IT: Where as per proviso to Explanation (1) to section 153, after excluding period of stay, period available with Assessing Officer for making assessment was less than 60 days, assessment order passed beyond 60 days was barred by limitation
Monday 6 July 2015
If proprietor isn't an architect then its proprietary firm isn't liable to service tax
Service Tax : Proprietary firm and proprietor are one and same person; hence, if proprietor is not an architect, his proprietary firm cannot be considered to be an architect and therefore, no service tax can be demanded
No sec. 68 additions on failure of assessee to furnish PAN of creditors if their creditworthiness wa
IT : Where assessee duly submitted all details of creditors from whom it had obtained unsecured loans and evidence produced by assessee proved creditworthiness and genuineness of transactions, no addition under section 68 could be made
Refund of undepreciated duty on fixed assets isn't hit by doctrine of unjust enrichment
Service Tax/Excise/Customs : Refund of undepreciated amount of duty on fixed assets, which is neither booked as expenditure nor has been passed on otherwise to any other person, cannot be hit by unjust enrichment; hence, refund thereof may be claimed subject to corresponding deduction from cost of fixed assets
AO couldn't deny balance of additional depreciation in next year after allowing half of it in prior
IT : Where Assessing Officer allowed additional depreciation in immediate preceding assessment year, denial of remaining 50 per cent of additional depreciation in current year holding that business of generation and distribution of power was not eligible for additional depreciation was unjustified
Payment of duty on non-excisable goods amounts to reversal of credit on inputs which are used in suc
Cenvat Credit : If assessee has paid duty on non-manufactured goods, said payment on non-dutiable goods would amount to reversal of credit of inputs, etc. removed 'as such'; hence, department cannot again seek denial/reversal of credit
Cancellation of flat allotment on non-payment of additional price didn't amount to abuse of dominanc
Competition Act: Where complainant filed complaint against respondent builder for indulging in unfair trade practice and sought for possession of flat allotted to him by respondent, there was no unfair trade practice and Tribunal could not issue direction to respondent to deliver possession because that would tentamount to specific performance of agreement
AO couldn't tax that income of builder which didn't accrue to it due to cancellation of sale agreeme
IT: Subsequent to cancellation of agreement of sale of land, assessee filed its revised return declaring nil income, since income had not accrued to assessee in real sense, no hypothetical income of assessee could be brought to tax
No penalty on non-disclosure of telephone/medical reimbursement in return as they can't be treated a
IT: Hospitality and telephone allowances to assessee being in nature of reimbursement cannot be treated as income in hands of assessee and, consequently, non-inclusion of same in assessee's return of income could not be treated as concealment of income and penalty was not called for
India Coal Imports Flat In June As Local Supply Jumps – Trade
India’s coal imports in June were largely flat at 20.18 million tonnes from a year ago, provisional data from commodities trader mjunction showed, as state behemoth Coal India ramped up supplies under a sustained government push.
Reviving output from India’s nationalised coal industry has been one of Prime Minister Narendra Modi’s achievements, one he hopes will secure uninterrupted power to all and eat into an annual coal import bill of about $15 billion.
“With the increase in domestic production, there was always a likelihood of imports falling,” Coal Secretary Anil Swarup told Reuters. “As production grows further, imports will go down gradually.”
Coal India’s April-June output rose 12 percent to 121.3 million tonnes as it opened new mines and received environmental approvals to expand existing ones. The government wants to double its output to 1 billion tonnes by 2019/20, and stop imports of power-generating coal by then.
“There is ample availability of domestic coal due to higher production by Coal India and demand for coal from power plants appears to be on the lower side due to comparatively low demand for electricity from distribution companies,” said mjunction Chief Executive and Managing Director Viresh Oberoi.
Government data on coal imports into India, the third largest buyer in the world, generally lags and varies from data from private firms such as mjunction, which collects information from more ports and includes additional coal grades.
