Bought out items cleared along with finished goods for being used outside factory are ineligible for

Cenvat Credit : Where assessee, a manufacturer of tower parts, had cleared bought out items like Nuts, Bolts and Washer along with tower parts for erection of towers 'at site' outside factory, said bought out items could not be regarded as inputs and were, therefore, ineligible for credit

Just because assessee was employee of landlord couldn't mean that he was deriving perquisite u/s 17(

IT: Where assessee took accommodation on rent belonged to his employer and paid rent thereon, merely because assessee was employee of his landlord, no perquisite could be added in income of assessee

Assessee can't opt out of compounded levy scheme in middle of year

CST & VAT: Kerala VAT - Where for assessment year 2010-11 assessee opted for payment of tax at compounded rate under section 7(1) and it had paid tax upto August, 2010 at compounded rate and thereafter it sought for withdrawal of permission to pay tax at compounded rate, it was not open to assessee to turn around and extricate itself from liability to pay tax at compounded rate

Order signed by two out of five members of CCI after one month of hearing wasn't valid-COMPAT

Competition Act : Where two of five members who signed impugned order had joined Commission after more than 1-1/2 months of date of hearing, such members had mechanically signed order and order was vitiated due to flagrant violation of basis of natural justice

Advance received by contractor in excess of bill raised by him couldn't be taxed on receipt basis

IT: Where actual work carried out by sub-contractor during relevant year was to extent of bill raised, Assessing Officer was not justified in making prima facie adjustment of excess payment made by contractor under section 143(1)(a)

Now AD- banks needn't require case-by-case approval of RBI for borrowing overseas funds

FEMA/ILT : Overseas Foreign Currency Borrowings by Authorised Dealer Banks

Now Non-Deposit taking NBFCs can act as sub-agents under Money Transfer Service Scheme without RBI's

NBFCs : Appointment of Non-Deposit Accepting NBFCs with Asset Size of Rs.100 Crore and above as Sub-Agents under Money Transfer Service Scheme (MTSS)

SEBI adopts e-route for service of notice; allows service via email and fax by adjudicating officer

SEBI/INDIAN ACTS & RULES : SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Amendment Rules, 2015 – Amendment in Rule 7

Mumbai ITAT interprets Article 5 of India-Singapore DTAA to decide constitution of installation PE i

IT/ILT: The assessee, a tax resident of Singapore, had undertaken installation and construction activity in respect of certain projects. The DRP held that the presence of assessee in India in excess of 90 days constituted PE in India under Article 5(6) of India-Singapore DTAA. The ld. Counsel of assessee argued that threshold limit of 183 days was applicable as activities of assessee would fall within Article 5(3).ITAT held that as activities related to construction or installation are specifica

TNMM to get priority over CUP method if price of product varies due to volume of transaction and geo

IT/ILT: Where prices varies on account of various issues, i.e., timing of transaction, volume of order and geographical location, then CUP method cannot be applied and it is most appropriate to apply TNMM method

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:news.sudanvisiondaily.com

Hyundai India Reworks Export Basket With Fresh Models

Hyundai Motor India, the country's largest passenger vehicle exporter, is reorganising its export basket with new products. The company says the drive is aimed at maintaining its leadership in exports.

"There is a shift taking place in our portfolio. We are still exporting older models like the Eon, i10 and Accent. But the major thrust is to find opportunities for new models like the Grandi10, Xcent and Elitei20. Our sports utility vehicle, Creta, due for launch this month, will also be exported," said Rakesh Srivastava, senior vice-president and division head (sales and marketing). Hyundai has retained its position of being India's largest passenger car exporter for a decade. It had close to one-third of the market share in the year ended March. The Indian subsidiary of the South Korean car manufacturer exports cars from India to 85 countries.

"The Grand i10, Eon, i10, Xcent and Verna are in demand in South Africa, Vietnam, Australia, Mexico, Colombia... We will keep penetrating the existing markets and expand in newer markets," Srivastava said.

Hyundai is facing capacity constraints and a high utilisation of over 98 per cent. With the growing local demand, it has scaled down exports. In 2014-15, its exports declined by 18 per cent, according to the Society of Indian Automobile Manufacturers, while local sales climbed over 10 per cent. In April-May, exports declined eight per cent, while local sales grew over six per cent. "We are continuously increasing our focus on the domestic market. We are balancing our export production as well to meet demand," Srivastava said.

Maruti Suzuki, Hyundai's closest competitor in the domestic and export markets, scaled up exports by 20 per cent last year, while local sales rose 11 per cent. The trend continued this year. In April-May, Maruti exported 34 per cent more vehicles and local sales grew over 19 per cent.

