Merely making a claim under wrong provision doesn’t lead to levy of concealment penalty

IT: Incorrect claim of expenditure would not amount to giving inaccurate particulars of income and thus, concealment penalty was not called for

Composite SCN is valid but duty liability in that case has to determined for each party separately

Excise & Customs : Mere issuance of show cause notice in a composite manner to two parties alleging clandestine removal, would not vitiate proceedings; but adjudicating authority cannot apportion liability based upon past figures, he must determine duty payable correctly by each party

Institute providing coaching to students appearing for competitive exams is eligible for sec. 10(23C

IT: A coaching institute giving coaching to students for various competitive examinations is eligible for exemption under section 10(23C)(iiiad)

HC affirms disallowance of resale-exemption claim as assessee held trade mark in respect of goods so

CST & VAT: Maharashtra VAT - Where assessee, a manufacturer of motor vehicles, sold a chassis to its dealer and later it purchased said chassis from dealer and thereafter it sold chassis on hire purchase basis to a customer, Tribunal was justified in disallowing re-sale claim of assessee on ground that it held trade mark in respect of chassis sold to customer and further amount of hire purchase premium would form part of sale price

Personal dispute among creditor and co. couldn't be a ground to stall an undisputed scheme of arrang

CL: A private dispute between an objector and company could not be used to stall a scheme which was otherwise not opposed to public interest

Entity engaged in high skill IT services couldn't be a comparable to routine IT service provider

IT/ILT : A company indulged in high skill IT services is non-comparable to routine IT Enabled service provider

CBEC allows e-payment of service tax till midnight of March 31, 2015

ST LAWS : Extension of e-payment Deadline and of Banking Hours

Govt Mulls Anti-Dumping Duty On China Steel Imports

The government is considering imposing anti-dumping duty on steel imports from China to check the galloping rise in supply from the neighbouring country, a move aimed at safeguarding the interests of domestic firms such as SAIL, Tata Steel and JSW.

Domestic primary steelmakers are worried about a potential surge in imports which have turned cheaper in recent months. The price differential between domestic and imported hot rolled coil, for instance, is Rs 3,000-4,000/tonne or around 10% at present. “The domestic steel industry is under stress due to rising imports from China.

Steel producers as well as the government are concerned about this trend. We have written to the finance ministry seeking a rise in import tariff,” mines minister Narendra Singh Tomar said on Wednesday. A decision to impose anti-dumping duty has to be made by the designated directorate, with quasi judicial powers. Such duties are imposed if the directorate finds that the imports inflict injury to domestic producers.

Domestic companies have been, for quite some time now, clamouring for hiking import duty, which ranges between 5 % and 7.5% for different products. Paying heed to their plea, Tomar had written to his finance counterpart Arun Jaitley ahead of the Budget.

Jaitley in the Budget provisioned for raising the tariff rate on steel to 15% from 10% now at a later date if needed. However, no hike has been effected in the last one month. Indian steelmakers have already started urging the government to implement the budgetary provision.

Steel imports to India are most likely to hit a record high of over 9 million tonne in 2014-15 from 5.45 million tonne in the previous fiscal.

Industry sources said steel producers have curtailed production due to competition from rising imports from China, which produces more than what the rest of the world does collectively. In the face of a glut on the back of subdued domestic demand, exports let Chinese steelmakers stay afloat.

Steel is also coming in large quantities into the Indian market from Japan and Korea, taking advantage of the respective bilateral free trade pacts. Along with China, these two countries account for nearly 70% of India’s imports. “Large-scale Chinese imports are taking place particularly in areas of wire and coils.

This is happening because these items are being made available here at Rs 3,000-Rs 4,000/tonne cheaper. They are docking products at their manufacturing costs benefiting from export sops by the government.

The last four-five months have been particularly worse for us. There is an urgent need to raise customs duty by 5%. Otherwise, it will be difficult for Indian firms to even survive,” said an official of a public sector steel firm.

Meanwhile, Tomar said the Centre would send the draft rules for mines’ auction to states for vetting in a week’s time and after getting their inputs, final rules will be framed for allocation of mines containing minerals such as iron ore and bauxite. States would be given sufficient time to respond.

The recently-passed Mines and Minerals (Development and Regulation) Act mandates the Centre to lay out the norms for auctions, for which it has taken consultancy from SBI Capital Markets, the investment banking arm of the country’s largest lender.

Source:financialexpress.com

Global Expansion Planned, Coal Giant Eyes Three Nations

State-owned coal mining giant Singareni Collieries Company Limited is eyeing overseas coal mines and will soon announce an EoI (Expression of Interest) for exploration in South Africa, Australia and Indonesia.

