Date of e-filing of refund claim is relevant to determine whether claim is time-barred

Excise & Customs : Date of filing of refund claim electronically should be considered as date of filing of refund claim; hence, if refund claim is filed electronically within time limit but hardcopy thereof is filed later on, refund claim cannot be regarded as time-barred

HC sanctioned amalgamation scheme as Co. adhered to all provisions and it was in interest of credito

CL : Where scheme of amalgamation was in interest of members and creditors of companies and provisions of section 391 had been complied with substantially, scheme was to be sanctioned

Conversion of 'Gram Dal' into 'Besan' amounts to manufacture for sec. 80-IB relief

IT : Conversion of gram Dal into Besan amounts to 'manufacture' and, therefore, industrial undertaking of assessee engaged in said activity would be entitled to deduction under section 80-IB(4)

Issue related to valuation of re-imported goods is appealable before Supreme Court

Excise & Customs : Issues as to 'how value of goods is to be determined on re-importation of goods' and 'to what extent exemption notification dated 16-12-1996 is applicable' are not appealable before High Court; appeals, if any, would lie before Supreme Court

No physical verification under sec. 194LA to check whether land was agricultural land which didn't a

IT : Section 194A does not provide any physical verification of assessee to inspect fields and find out whether lands are actually cultivated or not

No need to file refund claim for amount deposited during investigation

Excise & Customs : Amount deposited during investigation is a pre-deposit and where assessee's appeal has been allowed with consequential relief, same must be refunded and there is no need to file refund claim for that purpose

No addition of undisclosed investment on basis of report of DVO without rejecting books of account

IT : Where undisclosed income of assessee was determined by Assessing Officer on basis of valuation done by DVO without rejecting books of account of assessee, Assessing Officer was not entitled to resort to section 69B

Delay caused in filing appeal due to lack of proper guidance to assessee, layman was condonable

Service Tax : Delay caused in filing appeal due to lack of proper guidance is condonable, when it was shown that assessee was a semi-literate labour contractor

Compensation paid by developer on cancellation of an agreement wasn't deductible from income of diff

IT : Compensation paid by developer on cancellation of an agreement was not deductible from income of different project

Period of delay is irrelevant while deciding application for condonation of delay

CST & VAT : Maharashtra VAT - Length of delay is not relevant for considering application for condonation of delay; what is relevant is as to whether a party seeking condonation of delay has made out a case of sufficient cause or not

Tribunal can’t disregard its earlier order completely without any reason

IT: Bombay HC sets aside the order of Tribunal as it failed to indicate why and how its earlier decision would not apply in subsequent assessment year with same facts

Investment by banks in factoring Cos. and their subsidiaries can't exceed 10% of paid-up capital and

BANKING : Review of Provision of Factoring Services by Banks

'Servo Steerol C-6' used as cooling agent and friction reducing product are a 'lubricating preparati

Excise & Customs : 'Servo Steerol C-6' used as cooling and friction reducing product during cold rolling of mild and medium carbon steels is a 'lubricating preparation' and eligible for concessional rate of duty

Preparation and supply of Ready Mix Concrete amount to 'sale', thus not chargeable to Service Tax

Service Tax : Preparing Ready Mix Concrete (RMC) and delivering RMC at site and also performing other incidental activities of pouring, pumping and laying of RMC, etc. amounts to 'sale' and therefore, no part of it is liable to service tax

FCCBs and depository receipts shall not be treated as FDI

FDI/FEMA/ILT :Consolidated FDI Policy Circular 2015 – Introduction of Composite Caps for Simplification of Foreign Direct Investment (FDI) Policy to Attract Foreign Investments

AO couldn't enhance sec. 14A disallowance after rejecting voluntarily disallowance of assessee witho

IT : Where assessee declared tax exempt income and voluntarily disallowed certain expenditure under section 14A, in absence of reason why assessee's claim for disallowance under section 14A had to be rejected, Assessing Officer was not justified in recomputing disallowance

Mumbai Custom Authorities couldn't issue notice for offence committed in Gujarat

Excise & Customs : Where act of import took place at Gujarat, Mumbai Customs Authorities could not issue notice proposing confiscation and penalty in respect of act of import, which took outside their jurisdiction

Excise exemption on Anti-TB drugs is extended to April 1, 2016

EXCISE : Exemption to Anti-Tb Drugs and Diagnostic Equipments up to 1-10-2015 – Amendment in Notification Notification No.30/2013-C.e., Dated 29-11-2013

Order for an investigation u/s 213 of the 2013 Act wasn't warranted if respondents weren't guilty of

CL: Where there were no circumstances suggesting that respondents in formation of company or management of its affairs had been guilty of fraud, misfeasance or other misconduct towards company or any of its members; or that members of company had not been given all information with respect to its affairs, which they might reasonably expect, an order for an investigation was not warranted

Tribunal can't remand case to AO when validity of SCN itself is challenged

Service Tax/Excise/Customs : Where assessee has challenged validity of show-cause notice on ground that it was vague and time-barred, Tribunal cannot make an open remand for re-adjudication virtually allowing department to fill up lacunae in notices; Tribunal must adjudicate upon said issues itself

No denial of sec. 80-IC relief due to non-maintenance of separate books for manufacturing carried on

IT : An industrial unit manufacturing articles on job work basis is entitled to claim deduction under section 80-IC even though it has not maintained separate books for manufacturing activity carried out on its own and on job work basis

RBI further eases norms for restructuring of advances by NBFCs

NBFCs/INDIAN ACTS & RULES : Review of Guidelines on Restructuring of Advances by NBFCs – Amendment in NBF (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007

Provision for confiscation of goods under Kerala VAT Act isn't constitutional, says High Court

CST & VAT : Kerala VAT - Provisions of section 49 providing for confiscation by Authorised Officers in certain cases could not be struck down as unreasonable, arbitrary or violative of article 301 of Constitution

Import Licensing Regime Is Open, Transparent: India To Wto

India has clarified to the WTO members that its import licensing regime is open and transparent and affects only a few restricted items.

A WTO report, prepared as part of the trade policy review (TPR) of India held in June, has mentioned that India has a complex import regime.

In response to these observations, it was informed in the TPR that the duties are imposed to equalise internal taxes such as central and state value added taxes and other taxes leviable under domestic production, consumption of sale of goods, Commerce and Industry Minister Nirmala Sitharaman has said in a written reply to the Rajya Sabha.

These are not only WTO compatible but also commonly followed in most member countries, she said.

"It was also clarified to the WTO that India's import licensing regime is open and transparent and affects only a few restricted items primarily on the grounds of need to protect human, animal and plant life and environment," she added.

It was also mentioned that these differences would be further neutralised with the introduction of a more simplified Goods and Services Tax (GST).

In a separate reply, she said that India is working with WTO members to ensure permanent solution at the "earliest".

It was agreed by the WTO members to find a permanent solution by December 31 on a best endeavour basis.

Source:- business-standard.com

CCI slaps penalty on Karnataka film bodies for restricting telecast of dubbed T.V. Serials in Kannad

Competition Law : Where opposite parties engaged in business of films and TV serials exhibition, production and distribution etc. had been involved in practice of preventing release/telecast of dubbed films/TV-serial in State of Karnataka, conduct of OPs resulted in limiting and restricting market of dubbed films/serials in Kannada language in contravention of section 3 and, therefore, OPs were directed to cease and desist from indulging in such anti competitive practices and penalty was to be

TP study to be undertaken by Resale Price Method if AE was only distributing products of assessee

IT/ILT : TP study should be undertaken by Resale Price Method where AE was only undertaking distribution of assessee's products in local market

AO couldn't rule that input credit was based on false invoice without giving chance to assessee to p

CST & VAT : Karnataka VAT - Where Assessing Officer disallowed assessee's claim for input tax credit and arrived at a conclusion that claim was based on a false invoice even prior to extending opportunity to assessee to prove otherwise, matter required to be remitted back for being adjudicated by extending opportunity to assessee

HC admits winding up plea against respondent-co for failing to pay dues, grants time limit to discha

CL : Where petitioner-company had made out a case of outstanding dues against respondent towards supply of internet policy server software, respondent was granted time to discharge its liability to petitioner

80 Top Indian Exporting Firm Will Showcase Products At Indee-Peru

Encouraged by a rise in engineering exports to Latin America in an otherwise subdued international scenario, 80 top Indian exporting firm will be showcasing their hi-tech products and designs at an international convention 'INDEE' at Peru , beginning August five.

Being organised by the EEPC India, the two-day exhibition will see participation of large, small and medium companies from India which are eyeing the robust Latin American market for reaching out to new export destinations in the backdrop of weak global demand.

While total engineering exports from India declined by 5.80 per cent during April-May,2015, the shipments to Latin American markets increased by over 10 per cent to $550 million from $459 million in the corresponding months of the previous fiscal. "Within Latin America, Peru holds a pivotal position. Once India and Peru are able to negotiate a successful Free Trade Agreement (FTA), the bilateral trade would see a quantum jump. Since the FTA would cover investment as well, there should be lot more cooperation in setting up manufacturing and assembly units in each other's territory with a view to serve a larger market from these facilities", chairman of the EEPC India, Anupam Shah said.

He said, the commerce ministry, too is encouraging exporters to look beyond the traditional markets to diversify their portfolio.

INDEE-Peru is a part of the international convention where over 1200 global firms would participate, giving the Indian exporters opportunities to strike new deals and forge a higher level of relationship not only with the Latin American companies but also those doing business with the business. " Our members will showcase some of the best technologies in the areas of metallurgy, automotive and machine tools," the EEPC chairman said.

Peru is one of the freest economies in Latin America. The average custom duty on our products is 1.37 per cent. In recent years, the bilateral trade has shown an enormous growing tendency, from $80 million in 2003 to more than $1,317 million in 2013. In 2014, the Peruvian exports to India reached $321 million and $837 million of import from India. The bilateral trade includes mining, agricultural, fisheries, textiles, and chemical products. In sum, the bilateral trade has increased 10-fold in one decade. There is a considerable potential for both countries to enhance trade and economic cooperation in engineering products and services.

Indian exports to Peru include automobiles and motorcycles, other vehicles, along with electrical power transformers and other products, with various high-tech components among them. In the case of Peru, exports to India include electrical power transformers, looms for embroidery, and hyperbaric chambers. In all the above-mentioned cases, there has been an increase of 30 per cent in the last year.

Source:- economictimes.indiatimes.com

India To Reinstate Wheat Import Duty After Big Deals

India has decided to introduce an import duty of 10 percent on wheat after a gap of eight years, government sources said, after senior civil servants met to discuss ways to curb overseas purchases when domestic stocks are ample.

Last month some private firms signed deals to import 500,000 tonnes of high-protein Australian wheat in the biggest such purchases in more than a decade that led to criticism Prime Minister Narendra Modi’s government was letting down farmers.

India is the world’s second largest wheat producer and consumer after China, and its warehouses often hold double the target amount as farmers get more incentives to produce grains than oilseeds and pulses, which it imports heavily.

