Lacquering, lamination and conversion of films into various shapes for packaging amounts to manufact

Excise & Customs : 'Lacquering and laminating' of films and converting it into several shapes/sizes for use in packaging amounts to 'manufacture' and therefore, credit may be taken and used for payment of duty thereon

No disallowance due to TDS default on reimbursement if agent had already deducted TDS while making p

IT : No disallowance can be made under section 40(a)(ia) on account of reimbursement of expenses incurred by agent on behalf of assessee for transportation when obligation to deduct tax at source was complied with by agent for and on behalf of assessee

Delay in filing appeal due to misplacement of papers in counsel's office was condonable

Service Tax/Excise/Customs : Delay in filing appeal due to misplacement of papers in counsel's office must be condoned in interests of justice, as : (a) appeal involved substantive issues, (b) delay was not mala fide and (c) delay was not inordinate but only of 92 days

'OLA' abused its dominance by providing huge discount to customers and incentives to drivers in Beng

Competition Act: Where OP running radio taxi services under brand name OLA was dominant in relevant market of radio taxi services in city of Bengaluru and was offering huge discounts to its customers and incentives to drivers at cost of bearing losses, OLA was following predatory pricing to oust other players and was abusing its dominant position in relevant market

Cost of additions or improvements on habitable house is also eligible for sec. 54F relief

IT: Where assessee while computing indexed cost of acquisition had taken value of sold asset as on 1-4-1981 at Rs. 280 per sq. ft. but as per Govt. notification value was at Rs. 45 per sq. ft., assessing authority was right in recording opinion that income chargeable to tax escaped assessment under section 147

After Delhi HC Gujarat HC also held that ITAT can extend stay beyond 365 days if delay isn’t due to

IT : ITAT may extend stay of demand beyond 365 days if delay in disposing appeal not attributable to assessee

After Delhi HC Gujarat HC also allows extension of stay by ITAT beyond 365 days as delay wasn't due

IT : ITAT may extend stay of demand beyond 365 days if delay in disposing appeal not attributable to assessee

Cash deposit couldn't be held as unexplained if such amount was surrendered during search and reflec

IT: Where Assessing Officer made addition to income of assessee on account of cash deposited by assessee in bank, fact that such amount was surrendered during search and tax had been duly paid and cash had been duly reflected in wealth tax return, no addition was called for

Arranger fee paid to bank for mobilizing deposits isn't 'FTS' and not liable to TDS

IT/ILT: Admissibility of head office expenditure of a PE is to be governed by article 7(3) of Treaty between India and UAE with effect from 1-4-2008

Exporters Warn Of Layoffs From Continuing Export Decline

The Federation of Indian Export Organisations (FIEO) has warned that the continuing decline in exports would result in layoffs besides putting pressure on the current account deficit (CAD).

The statement came a day after Reserve Bank of India Governor Raghuram Rajan's warning that the global economy is on the brink of a 1930s-type Great Depression.

"The global economy, which hitherto was in challenging phase, is entering into a dangerous stage which will have ominous implications for India and the world," FIEO president S.C. Ralhan on Saturday said in a statement here.

Ralhan said that based on the current order booking position, he is apprehensive that exports may significantly decline in volume in the months ahead, which will result in layoffs in jobs.

"It would be a big setback for the country, which has kept employment creation its top priority and is aiming to create 10 million jobs every year," he said.

"If exports continue to move in negative territory, it will sooner or later put pressure on the CAD (current account deficit) also and may derail rebuilding of the economy which the new government is keen to do as forex reserves will not provide the cushion which the exports provide," Ralhan added.

India's merchandise exports continued to decline for the second month this fiscal, this time down by over 20 percent at $22.35 billion in May from $27.99 billion in the like month of the previous year, official data showed earlier this month.

Cumulatively, for the first two months of this fiscal, exports at $44.40 billion were down 17.21 percent over that during April-May
2015.

Saying that he was in full agreement with the RBI governor, Ralhan also said that the consecutive six-month decline in exports shows that the current level of state support for exports is not sufficient.

Rajan, who had predicted the 2008 US financial collapse, has been warning that global markets are now at the risk of a crash due to the competitive loose monetary policies being adopted by developed economies.

Pointing to the very low interest rate policies of the US Federal Reserve, the Bank of Japan and the Bank of England in a bid to stimulate their economies, Rajan has been warning that emerging markets are especially vulnerable to big shifts in capital flows triggered by the unprecedented monetary accommodation in rich countries.

