Monday, 31 August 2015
Income in Form 26AS doesn't show that it belongs to assessee if fraudster obtained it in assessee's
Post-sale reduction in sale price won't lead to payment of less sales tax
Allahabad bench of CESTAT has started functioning from September 1,2015
Excise duty on brought-out items can't be recovered if their value wasn't considered in computing de
Comparables excluded as they were carrying out diversified activities and were huge in size as compa
CBDT lays down criteria on manual selection of scrutiny cases for FY 2015-16
Mere mentioning of land as agricultural in revenue's record doesn't establish that it wasn't a capit
AO couldn't rectify his order on debatable issue of allowing interest on refund on excess self asses
Exemption notification comes into force from midnight of its issuance date unless otherwise specifie
AO had to consider objections of assessee even if return wasn't filed within 30 days of service of r
CBDT issues guidance note on reporting requirements under FATCA
Identify dismissed cases wherein retro-effect given to Instruction on filing of departmental appeal:
No reassessment on change of opinion that excess cost of acquisition was allowed in computing capita
Even misdeclaration of non-dutiable diamonds would lead to confiscation and penalty
IRDA notifies norms on maintenance of insurance records
RBI directs Financial Institutions to ensure compliance with reporting requirements under 'FATCA'
Notional interest to be worked out by applying LIBOR if export proceeds were received from AE beyond
Credit is available on inputs used in manufacture of exempted intermediate goods if final product is
Now summons can be served via email or fax under Securities Contract Regulations
Govt. notifies norms for annual reporting and returns to be filed by Pension Fund Authority
Assessee should get gist of enquiry and adverse material gathered against him before transfer of cas
Assessee need not reverse credit for 'exempted by-product'
Over 6 years delay by AO in issuing sec. 158BD intimation would vitiate search proceedings
Job-worker may take credit of CVD on basis of bill of entry which is in name of principal manufactur
Export incentive excluded by assessee-company is also excludible from operating income of comparable
Sunday, 30 August 2015
State Financial Corporation couldn't take possession of assets of debtor-co. after it was ordered to
Importing goods and providing services are different transactions; their value has to be determined
Sum received on sharing of technical know-how without transferring right to use is taxable as revenu
No TDS on freight charges paid to shipping Cos which were taxable at presumptive rate under sec. 172
Friday, 28 August 2015
Granting of advances held as principal business as it was carried on larger scale than business of s
Refund claim of service recipient can't be withheld due to non-furnishing of NOC from service provid
Measures taken by CBEC to improve ease of doing business in India
No interest payable on delayed refund of fine/penalty
TDS default on capital exp. won't attract disallowance
Additions made on failure of assessee to prove that sum was received as beneficiary of discretionary
Transportation cost isn't includible in assessable value if ownership of goods is transferred at fac
No denial of sec. 80-I relief on 'other income' as same had direct nexus with industrial activity of
Providing facilities of infrastructure, staff, and waste disposal doesn't amount to management consu
CBDT announces new norms for granting reward to informants helping in tax recovery from defaulters
Lease payment for allotment of plot for 80 years doesn't attract TDS under sec. 194-I
HC imposed cost on revenue and condoned its unintentional delay in filing notice of motion for resto
Interest on receivables allowed as deduction in computing excisable value
A broker can set off loss incurred on derivative trading against its commission income from sale-pur
CBDT announces new norms for grating reward to informants helping in tax recovery from defaulters
Thursday, 27 August 2015
Transfer of shares without compliance of relevant provisions of Act is invalid in law
Sum received for permitting installation of Telecom Tower on terrace is taxable as income from house
CBDT notifies procedure to report financial transactions & reportable accounts under FATCA
Principle of unjust enrichment won't apply when same amount was paid twice
Using Director's surname on goods doesn't amount to using other's brand name; SSI exemption availabl
No disallowance of royalty paid to AE for export of goods by holding that assessee was contract manu
Govt Looking Into Import Duty, Fta Issues: Steel Minister
Expressing concern over problems being faced by domestic steelmakers due to large-scale dumping from abroad, union minister of steel and mines Narendra Singh Tomar on Thursday said the government is looking into the issues related to import duties and free trade agreements (FTAs). The minister also said the government is seized of the issues impacting the steel sector and will take a decision in appropriate time, including on import duties. The industry has been demanding further hike in import duty on steel products.
“We are closely monitoring the situation and are in consultation with the ministries of finance and commerce and the Prime Minister to decide and reconsider on these FTAs and further increase in anti dumping duties very soon to safeguard the suffering rubber and steel industry domestically,” a CII statement quoted Tomar as saying. Indian steel industry has been hit hard due to cheap imports of the metal from China as well as from South Korea, which has a FTA with India that the industry says is leading to the country exporting cheaper products to India.
While addressing at an event organised by CII, Tomar assured the rubber industry that the government is seized of the matter and is concerned about the situation. “We are concerned about the situation your industry is facing related to power and dumping by China. We are working on it to sort this out. The government is looking at the issue of FTAs and their impact on the industry,” he added.
India, the world’s third largest steel producer, saw a surge in stainless steel imports by 49% to 5.5 lakh tonnes (LT) in 2014-15 against 3.7 LT in 2013-14. In value terms, imports of the metal rose by 23% to Rs.5,918.9 crore in 2014-15, as against Rs.4,801.9 crore in 2013-14. Earlier this month, revenue secretary Shaktikanta Das had said that a decision regarding imposition of safeguard duty on import of steel will not be delayed if the Directorate General of Safeguards recommends restrictive duty.
According to experts, free trade agreements with Japan and South Korea have already resulted in cheaper imports of steel and has impacted the domestic production.
Under FTA, duties on most of the products traded between the countries are either eliminated or reduced sharply. The industry has already demanded that steel products should be excluded from the FTAs with Japan and Korea as these countries are flooding the Indian market, taking advantage of concessional duty rates at the cost of domestic firms.
In a much needed relief for domestic producers, in June the government increased the basic customs duty (BCD) on certain long and flat steel products by 2.5%. Import duty on flat steel products have been increased to 10% from 7.5%, whereas that on long steel products have been raised to 7.5% from 5%. In the same month, India had slapped an anti-dumping duty of up to $316 per tonne on imports of certain steel products from three countries, including China, to protect domestic producers from below-cost inbound shipments. A duty of $309 per tonne has been imposed on imports from China, while $316 per tonne duty has been fixed for Malaysia and USD 180 per tonne for Korea.
Source:livemint.com
Sum paid for live coverage of IPL matches isn’t FTS under India-UK DTAA
AO was justified in extending time-limit for submission of Stock Transfer Forms
Bank account isn't a person in whose name search can be initiated, says Kolkata ITAT
Only 'TRC' would provide India-Mauritius treaty benefits; HC rejects charge of treaty shopping
Indian Coffee Exports Surge Over Higher Demand For Robusta
Indian coffee exports have recorded a marginal increase despite a sluggish trend in the world market and a general decline in prices, thanks to the demand for robusta coffee. India exports 70 per cent of its coffee output of over 3 lakh tonnes.
The total exports stood at 2,20,113 tonnes from January 1 to August 25, as per data of the Coffee Board, up 1 per cent year-on-year. Robusta shipments went up 22 per cent while the arabica exports slumped 33 per cent. Robust demand for the premium parchment variety of robusta has offset the fall in arabica shipments. There has also been a significant increase in the re-exported coffee for use by instant coffee makers. "Robusta parchment has become cheaper with higher production. The European countries are buying it to mix it in blends as the quality is superior. Robusta parchment price is around Rs 134 a kg, only Rs 12 higher than the robusta cherry. Usually , it will be Rs 40 higher," said a senior officer of NKG Jayanti Coffee, a major exporter. The robusta parchment shipments have risen nearly 50 per cent till August 25.
For re-export, local companies prefer to import cheaper robusta coffee from Vietnam and Indonesia for processing and send it to instant coffee makers. Even after adding the freight charges, the imported coffee works out to be cheaper.
With recessionary trend prevailing in many European countries and the downturn in Chinese economy , buyers are looking for cheaper coffee. Predictably ,robusta is preferred to the premium arabica coffee. "The coffee export market is subdued at the moment and the only positive for India is the depreciation of rupee. The market is likely to look up only by December," said Ramesh Rajah, president of the Coffee Exporters Association of India.
