IT: Where assessee as guarantor had repaid instalments of loans taken by its subsidiary company for protecting its business, assessee will be entitled to deduction of interest on such payments
Monday, 23 March 2015
No TDS on interest paid to custodian of finance Co. when special Court exempted TDS liability on suc
IT : Where custodian was appointed for financial company from whom assessee had taken loan against pledge of shares, assessee would not be liable to deduct TDS on said interest payment made to custodian
Discount received by assessee on inter-state sale can't be deemed as 'commission; not liable to serv
CST & ST : Where assessee of Gujarat purchases goods from 'W' of Karnataka and sells them to 'A' of Jharkhand by transferring documents of title of goods in course of movement of goods directly from Karnataka to Jharkhand, said transaction is one of sale and, therefore, discount allowed by 'W' to assessee cannot be regarded as commission and cannot be charged to service tax
HC dismissed winding-up plea against debtor-Co due to existence of bona-fide dispute on overdue sums
CL: Where statutory notice of demand was not replied because of a bona fide and substantial dispute, no inference could be drawn against debtor-company to justify a winding up petition for inability to pay debts
AO to ascertain whether expats were rendering technical services after verifying actual services ren
IT/ILT: Where employees of affiliates abroad were rendering services to assessee-company as a part of any agreement of technical services agreed to be rendered by such affiliates to assessee, had to be seen based on verification of actual services rendered by them
Cheaper Iron Ore In India Doesn’T Impress Tata, Other Steel Majors
In the last couple of months, the price of iron ore may have come down by about 15% in India, reflecting global trends, but local steel companies remain unimpressed. In fact, some have even gone on record to claim it was a case of too little, too late.
The cheaper iron ore prices have gone down due to lower production costs of the ore, itself, and subdued demand in the domestic market. The state-run mineral producer, National Mineral Development Corporation (NMDC) had cut the price this month, too, by about $5 (Rs 300) per metric ton of lumps or higher grade iron ore and about $10 (Rs 500) per mt in fines, which contain less iron.
Steel companies said the price correction had come in too late and was too little to boost their margins. They said the NMDC price correction, and that by other iron ore manufacturers, had come “very late in the day,” and that it was also less than the global price correction.
Many steel companies in India have been relying on imported ore, once available at cheaper rates than Indian ore, to meet their needs. The Indian Government informed Parliament that while there was a dearth of iron ore in India, regional shortages due to the previous Supreme Court-imposed ban had led to a gap in supply and demand.
Lease renewals in the provinces of Goa and Odisha, and cancellation of mining leases in Karnataka had led to regional shortages of iron ore.
In Odisha, for example, there was a sudden spurt in ore imports this year due to a shortage of raw material locally caused by a slowdown in mining activities. Steel mills for major steel companies such as Tata Steel and Visa Steel were among the largest importers of iron ore.
The government instructed miners to increase value addition and improve iron ore availability for the domestic steel industry. Export duties on iron ore have been increased to 30%. For exports of iron ore pellets, a 5% export duty was imposed, while the government also reduced the Special Additional Duty on the import of melting scrap from 4 to 2% in the budget for 2015-16. Export Duties A Point of Contention
As was to be expected, the export duty has become a sore point with iron ore miners. Some miners, like those in Goa, are demanding an immediate withdrawal of export duties on iron ore, as the current market conditions are making the export of low-grade ores from Goa unusable, according to a statement from the Goa Mineral Ore Exporters’ Association. Goa miners largely export the low-grade ore to China.
Source:hellenicshippingnews.com
India: Rice Exports Up 6 Pc At 8.44 Million Ton In Apr-Dec 2014
India’s rice exports rose by 6.1 per cent to 8.44 million tonnes during the April-December period of current fiscal compared to 7.95 million tonnes in the same period of 2013-14.
In value terms, rice exports stood at Rs 35,157.38 crore during the period this fiscal against Rs 33,647.45 crore in the year ago period, Parliament was informed today.
Export of basmati rice during the nine-month period of this fiscal declined by 6.19 per cent to 2.57 million tonnes from 2.74 million tonnes in the same period last year, Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha. Iran is the largest importer of basmati rice from India.
“During the current year, Iran had significant carry over stocks from domestic production and heavy imports in past two years and hence has imposed a restriction on issue of import permits from October 2014,” she said.
Exports to Iran during the nine-month period declined to 705.52 thousand tonnes as against 1.18 million tonnes during the same period last year.
