Tuesday, 16 June 2015
Electric panel board was taxable @ 12% w.e.f. 18-8-2001 under Tamil Nadu General Sales Tax Act, 1959
High Court orders mandatory pre-deposit as per new provision even when appeal was filed prior to Aug
Vending fee payable to Govt. which will be used to repair machinery is covered under sec. 43B
TRAI's directives to private mobile service providers to end differential tariffs in four States was
Vending fee payable to Govt. for benefit on repair of machinery is covered under sec. 43B
An investment advisor can't be compared with a merchant banker for TP study
SEBI specifies additional disclosure requirement by Cos under 'Share based employee benefits' norms
Payment for use of technology without transferring license wasn't capital expenditure in nature
Assessee couldn't be asked to prove that its supplier had purchased goods legally
Compensation received on termination of agency agreement is taxable as business income and not capit
Exports Contract 20.2% To $22.34 Bn In May; Trade Deficit Narrows To $10.4 Bn
Goods exports from India dropped 20.19 per cent in May 2015 to $22.34 billion — the sixth continuous month of fall — as the slowdown in China added to the woes of the already slowing global economy.
Imports during the month were 16.52 per cent lower at $32.75 billion, mainly due to a sharp drop in petroleum imports. Trade deficit narrowed to $10.4 billion in the month under review compared with $11.23 billion in May 2014, according to a data released by the Commerce Ministry.
“It is not just our traditional markets, but demand from emerging markets, including the ASEAN countries and the rest of Asia, is also shrinking. The slowdown in China has hit economic activity in the smaller economies in Asia and exports of many other countries are on the decline,” said Ajay Sahai, Director-General, Federation of Indian Export Organisations.
Exports of petroleum products declined 59.10 per cent to $2.42 billion during the month due to fall in global oil prices. Other major export items, including engineering goods, electronic goods, gems & jewellery, cotton yarn and a number of agriculture items, also declined.
Import of a number of items, including petroleum products, transport equipment, chemicals, dyes, precious and semi-precious stones and vegetable oil, declined in May 2015.
While petroleum and crude imports during the month was 40.97 per cent lower at $8.53 billion, non-oil imports were 2.24 per cent lower at $24.21 billion.
Cumulative value of exports for April-May 2015-16 was $44.40 billion which was 17.21 per cent lower than that in the comparable period of the previous fiscal. Cumulative value of imports for the period April-May 2015-16 was 12.21 per cent lower at $65.80 billion.
Trade deficit for April-May 2015-16 was estimated at $21.39 billion which was higher than the deficit of $21.32 billion during April-May, 2014-15.
Source:thehindubusinessline.com
Dgft Issues Notification On Allowing Consignment Import At Snz
The Directorate General of Foreign Trade (DGFT) has issued a notification for the import, auction sale and re-export of rough diamonds on consignment basis or outright sale at the Special Notified Zone (SNZ) for rough diamonds.
“Import, auction/sale and re-export of rough diamonds by entities, as notified vide RBI Notification 116 of April 1, 2014, as amended from time to time, on consignment or outright basis, will be permitted in SNZ administered by the operator of SNZ, under supervision of Customs,” DGFT said in a notification.
The procedure of import, auction/ sale and re-export of rough diamonds (unsold) would be as specified by CBEC, it added.
The DGFT has made necessary amendments in the Foreign Trade Policy (FTP) allowing the import, auction, sale and re-export of rough diamonds from the SNZ to be set up at Mumbai's Bharat Diamond Bourse (BDB) at Bandra Kurla Complex (BKC). Earlier, the import on consignment basis was not allowed under the FTP.
Source:knnindia.co.in
Psus To Soon Float Pulses Import Tenders: Agriculture Secretary Siraj Hussain
The government has finalised modalities for import of key pulses and state-run agencies such as MMTC will soon float tenders for overseas purchase of lentils, Agriculture Secretary Siraj Hussain said today.
