Non-authorised service station wasn't liable to pay ST on repairs or maintenance of any part of moto

Service Tax : Non-authorised Service/maintenance centre or workshop doing maintenance or repairs of any 'part' of motor vehicle are excluded from scope of 'Management, Maintenance or Repair Services' and are not liable to service tax

BCCI to pay ST under reverse charge on payments made to foreign Cos for audio-visual coverage of IPL

Service Tax : Services received by BCCI from foreign media companies for coverage of Indian Premier League Matches by way of production of audio-visual coverage of the cricket matches are covered under 'Programme production services' and liable to service tax on reverse charge basis

Duty paid on non-excisable goods using Cenvat credit can't be allowed as refund to buyer, says Madra

Excise & Customs : Duty paid by manufacturer on non-excisable goods using Cenvat Credit cannot be allowed as refund to buyer because that would, in effect, amount to refund of credit, which is not permissible

HC set aside pre-deposit order as it was passed by Tribunal without considering plea of financial ha

Excise & Customs : Where Tribunal ordered pre-deposit without considering prima facie merits, contentions raised by assessee and plea of financial hardship, High Court remanded matter back to Tribunal

Maintenance of 'parts' of motor vehicle by non-authorised service stations, not liable to ST under M

Service Tax : Non-authorised Service/maintenance centre or workshop doing maintenance or repairs of any 'part' of motor vehicle are excluded from scope of 'Management, Maintenance or Repair Services' and are not liable to service tax

BCCI to pay service tax on payments made to companies for coverage/production of recordings of match

Service Tax : Services received by BCCI from foreign media companies for coverage of Indian Premier League Matches by way of production of audio-visual coverage of the cricket matches are covered under 'Programme production services' and liable to service tax on reverse charge basis

Writing off unrealized export proceeds without obtaining RBI's approval doesn't lead to denial of I-

IT : Where assessee had deducted and paid TDS on and before due date of filing its return of income, disallowance under section 40(a)(ia) could not be made

AO gets authority to make sec. 153A assessment once search is initiated even if no incriminating mat

IT : Assessing Officer gets jurisdiction for passing orders under section 153A once search is initiated, even if any incriminatory material is found or not during course of search action

Assessee who had consciously disregarded its obligation to pay tax wasn't entitled to concessional r

CST & VAT : Karnataka VAT - Where Assessing Authority levied penalty upon assessee under section 12B(4) for non payment of tax, since assessee consciously disregarded its obligation to pay tax, it was disentitled to a concession in levy of penalty by exercise of discretion

HC nods to opinion of ICAI of removing CA's name from register of members for 5 years due to miscond

Chartered Accountants Act: Recommendation of ICAI to punish respondent-chartered accountant found guilty of misconduct was accepted with an instruction to ensure that such complaints were dealt within a time bound manner

Designing and developing software for billing system is outside the ambit of Business Auxiliary Serv

Service Tax : Designing and development of software for billing system does not amount to billing services and is not covered by Business Auxiliary Services; it is liable to service tax under 'Information Technology Software services' only from 16-5-2008

SC: Retro levy of sales tax on works contract of processing and supplying of photos is constitutiona

CST & VAT : Processing and supplying of Photographs, Photo Prints and Photo negatives is works contract in which State legislature is empowered to segregate the goods part and impose sale tax thereupon by virtue of Article 366(29A); Levy was first introduced in post 46th Constitutional Amendment period hence retrospective effect is also valid

Govt. revises excise duty on branded diesel; specifies new method to levy excise duty

EXCISE & CUSTOMS LAWS : Section 5A of the Central Excise Act, 1944 - Power to Grant Exemption from Duty of Excise - Exemption to Specified Excisable Goods - Amendment in Notification No.12/2012 - C.e., Dated 17-3-2012

Rent-a-cab services provided at hotels by travel desks of transport Cos couldn't be taxed in the han

Service Tax : Rent-a-cab services provided by travel desks of various transport companies at various hotels, cannot be taxed in hands of hotels; such services are liable to tax only in hands of service providers

Valuation made by customs authorities should be a guiding factor for TPO for making TP adjustment

IT/ILT : Trading functions having same FAR and having closely linked transactions are to be taken as a whole and not separately

No revision by CIT if AO had accepted genuineness of agricultural income after making detailed inqui

IT : Where Assessing Officer accepted genuineness of agricultural income shown by assessee after making necessary inquiry, no revision order could be passed under section 263

Net profit rate to be fixed on basis of past tax history of assessee, value of contract and price of

IT : Discretion to determine net profit rate vested in authorities must be exercised on basis of relevant factors which are past tax history of assessee, an appraisal of value of contract, price of raw material, labour etc.

CIT(A) rightly deleted addition of undisclosed income after allowing AO to cross-examine author of s

IT: Where Commissioner (Appeals) not only examined author of seized document but also allowed Assessing Officer to cross-examine said author, there was no perversity or error of law apparent on face of record in order passed by Commissioner (Appeals) deleting addition of undisclosed income

Manpower supply services for cleaning factory, procuring material and educating suppliers are input

Cenvat Credit : Manpower supply services for : (a) cleaning of sugar mill, (b) supply of sugarcane to factory, its weighment and unloading at factory; and (c) cane area survey, sugarcane development by educating farmers by various means to get good quality sugarcane, are eligible for input service credit

Order passed by AO after one month from end of month in which direction of DRP was received would be

IT/ILT : Assessment order passed after expiry of one month from end of month in which direction of DRP was received, was to be regarded as invalid being barred by limitation in terms of section 144C(13)

Sec. 153C block assessment quashed as AO failed to record satisfaction that seized docs belonged to

IT: 'Sine qua non' for initiating action under section 153C is recording of objective satisfaction by Assessing Officer that articles or documents which are seized or requisitioned belong to a person other than person searched

'Resale Price Method' was to be adopted if goods purchased from AE were sold to non-AE without any p

IT/ILT: In case of distribution or marketing activities when goods are purchased from associated entities and sales are effected to unrelated parties without any further processing, then, RPM (resale price method) is most appropriate method to determine ALP of said transaction

No penalty when assessee had wrongly paid taxes at concessional rate due to bona-fide belief

CST & VAT : CST - Where assessee entered into a contract for construction of bridge and in certificate of registration stores material, consumables, etc. were mentioned and during year it purchased hut material against form 'C', imposition of penalty under section 10(b) read with section 10A on plea that assessee had unauthorisedly purchased hut material against form 'C' was not justified

No complaint of cheque dishonour against a director if he wasn't in charge of business of Co. at rel

Negotiable Instruments Act : A director, who was not in charge of and was not responsible for conduct of business of company at relevant time, will not be liable for an offence under section 141

Tribunal has no jurisdiction to entertain appeal against drawback related matters decided by Commiss

Excise & Customs : No appeal lies to Tribunal in respect of any order of Commissioner (Appeals) for payment of drawback, even if order of Commissioner (Appeals) was passed without proper jurisdiction; same must be challenged before proper forum

India Ahead Of China In Readymade Garments Exports

Amid concerns over several larger overseas buyers seeking reduction in prices in the wake of a drop in cotton prices, here's some silver lining for garment exporters.

Export of readymade garments from India has grown faster than those shipped from China for a bulk of 2014, although the rise is on a much smaller base. According to UN Comtrade data, during January-October 2014, India's garment exports rose 14.6% to $14 billion. In contrast, exports from China were 6.5% higher at $145 billion, which in value terms is 10 times higher.

The news will come as some sort of a relief to Indian exporters, many of whom have been asked to reduce costs by 6-8% by their overseas buyers, who want a share of the higher margins due to a steep fall in cotton prices, which account for a major chunk of the overall costs.

The strong growth in recent months has, however, made the exporters confident that the garment sector will grow by around 20%. "If we go by this projection, our garment exports will be reaching an ambitious target of achieving exports of $ 37.3 billion by 2018-19. In this financial year (April- December 2014), India's garment exports kept growing at the rate of 15%. This impressive growth is a clear cut indication that India is emerging as one of the top sourcing and compliant destinations for the buyers in the world," AEPC chairman Virendra Uppal said.

Source:- timesofindia.indiatimes.com

India's Raw Sugar Exports May Halve On Export Incentive Delay

India's raw sugar exports could halve this year as mills wait for the government to give the go-ahead for an increased production subsidy, traders said, potentially supporting depressed global prices.

India exported more than 1 million tonnes of raw sugar in 2014 and mills had hoped to export up to 2 million tonnes this year, taking advantage of a sales window before leading exporter Brazil comes to the market.

A delay in the expected incentives could help Brazil and Asia's biggest exporter Thailand grab a greater share of the world market, and support the benchmark New York sugar price that is struggling after losing 12 percent in 2014.

Subsidies assisted Indian raw sugar exports last year and mills have been waiting for news of this year's subsidy since the start of crushing season in October.

Government sources earlier this month said India was considering giving 4,000 rupees a tonne in subsidies for raw sugar exports, up from 3,300 rupees last year.

Prime Minister Narendra Modi's cabinet has so far failed to vet the plan, but could approve the subsidy as early as next week, trade and government sources said.

Most Indian sugar mills believe that the delay means mills will not be able to meet plans to ship out large quantities of raw sugar.

"India has nearly lost an opportunity due to the delay in approving the subsidy," said Kamal Jain, managing director of Kamal Jain Trading Services, a brokerage based in the western city of Pune.

"The window for exports has narrowed. From April shipments will start from Brazil. It is not possible to compete with Brazil. Even competing with Thailand is difficult."

Brazilian sugar starts arriving from April, while Thai sugar has already started trickling in.

India could still export 500,000-600,000 tonnes of raw sugar this season if the subsidy is approved next week, said a Mumbai-based official with a global brokerage.

India has amassed large sugar stockpiles following five years of surplus output, but weak global prices make it uneconomic for mills, which produce only white sugar for domestic use, to export without subsidies.

New Delhi exported 2.1 million tonnes of sugar in 2013/14, including over a million tonnes of raws, trade and industry estimates suggest. Most of the raws went to standalone Asian and African refineries for conversion into whites.Mills will not start raw sugar production until the government gives the subsidy.

Source:- reuters.com

Asia Grains-Australian Wheat Prices Fall, India's Export Hopes Fade

Australian wheat prices took a hit this week because of weak demand and falling global prices, which will make it difficult for India to export some of its burdensome stocks, traders said.

Australian prime wheat was quoted at $272 a tonne into Southeast Asia, including cost and freight (C&F), while standard wheat was offered at around $265 and high-protein hard wheat at $310, in each case around $15 a tonne down from last week.

