IT/ILT : Where no incriminating material was found by department during search indicating that assessee's working of TP was flawed or inconsistent in any manner, it would be wholly unjustified for TPO to review his own acceptance of assessee's TP report merely because a search was conducted in assessee's case
Sunday 4 January 2015
Exp. on verifying info of customers and their creditworthiness for issuance of credit cards is reven
IT : In credit card business credit investigation expenses would be revenue expenditure
[DGFT Notification] : Amendment in import policy conditions under ITC (HS) 4 digit code 3808.
To be published in the Gazette of India Extraordinary Part-II, Section -3, Sub Section (ii)
Government of India
Ministry of Commerce & Industry
Department of Commerce
Udyog Bhawan, New Delhi
Notification No. 106/(RE-2013)/2009-2014
Dated the 1 January, 2015
Subject: Amendment in import policy conditions under ITC (HS) 4 digit code 3808.
S.O. (E): In exercise of powers conferred by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.3 and 2.1 of the Foreign Trade Policy, 2009-2014, the Central Government hereby inserts the following Policy condition as Policy Condition no. 3 under Chapter 38 of ITC (HS), 2012 – Schedule – 1 (Import Policy):
"3. Under Section [9] of the Insecticides Act, 1968 all chemicals intended to be used as insecticides, rodenticides, fungicides, herbicides etc. [referred to as ‘insecticides’ under the Act] require mandatory registration for import. In cases, where the ‘insecticide’ is imported for non-insecticidal purpose, an import permit is necessary from the Registration Committee under the Department of Agriculture and Cooperation. The Registration Committee while granting registration or a permit for import of an insecticide spells out the conditions for import which inter alia, may include reference to the source of import. No ‘insecticide’ can be imported from a source other than that specified on the certificate of registration or the permit, as the case may be. In addition, the Registration Committee may issue regulatory guidelines from time to time with respect to safety, efficacy, quality etc. which warrant full compliance from importers."
2. Effect of this Notification: The policy provisions under the Insecticides Act, 1968 for import of insecticides under EXIM code 3808 of Chapter 38 in ITC (HS), 2012 – Schedule – I (Import Policy) are being notified.
(Pravir Kumar)
Director General of Foreign Trade
E-mail: dgft@nic.in
(Issued from File No.01/53/162/Misc./AM-15/M-23/IC/PC-2-A)
[Indian Customs Tariff Notification] : Seeks to amend notification No.12/2012-Cus dated 17.3.2012 so as to extend zero customs duty on chickpeas(gram) upto 31st March, 2015
[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 39 /2014-Customs
New Delhi, the 31st December, 2014
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 12/2012-Customs, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 185(E), dated the 17th March, 2012, namely:-
In the said notification, after the Table, in the proviso, in clause (ab), for the figures, letters and words "1st day of January, 2015", the figures, letters and words "1st day of April, 2015" shall be substituted.
[F.No. 354/15/2010-TRU]
(Pramod Kumar)
Under Secretary to the Government of India
Note: The principal notification No. 12/2012-Customs, dated the 17 th March, 2012 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 185(E), dated the 17 th March, 2012 and last amended vide notification No. 34/2014-Customs, dated the 24 th December, 2014, published vide number G.S.R. 915 (E), dated the 24 th December, 2014.
Gold Imports Rise 8.5% To 849 Tonne In 2014
Despite stringent controls like the 80:20 scheme on gold imports for most parts of 2014, imports of the precious metal are projected to have increased 8.5% to 849 tonne in the year compared to 2013.
From June onwards, the average monthly imports stood at 90 tonne while in November, when the curbs were relaxed, imports stood at 151 tonne or $5.6 billion.
The 80:20 scheme was introduced in second half of 2013 to control gold imports and it succeeded to an extent. However, in the second half of 2014 imports rose due to demand for the precious metal. “Imports rose due to demand of consumers, which was suppressed for several months,” said an industry observer, who also tracks imports.
The last quarter of 2014 saw a spike in imports at 296 tonne, the highest after the quarter ended June 2013.
