Excise & Customs : New evidences, which were not furnished before adjudicating authority, have to be considered on merits and hence, same cannot be considered by Tribunal while passing interim order
Sunday 1 February 2015
ITAT directed TPO to calculate AMP exp. after considering principles laid down in LG Electronics' ca
IT/ILT : Where assessee claimed AMP expenses, matter was to be restored to TPO to consider principles laid down in Asstt. CIT v. L.G. Electronics India (P.) Ltd. [2013] 35 taxmann.com 344/148 ITD 671 (Delhi) in which directions to calculate said expenses was given
ITAT directs lower authorities to follow Merilyn shipping's case until reversed by jurisdictional HC
IT : The Tribunal held that no disallowance should be made under section 40(a)(ia) for TDS default in relation to amount paid during the year.It held that ITAT Special bench's decision in the case of Merilyn Shipping & Transports v. ADIT [2012] 20 taxmann.com 244 (Visakhapatnam) is binding on lower authorities until and unless the same is reversed by the Hon'ble jurisdictional High Court.
[DGFT Public Notice] : Online IEC applications: Operationalisation of the Public Notice No. 76 dated 27/11/2014.
To be published in the Gazette of India Extraordinary Part-I, Section (I)
Government of India
Ministry of Commerce & Industry
Department of Commerce
Udyog Bhawan, New Delhi
Public Notice. 83/ (RE-2013)/2009-2014
Dated the 30th January, 2015
Subject: Online IEC applications: Operationalisation of the Public Notice No. 76 dated 27/11/2014.
The operationalisation of the mandatory system of online applications for IEC with effect from 01/01/2015 was notified vide Public Notice 76 dated 27/11/2014. This was, however, kept in abeyance vide Public Notice No. 80 dated 6.1.2015.
2. Now, in exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy (2009-2014), the Director General of Foreign Trade hereby notifies operationalisation of the new system of applications for online IEC with effect from 01/02/2015. Applicants having access to net-banking facility with the following ten notified banks, namely, i) HDFC Bank; ii) ICICI Bank; iii) Bank of India; iv) State Bank of India; v) Central Bank of India; vi) Punjab National Bank; vii) IDBI; viii) Axis Bank; ix) Union Bank of India; x) Oriental Bank of Commerce, can apply online in the format notified vide Public Notice No. 76 (RE-2013), dated 27/11/2014 as per detailed guidelines laid down in Public Notice No.79 dated 31/12/2014.
3. Applicants who do not have access to net banking through the above banks can submit manual applications for IEC as before (existing prior to 01/02/2015), in physical form in the existing format (ANF-2A) and procedure with documents as prescribed therein, until further notice.
4. Effect of this Public Notice: The new system of online applications for IEC as per the Public Notice No. 76 (RE-2013)/2009-2014 dated the 27 th November, 2014 will be operationalized with effect from 01/02/2015. The facility of submission of application in manual mode will, however, continue for those applicants who do not have access to net banking facility with the ten notified banks , as listed in Para 2 above. Applicants, applying for IEC in manual mode, may utilise the existing format (ANF 2A, as existing prior to 01/02/2015) and procedure to submit applications to RA’s office with documents as prescribed therein.
(Pravir Kumar)
Director General of Foreign Trade
E.Mail:dgft@nic.in
[F.No.01/93/180/20/AM-13/ PC-2(B)]
Leasing out of land to affiliate on reciprocity basis to fulfil trust's objectives doesn't bar sec.
IT : Leasing out of land to affiliate on reciprocity basis to fulfil trust's objectives doesn't bar sec. 80G relief
Department couldn't levy penalty without any finding on aspect of willful non disclosure by assessee
CST & VAT : Tamil Nadu VAT - Where Assessing authority levied penalty upon assessee under section 16(2), in absence of clear finding on aspect of wilful non disclosure, penalty could not be levied
Despite Exports To Eu, Alphonso Mangoes May Remain Affordable
Alphonso mangoes may come to market at reasonable prices this season following an increase in mango production this year.