Other major export destinations for basmati rice are Saudi Arabia, Iraq, Kuwait and the UAE. Major export destinations of non-basmati rice include Benin, Bangladesh, Senegal, South Africa and Liberia.
Replying to a separate question, the minister said India’s automobile exports have increased by 16.92 per cent at 3,322,581 units during April-February this fiscal. In 2013-14, it was 3,107,893 units as against 2,898,907 units in 2012-13.
“There is no significant fall as such in passenger vehicle exports,” she said. In a separate question on third country export to Iran, she said the government has issued guidelines for allowing third country export of humanitarian goods (food, medicines and medical equipment) to Iran as part of oil payments due to that country.
“Ministry of Finance has decided that payments to the extent of USD 100 million per month for such third country exports to Iran would be allowed from the 45 per cent INR (domestic currency) vostro account (a kind of payment settlement mechanism) held with the UCO Bank,” Sitharaman said.
Payment over and above USD 100 million per month would be met from 55 per cent Euro component, the Minister said. “The balance in the INR Vostro Account of Iranian Commercial Banks with UCO Bank as on March 16, 2015 is Rs 17,895.50 crore,” she added.
Source:hellenicshippingnews.com
AO was directed to dispose off petitioner's objections keeping in view reasons recorded for issuing
IT: Where order disposing of objection raised by petitioner was beyond reasons recorded for reopening of assessment, Assessing Officer was to be directed to dispose of objections of petitioner to notice, afresh keeping in mind reasons recorded for issuing notice under section 148
ITAT couldn't pass ex-parte order without considering adjournment sought on medical grounds of couns
IT : Where Tribunal did not consider pray for adjournment sought on medical ground of assessee's advocate, order passed by Tribunal in absence of assessee was unjustified
Importing Coal Unjustified As Country Has Huge Reserves: Piyush Goyal
Union Minister Piyush Goyal said importing coal is “unjustified” at a time when the country is sitting on reserves totaling 300 billion tonne.
“When the country is sitting on a huge coal reserve, to import it is unjustified. The production of coal has risen from 432 million tonne to 460 million tonne and will cross 493 million tonne this year, which will be an increase of over 30 million tonne,” Goyal told a press conference here.
The Union minister of state for Coal said that the BJP-led government at Centre has accorded a top priority to coal and generation of power and that all-out efforts are being made to supply coal to electricity generating units across the country.
“The government is also giving mines to states to meet the requirement,” the minister said, adding the production of coal by the Coal India Limited has gone up by seven per cent since the BJP government came to power last year.
On the occasion, Goyal hailed Western Coalfields Limited (WCL), a Coal India subsidiary, for pulling the loss-making company out of red and producing 38 million tonne of coal. He said WCL will open a new mine every month.
Goyal said he was surprised to know that around eight crore housewives in the country burn coal to cook food. Earlier, he inaugurated Penganga open cast mine at Wani in neighbouring Chandrapur district. The mine has the production capacity of four million tonne.
Goyal also dedicated to nation Makardhokra Open Cast and Bhangegaon Open Cast mines having capacity of 2 million tonne and one million tonne, respectively.
Union Ministers Nitin Gadkari and Hansraj Ahir along with Maharashtra Chief Minister Devendra Fadnavis, Finance Minister Sudhir Mungantiwar and Power Minister Chandrashekhar Bawankule were present on the occasion. “Seventy million tonne of coal is set to be produced from these mines, which would be spared only for Maharashtra so that power is generated and provided to farmers at cheaper rates,” Goyal said, adding that 24 more new mines would be opened in next 2 years.
He said WCL will come up with a 200รข€“bed hospital at Koradi near Nagpur, besides setting up of a facility for treatment of Cancer in Nagpur city.
On the occasion, Fadnavis said the Penganga coal mine would help providing electricity at cheaper rates to farmers and transform their lives.
“The new mine would provide employment to the rural youth in addition to Rs 125 crore compensation for farmers or land owners under the provisions of new Land Acquisition Bill,” he said after performing the earth-breaking ceremony of Penganga coal mine at Wirur (Gadegaon) in Chandrapur district.
On Makardhokra and Bhanegaon coal mines, the CM said his government gave approval for the proposed mines within two months.
“WCL has given Rs two crore for cleaning and deepening of river Irai at Chandrapur as part of their social responsibility,” he said.
