IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering software development services to its AE, since comparable selected by TPO could not properly match its expenses with revenue earned and thus lost its credibility for making logical comparison, impugned addition was to be set aside
Thursday 16 July 2015
Claim of bank on mortgaged property didn't have preference over VAT dues
CST & VAT : Punjab VAT - Where petitioner, a bank, advanced loan to one 'S' against mortgage of property and it had taken physical possession of property in August, 2014 and in meantime it received a letter in respect of attachment of property of 'S' for recovery of dues of State under Punjab VAT Act, claim of petitioner that it had preference over tax dues of State did not merit any acceptance
Lowering Of Crude Oil Prices Will Contribute Positively To Indian Economy:
Lowering of crude oil prices the likely outcome of the Iran nuclear deal will contribute positively to the Indian economy, across the oil and gas value chain barring domestic upstream players, said India Ratings and Research (Ind-Ra).
A decline in oil prices could lower LNG prices as the two are linked and this is likely to benefit end-consumer industries such as fertiliser and petrochemicals.
Oil refiners will benefit by way of lower crude oil prices as imports from Iran will be more cost effective than imports from Africa, Latin America and Venezuela among others. Post the agreement and lifting of sanctions on Iran, lower insurance and transportation costs are likely to reduce the overall landed cost of Iranian oil in India.
Domestic public sector upstream players may benefit from a lower subsidy burden if the quantum of under-recovery and hence subsidy declines. However, the benefit of lower subsidy could be offset by lower realisations that public sector units would face because of a decline in crude prices.
The lifting of sanctions could also help revive investments by ONGC Videsh Limited in Farzad-B gas field, which could entail investments of nearly $7 bn. Additionally at some stage, talks on the $4 bn Iran-India gas pipeline could restart.
India also had plans of buying 5mt of natural gas per year under a deal signed in 2005, between National Iranian Gas Export Company and India's Gas Authority, Indian Oil and Bharat Petroleum.
The resumption of these projects and deals will lead to higher supplies and lower prices which will benefit Indian corporates which rely on oil and natural gas.
Source:economictimes.indiatimes.com
Made-In-India Volvo Buses Will Be Exported To Europe Later This Year
From July, Volvo Buses will commence exports of its fully built made-in-India buses to Europe and other developed markets.
Swedish commercial vehicle maker Volvo Buses has initiated process to export buses from India. The first such bus, produced at the Volvo facility in Bangalore will make its way to Europe by the end of this year while the company will be stepping up exports from India to more markets in the months ahead.
Volvo will be utilising its manufacturing facilities in India and China for exports to European markets to compete with Daimler and IVECO. From India, this will be the first time they will be exporting India-made products to developed markets. Volvo already exports buses to South Asia and South Africa.
Volvo Make-in-India buses are Euro VI certified and will be shipped as Completely Built Units which will be produced from the company’s Hoskote facility near Bangalore. These Volvo buses will be sold directly to customers and not through Volvo subsidiaries in Europe. This announcement makes Volvo Buses the first CV maker to export to Europe while it is also the first time that Europe will be importing buses from a non developed market.
There are about 5,000 Volvo buses on roads in India out of which 3,500 are used for intercity travel while 1,500 are intracity buses. All buses are Bharat III compliant which is equal to Euro III.
The company has recently stepped up capacities to around 1,500 buses per annum on a single shift so as to balance domestic and export demands. Volvo has also initiated the Asia Leverage Program, investing in India to enhance facilities to include a new paint shop, warehouse, a training and R&D Centre besides a new test track.
Source:rushlane.com
Inclusion of standard clause in agreement that didn't determine sale price of flats wasn't anti-comp
Competition Act : Where OP, real estate developers were not carrying out any practice of determining sale prices of apartments and standard clauses in buyers agreement did not determine price of apartment, no case of contravention of section 3 was made out
Aluminium Industry Meets Government, Seeks 10% Import Duty On Chinese Imports
The Aluminium Association of India (AAI), the industry body of Indian aluminium producers, met the Secretary, Ministry of Mines and Chairman of Central Board of Excise and Customs on Thursday, seeking government action to protect the cheap imports and crushing meltdown in global prices by imposing an import duty of 10%.
The delegation also proposed a protectionist policy of mandating Indian buyers to purchase the products of Indian aluminium producers. The association said the new projects set up by Indian players, which could double aluminium production in the country, were functioning at less than the capacity.