Top officials from the ministries of farm, food, trade and finance have now agreed to bring in a duty for the first time since 2006 to cut imports, said a high-level source directly involved in making the decision on the duty.

Another official involved in the discussions confirmed the meeting and its outcome.

The senior source said the duty is all but finalised, but did want to comment in public as it needs to pass through by Modi’s office. A spokesman for Modi could not be reached for comment outside regular business hours.

India was forced to import millions of tonnes of expensive wheat from Russia and Australia in 2006/07 after unusually high temperatures wilted its own crop.

Since then, bumper crops have made India an occasional exporter though production fell 5.1 million tonnes to 90.8 million tonnes this harvesting season – the first fall since 2007 due to unseasonable rains in February and March.

Source: Reuters.in

Value of captive consumption shall be marked up by 10% even in case of loss

Central Excise : In valuing captive consumption, notional profits at 10 per cent are to be added, even if assessee is incurring losses

Soon, China May Officially Import Buffalo Meat From India

China may soon start importing buffalo meat from India through the official channel instead of routing it through Vietnam. A team of Chinese quality inspectors are scheduled to examine Indian facilities this week to give their approval for exports.

Inspectors from China’s quality management body AQSIQ (General Administration of Quality Supervision, Inspection and Quarantine) will visit vaccination centres, review disease control programmes and also inspect some abattoirs, a Government official told BusinessLine.

“Once India starts exporting directly to China, costs will go down for both countries as they will not have to involve a third country. Buffalo meat exports reaching China can potentially double,” the official said.

New Delhi has been trying to convince China to allow buffalo meat from the country for long as the Indian meat is considered one of the best in the world and the country is now the largest exporter of the commodity. “We export buffalo meat all over the world including Western countries that have strict sanitary and phytosanitary conditions. There is no reason why China can’t buy from us,” the official said.

China had agreed to source bovine meat from India two years back and had even signed a Memorandum of Understanding for its export. However, it did not act on the matter at all.

Earlier this year, India nudged China through the World Trade Organisation, asking it not to unfairly block India’s exports and to take the required action that would allow shipments to move.

According to industry estimates, Chinese traders sourced more than $1.5 billion worth of Indian buffalo meat from Vietnam in 2014-15. “Exports have the potential to cross $ 3 billion once exports start officially as third parties will not have to be paid. The Chinese can also ensure that the quality standards are strictly adhered to,” the official added.

Source:- thehindubusinessline.com

Onion Prices Rise On Shortfall In India

Onion prices are rising as the production of the crop in India has been cut by unfavourable weather.

Onions retailed between Tk 45 and Tk 50 a kilogram yesterday, up 19 percent from a month ago, according to the Trading Corporation of Bangladesh.

Wholesale prices are going up faster. Onions traded between Tk 42 and Tk 50 yesterday from Tk 35 and Tk 36 per kilogram a week ago, said Ratan Kumar Saha, owner of Ratan Enterprise, a Dhaka-based onion importer.

“Import prices started going up after the Eid," said Md Alamgir Hossain, an onion importer at Bhomra Land Port, a station at Satkhira that handles most of the onions imported from India.

“Suppliers have said onion supplies are depleting fast in the Indian markets.”

Bangladesh consumes 20 lakh tonnes of onions a year. The country has to import 5 to 8 lakh tonnes a year to meet domestic demand, according to data from Bangladesh Bureau of Statistics and National Board of Revenue.

A bulk of the deficit is met through imports from India.
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Alamgir said he imported onions from the neighbouring country at around Tk 47 and Tk 49 a kilogram at Bhomra in the past two days.

The number of trucks carrying onions to Bangladesh has also declined in recent days, he said.

Unseasonal rains in parts of India in May hit the onion-growing areas hard. That is the time the crop is ready, but almost 25 percent of the produce was lost to the showers.

Onion supplies from Andhra Pradesh and Karnataka reach the markets in July, but the southern crop has been hit by the dry spell, according to Times of India.

At India's largest wholesale onion market of Lasalgaon in Maharashtra, the average price has leaped 54 percent in two weeks to Rs 2,550 ($40) per 100 kilograms -- its highest since November 2013, Reuters reported on July 24.

To curb the domestic price spiral, National Agricultural Cooperative Marketing Federation of India floated a tender last week to import 10,000 tonnes of onions from Pakistan, China, Egypt or any other origin.

Saha said the shortfall in India has fuelled the overall prices of onions worldwide.

"We used to import onions from China as well. However, prices have gone up there. Malaysia, Indonesia, Singapore and some Middle Eastern nations that usually bought onions from India, have also turned to China," he said.

However, onion prices should not go up much here because of a good local harvest in the immediate past season, said Saha.

BBS is yet to finalise the onion output for the last season, but Department of Agricultural Extension estimates that total onion production rose to 17 lakh tonnes in fiscal year 2014-15 from 14.88 lakh tonnes the previous year.

“So, the possibility of a surge in onion prices is low unless people start panic buying."

Source:- thedailystar.net

Packaging of fertiliser is part of manufacturing process; not liable to ST

Service Tax : Since fertiliser cannot be marketed without packaging, packaging of fertiliser is an integral part of manufacture and not taxable under Packaging Services

Rupee Trades Lower At 63.94 Against Us Dollar

The Indian rupee on Thursday weakened against the dollar, tracking losses in the Asian market.

The US Federal Reserve has left the key interest rate unchanged as the economy and job market continued to strengthen.

At 2.06pm, the rupee was trading at 63.94 per dollar, down 0.03% from its previous close of 63.90. The partially convertible currency opened at 63.94 a dollar and touched a high and a low of 63.92 and 64.04, respectively.

 

Since January this year, the rupee has lost 1.48%.

 

Most of the Asian currencies were trading lower. Japanese yen was down 0.177%, Taiwan dollar 0.288%, Malaysian ringgit 0.176%, Philippine peso 0.316%, Singapore dollar 0.277%, South Korean won 0.823%, Indonesian rupiah 0.141% and Thai baht 0.521%. Meanwhile, Hong Kong dollar gained 0.008%.

 

The Sensex index gained 0.54% or 148.40 points to 27,711.28 points.

 

The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.265, up 0.3% from the previous close of 96.976.

 

Ten-year bond was trading flat at 7.8%. It opened at 7.81% and touched a high and a low of 7.81% and 7.79%, respectively.

 

Source:- livemint.com

TCS provisions don't draw distinction between Indian timber and imported timber

IT : Section 206C does not draw any distinction between 'timber grown in india' and 'timber imported', from abroad

CESTAT can extend time to comply with pre-deposit order

Service Tax : As per section 86(6A), read with rule 41 of CESTAT (Procedure) Rules, 1982, Tribunal has power to grant extension of time to deposit an amount or to restore appeals dismissed on account of failure to comply with orders of pre-deposit

CBDT notifies new ITR forms 3, 4, 5, 6 and 7; mandates reporting of CSR exp. in ITR 6

IT/ILT : Income-Tax (Tenth Amendment) Rules, 2015– Substitution of Forms ITR-3, ITR-4, ITR-5, ITR-6 AND ITR-7

Dept. wasn't justified in levying interest from date of filing of return for default in payment of t

IT : Where assessee did not pay tax demanded under section 156, assessee was liable to pay interest only for period stipulated in section 220(2) and not from date on which return was filed

New pre-deposit requirement would not apply to disputes commenced before 6-8-2014

Excise & Customs : Right of appeal is governed by law prevailing at date of institution of suit/proceeding and not by law that prevails at date of its decision or date of filing of appeal; hence, where litigation between assessee and department commenced prior to 6-8-2014, new 7.5 per cent/10 per cent mandatory pre-deposit would not apply

Failure of AO to furnish acknowledgement of service of notice leads to quashing of assessment

IT : Where Assessing Officer had failed to produce any evidence regarding issuance and service of notice under section 143(2) to/upon assessee, assessment order passed by Assessing Officer was bad in law

Objection has to filed against valid SCN and not writ

Service Tax : Writ petition filed challenging show-cause notice and charge of service tax as ultra vires, is liable to be dismissed if it is found that virtually entire challenge is only against show-cause notice; in such a case, assessee must file objections to notice and have his say in matter

Assessee couldn't escape penalty by stating that he was unaware of provision requiring filing of TDS

IT : Even where assessee deducted TDS and deposited same with Central Government within prescribed time, but failed to file statements in Form 26Q in time, penalty under section 272A(K) was to be levied

Offences under FERA, punishment of which extends to seven years are non-bailable

FEMA : Offences under Foreign Exchange Regulation Act, 1973, punishment of which extend to a period of seven years are non-bailable

Tribunal can't import restrictions of sec. 35B of Excise Act to decide maintainability of appeal

Service Tax : Section 86(7) deals with hearing of appeals and making orders and cannot be used to decide on maintainability or competency of appeal by importing restrictions under section 35B of Excise Act; hence, matters relating to rebate of service tax on output services are appealable before Tribunal

AO gets flak from ITAT for reducing grant from cost of fixed assets without considering provisions o

IT : Where Assessing Officer reduced capital grant received by assessee-company from State Government from cost of fixed assets without considering provisions of section 43(1) and without deciding whether Government contributed amount as promoter's quota, matter was remanded for fresh consideration

Cheers To The Much-Awaited Gold Price Plunge

India has also replaced China as the biggest buyer of the metal last year, reclaiming the position it last held in 2012, after the jewellery demand leapt to the highest level since 1995, according to the World Gold Council.

The yellow metal described once by the celebrated economist John Maynard Keynes as a relic of the barbarian era has seldom failed to fascinate aficionados and critics alike with its price fluctuations. It is not surprising that in the present global context with a few positives surfacing to give a leg-up to the global economy and ending the extraordinarily long phase of ultra low interest rates in advanced countries, gold prices have plunged.

Early last week, global gold prices plummeted to their nadir in more than five years. The price declined by four per cent to as low as $1088 an ounce in Asian trade — the lowest since March 2010. Investors turned to the US dollar, which rose on the possibility of the Federal Reserve raising interest rates in a stronger US economy. The first sign of tightening of US monetary policy since 2006 and the retreat of negative yields in the eurozone are reasons enough for gold prices to tumble.

Interestingly, the price plunge occurred despite the Middle Kingdom, the world’s biggest consumer, announcing on July 17 that its gold reserves were up 57 per cent at the end of June, compared with the last time it disclosed reserve figures in 2009. Still, gold now accounts for 1.65 per cent of China’s total foreign exchange reserves, compared with 1.8 per cent in June 2009, in spite of the increase in tonnage.    

For India, the price fall has not come a day too soon. In the wake of a mini balance of payments crisis partly triggered by an inordinate spurt in gold imports in the erstwhile UPA government’s second tenure, in 2013, the authorities had to raise the import duty thrice in that year. And link imports to re-exports to contain the deficit and the fall in the rupee value.

The steps helped pare down the deficit to $32.4 billion in 2013-14 from $87.8 billion the previous year, according to the Reserve Bank of India. The government allowed more agencies to import gold in May and scrapped the 20:80 rule requiring importers to sell 20 per cent of their purchases to jewellers for re-export in November, 2014. These measures kindled hope that the government might lower the duty.

