CST & VAT : Delhi VAT - Where assessee as part of marketing strategy for business promotion had given turnover discount to its dealers once in a quarter through credit note, it was entitled to deduction of turnover discount from its turnover
Friday 19 June 2015
Order of Committee directing filing of appeal by department must be passed under joint signatures of
Excise & Customs : Appeal against order of Commissioner (Appeals) on review by Committee of Commissioners is valid only if direction by Committee to file appeal is under joint signatures of both members (Commissioners); suggestion by one Commissioner and acceptance by other Commissioner cannot be called to be a valid order
AO couldn't justify reassessment by mentioning same reasons in different words which weren't sustain
IT : A virtual assertion of same reasons in different words in second reassessment does not clothe reassessment notice, with any more sanctity
Guarantor couldn't escape from her liability if it was co-extensive with principal debtor as per loa
Contract Act : Where in loan agreement (contract) there was a clause which showed that liability of guarantor was co-extensive with principal debtor, guarantor in terms of section 128 could not escape from her liability as a guarantor for debt taken by principal debtor
ITAT makes sec. 43B disallowance even when assessee opts for presumptive taxation scheme
IT: Non-payment of statutory liability before due date of filing of return would attract disallowance under Section 43B even if assessee had offered his income on presumptive basis.
HC allows secured creditor to claim at contractual rate of interest, being less than surplus amount
CL : Where interest claim of secured creditor was less than surplus available with company-in-liquidation, assessee would be entitled to interest for post winding up period
ITAT isn't barred from handling question of law or fact just because it isn't raised at earlier stag
IT: Tribunal is not precluded from handling a point, whether of law or fact, which relates to assessee's assessment merely because nobody else had handled it before or because assessee or department had not raised and urged that point at earlier stages of proceedings
Lease agreements entered into before enforcement of Karnataka VAT Act aren't liable to VAT
CST & VAT : Karnataka VAT - Where assessee purchased cars prior to 1-4-2005 after payment of tax and had given same on lease to customers prior to 1-4-2005, i.e., prior to coming into force of Karnataka Value Added Tax Act, for a period of five years and lease rentals was payable on monthly basis, assessee was not liable to pay tax under section 3 of VAT Act on lease rentals received after 1-4-2005
Dgft Enables Online Submission Of Merchandise Exports Application
Moving towards paperless submission and processing of various applications under Foreign Trade Policy (FTP), government has launched the beta version of online ANF 3A Application form for Merchandise Exports from India Scheme (MEIS), with facility to upload the supporting documents.
“Trade is informed that a Beta version of online ANF 3A has now been released and it is now possible to not only apply online for claiming rewards under MEIS but also to upload the required supporting documents using digital signatures of the applicant,” Directorate General of Foreign Trade (DGFT) said in a notification.
As a result, henceforth, in case the applicant submits the supporting documents online, along with the application, submission of physical copies of documents (other than ‘Proof of Landing’ and shipping Bills in case of exports made from Non EDI ports) would no longer be required.
All IEC holders/applicants are encouraged to submit/upload the documents (including ‘Proof of Landing’) online using digital signatures. In case of documents submitted online, the concerned RA shall not insist on physical copies of such uploaded documents, DGFT said.
Source:knnindia.co.in
Sum paid on account of legal obligations instead of contractual agreement isn't subject to sec. 194C
IT: Payment made to Punjab Water Supply and Sewerage Board which arose out of legal obligations rather than any contractual agreements couldn’t be subjected to TDS under section 194C
Indian Poultry Industry Wants To Import 1 Mn Tonne Soya Meal To Compete With Us Imports
To deal with the impending competition of cheaper imports of chicken legs from the United Sates, Indian industry has demanded permission to import at least one million tonne soya meal. This will help the poultry industry to get cheaper raw material and reduce its cost of production, which is thrice the cost of production of US chicken legs.
As India has lost its case in the World Trade Organisation to oppose import of US chicken legs, the domestic industry expects to see the impact of the decision in 12 to 18 months.
"The cost of processed chicken in India is $3/kg while the cost if the imported chicken leg from the US will be $1/kg," said Amit Saraogi, chairman, CLMFA of India, the organisation representing the feed industry.
Cost of Indian soya meal is higher than the global soya meal because our productivity is much lower than the productivity of countries like the US, which have GM soya.
Indian poultry industry, which is growing at 7 per cent to 8 per cent per annum, is worth Rs 80,000 crore, 65 per cent of which is poultry while 35 per cent is accounted for by eggs.
