CL : Where arbitrators failed to appreciate and draw inferences that logically flow from proved facts resulting in miscarriage of justice, arbitral award will be open to challenge and may be cast away or modified
Thursday 26 February 2015
Interest on sums lent to foreign AE is to be benchmarked at LIBOR and not at domestic prime lending
IT/ILT : While benchmarking international transactions where assessee had advanced money to its AE and charged interest, international rates fixed being LIBOR + rate would be applicable and not domestic prime lending rates
AO couldn’t make addition of deemed dividend when assessee wasn’t a shareholder of lending Co.
IT: Where assessee itself was not shareholder of lending company, addition made by Assessing Officer by invoking provisions of section 2(22)(e) was not sustainable
No Wheat Export From Government Stocks: Food Secy
The government will not export its surplus wheat stock this year and will continue to offload the grain in the domestic market despite estimates of bumper wheat production.
Private traders can export wheat under the open general licence (OGL) scheme, Food Secretary Sudhir Kumar told PTI.
After lifting of ban on wheat export in September 2011, the government has exported nearly 6 million tonnes of wheat from FCI godowns during the 2012-13 and 2013-14 fiscals. However, there have been no shipments so far this financial year.
"We have no plans to export wheat this year. There will be no export from the official channel. Private traders can do it under the open general licence (OGL) scheme," Kumar said.
"We will offload our stocks in the domestic market and not in the international market even if it is viable," he added.
The government is already sitting on a wheat stock of 25 million tonnes as on January 1, much higher than the actual requirement of 13.8 million tonnes, as per the FCI data.
Moreover, the wheat production is estimated at 95.76 million tonnes in 2014-15 crop year (July-June) against 95.85 million tonnes in the last year.
The crop is ready for harvesting from April onwards. The government aims to procure 30 million tonnes of wheat this year to meet requirement of ration shops, further putting pressure on stocks.
Noting that the government has already started offloading surplus wheat in the domestic market under the open market sale scheme, Kumar said that the Food Corporation of India (FCI) -- the nodal agency for foodgrains procurement and distribution -- has sold about 3.5 million tonnes so far. Wheat is being sold under OMSS to boost domestic supply and check prices.
Asked if it has fixed a quantitative limit for wheat sale under OMSS, Kumar said, "This time, there is no quantity fixed. There is an open offer to sell anything above the buffer norm. Earlier, we used to take approval for fixed quantity, but there is no such system now."
At present, the wheat grown in the 2013-14 crop year is lying with FCI. "They have started offloading and have sold about 3.5 million tonnes so far this year." he added.
On poor response to OMSS sale in the previous years, the Secretary said, "We have sold about 6 million tonnes each in the last two years. It is not a small quantity, could have been more. But it depends on the buyer." India is the world's second largest producer of wheat.
Source:economictimes.indiatimes.com
HC orders deposit of 10% of disputed demand to avoid undue hardship on assessee
CST & VAT: U.P. VAT - Where Tribunal had stayed 80 per cent of disputed amount of tax, order of Tribunal was modified by directing assessee to deposit 10 per cent of disputed tax and to furnish security for 90 per cent of balance tax
AO couldn’t make addition of unaccounted stock when he failed to point out defects in book of accoun
IT : Where Assessing Officer could not point out any defect in books of account maintained by assessee, he was not supposed to make addition of unaccounted closing stock being difference in stock on mathematical calculation
Coal Block Auctions Will Lead To Level Playing Field For All
Chandra Shekhar Verma, chairman and managing director, Steel Authority of India (SAIL), talks about steering the company in the current tough times, when local as well as global demand is depressed. He shares his action plan for the next 10 years and talks about his five years at the helm. Excerpts:
Globally, steel production growth has been tepid with only 2% increase in the calendar year against 3.5% in the corresponding period a year ago. There is surplus capacity of about 23-24% as utilisation is low. Demand in India is better than what it is globally. In April-December, production has grown at 5.3%. However, there has been a surge in imports — to 7.4 million tonne (mt) from 4.6 mt in the first three quarters of the current fiscal. Due to the SIPA agreement, there is a lot of import from Japan and Korea.
After consumption peaked in China, the country has been exporting steel to India as well. The depreciation in the rouble has also led to greater imports.