The All India Gems & Jewellery Trade Federation, which had urged the government to cut the tariff to 2 per cent, said on Feb 28, 2015 that the industry felt let down by Arun Jaitley’s decision to retain the tax. But the savvy finance minister stuck to the duty not merely to fill the coffers but also to put paid to reckless import of the yellow metal so that the die-hard hoarders would find the going tough and expensive to sustain.

India has also replaced China as the biggest buyer of the metal last year, reclaiming the position it last held in 2012, after the jewellery demand leapt to the highest level since 1995, according to the World Gold Council.

India’s total demand in 2014 was 842.7 tonnes, 14 per cent lower than the previous year, while China’s sank 38 per cent to 813.6 tonnes, it said.

The pernicious fallout of high import duty on gold is that smuggling supervened on a larger scale than ever before. About 200 tonnes of gold were smuggled in 2014, after controls drove premiums paid by jewellers to as much as $160 an ounce over the London cash price, the bullion industry contended.

In a move designed to wean people away from putting their savings on inert metals like gold, the 2015-16 full-fledged NDA budget proposed a plan to monetise domestic gold that allows depositors to earn interest in their metal accounts and jewellers to receive loans against such deposits. It was also proposed to offer sovereign gold bonds to investors as an alternative to bullion with the bonds bearing fixed rate of interest that are redeemable in cash at the face value of the metal. How far this tack will succeed relies on how fast the sentimental hold of gold on people is systematically disabused by campaigns and strategies.

Source:dnaindia.com

CCI slaps 420 crores penalty on Hyundai for restricting supply of genuine spare parts in open market

Competition Act : Where opposite parties i.e., Hyundai, Reva and Premier held a dominant position in aftermarket for their own brand of spare parts and diagnostic tools, practice of OPs in denying availability of their genuine spare parts severely limited independent repairers and other multi brand service providers in effectively competing with authorized dealers of OPs in aftermarket and, thus, OPs abused their dominant position in contravention of section 4

Assessee couldn't take Cenvat credit when entire manufacturing and duty payment was done by job-work

Cenvat Credit : Where assessee did not do manufacturing activity and both manufacturing and duty payment were done by job workers, assessee cannot be considered as manufacturer for taking Cenvat credit

Duty can't be demanded in case of revenue neutral situation

Excise & Customs : No demand can be raised in case of revenue neutrality viz. if duty payable by one unit of assessee was available as credit to another unit

AO couldn't proceed with reassessment without disposing of objections of assessee which went to root

IT : Where assessee raised objection that he was not engaged in mining activities, rather it only purchased and exported iron ore, since objection went to roof of matter in determining whether related income was 'income from business' or 'other income', Assessing Officer could not initiate reassessment without disposing objection

Traders Jittery As Govt Plans To Hike Wheat Import Duty By 10 Per Cent

Traders and processors of wheat products from pasta to bread are concerned over a likely move by the government to impose a 10 per cent duty on the cereal grain to discourage imports. Analysts said the step is aimed at helping the Food Corporation of India offload wheat of poor quality on account of unseasonal rains. Traders have contracted to import over 5 lakh tonnes of wheat this year, they said.

"We have yet to receive the notification and even if it comes, we fail to understand why 10 per cent duty will be imposed. Import of 5 lakh or 10 lakh tonnes doesn't make any difference in a country where wheat production is 900 lakh tonnes," said Veena Sharma, joint secretary of the New Delhi-based Roller Flour Millers' Federation of India.

The 10 per cent import duty on wheat is aimed at protecting farmers from cheap overseas grain, a government official said. The commerce and revenue department will come out with the notifications, the official added. Sharma said the actual quantity of wheat imported so far does not exceed 1 lakh tonnes. "Where is the data that 5 lakh-10 lakh tonnes wheat contracts has been signed? This move will only increase prices of domestic highquality wheat and further on wheat products like atta, maida, suji and bran," said Sharma.

Flour millers typically mix premium quality Australian wheat with the local grain during milling, mostly to make high-end products such as pasta and noodles. However, according to trade analyst Tejinder Narang, the government is only trying
to offload its low-quality wheat in the market while trying to prevent the entry of high-quality wheat from Australia, which is cheaper. "High-quality Australian wheat at south Indian ports is at Rs 18,500-19,000 per tonne compared with domestic prices of Rs 20,000-21,000 a tonne," said Narang.

"Out of the 28 million tonnes of wheat procured by the government in the 2014-15 season, 90 per cent was of low quality, out of which 30 per cent is of extremely poor quality," said an official of a multinational trading company who did not want to be identified. Import duty would hurt the margins of small bakers and they would have to increase the cost of products, said Jagdish Narayan Kushawaha, president of the Society of Indian Bakers.

"Big players like BritanniaBSE -0.16 %, Hindustan Lever and Parle to small bakery stores will have to increase cost of products if import duty is imposed," he said, adding that small-scale bakers accounted for over 40 per cent of the Rs 30,000-crore industry.

Source:economictimes.indiatimes.com

 

Banks Need Import Duty Protection To Rescue The Steel Sector

Steel sector has seen its first casualty. Lenders have taken over control of Kolkata based Electrosteel Steels after the Reserve Bank of India cleared the path for banks to take over management of companies.

However, taking over of the company is not the end of the problem in the current scenario, especially in the steel sector. It is the beginning of a new one. Bankers have realised that there are no takers for these companies, not atleast at the price at which the bankers want to exit.

The problem with steel companies is that their debt is higher than their market capitalisation. Neelkanth Mishra of Credit Suisse has pointed out that the outstanding debt of the steel sector is nearly four times its market capitalisation. Unless banks are willing to take a hair-cut, there is little hope for the sector in the near future. And there is more to worry looking at the manner in which events are unfolding globally.

China is slowing down, which is catastrophic for the steel sector. China now exports more steel than the production of the second largest player in the world, Japan. A slowdown in domestic demand has resulted in China flooding the world market with steel. The country exported 52.4 million tonnes in the first half of 2015, up by almost 28 per cent compared to the same period of 2014. Monthly exports are growing at an annualized pace of around 107 million tonnes that's close to last year's production of the whole of North America.

Trade tensions globally are rising. U.S. Steel Corp. and ArcelorMittal are among group of producers in the U.S. who have filed a case against imports of cold-rolled steel. ArcelorMittal South Africa Ltd. said last week that they will fight against the import of steel from China, which is being sent to ports at prices as much as 25 percent below local output costs. ArcelorMittal wants the government to increase tariffs.

Indian companies too would want the government to increase tariffs. Total finished steel imports in India rose 53.1% in the April-June period on a year-on-year basis. The average spot price of hot-rolled steel sheets in China, a major exporter for steel to India, corrected 12% from April to June-end.

China’s slowdown of 1.3 per cent in the first half is expected to pick up as both the consuming sectors in the country – real estate and automobile are going through a rough patch. This would mean that imports will continue into India and steel companies will continue to face difficulties in servicing their debt.

Mishra pointed out that the total debt outstanding to Indian steel companies was nearly $50 billion. This was nearly ten times the industry’s Ebitda (earnings before interest, taxes and depreciation). Last year average Ebitda per tonne was just $63. But after that steel prices have come down by almost $160 per tonne, indicating that companies would have lesser money left in their hand to service debt.

Under such circumstances, finding a buyer for steel companies will be a tall task for the bankers. But with steel industry holding nearly $50 billion in debt, bankers have reason to feel jittery.  India is one of the few countries where demand is growing at a respectable pace. What both the steel industry and bankers need is protection from imports. Hope the government has its ears to the ground.

Source:business-standard.com

Haldia Petro Might Get Relief Over Missed Exports

The Directorate General Foreign Trade (DGFT) may grant West Bengal’s showpiece industrial project Haldia Petrochemicals more time to pay a Rs 2,600-crore fine for failing to meet its export obligations between 2010 and 2013.

According to a government official in the West Bengal Industrial Development Corporation, the DGFT might also waive a portion of the fine. The technicalities were being worked out, he added.

Amit Mitra, West Bengal’s finance minister, met Arun Jaitley, Union finance minister,  to seek his intervention in this matter. Jaitley assured Mitra steps would be taken to ensure Haldia Petrochemicals continued operations.

“Both of them had a serious discussion. There is hope the issue will be solved soon. This is of supreme importance for the industrial scenario of Bengal,” a government official said.

Earlier, Director General of Foreign Trade Praveer Kumar had said it had been decided to reject Haldia Petrochemicals’ plea for relaxation of customs duty for failing to meet export targets.

Haldia Petrochemicals had obtained permission from the DGFT for importing naphtha at zero duty under the advance licensing scheme. Accordingly, the company had to meet an export obligation of the finished product, which it failed to do.

Haldia Petrochemicals, run by the Purnendu Chatterjee-led The Chatterjee Group, has been operating at 85 per cent efficiency and production is on at full capacity.

A consortium of lenders led by Industrial Development Bank of India (IDBI) recently agreed to sanction a  Rs 2,300-crore restructuring package for Haldia Petrochemicals. “We are closely watching the issue as there is a huge exposure to Haldia Petrochemicals,” said a banker.

“This liability was not mentioned in the quotation when we had bid for Haldia Petrochemicals, hence we are not bound to pay it,” a source in The Chatterjee Group said. The Chatterjee Group had agreed to buy 520 million shares — 30.8 per cent of Haldia Petrochemicals’ equity  —  from the West Bengal Industrial Development Corporation at Rs 25.10 each, matching the price offered by Indian Oil Corporation, after the government invited expressions of Interest last year.

Haldia Petrochemicals, one of the largest manufacturers of high-density polyethylene in the country, supplies different grades of polymers mainly in eastern India. According to industry estimates, Haldia Petrochemicals has a 12.8 per cent share of the polymer industry when it operates at the optimum level.

Source:business-standard.com

Donation can't form part of value of service when there is no connection between donor and service r

Service Tax : Where there was no nexus between donors and coaching aspirants, donations/grants received from donors cannot form part of value of coaching services provided to coaching aspirants

No Change In Cenvat Rules On Excise Duty For Textile Goods

There is no change in exemption from excise duty for textile goods as mentioned in central value added tax (CENVAT) Rules 2004, the Union Ministry of Finance has clarified.
 
The Central Board of Excise and Customs (CBEC) had issued a notification on July 17, 2015, which stated that the excise duty credit could be claimed by the manufacturers of end products only if the previous links in the manufacturing chain had paid the excise duty for the inputs at each of the stages.
 
This notification has created some confusion as the textile production chain remains scattered. Subsequently, a few representatives from the textile industry met senior officials in the ministry and sought clarification.
 
Through its Notifications no. 37, 38 and 39 of 2015, the ministry has clarified that there is no change in CENVAT Rules 2004 with respect to exemption from excise duty for textile goods.
 
The notification reads, “For the purposes of this condition (as mentioned in July 17 notification), appropriate duty or appropriate additional duty includes nil duty or concessional duty, whether or not read with any relevant exemption notification for the time being in force.”

