Gift received by MLA from his NRI father via normal banking channels is outside the ambit of FCRA

FCRA : Gift received by MLA from his father who is NRI out of the latter's personal funds through normal banking channels is outside the purview of FCRA,1976/FCRA,2010 as the same cannot be said to be received from a "foreign source". Such a gift would be outside the realm of both these legislations as the transaction is between an Indian father and an Indian son. The contribution made by a citizen of India living in another country (Non-Resident Indian), from his personal savings, through the n

Exp. incurred on room cleaning to install machinery therein wasn't includible in value of machinery

[2015] 63 taxmann.com 273 (Mumbai - Trib.)

Stakeholders allowed to appear before Court as creditor didn't have absolute right to insist winding

CL: Where even though petitioning creditors had made a case for winding up of respondent company on ground of its inability to pay its debts, they had no absolute right to insist on winding up and Court in its discretion was justified in giving time to admit and advertise petitions, so that all stakeholders would be in a position to come before Company Court and be heard in matter before a final decision on winding up was taken

Even wrongly paid interest and penalty can be adjusted against tax dues payable under VCES

Service Tax : Where assessee had paid interest/penalty wrongly without any knowledge of VCES, then, on filing declaration under VCES, assessee could file application for correction of accounting codes and seek adjustment of wrongly paid interest/penalty against 'tax dues' under VCES

No exclusion of comparable due to related party transactions above 15% of turnover without any suppo

IT/ILT : No comparable can be excluded from TP study mere relying on legal proposition that companies having related party transactions of more than 15 per cent cannot be considered as comparable, without supporting evidence on record

Transport entity wouldn't fall outside ambit of charitable unit on receipt of fee from testing of au

IT : Where main object of assessee-association of state road transport undertakings, improving public transport system in country, merely because assessee received revenue from testing automobile parts and consultancy services, same could not be held for earning profits

No TP adjustment for corporate guarantee issued by parent-Co. on behalf of its subsidiary-Co.

IT/ILT : The issuance of corporate guarantees by holding company on behalf of its subsidiary where it is done to provide or compensate for lack of subsidiary's core strength to raise bank finances is in the nature of quasi capital or shareholder activity and does not amount to a service in respect of which arm's length adjustment can be done. This is a transaction which cannot happen in an arm's length situation. This is because no bank will ever issue a guarantee in favour of an entity which la

Revenue couldn't challenge order of SetCom if there was no irregularity or lack of jurisdiction in o

IT: Where department filed a writ petition praying for quashing of order passed by Settlement Commission admitting assessee's application for settlement, department was to be directed to raise all objections before Commission itself

Dept. couldn't pressurize assessee to disclose income during search by seizing demand draft above 30

IT: Where assessee offered a summary disclosure of an amount due to pressure of proceedings during search operations which were adversely affecting business and no incriminating material was discovered as a result of search operations and sole basis of additions was disclosure which was involuntary, additions were not justified

Amount paid pursuant to adjudication order is to be refunded when order is set-aside and matter rema

Excise & Customs : Once adjudication order has been set aside and matter remanded back for adjudication afresh, department has no authority in law to retain amounts deposited pursuant thereto; hence, assessee may filed refund claim

Embroidery machine used for carrying out embroidery work on fabric is entitled to additional depreci

IT: Where assessee was engaged in business of embroidery work on synthetic fabrics on job work basis, work of embroidery carried on by assessee would fall within ambit of definition of manufacture and thereby it was entitled to avail of additional depreciation on embroidery machine installed

Assessee proved genuineness of exp. by establishing identity of parties and producing payment detail

IT : Where assessee paid certain amount to sub-contractors for carrying out work by them and proved genuineness of payment by producing cogent evidence and sub-contractors also confirmed that they received payment by banking channel, expenditure was allowable as business expenditure

Commission earned on sale of goods of foreign co. in India not liable to service-tax for period prio

Service Tax : Commission on sale of goods of foreign company in India amounts to 'export', as service is provided to foreign service recipient to be used in their country though such services result in sale of product in India

ALP of info-technology cost allotted to AE can't be Nil if it is critical for functioning

IT/ILT : Where in course of business of manufacturing artificial flavours, food and non-food ingredients, assessee paid information technology cost to its AE for services such as internet charges, WAN site fee, SAP support fee etc., since said services were required for assessee's business, TPO could not determine ALP of same at nil

Due date for filing of Annual Return and Financial Statements further extended by one month

COMPANIES ACT, 2013 : Section 137 of the Companies Act, 2013 – Accounts of Companies – Copy of Financial Statement to Be Filed with Registrar - Relaxation of Additional Fees and Extension of Last Date of in Filing of Forms Mgt-7 (Annual Return) and Aoc-4 (Financial Statement)

ICSI releases revised edition of draft guidance notes on 'Annual Return'

COMPANIES ACT, 2013 : Draft of Guidance Note on Annual Return (Revised Edition)

Matters arising within Dadar and Nagar haveli are appealable in Bombay HC and not in Gujarat HC

Excise & Customs : In case of matters arising within Union Territory of Dadra and Nagar Haveli, appeals would lie to Bombay High Court and not Gujarat High Court, even if adjudicating and appellate authorities are located in Gujarat

Exp. incurred on overhauling of 'Bucket Wheel Excavator' used in mines was to be allowed as revenue

IT : Where assessee without giving any reasons changed its accounting policy and claimed amount spent on purchase of loose tools as revenue expenditure which had been capitalised in earlier years, Assessing Officer was justified in initiating reassessment proceedings

Govt. authorizes Central Registry of SARFAESI to act as Central KYC records registry under PMLA

MONEY-LAUNDERING : Section 73 of the Prevention of Money-Laundering Act, 2002, Read with Rules 2 and 9A of the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005 – Power to Make Rules – Authorisation of Cersai to Perform Functions of, Central KYC Records Registry Under said Rules, Including Receiving, Storing, Safeguarding and Retrieving KYC Records in Digital Form of A Client

CCE(A) can't direct verification of matters not doubted in Show Cause Notice

Service Tax: Where there was no allegation in show-cause notice as regards balance of unutilized credit in cenvat account, Commissioner (Appeals) could not travel beyond show-cause notice to direct verification of unutilized credit.

Tribunal can't recall its earlier order in garb of rectification

Excise & Customs : Where assessee had sought rectification only on issue of redemption fine owing to mistake apparent from record, Tribunal could not have recalled entire order and passed a new order dealing with levy of duty, penalty, fine and confiscation

Delhi HC sets aside reassessment as AO had issued notice prior to recording of reasons for reassessm

IT : Where notice under section 148 was issued by Assessing Officer prior to recording of reasons for reassessment and, assessee's objections were not disposed of by passing a speaking order, impugned notice deserved to be set aside

Conversion charges paid on factory land for using it for other commercial activities were revenue ex

IT : Where factory premises of assessee was already in use for 30 years, on which conversion charge was paid in instalment for using it for commercial/service activities interest paid along with instalments could not be treated as capital expenditure

CLB's order holding that there was no oppression due to capital reduction didn't give rise to any qu

CL : Where appellant was party to arrangement by which his shares were divested and his shareholding was reduced in company, CLB's order holding that there was no oppression on account of reduction of appellant's shareholding did not give rise to any question of law

Genuine expenses couldn't be disallowed just because signature of one person was found on all vouche

IT : When record justified weaving charges claimed by assessee, same could not be disallowed on specious plea that one person, who represented all weavers, signed vouchers for all persons

Automobile cess and EC/SHEC thereon held as excise duty; eligible for export rebate

Central Excise : Since provisions of Central Excise Act relating to 'levy and collection' and 'refund' of duty are made applicable to Automobile Cess, hence : (a) 'Automobile Cess and EC/SHEC thereon' is 'duty of excise' in terms of section 3 of the Central Excise Act, 1944; and (b) 'refund' as defined in section 11B ibid would include 'rebate' is accordingly, eligible for rebate under rule 18 of the Central Excise Rules, 2002

Car AC kits and gas compressor to be classified separately if both aren't sold as single unit

Central Excise : Where 'Car AC kits' and 'gas compressors' are sold separately by different invoice or by separate pricing, then, Kit would be covered by Entry 8 and compressor would be charged as per Entry 1 of Notification No. 166/86-C.E

Sec. 36(1)(vii) allows deduction of only actual bad debts and not doubtful debts

IT: Section 36(1)(vii) deals with only actual claim of deduction; provision for bad and doubtful debts cannot be allowed under this section

Mis-declaration of description of goods attracts penalty even in case of exempted goods

Excise & Customs : Medical diagnostic equipment for automatic analysis of blood samples, even if incorporates principles of photometry, is to be classified as 'auto analyses', and not as 'photometer'

Penalty to be imposed on failure of assessee to supply goods mentioned in tax invoice

Excise & Customs : Where appellant-company did not supply goods/inputs as mentioned in tax invoice, while recipients of goods/inputs reversed Cenvat Credit on these transactions, assessee-appellant company, and not its director, was to be penalized

Additions rightly made on basis of admission of accommodation entry that radically changed character

IT : Where assessee claimed a sum to have been derived from share business but in course of search proceedings admitted that it included accommodation entries, levy of penalty was justified

CBDT releases Explanatory Notes to provisions of the Finance Act, 2015

IT/ILT : Finance Act, 2015 – Explanatory Notes to the Provisions of Said Act

Export price can't be said to be overvalued because of huge profits earned by exporters

Excise & Customs : Where assessee had purchased goods in India at Rs. 640 and exported same at Rs. 741.60, then, without challenging genuineness of said transactions, export price could not be regarded as overvalued merely because of huge profit made by domestic seller

No disallowance of interest just because assessee had own funds if borrowed funds were used for busi

IT: Where Assessing Officer treated purchases of cotton made by assessee, a hospital, as unverifiable and disallowed same, since books of account of assessee being not rejected and consumption of cotton having comparatively decreased, disallowance required to be restricted to 15 per cent of purchases

Buy-back price to be disclosed even if promoter is exempt from public announcement under takeover co

SEBI : Where appellant-promotor bought back its shares from State Financial Institution, no public announcement is required as same is being protected under regulation 3 of SEBI (Substantial acquisition of shares and takeover regulations, 1997), however, rate at which shares were bought back had to be disclosed.

Customs duty was payable on reduced price if reduction was made prior to import

Excise & Customs : Where purchase price fixed in first contract has been genuinely revised and lowered in second amending contract entered into prior to import, customs duty is payable as per reduced price

Co. engaged in 2D/3D animation isn't comparable with software development co.

