Interest rate of Sukanaya Scheme and 5 Year Senior Citizen Saving Scheme increased by 0.1% w.e.f. Ap

IT : Small Savings Schemes – Interest Rate on – Revised Rates of Interest Applicable on Specified Small Savings Scheme Effective from 1-4-2015

HC dismissed winding-up plea as Co. was solvent and giving livelihood to more than 6,000 employees

CL: Petition filed by petitioner, being a trustee of bond-holders, for winding up respondent-company could not be admitted as respondent-company was working and giving direct source of livelihood to more than 6,000 employees and its assets were more than its liability and even if debt was admitted, bona fide of respondent-company to revive same and pay of debts could not be doubted

Assessee couldn't claim cost against revisional order passed by CIT, even though such order was unsu

IT : An assessee is entitled to depreciation on assets entire amount of which has been claimed as deduction on account of application for charitable purposes

Penalty imposed under VAT Act without assigning any reasons was liable to be set aside

CST & VAT : Assam VAT - Where Assessing Authority had imposed penalty upon assessee under section 90 and no reasons had been assigned as to why penalty had been imposed, penalty order was liable to be set aside

Now banks can use 50% of counter-cyclical provisioning buffer held as on Dec 31, 2014 for making pro

BANKING : Utilisation of Floating Provisions/Counter Cyclical Provisioning Buffer

CBDT opens window for roll back requests for another 3 months for existing APAs or pending applicati

IT/ILT : Section 92cc of The Income-Tax Act, 1961 - Advance Pricing Agreement (Apa) – Clarification On Applications And Agreements Filed Or Entered Into Prior To 1-1-2015

I-T Dept. issues list of 18 tax defaulters who are either not traceable or have no assets; total arr

IT/ILT : List of Defaulters of Income /Corporate Tax

Only software sold via internet is liable to service tax and software sold on a media doesn't attrac

Service Tax : Software sold electronically through internet is liable to service tax; but, software sold after loading same on physical media is 'goods' and not liable to service tax

SC: Profit derived from business of captive generation of power was deductible from book profits for

IT: Where assessee was mainly engaged in manufacture and sale of urea and was additionally engaged in captive power generation, profits derived from captive power plants were to be reduced from book profits for determining tax payable for purposes of section 115JA

AO to determine unexplained income on basis of highest peak of debit/credit on seized dairy, directs

IT : Where Assessing Officer did not consider explanation tendered by assessee regarding transactions recorded in seized diary and also overlooked working of peak credit given by assessee, income was directed to be determined on basis of highest peak of unexplained receipts and payments

HC directs AO to pass order on merits as assessment order was passed without giving hearing chance t

CST & VAT: Tamil Nadu VAT - Where Assessing Authority passed assessment orders under section 27 without affording opportunity to assessee, Assessing Authority was to be directed to pass orders on merits after providing opportunity of personal hearing to assessee

AO couldn’t treat exp. on launching of brand as deferred revenue exp. if it was in nature of revenue

IT : Where assessee follows mercantile system of accountancy, expenses due and payable are to be allowed, as an expenditure is not confined only to money actually paid towards a liability, but also covers a liability accrued, although discharge could be at a future date

Assessee was allowed to cross-examine witness who had certified serving of notice by affixing it on

Excise & Customs : Where department claims that notice/order was served by pasting on premises of assessee under a mahazar and assessee challenges that witnesses affixing their signatures on mahazar were not residents of that area, then, assessee may be granted an opportunity to cross-examine witnesses

Financial hardship need not be considered in stay application if case was against revenue as per Sup

IT : Where assessee raised plea that it being an agent of State Government its income was not taxable in view of article 289 of Constitution, unconditional stay would be granted pending disposal of appeal before Commissioner (Appeals)

No penalty on taking wrong credit under bona-fide belief which was formed due to interpretation of H

Cenvat credit : Even if assessee has taken credit wrongly in contravention of statutory provision but if same was with a bonafide reason or belief by interpretation of a judgment of a High Court, same does not amount to intention to evade and, therefore, penalty under rule 15(2) of CENVAT Credit Rules, 2004 cannot be levied

Market interest rate applicable to currency in which loan is repayable to AE has to be used to compu

IT/ILT : The arm's length interest rate for loan to overseas subsidiary should be computed based on the market determined interest rate applicable to the currency concerned in which the loan has to be repaid. Interest rates should not be computed on the basis of interest payable on the currency or legal tender or the place or country of residence of either party. There is no justification or cogent reason for applying PLR which is applicable to loans in Indian rupee for outbond loan from Indian

Special Courts can try all offences under IPC and Companies Act based on same transactions or facts

IT/ILT : The arm's length interest rate for loan to overseas subsidiary should be computed based on the market determined interest rate applicable to the currency concerned in which the loan has to be repaid. Interest rates should not be computed on the basis of interest payable on the currency or legal tender or the place or country of residence of either party. There is no justification or cogent reason for applying PLR which is applicable to loans in Indian rupee for outbond loan from Indian

AO to determine unexplained income on basis of highest peck of debit/credit on seized dairy, directs

IT : Where Assessing Officer did not consider explanation tendered by assessee regarding transactions recorded in seized diary and also overlooked working of peak credit given by assessee, income was directed to be determined on basis of highest peak of unexplained receipts and payments

Co. engaged in development of software isn't comparable to a Co. rendering related development servi

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering software development services, to its AE, in view of fact that some comparables selected by TPO were improper on account of their high turnover whereas in case of other comparables there was functional difference as they were engaged in developing software products, impugned addition was to be set aside and, matter was to be remanded back for disposal afresh

Special Courts can try all offences under IPC and Companies Act based on same transactions or facts

CL : Special court to try all offences under IPC & Companies Act based on same transaction or facts

Tribunal rightly denied consideration of fresh docs at interim stage as assessee failed to submit it

Service Tax : Where Tribunal denied consideration of fresh documents at interim stage and directed that same would be considered only at time of final hearing, said order of Tribunal was valid

AO directed to pay cost to assessee as inordinate delay in release of vehicle instigated mental tort

CST & VAT : West Bengal VAT - Where Authorised Officer had detained vehicle of assessee along with goods loaded therein on 7-9-2012 and declined to release vehicle and thereafter Tribunal by order dated 17-10-2012 directed Authorised Officer to release vehicle after unloading of goods, since assessee had to undergo mental agony and sufferings for month together, Authorised Officer was to be directed to pay Rs. 10,000 by way of cost to assessee

No penalty if assessee had wrongly claimed sec. 80-IB deduction without concealing particulars of in

IT: Where assessee's claim for deduction under section 80-IB in respect of SSI unit was denied on ground that it was a case of reconstruction of business, it could not be a ground to impose penalty under section 271(1)(c) taking a view that deduction was wrongly claimed

Info downloaded from internet doesn't prove that BCCI abused its dominance in granting franchise rig

Competition Act : Where Commission recorded findings that BCCI had abused its dominant position in contravention of section 4(2)(c) relying on information downloaded from net and similar other material, same were legally unsustainable, as such information did not have any evidentiary value without proof and same could not have been relied upon by Commission without giving an effective opportunity to appellant to controvert same

In best judgment assessment, income has to be computed on basis of net profit rate instead of Gross

IT : While making best judgment assessment, assessee's taxable income from business would be computed on basis of net profit rate shown by assessee in immediate preceding year and not based on gross profit rate of said year

Sum received by private Cos. from members/directors prior to April 1, 2014 not to be deemed as depos

COMPANIES ACT, 2013 : Section 74 of the Companies Act, 2013 - Repayment of Deposits, Etc., Accepted before Commencement of This Act – Amounts Received by Private Companies from Their Members, Directors or Their Relatives before 1-4-2014 – Clarification on Applicability of Companies (Acceptance of Deposits) Rules, 2014

CBEC allows e-payment of service tax till midnight of March 31, 2015

ST LAWS : Extension of e-payment Deadline and of Banking Hours

India Rejects Bp's Application For Selling Jet Fuel

The official said BP's $477 million investment since entering in 2011 included both capital and operating expenditure, mostly in its partner Reliance Industries' offshore blocks, including the flagging KG-D6 in Krishna Godavari basin.

The government has rejected BP's application for selling ATF, saying its expenditure in India so far does not qualify it to get a fuel retailing license, but has allowed it to apply afresh with more details.

The Petroleum Ministry, earlier this month, wrote to Europe's second-largest oil company, saying its USD 477 million investment in India till date does not qualify it to begin selling jet fuel to airlines, a senior Oil Ministry official said.

A license to retail any of the transport fuels -- petrol, diesel or aviation turbine fuel (ATF) -- is contingent upon a company investing or proposing to invest Rs 2,000 crore in oil and gas exploration and production (E&P), refining, pipelines or terminals within 10 years.

The official said BP's $477 million investment since entering in 2011 included both capital and operating expenditure, mostly in its partner Reliance Industries' offshore blocks, including the flagging KG-D6 in Krishna Godavari basin.

To qualify for a fuel retailing license, an entity should have made capital investment of Rs 2,000 crore or $500 million, in line with the 2002 fuel retailing guidelines. BP's $7.2 billion spending in buying 30% stake in 21 exploration blocks of RIL is not being considered as capital investment, he said.

He added that the letter clearly states that BP can make fresh application detailing future investments to qualify for an ATF license. When contacted, BP spokesperson said, "BP has been continuously engaging with the Ministry of Petroleum and Natural Gas regarding the licensing application and we are confident of meeting the requirements. We will continue to work closely with government authorities and urge them to review the decision."

The company had, in January 2014, made the second application to start operations of Air BP, its aviation arm that sells ATF to airlines at airports. It is keen to enter the booming aviation market in Asia's third-largest economy. Jet fuel demand is expected to rise by 3-4% annually over the next few years.

After BP's application, the then Oil Secretary Vivek Rae had stated that BP was "looking at marketing of aviation turbine fuel (ATF). BP was not interested in auto fuel retailing (setting up petrol pumps) in the country.

Rae had said that ATF sale was deregulated in April 2002 and any company which is able to tie-up logistics can enter the sector. While jet fuel bunkering at most of the airports in the country is owned and controlled by state-run firms, refuelling infrastructure at new airports, built by private firms, is bid out and allows third party to access the infrastructure.

