NBFCs : Returns to Be Submitted by NBFCs (Asset Size below Rs.500 Crore)
Thursday 9 July 2015
Expenses incurred in India to convert imported know-how into manufacturing activity weren't liable t
Service Tax : Where assessee incurred development expenses in India for converting imported know-how into manufacturing facility, since said expenses were not paid to foreign entity, no service was rendered to assessee and, therefore, no service tax can be demanded
AO's order allowing sec. 80-IA relief on capital receipt wasn't prejudicial to revenue; not liable t
IT : Since allowance of receipts on sale of carbon credit, being a capital receipt which was erroneously allowed for deduction under section 80-IA, did not prejudice interest of revenue, order of Commissioner passed under section 263 was to be quashed
High Court admits winding up plea against Govt. Co. on its failure to pay bills for work done by pet
CL : Where payment of bills for work done was due and payable to petitioner company by respondent Government company, winding up petition for inability to pay debts due to petitioner was to be admitted
Disclosure of more quantity of goods in declaration form than shown in return would invite reassessm
CST & VAT : Assam VAT : Where Assessing Authority passed a reassessment order on assessee, since declaration Form 65A furnished by assessee at check-post disclosed that quantity and value of goods were more than what were furnished in return for relevant assessment year, it was to be held that reassessment order was based on valid material which was found subsequent to assessment
DIT(E) couldn't revoke registration of Cricket Association after Holding that it was doing general p
IT : Where Director (Exemption) had accepted in his order that assessee was carrying on an activity of 'general public utility' in accordance with its objects, order passed under section 12AA(3) cancelling registration was bad in law
GDRs are 'securities'; SEBI has jurisdiction to act against Lead Manager of GDRs issued outside Indi
CL : GDRs would fall within the definition of `securities' as defined under Section 2(h) of the Securities Contracts (Regulation) Act,1956. Though GDRs are issued outside India, such issue is based on the ordinary shares deposited with the domestic custodian bank. Therefore, SEBI has the jurisdiction to act against the Lead Managers of GDR issue and to debar them. SEBI's jurisdiction cannot be denied on the ground that GDRs are issued outside India
CBDT upset with frivolous filing of appeals by officials; reiterates its stance of filing appeals in
IT : Filing of appeals on merits – Observation of courts – Instructions to it department to ensure optimal utilisation of available resources to obtain maximum benefit out of litigation
Mistake of applying concessional tax rate on long-term cap gain in revised return doesn't call for p
IT : Where there was no attempt on part of assessee to show long term capital gain in a different category, merely because a concessional rate of tax was applied in revised return, it would not lead to conclusion that assessee had concealed particulars of income and no penalty could be levied
TDS obligation arises while making provision at the time of quarterly closure and not when actual ex
IT: Statutory provisions of withholding tax clearly envisage deduction of tax at source de hors charge under section 4(1), hence assessee would be liable to deduct tax on provision for expenses created in books of account
India's Push To Curb Steel Imports Could Hit Its Small Mills
Steps by India to protect its large steel makers from a flood of cheap imports could end up closing scores of small, local firms that process the metal, industry analysts and executives said.
These processors currently buy imported steel at up to 20 percent below India's pricier, domestic steel, turning it into finished steel products for industrial use.
But after months of lobbying by its largest steelmakers such as JSW Steel Ltd and Tata Steel Ltd, India last month raised duties on some steel imports by up to 2.5 percentage points, with more increases expected.
India's steel imports had jumped around 70 percent to over 9 million tonnes in the year to end-March, with a surge of cheaper purchases from China accounting for about a third of the total. Imports soared 55 percent in April-May. The duty hike, along with proposed steps to tighten quality controls on steel imports, should curb shipments into the country this year, industry experts said.
While that should help large steelmakers, it will pile more pressure on small steel processors, already grappling with faltering demand as the real estate sector slows. Often family-run, these firms account for almost 60 percent of the India's overall steel sector, according to one industry body.
