Loss assessed couldn't be carried forward if return declaring income was filed belatedly

IT: Where assessee filed return declaring income after expiry of time extended by Assessing Officer for filing return but assessment was made at loss, assessee would not be allowed benefit of carry forward of losses under section 80

Uttar Pradesh VAT : Seizure of goods was justified as it were destined to unregistered dealer

CST & VAT: U.P. VAT - Where Competent Authority intercepted a truck carrying PVC dana from Delhi to Patna (Bihar) and found that neither consignee was a registered dealer in Bihar nor Suvidha number had been generated by him, an attempt to evade payment of tax was made by assessee and, therefore, seizure of dana and demand of security for release of same was justified

Company whose promoters were involved in fraud couldn't be selected as comparable for TP study

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering ITES services to its AE, in view of fact that one comparable selected by TPO was improper as it was rendering high end services involving specialized knowledge and domain expertise whereas promoters of another comparable were involved in fraud for earlier years and, hence, financial results of said company could not be relied upon, impugned addition was to be set aside

Burden was on accused to disprove existence of debt if he had accepted that dishonoured cheque bore

Negotiable Instruments Act : Where dishonoured cheque as well as signature had been accepted by accused respondent, presumption under section 139 would operate and burden was on accused to disprove cheque or existence of any legally recoverable debt or liability

Redemption fine has to be determined after ascertaining market price as per market survey

Excise & Customs : It is requirement of law that redemption fine should not exceed 'market price of confiscated goods less duty' and such market price can be obtained only on market survey, which must be done prior to determining redemption fine

Loss on writing off slow moving items in P&L account is allowable

IT: Where assessee's non moving stores and spares were corroded over a period of time due to wear and tear, assessee would be entitled to write off same in profit and loss account

AO gets flak from High Court for initiating block assessment even when info unearthed in search was

IT : If information discovered in course of search against one assessee has already been reflected in returns or assessment of other assessee, there is no basis to proceed/against other assessee under section 158BB

Nissan Exports 500,000Th 'Made In India' Car

In a record period of five years since the start of exports from India, Nissan has achieved a new milestone: exporting 500,000 cars to over 106 countries. In financial year 2014, Nissan was the second largest exporter of passenger cars from India and Nissan Micra has been regarded as the most exported car.

Demonstrating its commitment to India, Nissan, along with its alliance partner, made significant investment of INR 45 billion in a world-class manufacturing plant at Oragadam, near Chennai. The manufacturing plant not only caters to the growing domestic demand but also leverages India’s competitive advantage as an export-oriented hub.

Commenting on the new milestone achievement, Mr. Guillaume Sicard, President, Nissan India Operations said, “India is a key strategic market for Nissan. We have major manufacturing and R&D operations which support us to be one of India’s biggest exporters of cars.

While exports help us in optimal utilization of our manufacturing capacity, it also helps showcase world-class Indian production quality on the global stage and expands the scope for widening the export base for India-built cars. Datsun Go which is developed and manufactured in India, is a good example of ‘Made in India’ and ‘Made by India’.”

Nissan entered into a strategic understanding with Kamarajar Port Ltd. (Ennore Port Ltd.) and has been the first car maker to use the Kamarajar Port Ltd. as the export gateway since 2010. Nissan has been exporting vehicles to various regions including Europe, Middle East, Latin America, Australia, New Zealand, Asia and Africa.

While Nissan Micra constitutes 73% of exports from India, Nissan Sunny and Datsun Go are the other two export models from Nissan portfolio. Nissan started the exports of Datsun GO in 2014 to South Africa and Nepal.

For Nissan, India is not only a key hub for completely built units but also for parts supply. Nissan exports over 1800 types of manufacturing parts to 34 plants across 24 countries. Nissan India stands in the 2nd position in volume of shipping parts within the Nissan world.

Source:moneycontrol.com

Truck And Bus Tyre Imports Rise 60 Per Cent In 2014-2015: Automotive Tyre Manufacturers’ Association

Import of truck and bus radial tyres (TBR) has increased 60% in 2014-15 over the previous year much to the frustration of the domestic tyre industry, which is struggling to come out of a protracted slump.

TBR imports rose to 7.8 lakh tyres from 4.9 lakh tyres in 2013-14. Roughly 25 per cent of domestic replacement demand for TBRs is being met by imported tyres, according to Automotive Tyre Manufacturers' Association (ATMA).