"BP can either buy ATF from local refineries like Reliance Industries or can import. That is not an issue," Rae said. Third party access to storage and refuelling infrastructure at airports would allow access to BP but the challenge would be to arrange for logistics to carry the fuel from refinery or port of import to the airport because unlike state-owned firms, BP does not own pipelines to transport it.

In 2002, India had allowed private companies to enter into fuel retailing, subject to minimum investment criteria. Reliance Industries, Essar Oil and Royal Dutch Shell got licences and opened petrol pumps.

However, RIL shut pumps and other companies went slow on expansion as the government gave huge subsidies to state-owned firms, practically making it impossible for private companies to compete. After the government deregulated diesel prices in October 2014, private firms have again begun fuel retailing.

Source:dnaindia.com

India Containerized Shredded Scrap Import Prices Up; Aluminium Scrap Prices Remain Flat

Indian containerized shredded scrap import prices advanced during last week, while Indian aluminium scrap prices remained flat.

According to The Steel Index, containerized shredded scrap prices for Indian imports rose by $4 last week to $290 a ton CFR Nhava Sheva.

The modest price rise can be attributed to both limited scrap supply to India and a feeling that unless Chinese mills lower their billet prices further then scrap has reached the bottom.

Further price rises pushed for by suppliers have been resisted by the market this week, with buyers citing poor finished steel product demand in India and the inevitable slowdown in construction that will accompany the June monsoons.

As per the Scrap Register Price Index, scrap prices for Aluminium Accessories, Aluminium ingots, Aluminium Rod Company, Aluminium Rod Local, Aluminium Sheet cutting, Aluminium utensil, Aluminium Wire remained flat during last week.

Source:metal.com

Raw Cotton Export Falls By 15 Percent In 8Mfy15

The country's raw cotton export fell by 15 percent during the first eight months of the current fiscal year (FY15) mainly due to lower demand and quality issue. Traders said that despite lower cotton prices compared to other competitors, Pakistan's raw cotton was unable to capture the world market.

Pakistan is the fourth largest cotton producing country in the world and has so far achieved a bumper of 14.7 million bales during this season. "Depreciation of dollar against Pak Rupee and lower prices in the world market have largely contributed to decline in cotton exports," said Ihsan Ul Haq, a leading cotton trader.

He said that quality or contamination was another major issue, which was hitting the country's cotton exports. "We can earn millions of dollars foreign exchange by producing quality cotton," he added.

He informed that cotton prices in India were increasing gradually, as Cotton Corporation of India (CCI) had not released the procured cotton. The rising Indian cotton prices would provide an opportunity to Pakistani traders to capture the international market as the country's commodity was still economical compared to India's, Haq said. Talking about domestic production, he said that Pakistan was likely to achieve all time high cotton crop of 14.9 to 15 million bales this year. "Current cotton season will end on April 30, after which final production statistics will be released," he added.

According to official statistics the country's cotton exports have declined by 15 percent or $23.75 million during the first eight months of FY15. The country has exported raw cotton amounting to $139.34 million during July-February of FY15 as compared to $163 million in corresponding period of the last fiscal year.

On Month on Month basis, raw cotton export has posted a decline of 64 percent in February 2014. The country's raw cotton export stood at $6.7 million in February 2015 as against some $18.9 million during January 2015.

"Although, Pakistan is losing millions of dollars foreign exchange due to decline in cotton export, however on the other side it is good for the domestic industry as we believe that this will ensure proper supply of raw material to the local textile industry, besides maintaining commodity prices at a reasonable level," Haq said.

Source:brecorder.com

Lift Ban On Shark Fin Export: Seai

The Seafood Exporters’ Association of India wants the recently-imposed ban on shark fin exports lifted.

The notification by Director General of Foreign Trade (DGFT) banning shark fin exports is “counterproductive and greatly affects the livelihood of the economically backward fishing communities living along both the East and West Indian coastlines”, said a statement issued by the Association here.

The order reflects apprehensions of environmentalists that shark population is fast depleting because of they are being caught just for their fins. However, the case with Indian fishermen is different. In India, shark is not a focussed fishery and is a by catch along with other fishes like king fish and tuna. The meat is salted and sold. Hence, shark is a decisive component for making fishermen activities economically viable, the seafood exporters have argued.

Figures from Central Marine Fisheries Research Institute show that shark catch along the East and West coasts of India has remained more or less steady over the past 20 years. Indian shark resource can be declared sustainable, the seafood exporters have claimed to back their demand for a lifting of the ban.

They have also said that the ban had been brought without any prior notice and that exporters have commitments and large stocks ready for shipment.

Source:thehindu.com

Discount allowed by ONGC to Oil Marketing Cos. for sale of petroleum products would not form part of

CST & VAT : Gujarat VAT - Where assessee for first quarter of April, 2014 to June, 2014 had given discount to Oil Marketing Companies on sale of its petroleum products as directed by Government of India in its letter dated 27-8-2004 by way of credit note dated 13-9-2004, amount of discount would not form part of sale price

Retracted statement of assessee, regarding benami concerns won’t invite addition in absence of any e

IT: Merely on basis of admission that few benami concerns were being run by assessee, assessee could not be subjected to addition when assessee retracted from such admission and revenue could not furnish any corroborative evidence in support of such admission

Govt. announces setting-up of two additional benches of AAR at NCR and Mumbai

IT/ILT : Section 245-O of the Income-Tax Act, 1961 – Authority for Advance Rulings – Creation of Two Additional Benches of Authority for Advance Rulings (Income Tax) at Specified Places

RBI asks banks to provide details of tax collections from April 1 to 3, 2015

IT/E&C/BANKING : Scheme for Collection of Dues of (I) Central Board of Direct Taxes (II) Central Board of Excise and Customs (III) Departmentalised Ministries Account – Furnishing of Statement of Residual Transactions - Financial Year 2014-15

Rs 628.2 Million Tax Received In 15 Days On Imports From India

Pakistan has imported items worth Rs 1.48 from March 1 to March 15 of the current fiscal year from India via Wagha border, while total tax to the tune of Rs 628.2 million was collected during the period.

As per the details available with Customs Today, Pakistan imported tomatoes, garlic, polyethylene, cotton and rolling machinery from India. Pakistan imported 3,709,901kg tomatoes worth Rs 173 million, while Rs 10.5 million was generated by getting income tax on the import.

On the other hand, garlic is also a big import from India and during the fifteen days of March, 755,188kg garlic was imported, while income tax collected from the import of garlic was Rs 4.73 million.

According to details, Pakistan imported 1,044,618kg fruits (HS code 709-6000) from India in 15 days, while Rs 3.79 million was generated as income tax on fruits.

Pakistan has imported 11,600 tonne soya and other relevant products from India worth Rs 613 million. The government collected Rs 3.22 million as sales tax, Rs 6.9 million as additional sales tax and Rs 25 million as income tax.

Pakistan imported polyethylene worth Rs 65 million, while the sales tax collected on poly ethylene was Rs 117.2 million, while Rs 1.6 million as income tax was also collected. Pakistan also imported carbon dioxide, machinery and a number of other items from India through Wagha border.

As a whole, on imports worth Rs 1.48 billion, Pakistan collected Rs 489 million as duty, Rs 74.3 million as sales tax and Rs 64.9 million as income tax.

Source:customstoday.com.pk

Rupee Weakens Against Dollar To 62.63

The Indian rupee on Monday weakened against the dollar in afternoon trading, tracking losses in the Asian currencies market. At 2.17pm, the home currency was trading at 62.63, down 0.22% from the previous close of 62.42. The local unit opened at 62.59 per dollar.

“As long as the Middle East continues to be a little volatile, there will be some pressure on the Asian currencies as oil prices may change drastically. Moreover, as we are nearing the end of the financial year, traders will be cautious,” said Harihar Krishnamoorthy, treasurer, First Rand Bank.

On Sunday, Retuers reported that Arab leaders at a summit in Egypt announced the formation of a unified military force to counter growing security threats from Yemen to Libya, and as regional heavyweights Saudi Arabia and Iran engage in sectarian proxy wars.

Major Asian currencies were trading lower against the dollar. The Malaysian ringgit was down 0.87%, Japanese yen was down 0.54%, Singapore dollar was down 0.35%, Indonesian rupiah was down 0.15%, South Korean won was down 0.15%, Taiwan dollar was down 0.15%. The China renminbi was up 0.13%

As fiscal year is closing, the traders are cautious with the next week getting shortened with mere two market working days—30 March and 31 March. Bank transactions will not happen on 1 April due to annual closure of accounts while 2 and 3 April will be bank holidays for Mahavir Jayanti and Good Friday, respectively. To add to their woes, the markets will be closed on 4 and 5 April due to weekly holidays.

The Sensex equity index rose 1.55%, or 424.92 points, to 27,883.56 points. The yield on India’s 10-year benchmark bond was trading at 7.756% compared with its Friday’s close of 7.777%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has gained 0.6%, while foreign institutional investors have bought $5.77 billion from local equity and $6.88 billion from bond markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.724, up 0.45% from the previous close of 97.291.

