CST & VAT : Andhra Pradesh VAT - Assessing Authority could not have exercised his powers under section 14(4) of Andhra Pradesh General Sales Tax Act on existing material
Wednesday 11 March 2015
Employment of more engineers won't show Co. as technical provider for transfer pricing purpose
IT/ILT : Where TPO made addition to assessee's ALP taking it as a technical service provider, mere fact that out of total staff of 69 employees there were 37 engineers, was not enough to conclude that assessee rendered technical services
No reassessment after 4 years alleging wrong allowance of exp. if assessee had disclosed all materia
IT : Where assessment in case of assessee was completed under section 143(3) wherein assessee's claim for salary paid to partners was allowed, in absence of assessee's failure to disclose all material facts necessary for assessment, Assessing Officer could not initiate reassessment proceedings on basis of change of opinion that claim for payment of salary was wrongly allowed
Delay in filing appeal by revenue due to delay in convening review committee held condonble by High
Excise & Customs : Delay in filing appeal by revenue owing to delay in convening Review Committee, as Commissioners comprising Committee were pre-occupied with work relating to standing committee and other administrative reasons, is condonable, as there is sufficient cause
AAR couldn't reject application without explaining how transaction via Mauritius route was made for
IT/ILT : AAR could not reject application filed by assessee, a Mauritius based company, seeking advance ruling on question as to whether capital gain arising on sale of shares of Indian company to another foreign company was taxable in India in terms of article 13(4) of India-Mauritius DTAA taking a view that said transaction was prima facie designed for tax avoidance without assigning any reasons therefor
Multi-piece packing of soaps on job-work basis prima facie amounts to manufacture
Service Tax : Soaps are covered under third schedule to Central Excise Act, 1944; hence, multi-piece packing of soaps on job-work basis prima facie amounts to deemed manufacture under section 2(f)(iii) and same is not liable to service tax under Business Auxiliary Services
AO can't make reference to Valuation Officer without declaration of lesser sale price by assessee
IT: Where nothing was brought on record by Assessing Officer indicating that assessee had disclosed lesser sale price of property, reference under section 55A was not justified
CCsIT to be ready for briefing by SC at short notice as it would deal with tax matters on all workin
IT/ILT : Section 261 of the Income-Tax Act, 1961 - Appeal to Supreme Court - Constitution of Bench of Supreme Court to Deal Exclusively with Tax Matters
India's Food Exports Dip, Wheat Hit Hardest
India's food export volumes have shrunk in the current fiscal with other countries eating into its business share by offering lower prices for their agricultural and food products. European Union's ban on Indian mangoes, though lifted now, and other agri produce also contributed to the slide.
A recent report of the Agricultural and Processed Food Products Export Development Authority (APEDA) has showed that exports of some major commodities in agricultural and food products from India dipped in 2014-15 as compared to last year.
The highest drop in export volumes has been recorded for wheat (36%), pulses (37%) and fruits and seeds (33%) in the April to December period last year as compared to the same period in 2013. Exports of fresh vegetables fell by 3%, fruits by 7% and basmati rice by 6%, the report stated.
Officials in the agricultural and processed food authority said that the demand for Indian produce came down this year in particular, because other exporting countries were selling their produce at a much lower price than India.
Apart from basmati rice and wheat, other cereals registered an export drop of about 10%. Exports of non-basmati rice from India, however, increased by 12% last year in the April-December period as compared to the same period in 2013.
A senior official from the agricultural and processed food authority said that general demand for Indian produce has come down internationally due to competition from other countries. "Devalued currency in Russia, Latin America, Commonwealth of Independent States (CIS) among others had these countries exporting the same produce at a lower price than India," the official said.
Other factors too led to the drop. For instance, India's rice is exported to Iran, but this time Iran had old stock and better domestic production of rice, which led to a dip in rice exports from India to the country.
India's fruits and vegetables are exported to all the major countries, mainly to the Middle East, Far East and SAARC countries.
Officials in the state agriculture department, however, said that the dip in exports was also due to a ban by EU on mangoes, eggplant, the taro plant, bitter gourd and snake gourd and on chillies by UAE in 2014.
"Also, this year, India did not have a good supply season. Every item is exported in a particular supply period. If before India's supply season, other supplying countries are able to sell their produce in a big way and at lower prices, then the importing countries do not exhibit much demand for Indian produce at competitive prices. At this juncture, selling the produce in the local or domestic market is more viable for the exporters," the official added.