While the import bill for 2014 at $30.8 billion is less than $39 billion in 2013, the spike in the import bill is visible if one compares the data on a financial year basis. During April-December 2013-14, the bill was $23.36 billion, which has increased to $25.45 billion in three quarters of 2014-15.
Overall imports remained high despite the sharp fall in December imports, which is pegged at less than 30 tonne or around $1 billion, a fall of almots 80% compared to the previous month. The data will also be the lowest in the last 15 months and lower than December 2013 too (37 tonne). Traders say there was virtually no demand in December and the high inventories due to previous imports were still in the market.
Going forward too, the import scene may not see a big improvement. “Demand is quite dull and we don’t see any significant improvement in demand for a couple of months as now expectation is that in the budget, government may cut import duty on gold, which will bring down gold price in India to the extent of duty,” said Prithviraj Kothari of Riddhi Siddhi bullion.
Interestingly, gold was trading at a discount in December at a marginal $1-2 premium per ounce to its cost of import in the Mumbai market.In Mumbai’s Zaveri Bazar, standard gold is trading at Rs 26,900 per 10 gram while silver at Rs 36,300 per kg.
Source:- business-standard.com
Reassessment justified as assessee failed to disclose that it had commenced business with assets of
IT : Whether where material information that assessee company commenced its business using asset of an erstwhile company was not furnished with return and same was disclosed in subsequent year, reassessment was proper
Medical Group Insurance is also eligible for input service credit
Cenvat Credit : Services by way of : (i) Medical Group Insurance; (ii) Consultancy Services in relation to tax compliances; (iii) Outdoor Catering Services; and (iv) Subscription for International Taxation, are eligible for input service credit
ITAT allows sec. 54B relief to father on purchase of land in son's name even if sold land was held j
IT : Where son of assessee was also joint owner of land which was sold and new land was purchased in name of son because of assessee's old age and other technical reason, assessee was entitled to deduction under section 54B
IRDA lays down new guidelines in respect of group insurance policies for banks, NBFCs and Housing Fi
INSURANCE : Guidelines on Claim Processing for Group Life Insurance Policies under Lender Borrower Group Insurance Scheme
High Local Ore Prices Prompt Steel Makers To Look Overseas
India will import nearly 15 million tonnes of iron ore in 2015 as higher domestic prices amid a supply shortage push top steel makers to import more, said industry executives.JSW Steel Ltd, with the largest domestic capacity for steel among private firms, will import maximum ore at nearly 9 million tonnes, while Tata Steel Ltd is expected to import roughly 2 million tonnes.
“By the end of the fiscal, JSW would have imported almost 9 million tonnes out of the total 15 million tonnes expected to be imported into the country, a marked shift from last year’s one million tonne total imports,” said Seshagiri Rao, joint managing director and group chief financial officer of JSW Group, adding a domestic supply shortage of almost 10 million tonnes has led to higher domestic prices.
“This is making imports of iron ore for coast-based steel plants much more viable although for plants in the interior of the country, it is still unviable to import. Still, companies are importing, as there is no uniform availability.”
Tata Steel did not respond to an email seeking clarity on its imports; but representatives of an industry association tracking such data said its imports would be close to 2 million tonnes.In a statement on 30 December, T.V. Narendran, managing director of Tata Steel, India & South East Asia, had confirmed that the company would be a net importer of iron ore.
Narendran said in an email that the company was impacted by issues related to mining lease renewals which led to intermittent stoppage of mining operations leading to disruption in the end-use operations.Goutam Chakraborty, analyst with brokerage Emkay Global Financial Services, said the current price of 62% Fe grade iron ore is about Rs.4,000 per tonne in India; the same grade is available internationally at around Rs.3,500 per tonne. He added that the cost of iron ore is even higher in India in case of lumps and is close to Rs.4,200-4,500 per tonne for a 62% Fe grade.
Rao from JSW Steel added that while international prices have fallen almost 40% since the beginning of the fiscal, in India, prices have actually risen.Bloomberg data says the price of 62% Fe grade iron ore fines imported into China has fallen from $110.1 per tonne as on 1 April 2014 to $66.4 per tonne as on 25 December 2014, a fall of almost 40% so far this fiscal.