Total imports to India have surged by over 159% to 1,563 kilo tonne (KT) in 2015 as against the import of 881 KT in 2011, according to AAI. The association said that imports, mainly from China and Middle-East countries, accounted for 56% of Indian aluminium consumption in the last financial year, while products of Indian producers account for only 44%.
AAI added that the situation has worsened further due to continuously sliding international prices in recent years. "In last three years, aluminium prices on London Metal Exchnage have come down by 35% to $1660 per tonne in June, 2015 from a peak of $2555 per tonne witnessed in June, 2011," the statement said.
AAI President and BALCO's vice chairman S.K Roongta headed the delegation. Abhijit Pati, CEO at Vedanta Aluminium and Hindalco's deputy managing director Satish Pai were also part of the delegation.
Source:- economictimes.indiatimes.com
Govt Slashes Import Tariff Value Of Gold, Silver
Government on Thursday further slashed the import tariff value of gold to $376 per 10 grams and of silver to $498 per kg due to weak global prices. For last fortnight, the tariff value of gold was fixed at $382 per 10 grams and silver at $516 per kg.
The import tariff value is the base price at which customs duty is determined to prevent under-invoicing. It is revised on a fortnightly basis taking into account global prices.
The decrease in tariff value on imported gold and silver has been notified by the Central Board of Excise and Customs, according to an official statement. The government further brought down the tariff value of these two metals taking into account the weak global market, where prices have come under pressure with appreciation in the US dollar against other major currencies.
At Singapore market, gold prices on Thursday hit to four-month low at $1,146.19 per ounce, while silver rates have marginally changed to $15.10 per ounce. In the national capital too, gold prices remained flat at Rs.26,250 per 10 grams and silver at Rs.35,180 per kg.
The country’s gold import declined almost 37% to $1.96 billion in June, as against $3.12 billion in the year-ago period, as per the government data. Gold is the second-largest import item for India after petroleum.
Higher gold import bill adversely affects the country’s current account deficit, which occurs when value of import of goods and services is more than exports.
Source:- livemint.com
Rupee Rate Set At 63.49 Against Us Dollar By Rbi
The Reserve Bank of India fixed the reference rate of the rupee at 63.4955 against the US dollar and 69.3941 for the euro on Thursday, an increase from Wednesday's rates of 63.3847 and 69.69851 respectively.
According to an RBI statement, the exchange rates for the sterling and the yen against the rupee were quoted at 99.1736 and 51.28 per 100 yen, respectively, based on reference rates for the dollar and cross-currency quotes at noon.
The SDR-rupee rate will be based on this rate, the statement added.
Source:- hindustantimes.com
Exp. incurred on relocation of reactor within factory premises to improve production wasn't capital
IT: Where Tribunal relying upon its earlier orders for prior assessment years held that contributions made by assessee to various industries were revenue in nature, such being a finding of fact was not perverse and did not give rise to any substantial question of law
RBI cautions public on writing on watermark of banknotes
BANKING : Inscribing On Bank Notes – RBI's Advisory Thereon
Interest on NPAs is taxable on receipt basis even if bank is following mercantile system of accounti
IT: In case of assessee-cooperative bank, as long as interest on non-performing loans and advances was not received and so long as credits in respect of such interest was confined to 'interest suspense account', it would not be treated as income of assessee
No denial of sec. 80P relief to society as its receipts and lending were limited to its members only
IT: Where assessee was a credit co-operative society, and not a credit co-operative bank, it would be entitled to deduction under section 80P(2)(a)(i)
CBEC seeks recommendations from its officers for constitution of regular panel of counsels for depar
EXCISE : Constitution of Regular Panel of Senior and Junior Standing Counsels for Handling Cases of Indirect Taxes Before Various High Courts, Tribunals and Other Courts
Surveyors and loss assessor to be appointed only by insurers and insured and not by any other perso
INSURANCE : Appointment of Surveyors and Loss Assessors
HC can't direct insurer to pay above 1 lakh of guaranteed sum to depositors of liquidating banks
BL: Deposit Insurance and Credit Guarantee Corporation Act, 1961 guarantees repayment of Rs. 1 lakh to each depositor of banking company insured with Deposit Insurance and Credit Guarantee Corporation when that company is in financial difficulty and is ultimately wound up, High Court or any other authority has no power to direct payment in excess of Rs. 1 lakh by ignoring statutory provisions of Act and Regulations made thereunder
New provisions of pre-deposit aren't applicable to adjudication orders passed before August 6, 2014
Service Tax : Where adjudication order (and even order of Commissioner (Appeals)) were passed prior to 6-8-2014, section 35F of Excise Act (section 129E of Customs Act), as amended from 6-8-2014, would not apply for pre-deposit in case of said matter
Sum received by foreign Co. for allowing use of global telecom system by agents for its shipping bus
IT/ILT: Payments made by Indian agents to foreign shipping company as reimbusement of share of cost for maintaining a global, Net Communication system was not fees for technical services
Government Further Cuts Gold, Silver Import Tariff Value
Government today further slashed the import tariff value of gold to $376 per 10 grams and of silver to $498 per kg due to weak global prices. For last fortnight, the tariff value of gold was fixed at $382 per 10 grams and silver at $516 per kg.
