IT/ILT : Section 90 of the Income-Tax Act, 1961 – Double Taxation Agreement – Revised Agreement between India and Republic of Korea for Avoidance of Double Taxation and Prevention of Fiscal Evasion of Taxes on Income
Thursday, 7 May 2015
Complaint filed for defective goods within 3 years of expiry of guarantee period wasn’t barred by li
MRTP: Suit in respect of supply of defective hammer could be filed within three years of expiry of guarantee period and, therefore, compensation application filed in respect of that hammer just after two years of expiry of guarantee period would not be barred by limitation
Even use of other brand's name on invoices rather than on goods would lead to denial of SSI exemptio
Excise & Customs : It is not necessary that brand/trade name/mark must be affixed on goods; marketing/selling under brand name of other person by using other's brand on invoices, also disentitles an assessee from claiming SSI-exemption
Co. providing software support services isn’t comparable with an entity engaged in software developm
IT/ILT : A company engaged in software licence and related services cannot be compared to software development service provider
Compliant filed for defective goods within 3 years of expiry of guarantee period wasn’t barred by li
MRTP: Suit in respect of supply of defective hammer could be filed within three years of expiry of guarantee period and, therefore, compensation application filed in respect of that hammer just after two years of expiry of guarantee period would not be barred by limitation
Value of factory portion let out to subsidiary Co. for carrying out job work for assessee was includ
IT: Where assessee let out a portion of factory building to subsidiary company for carrying out job work on its behalf, said portion could not be said to be used by assessee for its own purpose of manufacturing in terms of section 40(3)(vi) of Finance Act, 1983, and, thus, value of said portion was to be included in assessee's net wealth
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
Cash seized during search can be adjusted against advance tax liability
IT : Cash seized during search might be adjusted against advance tax liability and, thus, assessee would not be liable to pay interest under section 234B
Sponge Iron Units Upbeat About Demand Revival
With imports of ferrous scrap coming to a standstill, demand for sponge iron is expected to revive in the coming weeks once existing stocks are exhausted.
In its new foreign trade policy, effective April 1, the government has made mandatory videography of loading of scrap containers in the originating country, which importers believe is impossible. So the entire quantity of around 10 million tonnes of steel scrap import is likely to get affected.
“The steel industry uses scrap as a blend to manufacture steel. But sponge iron can be used in place of scrap. This means demand of sponge iron will rise,” said Nitin Johri, Chief Financial Officer of Bhushan Steel.
India’s sponge iron production is estimated at 18 million tonnes annually. But weak demand from domestic steel mills has hit the profitability of sponge iron producers. After falling to the level of Rs 20,000 a tonne early this year, sponge iron is currently quoting at Rs 21,100 a tonne.
“Sponge iron prices remained subdued for the last couple of years due to weak demand from steel mills. Now, with reports of scrap scarcity, sponge iron demand and thereby price will pick up,” said Anand Choudhary, Chhattisgarh Sponge Iron Manufacturers’ Association.
Industry sources estimate sponge iron sales to have grown by 24.3% in 2014-15 due to the stellar performance by large steelmakers. Sponge iron is mainly used to produce long steel which is used in construction. Steel production is expected to grow 6.2% in 2015-16 as against a 4.3% rise in production during April 2014-February 2015.
The government has announced a number of infrastructure projects, which are expected to drive demand for steel. Owing to this, production of sponge iron is also likely to grow by 6.4% in 2015-16.
The prices of iron ore and non-coking coal, which are used to produce sponge iron, have fallen sharply since 2013. Iron ore prices have fallen from $152 per tonne in 2013 to $50 per tonne currently. Although domestic prices were considerably higher compared to international rates, they have witnessed a sharp fall in the second half of 2014-15. Domestic producers of iron ore are also reducing prices to compete with cheaper imports. Therefore, raw material expenses are expected to go up by 11.9%, a tad slower than sales.