Chicken breast is considered as the premium product in the US and chicken legs are just a by product. But chicken legs is the main product for Indian market. Mr Saraogi said that the current difference between domestic soya meal and imported soya meal is about $250.
The domestic industry is also deliberating with the government about stricter implementation of food safety standards for both domestic as well as imported poultry products. Representatives of the corn industry too expressed need to import the feed raw material.
Source:economictimes.indiatimes.com
Apex Court orders release of Sahara Chief on stiff conditions; requires payment of 36,000 crores in
SEBI : SC orders release of Sahara contemnor directors subject to furnishing Bank Guarantee. Conditions imposed as to full payment of Rs. 36000 crores in 9 instalments and surrender on failure to deposit any 3 instalments (not necessarily consecutive) and liability to re-arrest on failure to surrender. SC also orders deposit of passports in court by contemnor directors.
Mere pendency of arbitration proceedings couldn't be a ground to dismiss winding up of defaulting Co
CL: Where denial of debt was not bona fide and respondent company had admitted its liability to pay bills to petitioner, mere pendency of arbitration proceedings did not constitute a ground to reject petition for winding up
Assessee couldn't raise issue of due service of notice after participating in reassessment proceedin
CST & VAT : Karnataka VAT - Where assessee participated in reassessment proceedings, filed objection and got an order, it could not contend for first time before High Court that there was non-recording/non-communication of reason to belief by assessing authority
Malda Mango Traders Face Bangladesh Export Duty Hurdle
Delight over Malda district's bumper mango crop has been overshadowed by post-harvest worry: Bangladesh, which consumes about 60 per cent of the output, has imposed heavy duty on imports of the fruit, making the Indian variety uncompetitive in the
neighbouring country.
The issue could not find place in official discussions during Prime Minister Narendra Modi's recent visit to Bangladesh. The districts of Malda, Murshidabad and Nadia in West Bengal make up the largest mango producing belt in eastern India.
"Against an average annual yield of 6 to 7 lakh metric tonne (MT), going by the trend, the figure this year is expected cross 10 lakh MT, making it a record," said S Misra, president, Malda Mango Merchants Association. "But lack of available export avenue has put us in deep trouble," he said.
According to a study prepared by CUTS Centre for International Trade, Economics & Environment, Bangladesh consumes almost 60 per cent of the mangoes produced in Malda, as few varieties produced here are always in high demand in Bangladesh.
"But Bangladesh has imposed heavy import duty of BDT 36/kg (about Rs 29/kg) on import of mangoes from India. That makes Indian mangoes uncompetitive in the Bangladesh market. Naturally, no Bangladeshi importer is lifting stock from us," said U Saha, secretary, West Bengal Exporters Coordination Committee.
"We expected it to come in discussion during our PM's Bangladesh visit. Unfortunately, it did not happen. Our CM also remained silent on this during her meeting with district administration on Monday," he added.
Malda contributed 5 per cent to the total Indian yield, which is about 50 per cent of the global production. Against this, India's share in the global mango export market is just 1 per cent.
Streamlined Indo-Bangla mango trade can significantly brighten this picture," said market experts. Senior officials from the Agricultural and Processed Food Products Export Development Authority ( APEDA) said, "The issue deserves a deep initiative. West Bengal state government may approach Delhi to take it up with Bangladesh at a higher level."
However, "Without any export to Bangladesh, we are bound to have around 5 lakh tonne surplus after local consumption this year. The local unorganised processing sector alone can consume maximum 15 per cent of that. The rest will remain under the mercy of upcountry agents," said Misra.
Source:economictimes.indiatimes.com
India Hikes Import Duty On Certain Steel Products To Curb Chinese Influx
In a bid to safeguard the domestic steel industry from the influx of Chinese imports, India on Wednesday raised import duty on long and flat steel products.
India has raised import duty on long steel products from 5.5 per cent to 7.5 per cent and that of flat steel products from 7.5 per cent to 10 per cent. Meanwhile, the country has kept the duty on stainless steel products intact
India imported 9.3 million tonnes of finished steel in fiscal 2015, which was 71.1 per cent more than in 2014. Among this imports, China constituted nearly four million tonnes.
“Asian economies like China, Japan and Korea have become more competitive and are exporting steel to India at throwaway prices due to drop in platts iron ore index thereby creating huge problem in India and posing threat to survival and sustainability of domestic steel industry,” noted the Associated Chambers of Commerce and Industry of India (ASSOCHAM) in a communication addressed to Union Steel and Mines Minister, Narendra Singh Tomar, dated April 2015.
