No sec. 54F relief even if assessee was joint-owner of more than one house on date of sale of asset;

IT : Where assessee on date of sale of long-term capital asset owns more than one residential house even jointly with another person, benefit under section 54F in respect of capital gain arising from sale of asset was to be rejected

Interest paid by Indian branch to its overseas head office wasn't taxable on principle of mutuality

IT/ILT: Interest paid by Indian branch to its head office/ overseas branches not taxable in India on principles of mutuality

Tribunal has power to extend stay beyond 365 days after recording reasons thereof

Excise & Customs : Tribunal may extend stay beyond 365 days only if delay in disposing of appeal is not attributable to assessee and said extension may be granted only after recording reasons therefor

CIT can’t consider violation of provisions of sec. 13 while granting registration to a trust

IT : Provisions of section 13 couldn't be applied to deny registration to a trust or an Institution under section 12A - It shall be applied to decide deduction to be allowable to a trust or an Institution while completing assessment proceedings

Demand couldn't be confirmed on basis of statement of witness who didn't appear for cross examinatio

Excise & Customs : In confirming demand, no reliance can be placed on statement of such witness who has not subjected himself to cross examination by affected party

Developer's failure to deliver plot and asking for additional sum from allottee was unfair trade pra

Competition Law : Non-delivery of possession of plot allotted to complainant and demand of additional price amounts to unfair trade practice; complainant entitled to refund of excess amount and interest from date of deposit till date of actual refund

No reassessment to disallow exp on alleged TDS default if same was allowed after considering tax aud

IT/ILT : No reassessment to disallow exp on alleged TDS default if same was allowed after considering tax auditor report

HC couldn't condone delay in filing request seeking reference on question of law under Bombay Sales

CST & VAT : Bombay VAT - Where revenue had filed an application under section 61(1) of Bombay Sales Tax Act before High Court belatedly seeking reference of certain questions of law to the Court by invoking powers under section 61(2) and sought condonation of delay caused in filing application, High Court had no power to condone delay in filing of application

ITAT couldn't set aside penalty levied by I-T authorities without pointing out any reasons: HC

IT : Where revenue authorities passed a penalty order under section 271(1)(c) on basis of additions made in course of special audit, Tribunal could not have set aside said penalty order without coming out with better reasons and without pointing out where lower authorities had gone wrong

Sum paid to AE to avail its professional service for business was reasonable; no disallowance under

IT : Payment of professional fee by holding company to its subsidiary company would be covered under sub-clause (vi)(B) of section 40A(2)(b)

Broker executing self trades to create misleading appearance of trading has violated unfair trade no

SEBI: Appellant-broker violated regulations 3 and 4 of PFUTP Regulations and regulation 7 of Brokers Regulations by executing self trades to create false and misleading appearance of trading in securities market

Sum paid to AE to avail its professional service for business wasn't reasonable; no disallowance und

IT : Payment of professional fee by holding company to its subsidiary company would be covered under sub-clause (vi)(B) of section 40A(2)(b)

Mirror assembly, saree guard and tool kit are 'parts' of motor cycle; eligible for Cenvat credit

Cenvat Credit : Mirror assembly, sari guard and tool kit used in manufacture of motorcycle are 'parts' of motorcycle and are eligible for Cenvat credit as inputs, more so, because value thereof is included in value of motorcycle

Govt. announces 'Safe Harbour Rules' for specified domestic transactions undertaken by Govt. Electri

IT/ILT : Income-Tax (Second Amendment) Rules, 2015 - Amendment in Rules 10D, 10TA and Insertion of Rules 10TH, 10THA, 10THB, 10THC, 10THD and Form 3CEFB

270 Indian Firms, Trade Bodies To Attend Food Fest In Dubai

As many as 270 Indian companies and trade associations, including the likes of Priyagold and Parle, will take part in a major food exhibition here to showcase their products and exchange ideas.

In one of the largest such gatherings, besides the indigenous companies and trade associations, many government organisations will be participating in the 'Gulfood', scheduled to be held from February 8-12.

India has actively and regularly participated in Gulfood and this year is no exception, a statement from the Indian consulate in Dubai said.

Major Indian brands showcasing their products at the expo are Allanasons, Amira, Bonn, Cremica, Dukes, India Gate, Parle, Priyagold, MTR, Mothers Recipe, Ramdev and Rasna among others.

The major government enterprises expected to take part in the expo are the Agricultural & Processed Food Products Export Development Authority (APEDA), Cashew Export Promotion Council, Coffee Board of India, Indian Oilseed & Produce Export Promotion Council and the Tea Board of India.

The assortment of products and services that would be available at the expo range from agro commodities, biscuits, frozen meat, cashew, coffee, fruit beverages, oilseeds, processed food, ready-to-eat foods, rice, spices, tea among others.