"If imports get reduced, the integrated steel mills will start charging higher prices, irrespective of international price trends ... secondary steel producers will not be able to survive," said Mohan Gurnani, President of the Federation of Associations of Maharashtra, which represents over 750 small associations and traders.
Steel ministry officials did not immediately respond to requests for comment.
EARNINGS BOOST?
Morgan Stanley estimates that the 2.5-percentage point duty hike could potentially boost Tata Steel earnings per share by 14 percent next year, Steel Authority of India's (SAIL) by 33 percent and JSW Steel by 30 percent.
"Import orders should reduce meaningfully from here as traders will become apprehensive of further increases in duties in some shape or the other," the bank said in a note.
India's largest steelmakers have been badly hit by high debt, interest costs and low appetite. But demand prospects are improving as the country starts a major urbanisation drive under Prime Minister Narendra Modi.
Indian steel consumption rose 7 percent in April-May percent, after growth of 3 percent in the fiscal year that ended in March.
The World Steel Association (Worldsteel) expects Modi's plans, including building 100 new 'smart' cities, to spur steel demand by up to around 6 percent this year..
Most analysts now expect Indian steel prices to remain steady, or rise slightly especially if the rupee weakens further, making steel imports more costly.
Source:- economictimes.indiatimes.com
Imported Cosmetics May Be Fewer With Stringent Control On Animal Testing
You may soon find it difficult to lay your hands on imported cosmetics. Tightening regulatory controls on such brands, the government has asked importers to give an undertaking that their products sold in India have not been tested on animals anywhere in the world.
Last year, India banned testing of cosmetic products and their ingredients on animals in India. However, companies were still found importing products, which had been tested on animals abroad.
The latest move seeking no objection from the supplying country and an undertaking from the original manufacturer of such imported products is to ensure that these products are not tested on animals at all, said an official with the office of the Drugs Controller General of India (DCGI).
DCGI, which regulates pharmaceuticals as well as cosmetics sold in the country, has recently directed all port officers, beauty and hygiene associations as well as state controllers to keep a close check on such products and ensure that importers submit original undertaking from the manufacturer.
Companies flouting the norms are likely to face hefty penalty and punishment, including cancellation of licences for a period of 3-10 years.
In fact, the new rule is applicable even for already registered products. However, in such cases, the undertaking has to say that cosmetics products imported to India "have not been tested on animals on and after 12 November 2014", a recent communication from the DCGI office said.
New applicants for importing cosmetic products to India will also have to submit import registration dossiers to the regulatory agency. "The acknowledgement copies can be produced at the port offices for clearing their consignments," the circular from DCGI office said.
Of late, the penetration of imported brands in the cosmetic segment has increased significantly with many of them commanding huge market share in their categories. While most of these brands are placed in the premium category, many are also available for regular users at reasonable prices.
Source:- timesofindia.indiatimes.com
Indian Onion Loses Second Rank In Global Exports
Onions from India have gained fame worldwide for their pungency and good quality. In the last five years, however, erratic weather and shifting policies on export have left the country behind others. Countries such as China and Pakistan are fast catching up with India both in terms of quality and increase in cultivation.
India ranked second among the top 10 onion exporting countries for several years. However, this position has taken a hit. According to officials from APMC, Nashik, India now ranks fourth in onion export in the world. Earlier China ranked first followed by India. Now China ranks first and countries such as the Netherlands, Mexico, Spain and Pakistan have joined the race.
Moreover, region that India has been traditionally exporting to such as Southeast Asia has also begun to grow onion in addition to exporting the vegetable.
According to sources from National Horticultural Research and Development Foundation (NHRDF), India had topped in export in 2009-10 with 18 lakh tonne. Average export also hovered around 14 lakh tonne. However, in the last five years, onion export from the country has taken a downward turn. In 2014-15, only 10.86 lakh tonne of onions have been exported. The decline has been as much as 20% compared to the previous year.