Indian wheat, which competes with Australia's standard wheat, was priced at around $275-$280 a tonne for Southeast Asia although no deals have been reported.

"We are expecting Australian wheat to start becoming competitive with the fall in prices this week," said one Singapore-based trader. "India might find it tough to sell."

There was talk of India resuming wheat exports after a gap of six months earlier in January after a rally in global wheat prices and a tax on Russian exports.

But benchmark Chicago Board of Trade wheat futures have slid almost 14 percent in January, the biggest monthly decline in more than three years. Wheat prices jumped by more than a fifth in the final quarter of 2014.

On top of the lower international prices, a decline in freight rates will make it even more difficult for Indian wheat to compete in Africa and the Middle East.

"The biggest advantage India had was lower freight costs in shipping from India," said one New Delhi-based grains trader. "This is gone as freight rates have fallen with lower oil prices."

U.S. crude oil futures have lost more 50 percent of their value since the middle of last year because of slowing global demand and a supply glut.

The bulk freight rate from India to Yemen is quoted at around $14-$15 a tonne, down from $16-$18 a tonne earlier, while the cost of shipping from Australia to Yemen has seen a bigger drop to $22-$25 a tonne from $35.

"The drop in freight costs from India has not been as much as we have seen from other origins," the New Delhi trader said.

In the feed grain market, South Korea has been snapping up cargoes of corn, which has dropped almost 7 percent this month.

The country's largest feedmaker, Nonghyup Feed Inc, purchased about 255,000 tonnes of optional-origin corn in a tender this week. The tender for up to 280,000 tonnes was for arrival in July and August.

Source:- reuters.com

India’S Soymeal Exports Set To Hit 26-Year Low In 2014-15

India’s soymeal exports are set to hit a 26-year low in the 2014-15 year ending March as easing of sanctions against Iran has allowed the key buyer to opt for cheaper South American supplies, industry officials said.

According to the country’s biggest soybean processor Ruchi Soya Industries Ltd, India’s 2014-15 soymeal exports could drop to 800,000 tonnes, which is the lowest since 1988-89. Since Soymeal from India costs 5-10% more than supplies from Argentina and Brazil, top buyers of Indian soymeal such as Iran and Japan are turning away.

India exported 140,400 tonnes of soymeal to Iran over April to December last year, against record shipments of 1.23 million tonnes in 2013-14.

Source:- customstoday.com.pk

Rupee Trades Lower At 61.96 Per Dollar

The Indian rupee on Friday erased all the morning gains and was trading marginally lower against the dollar tracking losses in the local equity market.

At 2.06pm, the rupee was trading at 61.96 per dollar, down 0.15% from its previous close of 61.87. The local currency opened at 61.84 per dollar and touched a low of 61.97—a level last seen on 16 January.

India’s benchmark equity index, BSE Sensex, was trading at 29,275 points, down 1.7% or 500 points lower.

Asian currencies were trading mixed against the dollar. The Japanese yen was up 0.47%, Singapore dollar 0.28%, Thai baht 0.27%. However, Indonesian rupiah was down 0.71%, Taiwan dollar 0.07%, Philippines peso 0.07%, China renminbi 0.06%.

The yield on India’s 10-year benchmark bond stood at 7.708% compared with its Thursday’s close of 7.713%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has strengthen 1.82% against the dollar, while foreign institutional investors have bought $1.72 billion from local equity markets and bought $3.05 billion from debt markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.565, down 0.23% from its previous close of 94.782.

Source:- livemint.com

Forex gains are includible in operating profit while determining ALP of international transaction

IT/ILT : Superannuation contribution pertaining to earlier years cannot be taken into account for computation of operating profit of current year

AO can make additions on issues not included in reasons recorded that come to his notice in course o

IT : In view of Explanation 3 to section 147, Assessing Officer is empowered to make addition even on ground on which reassessment notice might not have been issued

Cos to publish general notice in newspaper before requesting for extension of time to repay deposits

COMPANIES ACT, 1956/COMPANIES ACT, 2013Indian Acts & Rules : Company Law Board Regulations, 1991 – Amendment in Regulations 4, 14, Form No. 4 and Annexure III; Substitution of Regulation 37 and Insertion of Regulations 52, 53, Form No.6, Form No. 7 and Form No.8

CLB reconstitutes its benches

COMPANIES ACT, 1956 : Section 10E of the Companies Act, 1956, Read with Regulation 4 of the Company Law Board Regulations, 1991 - Constitution of Board of Company Law Administration – Reconstitution of Specified Benches

Assessee got tax exemption on purchase of materials from all units, being registered as 100% EOU

CST & VAT: Rajasthan VAT - Where assessee had set up three units for production of gwar gum powder in three different years and it was granted registration as 100 per cent Export Oriented Unit, in terms of notification dated 13-6-1994 issued under section 4(2), assessee was entitled to exemption from payment of tax on purchases of raw material for all units

Trader has commenced its business when it got registration of shop, appointed employees and opened b

IT: Where assessee-company had rented out office premises, opened bank account, appointed employees and got registered under Shop & Establishment Act, business of assessee could be said to have been set up and expenditure incurred thereafter were allowable as revenue expenditure

Assessee couldn't be asked to pay taxes in subsequent year once assessee had already discharged his

IT : Where assessee had already discharged his tax liability in earlier year in respect of surrendered/recovered income, assessee could not be taxed once again for same income in relevant assessment year

Period of limitation for revision by AO and by Dy. Commissioner are entirely different under Kerala

CST & VAT : KGST Act : Period of limitations for revision of assessment by Assessing Officer under section 19(1) and that by Deputy Commissioner under section 35 are entirely different

Court has no power to reduce mis-declared value of goods to be exported by adopting their actual mar

Excise & Customs : No court has power to legalise an illegality reducing mis-declared value to actual market value of goods in container attempted to be exported

HC quashed SEBI's order restraining petitioners from launching new scheme as such schemes weren't CI

SEBI: Where respondents had not been able to show that SEBI had jurisdiction to interfere with affairs of petitioners' business and SEBI, having not concluded till date that business of petitioners fell within meaning of expression Collective Investment Scheme, operation/execution of directions, contained in impugned order restraining petitioners from collecting money from investors and launching new schemes were to be suspended

A Co. isn't entitled to deduction of interest under sec. 24(b) as it can't utilize properties for 'o

IT: Even where assessee-company had paid interest on borrowed fund, deduction under section 24(b) could not be allowable as such provision is applicable only to self occupied properties

Confessional statement doesn't have evidentiary value in absence of incriminating material found dur

IT : Where in absence of any incriminating material etc., found from premises of assessee during course of search, statement of assessee recorded under section 132(4) would not have any evidentiary value;

HC quashed SEBI's order restraining petitioners from launching new scheme as if such schemes weren't

SEBI: Where respondents had not been able to show that SEBI had jurisdiction to interfere with affairs of petitioners' business and SEBI, having not concluded till date that business of petitioners fell within meaning of expression Collective Investment Scheme, operation/execution of directions, contained in impugned order restraining petitioners from collecting money from investors and launching new schemes were to be suspended

Limitation period to complete block assessment to be counted from the month of issuing last authoriz

IT : Block assessment has to be completed within a period of two years from end of month of date of issue of last authorization for search under section 132

Non-compete fee paid to director on his retirement to restrict him from sharing his experience was r

IT : Disallowance under section 14A for assessment year 2007-08 has to be worked out on some reasonable basis, without resorting to rule 8D

HC sets aside addition of deemed dividend as assessee-co. wasn't a shareholder in lender-Co.

IT : Where assessee company received a sum from another company it was not liable to pay tax under section 2(22) as assessee was not a registered or beneficial shareholder of a company

SC can't be a principal court of original jurisdiction to decide on questions forming subject matter

Arbitration Act: Section 42 provides for scope of jurisdiction of a court over arbitral proceedings and it applies to applications made under Part-I of Act, if they are made to a court as defined in section 2(1)(e), however in no circumstances can Supreme Court be 'Court' for purposes of section 2(1)(e), even if it retains control over arbitral proceedings

Investigating officer can arrest assessee under ST only after examining docs and when offence is mad

Service Tax : Arrest under section 89 read with section 90 of Finance Act, 1994 on allegation of non-payment of collected service tax, can be made only after : (a) examining documents and (b) coming to prima facie conclusion that offence is made out

ALP adjustments to be made only for international transactions with AEs without extending it to non-

IT/ILT : ALP adjustment has to be made only for international transactions with AEs without extending it to non-AEs

Quality control services received abroad in relation to export products are eligible for input servi

Cenvat Credit : Where assessee-manufacturer had availed quality control services (deburring/removal of rust) from a US service provider at buyer's warehouse in USA for export of 'axles (motor vehicles parts)' to said buyer, service tax paid on such quality control services under reverse charge was eligible for input service credit

Stay application not filed with appeal but filed before hearing is valid, as there is no time-limit

Service Tax : In absence of any legal provision prescribing time limit for filing stay application, stay application not filed with filing of appeal but filed before personal hearing must be considered on merits

Suzuki Plans Rs 8,500-Crore Investment In Gujarat Plant

Suzuki Motor started construction of a manufacturing plant in Gujarat that Chairman Osamu Suzuki called the start of a "new era" for the Japanese carmaker. Suzuki plans to supply vehicles made at the factory to local unit Maruti Suzuki, a proposal that is staunchly opposed by some of the Indian company's minority shareholders.

Suzuki Motors Gujarat, a wholly owned subsidiary of Suzuki Motor, will own the plant where it plans to invest close to Rs 8,500 crore in several phases. The facility at Hansalpur on the outskirts of Ahmedabad is estimated to create a capacity of 7.5 lakh units a year, and is being projected to help Maruti attain its sales target of 2 million vehicles by fiscal 2020.

Speaking at an event on Wednesday where Gujarat Chief Minister Anandiben Patel laid the foundation stone for the plant, Osamu Suzuki said: "Under the 'Make in India' programme proposed by Prime Minister Narendra Modi, we will set up a state-of-the-art production plant here in Gujarat, with high focus on productivity and efficiency." Maruti is expected to source vehicles for exports from the proposed plant due to its proximity to two ports, at Mundra and Kandla. The auto maker now incurs Rs 6,000-7,000 to take a vehicle to port from its facilities in landlocked Haryana.

The first phase of the new plant will entail an investment of Rs 3,000 crore to make a 2.5-lakh-unit assembly line, which will begin operation in the middle of 2017. It will add two more lines to take the capacity to 7.5 lakh vehicles.

