Monday, 2 February 2015
License fee paid to use software for accounting purposes is allowable as revenue exp., says ITAT
Increase in anti-dumping duty doesn't apply to Bill of Entry, being filed prior to said increase
No denial of sec. 35 deduction without seeking opinion of prescribed authority about nature of resea
Case restored to AO as additional evidence filed before ITAT was relevant to decide allowability of
India's Reliance Dec Oil Imports Down 5.9 Pct Y/Y - Trade
India's Reliance Industries, owner of the world's biggest refining complex, imported about 6 percent less oil in December than a year earlier and
continued to skip purchases of Iraqi oil for the fourth straight month, tanker arrival data made
available to Reuters showed.
Reliance, which has a diversified crude slate and shifts purchases to maximise revenue,
bought about 0.7 percent more oil in 2014 than a year earlier.
It continued to buy 45 percent of its oil needs from Latin America in 2014 while share of
middle eastern grades in its overall purchases during the year declined to 39 percent from about
43 percent in 2013.
African grades accounted for about 15 percent of the refiner's crude purchase in 2014
compared with about 11 percent in 2013, the data showed.
Reuters reported in May that Reliance may boost intake of Brent-linked heavier, cheaper
African grades in 2014 and West Texas Intermediate (WTI)-related Latin American oil while
cutting intake of those from the Middle East.
Reliance's two advanced refineries in western Gujarat state can together process 1.2 million
bpd of oil, or about 28 percent of India's overall capacity.
The complexity of these plants allows the refiner to continuously diversify its crude slate
by testing new grades and to improve refining margins.
Following are the details of Reliance's crude and condensate imports in January-December
2014 versus a year earlier, according to the data. Volumes are in 1,000 bpd:
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Region/ Dec Nov %chg Dec %chg Jan-Dec Jan-Dec %chg
Country 2014 2014 mth/mth 2013 yr/yr 2014 2013 yr/yr
-----------------------------------------------------------------------------------------------
Latam
Brazil 214.7 59.6 260.1 87.5 145.6 69.3 37.6 84.3
Colombia 67.0 0.0 -- 98.2 -31.7 54.5 57.6 -5.5
Ecuador 0.0 0.0 -- 0.0 -- 23.9 8.4 185.9
Mexico 68.2 70.3 -3.0 68.6 -0.6 61.8 63.4 -2.6
Venezuela 399.6 485.0 -17.6 337.2 18.5 349.0 394.3 -11.5
Guatemala 0.0 0.0 -- 8.8 -100.0 0.0 0.7 -100.0
TOTAL 749.5 614.9 21.9 600.2 24.9 558.5 562.1 -0.6
Asia
Australia 0.0 22.8 -100.0 18.5 -100.0 1.9 7.0 -73.2
TOTAL 0.0 22.8 -100.0 18.5 -100.0 1.9 7.0 -73.2
Middle East
Neutral zone 34.7 35.1 -1.1 62.3 -44.2 59.5 119.2 -50.1
Oman 0.0 0.0 -- 8.9 -100.0 3.3 6.5 -49.0
Iraq 0.0 0.0 -- 0.0 -- 16.7 71.6 -76.7
Qatar 13.8 29.8 -53.6 84.4 -83.6 80.7 63.7 26.7
Kuwait 0.0 0.0 -- 0.0 -- 0.0 2.9 -100.0
S Arabia 250.4 259.9 -3.6 263.3 -4.9 228.1 203.3 12.2
U.A.E. 54.4 234.3 -76.8 37.9 43.6 94.8 57.1 66.0
Yemen 18.0 0.0 -- 0.0 -- 1.5 5.4 -71.5
TOTAL 371.4 559.2 -33.6 456.8 -18.7 484.6 529.7 -8.5
Europe
Albania 0.0 0.0 -- 0.0 -- 3.3 3.4 -2.7
TOTAL 0.0 0.0 -- 0.0 -- 3.3 3.4 -2.7
C.I.S.