According to RP Gupta, director, NHRDF, erratic monsoon and uncertainty in supply has resulted in exporters not being able to fulfill their export commitment. “Policies have been such that there is no certainty over export. For two years there has been a ban on onion export and sometimes the MEP is raised. Therefore buyers have begun tapping other sources,” Gupta explained.
One major effect, according to Gupta, is neighboring countries such as China and Pakistan have begun producing onions of the same quality and pungency and their onions are a lot more cheaper in the international markets.
Moreover, countries such as Thailand, Indonesia and Sri Lanka who were traditional buyers of the Indian onion have begun to produce onions and also export them. Since the competitiveness has increased, India has not been able to match up both in terms of quality and policies, observers said.
Onion is cultivated in Maharashtra, Gujarat, Madhya Pradesh, Karnataka, West Bengal, Odisha and Tamil Nadu with a total production of some 189 lakh tonnes for all the three seasons. Onion export however account for just 1% of the total production, according to market experts.
Top officials from Lasalgaon, the hub of wholesale onions in the country, say exporters from all over India used to export from Nashik. However, in 1999 the then prime minister Atal Behari Vajpayee first brought the onion under the essential commodities list and thereafter there have been several restrictions.
Source:- financialexpress.com
Lifting Of Sanctions On Iran Could Bring Stiff Competition For Indian Exporters
Indian businessman Pankaj Bansal is losing sleep. He says that any nuclear deal under which global powers lift sanctions against Iran could wipe him out.
"I have been forced to take sleeping pills now to avoid nightmares as my business with Iran has drastically come down," said Bansal, 43, from his base in a teeming commercial district of South Delhi.
Bansal's trading firm, TMA International, has expanded from metals into motors, auto parts and chemicals as rivals were shut out of Iran by Western sanctions aimed at forcing Tehran into a nuclear compromise. Talks to finalise a deal have run deep into overtime but may wrap up on Friday.
He is one of thousands of exporters who enjoyed a three-year run because India did not back the sanctions. In that time, India's exports to Iran doubled to $5 billion, helping to halve its bilateral trade deficit.
Now, they could be forced aside by European and US competitors just as Asia's third-largest economy reels from a 20 per cent export slump prompted by a global slowdown in trade.
The revival of India's historic friendship with Iran, shared with Russia and Venezuela, does hold the promise of long-term trade gains. Yet short-term pain looms for oil buyers and banks that benefited from sanctions-related payment delays.
HELPING HAND
A delegation of Indian exporters met Finance Minister Arun Jaitley last week to lobby for support to help them cope with a revival of competition for the Iranian market. They came away empty handed.
"The lifting of Western sanctions on Iran would have an adverse impact, particularly on non-agricultural commodities," said S.C. Ralhan, president of the Federation of Indian Export Organisations (FIEO).
Yet millions of farmers too would face a hit from the easing of sanctions on Iran, a buyer of basmati rice, soymeal, sugar, barley and meat. Under sanctions, Iran paid a premium of up to 20 per cent over global prices to buy from India.
"Iran is shifting to other suppliers like South American countries. They are supplying at much lower prices compared to India. We cannot compete," said B.V. Mehta, executive director at the Solvent Extractors' Association of India.
EUROPE'S EDGE
Indian exporters say firms from Germany, Italy and France that once dominated in Iran will be back selling consumer products ranging from clothing to cars, and pitching for big-ticket contracts like the delayed Tehran metro.
"Traditionally, Iranians have a liking for European products. With the weakening of the euro, it will not be easy for us to compete," said Rafeeq Ahmed, a Chennai-based exporter who used to head the Indian export federation.
India's oil ministry fears that Iran could award the right to develop the giant Farzad B gas field to Europeans who can deploy the latest technology and commit billions of dollars to modernising the OPEC member state's oil-and-gas infrastructure.
"So far they have not said 'no' to granting development rights of Farzad B field to ONGC," said an oil ministry official, referring to state-controlled Oil and Natural Gas Corp . "But there is no 'yes' also."
Refiners in India, the world's No.4 oil consumer and Iran's top client after China, want Iran to sweeten terms on crude deals to boost imports, which fell by 23 per cent over January-June.