Eventually, Suzuki expects to produce as many as 1.5 million vehicles a year in the Gujarat region. Maruti has two tracts of around 600 acres each in the Hansalpur area. It plans to seek shareholders' approval to transfer the land where Suzuki is building the plant to the parent after Parliament clears amendments to the Land Acquisition Act.

Under current rule, such a proposal needs approval from at least 75% minority shareholders, but some of them including institutions are against the plan on concerns that it would hurt Maruti's profitability. The amendment proposes to reduce the consent requirement to 50%.

For Suzuki, India is one of the most important markets and Maruti is its largest unit. A decade back, Maruti contributed just 10% of the parent's turnover, but today, this has swelled to almost 30%. In terms of profit, the Indian subsidiary contributes about a quarter.

"Although we have been in India for three decades, but there has been no change in the way I tackle new challenges. So for me, setting up of the Gujarat facility is like beginning of a chapter ... we can even call it the second chapter of SMC in India," the Suzuki chairman said.

Suzuki is aiming at global volumes of 5 million by 2020. That would call for incremental volumes of 1.2 million globally and Maruti is key to reach that target. The Indian unit is estimated to account for 40% of Suzuki's revenue by 2020.

Maruti Chairman RC Bhargava said the Gujarat "facility is likely to offer a significant cost benefit of 10-15% due to the logistical cost advantage the location offers".

Source:- economictimes.indiatimes.com

Notional interest on 'interest-free security deposits' not includible in value of renting of immovab

Service Tax : Notional interest on interest free security deposit cannot be added to rent agreed upon between parties for purpose of levy of service tax on renting of immovable property

CBDT asks its officials to follow HC's ruling in 'Vodafone' in cases where shares were issued at pre

IT/ILT : Section 92C of the Income-Tax Act, 1961 - Transfer Pricing - Computation of Arm’S Length Price – Acceptance of Order of High Court of Bombay in Case of Vodafone India Services Pvt. Ltd. [2014] 50 Taxmann.com 300 (Bombay)

India’S Veg Oils Import Up 16 Per Cent

Indian vegetable oil imports have recorded a 16 per cent growth at 2.32 million tonnes during November to December 2014, Solvent Extractors’ Association of India (SEAI) said in a statement.

During the same months last year, vegetable oil imports were recorded at 2.01 million tonnes, SEAI adds.

SEAI attributed the rise to high prices of soybean and lesser realization for oil and soybean meal in export market, resulted in lower crushing and availability of domestic oil.

In last three months, due to nil export duty on palm products by Indonesia and Malaysia and reduced demand of CPO for bio diesel, pushed the export of palm products to India to reduce burgeoning stock held by the exporting countries, the association stressed.

During November to December 2014, import of refined oil (RBD Palmolein) was at 100,846 tonnes, as compared to 372,102 tonnes imported during the same period last year due to nil export duty on RBD Palmolein and CPO by Indonesia and Malaysia.

During the period, palm oil import also decreased marginally to 1.633 million tonnes , against 1.637 million tonnes during the same period of last year. However, soft oils import has increased to almost doubled and reported at 637,687 tonnes from 342,249 tonnes last year.

Share of soft oils import increased to 28 per cent from 17 per cent last year while palm oil products down to 72 per cent from 83 per cent, SEAI adds.

As on January 1, 2015, current stock of edible oils both at ports and in pipelines increased to 2.08 million tonnes from 1.96 million tonnes in December 2014, up by nearly 500,000 tonnes compared to January, 2014.

Source:- thecropsite.com

SEZ was entitled to interest on belated ST refund even if interest was not covered in notification

Service Tax : Since interest on belated refund is statutorily provided in section 11BB of Central Excise Act, SEZ units getting belated refund of service tax under an exemption notification are entitled to interest, even if not provided in said Notification

Rupee Ends Unchanged Against U.S. Dollar At 61.41

The Indian rupee on Wednesday ended unchanged against the U.S. dollar at 61.41 ahead of the outcome of U.S. Federal Reserve’s policy meeting.

The rupee resumed lower at 61.50 per dollar as against the last closing level of 61.41 per dollar at the Interbank Foreign Exchange (Forex) Market. It moved down further to 61.52 per dollar on initial dollar demand from banks on the back of higher dollar overseas.

However, the domestic currency recovered from initial losses and firmed up to 61.2900 per dollar on heavy selling from banks and exporters due to persistent foreign capital inflows into equity market. It ended at yesterday’s closing level of 61.41 per dollar.

The rupee hovered in a range of 61.29 and 61.52 per dollar during the day.“Rupee remained volatile...investors remained cautious before the outcome of FOMC meeting which concludes tonight,” said Admisi Forex, Director, Suresh Nair.

The dollar index was up by 0.10 per cent against a basket of six major global rivals.The US dollar climbed in the global market versus its counterpart in Singapore after the Asian nation unexpectedly eased monetary policy.

Veracity Group, CEO, Pramit Brahmbhatt, said, “The trading range for the Spot USD/INR pair is expected to be within 61.00 to 61.80.

The Indian equity benchmark Sensex moved down by 11.86 points, or 0.04 per cent, to end at 29,559.18.Meanwhile, premia eased on fresh receipts by exporters.

The benchmark six-month premium payable in June ended lower at 190.5-192.5 from 192-194 paise yesterday while forward contracts maturing in December ruled steady at 398-400 paise.

The Reserve Bank of India fixed the reference rate for dollar at 61.4105 and for Euro at 69.8237.The rupee dropped further against the pound to 93.40 per pound from 92.58 previously and also fell against the euro to 69.72 per euro from 69.17.The rupee also moved down further to 52.14 per 100 yen from 52.03 previously.

Source:- thehindu.com

Amended definition of NPA allowing different regulators to lay down different NPA norms isn't uncons

SARFAESI : Amendment not unconstitutional merely because of inconsistency with the objects of the Act

Canvass cloth was exempted from sales tax as it was specifically included in exemption notification

CST & VAT: U.P. VAT - Where assessee purchased canvas cloth and effected sale of same, in view of entry No. 53 of notification dated 31-1-1985 issued under section 4(a), assessee was eligible for exemption from payment of tax on sale of canvas cloth

No penalty due to blank declaration form submitted by exempted unit as it couldn't evade taxes

CST & VAT: Haryana VAT - Where assessee was an exempted unit there would be no occasion to evade tax; penalty cannot be levied merely on ground that Form 38 accompanying machineries in transit sent for repairing was found blank

NBFCs purely into investment activities need not furnish any credit info to credit info Cos, says RB

NBFCs : Submission of Data to Credit Information Companies - Format of Data to Be Submitted by Credit Institutions

In case of reverse charge no ST is payable on returns/rejections prior to expiry of credit period

Service Tax : Where software services are imported on 60 days' credit and prior to expiry of 60 days, defective software are returned back, then, for assessee liable to pay service tax on receipt basis, no service tax is payable on said returns of defective software

AO could invoke sec. 14A disallowance even if assessee had utilized mixed funds for earning tax free

IT : Where funds utilized by assessee was mixed funds and, hence, interest paid on borrowed fund was also relatable to interest on investment made in tax free funds, interest expenditure relatable to investment in tax free funds was to be computed under provisions of Rule 8D(2)(ii)

Prima facie case means an arguable case which needs an enquiry and it doesn't mean a full proof case

Competition Law : Prima facie case means an arguable case which needs an enquiry and does not mean a full proof case and same cannot be interfered with in exercise of writ jurisdiction

Turnover/cash discount is deductible in computing excisable value even if it isn't shown in invoice

Excise & Customs : It is a fact that turnover discounts and cash discounts cannot always be shown in invoice as these discounts are worked out on basis of turnover or on basis of promptness of payment; therefore, their non-mention in invoice cannot be a criterion for disallowing same

CIT(A) rightly excluded value of free materials supplied by AE in calculating mark-up on cost incurr

IT/ILT : Where Commissioner (Appeals) in TP adjustment had calculated 6 per cent mark up after excluding value of raw material supplied to assessee free of cost by AE, in accordance with course of action adopted by department in immediate preceding year, same was to be upheld

Non-indication of SAD in commercial invoice is sufficient to claim its refund

Excise & Customs : Non-declaration/non-specification of Special Additional Duty (SAD) of Customs duty element in commercial sale invoice would itself ensure that credit is not taken of said duty and would satisfy requirement of non-Cenvat declaration; hence, assessee would be eligible for refund of SAD even if there is no such declaration

Scrap retained by job-worker wasn't includible in value of job-work

Excise & Customs : Scrap retained by job-worker is not prima facie includible in value of job-work; hence, pre-deposit of demand was waived accordingly

CIT(A) erred in accepting weighted mean for TP adjustment as TP provisions prescribe use of arithmet

IT/ILT: Where no reasoning was given by Commissioner (Appeals) for accepting assessee's claim, it was a non-speaking cryptic order; matter required readjudication

No admission of additional evidence by CIT(A) when he had used operating profit ratio given by asses

IT/ILT : Where TPO included a different percentage while calculating arithmetic mean of OP/TC of comparable companies and Commissioner (Appeals) substituted same with correct OP/TC as was given to TPO by assessee, there was no admission of additional evidence at end of Commissioner (Appeals)

Now deposit in 'Sukanaya Samridhi Account' would provide sec. 80C relief

IT : Section 80C of the Income-Tax Act, 1961 - Deductions - in Respect of Insurance Premium, Etc. - Notified Plan under Section 80C(2)(Viii)

Govt. notifies certain entities for exemption under section 10(46)

IT : Section 10(46) of the Income-Tax Act, 1961 - Exemptions - Statutory Body/authority/board/commission - Notified Body or Authority - Tamil Nadu Water Supply and Drainage Board

Govt. notifies 'Indian National Group of International Association' for Sec. 10(23A) exemption

IT : Section 10(23A) of the Income-Tax Act, 1961 - Exemptions - Professional Associations - Notified Association

Weekly Coal Stocks At Key Indian Ports Rise 0.1% To 15.48 Mil Mt: Interocean

Coal stocks at 16 major Indian ports were at 15.48 million mt as of January 24, up by a marginal 0.1% from a week ago, according to data released by Indian shipbroker Interocean.

The stockpiles comprised 12.38 million mt of thermal coal, down 0.5% from 12.44 million mt the previous week, and 3.07 million mt of coking coal, up 3.3% on the week from 2.97 million mt, the data showed.

The stocks for anthracite were at 8,000 mt, down by 33.3% from 12,000 mt in the previous week, while petcoke stocks dropped to 17,200 mt, down 42.7% from 30,000 mt, the data showed.

Paradip port on India’s east coast had the highest coal stocks as of January 24 at 3.69 million mt, down by 1% from 3.73 million mt the previous week according to Interocean. It had the highest level of thermal coal stocks, at 2.26 million mt, down 4.7% from 2.39 million mt the previous week.