Source:livemint.com

NBFCs to have net owned funds of 2 crores to commence business of non-banking financial institution

NBFCs/INDIAN ACTS & RULES : Revised Regulatory Framework for NBFCs

SEBI announces guidelines for International Financial Service Centers

SEBI/INDIAN ACTS & RULES : SEBI (International Financial Services Centres) Guidelines, 2015

CBDT reminds CIT about his responsibility to give assistance to Departmental Counsel

IT : Section 260A of the Income-Tax Act, 1961 - High Court - Appeal to – Responsibility of Cit to Give Assistance to Deparment Counsels Pursuant to Instruction No.7/2011 [F.No.279/Misc./M-42/2011-ITJ], Dated 24-5-2011

Departmental Counsels to obtain info demanded by Court from concerned CITs; CBDT reiterates

IT : Section 260A of the Income-Tax Act, 1961 - High Court - Appeal to – Responsibility of Standing Counsel in Communicating Court's Decision

IT CBDT reminds CIT about his responsibility to give assistance to Departmental Counsel

IT : Section 260A of the Income-Tax Act, 1961 - High Court - Appeal to – Responsibility of Cit to Give Assistance to Deparment Counsels Pursuant to Instruction No.7/2011 [F.No.279/Misc./M-42/2011-ITJ], Dated 24-5-2011

CBDT directs Chief CIT(TDS) to take follow-up actions with banks for deposit of TDS of March, 2015

IT : Monitoring of Budget Collections – Follow up of TDS to Be Paid by Banks

Gain arising from sale of land was taxable in hands of individual even if it was wrongly shown as in

IT : Where HUF wrongly showed capital gain on sale of land in hands of it while land was property of individual and not property of HUF, capital gain would not be income of HUF

Forex gain on export would be deemed to be derived from industrial undertaking for computing sec. 80

IT : While computing deduction under section 80-IA exchange rate difference should be treated to be derived from industrial undertaking whereas duty drawback should not be treated as derived form Industrial Undertaking

HC treated foreign gift as income from undisclosed sources as donor denied transfer of any amount as

IT : Where there existed no strong relationship between donor and donee and doner had not gifted any amount to any other person, foreign gift was to be treated as income from undisclosed source

Profit earned on sale of land by converting it into non-agricultural land on regular basis was busin

IT-I : Where assessee having purchased agricultural land, converted same into non agricultural land and sold same within a short span of time on regular basis to companies in which he was a director, income earned by assessee from said activity was taxable as 'business income'

India Looking At Lowering Lng Imports From Qatar

In an interesting development, India is weighing the option of cutting natural gas import volumes from Qatar under its long-term contract.



Multiple sources said that with gas prices in the spot market being lower by almost $6 a unit (gas is measured in million British thermal units) than the prevailing long-term price it has with Qatar’s RasGas, India is looking at cutting the contracted volumes by about 10 per cent.



Petronet LNG imports 7.5 million tonnes annually from the global energy supplier, RasGas, under the long-term agreement.



The two had signed the first sales and purchase agreement (SPA) in 1999. Sources said the contract provides for flexibility of reducing the volumes on acceptable terms.



At present, this gas is priced at $13 a unit, while the spot delivers at India’s shores are at around $7 a unit. To this landed cost are added re-gasification costs, transmission tariffs, marketing margins, and local taxes/levies, before the end-user receives it.



High level talks are on between India and Qatar, though New Delhi allows companies to procure liquefied natural gas (LNG) under open general licence.



Under the open general licence, the marketer is free to purchase and sell based on commercial consideration. “The ties, which the two countries have had, make it a sensitive issue. Since this will not be a commercial decision, lot will depend on the political powers,” another official said.



“With new gas markets opening up for India, including the US, the country will have to re-align its gas import strategy and look at best deals in pure commercial terms,” the official said adding that even Qatar would like to maintain its strong position.



In December 2014, Petronet had received its 1000th cargo under this contract at its Dahej LNG Terminal. Petronet’s second terminal is at Kochi. Petronet is meeting approximately 30 per cent of the country’s gas demand.

Source:- thehindubusinessline.com

Foreign Trade Policy May Fuse Multiple Export Subsidy Schemes

Aiming to streamline export sops, the commerce ministry is likely to consolidate a host of schemes, such as focus market, focus product and market-linked focus product, as a single scheme in the foreign trade policy (FTP) to be released on Wednesday.

A government official speaking under condition of anonymity said the aim is to simplify the export subsidy regime. “At present, duty credit scrips for such schemes are around of 2-4% of the total value of exports. Scrip with a higher rate is proposed under the new consolidated scheme,” he added.

The FTP 2015-20—like the Plan document released by the erstwhile Planning Commission—charts a five-year path for boosting exports with set milestones which are reviewed every year. The previous FTP (2009-14) expired in April last year and a new policy was expected to be released after the National Democratic Alliance government took charge in May. However, differences between the finance ministry and the commerce ministry on the amount to be allocated for export schemes has delayed the FTP by a year.

The Focus Market Scheme (FMS) aims to offset high freight costs and other externalities to select international markets with a view to enhance India’s export competitiveness in these markets. The objective of the Focus Product Scheme (FPS) is to promote exports of products that have a high export intensity and employment potential, so as to offset infrastructural inefficiencies and other associated costs involved in the marketing of these products. The Market-linked Focus Product Scheme (MLFPS) is another kind of FPS but linked to exports to identified countries. Other similar schemes, such as the Special FMS and Special PMS, are also likely to be integrated into the proposed new scheme.

In the 2013-14 annual supplement to the FTP, the total number of countries under FMS and Special FMS were increased to 125 and 50, respectively. During the same year, 47 new products were added under MLFPS from the engineering, auto components and textiles sectors while Brunei and Yemen were added as new markets under the same scheme.

Independent foreign trade analyst T.N.C. Rajagopalan said there is an opportunity and scope to integrate the market and product-specific schemes as other schemes such as the interest subvention scheme and the export promotion capital goods (EPCG) scheme are time-tested schemes.

“However, the government has to keep in mind that any such integrated scheme is compatible with the World Trade Organization rules. The government may be thinking in line with the earlier duty-free credit entitlement scheme which was introduced in 2003 by then commerce minister Arun Jaitley (and later withdrawn by the United Progressive Alliance government),” he added.

Rajagopalan said the FTP may also make the right noises about integrating the export strategy with the Make in India and Digital India initiatives.

The official cited earlier also said the Duty Free Import Authorization (DFIA) Scheme, which enables duty-free import of inputs required for export production, is also proposed to be modified, while certain sections of its users may be excluded from the scheme.

India’s merchandise exports contracted for the third consecutive month in February by a record 15% to $21.5 billion. Even though the US economy is doing better than expected, uncertainty in the euro zone due to the threat of Greece exiting the economic union have affected India’s exports. The high level of rupee appreciation has also made Indian shipments uncompetitive. In the past two months, the rupee has appreciated 10-12% based on the real effective exchange rate, which has blunted India’s edge in exports.

The International Monetary Fund on Wednesday said external risks to the Indian economy emanate from a prolonged period of weak global growth, which could dampen Indian exports, apart from any unexpected developments in the course of US monetary policy normalization, particularly against the backdrop of recent large capital inflows.

Source:- livemint.com

Rupee Opens Lower At 62.59 Per Dollar

The Indian rupee on Monday weakened against the dollar, tracking the losses in the Asian currencies market. The local unit opened at 62.59 per dollar. At 9.09am, the home currency was trading at 62.57, down 0.25% from previous close of 62.42. The Sensex index rose 0.75% or 204.75 points to 27,663.39 points.

Major Asian currencies were trading lower against the dollar. The Malaysian ringgit was down 0.67%, Singapore dollar down 0.31%, Indonesian rupiah 0.19%, South Korean won 0.19%, Thai baht 0.15%, Japanese yen 0.08%, Taiwan dollar and Philippines peso fell 0.06% each.

As financial year is closing, the traders are cautious with the next week getting shortened with mere two market working days—30 March and 31 March. Bank transactions will not happened on 1 April due to annual closure of accounts while 2 and 3 April will be bank holiday for ‘Mahavir Jayanti’ and ‘Good Friday’ respectively. To add to their woes, the markets will be closed on 4 and 5 April due to weekly holidays.

The yield on India’s 10-year benchmark bond was trading at 7.77% compared with its Friday’s close of 7.777%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has gained 1%, while foreign institutional investors have bought $5.77 billion from local equity and $6.88 billion from bond markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.495, up 0.21% from the previous close of 97.499.

Source:livemint.com

Indigo Gets Approval To Import 400 Aircraft Over Next 10 Year

IndiGo has received approval from the government to import 400 additional aircraft over the next 10 years. The airline already has in place an approval (granted in May 2010) to import 150 A320 neos till 2025.



If the import approvals are anything to go by, on an average IndiGo will be importing one aircraft every week for the next 10 years making it the fastest and largest fleet expansion programme for any scheduled airline in India’s civil aviation history. The country’s nine scheduled airlines operate between them around 375 aircraft currently.



To put things in perspective, IndiGo itself has inducted on an average one aircraft every month since it started operations on August 4, 2006. At present, it has an operational fleet of 93 aircraft. IndiGo had a lion’s share — 37.1 per cent — of the traffic in the domestic market as of last month.



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A senior official in the ministry of civil aviation said, “IndiGo had applied for permission to import 400 additional aircraft in December last year. The same has been granted to them. They have been given in-principle approval to import these aircraft over the next 10 years till 2025.”



A spokesperson for IndiGo confirmed the development said, “The import approval for 400 aircraft include orders for 250 planes placed in October last year, additional purchase rights for 100 aircraft and 30 optional aircraft purchase rights pending from an earlier order placed in 2011.”



In the largest single order for aircraft maker Airbus, IndiGo in October last year signed an agreement to buy 250 A320neo planes. The companies did not disclose the deal value. Going by the list price, it could be $25.7 billion, though airlines usually get a discount in such deals. The airline had options to exercise additional purchase rights for another 100 aircraft.



IndiGo president Aditya Ghosh had said the deliveries under the new order would begin from 2018 and overlap with those under the 2011 one.



Before this, IndiGo had made two mega orders for Airbus aircraft — for 100 A320s in 2005, and 180 planes (150 A320neos and 30 A320s) in 2011. The 2011 order, though, was later modified to 180 A320neos. Airbus has said the A320neos, with their new engines and enlarged wing-tip devices, will deliver fuel savings of 15 per cent from day one.



In November last year, the country’s only profitable airline had completed induction of 100 planes from its 2005 order (two years ahead of schedule). It had then decided to take 12 planes on lease from Tigerair to stay ahead of competition. The deliveries of A320neo planes under its 2011 order will begin from October 2015. No other Indian airline has such big pending orders. Among peers, GoAir has ordered 72 Airbus A320neos and SpiceJet for 42 Boeing 737 Max.



IndiGo’s massive fleet induction plans come at a time when the market is rife with speculations about a possible initial public offering later this year. According to reports, the airline is looking at raising $ 400-450 million from an IPO, which will be managed by six investments banks. The red herring prospectus for the planned debut on the stock exchange is likely to be filed by May this year.



IndiGo follows a sale-and-leaseback model. While most of its planes are on lease for six years, a few are on financial lease for 10-12 years.