Source:- hellenicshippingnews.com
Export-Spec 2016 Ford Ecosport Facelift Spied Testing In India
Soon after bookings for updated EcoSport commenced in Europe, spyshots of the car testing in India have emerged. First consignment is expected to leave from India shortly.
2016 Ford EcoSport facelift for Europe incorporates quite a few enhancements based on feedback received from the developed international markets. The car spied is an export-spec model so it’s difficult to deduce how many of the changes will filter into India-spec facelift.
While most Indian customers love the crossover’s tailgate-mounted spare wheel for it renders a tough character, a good number of Europeans wanted Ford to do away with it. So, with the facelift, the company will offer an option of having a different tailgate minus spare wheel in Europe.
The new tailgate in question has its license plate enclosure relocated to where the spare wheel used to be. It remains to be seen whether Ford India will also offer a similar option to the model sold in the domestic market or not. Another change which is unlikely to be offered here will be the tweaked suspension system which has resulted in reduction of ground clearance by 10 mm.
It remains to be seen if the option of spare wheel-less tailgate will be offered in India or not.
Inside, 2016 EcoSport gets a revised steering wheel, Winter Pack (heater windshield, steering wheel and seats) and part leather upholstery.
All the engines are now upgraded to Euro6 emission norms. The 1.5-litre diesel motor gets a marginal hike in power of 5 PS while the 1.0-litre EcoBoost turbo petrol and 1.5-litre Ti-VCT naturally aspirated petrol motor continue with any changes in outputs.
Since Hyundai Creta and Maruti S-Cross are at the verge of launching in India, Ford needs to launch 2016 EcoSport facelift in the country in the festive season to stay in contention. More power to the diesel engine is imperative since its rivals have clear advantage in that department.
Source:– AutocarIndia.com
Govt Takes Steps To Boost Pharma Exports
In a bid to boost pharmaceutical exports, the government is considering various steps including setting up of inter-departmental committee to look into export-related issues besides developing awareness programmes that are suitable for emerging markets like Africa.
The sector has huge potential in terms of increasing exports, the Commerce Ministry is taking many measures to boost overseas shipments, a ministry official said. The ministry has prepared a 'guidance document on pharma procurement' to help authorities in Africa, Latin America and South Asia in their purchasing programmes.
Awareness programmes about Indian pharma industry have also been started in these markets and workshops are being organised with USFDA for Indian drug regulators and the industry. In recent times, the Indian pharma industry is facing heat from USFDA for non-compliance and many domestic drug makers including Sun Pharma and Wockhardt have faced the action.
India's pharma exports grew by about 3 per cent to $15.34 billion in 2014-15. According to a foreign trade policy statement, the pharmaceutical sector is beset with several challenges. Most of these arise out of the enviable reputation of India as a reliable supplier of generic medicines.
The challenges include maligning campaigns such as violation of India's IPR commitments; allegations of noncompliance of quality standards; and India's pricing policies forcing Indian exporters to price their products with extremely low margins.
To ensure traceability and tracking of the drugs manufactured in India, bar-coding for all exports except primary level packaging have been made compulsory from July 1. Pharma exports account for 10 per cent of the global market by volume and 1.4 per cent by value. The industry is expected to expand at a compound annual growth rate (CAGR) of 14.5 per cent over 2009-2020 to reach $55 billion.
Source:- thehansindia.com
Marine Exports Grow By 17.55%, Touch 1,363Cr
The coastal city has shown robust performance in the export of marine products in 2014-15. Mangaluru has registered a growth of 17.55% in terms of quantity. The value of the catch exported is at Rs 1,363 crore.
According to Marine Products Export Development Authority (MPEDA), 1,15,470 tonnes of fish products were exported from Mangaluru port. In the previous year, the export stood at 98,230 tonnes. The difference in value over the previous year is Rs 249 crore.
Frozen shrimp remained the primary export item, accounting for a share of 34.01 % in quantity and 67.19% of the total US$ earnings.