"Prices are not going to go up compared to last year," said Arvind Morde, a third-generation mango exporter in Crawford Market.
"In Maharashtra, mango cultivation is increasing year after year, and growers are happy to switch over from other crops," said Morde. He said that declining fuel prices would further keep prices stable.
Mango-lovers feared that the fruit would become costlier, because the European Union recently lifted its ban on import of Indian mangoes.
The European Union's temporary ban had come into force on 1 May 2014 and was to remain effective until December 2015, after authorities in Brussels found consignments infested with fruit flies that they feared could damage European salad crops.
Ratibhai M Shah, a resident of Om Dariya Mahal in Nepean Sea Road, said, "In our family, alphonso mangoes are among the favourite fruits. Every season we not only consume them, but also distribute them among our family members in India and abroad. Generally we buy around 20 boxes of four dozen each every season. If prices hold up, we will stick to the same number. But if prices of mangoes go up this season, we would have no choice but to curtail our purchase to 16 boxes."
Source:- dnaindia.com
Sugar Mills In India Seek Government Help To Dispose Of Supply Surplus
Struggling sugar mills in India should benefit from a fixed-pricing mechanism for fuel ethanol but still need government support to export surplus sugar, the Director General of the Indian Sugar Mills Association said on Sunday.
Ethanol is produced in India from molasses, a byproduct of sugar production, and the government introduced the mechanism in December aiming to raise output to help curb fossil fuel imports.
"Fixed ethanol pricing is a positive development," Abinash Verma told the Kingsman Platts Dubai Sugar Conference.
Falling sugar prices in India linked to a supply glut have taken a heavy toll on sugar mills.Last year one of India's largest sugar mills, Mawana Sugars Ltd, defaulted on 2.5 billion rupees ($40 million) in outstanding loans from a consortium of lenders, an official from the company said.
The surplus has depressed local prices, which could fall further unless the government provides incentives for raw sugar exports.Verma said he expected the government to issue a decision on export subsidies this week.
"It is almost through so we expect and we pray it will happen this week," he told Reuters.Subsidies helped Indian raw sugar exports last year and mills have been waiting for news of this year's subsidy since the start of the crushing season in October.
Verma said India's sugar production for the 2014-2015 season is expected at 26 million tonnes while consumption will be between 24.7 million tonnes and 24.8 million tonnes.
"From what we are hearing the government is proposing around 1.4 million tonnes of assistance for raw sugar. Without government support we would not be in a position to export so whatever government will announce that is the kind of upper ceiling of what we can export," Verma said.
Verma said government policies which impose high prices for the cane used to produce sugar had helped create the surplus and government assistance was therefore needed to get rid of it.
"There is a need for government support for the disposal of surplus sugar," he said.India exported more than 1 million tonnes of raw sugar in 2014 and mills had hoped to export up to 2 million tonnes this year.
Source:-economictimes.indiatimes.com
Cbec Tells Officers To Go Easy On Issuing Summons
In a bid to quell harassment of taxpayers, especially the top management in India Inc, the Central Board of Excise and Customs (CBEC) has instructed its field officials (from service tax and excise units) to refrain from issuing summons to gather information.
The recently issued written set of instructions by the CBEC requires field officials to send politely-worded letters if these would also serve the purpose of gathering information or documents required in the course of a service tax or excise inquiry or investigation.
Under Section 14 of the Central Excise Act, summons can be issued to taxpayers when a service tax or excise inquiry is underway. It can be issued for recording statements or even for collecting evidence or documents.
The 'summoned' person, who can even be a CEO with no hands-on experience in tax issues, is required to appear before the excise or service tax authorities with the required information or documentary evidence. Generally, a limited time frame of a few days is made available to gather and submit a host of information. Such powers also give unscrupulous officials an opportunity to arm-twist taxpayers.