Source:fibre2fashion.com

Rupee Gains 6 Paise Against Dollar In Early Trade

The rupee strengthened by 6 paise to 63.85 against the dollar in early trade on Wednesday on increased selling of the US currency by exporters and banks amid firm domestic equity markets.

Forex dealers said that weakness in the dollar against other currencies overseas also supported the rupee.

Yesterday, the rupee ended 25 paise higher at 63.91 against the US dollar on fresh selling of the American currency by banks and exporters.

Meanwhile, the benchmark BSE sensex rose 132.42 points, or 0.48%, at 27,591.65 in early trade today.

Source:timesofindia.indiatimes.com

Submission of affidavit of gift received from spouse didn't explain source of investments found in s

IT : Where during search and seizure, investments were found in name of assessee, presumption could only be that they formed part of unaccounted income of assessee and mere fact of producing affidavit of close relatives would not be sufficient explanation

Rectification couldn't be based on a new fact which wasn't mentioned in SCN and adjudication order

Service Tax : Where a fact/ground neither finds mention in show-cause notice nor in adjudication order, Tribunal cannot be said to have committed an error by passing an order in ignorance thereof; hence, rectification application on such a new ground cannot be sustained

IRDA releases FAQs on various insurance policies

INSURANCE : FAQs on Various Insurance Policies

Discount allowed by TeleCos to distributors on prepaid recharge coupons was liable to sec. 194H TDS

IT : Discount allowed by assessee to its distributors in respect of starter packs and recharge coupons for its prepaid mobile service amounted to payment of commission or brokerage requiring deduction of tax at source under section 194H

Share appreciation rights granted to a Managing Director won't be governed by Share based employee b

SEBI : Request For Interpretative Letter By Saregama India Limited

Share based employee benefit norms not applicable to 'Phantom Stock Scheme', says SEBI

SEBI : Request For Informal Guidance By Mindtree Limited

Portfolio Managers not required to be registered under Research Analyst norms, says SEBI

SEBI : Request for Interpretative Letter by Wealth Advisors (India) Private Limited

In absence of statutory provision, internal request made by AO to Commissioner doesn't construct ref

CST & VAT : Assam VAT - Under Assam General Sales Tax Act, there is no provision for reference, in absence of such a provision, internal request made by Assessing Authority to Commissioner for clarification regarding taxability of goods could not be construed to be a reference in law

Estimation of income by comparing gross profit of local suppliers was justified as books of assessee

IT : Where assessee's books of account and purchases and expenses shown therein were found non-reliable, books of account were rejected and income was estimated by comparing GP shown by suppliers from same locality

SARFAESI Act shall prevail in case of conflict between its provisions and provisions of Companies Ac

CL: Legality and validity of sale of mortgaged property under SARFAESI Act has to be brought for scrutiny before Debts recovery Tribunal; jurisdiction of Company Court is ousted

AO gets flak from ITAT for disallowing business exp. on the ground that no business receipts were ea

IT: Opinion of Assessing Officer that assessee was not carrying on any business as no business receipt was earned, was erroneous and unsustainable; and expenditure incurred on salaries of software professional was allowable under section 37(1)

Preoperative exp. incurred to expand existing business was revenue exp.

IT : Where assessee company expanded its existing business and claimed said expenses as pre-capitalisation cost, same was to be treated as revenue expenditure

“Nasty” Fungus Slows Indian Mango Exports In 2015

The EU import ban on Indian mangoes was lifted. Growers and exporters had renewed energy and expected to supply high volumes at solid prices to global markets. They were even setting up shipment trials in new importing countries. However, all these positive developments were dampened by heavy rainfall at home.

“A mixed bag” is the way one Indian mango official describes the overall crop and export campaign of 2015. “One the one hand we could ship to European Union markets like the U.K. because it was open again, but on the other hand the quality just was not there this time around,” D.K Sharma, of the All India Mango Growers Association (AIMGA).

“Heavy rainfall earlier this year during March and April in particular, put paid to what was expected to be a very good season, especially because Indian mangoes were back in the EU.”

The major mango-growing states of Andhra Pradesh, Uttar Pradesh, Karnataka, Bihar, Gujarat and Tamil Nadu are where hundreds of different varieties are grown, although the export market tends to focus on key cultivars such as the Banganapalli, Suvarnarekha, Neelam and Totapuri.

In addition, Maharashtra mainly grows Alphonso mangoes which are very popular in the British and EU markets. Many of these states were battered by downpours that coincided with growers harvesting their crops across the production belt, leading to poor quality.

Although the main importing countries like the United Arab Emirates, Saudi Arabia, Kuwait, Qatar, Bangladesh, Nepal and the U.K. still imported the Indian ‘king of fruits’, prices were pushed up because of limited availability and the anticipated high volumes were washed out. “Due to the extremely heavy rain in many parts of the country – not only was the quality affected but a nasty fungus set in.

“The outside of the mango skin was a black color and the fungus ran through the fruit which of course meant that large quantities of mango were just not up to the mark and no good for export. “Somehow a type of infection on the upper surface of the mango set in and the appearance deteriorated.”

Sharma says this can happen when a delicate fruit like mango becomes saturated with water and growers may not have initially realized their crops were so badly damaged.

“We carried out assessments and found much more of the overall production volume was damaged. However, the fungus did not show up at first and farmers may have thought everything was fine when in fact it was not.”

Despite the setbacks, India’s total mango production this season fell just short of 43,000 metric tons (MT), according to statistics from the Agricultural & Processed Food Products Export Development Authority (APEDA).

However, overall export quantities do not look too bad when compared to last season. During the 2013-14 campaign 41,280MT were exported, 55,584 MT went overseas in 2012-13, and 63,441MT were shipped in 2011-12.

“The figures for this year do not seem out of place, although from a production point of view there could have been much higher export volumes this season, if it were not for the dip in quality,” says a spokesman for the Indian National Horticultural Board.

“The rains really dented the quality and the farmers just couldn’t rescue much of the crop. It’s sad, but it happens all of the time in agriculture.” Elsewhere, the sector was bolstered by a new agreement with Mauritius and mango shipments resuming to Japan.

In order to capitalize on the Japanese market, which has been negligible for the last few years, APEDA agreed to cover the costs for a Japanese quarantine inspector to be based at a government-backed vapor heat treatment facility to help make the fruit competitive in the East Asian market.

Earlier this year, exporters agreed to supply a minimum of 50-70MT during the 2015 season, increasing to 100MT for 2016 and 150MT in 2017.

In other markets, nominal volumes were supplied to Mauritius for the first time following a new agreement between the two countries. The forecast is an annual supply to the island nation between April and August. Despite the disappointments, Sharma remains philosophical.

“The season is basically at an end now except for a few supplies here and there. “Although it’s true that this is not a good season for the Indian mango industry, next season could be better. Who knows because it will depend on the climatic conditions, as it always does. Here in India, farmers are at the mercy of the elements.

Source:freshfruitportal.com

Unclaimed amounts of policy holders to be invested in money market instruments and FDs in scheduled

INSURANCE : Handling of Unclaimed Amounts Pertaining to Policyholders

Desi Tyre Companies Reel Under Onslaught Of Chinese Imports

The tyre industry is burning rubber over the issue of cheap Chinese imports. A huge influx of imported tyres in the past 12 months is causing Indian tyre companies a lot of heart burn in the truck, bus and car radial replacement market.

Sources in the tyre industry say already imported tyres comprise a staggering 20% of the car and 25% of the truck radial replacement market which makes the import segment market leaders instead of local biggies like JK Tyre, Apollo, MRF or Ceat.

Tyre dealers, on the other hand, say the imports meet local quality standards, are duly BIS certified and are cheaper than Indian tyres because they have passed on the reduction in raw material prices. With both the domestic industry and the tyre dealers demanding action from the government, the issue is poised for a bumpy ride ahead.

Said Vikram Malhotra, director-marketing, JK Tyre: "We are getting badly injured by the flood of imports because they are typically priced 20-30% lower. Sometimes it's lower than our raw material price so we cannot match that. Imports were up 120-130% last year and this June it jumped 25-30% over May 2015.

We have been petitioning the government but there has been no assurance as yet." The problem, he said, was that the imported tyres pay lower duty than the Indian companies pay for raw material due to the Asean agreement. "The tyre imports pay 5-7% duty while we pay 25% on raw material like rubber so it's a double hit for us," said Malhotra.

The bone of contention is the 3-3.5 lakh units per month truck radial replacement market and the 12-14 lakh units per month car radial replacement market. While vehicles come fitted with made in India tyres, replacement demand is now driving towards imports from Taiwan, Korea and China instead. Meanwhile MNC tyre biggies say their quality will set them apart even as Indian tyre companies want anti-dumping duty.

"Over the past few weeks there has been an increase in import of Chinese tyres into India. We are not unduly bothered about these as we know what Michelin quality is. Besides, we compete with all the tyre manufacturers all over the world," said Nour Bouhassoun, chairman and president, Africa-India-Middle East, Michelin.

Tyre dealers, though, say the imports are consumer friendly because they reflect global raw material prices better than locally made tyres. Said SP Singh, convenor, All India Tyre Dealers Association (AITDA): When the government mandated BIS quality certification for all tyres sold in India it created a two-year import lull as imported brands ought necessary certification. During that time, local tyre companies hiked prices by 25-35%. Today raw material prices have come down to 2009 level but the sharp price hike has not been rolled back. But imported tyre prices have come down in tune with the drop in rubber and other raw material prices so they are more affordable."

AITDA has now locked horns with domestic industry in seeking that no anti-dumping duty in imposed on imported tyres. "The domestic industry is in the habit of seeking tariff and non-tariff barriers but the truth is that 80% of truck and bus tyres in the replacement market are nylon fabric tyres on which there's already an anti-dumping duty," said Singh. "Domestic industry started this campaign against imports way back in 2005.

In 2008, domestic industry went to the government and got restriction on import of truck and bus radials. This was lifted in 2010 after AITDA and truck operators pressed for it. But domestic industry still got anti-dumping duty imposed on truck and bus radial imports. In 2011, the imposition of anti-dumping duty on truck bus radial was struck down by customs, excise and service tax tribunal and domestic industry moved court. The matter remains sub judice even now," he added.

Tyre dealers say the reason for the spurt in imports is due to the fact that the imported brands now have the BIS certification required to sell in India. "In 2009, the government put in place the tyre quality control order so all locally made and imported tyres had to get BIS certification," said Singh.

Source:timesofindia.indiatimes.com
 

Petrol And Diesel Prices May Come Down From August 1

Consumers can expect a reduction in petrol and diesel prices on August 1 when oil marketing companies review rates, thanks to falling global prices. International crude oil prices declined to their lowest in about four months on Monday.

“The drop in global oil prices would have positive bearing on India’s economy as the import bill would come down... the current account deficit would also remain in check,” minister of state for finance Jayant Sinha told HT. On July 16, oil marketing companies, led by Indian Oil Corp Ltd, reduced the retail prices of petrol and diesel each by `2 per litre.