Meanwhile, Karwar recorded nil exports from its port. Bengaluru exported 810 tonnes of fish valued at Rs 10.12 crore, almost twice of what it exported last year, which was 388 tonnes. The growth was 108% over the previous year. In US$ terms, the export value was $1.67 million.
Meanwhile, the export of marine products from India reached an all-time high of $5511.12 million during the financial year 2014-15. Exports aggregated to 10,51,243 tonnes valued at Rs 33,441.61 crore and US$5511.12 million. Compared to the previous year, seafood exports recorded a growth of 6.86% in quantity, 10.69% in rupee and 10.05 % growth in US$ earnings.
MPEDA said that the depreciation of rupee and euro, the weaker economic condition in China, the devaluation of yen, improvement in supply conditions in South East Asian (SEA) countries in comparison to previous year has resulted in continuous drop in prices of the shrimp, a principle commodity of Indian seafood export basket.
Overall, shrimp export in 2014-15 touched 3,57,505 MT worth US$ 3,709.76 million. The contribution of cultured shrimp to total shrimp export is 76.45% in terms of US$. The export of cultured shrimp has shown positive growth of 21.66% in quantity and 15.53% in US$.
Fish, the second largest export item, accounted for a share of about 29.44% in quantity and 11.24% in US$ earnings. Frozen fish showed a negative growth of 4.60%, 12.02% and 12.55% in terms of quantity, rupee value and US$.
Source:- timesofindia.indiatimes.com
Rupee Still Down By 17 Paise At 63.61 Against Us Dollar
The rupee turned weak after last week's four-day gain, still down by 17 paise at 63.61 against the US currency in late morning trade on fresh dollar demand from banks and importers amid higher dollar overseas.
The rupee resumed sharply lower at 63.62 per dollar as against last weekend's level of 63.44 at the Interbank Foreign Exchange market. It moved in a range of 63.65 and 63.56 per dollar during the morning deals before quoting at 63.61 at 1040 hrs.
The domestic currency had gained around 40 paise during the last four sessions to end at two-month high of 63.44 against the greenback last Friday.
Oil fell in Asia early on Monday as investors digested the implications of Greece rejecting tough austerity demands from creditors which could send the debt-strapped nation crashing out of the Eurozone, analysts said.
The Euro fell on Monday in early Asian trade, while the safe-haven yen rallied after Greeks voted to reject terms of a rescue package, deepening the country's financial crisis that could splinter Europe if creditors refuse further aid.
Meanwhile, the benchmark 30-share index Sensex was trading down by 216.17 points or 0.77 percent to 27,876.62 at 1045 hrs.
9:30 am: The Indian rupee slipped in the early trade on Monday. It has opened lower by 18 paise at 63.62 per dollar against Friday's closing value of 63.44 a dollar.
The euro fell around 1 percent amid fears of a Grexit - dollar index at around the 96 levels.
"The Greece 'No' vote will keep the risk appetite low for some time and market players will look to cut down risk positions. The USD-INR is expected to trade in a range of 63.50-63.80/dollar today", said Agam Gupta of Standard Chartered on Monday.
Source:- ibnlive.com
Services availed by Commercial Coaching Institutes to arrange accommodation for its faculty is eligi
Cenvat Credit : Commercial training and coaching institutions may take credit of input services by way of brokerage expenses for finding accommodation for faculty, as their output services cannot be provided without faculty being available
Companies having related party transactions in excess of 15% can't be selected as comparable for TP
IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering research and development services to its AE, in view of fact that two comparables selected by TPO were functionally not comparable as R&D service providers whereas another comparable was found inappropriate as it had related party transactions in excess of 15 per cent, impugned addition was to be set aside
Indian Oil Gives Lng Storage Tank Contract To Japan's Mhi
Indian Oil Corporation, the country's largest fuel retailer, has awarded a contract to build two football stadium-sized LNG (liquefied natural gas) storage tanks at its upcoming Ennore LNG import terminal in Tamil Nadu to Japanese firm Mitsubishi Heavy Industries Ltd (MHI).