"We have finalised the modalities for import of pulses. MMTC and other state-trading agencies have been asked to float import tenders," Hussain told PTI. The import of pulses will boost domestic supply and check rising prices, he added.
Prices of pulses have risen by more than 64 per cent in the last one year as the domestic production fell by nearly two million tonnes (MT) in 2014-15 crop year due to unfavourable weather conditions.
For instance in Delhi retail markets, tur prices have increased to Rs 113/kg, urad to Rs 112/kg, moong to Rs 103/kg, masoor dal to Rs 94/kg and gram to Rs 68/kg, as per the data maintained by the Consumer Affairs Ministry.
Last week, the Cabinet had expressed concern over rising prices and decided to increase imports, among other measures.
"The government is very serious on rising prices of pulses. There has been less production of pulses. We will import pulses whatever quantity is required," Food and Consumer Affairs Minister Ram Vilas Paswan had said.
Pulses production is estimated to have fallen to 17.38 MT in 2014-15 crop year (July-June) from 19.25 MT in the previous crop year due to deficient monsoon last year and unseasonal rains and hailstorms during March-April this year. India imports about four MT of pulses, largely through private trade, to meet domestic shortfall.
Source:economictimes.indiatimes.com
Indian Exports Continue To Worry; Down For 6Th Straight Month
Even though trade deficit has been contracting when compared to the same months of last year, the numbers are increasing when looked sequentially. India's exports in the month of May 2015 stood at $22.34 billion, lower by nearly a fifth as against the same month last year. This is also the sixth consecutive month of fall in India's exports to the world. Imports, too, fell but at a lower pace of 16.52%.
According to the data made available by Ministry of Commerce and Industry, Indian imports for the month of May 2015 were recorded at $32.75 billion, lower by nearly 16.5% as against imports of $39.23 billion in May 2014. In rupee terms, imports fell by over 10%.
The government data showed that the precipitous fall in crude oil prices helped to post the lower import bill as India's oil imports for the month of May 2015 fell by nearly 41% and were valued at $8.53 billion as against $14.46 billion in May 2014.
The trade deficit fell to $10.4 billion as against $11.23 billion in the corresponding month of last year. India's trade deficit for the month of January, February, March and April stood at $8 billion, $6.8 billion, $11.8 billion and 11 billion, respectively.
Indian exports and imports have been on the decline since the beginning of this calendar year but it is the fall in crude oil imports that is helping immensely to keep the trade deficit numbers under control. An analyst tracking India's macroeconomic data said, "There is a slump in global demand."
Global economic behemoth, China, too has reported a third consecutive month of exports decline. South Korea said that its May exports were down 11%, biggest slump in six years. The analyst said, "Exports globally are shrinking as growth in China is contracting and this is a worrying sign. None of the BRICs countries are showing any recovery in their international trade."
Daljeet S. Kohli and Kaushal Patel of IndiaNivesh Securities Pvt Ltd in a report dated May 18 had said that steep decline in crude oil prices has impacted India's oil exports which has reduced from 20% to 12% in April 2015.
They said , "Overall, with weak global demand exports will remain under pressure and if manufacturing activity revives in FY16, imports of raw materials and intermediate goods are likely to increase."
"Increasing imports of gold also continue to remain main cause of concern in the Indian economy. So, as long as crude oil price is at low level, it will continue to help to offset any increase in non-oil imports," they added. India gold import bill for May 2015 stood at $2.42 billion, up by over 10% as against the same month of last year.
Source:dnaindia.com
Growth In Export Of Textile Products May Shrink
The Indian textile and clothing sector, which registered 41 billion dollars worth exports last financial year, might not see high growth in exports this year, according to industry sources.
The sources told The Hindu here recently that segments such as garments and home textiles had seen growth in exports. However, sectors such as cotton yarn had seen exports slowing down because of decline in demand from China.
The sources said that China was one of the major markets for cotton and yarn exports from India. Though textile mills were now exporting to countries such as Bangladesh, Vietnam and Cambodia, the demand from China was huge. This year, the industry expects export demand to be good for segments such as garments. However, the demand for yarn should increase in the overseas market. Hence, the export growth might be flat this year for the entire sector, the sources said.