India is one of the world's major food producers but accounts disproportionally less in the international food trade arena. This indicates vast scope for both investors and exporters, it said.

The Indian food sector was valued at $157 billion in 2012 and is expected to reach $258 billion by 2015.

The food processing industry is 32 per cent of the total food market and is one of the largest industries in India.

India's worldwide export of all agriculture products in 2012-13 was $37 billion whereas during 1998-99 it stood at just $5.8 billion.

Food items (cereals, sugar, fruits & vegetables, tea, meat and seafood) comprise Indian exports to the UAE, India's third largest trading partner for the year 2013-14 after China and US with a trade value of nearly $60 billion.

Source:economictimes.indiatimes.com

India’S Export Duties To Come Under Increased Scrutiny

India’s duty on iron ore exports is one of its most controversial: the country currently levies a heavy 30 percent duty on the mineral. The tax has been having an especially adverse effect on exporters. An estimated 12 million tons of low-grade iron ore has been sitting at various Indian ports for several months, with buyers unwilling to pay the high export duties.

Once the world’s third largest exporter of iron ore, India’s output of the mineral has been in drastic decline since 2010, when the government increased export duties and began targeting illegal mining operations. Supply to China, India’s largest export market for iron ore, fell to US$61.30 a ton this week – the lowest amount since May 2009. Consequently, local experts expect the duty on iron ore exports to be scrapped at the upcoming budget session.

The export duty on bauxite was raised from 10 percent to 20 percent in 2014. The hike had a big impact on neighboring China, who in 2013 bought up 90 percent of India’s exports of the mineral.

The rise in bauxite’s export duty was intended to boost domestic availability and consumption of the mineral. However, according to a research report published by Citigroup, supply of bauxite will not be sufficient to satisfy global demand this year. As one of the world’s top producers of bauxite, India’s export duty on the mineral will be particularly important for countries heavily reliant on it, such as China.

Exporters should be fully versed in India’s export duty law, which is contained in the Customs Tariff Act and is governed by the Central Board of Excise and Customs (CBEC). Exports fall under Schedule 2 of the Act, and the Indian government has full discretionary power to either reduce or abolish existing export duties during its annual budget sessions.

Under current regulations, most goods can be organized for export by simply paying its export duty, where applicable, and without obtaining a license. It is only if items are listed in Schedule 2 of the Indian Trade Classification (ITC) Harmonized System (HS) that a company will either need to obtain the relevant license, or be unable to export the product at all.

Products listed in Schedule 2 of the ITC (HS) will either be restricted or prohibited. Restricted goods become available for export once a company has obtained the appropriate license, which are granted by the DGFT on a case-by-case basis. Prohibited goods are ones that cannot be exported at all.

Source:india-briefing.com

Masala powder was taxable at 12.5% under Karnataka VAT Act

CST & VAT : Karnataka VAT - Masala powder would not fall under Entry No. 89 of Third Schedule to Karnataka VAT Act and was liable to be taxed at rate of 12.5 per cent

'ING Vysya Bank' couldn't be held as assessee-in-default merely because it didn't dispute show cause

IT: Matter remanded for reverification where Assessing Officer treated assessee in default under section 201(1) merely because assessee did not dispute show-cause notice issued under section 201

India May Cut Iron Ore Export Duty For Goa

India is considering cutting the export duty for the low-quality iron ore produced by the country's biggest exporting state Goa, the mines and steel minister said, a move that could boost shipments to China and put more pressure on global prices.

The idea was welcomed by top private miner Sesa Sterlite Ltd, though some steel companies were critical.

Goa is expected to resume iron ore production by April after action against illegal mining kept the industry shut for over two years. The state has about 8 million tonnes of ore waiting at ports that has not got a buyer due to 30 percent duty.

Most Indian steel companies lack the technology to use Goa's iron ore, which has an iron content of less than 58 percent. Chinese companies buy that ore but multi-year-low prices have made higher quality ore more appealing.

This has prompted the mines and steel minister, Narendra Singh Tomar, to request that the finance minister implement a different duty structure for Goa.

"We've said that Goa's ore is different from the ore found elsewhere in the country," Tomar told reporters on Thursday. "The finance ministry should look at it differently. We can hope of something before the budget (on Feb. 28)."

But there would be no change for ore produced in other states until there is an abundance of ore for local steel firms.

India used to be the world's third-biggest iron ore supplier until court-imposed curbs from 2010 hit supply, swelling imports to a record 8 million tonnes last year, according to commodities consultancy OreTeam.

Sesa welcomed Tomar's recommendation and urged the government to completely withdraw the duty for Goa.

"A withdrawal of the duty will support the restart of the mining industry in Goa," said Aniruddha Joshi, a Sesa vice president.