“We are looking for greenfield mines and the mining in these countries can yield 5 MTPA coal; the EoI is likely to be published in the second week of April,” said N. Sridhar, chairman and managing director of SCCL.

“We formed a task force which gave an initial report and accordingly we are publishing the EoI. We may acquire 100 per cent of coal mines there or may go jointly with the local companies or even tie up with Coal India, NMDC etc.,” he said at a press conference here on Thursday.

SCCL is also aiming to import 1 million tonne of coal initially to reduce the demand-supply gap and meet small and high value customer requirements.

With capital expenditures of Rs 2,390 crore, the company has tasked itself to produce 56 million tonnes of coal this financial year and is targeting to produce 75 million tonne in the next five-year period.

The company has also started surveying Bayyaram mandal of Khammam district for iron ore in collaboration with Geological Survey of India, and the state geology and mines department. It will give its report in another 45 days stating the quality of iron ore, Mr Sridhar said.

Explaining that the SCCL had got Tadicherla and Naini coalfields as well, Mr Sridhar expressed hope that the company would meet the requirements of the new power projects of TS on the anvil.

Admitting poor performance as pointed out by Comptroller and Auditor General, he blamed lack of application of new technologies as the main reason. He added that the company had clocked a net profit of Rs 418 crore.

Soruce:deccanchronicle.com

India’S Platinum Demand To Rise 25% This Year

Business Standard reported that demand for platinum in India is likely to rise twenty five per cent this year, attributed to growing consumers’ interest in bridal jewellery and other innovative collections.

"In its latest quarterly analysis, London-based World Platinum Investment Council (WPIC) has pegged India’s platinum demand at 125,000 ounce (oz) in 2015, compared with 100,000 oz in 2014.

Platinum demand is steadily rising in India with the introduction of innovative designs of jewellery and wedding sets. The Gem & Jewellery Export Promotion Council (GJEPC) estimates India’s platinum import during April-October 2014 at $11.99 million against $6.81 million imported in the year-ago period.

Source:metal.com

Foreign Trade Policy: Textile Exporters Cry Foul, Say They Are Ignored

Textile exporters are feeling let down by the new foreign trade policy (FTP), which they said has ignored the cotton yarn sector. The Commerce Ministry announced the much-awaited FTP on Wednesday.

Texprocil Chairman R K Dalmia, in a statement, said the FTP outlines the vision, goals and objectives for the country's export-import sector for 2015-20, but wondered if the high export targets set by the government are going to be achieved by promoting exports of handloom and coir products.

The government has also set the goalpost of $900 billion by 2019-20 from the current level of $465.9 billion in 2013-14. While lauding the macro aspects of the policy, he regretted that a sector like textile and clothing, the second-largest employment provider in the country, has not got its due in the FTP.

The textile sector has been granted duty scrips of 2 per cent only for mainstream cotton textile products at a time when it's facing challenges in the form of high tariffs and barriers due to preferential tariff arrangements.

In contrast, higher rates have been given for handlooms, carpets, coir products under the Merchandise Exports from India Scheme (MEIS).

"Sectors like cotton yarn have been totally ignored, especially at a time when exports of these products have declined sharply and face high logistics cost when exported to markets like Latin America," he said.

Source:firstpost.com

Agri-Commodity Exports To Fall Over 10% Due To Slump In Global Food Prices

With global food prices slumping to six-year lows in March due to bumper production and high inventory levels, Indian agri-exports are likely to face a setback. Most agri-commodities are currently trading below Indian minimum support price (MSP) in the global markets.

“Most commodities in global markets are trading below the prevailing MSP in India. This will translate to at least 10% lower exports of agri commodities from India in 2015-16 from the current estimated level of $32 billion including agri commodities and plantation products,” said Ajay Sahai, Director General, Federation of Indian Export Organisation (FIEO).

While India’s agri commodity exports would be lower, import bill for commodities like vegetable oil and pulses will also be subdued.

Data compiled by the Food and Agriculture Organisation (FAO) of the United Nations showed the world food price index continued to drop in March, down 18.7% (40 points) below its level a year ago. It is also a 1% dip over February 2015. Overall, except for a pause in October 2014, global food prices have been falling steadily since April 2014, on account of large supplies.

“Fall in global prices will impact prices of agri commodities in India to the extent they are traded with global markets. Commodities like chana, wheat and rice are determined largely by domestic factors as they are less connected to global markets. Sugar, pulses and edible oils, however, will be affected. Commodities like maize will also get impacted as India exports huge quantity of maize,” said Madan Sabnavis, Chief Economist, Care Ratings.

