IT : Where certain assets forming part of block of assets were converted into stock-in-trade by deducting nominal value of Rs. 1 from block of assets and whenever same were sold surplus was offered for taxation, depreciation on said asset could not be disallowed by reducing value of same from block of assets
Tuesday 10 March 2015
Keyman Insurance Premium paid by firm for its partners was allowable as business exp.
IT : Where partnership firm obtained insurance policy on life of two partners, expenditure was incurred for benefit of firm and same was allowable under section 37(1)
Repair and maintenance during warranty period can't be regarded as 'exempted service' for Cenvat pur
Cenvat Credit : Repair and maintenance during warranty period where customer was not charged anything on value of goods incorporated in service cannot be regarded as 'exempted service' for Cenvat Credit purposes
SC: Lessor rightly demanded transfer fee from respondent-Co as it transferred industrial plot to fam
CL: Where respondent-companies' shareholders transferred their company/shares to new shareholders for material financial gains, without taking written consent of lessor i.e. appellant-corporation, this adversely affected aims and objectives of appellant-corporation and amounted to transfer of interest, hence, appellant-corporation rightly issued notice demanding transfer fee
Co. having related party transactions of more than 15% is excludible from list of comparables
IT/ILT : Comparable having RPT at more than 15 per cent should be excluded from comparable list as 15 per cent is cut off mark for applying RPT filter
CBDT authorizes CIT(E) to act as prescribed authority u/s 10(23C) with effect from Nov 15, 2014
IT : Section 10(23C)(vi)/(via) of the Income-Tax Act, 1961 - Exemptions - University/educational Institutions/hospitals - Prescribed Authority - Supersession of Notification No. 76/2014[F.No. 153/41/2007-TPL]/SO 3027(E), Dated 1-12-2014
India Manages To Defend Raw Sugar Export Subsidies At Wto, For Now
India has managed to ward off criticism at the World Trade Organisation (WTO) for its raw sugar export subsidies by once again claiming that it has not made any payments under the programme. However, the country’s defence is unlikely to work for long as subsidy payments are slated to kick-off soon.
The Food and Public Distribution Ministry was recently sanctioned the first tranche of subsidy payment due to exporters for last year, a Food Ministry official told BusinessLine.
“While no export subsidy payments have yet been made for the period between February (when the incentive scheme had been announced) and September 2014, the Ministry has now been sanctioned ?200 crore (around $32 million) to be paid out to raw sugar exporters for the period,” the official said.
The subsidy payments, claimed by 80 sugar mills from Maharashtra, Karnataka, Tamil Nadu and Gujarat, is likely to be paid out from March 15, according to industry officials.
Several WTO members, including the European Union, Australia and Colombia, were critical of India for announcing export subsidies for raw sugar in February last year, accusing India of going against the understanding reached at the WTO’s Bali Ministerial meeting in December 2013, which said all export subsidies would be reduced and gradually eliminated.
Since India is a major producer of sugar and also exports from time-to-time, these countries claim that such export subsidies distort the world market.
In the WTO committee of agriculture meeting last week, many countries questioned India about the recent announcement of increasing raw sugar export subsidy to ?4,000/tonne in 2015 from ?2,277-3,371/tonne between February and September 2014.
India’s representative reiterated the argument made in the last meeting that it was not answerable on the subsidies, as no payments had been made yet. On the EU’s question about its intention to give payments in the future, the Indian representative said it was only providing facts.
India had earlier defended its raw sugar export subsidy programme on the grounds of encouraging sugar producers to diversify from refined to raw sugar.
“This is a valid justification for our subsidy programme and we will reiterate it if our small subsidy payments are questioned,” a Commerce Ministry official told BusinessLine.
Last year, the Centre had announced a subsidy for exports of raw sugar up to 4 million tonnes to help the cash-starved industry clear cane arrears to farmers that have crossed ?14,500 crore.
The Indian Sugar Mills Association estimates production at 26 million tonnes in the current marketing year, against last year’s 24.3 million tonnes. Domestic demand is pegged at 24.8 million tonnes for this year.
Source:- thehindubusinessline.com
Pesticides Issue Cleared, Tea Exports To Iran Will Rise This Year
Exports of premium Indian orthodox tea to Iran are expected to double this year as both countries have sorted out the pesticide issue that hurt shipments, said industry executives. Tea planters are aiming to export 30 million kg to Iran in 2015.
The countries have set up a joint working committee comprising representatives from both countries to facilitate tea trade, said Azam Monem, vice-chairman of Indian Tea Association. "The committee is responsible to remove technical obstacles and facilitate trade. We have been able to communicate to the Iranian government and all stakeholders in tea trade there that Indian tea is not at all harmful," he toldET.
