IT: Where assessee's liability to pay advance-tax within time prescribed under section 211 existed on last date for payment of advance tax or at least on last date of financial year, on failure to pay advance tax on stipulated dates, interest was to be levied
Monday 25 May 2015
Gujarat VAT : Replacement of spare parts during warranty period amounts to sale and liable to VAT
CST & VAT : Gujarat VAT - Where assessee, a motor car dealer, purchased spare parts and replaced same in place of defective spare parts during warranty period for which manufacturer issued credit notes, transaction of replacement of spare parts amounted to sale and levy of tax on said sale was justified
Stay granted by ITAT as TP adjustment were made on basis of comparable which were rejected in earlie
IT/ILT : Where comparables rejected by TPO were accepted to be good comparables in subsequent years/earlier years, assessee had a prima facie case for partial stay of demand arising mainly out of transfer pricing adjustment
Vinyl sheets printed with advertisement picture/slogan thereon is classifiable as 'printed matter'
Excise & Customs : Vinyl sheets printed with a picture and slogan thereon using thermocopied machine and meant for use as advertising material, is classifiable as 'printed matter' (Heading 49.01) and not as 'Illuminated signs, illuminated name plates, etc. not elsewhere specified' (Heading 94.05)
IT dept. couldn't object to arrangement scheme as transferor had given undertaking to discharge tax
CL : Where undertaking was given by company that in event of any demand raised by Income-tax Department, transferee company would duly discharge same in accordance with law, objection of income-tax department to sanction of proposed scheme of amalgamation was irrelevant
No reassessment after 4 years to deny sec. 10A relief if assessee had disclosed all material facts i
IT : Where section 10A exemption was allowed during assessment proceedings after examining return and accompanying document, reassessment to deny said exemption after expiry of 4 years is not justified unless there is allegation that facts were not truely and fully disclosed
Retracted statement of assessee couldn’t invalidate block assessment if it was also based on seized
IT: Where block assessment was not only based upon statement of assessee but was also based on seized documents, retracted statement of assessee could not invalidate said assessment
A.P. VAT : SC granted SLP to determine eligibility for composition scheme on construction of residen
CST & VAT : A.P. VAT - Where assessee, a works contractor, entered into agreement for executing works contract of construction of residential apartments and it opted to pay tax by way of composition and High Court held that assessee was not entitled for composition, SLP deserved to be granted
High Court directs ITAT to re-consider issue of allowing depreciation on goodwill
IT : Where Tribunal had not made any finding on merits of issue of depreciation, matter be reconsidered afresh
TPO to re-consider additions as assessee had filed details which were not available at the time of a
IT/ILT : Where assessee submitted necessary details in respect of management, technical and consulting services received from AEs for its civil construction work, ALP determined by it could not be disregarded without considering said details
Subsidy for setting-up industry in backward area couldn’t be reduced from actual cost of asset to co
IT: Assessee is eligible for additional 50 per cent depreciation in subsequent year when in earlier year 180 days period was not completed
Transit insurance of capital goods is eligible for input service credit
Cenvat Credit : Insurance of capital goods whether in factory or in transit and group insurance of workers and staff is indirectly related to manufacture and being 'activities relating to business', are eligible for input service credit
Honda Now Exporting Jazz From Indian Factory To South African Markets
Japanese car maker Honda has started shipping the premium hatchback Jazz to South Africa from its plant in Rajasthan in advance of the upcoming launch of the new version of the vehicle in India.
The company is manufacturing the new Jazz at Tapukara plant where it is spending Rs 380 crore to enlarge production capacity from 1.20 lakh units to 1.80 lakh units annually.
Honda Cars India Ltd (HCIL) Senior Vice-President (Marketing and Sales) Jnaneswar Sen told PTI, "We have already started the export of the new Jazz to South Africa from here. The vehicle is being produced at our Tapukara facility."
Last month the company shipped around 600 units of Jazz, City, Amaze and Brio to South Africa. A few cars were also exported to Nepal.
In India, the Jazz was first introduced in 2009 with a price of over Rs 7 lakh which was later reduced by Rs 1.6 lakh.
In 2013 the company put a stop to the production of the car in the country. The company expects to increase its sales network in the domestic market to around 200 cities and towns from the present 152.
Sen held, "In the current fiscal, we plan to expand sales network to over 300 outlets in around 200 locations from the current 232 showrooms in 152 cities. We are looking to expand more in smaller cities and towns."
By the end of 2016-17 fiscal, HCIL targets to touch 3 lakh unit sales milestones per annum. The company presently sells compact car compact sedan Amaze, compact car Brio, multipurpose vehicle Mobilio, mid-sized sedan City and premium sports utility vehicle CR-V.
Source:- delhidailynews.com
Russia To Export Poultry To India
Russia will start exporting poultry and poultry products to India within its program of diversifiying export supplies, reports the deputy head of the Russian veterinary body, Alexei Alexeenko.
"We have looked at what demand there is in India when it comes to our meat production, and in the first place there's a big demand for poultry. Our Indian partners show a lot of interest in our poultry," Alexeenko says.
Russia currently is actively seeking export markets for its poultry production, as the devaluation of the Russian ruble makes exporting much more profitable than a year ago. According to data from the Russian Institute of Agricultural Market Studies in 2014 Russia exported 57,000 tonnes of poultry, which is 5% more than in 2013.