The global coffee prices revolve around the crop in Brazil, the largest producer. But despite a lower output in the country , the prices have crashed in reaction to the depreciation of Brazilian currency. As a result, the exports from Brazil have increased. According to the International Coffee Organisation report, the domestic stocks accumulated over previous two seasons have allowed the exports from Brazil to continue unabated.
Source:economictimes.indiatimes.com
Boa To Consider, Decide The Cases For Extension Of Letter Of Permission Of Existing Eous: Dgft
The Directorate General of Foreign Trade (DGFT) has incorporated a new provision in the Aayat Niryat Forms of the Foreign Trade Policy (FTP) 2015-20, with the view to enable the Board of Approval to consider and decide the cases for extension of Letter of Permission of existing Export Oriented Units (EOUs).
“An enabling provision has been incorporated in paragraph (7) of Appendix 6-B of Appendices and Aayat Niryat Forms of FTP 2015-20,” DGFT said in a notification.
Earlier, activities pertaining to reprocessing of garments/ used clothing /secondary textiles materials / clipping/ rags/ industrial wipers/shoddy wool/ yarn/ blankets/ shawls and other recyclable textile materials were not allowed under EOU schemes.
Now, according to the DGFT notification, “Activities pertaining to reprocessing of garments/ used clothing /secondary textiles materials / clipping/ rags/ industrial wipers/shoddy wool/ yarn/ blankets/ shawls and other recyclable textile materials will not be allowed under EOU schemes. Provided that extension of Letter of Permission for an existing unit shall be decided by the Board.”
Source:knnindia.co.in
Parliamentary Panel Suggests Need-Based Import Of Natural Rubber
The Parliamentary Standing Committee on Commerce has suggested the need-based import of natural rubber depending on the gap between domestic production and consumption.
The committee headed by Chandan Mitra also asked the Centre to regulate imports in the peak season through the designated ports to ensure quality and prevent pressure on domestic prices.
Presenting its 119th report on the ‘Rubber Industry in India’ to the Rajya Sabha, the committee said the steep decline in rubber prices since last year called for an immediate intervention to arrest a further price drop. Unless necessary measures are taken, there is a possibility of growers shifting to other crops.
The Centre should firm up an efficacious price stabilisation fund scheme that compensates growers reasonably in times of price distress, the panel said.
Besides reconstituting the Rubber Board in three months, the committee recommended appointing a full-time Chairman for the board and filling the post of a Rubber Production Commissioner at the earliest.
The Home Ministry should also extend full support to the Rubber Board in promoting rubber cultivation in the Left wing extremist affected states such as Andhra Pradesh, Chhattisgarh, Jharkhand, Odisha, and West Bengal.
There were also suggestions to broaden the role of the Rubber Board as a regulatory body and development agency. This would bring synthetic rubber and reclaimed rubber within its ambit to ensure balanced development of the industry.
Source:thehindubusinessline.com
India's Palm Oil Imports To Hit Record 10 Mln T As 'Producers Dump' At Discount-Ruchi Soya
India's overseas purchases of palm oil in the year starting November are set to rise nearly eight percent to a record 10 million tonnes as producers dump the tropical oil at steep discounts, key importer Ruchi Soya said on Thursday.
Higher purchases by India, the world's top importer of cooking oils, could support benchmark Malaysian palm oil futures which are trading near their lowest level in 6-1/2 years due to soft prices and concerns over China.
"India has become the dumping ground for Indonesian and Malaysian palm oil," said Nitesh Shahra, president of the refinery division of Ruchi Soya, the country's biggest edible oil refiner.
"Due to lower prices and depreciating ringgit, in dollar terms palm oil prices have fallen sharply and it has become very attractive for buyers," Shahra told Reuters on Thursday. A weak Malaysian ringgit makes palm cheaper for offshore buyers. In dollar terms, Malaysian palm prices have fallen around 30 percent since a year ago.
In the current marketing year ending October, India's palm oil imports are likely to jump 16 percent to 9.3 million tonnes, or accounting for nearly half the output of the world's second biggest producer Malaysia.
"The spread between soyoil and palm oil has been consistently widening in the last few weeks," said Shahra, adding the discount had widened to $150 per tonne for spot delivery and September and October shipments were above $200. "At this level other oils can not compete with palm oil."
India also buys soyoil from Latin America and a tiny amount of sunflower oil from the Black Sea region. India's soyoil imports in the current year to October are likely to rise 45 percent to a record 2.9 million tonnes due to attractive prices in the first half, said Shahra.
Total edible oil imports in the next marketing year are expected to rise 7.1 percent to 15 million tonnes, after a likely rise of nearly 21 percent in the current year, he said.
Sunflower oil imports would remain steady next year at around 1.5 million tonnes as the premium over other oils has risen in last few months, he added.
Malaysian palm oil futures have been declining since June and hit a 6-1/2 year low of 1,863 ringgit a tonne this week. Shahra expects prices could drop another 6 percent from the current level of 1,916 ringgit to 1,800 ringgit if inventories rise further due to poor demand from biodiesel industry.
"Due to a drop in crude oil prices, there are few takers for palm oil from biodiesel industry. China has been going through economic turbulence," he said.
Source:reuters.com
Disclosure of lesser profits than presumptive income without any tax audit would be deemed as escape
Depreciation disallowable when presumptive tax scheme is applicable and not when income is computed
Rupee Appreciates Against Us Dollar
Snapping its losses from the previous session, the rupee appreciated 29 paise to 65.86 against US dollar in trade today at the Interbank Foreign Exchange due to a decrease in dollar demand from importers. The domestic currency had closed at 66.09 in the previous session.
The currency was boosted after the Reserve Bank of India Governor Raghuram Rajan said he was not in favour of depreciating the rupee and joining a global wave of monetary measures that have weakened currencies, according to a newspaper interview on Wednesday.
The comments, in an interview with The Economic Times, reiterate Rajan's frequent criticisms of the competitive devaluations he has said are occurring globally because of actions taken in the euro-zone, Japan, and most recently China.
Earlier on Wednesday, ratings and research firm Crisil said there is a two-third chance that the rupee can touch the level of 64 against the US dollar by
March-end 2016 while there is a one-third chance it may reach 67 per dollar.
"Crisil Research, in the base case scenario, expects the rupee to appreciate from the current levels of 66.1 as of August 25 to settle at around 64 by March
31, 2016," it said in a statement.
The US dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was sharply lower by 0.2 per cent at 95.12.
Source:economictimes.indiatimes.com
No evasion penalty if there was conflict of judicial opinion and matter was settled only after judgm
TPO can't compare 'Gas lift valves' with general valve which is a consumer product, says Ahmedabad I
Damages deducted by service recipients from amount payable to service providers will form part of ta
Interest was deductible if borrowings were made to subscribe to right's issue of another Co. to reta
SEBI proposes to relax open offer obligations under takeover code
Grant received for survey doesn't amount to service if survey report isn't supplied to Govt.
Assessee liable to penalty on declaration of NRE gifts during survey as he failed to prove genuinene
Supply of customized product which can't be sold in open market is works contract
Non-discussion of inquiries made by AO in assessment order doesn't show that his order was erroneous
Wednesday, 26 August 2015
SEBI advises its intermediaries to ensure compliance of 'FATCA' made with USA
CLB can't accept or reject the manner of consideration in an arrangement scheme as long as it is not
Non-grant of adjournment isn't violation of principles of natural justice unless party shows prejudi
Transactions between Head office and foreign branch aren't international transactions under transfer
Unutilized excise duty in PLA is deductible under sec. 43B
Unutilized excise duty in PLA is deductible under sec. 43B [2015] 60 taxmann.com 411 (Delhi - Trib.)
Buy Welspun India For A Target Of Rs 1,020; Apar Industries Has Sound Fundamentals: Devang Mehta, Anand Rathi Financial Services
In an interview with ET Now, Devang Mehta, Anand Rathi Financial Services, shares his wealth-creating ideas. Excerpts:
Devang Mehta: In fact, we have been suggesting this stock since some time and the stock has again corrected because generally the market has corrected and this is among our favourite picks. Now, this is among the top three home textile manufacturers in the world with supply to at least around 50 countries and it also supplies to around 14 top retailers across the world including Walmart, JC Penney amongst others as well.
