Commission paid to NR agent for services rendered outside India isn't chargeable to tax; not liable

IT : Where commission paid by assessee to his agent was not chargeable to tax in India, assessee was not liable to deduct tax at source on said payments

No Seizure of chassis alleging that it would be sold by evading tax if it was taken out to build its

CST & VAT : U.P. VAT : Where Authorised Officer intercepted a new chassis and owner told that he was taking same from Jaipur to Moradabad for getting its body built, seizure of chassis on ground that it was being taken to Moradabad for sale by evading payment of tax was patently illegal

Commercial vehicles used for transportation of goods on hire are depreciable at 30% and not at 15%

IT : Where assessee was commercially using vehicles for transporting goods on hire, assessee was entitled for depreciation at rate of 30 per cent according to CBDT Circular No. 609 dated 29-7-1991

As Rs15.8B Yarn Imported From India During Jul-Dec, Pyma Seeks 15Pc Rd Duty On Import

Pakistan Yarn Merchants Association zonal chairman Muhammad Akram Pasha has demanded the imposition of 15 percent regulatory duty on imports of cotton yarn from India, saying that during the six months of year 2014 July to December total quantity of yarn imported from India was Rs 15.8 billion.

However, in the same period of preceding year, the total import was Rs 4.2 billion, he said talking to the media. Thus within six months, the import of Indian yarn quadrupled, impacting negatively on the local market. He said India was trying to sabotage the Pakistani yarn market and spinning sector by dumping heavily subsidized yarn exports from that country. They explained that Indian government was giving various incentives and subsidies to its exporters enabling them to dump their cotton yarn in Pakistani markets. The imports of cotton yarn from India were thus destroying the textile sector of Pakistan.

He said that textile was backbone of Pakistani economy which was earning more than 50% of total foreign exchange for the country. Furthermore huge number of textile industries and value added chain were connected with the spinning sectors and yarn market, he said.

Source:- customstoday.com.pk

Cheaper Oil Fuels India’S Strategic Reserves Push

Seizing the opportunity provided by the global price of crude falling to less than $50 a barrel, India is planning to fill up a strategic storage facility at Visakhapatnam by the first fortnight of February. This would be the first time the country is storing crude oil and the amount will be 1.03 million tonnes.

Strategic reserves are seen as vital for countries with high energy consumption levels and more so for India, which is heavily import-dependent when it comes to meeting its energy needs.

“We are just waiting for one specific approval. Once it comes, we are technically ready to fill the tank at Visakhapatnam,” said Rajan K Pillai, CEO & MD of Indian Strategic Petroleum Reserves (ISPRL) a special purpose vehicle owned by the Oil Industry Development Board.

Pillai said that at the current crude oil prices of around $50 per barrel and the rupee’s level of 61-62 to the dollar, filling up the facility at Visakhapatnam would cost about R2,400 crore and would be fully funded by the government. “India has set up among the cheapest storage facilities, which would cost about $17-18 per barrel,” Pillai said.

India imported 189 million tonnes of crude oil last fiscal, at a cost of $143 billion. Close to four-fifths of India’s oil consumption is met by imports. The construction of the proposed strategic storage facilities is being managed by ISPRL. To ensure energy security, the government has decided to set up 5 million tonnes (mt) or about about 39 million barrels equivalent strategic crude oil storages at three locations — Visakhapatnam, Mangaluru and Padur (near Udupi).

When fully filled, these reserves would be equivalent to 13 days of oil imports. The government is targeting an increase to 90 days of imports by 2020. Globally, the US has the maximum storage facility, which can last for about 90 days. After seeing strong volatility and price falls earlier in January, oil markets moved little last week with Brent prices range-bound between $47.78 and $50.45 a barrel.

The Visakhapatnam storage unit, built at a cost of Rs 1,038 crore, is divided into two compartments of 1.03 mt and 0.3 mt. The smaller compartment of 0.3 mt would be utilised by PSU refiner Hindustan Petroleum Corporation (HPCL), while the bigger section is meant for strategic reserves. The revised costs for the Mangaluru and Padur facilities are Rs 1,227 crore and Rs 1,693 crore, respectively, taking the total cost for the three projects to Rs 3,958 crore.

Oil prices rose on Friday after the death of Saudi Arabia’s king added more uncertainty to an oil market that has more than halved over the last six months. King Abdullah bin Abdulaziz died early on Friday and his brother Salman became king of the world’s top oil exporter. Brent crude futures were trading at $49.42 a barrel on Friday.

In 2013-14, India spent $143 billion on crude oil imports, which accounted for 32% of India’s total imports in the fiscal year. The strategic storage units are built in underground rock caverns on the east and west coasts so that they are readily accessible to the refining sector.

