IT/ILT : Under TNMM, it is not permissible to make transfer pricing adjustment by applying average operating profit margin of comparables on assessee's transactions with both AEs and non-AEs; inclusion of costs relevant to transactions with non-AEs, is not justified
Thursday, 14 May 2015
CESTAT condoned delay in filing appeal as delay was caused due to mistake/improper advice of counsel
Service Tax : Delay in filing appeal due to mistake of counsel or because of fact that counsel did not advise assessee suitably, may be condoned
Detention order passed after a gap of eight months from date of its approval by authority was to be
COFEPOSA: Where there was gap of eight months between approval of proposal of detention and passing of detention order, detention order was to be quashed on ground of unexplainable delay in passing same
Issue involving refund under ‘SEZ exemption notification’ is appealable to SC and not HC
Service Tax : Question 'whether services wholly consumed by SEZ were non-taxable/exempt ab initio and whether therefore, exemption Notification 9/2009-ST was inapplicable' has relation to 'rate of tax' and therefore, same is not appealable before High Court; appeal thereagainst would lie to Supreme Court only
Assessee can’t file writ to seek cross-examination of payer as he can agitate such issue before appe
IT: Assessee can cross examine concerned party in appeal, separate writ directing appellate authority to provide such opportunity is not required
SC upholds constitutional validity of NCLT/NCLAT; gives conditional go ahead to make them functional
CL : The composition of Selection Committee contained in Section 412(2) of the Act, 2013 is unconstitutional as section does not confer a casting vote on the Chairperson of the Selection Committee(ie CJI or his nominee) as required by the judgement of Constitution Bench of the Supreme Court in Madras Bar Association case (2010)11 SCC 1 ( "the 2010 judgement") and the section provides for 5 member Selection Committee as against 4 member Selection Committee required by para 120(viii) of the 2010
No re-assessment as mismatch in amount recognized in P&L account and Form 16A was already examined i
IT : Where in original assessment Assessing Officer was satisfied with assessee's explanation about difference between receipts shown in profit and loss account and Form 16A, reopening of assessment was not proper
Order passed by CIT(A) on application seeking stay of demand isn’t appealable before ITAT
IT : Order passed by Commissioner (Appeals) on application seeking stay of demand is not a final order and, thus, such an order is not appealable before Tribunal
Tyre Makers Resent Import Duty Hike
The crisis pertaining to import duty hike on natural rubber (NR) may stretch further going forward as the real impact of the same would be reflected on the balance sheets of tyre makers only in the days to come. Domestic tyre manufacturers feel that the import duty hike would make them uncompetitive and hence would not lead to the anticipated result of pulling NR prices up.
India’s effective NR duty is the highest amongst all rubber producing and consuming countries. In a curious case, the NR compound imported into China attracts nil customs duty.
“The increase in import duty of NR from 20—25 per cent, will be a challenge going forward. This hike in duty is likely to result in further increase in import of cheaper tyres into the country, which can be imported at 10 per cent duty, and will hinder the growth of capacity investments by the domestic tyre industry, in addition to making them uncompetitive,” said Onkar S Kanwar, Chairman, Apollo Tyres.
The effective customs duty in major rubber producing countries are between 3-7 per cent. In Sri Lanka, the rate is 15 per cent. Except China all other consuming countries impose zero per cent duty on NR imports.
“While import duty on NR was 20 per cent, tyres as finished products could be imported at as low as 5 per cent duty under various trade agreements. Increasing the import duty on natural rubber by further 5 per cent will worsen the inverted duty scenario, increasing the threat of large scale dumping of tyres in India,” said Raghupati Singhania, Chairman, Automotive Tyre Manufacturers Association.
Increase in duties on NR will add to the cost of production in India making it tougher for MSMEs to compete both in domestic and international markets, hence exports will be impacted, said Mohinder Gupta, President, All India Rubber Industries Association.
“India has a domestic production and consumption gap level of 3.6 lakh tonne and there is no alternative but to import rubber. The decision to increase import duties will cause a severe blow to the value addition within the country. Thus Make-in-India initiative will be seriously compromised,” he added.
Source:- livemint.com
First proviso to sec. 2(15) is applicable only when trade or commerce is carried on in the garb of c
IT : The primary object of insertion of the first proviso to section 2(15) was to curb the practice of earning income by way of carrying on of trade or commerce and claiming the same as exempt in the garb of pursuing the alleged charitable object of general public utility. This proviso never meant to deny the exemption to those institutions, where the predominant object is undeniably a charitable object and in order to achieve the same incidental activities, essential in the given circumstances,
Mangoes', Oranges', Pomegranates' Prices Shoot As Unseasonal Rains Hit Production
Unseasonal rains and prevailing droughts have come in the way of urban dwellers who love to eat fruits for a healthy lifestyle. Exorbitant prices have put fruits out of reach and they are likely to remain so in the coming months.