Azerbaijan 0.0 0.0 -- 0.0 -- 2.8 0.0 --
Kazakhstan 0.0 0.0 -- 31.3 -100.0 13.4 5.3 150.5
TOTAL 0.0 0.0 -- 31.3 -100.0 16.1 5.3 202.2
Africa
Nigeria 91.2 88.9 2.6 0.0 -- 55.8 15.0 271.0
Angola 0.0 33.9 -100.0 0.0 -- 45.8 35.8 27.8
Cameroon 0.0 0.0 -- 22.2 -100.0 7.6 11.7 -35.1
Chad 0.0 0.0 -- 0.0 -- 2.8 4.1 -33.1
Egypt 37.2 18.2 105.1 70.1 -46.9 27.0 39.0 -30.8
Gabon 30.0 0.0 -- 50.7 -40.7 16.0 13.5 18.7
Sudan 0.0 21.0 -100.0 20.3 -100.0 18.5 5.0 269.7
Eq. Guinea 0.0 0.0 -- 0.0 -- 11.1 9.6 14.8
Libya 0.0 0.0 -- 0.0 -- 0.0 1.7 -100.0
TOTAL 158.4 162.0 -2.2 163.2 -2.9 184.4 135.4 36.2
Canada 0.0 0.0 -- 0.0 -- 2.8 0.0 --
----------------------------------------------------------------------------------------------
TOTAL ALL 1279.4 1358.9 -5.9 1270.1 0.7 1251.7 1242.9 0.7
---------------------------------------------------------------------------------------------
Note: The total may not tally as numbers in tonnes have been rounded off after converting them
into barrels per day using a conversion factor of 7.2 barrels per tonne, divided by the number
of days. Numbers for previous months have been revised.
Source:-in.reuters.com
Indian Steelmakers Poised To Cut Prices As Imports Flood Market
India’s largest steelmakers are expected to cut prices to the lowest in almost a year to cope with a glut created by surging imports from China, Russia and South Korea.
Prices of hot-rolled steel, used to produce sheets, wheels, pipes and railway tracks, may fall by more than 4 percent this month to 32,500 rupees ($526) a metric ton, according to the average of six estimates compiled by Bloomberg from industry executives, government officials and analysts. Prices may not recover for a couple of quarters, unless the government acts to curb imports, they said.
“The slowing Chinese economy is leading to higher exports from the country,” said Rahul Jain, a Mumbai-based analyst with CIMB Securities India Pvt. in Mumbai. “With surging imports, price cuts will happen at least in the near-term.”
Hot-rolled coil prices in Mumbai have declined 10 percent since July, when imports started rising, to about 34,000 rupees a ton, excluding taxes. The rates for similar products in China tumbled 22 percent in the same period, according to researcher Beijing Antaike Information Development Co.
Earnings at Indian steelmakers are already under pressure with Tata Steel Ltd., the top producer, expected to post its lowest profit in seven quarters for the period ended Dec. 31, according to the median of 20 analyst estimates compiled by Bloomberg. JSW Steel Ltd. reported its lowest profit in five quarters in the three months ended Dec. 31.
“Prices of some of the imported steel products have come down to ridiculous levels and it’s forcing local producers to cut prices,” A.S. Firoz, chief economist at the steel ministry’s economic research unit, said today by phone from New Delhi. “It’s a concern that our exports have fallen, while imports are flooding our markets.”
Imports accounted for 12 percent of India’s steel consumption in the nine months ended Dec. 31, compared with 8 percent in the same period year ago, according to steel ministry data. Local prices will remain restrained in the year starting April 1 due in part to higher imports, according to a Jan. 20 report by India Ratings & Research Pvt., the local unit of Fitch Rating Ltd.
“There’s pressure from steel imports this quarter,” JSW Steel Director Jayant Acharya told reporters at an earnings press conference on Jan. 30. “The Chinese surplus is coming out into the international markets and Russia’s ruble depreciation has facilitated their exports.”
Crude steel output in China, the world’s top producer, reached a record last year, while a fall in Russia’s ruble and a free-trade accord between India and South Korea has led to a surge in imports from those nations. India, which was a net exporter of steel last year, may become a net importer of 3 million tons this year, Firoz had said in January.
At the current rate, imports may reach as much as 1 million metric tons a month, Acharya said. India’s total steel imports rose 59 percent to more than 6.5 million tons in the nine months through Dec. 31 from a year earlier, according to steel ministry data.
Chinese steel exports soared to 10.17 million tons in December from the previous month’s record of 9.72 million tons, according to data from the nation’s customs department.
India’s steelmakers are lobbying the government to restrain imports by raising taxes on shipments from overseas suppliers and also implement a December order to ensure uniform quality of the alloy being imported.
