IT/ILT : If it is not shown that transactions between agent and principal were not made under arm's length conditions, he will not be considered as agent of French principal within meaning of Para 6 of Article 5 of DTAA between Indian and France
Wednesday 21 January 2015
Commissioner (A) rightly granted interim stay after viewing factual position and having detailed dis
CST & VAT : Kerala VAT - Where Assessing Authority raised huge tax demand upon assessee and First Appellate Authority after considering factual position and detailed discussion granted interim stay subject to satisfaction of 30 per cent of disputed liability, impugned order did not call for interference
Unabsorbed losses or depreciation spread over block period couldn't be adjusted against undisclosed
IT : Unabsorbed loss or carried forward depreciation spilled over block period shall not be adjusted against undisclosed income
HC upheld penalty on firm for receiving cash loan exceeding Rs. 20,000 in guise of capital contribut
IT : Where cash received in excess of Rs. 20,000 was loans and not capital contribution by partners, penalty to be levied
Cement used as construction material for roof of mining area isn't 'input'; ineligible for credit
Cenvat Credit : Cement used as construction material to provide safety to roof of mining area cannot be regarded as 'input' and is not eligible for Cenvat Credit
Tribunal can't comment upon validity of provisions of Act/Rules
Excise & Customs : Tribunal, being a creature of statute, cannot go into vires of provisions of Central Excise Rules, 2002
No denial of trust registration to single entity even if its name indicated existence of cluster of
IT: Where assessee had complied with all conditions necessary for grant of registration under section 12AA and since assessee was only a single entity but consisted of different colleges/institutions, operating under such single entity, assessee company was to be granted registration under section 12AA
Disclosure of inflated stock for getting higher CC limit from bank leads to sec. 69C addition as une
IT : Difference of closing stock appearing in books and higher amount of closing stock provided to bank in order to release of payment by bank from cash credit account, was to be added in income
HC sets aside penalty on director as he wasn't in-charge of Co. at time of commission of offence
FEMA : Order imposing penalty upon appellant-director for contravention of section 8 of FERA was set aside when appellant was not a director incharge of company at relevant time when offence was committed
ITAT sets aside TP addition as comparable chosen by TPO didn't satisfy ratio of 25% of employee cost
IT/ILT :Where TPO made addition to assessee's ALP in respect of software development services, since four comparables selected by TPO failed filter of 25 per cent employee cost to revenues applied by TPO himself, impugned addition was to be set aside
India To Put Restrictions On Import Of Us Chicken Legs
India is set to tighten norms for imports of American chicken legs by proposing to keep out frozen chicken older than six months and those that have consumed hormones or genetically modified feed as the country prepares to contest a WTO order to lift a ban on purchases of US poultry.
The new standards, which may kick in within six months, could offer some protection to the growing domestic poultry industry from competitively priced American chicken legs.
While the Indian industry will also have to meet these food safety norms, being brought in as part of the government's quality initiative, it has an advantage since it largely consists of fresh poultry and does not rely on GM feed.
The World Trade Organization asked India in October to lift a ban on American chicken, imposed on account of avian influenza in 2007, calling it 'unscientific' and non-compliant with the global trade body's rules.
India will challenge the WTO order in the appellate body in a couple of days, citing domestic food safety concerns.
The new import norms are being prepared by the Food Safety and Standards Authority of India in consultation with the department of commerce and the department of animal husbandry, dairying & fisheries.
"We are working out standards for poultry and are discussing banning the sale of chicken older than six months. Also, poultry must not be fed with genetically modified feed, growth hormones and antibiotics," a government official said. US frozen chicken legs are stored for about four to five years and its poultry consume growth hormones and GM feed, a significant concern in India.
FSSAI has put out a draft order for meat and poultry products, inviting public comments. It has proposed that poultry birds should not be given feed containing meat, bone and blood. Besides, the use of antibiotics in feed and growth hormones will not be allowed.
It also said that slaughtering or processing of bovine meat will be prohibited where poultry meat is produced for human consumption. "The order will come into effect from July 2015," FSSAI said in the draft order.
US consumers prefer chicken breasts and the less-favoured legs are frozen for export to other markets at highly competitive prices. Chicken legs, which are popular in India, are priced locally at about Rs 150-170 per kg, while the US sells them at Rs 40-50 per kg.
The FSSAI will work with the department of animal husbandry to modify health certificates for meat and poultry sold to India.
"It will require competent authority of the exporting country to provide certifications to India in compliance with requirements to allow for placing of meat and poultry in Indian market," it said in the draft order.
More than 20 countries, including members of the EU, South Korea and South Africa, have imposed curbs on poultry from certain US states or the entire country. China halted imports of US poultry and eggs after an avian flu strain was detected in the Pacific Northwest. The EU banned US chicken on account of chlorine treatment.
