SEBI : SEBI BOARD MEETING – Streamlining Process of Public Issues; Simplified Network for Capital Raising by Technologies Start-Ups and Other Companies; Fast Track Issuances through Fpos or Rights Issue etc.
Tuesday 23 June 2015
No garnishee notice can be issued for recovery before expiry of 30 days from date of service of noti
CST & VAT: Karnataka VAT - Where Assessing Authority passed reassessment orders on 28-2-2015 and raised tax demand and thereafter he initiated recovery proceeding and issued garnishee notices on debtors of assessee on 28-3-2015, since orders of reassessment and demand notices had been served on assessee only on 9-4-2015, garnishee notices could not be sustained
A giant software development Co. not comparable with a Co. working as a captive unit with limited ri
IT/ILT : Giant company in area of development of software which assumed all risks leading to higher profits is not comparable with assessee which is a captive unit of parent company and assumed only a limited risk
Extra margin passed over by manufacturer to dealers under incentive schemes not allowable as deducti
Central Excise : Extra discounts/margins passed over by manufacturer to dealers under various incentives schemes run by manufacturer on manufacturer's own account cannot, prima facie, be allowed as deduction to manufacturer
ITAT rightly allowed sec. 80-IB relief as assessee had satisfied the limit of commercial space in ho
IT: Where assessee acquired development rights in respect of land, and criteria of minimum area was met by assessee and area was situated within 25 kms from limits of Mumbai city, deduction claimed under section 80-IB would be allowed
No abuse of dominance by opposite party as its share in market of civil construction was very less
Competition Act: Where market share of OP engaged in undertaking construction works of Government of Kerala such as roads, bridges, national highways, dams, canals and other public structures was very less, OP was not in a dominant position in relevant market for provision of services for civil construction work of Government in State of Kerala and, therefore, no case of abuse of dominance was made out
Tvs-Bmw K03 Exported From India To Germany With A Price Tag Of Rs 107,250 Per Unit
The strategic partnership between TVS and BMW Motorrad will soon reveal a new, jointly developed motorcycle, codenamed K03, for the Indian as well as for the global market.
This upcoming motorcycle, is reaching the final phase of its development cycle and is scheduled to be unveiled by the year end. Early this year, BMW Motorrad CEO Stephan Schaller had confirmed that the upcoming TVS-BMW motorcycle will be powered by a sub-500cc single cylinder motor and will be completely engineered by the German two-wheeler manufacturer. However, no further details about the upcoming motorcycle were revealed.
Now, latest reports from import/export data website Zauba reveals that TVS-BMW has exported as many as 32 units (two units with “dummy engines”) of the K03 motorcycle to Germany for R&D purposes. Each unit of the motorcycle is priced at around Rs 107,250. Now, that price, for a ‘sub-500cc’ motorcycle, if it is in reality close to the specified cubic capacity sounds a tad too less to us.
While no official details have yet emerged about the exact displacement and power output of the new product, that price leaves us baffled. Even for a product meant for R&D purposes, that sort of price is too conservative for a near-500cc product. Does that mean that the upcoming TVS-BMW product has a likelihood of being a 250-300cc product? We wish not, as the game has moved ahead, and bringing a product in that segment won’t help bolster the image of either of the companies for the performance enthusiast.
While the aforementioned cost of the exported models excludes the taxes and profit, we expect the price of the final product to hover around Rs 2 lakh mark which would place the K03 against the highly successful and much adored and admired KTM Duke 390. TVS-BMW are unlikely to be able to beat the KTM-Bajaj duo on the pricing front, and unless there is significant advantage in terms of performance for a similar or heftier price tag, we don’t see much of a point in this entire exercise.
An official statement earlier revealed that the new motorcycle will be 100% engineered by the German automaker while TVS will provide its facility to produce the bikes cost effectively.
Source:motoroids.com
India 2015 Soybean Output To Jump Over 10 Pct On Timely Rain -Industry
Indian soybean production is likely to jump just over 10 percent in 2015 from a year ago to more than 10 million tonnes, boosted by ample monsoon rains, said an industry body.
That should help the world’s top importer of edible oils curb overseas purchases in the marketing year that starts in November, dragging on international prices. It could also bolster India’s exports of animal feed ingredient soymeal, which is made from soybeans.