India imports nearly 80% of its energy needs, on which it gives a subsidy. While budgeting its subsidy outgo, the government had factored in a global price of $70 a barrel and an exchange rate of `63 to a US dollar. While the Indian import crude basket is currently hovering around $54 a barrel, the rupee-dollar rate is at `64.17.

In Budget 2015, finance minister Arun Jaitley had earmarked `30,000 crore for subsidies towards petroleum products. According to data by the Controller General of Accounts, till May 31, just over `8 crore out of the budgeted subsidy for 2015-16 has actually been disbursed.

Carsten Fritsch, senior oil market analyst at Commerzbank, said over phone from Frankfurt that the oversupply in the global market is currently hovering around 1.5-2 million barrels per day.

Source:hindustantimes.com

Auction of goods is illegal if they were seized without evidence

CST & VAT: Tripura VAT - Where Officer-in-charge of Churaibari check-post [Tripura State] checked a truck carrying goods of assessee from Guhawati to Agartala by way of stock transfer and taking view that value of goods given in documents was incorrect seized goods and thereafter Commissioner had sold goods in a public auction, entire action of revenue authorities was totally illegal

India: Oil Imports From Saudi Arabia Down 8%

India has cut crude oil imports from its top supplier Saudi Arabia by over 8 per cent in 2014-15 as it raised purchases from Africa and Latin America in an apparent bid to cut reliance on volatile Middle-East.

Crude oil import from Saudia Arabia was cut to 34.99 million tonnes in the year to March 31, 2015 from 38.18 MT in 2013-14, Oil Minister Dharmendra Pradhan said today.

While imports from sanction-hit Iran were almost flat at 10.95 MT, shipments from Kuwait fell to 17.85 MT from 20.35 MT. Imports from Iraq were almost flat at 24.51 MT but the same from UAE rose 15 per cent to 16.11 MT.

Overall, imports from Middle East fell by over 5 per cent to 109.88 MT, he said in a written reply to a question in Lok Sabha here. Crude oil imports from Africa and South America rose 10 per cent each as Indian refiners bought more heavier but cheaper grade oil, he said.

Indian refineries have consistently reduced imports from traditional markets like Saudi Arabia and stepped up purchases from newer geographies like Mexico and Venezuela as imports have become viable due to availability of cheaper variants and softening of shipping cost.

India imported 189.44 MT of crude oil in 2014-15, almost unchanged from the previous fiscal, to meet over 80 per cent of its oil needs. Saudi Arabia was the top supplier with 34.99 MT with Iraq being number two.

Venezuela was a very close third with 24.40 MT of oil supplies, 13 per cent higher than 2013-14. With 17.82 MT of crude oil supplies, Nigeria was tied with Kuwait for the fourth spot.

Pradhan said imports from Africa rose to 33.05 million tonnes in 2014-15 from 30.39 MT in the previous year. They went up from South America too, to 34.46 MT from 31.73 MT in 2013-14. Mexico supplied 5.06 MT of crude oil in 2014-15, marginally higher than 4.94 MT a year ago.

Pradhan said imports from Iran, which was once the second biggest crude oil supplier to India, was 10.95 MT, almost unchanged from 11 MT in 2013-14. In 2012-13, India had imported 13.14 MT of crude oil from Iran.

New Delhi has maintained crude oil imports from Iran at 2013-14 level as the US looked to financially choke Tehran to bring it to negotiating table on its controversial nuclear programme.

Pradhan said Prime Minister has set a target for reduction in import dependency in energy by 10 per cent to 67 per cent by 2012-22, from 77 per cent dependency in 2013-14.

“A Committee has been constituted under the Chairmanship of Additional Secretary, Ministry of Petroleum and Natural Gas, to prepare a roadmap in order to achieve the target,” he said.

Source:hellenicshippingnews.com

India: Steel Firms Cut Prices As Imports Pour In

Local steel makers are cutting prices to avert loss in market share as cheaper imports from China, Korea and Japan flood the market. Hot-rolled steel prices dropped by Rs.3,000-4,000 a tonne in the April-June quarter, said Vikram Amin, executive director, strategy and business development, Essar Steel India.

As on 1 July, the average price of hot-rolled steel was Rs.36,100 per tonne in Delhi, according to data available with the Joint Plant Committee (JPC) of the steel ministry.

This, industry experts and traders say, has led to a gap between the landed cost of imported steel and domestic steel prices narrowing down in the last few months, a clear indication of steel companies focusing on volumes and giving up on margins.

During the March-April period, the landed cost of imported steel in the hot-rolled category in India was lower by about Rs.2,000-3,000 per tonne, said Ajay Srinivasan, director, Crisil Ratings. This gap, Srinivasan said, has narrowed to Rs.1,000 per tonne now.

Vivek Gupta, vice-president, Indian Chamber of Steel, and a leading steel dealer in Mumbai said for a broader category of steel products, the difference between imported and domestic steel prices has narrowed from a range of 15-20% in April to 5-15% now, depending on the product category.

Amin from Essar added that the domestic steel price correction is a result of cheap imports and the depreciation in the currencies of various steel exporting countries.

According to JPC data, total finished steel imports by India rose 53.1% in the April-June period on a year-on-year basis. The average spot price of hot-rolled steel sheets in China, a major exporter for steel to India, corrected 12% from April to June-end.

“There is a surge in volumes in imports due to dumping, resulting in squeezing the margins of domestic companies,” said Jayant Acharya, director (commercial and marketing), JSW Steel Ltd. He did not share details on the steel price movement as the company is in its silent period ahead of its earnings report next week.

JSW Steel produced the highest ever quarterly crude steel volume of 3.4 million tonnes for the June quarter, it said in a statement on 13 July. The company is yet to disclose the sales figure for the same period.

Tata Steel Ltd said its sales volumes for the June quarter rose 2% to 2.14 million tonnes in a statement sent to BSE on 9 July. “Being an industry with high capital investments and hence high fixed cost, focus is generally on increasing capacity utilization to recover maximum fixed cost and improve margins in spite of reduction in prices,” said a SAIL spokesperson.

“Falling international steel prices have affected domestic prices of steel. The average price realisation for SAIL has dropped by 17.4% in the June quarter with respect to the corresponding period last year,” the SAIL spokesperson said.

Srinivasan of Crisil Ratings explained, “Notwithstanding the weak rupee and rise in import duty, domestic steel makers are under tremendous pressure with steel prices falling globally. Domestic steel makers have been forced to bring down prices, focusing on volumes than margins.”

Jimesh Sanghvi, an analyst at IL&FS Broking Services, in a 9 July note said the drop in steel prices will adversely impact integrated steel players such as Tata Steel and SAIL. Some expect pressures on margins to continue in the September quarter.

Srinivasan expects global steel prices to fall below $370-390 per tonne. “This (global price correction) will force domestic steel companies to follow suit,” Gupta said. In addition, July-September is a weak quarter for steel companies. “The demand and prices start to pick up after October. We expect the same trend to continue even this year,” said Amin.

Source:hellenicshippingnews.com

Rajesh Exports To Venture Into Gold Mining In 2-3 Years; Expand Refinery, Retail Stores

Rajesh Exports acquired Valcambi in an all-cash deal of $400 million on Monday. Rajesh Exports Limited on Monday announced its 100% acquisition of Valcambi, the world's largest gold refinery in an all-cash deal of $400 million.

Valcambi has, for the last three years, been producing over 900 tonnes of gold on an annual average, which means, that gold from the company alone could be enough to satiate India's annual average gold import which usually hovers around 800 tonnes.

Rajesh Exports also announced its plans of foraying into gold mining in the next 2-3 years. On a more immediate basis, the company will upgrade and expand its existing refinery at Rudrapur in Uttarakhand.

1-2 years, we are planning to expand our refinery in Uttarakhand with world-class technology from Valcambi. This will be under the 'Make in India' initiative that help us in providing international raw material in the domestic market," Rajesh Exports' managing director Prashant Mehta said.

One of the main reasons for the acquisition cited by Mehta was to meet the raw material requirement, which is deemed difficult. "The consistent supply of raw material is a big issue. With this acquisition, there will be smooth supplies at lower prices," he said.

The acquisition will help boost revenues and profitability of Rajesh Exports in coming years, he added. The company expects to become debt-free in four years, he added.

Going forward, Rajesh Exports said the company, which has a controlling market share (50%) in supplying raw materials to 14 states, is also planning to expand the number of stores under its retail brand 'Shubh' to 450 from the existing 82 in the next three years.

In Monday's trading session, Rajesh Exports' stock price rose to a high of Rs 549.95 a share, before closing at Rs 540.10, up 2.09% from previous day's close.

Source:dnaindia.com

Rupee Appreciates Against Us Dollar

Snapping its four-day losing streak, rupee advanced 7 paise to 64.09 per against dollar in early trades today. The local currency had closed at a fresh six-week low of 64.16 on Monday amid persistent demand for the greenback from banks and importers.

All eyes were on the US Federal Reserve's two-day meet beginning later in the day. Cues on when the US apex bank will start raising interest rates will be a key factor that may drive dollar movement in the near future.

"While our US economists expect a September rate hike, they think that the FOMC statement would emphasize data dependence and eschew any overt signals about the timing of liftoff," said BofA-ML in a research note. JPMorgan too expects the US Fed to start hiking rates in September.

In an interview to ET, Adrian Mowat of JPMorgan said, "Our base case is the US Federal Reserve will exit zero interest rate policy in September meeting. We expect fair amount of guidance post the July meeting with regard to exiting zero interest rate policy in the September."

Dollar index, which tracks the movement of dollar against a trade-weighted basket of six major world currencies, stood almost flat at 96.52.

"We do not expect the RBI to offer anything more than a token resistance at Rs 64/dollar given that the rupee is seasonally weak in August. With our equity strategists expecting BSE Sensex stocks to post zero per cent profit growth, it is natural that portfolio flows will stall," the BofA-ML note said.

The brokerage though expects the Governor Raghuram Rajan to sell $15 billion of dollars to defend Rs 65 per dollar levels.Bofa-ML's FX strategist, Adarsh Sinha, sees rupee at 64 per dollar in September.

Source:economictimes.indiatimes.com

Cap gain of inherited asset is to be computed by taking CII of the year in which asset is acquired b

IT : As per section 49 where capital asset became property of assessee by succession or inheritance, then cost of acquisition of said asset shall be deemed to be cost for which previous owner of said property has acquired it

Delhi High Court allows 'Red FM radio' to participate in e-auction of FM Channels

CL : Where petitioner radio broadcasting company was denied security clearance and its application for pre-qualification for e-auction of first batch of private FM Radio Channels (Phase – III) was rejected on ground that two of its shareholders had been prosecuted under Prevention of Money Laundering Act, impugned decision denying security clearance to petitioner company was to be quashed as those two shareholders were not directors in petitioner company and controlling interest vested with othe

Loading, unloading and shifting of goods within factory doesn't amount to Cargo Handling Services

Service Tax : Loading, unloading and shifting of sugar bags within sugar factories would not amount to Cargo Handling Services and would, therefore, not be liable to service tax

Running an Allopathic Hospital isn't ultra vires to object of improving Ayurvedic system of Medicine

IT : Where the objects of the trust include "(2)Devising means for imparting education in and improving the Ayurvedic system of Medicine and preaching the same. In order to gain objects No.2 it is not prohibited to take help from the English or Yunani or any other system of medicine and according to need one or more than one Ayurvedic Hospital may be opened.",it cannot be held that running an allopathic hospital is ultra vires to the objects of the trust and exemption u/s 11(1)(a) cannot be deni

Transport, insurance and interest subsidies received by industrial undertaking were eligible for sec

IT : Where amount of transport subsidy, interest subsidy, insurance subsidy and power subsidy had direct nexus with profits and gains derived by industrial undertaking, deduction under section 80-IC has to be granted in respect of subsidies so received

Offerings received in donation boxes of temple can't be taxed as black money under Sec. 115BBC

IT: Section 115BBC is not applicable to institutions like that of assessee trust being a temple or shrine; provisions of this section are meant to check inflow of unaccounted/black money into system with a modus operandi to make out as a part of accounts of institutions like university, medical institutions where problem relating to receipt of capitation fees, etc. is generally highlighted.