Nearly 35 per cent of the country’s annual textile and clothing production is exported. In some countries, the average import duty on these products is high and hence, the industry needs support to upgrade technology, improve its efficiency.
Source:thehindu.com
Indian Spices In Good Demand; Export Touch $2,432.85 Million
Indian spices maintained their robust demand in the international market with their export touching a whopping Rs 14,899.68 crore in 2014-15 as compared to Rs 13,735.39 crore (US $2,267.67 million) a year earlier.
Chilli, mint and mint products, cumin, spice oils and oleoresins, pepper, turmeric, coriander, small cardamom, curry powder/paste and fenugreek contributed substantially to the spice export basket as the demand for Indian spices scaled up phenomenally at the global level.
In 2014-15 fiscal, a total of 8,93,920 tonnes of spices and spice products valued at Rs 14,899.68 crore (US $2,432.85 million) were exported, registering a 9% increase in volume and 8% in rupee terms and 7% in dollar terms in value as compared to 8,17,250 tonnes valued at Rs 13,735.39 crore (US $2,267.67 million) in financial year 2013-14.
The total export of spices during 2014-15 exceeded the target of 7,55,000 tonnes valued at Rs 12,304.90 crore (US $2000 million) in terms of both volume and value for the financial year 2014-15.
Spices Board, the flagship organisation under the Union Ministry of Commerce and Industry, has been able to meet the export target by devising multifaceted activities for promotion of spices and sustaining their demand in the global market.
"The achievement is substantial — 118% increase in terms of volume and 121% in rupee and 122% in dollar terms of value — and it was achieved in the face of tough competition. Increased demand for Indian spices in the international market is a testimony to their unmatched quality and escalating faith in their sustainability," said A Jayathilak, Chairman, Spices Board in a release here on Monday.
Chilli continued to be India's largest exported spice, accounting for 347,000 tonnes in quantity and Rs 3,51,710 lakhs in value during FY 2014-15. The export grew by 11.04% in quantity and 29.20% in value as compared to FY 2013-14.
Mint and mint products (mint oils, menthol and menthol crystals) earned substantial foreign exchange worth Rs 2,68,925 lakhs through exports of 25,750 tonnes, emerging as a major money-spinning commodity in international spice markets.
In terms of volume, chilli was followed by cumin with an export quantity of 1,55,500 tonnes that earned a foreign exchange worth Rs 1,83,820 lakhs. In 2013-14, the figures stood at 1,21,500 tonnes valued Rs 1,60,006.45 lakh.
Value-added spice products like spice oils and oleoresins notched a significant high with figures of 11,475 tonnes (exports) and Rs 1,91, 090 lakhs (earnings), registering a growth of 1% in quantity and 10% in value, respectively.
The figures for the corresponding period in 2013 stood at 11,415 tonnes and Rs 1,73, 324.85 lakhs, respectively. Pepper, 'The King of Spices', contributed significantly to export earnings by bringing home Rs 1,20, 842.16 lakhs with a corresponding export volume of 21,450 tonnes in FY 2014-15.
The earnings from pepper export rose marginally as the figures in the corresponding FY 2013-14 were Rs 94,002.34 lakhs and 21,250 tonnes, registering an increase of 1% and 29% in terms of volume and value, respectively.
Turmeric too continued to make great strides with an export volume of 86,000 tonnes, which translated into a hefty earning of Rs 74,435 lakhs as compared to 77,500 tonnes and Rs 66,675.85 lakhs during FY 2013-14.
Coriander was another major spice with a huge demand in foreign markets. By exporting 46,000 tonnes, it fetched Rs 49,812.50 lakhs while curry powder/paste contributed to the exchequer with a tidy amount of Rs 47,626 lakhs through export of 24,650 tonnes.