The import tariff value is the base price at which customs duty is determined to prevent under-invoicing. It is revised on a fortnightly basis taking into account global prices.
The decrease in tariff value on imported gold and silver has been notified by the Central Board of Excise and Customs, according to an official statement.
The government further brought down the tariff value of these two metals taking into account the weak global market, where prices have come under pressure withappreciation in the US dollar against other major currencies.
At Singapore market, gold prices today hit to four-month low at $1,146.19 per ounce, while silver rates have marginally changed to $15.10 per ounce. In the national capital too, gold prices remained flat at Rs 26,250 per 10 grams and silver at Rs 35,180 per kg.
The country's gold import declined almost 37 per cent to $1.96 billion in June, as against $3.12 billion in the year-ago period, as per the government data
Gold is the second-largest import item for India after petroleum. Higher gold import bill adversely affects the country's current account deficit, which occurs when value of import of goods and services is more than exports.
Source:economictimes.indiatimes.com
Service-tax paid, voluntarily, during search can't be challenged by assessee
Service Tax : While department cannot forcibly collect service tax during search/raid; however, where assessee admits his service tax liability and makes payment without any objection, said payment by assessee during search cannot be challenged by assessee himself as invalid
Act on eviction of unauthorized occupants from public premises is effective from June 24, 2015
CL/INDIAN ACTS & RULES : Section 1 of the Public Premises (Eviction of Unauthorised Occupants) Amendments Act, 2015 – Act – Enforcement of – Notified Date on Which Said Act Shall Come into Force
Delhi VAT Second Amendment Act is effective from July 15, 2015
VAT/DELHI/INDIAN ACTS & RULES : Section 1 of the Delhi Value Added Tax (Second Amendment) Act, 2015 – Act – Enforcement of – Notified Date on Which Said Act Shall Come into Force
Rupee Opens Lower At 63.51 Against Us Dollar
The Indian rupee on Thursday weakened against the dollar, tracking the losses in the Asian market.Federal Reserve chairperson Janet Yellen signalled the US central bank is on track to raise interest rates this year. Forecasts issued by the Federal Open Market Committee in June implied two quarter-point rate rises this year, followed by a shallower path of increases than what officials predicted in March.
The local unit opened at 63.51 per dollar. At 9.10am, the home currency was trading at 63.50, down 0.13% from its previous close of 63.42. The Sensex gained 0.22% or 61.41 points to 28,259.70 points in pre-opening trade.
Most of the Asian currencies were trading lower. Japanese yen was down 0.057%, Malaysian ringgit 0.105%, Philippine peso 0.104%, Singapore dollar 0.110%, South Korean won 0.380% and Thai baht 0.114%.
The yield on India’s 10-year benchmark bond was trading at 7.83% compared with its Wednesday’s close of 7.84%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has lost 0.73%, while foreign institutional investors have bought $13.40 billion from local equity and bond markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.239, up 0.08% from the previous close of 97.166.
Source:livemint.com
No additions on basis of statements recorded during survey without any other material to support ass
IT: Where assessment order was passed on sole basis of statements recorded during course of survey and after retraction of statements, Assessing Officer did not produce any other material to support understatement of sale consideration of land, assessment order was to be set aside
No reassessment to deny sec. 10A relief if AO failed to examine basic docs before granting sec. 10A
IT : If essential and basic documents which are to be necessarily examined before grant of exemption under section 10A are not gone into, then it is default of officer concerned and not assessee
Collection of donation by educational society to provide hostel for students is incidental to its ob
IT: Where voluntary donations received by assessee-society were genuine and it was providing hostel to staff/students which was incidental to main object of providing education, assessee's registration could not be cancelled
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