The company came up with a good set of numbers, around 18% revenue growth on YoY basis as well as the EBITDA margins also. So, wonderful growth of around 25.9%. With capacity expansion also quite underway, and capacity is also running close to full utilisation in terms of its towels and its sheets business, the company is going to do pretty well and we feel that the EBITDA margin of 25% also is quite sustainable.
The company can also report an EPS of around 62.8 or 63 for the current year, which discounts the stock at around 12 times and we feel that this business is a wonderful business of export and textile so we have price target of around Rs 1,020 for the Welspun India.
Source:- economictimes.indiatimes.com
Second and fourth Saturday of every month declared as public holiday for banks
India Yarn Prices: Domestic And Export Markets
Yarn prices have fallen in the last days in India, whatever the rise of cotton fiber prices. Yarn exports have however surged to China in the April-July period, according to latest official data.
Our comprehensive review of Indian yarn markets covers the domestic markets in Ludhiana (Punjab) and Indore (Madhya Pradesh), with a wide range of products and counts, including cotton yarns (carded and combed), polyester spun, polyester-cotton, polyester-viscose and polyester-acrylic. Export market prices are also available for both cotton and polyester-cotton.
Source:emergingtextiles.com
Income earned by a warehousing corporation from letting out warehouse is taxable as business income
Image runner, being Multi-functional network printer, is peripheral to computer; taxable at 4%
Printers, scanners, modems and routers are integral parts of computer system; depreciable at rate of
No additions on TDS default as it is completely tax neutral for deductor earning exempt income
Bangladesh, India Resort To Onion Imports As Supply Dips
Onion prices in Bangladesh have nearly doubled in the past month due to a shortage in top supplier India, forcing the neighbours to turn to imports from countries such as Egypt, Iran, Afghanistan and Pakistan.
The Trading Corporation of Bangladesh said on Wednesday it had sought 450 tonnes and could buy more. Also, India will examine bids on Thursday for a tender to import 10,000 tonnes of the staple integral to South Asian dishes like bhaji, biryani and fish curry.
"We're making all efforts to increase supply in the domestic markets and hold down prices," an official at Bangladesh's state trading body said. "This is just the beginning. We will import more onions if needed."
Prices have hit 100 taka ($1.29) per kg in Bangladesh and 80 rupees ($1.2) in India as scant monsoon rain delays plantings. In 2013, prices hit around 100 rupees in India, leading to protests across cities and making it a political issue.
To discourage exports, India has more than doubled the minimum export price on onions, while some state governments are rationing subsidised sales. Both the countries are also acting against hoarders.
Bangladesh produces about 1.7 tonnes a year against domestic demand of 2.3-2.4 million tonnes. Indians consume about 15 million tonnes of onions and exports about 1.5 million tonnes.
Source:in.reuters.com
High Customs Duty On Gold Fuels Smuggling
The high rate of customs duty on gold may have acted as a deterrent for imports but it resulted in large-scale smuggling. It was highlighted during discussions at the annual meeting of the chief commissioners and directors general of customs and central excise here on Monday.
The customs officers provided gold seizure details which has almost doubled to more than rs 1,100 crore in 2014-15 as compared to Rs 692 crore in the previous year and Rs 99 crore two years ago.
The rise in smuggling and seizures was primarily on account of the government raising customs duty on gold from 8% to 10% in 2013 to discourage high imports.
India is the second largest importer of gold after China. The high rate of duty has also opened smuggling channels because the resultant difference in gold prices in India makes smuggling more remunerative, said an assessment report of the customs.
Source:timesofindia.indiatimes.com
Sec. 63A of Karnataka VAT Act, 2003 has retrospective effect, says High Court
AO couldn't deny sec. 35(2AB) deduction if same was approved by Dept. of Scientific and Industrial R
Rupee Trades Lower At 66.08 Against Us Dollar
The Indian rupee on Wednesday was trading marginally higher against the US dollar from its previous close. At 2.10pm, the home currency was trading at 66.08, up 0.02% from its previous close of 66.10. The local unit opened at 66.23 per dollar and touched a high and a low of 66.06 and 66.38, respectively.
The benchmark Sensex index fell 0.31% or 80.69 points to 25,951.69 points. So far in August, Sensex has fallen 7.4% or 2,080 points, the steepest since November 2011 and foreign institutional investors (FIIs) have sold $1.38 billion, the steepest since June 2013. So far this month, the rupee has fallen 3.1%; August has been the worst month for the currency in at least two years.
The yield on India’s 10-year benchmark bond was trading at 7.801% compared with its Tuesday’s close of 7.818%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has lost 4.6%, while FIIs have bought $5.68 billion from local equity and $6.33 billion from bond markets.
Most Asian currencies were trading mixed. Malaysian ringgit was down 0.91%, Japanese yen 0.63%, Indonesian rupiah 0.47%, Taiwan dollar 0.26%, Thai Baht 0.16%, Philippine peso 0.11%. However, South Korean won was up 0.82%, China offshore 0.38%, Singapore dollar 0.34%, China Renminbi 0.06%.
Asian markets were trading mixed, too. Hong Kong’s Hang Seng was down1.5%, China’s Shanghai Composite was trading 1.3% lower and Japan’s Nikkei Stock Average was up 3.2%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.161, down 0.39% from its previous close of 94.53.
Source:livemint.com
Registration of trust can't be cancelled due to non-filling of return of income
Construction of compound wall of factory and maintenance of factory garden is eligible for input cre
IRDA notifies new norms on setting-up of place of business by insurers
Co. rendering R&D services can't be compared with a Co. rendering diagnostic services
Credit of input services can be taken on basis of debit note, says Delhi CESTAT
Bus reservation by a tour operator is liable to service tax under 'Tour Operator Service'
No additions basis of unaccounted production declared by director before Excise Authorities
Reduced penalty shall be recomputed when duty demand is recomputed
Tuesday, 25 August 2015
Sum paid by Marriage Bureau for matrimonial ad on behalf of clients won't attract sec. 194C TDS
DRP couldn't pass brief and cryptic order without considering objections of assessee to draft assess
Exemption available on intermediate product even if by-product arising in course of manufacture is a
HC directs co. to pay gratuity to director as agreed under consent terms filed before CLB
TDS default doesn't invite sec. 40(a)(ia) disallowance if total income of deductor is exempt
M.S. Plates, Angles and Channels used in construction of plant are eligible for credit as capital go
India To Auction 20 Major Iron Ore Mines To Revive Industry
India will auction about 20 major iron ore mines this year in its first such sale ever, a top government official said, as it looks to revive its corruption-tainted mining industry.
India's mining sector has been mired in controversy over illegal allocation of resources. Once the world's third-biggest iron ore exporter, the country now imports the steelmaking ingredient due to a court-led crackdown on illegal mining.
The government hopes auctions will help curb wrongdoing. While it is unlikely to lead to an immediate boost in iron ore output at a time when there is a global glut, mine sales will bring India closer to its target of tripling its steel capacity to 300 million tonnes by 2025 and relying less on ore imports.
"Most of the states are in the midst of carrying out their pre-auction activities and hopefully by the end of October and November onwards they will start (auctions)," Mines Secretary Balvinder Kumar told Reuters in an interview on Monday evening.
He expects about 80 mines to be auctioned in the first phase, including limestone, gold and "about 20 iron ore mines". States are estimating reserves, Kumar added.
India produced 136 million tonnes of iron ore last fiscal year ended March 31. About 1.5 million tonnes of ore are needed to make 1 tonne of steel, implying India's ore output will have to more than triple in 10 years if steel companies are to be self sufficient.
Most of the iron ore mines being sold are in the southern state of Karnataka, known for its high-quality ore. This will greatly benefit local steelmakers like JSW Steel . Led by JSW's purchases, India's ore imports hit a record of over 15 million tonnes last fiscal year as global prices collapsed. Kumar expects prices to improve by the time the mines start.