The exports to Hong Kong saw a 45% increase, Vietnam a 201% year-on-year increase. At the same time, the Russian Agricultural Ministry expects that export of poultry will increase fourfold within the coming five years to about 200,000 tonnes by 2020. The most promising markets according to experts are South-East Asia and the Middle East, which Russia eyes to supply with halal poultry. The Chinese and Indian markets also look quite promising.
Source:worldpoultry.net
India Containerized Shredded Scrap Import Prices Stay Stable; Plastic Scrap Prices Show Mixed Trend
Indian containerized shredded scrap import prices continued to stay stable in the week ended May 15, while Indian plastic scrap prices on Scrap Register Price Index showed mixed trend.
The major plastic scrap commodities showed a mixed tread on Scrap Register Price Index during the week. The plastic scrap like HD blowing, HD moulding(colour), PVC resin desi, LLDP Blowing are traded up, while acrylic, C.P.W, hips(baff), PVC pest grade showed a down treand.
According to the Steel Index, imports of scrap into India remained uninspiring the week as a number of factors conspired to keep the market depressed.
The prices of sponge iron and locally sourced scrap are still low, ensuring imported scrap struggles to remain competitive. Demand for finished long products is still poor and, despite the potential for increased exports to Nepal after the recent earthquakes, the market remains pessimistic.
With talk of an increase in duties on imported steel once again flattering to deceive and the monsoon season fast approaching, market participants are struggling to see any meaningful positive demand or pricing movements until Q3 this year.
Source:metal.com
India Seeks To Tap Into Vast Private Gold Hoards
Indian policy makers have long sought to curb their citizens’ rapacious appetite for imported gold — tonnes of which are believed to be stashed away under mattresses, in cupboards and in the hidden vaults of Hindu temples.
But after the failure of gold import bans, restrictions and high tariffs, Prime Minister Narendra Modi’s administration is trying a new tack to reduce India’s hunger for imported gold.
It is planning to launch a new scheme to try to entice institutions and individuals to deposit their gold holding with banks, in exchange for interest payments — which could even be tax-free.
By tapping into India’s vast treasure trove of domestic gold — which the World Gold Council estimates could be as much as 22,000 tonnes, New Delhi hopes to provide a domestic source of the precious metal for jewellers to meet growing demand for wedding ornaments, thus pruning the country’s import bill.
But there is a catch: gold depositors must consent to having their precious metal melted down and recycled, which may be acceptable to those holding gold biscuits or bullion but will deter those with sentimental attachment to their jewellery.
Though the scheme’s precise details are still being worked out, analysts say the government hopes to woo affluent families now keeping savings as gold bullion, or Hindu temples, many of which — like the Sree Padmanabhaswamy Temple in Kerala — also have large stashes of gold donated by devotees, much of it biscuit or bullion form, hidden in their vaults.
“If you have sentimental reasons for attachment to the jewellery or its designs, then you are not the target audience for the scheme,” says Sonal Varma, chief India economist at Nomura. “It should be high net worth individuals, or middle-income households storing gold for investment. The temple trusts are also a primary target.”
Indians last year imported nearly 900 tonnes of gold — its second-largest import item after fuel. In 2013, India’s hunger for gold was blamed for the soaring current account deficit and heavy pressure on the currency, and prompted an attempted clampdown on imports. Restrictions have since been relaxed, and gold imports are again rising — up 78 per cent in value terms to $3.1bn year-on-year in April.
At least 65 per cent of gold imported into India is used to make jewellery for Indian brides, who wear the ornaments on their wedding day and then keep them as long-term financial assets, hedged against inflation and currency volatility. In emergencies, Indians routinely use gold ornaments as collateral to secure loans from informal money lenders.
Puran Doshi, who owns a jewellery shop in Mumbai, said he was doubtful that many Indian families would entrust their gold to a bank fixed-deposit style scheme, which would turn what is now a fairly liquid asset into an illiquid asset.
“Women are possessive about their jewellery — even if their husbands ask for it they don’t give it straight,” said Mr Doshi, who also gives customers loans against gold deposits. “They will only give it for emergencies, and only for cash.”
India had previously tried a gold deposit scheme in 1999 but results were poor, with interest rates too low to give customers an incentive to participate. Banks have also expressed doubts about the costs of running such complex schemes.
But Ms Varma said even if a small minority of Indians or wealthy temples participate in the scheme — and it raises 100 to 200 metric tons of gold a year — it would help cut India’s gold import bill by billions of dollars. “It’s an interesting concept,” she said.
Source:ft.com
Even refund of excess self-assessment tax paid by assessee would be entitled to interest
IT: Assessee would be entitled to interest under section 244A(1)(b) on amount of refund which was deposited by it by way of self assessment tax under section 140A
Karnataka VAT : Revisional authority cannot pass fresh assessment order as it can only direct AO to
CST & VAT : Karnataka VAT - Where Revisional Authority after setting aside assessment order proceeded to pass a fresh reassessment order under section 63A on assessee, Revisional Authority could only direct Assessing Officer for a fresh assessment order and could not proceed to pass a fresh reassessment order
Exemption not claimed at initial stage of import amounts to 'forgoing exemption'; it can't be claime
Excise & Customs : Where benefit of exemption notification was not claimed at initial stage of import, i.e., when such benefit was forgone, same cannot be claimed by a subsequent act at later stage
Food tasting and development exp. incurred by 'Yum Restaurant' to develop new recipes was revenue ex
IT : Where assessee provided support services to KFC franchisees in India and to US brand holders of KFC as well, in a systematic and organized way continuously over a period, service income earned was to be treated as business income
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