IT: Leasehold rights in property brought in by partner as its share would form part of assets of firm and on termination of lease compromise amount paid by firm was allowable as deduction in firm's hands
Thursday, 19 March 2015
Tribunal can't adjudicate appeal on merits when issue relates to pre-deposit
CST & VAT : Gujarat VAT - Where Deputy Commissioner did not accept assessee's prayer for pre deposit of 10 per cent of disputed demand and dismissed appeal on issue of pre deposit, Tribunal was not right in adjudicating appeal on merits, instead of restricting itself to issue of pre deposit
Provisions of Sec. 167B providing taxability at maximum marginal rate isn't applicable to a society
IT : Provisions of section 167B have no application to Society registered under Societies Act 1860 or any other society formed in accordance on similar lines
CLB isn't conferred with jurisdiction under Cos Act to adjudicate upon validity of allotment of shar
CL: Section 111A only deals with transfer and transmission of share cases and, therefore, CLB does not have jurisdiction under section 111A to decide validity of allotment of shares
Effect of forex fluctuation not to be considered for computing operating margins of comparable
IT/ILT : When assessee is an established company for purpose of comparison, turnover would be relevant only to ensure that comparable selected is also an established player capable of executing all types of work relating to software development
Margin earned by assessee in high seas sale couldn't be regarded as 'commission' for levying service
Service tax : Where assessee had imported coal and supplied same to Indian buyer, margin termed as 'administrative charge' retained by assessee cannot be regarded as 'commission' and cannot be charged to service tax
In order to set aside sale of liquidating-Co's assets, liquidator was left with only remedy to appro
CL: Where official liquidator sought to challenge sale held by bank under section 13 (4) of SARFAESI Act, during pendency of winding up proceedings without reference to winding up court, only remedy available to official liquidator was to approach Debts Recovery Tribunal under section 17 of SARFAESI Act
5 months delay in issuing sec. 158BD notice after recording of satisfaction by AO wasn't fatal to bl
IT : Where notice under section 158BD was issued to assessee after expiry of five months from satisfaction recorded by Assessing Officer of person searched, it could not be concluded that there was unreasonable delay in issuing said notice and same was fatal to block assessment proceedings
Number Of Ports For Import Of New Vehicles Increased To 14
Government has increased the number of ports from 12 to 14 through which new vehicles can be imported -- a move which would help in reducing pressure on ports and transactions cost of companies.
"Two new customs ports - Kattupalli Port and APM Terminals, Pipavav Port - are being added to the list of 12 existing ports/ICDs (inland container depot), thereby taking the total number of ports/ICDs to 14, for importing new vehicles," Directorate General of Foreign Trade (DGFT) has said in a notification.
New vehicles are imported through eight seaports, three airports -- Mumbai Air Cargo Complex, Delhi Air Cargo, Chennai Airport -- and three ICDs -- Telegaon Pune, Tughlakabad and Faridabad.
The eight seaports include Nhava Sheva, Mumbai, Kolkata, Chennai, Ennore, Cochin and Kattupalli.India, a major hub of automobile manufacturing in the world, mainly imports high-end vehicles and parts.
The number of commercial and passenger vehicles imported into the country is small in number.According to a media report, during the April-November period, 1,210 trucks and buses were imported into India.
Source:business-standard.com
No confiscation of excess/short stocks and no penalty under rule 25, if charge of evasion not invoke
Excise & Customs : Rule 25 can be invoked subject to provisions of section 11AC; hence, if, in show-cause notice, there is no allegation of intention to evade duty, rule 25 cannot be invoked to confiscate excess/short stocks and levy penalty
Demand couldn't be confirmed just because assessee had mentioned wrong description of goods mistaken
Excise & Customs : Where departmental verification report found goods to be 'LDPE powder coated interlining fabrics' and not 'Buckram' and said report was not challenged; hence, just because during June, 2003, assessee described goods in ER-1 return as Buckram, by mistake, goods cannot be classified as 'Buckram'
Textiles Ministry Worried Over Jute Import From Bangladesh
Rising jute import from Bangladesh is a matter of concern and the issue has been taken up with Commerce Ministry, Textiles Minister Santosh Gangwar said in Lok Sabha today.
"Jute from Bangladesh is coming. We can stop it. We have taken up the matter with Commerce Ministry. The import is rising every year and it is a matter of concern," he said replying to questions.
Gangwar said jute sector plays an important role in India's economy, especially in the eastern parts, and supports the livelihood of around 40 lakh families.
The exports are to the tune of Rs 1800 cr annually. He said his ministry is also in talks with Agriculture Ministry to give more incentives to farmers producing and using quality seeds.
Gangwar lamented that he has not received any positive reply from West Bengal Chief Minister Mamata Banerjee over his ministry's suggestions for encouraging the industry in the state, which produces over 80 percent of jute.
Three out of six mills in the state are closed and the Centre also needs cooperation from the state to remove encroachment from there.