Agri commodity prices have declined by up to 34% in the last one year. Wheat prices in global markets have plunged 34.4% to trade at $181.18 a tonne. Cotton and maize prices have also fallen by 33.24% and 31.32% to end the financial year 2014-15 at $1376.34 a tonne and $175.89 a tonne respectively. RBD palmolein and sugar posted a decline of 28.99% and 24.59% to trade at $612.50 a tonne and $357.60 a tonne respectively.

“Despite government’s assistance of Rs 4,000 a tonne on raw sugar exports, Indian mills are unable to ink purchase contracts with global buyers due to steep fall in raw sugar prices in the benchmark New York Mercantile Exchange. Sugar prices have hit seven-year lows due to over production in global markets and falling Brazilian real which makes export from Brazil more remunerative,” said Abinash Verma, Director General Indian Sugar Mills Association (ISMA).

Meanwhile, FAO has raised production and carryover stocks of cereals in March from its earlier forecast in February. Since last month, FAO has raised its 2014 world cereal production forecast by 2 million tonne to 2,544 million tonne, mainly accounting for a larger than anticipated maize harvest in the EU. At this level, global cereal output in 2014 would outstrip the 2013 record by 1%.

FAO's forecast for world cereal utilisation in 2014-15 has been raised by nearly 17 million tonne to 2,493 million tonne, and now stands at 2.6% (63 million tonnes) above the previous season's revised estimate. Thus, world cereal stocks, by the close of crop seasons ending in 2015, have been revised up sharply and now stand at 645 million tonne, 6.2% or 38 million tonne above the 2014 level.

Source:business-standard.com

India: Credai To Import Chinese Cement

Following the Telangana government's decision to impose a road tax on trucks from Andhra Pradesh and the spiralling hike of cement prices facing builders, the Confederation of Real Estate Developers' Association of India (CREDAI) is planning to import cement, particularly from China.

With truck owners suspending their operations in protest of the new tax, cement shortages have been reported. "At present, the cost of a premium cement bag is INR365 in the retail market, and it is set to increase steeply, as transportation costs will shoot up with the TS government's decision to impose road tax on trucks from AP," said CREDAI Vijayawada chapter president C. Sudhakar.

"In all probability, the cost of a cement bag imported from China will be around INR300. In addition to the availability of quality cement, the price pattern will help in reducing the input cost considerably. It will definitely impact the local industries in Telangana," Mr. Sudhakar said.

Source:cemnet.com

India, China Cut Crude Oil Imports From Nigeria

India, which recently replaced the United States as Nigeria’s biggest oil market, cut its import of the country’s crude by 38 per cent in December, while China did not import a barrel from the country in the period, data obtained from the Nigerian National Petroleum Corporation revealed.

India’s import of Nigerian crude tumbled to 5.2 million barrels in December, from 13.7 million in October and 12.4 million in November 2014.

China, which bought 1.9 million barrels of Nigerian crude in October, reduced its import from the country by 50.3 per cent to 946,913 barrels in November.

With the decline in imports from India and China, the share of the Asian region in Nigeria’s crude oil export dropped to 20 per cent in December from 30 per cent in October and 27 per cent in November.

The Asian region, which is the major target market for many oil exporters, is a key market for Nigeria.

Total export from Nigeria in the month of October stood at 65.9 million, down from 67.1 million barrels in September and 70 million barrels in August, according to the NNPC data.

“Four regions namely, Europe, Asia and Far East, South America and Africa remain the major destinations of Nigerian crude and condensate export,” the NNPC said.

Europe continued to be the largest regional importer of Nigerian oil as its imported 31.4 million barrels in December, up from 23.6 million barrels in October.

The Head of Energy Research, Ecobank Capital, Mr. Dolapo Oni, told our correspondent that the decline in imports from the country’s top importers – India and China – was expected, adding that it became cheaper to buy oil from several other countries, especially from Central and South America.

“There was a lot of substitution between cargoes from West Africa and from these regions. Furthermore, Saudi Arabia raised oil output from 9.6 million barrels per day to 10 million bpd within the last quarter of 2014 to compensate for the fall in Libya’s oil output.

“The proximity to Asia means the extra barrels were pushed into Asia at lower prices. Saudi Arabia cut its official selling price to Asia in October and November but raised it slightly in December.”

Not only has the United States drastically reduced its import of Nigerian crude as a result of its increasing shale oil production, the country is gearing up to export its crude oil, with Asia being a key target destination.

After months of pressure over the ban on exports of most domestic crude in the US, the President Barack Obama administration in January took steps that were expected to unleash a wave of ultra-light shale oil known as condensate onto global markets.