Source:- financialexpress.com

Redo head note as the factual/contentious issue due to which appeal was filed before High Court was

IT: Where major part of donations was spent for religious and other charitable purposes, distributing free food in Rain Baseras and prasad in functions and, maintaining ward in hospital activities of trust would be charitable activities

Delay in disbursal of share application money by AE would attract interest at LIBOR and not at rate

IT/ILT : While determining ALP of goods exported by assessee to its AE, action of TPO in excluding export incentive received by assessee on account of said exports was not proper

Info alleging abuse of dominance by Adidas was void as info was filed after expiry of 7 yrs of franc

Competition Act: Where appellant filed information against respondent alleging abuse of dominance after more than seven years of expiry of franchisee agreement, information per se was not maintainable

Remittances towards cost of software products imported from foreign suppliers were royalty and liabl

IT/ILT: Where remittances towards cost of software products imported from foreign suppliers was held as royalty, liable to TDS

Gujarat HC strikes down unconstitutional amendment to sec. 80-IB taking away tax benefit with retro-

IT : Amendment made in section 80-IB(9) by adding an Explanation was not clarificatory, declaratory, curative or made "small repair" in the Act, but on the contrary takes away the accrued and vested right of the Petitioner which had matured after the judgments of ITAT. Therefore, the Explanation added by Finance (No.2) 2009 was a substantive law. Explanation added to Section 80-IB(9) by Finance Act (No.2) of 2009 is clearly unconstitutional, violative of Article 14 of the Constitution of India a

Govt. announces list of ROCs appointed as adjudicating officers for adjudging penalties under Cos Ac

COMPANIES ACT, 2013 : Section 454 of the Companies Act, 2013, read with the Companies (Adjudication of Penalties) Rules, 2014 - Adjudication of Penalties – Appointment of Specified Registrar of Companies as Adjudicating Officers for Purposes of Said Act in Respect of Jurisdictions Indicated against Each Specified Registrar

Section 271AAA and sec. 271(1)(c) have different concomitant scope; to operate exclusively

IT: Section 271AAA and section 271(1)(c) have different concomitant scopes and are mandated to operate exclusively

CIT couldn't deny sec. 10(23AAA) approval to 'employees welfare trust' due to payment of corpus by e

IT : Where commissioner had wrongly interpreted rule 16C and held that employer could not made any payment for corpus of employees welfare fund, order of Commissioner to reject registration under section 10(23AAA) was to be set aside

HC set aside recovery proceedings as department had initiated recovery without adjudication

Service Tax : Recovery proceedings under section 87 cannot be initiated without first completing adjudication under section 73 or 73A

Co. outsourcing its activities couldn't be compared with a Co. providing services of its own

IT/ILT : A company mainly outsourcing its activities cannot be compared to ITES service provider rendering services by its own

Gain arising from sale of asset couldn’t be taxed under sec. 50 if asset wasn’t part of block of ass

IT : Godown purchased in 1969, but not used since 1985-86 on which no depreciation was claimed in subsequent years, would not be included in block of assets in view of newly introduced section 50 w.e.f. 1-4-1988; profit arising on sale could not be taxed as short-term capital gain but as long-term capital gains

Co. which lost its substratum after quashing of its 2G license by Supreme Court was to be wound up

CL : Where company had lost its substratum on account of quashing of 2G licenses by Supreme Court and there was complete lack of faith and probity resulting in irretrievable breakdown between major shareholders of company and liabilities of company had far exceeded its assets, it was just and equitable to wind up company under section 433(f)

Presence of other developers in real estate projects in relevant market rules out dominance of oppos

Competition Act : Where there were many other real estate developers offering Information Technology real estate projects in relevant market of services for development and sale of commercial IT/cyber space in Gurgaon, OP was not dominant in relevant market

RBI fixes 15 April as date of closure of residual transactions of March by banks for F.Y. 2014-15

IT/BANKING/E&C : Scheme for Collection of Dues of (I) Central Board of Direct Taxes (II) Central Board of Excise and Customs (III) Departmentalised Ministries Account – Reporting and Accounting of March Transactions – Special Arrangements of Financial Year 2014-15

No block proceedings by department relying on statement of persons detained by police without conduc

IT : Where assessee was neither searched nor assets were recovered from him and there was no warrant of authorization in name of assessee, addition as undisclosed income during block assessment was not sustainable

Co. lost its substratum after quashing of 2G license by Supreme Court was ordered for winding-up

CL : Where company had lost its substratum on account of quashing of 2G licenses by Supreme Court and there was complete lack of faith and probity resulting in irretrievable breakdown between major shareholders of company and liabilities of company had far exceeded its assets, it was just and equitable to wind up company under section 433(f)

HC lashes out at AO for making assessment on 'Sikkim Manipal University' under repealed Sikkim State

IT : After extension of Income-tax Act, 1961 to State of Sikkim with effect from 1-4-1990, Sikkim State Income-tax Manual, 1948, stands repealed and assessments made thereunder for assessment years 1997-98 to 2005-06 were without authority of law, non est and nullity

Dividend paid by foreign Co. abroad for shares deriving substantial value from Indian assets not tax

IT/ILT : Section 9 of the Income-Tax Act, 1961 - Income Deemed to Accrue or Arise In India - Clarification on Explanation 5 to Clause (I) of Sub-Section (1) of Section 9

Ford Looks To Triple Exports From India In 5 Years

American auto major Ford aims to triple exports from India over the next five years with its new $1 billion plant here becoming operational.

The plant, the company's second in the country, which was inaugurated by Gujarat Chief Minister Anandiben Patel here today, will also double its production capacity in India.

"With manufacturing facilities in Chennai and Sanand, we expect to triple our exports from India in the next five years," Ford Motor President and CEO Mark Fields told reporters here.

At present, Ford India exports around 60,000 to 70,000 units annually to over 35 global markets from its Chennai-based facility. With this new plant, the company is targeting a total of 50 export markets. The Sanand plant, which has come up in an area of 460 acres, Fields said, will also double the company's production capacity in India.

"The plant has an installed capacity of 2.4 lakh vehicles and 2.7 lakh engines annually. Ford India will now have a total installed capacity of rolling out 4.4 lakh vehicles and 6.1 lakh engines every year," he added.

Elaborating on the new plant, Fields said the company would start manufacturing its new compact sedan Figo Aspire from the facility later this year.

Ford India President and Managing Director Nigel Harris said the plant is a major step for the company to become a major manufacturer of high quality small cars for local and global markets.

"The new plant will not only help us grow business in India but would also help to make India as an export hub," he added. Chief Minister Anandiben Patel said the new plant has given employment to over 4,000 people directly and another 2,000 from ancillary units around the facility.

Gujarat is becoming an automobile manufacturing hub with the likes of Tata Motors and Maruti Suzuki setting up their plants in the state.

Source:dnaindia.com

India Considers New Strategy To Boost Rice Exports To Africa

India's rice exports to African destinations have been reportedly impacted by increased supplies from Thailand and price competition with other exporting nations such as Vietnam and Pakistan.

On the other hand, India's rice exports to Nigeria, Africa's largest importer of rice, have been affected because it is facing foreign exchange problems due to oil price decline and depreciation of its local currency against dollar. Earlier, in August 2014, India’s rice exports to African countries were impacted due to the spread of the Ebola Virus Disease (EVD).

The Commerce Ministry of India has decided to formulate a new and specific strategy to boost rice exports, including basmati and non-basmati , to Africa, according to local sources. As part of the new strategy, the Ministry is planning to send a delegation to some African countries and hold meetings with potential rice importers. "There is a higher demand anticipated from African countries for rice and India can tap that potential," a Commerce Ministry official was quoted as saying.

The Ministry is understood to have taken this decision as India's rice exports in February 2015 declined by about 12.36% to around $649 million compared to around $740 million in February last year.

While Iran, Saudi Arabia, Iraq, Kuwait and the UAE are India's major export destinations for basmati rice, Nigeria, Benin, Bangladesh, Senegal, South Africa and Liberia are major export destinations for non-basmati rice.

India exported around 2.86 million tons of rice (including 75,686 tons of basmati and 2.79 million tons of non-basmati) to African destinations in April 2014 - January 2015 period of FY 2014-15, compared to around 3.93 million tons (including 69,136 tons of basmati and 3.86 million tons of non-basmati) in FY 2013-14, according to the Agricultural and Processed Food Products Export Development Authority (APEDA).

India exported around 9.57 million tons of rice (including 2.92 million tons of basmati and 6.65 million tons of non-basmati) in the first ten months of FY 2014-15 (April - March), up about 7% from around 8.96 million tons (including 3.09 million tons of basmati and 5.87 million tons of non-basmati) exported during the same period in FY 2013-14, according to APEDA data.

Source:oryza.com

Govt. notifies various entities for the purpose of 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 – Kerala Toddy Workers' Welfare Fund Board

RBI lays down norms for 'International Financial Services Centre'

FEMA/ILT : FEM (International Financial Services Centre) Regulations, 2015

Castor Oil Exports To Rise 33% This Year

India’s castor oil exports are likely to rise by 33% this year on rising demand from United States, China and European Union (EU), the three largest importers of the medicinal oil.

Exports of castor oil had taken a hit last year due to weak demand trend globally, dropping to around 429,000 tonne from 460,000 tonnes during 2012-13.

“Castor oil exports likely to hit 570,000 tonne at least due to robust demand from developed countries,” said Kanubhai Thakkar, Managing Director of Gokul Refoils & Solvent Ltd, the producer of “Gokul” brand edible oil and one of the largest exporters of castor oil in India.

Castor oil and its derivatives find uses in agriculture, cosmetics, electronics & telecommunications, food, lubricants, paints, inks and adhesives, paper, perfumeries, pharmaceuticals, plastics and rubber and textile chemicals.

Rising demand of castor oil, however, may pose a threat to castor seed availability in the Indian market due to shortage of output this year. India produces around 85% of global castor oil.

China has reportedly covered 85% of its annual need of over 180,000 tonne oil so far. Europe and United States too have covered an estimated 85% of its need of 120,000 and 60,000 tonne oil so far. While export demand from China, US and EU is unlikely to pick up as they wait for arrival of the new crop and rates to fall further, that from other countries is set to rise in the coming months.

Amid fears of supply shortage next year, demand from perennial buyers may also go up, said Thakkar, who estimates castor seed crop this year at 1 million tonne.

Meanwhile, a survey conducted by Religare Commodities shows India’s castor seed output will decline by 11% to 1.20 million tonne this year as compared to 1.35 million tonne during last year. Acreage was lower this year by 10% at 0.98 million ha as compared to 1.09 million ha last year.