Source:- financialexpress.com

India Appeals To Wto Board Over Import Of Us Agri Products

India has appealed to the Dispute Settlement Board of World Trade Organisation for a panel decision on its issues with the US over agricultural imports. "WTO Secretariat received today a notice by India announcing its decision to appeal certain issues of law and legal interpretation in the panel report in the case 'India -- Measures concerning the importation of certain agricultural products'," the WTO said yesterday.

India had in 2012 imposed some prohibitions with regard to importation of various agricultural products from the US because of concerns related to Avian Influenza.

This import prohibition is maintained through India's Avian Influenza (AI) measures, mainly, the Indian Livestock Importation Act, 1898. The US contended that India's AI measures amounted to an import prohibition that was not based on the relevant international standard or on a scientific risk assessment. The dispute settlement panel ruled that India's AI measures are inconsistent with the Sanitary and Phytosanitary (SPS) agreement because they are not based on the relevant international standards.

India claims that the panel committed several legal errors in its interpretation and application of numerous articles of the SPS agreement.

Source:-moneycontrol.com

Switzerland's Gold Exports To India Cross Rs 1.2 Lakh Crore In 2014: Swiss Government

Switzerland's gold exports to India crossed Rs 1.2 lakh crore in 2014 even as concerns persist over bullion being used to channel illicit funds into the Indian shores.

The value of precious metal imported from Switzerland touched 17.1 billion Swiss francs (over Rs 1.2 lakh crore) during the 11-month period from January till November end in 2014, according to Swiss government.

Last November alone saw import of bullion worth over 2.9 billion Swiss francs (around Rs 20,000 crore) from Switzerland. In the preceding month too, gold exports from the Alpine nation remained at similar levels, latest data from the Swiss Customs Administration showed.

More than 457 kilograms of gold was exported from the Alpine nation to India during January-November 2014 period. At the end of November 2014, India remained the biggest destination for gold exports from Switzerland.

According to latest figures from the Indian government, gold imports surged over six-fold to $5.61 billion (over Rs 35,000 crore) in November.

The spike was primarily attributed to increased demand during marriage and festival season as well as easing of import curbs in November. Gold imports jumped 280 per cent to $4.17 billion in October. In September as well, the imports zoomed to $3.75 billion.

An analysis of numbers from both countries reveal that Switzerland accounted for over 60 per cent of gold imported by India.

Swiss government started publishing trade data monthly from 2014 and included information on trade partners. Data on imports and exports of gold, silver and coins was available on quarterly frequency as a separate product up to 2013 but data by trade partner was not available.

There are concerns that gold is used for 'layering' purposes to move funds from Swiss shores amid crackdown on illicit fund flows.

A new strategy of 'layering' through gold and diamond trade came to light last year at Swiss banks to thwart any attempt for identification of real beneficiaries of funds entrusted with them, government and banking sources had said.

There is a growing suspicion that a portion of gold and diamond trade is being used to route funds from Swiss banks to India and other destinations.

'Layering' is a key stage in money laundering and involves moving illicit funds around financial system through a complex series of deals to complicate the paper trail.

The Indian government has been making efforts to curb the black money menace and bring back illicit wealth stashed by its citizens in foreign jurisdictions, including Switzerland.

Source:-economictimes.indiatimes.com

Indian Rupee Opens At 61.50/Dollar, Down 8 Paise

The Indian rupee opened at 61.50 a dollar on Tuesday, down 8 paise compared to Friday's closing value of 61.42 per dollar.

Ashutosh Raina, HDFC Bank says the USD-INR currency pair has been trading in 61-62/dollar range with appreciating bias, although the strong suspected RBI intervention has capped the gains so far.

The euro held onto modest gains, bouncing off an 11-year low as investors decided to take profits on extremely bearish positions. Also the the rouble weakened as Standard & Poor's cut Russia's sovereign credit rating to junk status, bringing it below investment grade for the first time in a decade.

Source:- moneycontrol.com

ITAT directs AO to determine whether sum paid to foreign Co. for data processing services was taxabl

IT/ILT : Following order passed by co-ordinate Bench of Tribunal relating to earlier assessment year, issue as to whether amount received by assessee from providing data processing support service to an Indian bank was taxable as 'fee for technical service' was to be remanded back for disposal afresh

HC admitted winding-up against Co. as it failed to prove that it had no liability towards respondent

CL : Where appellant company had given cheques to respondent company but same were dishonoured of appellant-company failed to discharge its onus to prove that it had no liability to pay to respondent, winding up petition against it was to be admitted

Royalty paid to film producers for obtaining reproduction rights of music was revenue exp.

IT : Where assessee carried on business of reproduction of audio sound and music from master plate provided by film producers and distributors, royalty paid for obtaining rights of reproduction was allowable as revenue expenditure