Industry representatives brought to the notice of the CBEC that summons were being issued in a routine manner by field officials to top senior management in India Inc to gather even basic information or documents. Such action often led to harassment. In this backdrop, CBEC has now issued written instructions to ensure summons are issued only when absolutely necessary.
At a policy level, similar instructions had been issued even in earlier years -in 1989 and later in 2007. These circulars had also called for discretion in issue of summons by excise and service tax officials.
CBEC's instructions seek to strike a balance between adopting a tax-friendly approach and the need to gather information in the course of a tax inquiry. It states: "While the evidentiary value of securing documentary and oral evidence under the legal provision can hardly be over emphasized, nonetheless, it is desirable that summons need not always be issued when a simple letter, politely-worded, can also serve the purpose of securing documents relevant to the investigation," The instruction also explicitly states that senior management (such as CEOs, CFOs or general managers of large corporations or PSUs) should not generally be summoned. These persons need to be summoned only when there are indications of their involvement in the decision-making process that led to loss of tax revenue.
Sunil Gabhawalla, chartered accountant, says, "Issue of this notification is a welcome step. However, there is an element of subjectivity involved, a CFO could be regarded as a decision-making authority -whose decision led to a loss of revenue. In this context, the CFO could still be summoned. It remains to be seen how well field officials understand the spirit behind this notification."
In addition, the power to issue summons requires prior written permission of an assistant commissioner, with reasons for issue of the summons to be made in writing. Gabhawalla adds, "Perhaps for large companies, where summons are sought to be issued to the CEO or any other senior ranking official, the power could have been vested with the commissioner."
Source:- timesofindia.indiatimes.com
Rupee Weakens Past 62 Per Dollar
The Indian rupee on Monday weakened past the 62 mark against the dollar, tracking losses in the Asian currencies market. The weak local equity markets also muted down sentiment.The local currency opened at 62 per dollar. At 9.17am, the rupee was trading at 61.94 per dollar, down 0.12% from its previous close of 61.87.India’s benchmark equity index, BSE Sensex, was trading at 29,119 points, down 0.33%.
Most of the Asian currencies were trading weaker against the dollar. The South Korean won was down 0.78%, Indonesian rupiah fell 0.42%, Taiwan dollar was down 0.41%, Japanese yen fell 0.23%, Philippines peso fell 0.23%, China renminbi fell 0.15%. However, Thai baht was up 0.27%.
Reserve Bank of India (RBI) will present its bi-monthly policy on 3 February. RBI is widely expected to keep interest rates on hold after a off-policy rate cut in January. Rates are likely to head lower from here. However, all eyes will be on the central bank’s guidance regarding the quantum of rate cuts with bets ranging from 50 basis points to 100 basis points during the course of 2015, Mint reported.
The yield on India’s 10-year benchmark bond stood at 7.682% compared with its Friday’s close of 7.692%. Bond yields and prices move in opposite directions.Since the beginning of this year, the rupee has strengthened 1.73% against the dollar, while foreign institutional investors have bought $2.02 billion during the period from local equity markets and bought $3.34 billion from debt markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.785, down 0.02% from its previous close of 94.804.
Source:- livemint.com
Logistic industry following 50:50 revenue sharing model for cargo handling services complied with AL
IT/ILT : In logistics and freight forwarding industry, international transaction benchmarked on the basis of 50:50 revenue sharing model complies with the arm's length principle
Appeal relating to 'rate of duty' on clearances by 100% EOU to DTA was not maintainable before HC
Excise & Customs : Where question raised by assessee (being 100 per cent EOU) is directly and proximately relating to rate of duty applicable to goods cleared to DTA, an appeal in said matter would not lie before High Court
Accused acquitted on charges of cheque dishonouring as complainant had no source to lend such huge s
Negotiable Instruments Act: Where complainant had no source of income to lend a sum of Rs. 14 lakhs to accused and he failed to prove that there was legally recoverable debt payable by accused to him, accused was to be acquitted for alleged offence under section 138
Subscribe to:
Posts (Atom)