It also had the highest level of coking coal stocks at 1.41 million mt, up 5.9% over the week from 1.33 million mt.

The 16 ports surveyed by Interocean were Mangalore, Tuticorin, Kakinada, Paradip, Kandla, Gangavaram, Visakhapatnam, Krishnapatnam, Muldwarka, Bhavnagar, Pipavav, Goa, Dahej, Magdalla, Hazira and Haldia.

Source:- hellenicshippingnews.com

Labour Dispute At Us Ports Hits Apple Exports To Indian Markets

Despite the record apple crop in the US, importers in Chennai complain they are getting only half their shipments. A long drawn labour dispute at the West Coast ports in the US has been threatening shipment to the lucrative overseas market.

The 2014 Washington apple crop is estimated at 155 million boxes, 35 per cent higher than the 115 million boxes last year. However, inventory has been building up at ports in the US given the work slowdown, sources said.

Instead of shipping apples to profitable markets such as India and China, they are instead being sent to Mexico and Canada via trucks. The crisis in the midst of a banner apple production year has cut down shipments to almost half, with some estimates suggesting that growers are losing around $1 million a week.

Senior officials of Washington Apple Commission, a US-based agency that promotes apple exports from the orchards of Washington State, were in Chennai last week, on an annual visit. “We met several importers who said they were not getting what they would like to get in terms of sizes or boxes,” said Keith Sunderlal, CEO, SCS Group, the in-country representatives of the Washington Apple Commission (WAC).

“The port slowdown has delayed shipments. Earlier, fruits could be shipped in 30-35 days, now it takes 50 days,” he added.

In terms of sales volume, South India is one of the largest regions for Washington apples, Sunderlal said. He added: “Chennai is a big import point with its ports. Fruits are then distributed across South India to Hyderabad and Kochi. Bengaluru is also a growing market.” In the current season, India is among the fifth largest markets for Washington Apples, behind Canada, Mexico, China and Taiwan. The latter has shot ahead of India in importing more apples from the US.

“Some markets (countries) take fruit early and some late. Currently, we are only five months into the season. Sales in India have been growing at a steady clip of 20 per cent per year for the last several years. However, there are year-to-year anomalies, since the crop (amount) changes every year, and so does the sizing of the crop,”.

Source:- thehindubusinessline.com

Rupee Edges Higher Against Us Dollar At 61.41

The Indian rupee today ended marginally higher against the American currency at 61.41 amid volatile trading on the back of a higher dollar overseas.

Earlier, the rupee resumed lower at 61.50 per dollar as against last Friday's close of 61.42 at the Interbank Foreign Exchange market. It then declined to 61.51 per dollar on dollar demand from banks and importers.

However, the rupee recovered afterwards to 61.37 per dollar on selling of dollars by banks and exporters tracking heavy foreign capital inflows into equity market. It finally settled at 61.41 per dollar, showing a marginal gain of one paisa or 0.02 per cent.

It hovered in a range of 61.37 per dollar and 61.51 per dollar during the day.Heavy capital inflows and higher equities lifted the rupee sentiment, dealers said. The Indian benchmark Sensex rose by 292.20 points or one per cent to settle at 29,571.04.

The dollar index was down by 0.23 per cent against a basket of six major global rivals.

In New York, the US dollar was higher against its major rivals in the early trade, though the euro held onto modest gains, having bounced off an 11-year low as investors decided to take profits on extremely bearish positions.

Veracity Group, CEO, Pramit Brahmbhatt said: "Rupee traded in a thin range and ended flat just above previous close at 61.41. Rupee is expected to appreciate more in coming days tracking gains in local equities".

The trading range for the spot $/INR pair is expected to be within 61.00 to 61.80, he added.Meanwhile, premia showed showed steady to better trends in view of some paying pressure from corporates.

The benchmark six-month premium payable in June ended steady at 192-194 paise while forward contracts maturing in December firmed up to 398-400 paise from the last Friday's closing level of 395.5-397.5 paise.

The Reserve Bank of India fixed the reference rate for dollar at 61.4640 and for Euro at 69.0302.The rupee dropped against the pound to 92.58 per pound from 92.00 previously and also fell against the euro to 69.17 per euro from 68.94.

Source:- economictimes.indiatimes.com

Order passed by CIT under sec. 119 is an administrative order; not appealable before Tribunal

IT : Where Commissioner's order under section 119(2)(b) being administrative was held not appealable before Tribunal, Tribunal's order did not call for rectification by Tribunal

No penalty on addition under sec. 41(1) when assessee's plea against cessation of liability was plau

IT : Where assessee's plea regarding addition made by Assessing Officer on account of cessation of liability was plausible, penalty under section 271(1)(c) was not leviable

HC remands case to Tribunal as it had failed to examine issue of pre deposit and decided issue on me

Excise & Customs : Where appeal arises from pre-deposit order of Commissioner (Appeals) and consequent dismissal of appeal on default in compliance therewith, Tribunal cannot adjudicate upon merits and even if it finds pre-deposit order incorrect, matter should be remanded back to Commissioner (Appeals) after waiving pre-deposit

Exp. on horticulture facilitating operations of assessee by providing better environment was busines

IT : Annual charges paid for web hosting relating to earlier years which crystallised during relevant assessment year, would be allowed in relevant assessment year

I-T authorities can collect relevant info to check tax evasion; HC upholds constitutional validity o

IT: Even assuming that the right to privacy is itself a fundamental right, such fundamental right must be subject to restriction, on the basis of compelling 'public interest'. There is no prohibition on the State in gathering information for preventing tax evasion and curb black money. Unless necessary information is furnished, the data collection will become impossible and no proceedings can be pursued against wrongdoers to guard economy of the country. It is well settled that the 'taxation ent

No detention of goods if circular enchancing tax rate came into operation after actual sale of goods

CST & VAT : Kerala - If goods were sold at prevailing rate and thereafter Government circular enhancing such rate came into existence, no detention of goods could be made

No invocation of extended period when departmental authorities had interpreted law in favour of asse

Service Tax : When, one of senior officer of department is dropping demand by adopting a particular interpretation of provision of law, assessee cannot be held guilty of adopting same interpretation which is in his favour, even if Commissioner, on review, adopted a different view

Mere denial of set off of brought forward loss on technical ground doesn't lead to levy of concealme

IT: Where disallowance of carry forward of long-term capital losses was on technical ground and not on account of concealment of particulars of income, penalty under section 271(1)(c) would not be levied

Nature of activities of trust need not be examined at the time of its registration under sec. 80G

IT : At stage of registration of trust, nature of activities were not required to be examined; approval under section 80G(5) could not be disallowed only on basis that main activity of assessee trust was not charitable

No denial of sec. 12AA registration to trust merely due to non-commencement of charitable activities

IT : Application for registration under section 12A cannot be rejected on ground that assessee had not yet carried on any charitable activity

Mere availment of duty drawback on inputs doesn't lead to denial of ST refund on services used for e

Service Tax : Service tax paid on Cargo Handling Services used for export of goods is eligible for refund and same cannot be denied merely because assessee had claimed drawback of duty paid on inputs used in manufacture of export goods

Doctrine of unjust enrichment doesn't apply to 'inter-unit' stock transfer of intermediate goods

Excise & Customs : In case of inter-unit 'stock transfer' (not sale) of intermediate goods, doctrine of unjust enrichment would not apply; hence, excess duty paid on such stock transfer can be claimed as refund by sender unit, provided recipient unit has not taken credit of such excess duty and has not claimed excess price

Industry Concerned Over Textile Policy Delay

Stakeholders have shown their concerns over the delay in approval of much awaited textile policy 2014-19, claiming that further delays may negatively affect the major export oriented sector of the country.

“The incompetent government is continuing to delay textile policy despite the lapse of more than eight months, reflecting lack of interest of the federal government in promoting the industry in the country,” said All Pakistan Textile Mills Association chairman S.M Tanveer during a joint press conference along with Group Leader APTMA Gohar Ejaz at the APTMA Punjab office in Lahore on Tuesday.

He said delay in announcement of textile policy 2014-19 further suggests that the present government is not different from the previous one, which had allocated Rs180 billion in Textile Policy 2009-14 whereas disbursed only Rs28 billion which is 15% lower of the allocation' he added.

He said both India and Bangladesh announced their textile policies and registered 2008-2013 a growth of 94% and 160% respectively in exports against merely 22% of Pakistan during 2009-14. The world textile exports also grew by 45% on an average during the same period, he said.

While dubbing the federal textile ministry as "toothless" and "failed" ministry, he said an undue delay in announcement of textile policy 2014-19 has already left Pakistan far behind against the region counterparts, he added.

He said today 30% of the industry capacity is non-operational, exports are stagnant and no new investment has taken place since 2006.

He lamented that the government had no focus on the growth of textile industry and the textile policy, therefore, has been delayed by almost last eight months.

According to him, the proposed textile policy for 2014-19 speaks about allocation of Rs60 billion, which is a drop in the ocean and government should enhance it to Rs200 billion at least.He said the goals set in the proposed textile policy 2014-19, double textile exports, $1 billion investment per annum, employment creation, raw material availability of both cotton and man-made fiber are not possible to meet with such a meagre allocation.

While putting forward proposals for much-awaited textile policy 2014-19, chairman APTMA has sought guaranteed uninterrupted electricity and gas supply, Technology Up-gradation Fund Scheme (TUFS) for BMR and greenfield projects, cotton production target of 20 million bales, MMF availability on competitive price, new investment, incentives on domestic consumption of textiles and clothing and immediate liquidation of pending refunds of textile industry.

Group leader APTMA said the overloaded subsidies for textile industry in India has made Pakistan's textile industry uncompetitive. Pakistan's flagship textile industry is facing the fate of national hockey team due to inattentive attitude of the government.

According to Pakistan Textile Exporters Association (PTEA), the businessman of the country is waiting for the relaxation to the textile sector due in new textile policy, so that losses of the sector could recover and it starts contributing to national exchequers but delays in the announcement of new policy was discouraging.

Stakeholders are expecting new schemes like complete settlement of all outstanding refund claims, rationalisation of refund regime, establishment of Exim Bank, duty free import of textile machinery and reduction in mark-up rate for export refinance, as announced by the government from time to time.

According to officials, around Rs 80 billion were earmarked in the federal budget for textile package; however, after a lapse of six months, these schemes could not be initiated.

Pakistan Textile Exporters Association (PTEA) Chairman Sohail Pasha expressed concerns that the country has, according to him, failed to exploit GSP Plus status given by European Union to its full potential.

