IT/ILT : Section 115JA of the Income-Tax Act, 1961 - Minimum Alternate Tax (MAT) – Imposition of MAT on Foreign Companies Particularly FIIs
Monday 11 May 2015
Mentioning wrong notification number wouldn’t lead to rejection of refund claim without hearing asse
Service Tax : Refund claim cannot be rejected merely because assessee has, by mistake, cited wrong notification number; department must issue notice and grant hearing to assessee to rectify said mistake
Co. outsourcing its activities couldn’t be compared with a Co. which had incurred substantial salary
IT/ILT: Where outsourcing cost to total cost of a company, was 86 per cent it cannot be compared to assessee-company whose salary cost to total cost was 54.67 per cent
Removal of ash from ash ponds using mechanical means wouldn’t amount to cleaning service
Service Tax : Process of removing fly ash by mechanical means from ash ponds would not, prima facie, amount to a cleaning service
No abuse of dominance by insurer-co. as it wasn’t a dominant player in motor insurance segment in ‘K
Competition Act: Where apart from respondent Tata AIG, United India Insurance Company Ltd., Reliance, ICICI Lombard, HDFC IRGO and other insurance companies were having branches in Kutch and those seeking insurance of their vehicles had option to choose any particular insurance company, respondent did not have substantial market power in relevant market
Occupation certificate of building can be obtained on phase-wise construction for approval of IT par
IT: In terms of section 80-IA(4)(iii), for approval of information technology park under Industrial Park Scheme, 2008, an assessee can obtain occupation certificate from competent authority phase wise or stage wise, based on completion of construction of industrial area
Sec. 68 additions upheld on failure of assessee to prove source of cash receipts credited in books
IT : Where two cash receipts were found credited in books of account of assessee on account of repayment of his dues and sale of shares but he could not satisfy Assessing Officer by adducing proper evidence regarding source of said money, said amounts were rightly added to assessee's income under section 68
ITAT couldn't remand case to AO when it had enough material before it to decide issue of disallowanc
IT : Where there was enough material on record enabling Tribunal to decide issues raised in respect of allowance of service charges, matter was to be decided by Tribunal; it should not have remanded same to Assessing Officer
Renovation exp. incurred by Co. on leasehold premises taken from shareholder couldn't be held as dee
IT : Where assessee-shareholder of a company, rented its premises to said company, expenses incurred towards repairs and renovation by company on premises of assessee could not be treated as advance or loan to assessee, hence, provisions of section 2(22) would not be applicable
Exp. incurred on prints of film is allowable as revenue exp. to film producer
IT: Assessee, engaged in production and sale of feature film, was eligible to set off of loss from one film against profits from other film
Disease Mars Indian Potato Exports
With the Russian phytosanitary services cracking down on potatoes from Egypt, it could have been a blessing in disguise for Indian exporters had it not for the brown bacterial rot disease.
Early April, while the quarantine phytosanitary control of two potato consignments weighing 57 tonnes imported from India was on, the bacterial rot (Ralstonia solanacearum Yabuuchi) was noticed.
According to information available to BusinessLine, there were nine cases in 2011 and 23 cases in 2014 when brown rot was detected in plant products imported from India.
Based on the assessments of the specialists from the Russian Agricultural Academy, the potential losses from the possible introduction of brown rot to Russia could be more than 50 billion rubles a year. They have pointed out that an outbreak of this kind will also threaten tomatoes, apart from potatoes in Russia’s southern regions.
The agency has held that it reserves the right to impose temporary restrictions on the import of Indian potatoes. Exports of potato from India jumped from 1,93,085.84 tonnes in 2011-12 valued at Rs1.3 billion, to 2,20,926.10 tonnes in 2013-14 valued at Rs2.5 billion, according to the Agricultural and Processed Food Products Export Development Authority (Apeda).
Source:freshplaza.com
Indian Pharma Exports May Have Grown 2.2 Per Cent To $15.2 Billion In Fy15: Pharmexcil
Indian pharma exports are estimated to have grown, but at a slower pace of 2.2 per cent to about USD 15.2 billion during the financial year ended March 2015 against USD 14.9 billion in the previous fiscal, said a top official of Pharmexcil, an export promotion body, here today.
Pharmaceuticals Export Promotion Council (Pharmexcil) Director General PV Appaji said the depreciation of Russian rouble, coupled with the Ukraine situation, mainly led to a degrowth in overall pharma exports despite a solid showing in the US market.
"In rupee terms, the exports were at Rs 96,000 crore during 2014-15. We are yet to receive the figure in dollar terms... It will be about 2.2 per cent growth," he told reporters on the sidelines of a programme organised by Indus Foundation.
Appaji said the growth in the US would be around 13 per cent last year despite various regulatory issues compared with 18 per cent earlier.
"Also, some of our Indian companies have opened their 100 per cent subsidiaries in other countries in which case the export of goods is shown as stock transfer," Appaji added.
He saw the contribution of Russia and other CSI countries to the overall Indian pharma exports at about 6 per cent in terms of value. However, there is a negative growth in the region last year.