"Tyre industry has been promoting the usage of radial tyres in commercial vehicles for reasons of fuel efficiency and safety and has invested heavily so as to be ahead of the demand curve. However imports of tyres, particularly truck & bus radials have been taking place indiscriminately and at low prices which, in some cases of Chinese imports, are even below the cost of raw materials that go in the making of a truck & bus tyre. This is causing huge injury to the domestic tyre manufacturers", said Dr Raghupati Singhania, chairman of ATMA.

Import of TBRs from China has gone up three times from 1.9 lakh tyres in 2013-14 to 5.5 lakh tyres in 2014-15 and China has come to account for 70 per cent of total TBR import by volumes in India. According to ATMA, huge surplus capacities in China are abetting dumping of tyres in India.

In a communication to Ministry of Commerce, ATMA has stated, "There is a concerted move to dump radial tyres in India so as to blunt India's edge in technologically superior radial tyre manufacturing. Indian tyre industry has invested Rs 20,000 crore in manufacturing state-of-the-art radial tyres in the last 3-4 years. However, a significant capacity is lying unutilised since demand is being met by imported radials, largely dumped into India from China.

Source:economictimes.indiatimes.com

Vedanta Says Will Work To Lift Cap On India Iron Ore Output

India-focused Vedanta Resources Plc (VED.L) will aim to lift a court-imposed cap on its iron ore output in Goa, the country’s top state for exporting the commodity, as it prepares to resume mining there in October after a three-year lull.

A mining ban that had been in place in Goa since September 2012 was lifted last year, but the resumption of operations was delayed while the government gave environmental clearance. The Supreme Court imposed a production cap of 20 million tonnes, of which Vedanta has been allocated 5.5 million tonnes.

“We believe that we can mine at much higher rates and we look forward to working with the government on lifting the cap,” Vedanta Chief Executive Tom Albanese told Reuters on the sidelines of an industry conference. He is also head of the company’s Indian unit, Vedanta Ltd.

Albanese said it would be up to a court-appointed panel to determine how much more Vedanta could produce. Increased supply from India would pressure prices for the steelmaking material that have recovered from a decade-low hit in April, but are still down more than 50 percent from last year’s peak.

India said last month it would cut export taxes on low-grade iron ore from Goa to 10 percent from 30 percent, in a move aimed at making it more feasible for miners to sell overseas amid the plunge in global prices.

“We do feel that the circumstances on the ground in Goa, with proper operating practices should support an industry much larger than 20 million tonnes per year,” Albanese said.

Goa exported about 50 million tonnes of iron ore a year before the ban was imposed in 2012 as part of a clampdown on illegal mining.

The state produced low-quality iron ore, with iron content of less than 58 percent, that was shipped mostly to China as Indian steelmakers prefer higher grade material.

But more Chinese mills have opted for high-grade iron ore following the drop in prices. Albanese believes there is still Chinese appetite for Goan ore, but said it would be tough to recover market share.

“Even in this current market where the buyer has a lot of choices … I do believe we will be able to find some market for our material,” he said.

“But I do think it’s important for Indian policymakers to recognise that we have lost a huge amount of market share over the past three years with these mining closures that it will be very difficult to recover from.”

Source:hellenicshippingnews.com

No reversal of Cenvat while writing off inputs/WIP for period prior to introduction of provisions fo

Cenvat Credit : Rule 3(5B) providing for reversal on inputs/capital goods written off 'fully' was introduced only from 11-5-2007 and provision regarding 'partial' write-off was introduced only in year 2011; therefore, same could not be applied for period prior thereto to seek reversal on partially written of inputs/WIP

Software development service provider couldn't be compared with a software developer under TP study

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering software development service to its AE, in view of fact that two comparables selected by TPO were improper on account of their huge turnover, brand value whereas another comparable selected by TPO was found inappropriate as it was developing its own software products, impugned addition was to be deleted

India Yarn Prices: Domestic And Export Markets

Spun yarn prices have partially declined in the last seven days in India, in line with a fall of cotton and polyester prices.

Our comprehensive review of Indian yarn markets covers the domestic markets in Ludhiana (Punjab) and Indore (Madhya Pradesh), with a wide range of products and counts, including cotton yarns (carded and combed), polyester spun, polyester-cotton, polyester-viscose and polyester-acrylic. Export market prices are also available for both cotton and polyester-cotton.