Source:timesofindia.indiatimes.com
RBI directs banks to report Sukanya Samridhhi Account transactions
IT : Sukanya Samriddhi Account Rules, 2014 – Reporting of Sukanya Samriddhi Account Transactions
Payment made to partners for purchase of land above prevalent market rate would lend to Sec. 40A(2)
IT : Where assessee-firm having purchased land from its erstwhile partners, enhanced sale consideration five times subsequent to reconstitution of firm, Commissioner rightly passed revisional order had making disallowance u/s 40A(2)
CESTAT set aside order of Commissioner(A) as it wrongly enhanced penalty without issuing prior notic
Excise & Customs : Where Commissioner (Appeals) had enhanced penalty levied on assessee without even issuing prior notice, Tribunal set aside said enhancement and denied remand of matter back to Commissioner (Appeals)
Poland Wants Import Certification For Polish Food Products In India
Poland wants to see the prolonged import certification negotiations for their food products into India concluded without further delay so that Polish food products can promote their products in the Indian consumer market.
Marek Sawicki, Minister of Agriculture and Rural Development, Poland, who is currently on a visit to India had discussions with his Indian counterparts in this regard. “We have been negotiating with India for Import certification for our food products for the last four years and yet not concluded. We want to place our products in the India market ,” the Minister said.
Poland is the fifth largest food producer in Europe and food exports from Poland exceeded Euro 21.3 billion last year. He said that Polish agricultural sector is quite modern and well developed and the government had invested around Euro 45 billion in modernizing the farm sector over the last decade. “Our endeavour has been to convince the India government that we have one of the best farm products in Europe and we export to over 100 countries in the world,” he said. The Polish Minister had extended an invite to Indian Agriculture Minister to visit one of the key food exhibitions in Poland in coming autumn.
When asked about the key export items from the farm sector for Poland, Sawicki said that Poland exports comprise milk and dairy products, poultry, pork, fruits and vegetables including Mushrooms, etc. “We have been observing strong trends in bilateral trade between India and Poland for the last few years, but food products do not figure much,” he informed.
The Minister said that they would organize Polish food promotion campaigns in cities like Delhi and Mumbai later this year to create awareness about Polish food products. Poland is participating in the ongoing AAHAR, international food and hospitality exhibition, in Delhi.
Source:hospitalitybizindia.com
Dive In Shrimp Prices Means India Will Miss $6Bn Export Target
Indian seafood exports may fall short of the $6 billion target set by the Marine Products Exports Development Agency (MPEDA) this financial year, The Hindu reports.
MPEDA will compile figures for the whole financial year next month, but the performance recorded for the last ten months until January indicate the value of seafood exports will be below $5.5bn. The hope of hitting the $6bn mark this year was dashed by price fluctuations in the global market.
Although vannamei export volumes increased, prices fell substantially in the second half of last year.Also, the value and volume of frozen fish and dried items exports registered negative growth in the first ten months of India's financial year. Squid shipments fell by 23.35% in volumes and 28% in value.
Seafood exports last year topped a record $5bn and authorities and exporters had hoped that a new record would be set this financial year, but the total value of fish exports in ten months is $4.72bn.
This, however, is $500,0000 more year-on-year. In volumes, India exported 876,000 metric tons of seafood, up 4.9% over the previous year.
Frozen shrimp, which now makes up a third of seafood exports in terms of quantity and two-thirds in terms of value, continues to improve, as value has increased by 20% and volumes by 17%. Of frozen shrimp, more than 80% is vannamei, farmed extensively in coastal areas of Andhra Pradesh, Tamil Nadu and Odisha.
Indian vannamei is in high demand in Southeast Asia, the US and the EU because of the low production in countries such as Thailand, Vietnam and Indonesia.
Source:undercurrentnews.com
Eu's Move To Lift Ban On Indian Mango Imports May Offer Little Relief
Mango exporters fear a significant decline in shipments even as the European Union has lifted the ban on Indian mangoes. They feel the king of fruits may not be able to withstand the condition of being treated with hot water for an hour. Government agencies like Agricultural and Processed Foods Exports Development Agency said they initiated scientific trials of mango treatment to assess this claim.
The EU reversed the two-year ban it had imposed on the import of Indian mangoes, citing evidence of fruit flies, after its team visited facilities in the country and the authorities promised that mangoes meant for exports will be treated with hot water so as to rid them of the same.
Unlike the produce from other prominent mango-exporting countries, Indian mangoes are exported via air, which keeps the eggs of fruit flies alive. A fruit fly cannot survive in cold temperatures of storage in the sea route.