Appaji said that in a bid to penetrate Japanese generic drug market, which is said to be the second-largest drug market after the US, the Indian government is trying to convince Japanese drug makers about the capabilities of Indian pharma industry through 'Brand India' campaign.
Replying to a query on GVK Bio, which earned the wrath of the European Union for alleged violations of norms in clinical studies undertaken by the Hyderabad-based firm, Appaji said the government fully supports the firm and may take up the issue with appropriate international agencies.
On the occasion, Indus Foundation announced organising a global pharma expo and summit here on July 23-26 in association with the Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry and OMICS Group.
Source:economictimes.indiatimes.com
April Gold Import Estimated $3.5 Bn
Gold imports have remained unabated in the month of April despite fears that unseasonal rains and hailstorms that had impacted agri crop and fortunes of farmers will impact rural demand for the yellow metal.
Trade sources said India's total gold import in April is estimated around 85-90 tonnes ($3.5-4 billion). Gold import in March was much higher at 121.8 ($4.98 billion) tonnes but that was because many traders and investors had delayed their purchases in previous months expecting cut in import duty in the budget, the hope that didn't materialised. Gold import in April, 2014 was 58 tonnes.
That supressed demand in past and demand for Akshaya Tritiya (21 April) resulted in higher demand in March and part of that demand spilled over in April also, said a CEO of listed jewellery company. Many however had expected that gold imports will recede from April because impact of unseasonal rains on agri crops was expected to impact rural demand as farmers will have lesser cash to buy gold.
Rajiv Popley, Director Popley group said, "gold demand remained better even in April also because marriage season demand was good and during Akshaya Tritiya days pre-booking was happening and after scrapping of 80:20 general sentiment among bullion traders have also improved."
That is however still seen as a possible dampener for gold demand. While in April, higher imports may still be attributed to Akshaya Tritiya related demand, in May demand may be impacted and weather body forecasts of below normal monsoon will haunt gold demand. Even Marriage season also coming to an end and next two months are seasonally seen as dull season for gold buying.
Popley said that, "rural demand has started moderating which will lead to lower imports and down south markets where rural demand has started to decline."
Source:business-standard.com
Govt. determines share exchange ratio of members of NSEL in view of amalgamation of NSEL with FTIL
COMPANIES ACT, 1956 : Section 396 of the Companies Act, 1956, Read with Rule 12A of the Companies (Central Government's) General Rules and Forms, 1956 – Power of Central Government to Provide for Amalgamation of Companies in National Interest – Assessment of Compensation to Members and Creditors of National Spot Exchange Ltd. in Terms of Section 396(3)
High Court disallows notional interest on interest-free advances given to directors of company
IT: While computing income of assessee-manufacturer, excise duty could not be included in opening and closing stock
Exp. incurred of prints of film is allowable as revenue exp. to film producer
IT: Assessee, engaged in production and sale of feature film, was eligible to set off of loss from one film against profits from other film
Textile And Garment Exports To Fall Short Of Targeted 5% Expansion
The overall textile and garment exports will not only miss the initial official growth target of 10% for 2015-16 but will also fall short of the 5% expansion rate expected, according to Northern India Textile Mills' Association (NITMA).
Sharad Jaipuria, president, NITMA said that the textile industry needs basic raw material cotton at competitive prices to export value added products.In spite of record production of cotton in India, the same is unavailable at competitive prices.
Jaipuria informed that while the CCI,a Central Government undertaking, has already started off-loading small parts of the 86 lakh bales (of 170 kg each) of cotton held by it, the Textile Ministry wants to sell its stock in phases over the remaining five months of the current cotton marketing year ending September to fetch better cotton prices.
The CCI procured the cotton from farmers at a minimum support price, which was much higher than the prevailing domestic prices, earlier this year. So far, CCI has sold only 5.68 lakh bales in the market.
Jaipuria also shared the concern of the industry that the approach to fetch better prices for cotton by the textile ministry has pushed the cotton prices upward in a week's time. It has become unviable to produce and export, giving the private traders an opportunity to hoard cotton to push up the prices even further. The industry is experiencing that despite the recognition of the textile sector's role in the Make in India concept as well as in job creation there is a lack of adequate focus and proper planning in boosting exports.
According to NITMA president, as per the index of industrial production data, the textile segment grew just 2.4% from the April-February'2015 period from a year before. Higher textile exports augur well for the economy as they accounted for 12.6% of the overall exports last fiscal. Textile sector employs 35 million people and is the second largest employers after agriculture.
Source:economictimes.indiatimes.com
India May Be Thailand’S Next Rival In Rice Exports
The Thai Chamber of Commerce Council Chairman, Chukiat Opaswong, has projected that the Kingdom will be able to export only 8.5 million tons of rice this year, a sharp drop from last year’s 11 million tons. He said India may become Thailand’s next rival in rice exports, as the nation starts taking an increased share of the African market.
He said several nations have already implemented price slashing schemes to boost rice exports, especially India, leading to fierce competition. Indian rice, in particular, is 40 dollars per ton cheaper than that of Thailand’s.