IT/ILT : Company engaged in animation services cannot be considered as comparable to software development company

Director's act of nominating own person on board without giving notice to co. was mala fide: HC

CL: Where second respondent had right to appoint nominee on board of company but there were strained relationship between parties, i.e., appellant and second respondent, action of second respondent in nominating its own persons on board without any notice was mala fide and vindictive

Services of Air Travel, CA and CS availed by exporter for functioning of its business are eligible i

Cenvat Credit : Input services/activities in relation to business can cover all activities/services relating to functioning of business; hence, all such activities/services would be eligible as input service and refund of credit can be allowed under rule 5

CBDT signs 11 more unilateral APAs with Indian counterparts of foreign Cos

IT/ILT : Section 92CC of the Income-Tax Act, 1961 – Transfer Pricing – Advance Pricing Agreement (APA) – Signing of 11 More Unilateral APAs

RBI eases norms on filing of online returns by NBFCs

NBFCs : Revision of Online Returns to be Submitted by NBFCs

Delay in filing TDS return due to non-submission of PAN by payee won't invite penalty

IT : Where assessee challenged penalty order passed under section 272A(2)(k) on ground that delay in filing TDS returns occurred due to non-submission of PAN details by concerned deductees within stipulated time, matter was to be remanded back for disposal afresh

Exp. on foreign trip of MD and his wife disallowed in absence of details of business visa and meetin

IT : Where assessee showed value of share in books on which it had never claimed diminution/increase, income earned on sale of shares was capital gain, and not business income

SEBI unveils format for disclosing financial results for entities having listed their debt securitie

SEBI : Format for Financial Results for Listed Entities which have Listed their Debt Securities and/or Non-Cumulative Redeemable Preference Shares

RBI relaxes restriction on deployment of expatriates in Indian branches by foreign banks

BANKING : Engagement of Services of Expatriate Officers in Indian Offices of Foreign Banks

RBI directs AD banks to consider Bill of entry as evidence for physical imports of goods

FEMA/ILT : Import of Goods into India – Evidence of Import

RBI permits FPIs to buy defaulted non-convertible debentures/bonds

FEMA/ILT : Investment by Foreign Portfolio Investors (FPI) in Corporate Bonds

RBI scraps requirement of taking approval from Civil Aviation Ministry on import of aircraft, helico

FEMA/ILT : Advance Remittance for Import of Aircrafts/Helicopters/Other Aviation Related Purchases

Corporate guarantee provided to AE involves rendering of services; covered under TP provisions

IT/ILT: Where assessee made trade advances to AEs, interest was chargeable and TPO was to be directed to adopt EURIBOR + 2 per cent rate of interest as appropriate bench mark price and make adjustments towards interest and advance provided to AEs

Credit of EC can't be used to pay SHEC

Cenvat Credit: As per First Proviso to rule 3(7)(b) of the CENVAT Credit Rules, 2004, credit of EC on excisable goods and EC on taxable services can be used only for payment of EC on finished excisable goods or EC on taxable service; hence, credit of EC cannot be used for discharging SHEC

Date of failure is relevant and not date of imposition of penalty to apply amended sec. 15A of SEBI

SEBI : Where SEBI's summons to respondent to furnish required documents was prior to 29-10-2002 when SEBI(Amendment) Act, 2002 came into force by which penalty under section 15A had been enhanced to Rs. 1 lakh for each day of failure to furnish required document, return or report, or Rs. 1 crore, whichever is less, penalty prior to amendment to section 15A would be applicable, i.e. Rs. 1.5 lakhs on failure of respondent to furnish required documents

Co. providing engineering consultancy services isn't comparable with a co. rendering marketing servi

IT/ILT : In case of assessee, rendering marketing support services to its AE, companies providing engineering consultancy or pay roll services or conducting clinical trials of food and drugs or research and survey or providing consultancy services or advisory services, could not be accepted as valid comparables while determining ALP

No cancellation of trust’s registration just because trust deed allows trust to carry on other busin

IT : Merely because one of clauses of trust deed of assessee trust provided that trust could carry on other business as decided by trustees, it would not per se disentitle trust from being considered for registration under section 10(23C)(vi)

No reassessment on basis of report of investigation wing if assessee had disclosed material facts du

IT : Where assessee had disclosed all material facts in support of loan transactions at time of making assessment, initiation of reassessment proceedings after expiry of four years from end of relevant assessment year merely on basis of report of investigation wing that loan received from one 'R' was bogus, was not sustainable

Delhi Govt. prescribes 3 days deadline for restoration of registration application under DVAT

VAT : Time Limit for Restoration of Registration Application

Co. which earns income from sale of licenses is not comparable with a Co. rendering software develop

IT/ILT: A company which earns income from sale of licences ought to be rejected as comparable for company rendering software development services

Services of seed testing are not liable to service tax; CBEC clarifies

ST : Section 65B(3) of the Finance Act, 1994 – Agriculture - Clarification on Leviability of Service Tax on Seed Testing with Retrospective Effect From 1-7-2012

RBI restores eligibility criteria for factoring companies to register as NBFC-factor

BANKING : Bank Finance to Factoring Companies

SEBI prescribes timelines for commodity derivate exchanges to comply with Securities Laws

SEBI : Timelines for Compliance with Various Provisions of Securities Laws by Commodity Derivatives Exchanges

CBDT invites suggestions for proper implementation of ICDS

IT/ILT : Section 145 of the Income-Tax Act, 1961 – Method of Accounting – Income Computation and Disclosure Standards (ICDS) Notified Under Section 145(2)

Services availed by 'Vodafone' for vendor payment queries and field activations are technical servic

IT : Payments made by assessee to service providers for rendering support services such as field activations, vendor payment queries, tele-calling for bill payments would require deduction of tax at source under section 194J

Appeal not maintainable if filed after expiry of period of one month available to CCE(A) to condone

ST : Where appeal was filed before Commissioner (Appeals) belatedly, even beyond extra period of one month that is condonable by Commissioner (Appeals), appeal would not be maintainable

Duty draw back couldn't be treated as business income if it was being part of equipment cost

IT: Where assessee in respect of materials purchased paid excise duty to vendors in relevant assessment year 2009-10 and its project was not in operation during said year and it lodged a claim for refund of excise duty with Director General of Foreign Trade as deemed export benefits, since amount of excise duty related to cost of acquisition of capital assets/project, refund of excise duty would ultimately reduce cost of project and could not be treated as business income

Dept. couldn't demand reversal of credit just because minor variation were found in inventory during

Excise & Customs: Where during audit, minor variation of less than 0.5 per cent was found in inventory, i.e., Raw Material and/or finished goods, demanding Excise Duty or reversal of credit on such short and excess would be non-sustainable

CCI rejects allegation of unfair trade practice against Reliance Gas

Competition Act : CCI dismissed informant's complaint against Reliance Gas Transportation Infrastructure Ltd (Reliance Gas) for alleged imposition of arbitrary, unfair and unreasonable anti-competitive terms and conditions in hook-up facility agreement

'Annual turnover' can't be interpreted to include only brokerage for computing registration fee: SC

SEBI : Annual turnover of stock broker as per Explanation after paragraph 3 to Schedule III to SEBI (Stock Brokers & Sub Brokers) Regulations, 1992 must include value of entire transaction, for purpose of computing registration fee as per Schedule III of Regulations and in no case term 'annual turnover' can be so interpreted as to mean only amount earned by stock broker by way of brokerage

Working capital adjustment should be made for TP study on basis of average annual working capital

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering software development services to AE, in view of fact that some comparables selected by TPO were improper on account of functional difference as they developed their own software products whereas another comparable was found inappropriate as it had huge turnover, impugned addition was to be set aside

Date of commencement of business isn't relevant to allow depreciation when asset is ready for use

IT: Provisions of section 40(a)(ia) cannot be invoked to disallow expenditure which has been actually paid during previous year and nothing remained payable on last day of previous year

No denial of Cenvat credit on input services availed prior to initiation of manufacturing activity

CENVAT: A manufacturer of excisable goods could not be denied Cenvat Credit of duty paid on input services availed prior to start of manufacturing activity

Income already disclosed prior to search proceedings couldn't be treated as undisclosed

IT: Since disclosure about a particular income was made by assessee nearly three years prior to search, same could not be treated as undisclosed income

Valuation of DTA clearances of 'tea' by EOU to be valued as per Excise law: Apex Court

Central Excise : Where, as per exemption notification, DTA clearances by EOU are liable to 'excise duty leviable on clearances by non-EOUs', said DTA clearances are to be valued as per Central Excise Valuation rules

Excise exemption available to ore can't be extended to concentrate as both are different products

Excise & Customs: Process of conversion of ore into concentrate amounts to deemed manufacture; therefore, concentrate is a different product from ore and, accordingly, CVD/excise exemption to 'ore' cannot be extended to 'concentrate'

ITAT deletes TP addition as impugned transactions were made between two resident persons

IT/ILT : Where assessee-company and company providing management services to it were both resident in India, transaction between them would not fall within definition of international transaction; requiring ALP computation under TP provisions

Reprinting of revised price before packing isn't violation of weight & measurement norms

Standards of Weights and Measures Act: Where a revised price was required to be printed on wrapper before packing contents and it was under such circumstances that initial label was blacked out and a separate MRP was printed same was not in derogation of or inconsistent with sub-clause (7) of rule 23; penalty proceedings imposed on this ground were to be set aside

No penalty if assessee had bonafide belief that charitable institutions not covered under commercial

ST : Where appellant-institution was under bonafide belief that being a charitable trust it was not covered by expression 'Commercial Training and Coaching Centre', though related notification was amended retrospectively to cover such institution, longer period of limitation could not be invoked for raising demand; further, benefit of waiver of penalty would be available to appellant

Cos having huge turnover and excess related party transactions are excludible from list of comparabl

IT/ILT : In case of assessee, rendering software development services to its AE, companies having functional dissimilarities, excess RPT and huge turnover, were to be excluded from list of comparables while determining ALP

Question of change of opinion didn't arise if return of income was accepted under sec. 143(1); reass

IT: There being no assessment under section 143(1)(a), question of change of opinion, does not arise and, reassessment can be made

Apex Court discuss scope of ‘commercial expediency’ to allow deduction of interest to Hero Cycles

Once it is established that there is nexus between the expenditure and the purpose of business (which need not necessarily be the business of the assessee itself), the revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and to decide how much is reasonable expenditure having regard to the circumstances of the case.

CBEC exempts excise duty on raw material and parts used in manufacturing of shipping vessels

EXCISE/NT : Omnibus general exemption to goods specified in Chapters 1 to 98 of Tariff – Amendment in Notification No. 12/2012-C.E., dated 17-3-2012

SC draws distinction between exempted goods and exempted units for allowing input tax credit

Rajasthan VAT- Assessee could claim input tax credit of raw material used in manufacturing of Asbestos Cement Sheets when assessee was specifically exempted from paying VAT due to exemption notification.

Apex Court discus’s scope of ‘commercial expediency’ to allow deduction of interest to Hero Cycles

Once it is established that there is nexus between the expenditure and the purpose of business (which need not necessarily be the business of the assessee itself), the revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and to decide how much is reasonable expenditure having regard to the circumstances of the case.

Dept. can't raise issue of ineligible input service for the first time without raising it in show-ca

Service Tax : Show-cause notice is foundation of demand and order-in-original and subsequent orders passed by appellate authorities under statute would be confined to show cause notice; hence, department cannot challenge order of Tribunal on grounds not mentioned in notice/adjudication order

No service-tax on service portion of works contract for period prior to June 1, 2007

Service Tax: Despite contract giving break-up of price for materials as well as services separately, if contract is treated as 'turnkey contract'/'works contract', no service tax is payable on service portion thereof prior to 1-6-2007

Seized gift couldn't be treated as unexplained if no incriminating material was found during search

IT: Where Authorised Officer conducted search under section 132 upon assessee and thereafter Assessing Officer framed assessment under section 143(3) read with section 153A, whereby he treated amount of gifts received by assessee from two individuals an unexplained cash credit and added same in his income, since there was nothing on record to suggest that gifts were ingenuine, impugned addition was beyond scope and ambit of an assessment envisaged under section 153A

Notional interest on surplus funds can't be deemed as profit of eligible undertaking under sec. 10A

IT : An assessee cannot include notional interest on surplus funds as income in computation of profits and gains derived by its undertaking from export of articles or things, for purpose of claiming exemption under section 10A

Stamp duty value won't apply if value of property adversely affected due to its usage for industrial

IT : Stamp duty value won't apply if value of property adversely affected due to its usage for industrial purposes only

Service-tax is payable on amount of service charges and wages in case of manpower supply services

Service Tax: In case of manpower supply to shipping companies, service tax is payable under 'manpower supply services' on value inclusive of service charges and wages of labour

RBI postpones date of issue of Gold Bonds to Nov 30, 2015

BANKING : Sovereign Gold Bonds, 2015-16 – Shifting of Issue Date Thereof

Comparable chosen in earlier draft order could be used later if such order was set-aside without dec

IT: Where earlier draft assessment order was not dealt on merits, but set aside only on ground of violation of principles of natural justice, there was nothing wrong in adopting comparables selected by TPO in earlier order by revenue in determining arm's length price in international transaction of assessee

Sum received for restrictive covenant in relation to profession is tax-free

IT : Clause (va) of section 28 of the Act taxes a sum received for a restrictive covenant in relation to a business, but not a profession. Compensation attributable to a negative/restrictive covenant is a capital receipt and as the same does not fall within the ambit of section 28(va), it is not taxable

Co. engaged in clinical research isn't comparable with a software development service provider

IT/ILT : In case of assessee-company engaged in rendering software development services to its AE, companies having functional dissimilarities or having related party transactions in excess of 15 per cent of revenue, could not be accepted as comparables while determining ALP