The demand situation should settle down and it is not a great cause of worry. However, companies importing to India have to bear freight and logistical costs also and, hence, the surge in imports should be temporary. The demand scenario in India is likely to improve as the country and the emerging markets as a whole remain the demand centre. Our per capita steel consumption is abysmally low at 55 kg per annum against the global average of kg p.a., which will only improve as we catch up and urbanise more. Further, a number of new initiatives by the government will gradually boost demand. We have also taken steps to multiply capacity.
We are the sole bidder for the block reserved for steel sector among the mines earmarked for PSUs. We will also be taking part in the next round of auctions to procure more coal blocks. These auctions will provide a level playing field for all companies and facilitate faster development of coal blocks. We will be able to take the advantage of our own coal blocks as we have enough knowhow in the mining. Today, we are operating four coal mines and, along with the Mozambique mine, we are mining 30 mt coal on our own.
We are not averse to acquiring global assets, but we have to keep an eye on location and market situation domestically as well as globally. We are getting 3-4 shipments of more than 1 lakh tonne currently from Mozambique and also working out the logistical issues, which will enable us to bring more coal from there.
We have a planned expenditure of Rs 72,000 crore. Capex for the individual year has been Rs 8,000-10,000 crore per year and, this year, it will be about Rs 9,000 crore. We have prepared vision 2025 to enhance capacity to 50 mt from 23.46 mt, which will involve a total capex of Rs 1,50,000 crore.
funds will come through debt and equity in equal proportion as opposed to our current expansion plan, which is being funded with two-third equity and one-third debt.
The Rourkela and Burnpur plants have started producing. In conjunction with Bhilai, production will reach 23.46 mt per annum next year. Demand in India is not likely to slump in the foreseeable future — cement-steel mixing ratio is not adequate here as for every tonne of cement used in construction, only 0.3 tonne steel is used. In developed economies, the ratio is 1:1. India is slowly becoming quality conscious and there is a preference for pre-fabricated steel and cement structure. Considering that 50-60% of steel is used in the infrastructure and construction sector, as we move to more qualitative products, steel demand will only go up.
Source:financialexpress.com
Indian Meat Exporters Optimistic Over Russian Opportunities
India is to begin exports of meat and dairy products to Russia by mid-2015, with the first shipments of buffalo meat due to take place in the coming months, according to official statements from the Russian Industry and Trade Ministry.
Indian companies are currently waiting for a decision from Russian veterinary body Rosselkhoznadzor on the list of approved suppliers.
"We are confident that, in the near future, our companies will be allowed to deliver their products to Russia," said director general of the Federation of Indian Export Organisations (FIEO) Ajay Sahai.
FIEO has complained that the contracts on the supply of buffalo meat to the Russian market are still not signed, although Rosselkhoznadzor actually allowed imports of this product from four companies in India in December 2014.
The Russian veterinary body is also continuing its inspections of the Russian market with the intention to grant further export rights to other companies.
Officials from Rosselkhoznadzor have confirmed that, at the end of 2014, they inspected six other meat producing companies in India and, according to preliminary information, in each case Russian vets were satisfied with the quality of the products and safety of the production process.
As a result, Indian companies expect the range of products eligible for export to expand, before the first deliveries are expected later this year.
"The imminent start of supplies of meat and milk from India are equally important for both sides [for Indian producers and Russian market]," commented a source at the Russian Industry and Trade Ministry.
He also referred to the Russian ban on supplies from the European Union (EU) and the US and that it currently faces the risk of a deficit in certain categories of meat products, while for exporters in India this was the first chance to reach a new and very promising market.
According to Russian experts, the prospects for exports of meat products from India to Russia are now clearer than several months ago. Russian agricultural analyst Eugene Gerden said that following the selection of Narendra Modi as the country’s Prime Minister in mid-2014, there was a possibility that negotiations on the launch of supplies of buffalo meat to Russia faced deadlock.
"It was known that representatives of the current government previously spoke against developing exports of buffalo meat for religious reasons, but new steps towards establishing supplies to Russia show that the authorities do intend to develop this area of bilateral trade," said Gerden.
Source:globalmeatnews.com
SEBI releases FAQs for Investment Advisers
SEBI : FAQs on SEBI (Investment Advisers) Regulations, 2013
Issue relating to promotion of ACIT is first appealable before Central Administrative Tribunal, rule
IT: Where petitioners working on different posts with respondent/CBDT, raised a grievance with regard to their promotions, they were required to approach Central Administrative Tribunal (CAT) in first instance and, thus, writ petition filed by them was not maintainable
Commerce Ministry Seeks Cut In Gold Import Duty
With a decline in gold imports, Commerce Ministry has sought reduction in import duty on gold, a step that could boost exports and manufacturing of gems and jewellery.
