near 63.50 Per Dollar As Trade Deficit Widens
The Indian rupee on Tuesday weakened past the 63-per-dollar mark after India’s trade deficit widened due to higher gold imports.
Trade deficit widened to an 18-month high at $16.86 billion in November as merchandise imports rose at a much faster pace than merchandise exports, driven mainly by skyrocketing gold imports.
During the month, exports rose 7.27% to $25.96 billion, while imports increased by 26.8% to $42.82 billion. Gold imports during November jumped more than sixfold to $5.6 billion.
The rupee opened the session on Tuesday at 63.25 per dollar compared with its previous close of 62.95 and touched a low of 63.46—a level last seen on 13 November 2013. At 9.15am, the local currency was trading at 63.45 per dollar, down 0.79%. India’s benchmark equity index, BSE Sensex, was trading at 27,153.40 points, down 0.61%.
Most of the Asian currencies were trading mixed against the dollar. The South Korean won strengthened 0.61%, Japanese yen was up 0.27%, Singapore dollar 0.18%, whereas the Indonesian rupiah weakened 0.1%, Philippines Peso was down 0.34% and Thai Baht 0.11%.
The yield on India’s 10-year benchmark bond stood at 7.875% compared with its Monday’s close of 7.834%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has weakened 2.35% against the dollar, while foreign institutional investors have bought $17.09 billion during the period from local equity markets. The fall in the Indian currency is not isolated. Emerging market currencies have fallen sharply over the last few days.
Overnight, the Russian ruble and Turkish lira plunged to record lows. In response, Russia raised its key interest rate to 17% from 10.5% to protect its currency. The Brazilian real, the South African rand and the Indonesian rupiah have also fallen to multi-year lows.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 88.344, down 0.13% from its previous close of 88.46.
The US Federal Reserve will start its two-day monetary policy review on Tuesday, which will decide whether to make a critical change to their policy statement that would widen the door for interest rate hikes next year, Reuters reported.
While RBI is said not to have intervened in the markets on Monday, the central bank has built up its reserves over time, should it need to defend the currency. India’s forex reserves stood at $314.66 billion as of 5 December.
Source:livemint.com
Trees grown without any human effort don't have cost of acquisition/improvement; No capital gain on
IT : Where trees grew on their own without any human effort there would be no cost of acquisition or improvement thereof; and, consequently, there could not be levy of capital gain tax
Assessee providing recruitment services to NR clients by using info technology was entitled to sec.
IT : Where assessee-company provide recruitment services to its foreign client using information technology, it would be entitled to benefit under section 10A
Change in mode/manner of driving income from commercial assets won't change its actual nature as bus
IT : Carry forward and set off of business loss is allowable against lease rental income derived from commercial assets
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