Due date for filing of Form DP-1 under DVAT further extended to Dec 31, 2015

VAT : Online Submission of Information in Form DP-1 – Extension of Date Thereof

Supply of ID smart cards to transport dept. couldn't be treated as sale; not liable to Karnataka VAT

CST & VAT: Karnataka VAT - Where assessee in terms of an agreement entered with a transport department prepared ID smart cards as desired by it and supplied them to it after lamination, since smart cards were not commodities saleable in open market, supply of smart cards to transport department could not be held as sale

HC sets aside block assessment as seized material was destroyed in fire that took place at revenue's

IT: HC sets aside block assessment as seized material was destroyed in fire that took place at revenue's office

Battery and its parts to be deemed as parts of motor vehicle for levying Rajasthan VAT: HC

CST & VAT : Rajasthan VAT- Battery and its parts which were primarily used for installation/fitting in a motor-vehicle would be deemed as parts of motor vehicle for levying VAT

Tribunal doesn't have powers to stay prosecution proceedings

IT : Section 254 does not confer power upon Tribunal to stay consideration of a notice calling upon assessee to show cause why prosecution be not launched against it under section 276C

Forex gain or loss not excludible from operating revenue while computing operating margin for TP stu

IT/ILT : A software product company cannot be compared to software development service provider

Madras HC dismissed appeal without going into its merits due to low tax-effect

IT: Where tax effect in appeal filed by revenue before High Court was less than Rs. 4 lakhs and revenue's case did not fall within exceptions specified inInstruction No. 1979, dated 27-3-2000, impugned appeal was not maintainable

Time-limit to file refund claim to be counted from date of realization of export proceeds and not fr

Cenvat Credit: In case of service exporter, time-limit of 1 year for filing refund claim of cenvat credit will be computed from date of realization of export proceeds

Rupee Recovers From Two-Month Low, Rises 13 Paises Against Us Dollar

The rupee recovered from over two-month low by rising 13 paise to 66.34 against the dollar in early trade today at the Interbank Foreign Exchange on fresh selling of the US currency by exporters and banks.

Forex dealers said besides selling of the American unit by exporters and banks, weakness in the dollar against some currencies overseas also supported the rupee.

They said, however, a lower opening in the domestic equity market capped the rupee’s gain.

Yesterday, the rupee had lost 28 paise to close at more than 2-month low of 66.47 against the US dollar on fresh month-end demand for the American currency from importers and
banks amidst volatile equity markets.

Meanwhile, the benchmark BSE Sensex fell by 115.48 points or 0.44 per cent to 25,703.86 in early trade.

Source:- newsworldindia.in

Holding period of capital asset shall not include period for which it was held as stock in trade

IT : Where stock in trade is converted into capital asset, the holding period for the purposes of classifying it as long-term or short-term capital asset shall be reckoned excluding the period for which it was held as stock-in-trade prior to conversion

Assessee eligible to get refund of advance FBT when it got status of trust with retro-effect

IT: Where assessee, for assessment year 2006-07, paid fringe benefit tax in advance and subsequently it was granted registration under section 12AA with retrospective effect from 1-4-2005 and thereupon it moved an application on 31-8-2007 for refund of aforesaid amount of fringe benefit tax, Assessing Officer was to be directed to process application of assessee in accordance with law

Govt. reviews FDI policy on various sectors; defines term 'manufacture'

FDI/FEMA/ILT : Review Of Foreign Direct Investment (FDI) Policy On Various Sectors – Amendments In Consolidated FDI Policy Circular Of 2015 Effective From 12-5-2015

Directorate of income-tax, HRD seeks info of domestic consultants engaged by Ministries for more tha

IT : Information Of Domestic Consultants Engaged By Ministries/Departments For More Than Six Months

IRDA asks insurers to disclose investment return details in advertisements of life insurance product

INSURANCE : Benefit Illustration(S) in Advertisements of Life Insurance Products

Mumbai ITAT denies to treat news distributor of 'Reuters' as its PE in India

IT/ILT : Where assessee, a UK based company, engaged in business of providing news and financial information world-wide, entered into distribution agreement with RIPL in India, since RIPL was not habitually exercising its authority to negotiate and to conclude contracts on behalf of assessee, it could be concluded that assessee did not have PE in India and, consequently, distribution fee received by it could not be brought to tax in India

Arrangement fees paid to foreign banks to finance international acquisition is liable to service-tax

Service Tax : Arrangement/Agency fees paid to foreign banks/Mandated Lead Managers for providing finance (and/or coordinating in providing finance) for international acquisitions is liable to service tax under reverse charge in hands of Indian borrower under 'Banking and Other Financial Services'

Disclosure obligation in takeover code is on promoter’s group and not on every promoter in that grou

SEBI : The obligation to make yearly disclosure under regulation 8(2) and regulation 30(2) of the Takeover Regulations framed by SEBI in the year 1997 & 2011 respectively is on the promoter/ promoter group. If the promoters of a listed company are individual promoters then the obligation is on the individual promoters and in case there is a 'promoter group' then the promoter group is required to make yearly disclosure.

Advertising agency is liable to pay service tax on commission received on newspapers

Service Tax : Even if sale of advertisement space in print media is not liable to service tax, commission received by advertising agency from newspapers is liable to service tax under advertising agency's services

Virginia Firm Signs Deal For Export Of Apples To India

With Virginia looking to boost its trade with India, a firm from the US state has signed a deal for the export of apples to the country.

"I am pleased to announce this new sale of Crown's 2015 apple crop into the highly competitive Indian produce market," Virginia Governor Terry McAuliffe said in a statement.

"After opening the Indian apple market for Virginia producers last year, it was important that we continue that momentum and push hard to expand those sales," he said adding that export deals like this one will play a vital role in generating additional revenue and jobs for the State.

A MoU on the export of apples was signed between officials of Crown Orchard Company and IG International in Mumbai in the presence of McAuliffe.

"We have focused on India as an important strategic market for Virginia agricultural and forestry products since launching the export growth initiative in 2011," said Todd Haymore, Secretary of Agriculture and Forestry.

"Virginia has emerged as the second largest apple exporting state to India, and we are working continuously to drive more sales and make new introductions between our producers and Indian apple importers," he said.

In 2014, Virginia exported about apples worth $1.6 million to India, up from zero in late 2011, when Virginia opened its representative trade office.

As of September of this year, Virginia has exported apples worth $1.2 million in to India.

Exports to India in 2014 represented more than half of the state's total apple exports worldwide, while the year-to-date sales as of September to India account for more than 60 per cent of this year's total apple exports.

"Virginia apples are already earning a solid reputation amongst Indian produce buyers for their high quality, sweet flavour and overall value," said Tarun Arora, CEO of IG International.

"Apples are in high demand in India, and I am pleased to have found a great new source for quality apples in Virginia and the Crown Orchard Company," he said.

Source:- economictimes.indiatimes.com

Imports To Push The Price Of Rubber Further Down

The gap between production and consumption of natural rubber in the country is likely to touch 5 lakh tonnes this fiscal given the pace at which the production has been dropping with plummeting prices.

The current level of prices at Rs 108.50 a kg is at a seven-year low and is expected to push down the production of the commodity further. Already, the production is down by 15% over last year. The total natural rubber production had dropped 15% to 6.55 lakh tonnes in 2014-15.

The various stakeholders in the rubber sector predict the production to reach around 5.50 lakh tonnes this year, with some forecasting further drop. At the same time, the consumption is expected to go over 1 million tonnes.

"Our production is now grossly insufficient to meet the consumption and irrespective of whether prices are low or high, we will have to import. The centre should come out with measures to protect the interest of consumers to the extent of rubber imported to bridge the gap," said Rajiv Budhraja, director general of Automotive Tyre Manufacturers' Association (Atma).

The natural rubber imports reached an all-time-high of 414,606 tonnes last year. With the increase of the import duty by 5% to 25%, there has been a fall in imports till October this year by 11%. But considering that the international prices of rubber are Rs 27 to Rs 30 below the Indian price, the imports are set to rise in the coming months.

"Those who are tapping rubber now are getting a poor yield as there has been no proper maintenance of the rubber trees with price fall. Gradually, from selfsufficiency we are turning into a rubber import dependent country," pointed out a major rubber dealer Biju John.

The market intervention measures by the government to provide succour to the growers through a subsidy have not yielded much dividends. As Kerala accounts for about 90% of the rubber grown in the country, the state government is implementing a Rs 300-crore package to small growers so as to pay them a fixed price of Rs 150 per kg with the difference between the current price and fixed price as subsidy.

Source:- economictimes.indiatimes.com

Mizoram Bans Sale & Import Of Particular Turmeric Powder

Mizoram Health and Family Welfare department has banned the sale and import of reddish turmeric powder from neighbouring Myanmar after the State Public Health Laboratory found the powder "unsafe".

State Commissioner of Food Safety Dr K.

Ropari recently issued a notification banning the turmeric powder, locally called 'Aisen'.

  The notification said the 'Aisen' sample was sent to the State Public Health Laboratory in Guwahati where it was found that the turmeric powder is unsafe.

  The colour used in manufacture of the 'Aisen' was in violation of the Food Safety and Standards Act, 2006 and Rules and Regulations, 2011, the notification said, adding that it was found to be sub-standard.

  While turmeric powder is generally called 'Aieng' in the local dialect, this particular product is called 'Aisen' due to reddish hues and widely used in hotels, restaurants and also at homes.

  It is also used for making pickles.

Source:- niticentral.com

A software developer can't be compared with a software development service

IT/ILT: Where companies having revenues from software sales or software products development or being engaged in research or providing KPO services or product designing/engineering services, could not be compared to assessee providing software development services; further company in which extraordinary events took place could not be comparable

TDI Fun Republic Mall isn't dominant player in West Delhi: CCI

Competition Act : Where appellant, welfare association, representing shop owners of TDI Fun Republic Mall, failed to produce any document or other evidence to show that OP i.e., TDI Fun Republic Mall was only mall in West Delhi, OP was not dominant in relevant market and, therefore, no competition law issue arose for consideration

Purchaser need not reverse tax credit when seller didn't issue credit note for post sales discount

CST & VAT : Delhi VAT - Where selling dealer provided post sell discount and deposited entire VAT collected from purchasing dealer to department, Tribunal was not right in holding that appellant dealers were required to reverse input tax credits claimed on purchases made by them

Extend Export Benefits To Cotton Yarn: Texprocil

The Cotton Textiles Export Promotion Council has urged the Government to extend the three per cent interest subvention benefit to cotton yarn exports, considering the difficult phase the industry is passing through currently.

The much-awaited interest rate subvention scheme on pre- and post-shipment was recently approved by the Cabinet Committee on Economic Affairs. Dubbed as Interest Equalisation Scheme, it will be effective from April 1 for a period of five years. The scheme will be evaluated after three years. The benefits under the scheme were denied for cotton yarn and merchant exporters.

RK Dalmia, Chairman, the Cotton Textiles Export Promotion Council, said the Interest Equalisation Scheme would provide the much needed boost to exports of cotton textiles as all categories of fabrics and made ups have been covered.

Interest rates on export finance are high in India as compared to competing countries such as Bangladesh, Pakistan, Sri Lanka and Vietnam, he said and added that exporters were keenly looking forward towards the announcement of this scheme as they are facing depressed market condition and declining exports.

Lower interest rate would bring down the overall cost for manufacturers and help them to be competitive in the global markets.

The benefits, Dalmia said, should be extended to cotton yarn exporters especially when they are facing intense competition from neighbouring countries amidst sharp fall in demand, especially in China.

