IT/ILT : Section 90 of the Income-Tax Act, 1961 - Double Taxation Agreement - Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries - Croatia
Tuesday 17 March 2015
Non-appearance of assessee due to demise of counsel's father is condonable
Service Tax : Where assessee could not appear in hearing of stay application due to demise of father of assessee's counsel, said non-appearance was due to genuine reason and hence, matter was remanded back to Tribunal for hearing afresh
Capital introduced by partners in the firm couldn't be deemed as loan to invoke provisions of sec. 2
IT : Provisions of section 269SS would not be violated when money is exchanged inter-se between partners and partnership firm in spite of fact that partnership firm and individual partners are separate assessees
Rebate on export of service is allowable even if declaration is filed after the export
Service-tax : Rebate on export of services cannot be denied merely because declaration under para 3.1 of Notification 12/2005-ST was filed after export and not prior to export; filing of declaration is a procedural formality and contents of declaration can be verified even after export from records maintained
SAT: Penalty imposed on applicant for not making timely disclosure under takeover code and Insider t
SEBI : Where appellant made delay in making disclosures as required under regulation 29 of SAST Regulations and regulation 13 of PIT Regulations, penalty was to be imposed upon appellant
No TDS on export commission paid to NR agent for rendering services abroad in absence of his PE in I
IT/ILT : No TDS on export commission paid to NR agent for rendering services abroad in absence of his PE in India
No clubbing of interest-free loan given by ‘Shahrukh Khan’ to his wife from whom she had purchased a
IT : 'Shahrukh Khan' gave interest-free loan to his wife, Gauri Khan, who in turn, purchased a residential house and jewellery from said loan amount. The department clubbed the value of loan amount in the net wealth of 'Sharukh Khan'. Extending cash loan, to wife does not come within the definition of asset as provided under Section 2(ea) of the wealth tax Act, thus, it could not be said that there was a transfer of asset; the impugned loan amount was not includible in net wealth of assessee
ITAT invokes MFN clause to import make available clause from India-Portugese DTAA into the India-Swe
IT/ILT : Swedish company can claim Fee for Technical Services ('FTS') received from its Indian subsidiaries as tax-exempt if 'make available' condition is not satisfied on the basis of Indo-Portugese DTAA even though Indo-Sweden DTAA makes no reference to 'make available' condition. In view of the Most Favoured Nation clause ("MFN clause") in the protocol to the Indo-Sweden DTAA, a Swedish company can claim beneficial provisions for FTS contained in a later treaty such as Indo-Portugal treaty
Direct Grape Imports From India
So far the European market has responded well to Thompson Seedless as there is a small window between South African and Egypt. The season for Indian Grapes normally starts from November and then ends mostly end of March beginning of April, depending on the arrival of winter and other weather conditions. Thompson Seedless normally starts at the mid or end of January and lasts till end of March, beginning of April.
The grapes have been strong in demand, particularly in Germany, Holland, Poland and in Sweden. Outside the European Union, Russia is a really good market for Indian Grapes. At this moment Don-Limon is shipping Indian Grapes directly to Russia with regular interval. Indian grapes are normally packed either in 4,5 Kg loose, 9 x 500 grams per carton or in punnets for the super markets 10 x 500 grams and 5 kgs per carton. They are packed in well designed, Don-Limon boxes.
The State of Maharashtra is the main area for Indian Grape production, where fluctuations in weather condition and temporary heavy rainfall are the main challenges of Indian Grapes. The Indian Thompson Seedless grape producers involved have Global Gap certificates, while laboratory analysis is supervised by the Indian Government by means of its laboratory and spraying list. This creates the needed trust to build new partnerships Europe. On top of that, the standard screening for residues of pesticides (LCMS/MS and GCMS) upon arrival further secures the safety of the fruit.
The situation was bad in 2010 when Indian Grapes were banned as there were residues of unregistered pesticides in it. The problem lay not as much in the level of residue as in the fact that the particular agent wasn’t registered and approved by the EU. Since then the India and German governments have worked together and registered and approved the product so that European sales could be retaken from 2012. Since then Indian grapes have regained a really good position of trust.
Source:freshplaza.com
200% Rise In Mmf Fabric Export From Surat To Pakistan
The export of man-made fibre (MMF) fabrics from Surat to Pakistan has seen an increase of 200 per cent since 2011-12, a welcome development considering the strained relations between the two countries.