"The mining process takes two to three years because they will need all kinds of clearances: forest, environment, from pollution control board. (It) takes a lot of time to comply."
Source:moneycontrol.com
Crude Crash Impacts India’S Efforts To Boost Self-Sufficiency: Report
Crashing oil prices will hit India’s energy security efforts, and impact Indian Prime Minister Narendra Modi’s roadmap for the country to reduce dependence on oil imports by 10 percent in the next few years, local newspaper Economic Times reported Monday, citing industry executives and analysts.
India, which imports 80 percent of its daily oil needs, should make such a reduction by 2022, Modi said in March.
A barrel of Brent crude oil, a benchmark for oil prices around the world, closed below $40 on Monday for the first time since early 2009. Stock markets around the world plummeted on the day, triggered by a rout in China. Investors remain nervous about the slowdown in the world’s largest consumer of raw materials.
Oil companies in India, especially private ones, are hesitant to invest money in new projects, thwarted by cheaper imports, the paper reported, citing an unnamed industry executive.
In March, Cairn India Ltd. slashed capital expenditure for the fiscal year 2015-16 by 60 percent. Falling oil prices made it unviable to invest in additional capacity, the company, which accounts for a quarter of India’s oil production, said at the time.
India’s consumption of petroleum products rose 6 percent in the April to July period versus the year earlier, but as imports become cheaper, a simultaneous cut in local production hurts the country’s energy security, the newspaper reported.
In that period, local production was little changed at 12.4 million metric tons (mmt) from 12.5 mmt a year earlier. Imports of crude, however, rose 6 percent to 66.3 mmt and petroleum products import jumped 40 percent to 9.2 mmt. India's own share of petroleum products consumed fell to 20.1 percent from 21.3 percent.
Consumption could potentially be higher had the government passed on the entire benefit of lower oil prices. “Given that the government is unwilling to pass on the entire benefit of low crude prices in terms of ensuring lower retail prices of petrol and diesel, the impact will be somewhat muted,” Kunal Kundu, vice president and chief economist in India at Societe Generale, said in an Aug. 13 report. Kundu was referring to the effect of lower prices on deflation in the economy.
While state-owned companies such as Oil and Natural Gas Corporation Ltd. have continued to invest in some new projects, under pressure from the federal government, it won’t be enough to meet the 10 percent reduction in dependence on oil imports, the paper reported.
Source:ibtimes.com
Cultivation of agricultural land by assessee himself isn't necessary to claim sec. 54B relief
Imported Onions Arrive, Prices Continue To Soar
Though imported onions have started trickling into the markets of the country, prices are showing no signs of declining and have skyrocketed to Rs 60 a kg in several cities. Trade estimates say that by the end of August, around 50 containers of onion from Egypt are expected to reach the Mumbai port, while 18 trucks of onion from Afghanistan have reached Azadpur market in Delhi.
On Saturday, average price of onion at Lasalgaon wholesale market had risen to a two-year high of Rs 5,700 per quintal. Retail prices of onion across major cities crossed Rs 60 per kg. Escalation of onion prices, especially before elections in Bihar, has been a cause of worry and the government had increased Minimum Export Price (MEP) to $700 per tonne.
As prices rose, there was a steep decline in arrival of the produce at Lasalgaon market. On Saturday, only 2,000 quintal of onion reached against 12,000 quintal a year back. The state government is also on guard against any hoarding of onions by traders and merchants. MoS for marketing, Ram Shinde had also spoken about a special squad to check hoarding but no such team has been deployed.
Last week, the district supply office (DSO) of Nashik surveyed traders in the district. Officers attached with the search said it was carried out on the orders of the central government to learn about the quantity of onion stock available. Premises of over 375 traders were inspected and the district was found to have 1.5 lakh quintal of onion. Officers associated with the survey said they have not come across incidents of hoarding, as of now.
Nanasaheb Patil, chairman of the Lasalgaon Market Committee said traders have confirmed about the imports but are not divulging details. Patil said most of the onion import would be from Egypt.
Officers associated with Nashik-based National Horticulture Research and Development Foundation (NHRDF), on the condition of anonymity, said hoarding might have something to do with the price rise. “The landing cost of onions from Egypt in India is around Rs 30-35 per kg. Many traders in Mumbai are importing the produce from Eqypt. Traders in Delhi are importing onions from Afghanistan via Pakistan,” said an officer.
An internal survey of NHRDF put the stored stock of onion at around 13 lakh quintal in the beginning of August. Patil said that on August 27, tenders floated by the government to procure onion will be opened. The government, through MMTC, floated the tenders to procure 10,000 quintal of onions after a similar bid by NAFED did not evoke any response.
Source:indianexpress.com
Rupee Rebounds; Rbi Intervention Seen
The Indian rupee on Tuesday afternoon strengthened sharply following cues from other Asian currencies, but the Reserve Bank of India had to intervene too, say currency dealers.
At 4.07 pm, the home currency was trading at 65.93 a dollar, after strengthening as much as 65.92 a dollar in the intraday. The intraday gain of 0.9% was rupee’s steepest gain since 18 November, 2013.
Rupee had opened at 66.50a dollar, from its previous close of 66.65 a dollar. The rupee had touched a low of 66.77 a dollar, prompting the Reserve Bank of India to intervene.
“RBI pulled rupee to 66.70 level and the market got the message. Rupee strengthened rapidly after that,” said a senior currency dealer with a foreign bank who did not wish to be named.
Meanwhile, Bloomberg news agency reported that RBI may have asked the oil marketing companies not to buy dollars directly from the market, which may have an impact on the sentiment and strengthened rupee, said the dealer.
China’s central bank cut its benchmark lending rate for the fifth time since November and lowered the amount of cash banks must set aside, stepping up efforts to cushion a stock market rout and deepening economic slowdown.
The one-year lending rate will drop by 25 basis points to 4.6% effective Wednesday, the Beijing-based People’s Bank of China said on its website Tuesday. The one-year deposit rate will fall by 25 basis points to 1.75%, Bloomberg report said.
Most of the Asian currencies were trading higher. Malaysian ringgit was up 1.1%, Singapore dollar 1%, Taiwan dollar 0.9%, Philippines peso 0.5%, Thai baht 0.4%, China Offshore spot 0.4%, South Korean won 0.28%. However, Japanese yen was down 1.1% and China Renminbi 0.14%.
Asian markets closed down. Hong Kong’s Hang Seng was up 0.7%, China’s Shanghai Composite 7.6% down and Japan’s Nikkei Stock Average was down 4%. The benchmark Sensex index rose 0.82% or 210.91 points to 25,952.47 points.
The yield on India’s 10-year benchmark bond was trading at 7.836% compared with its Monday’s close of 7.891%. It opened 7.895% and touched a high of 7.911% -- level last seen on 29 June. Bond yields and prices move in opposite directions.
So far in August, the rupee has fallen over 2.5%. It has been the worst month for the currency in at least two years. Since the beginning of this year, the rupee has lost 4.5%, while foreign institutional investors have bought $6.46 billion from local equity and $6.33 billion from bond markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.567, up 0.25% from its previous close of 93.332.
Source:livemint.com
Diamond Exports Down 18% In July
Reflecting a serious slowdown in the global trade for diamonds, India's polished diamond exports were to an all time low at 18.34 per cent and rough diamond imports were down at 42.9 per cent in July 2015 when compared to the corresponding period previous year.
This was revealed in the latest data released by the Gems and Jewellery Export Promotion Council (GJEPC) on Monday.
Exports of cut and polished diamonds in July 2015 were $1.51 billion down 18.34% from to $1.85 billion in July 2014. In volume terms, the decline was 14.40%, with the centre exporting 2.80 million carats in July this year as against 3.26 million carats a year earlier.
Similarly, imports of rough diamonds in July fell by 42.9% to $1 billion against US$ 2 billion last year. In volume terms, 9.36 million carats of rough were imported during July, a decline of 40% compared with the imports of 15.59 million carats in July 2014.
Export of gold jewellery (plain and studded) was also down during the same period, falling by 14.67% from $613.44 million last year to $523.42 million in July. However, exports of gold coins and medallions shot up sizably from $84.95 million last year to $426.85 million in July this year.