In contrast, ore price at e-auctions in India has risen from Rs.2,700 per tonne in April to Rs.3,140 per tonne in November. State-owned miner NMDC Ltd cut prices in December for the first time in 2014, said Chakraborty of Emkay in a 2 January report. Data on the quantum of the price cut was not available.A senior NMDC executive said the price discovered via e-auction has not fallen, as there is demand at higher prices and buyers seem to have the capacity to absorb these prices. “Why should we fix a lower base price for iron ore when there is a demand even at a higher price?” asked the executive, who spoke on condition of anonymity.
He said NMDC’s pricing formula incorporates the international price benchmark, domestic demand and available domestic grades.
A mail sent to NMDC on Wednesday remained unanswered.Mining industry representatives, however, say that e-auctions are inflating prices way beyond international prices. They add that the quality and uniformity of iron ore are also not as per requirements.“This is leading to an added supply crunch, with several batches remaining unclaimed, while companies are resorting to imports,” said Basant Poddar, vice-president of Federation of Indian Mineral Industries (FIMI), India’s biggest trade body for minerals.
“There is no country in the world which runs its steel plant based on imported iron ore or iron ore available from e-auctions,” he added.
India is expected to produce up to 130 million tonnes per annum (mtpa) of iron ore as against a demand of 140 mtpa largely due to weaker output from Karnataka, Odisha and Jharkhand. Domestic output has fallen due to restrictions imposed by the Supreme Court to curb illegal mining.
Source:-livemint.com
Mere pleading of financial hardship without any documentary evidence won't lead to waiver of pre-dep
Service Tax : Pre-deposit cannot be waived on mere claim of financial hardship due to 'default by debtors and non-recovery' owing to global recession, sudden financial meltdown and financial crisis in US; assessee must file documentary evidence in support of its claim
Commerce Ministry Engages With Departments To Improve Ease Of Doing Business
The Commerce Ministry is intensely engaged with different departments, including revenue and shipping, to reduce paper work in a bid to cut transaction cost for exporters and improve ease of doing business.
The Directorate General of Foreign Trade (DGFT), under the Commerce Ministry has prepared a report suggesting various ways to improve India's ranking in the World Bank's report of ease of doing business, reduce transactions cost for exporters and boost outward shipments.
The ministry aims at reducing the number of mandatory documents from nine to three (bill of lading, invoice and shipping bill) for exports, and from ten to four for imports.
"DGFT is regularly meeting officials of different departments including revenue and shipping to achieve this goal. Reduction in paper work would improve ease of doing business, reducing transactions costs and time and also boost India's exports," an official said.
The report, Trade Across Borders, was circulated to all the departments concerned and they have expressed commitment to help achieving targets by March 31, the official said, adding Commerce Secretary Rajeev Kher has written to the departments to take actions on these recommendations.
According to exporters' body Federation of Indian Export Organisations (FIEO), these measures, if implemented, would push India's ranking within 100th from the current 126th position for doing trade across borders.
"As per our rough estimates, reduction in paper work and making all the ports EDI (Electronic Data Interchange) would help in reducing the transactions cost by about 3 per cent (about $20-25 billion) of the total $750 billion trade," FIEO Director General Ajay Sahai said.
Documents which could be dropped or merged for exports include statutory declaration form and terminal handling receipt while for imports product manual, inspection report and charter engineering certificate.
The government is aiming to improve India's overall ranking in ease of doing business index to 50th position in the next two years from the current 142nd.
The DGFT is also making several procedures online like taking Import-Export Code (IEC) and cargo release order.
Besides, other departments like the Department of Industrial Policy and Promotion (DIPP) too has taken series of steps to improve India's ranking.
During April-November, the country's imports were up 4.65 per cent to $316.37 billion, while exports were up 5.02 per cent to $215.75 billion. Trade deficit during this period stood at $100.61 billion as against $96.89 billion in the same period last fiscal.
Source:- economictimes.indiatimes.com
Defect of directing special audit without hearing assessee couldn't be cured by referring to unanswe
IT : In absence of an opportunity of being heard under section 142(2A), Assessing Officer cannot direct for special audit
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