Excise & Customs : Where, as per agreement between assessee and buyer (Defence Ministry), assessee was prevented from selling or marketing 'castings' or passing-on any information about same to any other persons, 'casting' was not 'marketable' product
Tuesday, 3 February 2015
Provision for losses on forex option contract doesn't constitute an ascertained liability; not deduc
IT: Provision for losses created on foreign exchange option contracts as on Balance Sheet date does not constitute an ascertained liability and, thus, deduction could not be allowed in respect of same as business loss
Non-consideration of issue not pressed before ITAT couldn't be considered as its apparent mistake
IT : Once assessee had withdrawn challenge on a particular issue by not pressing it before Tribunal, non-consideration of said issue would not be considered as mistake on part of Tribunal
Director, being in charge of Co., was liable for offence committed by Co. even if he didn't receive
IT : In terms of section 278B, once offence is shown to have been committed by company, then liability of directors in charge of its affairs is attracted and in such a case, directors cannot be acquitted merely on ground that no separate notices were issued to them
India's Wheat Exports To Fall In 2015 As Rise In Supplies From Australia, Europe Trims Prices
India's wheat exports are poised to fall this year as an increase in supplies from Australia, Russia and Europe has pulled down global prices and made shipments from India non-viable. This could put pressure on the government as it would be forced to procure more of the grain at the state-set price as India is expected to have another bumper harvest.
Trading companies from US-based Cargill to local major ITC aren't signing contracts for the new crop to be harvested in April-May as prices at $275 a tonne were too high, said industry executives.
In comparison, French wheat is available at $210. Indian wheat is usually in demand in the Gulf and African countries for milling and in southeast Asian countries for animal feed. "French milling wheat is now the flavour of the season," said Tejinder Narang, a grain analyst in New Delhi.
"The price of French wheat climbed down from $245 to $210 free-on-board (fob) with the depreciation of the euro."
According to him, French 'feed' wheat is available still cheaper, at $200 a tonne.February-March is usually the time when trading companies like ITC, Cargill, Olam, Louis Dreyfus, Glencore, Emmsons, Noble, Midstar, Concordia and Bagadiya Brothers start signing forwardcontracts for delivery in April. This has not been the case as of now.
The weakening euro and a stronger rupee have both enlarged the spread of disparity. Even the US soft red winter wheat is quoted cheaper than Indian variety, at around $232 fob.
"This year, commitment for a new crop for shipments from March till May has been nil. Compared to it, in the previous year it was 2.5-3 lakh tonne," said Rajnikant Rai, COO of ITC's agribusiness.
How the market forces unfold globally and domestically during April-June would decide future possibilities of shipments, companies and traders said. This will also be the time when the new crop from Russia and Ukraine will start arriving.
Narang said with no takers for Indian grain in the export market, the pressure on government procurement at the minimum support price is sure to build up.
"The government will end up buying again 30-32 million tonne of wheat in April-May 2015 unless there is some dramatic reversal in the market or the rupee depreciates to 65-66 to a dollar, a possibility that appears to be remote.
Souce:- economictimes.indiatimes.com
Gold Imports Dip To 14-Month Low In Gujarat
Over stocking by bullion traders in last few months of 2014, scrapping of 80:20 rule by central government and increase in international prices resulted in decline in gold imports in month of January in Gujarat. The imports were at 14-month low last month with little over 1.5 metric tonnes (MT), lowest since November 2013 when 0.2MT gold was imported.
According to latest figures, 1.58 MT of gold was imported in January 2015 compared to 4.57 MT in the same period in 2014. After record import in November last year (39.9 MT), the month of December saw a drastic fall, with only 2.6MT of the gold being imported.
The imports of yellow metal recorded substantial increase in later half of 2014 following Reserve Bank of India's (RBI) decision to provide conditional relief in gold import restrictions by allowing premier trading houses to import gold in September last year. However the imports fell to single digit owing to high international prices and availability of gold in local market.