On a cumulative basis between April - July 2015, cut and polished diamond exports were down 10.19% to US$ 6.75 billion and rough imports were down 25.8% to US$ 5.2 billion.
Dinesh Navadia, regional chairman, GJEPC said, "The markets in China, US, UK, Middle East are very weak and the demand is not picking up. On the other hand, there is no question of buying rough diamonds due to the skyrocketing prices and the polished diamonds prices reducing. Most of the clients of big mining companies like De Beers and Alrosa have been rejecting more than 80 per cent of the goods this time."
Source:timesofindia.indiatimes.com
Input tax credit can be used to pay output tax of any division of assessee having common TIN for all
TP addition should be considered only on international transactions with AE and not on entire turnov
Salaries paid by lessee couldn't be charged to ST by treating them as supply of manpower by owner of
Exercise of ESOPs shall not be deemed as trading under insider trading norms; SEBI clarifies
Free-home delivery of food isn't liable to service-tax
Recovery proceedings can't be initiated without passing assessment order and issue of demand notice
Payment of tax at lower rate under bona fide belief doesn't attract penalty
SEBI Board nods to draft amendment making way for merger of FMC with SEBI; relaxes ESOPs norms
Govt. grants tax exemption to 'Press Trust of India' for three assessment years
Money held by Bishop of Church in his fiduciary Capacity couldn't be held as unexplained
Additional CIT and Joint CIT shall perform functions of AO under the Black Money Act
HC can't entertain revenue's appeal against an order which is already pending in Supreme Court
Referral fee paid to AE on property transaction allowed as assessee had furnished evidence to justif
Monday, 24 August 2015
High Court convicted lessee for dishonouring cheque of rental payments
Marketing services provided by agents of bank can't be termed services provided under brand name of
High Court unhappy with CBDT for refusing to condone delay of one day in filing return
No mistake apparent from record if adjudication order was based on provisional figures submitted by
A Co. owing significant intangibles as compared to assessee can't be selected as comparable for TP s
Notification for revising tariff value comes into force only when it is offered for sale
Filing of revised computation of income after a notice by AO couldn't be a ground for re-assessment
Overseas Textile Importers Seek A Pie In Higher Realisation For Indian Exporters
Depreciating rupee has prompted overseas textile and apparel importers to re-negotiate their contract terms to get a pie in higher realisation by Indian exporters. New contract orders are being deferred till Indian currency stabilises.
Since August 11, the day China's Yuan first depreciated, the rupee has fallen by over 3.37% to trade at 65.50 against the dollar early Monday. The Indian currency has depreciated by 5.28% so far this year.
Normally, depreciation in rupee results into higher realisation of export driven products from India without raising their prices. As a consequence, global importers get an opportunity to re-negotiate their price of the product for which they had already contracted earlier.
"Yes. New buyers have started re-negotiating contract terms and prices. Normally, overseas buyers have started inducting a new clause in the contracts which keeps re-negotiation of price open. Old customers, however, have not intervened yet. Clients that had negotiated apparel import terms, have deferred their orders by two-four weeks, which may get prolonged till the rupee stabilises," said Rahul Mehta, President, Clothing Manufacturers Association of India (CMAI).
India exports around $41 billion worth of garments and apparels annually and hence, re-negotiation in contract terms and prices makes huge difference in exporters' overall realisation. The impact has been severe since the Chinese currency Yuan was devalued on August 11.
New overseas customers, meanwhile, have started fixing up apparel price in dollar term with a condition of the rupee to remain at the current level. In terms of sharp currency fluctuations, however, the price would be re-negotiated, said Mehta.
R K Dalmia, President of Century Textiles and chairman of the Cotton Textiles Export Promotion Council (Texprocil), believes that the benefit for Indian textile exporters would depend upon the currency fluctuations in competing country.
"In case of Indian exporters compete with their counterpart in China, we would not get much benefit due to Yuan devaluation. If we are competing with Bangladesh, we will get some benefit. But, since overall Asian currency has depreciated due to Yuan devaluation, Indian exporters would not get the benefit which they could otherwise have got, had Yuan not been devalued," said Dalmia.
In fact, overseas textile importers have gone into 'wait and watch' mode which is not good for business. For a smooth business, stability in the rupee is required for long term sustainability, he added.
Overall textile exports rose a marginal 5.4% to $41.4 billion in 2014-15 as compared to $39.3 billion in the previous year. Echoing similar response, D K Nair, Secretary General, Confederation of Indian Textile Industry (CITI), believes that overseas importers who are confident about the product and quality, have started re-negotiating price and contract terms.
Depreciating rupee is good for textile exporters. Indian exporters with deep pocket who can resist price re-negotiation for higher realisation may continue to resist, said Nair.
Source:- business-standard.com
Crude Prices At Six-And-A-Half Year Low; India Might Gain Over Rs 1 Lakh Crore
Global crude oil prices fell to a six-and-a-half year low in Monday morning trade on the back of Iran’s fresh commitment to boost production and higher drilling activity in the US coupled with renewed growth concerns in China, the second largest consumer of oil, impacting the global economy.
Brent crude for October settlement declined by more than 1.7 per cent to $44.3 a barrel on the London-based ICE futures exchange, the level last seen before March 2009. Rent, the benchmark for half the world’s oil was trading at a premium of over $5 over the US benchmark West Texas Intermediate (WTI).
Iran will expand output “at any cost” to defend market share, that nation’s oil minister Bijan Namdar Zanganeh said on Saturday, according to his ministry’s news website. The number of active US oil rigs increased for the seventh time in eight weeks, Baker Hughes rig count data showed.
The Indian basket of crude oil prices, which represents the average price of Oman and Dubai sour-grade and sweet Brent crude oil processed in Indian refineries (in the ratio of 72:28), stood at $45.21 a barrel on 21 august, the lowest in the past seven months since 26 January this year.
“The combined impact of the crude price slump and the depreciation in the rupee over the past few days would result in a Rs 100,500 crore impact on India’s import bill along with a Rs 9,000 crore impact on the government’s petroleum subsidy,” K Ravichandran, Senior Vice-President at research and ratings agency ICRA, told Business Standard.
At current levels of consumption and prices, every $1 decline in the crude rates eases India’s import bill by Rs 6,700 crore and pulls down the government’s subsidy bill by Rs 600 crore. The crude oil prices of Indian basket has averaged at $55.50 per barrel in the current financial year so far, ranging between a high of $66.54 per barrel on 6 may and the 21 August price of $45.21 per barrel. This is $15 per barrel less than the government’s budgeted crude oil price of $70 per barrel for the current fiscal.
The decline in crude oil prices is positive for Indian refiners — Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) — as their working-capital requirements would come down. Product prices and gross under-recoveries (GURs) would also come down.
IOC Chairman B Ashok had last week told Business Standard the current subdued crude price is likely to continue for the next couple of years, owing to higher US shale production, Organization of Petroleum Exporting Countries’ (OPEC’s) insistence on not cutting production, and possibility of more oil from Iran. For refiners, however, the gaisn could be limited by inventory losses. IOC had to suffer Rs 15,000 crore of inventory losses last financial year.
Lower underrecoveries for refiners would also mean reduced subsidy-sharing for upstream companies like Oil and Natural Gas Corp (ONGC). The OMCs’ underrecoveries came down from Rs 139,869 crore in 2013-14 to Rs 72,314 crore last financial year, thanks to a deregulation of the diesel price and rollout of the direct benefits transfer scheme for LPG (DBTL).
Source:- business-standard.com
Volkswagen India's Exports To Mexico Cross 1 Lakh Units
Volkswagen India has shipped its 1,00,000th car built for Mexico. The company's plant in Chakan, Pune has achieved this milestone in less than two years since it started exporting cars to the North American country.
The company claims that the Indian-built Vento sedan and Polo hatchback are in high demand in Mexico. The 1,00,000th car is a red Volkswagen Vento, powered by a 1.6-litre, petrol engine. It will take seven weeks to reach its destination.
Volkswagen India started exporting cars to Mexico with the Volkswagen Vento less than two years ago. The Vento, built at the Pune Plant, replaced the outgoing Jetta Classico in the Mexican market.