“The soybean area will remain steady this year, but productivity will go up due to good and timely rainfall,” Pravin Lunkad, president of Mumbai-based industry body the Solvent Extractors’ Association of India (SEA), told Reuters. “We are expecting 10 million tonnes plus this year compared to last year’s 9 million tonnes.”
The country’s two top growing states, Madhya Pradesh in the centre and Maharashtra in the west, have received significantly higher rainfall than normal since the beginning of the four-month monsoon season on June 1, Lunkad said on the sidelines of an industry conference. That has helped farmers accelerate sowing in the states, which account for over 85 percent of total soybean output.
Lunkad said that a rise in soybean production in 2015 could bring down local soymeal prices, making exports of the cattle feed feasible to South Asian countries and Iran.
Indian soymeal exports have plunged so far this year as prices remained way above global markets after a drought last year hit the earlier soybean crop.
The impact from that drought means that India’s edible oil imports in the 2014/15 marketing year ending October could jump 12 percent to 13 million tonnes, Lunkad said, adding that cheaper palm oil prices had also stoked appetite.
“Like May, we will see higher imports even in June. Local oilseeds supplies are limited for crushing and we are expecting delayed shipments to land this month.”
India’s edible oil imports hit a record 1.35 million tonnes in May. It mainly buys palm oil from Indonesia and Malaysia, with soyoil from Argentina and Brazil.
Lunkad also said that the groundnut area in the top producing state of Gujarat could jump 20 percent as poor returns from cotton prompt farmers to shift crops.
Meanwhile, Lunkad said China was likely to resume imports of Indian rapeseed meal in around a month after halting them in late 2011 on worries over contamination.
He said that both countries had signed a “sanitary protocol” during Indian Prime Minister Narendra Modi’s visit to China last month and agreed to ensure Indian meal meets Chinese standards.
“Anytime within a month exports will resume. China has identified five crushing plants. Those plants will be allowed to export,” he said. Prior to ban, China imported about 400,000 tonnes of rapeseed meal a year from India.
Source:hellenicshippingnews.com
India Eyeing Africa For Export Of Marine Food
Indian marine products are being showcased at the South African International Trade Exhibition (SAITEX) in Johannesburg, South Africa, which began on Sunday.
At this fair, India is being represented by a 50-member delegation from the Ministry of Commerce and Industry. It is regarded as Africa's biggest trade fair.
Leela Nair, the chairman of the Marine Products Export Development Authority (MPEDA), was quoted by reports, as saying that India is showcasing its marine exports prowess in South Africa for the first time. India is the biggest producer of vannamei and a host of other aqua-culture products with their land farming of fish.
The Spices Board of India has four stalls in the Indian section of the fair. Spices Board chairman A Jayathilak was quoted, as saying there is increasing demand for Indian spices in Africa and other parts of the world.
Opening the Indian stand at SAITEX, India's High Commissioner to South Africa Ruchi Ghanashyam said Indian business houses were participating in large numbers because South Africa has a mutually beneficial trade relationship with India.
Source:business-standard.com
Services Exports’ Decline Is A Worrying Fall
India’s services exports seem to be following the same path as merchandise exports—downhill. In April, they contracted almost 5% year-on-year. Average monthly exports of services this year is just 0.8% so far, compared to a 5% monthly average last year (2014). A trend decline is noticeable from 2013, when services’ export growth was far healthier at 9% each month on average; the latter was particularly encouraging as it represented a strong rebound from the 3% monthly average growth in April-December 2012.
That this is a cause for anxiety is supported by the chief economic adviser’s recent remark on the matter. Arvind Subramanian has been reported as saying, “The ratio of exports of services to GDP (gross domestic product), after growing in dollar terms at a rate of almost 30% for about eight to nine years, has now flattened out and may be even declining....For one percentage point growth of demand globally our exports have plummeted sharply.” (Indian Express, 23 June, 2015)
As share of GDP, India’s services exports have fallen steeply from their peak values in the booming years of global trade up to 2006-07, and then again after the crisis until 2009-10. Since 2010-11 however, services export shares in GDP haven’t really recovered that breakneck speed of growth. Given the robust support these have typically provided to India’s total exports (about 35% annually), flagging growth rates that are now turning abysmal and even negative is a serious issue. That these are falling at a time when the US economy is on a steady recovery path is even more of a concern; the US occupies the top slot by destination for Indian services exports, whose fortunes rise and ebb with that of the world’s largest economy.