“Total area under castor crop was estimated at 0.98 million ha, a decline of 10% from the previous year. Given that the unseasonal rainfall and hailstorms hit the standing crop, total output would not surpass 1 million tonne target. Thus, there will be an acute shortage of seed in lean season when demand rises post June,” said Thakkar.

Hyderabad–based independent firm Transgraph Consulting in a separate survey forecast India’s castor seed output at 1.04 million tonne due to low crop germination on extremely high temperature.

At an oil extraction rate between 46%, total seed requirement stands at around 1.5 million tonne. But assuming carrying over stocks at 400,000 tonne, demand will nullify surplus availability towards the current year end.

Castor prices have been under pressure for the last several months. According to Thakkar, farmers should fetch at least Rs 4,000-4,500 a quintal to remain in castor sowing. Any realisation below that is a loss for farmers which would have a cascading affect in future sowing, he added. Currently, castor seed is trading at Rs 3,400 a quintal in spot and futures market.

“The sustained growth of the industry is dependent on the delicate balance i.e. reasonable and remunerative price for the farmers on one hand, and affordable and stable price for the industry on the other," said Abhay Udeshi, chairman of SEA Castor Seed & Oil Council. He projected castor crop potential at 2.9 million tonne (equivalent to 1.3 million tonne of castor oil) by 2025.

Source:business-standard.com

India's Gold Imports To Explode In March

The latest gold trade suggests that the country may witness record imports of gold during the month of March this year. As per preliminary data, the imports during the month have already crossed 130 tonnes during the initial three weeks of March this year. Estimates suggest that monthly gold imports may well exceed 150 tonnes during the month.

The projected imports during March this year are alarmingly high when compared with the recent past. The country’s gold imports were limited to nearly 39 tonnes in January this year. The imports jumped higher to almost 50 tonnes in February. However, March ’15 preliminary import data suggests three-fold jump in gold imports during the third month of the year. The daily trade data for the month of March also indicates that gold shipments to India from Ghana have gained significant momentum during the month.

The sudden surge in gold imports is mainly attributed to the increased procurement of the metal ahead of the upcoming festive season demand. Moreover, the government had recently relaxed certain norms on gold imports, thus making it easier for importers to secure gold. The fall in gold prices too spawned new life to gold shipments into the country.

Industry sources indicate that the rising gold demand in India may continue to lend support to gold in shorter term. In the run-up to the budget, gold imports had remained muted. The purchases by local traders which were deferred in anticipation of favorable duty cut announcement in the budget have also started to pick up.

Meantime, new gold schemes such as gold deposits and gold sovereign bonds are less likely to affect the country’s gold imports immediately, as it may take more time for the government to formulate final structure of these plans.

Source:metal.com

Rupee Slumps To 62.75 On Month-End Dollar Demand

The rupee was trading weak by 42 paise at 62.75 against the dollar on month-end dollar demand from banks and importers at the Interbank Foreign Exchange market today.

After opening weak by 31 paise to 62.64, the rupee hovered in the range of 62.50 and 62.77 in the afternoon trade.

Forex dealers attributed the fall in rupee to increased demand for the dollar from importers and a weak domestic equity market but the greenback’s weakness against other currencies overseas, capped the rupee’s losses.

The rupee had snapped its seven-day winning spree by slipping seven paise to close at 62.33 against the dollar in yesterday’s trade.

Meanwhile, the BSE index Sensex tumbled 654.25 points or 2.33 per cent at 27,457.58 due to escalating tensions in West Asia after Saudi Arabia and its Gulf Arab allies launched air strikes in Yemen.

Source:thehindubusinessline.com

Goods having HSN classification under Kerala VAT cannot be classified as per common parlance test

VAT/CST/Excise/Customs : Kerala VAT : Based on HSN classification, 'Ujala Supreme' and 'Ujala Stiff and Shine' are classifiable as 'Synthetic organic colouring matter-Acid Violets' and 'Polymers of vinyl acetate' respectively under List A of Third Schedule to Kerala VAT Act (tax 4%); they cannot be classified under residual entry (tax 12.5%) based on common parlance or end-use based test

SEBI fixes cap on application money; requires issuer to demand 25% of issue price in case of part pa

SEBI/INDIAN ACTS & RULES : SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2015 – Amendment in Regulations 4 and 54

SEBI allows issuer to recall or redeem debt securities prior to maturity date; amends debt securitie

SEBI/INDIAN ACTS & RULES : SEBI (Issue and Listing of Debt Securities) (Amendment) Regulations, 2015 – Amendment in Schedule I and Insertion of Regulations 17A and 20A

No prosecution against advocate for filing client's return on fake TDS certificate as it was supplie

IT: Where respondent, a tax practioner, filed a return on behalf of assessee claiming refund, in view of fact that respondent had no role in preparing TDS certificates, complainant-ITO could not initiate criminal proceedings against him on ground that refund was wrongly claimed on basis of ingenuine TDS certificates

Testing in India and delivery of report outside India amounts to 'export of service'

Service Tax : In case of carrying out testing and analysis in India and sending test report abroad, service is complete only when report is sent, received by service receiver and further action if necessary is taken by them; hence, said activity amounts to 'export of service' and is eligible for various export incentives under Excise/Customs laws

Mere failure to file return of income doesn't invite concealment penalty

IT : Where no return had been filed by assessee and income was assessed on estimate basis by revenue, no penalty could be levied for concealment of income

HC quashed impugned order as reference to BIFR was a deliberate attempt to stall winding up process

CL : Where reference was filed before BIFR after passing of winding up order against company, same was nothing but a deliberate attempt to forestall process of winding up

Diamond purchased from unregistered dealer was subject to purchase tax if it was used in making jewe

CST & VAT : Karnataka VAT - Where assessee was dealing in gold jewellery studded with diamond and it purchased diamond from unregistered dealer and used same in manufacture of jewellery, once diamond was used in making jewellery, it changed into another commercial commodity and was liable to purchase tax under section 6

HC keeps coercive proceeding in abeyance on condition of payment of one-third balance tax liability

IT : Where assessee was willing to pursue remedy as provided in section 260A, coercive proceedings against assessee would be kept in abeyance for a period of two weeks on condition that assessee satisfied 1/3rd of balance liability

HSN classification has primacy over common parlance test; Ujala products held classifiable as per co

VAT/CST/Excise/Customs : Kerala VAT : Based on HSN classification, 'Ujala Supreme' and 'Ujala Stiff and Shine' are classifiable as 'Synthetic organic colouring matter-Acid Violets' and 'Polymers of vinyl acetate' respectively under List A of Third Schedule to Kerala VAT Act (tax 4%); they cannot be classified under residual entry (tax 12.5%) based on common parlance or end-use based test

Acquirer may delist target Co. after declaring his intention to delist while making detailed public

SEBI/INDIAN ACTS & RULES : SEBI (Substantial Acquisition of shares and takeovers) (Amendment) Regulations, 2015 – Amendment in Regulations 18, 22 and Insertion of Regulation 5A

SEBI revises buy-back norms; requires acquirers to facilitate tendering of shares via stock exchange

SEBI/INDIAN ACTS & RULES : SEBI (Buy-Back of Securities) (Amendment) Regulations, 2015 – Amendment in Regulation 9

SEBI notifies revised delisting norms, casts more responsibilities on Board for approval for delisti

SEBI/INDIAN ACTS & RULES : SEBI (Delisting of Equity Shares) (Amendment) Regulations, 2015 – Amendment in Regulations 2, 4, , 8, 10, 11. 12. 13. 14. 15. 16, 18, 19, 27, 31, Schedule I and Schedule II; Substitution of Regulation 17 and Insertion of Regulation 25A

Government To Bring Out Strategy Paper On Boosting Textile Exports

The Commerce Ministry will soon unveil a strategy paper on ways to enhance competitiveness of textile exports. The issue was recently discussed in a meeting in the ministry.

"Competitiveness of Indian textiles exports is going down. Countries including Sri Lanka and Turkey are more competitive in the sector. The ministry is considering to bring out its own strategy paper for the sector," a senior official in the ministry said.

Textiles Ministry, too, is in the process of rolling out a National Textiles Policy, which aims to achieve USD 300 billion exports by 2024-25 and envisages creation of additional 35 million jobs.

The ministry's move, to bring out the strategy paper, assumes significance as the country's exports are in the negative zone since December 2014. Textiles exports account for over 10 per cent in the total outbound shipments and the ministry is taking every step to boost the shipments.

Falling for the third straight month, exports declined steeply by over 15 per cent to USD 21.54 billion in February. India's cotton exports have declined as its biggest market China had changed its policy on cotton imports.

According to a report, India -- the world's second-biggest producer of cotton is likely to export 7.69 million bales of the fibre in 2014-15 marketing year (August-July), down by 35 per cent from last year due to sluggish demand from China.

The government is expected to announce some incentives for the textiles sector in the foreign trade policy, which is expected to be unveiled in the second week of next month. In February, textiles exports grew by about 9 per cent to USD 1.53 billion.

Source:economictimes.indiatimes.com

Sebi Faces Rs 500 Crore Service Tax Demand

India Inc has been complaining of excessive tax demand. It seems the taxman is not sparing even the regulators now.

Capital markets regulator Securities and Exchange Board of India (Sebi) has been asked to furnish its fee income details earned since 2012 till date by the service tax department. The tax department had issued several notices to Sebi to share the details for assessment of service tax liability 2012 onwards. As per initial assessment by the tax department, Sebi's service tax liability will be more than Rs 500 crore.

As per service tax department sources, Sebi, so far, was not ready to share the details. The tax department is of the view that any service which is outside negative list of service tax issued in 2012 is liable to pay tax. Service tax department issued negative list in 2012. Services of Sebi were not included in this list.

Sebi provides services for processing of IPOs, debt issues, mutual fund NFOs and other services including informal guidance to companies. None of these services is included in the negative list of services for taxation purpose. On this basis only service tax department has issued notice to Sebi officials and sought details.

However, Sebi sources have different version. They said the regulator is exempt from all sorts of taxation. According to Section 25 of the Act says Securities and Exchange Board from the date of its constitution to the date of establishment of the Board, shall not be liable to pay wealth-tax, income-tax or any other tax in respect of their wealth, income, profits or gains derived, they said.