Source:thestatesman.com

 

Volkswagen, Ford And Nissan Car Exports From India Exceed Domestic Sales

Foreign carmakers that entered India in a bid to target domestic markets have seen increased exports, which are well over their local sales.

FY15 saw car exports from India increase substantially. Three of the manufacturers- Volkswagen, Ford and Nissan have exported more cars than they have sold in India for the period 1st April 2014 to 31st March 2015.

These new companies have set up operations in India to cater to the demands of local markets as well as that of exports. This has allowed the companies to maintain optimum capacity utilization during periods when domestic demand is lower than expectations.

German automaker, Volkswagen exports of Vento increased by 74.45% to 56,064 units as against exports of 32,447 units in FY14. VW Vento was created for the Indian market but found increased acceptance in countries like Mexico and South Africa. Nissan exported substantial volumes of both the Micra and Sunny.

Nissan produced 82,271 units of Micra out of which 76,120 were exported while 44,593 units of Sunny were produced with 38,759 units exported. Nissan exports for period FY15 stood at 65-75% of total vehicles produced in the country. Ford also increased exports from India during the same period with added demand for its compact SUV EcoSport.

While exports of foreign car makers increased substantially, exports of Hyundai and Maruti Suzuki also improved significantly with India exporting 19.3% of 3.22 million passenger vehicles produced during 2014-15. FY15 saw Hyundai retain the title of being the largest PV exporter from India, followed by Nissan and Maruti. Overall, the five major automakers – Hyundai, Maruti, Nissan, Ford and VW contributed over 93% of exports volumes during the period FY15.

Source:rushlane.com

Sugar Prices Continue Bearish Trend, Mills Hunt Export Orders

The country has received 21 per cent more rainfall than normal till now, according to the India Meteorological Department (IMD). IMD data shows the quantum of rainfall between June 1 and 22 stood at 126.1 mm, which is 21 per cent above normal from the benchmark of 103.8 mm arrived on the basis of a 50-year average.

By June 25, the southwest monsoon covered the whole of the country more than two weeks ahead of the normal schedule in a year that was forecast to see below-average rains. This is certainly bound to bring cheers to farmers of all kharif crops, including sugarcane. The rain god would certainly help sowing activities over the next few weeks. The Met department has predicted that rainfall over the country is likely to be 92 per cent of long period average (LPA) during July and 90 per cent of LPA during August. LPA is calculated on the basis of the average annual rainfall recorded between 1951 and 2000 (89 cm) during the June-September period.

India produces around 300-350 million tonne of sugarcane, 24-26 million tonne of white sugar and 6-8 million tonne of jaggery and khandsari a year. The sugar industry also produces about 2,700 million litres of alcohol, 2,300 mw power and multiple allied products. A recent Care Ratings report said India is expected to remain a major sugar producer globally and the industry is expected be a net exporter during the 2015-16 marketing year for the sixth sugar season (SS), which runs from October to September in a row.

This is notwithstanding the fact that the area under cane cultivation in India has dropped to 4.16 million hectares as of June 19 compared with 4.39 million hectares a year earlier, according to the Union agriculture ministry. According to estimates made by different sugar mills, exports reached 558,000 tonne from October to May. As farmers prepare to harvest the third-biggest crop ever, extending the country’s surplus for a sixth consecutive year, sugar exports from the country are set to double. In all likelihood, shipments will be 2 million tonne in the 12 months starting October 1, analysts say.

Indian sugar mills have already contracted exports of 50,000 tonne of white sugar to Sri Lanka, Myanmar, Afghanistan and Turkmenistan at $340-$345 a tonne. The cargoes are for July shipment. Sugar stocks are now expected to touch 10.3 million tonne as of October 1, when the new season starts, up 37 per cent from the previous year.

Sugar mills are getting increasingly interested in booking export orders. This can be attributed to falling prices in the domestic market, coupled with growing carry-forward stock. Last year, prices fell below the cost of production to a seven-year-low because of weak demand and mounting stockpiles, according to analysts and sugar industry officials.

The cabinet earlier this month approved interest-free loans of Rs 6,000 crore ($943 million) to help sugar mills clear Rs 21,000 crore dues to farmers. The government has also pledged a subsidy of Rs 4,000 per tonne for raw sugar exports as domestic rates have risen above global prices. Despite all these, sugar prices continue to fall.

