Monday, 22 December 2014
Mere mentioning of country’s name and detail of exp. don’t indicate purpose of foreign travel exp.;
Sum received from sale of carbon credit is a capital receipt, says ITAT
ITAT directed TPO to choose comparables on basis of ruling of Motorola’s case as it contained simila
In FOR transaction assessee can claim credit on freight upto buyer's place
Penalty leviable on non-disclosure of income in respect of refundable deposit of empty bottles; SLP
No addition on protective basis against partner if same addition was already made on substantive bas
RBI announces new criteria for classifying borrower as non-cooperative
Interest income on NPA has to be recognized as per legal position and not on basis of presentation i
No recovery during pendency of appeal as on compliance with stay order balance dues automatically st
Delay in filing appeal due to delayed payment of taxes condoned as assessee was facing financial cri
ALP of international transaction couldn't be deemed as 'Nil' without adopting any prescribed method
Even visually impaired person can’t escape from penalty on violation of Takeover Code, says SAT
Job worker can't take credit of transportation services from his factory to depot of principle-manuf
SC: Mobile charger is an accessory of mobile phone and not its integral part; leviable to VAT at 12.
No denial of exemption granted by authority even if exemption under old notification was withdrawn r
Title cover of text Books forms part of the book; its supply would be exempt from VAT
S Korea Appeals To Wto Over Us Duties On Steel Pipe Imports
The South Korean government said on Monday it has lodged an appeal with the World Trade Organisation (WTO) against a US move to slap anti-dumping duties on imports of steel pipes from the Asian nation.
South Korea's trade ministry said in a statement that the high US tariffs on Korean steel pipes - over US$100 million (S$132 million) annually - put them at a price disadvantage compared with imports from India and other countries.
A ministry official said the appeal has sought a withdrawal of the duties.
The US International Trade Commission ruled in August that "oil country tubular goods" (OCTG) imports from South Korea, India, Taiwan, Turkey, Ukraine and Vietnam would be subject to duties.
Steel pipes are high-margin products used in the energy sector and have been a bright spot in the sluggish steel industry, benefiting from a boom in the US shale oil and gas industry.
"We believe that the US commerce department potentially violated WTO rules when it investigated the anti-dumping case, including calculating dumping margins," the South Korean trade ministry statement said.
"If our government wins the case, the US has the obligation to correct its action to levy anti-dumping duties."
US steel companies had lodged a complaint against cheap imports in 2013, saying OCTG imports sold cheaply using government subsidies had harmed their business, dragged prices down and triggered job cuts.
The US commerce department, which determines whether dumping exists, said in July that imports from South Korea's Hyundai Hysco would be subject to duties of 15.75 per cent, those from Nexteel to 9.89 per cent, and all other South Korean producers including Seah Steel Corp and Husteel will have a duty of 12.82 per cent.
South Korea's OCTG exports to the United States were worth US$818 million in 2013, more than the combined imports of the other countries involved in the case.
South Korea was hit with the second-highest duties after Vietnam, which attracted duties in the range of 24.22 per cent-111.47 per cent. India steel pipe imports faced tariffs of 2.05 per cent to 9.91 per cent.
Despite the appeal to the WTO, the United States and South Korea can still engage in negotiations to settle the dispute. If that does not work, South Korea can ask for the establishment of a WTO panel to review the matter.
Source:- news.asiaone.com
India’S Cashew Nut Exporters Eye Emerging China Market
India’s cashew nut exporters are facing a tough time due to multiple factors that include higher input costs, shrinking sources and trade barriers in exporting to China.
India is the world’s largest producer of cashew nuts and is known as a source of good quality cashew nuts. It was also the top exporter, but has now been replaced by Vietnam, which is keen to increase its cashew nut exports from the current $2 billion (around Rs.12,500 crore).
Despite various incentives provided to cashew nut exporters in India, exports have remained low in the last few years. According to official sources, India’s cashew nut exports stood at around Rs.5,062 crore in FY2012-13, but it declined by around 20% to about Rs. 4,046 crore in FY2013-14.
While, production has grown slightly in India, demand has risen significantly due to higher income in India. Exporters say it is preferable to sell in the domestic market because the realisation is quick and assured.