The order makes quality certification from the Bureau of Indian Standards mandatory for imported steel products.
“We are requesting the government to look at enforcing the quality order,” Acharya said. “We also expect some changes in the duty structure either in terms of normal customs duties or tariff barriers.”
Source:- bloomberg.com
Indian Shrimp Exports To Touch Rs.27,151 Crore By 2017
While the Indian frozen shrimp export market is expected to reach nearly Rs.27,151 crore by 2017, over-exploitation of the crustacean has led to a market imbalance, a study conducted by an industry association said Monday.
According to industry body Assocham, there is an urgent need to promote brackish water aquaculture for shrimp production through focused research on increasing productivity.
"Over-exploitation of shrimp from natural sources and ever-increasing demand for shrimp and shrimp products globally has resulted in wide demand-supply gap, thereby necessitating the need for exploring new avenues for increasing production of prawns and increasing brackish water area under culture," D.S. Rawat, secretary general of the industry body said here.
Indian shrimp exports in 2013-14 accounted for 301,435 tonnes valued at $3,210.94 million and the volume export of cultured shrimp grew by 31.85 percent in the time period.
The study has stated the exports in the coming years are expected to rise by 36.71 percent in volume and 92.29 percent in terms of dollar valuation.
According to the study, although the shrimp production potential is enormous for the country, estimated at over 11 lakh hectares (ha) available for brackish water, only 8.5 percent, accounting for about 1 lakh ha has been brought under shrimp cultivation.
Brackish water is needed for shrimp farming and is the natural habitat of the crustacean.
Though West Bengal had the largest available brackish water area of over four lakh ha, the state had brought a meagre 12 percent area of about 47,488 ha under brackish water culture as of 2009-10, the study said.
The state, which had the highest share of over 46 percent in total area under brackish water culture, however, has decreased by about six per cent in four years.
Gujarat, ranked second in terms of potential brackish water area of over 3.7 lakh ha, had brought only 0.5 percent or about 1,916 ha of area under brackish water culture.
However, it is the only coastal state where area under brackish water culture has increased by about 48 percent, from 1,297 ha in 2005-06 to 1,916 ha as of 2009-10.
Source:- indiagazette.com
Pharmexcil Focuses On Improving Indian Pharma Exports To Myanmar
The Pharmaceutical Export Promotion Council of India (Pharmexcil) is focussing on improving Indian pharma exports to Myanmar. As part of this initiative, the council is planning to organise expo-cum-BSM (buyer-seller-meet) in Yangon from 19-21st February 2015.
Myanmar, the eastern neighbour of India (also called as Burma earlier) has been long neglected and not much focus was given towards this country due to political uncertainty and military dictatorship. But during the past few years now, things are fast changing with much improved business environment prevailing in the country.
Particularly, the demand for healthcare products in the country is very high due to aging population. As India has already proven its might in high quality generics all over the world, Myanmar is now looking at India for its medicinal and healthcare imports.
Since the year 2011, Indian bulk drugs, formulations, herbals and Ayush products are being increasingly exported to Myanmar. India recorded a growth of 27 per cent in its formulations exports from Rs.375.46 crore, in the year 2011-12 to Rs.831 crore in the year 2013-14. Similarly in herbals, India recorded a growth of 71 per cent and improved its exports from Rs.0.16 crore in the year 2011-12 to Rs.0.9 crore in the year 2013-14.
On the other hand, India’s exports to Myanmar have recorded a negative growth in bulk drugs and Ayush products. Exports of bulk drugs from India to Myanmar have dipped to Rs.5.26 crore in the year 2013-14 from Rs.9.29 crore in the year 2011-12.
As there is a huge demand for generic medicines in Myanmar, India wants to grab the opportunity to improve its pharmaceutical export business to the country. At the same time the council is looking to establish a long term partnership between Indian pharma entrepreneurs and business community in Myanmar. As part of this, Pharmexcil with the support of department of commerce, government of India is planning to organise an expo-cm-BSM at Hotel Park Royal in Yangon from 19-21st February.