Last week, sugar prices continued their bearish trend as a few producers sold the commodity at a discount on June 20 to ease stock burden amid limited demand. Mill-level prices dropped by Rs 20-40 a quintal, pulling down spot rates by Rs 20-30 a quintal. In futures trading, sugar prices fell by 0.73 per cent to Rs 2,169 per quintal in futures trading, as speculators trimmed positions, triggered by higher supplies from millers against low demand from bulk consumers.

Source:mydigitalfc.com

India Iron Ore Exports Plunged In March

According to latest trade statistics released by the Ministry of Commerce in India, the iron ore exports by the country dropped sharply during the month of March this year. Huge cuts were seen in export prices too. This is when compared with the same month a year ago.
 
The iron ore exports by India during March 2015 totaled 804,233 tonnes, sharply down by 56.7% when compared with the exports during same month in 2014. The country had exported 1.857 million tonnes of iron ore during March last year.

Also, export prices dropped by 25.8% over the year. The iron ore export prices averaged at $71.4 per tonne in Mar ’15 as against $96.20 per tonne in March 2014. The iron ore exports during the month valued at $27.22 million.
 
The largest destination of Indian iron ore export was Japan. The Japanese imports totaled 289,813 tonnes, accounting for nearly 36% of the total exports by Canada. The second largest export destination was China with 287,238 tonnes, followed by Iran with 198,159 tonnes. The other importers of iron ore from India during March this year were Oman (27,500 tonnes) and Nepal (1,523 tonnes).
 
The cumulative iron ore exports by India during the three-month period from January to March in 2015 totaled 1.672 million tonnes. The primary importer of Indian iron ore during the three-month period was China.

The imports by China totaled 718,558 tonnes, dropping sharply by nearly 80% when compared with the total imports of 3.561 million tonnes during Jan-Mar ’14. The other key export destinations were Japan (576,712 tonnes, +13.5%) and Iran (198,159 tonnes, +482.5%).
 
The export price during this period averaged at $63.0 per tonne, dropping by almost one-third when compared with $94.6 per tonne. The total value of exports touched $105.42 million.

Source:metal.com

Charges for setting up of import plant in India is post-importation activity, not includible in valu

Excise & Customs : Charges paid under technical services agreement entered into with foreign seller, not as a condition of sale, but, only to successfully set up, commission and operate plant after it has been imported into India, cannot be included in customs value, as they related to post-importation activity

General testing/inspection and repair of vehicles don't amount to 'Technical Inspection and Certific

Service Tax : General testing, pre-delivery inspection and rectification/repair of defects by a motor shop cannot amount to 'Technical Inspection and Certification Services'; for classification under said services, inspection and certification must be with respect to standards of functionality, utility, quality or safety 'laid down in some statute or some Guidelines'

No deduction of employee's contribution to PF if paid before due date of filing return but after due

IT: Belated payment of employees' contributions to provident fund cannot be allowed as deduction in terms of section 36(1)(va)

Fci Stuck With 24M Tonnes Of Poor Wheat

The Food Corporation of India (FCI) is saddled with 27 million tonnes of wheat. Since 90% of grain procured this year were under relaxed norms, these stocks have a shorter shelf life and must be used in 8 to 10 months.

FCI, sources said, is releasing these stocks to the public distribution system (PDS). This grain is shrivelled, broken and lacks lustre and the challenge is to release the grain into the market in less than a year.

Officials said PDS needs roughly 20 million tonnes and FCI has to sell the rest in the open market. But officials say they're worried over imports of wheat, which sells cheaper than the government-fixed rates of FCI wheat.

"If we allow more wheat to be imported by private players over and above what they've already lined up, there'll be fewer takers for FCI grain. This will result in huge waste and losses to the public exchequer," an official said.

The government, he said, should come out with a norm stipulating that the price of imported wheat can't be less than the price at which FCI is offering the grain in the open market.

"The government took a bold step relaxing norms to help farmers whose crops were hit in the unseasonal rain and hailstorm. There's need to protect domestic interest," said another official.

TOI has learnt that private players have concluded contracts to import about 5 lakh tonnes of wheat and so far about 67,000 tonnes have been imported. Another 50,000 tonnes are likely to reach India soon.