As such there is a shortage of cashewnut for mills, and India’s imports, mostly from African countries, have remained steady in the recent years at around Rs.4,500 to Rs.5,500 crore per year. However, countries in Africa are planning value-addition and are eyeing direct exports of cashew nuts.
Meanwhile, input costs are increasing mainly due to increasing wages in Kerala, a prominent cashew nut exporting state in India. Earlier this month, the Kerala government decided to hike labour wages by around 35% for cashew nut labourers, a move that is expected to hurt exports in the coming months.
S. Sankaranarayanan of Swathy Enterprises, a prominent cashew nut exporter from Kerala, told The Dollar Business that cashew kernels exports was dominated by India, but cashew exports from Vietnam and Brazil has grown steadily with the help of increasing mechanisation. “Exporters in Vietnam offer cashew nuts at a competitive price compared to India due to lower wages, lower power charges and better trade policies.”
He added that the while it is good to see that the government is providing support for modernisation and mechanisation of cashewnut processing, it must ensure the welfare of labourers because the sector is a labour intensive one with over 95% comprising women.
Under such circumstances, increasing the acreage under cashew is needed to keep India at the top. However, tapping growing markets is also required. Industry sources say that China is perhaps the most promising market now and imported close to Rs. 2,000 crore from Vietnam.
However, Indians are unable to tap into the market due to trade barriers placed by China. According to Indian exporters, Indian cashew is of good quality and Chinese importers are interested to buy cashew from India as well, but import duty of around 5% diverts them to Vietnam.
Some Indian cashew exporting companies are increasing their presence in Vietnam in order to continue operations and to remain in the export market.
Source:- thedollarbusiness.com
Russian Crisis Hits India's Guar Gum Exporters Hard
The ongoing crisis in Russia has hit India’s guar gum exporters hard. Orders from Russia have declined at least by 30% in the October–December quarter which, traders believe, would be difficult to overcome in near future.
“While depreciating rouble has hit order flow, falling crude oil prices have also hit demand of guar gum. We estimate at least 30% decline in exports in the second quarter of the current financial year as the fall, which started in October would continue through year end and beyond,” said Bheru Jain, partner with Rajasthan Gum Pvt Ltd. one of India’s largest guar gum exporters to Russia. Most of the guar demand is driven by the petroleum industry.
Guar gum tops the list in agri-commodities' exports to Russia with an annual shipment of around $55 million, a third of overall exports to the country facing economic sanctions from the western world.
Exporters of other agri commodities also face similar problems. “We estimate a steep decline in overall grapes exports to Russia. But we will recover the loss through increased exports to other countries being our overall quantity of agri exports very small,” said Ashok Sharma, Chief Executive, Mahindra and Mahindra (Agri Division).
Russia imported fresh grapes worth $38.28 million in 2013-14, constituting the second largest in the list of agri commodities shipment from India.
Source:- business-standard.com
AO had to provide materials relied upon by him to assessee and consider explanation of assessee ther
Commission agent services provided to foreign airlines amounted to export
HC denied stay on tax demand as assessee didn't disclose bank accounts having huge balances
Auto Ancillary Industry To Witness Revival With Growth In Auto Sector
The automotive components industry occupies a significant place in the Indian economy. The Indian auto industry has been recording tremendous growth over the years and has emerged as one of the major contributor to India’s gross domestic product (GDP). The industry currently accounts for almost 7 per cent of the country’s GDP and employs about 19 million people both directly and indirectly. India is emerging as a global hub for auto component sourcing and is set to break into the league of the top five vehicle producing nations worldwide. The country is also emerging as a sourcing hub for engine components. Major global original equipment manufacturers (OEMs) plan to make India a component sourcing hub for their global operations.
Currently, India is ranked 22 among global component exporting countries. China is at the third spot on the list led by Germany and the US. The Indian auto-components industry can be broadly classified into the organised and un-organised sectors. The organised sector caters to the original equipment manufacturers (OEMs) and consists of high-value precision instruments while the un-organised sector comprises low-valued products and caters mostly to the aftermarket category.Majority of Indian auto component exports are to countries in Europe, which account for 35 per cent followed by countries in North America with 26 per cent.