He said last textile policy, which expired on June 30, last year, failed to reach the envisaged textile exports target of $25 billion, and the exports merely remained at a level of around $13.5 billion only.

Source:- nation.com.pk.

Steel Ministry Seeks Increase In Basic Customs Duty To Deter Cheap Imports

The steel ministry is set to seek a sharp increase in peak rate of basic customs duty on steel products to 25% from 10%, a measure that it wants to be announced in the Budget next month to help stem the tide of cheap imports from China and, more recently, Russia. The ministry also wants sops to make exports of Goa's low-grade iron ore feasible. It has already asked the finance ministry for an immediate increase in duty to 10% from 7.5% for flat products and to double it to 10% for long steel.

"Increasing peak rate will allow the government to change duty to meet market demands without going to Parliament," said a ministry official, requesting not to be named. The Centre can easily meet this demand, the official said, pointing out that the World Trade Organisation's peak import duty for steel is 40%.In the interest of domestic steelmakers, the ministry led by Narendra Singh Tomar could also ask for steel to be included in the negative list of free trade agreements with Asian countries, the official said.

A simultaneous waiver of the 2.5% import duty on raw material for steel such as coking coal, dolomite, limestone and scrap and nickel used in stainless steel is also being sought, according to industry executives. This is besides the duty waiver being sought on imported LNG that will benefit gas based steelmakers such as Essar and Wellspun.

The companies that stand to benefit could not be reached for comment. The mines ministry expects a significant improvement in domestic iron ore supplies in 2015-16, following the promulgation of an ordinance that will allow several shut mines to resume operations.

Tomar, who holds the combined charged of mines and steel ministries, had earlier told ET that the government's first objective is to meet the domestic requirement for raw material, in line with the 'Make in India' programme. "In case there is surplus production then we might look at incentivising exports. In some cases such as that of low-grade iron ore fines, where there is no domestic demand, a case can be made," the minister had said.

Relief may be in the offing for Goa's iron ore miners. A 30% export duty is in place for iron ore although the international price of the critical steel input has crashed to its lowest in five years. Goa's miners say they do not have a domestic market for their ore, 90% of which is of less than 58% grade FE and unused in domestic blast furnaces.

Withdrawal of the export duty is, therefore, critical to resumption of mining that was banned for two years due to regulatory issues. The mines ministry has asked the finance ministry to consider a differential duty instead of a flat 30%. This could be discussed in a meeting between the representatives of ministries along with Goa chief minister Laxmikant Parsekar.

Source:- economictimes.indiatimes.com

AO to fix ALP of reinsurance commission considering comparative analysis of risk factor in reinsuran

IT/ILT : Where assessee furnished additional evidence necessary in comparative analysis of risk factor in reinsurance business, matter was to be remitted to Assessing Officer

Question of law has to be answered by HC once a reference is called at its instance even when tax ef

IT : Once a reference is called at instance of High Court, question of law framed has to be answered on merits and it cannot be disposed off merely because tax effect is minimal

India's Silver Imports See 15% Jump In 2014

According to the most recent data published by the Directorate General of Commercial Intelligence and Statistics (DGCI&S) under the Indian Customs Department, the Silver imports by the country surged higher by 15% during the entire year 2014. This is when compared with the previous year. However, the standalone import figure for the month of Dec ’14 declined sharply over the previous month.

According to the quick estimates provided by the Customs Department, the country’s Silver imports amounted to $182.31 million during Dec ’14. This equates to nearly 348 tonnes, sharply down by 72% when compared with the Nov ’14 Silver imports of 1,254 tonnes. The Silver import prices averaged at $16.3 per ounce during the month of December last year. The figures for the month of Dec ’14 are provisional and are subject to change. The official import figures will be announced later.

The Silver imports by the country during the entire year 2014 totaled 7,063 tonnes. The imports reported an increase of nearly 15% year-on-year when compared with the yearly imports of 6,125 tonnes during 2013.

The investment and jewelry demand for Silver has witnessed sharp jump during 2014. There was an obvious switch in demand from gold to Silver, mainly on account of bearish gold forecasts and anticipated pick up in Silver’s industrial usage demand.

The recent data published by the Gems and Jewellery Export Promotion Council (GJEPC) indicates that the total Silver bar imports by the country in December 2014 amounted to INR 15.68 crores (USD 2.50 Million). The imports jumped higher by 9.73% over the previous year. However, the imports were marginally down by 0.3% when compared with Nov ’14.

Source:- metal.com

TP method accepted by ITAT couldn't be rejected by TPO in later years in absence of change in circum

IT/ILT : Where CUP method adopted by assessee in respect of freight expenses had been accepted in earlier assessment years, in absence of any change in circumstances, TPO could not make addition to assessee's ALP during relevant year by adopting TNMM

Medical records of an individual are personal information; excluded from purview of RTI Act

RTI Act : Information relating to medical records of an individual would be personal information which is exempt from disclosure under section 8

Declared custom value can't be enhanced on basis of values declared in 'National Import Data Base'

Excise & Customs : Declared value cannot be rejected only on ground that it appears to be very low compared to value available in NIDB data, without any other material

Now, Cbec Forms Teams To Hunt For Companies Evading Taxes

On the lines of income tax surveys of entities suspected of evading taxes, the Central Board of Excise and Customs (CBEC) has set up as many as 40 audit commissionerates across the country tasked to audit accounts of companies and survey their other operations to detect any tax evasion.

The results of 'non-intrusive' audits are encouraging. "In the Chennai zone we have collected over Rs 130 crore in the previous financial year (2013-14) and this financial year up to December the additional tax mop up from undisclosed income was Rs 79 crore," said service tax commissioner, Sanjay Kumar Agarwal. Agarwal also holds the additional charge of the Large Taxpayers' Unit (LTU) in Chennai.

A list of tax evasion cases detected by the audit units nationwide was not available. Each of these commissionerates is headed by a commissioner-level officer and comprises of at least 200 officials in the ranks of inspector and above.

Two audit commissionerates have been created at LTU audit commissionerate at Delhi which will have jurisdiction over companies registered with LTU Delhi, Kolkata and Bangalore, while LTU audit commissionerate at Mumbai will have jurisdiction over companies registered with LTU Mumbai and Chennai. The LTU has also helped the revenue department in keeping tab on big corporates and activities of their front entities.

Source:- timesofindia.indiatimes.com

Rupee Opens Lower At 61.49 Per Dollar

The Indian rupee on Wednesday weakened in the opening trade against the dollar, tracking losses in the Asian currencies markets.

The local currency opened at 61.49 per dollar. At 9.06am, the rupee was trading at 61.47 per dollar, down 0.11% from its previous close of 61.41.India’s benchmark equity index, Sensex, was trading at 29,542.98 points, down 0.09%.

Most of the Asian currencies were trading lower against the dollar. The Singapore dollar was down 0.95%, Malaysian ringgit 0.51%, Thai baht 0.4%, South Korean won 0.36%, Philippines peso 0.25%, Indonesian rupiah 0.21%, Japanese yen 0.15%, China offshore 0.11%.

The yield on India’s 10-year benchmark bond stood at 7.703% compared with its Tuesday’s close of 7.707%. Bond yields and prices move in opposite directions.Since the beginning of this year, the rupee has strengthen 2.51% against the dollar, while foreign institutional investors have bought $1.24 billion from local equity markets and bought $2.91 billion from debt markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.292, up 0.29% from its previous close of 94.022.The US Federal Reserve starts a two-day policy meeting on Tuesday which will be keenly watched by investors as it is the first such meeting after last week’s multi-billion dollar bond buying announced by the European Central Bank (ECB) and easier policies announced earlier by Canada and Switzerland.

Source:- livemint.com

No disallowance due to TDS default if TDS was deposited before due date of filing return

IT : If tax deducted at source is paid on or before due date for filing of return of income, no disallowance under section 40(a)(ia) could be made

HC couldn't make revision against order of Tribunal condoning delay in filing appeal under UP VAT Ac

CST & VAT : U.P. VAT - No revision can be made by High Court against order of Tribunal condoning delay in filing appeal

Usance charges paid to NR on import purchases would be considered as an interest; liable to TDS

IT: Usance charges paid to non-resident on import purchase by assessee would be considered as interest and liable to TDS

Receipt of share application money via banking channel couldn't be held as unexplained

IT: Where share application money received by assessee-company from another company was through proper banking channel, addition made on account of unexplained share application money was unjustified

Writing off debts in accounts is enough to claim deduction of bad debts; no need to prove their irre

IT : Where debts were irrecoverable in accounts of assessee even though no evidence was produced by assessee to show that debt had actually become irrecoverable, bad debts claimed would be allowed

Aluminium dross and skimmings aren't manufactured goods; decision of larger bench of CESTAT reversed

Excise & Customs : Aluminium dross and skimmings and similar non-ferrous metal dross and skimmings which arise as a by-product in process of manufacture of aluminium/non-ferrous metal products are "not manufactured goods" and hence not liable excise duty; Tribunal decision described as having taken a view that no reasonable person and no adjudicating body would take

Rent paid on premises for installation of mobile towers is eligible for credit

Cenvat Credit : Rent paid to install mobile towers, which are used for boosting signals to provide telecom services, amount to 'input service' for telecom companies; hence, service tax paid on said rent is eligible for credit

Commission paid to NR agent for services rendered outside India isn't chargeable to tax; not liable

IT : Where commission paid by assessee to his agent was not chargeable to tax in India, assessee was not liable to deduct tax at source on said payments

No Seizure of chassis alleging that it would be sold by evading tax if it was taken out to build its

CST & VAT : U.P. VAT : Where Authorised Officer intercepted a new chassis and owner told that he was taking same from Jaipur to Moradabad for getting its body built, seizure of chassis on ground that it was being taken to Moradabad for sale by evading payment of tax was patently illegal

Commercial vehicles used for transportation of goods on hire are depreciable at 30% and not at 15%

IT : Where assessee was commercially using vehicles for transporting goods on hire, assessee was entitled for depreciation at rate of 30 per cent according to CBDT Circular No. 609 dated 29-7-1991

As Rs15.8B Yarn Imported From India During Jul-Dec, Pyma Seeks 15Pc Rd Duty On Import

Pakistan Yarn Merchants Association zonal chairman Muhammad Akram Pasha has demanded the imposition of 15 percent regulatory duty on imports of cotton yarn from India, saying that during the six months of year 2014 July to December total quantity of yarn imported from India was Rs 15.8 billion.