Officials in the ministry concerned told ET the decision of hot-water treatment was taken based on existing data available from government agencies. Accordingly, the mangoes have to be treated at 48 degree Celsius for one hour. However, Sanjay Pansare, a prominent wholesaler of mangoes and a member of Agricultural Produce Management Committee (APMC) said, "Mangoes will be destroyed if we treat them at the prescribed temperatures. Our own research shows that we can get rid of fruit flies if we treat mangoes at 55 degree Celsius, for just six minutes."
According to traders, 40% of the mangoes that arrive at the Vashi APMC are exported, 35% of them to the Middle East. Of the total mangoes that go to Europe, about 70% are Alphonso. APEDA is optimistic about finding a solution before April when exports to the EU are due to begin.
"We have awarded a project to the Dr Balasaheb Savant Konkan Krishi Vidyapeeth, Dapoli and the Maharashtra State Agricultural Marketing Board to study hot-water treatment of mangoes. Their report is expected to come by the end of March or first week of April," said Sudhanshu, deputy general manager of APEDA.
In a response to the ban imposed by the EU, Maharashtra, the biggest mangoexporting state in the country, has implemented 'Mangonet', a traceability system that is successfully used in export of grapes and pomegranates. "We have registered 3,500 orchards under Mangonet and these farmers have also been trained," said Govind Hande, Maharashtra's phytosanitary officer. Irradiation and vapour heat treatment are the other two methods of treating mangoes.
The US insists on irradiation and sends its own inspectors for supervision of mango treatment, while Japan has asked for VHT. The EU does not approve of irradiation of fruit and vegetables.
Source:economictimes.indiatimes.com
CIT(E) notified as prescribed authority wef Nov 15, 2014 for granting approval to religious/charitab
IT : Section 10(23C)(iv)/(v) of the Income-Tax Act, 1961 - Exemptions - University/educational Institutions/hospitals - Prescribed Authority - Supersession of Notification No.75/2014 [F.No. 196/26/2014-ITA.I]/SO 3026(E), Dated 1-12-2014
South Korea’S Oilmeal Imports From India Down By 198,000 Tonnes
South Korea oilmeal imports from India has recorded a drop of 198,000 tonnes at 831,967 tonnes during April 2014 to February 2015 as compared to 1.02 million tonnes imported during the same period last year, the Solvent Extractors’ Association of India (SEAI) which work for vegetable oil industry said in a report.
SEAI said that not only South Korea, import from Iran, Thailand, Taiwan and from European countries were also down during 11 months period in this fiscal.
Iran imported 362,091 tonnes, as compared to 1.14 million tonnes last year consisting of 220,300 tonnes of soybean meal and 141,791 tonnes of rapeseed meal. Imports from Thailand were at 190,639 tonnes, against 311,297 tonnes; consisting 182,259 tonnes of rapeseed meal and 8,380 tonnes of soybean meal.
Taiwan imported 68,292 tonnes, against 108,606 tonnes last year; consisting of 31,148 tonnes of rapeseed meal, 24,192 tonnes of castor meal, 12,053 tonnes of soybean meal and 899 tonnes of groundnut meal, Europe imported 209,011 tonnes, as compared to 567,868 tonnes last year.
Deoiled rice bran extraction rallied imports from Vietnam that was increased to 281,682 tonnes from 202,072 tonnes of oilmeal imports during the same period last year; consisting of 67,043 tonnes of rapeseed meal, 18,122 tonnes of soybean meal and 1,449 tonnes of groundnut meal.
The export from Kandla port was reported at 1.58 million tonnes with 71 per cent, followed by Mumbai including JNPT handled 269,074 tonnes with 12 per cent share, Kolkata port handled 224,116 tonnes with 10 per cent share, Mundra port handled 83,775 tonnes with 4 per cent, Bedi port handled 32,197 tonnes 1 per cent share and Pipavav port handled 37,386 tonnes with 2 per cent share.
Source:thecropsite.com
India’S Current Account Deficit Narrows To $8.2 Billion
A pick up in net exports of services on the back of an improvement in net earnings and steep fall in gold imports helped India’s current account deficit (CAD) narrow to $8.2 billion (1.6 per cent of GDP) in Q3 of 2014-15 from $10.1 billion (2.0 per cent of GDP) in Q2. On a year-on-year (y-o-y) basis, however, the CAD doubled (from $ 4.2 billion or 0.9 per cent of GDP in Q3 of 2013-14).
The lower CAD was also primarily on account of a decline in the trade deficit as decline in imports, specially gold imports, was sharper than that in exports. Gold imports amounted to $5.3 billion, against $15.8 billion in Q4 of 2012-13.