Year 2013-14 has been one of the most challenging one for the auto-component industry in India - flagging vehicle sales, high capital costs, high interest rates, fluctuating exchange. After a period of rapid growth post the global economic crisis in 2008, there has been a slowdown since 2011-12, with turnover actually reducing in 2013-14 rates and slowing down of investment in manufacturing have adversely impacted the growth of the auto component industry. However, the auto component industry had used the slowdown as an opportunity to develop internal capabilities to meet the evolving needs of customers who look for value and features across vehicle segments. It has been constantly restructuring itself by adopting lean practices, mitigating risks and exploring adjacent markets such as aerospace, defence and railways to leverage better prospects. The new government has recognised the potential and the need for revival and has put in place certain measures for the industry such as allowing 49 per cent FDI in defence sector which will soon open doors for the component makers. Extension of the excise duties till the end of the year has been well received by the auto industry at large. Moreover, with the Government’s focus on infrastructure and skill development, scaling-up of the MSME sector and overall measures to sustain growth, will go a long way in attracting investments and help to facilitate the growth tangent for the industry.
The Auto Component industry in India has a strong positive multiplier effect as a key driver of economic growth. Despite a very turbulent year, the industry clocked a turnover of Rs 2,11,765 crores ($35.13 billion) in FY 2013-14, with an impressive CAGR of 14 per cent over the last six years. The industry is expected to grow up to $115 billion by 2020, with increase in vehicle production. Of this, the domestic turnover is expected to touch $85 billion and exports $30 billion. The component industry is expected to become a significant contributor -3.6 per cent, to India’s GDP, up from the current level of 2.2 per cent. To achieve this potential, the industry requires additional skilled manpower of over 1 million and cumulative investment of over $35 billion.
The US market has stabilized; Europe too has seen some improvement, while India has been able to penetrate new markets in South America and Africa. Last financial year, India’s exports grew about 6 per cent to $10.2 billion. At present, exports account for 29 per cent of total component production. By 2020, revenue from exports is expected to grow threefold to about $30 billion. Europe and the US will continue to be the sector’s largest markets, but growth will be faster in emerging geographies-- the Association of Southeast Asian Nations, Latin America and North Africa. In financial year 2015, exports are expected to increase 9-10 per cent. One of the automobile sector’s concerns is the rising component imports. Through the past two years, the gap between component exports and imports has narrowed. While exports increased to $10.2 billion in FY14 from $9.7 billion in FY13, imports declined 6.3 per cent from $13.7 billion to $12.8 billion. With the Indian automobile market expanding, all manufacturers have focused on increasing localisation.
Source:money.livemint.com
Income from sale of shares was business receipt due to frequent and high volume of transactions; SLP
HC could grant relief to petitioner not only for apprehended proceedings but also where complaint wa
ITAT sets-aside order of DRP as it passed order after rejecting objections of assessee without prope
For Business Growth, You’Ve Got To Be On Your Toes
AHMED Kamal, chief executive of the Kamal Group, is well aware of the crucial importance for a business to ‘constantly innovate and evolve’ to avoid the risk of getting caught out.
“Business is a continuous struggle; you’ve got to be always on your toes and need to continuously diversify if you want to grow and sustain competition,” he noted during an interview with Dawn.
Hampered by years of erratic electricity and gas supplies in Punjab, as well as by high energy prices, shifting policies and poor security conditions, the need for textile producers to adjust their growth strategies was never as urgent as it is now.
Ahmed had realised this well in time and diversified into local retail home textiles and the women’s apparel market through a lifestyle store chain — So Kamal — which was launched two years back.
“At a time when we are becoming less competitive than our rivals, only the local market can generate future growth for the textile industry,” he asserted. “Our industry’s heavy dependence on exports is one of the major reasons it is in trouble as exports are stagnating. Chinese and Indian textile producers are thriving because they aren’t so heavily dependent on exports.”
However, diversifying into the local market isn’t the only focus of his new business strategy. He is creating a warehousing infrastructure in the US and the UK to facilitate his customers there and to increase his exports.