Source:emergingtextiles.com

Coffee Prices Falling; Tough Year For Indian Exporters

Indian coffee exporters are bracing themselves for a tough year as the coffee prices have plummeted with the latest forecast suggesting a good crop in Brazil and Vietnam, the top two producers of coffee in the world. Coffee exports from India have been weak with main buyers like European countries going slow on purchases.

The plans of the growers who have been holding on to the stock anticipating better prices have come unstuck as the prices may not rise in the immediate future.

"Globally the prices have fallen, but the growers here are not willing to sell at lower prices. As a result, there is a mismatch in rates. The export-trend is also weak.

So we are adopting a wait-and-watch policy," said M P Devaiah, general manager of Allanasons, a major exporter of coffee. What has upset the calculations is the coffee supply from Brazil.

Source:economictimes.indiatimes.com
 

Daimler To Export Mercedes Benz Buses From India

Daimler AG, the world's largest truck maker is preparing to export its fully built luxury buses under the Mercedes Benz brand to markets in Africa and South East Asia.

This will be the first instance when the luxury vehicle maker with the three pointed star logo will export a high end product out of India. These buses have been designed, engineered in India and adapted to the local market with a significant localisation level of 75% on bus body and overall localisation of over 50%.

Speaking on the side-lines of a bus manufacturing plant inauguration in Orgadam, Chennai, Hartmut Schick, head of Daimler Buses told ET, "We will be exporting both the bus chassis and fully built buses from India. The chassis exported will be used for Mercedes Benz Buses. We have already exported 150 chassis to Egypt, we are negotiating with Indonesia, Africa, so there are lot of markets to cater to. For fully built buses we may look at Nigeria in Africa and some of the South East Asian Markets."

Apart from Germany, Daimler uses its manufacturing base in Brazil and Spain to export MB buses, India will emerge as a key gateway to Africa and South East Asia. The company is currently analysing the specific markets in these two continents and may begin export next year.

On the similar lines, the largest luxury bus maker Volvo too is planning to export buses to some of the developed markets in the coming quarters.

India with quality and cost advantage has established itself firmly as an export base. Over the past few years, India has migrated from just being a small car exports hub to bigger cars like sedans and utility vehicles and now even the luxury cars like Chrysler Jeep SUVs will be exported to overseas markets.

Set up with an investment of Rs 425 crore, the new bus manufacturing facility in Chennai will have an initial capacity of 1500 units, which can be further expanded to 4000 units. The new plant will manufacture buses with gross vehicle weight of 9, 16 and above 16 ton range, in both double and triple axles with front and rear engine configuration.

The company will launch the buses in the domestic market in the third quarter of 2015. With these new range of buses, Daimler will cater to both private and government buys, which includes school buses, tourist buses and intercity coach buses accounting for 15,000 units per annum said the company.

Schick expects the volume of the Indian market for buses weighing over eight tons to more than double by the year 2020. "Our two-brand strategy allows us to offer our customers in the region the right products and services for them," he said.

The new bus plant will create 1,300 job opportunities in the state, 300 for DICV and additional 1,000 at Wrightbus International, the bus body builder for Daimler.

Calling it the second wave of growth in India, Daimler India Commercial Vehicle on Wednesday unveiled a range of trucks and buses - under Bharat Benz and Mercedes Benz brand and higher horsepower 31 tonner deep mining trucks and 49 tonner local heavy duty tractor.

In a short span of four years, Daimler has already captured the number 3 position in the heavy duty truck space by selling over 22,000 units. With the localised new mining trucks, company will take on the imported models of Volvo and Scania. Daimler India has already secured orders for 600 mining trucks in a market that has an annual appetite for 2000 trucks.

Source:economictimes.indiatimes.com
 

India, Second-Biggest Wheat Grower, Reaping Smallest Crop Since 2008

India is probably heading for the smallest wheat harvest in seven years after rains and hail ravaged farms, forcing bread and pizza makers to boost imports.

Production is set to drop as much as 17% to 80 million tonnes from a record 95.9 million tonnes a year earlier, said Pravin Dongre, chairman of the India pulses and grains association. That’s the lowest since 2008, official data show. The government estimates output at 90.78 million tonnes.