Operating profits of the sponge iron industry are estimated to have grown drastically during 2014-15. Operating margin of the industry is likely to have almost doubled to 11.1%. During 2015-16, however, operating margins of the industry is likely to remain flat.
At the net level, the industry is estimated to have turned around in 2014-15 by reporting a net profit equivalent to 2.1% of total income as against a loss equivalent to 3% of total income reported in 2013-14. The net profit margin of the industry is likely to expand by 25 basis points to 2.4% in 2015-16.
Source:business-standard.com
Manmade Yarn And Fabric Industry Likely To See Growth Rate Of 5 To 7Pc In This Year
The manmade yarn and fabric industry likely to see growth rate from five to seven percent in 2015-16, with stability in crude oil prices. However, as Indian synthetic yarn and fabric performance has not been one of the best internationally, the domestic market will see the larger growth.
In 2015-16, demand recovery for manmade filament, fibre, yarn and fabric is likely to be backed by an increase in off take by apparel manufacturers, as per CMIE report. The apparel segment consumes a little more than half of the total synthetic fibre produced by the industry.
Manufacturers of home textiles and technical textiles are also expected to increase the usage of synthetic fibres during the year. Also, with crude oil prices expected to remain stable, PTA and mono-ethylene glycol prices are likely to come down, too, leading to a decline in polyester prices by 8 to 12 percent this year.
Domestic and international prices of both the polyester raw materials had plunged in the latter half of 2014-15, led by a steep decline in crude oil prices. So, polyester prices had corrected sharply during the period.
In 2014-15, demand for most manmade filament & fibre due to a decline in prices of cotton yarn was low. Also in July 2014 the levy of anti-dumping duty on import of purified terephthalic acid (PTA), a major input, further hit domestic production of polyester filament yarn.
Sanjay Jain, managing director of TT Ltd and vice-president, Federation of Hosiery Manufacturers Association of India said that unlike the seasonality for cotton, synthetic textile products can be produced through the year. Also, there is expected to be more consumer demand for woven and non-woven synthetic textiles, and the industry anticipates equal growth in the synthetic yarn and fabric market in both segments .
According to O P Lohia, chairman, Indo Rama Synthetics (India) Ltd, with markets like Brazil, Turkey and Egypt under pressure for several reasons, demand for polyester yarn and fabric will be under pressure this year. Also, under the government's new import/export policy, while there is a push for polyester exports, almost all forms of exemptions have been removed, making polyester exports uncompetitive.
Exports could play spoilsport this year. But if the economy does well, this could go up to double digit growth. But the domestic market is anticipated to see normal growth.
Jyotiprasad Chiripal, director at Chiripal Group said that this year with crude oil prices likely to remain stable at $60-50 a barrel, market demand for polyester expected to see rise by 5 to 7 percent. Chiripal Group has a polyester yarn manufacturing capacity of 200 tonnes a day.
Source:yarnsandfibers.com
Iol Chemicals Receives Approval For Metformin In Europe
IOL Chemicals & Pharmaceuticals Ltd (IOLCP), one of India’s leading active pharmaceutical ingredient (API) manufacturers, has received CEP certification (Certificates of Suitability) for its product metformin hydrochloride from European Directorate for the Quality of Medicines & Healthcare (EDQM) authorities, Council of Europe, France. Metformin hydrochloride is an API used in pharmaceutical products for treating people with type 2 diabetes.
The certificate, which is valid for a period of five years from the date of issue (ie April 17, 2015), will enable IOLCP to sell metformin hydrochloride in Europe resulting into increase in higher value added export turnover and margin.
“The company has already holding valid CEP certification (Certificates of Suitability) for its products ibuprofen & lamotrigine from European Directorate for the Quality of Medicines & Healthcare (EDQM) authorities, Council of Europe, France and selling these products in Europe,” said IOLCP in a press release.
IOL Chemicals, a major player in the organic chemicals space, has wide presence across various therapeutic categories like, pain management, anti-diabetic, anti-hypertensive, anti-convulsants, etc.