"Going by this trend we feel imports would be around 5 lakh tonne in this fiscal. Some import is needed to make maida and suji. The imports can be mixed with the domestic wheat which has suffered luster loss for this purpose," said a government official.

Source:timesofindia.indiatimes.com

 

Bangladeshi Importers Fear Price Hike Of Indian Onions Could Leave Market In Tears

Bangladeshi importers are fearing market instability after India declared it is hiking onion prices by $175 per tonne to $430, saying the news from across the border came when demands are high due to Ramadan.

Mangager of Ahmed Enterprise in Jessore, Tuhin Saha, told bdnews24.com, “Even when we were importing onions at $255 per tonne, the prices ranged between Tk 22-25 per kilogramme at the land port depending on quality.”

He added the hike would push up prices to Tk 30-35, which would destabilise the market further.“Currently, onion prices are already unstable and the rise could cause the market for local onions to become unstable.”

Milton Saha, an onion importer in Khulna, told bdnews24.com, “The decision by the Indian government to hike onion prices a second time will raise our import costs, which will affect the local market.Prices of onion rose at the end of last month ahead of the Ramadan.

Indian exporters are attributing the rise of onion prices declared by India’s National Agriculture Cooperative Marketing Federation on Friday to a fall in supply.

“There was a crisis for onions in India since last month. The arrival of fresh supply from southern India could not lower the prices,” Kartik Chakrabarty, general secretary of Petrapole Port Clearing and Forwarding Staff Welfare Association, told bdnews24.com.

“As a result, NAFED increased the price to decrease exports on the advice of the government to control prices in India.” He confirmed a fax instructing export of onions at the new price reached Petrapole LC Station from Kolkata on Sunday.

Source:bdnews24.com

Pibc Chairman For Importing Electricity From India

Chairman Pak-India Business Council (PIBC), Noor Muhammad Kasuri here Sunday said electricity, gas and petroleum products import from India was the best option for resolving energy crisis in Pakistan.

Elaborating, he said, Indian electricity transmission network was situated at a very short distance with Pakistan. “It is much easier for both the countries to connect electricity lines of each other as compared to any other country and same is the case for import of oil and gas,” he said talking to APP. He also stressed the need for boosting trade ties between India and Pakistan on the basis of mutual interest.

Kasuri said India produced more than 200,000MW electricity and has made power trade agreements with its neighboring countries like Sri Lanka, Nepal, Bhutan, Bangladesh. He said the same method could be adopted for making a deal between India and Pakistan. The Indian private and public sector companies ere ready to export electricity to Pakistan, he added. Kasuri said the option of LNG and petroleum products import from India must also be weighed as per merit.

Source:dailytimes.com.pk

Rupee Opens Lower At 63.84 Against Us Dollar

The Indian rupee on Monday weakened against the dollar, tracking losses in Asian currencies. The local unit opened at 63.84 per dollar, down 0.31% from previous close of 63.64. The Sensex index lost 1.30% or 360.77 points to 27,451.07 points in pre-opening trade.

Uncertainty led to a weak rupee as Greece stunned creditors by calling a public vote on austerity, and the European Central Bank (ECB) startled Athens by freezing aid to Greek lenders.

 

Most of the Asian currencies were trading lower. South Korean won was trading down 0.564%, Malaysian ringgit was down 0.402%, Indonesian rupiah 0.262%, Philippine peso 0.239%, Thai baht 0.224%, Singapore dollar 0.155%, Taiwan dollar 0.136% and Hong Kong dollar 0.001%.

 

The yield on India’s 10-year benchmark bond was trading at 7.85% compared with its Friday’s close of 7.81%. Bond yields and prices move in opposite directions.

 

Since the beginning of this year, the rupee has lost 1.32%, while foreign institutional investors have bought $12.82 billion from local equity and bond markets.

 

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.141, up 0.70% from the previous close of 95.47.

 

Source:livemint.com

'Keo Karpin Baby Oil' is taxable as medicine and not as cosmetics under Rajasthan Sales Tax Act

CST & VAT : Rajasthan VAT - Keo Karpin Baby Oil is taxable as medicine under Sales Tax Act and not as a cosmetics

No sec. 68 additions without making detailed scrutiny of creditors

IT: Where assessee derived income from transportation work, keeping in view assessee's turnover and nature of business, assessee's business income was to be estimated at 5 per cent