Normal loss of finished goods is also liable to duty unless remission application is filed for such

Excise & Customs : Limit of wastage specified by Circular is outer limit and cannot be read as amounting to 'lesser production or not manufactured' so as to give go-by to rule 21; hence, even if alleged loss is within permissible limits, assessee must file remission application under rule 21 and without same, duty is payable

Govt. notifies draft Rules on Land Acquisition Act

CL/INDIAN ACTS & RULES : Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Compensation, Rehabilitation and Resettlement, Development Plan) Rules, 2015

Addition made by AO due to bogus purchases was rightly reduced by relying upon verdict of Apex Court

IT : Where addition made by Assessing Officer on account of bogus purchases was reduced by Tribunal relying upon decision of coordinate bench of Tribunal, though order of Tribunal was non-speaking, in view of fact that GP rate shown was still higher than that in subsequent years, impugned order of Tribunal did not require any interference

CCI imposed cease and desist order against suppliers for adopting collusive tactics to raise similar

Competition Act : Where OPs, were engaged in practices of determination of purchase price of 'CN Container' and collusive bidding in contravention of provisions of section 3, OPs were directed to cease and desist from such practice and penalty was to be imposed upon them

Courier agency importing goods on behalf of consignee must pay duty if it doesn't furnish authorizat

Excise & Customs : If authorised courier importing goods on behalf of consignees, fails to produce authorisation from consignees, such courier agency would become 'importer' and would be liable to duty

AO should satisfy himself about complexity of accounts before directing special audit

IT : Assessing Officer has to form an opinion having regard to nature and complexity of accounts of assessee and interest of revenue before issuing order under section 142(2)

Interest on tax refund having nexus with PE of NR in India would be assessable under article 11 of I

IT/ILT : Since international shipping profits earned by assessee did not fall or was not dealt with any other articles of Indo-Swiss Treaty, it was governed by residuary article 22 of DTAA and, therefore, applying article 22 of DTAA, income from shipping was not taxable in India

Govt Expects $933 Mn From Iron Ore Exports To Japan, Korea

The government is expecting to earn over USD 933 million (about Rs 5,989 crore) from exporting 16.5 million tonnes (MT) of high grade iron ore to Japan and South Korea, Parliament was informed today.

Government approved exports under Long Term Agreements (LTAs) to Japan and South Korea through MMTC for supplying 16.5 MT of high grade iron ore, Minister of State for Steel and Mines Vishnu Deo Sai said in a written reply to Lok Sabha.

"The foreign exchange expected to be earned is around USD 311.05 million per annum at current sale prices against export of iron ore under LTAs," he added.

In June, the Cabinet, chaired by Prime Minister Narendra Modi, gave its approval to renew LTAs with Japanese and South Korean steel mills for supply of high grade Indian iron ore, during the three year period from April 2015 to March 2018.

The quantities covered under the LTA will be in the range of 3.8 to 5.5 MT annually and will be supplied primarily from the mines of NMDC and the contract will be executed by MMTC.

India has been supplying high grade iron ore to Japan and South Korea under LTAs for the last four to five decades.

Sai informed the House that India has sufficient quantity of iron ore, at present, to meet domestic demand. However, there may be regional shortages in some states like Karnataka due to legal and regulatory issues.

Export duty at the rate of 30 per cent ad valorem on all iron ore varieties with effect from December 30, 2011 and 5 per cent ad valorem on iron ore pellets with effect from January 27, 2014 have been imposed, he added.

"Further, export duty at the rate of 10 per cent has been levied on iron ore containing Fe (Iron) less than 58 per cent with effect from April 30, 2015," the Minister said.

Source:business-standard.com

India Cuts Oil Imports From Saudi Arabia By Over 8 Per Cent

NEW DELHI: India has cut crude oil imports from its top supplier Saudi Arabia by over 8 per cent in 2014-15 as it raised purchases from Africa and Latin America in an apparent bid to cut reliance on volatile Middle-East.

Crude oil import from Saudia Arabia was cut to 34.99 million tonnes in the year to March 31, 2015 from 38.18 MT in 2013-14, Oil Minister Dharmendra Pradhan said today.

While imports from sanction-hit Iran were almost flat at 10.95 MT, shipments from Kuwait fell to 17.85 MT from 20.35 MT. Imports from Iraq were almost flat at 24.51 MT but the same from UAE rose 15 per cent to 16.11 MT.

Overall, imports from Middle East fell by over 5 per cent to 109.88 MT, he said in a written reply to a question in Lok Sabha here.

Crude oil imports from Africa and South America rose 10 per cent each as Indian refiners bought more heavier but cheaper grade oil, he said.

Indian refineries have consistently reduced imports from traditional markets like Saudi Arabia and stepped up purchases from newer geographies like Mexico and Venezuela as imports have become viable due to availability of cheaper variants and softening of shipping cost.

India imported 189.44 MT of crude oil in 2014-15, almost unchanged from the previous fiscal, to meet over 80 per cent of its oil needs. Saudi Arabia was the top supplier with 34.99 MT with Iraq being number two.

Venezuela was a very close third with 24.40 MT of oil supplies, 13 per cent higher than 2013-14. With 17.82 MT of crude oil supplies, Nigeria was tied with Kuwait for the fourth spot.

Pradhan said imports from Africa rose to 33.05 million tonnes in 2014-15 from 30.39 MT in the previous year. They went up from South America too, to 34.46 MT from 31.73 MT in 2013-14.

Mexico supplied 5.06 MT of crude oil in 2014-15, marginally higher than 4.94 MT a year ago.

Pradhan said imports from Iran, which was once the second biggest crude oil supplier to India, was 10.95 MT, almost unchanged from 11 MT in 2013-14. In 2012-13, India had imported 13.14 MT of crude oil from Iran.

New Delhi has maintained crude oil imports from Iran at 2013-14 level as the US looked to financially choke Tehran to bring it to negotiating table on its controversial nuclear programme.

Pradhan said Prime Minister has set a target for reduction in import dependency in energy by 10 per cent to 67 per cent by 2012-22, from 77 per cent dependency in 2013-14.

"A Committee has been constituted under the Chairmanship of Additional Secretary, Ministry of Petroleum and Natural Gas, to prepare a roadmap in order to achieve the target," he said.

source:- economictimes.indiatimes.com

Govt. unveils third set of procedures for NGOs to claim Sec. 11 benefit on money send to earthquake

IT : Standard Operating Procedure (SOP) – Part III for Making Application for Claim of Tax Exemption under Section 11(1)(C) of the Income-Tax Act, 1961 in Respect of Remittance of Money/relief Articles by Indian NGOS/charitable Organisations for Earthquake Hit People in Nepal

Eu-Ban Will Impact $1 Bn Pharma Exports From India: Pharmexcil

The European Union's ban on 700 generic drug products, based on data integrity issues found at an Indian clinical research facility where they were subjected to bioequivalence studies, would impact exports worth at least $1 billion from India, according to Pharmaceutical Export Promotion Council of India (Pharmexcil).

While the products being manufactured and marketed directly by Indian pharmaceutical companies constitute around 30 per cent of this estimated value, the products carrying the rest of the value were being sourced by global generic players from India, the Commerce Ministry agency estimates.

"We have estimated the value of the products banned by the European Union to be between $1-1.2 billion. These products are being sourced from India by global majors. Therefore, the EU decision impacts our pharmaceutical exports to the extent of around $1 billion," Pharmexcil director general P V Appaji said here today. The products marketed in Europe by the domestic players would be 30 per cent of the total value of exports impacted by the decision, he added.

According to Appaji, the Union Commerce Ministry has been reviewing the situation arising out of the EU decision and asked the Pharmexcil for the necessary feedback about the impact.

He said the Ministry was unhappy with the blanket ban since the French regulator, ANSM, which had found discrepancies in the ECG reports in its May 2014 audit itself stated that the findings should not be extrapolated beyond the clinic part of the facility.

However, Appaji did not directly respond to a question on whether the Union Commerce Ministry was planning to approach the EU with any fresh representation on this matter.

The Government of India and clinical research firm GVK BIO Sciences, which had conducted the studies on these products at its Hyderabad facility, opened dialogue with various regulatory agencies in Europe and presented more data from cardiologists as well as data from the company's internal investigations following the recommendation for suspension of these products by the European Medicines Agency (EMA) in January this year.

Source:- business-standard.com

Interest on FD wasn't taxable in hands of HUF as FD was transferred to daughters of Karta on disposa

IT: Where asset was disposed in favour of six minor daughters of Karta in form of fixed deposits, interest thereafter could not be treated as part of wealth of assessee-HUF and would not be taxable in hands of HUF

CBDT extends due date of filing wealth-tax return from July 31, 2015 to Aug. 31, 2015

IT/ILT : Section 14 of the Wealth-Tax Act, 1957 – Return of Wealth – Clarification on Extension of Due Date of Filing Return of Wealth for A.Y. 2015-16

Sec. 14A can't be invoked if no proximate cause exists between expenditure and exempt income

IT : Where assessee received dividends on mutual fund units and claimed said dividend as exempt under section 10(33), in absence of a proximate cause between expenditure incurred by assessee and tax exempt income, section 14A could not be invoked

Assessee had to substantiate its claim of non-provision of services in order to get relief from pre-

Service Tax/Excise/Customs : Mere statements that 'no service has been provided' or that 'assessee is suffering from financial hardship', without any supporting material, cannot lead to waiver of entire pre-deposit

Onions Are Here To Make You Cry Again

Just like most years, onion traders are stocking up onions and helping the prices to shoot up during the monsoon. Although, in 2013 the onion prices sky rocketed unimaginably high, the central government's adequate measures were able to keep the prices in check last year. It has almost become customary for onion prices to shoot up during the monsoon and remain abnormally high till late autumn.

Although retail prices have remained stable so far, a Mumbai-based exporter said traders in Maharashtra are stocking up heavily, anticipating a strike against market reforms likely to be initiated by the state government, as per a news report by The Economic Times.

"Other factors like increase in demand and decline in arrivals are also at play, but to a smaller extent," an exporter told the ET, requesting anonymity.