"The LNG tanks will be the main facility at the first LNG receiving terminal to be constructed on India's East Coast," Mitsubishi Heavy Industries said in a statement.
This is also the first LNG storage tank order that MHI has received from India.
"Construction of the tanks is slated to begin in July of this year; completion is scheduled for the spring of 2018," MHI said.
The high-capacity LNG storage tanks will have a capacity to hold 180,000 cubic meters of gas each and will be installed at a liquefied natural gas (LNG) terminal that IOC will build near Ennore port, about 25 kilometers north of Chennai on the Bay of Bengal.
LNG imported to the terminal will be supplied as feedstock to fertiliser plants, and to utility company power generation plants for use as an alternative fuel.
Plans also call for the use of LNG as city gas in urban areas in the future.
"The terminal will initially have the capacity to handle five million metric tonnes per annum (MMTPA), expanding to 15 MMTPA in the future," the statement said.
IOC plans to build a terminal to import gas turned into liquid at minus 160 degrees Celcius (LNG) in ships at Ennore at a cost of Rs 5,150 crore by 2019.
TIDCO, a Tamil Nadu government enterprise, has a 5 per cent stake while IOC has 45 per cent in the project.
The balance 50 per cent will be for a strategic partner like an LNG supplier. Till such a strategic partner is roped in, ICICI and IDFC have agreed to hold 50 per cent interest.
Ennore will be the third LNG terminal on the east coast with state-owned GAIL India Ltd building a facility at Kakinada in Andhra Pradesh and Petronet LNG Ltd proposing a 5 million tonnes facility at Gangavaram in Andhra Pradesh.
India currently has four LNG import terminals, all on the west coast - Dahej and Hazira in Gujarat, Dabhol in Maharashtra and Kochi in Kerala.
LNG is a gas that is cooled down to liquid form and takes up just 1/600th of the volume in its gaseous state, thereby easing transportation by sea.
"MHI has abundant expertise in the design and construction of LNG receiving terminals, storage tanks and carriers," the statement said.
As of 2:39 p.m., shares in Indian Oil were trading 1.9 per cent higher at Rs 424.40 apiece on the BSE.
Source:- profit.ndtv.com
Air travel agents availing composition scheme aren't required to pay service tax on 'fuel surcharge'
Service Tax : As per Explanation to rule 6(7), 'basic fare' does not mean 'gross fare including fuel surcharge'; it means 'that part of airfare on which commission is normally paid by airline'; hence, air travel agents availing composition scheme, have to pay service tax only on that part of airfare on which commission is paid to them
Hedging of shares against price fluctuations isn't speculative business
IT-I : Assessee was entitled to set off hedging loss of brief period as business loss when it was denied windfall profit on ultimate sale of shares at a greater value
ITAT directs AO to re-work depreciation on second hand windmill as determination of its actual cost
IT : Question of determination of 'actual cost' would arise only in year of purchase or in year in which depreciation was claimed for first time
Issue of determining relevant date to claim refund in case of service exports was referred to Larger
Cenvat Credit : Issue 'whether relevant date under Cenvat rule 5 would be : (a) date of export of service; or (b) date of export invoice; or (c) date of receipt of foreign exchange; or (d) date when both services have been exported and consideration received (whichever is later)' stands referred to Larger Bench of Tribunal
Second reassessment notice quashed as issue raised therein could have been noticed in first proceedi
IT : Where material or explanation in respect of issues sought to be raised in second reassessment notice were part of record and could have been noticed in first reassessment proceedings, second reassessment was not valid
CBDT releases 32 clarifications on compliance window in Q&A format
IT/ILT : Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 – Clarifications on Tax Compliance for Undisclosed Foreign Income and Assets
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