Govt Likely To Increase Import Duty On Sugar

India, the world’s second largest sugar producer, may hike the import duty on sugar to help its distressed cane farmers and mills that are reeling under the effect of low domestic and international prices.

The food ministry will push for a duty hike from 25% to 40%, said Ram Vilas Paswan, minister of consumer affairs, food and public distribution, on Wednesday. The minister was speaking after meeting farmers’ representatives from the 13 cane-growing states, a day ahead of his meeting with the chief ministers from these states.

A rise in the import duty will make imports uneconomical for sugar refiners despite a plunge in global prices.

The global sugar price index averaged 187.9 points in March —a sharp decline of 9.2% from February and the lowest since February 2009, according to the Food and Agriculture Organization (FAO) of the United Nations (UN). This was due to improved crop prospects globally, the UN body said earlier this month.

The domestic wholesale sugar price index was 175.3 in March, almost 10% lower than wholesale prices in October 2014 and 5.6% lower than the December 2009 prices.

India is also the world’s biggest sugar consumer, and currently, with the import duty at 25%, does not import sugar, said food secretary Sudhir Kumar on Wednesday.

“Sugarcane farmers are facing problems as mills owe them Rs.19,377 crore in dues from this season. We heard the farmers’ concerns today and will be meeting chief ministers from the 13 cane-growing states of the country tomorrow,” said Paswan. The mills also owe farmers an additional Rs.1,690 crore in dues from the last sugar season.

Farmers’ representatives have demanded the creation of a central buffer stock of 3 million tonnes (mt), government control on the quantity released in the market by the mills, support for the ethanol production, higher import duties and direct government support to farmers, said the minister. Paswan said that he would decide on the demands after hearing the states.

Sugar production in India is estimated at 26.5 mt in 2014-15, up from 24.4 mt in the previous year. After meeting the domestic demand, India is expected to have a closing stock of 9.5 mt by end of September. The dues to cane farmers are at a record high this year when compared to peak dues (as on March) of Rs.13,124 crore in 2013-14, Rs.12,702 crore in 2012-13, and Rs.8,577 crore in 2011-12.

In February, the government approved export subsidy on raw sugar to help mills cut distress sales and also clear the farmers’ dues. The mills were allowed to export 1.4 mt of raw sugar at a subsidy of Rs.4,000 a tonne.

“The decision on export subsidies came late. By February, international prices had crashed and mills could export only about 0.2 mt of raw sugar with the subsidy scheme,” said Abinash Verma, director general of Indian Sugar Mills Association, an industry lobby group.

“India is not importing sugar at present but a hike in import duty will help the domestic industry in the long run. The immediate need is to boost the domestic prices, and this can be achieved if the government steps in to purchase about 2.5 mt of sugar,” he added.

The large dues to cane growers comes in a crop season where farm incomes are under severe stress due to the recent spate of unseasonal rains, last year’s deficit monsoon and declining prices of key crops such as rice, wheat and cotton.

Source:livemint.com

India: Grapes Exports Fell By 30%

After a deceptive good start, grape exports to Europe this year have dwindled by nearly 30 per cent compared to last year. The loss in exports was not only in quantity, but also in prices, due to the fall of Euro and Rouble currencies.

Though statistics of exports to Russia, Bangladesh and China are not available, the percentage is less, said Jagannath Khapare, president of Grape Exporters Association of India (GEAI).

“The Russian market was available, but it was not viable to export so the percentage came down. This year Andhra Pradesh and Karnataka did not export,” Mr Khapare said on Tuesday.

“This was the worst season of my life. Overall, the grape farmer has been severely affected by nature, politics and economics,” said Draksha Bagiatdar Sangh (grape growers’ association) chairman Kailas Bhosale.

“Last year we exported about 10,000 shipping containers or 1,92,000 tonnes to European markets. This year, till now we have exported 35,000 tonnes.

We have also had to cope with the fall in the prices of Euro and Rouble. This fall in currency contributed to nearly 30 per cent loss in prices,” Mr Bhosale added.

In India, the grape season and exports began early — end of November last year, while the usual dates are from January 15 to first week of February. Indian grapes have a high export market because grapes are not available from any country early in the year.

So far, most of the vineyards in Nashik, Sangli, Solapur and Pune have already been harvested. So any exports during this week will not make much of a difference in export quantity. Most of the exports of around 32,000 tonnes this year are from Nashik, while other districts contributed about 3,000 tonnes.

In January this year, Mr Khapare had said that despite inclement weather which affected vineyards, they were projecting grape exports to touch 2,00,000 tonnes. However, hailstorms took a toll on the crop later and most of the vineyards on the brink of harvest were shredded.

Source:freshplaza.com

India's Vegetable Oil Import Increased By 24% In Last Five Months: Solvent Extractors' Association Of India

The overall import of vegetable oils during last five months, from November 2014 to March 2015, increased by 24% due to zero export duty on palm oil by Indonesia and Malaysia, said industry body, the Solvent Extractors' Association of India (SEA).