When wholesale onion prices have shot up by 50% in July over June, retail prices had touched a record high of Rs 100 per kg two years ago. In 2014, prices zoomed 35% in July over June but the government managed to suppress the price rise the next month through a series of measures.

"The traders are aware that no one can take any action against them as it is not possible to check stocks. The government is also not taking any action on the export front. It takes at least a month for the cargo to reach India after finalising the contract," the exporter told the financial daily.

Nothing unusual has happened to justify the 33% surge in onion prices in the past week, said one of the leading exporters in the country. "Some trader had some good demand, somewhere there was talk of traders going on strike, the rains haven't been so good so far and all this supported by some decline in arrival of onions," he said.
"Traders have become aggressive, jacking up the prices every day without any specific trigger. They have stocked up onions at high prices. To make money, they have to take the prices up," a functionary of Lasalgaon Agricultural Produce Marketing Committee (APMC) told the ET.

The commission agents (adtiyas) operating at the APMCs currently charge their commission from farmers. A state government appointed committee has been deliberating about charging the commission from forward traders and not from farmers. However, the committee's meeting, planned for July 24, was postponed, confirms the ET report.

With less rainfall this year in the onion growing regions, farmers have also started holding on to the crop. Most of them have either lost the kharif crop or will have to bear losses due to stunted growth in the past one month.

Source:businessinsider.in

Interest on tax refund having nexus with PE of NR in India would be assessable under article 7 of In

IT/ILT : Since international shipping profits earned by assessee did not fall or was not dealt with any other articles of Indo-Swiss Treaty, it was governed by residuary article 22 of DTAA and, therefore, applying article 22 of DTAA, income from shipping was not taxable in India

Bajaj To Export 48,000 Units To Nigeria

Country’s third largest two-wheeler manufacturer will soon send out nearly 48,000 bikes to the African country. These are good signs for the company as recently its exports had slowed down. Currently exports contribute to 47 percent of overall sales and stand at 3, 89,000 units.

With this, the company also reported a 37% rise in its net profit when compared to the last quarter. The profits are also helped by dividends coming from KTM. The Indian manufacturer has almost 50% stake of the Austrian sports bike makers.

In Nigeria, only three products are on sale which includes two-wheelers Boxer 100 and Boxer 150 and a three-wheeler RE 205. Since Bajaj has claimed that the number 48,000 includes only bikes, it is not confirmed that all of those are Boxers or not. Nigeria is the biggest market for the company in terms export and accounts for 12% of the company’s overall turnover.

Boxer is the market leader in the African nation and around 35% of its yearly exports are to Nigeria only. The company has also hiked its prices there as it aims to get more profits and also because of the devaluation of Naira (Nigeria’s currency) to US Dollar. It exported around 5 lakh units last year to Nigeria alone and always maintains a market share of above 40%.

The report did not have any significant affect on the stick prices of the company as it closed 0.90% down. Bajaj is more focussed on the sports bike segment in India and developing its 100 cc commuters for markets like Nigeria. The company is expected to launch 400 cc variants of its flagship Pulsar bikes very soon. Bajaj has benefitted from its partnership with KTM as Pulsar 200 NS is based on KTM’s Duke and RS 200 is based on the Austrian’s RC series of bikes.

Source:cartrade.com

Oil Processors, Us Body Join Hands To Promote Soya Foods

The US Soyabean Export Council (USSEC) has joined hands with the Soya Oil Processors Association (SOPA) of India to make Indians consume more soya food, though the two seem to have conflicting interests - one is seeking to boost exports to India and the other is hoping to increase the consumption of locally-produced commodity.

The two bodies signed a memorandum of understanding on Saturday to increase soya bean consumption in India, both as human food and as feed by the poultry and aquaculture industries. The Indian soya bean industry has interest in boosting the local demand as it is struggling to increase exports of soya meal. "Because of the import of cheaper soya oil in the country, our realisation from oil has reduced. As a result, soya feed, the other byproduct of soya bean processing, has become expensive, out-pricing us in the export markets," said SOPA chairman Davish Jain.

Last year, soya bean processors were not able to export their desired quantity and the industry survived on local demand.

Of the eight million tonne soya meal production in the country, only five million tonne is consumed locally. For the rest, the processors have to depend on exports. Increasing local consumption is one way for the industry to reduce dependence on export markets and that is what it is hoping from the tie-up with the US council.

The USSEC, meanwhile, is willing to spend its resources to develop demand in India because it sees the country as a big future market for the exports of US soya bean. Also, if the local demand for soya meal goes up, Indian processors will vacate their ex port markets, creating space for US producers.

For the local association, working with the USSEC involves risk of cheaper imports from the US. The US grows genetically-modified soya bean, which has higher yields than India's open-pollinated straight varieties. Both the bodies plan to work with the Centre to include soya bean food in its social welfare projects such as mid-day meal and the Integrated Child Development Services programmes, educate people about soya food and develop new soya food products.

Source:economictimes.indiatimes.com

No need to declare MRP on cement cleared to builders and Govt. as they are industrial/institutional

Excise & Customs : Builders, government and RMC (Ready-mix Concrete) producers quality as 'industrial/institutional buyers' and there is no need to declare RSP (retail sale price) on cement cleared to them

Rbi Sets Rupee Reference Rate At 64.0028 Against Dollar

The Reserve Bank of India on Monday fixed the reference rate of rupee at 64.0028 against the US dollar and 70.6143 for the euro as against 63.8916 and 70.1210 respectively as on 24 July 2015.

According to an RBI statement, the exchange rates for the pound and the yen against the rupee were quoted at 99.4348 and 51.85 per 100 yen, respectively, based on reference rates for the dollar and cross-currency quotes at noon. The SDR-rupee rate will be based on this rate, the statement added.

Source:moneycontrol.com

Interest on FD wasn't taxable in hands of HUF as FD was transferred by HUF to its daughters on dispo

IT: Where asset was disposed in favour of six minor daughters of Karta in form of fixed deposits, interest thereafter could not be treated as part of wealth of assessee-HUF and would not be taxable in hands of HUF

New entry introduced in Finance Bill to increase tax vide notice of amendments doesn't have immediat

Excise & Customs : An entry which was not there at all in original Finance Bill and was subsequently brought in vide amendment thereto, cannot be said to have been protected by declaration made under section 3 of Provisional Collection of Taxes Act, 1931; hence, said new entry would come into effect from date of enactment of bill

No reassessment on basis of survey report if it didn't indicate that any income escaped assessment

IT : Where neither survey report nor any other material indicated that any income chargeable to tax for relevant assessment year had escaped assessment, issue of reassessment notice on basis of survey report was invalid

Tata Motors Banks On Defence Sector Business, Exports

Tata Motors, India's largest commercial vehicle maker, is banking on growth in its defence sector business and exports to drive 30-40 per cent of its revenues in the next three to four years as it seeks to derisk the domestic commercial vehicle business from its inherent cyclicality.

The company expects the defence business to account for 15 per cent of its total revenues, a fivefold jump from 3 per cent at present, and exports volumes to increase to 150,000 units from about 50,000 in 2014-15.

"The potential is very large...10 per cent is not a good number, our defence business can be much bigger than 15 per cent in the future," said Ravindra Pisharody, executive director and head of commercial vehicle business at Tata Motors. Pisharody was referring to Rs 900 crore order that Tata Motors secured from the Indian Army for supplying 1,200 trucks for material handling cranes for loading, unloading and transportation of ammunition pallets, spares and other operational equipment.

The company will start delivering the vehicles by December. Tata Motors is making a gradual transition from just providing logistic support to supplying combat vehicles including front line combat vehicles. Simultaneously, the company is planning to open up new overseas markets through the hub-and-spoke model in Eastern Europe, Africa, Asean and Latin America.

Tata Motors collaborated with SUPACAT a UK-based high mobility vehicle specialist, for technical assistance for its Light Armoured Multi-role Vehicle (LAMV) project, a combat vehicle based on a defence ministry programme. The company also has a partnership with Malaysian-based DRB-HICOM for import, distribution and assembly of Tata
Motors' commercial vehicles and defence range in Malaysia, a step towards expanding into the international market.

The company has developed the WHAP (Wheeled Armoured Amphibious Platform) besides the LAMV and its upgrade programmes include missiles carriers, mine protected vehicles, main battle tanks and infantry combat vehicles.

"The first order is always difficult, with various vehicles under trial. We definitely do expect significant business from defence going ahead, as long as orders keep flowing from the government," said Pisharody .The recent order is a major shot in the arm for the company, which has an order book of Rs 1,500 crore in its defence business. It expects to post a 20 per cent growth in the segment this year, owing to increased buying by government agencies.

Apart from India, Tata Motors has supplied defence vehicles in markets including the ASEAN, SAARC and Africa. The company recently received an order from Myanmar for about 500 units and it completed deliveries for 520 defence vehicles to the United Nations Multidimensional Integrated Stabilisation Mission in Mali.

The company's defence division will be bidding for government contracts to supply light specialist vehicles and light armoured multi-role vehicle. The technical evaluation for both types of vehicles has been completed and the prototypes will now be tested, the company said. It is eyeing this additional Rs 3,000 crore business opportunity.

Source:economictimes.indiatimes.com

 

Presence of big players like HP, IBM, Lenovo in relevant market of 'x86 server' in India ruled out d

Competition Act : Where big players such as HP, IBM, Lenovo were operating in relevant market of x86 server in India, Dell was not dominant in relevant market and, therefore, question of abusing dominant position did not arise

Three Indian Diamond Labs Receive Duty Exemptions

The Indian Central Board of Excise and Customs (CBEC) has exempted three diamond laboratories operating in India from customs duty, reported The Hindu.
 
Cut and polished goods imported for grading or certification and then re-exported from the country by the GIA (Mumbai), the Indian Diamond Institute (Surat) and the International Institute of Diamond Grading and Research India (Surat) are exempt from customs duties. The move comes in the face of falling diamond exports.

Diamonds imported into India for the purpose of certification must be re-exported within three months to be eligible for the exemption, said a notification from the CBEC. 

The Hindu said that strict checks will be enforced to verify that the diamonds being re-exported are the same as those that were imported.

Source:idexonline.com

 

Sharp Drop In Gold & Oil Prices Brings Cheer For Modi Govt; Public Investments May Rise Too

Thanks to god, gold and oil, India's businesses and consumers may be in for somewhat better times than has been the case in recent months.

Rain gods have been kind, gloomy monsoon forecasts have proved off the mark so far, with rains just 5% short of normal. Oil and gold - two of India's biggest imports - have seen sharp price falls. Crude oil prices are down 15% in the past month and trading at half the price that prevailed in June last year.

Gold has plunged to a multi-year low. Most analysts expect these trends to continue. The implications of god, gold and oil being kind to India now and in the near future means the festive season - India's annual high point of consumerism - will likely see consumers feeling they can spend some serious money.

Businesses will both have healthy demand and be free of fear of interest rate hikes. And the government may find it easier to pump prime the economy, thanks to better
current account and fiscal situation.