Small Cardamom, 'The Queen of Spices', stood at 3,795 tonnes that earned for the country foreign exchange pegged at Rs 49,812 lakhs. Large cardamom's export value surged substantially to Rs 8403.90 lakhs as compared to Rs 7961.15 lakhs compared to FY 2013-14.
In 2014-15, chilli, cumin, turmeric, coriander and ginger accounted for more than 70 per cent of the total volume of spice export whereas mint, chilli, spice oils & oleoresins, cumin and pepper accounted for around 70% of the total export earnings.
"Indian spices are not only lucrative products for the national exchequer but have also become a trusted global brand," Jayathilak said, adding, "The challenge for us is to give a huge impetus to their export and sustain their quality and flavour."
Source:seeandsaynews.in
India’S Growing Demand Drives Nsw’S Coal Export
The bulk carriers were lining up as far away as Gosford yesterday waiting to get a berth at Newcastle’s giant port almost 100km to the north.
Raising hopes among downbeaten miners, coal exports from NSW are up on the last financial year, pointing to a new era for the sector that hopes to feed India’s rising appetite for energy.
While prices have come off sharply from slowing demand from China, coal remains NSW’s number one export commodity. Exports for 2014-15 jumped nearly 5 per cent to 133 million tonnes, from 127 million tonnes in the previous financial year.
Exports to India have more than doubled from 3.2 million tonnes to 7.7 million tonnes over the nine months to March, according to figures released by Coal Services.
“Exports of NSW coal to Korea are up 8 per cent, while exports to Taiwan have risen by 21 per cent and across the rest of Asia outside of Japan and China, exports have more than doubled to 15.6 million tonnes over the last nine months,” NSW Minerals Council chief executive Stephen Galilee said.
The figures would be of little comfort to the 5000 coal industry employees of the state who lost their jobs over the past two years, but bode well for the long-term future of the sector, he said.
“We shipped more last year than we did the year before,” Port Waratah Coal Services spokesman Paul Chamberlin said.
The bulk of the coal exported through the Newcastle port was to China and Japan but “India is a growing market”, he said. “It is a win for Newcastle and Queensland because the coal that comes out of the Hunter Valley is very clean compared to ground coal from Victoria.”
The port last week received approval for a $5 billion coal loading terminal, the T4 project, with a capacity for 70 million tonnes.
“If you built it tomorrow it wouldn’t be used,” Mr Chamberlin said. “The indicators are that it is not needed at present, but exports will continue to grow … you respond to what you’re told will be future demand.”
The Minerals Council’s Mr Galilee estimated that India currently imported 80 per cent of its “low-grade, high-ash coal” from Indonesia.
“(India’s) move to cleaner coal imports puts NSW in a prime position to benefit from this growing demand for the type of clean thermal coal our state produces,” he said.
Japan comprises 40 per cent of total NSW coal exports, followed by China at 18 per cent and Korea at 11 per cent, but Mr Galilee said demand from India was set to increase.
He pointed to a recent speech by India’s head of the Department of Industrial Policy and Promotion, who said that India wanted international miners to send their coal to India, including Australian players.
The most recent forecast from the International Energy Agency predicts global electricity demand could double between 2009 and 2035 as those in the developing world gain access to electricity.
“The energy mix is changing but there is still a use for fossil fuels,” Mr Chamberlin said. “India wasn’t even on the radar a few years ago.”
Thermal coal prices have come off as China’s leadership is intent on reducing long-term coal imports as it deals with rising pollution and increases hydro, nuclear and gas-fired electricity generation. At the same time, a slowing economy there has hit steelmaking.
In 2014, some higher-cost Australian coking coalmines closed, including Vale’s Integra mine and Sumitomo’s Isaac Plains mine in Queensland and Glencore’s Ravensworth mine in NSW, but there are now many mines doing it tough.
Prices of steelmaking coal, which traded above $US300 a tonne during the boom and were at $US113 at the start of the year, recently slumped to a 10-year low of $US85 a tonne, while thermal coal has fallen from more than $US140 a tonne to $US65 a tonne.
Source:hellenicshippingnews.com