In the export market, the gap between the two is narrowing. Last year, Hyundai's export volume was 57 per cent more than Maruti's. This narrowed to 19 per cent in April-May. An analyst said Hyundai would have to look at more capacity to sustain its pace of growth in the domestic market and maintain its leadership in exports.

Source:business-standard.com

Sugar Export From India Seen Doubling As Bumper Harvest Looms

Sugar exports from India may double as farmers prepare to harvest the third-biggest crop ever, extending the country’s surplus for a sixth year.

Shipments will be 2 million metric tons in the 12 months starting 1 October , according to the median of six estimates from refiners, brokers and analysts compiled by Bloomberg. That compares with 700,000 tons to 800,000 tons this year, the Indian Sugar Mills Association says. Production will be 27.25 million tons from a record 28.4 million tons this year, estimates from eight survey participants show.

The glut in the world’s second-largest producer threatens to extend a 35% slump in New York futures in the past year. The decline in prices to the lowest since 2009 has forced the government to subsidize exports and waive interest on bank loans to processors. Stockpiles of 10 million tons will add to supplies and exceed demand of 25.5 million tons, the mills say. That will force producers to ship as much as possible.

“With high carryover stockpiles, you will again have a glut of 10 million tons next year and you will have to throw out the excess,” Rahil Shaikh, director at ED&F Man Commodities India Pvt., said in Pune on 19 June. “If the industry has to survive, they have to export.”

Prices have fallen below the cost of production to a seven- year low because of weak demand and mounting stockpiles, according to the mills. The cabinet approved interest-free loans of Rs6,000 crore ($943 million) this month to help mills clear Rs21,000 crore owed to farmers. The government has pledged a subsidy of Rs4,000 a ton for raw sugar exports as domestic rates are above global prices.

“Looking at the surplus stock in the world and lower prices prevailing in the international market, exports are not feasible” now, said Pallavi Munankar, analyst at Geofin Comtrade. “This leaves the industry with no other alternative but to continue to hold huge stocks and incur losses.”

Prices on the ICE Futures US fell to 11.52 cents a pound on 19 June, the lowest level since January 2009. The contract for October delivery traded at 12.02 cents on Wednesday. Prices in Mumbai were at Rs2,230 per 100 kilograms (220 pounds).

The area under cane in India dropped to 4.16 million hectares as of 19 June, compared with 4.39 million hectares a year earlier, the agriculture ministry said last week. Exports reached 558,000 tons from October to May, the mills estimate.

Source:livemint.com

Government Mulls Steps As Veg Oils Import Grows By Leaps And Bounds

The government is planning measures to increase domestic vegetable oils production, while also seeking suggestions from stakeholders following a 26 per cent surge in vegetable oil imports in six months to May.

India imported 78 lakh ton of vegetable oil between November and May, compared with 62 lakh tons in the year earlier period.  “Total import of vegetable oils could value Rs 60,000 crore this year,” said B V Mehta, executive director at Solvent Extractors Association of India.  This is the third largest after crude oil and lubricants, and gold.

“The government is concerned at the huge import, especially when we can take to increase local output and reduce imports,’’ Mehta said adding, “Domestic output has almost been stagnant for years while imports are rising.’’

Among factors he cited include drop in crude oil prices globally, which reduces the attractiveness to use bio-diesel as a substitute. Then, there is a lack of incentive for local farmers since oil crushing companies find cheaper imports economical instead of the local produce. Indonesia, as a case, has been dumping its vegetable oils to overcome surplus. The government is yet to react with any increase in import duties.

Over the years, domestic consumption of edible oil has increased with rise in per capita income, greater propensity to eat outside food that invariably contains more oil, and greater affordability. Since 1992-93, import has increased from 3 per cent to more than 55 per cent now.

Among measures the government is considering include expanding areas for cultivation, including the north-eastern states under its Mini Mission-II. States such as Punjab and Haryana could substitute wheat and rice with rapeseed, mustard and maize.

Changed crops would require less water, and help farmers switch from wheat and rice that the nation has in surplus to items that are being imported. The switch-over could help reduce imports for vegetable oils.

The government should consider raising import duties on refined oils to 25 per cent from 15 per cent, SEA has recommended to the government, among others.

Since India’s productivity is between 47 per cent and 69 per cent of global average for soybean, cotton, groundnut, sunflower and mustard, the country could introduce GM crop seeds and also rope in private companies for greater investment, it has recommended.

As the second largest producer of paddy, India could double its rice bran oil output from the current 9 lakh tons through policy and tax reforms, it said.