"One of the major reasons for high imports last year was the fear among the bullion traders that central government may toughen the restrictions on imports," said Monal Thakkar, president, Amrapali Industries. "Traders imported in large numbers to cater to the demand during Diwali and marriage season which led to over stocking," added Thakkar.
The scrapping of 80:20 rule which mandated traders to export one-fifth of the gold consignment imported also led to decline in imports. In case of silver, only 5.27MT were imported in January 2015 compared to 41.57MT in same period last year.
Source:- timesofindia.indiatimes.com
Now, Apply Online For Importer, Exporter Code
Exporters and importers will now be able to apply online for their new Importer Exporter Codes (IEC) instead of physically submitting papers and making payments at various offices.
IEC is a unique 10-digit code given to exporters and importers by the DGFT without which they are not allowed to carry out international trade unless given special exemption.
The Directorate General of Foreign Trade (DGFT) has started the process of online filing and processing of applications and issuing of codes in a digital format, an official release said.
The required documents for getting the IEC can be uploaded by the applicants online and the required fee can be paid through net banking.
Processing of such applications by regional authority of DGFT would also be done online and the digitally signed e-IEC would be issued/e-mailed to the applicants within two working days, the release added. In case the application is incomplete or otherwise ineligible, the same shall be rejected and an auto generated rejection letter/e-mail (with reasons for rejection) would be sent to the applicant within two working days.
The DGFT is also working on enabling payment of fee through debit/credit cards, which would further facilitate this process. Once implemented the Online system would be made mandatory.
Till that happens, the existing offline/manual system has also been allowed side by side, in order to facilitate those applicants who do not have net banking facility, the release added.
Efforts are also on for message exchange/integration of the DGFT’s system with Income Tax department and Ministry of Corporate Affairs for verification of PAN and other details. Once implemented, this would further reduce the processing time of e-IEC applications to possibly one day, the release said.
Source:-thehindubusinessline.com
Rupee Gains 13 Paise To End At Nearly 1-Week High Against U.S. Dollar
Bucking the weak trend in stocks, Indian rupee on Tuesday strengthened 13 paise to end at nearly one-week high of 61.67 against the greenback on persistent selling of dollars by banks and exporters on a day the RBI kept interest rates unchanged.
The rupee opened higher at 61.65 per dollar as against the yesterday’s closing level of 61.80 at the Interbank Foreign Exchange (Forex) market. It moved up further to 61.61 per dollar on initial selling of dollars by banks.
However, it fell to 61.84 per dollar in the afternoon on fresh demand from some banks before closing at 61.67 per dollar, showing a gain of 13 paise or 0.21 per cent from its last close.
The rupee has now gained by 19 paise, or 0.31 per cent, in two days and has closed at its strongest level since 61.41 on January 28, 2015.
The local currency moved in a range of 61.61 per dollar and 61.84 per dollar during the day.
“Foreign inflows and hopes of rates cuts in the future continued to support the local currency. Foreign investors were net buyers of $120.68 million in Indian markets yesterday and purchased a total $6.818 billion in 2015,” said Admisi Forex India, Director, Suresh Nair.
The Reserve Bank of India (RBI) earlier today left repo rate unchanged at 7.75 per cent, but cut SLR by 50 bps to 21.50 per cent from 22 per cent.
In international Forex markets, the widely-tracked dollar index was down by 0.05 per cent against a basket of major global rivals.
In the Tokyo market, the dollar was lower against the yen on Monday, with investors seeking to take profits on overnight gains in the greenback.
In the New York market, the Canadian dollar, Norwegian krone and Russian ruble rose against the U.S. dollar yesterday as oil prices fluctuated.
Meanwhile, the Indian equity benchmark Sensex dropped by 122.13 points, or 0.42 per cent, to close at nearly two-week low of 29,000.14.
“Some banks were selling dollars in the market which helped the rupee trade strong against the U.S. dollar. The trading range for the spot USD/INR pair is expected to be within 61.20 to 62.20,” said Veracity Group, CEO, Pramit Brahmbhatt.