Think basics: gold is cheap, cooking oil prices are down and likely good harvests means higher rural demand for cars, motorcycles, tractors, jewellery and FMCG products. Plus, the rare combination of near-normal rain and much lower import bill for oil and gold means the government and RBI need not lose sleep over fears of inflation. So, little pressure on raising rates.

Jyotinder Kaur, Principal Economist, HDFC Bank, said India was lucky that global prices of commodities, particularly energy, had softened. "This has provided a buffer to us and will help keep headline inflation below the nearterm target of 6% set by the RBI.

This will, needless to say, provide comfort to Governor Raghuram Rajan in his deliberations about the future course of monetary policy," she said.

Analysts also say the government can raise public investment to offset private sector capital spending blues and raise more money from disinvestment as blue-chip oil firms now command a better value.

The oil price fall will reduce the borrowings of refiners and cut ONGC's subsidy burden. "This, along with the policy reforms augurs well for the sector, and will help the government get good valuations if it goes ahead with divestment in these companies," said K Ravichandran, Senior Vice-President and Co-Head, Corporate Ratings, ICRA.

Source:economictimes.indiatimes.com

Steel Firms Cut Prices As Imports Pour In

Local steel makers are cutting prices to avert loss in market share as cheaper imports from China, Korea and Japan flood the market.

Hot-rolled steel prices dropped by Rs.3,000-4,000 a tonne in the April-June quarter, said Vikram Amin, executive director, strategy and business development, Essar Steel India.

As on 1 July, the average price of hot-rolled steel was Rs.36,100 per tonne in Delhi, according to data available with the Joint Plant Committee (JPC) of the steel ministry.

This, industry experts and traders say, has led to a gap between the landed cost of imported steel and domestic steel prices narrowing down in the last few months, a clear indication of steel companies focusing on volumes and giving up on margins.

During the March-April period, the landed cost of imported steel in the hot-rolled category in India was lower by about Rs.2,000-3,000 per tonne, said Ajay Srinivasan, director, Crisil Ratings. This gap, Srinivasan said, has narrowed to Rs.1,000 per tonne now.

Vivek Gupta, vice-president, Indian Chamber of Steel, and a leading steel dealer in Mumbai said for a broader category of steel products, the difference between imported and domestic steel prices has narrowed from a range of 15-20% in April to 5-15% now, depending on the product category.

Amin from Essar added that the domestic steel price correction is a result of cheap imports and the depreciation in the currencies of various steel exporting countries.

According to JPC data, total finished steel imports by India rose 53.1% in the April-June period on a year-on-year basis. The average spot price of hot-rolled steel sheets in China, a major exporter for steel to India, corrected 12% from April to June-end.

“There is a surge in volumes in imports due to dumping, resulting in squeezing the margins of domestic companies,” said Jayant Acharya, director (commercial and marketing), JSW Steel Ltd. He did not share details on the steel price movement as the company is in its silent period ahead of its earnings report next week.
JSW Steel produced the highest ever quarterly crude steel volume of 3.4 million tonnes for the June quarter, it said in a statement on 13 July. The company is yet to disclose the sales figure for the same period.

Tata Steel Ltd said its sales volumes for the June quarter rose 2% to 2.14 million tonnes in a statement sent to BSE on 9 July. “Being an industry with high capital investments and hence high fixed cost, focus is generally on increasing capacity utilization to recover maximum fixed cost and improve margins in spite of reduction in prices,” said a SAIL spokesperson.

“Falling international steel prices have affected domestic prices of steel. The average price realisation for SAIL has dropped by 17.4% in the June quarter with respect to the corresponding period last year,” the SAIL spokesperson said.

Srinivasan of Crisil Ratings explained, “Notwithstanding the weak rupee and rise in import duty, domestic steel makers are under tremendous pressure with steel prices falling globally. Domestic steel makers have been forced to bring down prices, focusing on volumes than margins.”

Jimesh Sanghvi, an analyst at IL&FS Broking Services, in a 9 July note said the drop in steel prices will adversely impact integrated steel players such as Tata Steel and SAIL.Some expect pressures on margins to continue in the September quarter.

Srinivasan expects global steel prices to fall below $370-390 per tonne. “This (global price correction) will force domestic steel companies to follow suit,” Gupta said. In addition, July-September is a weak quarter for steel companies.

“The demand and prices start to pick up after October. We expect the same trend to continue even this year,” said Amin.

Source:livemint.com

Rupee Falls Against Dollar In Early Trade

 The rupee depreciated by 4 paise to 64.08 against the dollar in early trade due to month-end dollar demand from importers.

Besides, a weak opening in the domestic equity market weighed on the rupee, dealers said. A weakness in the US dollar against major world currencies in global market however limited rupee fall.

The rupee had lost 27 paise to close at more than 5—week low of 64.04 per dollar in the precious session on Friday following persistent demand for the US currency from banks and importers.

Meanwhile, the benchmark BSE Sensex fell below the 28,000—mark to trade at 27,875.31, down by 237 points, or 0.84 per cent over previous close.

Source:thehindubusinessline.com

Prior to 7-9-2007, 'reversal of credit' can't be made a condition precedent for remission of duty

Cenvat Credit : For period prior to 7-9-2007, in absence of any condition of reversal of credit in case of grant of remission, department cannot order 'reversal of credit' as a condition for grant of remission of duty

Denial of part of sec. 80-IC relief doesn't lead to imposition of concealment penalty

IT : Penalty need not be imposed when part of deduction under section 80-IC to assessee was denied on basis of some estimated addition

Trust can’t carry forward excess application of fund over and above its income

IT: Excess application of funds over and above income of trust can arise only when funds are applied from the corpus of the trust, accumulated funds, loans or goods and services received from the creditors. When funds are applied from borrowed funds or by way of sundry creditors the same can be treated as application of funds in the year in which such loan/sundry creditors are repaid from the income of the trust. However, when amount is applied from the corpus fund or accumulated fund the same c

Orders passed under Service Tax Amnesty Scheme are appealable

Service Tax : 'Designated authorities' under Service Tax Voluntary Compliance Encouragement Scheme amount to 'adjudicating authorities', as they pass order/decision; hence, orders passed by them are appealable as per Finance Act, 1994

Assam Govt. notifies 6% VAT rate without any input credit for liquor dealers

VAT/INDIAN ACTS & RULES : Assam Value Added Tax (Amendment) Ordinance, 2015 – Amendment in Sections 10, 14, First Schedule, Second Schedule and Third Schedule of the Assam Value Added Tax Act, 2003

AO gets flak from High Court for assuming discrepancies in stock when assessee had explained such di

IT : Where Assessing Officer rejected assessee's books of account and brought to tax sum in respect of unaccounted purchases, unaccounted sales and embroidery charges on basis of surmises and assumed discrepancies in closing stock, deletion of addition was justified

Welding electrodes used for repairing of plant and machinery aren't eligible for credit as inputs or

Cenvat Credit : Welding electrodes used for repair and maintenance of plant and machinery are ineligible for credit as inputs as well as capital goods

Govt. reduces minimum land area to establish SEZ in Gujarat for textile sector

SEZ /INDIAN ACTS & RULES: Special Economic Zones (Amendment) Rules, 2015 – Amendment in Annexure II

Allowability of depreciation on acquiring dormant subscribers from Reliance is debatable issue

IT : Where Assessing Officer conducted enquiry and allowed depreciation on purchase of dormant subscribers, since said issue was a debatable issue, Commissioner was unjustified in invoking revision proceedings merely because he did not agree with view taken by Assessing Officer

Refund of Cenvat credit allowable on export of goods even if proceeds weren't realized

Cenvat Credit : In absence of any such condition in rule 5 of CENVAT Credit Rules, 2004 and Notification 5/2006-C.E. (N.T.) issued thereunder, refund of credit cannot be denied on ground that export proceeds have not been realized

CESTAT, Delhi calls for list of pending cases from Advocate involving duty/penalty below 50 lakhs

EXCISE : Section 86 of the Finance Act, 1994 – Appellate Tribunal, Appeals to – Increase in Monetary Limit for Single Member Case Where Issue Does not Involve Classification/valuation or Intepretation of a Notification

'EMI' method allowed to compute income from hire purchase transactions even if books weren't maintai

IT : Where a hire purchase agreement was entered into between assessee and purchasers for purchase of vehicles on hire purchase basis, while computing taxable income assessee could follow Equated Monthly Instalment (EMI) method, even though he had maintained books of account on Sum of Digits (SOD) method

Govt. establishes 'Serious Fraud Investigation Office' under Companies Act, 2013

COMPANIES ACT, 2013 : Section 211 of the Companies Act, 2013 – Serious Fraud Investigation Office – Establishment of – Notified Serious Fraud Investigation Office

Undue delay in allotment of shop and illegal demand of maintenance charges by developer was an unfai

MRTP : Where respondent had unreasonably delayed allotment of shop/showroom to complainants and illegally demanded maintenance charges on quarterly basis and disconnected supply of electricity, respondent was guilty of practicing unfair/restrictive trade practices

Mere use of own name on goods doesn't make those goods as 'branded'

Excise & Customs : Where goods were cleared with superscription 'manufactured and packed by SVS & Sons' on packaging, said use of assessee's own name on goods does not make those goods 'branded'; said goods can be regarded as cleared without any brand name and eligible for exemption accordingly

Rents of unsold flats weren't business incomes just because they were shown as stock-in-trade in wea

IT : Where assessee-property dealer, disclosed rental income derived from letting out of unsold flats as 'income from house property', rental income could not be treated as business income merely because assessee in wealth tax proceedings claimed said unsold flats is its stock-in-trade

‘1081’ is notified as Cost Inflation Index for Financial Year 2015-16

IT/ILT : Section 48 of the Income-tax Act, 1961 – Capital gains – Computation of – Notified cost inflation index u/s 48, explanation (v)

No transfer can take place under an unregistered Joint Development Agreement

IT : There can be no "transfer" u/s 2(47)(v) of the Act read with sec 53A of the Transfer Of Property Act,1882 under an unregistered agreement in view of sub-section (1A) of section 17 of the Registration Act,1908 .Also, there is no transfer under the said provisions if possession is delivered to developer in his capacity as licensee for the development of property and not in his capacity as transferee

No denial of credit of insurance service/repair service used for motor car to firm even if car is in

Cenvat Credit : Credit of insurance/repair of motorcar is available to assessee-firm even if car is in name of partner, provided car is shown as assets in books of firm and depreciation and other expenditure thereon is incurred/borne by firm

If rebate is allowed on export then differential duty can't be demanded on supplementary invoice iss

Excise & Customs : Where goods are exported on payment of duty under claim of rebate and rebate has been allowed, assessee cannot be asked to pay differential duty on supplementary invoice raised for price-difference on such 'completed export'

ITAT rejects 'bright line test' for AMP expenditure; follows ratio of High Court in case of 'Sony Er

IT/ILT : Following Order passed by jurisdictional High Court, it was to be held that TPO could not make addition to assessee's ALP in respect of AMP expenses incurred on behalf of AE by working out non-routine AMP expenses on basis of bright line test