The Vento is in the top three most sold cars in Mexico in the first half of 2015. It is also Volkswagens highest-seller Volkswagen car in the country at the moment.
In 2014, nearly every second car produced at the Volkswagen Pune Plant was shipped to Mexico, which is the single largest export market for the company.
Currently Volkswagen India exports the Volkswagen Polo and Vento in right-hand as well as left-hand drive versions to over 32 countries in Asia, Africa and North America. The first single export market for Volkswagen India was South Africa in 2011.
Volkswagen Pune Plant Chronicles
March 2009: Volkswagen Pune Plant inaugurated
December 2009: Start of Polo production
August 2010: Start of Vento production
December 2010: Start of production for export to South Africa
July 2011: 1,00,000th car rolled out of Pune Plant
July 2012: Start of production of left-hand drive cars
October 2013: Start of export to Mexico
April 2014: 50,000th export car rolled out of Volkswagen Pune Plant
December 2014: With 1,11,444 units, the highest number of cars produced at the Pune Plant within one year
19 May 2015: 5,00,000th car rolled out of Pune Plant
20 August 2015: 1,00,000th car exported to Mexico from Pune Plant
Source:- team-bhp.com
India's Gold Demand Could Hit 950 Tonnes As Prices Fall
India's gold demand might reach 950 tonnes this year as lower prices spur buying during the peak festival season and for weddings, the world's biggest gold refiner, Valcambi, said.
Stronger demand in the world's second-biggest gold consumer could support global prices, which rebounded this week after hitting a 5-1/2 year low under $1,100 an ounce in July.
Valcambi chief executive Michael Mesaric said gold demand would be strong this year. "It could be between 900 tonnes to 950 tonnes," he said on the sidelines of the International Gold Convention in the city of Panaji in Goa state.
Demand for gold jewellery is usually robust in the final quarter as India celebrates festivals such as Diwali and Dussehra, when buying the metal is considered auspicious.
"All this should boost demand," said Alistair Hewitt, the World Gold Council's (WGC) market intelligence director.
In the first half of 2015, Indian demand fell 7 per cent from a year earlier to 346.2 tonnes. But gold prices in India have risen more than 11 per cent since hitting their lowest in four years in late July.
Industry officials say Indian demand is determined more by perceptions about future price movements.
"If consumers feel prices will go up, then they will buy during the festive season," said Rajan Venkatesh, managing director, India bullion, ScotiaMocatta, part of the Bank of Nova Scotia.
He expects Indian gold imports of between 850 tonnes and 900 tonnes in 2015, compared with 891.5 tonnes in 2014.
Another factor affecting gold buying will be the June-September monsoon rains. While some parts of the country had good rainfall the season is expected to be deficient overall.
Earlier this month the India Meteorological Department (IMD) kept its forecast that rains would be 88 per cent of the long-run average as a strengthening El Nino weather pattern was likely to trim rainfall in August-September to 84 percent, raising fears of the first drought in six years.
"If monsoon remains weak, then it will be a big negative for gold. More than 60 per cent of demand comes from rural India," Rajan said.
Source:- timesofindia.indiatimes.com
As Rupee Sinks To 66.74, Rajan Says India Better Placed Than Others
As the rupee slumped to 66.74 per dollar on Monday, its lowest since September 2013, Reserve Bank of India governor Raghuram Rajan said the central bank will not have any "hesitation" in using foreign exchange reserves to reduce currency volatility. (Watch Video)
The selloff in the rupee weighed on the domestic markets too, with the BSE Sensex crashing over 1,700 points on Monday as Asian markets reeled under fears of a China-led global economic slowdown.
Dr Rajan noted that India was in a better position relative to other countries. He also said India's macro-economic problems were "under control" although he added that the country would need to focus on increasing domestic production as an effective way to protect itself against a global economic slowdown. (Read: RBI Can Use Forex Reserves to Curb Volatility: Raghuram Rajan)
"Many of you are watching markets this morning worried about the continued volatility from last week. While I don't want to opine on the future direction of markets, I will say that relative to other countries India is in a good position with strengthening growth, a low current account deficit and narrowing fiscal deficit, moderating inflation, low short term foreign currency liabilities and very size-able exchange reserves relative to imports and liabilities," Dr Rajan said.
The Reserve Bank does not target a specific level for the rupee, but intervenes in forex markets to curb volatility in the currency through state-run banks.
The rupee has come under huge selling pressure since August 11, when China devalued its yuan currency. The devaluation of the yuan stoked concerns about the state of China's economy, already growing at the slowest pace in 25 years.
Traders fear that China could be forced to devalue the yuan even more should its economy falter. This has led to concerns about a currency war that could prove disastrous for global equity markets.
Last week, Dr Rajan said China's devaluation of the yuan was not a concern, but did not rule out a currency war if the move was part of a long-term competitive devaluation.
The Indian rupee has fared better than its emerging market counterparts, though it has lost nearly 4 per cent in the last two weeks. South Africa's rand struggled at 14-year lows, the Turkish lira languished near a record low, while the Malaysian ringgit hit a 17-year low. South Korean authorities were suspected of selling dollars to arrest the won's fall.
The depreciation in the rupee hits foreign investors and diminishes their returns. Analysts say foreign funds have started selling shares aggressively because of the rupee fall.
The rupee ended 81 paise lower at 66.64 on Monday as compared to its Friday's close of 65.83/dollar.
Source:- profit.ndtv.com
Institute providing training on banking and finance is charitable trust; eligible for sec. 11 relief
Now DTA units can supply goods to SEZ through ARE-2 form
Charges recovered by State Excise Dept. for supervising 'storage of liquor' aren't liable to service
Companies should be functionally comparable and not identical for transfer pricing study
Credit can't be denied merely on basis of doubtful purchases
Ministry notifies norms on Nation Mineral Exploration Trust
Assembly of various parts to make water purification system would amount to manufacture
In-house preparation of midday meals for schools isn't outdoor catering services
Govt. notifies Rules on maintenance of annual statements of accounts and records by Pension Fund Aut
No addition of notional interest on sums due from AE if interest isn't charged from unrelated partie
Whether goods were assembled in rural area was a question of fact; not appealable before Apex Court
HC quashed detention order as there was inordinate delay of 7 months between date of arrest and pass
RBI withdraws exemption on declaration of goods exported to Myanmar under Barter Trade Agreement
Sunday, 23 August 2015
Co-operative society gets sec. 80P relief as it wasn't a co-operative bank
Separate consideration paid while acquiring shares to get commercial rights of marketing was goodwil
India Polished Diamond Exports Drop 18% In July
India’s exports of polished diamonds dropped 18.3% last month, as rough imports plummeted 43% in the month from a year earlier, according to information released by The Gem & Jewellery Export Promotion Council (GJEPC).
In volume terms, the drop was 14.4 percent with the country exporting 2.80 million carats last month versus 3.26 million carats a year earlier.
The impact of an industry slowdown was evident in the country’s import figures. Overall gross imports of gems & jewelry was down 29.8 percent to $ 2.27 billion last month as compared to $3.24 billion for the same period last year.
Source:diamonds.net
Agriculture Ministry Pushes For Hike In Import Duty Of Edible Oils
The Agriculture Ministry has proposed an increase in import duty on crude and refined edible oils to protect farmers' interests and provide a level-playing field to domestic oilseed processors.
At present, the import duty on crude edible oil is 7.5 per cent, and for refined oil, it is 15 per cent. The duties were last revised in December.
"We have a mandate to promote production of oilseeds. Farmers are getting affected because of increasing import of edible oils. We have proposed the Finance Ministry to consider raising import duty from the current level," a senior Agriculture Ministry official told PTI.
Meanwhile, industry body Solvent Extractors Association (SEA) has demanded that the government raise import duty on crude oil to 25 per cent and that of refined oil to 45 per cent.
According to SEA, the increase in duties will protect the interest of crushers and also local farmers to sustain their interest in oilseed cultivation.
It said the imports of edible oils has reached a record of over 10 million tonnes in the first nine months of the current oil year ending October 2015, as against 8 million tonnes in the year-ago period.