Source:- economictimes.indiatimes.com
India’S Cut And Polished Diamond Exports Drop Marginally In December
In December 2014, India’s performance in exports of its cut and polished diamonds recorded a minor dip of 0.03 percent to US$ 1.451.75 million (US$ 1,452.20 million in December 2013). In volume terms the said exports were at 1.98 million carats from 2.04 million carats in December 2013, reports say.
Gold jewellery exports dropped 0.55 percent in December 2014.Rough diamond imports declined 13.4 percent, to US$ 1,431.18 million, from US$ 1,652.53 million. The volume of rough diamond imports dropped from 17.19 million in December 2013, to 14.06 million in December 2014.
India’s gross exports of all gem and jewellery products indicated a small 1.65 percent increase over December 2013, reports say.
Source:- diamondworld.net
Exercise Caution In Summoning Ceos Cbec To Excise Officials
CBEC has asked excise and service tax officials to exercise caution while summoning CEOs and top functionaries of large firms or PSUs for probing any revenue cases.
Summons should be used “as a last resort when it is absolutely required,” said a communication by Central Board of Excise and Customs (CBEC) to tax officials.
The circular has been issued to discourage the practice of issuing summons to top officials of companies in a “routine manner” to call for material evidence and documents.
"Senior management officials such as CEO, CFO, General Managers of a large company or a PSU should not generally be issued summons at the first instance.
“They should be summoned only when there are indications in the investigations of their involvement in the decision making process which led to loss of revenue,” it said.
Power of issue of summons are generally exercised by officials of ranks of Superintendent, though higher officers also issue summons.
“Summons by Superintendents should be issued after obtaining prior written permission from an officer not below the rank of Assistant Commissioner with the reasons for issuance of summons to be recorded in writing,” the circular added.
Earlier, the Ministry had asked Income Tax officials to be polite to assessees and not to make them wait unnecessarily in tax offices.
The Income Tax department had recently asked for holding of public meetings every Wednesday to resolve taxpayers grievances and tax issues as part of the ‘Good Governance’ initiative mooted by Prime Minister Narendra Modi.
Source:- tkbsen.in
Rupee Strengthens For Sixth Day, Trades At 61.59 Per Dollar
Rising for the sixth consecutive session, the Indian rupee on Thursday strengthened marginally against the dollar, tracking the gains in the local equity markets.
At 9.12am, the rupee was trading at 61.59 per dollar, up 0.08%. The local currency opened at 61.61 per dollar compared with its previous close of 61.64.India’s benchmark equity index, BSE Sensex, was trading at 28,951.08 points, up 0.22%.
Most of the Asian currencies were trading mixed against the dollar. The Taiwan dollar was up 0.25%, Malaysian ringgit 0.1%, Indonesian rupiah 0.05%. However, South Korean won was down 0.25%, Japanese yen 0.23%, Thai baht 0.1%.
Indian stock markets also touched all-time highs on Thursday, reinforcing expectations of further foreign fund inflows. Since 14 January, the Sensex has gained 5.6%, or 1,542 points. FIIs have bought equities worth $837.07 million during the same period.
The yield on India’s 10-year benchmark bond stood at 7.699% compared with its Wednesday’s close of 7.691%. Bond yields and prices move in opposite directions.Since the beginning of this year, the rupee has strengthen 2.36% against the dollar, while foreign institutional investors have bought $436.7 million during the period from local equity markets and bought $2.21 billion from debt markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.881, down 0.03% from its previous close of 92.904.Dealers also awaited European Central Bank (ECB) meeting. There are expectations that ECB will buy at least €600 billion of government bonds, and possibly double that if the programme continues for two years.