“In the present business scenario, the differentiation between manufacturers and merchant exporters is diminishing and there is no reason as to why merchant exporters should be denied the benefit of concession in lending rate on export finance as long as they contribute towards exports,

 

 

Source :thehindubusinessline.com

Co. rendering ITES isn't comparable with software development service provider for TP analysis

IT/ILT : While determining ALP foreign exchange gains/loss arising from transactions of revenue nature was to be considered as part of operating profit/cost of assessee as well as that of comparables

Mere filing of appeal against order of AO couldn’t suo-motu stay recovery proceedings

IT: Power of Assessing Officer under section 220(6) cannot be said to be power to grant stay against recovery of disputed demand and or mere filing of appeal does not suo-moto stay recovery proceedings

Personal loan given by a co. to its shareholder holding substantial interest in it would be taxable

IT : Where assessee, holding 60 per cent shares of a company, took personal loan from accumulated surplus of said company, said amount would be treated as deemed dividend under section 2(22)(e), after reducing therefrom amount repaid by assessee during year

No need to affix MRP on goods declared to be 'not for retail sale'; excise duty payable on transacti

Excise & Customs : Where assessee had declared on goods that they were not meant for retail sale and revenue could not produce any evidence to contrary, there was no requirement to affix MRP thereon and goods were to be valued based on transaction value under section 4

Sales tax subsidy received under West Bengal Incentive Scheme, 1999 was a capital receipt

IT : In case of industrial unit of assessee, covered under West Bengal Incentive Scheme, 1999, sales tax subsidy received from Government was capital receipt and, thus, not liable to tax

Second proviso to sec. 40(a)(ia) is applicable prospectively with effect from 1-4-2013

IT : Benefit of exclusion from purview of section 194A is restricted only to those individuals and Hindu Undivided families, whose total sales, gross receipts or turnover from business or profession do not exceed monetary limit specified under section 44AB(a) or (b)

Assessee wasn't guilty when dept. never asked for correct details even after levelling suppression c

Service Tax : Where, despite alleging suppression, department never asked for correct details, assessee cannot be held guilty of suppressing details and therefore, extended period cannot be invoked

CAT unhappy with CCI for mechanically approving DG's finding that conduct of film association was an

Competition Act: Where Commission had without independently analysing facts and evidence collected by Jt. DG during course of investigation abdicated its duty and mechanically approved findings recorded by Jt. DG that conduct of appellant film association in limiting and controlling exhibition of film rights was anti-competitive, findings recorded by Jt. DG were perverse and had to be set aside

Penalty order passed under DVAT without giving hearing chance to assessee was liable to be set-aside

CST & VAT: Delhi VAT - Where penalty order under section 86(10) was passed by Assessing Authority without service of prior notice on assessee and without affording it an opportunity of being heard, said order was liable to be set aside

Forex loss on advances to be calculated on closing of FY and not in later years when transaction got

IT : Where assessee received certain amount under pre-shipment packing credit facility while diverted certain amount as 'advances' towards its sister concern, in absence of any evidence to show that advance was made out of borrowed fund, no disallowance under section 36(1)(iii) of interest paid by assessee on amount received, was called for

No reassessment beyond 4 years to tax deemed dividend if material facts of such income were disclose

IT : Where all material facts with respect to deemed dividend income necessary for assessment are furnished by assessee, initiation of reassessment proceedings beyond a period of four years is not permissible

Govt. constitutes two regional benches of CESTAT at Chandigarh and Hyderabad

EXCISE : Constitution of Cestat Bench at Chandigarh

Assessee wasn't guilty when dept. never asked it for correct details even after levelling suppressio

Service Tax : Where, despite alleging suppression, department never asked for correct details, assessee cannot be held guilty of suppressing details and therefore, extended period cannot be invoked

Internal TNMM couldn't be rejected just because value of transaction with non-AE was insignificant

IT/ILT : Where assessee had undertaken transactions with both AEs and non-AEs, and it had not only maintained segmental details of such transactions, but had also undertaken comparative analysis in its TP study, internal TNMM had to be adopted as most appropriat method for determining ALP

Govt. authorizes 4,412 PNB branches to receive subscription under PPF and Senior Citizen Saving Sche

IT : Public Provident Fund Scheme, 1968 and Senior Citizens Savings Scheme Rules, 2004 – Notified Branches of Punjab National Bank to Receive, with Immediate Effect, Subscriptions under Said Schemes

Govt. notifies rules for recruitment in departmental canteens

IT/INDIAN ACTS & RULES : Income-Tax Department, Non-Statutory Departmental Canteens (Group 'C' Posts) Recruitment Rules, 2015

No extended period due to issuance of subsequent notices if dept. was aware of all facts while issui

Excise & Customs : When department was aware of all facts while issuing initial three notices and said three notices had been dropped on merits subsequently, fourth notice cannot invoke extended period to raise demand

Govt. constitutes two new regional benches of CESTAT at Chandigarh and Hyderabad

EXCISE : Constitution of Cestat Bench at Chandigarh

Rajeev Kher appointed as member of Competition Appellate Tribunal

COMPETITION ACT : Section 53C, Read With Section 53F of the Competition Act, 2002 – Appellate Tribunal – Composition of - Notified Member

No additions on nursing home alleging non-disclosure of receipt from patients without support of sei

IT : Where pursuant to search proceedings, Assessing Officer made addition to assessee's income on ground that in nursing home run by assessee, treatment was given to various patients and amount received form them was not reflected in books of account, since said conclusion was not supported by seized material, impugned addition was to be set aside

TPO couldn't make addition by considering current year data if revenue had used multiple years data

IT/ILT : TPO could not make addition to assessee's ALP for rendering content related services to its AE by using only current year data at time of selection of comparables when revenue itself had adopted multiple years data in preceding years and there was no change in circumstances during assessment year in question

Income from offshore services isn't taxable if it is provided outside India without any connection w

IT/ILT : Where Japanese company executed Engineering, Procurement, Construction and Commissioning contracts in India through Indian project office, income from offshore services, though chargeable under section 9(1)(vii) was exempt under DTAA and, hence, could not be charged to tax in light of section 90(2)

Amendment in SSI notification covering arms and ammunition parts isn't retrospective

Excise & Customs : Where, after several representations, Government amended SSI-extending exemption to 'parts of Chapter 93' only from 1-10-2001, said amendment could not be regarded as retrospective

Income of business run by assessee as Karta of HUF after his father's demise can't be taxed in his i

IT : Where father of assessee got registered HUF, doing lottery business two months before his death and thereafter, assessee carried on said lottery business as karta of HUF, undisclosed income related to said business declared on search was to be assessed in hands of HUF and not in hands of assessee in his individual capacity

Environmental impact assessment related consulting didn't cover under consulting engineer's service

Service Tax: Environmental studies being: (a) Environmental Biotechnology, (b) Environmental Impact Assessment, (c) Environmental Monitoring, (d) Environmental Policy Analysis and (e) Hazardous Waste Management, being in nature of scientific consultancy, are outside scope of consulting engineer

Vehicle comprising of auto track and semi-trailer is classifiable as tractor and not as light motor

Excise & Customs: In view of Chapter Note 2 to Chapter 87 of Tariff, vehicle comprising 'Auto Track/Hauling Unit and Semi-trailer' is classifiable as 'tractor' under Heading 8701, not as 'Light Motor Vehicle' under Heading 8704

SC stayed IT proceedings as Kerala Govt. didn't take steps to amend provisions related to Court fees

IT : As section 52A of Kerala Court fees, Act specified court fee in appeal before High Court at 1% of income assessed by Assessing Officer, but in many cases such assessed income might not at all survive, State Government had to make required amendment; High Court opined that instant matter was to be stayed till information about steps taken by State Government was provided

IRDA asks intermediaries to file undertaking on compliance of 'Indian owned and controlled' requirem

INSURANCE : Guidelines on “Indian owned and controlled” for insurance intermediaries

No rectification if error relating to denial of credit on export services couldn't be discovered wit

Excise & Customs : An error, which has to be established by a long drawn process of reasoning on points where there may conceivably be two opinions does not amount to 'error apparent on face of record' and is not a rectifiable mistake

Delhi Govt. mandates full reduction of tax-credit on stock transfer of Cigarettes outside Delhi

VAT/DELHI/NOTIFICATION/INDIAN ACTS & RULES : Delhi Value Added Tax (Amendment) Rules, 2015 – Amendment in rule 7 and DVAT form 16

Independent directors can exercise ESOPs if granted prior to commencement of new ESOP norms

SEBI : Frequently Asked Questions on SEBI (Share Based Employee Benefits) Regulations, 2014

AO couldn't tax interest on accrual basis if recovery of principal amount of loan is doubtful

IT : Where assessee was in fact not receiving any interest on loan advanced and it had to write off said loan finally in subsequent year, no addition could be made on account of accrued interest just because assessee was following mercantile system of accounting

Now Commissioner can admit DVAT refund application from embassies upto 1 year of end of relevant qua

VAT/DELHI/NOTIFICATION/INDIAN ACTS & RULES : Delhi Value Added Tax (Amendment) Rules, 2015 – Amendment in rule 35

Winding-up petition admitted as co. never raised any defence until statutory notice was served by su

CL: Where respondent-company had admitted its liability to pay amount due to petitioner against supply of books and they had no defence for amount admitted and claim was not disputed contemporaneously but was disputed only when demand for payment came to be raised through statutory notice, winding up petition against respondent was to be admitted

Indirect Tax Ombudsmen to hold meetings with trade and industry associations to hear problems of tax

SERVICE TAX/CIRCULAR : Chairman, CBEC holds a meeting to strengthen institution of Indirect Tax Ombudsmen (ITOM)

Rebate on exported goods under Excise Rule 18 is available for inputs as well as finished goods: (SC

Excise & Customs : Word 'or' in rule 18 of the Central Excise Rules, 2002, to be interpreted as 'and' and therefore, the exporters are entitled to both rebates under rule 18 (viz. input-stage rebate as well as output stage rebate on finished goods) and not one kind of rebate

Delhi Govt. hikes sales tax on Aviation Turbine Fuel to 25%

VAT/DELHI/NOTIFICATION/INDIAN ACTS & RULES : Delhi Value Added Tax Act, 2004 – Amendment in Third & Fourth Schedule

High Court upset with errant behaviour of AO in imposing tax on two assessees for same income

IT: Where assessee had given a building on rent to Government and Assessing Officer fixed rent of building at a higher amount than disclosed by assessee and record showed that penalty proceedings under section 271(1)(c) were initiated against assessee and on verification of matter they were dropped, once penalty proceedings were dropped, rent for building must be taken as disclosed by assessee

Sec. 54(4) contemplates investment in house before due date of filing of belated return

IT : When sale consideration/capital gains has been utilized for purchase or construction of new asset before due date for furnishing return of income under section 139(4), assessee is entitled to claim deduction in respect of amount so utilized under section 54F

Kelkar Committee presents its report to FM on PPP Model of infrastructure development

IT : Report of Kelkar Committee on revisiting and revitalizing PPP Model of infrastructure development submitted to Finance Minister

Profitability in transaction doesn't indicate that it is at Arm's length price

The answer to the issue whether a transaction is at an arm's length price or not is not dependent on whether the transaction results in an increase in the assessee's profit

Share transactions carried out with six brokers out of borrowed fund held as business transactions

IT: Where assessee borrowed funds for purchase of shares, transactions was carried out with many brokers and transactions had resulted in crores of rupee, income earned on such transactions was to be assessed as 'business income'

Reasons for making reassessment must be given at the time of assessment and not during appellate pro

IT : Where reasons recorded for reassessment were not supplied to assessee at time of assessment but during appellate proceedings, there was violation of principle of natural justice

Govt. plans to phase-out corporate tax exemptions and deductions

IT/ILT : Finance Minister's Budget Announcement – Phasing out plan of deductions under Income-tax Act

Rbi Sets Rupee Reference Rate At 66.09 Against Dollar

MUMBAI: The Reserve Bank of India on friday fixed the reference rate of the rupee at 66.0940 against the US dollar and 70.8594 for the euro.

These rates were fixed at 66.1105 and 70.7779 respectively on Thursday.

According to an RBI statement, the exchange rates for the pound and the yen against the rupee were quoted at 101.0379 and 53.82 per 100 yens, respectively, based on reference rates for the dollar and cross-currency quotes at noon.

 

 

 

 

 

 

 

 

Source : timesofindia.indiatimes.com

New grounds may be raised before Apex Court on issues involving wide ramifications

Excise & Customs : Where issue involved is an important question having reasonably wide ramifications, appellant may be allowed to raise new grounds for first time before Supreme Court

‘Two Weeks On, Govt. Gets Just 400 Gm Yellow Metal

 Gold Monetisation Scheme, launched by Prime Minister Narendra Modi earlier this month, has so far attracted 400 grams of gold, industry body GJEPC on Thursday said. According to official estimates, around 20,000 tonnes of gold worth over Rs.52 lakh crore is lying idle with households and temples in the country.