According to SEA, Import of vegetable oils during March 2015 is reported at 1,062,031 tons compared to 835,424 tons in March 2014, consisting of 1,053,034 tons of edible oils and 8,997 tons of non-edible oils, up by 27%. The overall import of vegetable oils during Nov.'14 to Mar.'15 is reported at 5,353,184 tons compared to 4,332,231 tons i.e. up by 24%.

Along with the nil export duty on palm products by Indonesia and Malaysia and reduced demand of crude palm oil (CPO) for bio diesel, pushed the export of palm products to India to reduce burgeoning stock held by the exporting countries. "Also, due to high prices of soybean and lesser realisation for oil and soybean meal in export market, resulted in lower crushing and lesser oil availability in domestic market, resulted in to higher import," stated the SEA release.

Import of refined oil's share reduced to 6% from 19% and reported at 303,066 tons compared to 817,615 tons during the same period of last year. Share of imported crude oil jumped to 94% from 81% and reported at 4,948,843 tons compared to 3,436,042 tons during the same period of last year, thanks to nil export duty on RBD Palmolein and CPO by exporting countries. "From April 1, Malaysia has imposed 4.5% export duty on CPO, while Indonesia shortly plan to impose export levies on CPO and RBD Palmolein. This will again change the ratio of refined oil as against crude oil imports," stated the SEA release.

Source:economictimes.indiatimes.com

Money Decides Transfers And Postings In Customs, Central Excise Depts

There is huge corruption in transfers and posting, largely at superintendent and inspector level, in the departments under Central Board of Excise and Customs (CBEC), apex policy making body for indirect taxes.

The senior IRS officers have nurtured such type of corrupt practices and it has gained alarming proportions after CBI arrest former CBEC Chairman B P Verma in 2001 on charges of bribery, corruption, possessing assets beyond known sources of his income.

Senior IRS officers takes money for transferring Superintendents and Inspectors of customs, central excise and service tax department under CBEC through middleman.

Superintendents and inspectors pay money to middlemen to secure transfers to preferred locations, i.e, sensitive postings like LCS (Land Customs Station), ICD (Inland Container Depot), Preventive, Range, Sector and Audit.

A sensitive post means, any position within the department whose occupant could cause adverse effect to the integrity and functioning of the department by virtue of the nature of his/her responsibility but in central Excise, customs and service tax departments sensitive postings mean, post to earn money (bribe).

A superintendent has to pay Rs 10-2 lakh for sensitive posting, depending on bribe earning position of the posting place, inspector has to pay Rs 8-1.5 lakh for same position,” said an official, who asked not to be identified.

“A clerk to a former customs commissioner in Lucknow, was a prominent collection agent. Anybody who gave money to that agent got the posting of his choice,” the official also said.

The role of that clerk is being played by the superintendents, junior IRS officers of the departments across the India. In these departments, it is sure that officers don’t follow race, creed or religion but they only follow money (bribe).

The bribe has destroyed the basic fabric of the administration in customs, central excise and service tax departments, because officials get into a position by bribing and also stay there by bribing not for their integrity and knowledge. There is money in postings, transfers and stopping transfers.

“Only the level varies depending on the capacity of senior IRS officers to demand and superintendents/inspectors to pay. When an official pays money to get posting, his or her effort is focused only on collecting more and more bribe from the public,” said the official, who asked not to be identified because he was not authorized to discuss the matter.

“Money officials seem to be benefitting from bribe in transfers and postings in customs, central excise and service tax departments,” he added.

“Since those senior IRS officers sitting at the postings decision-making, take money, officials below also get money 100 times of giving money for posting through million times of revenue evasion,” the official revealed about revenue evasion.

The business of transfers and postings will start in this month in the departments under CBEC, money giving-taking process has been initiated.

The Finance Minister Arun Jaitley should take stringent action against such type of the business to curb corruption and to fellow Prime Minister Narendra Modi’s policy ‘zero tolerance’ against corruption.

Source:tkbsen.in

Rupee Rises After 2 Sessions; Ends 15 Paise Higher Vs Dollar

The rupee snapped its two-day losing streak against the American currency, firming up by 15 paise to close at 62.36 per dollar on fresh selling by banks and exporters on the back of lower dollar in the overseas markets.

The rupee opened sharply higher at 62.38 per dollar against the last closing level of 62.51 at the Interbank Foreign Exchange (Forex) market and firmed up further to close at 62.36 per dollar, showing a gain of 15 paise or 0.24 per cent from its Monday's close.

The domestic currency had dropped by 27 paise or 0.43 per cent in the previous two trading sessions. It hovered in a range of 62.3600 per dollar and 62.4450 during the day. Good capital inflows and lower dollar overseas mainly boosted the rupee value, a dealer said.

Foreign portfolio investors bought shares worth Rs 417.01 crore on Monday, as per provisional data. On the global front, in New York the dollar snapped its six-straight session gains against the basket of currencies in early trade, after retail sales data failed to meet market expectations.

The dollar index, a gauge of six major global rivals, was up by 0.40 per cent today. However, the dollar was up against the yen in Asian trade today, with dip buying supporting the greenback, while slower growth in China weighed on the Australian dollar.