On a BoP basis, merchandise exports declined by 1.3 per cent to $83.7 billion in Q4 of 2013-14 as against an increase of 5.9 per cent in Q4 of 2012-13. Remittances by Indians employed overseas, amounted to $17.5 billion and provided sustained support to the BoP with a share of 12.6 per cent of current receipts. Care Ratings chief economist Madan Sabnavis said they expect the CAD to narrow down further in Q4 with the trade deficit declining further.
“Typically the invisibles account bring in a net amount of $28-30 billion. The trade balance has been in the range of $38-39 billion in the last 2 quarters and will be guided a lot by both movement in exports and imports. The Q3 does not capture fully the lower oil prices and hence the import bill may be expected to fall further. However, exports growth are not picking up which can keep the trade balance above $ 30 bn thus not allowing the deficit to turn to surplus,” he said.
Source:deccanchronicle.com
Dollar Hits 12-Year High Against Euro: Where Is Rupee Headed
The Indian rupee could temporarily hit the 64 levels against the US dollar amid speculations of an earlier-than-expected hike in interest rates, says Ashutosh Khajuria, president of treasury at Federal Bank.
The rupee on Wednesday hit an over 2-month low of 62.84 against the US dollar, as the greenback rose to a 12-year high against euro and an 8-year high against Japanese yen. Driving up the US dollar is speculation that the US Federal Reserve will hike rates earlier than expected after better-than-expected jobs data.
There is a chance that the US Fed could prepone its rate hike to June this year from the fourth quarter to avoid heating up of the economy in the future, Mr Khajuria said. Importantly, he expects Fed chief Janet Yellen to drop the word "patience" from its next meet on March 17-18. For analysts "patience" has been the buzzword in Fed's policy statements in the past to get an indication of rate hikes.
But Mr Khajuria does not expect the rupee to witness the same volatility it saw in August 2013 when the Indian currency hit its all-time low of 68.80 levels on concerns over tapering of the US stimulus. The rupee's weakness was exacerbated by India's record high current account deficit and high fiscal deficit.
Mr Khajuria says the rupee is much better placed than two years ago and it could remain in 62 and 63.50 levels against the dollar. India's current account deficit has dropped to an estimated 1.3 per cent as compared to a record high of 4.6 per cent in 2013. Also, India's foreign reserves have swelled to a record high of close to $340 billion.
The banker also sees the Reserve Bank of India being comfortable at rupee levels of 63-64.50/dollar. Despite the rupee's slide against the US dollar, it has appreciated against other currencies like euro, affecting India's exports, Mr Khajuria said.
The rupee was at 60.85 levels against the US dollar exactly a year ago. But against currencies like euro it has appreciated sharply to current levels of 67.44/euro from 84.45 a year ago.
In a statement on March 4, RBI chief Raghuram Rajan also voiced concerned over the rupee's strength. "The rupee has remained strong relative to peer countries. While an excessively strong rupee is undesirable, it too creates disinflationary impulses," the RBI chief said.
Source:profit.ndtv.com
CIT(E) notifies as prescribed authority wef Nov 15, 2014 for granting approval to religious/charitab
IT : Section 10(23C)(iv)/(v) of the Income-Tax Act, 1961 - Exemptions - University/educational Institutions/hospitals - Prescribed Authority - Supersession of Notification No.75/2014 [F.No. 196/26/2014-ITA.I]/SO 3026(E), Dated 1-12-2014
Revenue couldn’t complain of genuineness of Sec. 10(23C) relief if prescribed authority was satisfie
IT: Where authority was satisfied with regard to essential requirements or ingredients of section 10(23C)(via), it was not open for revenue to complain
MAT stat is liable to interest under section 234B and 234C, rules Gujarat High Court
IT : Assessee was liable to pay interest under sections 234B and 234C in respect of tax determined on basis of book profit under section 115JA
Loans and advances to employees are outside the purview of Sec. 186 of Companies Act, 2013, MCA clar
COMPANIES ACT, 2013 : Section 185, Read with Section 186 of the Companies Act, 2013 - Loan to Directors, Etc. – Clarification with Regard to Sections 185 and 186 – Loans and Advances to Employees
Department rightly denied input stage rebate as assessee didn’t follow prescribed procedure in this
Central Excise : Where necessary declaration describing inputs to be used with input-output ratio was not made, Excise Authorities had no opportunity to verify said ratio; hence, assessee could not be granted input-stage rebate even if rebate was as per standard input-output norms (SION) under Foreign Trade Policy
Painting of residential premises not covered under 'commercial or industrial construction services'
Service Tax : Services of painting of residential premises, prima facie, may not fall under category of 'commercial or industrial construction services', as they are not associated with premises which are used for commerce or industry
Subscribe to:
Posts (Atom)