Gem and Jewellery Export Promotion Council’s (GJEPC) northern region Chairman Anil Sankhwal said, “Under gold monetisation scheme 400 grams have been deposited so far.”

Industry representatives on Thursday met Economic Affairs Secretary Shaktikanta Das and discussed ways for opening more centres for gold testing.

“If the 13,000 BIS-certified jewellers are allowed to act as collection agents, then I am hopeful that the scheme will take off in a good way,” Mr. Sankhwal said.

Apart from gems and jewellery industry, the meeting was also attended by representatives from the Reserve Bank of India, Bureau of Indian Standards (BIS), MMTC and private banks.

Vice-Chairman, Export Promotion Council for EOUs and SEZs and CEO, P. P. Jewellers, Rahul Gupta, said: “We requested Finance Ministry to allow jewellers registered with BIS to act as collection point for gold.”

At present, there are 3.5 lakh jewellers in the country, of which 13,000 are BIS-certified. Now the Finance Ministry in principle have agreed to make them eligible as testing centres.

According to a ministry official, 55 gold purity testing centres would come up by December, up from 29, at present. Also number of gold refinery would go up to 20, up from four at present. Mr. Sankhwal said Economic Affairs Secretary had asked BIS to fasten the process of registration of jewellers as collection agents and give out the licences within 15 days.

Under Gold Monetisation Scheme, launched on November 5, banks were authorised to collect gold for up to 15 years to auction them off or lend to jewellers from time to time. Depositors will earn up to 2.50 per cent interest per annum, a rate lower than bank deposits. As far as the scheme is concerned, earnings are exempt from capital gains tax, wealth tax and income tax.

There will be no capital gains tax on the appreciation in the value of gold deposited or on the interest made from it.

The designated banks will accept gold deposits under the short-term (1-3 years) bank deposit as well as medium (5-7 years) and long-term (12-15 years) government deposit schemes. The designated banks may sell or lend the gold accepted under the short-term bank deposit to MMTC for minting India Gold Coins and to jewellers, or sell it to other designated banks participating in the scheme.

To meet the growing domestic demand, India imports about 800-1,000 tonnes of gold annually.

Source : .thehindu.com

 

RBI clarifies on applicability of consolidated capital adequacy norms to Non-operative Financial hol

BANKING : Non-Operative Financial Holding Company (NOFHC) – Application Of Capital Adequacy Norms

IRDA notifies norms on 'other forms of Capital'

INSURANCE/INDIAN ACTS & RULES : IRDAI (Other Forms Of Capital) Regulations, 2015

Big Deal For Cotton, Textile Industry

The Council for Scientific and Industrial Research (CSIR) has introduced new pest-resistant cotton varieties within the savannah ecological zones to improve production of the cash crop to feed the textile industry.

The new pest-resistant cotton varieties Round Up Flex (RRF) is a trait tolerant to glyphosate and the Roundup Ready Flex/Bollgard 2 herbicides  are also tolerant to glyphosate in addition to offering insect protection, and are those currently being tried for the farmers.

The Bacillus Thuringiensis (BT) cotton, which is able to withstand insect protection trials in the three northern regions, is aimed at revamping the cotton industry to feed the textile industries and enhance the economy.

The new varieties, which were introduced in partnership with Savannah Agricultural Research Institute (SARI), are expected to produce high-quality cotton so as to revamp the cotton industry which employs a lot of people in the northern sector.

Some farmers who spoke to the B&FT said the new varieties will help them produce cotton to boost the countrya??s textile industry, and also generate revenue for government through exports.

The farmers are eager to access the seeds for cultivation after being sensitised and taken through field demonstrations on the best agricultural practices, and urged SARI to make the seeds accessible and affordable for them.

They therefore called on the National Bio-Safety Authority to hasten its investigations to approve release of the new varieties to help farmers access them for the next season.

The farmers spoke to B&FT at an open field-day for farmers and stakeholders, held at Nyankpala in the Northern Region by the CSIR-SARI in collaboration with Monsanto of Burkina Faso.

The event was aimed at observing and evaluating the performance of Roundup Ready herbicides on cotton varieties under the Ghana Cotton Growing Environment.

It was also to determine the effectiveness of the two glyphosate formulations on weeds when applied on the two genetically modified (GM) cotton varieties tolerant to glyphosate and protection.

Dr. Emmanuel Chamba, Principal Investigator CSIR-SARI, said farmers who adapt to the new technology will increase their yields.

He noted that the institute is embarking on the new varietiesa?? trials in the three northern regions of the country to ascertain the producta??s quality.

According to him, samples have been sent to the Public Procurement Regulatory Authority (PPRA) and the National Bio-Safety Authority (NBA) for approval, and when done will be commercialised to farmers.

He said the trials are being undertaken to ensure that all the safety precautions are observed to avoid any negative impact on the environment.

According to Dr. Chamba, while trying the BT cotton seeds. ?We sprayed the BT cotton two times only as compared to the six times we did for the non-BT (conventional) cotton.

So with the BT, it was proven how farmers can cut down their spraying cost; how they will also reduce the impact of the chemicals on their environment; and again how farmers will be able to save time.

He said the CSIR-SARI is committed to undertaking relevant research activities based on an approved and appropriate national regulatory framework.

The process, he said, aims at developing technologies and innovations that are to enhance and sustain agricultural productivity in the savannah ecological zone.

Dr. Mashad Abdulai, Chairman Institutional Bio-Safety Committee (IBC), said most farmers after cultivation leave their cotton-crops to the mercy of the unwanted weeds and concentrate on the other crops, which results in bad yields.

With this technology, he said, no manual weeding is needed; only spray twice and kill the weeds, leaving the crop alone.

Source: Cotton market news
 

No denial of sec. 10B benefit if only a part of manufacturing is outsourced which was under direct c

IT: Where only a part of manufacturing activities was got done by assessee from outside agency and that too under direct control and supervision of managerial and technical staff available with assessee, assessee was entitled to exemption under section 10B

India's Mines Ministry Propose Scrapping Export Tax On Iron Pellets

NEW DELHI: India's mines ministry has written to the finance ministry to propose scrapping a 5 percent export duty on iron ore pellets, Mines Secretary Balvinder Kumar told Reuters, adding the government could also look at abolishing duty on low-grade iron ore.

He said miners in Goa have written to him seeking the cancellation of the 10 percent duty on overseas shipments of iron ore from the state. Goa is known for low-grade ore used mainly by Chinese steel mills.

India was also looking at a request to raise the import duty on aluminium to 7.5 percent from 5 percent to protect local companies from rising supplies from countries like China.

 

 

 

 

 

 

 

 

Source :economictimes.indiatimes.com

Us Opposes India's Latest Round Of Incentives To Boost Textile Exports

NEW DELHI: The United States has opposed India's latest round of incentives to provide a fillip to exports, alleging violation of a global trade rule for export competitiveness in textiles.

Commerce department officials said the US raised this issue more than a week ago, after India increased support for exports of several products including textiles while expanding the scope of the Merchandise Exports from India Scheme (MEIS) on October 30.

The government included exports of cotton fabrics, both woven and knitted, and made-ups to leading markets including African countries under the MEIS. Under the World Trade Organisation's agreement on subsidies and countervailing measures, when the export share of a developing country with per capita income below $1,000 a year touches 3.25% in any product category for two consecutive calendar years it is deemed to have gained "export competitiveness".
 

 

 

 

 

 

 

 

 

Source :economictimes.indiatimes

HC nods to Amalgamation Scheme framed for tax planning as it didn't affect public interest

CL: Where main purpose of proposed scheme of amalgamation between trnsferee company and transferor companies was to streamline affairs of companies,tax planning and scheme did not in any manner affect interest of any of stake holders, including public,proposed scheme of amalgamation was to be sanctioned.

Gold Bar recovered from gold mud held as primary gold; exempt from excise duty

Excise & Customs : 'Gold bar' recovered from 'gold mud' is a 'primary gold' derived from 'mud form of gold'; hence, same is exempt from duty and exemption cannot be denied merely because 'gold mud' was, in turn, recovered from 'anode slime'

RBI allows Regional Rural Banks to provide internet banking facility for non-transactional services

BANKING : Internet Banking Facility For Customers Of Regional Rural Banks

Now banks offering factoring services can decide pre-payment amount on basis of their own assessment

BANKING : Review Of Provision Of Factoring Services By Banks

Mere non-intimation of amendments to trust deed couldn’t lead to cancellation of its registration

IT : Mere non-intimation of amendments in trust deed to department cannot ipso facto lead to cancellation of registration under section 12AA(3)

Floor covering of jute with plastic coating is classifiable as textile product not as plastic produc

Excise & Customs : Plastic laminated jute fabrics, meant for floor coverings, are dominantly jute products; hence, they are classifiable as 'floor covering made of jute with plastic coating' under Heading 5904 and not as 'plastic product' under Chapter 39

Major shareholders of Pvt. Banks to seek prior approval of RBI for acquiring shares or voting rights

BANKING : Prior Approval For Acquisition Of Shares Or Voting Rights In Private Sector Banks : Directions, 2015

Business losses can’t be set off against betting income

IT: Where assessee suffered loss in business, said loss could not be set off against betting income and total betting income was liable to be taxed under section 115BB

HC denies to restraint rights issue as promoter didn't plead during discussions before SEBI

SEBI : Where plaintiff was aware from September 2013 about its non-inclusion as part of promoter and promoter-company of defendant No. 1 in shareholding pattern filed by defendant No. 1 with stock exchange, but it did not approach SEBI when there was discussion about Letter of Offer or issue of right shares by defendant-company suit filed by plaintiff to pass a decree declaring Letter of Offer issued by defendant as unlawful, null and void ab-initio for depriving plaintiff of its special right

Interim increase in controlled price of sugar by HC to be considered for levying excise duty

Excise & Customs : Where, vide interim orders of High Court, 'controlled prices' of sugar were enhanced and assessees were allowed to sell sugar at 'higher prices', excise duty was also payable based on 'higher prices'

ALP of royalty couldn’t be determined at Nil if royalty payments were periodically approved by RBI

IT/ILT : Where assessee, engaged in business of manufacturing pre-engineered building system products, made certain royalty payments to its AE, since said payments were periodically approved by RBI, TPO was not justified in determining ALP of same at nil

Highest MRP to be taken to determine excise duty when different MRPs of various areas are affixed on

Excise & Customs : In case three different MRPs are affixed on 'same package' even though for 'different areas', goods will be assessed to duty as per Explanation 2(a) to section 4A taking highest MRP as the basis.

Government Launches Fund For Msmes To Acquire Clean Manufacturing Technology

NEW DELHI: Commerce ministry has launched the Technology Acquisition and Development Fund ( TADF) under National Manufacturing Policy being implemented by Department of Industrial Policy & Promotion( DIPP).

The fund will help the Micro, Small & Medium Enterprises (MSMEs) acquire clean and green technology at affordable cost across sector. Launching the fund commerce and industry minister Nirmala Sitharaman said that the fund will facilitate MSMEs in acquiring clean, green and energy efficient technology in form of customised products, specialised services, patents, industrial design available in the Indian or global markets.

The Scheme is conceptualised to catalyse the manufacturing growth in MSME sector to contribute to Prime Minister Narendra Modi's "Make in India" initiative.

The fund will support, manufacturing of equipment machines, devices for controlling pollution, reducing energy consumption and water conservation via subsidies. The manufacturing units will be provided with a subsidy of up to 10% of capital expenditure incurred on new plant & machinery subject to a maximum of Rs. 50 lakhs.

The scheme will facilitate resource conservation activities in industries located in NIMZ through the introduction of incentive, subsidy schemes for energy, environmental, water audits, construction of green buildings, implementation of waste treatment facilities and implementation of renewable energy projects through financial support.

