FEMA/ILT : Guidelines on Import of Gold by Nominated Banks/agencies
Wednesday, 18 February 2015
SC: Sum paid to NR professional for preparation of scheme for raising finance and tie up for loans w
IT/ILT : Where assessee-company, intending to set up a power project, took services of non-resident company who prepared scheme for raising required finance as well as tie up for required loan from Indian and international financial institutions, and loans were availed by assessee, said services would come within ambit and sweep of term 'consultancy service'
Builder was entitled to sec. 54EC relief on sale of land being held as capital asset and not as stoc
IT : Where assessee builder sold property which was held for 30 years and same was shown as land asset not as land stock, asset was capital in nature and assessee was to be exempted under section 54 EC on investment of said capital gain
Issue related to selection or rejection of comparables has to be decided by passing a speaking order
IT/ILT : Issue of selection or rejection of a comparable should be decided by a speaking order
In development agreements capital gain is levied on transfer of possession of land irrespective of t
IT : Where assessee had transferred possession of land and all other rights except title at time of entering into an agreement with a builder, capital gain would not be levied in relevant assessment year in which title of land was transferred
Andhra Pradesh VAT Act doesn’t confer on Commissioner power to defer assessment proceedings
CST & VAT : Andhra Pradesh VAT - Andhra Pradesh VAT Act does not confer on Commissioner power to defer assessment proceedings initiated under section 21
Statement recorded without administering on oath has no evidentiary value, says Delhi CESTAT
Excise & Customs : Any statement made by a person recorded during survey operation has no evidentiary value, if it is not taken by administering oath; hence, any such statement cannot be used to allege clandestine removal
AO can invoke rule 8D when sec. 14A disallowance made by assessee is found unsatisfactory
IT: It is only when voluntary disallowance made by assessee under section 14A is found to be unsatisfactory on examination of accounts, that Assessing Officer is entitled and authorised to compute deduction under rule 8D
Segmental results couldn’t be rejected because it was unaudited and break up was done after closing
IT/ILT: Segmental results determined by assessee could not be rejected merely on ground that accounts segmental results were unaudited or segmental break up was done after accounts were closed
No interest payable for delay in debiting tax payment in CENVAT account if sufficient credit balance
Service Tax : Interest is not payable with respect to delay in payment of service tax payable by debit in CENVAT Account, provided sufficient balance was available in CENVAT Account
No unfair trade practice by insurer as complainant couldn't prove that ad of insurer lured it to pay
MRTP: Where complainant had not produced any evidence to prove false or misleading representation about nature and quality of services by respondent-insurance company or deception having been practiced upon it, luring it to seek insurance and pay high premium, complainant had failed to prove basic ingredients necessary for invoking section 36A
Non-resident co.’s service of preparing finance scheme and arranging national and international loan
IT/ILT : Where assessee-company, intending to set up a power project, took services of non-resident company who prepared scheme for raising required finance as well as tie up for required loan from Indian and international financial institutions, and loans were availed by assessee, said services would come within ambit and sweep of term 'consultancy service'
Govt. notifies new list of agricultural commodities which aren't "taxable commodities transactions"
IT : Commodities Transaction Tax (First Amendment) Rules, 2015 - Amendment in Rule 3
India Offers Wider Duty Cuts At Regional Comprehensive Economic Partnership
India, backed by South Korea and China, has made a two-tier proposal at the Regional Comprehensive Economic Partnership (RCEP), offering wider duty eliminations to the 10 Asean countries in the trade bloc and a lower market access to the five non-Asean members.
In negotiations that concluded late last week in Thailand, New Delhi made an initial offer to give duty free access to 70% of product categories from the Asean countries versus just 40% from the rest, which includes China, Japan, Korea, Australia and New Zealand. Its previous offer was to eliminate duty on 40% items from all 15 countries. "We are comfortable in giving 70% to Asean with whom we already have a free trade pact, but at present it will not be possible to open up so much in the initial offer for the rest," said a government official.
"While we do have an FTA (free trade agreement) with Japan and Korea as well, making a further distinction will only complicate matters. Korea and China are on the same page as us on the matter."
The exact categories that will be given duty-free status will be decided in further deliberations in April, with an end-2015 deadline to conclude negotiations. RCEP is a proposed comprehensive free trade pact among the 10 Asean members of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam and their six partners, Australia, China, India, Japan, Korea and New Zealand, with whom they have FTAs. The plan is to include goods, services, investments, competition and intellectual property under the pact.
India is moving with extreme caution in the regional trade deal, as it faces huge import risk from China, with which it already has a trade deficit of $36 billion even without having any FTAs. India will keep the items which pose a risk to the domestic market out of the pact. In the initial offer, at least New Delhi will not oblige to duty concessions in dairy, textiles, automobiles, machinery, rubber, spices and steel. Lower India access to manufacturing powerhouses of Asia will help protect domestic industry as the government goes about implementing the 'Make in India' programme.