Steel companies such as JSW Steel, however, say India should not export raw materials without adding value, and that they are investing in technology to use Goa's ore.

JSW and Jindal Steel and Power have also been struggling with rising steel shipments from countries like China and Russia, forcing them to seek government help.

"We'll surely find a solution of the problem of dumping soon," Tomar said. "We can't put a brake, so there is no other option (than raising the duty).

He did not say by how much the duty might be raised, a decision on which could come before the budget. Currently India imposes tariffs in the range of 5-7.5 percent.

Source:business-standard.com

$11.49B Earnings, 80% Of Total Exports: Textile Industrialists Slam ‘Additional Duty’ On Cotton Yarn Import From India

Pakistan Apparel Forum Chairman Jawed Bilwani, criticising the government’s proposal of imposing additional duty on import of cotton yarn from India, said that there was already 5 percent import duty on the product, which should be withdrawn.

He alleged that this proposal on the behest of some large spinners having integrated units would greatly hamper cost of doing business of value added textile sector, the sector exports earnings stood at $11.49 billion yearly more than that of these spinners.

Spinners lobby always voiced vociferous support for free market mechanism and neither rein on imports of cotton yarn nor any duty on import of cotton yarn.

Value added textile sector would find it expensive to import yarn from India, which otherwise they could import if there was absolutely no duty imposed by our government thereby greatly enhancing their exports.

Value added textile sector will be unable to import cotton yarn from India owing to current 5 percent import duty and proposal of additional import duty, this will greatly increase their cost of doing business.

Value added textile export sector contributing more than 80 percent of total exports of country and generates employment around 38 percent of the total employment of industries needs protection.

Textile exports of Bangladesh stood at $24 to $25 billion despite the fact they did not grow cotton and import yarn.

Source:customstoday.com.pk

Advance received for warranty services to be rendered in second year couldn't be held as income on r

IT : Advance money received by assessee from buyers of television sets for future service could not be treated as income of year of receipt

Exemption granted under sec. 80G would be on perpetual basis; no need to make fresh application for

IT : Where assessee was granted exemption under section 80G, there was no need for assessee to make fresh application as same was perpetuity in nature

Rupee Opens Lower At 61.89 Per Dollar

The Indian rupee on Thursday weakened against the dollar, tracking weak local equity markets. The local currency opened at 61.89 per dollar. At 9.10am, the rupee was trading at 61.85 per dollar, down 0.16% from its previous close of 61.75.

India’s benchmark Sensex was trading at 28,922.94 points, up 0.14%. Since 29 January, the Sensex has declined over 800 points and foreign investors has sold equities worth Rs.1,750 crore, according to provisional data from the stock exchanges.

Most of the Asian currencies were trading mixed against the dollar. The Malaysian ringgit was down 0.39%, South Korean won 0.34%, Indonesian rupiah 0.1%, Chinese renminbi 0.1%, Philippines peso 0.07%. However, Thai baht was up 0.2%, Taiwanese dollar 0.13%, Japanese yen 0.8%.

The yield on India’s 10-year benchmark bond stood at 7.703% compared with its Wednesday’s close of 7.719%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has strengthened 1.9% against the dollar, while foreign institutional investors have bought $2.75 billion from local equity markets and bought $4.42 billion from debt markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.301, up 0.34% from its previous close of 93.986.

Source:livemint.com

SC : Complaint against dishonouring of cheque could be filed by a attorney holder

Negotiable Instruments Act: Complaint under section 138 can be filed through power of attorney holder

HC quashed reassessment notice as it was issued without issuing sec.143(2) notice

IT : In absence of notice under section 143 (2), issuance of notice under section 148 would not be sustainable

Issue as to 'rate of duly' applicable to rejected goods supplied by EOU to DTA wasn't appealable bef

Excise & Customs : Where issue involved is 'whether clearance of rejects by 100 percent EOU to DTA is eligible for concessional clearances', said issue cannot be raised in appeal before High Court.

Even sum paid for usage of building to facilitate inspection of goods and not for their storage woul

IT : Payments made by freight forwarding agent for use of premises at CFS for facilitating inspection of exporters' goods by customs/other authorities is "rent" u/s 194-I even though such premises are not used for storage of goods and assessee gets reimbursement of these payments from its exporter-client. Payment for use of building is 'rent' whether it is used for storage or other purposes. Definition of 'rent' in section 194-I makes it unambiguously clear that rent is a payment for the use of

To calculate value for advance licence, exports shall be taken of year preceding year of making appl

Excise & Customs : Where assessee had applied for advance authorization on 14-3-2012, preceding year would year 2010-11 and not year 2011-12, even if authorisation was issued on 9-5-2012; because, issuance of authorisation is a mere communication acceptance of assessee's application