 

 

 

 

 

 

Source :economictimes.indiatimes.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Booking rights of fictional property not to be deemed as transferable capital assets

IT : Rights in a property couldn't be deemed as transferable capital assets when such property was neither in existence nor its building plan or specifications were approved from the Municipal Corporation and neither any construction activity nor commencement of the project had started

Pre-deposit is mandatory for all appeals filed on or after Aug. 6, 2014: HC

Central Excise: Section 35F, as substituted by the Finance (No. 2) Act, 2014, mandating pre-deposit of 7.5% or 10% as a pre-condition for filing appeal is valid.

Sum paid to IFA to create awareness of 'Vaish Associates' by constructing meeting hall in its name i

IT: Where partnership deed executed provides that each partner shall be entitled to an annual salary equivalent to his percentage share of profits 'multiplied by' 'Allocable Profits', salaries paid to partners was in accordance with section 40(b) not to be disallowed

No capital gains tax on assessee just because property docs not mutated in name of wife pursuant to

IT: No capital gains tax on assessee just because property docs not mutated in name of wife pursuant to family settlement

Gold Recovers On Global Cues, Jewellers' Buying

NEW DELHI: Snapping its two-day losing streak, gold prices recovered from four-month low by gaining Rs 155 to Rs 25,780 per 10 grams at the bullion market today, tracking a firm trend overseas along with fresh buying by jewellers.

Silver also inched up by Rs 100 to Rs 34,200 per kg on scattered enquiries from industrial units and coin makers.

Bullion traders said besides firm global trend where gold rose from a five-year low, emergence of buying by jewellers at prevailing levels to meet wedding season demand supported the upside in the precious metals.

Gold in Singapore, which normally sets price trend on the domestic front, rose by 0.7 per cent to USD 1,078 an ounce and silver by 1.1 per cent to USD 14.33 an ounce, while it ended 0.02 per cent higher at USD 1,070 an ounce in New York yesterday.

In the national capital, gold of 99.9 and 99.5 per cent purity rebounded by Rs 155 each to Rs 25,780 and Rs 25,630 per ten grams, respectively. The precious metal had lost Rs 525 in last two days.

The sovereign, however, remained flat at Rs 22,200 per piece of eight gram in limited deals.

Tracking gold, silver ready edged up by Rs 100 to Rs 34,200 per kg and weekly-based delivery by Rs 95 to Rs 33,760 per kg.

On the other hand, silver coins continued to be traded at last level of Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces in restricted buying activity.

 

 

 

 

Source :economictimes.indiatimes.com

Media should refrain from publishing unauthenticated stories on conciliation in Vodafone case: CBDT

IT/ILT : Clarification on Unautheticated Reports on Conciliation in Vodafone Case

Local Yarn Stores Offer Little Boxes, Black Friday Deals

Have you heard about Little Boxes, Portland's shop-local movement? It's a deeply cool program that targets Black Friday and Shop Local Saturday. This year, five of our local yarn stores – Twisted, Fiber Rhythm Craft & Design, Knit Purl, Yarnia and Northwest Wools – are participating. Check out Anna Marum's story on the program:

Little Boxes returns to Portland for its fifth year

Little Boxes returns to Portland for its fifth year

This year, the annual shop-local program hopes to top last year's sales.

And that's not all that's on tap for Black Friday weekend. Reports from stores are still coming in, but below is what I've rounded up so far. I'll keep tabs on Black Friday yarn store sales and compile them all into a master post as Black Friday draws nearer.

Twisted: The store's Pajama Jammy Jam from 9 a.m.-7 p.m. Friday, Nov. 27. "Escape Black Friday craziness and join us for a cozy day at Twisted!" the store writes. "We'll be open an hour early, and have some great deals for you with 10 percent off storewide (some exclusions apply) and up to 40 percent off select items. PLUS receive a coupon for $20 off a qualifying purchase in January IF you wear your jammies!" Twisted is at 2310 N.E. Broadway in Portland.

Fiber Rhythm Craft & Design: On Black Friday (Nov. 27) only, get 50 percent off all reflective products, including Retroglo reflective yarn. "Other reflective products include Reflective Knit Bicycle Helmet Ear Covers and Reflective Dog Leashes," the store writes. "Mix and Match allowed." On Small Business Saturday (Nov. 28), the store's got a special deal on Plymouth yarn products. "Make an in-store purchase of $50 of Plymouth Yarn products on Saturday November 28th and receive a Plymouth Yarn coupon for $20 off their next $50 purchase of Plymouth Yarn products," the store writes.  "Coupon valid from December 1st thru December 31st, 2015." Fiber Rhythm Craft & Design is at 3701 S.E. Milwaukie Ave. in Portland.

For Yarn's Sake: On Black Friday (Nov. 27): " Join us from Noon to 5 as we knit ornaments for our tree," the store writes. "A virtual fire, hot mulled cider, and holiday treats for all.  Special savings throughout the store!" And there's a tree-trimming event, too! "From now though Christmas Eve, bring us a hand-knit or crocheted ornament for our shop tree, and we'll give you an early Christmas gift. Ho! Ho! Ho!" For Yarn's Sake is at 11767 S.W. Beaverton-Hillsdale Highway in Beaverton.

Know of more yarny Black Friday deals? Email me the details at mmooney@oregonian.com and I'll add them. Look for the master Black Friday post next week.

Source :oregonlive.com

Dealer isn’t liable to pay differential excise duty on fluctuation in rate of petroleum product

Excise & Customs : Assessee, being only a "dealer" and not a "manufacturer" was not liable to pay differential amount of excise duty under section 11D on fluctuation in rate of petroleum products

Textile Industry Welcomes Interest Equalisation Scheme

Indian Texpreneurs Federation today thanked the Centre for announcing Interest Equalisation Scheme and also adding readymade garments, made ups and all types of fabrics in the eligibility list.

The timely support from the government, like MIES amendment last month and increase in duty drawback rates a couple of days ago will help the textile industry regain the export market share and grow further, ITF Secretary Prabhu Damodaran said in a statement here.

The industry was confident of achieving export growth in the coming months and assured the Government about its commitment towards improving the competitiveness of Indian textile industry to make it globally competitive, he said.

"We will try to move up the value chain to make more value added products in textiles to grab bigger global market share and in this process, we will create inclusive growth by providing new job opportunities to rural population", Prabhu said.

 

 

 

 

 

 

 

Source : business-standard.com

Govt. extends time limit for establishing 'Central KYC Records Registry' under PMLA norms

MONEY LAUNDERING/FEMA/ILT/INDIAN ACTS & RULES : Prevention Of Money-Laundering (Maintenance Of Records) Fourth Amendment Rules, 2015 – Amendment In Rule 9A

Gold Futures Gains By 0.3% On Firm Global Cues

Gold prices moved up by 0.33% to Rs 25,177 per 10 grams in futures trade today as speculators enlarged positions, tracking a firm global trend.

At the Multi Commodity Exchange, gold for delivery in December rose by Rs 83, or 0.33%, to Rs 25,177 per 10 grams in a business turnover of 158 lots.

Likewise, the yellow metal for delivery in far-month February next year gained Rs 76, or 0.30%, to Rs 25,331 per 10 grams in 20 lots.

Analysts said speculators enlarged their positions on the back of firm global trend where precious metal rose from a five-year low, mainly influenced gold prices at futures trade.

Globally, gold rose 0.7% to $1,077.65 an ounce in Singapore.

 

 

 

 

 

 

 

Source : business-standard.com

Director's failure to explain source of cash and dubious entries in survey leads to conversion of su

IT: Where during survey conducted under section 133A, department found huge cash and incriminating documents and director of assessee-company failed to provide explanation with regard to cash and dubious entries in seized documents, survey could be converted into search under section 132 after due approval of competent authority

Insurers to ensure preparedness of 'Corporate Agents' to work under new norms for registration of co

INSURANCE : Instructions For Obtaining Certificate Of Registration Under IRDAI (Registration Of Corporate Agents) Regulations, 2015

SetCom can impose penalty on company and its directors for intentional evasion of duty

Excise & Customs: Settlement Commission is entitled to exercise its discretion in imposing penalty on company as well as against its directors on recording elements of mens rea in concealing duty liability

Now NRs or NRIs may acquire units of 'Real Estate Investment Trusts'

FEMA/ILT /INDIAN ACTS & RULES : FEM (Transfer Or Issue Of Security By A Person Resident Outside India) (Eleventh Amendment) Regulations, 2015 – Amendment In Regulations 2, 5, 9 & 12 And Insertion Of Schedule 11

India To Reign As The Top Buffalo Meat Exporter In 2016: Usda Report

 India's current global supremacy in the buffalo meat export is expected to continue in 2016 as the demand improves in southeast Asia, Middle East and North Africa, says the latest report of United States Department of Agriculture (USDA).

The report predicts gains for major countries including India, Brazil and the US. The global production of beef is forecast to rebound 1 per cent higher to 59.2 million tonnes in 2016 as exports by the main traders are expected to rise 3 per cent to 9.9 million tonnes on stronger demand.Unlike other countries, India exports only buffalo meat as slaughter of cows and bullocks are banned in most states.

India's exports in the first six months to September, 2015 has shown a dip. The buffalo meat exports have fallen 10 per cent in value despite 3 per cent increase in quantity than a year earlier at 710,791 tonnes valued at Rs 12,171 crore as per the data of 'Agricultural and Processed Food Products Export Development Authority (Apeda). However, Indian companies are expecting the situation to get better in the coming months.

"We expect increased orders from the buyers. Apart from traditional buyers like Vietnam and Malaysia, other countries like Philippines have also started buying Indian buffalo meat," said Priya Sud, partner of Al-Noor Exports.

The devaluation of Brazilian currency real seems to have hit buffalo meat exports from India. Brazil is currently the principal competitor of India. India has been attracting buyers because of competitive rates for its buffalo meat. In 2014-15, India exported 1,475,526 tonnes va . 29,282 crore.lued at ` The USDA report indicates the India will widen lead over Brazil as top exporter. It points out that con tinuing herd expansion will drive production higher for the main ex porting countries.

 

 

 

 

Source :economictimes.indiatimes.com

Income from share dealings taxable as capital gain if 75% of profit came from shares held for more t

IT : Where assessee earned profits on sale of shares, in view of fact that number of share transactions entered into during relevant year was not high and moreover 75 per cent of profits came up from shares held for more than nine months, amount in question was to be taxed as short-term capital gain

RBI allows FDI in REITs

FEMA/ILT /INDIAN ACTS & RULES : FEM (Permissible Capital Account Transactions) (Fourth Amendment) Regulations, 2015 – Amendment In Regulation 4

Charges paid for installation and commissioning of machine at buyer's site isn't includible in excis

Excise & Customs : Transaction value is determined at time of clearance of goods at factory; hence, installation and commissioning charges for Erection, Commissioning, Installation, etc. of machines at buyer's site cannot be included in value

Assessee can't escape concealment penalty just because wrong claim is based on auditor's report

IT: Auditor's report cannot override provisions of Act and, thus, merely because assessee's false claim for deduction is supported by a Chartered Accountant's opinion, this fact per se cannot absolve assessee from penalty under section 271(1)(c)

Delhi Govt. devised mechanism to prohibit misuse of auto downloading facility for DVAT forms

VAT : Status Of Statutory Forms Downloaded By Dealers

Now Delhi dealers required to submit details of goods sold via each e-commerce website

VAT/INDIAN ACTS & RULES : Delhi Value Added Tax (Amendment) Rules, 2015 – Amendment In Forms Dvat-16, Dvat-30, Dvat-31 And Insertion Of Annexure IE

Cabinet approves protocol amending India-Kuwait DTAA; includes internationally accepted standard for

IT/ILT : Section 90 Of The Income-Tax Act, 1961 – Double Taxation Agreement – Agreement For Avoidance Of Double Taxation And Prevention Of Fiscal Evasion With Foreign Countries – Kuwait – Protocol Amending Said Agreement

Criminal proceedings rightly initiated against assessee as he wilfully evaded payment of tax: HC

IT: High Court upheld criminal proceedings initiated against an assessee under Section 276(c) for non-payment of tax. The Court sets aside the contention of assessee that prosecution proceedings could not be initiated when no notice of demand under section 156 was furnished. The High Court held that separate notice of demand was not required if intimation under section 143(1) regarding tax payable by assessee was furnished.