Source:economictimes.indiatimes.com
Lg May Hike Prices Of New Imported Mobile Handsets
South Korean major LG Electronics is contemplating hiking the prices of new handset models it will import into India due to the revised duty structure announced in the recent budget that has swung in favour of component imports compared to finished product imports for mobile devices.
Since the company currently imports finished handsets, it will be paying higher duty than earlier while other manufacturers like Karbonn, Micromax, Lava, Samsung and others, who import components, accessories and assemble them in India, have been offered a duty rebate.
Amit Gujral, marketing head, LG Mobile India, said they were evaluation the impact of the duty on their mobile handsets and would soon take a call on it.
"As of date, we have not increased it (prices of mobile handsets) but since we import all our devices from our headquarters in South Korea we will get impacted by the new duty structure. New (mobile handset) models that will come in, depending on the segmentation we will share its load (higher cost) with consumers or we might absorb it," he said.
In a bid to promote its Make In India programme and local manufacturing of mobile devices like cell phones and tablets, the government in the last month's union budget, revised the excise duty structure for mobiles handsets to 1% without CENVAT credit or 12.5% with CENVAT credit. The duty structure for mobiles was 6% with CENVAT credit earlier. This will give impetus to local mobile manufacturers.
Gujral said the company may look at starting local manufacturing if the economies of scales would permit. The South Korean behemoth currently has one plant each in Pune and Greater Noida for manufacturing white goods products.
"For us to talk about local manufacturing is different from other players because we don't have to look at setting up a new plant. We already have two giant plants for which goods and we can start mobile handset manufacturing there. For us it that will happen when there is economies of scale. It will be a mix of export and local consumption. So, we have to work out the feasibility of the same. We are not saying no but we are not even prepared to say yes," he said.
Its South Korean rival Samsung is already producing 90% of the mobile handsets sold in the country at its plants in Noida and Tamil Nadu, and is reportedly looking to set up a third one in Uttar Pradesh.
Finnish telecom major Nokia had to shut down mobile handset plant in Tamil Nadu as it is embroiled in a tax dispute with the state government, which has slapped a Rs 2,400-crore notice on it for evading tax on mobile handsets sold in the domestic market.
Simultaneously, it is involved in a legal tangle, where the apex court has ordered it to produce a Rs 3,500-crore guarantee before transferring its plant to Microsoft, which recently acquired its handset division. Other major players like Micromax, Karbonn, Lava, Intex and others are also producing their handsets in local market.
Source:dnaindia.com
Edible Oil Imports To Cross 1.25 Cr Tonnes In Marketing Year ’14-15
With edible oil imports increasing by 22.7 per cent in the first four months of the current oil marketing year, India’s total edible oil imports are expected to be around 1.25 crore tonnes due to lower production estimates, an expert said here on Thursday.
Edible oil imports in the first four months of the current oil marketing year, from November 2014 to February 2015, rose by 22.7 per cent from 34.2 lakh tonnes to 41.9 lakh tonnes, data from the Solvent Extractors’ Association of India (SEAI) shows.
Production of nine oilseeds during 2014-15 is estimated at 2.98 crore tonnes according to the second advance estimates of the Government of India. This shows a drop of around 9.7 per cent compared to 3.27 crore tonnes of production during 2013-14, according to final official estimates. These oilseeds include groundnut, castorseed, sesamum, nigerseed, rapeseed, linseed, safflower, sunflower, and soybean.
Raju Choksi, Vice-President (Agri Commodities), Anil Nutrients Ltd, a part of the Anil Group of companies, said the production estimates of nine oilseeds were lower as compared to first advance estimates due to untimely rains in a few growing regions as well as lower yields due to scarce rainfall in some other parts. The import volume is likely to grow by more than 7 per cent due to a significant rise in imports of soyabean and sunflower oils.
He said imports are growing despite a shrinking edible oil import basket. “India has completely stopped imports of cottonseed oil since the last five years due to abundant cotton supply. Import of other edible oils such as safflower and coconut oil has also fallen to nil since the last couple of years.
Despite lower production estimates, domestic prices of edible oils, excluding groundnut, have fallen drastically in the last few months owing to a drop in the price of these oils in the global market. “International prices of these oils have fallen as there is abundant supply from markets such as Brazil, Argentina, the US, Indonesia and Malaysia,” he added.
Source:thehindubusinessline.com
India To Import Iraqi Oil To Fill Strategic Reserves
India is set to import 8 million barrels of Iraqi oil to fill its first strategic petroleum reserve (SPR), taking advantage of cheap prices and lending some support to a market suffering from oversupply.
India's SPR purchases could temporarily help offset the impact of an expected pause in China's strategic stocks build and the start of spring maintenance at Asian refiners.
India's oil ministry on Tuesday instructed state refiners Indian Oil Corp and Hindustan Petroleum Corp Ltd to each seek two very large crude carriers (VLCC) of Basra oil for arrival in May-June, totalling 8 million barrels, two sources familiar with the matter said.
The tenders are to be issued this month and plans call for the federal cabinet to approve issuing tenders at its meeting next week, said one of the sources, who declined to be identified.