Asean has proposed a formula of three layers of duty elimination for Asean, the FTA partners and non-FTA countries. India has already opened up 79% product lines for Asean under the free trade pact. Its concerns are more about some other members.
"We will not be comfortable giving more than 40% to China, Australia and New Zealand. The real test will be battling the high ambition of Australia and New Zealand.
India also argued that with the tier approach, RCEP will no longer be a common consensus agreement," the official added. India has so far signed FTAs with Asean, Korea, Japan, Singapore and Malaysia, and it is negotiating for similar agreements with New Zealand and Australia.
"The problem is that we are talking about differential tariffs for different countries with different rules of origin. We do not know how that will take off," said Arpita Mukherjee, professor at the Indian Council for Research on International Economic Relations. "The ambition is so low. Who opens 40% in a free trade agreement.
Source:- economictimes.indiatimes.com
Pakistan Imports Items Worth Rs 2.12B From India Via Wagha Border, Rs241.7M Tax Collected
Pakistan has imported items worth Rs 2.12 billion during the first half of February 2015 from India via Wagha Border, while total tax of almost Rs 241.7 million was collected during the said period.
As per detail, Pakistan imported tomatoes, garlic, polyethylene, ginger, cotton yarn, machinery etc from India during first half of February 2015. Pakistan imported 6290394 kg tomatoes worth Rs 291 million, while Rs 17.2 million was generated by getting Income Tax on tomatoes import. On the other hand, garlic 84198 kg, worth Rs 8.6 million was imported and income tax on garlic remained Rs 0.5 million.
Documents show that Pakistan imported 25358 kg fruits (H.S Code 709-6000) from India worth Rs 1.9 million, while the Rs 0.1 million as duty tax and income tax Rs 0.12 million was collected. Ginger worth Rs 100 million was imported; however duty tax Rs 14.9 million and Income Tax Rs 6.8 million was collected.
Pakistan imported vegetable of H.S Code 709-9900 worth Rs 8.8 million and Rs 0.4 million was collected as duty tax and Rs 0.15 million as income taxes. Besides, vegetables like cucumbers, beans, carrots, radishes and other vegetables were also imported.
Pakistan also imported soya bean worth Rs 994 million during first half of February, while duty tax Rs 49 million, sales tax Rs 52 million, additional sales tax Rs 1.3 million and income tax Rs 23 million were collected by Pakistan Customs.
As per detail, Pakistan has imported polyethylene of Rs 174.5 million, while the customs collected Rs 8.6 million as duty tax, Rs 31 million as sales tax and Rs 4 million as income tax. Similarly, polypropylene worth Rs 59 million was imported; while total tax almost Rs 15 million was collected on polypropylene import.
Besides that, Pakistan also imported cotton yarn worth Rs 40.9 million; cotton not combed Worth Rs 431 million and non-woven worth Rs 1 million from India via Wagha border and machinery worth Rs 4.5 million
As a whole, Pakistan import stands at Rs 2.12 billion from India via Wagha Border and total collected tax remained Rs 241.7 million.
Source:- customstoday.com.pk
Govt Taking Right Steps To Boost Domestic Coal Industry
One of the most common assumptions among coal watchers is that India's rising demand will translate into increasing imports, thus providing one of the few bright spots for a beleaguered industry.
While there is little doubt about the bullish demand outlook for India, the belief that imports will have to rise is predicated on the view that domestic coal output will continue to disappoint.
If history is a guide, then this is a safe bet, with state-controlled behemoth Coal India consistently failing to meet output targets and battling to supply enough fuel for the South Asian nation's electricity generators.
India's coal imports have steadily risen and gained 19 per cent last year to 210.6 million tonnes, making the country the world's second-biggest importer after China and ahead of Japan.
But it may pay to heed a warning that accompanies financial products that past performance isn't necessarily a guide to future outcomes.
There are signs that India is taking the right steps to boost its domestic coal industry, and while these won't necessarily bear immediate fruit, it's always worth watching the trend.
Once trends start, it becomes difficult to stop them. Just ask any coal miner who exports to China, which has gone from being the industry's greatest hope for long-term growth to the bleak prospect of a declining market.
The new government of Prime Minister Narendra Modi has shown some determination to reform India's vast coal sector, starting with making Coal India more efficient.
The government raised about $3.6 billion by selling a 10 per cent stake in Coal India last month, part of its plan to raise $10 billion by selling assets.
But more important, from a coal market perspective, than the cash raised was the level of interest shown by investors, with the share offer oversubscribed.
This is not only a vote of confidence that the government is prepared to tackle the bureaucratic issues holding Coal India back, but also will act to improve the company's rather dismal operational record.
Having more private investors on board will help drive change within Coal India, given fund managers are likely to push for improved returns and ask uncomfortable questions of management should they fail to deliver.
India is also pushing ahead with plans to open up the coal mining sector to private and international investors, Piyush Goyal, the coal and power minister, said on January 8.
This comes despite union opposition to the move, however a planned five-day strike in January was called off after two days when the government assured a committee would be formed to address worker concerns over the process.
