IT/ILT : Section 119 of the Income-Tax Act, 1961 - Income-Tax Authorities - Instructions to Subordinate Authorities – Validation of Tax Returns through Electronic Verification Code
Monday 20 July 2015
Time-limit applicable for claiming refund of duty doesn't apply to refund of penalty/redemption fine
Excise & Customs : Customs section 27 (excise section 11B) deals with refund claim of duty/interest and not penalty/redemption fine; hence, time-limit of section 27 cannot be applied to deny refund of penalty/redemption fine
AO gets flak from ITAT for taxing full capital gains in hands of one co-owner while the other was ta
IT : Where assessee co-owner declared capital gains according to her half share of sale proceeds, but Assessing Officer sought to tax gains on total sale proceeds, he was not justified particularly when revenue authorities had accepted return of other co-owner disclosing similar income
FDI Policy prohibit non-equity investment in real estate return
FEMA : FDI Policy prohibit non-equity investment in real estate sector
TRO couldn't enhance rent of tenants after taking over possession of premises to recover tax dues fr
IT : TRO has no jurisdiction under section 226(3) to enhance rent being paid by tenant towards tax dues of landlord
Powers of Govt. to delegate its functions under Companies Act shall apply to LLP as well, says MCA
LLP/COMPANIES ACT, 2013 : Section 67 of the Limited Liability Partnership Act, 2008 – Provisions of Companies Act - Application of – Notified Section of Companies Act, 2013
Textile Industry To Get A Boost With Strong Domestic Consumption And Export Demand
Indian Textiles Industry has a major presence in the economic life of the country. Apart from providing one of the basic necessities of life, the textile industry also plays a pivotal role through its contribution to industrial output, employment generation and export earnings of the country. It contributes 14% to industrial production, 4% to India’s GDP and constitutes 13% of the country’s export earnings. The textile sector is one of the largest providers of employment alongwith agriculture. The domestic textile and apparel industry in India is estimated to reach $100 Billion by 2016-17, while Exports in textiles and apparel from India are expected to increase to $65 Billion by 2016-17.
The Indian textiles industry represents a widely diverse spectrum of activities with the hand-spun and handwoven sector at one end, and the capital intensive sophisticated mill sector at the other. The decentralized power looms, hosiery and knitting sectors form the largest section of the Textiles Industry. The close linkage of the Industry to agriculture and the ancient culture, and traditions of the country make the Indian textiles sector unique in comparison to the textiles industry of other countries. This also provides the industry with the capacity to produce a variety of products suitable to the different market segments, both within and outside the country.
Industry performance
The Indian textile industry has the potential to grow five-fold over the next ten years to touch $500 billion mark on the back of growing demand for polyester fabric. The $500 billion market figure consists of domestic sales of $315 billion and exports of $185 billion. The current industry size comprises domestic market of $68 billion and exports of $40 billion. The total fabric production in India is expected to grow to 112 Billion square metres by 2016-17, while India’s fibre production is expected to reach 10 Million Tonnes in 2016-17.
Export
India’s textiles and clothing industry is one of the mainstays of the national economy. It is also one of the largest contributing sectors of its exports worldwide. The report of the Working Group constituted by the Planning Commission on boosting India’s manufacturing exports during 12th Five Year Plan (2012-17) envisages India’s exports of Textiles and Clothing at $64.41 billion by the end of March, 2017. Export of textile products for FY15 increased marginally by 0.46% to $37,137.32 million as compared to $36,967.56 million in FY14.
Import
India is major exporting country as far as textile sector is concerned and not dependent on import. Majority of import takes place for re-export or special requirement. The import of textile product increased 13.98% in FY15 to $5,511.95 million as compared to $4,835.93 million in FY14. The textile ministry is in consultation with the finance and revenue departments to examine the possibility of a duty cut on man-made fibre as high cost of the key raw material for making blended garments is making Indian goods uncompetitive in the global market. While man-made fibre draws an excise duty of 12.5 per cent, it has various import restrictions, leading to a cumulative duty of 29 per cent. Viscose fibre, one of the most common man-made fibres, attracts an anti-dumping duty.
Investment in the industry
The textiles sector has witnessed a spurt in investment during the last five years. The industry (including dyed and printed) attracted foreign direct investment (FDI) worth $70.82 million or Rs 444.43 crore during April 2015.
Recent developments
Govt launches scheme to promote geo-technical textiles in North East
Minister of State for Textiles has launched a scheme to promote usage of Geotechnical Textiles in the North Eastern Region of India, at Imphal. The scheme has several objectives including; demonstrative use of geotechnical textiles as a modern cost-effective technology in the development of infrastructure in fragile geological conditions of NER; improving the durability, function and life of infrastructure in NER, while bringing down the life cycle cost of the projects; promoting the use of geotechnical textile materials and create a market for these products in NER by inducing demand in infrastructure development and stimulating investment and development of technical textile industry in NER and rest of the country. In addition, the scheme intends to also develop a set of standards and specifications for the products as well as projects using these materials. The scheme will also develop literature/manuals for inspection and testing and other aspects of construction using these materials.
Govt launches handicrafts & carpet sector skill council
The government has launched a new institution, Handicrafts & Carpet Sector Skill Council. The institution will promote skill development among artisans, craft persons and workers at grassroots level. This would enable them to adopt latest techniques and become more productive. The institution will promote skill development among artisans, craft persons and workers of handicrafts and carpet products, at grassroots level. This would enable them to adopt latest techniques and become more productive. The Council will be responsible for developing occupational standards; setting up labour market infrastructure; introducing certification & assessment mechanism and providing guidance to the artisans, crafts persons and workers in all aspects of skill development. The Council will operate from New Delhi.