"We have been asking for a cut in gold import duty," Commerce Secretary Rajeev Kher told reporters here on the sidelines of a CII function.
In its Budget proposals, the Ministry has suggested the Finance Minister to consider reduction in import duty on the yellow metal.
The industry has sought reduction in customs duty on gold to two per cent, from 10 percent now.
The gems and jewellery sector, which employs about 3.5 million people, would get a boost from the move.
Gold imports in December declined sharply to 39 tonnes, from 152 tonnes in November. Exports of gems and jewellery too declined by 1.2 per cent year-on-year to USD 2.66 billion in December.
The sector is one of the 25 thrust areas identified under the 'Make in India' programme. The campaign aims at attracting domestic and foreign investments to boost manufacturing and create jobs.
The government had raised the import duty on gold to contain the widening current account deficit.
Source:zeenews.india.com
Rupee Strengthens To 61.89 Per Dollar
The Indian rupee strengthened against the dollar in the mid day trading on Thursday amid caution ahead of the Union budget due on Saturday.Traders will also keep an eye on the annual economic outlook survey on Friday.
The local unit opened at 61.94 per dollar and touched a high of 61.83 per dollar, a level last seen on 6 February. At 2.54pm, the home currency was trading at 61.89, up 0.14% from previous close of 61.97.The Sensex index fell 0.63%, or 183 points, to 28,840.07 points.
The yield on India’s 10-year benchmark bond was trading at 7.729% compared with its Wednesday’s close of 7.707%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has gained 1.78%, while foreign institutional investors have bought $3.42 billion from local equity and $5.05 billion from bond markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.257, up 0.05% from the previous close of 94.213.
The ratings agency S&P raised its India gross domestic product growth forecast to 7.9% from 6.2% for the year ending March 2016, citing as well rising investment and low oil prices. The agency also raised its growth forecast for fiscal year 2016-17 to 8.2% from 6.6% previously.
Source:livemint.com
Confiscated goods can’t be auctioned during pendency of appeal without prior approval of appellate C
Excise & Customs : During pendency of appeal, confiscated goods cannot be auctioned without prior permission of appellate court; High Court directs department to pay value of goods on date of seizure, with applicable interest
HC orders pre-deposit in cash as assessee was continuously using credit during withdrawal of Cenvat
Excise & Customs : Where, having defaulted in payment of duty beyond 30 days, assessee continued to use credit to pay duty despite prohibition on Cenvat use under rule 8(3A), assessee was liable to pre-deposit duty in cash with applicable interest
No revocation of trust’s registration alleging misuse of funds by trustees if trust was fulfilling i
IT : Where assessee-trust was fulfilling its main object of imparting education, registration of trust could not be cancelled only on basis that trustees were misappropriating funds of said trust
MCA notifies Form for filing info to rectify defects or incompleteness in e-forms filed with it
COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Registration Offices and Fees) Amendment Rules, 2015 – Amendment in Rule 10 and Insertion of Form No. GNL-4
No TDS on sum paid for extra cost incurred by contractor due to delay in completion of work by sub-c
IT : Amount paid by sub-contractor to main contractor on account of extra costs that main contractor had to incur due to delay in completion of work by sub-contractor was not liable to TDS under section 194C
Assessee couldn't demand stay on recovery proceedings due to pendency of restoration application in
Excise & Customs : Application for Recall/restoration of Tribunal order has to be disposed of, one way or other by Tribunal itself on merits; but, assessee cannot claim a stay on recovery merely because a recall application has been filed (or is pending)
Revised monetary limit for filing appeal would also apply to pending appeals, rules Gujarat High Cou
Excise & Customs : In view of Instruction F. No. 390/Misc./163/2010-JC, dated 17-8-2011, tax appeal below Rs.10 lakh is not maintainable before High Court and this instruction also applies to pending appeal filed/admitted before 17-8-2011
Revised monetary limit for filing appeal would also apply to pending appeals, rules Gujarat High Cou
Excise & Customs : In view of Instruction F. No. 390/Misc./163/2010-JC, dated 17-8-2011, tax appeal below Rs.10 lakh is not maintainable before High Court and this instruction also applies to pending appeal filed/admitted before 17-8-2011
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