Unseasonal rains have ruined crops and lowered the quality of wheat in the world’s largest producer after China. That’s spurred flour mills to increase imports for blending with local grain as global prices trade near the lowest level since 2010. The harvest normally starts in April and ends by June.

“We’re shattered as almost all my wheat, potato and mustard crops were damaged by the untimely rains,” said Sateesh Kumar, a farmer from Uttar Pradesh. He harvested 5.2 tonnes from 11 acres, down from 22 tonnes last year.

Crops from wheat to rapeseed and vegetables were damaged on about 19 million hectares as rainfall more than double the 50-year average in February and March drenched fields, according to government data. The main wheat-producing regions had almost five times the average, data show. That’s discoloured the grain and raised moisture content.

“What we are hearing from our sources is that there is huge damage to the crops,” Dongre said. “In some areas, there is no grain at all.”

Mills in southern India, which depend on supplies from growing regions in the north, say imports from Australia are cheaper and of better quality. The grain transported from central and northern India to Chennai and Coimbatore in the south sells at about Rs.18,500 a tonne, compared with Australian wheat which is available for $265 to $270 a tonne in bulk at Tuticorin port, according to P. Gunasekaran, president of the Tamil Nadu roller flour mills association.

Wheat traded in Chicago, which entered a bear market in January, tumbled 24% in the past year, more than the 4% decline in Mumbai prices. The contract for delivery in July was little changed at $4.87 1/2 a bushel on Chicago board of trade on Thursday.

“We have to import as the quality of Indian wheat has been affected by the untimely rains,” said M.K. Dattaraj, managing director of Krishna Flour Mills Bangalore Pvt. Ltd, which processes about 84,000 tonnes annually. “We are blending Australian wheat with Indian varieties to meet specific requirements from bakeries and quick-service restaurants.”

Imports may surge to 1 million tonnes from 45,000 tonnes a year earlier if purchases from Russia and the Black Sea region are allowed, said Faiyaz Hudani, associate vice president at Kotak Commodity Services Ltd in Mumbai. Supplies from that area depend on the government easing phytosanitary requirements, according to Dongre.

Source:livemint.com

Gail Ties Up Shell As A Buyer For Lng From Its Us Portfolio

India’s flagship gas trading and marketing company GAIL (India) on Wednesday said it has entered into an agreement to sell liquefied natural gas (LNG) to Shell. GAIL’s chairman and managing director BC Tripathi said that a definitive agreement has been signed with Shell through its subsidiary in Singapore. However, he did not divulge the volumes or price at which the agreement has been sealed.

In December 2011, GAIL signed a deal with Cheniere Energy Partners to buy 3.5 million tonnes per annum (mtpa) of LNG from the Sabine Pass Terminal in Louisiana on FoB basis. Deliveries would start from January 2018. In April 2013, GAIL booked another 2.3 mtpa capacity to export LNG from the Dominion Cover Point terminal in Maryland.

Tripathi said that the gas to be imported from the US is expected to land on Indian shores at less than $9 per million British thermal units (mBtu). It has also firmed up another 0.5 mt sales with domestic buyers with retail and fertiliser units.

“We are not nervous, but we are cautious. We are evaluating the domestic market,” Tripathi said when asked if GAIL would be able to sell the entire LNG imported from the US in India. He did not ruled out the possibility of selling more volumes overseas in a similar contracts as with Shell. “Many companies have shown interest (to buy LNG),” he added.

Currently, spot LNG prices hover around $8-8.50 per mBtu, while LNG purchased through long-term contract arrives at $13-13.50 per mBtu. India buys 7.5 mtpa of LNG from Qatar’s Rasgas. The imported gas procured by Petronet LNG (of which GAIL is liable to take 60%) on long-term take-or-pay basis is now expensive compared with spot cargoes.

Tripathi said that supplies from Qatar had been reduced by 30-35%. GAIL has lost allocation of cheap domestic gas from the Reliance Industries-operated KG-D6 block for its petrochemical business and was forced to use LNG from Qatar, hurting its petrochemical earnings. GAIL is replacing the expensive long-term gas with cheaper spot buys to improve petrochemical revenues.

Meanwhile, GAIL would reissue the multi-billion-dollar tender to buy LNG ships with “changed norms” in July. Tripathi said that in recent months Indian shipbuilders such as Larsen & Toubro, Cochin Shipyard and Pipavav Shipyard have joined hands with Korean ship manufacturers to build LNG vessels here.