Mangoes are less in numbers and costlier, oranges and sweet lime have become rare, pomegranates are of inferior quality and consumers have turned their back at the abundantly-available pineapples due to the rainy weather. The only exception is apples, which may have a bumper crop as premium quality apples are growing nicely in the middle and upper reaches of the Himalayas.
Unseasonal rains have caused the maximum damage to mango output in almost all parts of the country. Production of Alphonso, the most premium of all mangoes grown in the country, declined by 50%."Domestic prices were so high that very less quantity was available for exports," said Milind Akre, MD, Maharashtra State Agricultural Marketing Board, which facilitates mango exports from India.
Kaushal Khakkhar, CEO, KB Exports, which exports mangoes to Europe said, "Mango exports to Europe are likely to be half the quantity that is normally exported." Kesar mango, which grows in Gujarat and Marathwada region and is one of the prominent export-oriented varieties, has suffered over 50% loss.
Source:economictimes.indiatimes.com
Jsw Unlikely To Reopen Chile Iron Ore Mines Unless Price Hits $75
JSW Steel, India's third-largest steel producer, is not planning to resume operations at its iron ore mines in Chile unless the global price recovers to $75 a tonne, a senior official said on Thursday.
JSW, India's biggest importer of iron ore, is looking at buying around 6 million tonnes of the steelmaking raw material in the current year to next March after importing about 9.5 million tonnes in the previous financial year, said Arun Maheshwari, senior vice-president at the company.
JSW said in March it would temporarily shut down operations at its mines in the Atacama region of Chile due to low global prices. It has a 70 per cent stake in Santa Fe Mining, which has rights to the iron ore deposits.
"We have suspended operations and we're looking at other things, how we can cut down the cost, and (when) the market improves we can restart. Probably around $75 it will make sense," Maheshwari told Reuters on the sidelines of an industry conference.
Iron ore hit a 10-year low of $46.70 a tonne in April amid a glut stoked by big, low-cost producers in Australia and Brazil. That has forced higher-cost suppliers out of the market. The price has since recovered to above $60, but it is still down more than 50 per cent from the start of last year.
A scarcity of available iron ore in India due to policy curbs has forced many steel mills to import ore, lifting the country's imports of the raw material to a record 15.5 million tonnes in the year to March.
"This (financial) year we expect to (import) close to 6 million tonnes," said Maheshwari. That would be down from around 9.5 million tonnes in the past financial year as domestic supply improves, he said.
The Chilean mines can produce about 1 million tonnes of iron ore, he said. JSW, controlled by Indian billionaire Sajjan Jindal, is on track to boost annual steel output to 40 million tonnes by 2025, said Maheshwari, from a current capacity of 14.3 million.
But Maheshwari doubts whether a government target for India to increase annual production to 250 million tonnes by that year is achievable.
"Basic demand is not there in India. The growth that we're expecting is not visible as of today," he said. "Most realistically, it may be 160 million tonnes."
India is the world's No. 4 steel producer with output of 83.2 million tonnes in 2014, according to the World Steel Association. Because of a surge in steel imports, including from China, Indian steelmakers "have no choice but to cut down production", he said.
Source:economictimes.indiatimes.com
Veg Oil Imports Rise 33 Pc To 11.08 Lakh Tonnes In April
India's vegetable oil imports increased by 33 per cent to 11.08 lakh tonnes in April mainly on higher shipments of palm oil. The imports of vegetable oil during the same month last year was 8.32 lakh tonnes, according to industry data.
"Import of vegetable oils during April is reported at 11,08,678 tonnes compared with 8,32,760 tonnes in April 2014, up by 33 per cent," Solvent Extractors' Association (SEA) said in a statement.
Meanwhile, during November-April period, vegetable oils imports increased by 25 per cent to 64.61 lakh tonnes compared with 51.64 lakh tonnes in the year-ago period.
Oil year runs from November to October. Out of total imports in November-April period, imports of edible oils stood at 63.49 lakh tonnes and non-edible oils at 1.12 lakh tonnes.
"Due to nil export duty on palm products during the first five months of the current oil year by Indonesia and Malaysia...Pushed the export of palm products to India to reduce burgeoning stock held by the exporting countries," SEA added.
Another reason for higher imports was increase in prices of soyabean in domestic market and lesser realisation for oil and soyabean meal in export market, resulted in lower crushing and lesser oil availability in the country, it said.
In December last year, the government hiked import duty on both crude and refined edible oils by 5 per cent. The customs duty on crude oil has been increased to 7.5 per cent from 2.5 per cent earlier, while the duty on refined edible oil has been raised to 15 per cent from 10 per cent.
India's vegetable oil imports rose 12 per cent to an all-time high of 11.82 million tonnes in the 2013-14 oil marketing year ended October on rise in domestic consumption and low rates of cooking oils in global markets.
The country imports about 60 per cent of the annual domestic demand of vegetable oils (comprising edible and non-edible oils) of about 19 million tonnes.