Surti traders, mostly Muslims and Sindhi and Punjabi Hindus, exported dress materials, saris, fabrics worth Rs 1,300 crore to Karachi, Peshawar and Lahore via Mumbai, Delhi, Dubai and Bangladesh from April 2014 to January 2015-an increase of 30 per cent over previous year.
The total export from India to Pakistan from April 2014 to January 2015 witnessed 20 per cent increase at Rs 2,400 crore compared to the same period in previous year, according to Synthetic and Rayon Textile Export Promotion Council (SRTEPC). The fabric export to Pakistan is predicted to touch Rs 3,000 crore by the end of this financial year.
While the export of fabric to the USA and UAE has remained unchanged at $500 million and $400 million per annum respectively, to Pakistan it has witnessed a phenomenal growth from $169 million in 2012-13 to $400 million in 2014-15. Interestingly, 60 per cent of it was exported from country's biggest man-made fibre industry in Surat.
SRTEPC assistant director Tejal Mewar told TOI, "After the USA and UAE, Pakistan is an important destination for MMF export from India. As Surat happens to be the largest MMF hub, the export of fabrics has witnessed a tremendous growth here over the last few years. Four years ago, the export to Pakistan was just below $100 million, but now it is likely to cross $450 million by March 2015."
Mewar added, "The direct export from Surat to Pakistan would be in the range of Rs 400 to Rs 500 crore per annum. A huge quantity of Surti fabric is exported via Dubai and Bangladesh. However, there is no record available with the council for such exports."
Official sources said export of MMF fabric increased after trade was allowed from Wagha border in October 2013. Still Pakistan has kept around 78 textile items, mostly manufactured in Surat, in the negative list.
Devkishan Manghani, chairman of textile committee of Southern Gujarat Chamber of Commerce and Industry, said, "Pakistan's textile industry is cotton based. Thus, it depends heavily on China and India for MMF imports. Surti fabrics are in huge demand in Pakistan as they are used for value-addition in burqas, sherwanis, suits, salwars etc."
Source:timesofindia.indiatimes.com
While exercising appellate powers High Court cannot review factual findings of lower authorities
Excise & Customs : High Court, exercising its appellate power, cannot review factual findings based on evidence considered by lower authorities; it can only correct an order if it is based on irrelevant or manifestly incorrect construction of facts or if based on mis-appreciation of law or on non-application of mind
Prior to 1-4-1997, banks could recognize sticky loans on cash basis while accounting on mercantile b
IT : Prior to amendment to section 145 with effect from 1-4-1997, there was nothing wrong in accounting sticky loans on cash basis while following mercantile system of accounting generally
No denial of set-off losses of amalgamating Co. against book profit of assessee due to change of opi
IT: Where Assessing Officer allowed assessee's claim for set off of loss of company amalgamated with it against its book profits while determining MAT liability, he could not initiate reassessment proceedings subsequently merely on basis of change of opinion that aforesaid loss was wrongly set off
Sugar Mills Owe Rs 16,334 Cr To Cane Farmers As Of Feb-End
Sugar mills owed Rs 16,364 crore to sugarcane farmers till February of the current marketing year, starting October 2014, due to low prices of sweetener in retail markets.
"The outstanding sugarcane dues are mainly on account of low realisation from sale of sugar," Food Minister Ram Vilas Paswan said in a written reply to Lok Sabha.
Out of the total sugarcane arrears, Uttar Pradesh-based sugar mills owed maximum at Rs 7,870.57 crore, followed by Maharashtra at Rs 2,532.49 crore. Cane arrears in Karnataka stood at Rs 2,154.97 crore as on February 28 of 2014-15 marketing year (October-September).
Bihar millers owed Rs 581 crore, while mills in Tamil Nadu, Haryana and Punjab had an outstanding cane price payment to the tune of Rs 521.9 crore, Rs 516.11 crore and Rs 507.24 crore, respectively. Uttarakhand millers owe Rs 473.37 crore to sugarcane farmers.
In order to facilitate clearance of cane price arrears, Paswan said the government had recently approved subsidy of Rs 4,000 per tonne on export up to 1.4 million tonnes of raw sugar in the ongoing 2014-15 marketing year.