However, sources in service tax department said that Finance Act has overriding effect on all the enactments in taxation related issues.

Sebi senior officials told Zee Business, "As per Sebi Act they have been exempted from income tax, wealth tax and all other taxes, which has been clearly mentioned in Section 25 of the Sebi Act. It's an old issue and we have clarified this issue to Central Board of Excise and Customs (CBEC) as well. We are waiting for CBEC response."

As per service tax department sources, a senior official of Sebi's treasury department was summoned last week by the department, which is hopeful it will get fee income details this month itself. The regulator has been asked to furnish details of fee income between 2012 and 2015. Queries emailed to Sebi's communication department didn't elicit any response till going to the press.

Source:dnaindia.com

Mr Goyal Says Importing Coal Unjustified As Country Has Huge Reserves

Mr Piyush Goyal, Union Minister, said that importing coal is "unjustified" at a time when the country is sitting on reserves totalling 300 billion tonne.

Mr Goyal said that "When the country is sitting on a huge coal reserve, to import it is unjustified. The production of coal has risen from 432 million tonne to 460 million tonne and will cross 493 million tonne this year, which will be an increase of over 30 million tonne."

He said that the BJP-led government at Centre has accorded a top priority to coal and generation of power and that all-out efforts are being made to supply coal to electricity generating units across the country.

He added that "The government is also giving mines to states to meet the requirement," adding the production of coal by the Coal India Limited has gone up by seven% since the BJP government came to power last year.

Mr Goyal hailed Western Coalfields Limited (WCL), a CIL subsidiary, for pulling the loss-making company out of red and producing 38 million tonne of coal. WCL will open a new mine every month.

He said that he was surprised to know that around eight crore housewives in the country burn coal to cook food.

Earlier, he inaugurated Penganga open cast mine at Wani in neighbouring Chandrapur district. The mine has the production capacity of four million tonne. Mr Goyal also dedicated to nation Makardhokra Open Cast and Bhangegaon Open Cast mines having capacity of 2 million tonne and one million tonne, respectively.

However, Union Ministers Mr Nitin Gadkari and Mr Hansraj Ahir along with Maharashtra CM Mr Devendra Fadnavis, Finance Minister Mr Sudhir Mungantiwar and Power Minister Mr Chandrashekhar Bawankule were present on the occasion.

Source:coal.steelguru.com

Indian Steel Imports Need Urgent Government Interventions

Mr Shushim Banerjee Director General of INSDAG in his personal capacity wrote in Financial Express that recent data on steel export and import make interesting and somewhat depressing reading for steel industry.

He wrote “Total steel import of 8.13 million tonne in April-February ’15 is likely to reach a record annualised level of 8.9 million tonne in FY15 with annualised export level of 5.8 million tonne thereby making India a net importer of 3.1 million tonne. India would be spending around INR 794.8 billion for imports and earning approximately INR 620.30 billion on account of exports leaving a shortfall of INR 174.50 billion.”

He wrote “Too much steel is available in the global market, sometimes below the marginal cost of Indian producer which has resulted in total steel exports to be marginally lower compared to last year. Value added products like downstream categories in the flats fetch higher realisation at specific markets.”

He added “Hopefully Indian pleas with WTO to open up US market for its HRC exports would receive a positive response from the world body in FY16.”

He also said “Exports of coated products have gained acceptance in markets of the US, the UAE, Spain, Italy and Iran. This can be further enhanced to achieve both volume and margin. It is revealed that India is a net importer in bars and rods where large scale imports of Boron-coated wire rods and TMT primarily from China (enjoying export rebates) and Ukraine have made things pretty difficult for the domestic producers.”

He wrote “It is unfortunate that in spite of creating massive capacities in long products, India has emerged as a net importer in this category. As regards to rerollable scrap and semi-finished steel (major exporters: Indonesia, the UAE and Korea) the imports of more than 0.6 million tonne need detailed analysis.”

He said “India imports plates to the extent of nearly 1 million tonne. Apart from special profiles in boiler, ship breaking and over dimensional grades, Indian producers are capable of meeting most of the demand. The net import of more than 2 million tonne in HR/CR (from Korea and Japan under CEPA followed by very cheap imports from China and Ukraine) is an issue that needs urgent government policy interventions in putting in place appropriate measures to deal with unfair trade practices and imports under the garb of free trade.”

He wrote “Indian manufacturing is reeling under some deep rooted ailments. What is damaging for steel industry is rising imports of steel containing engineering and consumer durable goods mostly from China. Easy and cheaper availability of intermediates and processed goods from abroad has made assembly operations an essential ingredient in manufacturing thereby killing the value addition component. The malaise is fast spreading and ‘Make in India’ programme must squarely face the same.”

Source:steelguru.com

India Still To Pay $8.8 Billion To Iran For Oil Imports’

Iranian Trade Minister, Nirmala Sitharaman, said that India still to pay $8.8 billion to Iran for oil imports.

Iran and Western powers are in talks to reach a framework agreement ahead of an end-March deadline to curb Tehran’s most sensitive nuclear activities in exchange for a gradual end to sanctions on the OPEC member.

India refiners settle 45 per cent of Iranian oil payments by depositing rupees in Tehran’s commercial banks’ account with UCO Bank, and withhold the remaining 55 per cent. Iran taps funds in the rupee account to import goods from India.

The balance in Iranian commercial banks’ accounts with UCO BankBSE -1.21 % was 178.955 billion rupees ($2.86 billion) as of March 16 while refiners owed Tehran $5.943 billion as on Feb. 28, Nirmala Sitharaman said on Friday.

Source:hellenicshippingnews.com

India’S Feb Crude Imports Fall 16.4% On Year To 3.58 Mil B/D: Shipping Data

India’s crude oil imports in February fell 16.4% year on year to 13.69 million mt, or an average 3.58 million b/d, according to shipping data obtained by Platts. Imports in February were down 21% from January.

Saudi Arabia was India’s top crude oil supplier in the month, but the volumes supplied fell 16.3% year on year to 2.95 million mt (772,366 b/d), the data showed.

Imports from Iran plunged 62.3% year on year to 382,242 mt (100,065 b/d). The drop in Iranian crude imports followed a government directive sent to refiners in January.

New Delhi told refiners to stop importing Iranian crude at least until mid-February, as the country was preparing to welcome US President Barack Obama as a special guest for the Republic Day celebrations held on January 26.

Imports from Iraq and Angola also suffered double-digit drops year on year. In contrast, imports from second-largest supplier Venezuela, Nigeria and the UAE saw double-digit growth. In the first two months of 2015, India imported a total 30.94 million mt of crude oil, down 1.25% year on year.

Saudi supplies fell 12.55% year on year to 6.14 million mt over January-February, while Iranian supplies fell 41% year on year to 1.54 million mt. The Petroleum Planning and Analysis Cell, a division of India’s Ministry of Petroleum and Natural Gas, released official crude import data for February last week.

The PPAC data, which is based on inputs from refiners and does not include crude imports by source, showed India’s crude oil imports for February fell 21.3% year on year to 12.99 million mt.

Source:hellenicshippingnews.com

Rupee Weakens Marginally Against Dollar To 62.32

After seven consecutive sessions of gains, the Indian rupee weakened marginally against the dollar on Wednesday, tracking losses in the Asian currencies market.

Traders are cautious with the approaching end of the financial year, apart from the next week having only two market working days—30 March and 31 March. Bank transactions will not take place on 1 April due to annual closure of accounts, while 2 and 3 April will be bank holidays on account of Mahavir Jayanti and Good Friday, respectively. Markets are also closed on regular weekend holidays on 4 and 5 April.

At 2.47pm, the home currency was trading at 62.32, down 0.12% against its previous close of 62.25. The local unit opened at 62.32 per dollar and touched a high and a low of 62.27 and 62.36, respectively. The BSE’s benchmark equity index Sensex fell 0.26%, or 72.95 points, to 28,088.77 points.

Major Asian currencies were trading lower against the dollar. The Indonesian rupiah was down 0.56%, Malaysian ringgit 0.46%, Philippines peso 0.22%, Thai baht 0.18%, China renminbi 0.12%, Singapore dollar 0.1% and China offshore spot 0.06%. The South Korean won was up 0.34%, Taiwan dollar 0.17%, and Japanese yen 0.11%.

The yield on India’s 10-year benchmark bond was trading at 7.77% compared with its Tuesday’s close of 7.75%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has gained 1.3%, while foreign institutional investors have bought $5.62 billion from local equity and $6.70 billion from bond markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.979, down 0.22% from the previous close of 97.193.

Source:livemint.com

No penalty on works-contractor if machinery purchased from outside State was used for execution of w

CST & VAT: CST - Where assessee, a works contractor, purchased machineries from outside State against form C and Assessing Authority had imposed penalty upon it under section 10A read with section 10(d), since equipments purchased were in consonance with certificate of registration issued and they were used for execution of works contract, imposition of penalty was wholly illegal

Plea to vacate interim order u/s 397 quashed as it would've created obstacles and defeated rights of

CL: Where vacation of interim order of CLB under section 397 would create complications and might defeat rights of non-applicants, application seeking vacation of interim order was to be dismissed

CBDT unveils Central Action Plan for first quarter of financial year 2015-16

IT/ILT : Central Action Plan for First Quarter i.e. (April, 2015 to June, 2015) of the Financial Year 2015-16

Forfeiture of application money paid by an investment Co. to buy debentures is allowable as business

IT : Where assessee, a promoter of JISCO, having paid application money for acquiring non-convertible debentures (NCDs) in right issue offered by JISCO, surrendered those NCDs to UTI which paid remaining amount and got allotment of NCDs in its favour, in view of fact that assessee had subscribed to NCDs as a matter of commercial expediency for making right issue successful which was in business interest of JISCO as well as assessee, application money in question forgone by assessee was to be all

HC upheld deduction of disputed interest liability as it had crystallized on execution of supplement

IT : Where liability to pay interest as stipulated in initial agreement was disputed and liability was crystallised only on execution of supplementary agreement in current year, deduction of interest liability of earlier years would be allowed in current year

No interest and penalty on assessee just because he had paid ST which wasn't actually payable

Service Tax : Where service tax itself was not leviable, assessee cannot be asked to pay interest and penalty merely because he has paid non-payable service tax