Total imports are expected to touch 14 million tonnes valued at Rs 65,000 crore in the entire 2014-15 oil year against the previous year's import of 11.8 million tonnes, it added.
About 60 per cent of India's annual edible oil demand of 18-19 million tonnes is met through import, mostly from Malaysia and Indonesia.
Source:- economictimes.indiatimes.com
China Steel Plant To Be Affected By India's Import Tariff Hike
A decision by the Indian government to increase import duties on certain steel products is expected to adversely affect the operations of the Taiwan-based China Steel Corp's plant in India, Taiwan's Ministry of Economic Affairs said Saturday.
The company's production base in the western state of Gujarat is expected suffer higher operating costs as imported steel products will become more expensive after the tariff hike, the ministry said.
Effective Aug. 12, India's import duties on steel bars and certain hot-rolled steel plates were increased 2.5 percentage points to 12.5% and 10%, respectively, the minstry said.
It was the country's second tariff hike on steel products since mid-June, as it has been trying to protect its steel industry by preventing foreign exporters from undercutting local businesses, the ministry said.
In addition to the tariff hikes on steel bars and hot-rolled steel plates, the Indian government has raised import duties 2.5 percentage points on a wide range of metal products such as copper, nickel, lead, zinc, aluminum and tin.
China Steel's plant in Gujarat launched commercial production on Jan. 12, featuring an annealing and coating line, and is aiming to roll out an annual 200,000 tonnes of electrical steel, a type of value added cold-rolled steel.
Described as the first stage of China Steel's investment in India, the project was launched in July 2012 and construction started in August 2013, with an investment of US$237 million.
The ministry said other Taiwanese steel exporters in India are also expected to feel the pinch of India's higher tariffs, which will erode their competitive edge.
In 2014, Taiwan sold US$176.08 million worth of steel products to India, a 1.43% annual drop, while its market share fell to 1.54% from 1.73% the previous year.
The ministry said it will continue to voice its concerns to the the Indian government about the higher import duties and will push for a bilateral free trade agreement to eliminate such trade barriers.
Currently, China, South Korea and Japan are three largest steel exporters to India, with a combined 46.77% share of the market. Since South Korea and Japan have comprehensive trade agreements with India, they will not be affected by the tariff hikes, the ministry said.
Source:wantchinatimes.com
India To Import 10,000 Tonnes Onions To Check Prices
With onion prices hitting Rs 70-80 per kg in most parts of the country, the central government has floated tenders for the import of 10,000 tonnes of onions, it was announced on Saturday.
"Government of India has been keeping a close watch on the rise in prices of onions. A decision has been taken by the government to import onions and a tender has also been floated for 10,000 MT of onions which will be opened on August 27," a government spokesman said here.
Onion prices have been on the rise across the country in the past one month. At many places, onion prices crossed the Rs.70 per kg mark on Thursday with most people complaining that the government was not doing enough to contain price rise.
The Nashik-based National Horticultural Research and Development Foundation (NHRDF), in its latest report, said that the onion prices are likely to remain on the higher side till September-end. Wholesale dealers have indicated that if the present trend continues, onions could soon hit the Rs.100 per kg mark.
The government also announced on Saturday that Minimum Export Price (MEP) of onions would now be raised to $700 per metric tonne (MT) to ensure that onions are not exported and are made available in the domestic market. The MEP was last increased from $250 per MT to $425 per MT on June 26, the spokesman said.
Noting that onion prices were being reviewed regularly, he said that the secretary, consumer affairs department will hold a meeting with various government departments and agencies on Monday to review the action taken to keep the prices in check.
"To intervene in the market, Small Farmers Agribusiness Consortium (SFAC) and NAFED have procured 5,857 MT of onion. This has been funded out of Price Stabilisation Fund meant to keep prices of essential commodities under control," the spokesman said.
"SFAC is supplying onions at Rs.30.50 per kg to SAFAL, which is retailing at Rs.39 per kg in Delhi. SFAC is also selling onions to consumers at Rs.35 per kg through 120 milk booths of DMS (Delhi Milk Supply). A decision was also taken by Government of Delhi to sell onions at subsidized rate of Rs.40 per kg through 280 Fair Price Shops, which was further reduced to Rs.30 per kg from August 12," he said.
The spokesman said that price of onions has been "rising on account of a decline in total production from 189.23 lakh tonnes in 2014-15 as against 194.02 lakh tonnes in 2013-14 i.e. a decrease of 4.79 lakh tonnes".
"The shortfall has primarily been on account of adverse weather conditions including unseasonal rains which has impacted both the standing and harvested crop at the major producing centres," he added.
The central government has directed that action be taken against those hoarding and black-marketing of onions. The NHRDF pointed out that out of the storage stock of 40 lakh tonnes in July this year, 50 percent has been consumed and only about 16-18 lakh tonnes is left.
With the festival season round the corner in Maharashtra, which produces the maximum onions but has been hit by an ongoing dry spell in most parts of state, onion prices could breach the Rs.100 per kg mark in urban centres like Mumbai, Pune and Nagpur in the next couple of weeks.
Onion prices in other states and cities too are in the Rs.70-80 per kg bracket in retail, upsetting the budget of most homes and establishments.
Source:mid-day.com
Rupee Could Weaken To 66.25/Dollar: Dbs Bank
The rupee on Friday edged closer to the 66/dollar, its lowest value since September 2013. Arvind Narayanan, head of sales at treasury and markets at DBS Bank, said that rupee is poised to weaken further and could hit 66.25/dollar.
The rupee has fallen over 3 per cent since China on August 11 depreciated its yuan, sparking fears of a global currency war. The rupee ended at 65.82/dollar on Friday after hitting a low of 65.92.
Reserve Bank of India Governor Raghuran Rajan has warned of risks of risks from devaluation China's yuan. "If it is part of a process of getting competitive advantage through longer term depreciation it has to be worrisome across the world, partly because you could have tit-for-tat actions," he said on Thursday.
Apart from yuan's depreciation, Mr Narayanan of DBS Bank attributed rupee's fall to emerging market selloff amid global growth concerns.
"What started off with yuan devaluation has become bigger issue. We have seen the ongoing China slowdown assuming bigger proportions," he added.
Worries of a deepening China economic slowdown intensified on Friday after a private survey showed the factory sector shrank at its fastest rate in almost 6-1/2-years in August, hammering global stocks and commodity prices.
The recently released minutes from US Federal Reserve Fed minutes showed officials noting that weak global economy posed too big a risk to commit to a rate "liftoff." Moody's has recently cut India's FY16 growth estimate to 7 per cent from 7.5 per cent.
However, Mr Narayanan does not fear a run on the rupee as it happened in 2013, when rupee hit an all-time low of 68.85. India's deficits have narrowed significantly since 2013 and the Reserve Bank of India has significant ammunition in the form of foreign reserves, he added. The Reserve Bank of India has foreign exchange reserves worth nearly $350 billion.
Mr Narayanan said the RBI may be okay with some weakness in rupee because the fall in the currencies in other Asian markets could impact India's exports.
Mr Narayanan also attributed commercial reasons for the fall in rupee. The dollar demand has gone up because importers want to cover their exposure in view of the weakening of the rupee while exporters might want to hold to their dollars on expectations of a further weakening of the currency, he added.