Subramanian added there was need to understand more fully what was affecting Indian exports in general, including services exports. “There is something fundamentally wrong in terms of our competitiveness...a challenge we need to be alert going forward,” he said.
What then is ailing India’s services exports? Is it an uncompetitive exchange rate? At a time when the major advanced economies are indulging in currency depreciations to recoup growth, is it the case that services’ exports, which are especially susceptible to exchange rate movements, are bearing the brunt? Or is it declining internal efficiencies or falling productivity that is causing services export growth to tail off? Are changes in the nature and structures of global trade responsible?
Indisputably, these are questions for policymakers to confront, probe and respond to quickly. For, apart from growth and employment effects, the newly-issued foreign trade policy also incorporates substantial contribution from services (although not specified numerically) in realizing the $900 billion export target for the next five years. It would be a shame if India dimmed in a space where it has globally shined so far.
Source:livemint.com
Govt. notifies simplified ITR forms; now taxpayers earning exempt income above Rs 5,000 can file ITR
IT/ILT : The Government Substitutes ITR 1, 2 and 4S. a New Form Itr-2A Is Prescribed for the Individuals or Huf Who Don't Have Income from Capital Gain, Business or Profession or Foreign Sources.
No payment of interest under takeover code if consideration was timely paid to shareholder of acquir
SEBI : Where consideration was offered and paid to a shareholder by acquirer in open offer within date specified under regulation 22(12), question of, paying interest to appellant would not arise at all
Constitutional validity of a provision not to be considered without determination of facts and law
Excise & Customs : Constitutional validity should not be considered in vacuum; hence, before considering it, it is appropriate and proper if a primary determination of fact and law is made by adjudicating authority and show-cause notice is adjudicated
India Signs Biggest Wheat Import Deals In Over A Decade - Trade Sources
Indian flour millers and the local units of global trading giants have sewn up deals to import 500,000 tonnes of premium Australian wheat since March, trade sources said, the biggest such purchases in over a decade, despite surplus stocks at home.
Concerns that untimely rains in February and March would cut wheat output, especially of high-protein varieties grown in central India, first drove flour millers in the country's southern ports to place the orders.
Attractive prices then prompted traders such as Cargill, Louis Dreyfus and Glencore to follow, said three sources directly involved in the deals.
The traders and millers could import another 500,000 tonnes from France and Russia, where harvests are around the corner. The deals could further push up benchmark prices that have jumped recently on concerns about crop quality in the United States.
"There are strong chances French and Russian wheat will find their way to India because of attractive prices and surplus stocks there, and if the euro goes down, I expect more French wheat coming to India," said one source.
Almost half of the already-contracted quantity, bought at $255 to $275 per tonne, has reached India and the rest is scheduled for July delivery, said the sources, who declined to be identified because of the sensitivity of the subject.
Although rains and hailstorms wilted the wheat crop, India, the world's second-biggest producer of the grain, has large stockpiles accumulated after eight straight years of bumper harvests.
Industry and government officials estimate this year's wheat output at about 90 million tonnes, nearly 5 percent lower than the 2014 harvest, but still exceeding domestic demand of about 72 million tonnes.
Since wheat is largely grown in India's central and northern plains, flour millers from southern states, hemmed in by the Indian Ocean, sometimes find it attractive to import high-protein grades from Australia. But this year's unusually large volumes have surprised some.
"Other than large amounts of wheat that we're importing, we see two other significant changes," said one of the sources. "Perhaps for the first time some imports are taking place in vessels and perhaps for the first time millers will end up buying French and Russian wheat as well."
At about $185 to $190 a tonne free on board, French and Russian wheat is attractive for India, said another source. High-protein wheat in India costs more than $300 a tonne and imports could ebb if prices fall to about $283, the sources said.
But Russian wheat may not meet India's quality requirements, despite its higher protein content than French wheat, said Tajinder Narang, a New Delhi-based trade analyst.
Source:economictimes.indiatimes.com
Cbec Proposes To Widen Items Under Duty Drawback Scheme
The Central Board of Customs and Excise (CBEC) proposes to widen the ambit of goods eligible for duty drawback scheme in an attempt to incorporate the “Make in India” policy of the government.