However, in the same period of preceding year, the total import was Rs 4.2 billion, he said talking to the media. Thus within six months, the import of Indian yarn quadrupled, impacting negatively on the local market. He said India was trying to sabotage the Pakistani yarn market and spinning sector by dumping heavily subsidized yarn exports from that country. They explained that Indian government was giving various incentives and subsidies to its exporters enabling them to dump their cotton yarn in Pakistani markets. The imports of cotton yarn from India were thus destroying the textile sector of Pakistan.

He said that textile was backbone of Pakistani economy which was earning more than 50% of total foreign exchange for the country. Furthermore huge number of textile industries and value added chain were connected with the spinning sectors and yarn market, he said.

Source:- customstoday.com.pk

Cheaper Oil Fuels India’S Strategic Reserves Push

Seizing the opportunity provided by the global price of crude falling to less than $50 a barrel, India is planning to fill up a strategic storage facility at Visakhapatnam by the first fortnight of February. This would be the first time the country is storing crude oil and the amount will be 1.03 million tonnes.

Strategic reserves are seen as vital for countries with high energy consumption levels and more so for India, which is heavily import-dependent when it comes to meeting its energy needs.

“We are just waiting for one specific approval. Once it comes, we are technically ready to fill the tank at Visakhapatnam,” said Rajan K Pillai, CEO & MD of Indian Strategic Petroleum Reserves (ISPRL) a special purpose vehicle owned by the Oil Industry Development Board.

Pillai said that at the current crude oil prices of around $50 per barrel and the rupee’s level of 61-62 to the dollar, filling up the facility at Visakhapatnam would cost about R2,400 crore and would be fully funded by the government. “India has set up among the cheapest storage facilities, which would cost about $17-18 per barrel,” Pillai said.

India imported 189 million tonnes of crude oil last fiscal, at a cost of $143 billion. Close to four-fifths of India’s oil consumption is met by imports. The construction of the proposed strategic storage facilities is being managed by ISPRL. To ensure energy security, the government has decided to set up 5 million tonnes (mt) or about about 39 million barrels equivalent strategic crude oil storages at three locations — Visakhapatnam, Mangaluru and Padur (near Udupi).

When fully filled, these reserves would be equivalent to 13 days of oil imports. The government is targeting an increase to 90 days of imports by 2020. Globally, the US has the maximum storage facility, which can last for about 90 days. After seeing strong volatility and price falls earlier in January, oil markets moved little last week with Brent prices range-bound between $47.78 and $50.45 a barrel.

The Visakhapatnam storage unit, built at a cost of Rs 1,038 crore, is divided into two compartments of 1.03 mt and 0.3 mt. The smaller compartment of 0.3 mt would be utilised by PSU refiner Hindustan Petroleum Corporation (HPCL), while the bigger section is meant for strategic reserves. The revised costs for the Mangaluru and Padur facilities are Rs 1,227 crore and Rs 1,693 crore, respectively, taking the total cost for the three projects to Rs 3,958 crore.

Oil prices rose on Friday after the death of Saudi Arabia’s king added more uncertainty to an oil market that has more than halved over the last six months. King Abdullah bin Abdulaziz died early on Friday and his brother Salman became king of the world’s top oil exporter. Brent crude futures were trading at $49.42 a barrel on Friday.

In 2013-14, India spent $143 billion on crude oil imports, which accounted for 32% of India’s total imports in the fiscal year. The strategic storage units are built in underground rock caverns on the east and west coasts so that they are readily accessible to the refining sector.

Source:- financialexpress.com

India Appeals To Wto Board Over Import Of Us Agri Products

India has appealed to the Dispute Settlement Board of World Trade Organisation for a panel decision on its issues with the US over agricultural imports. "WTO Secretariat received today a notice by India announcing its decision to appeal certain issues of law and legal interpretation in the panel report in the case 'India -- Measures concerning the importation of certain agricultural products'," the WTO said yesterday.

India had in 2012 imposed some prohibitions with regard to importation of various agricultural products from the US because of concerns related to Avian Influenza.

This import prohibition is maintained through India's Avian Influenza (AI) measures, mainly, the Indian Livestock Importation Act, 1898. The US contended that India's AI measures amounted to an import prohibition that was not based on the relevant international standard or on a scientific risk assessment. The dispute settlement panel ruled that India's AI measures are inconsistent with the Sanitary and Phytosanitary (SPS) agreement because they are not based on the relevant international standards.

India claims that the panel committed several legal errors in its interpretation and application of numerous articles of the SPS agreement.

Source:-moneycontrol.com

Switzerland's Gold Exports To India Cross Rs 1.2 Lakh Crore In 2014: Swiss Government

Switzerland's gold exports to India crossed Rs 1.2 lakh crore in 2014 even as concerns persist over bullion being used to channel illicit funds into the Indian shores.

The value of precious metal imported from Switzerland touched 17.1 billion Swiss francs (over Rs 1.2 lakh crore) during the 11-month period from January till November end in 2014, according to Swiss government.

Last November alone saw import of bullion worth over 2.9 billion Swiss francs (around Rs 20,000 crore) from Switzerland. In the preceding month too, gold exports from the Alpine nation remained at similar levels, latest data from the Swiss Customs Administration showed.

More than 457 kilograms of gold was exported from the Alpine nation to India during January-November 2014 period. At the end of November 2014, India remained the biggest destination for gold exports from Switzerland.

According to latest figures from the Indian government, gold imports surged over six-fold to $5.61 billion (over Rs 35,000 crore) in November.

The spike was primarily attributed to increased demand during marriage and festival season as well as easing of import curbs in November. Gold imports jumped 280 per cent to $4.17 billion in October. In September as well, the imports zoomed to $3.75 billion.

An analysis of numbers from both countries reveal that Switzerland accounted for over 60 per cent of gold imported by India.

Swiss government started publishing trade data monthly from 2014 and included information on trade partners. Data on imports and exports of gold, silver and coins was available on quarterly frequency as a separate product up to 2013 but data by trade partner was not available.

There are concerns that gold is used for 'layering' purposes to move funds from Swiss shores amid crackdown on illicit fund flows.

A new strategy of 'layering' through gold and diamond trade came to light last year at Swiss banks to thwart any attempt for identification of real beneficiaries of funds entrusted with them, government and banking sources had said.

There is a growing suspicion that a portion of gold and diamond trade is being used to route funds from Swiss banks to India and other destinations.

'Layering' is a key stage in money laundering and involves moving illicit funds around financial system through a complex series of deals to complicate the paper trail.

The Indian government has been making efforts to curb the black money menace and bring back illicit wealth stashed by its citizens in foreign jurisdictions, including Switzerland.

Source:-economictimes.indiatimes.com

Indian Rupee Opens At 61.50/Dollar, Down 8 Paise

The Indian rupee opened at 61.50 a dollar on Tuesday, down 8 paise compared to Friday's closing value of 61.42 per dollar.

Ashutosh Raina, HDFC Bank says the USD-INR currency pair has been trading in 61-62/dollar range with appreciating bias, although the strong suspected RBI intervention has capped the gains so far.

The euro held onto modest gains, bouncing off an 11-year low as investors decided to take profits on extremely bearish positions. Also the the rouble weakened as Standard & Poor's cut Russia's sovereign credit rating to junk status, bringing it below investment grade for the first time in a decade.

Source:- moneycontrol.com

ITAT directs AO to determine whether sum paid to foreign Co. for data processing services was taxabl

IT/ILT : Following order passed by co-ordinate Bench of Tribunal relating to earlier assessment year, issue as to whether amount received by assessee from providing data processing support service to an Indian bank was taxable as 'fee for technical service' was to be remanded back for disposal afresh

HC admitted winding-up against Co. as it failed to prove that it had no liability towards respondent

CL : Where appellant company had given cheques to respondent company but same were dishonoured of appellant-company failed to discharge its onus to prove that it had no liability to pay to respondent, winding up petition against it was to be admitted

Royalty paid to film producers for obtaining reproduction rights of music was revenue exp.

IT : Where assessee carried on business of reproduction of audio sound and music from master plate provided by film producers and distributors, royalty paid for obtaining rights of reproduction was allowable as revenue expenditure

Institutions set-up to provide placement services to ex-army personnel and their widows were charita

IT: Institutions set-up to provide placement services to ex-army personnel, their widows and dependents, rather than to any trade, commerce or business would not be hit by first proviso to section 2(15). This activity of general public utility would be covered by definition of charitable purpose, thus, institution was eligible for registration under section 12A.

ITAT relies on retro-amendments for taxing inter-connect charges as royalty; rejects plea of treaty

IT/ILT : Consideration paid by assessee-company, engaged in providing ILD services to its subscribers, to non-resident telecom operators, for provision of international carriage and connectivity services would fall within ambit of royalty under section 9(1)(vi)

RBI eases norms for rescheduling of ECBs; allows changes in repayment schedules umpteen times

FEMA/ILT : External Commercial Borrowings (ECB) Policy - Simplification of Procedure

No addition of undisclosed investment if there was minor difference in report of DVO and assessee’s

IT : Where there was minor difference in valuation report of DVO and assessee's valuer regarding cost of construction, addition made as undisclosed investment could not be sustained

No Seizure of chassis alleging that it would be sold by evading tax it was taken out to build its bo

CST & VAT : U.P. VAT : Where Authorised Officer intercepted a new chassis and owner told that he was taking same from Jaipur to Moradabad for getting its body built, seizure of chassis on ground that it was being taken to Moradabad for sale by evading payment of tax was patently illegal

Principal amount forgone by depositor after settlement couldn't be taxed under sec. 41(1) in hands o

IT : Balance amount which was not repaid under arrangement between assessee-NBFC and depositors after setting their claims did not constitute an income and assessee was not liable to pay tax

ITAT denied sec. 80P relief to society it was a primary cooperative bank as per Banking Regulation A

IT: Where assessee had fulfilled all three basic conditions to be regarded as a primary co-operative bank, it was a co-operative bank, and, therefore, provisions of section 80P(4) were applicable and he was not entitled for deduction under section 80P(2)(a)(i)

Payment made to casual labourers working under direct control of contractor won't attract sec. 194C

IT : Where issue relating to payments to labourers without deducting tax at source was concluded in assessment proceedings under section 143(3) and no incriminating material relating to said issue was discovered in search, Assessing Officer could not disallow said payment under section 153A on basis of change of opinion that tax was required to be deducted while making payments in question

Advance received from subsidiary-Co. to meet business liabilities wasn't deemed dividend in hands of

IT: Where subsidiary company advanced money to assessee-company to meet their business liabilities, said amount could not be deemed dividend income of assessee-company

Sum paid by assessee to its foreign parent Co. for engineering services provided via third party was