Sec. 69 additions upheld as assessee failed to show that residential flat was purchased out of his p

IT : Where assessee's claim regarding land development expenses was rightly allowed by Assessing Officer in original return and there was no material to deviate from earlier findings, ad hoc disallowance was not justified in assessment during search

ITAT couldn’t arbitrarily curtail penalty for assessee-in-default without any tangible reasons

IT : Where Tribunal arbitrarily reduced quantum of penalty for not depositing taxes before filing return without assigning any tangible reason, matter was to be remanded to reconsider same

IRDA issues revised norms on 'Micro insurance'

INSURANCE/INDIAN ACTS & RULES : IRDA (Micro Insurance) Regulations, 2015

Assessee owning Container Freight Station to be deemed as maintaining an infrastructure facility und

IT : Container Freight Station (CFS) is part of inland port and, therefore, is an infrastructure facility as defined in Explanation to section 80-IA(4)(i)

Sec. 54 relief allowed on sale of house held for less than 3 yrs as it was developed on land, being

IT: Where assessee constructed three storied building on land, in view of fact that building as such was held by assessee for a period of less than 36 months prior to date of transfer whereas land was a long-term capital asset, assessee was entitled to claim benefit of section 54 in respect of both land and building

Sec. 54 relief allowed on sale of house held for less than 3 yrs if it was developed on land, being

IT: Where assessee constructed three storied building on land, in view of fact that building as such was held by assessee for a period of less than 36 months prior to date of transfer whereas land was a long-term capital asset, assessee was entitled to claim benefit of section 54 in respect of both land and building

Construction carried out after sale of 'undivided share in land' amounts to 'construction service'

Service Tax : Where Undivided Share (UDS) of land is sold first and then construction is done for land owners, there is a service involved and said service is liable to service tax under construction services

'Coal India' abused its dominant position by imposing unfair terms in fuel supply agreement upon buy

Competition Act : Where since CIL and its subsidiaries had been vested with monopolistic power for production and distribution of coal in India as a result of policy of Govt. of India, CIL enjoyed undisputed dominance in relevant market of 'production and supply of non-coking coal to thermal power producers

Commission paid to NR agent for services rendered outside India wasn't taxable in absence of its PE

IT/ILT : Where assessee paid commission to its non-resident agents for rendering services outside India, said commission being in nature of a business profit, was not taxable in India in terms of article 7 of DTAAs between India and UAE

Supreme Court gives freedom of speech to people on social media websites; strikes down sec. 66A of I

IT : Information that may be grossly offensive or which causes annoyance or inconvenience are undefined terms which take into the net a very large amount of protected and innocent speech. Section 66A is cast so widely that virtually any opinion on any subject would be covered by it, as any serious opinion dissenting with the mores of the day would be caught within its net. Such is the reach of the Section that if it is held as constitutional, the chilling effect on free speech would be total. Se

CBEC invites suggestions from Chief Commissioners/Directors General to set-up Directorate of Taxpaye

EXCISE & CUSTOMS LAWS : Setting up of a Directorate of Taxpayer Services in Pursuance of TARC Recommendations

DTAA signed with Czech Republic in year 1986 would be applicable to successor Slovak Republic, FinMi

IT/ILT : Section 90, read with Section 119, of the Income-Tax Act, 1961 – Double Taxation Agreement – Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries – Czechoslovak Socialist Republic – Clarification on Applicability of Agreement Dated 25-5-1987 to Slovak Republic

Rising Imports From China, Russia Hurting Indian Steelmakers

India is among the many countries bearing the brunt of cheap steel imports from China - which is facing demand recession - and Russia and Ukraine, where major currency devaluation remains export-supportive.

However, India, which must grow steel-making capacity to take care of future demand, can ill-afford large imports hurting domestic prices. The steel ministry's Joint Plant Committee reports imports during the April-February period took a leap of 67.3 per cent to 8.38 million tonnes (mt) when exports were down 11.2 per cent to 5.40 mt. This should be a wake-up call for the government to put a wall against dumping. The ridiculousness of the situation is underlined by JSW Steel commercial director Jayant Acharya, when he says: "Some secondary steel producers have made production cuts to venture into trading by importing steel from China and other countries." The market is getting deluged by imports when Indian steel consumption grew by a measly 0.6 per cent to 73.9 mt in 2013-14 and in the current financial year till February by three per cent to 69.21 mt. All this while, domestic industry constituents have been commissioning new capacity.



The import threat is not to disappear soon. Flat demand and price falls led to world steel capacity use falling to 76.4 per cent in 2014 from 78.4 per cent in the previous year. China, which accounts for half the global production, is feeling increasing heat in the domestic market, forcing it to ship as much as possible in the world market. At the same time, steel groups in Russia and Ukraine are seeing their profits grow almost entirely on account of dollar-denominated exports. In the past 14 months, the Russian rouble and Ukrainian hryvnia have lost considerable value. While weak currencies remain the bane of the economies and people of the two former constituents of Soviet Union, devaluation has made local steel mills world-beaters. As balance sheets of most steel companies in Russia and Ukraine will show, their profitability is back to the pre-global financial crisis of 2008-09, if not more. This has become possible as the mills in Russia and Ukraine are paying most of their costs from wages to energy to transportation and logistics in their respective currencies but their income from exports is in the dollar and euro.



A Morgan Stanley report says the earnings before interest, tax, depreciation and amortisation of Russian steel leaders such as Severstal and Novolipetsk Steel is around 30 per cent.



Steel Authority of India Limited chairman Chandra Shekhar Verma says: "We have to be on guard against the likelihood of Russia coming under further pressure to export steel as the country's economy, subject to sanctions by the US and Europe and low oil and gas prices is forecast to contract by four per cent in 2015. I'm seeing reports that Russian domestic steel demand might contract by five per cent or more, which will automatically translate into mills going all out to boost export sales." In confirmation, ArcelorMittal chief financial officer Aditya Mittal says: "The Russian economy is in recession, which means lower domestic consumption, which means more tonnes to export." Russia and Ukraine between them exported 46.4 mt in 2014 and that accounted for 16 per cent of global steel exports. An official of consulting firm CRU wonders whether Russia and Ukraine are "becoming a new China in export markets, not in terms of volume but in terms of their impact on prices."



That there will be no remission in China's steel export thrust this year became evident in January, when exports, beating all forecasts rose 1.2 per cent to 10.3 mt month-on-month. This came on the heels of the country raising steel exports by 50 per cent to 93.78 mt. The ferocity in the export push is to be seen in the context of Chinese steel consumption in 2014 falling for the first time in 30 years. Verma draws attention to "prime minister Li Keqiang's message to the National People's Congress, suggesting growth of 'about seven per cent this year' on the back of the slowest growth in nearly a quarter century of 7.4 per cent in 2014. When Li said economic difficulties could be more formidable than in 2014 and downward pressure on the economy was intensifying, the portent for the country's steel industry could not but be ominous." As for any improvement in Chinese domestic steel demand, much will depend on the fiscal boost Beijing will give to the house building and manufacturing sectors.

Source:- business-standard.com

First Direct Container Service Between Qatar And India Launched

Milaha Maritime & Logistics, a subsidiary of the Qatar-based Milaha Group which delivers integrated transport and supply chain solutions in the GCC (Gulf Cooperation Council) region, has launched first direct container service between Qatar and India.



The non-stop service will connect Qatar’s Doha port with India’s busiest container port Jawaharlal Nehru Port at Nhava Sheva in Mumbai. Traders in both the countries are hopeful that the direct vessel service will further facilitate the thriving trade activities between the two countries, that have witnessed a phenomenal growth in the recent years.



Unlike existing services in the market, the new weekly service by Milaha will enable direct shipments between Nhava Sheva and Doha without the need for transshipment in Jebel Ali in Dubai or elsewhere, thus increasing reliability and reducing transit time and costs.



With an end of the week sailing, Indian exporters will benefit from a late cut-off providing more time to bring cargo into the port at Nhava Sheva. Due to the reduced transit time between the two ports, shipments of perishable products for the Qatari market will better retain freshness and quality.



Moreover, the new service may open up market for new perishable commodity segments which earlier due to longer transit time was not viable.



Announcing the launch of the new service, Milaha President and CEO Khalifa Ali Al-Hetmi said, “We express our thanks to the Jawaharlal Nehru Port for their support in reinforcing bilateral relations between Qatar and India that has gathered significant pace over the years.



The launch of a fast and direct container service by Milaha will support the increasing trade volume, where imports into Qatar from India reached a total value of US$ 989 million in FY2013-14.”



The new service, which is named Nhava Sheva-Doha Express (NDX), will not only bolster Milaha Maritime & Logistics’ feeder commitment to the Indian market, but also increase Milaha’s presence in non-vessel operating common carrier (NVOCC) activities. In addition, the new non-stop service will strengthen the company’s existing feeder network with the UAE with more fixed connections.



Speaking about the commencement of new direct container service, Jawaharlal Nehru Port Chairman-in-Charge Neeraj Bansal said, “The commencement of operation at Nhava Sheva’s Shallow Water Berth (SWB) has opened new business opportunities for handling smaller vessels, operating particularly from the Gulf region.



We have allotted a fixed window slot to Milaha Maritime & Logistics to operate the Nhava Sheva-Doha Express service. We extend our full cooperation to the company to make use of the mechanised facility at SWB and benefit the trade between both countries.”

Source:- thedollarbusiness.com

Russia May Allow Imports Of Indian Dairy Products Soon

With Russian experts clearing a few domestic dairy product units, Indian dairy exporters are expected to soon start shipping consignments to that country, a senior commerce ministry official said. Due to strict quality standards in Russia, the Indian dairy products exporters face market access problem in that market.

In the wake of western countries imposing trade sanctions on Russia after the Ukraine crisis, dairy products exporters see a huge potential in Russia.

"It is Russia which has to clear our dairy sector and that has not yet been completed. Russians experts came here, they inspected a few plants. Some of them have been cleared, so we are hoping that in the next month or two, at least 3-4 of our plants will get cleared and then exports will start," the official said.

India is the world's largest producer of milk but exports to Russia are negligible. Russian importers mainly import agricultural goods and dairy products from Europe and neighbouring nations.