Rupee Trims Initial Losses, Down 9 Paise Against Dollar

:The rupee opened at 66.12 a dollar and touched a high and a low of 66.09 and 66.20, respectively

The Indian rupee on Wednesday weakened against the US dollar after local equity markets fell over 300 points.

At 2.12pm, the home currency was trading at 66.19, down 0.24% from its previous close of 66.03. The local unit opened at 66.12 a dollar and touched a high and a low of 66.09 and 66.20, respectively.

At 2.20pm, the benchmark Sensex index fell 1.37%, or 355.05 points, to 25,509.42. The Sensex fell in 15 out of 20 sessions. Since 19 October till date, Sensex has fallen 6.4% or 1,750 points.

Investors are awaiting information from global policy makers. The US Federal Reserve releases minutes from its last meeting Wednesday, while the Bank of Japan began a two-day meeting, Bloomberg reported.

The yield on India’s 10-year benchmark bond was trading at 7.687% compared with its Tuesday’s close of 7.67%. Bond yields and prices move in opposite directions.

The employees of the Reserve Bank of India are set to go on a strike on Thursday for the first time in more than six years to protest against the government taking powers from the central bank, threatening to disrupt bond and foreign currency markets, which could affect settlements under the payment platform operated by the central bank, Bloomberg reported, quoting Rajeev Radhakrishnan, Mumbai-based head of fixed income at SBI Funds Management.

Foreign institutional investors (FIIs) sold equities in eight out of 10 sessions. Since 30 October to 16 November, FIIs sold $651.22 million in equities. Since 27 October to 16 November, FIIs sold $494.09 million in debt.

In fiscal year 2016 so far, FIIs have sold $2.05 billion in equity, the steepest selling since fiscal year 2009. In FY16, FIIs were the net sellers in equity in five out of eight months.

Data on Tuesday offered a mixed view of the health of the US economy—consumer prices increased 0.2% in October after two straight months of declines, while industrial production fell. The modest rise in inflation could bolster chances of the US central bank, the Federal Reserve, raising interest rates next month, but weak industrial output raised concerns about the robustness of fourth-quarter economic growth, Reuters reported.

Since the beginning of this year, the rupee has lost 4.8%, while FIIs have bought $3.95 billion from local equity and $8.51 billion from bond markets.

Most Asian currencies were trading lower. Indonesian rupiah was down 0.53%, South Korean won 0.16%, Taiwan dollar 0.1%, China renminbi, while China offshore and Thai baht were down 0.1% each. However, Japanese yen was up 0.11%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 99.498, down 0.13% from its previous close of 99.631.

Source : livemint.com

Split sales couldn’t be treated as slump sales just because unit was transferred as going concern

IT : Where assessee had sold tea estate and assigned values to every movable property transferred to buyer, it could not be said that transfer was slump sales only for the reason that the tea estate was transferred to buyer as a going concern.

Steel Prices To Fall By In Rs 1-1.5K/Tn

Steel pricing will depend upon exchange rate and international demand, says TV Narendran, MD & CEO of Tata Steel. Safeguard duty by the government has helped stabilising demand. He expects steel prices fall by Rs 1,000-1,500 per tonne this quarter. Talking to CNBC-TV18’s Archana Shukla, Narendran says that he is positive on steel demand, but not on prices. He is positive that steel industry will pick-up once India clocks in 7-8 percent gross domestic product (GDP) and government starts investment in infrastructure. Tata Steel has managed to record 20 percent earnings before interest, tax, depreciation and amortization (EBITDA) margin in last two quarters despite imported iron ores. The company is prepared to ride the cycle down by managing cost, Narendran says adding that the company is better places than its competitors. The company has received approvals for iron ore mines in Orissa till 2030 and is currently ironing issues in Jharkhand. The company’s demand is being taken care of currently, he says. On the company’s Kalinagar plant, he says that strong marketing franchise will help production. The plan is to start exports soon after domestic demand becomes visible, he says. Positive Europe EBITDA margins were driven by Netherlands business, he says adding that the Europe market is important for structural growth. The company does not have any plans to sell stake for debt reduction, he says. “We have headroom in debt as we largely used internal accruals for Kalinagar plant,” he adds. The company has managed nearly Rs 6000 crore this year. Tata Steel is looking to sell its long production business as the main focus in UK is on strips, he says. After a failed due diligence with a buyer, the company is looking at options. The company is also focusing on ramping up its B2C business 0- services & solutions segment - in value-added steel portfolio to 30 percent from the current 1-2 percent in five years.

 

 

 

 

 

 

Source : metaljunction.com

Sez Proposals Strike Fear In Villagers

Despite the positive spin by officials, locals facing economic zones in Mae Sot believe their lives will change for the worse
NO HEAVY industry will be promoted in the proposed special economic zones (SEZs) in the border provinces, government officials have emphasised.

However, locals near the proposed economic zone in Tak's Mae Sot district said they feared their livelihoods would soon be changed forever as people in two villages would have to move away from their land.

They were also worried about the future environmental impact of the industrial estates.

Representatives of the Office of the National Economics and Social Development Board (NESDB) and the Industrial Estate Authority of Thailand (IEAT), who are responsible for the creation of 10 border SEZs, addressed villagers' concerns about the possible environmental impact and the problem of land reclamation to the Thai Journalist Association yesterday.

Pojanee Artarotpinyo, NESDB's deputy secretary-general, said 13 industry types were promoted by the government to invest in the new SEZs. All are light industry, and only one of them needs to be processed under the Environmental Impact Assessment (EIA) consideration.

The 13 industries are agricultural product processing, ceramics, textile, furniture, jewellery, medical equipment, automobile parts, electronics, plastics, medicine, logistics, other industrial zones and assistance to the tourism industry.

Together with these industries, it was reported recently that the Board of Investment of Thailand had added another 10 to the list of promoted industries that would receive tax benefits if they invested in the new SEZs.

"I was assured that these 13 promoted industries were light industry, mostly based on labour and environmentally friendly," Pojanee said.

Attapon Jirawatjanya, IEAT specialist, clarified that due to the location of all SEZs in the rural area, close to the border, only specific types of industry were suitable to invest there, such as logistics and commodities industries. The area was not appropriate for heavy and polluted industry such as petrochemicals.

"We have come up with guidelines for the appropriate types of industry in specific SEZs and they will fit with the local environment and resources," Attapon said.

He also revealed that the industries in the area were planned to help local people benefit first from the SEZs. The zone would generate a suitable atmosphere for economic growth and create jobs and opportunities for locals.

However, Chomphunuth Kreau-kamwang, a resident of Mae Sot district, claimed she was among those affected by the SEZs project and was concerned that life would change forever.

"My family and several neighbours will have to move out from our lands as they are to be reclaimed by the state to set up the SEZs. We are farmers who make a living from this land and we have no place to go," Chomphunuth said.

She revealed that people who lived in two villages near the proposed SEZs' area were very ill-informed on the project.

"The prime minister said locals would be the ones to benefit from the project - but I cannot see how industry in the area could be good for the community. Furthermore, I am worried the industries will pollute our environment," she said.

 

Source : nationmultimedia.com

 

Deputation of employees of foreign AE in India isn't manpower supply if their salary is reimbursed b

Service Tax : Where Tribunal had found that employees deputed by foreign group company were actually appointed by assessee in India and only a portion of their salary was paid to employees by foreign group company and reimbursed on actual basis, same would not, prima facie, amount to manpower supply services

Textile Sector Welcomes Revision

The textile sector has welcomed the increase in drawback rates and value caps for several textile products, which will come into effect from November 23. Cotton Textiles and Export Promotion Council Chairman, R. K. Dalmia, has said in a press release that increase in the drawback rates for cotton made ups and garments would encourage export of value added products. However, some high value items such as ‘boiler suits’ and ‘protective wear’ made of cotton and manmade fibre blends have not been covered. According to the Southern India Mills’ Association (SIMA) Deputy Chairman P. Nataraj, increase in the rates for value added products will encourage the sector to focus on value addition. Indian Texpreneurs Federation has said that the importance given to manmade fibre based yarn and fabrics in the drawback revision will give a boost to value addition in man-mande fibre segment.

 

 

 

 

 

 

 

 

 

 

Source :thehindu.com

 

 

 

 

 

Sale of goods from Kerala to SEZ unit isn't deemed as export; liable to sales tax

CST & VAT : Kerala VAT - As per SEZ Act, Sales to SEZ unit is regarded as taxable sales unless any specific exemption in respect thereof is provided under CST Act or under the respective state legislation. In the instant case, it was held by the High Court that sale of sandalwood from Kerala to SEZ unit in Madras does not qualify to be export sales under Kerala VAT as no specific exemption has been provided either under Kerala VAT Act or under CST Act.

Pest Invasion To Push Cotton Production To Five-Year Low

AJKOT: Cotton production in Gujarat, the largest producer of this staple fiber in India, may drop by 30% due to massive invasion of pink bollworm pest and sukaro (para wilt) disease. Farmers and agriculture experts fear the production may fall to a five year low to less than 90 lakh bales - down from 125 lakh bales in 2014-15. Besides farmers, the lower production threatens to hit the textile trade.

The unprecedented magnitude of the dual menace has forced thousands of cotton growers in Saurashtra and north and central Gujarat to destroy their standing crop, rendered useless due to infec tion. The crisis claimed its first victim, a 30-year-old farmer from Supedi village near Rajkot, who committed suicide after pest attack destroyed cotton grown on 85 bigha land.

"Cotton production will be 30% less this year. The area under sowing in 2015-16 was already down at around 27 lakh hectares as against 30 lakh hectares the previous year as farmers switched to other cash crops like groundnut," said N M Sharma, managing director, Gujarat State Co-operative Cotton Federation Ltd (Gujcot). Sharma said that the production may not cross 90 lakh t bales, the lowest in five years.r Bhikhu Vekariya, a farmer in Devrajiya village of Amreli, said, "Due to pink bollworm, I got just around 200 kg per bigha instead of 600 kg per e bigha earlier. None of the pesti cides are effective."

The market prices of cotton have also declined to Rs 32,100 Rs 32,200 per candy (356 s kg) from Rs. 32,800-Rs 32,900 h per candy a month back on global cues. Farmers want the , minimum support price (MSP) e to be hiked from Rs 810 per 20 kg to over Rs 900 per 20 kg. It's a delicate situation for ginners too who are I wary of government hiking MSP . "We won't be able to afford raw cotton if the MSP is hiked above Rs 900 per 20kg.

The yarn market is reeling under slowdown and mills are already facing problems due to subdued textile market," said Dilip Patel, president, All Gujarat Ginners Association. "This pest can be controlled only if it's detec ted early. Once it enters the cotton balls, pesticides are not effective," Dr. K L Raghvani, head of entomology department at Junagadh Agricultural University , said. Raghubha Vaghela, a farmer from Derala village of Maliya-Miyana said, "I lost around 40% cotton in my 40 bigha land due to sukaro and pink bollworm." "Half of the cotton crop in my 86 bigha land is destroyed. I destroyed the infected crop after first round of plucking and sowed wheat and sesame as I have irrigation facility'' says Natubha Parmar, a farmer from Godavari village in Muli taluka of Surendranagar.

Entomologists say sukaro (para wilt) disease occurs due to many reasons, one of the main being lack of nutrients in the land where cotton is sown.

Source :timesofindia.indiatimes.com

Gold Falls To Near 6-Year Low With Fed Still In Focus

Gold prices fell more than 1 percent to the lowest price in nearly six years on Tuesday, pressured by expectations that the United States will raise interest rates in December, and as the dollar rose and stocks rebounded from losses suffered after Friday's attacks in Paris.

The other precious metals followed gold down, with silver dropping for the fourteenth straight session to a 2-1/2-month low and platinum tapping a seven-year low.

Spot gold was down 1.1 percent at $1,070.18 an ounce, after falling to $1,065.18, the lowest since February 2010.

U.S. gold futures for December delivery settled down 1.4 percent at $1,068.60.