IT/ILT : Where assessee in course of rendering software development services to its parent company located abroad, made payment of engineering services availed by said parent company from another Indian company and made it available to assessee, payment so made was to be regarded as 'fee for included services'

High Court reduces pre-deposit to 10% of duty after relying upon new provision inserted by Finance A

Excise & Customs : Where demand alleging clandestine removal was confirmed on basis of electricity consumption and Tribunal ordered pre-deposit of 25 per cent of duty, considering financial position of assessee and substituted section 35F of Central Excise Act, 1944, pre-deposit was reduced to 10 per cent of duty

SC denied stay on long pending suits as respondent's claim against appellant-bank could be ensured b

RDBFI Act : Where suits filed by respondent against appellant-bank were pending since long and respondent had made a monetary claim, satisfaction of which could be ensured by an order which may be passed in recovery proceedings, application for stay of suits was to be rejected

Exp. incurred on sales which doesn't lead to any brand promotion can't be brought within ambit of 'A

IT/ILT : Expenditure incurred in connection with sales which does not lead to brand promotion, cannot be brought within ambit of advertisement, marketing and promotion (AMP) expenses for determining cost/value of international transactions

Even purchase of superstructure without transfer of rights in land would provide sec. 54F relief

IT : Assessee was entitled for section 54F deduction on purchase of share in a farmhouse though right in land on which said property was constructed was not transferred

Uttarakhand HC denies quashing of notification which blacklisted Cyprus for not sharing tax informat

IT/ILT : While exercising the writ jurisdiction under Article 226 of the Constitution of India, the High Court ordinarily should not proceed to look into as to whether informations sought by the Indian Authorities were ever declined by the Government of Cyprus or Government of Cyprus is ready and willing to supply the informations sought by the Indian Authorities. Moreover, there seems to be no valid reason to disbelieve the satisfaction so recorded by the Indian Authorities. Hence, relief

Rent received from building constructed on leasehold land is business income and not income from hou

IT : Expenditure incurred on construction of building on leasehold land should be treated as a revenue expenditure

RBI asks banks to comply with new depository scheme; prescribes form to report issue/transfer of DRs

FEMA/ILT : Depository Receipts Scheme

RBI asks banks to display interest rates and processing charges of loans on their websites

BANKING : Display of Information by Banks

Expat employees deputed to Indian group Co./LLP can receive salary in foreign currency accounts; RBI

FEMA/ILT : FEM (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000 - Remittance of Salary

Delhi High Court reads down first proviso to sec. 2(15); rescues genuine charities from its clutches

IT : The correct interpretation of the proviso to section 2(15) of the Act would be that it carves out an exception from the charitable purpose of advancement of any other object of general public utility and that exception is limited to activities in the nature of trade, commerce or business or any activity of rendering any service in relation to any trade, commerce or business for a cess or fee or any other consideration. In both the activities, in the nature of trade, commerce or business

SEBI to do away with 25% participation of shareholders for delisting when all shareholders are conta

SEBI : SEBI Board Meeting - Issuance of Partly Paid Shares and Warrants by Indian Companies; Amendments in SEBI (Issue and Listing of Debt Securities) Regulations, 2008, SEBI (Public Offer and Listing of Securitised Debt Instruments) Regulations, 2008, SEBI (Delisting of Equity Shares) Regulations, 2009, etc.

No addition of notional interest on receipt of interest-free deposit by lessor without determining f

IT: Even though the interest-free deposits received by lessor had the effect to deflate or inflate the rent agreed between the parties but AO could not make addition of notional interest in annual value of property without finding out the effect of interest free deposits and without determining the fair market rent expected to be fetched by the property under section 23(1)(a)

Interest can be demanded from importer as per terms of bond on non-fulfilment of export obligation

Excise & Customs : Though there is no provision for levy of interest under Foreign Trade (Development and Regulation) Act, 1992, but, interest may be charged as a condition of bond, which is a contractual obligation; hence, in case of non-fulfilment of export obligation as per Foreign Trade Policy, interest may be levied as per terms of Bond

Tribunal rightly remands case as AO hadn't considered every doc submitted on behalf of assessee: HC

CST & VAT : U.P. VAT - Tribunal was justified in remanding matter where 57 loose parcha submitted on behalf of assessee was not considered by Assessing Authority

No reassessment by AO to deny capital gains exemption under India-Denmark DTAA on basis of surmises

IT/ILT : No reassessment where reasons recorded for reopening fell in realm of surmises to deny capital gains exemption under India-Denmark DTAA

Interest on purchase duty would be deductible on payment basis under sec. 43B, rules High Court

IT : Provision of section 43B are applicable to interest payable on purchase duty

Exp. incurred on construction of storage shed on leasehold land was revenue exp.

IT : Expenditure incurred by assessee on construction of storage sheds on leasehold land is revenue in nature

RBI revises conditions for overseas direct investment by Indian firms

FEMA/ILT : Review of Overseas Direct Investments by Proprietorship Concern/unregistered Partnership Firm in India

Payment to casual labours through senior workman would not attract sec. 194C TDS

IT : Payment made to casual labourers through senior workman was not liable to TDS under section 194C

Detention order vitiated when authority didn't supply docs to petitioner on basis of which detention

COFEPOSA : Non-supply of vital documents which were considereed by detaining authority while passing detention order vitiated detention order passed against petitioner

India Asks Refiners To Cut Iran Oil Imports Ahead Of Obama Visit

India has asked its refiners to slash oil buys from Iran in the next two months to keep the imports in line with the previous fiscal year's levels, sources with knowledge of the matter said, days ahead of US President Barack Obama's visit to New Delhi.

India has raised its crude shipments from Iran around 40 percent over the first nine months of the current fiscal year, when as part of the temporary deal that eased some sanctions on Tehran it was meant to hold them steady.

India and the United States will discuss the status of the Iran nuclear negotiations, Ben Rhodes, deputy national security advisor in the White House told reporters in a teleconference detailing Obama's visit.

India's higher imports from Iran would also be on the agenda, the two sources in India said.

"The refiners will have to virtually halt Iranian oil imports in February-March to retain purchases at last year's levels," said one of the sources with knowledge of the matter. The sources did not want to be named because of the sensitivity of the issue.

India's imports from Iran rose 41 percent to 250,200 bpd in April-December compared with the same period a year ago, according to tanker arrival data made available to Reuters.

One of the sources said India's federal oil ministry told Essar Oil, Mangalore Refinery and Petrochemicals Ltd and Indian Oil - the only Indian companies that buy from Iran - to cut imports.

Iran and six major world powers will meet next month to narrow differences over Tehran's nuclear programme after making limited progress earlier in January to clinch a full blown deal by June 30 deadline.

MRPL and Essar declined to comment on any requests to cut purchases from Iran. IOC's finance head did not respond to phone calls.

Source:- thedailystar.net

Honda Imports A Unit Of Pcx 150 In India

The premium end of scooter segment initiated by a slew of Piaggio Vespas is likely to get even more livelier. After Hero previewed its 157cc ZIR at the Auto Expo 2014 and Mahindra-Piaggio alliance about to bear its fruit in Indian market with a couple of premium scooters, its the turn of Honda to respond. In an answer to a rising competition, Honda has silently imported a unit of PCX 150 in India, which is one of the premium scooters it sells in the European markets.

The Honda PCX 150 is a full-sized scooter, which is based on the PCX 125 showcased by Honda during the Auto Expo 2014. It comes with a four-stroke, single-cylinder, fuel-injected, 153cc engine, which churns out 13.5PS of power and 14Nm of torque, through a V-Matic CVT transmission. Apart from an appealing European design, the PCX 150 also incorporates some thoughtful features such as front and rear LED lights, 14-inch alloy wheels, steeped seat and a 12V power socket in the under-seat storage compartment.

Though the reasons of Honda importing the scooter are still unknown, there are strong possibilities that Honda will be testing the PCX 150 either for R&D purposes within their technical center or for testing it on the Indian roads to judge its feasibility on the Indian tarmacs. If launched in India, the PCX 150 will be priced in the range of Rs. 70,000 to 80,000. Currently, Piaggio is the sole player in the premium scooter segment, with a portfolio comprising of Vespas, such as Vespa LX125, Vespa VX125 and Vespa S.

Source:- indianexpress.com

India Imports 654,000 Tonnes Of Scrap

The scrap imports by India during the month of October last year increased considerably when compared with the previous month.

The scrap imports stood higher when matched with same month the previous year. However, the cumulative scrap imports by the country during initial ten-month period of the year were slightly down over the previous year.

According to trade data, India imported 654,000 tons of scrap during October 2014. This is nearly 25% higher when compared with the imports of 523,200 tons during the previous month. The scrap imports during the month almost doubled when compared with the imports during Oct ’13. The country’s exports have surged by nearly 95% over the year in Oct ‘14.

In Oct ‘14, the UAE was the main exporter of scrap to India. The scrap imports from the UAE totaled 275,000 tons, accounting for over 42% of the total imports by India during the month. The scrap imports from the UAE were up nearly 5.7 times when compared with the same month a year ago.

The second largest source of scrap imports by India was South Africa. The scrap imports from South Africa during Oct ’14 totaled 83,000 tons, up by over 60% when compared with the previous year. The scrap imports from South Africa constituted 13% of Indian imports.

Source:- customstoday.com.pk

HC deletes penalty as no intention to evade taxes could be gathered from accompanied challans and bo

CST & VAT : U.P. VAT - Where transported goods were duly recorded in books, it was accompanied with challans and there was no intention to evade payment of tax, no penalty could be imposed

Unit set-up with new PAN and separate SSI registration with investment higher than existing unit was

IT : Where assessee's new unit had different registration number, PAN and customers and its investment in plant and machinery was much higher than existing unit, it could not be said that new unit was formed by splitting up existing undertaking so as to deny deduction under section 80-IC

Sum paid to Employees Association for construction of 'Shamiana' would be donation and not business

IT : Amount paid to Employees Welfare Association for construction of Kalyan Mandapam is donation, there being no proof of having paid for more efficient and contended labour force

Rupee Trades Higher At 61.41 Per Dollar

The Indian rupee on Friday strengthened sharply in the opening after the European Central Bank (ECB) announced larger than expected measures to stimulate the region’s sagging economy.

The local currency opened at 61.45 per dollar and touched a high of 61.37—a level last seen on 5 November. At 9.12am, the rupee was trading at 61.41 per dollar, up 0.47% from its previous close of 61.71.India’s benchmark equity index, BSE Sensex, was trading at 29,187.93 points, up 0.63%.