Fadnavis said the state government has purchased one crore quintals of cotton from farmers for Minimum Support Price (MSP) of Rs 4,000 per quintal. He said the government has a systematic plan in place to make villages free of water scarcity in near future.
As per the plan, 5,000 villages would be made free from water scarcity every year by implementing ‘Jalyukta Shivar Yojana’ in a time-bound and systematic manner, the chief minister said.
Maharashtra government has made a provision of Rs 1,000 crore for providing pumps for agriculture while Rs 3,000 crore will be provided for extending network of road in rural parts of the state.
In his address, Gadkari asked WCL to explore the possibility of setting up of a coal research laboratory in the region which will be on par with other laboratories of international standard, for improving quality of coal.
Our country needs 22 per cent drivers in near future and WCL should come forward to train youths so as to enable them to find employment in different parts of the country, he said.
Gadkari said Urea could be provided to farmers at a rate which is 40-45 per cent cheaper if a suitable coal block is allotted for setting up a coal-based urea plant in area.
Ahir, Union Minister of state for chemicals and fertilisers, said around 514 persons from the project affected families would be given employment in Penganga project.
Source:financialexpress.com
India Still To Pay $8.8 Billion To Iran For Oil Imports
Iranian Trade Minister, Nirmala Sitharaman, said that India still to pay $8.8 billion to Iran for oil imports.
Iran and Western powers are in talks to reach a framework agreement ahead of an end-March deadline to curb Tehran’s most sensitive nuclear activities in exchange for a gradual end to sanctions on the OPEC member.
India refiners settle 45 per cent of Iranian oil payments by depositing rupees in Tehran’s commercial banks’ account with UCO Bank, and withhold the remaining 55 per cent. Iran taps funds in the rupee account to import goods from India.
The balance in Iranian commercial banks’ accounts with UCO BankBSE -1.21 % was 178.955 billion rupees ($2.86 billion) as of March 16 while refiners owed Tehran $5.943 billion as on Feb. 28, Nirmala Sitharaman said on Friday.
Source:customstoday.com.pk
Rupee Trades At 62.31 Against Dollar
The Indian rupee strengthened for the sixth consecutive session against the dollar on Monday, tracking the gains in Asian currencies market.
At 2.10pm, the home currency was trading at 62.31 per dollar, up 0.25% from previous close of 62.47.? The local unit opened at 62.37 per dollar and touched a high of 62.24, a level last seen on 5 March.
“Dollar has been weakening against most global currencies after last week’s Federal Open Market Committee (FOMC) meeting where interest rate hike in the US was deferred for some time and this is reflecting in the rupee as well. The market will be watching 61.70-61.80 level for the rupee next before any major movement,” said Pramit Brahmbhatt, chief executive officer, Veracity Financial Services.
The Sensex equity index fell 0.10%, or 28.50 points, to 28,234.17 points. Major Asian currencies were trading higher against the dollar. The Malaysian ringgit was up 1.1%, South Korean won was up 0.74%, Indonesian rupiah was up 0.72%, Philippines peso was up 0.31%, while Taiwan dollar was up 0.11%. However, China offshore and China renminbi were down 0.16% each.
The yield on India’s 10-year benchmark bond was trading at 7.742% compared with its Friday’s close of 7.746%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has gained 0.92%, while foreign institutional investors have bought $5.47 billion from the local equity markets and $6.38 billion from the bond markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 98.177, up 0.27% from the previous close of 97.909.
Source:livemint.com
Court can't order re-auction at numerous occasions just to ensure sale of property at fair price
CL: Attempt made by court to ensure sale of property for adequate price not to be at expense of credibility of court auction sale
Comparable wherein extraordinary event of amalgamation had taken place couldn't be chosen as compara
IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering ITES services to its AE, in view of fact that two comparables selected by TPO were inappropriate on account of happening of extraordinary event of amalgamation, impugned addition made to assessee's ALP deserved to be deleted
Sale of gold to other States where delivery was taken by representatives of customers wasn't inter-S
CST & VAT : CST - Where assessee was carrying on business in Maharashtra State and he effected bulk sales of gold to known customers located in other States and delivery in most of cases was personally taken by representatives of such customers, sales in question were not inter-State sales
Managing Director, terminated as per terms of service couldn't later deny that he wasn't bound by se
CL: Where petitioner-managing director by virtue of employment agreement himself agreed to get terminated by company on notice with 90 days time, he was estopped to say that he was not bound by agreement he entered into
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