“Foreign buyers are afraid of returning to Pakistan because of terrorism. Therefore, we needed to pursue a strategy that would help them cut their import costs by eliminating the middleman and reducing the shipment delivery time. Many Chinese and Indian textile firms are successfully pursuing this ‘direct-to-stores’ strategy for increasing their overseas sales,” asserted the former chairman of the Pakistan Textile Exporters Association.
Ahmed has also launched an IT-based textile designing company. “We are now exporting textile designs to foreign stores and brands as well. It’s a very big market. A textile design can easily fetch $500-600. We already have found some customers and expect to expand our client base in the coming months. As a credible exporter, our company stands a good chance of attracting buyers for our designs,” he said.
Ahmed’s family had entered the textile business in the mid 1950s when it established one of the first five textile factories, Central Textile Mill, in Faisalabad. Today, the group has evolved into one of the country’s leading producers of filament yarn, home textiles, knitted socks and garments, and has its own processing and printing facilities. It is also operating eight retail stores.
The annual turnover of the group’s six companies stands at $200m, with 80pc of revenues still contributed by overseas sales.
Ahmed has a lot of confidence in the country’s textile industry. “It has immense growth potential and can easily generate additional revenues of $10bn if we are able to convert the $4bn worth of yarn and fabric being currently exported into garments, knitwear, home textiles and other value-added products.”
Nevertheless, he points out that the industry is facing numerous problems which are dragging down growth. “We are spending the better part of our day dealing with day-to-day problems rather than focusing on investment and growth.
“Each morning when I step into my office, I find only problems lying on my desk. I’m never sure if my factories will get power and gas to operate the machines next morning or not. How can we expand our businesses and make new investments in these conditions?” he asked.
He said the policymakers’ obsession with opening up the local market to imported goods had in the past destroyed Swat’s silk industry and Faisalabad’s polyester fabric production. Now, half of Kharianwala’s processing factories have closed because of gas shortages.
“Pakistan has become the second-biggest importer of used and smuggled clothes. Our policymakers just don’t realise that by letting countries like China and India flood our market with their goods, they’re helping shift hundreds of thousands of jobs to those countries.”
Similarly, policymakers’ insistence on ‘importing foreign investors’ instead of encouraging local businessmen is forcing local investors to leave the country and take their investments elsewhere.
“They’ll concede every incentive to foreign investors, but will not help their own industrialists revive closed factories and motivate their own entrepreneurs to invest. India and China not only protect their domestic markets and industry from the influx of foreign goods, but also respect their investors and businessmen and watch over their interests.
“No country that refuses to give its entrepreneurs and investors respect has ever progressed. When Modi became India’s prime minister, he invited his businessmen and told them that he wanted to see them grow 10 times bigger in five years,” he said.
But Ahmed is still quite optimistic about the future. “Give us some room to work, an opportunity to grow, and solve our legitimate problems regarding energy shortages, regressive taxation, stuck up export refunds of around $1bn, and give us the same respect and incentives that are offered to foreign investors. We will do wonders for this country,” he concluded.
Source:dawn.com
Indian Rupee Up 7 Paise Against Us Dollar In Morning Trade
Indian rupee gains 7 paise to 63.23 against the US dollar in morning trade on fresh selling of the American currency by banks and exporters.
The rupee opened steady at 63.30 per dollar at the Interbank Foreign Exchange; but, firmed up to 63.22 before quoting at 63.23 per dollar at 1000 hours. It moved in a range of 63.22 and 63.32 per dollar during the morning trade.
Renewed selling of dollars by banks and exporters on hopes of resumption of inflows from foreign funds in view of firm equity market mainly boosted the rupee value against the dollar, a forex dealer said.
The benchmark BSE Sensex firmed up by another 46.98 points, or 0.17 per cent, to 27,418.82 at 1000 hours.
However, in New York market, the ICE US dollar index finished the last week at its highest level since March 2006 as investors pushed the dollar higher against the euro, yen and pound after Federal Reserve Chairperson Janet Yellen hinted that the central bank would begin raising rates around the middle of 2015.
Source:financialexpress.com