Source:newindianexpress.com

India's Oil Import Bill To Fall 21.7% To $88 Bn In Fy16

India's crude oil import bill is likely to fall by 21.7 perceny this fiscal to USD 88 billion on falling international oil prices, according to latest Petroleum Ministry estimates.

India, which is 80 perceny import dependent to meet its oil needs, spent USD 112.748 billion in 2014-15 on import of 189.43 million tonnes of crude oil. In rupee terms, it came to Rs 687,369 crore.

For the current fiscal, the ministry's Petroleum Planning and Analysis Cell (PPAC) has estimated USD 88.203 billion spending on import of 188.23 million tonnes of crude oil. In rupee terms, it comes to Rs 548,655 crore. India had paid a record USD 144.293 billion on import of 184.79 million tonnes of crude oil in 2012-13.

The import bill came down marginally to USD 142.962 billion in the following year even though the volume of oil imported went up to 189.238 million tonnes, but the slide in international oil prices from USD 115 per barrel to less than USD 50, helped bring it down to USD 112.748 billion in 2014-15, according to PPAC data.

India's crude oil import bill in 1998-99 was USD 3.518 billion on import of 39.8 million tonnes of crude oil and climbed to USD 9.2 billion in the following year on import of 57.8 million tonnes of crude oil.

It stayed below USD 20 billion for next five years. It started to climb from 2004-05 and saw the real jump happening in 2010-11 when it soared to USD 100.08 billion on import of 163.5 million tonnes of crude oil from USD 79.876 billion in 2009-10. In the first two months of current fiscal, India imported 32.99 million tonnes of crude oil for USD 13.806 billion.

PPAC said while the April-May 2015 imports are based on actuals and for June 2015 to March 2016, the imports are estimated at USD 65 per barrel and foreign currency exchange rate of Rs 62 to a US dollar.

"If crude prices increases by USD one per barrel, net import bill increases by Rs 7,096 crore (USD 1.14 billion). And if exchange rate increases by Rs 1 to a USD, net import bill increases by Rs 7,440 crore (USD 1.18 billion)," it said.

Source:moneycontrol.com

Rupee Trades Marginally Higher Against Us Dollar At 63.56

The Indian rupee on Thursday strengthened marginally against the US dollar, tracking the gains in the local equity markets.

At 2.35pm, the home currency was trading at 63.56, up 0.07% from its previous close of 63.60. The local unit opened at 63.61 per dollar and touched a high and a low of 63.55 and 63.63, respectively in intra-day trade. The Sensex was trading at 27,889.76, up 0.58%, or 160.09 points.

 

Investors were cautious after Greece said international lenders had rejected its latest proposals. The European nation’s prime minister will resume talks with creditors early on Thursday after a meeting of euro-area finance ministers in Brussels was adjourned without an agreement on bailout aid.

 

Overnight, US gross domestic product (GDP) data showed that the final figure for the first quarter was a 0.2% contraction, much smaller than the previously estimated 0.7%. That reinforced expectations that the US Federal Reserve is on track to raise interest rates this year, perhaps as early as September, Reuters reported.

 

The yield on India’s 10-year benchmark bond was trading at 7.818% compared with its Wednesday’s close of 7.799%. Bond yields and prices move in opposite directions.

 

Since the beginning of this year, the rupee has lost 0.87%, while foreign institutional investors have bought $6.31 billion from local equity

markets and $6.44 billion from bond markets.

 

Most of the Asian currencies were trading lower. Indonesian rupiah was down 0.2%, Malaysian ringgit 0.17%, South Korean won 0.15%, Taiwan dollar 0.1%, while the China Offshore declined 0.09%. However, Japanese yen was up 0.15%.

 

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.343, up 0.16% from its previous close of 95.264.

 

Source:livemint.com

Benefit of export without payment of duty is available even when export proceeds aren't realized

Excise & Customs : In absence of any condition in rule 19 or notification issued thereunder as to realization of export proceeds, benefit of export without payment of duty cannot be denied even if export proceeds are not realized

No sec. 69 additions on basis of seized doc showing transaction in name of firm after its dissolutio

IT : Where assessee firm had been dissolved with effect from 31-3-2002, alleged unexplained income from transaction found recorded in assessee's name in month of December, 2003 in a document recovered from third party could not be taxable in hands of assessee in current year

Third member has to return reference to Division Bench where facts aren't settled

Excise & Customs : Where material facts and evidence are not recorded by Division Bench, Third Member must return reference to Division Bench to settle facts; this is so because, in a reference, Third Member neither has revisional jurisdiction nor appellate jurisdiction to hear appeal to settle facts