Meanwhile, the forward premia recovered sharply on fresh paying pressure from corporates.
The benchmark six-month premium payable in July ended higher at 222.5-224.5 paise from 218-220 paise yesterday and forward contracts maturing in January 2016 also rose to 428- 430 paise from 417-419 paise.
The Reserve Bank of India fixed the reference rate for dollar at 61.7389 and for Euro at 69.9378.
The rupee eased against the pound to 92.89 per pound from 92.82 per pound previously while moved up against the euro to 69.99 per euro from 70.02.
Source:- thehindu.com
Issue regarding admission of winding-up plea referred to third bench as division bench judges had di
CL : Where there was difference of opinion between two Judges of Division Bench as regards admission of winding up petition against appellant company, matter was to be referred to Third Judge for majority decision
Credit distributed by Head Office can be availed of even if it isn't registered as Input Service Dis
Cenvat Credit : Distribution of credit by Head Office without taking registration as Input Service Distributor cannot be adopted as a ground for denial of credit
AMP exp. incurred on brand promotion of foreign AE would attract TP provisions
IT/ILT: Where incurring of AMP expenses by assessee towards promotion of brand legally owned by foreign AE constituted a transaction, transfer pricing adjustment in relation to such AMP expenses was sustainable in principle
ITO couldn't levy concealment penalty when gold and cash were found pursuant to search by Excise Dep
IT : Where search and seizure was conducted by Central Excise Department, penalty under section 271(1)(c) was not to be levied by Income Tax Officer as concealment was not conducted by Income-tax Department
RBI to announce new FDI policy for medical devices sector
FEMA/ILT : Clarification on Foreign Direct Investment in Pharmaceuticals Sector
Banks to update their websites on monthly basis with list of unclaimed deposit accounts, inoperative
BANKING : Depositor Education and Awareness Fund Scheme, 2014 - Section 26A of Banking Regulation Act, 1949 - Unclaimed Deposits/inoperative Accounts in Banks - Updation of List of Inoperative Accounts on Their Website
Banks can install offsite cash deposit machines with adequate security arrangements without approval
BANKING : Section 23 of the Banking Regulation Act, 1949 - Installation of Off-Site Cash Deposit Machines (CDMs)/bunch Note Acceptor Machines (BNAMs)
Order passed by ITAT without considering decisions placed on record by assessee wouldn't call for re
IT: Tribunal rightly dismissed assessee's rectification application raising an objection that dictum of decision placed by assessee was not looked into before disposing of appeal because it was a matter to be agitated in appeal
Coconut oil sold under brand name of 'Parachute' was taxable at 4% under U.P. VAT Act
CST & VAT: U.P. VAT - Where assessee was engaged in manufacture of pure coconut oil and same was sold as coconut oil under brand name of Parachute and on packaging it was mentioned 'A premium quality 100 per cent pure edible oil made from finest coconut,' said oil would fall under Entry No. 43 of Part A of Schedule II
Protocol to India-South Africa DTAA requires strict compliance with exchange of info request
IT/ILT : Section 90 of the Income-Tax Act, 1961 - Double Taxation Agreement - Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries - South Africa - Amendment in Notification No. GSR 198(E), DATED 21-4-1998
HC reduced pre-deposit ordered by Asst. Comm. (A) as petitioner's appeal was pending and he had paid
CST & VAT - Kerala VAT - When out of total demand, petitioner had remitted amount of tax, in view of fact that contentions of petitioners had not been considered, 20 per cent of demand would be pre-deposited
ITAT to consider intention of assessee for holding mutual funds to decide tax liability on their sal
IT : Where Tribunal, while holding that profit on sale of mutual fund units was short-term capital gain, did not look into actual intention of assessee and manner in which transactions took place, matter was remanded for fresh consideration
Claim of secured creditors of liquidating-Co. had priority over dues of Sales Tax department
CL: In case of a company which is being wound up, proceeds of its assets must enure firstly to secured creditors and workers and then, if any proceeds remain, it is to be distributed among others including State which may be creditors with unsatisfied demands
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