Source:timesofindia.indiatimes.com

Income from letting out of building alongwith other facility is taxable as business income if both a

IT : Where facilities given by assessee along with let out buildings/commercial establishments were inseparable and entire construction and interiors of buildings was done with sole intention of carrying on business, entire income would be assessed as 'business income'

Sum incurred in organizing a sports event to promote brand of foreign AE is an international transac

IT/ILT : Where expenditure incurred by sports channel owned by Mauritian AE for organizing brand promotional sport event in UAE was reimbursed by Indian assessee, same would fall under ambit of international transaction and was to be dealt under provisions of transfer pricing

CLB has no jurisdiction to direct SEBI to exercise its discretion in a particular way during an arra

CL: Jurisdiction of company court under section 391(2) read with section 394 is limited to ensuring statutory compliance in decision making process relating to a scheme and it does not extend to directing autonomous authorities such as SEBI and Stock exchanges to exercise their discretion in a particular way

Sales tax refund granted in appeal is also eligible for interest

CST & VAT : Gujarat Sales Tax/VAT : When assessment order is modified in appeal, refund granted by appellate order can be said to be granted by 'assessment order modified in appeal' and is therefore, assessee is entitled to interest thereon

Service provider and service receiver must act in harmony to claim wrongly paid service tax

Service Tax : Where service tax has been wrongly paid on a non-taxable service, refund claim thereof must be filed by service provider and service recipient should co-operate in service provider filing refund claim

Exp. incurred on issue of shares to set-up a manufacturing unit couldn't be capitalized; deductible

IT: Depreciation is not allowable on capitalised expenditure on issue of shares; such expenditure would fall within provision of section 35D

No penalty on assessee without considering his explanation, even though he had accepted additions ma

IT : Where addition was made an account of non-existing liabilities which was accepted by assessee only to avoid litigation, penalty imposed solely on basis of said addition overlooking details and explanation filed by assessee could not be sustained

Sum paid to manufacture batteries of 'Kodak Camera' without supplying raw materials wasn't liable to

IT : Transaction between assessee and manufacturer for manufacturing of specific batteries with name of assessee printed on cell, was to be treated as an 'agreement of purchase' which would not fall under provisions of section 194C

Imparting computer education in schools including leasing of computer hardware on BOOT basis is a wo

CST & VAT : Andhra Pradesh VAT - Where assessee was engaged in business of computer education and training and it entered into a contract with Government of Andhra Pradesh for imparting computer education in High Schools including leasing of computer hardware, software and connected accessories on BOOT basis, contract was a works contract

Allotment of shares in consideration to supply of medical equipment under an arrangement with suppli

CL: Where directors of company had an arrangement of allotment of shares against value of medical equipment supplied at inception of company, allotment of shares was perfectly valid

CBDT doubles exemption limit of conveyance allowance; revised limit notified

IT : Income-Tax (Sixth Amendment) Rules, 2015 – Amendment in Rule 2BB

No TDS on additional payment made due to Forex fluctuation if tax was deducted at the time of credit

IT/ILT: Provisions of section 195 provide that once tax is deducted at source at the time of credit of payment, there can be no question of deduction of tax at source on full or in part at the time of payment. Once tax was deducted at the first stage when the amount of income was credited to the account of payee, which was done by converting foreign currency into TT buying rate on that particular date, then the assessee could not be called upon to deduct tax at source on the additional liability

Interest earned by society on short-term deposits in course of providing credit facilities was deduc

IT : Where co-operative society was engaged in business of providing credit facilities to its members, deposited excess amount for short term in bank, interest earned was entitled to be deducted under section 80P

No additions by AO relying upon report of Valuation Officer in absence of any material indicating un

IT: Where due disclosure of acquisition of properties had been made in course of regular assessments by assessee, Assessing Officer in block assessment could not have brought to tax said amounts based upon DVO's report in absence of any material pointing to under valuation

No exemption on sale of 'jute canvas cloth' under Uttar Pradesh Trade Tax Act, 1948

CST & VAT: U.P. VAT - Where assessee dealt in jute canvas cloth and it claimed exemption from payment of tax on sale of same, in view of entry No. 53 of notification dated 31-1-1985 issued under section 4(a), sale of jute canvas cloth was not exempted from payment of tax

In deciding stay application Tribunal to consider assessee's plea of wrong invocation of extended pe

Service Tax : Where, in stay application, assessee had argued that there was no express finding in adjudication order as to circumstances warranting extended period, Tribunal must deal with assessee's said contention on time-bar

ITAT directs AO to re-determine whether sum received by foreign Co. was reimbursement or FTS

IT/ILT: Matter be readjudicated to determine whether sum received by a foreign company from Indian subsidiary was reimbursement of expenses or fee for technical services as per article 13 of DTAA between India and UK in absence of relevant agreement

HC lambasts AO for making suo-motu rectification when superior authority had passed order in favour

IT : Assessing Officer could not pass order suo motu under section 154 levying interest under sections 234B and 234C when superior authority had already passed an order against levy of interest