Source:- livemint.com
Providing men and material for laying concrete mixture is to be treated as works contract and not as
CST & VAT: Puducherry VAT - Providing men and materials to lay concrete mixture on area specified by purchaser and taking responsibilty for quality of concrete and also liability in case of leakage was to be treated as works contract and not sale
Mere cash deposit of above 10 lakhs in bank account doesn’t indicate that income has escaped assessm
IT: The assessee had deposited cash in excess of Rs 10 lakhs in his saving bank account but he had not filed return of income. The AO reopened the assessment of assessee, as he had reason to believe that there was an escapement of income of Rs 10 lakhs. The Tribunal held that the AO proceeded on the fallacious assumption that bank deposits constituted undisclosed income and overlooked fact that the source of deposit need not necessarily be income of the assessee
CBDT releases Explanatory Notes to the provisions of Finance (No. 2) Act, 2014
IT/ILT : Finance (No.2) Act, 2014 - Explanatory Notes to the Provisions of Said Act
Govt. revises jurisdiction of Service Tax Commissionerates
ST LAWS/EXCISE & CUSTOMS LAWS : Section 2(b) of the Central Excise Act, 1944, Read with Section 65B(55) of the Finance Act, 1994 - Central Excise Officer - Appointment of Chief Commissioners of Service Tax, Principal Commissioners of Service Tax, Commissioners of Service Tax, Commissioners of Service Tax (Audit), Commissioners of Central Excise (Audit), Commissioners Large Taxpayers Unit, Commissioners of Large Taxpayer Unit (Audit), Commissioner of Central Excise (Appeals) and Commissioners of
Exempted goods aren't 'specified goods'; intermediate goods used therein to be included for SSI-exem
Central Excise : Goods exempt under other notifications cannot be considered as 'specified goods' under Notification No. 8/99-CE; hence, intermediate goods used therein cannot be considered as 'used in manufacturing specified goods' and are, therefore, includible in computing SSI-exemption limit
HC denies to interfere with ITAT's order reducing sec. 40A(2) disallowance as it was based on factua
IT: Where restrictions of disallowances of commission expenses were absolutely on appreciation of evidence and based on factual aspects, no question of law would arise for consideration
Any person travelling to Nepal/Bhutan can carry Indian currency in denomination of Rs 500/1000 up to
FEMA/ILT/INDIAN ACTS & RULES : FEM (Export and Import of Currency) (Second Amendment) Regulations, 2014 - Amendment in Regulation 8
Longer credit period allowed to AE on realization of sale proceeds is an international transaction u
IT/ILT : Longer credit period to AE is 'international transaction' in terms of Explanation to section 92(1) but is 'closely linked' to international transaction of sale or service to AE in terms of Rule 10A(d). This is not a transaction of loan or advance to the AE but it is only an excess period allowed for realization of sales proceeds from the AE. Therefore, the arm's length interest rate would be the average cost of the total fund available to the assessee and not the rate at which a loan is
Govt. revises jurisdiction of Excise Commissionerates
EXCISE & CUSTOMS LAWS : Jurisdiction of Principal Chief Commissioners of Central Excise, Chief Commissioners of Central Excise, Principal Commissioners of Central Excise, Commissioners of Central Excise, Commissioners of Central Excise (Appeals) or Commissioners of Central Excise (Audit) - Amendment in Notification No. 27/2014-C.E. (N.T.), Dated 16-9-2014
Any person travelling to Nepal/Bhutan can carry Indian currency in denomination Rs 500/1000 up to Rs
FEMA/ILT/INDIAN ACTS & RULES : FEM (Export and Import of Currency) (Second Amendment) Regulations, 2014 - Amendment in Regulation 8
Govt. notifies 9.1% interest rate for investment in 'Sukanya Samridhi Account' during 2014-15
IT : Sukanya Samridhhi Account Rules, 2014 - Rate of Interest to Be Allowed on Investments in Said Scheme during Financial Year 2014-15
Exempted goods are not 'specified goods'; intermediate goods used therein are to be included in comp
Central Excise : Goods exempt under other notifications cannot be considered as 'specified goods' under Notification No. 8/99-CE; hence, intermediate goods used therein cannot be considered as 'used in manufacturing specified goods' and are, therefore, includible in computing SSI-exemption limit
TNMM at entity level is most appropriate to determine ALP when all international transactions are wi
IT/ILT : Where assessee received from non-resident AE assured pre-defined margin on costs incurred, ALP of Individual transactions was irrelevant; TNMM at entity level was most appropriate for evaluating International transactions
Redemption fine paid to custom authorities due to defect in REP license couldn't be termed as penalt
IT : Where assessee purchased goods from a party on high-sea basis and it had to pay customs penalty for defect in relevant REP licence issued in favour of that party, such payment was allowable as business expenditure
HC directs assessee to deposit security to release goods which were seized due to inadequate docs
CST & VAT : U.P. VAT Act - Where assessee, a registered dealer, was carrying oil from one place to another place within State of U.P. and mobile squad seized same on plea that it was not accompanied by adequate documents, in view of circular dated 9-7-2014, assessee was required to deposit security amount equivalent to 15 per cent of value of oil for release of same
No cancellation of VAT registration due to non-storage of goods at place of registration
CST & VAT: Uttarakhand VAT : Where Assessing Officer cancelled registration certificate of assessee on grounds that goods were not stored at address given in registration certificate and it was reported by unidentified persons that business premises of assessee remained closed, cancellation of registration was not justified
SLP dismissed against HC's order that sum received prior to 1-4-2003 for non-compete fee was capital
IT: Prior to insertion of clause (va) of section 28, compensation amount received towards loss of source of income and non-competition fee could only be treated as capital receipt and was not liable to tax
Activities carried out by Trust for providing employment to rural poor couldn't be held as commercia
IT : Activities carried out by Trust for providing employment to rural poor couldn't be held as commercial activities
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