"There have been some budgetary constraints in disbursement of export incentive for the export of raw sugar undertaken under the scheme during the sugar season 2013-14. "However, corrective measures have been taken to remove such constraints to facilitate early disbursal," Paswan said.
Sugar production of India, the world's second-largest producer, is estimated at 26.5 million tonnes in the 2014-15 marketing year as compared to 24.55 million tonnes in the previous year, according to government data.
In first six months of 2014-15 marketing year, production has increased by over 14 per cent to 22.18 million tonnes, according to industry body ISMA. The domestic demand is pegged at 24.8 million tonnes in the current marketing year, ending September.
Source: business-standard.com
India: Mining Halt Fuels Iron Ore Imports
There has been a sudden spurt in import of iron ore in Odisha this year apparently due to shortage of raw material from local sources due to slowdown in mining activities.
According to recent written reply submitted by steel and mines minister Prafulla Mallik in the assembly, various companies imported 9.49 lakh million tonne of ore in 2014-15 compared to no import in 2013-14 and 1,404 MT in 2012-13. There was no iron ore import in 2011-12, 2010-11, 2009-10. Similarly, 1.32 lakh MT iron ore pellets were imported in the year compared to just 296 MT in 2013-14.
Mallik said the import depends on number of factors such as prices of raw material, demand of end-products, marketability and market price of end products.
Operational steel mills such as Tata Steel and Visa Steel were among the largest importers of iron ores while Jindal Steel and Power Limited and Simec Indus Resources are importing pellets.
Official sources said the situation has arisen because mining has stopped in several big mines thanks to expiry of statutory clearances.
Sources said during 2013-14, 77.84 MT of iron ore was produced in the state. However, only 16.925 MT were consumed domestically. The domestic consumption of iron ore was less than 30 per cent of total iron ore production during the last three financial years. In a separate written reply, the minister said of the 200 mining lease holders involved in excess mining, 140 lease holders had approached the re-visional authority.
Of them, 44 mining lease holders got interim stay. He said the case pertaining to excess mining was sub-judice in the Supreme Court. The government would take next course of action after the SC verdict.
The minister said after the recent MMDR ordinance the state government has started accessing the minerals for e-auction in tune with the central government norms.
The government is taking help of the Geological Survey of India, Mineral Exploration Corporation, Orissa Mining Corporation and directorate of geology for estimating the minerals, he added.
Source:hellenicshippingnews.com
Indian Refineries Step Up Oil Imports From Newer Geographies Like Mexico, Iraq
Indian refineries have consistently reduced imports from traditional markets like Saudi Arabia and Iran and have stepped up purchases from other geographies such as Mexico, Iraq and Venezuela while building inventories, as crude prices remain weak due to lower demand.
Availability of cheaper crude variants and softening of shipping cost have encouraged Indian companies to look at different sources to buy crude oil for refining, and has therefore helped them achieve a more diversified portfolio. India has also significantly cut imports from Iran, which stood at its lowest in almost 18 months in February, to keep it within the limits allowed as per the deal aimed at curtailing the latter's nuclear programme.
"Indian companies are increasingly importing from Mexico and Venezuela. The cost of transporting from these countries is higher than from the Middle East, but they are able to buy cheaper heavy crude," said Nitin Tiwari, vice president - institutional research, Religare Capital Markets.
The change in imports by Indian companies is helping the country move closer to its long pending target of diversifying its energy sources. Industry officials said while the share of imports from the Middle East would change, given the higher imports from other countries, the volume imported from OPEC may not fall drastically.
"It has been India's ambition to have a prudent mix of energy sources but the success of it depends on price dynamics and the diversification strategy.
Now with the transport costs coming down and other countries, some of which are facing slowdown internally, offering certain and steady prices, it is possible for companies to buy from them," said Anil Razdan, energy expert and former additional secretary of Ministry of Petroleum & Natural Gas.
While the companies do not share their import data, Thomson Reuter's data, which is based on tanker arrivals, revealed a significant drop in imports from Iran which is facing sanctions.
According to Thomson Reuter's data, India bought 102,200 barrels per day (bpd) of crude and condensate from Iran in February, down 63% from January and 62% from a year ago. Essar Oil, which was the biggest importer of oil from Iran, shipped in 38.5% lower in January and is expected to reduce it further.