GAIL may hire LNG ships on short- or medium-term basis to import LNG from the US starting January 2018 if the new ‘Made in India’ ships are not ready by then, said Tripathi, adding that the new tender would seek the companies to build one ship in India and the remaining two overseas.

The government-owned company plans a capital expenditure of Rs 2,700 crore in FY16 against Rs 1,633 crore in FY15. It borrowed Rs 500 crore in FY15 and targets to raise another Rs 1,000 crore via bond issue in FY16.

GAIL reported a 47.42% drop in its fourth quarter net profit at Rs 511 crore against Rs 972 crore in the same quarter last year. The drop in profit is because of less gas trading and transmission volumes.

The firm reported a turnover of Rs 14,235 crore in the fourth quarter of FY15 against Rs 14,464 crore in the corresponding quarter in the last financial year.

Source:financialexpress.com

Rupee Up At 63.82 On Dollar Sales By Foreign Banks

The rupee rose against the dollar on Thursday afternoon due to dollar sales by some foreign banks, likely on behalf of their clients. Weak dollar demand, particularly from state-owned banks, also supported the rupee.

 

At 2.05pm, the home currency was trading at 63.82, up 0.32% from its previous close of 64.03. The local unit opened at 63.99 per dollar and touched a high and a low of 63.80 and 63.99, respectively.

 

“A couple of foreign banks are selling, particularly one based in London. There are definitely inflows in the market, but no one knows where are these flows from because even the stock market is weak,” said a dealer with a private bank. The local benchmark equity index Sensex was down 0.58%, or 157.02, points at 27,407.60 points.

 

Dealers are awaiting two key economic developments in the next couple of days. On Friday, the government will release the fourth quarter gross domestic product (GDP) growth numbers while on Tuesday, the Reserve Bank of India (RBI) will announce its interest rate decision.

 

The yield on India’s 10-year benchmark bond was trading at 7.65% compared with its Wednesday’s close of 7.67%. Bond yields and prices move in opposite directions.

 

Since the beginning of this year, the rupee has lost 1.25%, while foreign institutional investors have bought $6.84 billion from local equity and $6.11 billion from bond markets.

 

The dollar index, which measures the US currency’s strength against major currencies, was trading at 97, down 0.38% from its previous close of 97.371.

 

Source:livemint.com

Interest earned by co-operative society on idle funds kept with bank wasn't eligible for sec. 80P re

IT : Where assessee, a co-operative society, having accepted deposits from its members, kept idle funds with bank, since there was no nexus between interest earned on said deposits and business of assessee providing credit facilities to its members, it could not claim deduction under section 80P(2)(d) in respect of interest income in question

Penalty couldn't be upheld when revenue reviewed a matter after a whopping period of 10 years

IT : Where all authorities and Tribunal gave concurrent finding that agricultural income declared under amnesty scheme was required to be assessed in year under consideration as undisclosed income, same was to be upheld

Freight would form part of transaction value if place of removal is buyer's premises

Excise & Customs : Freight and other costs is included in value upto 'place of removal'; hence, where transfer of property takes place at buyer's premises, place of removal will be 'buyer's premises' and freight and other costs would form part of value upto that stage

Manufacturer exporting goods via Port of Mundra are also eligible to receive duty free intermediate

EXCISE LAWS/NNT : Exemption to Gold Potassium Cyanide used Within Factory of Production for Manufacture of Gold Jewellery – Amendment in Notification No. 44/2001-C.E., Dated 25-9-2001

TDS liability doesn't arise on payments made to NR shipping Cos or its agents

IT : Where assessee made payments to agent of non-resident shipping companies, assessee was not required to deduct TDS under section 194C in respect of said payment

No reassessment on basis of info of DDIT (Investigation) that cash seized from director belonged to

IT : Where certain cash was seized by police from director of assessee-company, merely on basis of information received from DDIT (Inv.), AO could not initiate reassessment proceedings by recording reason that creditworthiness of assessee had to be proved beyond doubt to accept claim of its director that money seized infact belonged to assessee-company

Stock statements given to banks for availing credit facilities don't establish undervaluation of goo

Excise & Customs : Stock statements given by assessee to banks for purposes of getting credit facilities do not prove undervaluation in absence of any evidence of flowback of additional consideration from buyer to manufacturer