 

 

 

 

 

 

 

Source : cnbc.com
 

CCI slapped penalty on Jet Airways, Indigo and Spice Jet for forming cartel to fix fuel surcharge

Competition Act: Where opposite parties i.e. Jet Airways, Indigo and Spice Jet had acted in a concerted manner in fixing and revising fuel surcharge (FSC) rates for transporting cargo, conduct of OPs was anti - competitive and penalty was to be imposed upon them

Stay to be granted when TPO determined ALP of AMP exp. by following ratio of LG’s case instead of So

IT/ILT : Where assessee challenged demand made on account of T.P. adjustment on basis of Tribunal's decision, but High Court had disallowed said decision, assessee had good prima facie case for stay on said demand

MCA releases new Form MGT 7 with more clarifications

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Management And Administration) Third Amendment Rules, 2015 – Substitution Of Form MGT-7

Sum paid to US based co. to review design of cranes could be 'FTS' if major changes were suggested i

IT/ILT: Where assessee-company engaged a company registered in USA, for review of design of cranes but it could not be discerned from records whether suggestions given by U.S. company would bring brought any major change or improvisation in design of crane, matter should be reconsidered afresh

Penalty on attempt of illegal export can also be levied after illegal export

Excise & Customs : Since 'illegal export' is preceded by an 'attempt towards illegal export', confiscation under section 113 and penalty under section 114 are attracted against 'attempt of illegal export' even after goods have been actually exported

No penalty when additional income was declared in revised return after seized books were returned by

IT: Admission of income by assessee in revised return cannot give jurisdiction to Assessing Officer to levy penalty under section 271(1)(c)

Tax Authorities can’t attach Cash Credit Account of taxpayer to recover tax dues

IT: Where Assessing Officer raised huge tax demand upon assessee and in meantime bank account including cash credit account of assessee had been attached by income tax authorities, in view of decision of Madras High Court in case of K.M. Adam v. ITO [1958] 33 ITR 26, cash credit account of assessee could not be attached and it was entitled to be discharged

No penalty due to non-charging of ST on bank's commission as issue of its taxability was sub-judice

ST : Since taxability of business auxiliary service for which commission was paid to bank and insurance company and business support services for which handling charges was paid for RTO registration of vehicle, were subjudice in various forums, penalty could not be imposed for failure to deposit in government exchequer amount of service tax deducted; however, in respect of services of motor vehicle where assessee failed to deposit service tax, penalty was to be imposed

Foreign tax credit should be given on tax liability computed under MAT provisions

IT/ILT : There is no provision in Income-Tax Act, debarring granting of credit for tax paid abroad in case income is computed under Section 115JB

Co. having unreliable financial data can't be chosen as comparable for TP study

IT/ILT : A software product company could not be compared with assessee-company, which was primarily designing and developing software on contract basis for its AE

SEBI releases guidelines on Annual System Audit, Business Continuity Planning and Disaster Recovery

SEBI : Annual System Audit, Business Continuity Plan (BCP) and Disaster Recovery (DR)

SEBI issues circular to streamline framework of investor redressal and Arbitration Mechanism

SEBI : Investor Grievance Redressal System and Arbitration Mechanism

Oil And Gas Block Auction Policy To Be Ready By Fy16: Dharmendra Pradhan

Government expects to finalise the new policy for auction of oil and gas blocks during the ongoing financial year, Oil Minister Dharmendra Pradhan said.

"We have brought this consultation paper and suggestions will come in by November 30. We will make the policy after considering all the views and take it to the Cabinet. It will be our endeavour to make the policy during this financial year only," Pradhan told reporters on the sidelines of Bio-Energy Summit 2015 organised by CII here.

Yesterday, Oil Ministry had issued a paper on new fiscal and contractual regime for award of hydrocarbon acreages with a view to revive investor interest in oil and gas exploration by simplifying rules.

It proposes to free natural gas pricing as well as replace the controversial Production Sharing Contract (PSC) with simpler revenue-sharing regime for all future field auctions in the backdrop of low gas prices not attracting investors in exploration and production sector.

Global players like BP and domestic companies including RIL as well as state-owned ONGC have been seeking pricing freedom as the current rates make new investments unviable.

"There were suggestion on the issue from institutions like CAG. In order to make new bidding round more progressive, transparent and market friendly, we have brought in this consultation paper," the minister explained.

In September, the government had allowed pricing freedom for the gas produced from 69 small and marginal fields it plans to auction shortly.

On the Indian basket crude oil price cracking below USD 40 barrel mark to touch USD 39.89, the minister said, "We have to accept the changing geopolitical scenario of the world. Let's see how things are coming up. But this kind of price is certainly favourable for the Indian market."

While addressing the conference, he made it clear that lower crude prices will not change India's stance on increasing share of renewables sources in its energy mix.

He also indicated that as much as 20 GW of output from bio-energy will be achieved against the envisaged 10 GW under the total renewable energy target of 175 GW till 2022.

On LPG gas subsidy to households, Pradhan said: "There should be a public discourse on the issue whether LPG subsidy should be given to higher income groups. We will take a decision on this."

The government is planning to stop providing LPG subsidy to the consumers whose income is above Rs 10 lakh.

On the issue allowing premium pricing on gas produced from difficult deep-water and ultra deep-water blocks, he said oil and finance ministries will take a decision on the issue after achieving consensus.

Speaking at the same occasion, Railways Minister Suresh Prabhu said: "We are launching our first wind turbine in Jaisalmer by the end of this week. We need to invest in R&D in green power."

Source : economictimes.indiatimes.com

Insurers no more required to state in ads that "insurance is subject-matter of solicitation" -IRDA

INSURANCE/INDIAN ACTS & RULES : IRDAI (Insurance Advertisements and Disclosure) (Amendment) Regulations, 2015 – Amendment in Regulation 9

CCE(A) has to consider request for extension of pre-deposit which is made before due date of pre-dep

Excise & Customs : Commissioner (Appeals) has power to extend due date for making pre-deposit and he does not become functus officio as regards extension till due date for making pre-deposit

Block assessment couldn't be initiated on basis of survey

IT : There being no search under section 132, block assessment invoking provisions of section 158BC would not arise

CBDT lays Std. Operating Procedure for allocation/transfer of cases and curing of defective appeals

IT/ILT : Section 260A of the Income-Tax Act, 1961 – Appeal to High Court – Procedure for Filing Appeals, Curing Defective Appeals and Effective Representation in Delhi High Court

CBEC issues directions for monitoring and disposal of pending cases

EXCISE : Monitoring and Disposal of Cases Pending for Adjudication

If pledging of shares is valid its subsequent enforcement before winding up can’t be held as fraudul

CL: Once original pledge by company-in-liquidation in favour of applicant was held to be valid, its subsequent enforcement could not be faulted on ground that it amounted to a fraudulent preference or invalid transfer during pendency of winding up

HC considers actual usage of rig instead of it being ready for use to determine PE

IT/ILT : In order to determine question as to whether assessee owing rig had PE in India, Tribunal rightly concluded that unless rig owned by assessee was actually used for a period of 120 days in India, it would not be sufficient to attract article 5(2)(j) of India - USA DTAA

Due date for filing of DVAT return of second quarter further extended to Nov 20, 2015

VAT : Filing of Online Return for Second Quarter of 2015-16 – Extension of Period Thereof

Govt. notifies accounting codes for payment of Swachh Bharat Cess

ST : Accounting Code for Payment of Swachh Bharat Cess

Base frame not classifiable under heading 'Industrial Pumps' as it isn't an essential part of indust

Excise & Customs : 'Base Frame' is not an essential part of 'Industrial Pump', as industrial pump may be sold separately; therefore, base frame was not classifiable under heading 8413 but only under heading 8485

Revenue can't challenge subsequent order of ITAT without any reasons after accepting its earlier ord

IT : Where jurisdictional Tribunal had allowed assessee's claim for exemption under section 10(10C) by following its earlier order which had been accepted by revenue by not preferring an appeal thereagainst, then it was not open to revenue to challenge Tribunal's order without giving reasons for taking a different view

Receipt shown in P&L A/c liable to MAT even if it is shown as capital receipt in notes to accounts

Remission of bank loan shown in P&L A/c shall not be excluded for computing book profits under section 115JB even if same was shown as capital receipt in notes to accounts

President promulgates two ordinances for speedy settlement of disputes

CORPORATE LAWS/INDIAN ACTS & RULES : Arbitration and Conciliation (Amendment) Ordinance, 2015

Niggling Doubts Over The New Gold Schemes

The government has launched, amidst plenty of fanfare, three new schemes to monetise gold in the country — the gold monetisation scheme, the sovereign gold bond and gold coin. The underlying objectives of all three are laudable. Households in India hold a large amount of their savings as physical assets — gold, silver and other precious metals and real estate. Gold especially has for long held a tremendous attraction both as an investment avenue as well as a store of value.

With very little of the precious metal now being mined in the country, the seemingly insatiable domestic demand is being met by gold imports. Hence a two-pronged strategy is needed to provide an instrument that would target would-be gold investors and second, to draw out gold lying idle in private hands.

Get the gold to banks

The idea behind gold monetisation is to lure gold, now held as physical assets in private hands, into productive financial savings. According to government statistics, the amount of gold with households is a mind boggling 20,000 tonnes. Even if 5 per cent can be mopped up through innovative financial instruments based on gold, the domestic demand — estimated at between 850 and 900 tonnes annually — can be met. A significant gain would, therefore, accrue to the macro-economy where gold imports, along with petroleum imports, have for long been a significant factor behind the current account deficit.

It is a different matter that with falling oil prices and consequently the reduced import bill, the current account deficit looks eminently manageable. But long term solutions are needed for gold. Those who cling to gold should be weaned away for which they need to be provided with a decent return and equally importantly a guarantee for the safety of their investment.

The gold monetisation scheme (GMS) appears to be central to the three schemes. It is a vast improvement over existing schemes in its genre and its appeal to medium and long term investors should be stronger. Under the new scheme, as small as 30 gms of gold can be accepted. The tenure can go up to 15 years and the scheme pays higher interest rates to depositors – 2.25 to 2.5 against one per cent before.

A synthetic bond?

The gold bond scheme is for those investors who buy gold as an investment. According to government estimates, a third of the domestic gold demand arises from those who buy gold bars and coins. The gold bond’s unique feature is that it will offer returns linked to market price of gold. This is akin to a synthetic bond mimicking gold prices.

Gold coins to be issued with Ashoka Chakra emblem is bound to be popular. It is hoped that the government would mop up enough gold through its monetisation scheme to meet the demand from jewellers as well as from the issuance of coins.

Compared to the draft guidelines , the new l guidelines for all the three schemes have been spruced up operationally and are friendlier to investors. Yet, niggling questions remain.

The gold monetisation scheme is no doubt an improvement over earlier scheme — it promises higher interest rate and retains the promise of returning the deposit as gold subject to certain conditions.

However, gold held as jewellery will be very difficult to be monetised. The point has been made several times before that there would be a sentimental objection to parting with jewellery, which in many households are passed on from one generation to another. In fact, no gold monetisation scheme can overcome the inhibitions of all would-be investors. People buy gold with different motivations. Pledging gold to meet seasonal requirements is very common. Many gold loan companies have grown exponentially recently, especially in Kerala. Whether the loan is taken from an NBFC or a money lender, the gold pledged can be redeemed in its original form and not melted away at the instance of a bank.

Despite much greater clarity in the operational aspects, it is obvious that the infrastructure for operationising a monetising scheme should be built up in a way that promotes efficiency as well as transparency.

There is high hopes that temples and other religious institutions who are large repositories of gold will invest in the monetisation scheme. The move will be controversial. There will always be a suspicion that politicians will get into the act. Moreover, religious traditions built up over centuries might have to reinterpreted in some cases. A better alternative to persuade the temples to convert a portion of their gold stock into coins, pendants and so on bearing the stamp of the presiding deity. This has already been tried out but from the point of bringing gold into mainstream financial sector has little relevance. One hopes that these schemes should succeed for the sake of the macro-economy. With the Prime Minister himself taking the initiative to popularise the schemes, they should make some headway. Fresh ideas are always welcome to remove possible glitches and make the schemes even more appealing.

Source : .thehindu.com