"Reliance Industries is buying more heavy crude from Latin America as it comes out $7-10 per barrel cheaper than the Middle Eastern oil. Their high complexity refinery can run very well even with the cheaper heavy crude," said Dhaval Joshi, research analyst, Emkay Global Financial Services.
According to Platts, India's imports from Saudi Arabia in January this year dropped 8.85% to 3.19 million metric tonnes. While imports from Iraq have seen a sharp increase in January, rising 56% to 2.48 million tonnes. Industry data suggests that Reliance Industries has been consistently increasing imports from Latin America, and in January alone, its imports grew 30% year-on-year.
Source:economictimes.indiatimes.com
Rbi Further Restricts Gold Imports
The Reserve Bank of India yesterday late evening asked the banks not to sell gold imported on consignment basis to jewellers on outright basis. The clarification is expected to tighten gold imports.
On 18th February the central bank allowed banks to import gold on consignment basis and also allowed them to provide gold metal loans to jewellers. However, banks were found importing gold on consignment basis and selling that to jewellers against full payment. This has increased imports as jewellers were buying gold virtually off the shelf. Banks were also considering gold imported on consignment basis to provide gold metal loans to jewellers.
Now RBI has said that gold imported on consignment basis, where payment is to be made after realisation of money after sale, can be used only for providing gold metal loans to jewellers. The loan is for a tenure of 180 days. Prithviraj Kothari of RiddhiSiddhi Bullion said, "The move could tighten supply of gold as jewellers will have to place order for import with importing agency and wait for delivery."
Open market premium, which fell to $2-3 per ounce, may also inch up. However, an industry veteran said that banks will now try to increase gold metal loans by importing gold on consignment basis.
Imports in March have been rising after import duty cut on gold didn't materialise in budget and jewellers were out of stock and was expected to touch 90 tonnes. The latest clarification by the RBI through an email sent to importing banks would restrict import flow, said a jeweller. Import of gold in February was estimated at 52 tonnes on gross basis.
Sudheesh Nambiath, Senior Analyst- Precious Metals, GFMS Thomson Reuters said: "In February 2015 India imported 52.59 tonnes of gold compared to 32.75 tonnes in February last year. Duty- free imports for the purpose of exporting jewellery, medallions and coins were at 12.67 tonnes. Switzerland continued to retain its dominance by exporting 10.59 tonnes to India in February."
Meanwhile gold market has remained under pressure because of a possibility of an end to zero interest rate policy by the US as its Federal Reserve is slated to meet later today.
Source:business-standard.com
Indian Rupee Opens Marginally Higher At 62.77 Per Dollar
The rupee has been a relative outperformer moving in 62.50-63.00/dollar range. We expect the rupee to continue trading in this range with a weakish bias, says Ashutosh Raina of HDFC Bank.
The Indian rupee opened marginally higher at 62.77 per dollar on Tuesday versus 62.81 Monday.
The dollar fell across the board, as investors worry that the greenback's rapid rise could prompt the Federal Reserve to be a little more cautious about raising interest rates this year.
The dollar is up 24 percent against a basket of currencies since May and it could become a key issue at this week's Fed monetary policy meeting.
Ashutosh Raina of HDFC Bank said, "The dollar continues to remain the theme with the dollar index hovering around the 100 mark. The rupee has been a relative outperformer moving in 62.50-63.00/dollar range. We expect the rupee to continue trading in this range with a weakish bias."
Source:moneycontrol.com
Director couldn't be prosecuted for violating CIS norms as he had resigned from Co. before CIS norms
SEBI : Where petitioner was not a Director of accused company during relevant time in year 1999, when Regulation came into force, prosecution of petitioner in a complaint filed against company for violation of CIS Regulations was not sustainable
Revenue couldn't demand Sec. 220 interest without showing any reason for not initiating any action f
IT : Where revenue had not placed any material to show that as to why no action was initiated for 27 years and genuine hardship to assessee was also not considered, demand of interest under section 220(2) was not justified
Credit on capital goods can be availed of even before their installation
Cenvat Credit : Credit on capital goods is allowed in financial year of receipt and balance in subsequent financial year(s), there is no requirement that capital goods must have been installed; hence, credit availed and utilised before installation of capital goods is valid
HC upheld disallowance as assessee failed to give reason for increase in conversion charges paid to
IT : Where assessee could not give satisfactory reason for increase in conversion charges paid to its sister concern, part of such conversion charges was disallowed under section 40A(2)
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