While a committee has been set up to rework the existing duty drawback rates, it has also got the mandate to extend the drawback scheme to other items. According to industry sources, there is a possibility that those products that are exported out of India after value addition and not just in raw form may be given priory tint he revamped rate scheme. Besides, big ticket items with possibility of high turnover may also feature. Manufacturing, agriculture, food processing, electronic goods and which involves skill and expertise may be preferred areas, said sources. ,
As per the other issue that the committee will be dealing with is to work out the modalities for calculation of duty drawback and suggest all India rates (AIRs) of duty drawback for the year 2015 for the existing items as also for new item. Besides, the report will also examine the quantitative data and justification for materials being treated as deemed imported and to go into the details of the levels of all the ‘residuary’ AIRs of Duty Drawback. Specifically, the committee will also examine and suggest the broad framework of AIRs of Duty Drawback in the context of Goods and Services Tax (GST)
“Considering the sluggish growth of exports, there is an urgent need for increasing export benefits to ensure the competitiveness of Indian products in international markets. Besides policy benefits, such as, continuation of interest subvention scheme, increase in rates of duty drawback to exporters, introduction of simplified procedures to ensure timely processing of indirect tax refunds are some of the areas that may boost exports”, said an industry source.
India’s latest export and import figures for May 2015 reflected the subdued economic scenario both globally and within the country. India’s exports contracted 20.2 per cent to $22.3 billion from what they were in May 2014, while its imports were down 16.5 per cent over the same period. Exports and imports have both contracted for six consecutive months, that is, from December 2014 onwards. As per reports, looking at the previous year, the December 2013 to May 2014 period also saw a continuous contraction in imports, except March 2014, which saw a marginal uptick in imports. Exports in this period, however, saw robust growth, especially in March, April and May 2014.
Source:business-standard.com
Rupee Weakens Against Us Dollar To 63.60
The Indian rupee on Tuesday weakened against the US dollar, following cues from the Asian currencies markets. At 2.23pm, the home currency was trading at 63.60, down 0.13% from its previous close of 63.52. The local unit opened at 63.60 per dollar and touched a high and a low of 63.55 and 63.66, respectively.
Most of the Asian currencies were trading lower. South Korean won was down 0.52%, Malaysian ringgit 0.29%, Taiwan dollar 0.24%, Japanese yen 0.22%, Singapore dollar 0.16%, while Philippines peso declined 0.16%.
The local equity market was trading higher for the eight consecutive session. The Sensex was trading at 27,799.72, up 0.25%, or 70.50 points. Since 11 June till date, the Sensex has gained 1,425 points, or 5.37%.
The yield on India’s 10-year benchmark bond was trading at 7.764% compared with its Monday’s close of 7.736%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has lost 0.85%, while foreign institutional investors have bought $6.25 billion from local equity and $6.35 billion from bond markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.916, up 0.62% from its previous close of 94.329.
Source:livemint.com
Rule 16B of Excise permits removal of yarn to job-worker without payment of duty for manufacturing o
Excise & Customs : Yarn meant for further manufacture of fabrics by job-worker, is a 'semi-finished goods' for purpose of rule 16B; hence, same can be removed without payment of duty to job-worker, subject to permission from Commissioner
CBEC clarifies issues in respect of representation by Commissioners before HC on behalf of Govt.
EXCISE LAWS : Section 35G of the Central Excise Act, 1944 – High Court – Appeal to – Procedural Clarifications in Respect of Issues Relating to Authorization of Commissioners to Represent Union of India and Others in Matters before High Court
CBEC plans to create awareness of settlement scheme by issuing letter to taxpayers
EXCISE LAWS : Section 32 of the Central Excise Act, 1944 - Customs and Central Excise Settlement Commission – Creating Awareness of Provisions Relating to Settlement of Cases through Settlement Commission, by Informing Noticee about Said Provisions by a Follow up Letter after Issuance of Show Cause Notice
SLM method can be used to reverse credit on sale of capital goods even for period prior to February
Cenvat Credit : Straight line method prescribed vide amendment dated 27-2-2010 for computing 2.5 per cent quarterly on removal of used capital goods, may be applied even for periods prior to 27-2-2010
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