A committee of directors suggested Basra oil as it suits refineries on India's east coast, the source said, adding this will be a one-off purchase for the SPR as the stocks will be used only in case of supply disruptions.
India's finance ministry has provided 24 billion rupees (about $383 million) from revised budget estimates for the current fiscal year to fill the first SPR.
"In Asia we are trading May cargoes and demand from India for Basra will tighten the prompt market and will make contango in the Asia and Dubai markets narrower," said Ehsan Ul Haq, senior consultant at UK-based consultant KBC Energy Economics.
Benchmark Brent futures have climbed off a six-year low hit in January but are still down more than 50 percent from last June at $53 per barrel. "It could weaken the price of Brent-linked crudes as traders were expecting India to buy sweet oil for its SPR.
"On the other hand it would be good news for Iraq, which has been struggling to find buyers because of the deteriorating quality of Basra," Haq said.
The world's fourth biggest oil consumer, India last month built its first underground SPR in Andhra Pradesh with a capacity to hold 9.75 million barrels of oil.
The Vizag facility has two compartments of 7.55 million barrels and 2.20 million barrels. The smaller compartment will be used by HPCL for its 166,000 barrel-per-day Vizag refinery.
A total of three SPRs in the south will hold more than 36 million barrels of oil, enough to cover about 13 days' supply for India in case of a supply disruption or extreme price volatility.
The two other SPRs, at Padur and Mangalore in southern Karnataka state, will have a capacity of 29.3 million barrels and are expected to be ready by October.
In addition to HPCL's Vizag refinery, the IOC's 150,000 bpd Haldia refinery and a 210,000 bpd refinery owned by Chennai Petroleum Corp. , a subsidiary of IOC, can process Basra oil.
Source:business-standard.com
Sec. 11 relief could be denied only to extent of investment made in contravention of sec. 11(5)
IT : Exemption under section 11 can be denied only to extent of investment contravening provisions of section 11(5) read with section 13(1)(d) and not on entire income
Tribunal may extend stay even beyond 365 days after assigning its reasons
Excise & Customs : Tribunal in appropriate cases may extend stay even beyond 365 days from date of initial grant of stay, after recording proper reasons; but, if stay is extended without assigning reasons, Department may move a rectification application
Rupee Gains 34 Paise Against Dollar In Early Trade
The rupee appreciated by 34 paise to two-week high of 62.35 against the dollar in early trade on Thursday at the Interbank Foreign Exchange after the American currency weakened overseas amidst sustained selling of the Greenback by exporters and banks.
Forex dealers said besides selling of the American currency by exporters and banks, the tumbling of the dollar against euro and yen following a surprisingly dovish forecast for growth and interest rates by the US Federal Reserve, supported the rupee.
Further, a higher opening of the domestic equity market influenced the uptrend in the rupee, they added. The rupee had closed almost flat against the dollar on Wednesday.
Meanwhile, the benchmark BSE Sensex rose sharply by 246.16 points, or 0.86%, to 28,868.28 in early trade on Thursday.
Source:hindustantimes.com
No evasion penalty when service-tax payable under reverse charge was otherwise available as credit
Service-tax : Where service tax not paid under reverse charge was otherwise available as credit, there was no intent to evade service tax and, accordingly, extended period and evasion penalty could not have been invoked
No need to furnish bank guarantee for filing appeal when return was filed before 20-3-2009 under Har
CST & VAT: Haryana VAT - Where provisions of section 33(5) relating to entertainment of appeal were amended with effect from 20-3-2009 and for assessment year 2005-06 assessee filed return before 20-3-2009 and Assessing Authority passed assessment order on 26-3-2009 and against assessment order assessee filed appeal, unamended provisions of section 33(5) would be applicable to instant case
Transmission charges paid to GAIL pursuant to agreement for supply of gas couldn't be held as techni
IT: Where transmission charges paid to oil company for supply of gas pursuant to a sale and purchase agreement, could not be termed to be an agreement for providing technical services; hence, provisions of sections 194C and 194J would not be applicable
Reassessment upheld as assessee failed to show that change in depreciation policy was in conformity
IT : Where assessment in case of assess-company was completed under section 143(3) read with section 115JB accepting returned loss, in view of fact that assessee had not produced requisite record to show that changes made in depreciation policy was in conformity with accounting standards as required under provisions of Companies Act, Assessing Officer was justified in initiating reassessment proceedings
Conduct of confederation of Real Estate Developers Association of India is not anti-competitive
Competition Act : Where no evidence was found to corroborate that Confederation of Real Estate Developers Association of India (CREDAI) had provided any platform, directly or indirectly to its members for indulging in any anti-competitive practice, there was no contravention of section 3
HC denied option to pay redemption fine for releasing confiscated goods to carries as he wasn't owne
Excise & Customs : Option to pay redemption fine in lieu of confiscation of goods cannot be granted to carrier of goods, when there is no record of proceedings against owner and owner has not come forward to claim goods
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