Asian currencies were trading higher against the dollar. The Taiwan dollar was up 0.45%, Indonesian rupiah 0.30%, South Korean won 0.24%, Malaysian ringgit 0.22%, Philippines peso 0.18%, Singapore dollar 0.17%, Japanese yen 0.12%.

ECB president Mario Draghi announced an expanded stimulus plan and kept benchmark interest rates at record lows, boosting speculation flows of foreign capital into emerging-market assets will increase. The ECB will buy €60 billion worth of assets per month, more than markets had been hoping for, in a program that will last through September 2016, Reuters reported.

The yield on India’s 10-year benchmark bond stood at 7.693% compared with its Thursday’s close of 7.714%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has strengthen 2.66% against the dollar, while foreign institutional investors have bought $782.5 million during the period from local equity markets and bought $2.36 billion from debt markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.175, up 0.1% from its previous close of 94.077.Dealers likely to be cautious ahead of extra long holiday ahead. The markets are closed from Saturday to Monday.

Source:- livemint.com

Assessee had to pay CST as sale wasn't a high seas sale since bill of entry included his name instea

CST & VAT: CST - Where assessee filed his central sales tax returns before Commercial Tax Officer of circle and thereupon said officer passed assessment orders and assessee filed writ contending that assessment orders were without jurisdiction in absence of any authorisation from Deputy Commissioner authorising said officer to take up assessment under Central Act, above officer was empowered to assess assessee under Central Act

ITAT unhappy with casual attitude of CIT in making revision on grounds not mentioned in show cause n

IT : Where show cause notice to assessee issued by CIT u/s 263 set out grounds for revision as 'inadmissible deductions', revision order cannot be made by CIT on the grounds of 'lack of proper inquiries' by AO. A revision order can only be, made on the ground on which assessee has been given a reasonable opportunity of being heard. It is not open to the CIT to set out one reason for revising the order in show cause notice but actually revise the order on some other ground

Not-ordinarily Resident is liable to pay tax on 'ESOPs' which are attributable to services rendered

IT/ILT : Where assessee, having residential status of 'resident but not ordinarily a resident' received certain amount as Stock Option Transfer Proceeds (SOTP) from its employer company namely 'Microsoft' for rendering services partly in India and partly in USA, only that portion of SOTP was taxable in India which was attributable to services rendered in India

HC allowed deduction of sales tax even when net profit was estimated after rejection of accounts

IT : Even in case of rejection of accounts and estimate of net profit, deduction towards sales tax payment could be allowed

Renting of a building for a hotel isn't liable to service tax

Service Tax : Renting of buildings used for purpose of accommodation including hotels, meaning thereby, renting of a building for a hotel, is not liable to service tax under 'Renting of Immovable Property Services'

Issue whether Tribunal can examine merits of review order permitting file of appeal is referred to l

Service Tax : Issues : (a) whether Tribunal can examine application of mind on merits by Committee; (b) if yes, decision of Committee would be void, if they have appended signatures to notes and objections prepared by subordinate officers, referred to larger bench of Delhi High Court

Capital gain was leviable on distribution of asset on dissolution of firm even if asset wasn't in na

IT: Transfer of legal title in name of assessee-firm is not essential to hold that assessee-firm is owner of those assets if such assets are transferred by a partner of firm

CBEC to curb practice of its officers of issuing Excise/ST summons in casual manner

ST LAWS/EXCISE & CUSTOMS LAWS : Section 14 of the Central Excise Act, 1944 - Power to Summon Persons to Give Evidence and Produce Documents in Inquiries under This Act - Instructions for Issue of Summons in Central Excise and Service Tax Matters

CBEC to curb practice of its officers of issuing Excise/ST summons in usual manner

ST LAWS/EXCISE & CUSTOMS LAWS : Section 14 of the Central Excise Act, 1944 - Power to Summon Persons to Give Evidence and Produce Documents in Inquiries under This Act - Instructions for Issue of Summons in Central Excise and Service Tax Matters

No dependent agency PE under India-France DTAA when transactions between agent and principal were ma

IT/ILT : If it is not shown that transactions between agent and principal were not made under arm's length conditions, he will not be considered as agent of French principal within meaning of Para 6 of Article 5 of DTAA between Indian and France

Commissioner (A) rightly granted interim stay after viewing factual position and having detailed dis

CST & VAT : Kerala VAT - Where Assessing Authority raised huge tax demand upon assessee and First Appellate Authority after considering factual position and detailed discussion granted interim stay subject to satisfaction of 30 per cent of disputed liability, impugned order did not call for interference

Unabsorbed losses or depreciation spread over block period couldn't be adjusted against undisclosed

IT : Unabsorbed loss or carried forward depreciation spilled over block period shall not be adjusted against undisclosed income

HC upheld penalty on firm for receiving cash loan exceeding Rs. 20,000 in guise of capital contribut

IT : Where cash received in excess of Rs. 20,000 was loans and not capital contribution by partners, penalty to be levied

Cement used as construction material for roof of mining area isn't 'input'; ineligible for credit

Cenvat Credit : Cement used as construction material to provide safety to roof of mining area cannot be regarded as 'input' and is not eligible for Cenvat Credit

Tribunal can't comment upon validity of provisions of Act/Rules

Excise & Customs : Tribunal, being a creature of statute, cannot go into vires of provisions of Central Excise Rules, 2002

No denial of trust registration to single entity even if its name indicated existence of cluster of

IT: Where assessee had complied with all conditions necessary for grant of registration under section 12AA and since assessee was only a single entity but consisted of different colleges/institutions, operating under such single entity, assessee company was to be granted registration under section 12AA

Disclosure of inflated stock for getting higher CC limit from bank leads to sec. 69C addition as une

IT : Difference of closing stock appearing in books and higher amount of closing stock provided to bank in order to release of payment by bank from cash credit account, was to be added in income

HC sets aside penalty on director as he wasn't in-charge of Co. at time of commission of offence

FEMA : Order imposing penalty upon appellant-director for contravention of section 8 of FERA was set aside when appellant was not a director incharge of company at relevant time when offence was committed

ITAT sets aside TP addition as comparable chosen by TPO didn't satisfy ratio of 25% of employee cost

IT/ILT :Where TPO made addition to assessee's ALP in respect of software development services, since four comparables selected by TPO failed filter of 25 per cent employee cost to revenues applied by TPO himself, impugned addition was to be set aside

India To Put Restrictions On Import Of Us Chicken Legs

India is set to tighten norms for imports of American chicken legs by proposing to keep out frozen chicken older than six months and those that have consumed hormones or genetically modified feed as the country prepares to contest a WTO order to lift a ban on purchases of US poultry.

The new standards, which may kick in within six months, could offer some protection to the growing domestic poultry industry from competitively priced American chicken legs.

While the Indian industry will also have to meet these food safety norms, being brought in as part of the government's quality initiative, it has an advantage since it largely consists of fresh poultry and does not rely on GM feed.

The World Trade Organization asked India in October to lift a ban on American chicken, imposed on account of avian influenza in 2007, calling it 'unscientific' and non-compliant with the global trade body's rules.

India will challenge the WTO order in the appellate body in a couple of days, citing domestic food safety concerns.

The new import norms are being prepared by the Food Safety and Standards Authority of India in consultation with the department of commerce and the department of animal husbandry, dairying & fisheries.

"We are working out standards for poultry and are discussing banning the sale of chicken older than six months. Also, poultry must not be fed with genetically modified feed, growth hormones and antibiotics," a government official said. US frozen chicken legs are stored for about four to five years and its poultry consume growth hormones and GM feed, a significant concern in India.

FSSAI has put out a draft order for meat and poultry products, inviting public comments. It has proposed that poultry birds should not be given feed containing meat, bone and blood. Besides, the use of antibiotics in feed and growth hormones will not be allowed.

It also said that slaughtering or processing of bovine meat will be prohibited where poultry meat is produced for human consumption. "The order will come into effect from July 2015," FSSAI said in the draft order.

US consumers prefer chicken breasts and the less-favoured legs are frozen for export to other markets at highly competitive prices. Chicken legs, which are popular in India, are priced locally at about Rs 150-170 per kg, while the US sells them at Rs 40-50 per kg.

The FSSAI will work with the department of animal husbandry to modify health certificates for meat and poultry sold to India.

"It will require competent authority of the exporting country to provide certifications to India in compliance with requirements to allow for placing of meat and poultry in Indian market," it said in the draft order.

More than 20 countries, including members of the EU, South Korea and South Africa, have imposed curbs on poultry from certain US states or the entire country. China halted imports of US poultry and eggs after an avian flu strain was detected in the Pacific Northwest. The EU banned US chicken on account of chlorine treatment.

Source:- economictimes.indiatimes.com

India’S Cut And Polished Diamond Exports Drop Marginally In December

In December 2014, India’s performance in exports of its cut and polished diamonds recorded a minor dip of 0.03 percent to US$ 1.451.75 million (US$ 1,452.20 million in December 2013). In volume terms the said exports were at 1.98 million carats from 2.04 million carats in December 2013, reports say.

Gold jewellery exports dropped 0.55 percent in December 2014.Rough diamond imports declined 13.4 percent, to US$ 1,431.18 million, from US$ 1,652.53 million. The volume of rough diamond imports dropped from 17.19 million in December 2013, to 14.06 million in December 2014.

India’s gross exports of all gem and jewellery products indicated a small 1.65 percent increase over December 2013, reports say.

Source:- diamondworld.net

Exercise Caution In Summoning Ceos Cbec To Excise Officials

CBEC has asked excise and service tax officials to exercise caution while summoning CEOs and top functionaries of large firms or PSUs for probing any revenue cases.

Summons should be used “as a last resort when it is absolutely required,” said a communication by Central Board of Excise and Customs (CBEC) to tax officials.

The circular has been issued to discourage the practice of issuing summons to top officials of companies in a “routine manner” to call for material evidence and documents.

"Senior management officials such as CEO, CFO, General Managers of a large company or a PSU should not generally be issued summons at the first instance.

“They should be summoned only when there are indications in the investigations of their involvement in the decision making process which led to loss of revenue,” it said.

Power of issue of summons are generally exercised by officials of ranks of Superintendent, though higher officers also issue summons.

“Summons by Superintendents should be issued after obtaining prior written permission from an officer not below the rank of Assistant Commissioner with the reasons for issuance of summons to be recorded in writing,” the circular added.

Earlier, the Ministry had asked Income Tax officials to be polite to assessees and not to make them wait unnecessarily in tax offices.

The Income Tax department had recently asked for holding of public meetings every Wednesday to resolve taxpayers grievances and tax issues as part of the ‘Good Governance’ initiative mooted by Prime Minister Narendra Modi.

Source:- tkbsen.in