So far global miners have been cool on the prospect of investing in India, most likely because of complex bureaucratic procedures and a playing field titled in favour of Coal India.
The coal divisions of the large miners are also hamstrung by the current low price environment, meaning limited cash available for new investments and management focus on trying to run existing operations as efficiently as possible.
It's more likely that private Indian companies will seek to get into domestic coal mining, with several expected to bid for blocks.
These private companies, which could include GVK and Adani Group have experience in mining, as well access to newer technologies and expertise.
If they do enter the market, they will no doubt be more efficient that Coal India, once again putting pressure on the state giant to lift its game.
India aims to double annual coal output to 1.5 billion tonnes by 2020, an ambitious target that if achieved would probably eliminate much of the need for imported fuel, especially thermal coal for power generation.
It's still very early days in getting anywhere close to that target, and it will be worth watching to see if Coal India does make efficiency and output gains, if the government can manage to cut red and green tape and how much private companies are willing to invest to get a foothold in the industry.
The main point is that the risks to India's domestic coal output are no longer to the downside. If anything, the risk is now that production will surprise on the upside, maybe not immediately but certainly over the next few years.
This represents a further blow to export-orientated coal miners in Australia, Indonesia and South Africa, as the last thing they want to see is an early peak in Indian imports.
Source:- businesstoday.intoday.in
India May Consider Sugar Export Subsidy On Thursday - Govt Source
India, the world's second biggest sugar producer, could consider subsidy for raw sugar exports at a cabinet meeting on Thursday, a top government source said on Wednesday.
Food Minister Ram Vilas Paswan said last week the government could give export incentives for 1.4 million tonnes of raw sugar as mills start distress sale to pay cane farmers.
The source also said the government had no immediate plans to export wheat from overflowing warehouses but could sell locally.
Source:- in.reuters.com
ITAT denies to condone delay on basis of vague affidavit of CA; raises questions on his work ethics
IT: It is unbelievable that an assessee, who is assessed for 2 years at a high income resulting in a huge tax and interest demand, has not visited the CA office almost for a period of about one year to know about the filing of the appeals. There is no deposition in the affidavit of CA filed by assessee that prior to TRO notice, no other notice by way of telephone or writing was received either by assessee or the CA. Thus, the depositions in affidavit remain vague, unsubstantiated and do not amou
Pre-deposit has to be waived off if assessee’s case is prima facie covered by a binding precedent
Service Tax : Pre-deposit must be waived in case of a good or strong prima facie case and, for that purpose, appellant need not satisfy appellate authority that his case is foolproof and is bound to succeed; it means that case is arguable one and fit for trial, or prima facie covered by a binding precedent
Even remand order of Tribunal isn’t appealable to High Court if issue is related to classification o
EXCISE & CUSTOMS : Where issue involved is classification of goods for determining rate of duty, even Tribunal order remanding case back to adjudicating authority for consideration of classification issue afresh, is not appealable to High Court
Using credit of subsequent month to pay duty of previous month would invite penalty
Cenvat Credit : In case of default in monthly payment, use of CENVAT credit during next month for payment of duty relating to previous month cannot be faulted with; at best, it can be said to be procedural violation for which penalty may be levied
Allottee couldn't accuse developer of unfair trade practice when he himself didn't comply with terms
Competition Law : Where complainants had failed to abide by general conditions and terms and conditions of allotment, they had disentitled themselves from contending that respondent corporation was guilty of restrictive/unfair trade practice
Sum paid by power generating Co. to erect transmission lines for sake of its customer was revenue ex
IT : Borrowed fund being utilised for earning assessable income, no interest was to be disallowed
Assessee couldn't be said to have suppressed facts if action was taken against him in past on same s
Excise & Customs : Where earlier proceedings on same subject matter have already been decided against a party, there is no question of suppression of facts, wilful mistake, fraud, etc., warranting invocation of extended period for subsequent period
Penalty wasn't justified as assessee had produced relevant docs on very next day of notice
CST & VAT : Rajasthan VAT - Where Assessing Authority imposed penalty upon assessee under section 76(6) on plea that it did not produce declaration form at time of checking of goods under transit, since assessee had furnished declaration form on very next day of giving of notice and there was no finding that such declaration form or bills or bilties already found with transit were false, forged or unreliable, imposition of penalty was not justified
HC directs department to complete adjudication and refund ST paid under protest if demand would be d
Service Tax : Where department had raised notice and assessee had paid service tax under protest along with challenging notice in writ, High Court directed department to complete adjudication and refund service tax, if demand is dropped
Retainership charges paid to NR agents to promote business in foreign country would be outside the a
IT/ILT: Retainership charges paid by assessee to overseas non-resident agents to promote its business in foreign countries would not fall within meaning of 'Fee for technical services' under section 9(1)(vii)
Derivate trading via stock exchange couldn't be held as speculative due to delay in recognition of s
IT : Derivate trading via stock exchange couldn't be held as speculative due to delay in recognition of such exchange
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