Representatives of Indian tea trade and government officials recently visited Iran to improve trade ties between the two nations and clear the air following allegations that shipments from India contained traces of pesticides.
Representatives from Iranian tea trade are scheduled to visit India next month. The countries have signed a MoU whereby the Islamic nation has agreed to import 30 million kg of tea from India this year. India's efforts come at a time when Sri Lanka and Kenya are trying hard to enter the Iranian market.
According to Tea Board figures, Iran imported 12.20 million kg between April and December 2014 at Rs 267.30 per kg. For the whole year, the industry is expecting to achieve 16 million kg of tea exports. India's total tea exports slipped to 141.83 million kg in the first nine months of the current fiscal year from 166.36 million kg in the corresponding period of the previous year. Iran is a major export market for Indian tea. The country is ready to pay higher prices for quality teas. Orthodox tea, produced through hand-processing or using machines that mimic hand-rolling, is used in most specialty tea (the other variety, CTC, is machine-processed).
In 2014, India was not able to produce good volumes of orthodox teas as a long, dry spell affected tea leaves. "This in turn has left an impact on our exports to Iran," said Monem. Iran's annual consumption is around 120 million kg.
Source:- economictimes.indiatimes.com
India's Feb Natural Rubber Imports Jump 42 Pct Y/Y - Govt Source
India's natural rubber imports in February jumped nearly 42 percent to 28,806 tonnes from a year earlier as lower prices in the world market prompted tyre makers to raise overseas purchases, a government official, who declined to be named, told Reuters.
The south Asian country imports natural rubber from Indonesia, Thailand, Vietnam and Malaysia.Natural rubber price in the Indian market was nearly a third higher than Malaysia or Indonesia in February, said a Kochi-based dealer.
Source:- :in.reuters.com
Tribunal rightly directed GTA to make pre-deposit on its failure to show payment of ST under reverse
Service Tax : Where assessee, a goods transport agency, could not prove payment of service tax under reverse charge by consignor or consignee, Tribunal order directing pre-deposit by assessee-GTA was valid
MAT companies are liable to pay advance tax; default in its payment would trigger sec. 234B interest
IT : An assessee covered by provisions of sections 115JA and 115JB is under obligation to pay advance tax and delay or failure to pay said tax would result in levy of interest
Retracted statement of partner on alleged shortage of goods doesn't prove clandestine removal of goo
Excise & Customs : In absence of evidence of clandestine removal, confirmation of demand of duty based upon alleged doubtful shortages read with statement of authorised person recorded at time of search of factory itself, which stands retracted later, is bad
Rent of premises where job-work is undertaken is eligible for input service credit
Cenvat Credit : Where assessee was undertaking job work in rented premises and was clearing final products therefrom on payment of duty, assessee was entitled to credit of service tax paid on renting services
Tribunal can’t impose conditions for considering stay application; it has to decide stay application
CST & VAT: U.P. VAT - Where against order of assessment, assessee filed appeal before Tribunal along with stay application and Tribunal by an order required assessee to deposit 10 per cent of disputed tax within 25 days, whereafter stay application would be considered, what had been done by Tribunal was not contemplated in statute
CESTAT dismissed appeal as assessee didn't appear even after five adjournments
Excise & Customs : Where, an assessee, who had been granted five adjournments had sought further adjournment, CESTAT dismissed appeal for non-prosecution opining that assessee is not interest in pursuing appeal
ITAT lashes out at TPO for making TP additions without selecting any comparable to justify additions
IT/ILT: Where TPO had not even brought a single comparable to justify arm's length percentage of royalty either under CUP or TNMM , approach of TPO in estimating royalty at 2 per cent as against 3 per cent as claimed by assessee being in complete violation of TP provisions had to be struck down
Entertainment tax subsidy granted to cinema halls is capital receipt, rules Delhi High Court
IT: Entertainment tax exemption subsidy granted to assessee engaged in business of running of multiplex cinema halls and shopping malls is capital receipts
Toned milk is 'pasteurised milk'; eligible for exemption under Tamil Nadu General Sales Tax Act
CST & VAT: Tamil Nadu VAT - Where assessee was in business of sale of toned milk in tetra pack and it pointed out that product was pasteurised toned milk and at no stage of pasteurisation, preservatives or additives were added to milk, toned milk in question was pasteurised milk falling under Entry No. 6 of Part B of Third Schedule to Tamil Nadu General Sales Tax Act
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