Source:business-standard.com
Oilmeal Exports Lose Momentum, Down 35% In April
Oilmeal exports fell 35 per cent to 1.62 lakh tonnes in April due to a significant decline in soyabean meal shipments, industry body SEA today said. The country had shipped 2.48 lakh tonnes of oilmeal, used as animal feed, in the year-ago period.
"In spite of five per cent reward rate under the new Exim Policy and rupee depreciation, the export of soybean meal is at a historical low at just 18,017 tonnes in April," Solvent Extractors' Association of India (SEA) said in a statement.
Soyabean crushing is very much reduced due to continuous disparity in prices. The prices are high due to heavy speculation in the commodity futures market vis-a-vis lower realisation for meal and oil, affecting overall domestic availability, it said.
Also, the domestic demand for oilmeal has come down, adding to the woes of the industry. "Capacity utilisation is at the lowest and many plants are closed down due to disparity in crushing," SEA added.
According to the SEA data, soyabean exports fell to 18,017 tonnes in April this year as against 89,883 tones in the same month last year while the shipment of rapeseed meal declined to 69,398 tonnes from 1,25,872 tonnes in the review period. Similarly, the shipment of rice bran extraction has dropped to 4,000 tonnes from 12,180 tonnes.
However, the export of castorseed meal went up to 70,641 tonnes in April this year as against 20,378 tonnes in the year ago while the shipment of groundnut extraction rose to 350 tonnes from 132 tonnes in the said period.
A maximum of 1.19 lakh tonnes of oilmeal was exported to South Korea, followed by Thailand (10,500 tonnes), Egypt (9,050 tonnes) and Taiwan (6,411 tonnes) in April. India exports oilmeal to countries such as South Korea, Thailand, Vietnam, Taiwan, Indonesia, Iran and European nations.
Source:business-standard.com
No Duty Free Import Scheme For Raw Sugar Now
In a recent development, government has removed a duty free import scheme for raw sugar, with an aim to cut down on supplies from overseas and help the cash-starved sugar industry in the country.
“Import of “raw sugar” under Duty Free Import Authorisation (DFIA) scheme is withdrawn with immediate effect,” Directorate General of Foreign Trade (DGFT) has notified earlier this week.
Under the scheme, refiners were allowed to import raw sugar, which had to be processed and then exported.
The government had also recently hiked the import duty on sugar to 40 per cent from 25 per cent and scrapped the excise duty on ethanol made from molasses.
Source:knnindia.co.in
Global Food Import Bill May Fall To Five-Year Low In 2015: Fao
The world’s food import bill may reach a five-year low in 2015, driven by a decline in international prices, low freight rates and a strong dollar, the United Nation’s Food and Agriculture Organisation (FAO) said on Thursday.
Global cereal production is likely to decline by 1.5% from last year’s record output but the impact will be “cushioned by exceptionally high levels of existing stocks”, according to forecasts in the Food Outlook report released by FAO.
FAO forecasts global cereal production in 2015 at 2.5 billion tonnes, lower than last year, but nearly 5% higher than the average of past five years.
The driving factor behind the lower food import bill is the slump in commodity prices due to large supplies, FAO said.
FAO’s Food Price Index slid further in April by 1.2% from March, reaching 171 points, its lowest level since June 2010 and 19.2% lower than a year ago.
Except for meat, prices of all other commodities tracked by the index, including cereals, sugar, dairy and oils, declined further during the past month.
“Several years of solid harvests and stockpiling mean most basic food commodities are in surplus. As a result, the projected drop in cereals output is not expected to impact availability of food for consumption,” the UN body said in a statement.
Sugar production is expected to increase only slightly, it added, driven by India, the European Union and Australia, but will surpass consumption for the fifth consecutive season.
FAO’s latest estimates do not augur well for Indian farmers who have been battered by low prices of key crops like rice, wheat and sugar, alongside weather uncertainties during the 2014-15 crop season.