Source:business-standard.com
No sec. 80QQB relief on royalty received for writing a cookery book as it wasn’t earned in exercise
IT: Assessee claimed section 80QQB deduction on receiving royalty for writing a cookery book which was denied by AO and CIT(A) on the ground that such income was not earned in the exercise of profession. It was held that the assessee was not specially qualified apart from skill and ability to write book and she was not having education in the field of cookery either in the college or in university or even by experience. Thus, assessee was not qualifying the parameters laid down for considering
No waiver of sec. 234C interest if assessee couldn’t be categorized under two classes notified by CB
IT: Income-tax authorities are authorised to waive off interest under sections 234A, 234B and 234C only for such classes of income and cases for which general or special order has been issued by CBDT. Thus, if assessee's case was not falling under such notified classes, he would not get waiver of interest under section 234C
SC admits SLP on issue of eligibility of Input Tax Credit of material used in manufacturing Asbestos
CST & VAT: Rajasthan VAT - Where assessee was engaged in manufacturing A.C. sheets and High Court held that assessee was entitled to avail Input Tax Credit on purchase of raw material used in manufacture of A.C. sheets, SLP deserved to be granted
Maharashtra VAT: Sales of sweets by charitable trust at its shop was business activity and not chari
CST & VAT : Maharashtra VAT - Where assessee, a charitable trust, besides various charitable activities was also running a shop, wherein sweetmeats and farsan were manufactured and sold to general public, shop activity was not incidental or ancillary to main charitable activity and it was a business activity
TPO couldn’t make TP adjustment by taking CUP method after accepting Cost Plus Method in TP proceedi
IT/ILT : In course of transfer pricing proceedings, TPO having accepted cost plus method adopted by assessee, could not make addition to ALP on basis of internal CUP method by comparing profit margin earned from non-AE to transactions of assessee with its AE
Rupee Strengthens To 63.71 On Sustained Dollar Selling
The rupee strengthened further by 29 paise to 63.71 against the American currency in the evening trade on sustained selling of greenback by banks and exporters due to weakness of dollar in the overseas market.
The domestic unit rose above the key 64 level on inflows ahead of disinvestments in key companies. The Union Cabinet had on Wednesday approved the sale of shares in the two state-run companies as part of its plan to raise $11 billion from asset sales this financial year.
The rupee resumed higher at 63.97 per dollar against yesterday’s closing level of 64.00 at the Interbank Foreign Exchange (Forex) Market and hovered in a range of 63.70 and 64.04 before being quoted at 63.71 at 4.25 pm, showing a gain of 29 paise.
Banks and exporters preferred to reduce their dollar position in view of weak dollar in the overseas market. In New York, the US dollar weakened against most of its major rivals yesterday after a slate of weaker-than-expected economic data.
Meanwhile, the benchmark BSE Sensex ended the session down by 45.04 points or 0.17 per cent at 27,206.06.
Source:thehindubusinessline.com
Secretarial Standards 1 and 2 would apply to meetings in respect of which notices are issued after J
COMPANIES ACT, 2013 : Secretarial Standards (SS-1 & SS-2) – Clarification on Applicability Of
SEBI unravels guidelines for Stock exchanges to ensure fair and equitable access to Co-location faci
SEBI : Co-Location/proximity Hosting Facility Offered by Stock Exchanges
No revision by CIT to deny loss on sale of debentures if AO had allowed such loss after making prope
IT: Where Assessing Officer accepted loss declared by assessee on sale of non-convertible debentures after considering books of account and detailed reply submitted to questionnaire issued to assessee, impugned revisional order passed on ground that loss in question was allowed without making proper enquiries, was to be set aside
Consent of counsel for Tribunal's holding on question of law without assessee's prior approval doesn
Central Excise : Where assessee's counsel had made concession as to validity of duty demand on merits and there was nothing on record that assessee had instructed his counsel to make such concession, said concession on a 'question of law' could not bind assessee
No additions of unexplained credit on basis of inspector’s report if he didn’t enquire into existenc
IT : Where inspector did not make enquiry about existence of investor companies, inspector's report could not be sole basis for making addition under section 68 when all other documents were in order
Supply of medicines, implants as part of medical procedures is to be deemed as service and not sales
CST & VAT : Haryana VAT - Where assessee, a private hospital, provided medical services and supplied medicines, surgical items, implants and stents as part of medical procedures, medical services provided by assessee was a service and supply of drugs, etc. was integral to medical services and could not be severed to infer a sale
SLP granted against HC’s order wherein sec. 68 additions were upheld due to non-supply of PAN of sha
IT : SLP granted against order of High Court where it was held that since in respect of share application money, assessee failed to provide complete address and PAN of certain share applicants and in case of some of share applicants, there were transactions of deposits and immediate withdrawals of money from bank, impugned addition made under section 68 was to be confirmed
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