The main aim of this expo is to promote Brand India Pharma Campaign and to attract more investments in pharma sector as well as to improve Indian generic exports to this high potential market. “Our aim with this expo-cum BSM is to create a huge opportunity to interact with local buyers/distributors and large number of doctors from various parts of Myanmar for creating awareness about India generics. Further, Ministry of Commerce has directed Council to include related segments like pharma consultants, pharma education, pharma engineering, medical devices, drug testing labs, pharma institutions etc. in order to give the effort a composite outlook and create opportunities strategically. Using such platforms Indian pharma companies can build much better business links as well as share views and give suggestions to resolve in there are any issues relating exports or imports,” informed Dr P V Appaji, Director General of Pharmexcil.
Source:- pharmabiz.com.
Judgment of HC was a binding precedent even if it laid down an incorrect law unless it was set aside
ITAT set-aside TP adjustment; directed assessee to show that no mark-up was required on AMP exp. rei
No Sec. 68 addition on receipt of share application money as acceptance of investor established sour
There Is A Slight Shift Of Exporters From Telangana To Ap After Bifurcation Of The State, But Still The Export Potential Of The New Ap Is Grossly Untapped, According To The Joint Director-General Of Foreign Trade, Pk Ghosh.
There is a slight shift of exporters from Telangana to AP after bifurcation of the State, but still the export potential of the new AP is grossly untapped, according to the Joint Director-General of Foreign Trade, PK Ghosh.
He was speaking at a seminar on exports organised by the GITAM School of International Business (GSIB) here on Monday in association with the DGFT, as a part of DGFT’s nationwide awareness campaign on Niryat Bandhu.
Ghosh said DGFT office would start functioning at Vijayawada from April 1. While the Visakhapatnam office will cater to the five of the coastal districts of the state, the Vijayawada office will cater to the remaining eight districts.
He said shrimp and aqua exports accounted for a major share of exports from the state. “But still there is immense scope to improve aqua exports and also in other sectors such as ferro alloys, steel and engineering products,” he said.Niryat Bandhu is being organised across the nation to create awareness and encourage entrepreneurship.
Source:-thehindubusinessline.com
Indian Rupee Rises 6 Paise Vs Us Dollar Ahead Of Rbi Policy
Ahead of RBI credit policy, the Indian rupee today ended 6 paise higher at 61.80 against the American currency on fag-end selling pressure from banks and exporters due to a weak dollar in the overseas markets.
The rupee resumed lower at 62.00 per dollar as against last weekend’s level of 61.86 at the Interbank Foreign Exchange (Forex). It moved down further to 62.01 per dollar on initial dollar demand from banks.
However, it recovered immediately to end at 61.80 per dollar on selling of dollars by banks and exporters, showing a gain of six paise or 0.10 per cent.Intra-day, it hovered in a range of 61.76 and 62.01.
The dollar index was down by 0.14 per cent against a basket of major global rivals.“Rupee appreciated against the Dollar to start the week on a positive note supported by dollar sales and foreign inflows. Rupee’s gain came after speculation that RBI could cut rates to help boost economic growth fuelled expectations of foreign fund inflows,” said Admisi Forex India Pvt Ltd, Director, Suresh Nair.
In the international market, the greenback met with selling pressure earlier in the morning, in line with the weak tone it has exhibited since Friday when weaker-than-expected US GDP figures for December quarter helped moderate he currency market’s expectation for higher interest rates.
A downbeat reading for China’s official manufacturing purchasing managers index Sunday also prompted selling of the US dollars.
Meanwhile, the benchmark BSE Sensex recovered from initial losses but ended lower by 60.68 points or 0.21 per cent at 29,122.27.Veracity Group, CEO, Pramit Brahmbhatt said: “Investors traded cautiously ahead of RBI credit policy which will be announced tomorrow. After unexpected rate cut last month, RBI is expected to keep interest rates on hold tomorrow, although some of the market players are being optimistic and are expecting further rate cut.”
The trading range for the spot USD/INR pair is expected to be within 61.40 to 62.40, he added.The forward premia declined further on sustained receipts by exporters.The benchmark six-month premium payable in July ended lower at 218-220 paise from 222-224 paise on last Friday and forward contracts maturing in January 2016 also fell to 412- 419 paise from 421.5-423.5 paise.
The Reserve Bank of India fixed the reference rate for dollar at 61.8840 and for Euro at 69.9413.The rupee firmed up further against the pound to 92.82 per pound from 93.33 previously ans recovered against the euro to 70.02 per euro from 70.22.The rupee also moved up to 52.51 per 100 yen from 52.59 previously.
Source:- financialexpress.com