Source:profit.ndtv.com
Retro increase in compounded rates allows assessee to reconsider his option of compounded levy schem
Even if advance forfeited by supplier wasn't allowable as bad-debt, yet it could be considered as bu
Saturday, 22 August 2015
No tax on Joint Venture Co. as no receipts were found in its books and work was done by its constitu
PLI of BPO can't be compared with PLI of KPO for transfer pricing analysis
Tribunal can't dismiss appeal due to non-prosecution without adjudication on merits
Service Tax could not be levied to indivisible works contract prior to 1-6-2007
SEBI proposes to allow Infra Investment Trusts to invest in two level SPVs and to reduce sponsor's c
AO can't make reassessment without serving notice of further evidence
Portfolio management services aren't comparable with investment research and advisory services for T
Tribunal may dismiss appeal without deciding case on merits if pre-deposit order hasn't been complie
Sum retained in contract subject to completion of defect-free period will be taxable on receipt basi
Dept. had to establish that assessee was involved in illicit transportation of goods for levying pen
While granting registration DIT couldn't insist on trust to obtain registration from Govt. of Andhra
Govt. enables online filing of form FC-TRS for transfer of shares between NRs and Residents via e-Bi
No recovery during pendency of adjudication; only provisional attachment can be made
Providing machinery alongwith operator wasn't sale transaction
Sec. 158BD notice quashed as AO failed to record satisfaction that undisclosed income belonged to ot
Govt. enables online filing of form FCTRS for transfer of shares between NRs and Residents via e-Biz
Friday, 21 August 2015
Delhi ITAT rejects 'bright line test' for adjustment of AMP exp. by following ratio of 'Sony Ericsso
Detention order passed against detenu after considering his past activities of smuggling wasn't ille
Dept. could issue notice to keep dispute alive which was dismissed earlier due to limitation period
Oral partition of property under Joint Development Agreement doesn't justify apportionment of cap ga
Providing machinery alongwith operator wasn't sale transact on
Construction of foot-over bridges and bus shelters are parts of infra-facility for claiming sec. 80-
Packaging of fertilizer is a part of manufacturing process; not liable to service-tax
Abnormal cost incurred by a startup is to be excluded for benchmarking it with other Cos which aren'
Provision allowing detainment of goods-in-transit in the absence of necessary docs held as constitut
Income declared in belated return after the date of search wasn't undisclosed if advance tax was pai
Once section 80 is found applicable entire penalties under secs. 76 to 78 must be waived off
Income-tax provisions don't allow deduction of scientific Research exp. on lines of deferred revenue
Writing down directions of Tribunal by departmental representatives tantamount to receipt of notice
SetCom gets flak from High Court for disposing of application without considering objections raised
Paper manufactured from waste of jute or gunny bags was eligible for concessional rate of duty
Thursday, 20 August 2015
ITAT rejects comparables due to huge turnover and high related party transactions
TDS recovery can be made from TDS defaulter at any time if payee doesn't pay due taxes
High Court denied to interfere with DRT's order rejecting stay plea as there was no breach of natura
EOU isn't exempt from Additional Duty of Excise on High Speed Diesel levied under Finance Act 1999
Sec. 69 addition rightly deleted as revenue failed to prove that assessee had made undisclosed inves
Levy of sec. 234B interest affirmed on basis of tax computation form, ITNS 150 as it formed part of
Credit can't be denied on capital goods if depreciation claim on duty element is reversed in revised
Interest bearing loan taken from debtor resulted in diversion of income; ITAT disallows interest
Indian Tea Industry Eyes Russian Market; Delegation To Visit Moscow In September
India's tea industry is eyeing Russia with renewed interest after a gap of 10 years as exports to two key markets of Egypt and Pakistan are not picking up.
A delegation of Indian tea producers, merchant exporters and auctioneers is set to visit Russia, the world's fourth-largest tea consumer, next month. The delegation plans to hold talks with buyers at WorldFood Moscow, which will be held between September 14 and 17.
Exporters are looking at the entire Commonwealth of Independent States (CIS) region, comprising former Soviet bloc countries, said Azam Monem, vice-chairman of Indian Tea Association.
"We are not only looking at Russia to increase our exports. Our aim is to increase our presence in the CIS region," said Monem."Russia and CIS are two traditional markets for Indian exports. But for long, we have not done much to develop these markets further so that more teas can be exported.With production increasing, we also need to develop export markets for our teas." Russia and CIS countries - including Ukraine, Kazakhstan and Azerbaijan - consume 200-220 million kg of tea annually. India exports 50 million kg to the region.
Russia was earlier an orthodox tea-consuming country but now it has also taken to CTC teas. Sri Lanka is the major exporter of tea to Russia and CIS, and it sends 6065 million kg to the region. Russia also imports teas from Kenya and Indonesia.
ndian traders are also looking at Georgia in a big way as the country can become a major tea hub. Georgia is a country in the Caucasus region of Eurasia located at the crossroads of western Asia and eastern Europe. It is bounded to the west by the Black Sea, to the north by Russia, to the south by Turkey and Armenia and to the southeast by Azer baijan.
"If we can make our presence felt in Georgia, then we can easily access Turkey through Georgia. Turkey is a major tea-drinking nation in the wo rld," said Monem.
In 2014, India exported 207.44 million kg of tea. The total exports in the six months to June stood at 88.94 million kg, 9% less than 97.67 million kg a year ago. The prices of CTC and dust teas are currently hovering around Rs 165.05 a kg and Rs 168 a kg respectively . Orthodox teas are fetching a price of Rs 247.56 a kg.
Source:economictimes.indiatimes.com
Indian Toy Makers Seek Govt Help To Stop Flood Of China Imports
All it will take for Indian toy makers to capture a major pie of a Rs.13,000 crore ($2 billion) opportunity is a little push from the government by way of promoting indigenisation to replace the flood of imports largely from China, Taiwan and Italy, manufacturers say.
The Toy Association of India (TAI), while pegging the country's market at Rs.13,000 crore during 2015-16, has, however, painted a grim picture as far as Indian manufacturing is concerned.
"Currently, only about 20 percent of the market is served by Indian manufacturers and the rest by import of toys from different countries, mainly from China and Italy," TAI vice president Pawan Gupta told IANS, implying that Indian firms, in the current scenario, will be able to harvest only Rs.2,600 crore from the gigantic pie.
According to TAI, India's overall toy imports increased at a Compound Annual Growth Rate (CAGR) of 25.21 percent between 2001 and 2012 while imports from China and Italy surged at a CAGR of 30 percent and 38.6 per cent respectively during this period.
The Indian manufacturers' base in the segment comprises mostly of some 4,000 micro-medium firms. Seventy-five percent of these are in the unorganised sector, thereby limiting their scope to upscale production or compete with global brands.
"Competitive countries like China have humongous manufacturing capacities and they flood the markets with their products," he said.
Lack of adequate finance and distinct clusters for toy manufacturing and low level of product conceptualisation and design have been cited as the primary impediments for the industry.
Additionally, hurdles in procurement of critical raw materials have been highlighted as plaguing the Indian small-scale toy makers. Gupta said the government needs to design simpler procedures for indigenous toymakers to raise capital. "The success of SMEs in the toy industry can grow manifold if they start working in self-sufficient clusters in certain regions", he said.
Reputed toymaker Funskool echoed the need for a change in the government's outlook to boost the industry. "For toymakers to produce in India and join the Make in India campaign, fundamental changes in the way the government looks at the toy industry is needed", Funskool (India) CEO John Baby told IANS.
The company highlighted installation of proper infrastructure support like R&D, tool-making facilities and testing labs, among others, to enable the growth of indigenous toy manufacturing.
While the sector at present employs around three million people at various skill levels, Baby said the present labour laws do not support the industry to undertake high volume one-run production.
The industry further highlighted the health hazards children may be exposed to when the quality of the materials in the toys are compromised for pricing.
"The cheaper imports of toys, especially from markets like China are available in the market at a lesser price, but their quality is a matter of concern," Gupta said.
Further, while many global brands are in the process of making their India entry, which will give rise to further innovation and boost the economy, an existing problem has been that most imported toys don't cater to the needs of Indian children.
"Domestic manufacture also ensures that the Indian buyers get quality and safe toys for their children at affordable prices", the Funskool official said.
But cheaper imports from the land of the Hans and Tangs alone cannot be blamed for endangering the health of children.
Among the local manufacturers in India, about 59 percent are still focussing on the production of cheap and unbranded toys, thereby compromising on quality.
"In the future it is expected that these companies will shift towards branded toys as well to stay competitive with international companies," TAI's Gupta said.
"The coming times are really bright for the toy industry", Mayank Aggarwal, director of Playwell Implex, a toy distribution company, told IANS.
He said the industry may touch the Rs.13,000 crore mark by the end of 2015 on account of increasing consumerism and spends from a rapidly expanding middle-class that could comprise over 200 million people by 2020.
"The market size is increasing by at least 20 to 25 percent", Aggarwal told IANS. India's toy industry caters to an estimated 304.8 million children in the 0-12 age group years and 50 million babies in the 0-2 age group.
Source:thehansindia.com