The US imports of Nigerian crude oil tumbled by 75 per cent last year to 21.51 million barrels, the lowest since the country started importing from Nigeria, the US Energy Information Administration said.

The country, which traditionally had been the largest importer of Nigerian oil until the last few years, changed to the 10th largest in 2014. In July last year, the US imports of Nigerian crude fell to zero for the first time on record, according to data from the EIA.

Analysts at Ecobank had recently raised concerns that the continued oversupply in the global oil market and the weak global economic picture could constrain oil demand.

“Thus, Nigeria could see a major reduction in oil revenues in 2015 compared to 2014 due to the much lower average oil price anticipated in the year. The country already faces considerable difficulties in selling its crude oil cargoes with a persistent overhang for its crude oil cargoes since December 2014,” they said.

The Ecobank analysts said the NNPC had offered further discounts to push sales but increasingly faced lower price differentials.

They noted, “This is expected to redirect government attention to other revenue sources as it seeks to fill the gap in its revenue profile. Receipts from crude oil sales have traditionally provided over 67 per cent of government revenue.

“The lower oil price environment could also sustain the downward trend in the country’s foreign reserves and exchange rate, which are dependent on the foreign currency earned by crude oil sales.” Crude oil exports account for over 90 per cent of the country’s exports and remain the key source of foreign currency.

Source:hellenicshippingnews.com

No TDS on commission paid to NR agent for rendering services outside India if he didn't have any PE

IT/ILT: If services, for which payment had been made to non-resident was wholly rendered outside India, no TDS liability would arise

Services rendered at principal's place for which remuneration is paid as per work Isn't manpower sup

Service Tax : Where assessee carries out certain activity at premises of their principals and remuneration towards their services are to be paid as per work executed and as not per labour supplied, then, said services cannot amount to 'manpower supply services'

HC approves arrangement scheme for rescheduling secured debentures as Co. had enough assets to disch

CL: Scheme of arrangement proposed by petitioner a shareholder of company, between company and its debenture holders was to be sanctioned as debenture holders had agreed to scheme of arrangement and there were substantial assets to discharge claims of debenture holders

No denial of sec. 10(26) relief to member of Schedule Tribe merely because he doesn't belong to spec

IT : Any member of a Scheduled Tribe declared to be so under article 342 of Constitution, even though he does not belong to specified area, would be entitled to benefit of section 10(26) when posted at a station in specified area and residing therewith in connection with his employment

IRDA grants 3 months extension to insurers for filing 'Board Approved Policy' for appointment of age

INSURANCE : Guidelines on Appointment of Insurance Agents 2015 – Instructions to Insurers

Merely making a claim under wrong provision doesn’t lead to levy of concealment penalty

IT: Incorrect claim of expenditure would not amount to giving inaccurate particulars of income and thus, concealment penalty was not called for

No goodwill arises if retiring partners weren't paid in excess of balance in capital a/c; dep. claim

IT : Where assessee claimed depreciation contending that retiring partners were paid their share of goodwill at time of retirement, in view of fact that no tangible or intangible asset was acquired on retirement of partners as nothing was paid in excess of amount due to partners in their capital account, assessee's claim was to be rejected

Service-tax law doesn't empower CAG to audit non-government cos. who aren't receiving aid from any G

Service Tax : There is no provision in service tax law or central excise law or CAG Act which empowers CAG to audit accounts of a non-government company, not in receipt of aid or assistance from any Government or Government entity

Merely making a claim under wrong provision does lead to levy of concealment penalty

IT: Incorrect claim of expenditure would not amount to giving inaccurate particulars of income and thus, concealment penalty was not called for

Tribunal had rightly set aside penalty on 'IndusInd Bank' as there was no concealment of particulars

IT : Where revenue authorities passed penalty order taking a view that assessee had raised a false claim of depreciation, in view of fact that assessee brought all relevant particulars on record in support of its claim, impugned penalty order deserved to be set aside.

Marker and highlighter are 'pen' and exempt from sales tax; eraser and carbon paper are stationery a

CST & VAT: Marker and highlighter are 'pen' and exempt from sales tax; eraser and carbon paper are stationery and taxable

Exp. incurred by developer on sponsorship and brand building was a selling exp; it couldn't be capit

IT : Where assessee was in construction business, advertisement, sponsorship and brand-building expenses which were only in nature of selling costs of construction business, would not be capitalized

No denial of sec. 10(26) relief to member of Schedule Trib merely because he doesn't belong to speci

IT : Any member of a Scheduled Tribe declared to be so under article 342 of Constitution, even though he does not belong to specified area, would be entitled to benefit of section 10(26) when posted at a station in specified area and residing therewith in connection with his employment