Thailand exported 2.6 million tons of rice during the first four months of this year, he said, adding India’s figure was 2.5 million tons in the same period.
He said the stronger baht may be contributing to the high rice price. Thailand’s rice is being priced at 385 dollars per ton, he indicated, pointing out Vietnam’s product is being sold at 355-360 dollars a ton, and India is at 360 dollars per ton.
Source:pattayamail.com
Government May Import Pulses After 2-Year Gap To Check Retail Prices
The government is considering importing pulses through state-owned trading firms such as the MMTC to boost domestic supply and check rising retail price.
The Consumer Affairs Ministry is looking at the option of pulses imports in view of forecast of below-normal monsoon and possible fall in production in Australia and Canada, a senior government official said.
India produces 18-19 million tonnes of pulses annually but has to import 3-4 million tonnes to meet the domestic demand. Imports in the last two years were mainly via the private trade.
Pulses prices have gone up in the retail markets. Tur (arhar) prices is currently ruling at Rs 108 per kg in the national capital, up from Rs 83 per kg as on January 8, 2015.
Similarly, rates of gram dal have gone up to Rs 68 per kg from Rs 54, while those of masoor dal to Rs 94 from Rs 84 per kg in the review period. Moong is being sold at Rs 107 per kg now, as against Rs 98 per kg on January 8.
"We are keeping a close watch on prices and planning in advance for imports. We are doing this exercise as there are are reports of possible production fall in Canada and Australia and its impact on global prices," a senior government official told PTI.
The ministry is thinking to take measures in advance to boost domestic availability of pulses, which are largely grown in rainfed areas, the official said, adding that any deficiency in monsoon rains could have an adverse impact on production of moong, urad and tur as well as their prices.
The ministry would soon take a call on the import issue as India needs to look at other countries like Ethiopia and Tanzania for pulses imports in the wake of expected drop in output in Canada and Australia, the official said.
On prices, the official said: "There is no concern as such now. We are planning in advance so that systems are place to enable timely intervention to boost supply through imports."
The Centre did not import pulses through PSUs such as MMTC, STC and PEC during the last two financial years. In its latest report, Parliament's Public Accounts Committee (PAC) had pulled up the government for lack of long term policy for attaining self-sufficiency in pulses and advance planning for import.
The country's import of pulses through private trade stood at 3 million tonnes in the 2013-14 fiscal, while that of 3.4 million tonnes in 2014-15 fiscal, as per official data.
Pulses production is estimated to have declined to 18.43 million tonnes in 2014-15 crop year (July-June) from 19.78 million tonnes in the previous year.
Source:economictimes.indiatimes.com
Rupee Trades At 63.89 Against Dollar
The Indian rupee on Monday was trading flat against the dollar, tracking the losses in the Asian currencies market. At 2.22pm, the rupee was trading at 63.89, up 0.08% from its previous close at 63.94 per dollar. It opened at 63.87 and touched a high and a low of 63.77 and 63.99, respectively.
“The rupee should strengthen to about 63.50 in a couple of days. The India growth story is still intact. Foreign investors were booking profits till now and at this point they may look at entering again, so some equity flows should come in to the country. India’s growth story remains intact, so there should be no problems with inflows,” said N.S. Venkatesh, executive director and chief financial officer, IDBI Bank Ltd.
Traders are cautious ahead of the Index of Industrial Production (IIP) data for March and Consumer Price Index (CPI)-based inflation data for April which will be issued by the government on Tuesday. A Bloomberg poll estimates that IIP will be at 2.9% in March as compared with 5% in February, while CPI will be at 4.9% in April compared with 5.17% in March.
The Sensex rose 1.3%, or 351.19 points, to 27,456.58 points. Foreign institutional investors (FIIs) have sold $2.29 billion in equity markets in the last 14 out of 15 sessions, except on 21 April when FIIs bought $2.6 billion. In May so far, FIIs have sold $937.48 million in debt and $551 million in equity.
Most of the Asian currencies were trading lower. Singapore dollar was down 0.45%, Thai baht was down 0.35%, Indonesian rupiah was down 0.28%, South Korean won was down 0.27%, Japanese yen was down 0.18%, Malaysian ringgit was down 0.11%, China offshore was down 0.06%.
The yield on India’s 10-year benchmark bond was trading at 7.924% compared with its Friday’s close of 7.983%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has lost 1.4%, while FIIs have bought $6.66 billion from local equity and $6.51 billion from bond markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.054, up 0.26% from its previous close of 94.794.
Source:livemint.com
Revenue must grant opportunity to rectify defects in supporting docs before disallowing Cenvat credi
Cenvat Credit : Credit of banking services and advertising services cannot be denied merely because of non-mention of registration number or mention of old registration number, if all other requirements are satisfied and other documents evidencing eligibility are furnished by assessee
Condonation of delay couldn't be denied merely because assessee was not pursuing matter seriously
Service Tax : Where assessee neither replied to notice, nor participated in adjudication and also filed appeal before Commissioner (Appeals) after delay of 15 days, Tribunal cannot reject condonation of delay application before itself on ground that assessee was taking issue very lightly; said application must be considered on its own merits
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