Soruce:- economictimes.indiatimes.com
Marine Products Exports From India Fetches A Foreign Exchange Of $5.5 Billion
The ministry of commerce and industry has stated that during the financial year 2014-15, exports of marine products reached an all-time high of $5511.12 million. Marine product exports crossed all previous records in quantity, rupee value and USD terms. Exports aggregated to 10,51,243MT valued at Rs 33441.61 crores and $5511.12 million. Compared to the previous year, seafood exports recorded a growth of 6.86% in quantity, 10.69% in rupee and 10.05% growth in US dollar earnings.
Frozen shrimp continued to be the major export item in the export basket in terms of quantity and value, accounting for a share of 34.01 % in quantity and 67.19% of the total US dollar earnings. Shrimp exports during the period increased by 18.60%, 16% and 15.54% in quantity, rupee value and USD value respectively. However unit value realization decreased to 10.38$/Kg from 10.65 in 2013-14, a negative growth of 2.59%.
The overall export of shrimp during 2014-15 was to the tune of 3,57,505MT worth $3,709.76 million. USA is the largest market (1,12,702MT) for frozen shrimp exports in quantity terms followed by European Union (81,952MT), South East Asia (69,068MT) and Japan (30,434MT).
The contribution of cultured shrimp to the total shrimp export is 76.45% in terms of US dollar. The export of cultured shrimp has shown positive growth of 21.66% in quantity and 15.53% in US dollar terms.
Source:- timesofindia.indiatimes.com
Travelling services are eligible for credit only it its relation with manufacturing is established
Cenvat Credit : Telephone expenses, courier charges and cargo handling charges have relevancy with business of assessee and therefore, same are eligible for input service credit; however, travelling services and hiring of cars were ineligible in absence of any evidence as to their relation with manufacture/business
TPO to follow case of 'Sony Ericsson' to decide whether AMP exp. of assessee would be an internation
IT/ILT: Where required facts were not on record to decide whether AMP expenses incurred by assessee gave rise to an international transaction, matter was remanded to Assessing Officer/TPO for verification of facts
Rupee Opens Higher At 63.54 Per Dollar
The Indian rupee opened higher by 6 paise at 63.54 per dollar on Thursday versus 63.60 Wednesday.
Mohan Shenoi of Kotak Mahindra Bank said, "Developments in China and Greece and its impact on commodities and stocks has resulted in risk-off scenario globally. In this turmoil USD-INR has remained resilient due to strong India macro and Reserve Bank of India (RBI) actions."
He further added, "The USD-INR pair is expected to trade today in a range of 63.50-63.80/dollar."
Source:moneycontrol.com
HC grants further extension of 4 weeks to Kingfisher Airlines to comply with clause 41 of listing ag
SEBI: Kingfisher Airlines ('petitioner') prayed for extension of time to comply with clause 41 of listing agreement for publication of the audited financial results for the year ended March 31, 2014 and for the quarter ended June 30, 2014. It was seeking extension on the ground that it failed to comply with such requirement due to not having quorum for holding a Board meeting as the application for security clearance of third director was furnished late, i.e., on August 25, 2014.
Reassessment quashed as ACIT had merely copied reasons recorded by his predecessor without any reaso
IT: Where assessee had disclosed all details regarding working of disallowance under section 14A and working of provision for bad and doubtful debts, impugned notice seeking to reopen assessment was to be quashed and set aside as Assistant Commissioner without giving any reasons had merely copied reasons which had been recorded by her predecessor
Govt. notifies manner of computing foreign holding in an Indian Insurance Company
INSURANCE/INDIAN ACTS & RULES : Indian Insurance Companies (Foreign Investment) Amendment Rules, 2015 – Amendment in Rule 2
Concealment penalty couldn't survive when impugned issue became debatable
IT : Where addition on basis of which penalty was imposed has become doubtful/debatable, penalty imposed under section 271(1)(c) cannot survive
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