A team from Russia's phytosanitary watchdog, Rosselkhoznadzor, had visited India to inspect several cheese and dairy product units. The Agricultural and Processed Food Products Export Development Authority (APEDA) is looking into the matter.

As per estimates, Russia's annual dairy product import requirements are about 5,000 million tonnes and due to the trade sanctions they are facing problem in meeting the demand.

Gujarat Cooperative Milk Marketing Federation (GCMMF), makers of Amul brand dairy products are keen on exports to Russia. Russia imports about 8-10 lakh tonnes of milk powder and 20 lakh tonnes of cheese per annum. India is a key player in skimmed milk powder sector.

Source:economictimes.indiatimes.com

India Owes Iran $8.8 Billion For Oil, Settles 45Pc Of Payments

The trade minister said India owes about $8.8 billion for oil imports from Iran as economic sanctions imposed over Tehran`s nuclear programme have cut its access to the global banking system.

New Delhi refiners settle 45 percent of Iranian oil payments by depositing rupees in Tehran`s commercial banks` account with UCO Bank, and withhold the remaining 55 percent. Iran taps funds in the rupee account to import goods from India. The balance in Iranian commercial banks` accounts with UCO Bank was 178.955 billion rupees ($2.86 billion) as of March 16 while refiners owed Tehran USD 5.943 billion as on Feb. 28, Nirmala Sitharaman told lawmakers in a written reply on Friday.

Sitharaman said, “The Ministry of Finance has decided that payments to the extent of USD 100 million per month for such third-country exports to Iran would be allowed from the 45 percent rupees vostro account held with the UCO Bank.”

Source:customstoday.com.pk

Rice Exports Up By 6.1Pc To 8.44Mt Versus 7.95Mt

During the April-December period of current fiscal, India’s rice exports rose by 6.1 percent to 8.44 million tonnes versus 7.95 million tonnes in the same period of 2013-14.

Rice exports in value terms stood at Rs 35,157.38 crore during the period this fiscal against Rs 33,647.45 crore in the year ago period, Parliament was informed. Export of basmati rice during the nine-month period of this fiscal declined by 6.19 percent to 2.57 million tonnes from 2.74 million tonnes in the same period last year, Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha.

She said, “During the current year, Iran had significant carry over stocks from domestic production and heavy imports in past two years and hence has imposed a restriction on issue of import permits from October 2014.” Exports to Iran during the nine-month period declined to 705.52 thousand tonnes as against 1.18 million tonnes during the same period last year.

Source:customstoday.com.pk

Steel Imports Need Urgent Govt Policy Interventions

The passing of the new mining law (MMDR Bill), thanks to the political support to the efforts of the ruling party, goes a long way to create an atmosphere of transparency in all mining-related issues. However, full implication of the various clauses in the law is yet to be appreciated in view of the volatile market condition in both raw materials and finished products.

The large pay out while winning of bids, the enhanced royalty payment to state governments and additional sums to the district mineral funds (DMF) for the welfare of the displaced persons would enhance the production cost and it would be difficult to pass through fully to the buyers of the finished products in the current scenario.

It appears that in the next few years’ time, the law would enable owners of the mines that are being obtained through open bidding to bring down the production cost (in post 2020 with non-captive mines) significantly by less dependence on open market purchase, which is recurrently plagued with price fluctuations. There would be a comparative price advantage in the initial period by steel plants having captive mines, but as the global prices of raw materials are on a declining mode, the import route may still be a more viable option in the interim period.

Recent data on steel export and import make interesting and somewhat depressing reading for steel industry. Total steel import of 8.13 million tonne in April-February ’15 is likely to reach a record annualised level of 8.9 million tonne in FY15 with annualised export level of 5.8 million tonne thereby making India a net importer of 3.1 million tonne. India would be spending around R794.8 billion for imports and earning approx.R620.30 billion on account of exports leaving a shortfall of R174.50 billion.

Too much steel is available in the global market, sometimes below the marginal cost of Indian producer which has resulted in total steel exports to be marginally lower compared to last year. Value added products like downstream categories in the flats fetch higher realisation at specific markets. Hopefully Indian pleas with WTO to open up US market for its HRC exports would receive a positive response from the world body in FY16.

Exports of coated products have gained acceptance in markets of the US, the UAE, Spain, Italy and Iran. This can be further enhanced to achieve both volume and margin. It is revealed that India is a net importer in bars and rods where large scale imports of Boron-coated wire rods and TMT primarily from China (enjoying export rebates) and Ukraine have made things pretty difficult for the domestic producers. It is unfortunate that in spite of creating massive capacities in long products, India has emerged as a net importer in this category. As regards to rerollable scrap and semi-finished steel (major exporters: Indonesia, the UAE and Korea) the imports of more than 0.6 million tonne need detailed analysis.

India imports plates to the extent of nearly 1 million tonne. Apart from special profiles in boiler, ship breaking and over dimensional grades, Indian producers are capable of meeting most of the demand. The net import of more than 2 million tonne in HR/CR (from Korea and Japan under CEPA followed by very cheap imports from China and Ukraine) is an issue that needs urgent government policy interventions in putting in place appropriate measures to deal with unfair trade practices and imports under the garb of free trade.

Indian manufacturing is reeling under some deep rooted ailments. What is damaging for steel industry is rising imports of steel containing engineering and consumer durable goods mostly from China. Easy and cheaper availability of intermediates and processed goods from abroad has made assembly operations an essential ingredient in manufacturing thereby killing the value addition component.

The malaise is fast spreading and ‘Make in India’ programme must squarely face the same. The author is DG, Institute of Steel Growth and Development. Views expressed are personal.

Source:financialexpress.com

SC: Lump-sum interest paid upfront on debentures in lieu of periodical payments is fully allowable i

IT : Upfront discounted lumpsum interest in lieu of periodical payments is allowable in full in year of payment

Department had to pass speaking order even when reassessment was carried out automatically by comput

Excise & Customs : Where value of goods was loaded by 20 per cent automatically by computer system, assessee's right for a speaking order under section 17(5) cannot be snatched away merely on ground that said loading was done automatically by computer; hence, Tribunal directed department to pass speaking order

Scrutiny was void as it was made without issuing notice under Sec. 143(2)

IT : Where no notice was issued under section 143(2), no assessment order under section 143(3) could passed and therefore, assessment order passed under section 143(3) was void ab initio

Dian Rupee Rises To 5-Day High Against Us Dollar

The Indian rupee strengthened against the US dollar in the morning deals on Tuesday.

Against the greenback, the rupee rose to a 5-day high of 62.1100 from an early low of 62.2500. At yesterday's close, the rupee was trading at 62.2400 against the greenback.

If the rupee extends its uptrend, it is likely to find resistance around the 61.50 area.

Source:lse.co.uk

No deemed dividend if 'Subrata Roy' gets advance from his firm which owes to Co. in which he is a sh

IT: Where assessee was a shareholder of a company and a partner of a firm and firm was agent of company, Rs. 1.89 crore advanced to assessee by firm from its own account of Rs. 60 crore could not be taxed as deemed dividend merely on ground that Rs. 26 crore collected by firm on behalf of company was not paid yet

No addition of deemed dividend in hands of 'Subrata Roy' on sums advanced by his firm merely if it o

IT: Where assessee was a shareholder of a company and a partner of a firm and firm was agent of company, Rs. 1.89 crore advanced to assessee by firm from its own account of Rs. 60 crore could not be taxed as deemed dividend merely on ground that Rs. 26 crore collected by firm on behalf of company was not paid yet

No Penalty/interest when input tax credit was sufficient to adjust excess tax demand

CST & VAT : Gujarat VAT - Where Assessing Authority made assessment of assessee and raised tax demand and also levied penalty and interest upon it, since input tax credit was already available to assessee and after adjustment of same against demand of tax principal amount of tax was not recoverable, levy of penalty and interest was liable to be deleted

Presence of renowned builders offering residential flats in same area rules out dominance of opposit

Competition Act : Presence of renowned builders in relevant market of services of development and sale of residential apartments in Gurgaon rules out dominance of OP in relevant market

Maximum penalty for seized goods would be 150% of tax payable on such goods under Gujarat VAT Act

CST & VAT : Gujarat VAT - Where officer-in-charge of check-post detained a truck carrying goods of assessee and further he by an order passed under section 68(5) assessed tax payable on goods at Rs. 1.65 lakhs and imposed penalty at 150 per cent of said amount, officer-in-charge was directed to release truck along with goods subject to assessee depositing Rs. 54,000

AO can't make reference to valuation officer without rejecting books of account

IT : Assessing Officer could not have straightaway referred matter to Valuation Officer without rejecting books of account

In case of retrospective validation of charge issue of fresh notice quoting correct legal provision

Service Tax : Where charge/collection of service tax from service recipient was validated retrospectively, fresh notice quoting correct legal provisions was to be issued mandatorily; confirmation of demand based on notice issued prior to retrospective amendments could not be sustained

Payment of loan EMI of subsidiary was deductible, being paid by guarantor-assessee to protect its bu

IT: Where assessee as guarantor had repaid instalments of loans taken by its subsidiary company for protecting its business, assessee will be entitled to deduction of interest on such payments

No TDS on interest paid to custodian of finance Co. when special Court exempted TDS liability on suc

IT : Where custodian was appointed for financial company from whom assessee had taken loan against pledge of shares, assessee would not be liable to deduct TDS on said interest payment made to custodian

Discount received by assessee on inter-state sale can't be deemed as 'commission; not liable to serv

CST & ST : Where assessee of Gujarat purchases goods from 'W' of Karnataka and sells them to 'A' of Jharkhand by transferring documents of title of goods in course of movement of goods directly from Karnataka to Jharkhand, said transaction is one of sale and, therefore, discount allowed by 'W' to assessee cannot be regarded as commission and cannot be charged to service tax

HC dismissed winding-up plea against debtor-Co due to existence of bona-fide dispute on overdue sums

CL: Where statutory notice of demand was not replied because of a bona fide and substantial dispute, no inference could be drawn against debtor-company to justify a winding up petition for inability to pay debts

AO to ascertain whether expats were rendering technical services after verifying actual services ren

IT/ILT: Where employees of affiliates abroad were rendering services to assessee-company as a part of any agreement of technical services agreed to be rendered by such affiliates to assessee, had to be seen based on verification of actual services rendered by them