Source:livemint.com
Materials used in railway tracks meant for handling raw materials/finished goods inside plant are ca
Cenvat Credit : Railway track materials used in 'railway tracks' meant for transporting hot metal from blast furnace to pig casting machines for manufacturing pig iron and also used for handling raw materials and processed/finished goods, are eligible for credit as 'capital goods'
Tribunal couldn't go into merits of case while hearing appeal against order directing pre-deposit of
VAT/CST : Gujarat VAT : Where Commissioner (Appeals) has dismissed appeal for non-compliance with pre-deposit, then, on appeal thereagainst, Tribunal can only decide upon validity of pre-deposit; Tribunal cannot go into merits of assessment order
Civil Court can't return complaint to DRT for lack of jurisdiction, as it can either reject complain
Banking Laws : Pending bank's claim before DRT, civil suit filed by debtor raising counter claim cannot be returned for presentation before DRT; same can only be rejected if barred by law
Assessee is not entitled to interest on delayed payment of interest on tax refund
IT: Assessee is not entitled to any interest for delayed payment of interest under section 244A on principal refund amount
Rupee Breaches 64-Mark Against Dollar
Continuing its weakness, the rupee dipped below the 64-mark to trade at 64.25 against the American currency, its lowest since September 2013 on sustained capital outflows by foreign funds.
Surge in crude oil prices globally too weighed on the rupee, however, dollar’s weakness overseas, capped losses in the local unit, traders said.
Persistent foreign funds outflows, weighed down by lingering concerns over MAT and delay in passage of key tax reform Bills in Parliament, dragged down the rupee to 20-month lows.
The rupee opened lower at 63.75 as against last closing level of 63.54 at the Interbank Foreign Exchange market, later it slid further to breach 64-level to trade at 64.25 at mid-session, showing a significant fall of 71 paise.
Meanwhile, Brent prices fell 56 cents to U.S. dollar 67.21 in early Asian trade after hitting 2015-high in the previous session.
Source:thehindu.com
B4U had no Indian PE as it was extending time slots for ads through agents not having authority to c
IT/ILT: Assessee, a Mauritius based company was engaged in business of telecasting TV channels - Assessing Officer held that income of assessee from giving time slots to advertisers through its agents was taxable in India as said agents constituted its PE- within meaning of article 5 of India - Mauritius DTAA - It was noted that assessee carried out entire activities from Mauritius and all contracts were concluded in Mauritius - It was also undisputed that only activity which was carried out in
Dept. can’t levy relying on a provision held unconstitutional by various High Courts
Excise & Customs : Where a rule providing 'penalty equal to duty even without mens rea' has been declared as unconstitutional by various other High Courts and said judgments have not been stayed/overturned by Supreme Court, revenue cannot rely upon said rule to levy penalty equal to duty for unintentional delay in payment of duty
Rule 5 imposing condition of claiming WDV depreciation by due date u/s 139(1) by power generating un
IT : Since under section 32 these is no specific provision of exercising of option of claiming depreciation at percentage specified in second column of table in Appendix-I within a particular time, to said extent condition imposed under rule 5(1A) proviso (ii), is invalid
IRDA revises fee structure for cancellation or change in nomination of insurance policies
INSURANCE/INDIAN ACTS & RULES : IRDAI (Fee for Registering Cancellation or Change of Nomination) Regulations, 2015
Cabinet approved a proposal to allow REITs to access foreign investments
FEMA/ILT : Introduction of Real Estate Investment Trusts (Reits) as An Eligible Financial Instrument/structure under Fema, 1999
Excise duty exemption on goods subject to non-availment of credit has to be extended to importer in
Excise & Customs : Where excise duty in India is NIL subject to 'not taking of credit on inputs/capital goods', an importer is entitled to said exemption in respect of 'CVD equal to excise duty' and in his case, CVD would be equal to excise duty i.e., NIL
Subscribe to:
Posts (Atom)