Source:hellenicshippingnews.com
Government Weighs Sovereign Gold Bonds To Keep Tabs On Imports
RBI is planning to issue sovereign bonds linked to the bullion price in an effort to divert some of the estimated 300 tonnes of annual demand for gold bars and coins and curb bullion imports, which can push up the trade deficit.
The Reserve Bank of India, the central bank, will issue the bonds on behalf of the government, with a minimum interest rate of 2 per cent, according to a draft outline issued by the government late on Thursday. "The main idea is to reduce the demand for physical gold," according to the draft.
Indians prize gold as gifts and as a way of storing wealth. The country consumes nearly 1,000 tonnes of gold every year, most of it imported, and gold is the second-biggest expense on the import bill after oil.
To reduce overseas purchases of the precious metal, Finance Minister Arun Jaitley unveiled plans in February for a sovereign gold bond and a bullion deposit scheme.
While the deposit scheme aims to mobilise idle household gold, estimated at more than 20,000 tonnes, the sovereign bond would allow consumers to invest in 'paper' gold rather than physical gold.
The price of the bond would be linked to the price of gold and it would pay an interest rate linked to the international rate for gold borrowing.
For interest rates, "an indicative lower limit of 2 per cent may be given but the actual rate will have to be market-determined", the government proposal said.
The government aims to issue bonds worth 135 billion rupees ($2.12 billion) or the equivalent of 50 tonnes of gold in the first year. It invited the public to comment on the plans by July 2.
Source:economictimes.indiatimes.com
'Right to recommend appointment of directors' in the Articles is a right to nominate and not a mere
Contextually, Articles granting a promoter-shareholder "Right to recommend appointment of three directors" cannot be interpreted as mere "right to suggest". Brute strength in shareholding and even mere shareholding would suffice for that. It is a right to nominate. It was unnecessary to include in the articles a mere right to suggest. The right endures to each of the successors, legal representatives and assigns of the promoter shareholder as well and is not a "contract of personal service"
Rupee Strengthens Marginally Against Us Dollar To 63.71
The Indian rupee was trading marginally higher on Friday, tracking the gains in local equity markets, after the markets took comfort in US Federal Reserve indicating to delay its rate hike further down the calendar.
At 2.01pm, the home currency was trading at 63.71, up 0.04% from its previous close of 63.73. The local unit opened at 63.67 per dollar and touched a high of 63.65, a level last seen on 1 June, and a low of 63.86.
The local equity market was trading higher for the sixth consecutive session. The Sensex was trading at 27,315.99, up 0.74%, or 200.16 points. Since 11 June till date, the Sensex has gained 745 points, or 2.8%. Trading in currency, bond and equities markets were thin on account of incessant rainfall in Mumbai.
The yield on India’s 10-year benchmark bond was trading at 7.717% compared with its Thursday’s close of 7.761%. Bond yields and prices move in opposite directions. Since the beginning of this year, the rupee has lost 1.1%, while foreign institutional investors have bought $6.36 billion from local equity and $6.40 billion from bond markets.
Most of the Asian currencies were trading lower. Malaysian ringgit was down 0.84%, Philippines peso 0.39%, Singapore dollar 0.25%, Indonesian rupiah 0.14%, Japanese yen 0.13%, while the Taiwan dollar declined 0.13%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.371, up 0.36% from its previous close of 94.042.
Source:livemint.com
Issuance of bonds by RBI is its sovereign function; commission earned by banks on their sale isn't l
Service Tax : Issuance/sale of bonds by RBI on behalf of Government of India to manage Indian economy, which is its constitutional responsibility, is a sovereign function and no tax (direct tax or indirect tax) can be imposed on such functions
Depositors can file complaint before CLB until NCLT is constituted; MCA clarifies
COMPANIES ACT, 2013 : Section 74 of the Companies Act, 2013 - Repayment of Deposits, etc., Accepted before Commencement of This Act – Clarification on Repayment of Deposits Accepted by the Companies before Commencement of Companies Act, 2013 under Section 74 of Said Act
No reassessment to treat share premium as unexplained if assessee didn't suppress any details at ass
IT: Where assessee during assessment proceedings had explained and furnished working of share premium charged from subscribers, reopening of assessment for making addition on account of share premium receipt without providing valid reasons was not justified
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