Textiles MoU between India and Kyrgyzstan
Cooperation in the textiles sector between India and the Central Asian Republic of Kyrgyzstan is set to receive a boost. A Memorandum of Understanding (MoU) has been signed between India and Kyrgyzstan. The MoU seeks to strengthen bilateral cooperation in the following three fields including; Textiles and Clothing, Silk and Sericulture and Fashion. The two countries have agreed to set up a Joint Working Group (JWG) to explore details of cooperation within the scope of the MoU and the steps required to facilitate bilateral trade and investment. The JWG will be co- chaired by an official of appropriate level from the Ministry of Energy and Industry of the Kyrgyz Republic and the Ministry of Textiles of the Republic of India.
Corporate developments in textile sector:
Textile manufacturer Sangam has made foray into branded women apparel category with a launch of a new brand Channel Nine. The company is in the process of achieving manufacturing volumes of 3.6 million units per annum. It intends to make inroads into the domestic lingerie retail market estimated to be around Rs 15,000 crore now and growing at a Compounded Annual Growth Rate (CAGR) of 20-25 percent.
Snapdeal has partnered with India Post to jointly work on bringing thousands of weavers and artisans from Varanasi through its website. “This is an endeavour by Snapdeal and India Post to empower local artisans, small and medium entrepreneurs to sustain their livelihood by providing a platform to popularise their indigenous products.
Reliance Industries (RIL) plans to enter into a joint venture (JV) with China-based Shandong Ruyi Science and Technology Group Co. The JV will leverage RIL's existing textile business and distribution network in India and Ruyi's state-of-the-art technology and its global reach.
Raymond has launched ‘Regio Italia’, a luxurious, elite and finest Italian fabric for its customers. Regio Italia is a fine collection of fabrics from Italy with the latest designs that is carefully woven and specially handpicked assortment of the best designs in formal and occasion menswear suiting fabrics.
Welspun India (WIL), part of the Welspun Group has unveiled its new spinning facility at Anjar, Gujarat - the largest under one roof in India. The expansion project reflects the ethos of the Government of Gujarat’s recent ‘Farm-Factory-Fabric-Fashion-Foreign’ Textile Policy, which is aimed at strengthening the entire textile value-chain.
Outlook
For mid term outlook, the Indian textile industry is expected to grow strongly, with growth being balanced from both domestic consumption as well as exports demand. In the near-term, domestic demand is expected to grow strongly with the revival of the overall economy and improvement in purchasing power of Indian consumers. On the exports front, opportunities are from weak currency and decreasing cost competitiveness of China that are likely to give positive impetus to the Indian exports, while factors like structural impediments to industrial growth, volatile foreign exchange rates and increase in cotton and yarn prices are likely to negatively affect growth and profitability for the textile exports.
The future for the Indian textile industry looks promising, buoyed by both strong domestic consumption as well as export demand. With consumerism and disposable income are on the rise, the retail sector has experienced a rapid growth in the past decade with the entry of several international players.
Source:- livemint.com
Brought forward losses are to be reduced from profits of current year before allowing sec. 10A deduc
IT : Brought forward loss of eligible business for preceding year should be reduced from profits of business for current year before allowing deduction under section 10A
India To Be Honda’S Parts Export Hub, Eyes Rs 1,100 Crore In Fy16
Japanese auto manufacturer Honda plans to make India an export hub point for auto components by improving supply from New Delhi to its different worldwide operations, while it also hopes to upgrade abroad delivering of worldwide models produced in the nation.
The organisation, which sent out auto components worth Rs 722 crore in 2014-15, is searching for more than 50 percent increment to Rs 1,100 crore in the progressing financial by including more nations, for example, the US, China and Canada to its account.
India To Be Honda’s Parts Export Hub, Eyes Rs 1,100 Crore In FY16
“We have been sending out a considerable measure of components from India. We are most likely hoping to expand trades from here as we need to make it a worldwide export hub,” Honda Cars India President and CEO Katsushi Inoue told PTI.
Honda’s exports of auto parts from India has been steadily expanding. In 2013-14, its part exports had a turnover of Rs 420 crore.
It sends diverse motor parts, forgings and transmissions alongside others, which are delivered at its Tapukara plant in Rajasthan to a large group of worldwide operations.
These incorporate Japan, Thailand, Malaysia, Indonesia, Philippines, Taiwan, Vietnam, UK, Brazil and Mexico. Before long, it will begin trading parts to its operations in US, China and Canada.
“Honda’s expectations from India is high. There is an immense potential ahead… As of now it’s the fourth greatest business sector for us after the US, China and Japan,” he included.
On exports of autos from India, he said Honda will hope to expand the volumes yet “it will be right hand driving nations”.
Honda Cars India sent out 8,403 units last financial while in 2013-14 it had delivered out 5,798 units crosswise over different markets. In the first quarter of the current financial, the organisation has effectively traded an aggregate of 1,858 units.
Keeping with its emphasis on exports, the organisation, which had as of late re-propelled its premium hatchback Jazz in India had begun sending out the model in front of its launch.
The organization additionally exports models like hatchback Brio, minimised car Amaze, average sized car City and multi-purpose vehicle Mobilio.
Honda Cars India Ltd (HCIL) sends out for the most part to South Africa and neighbouring nations Nepal and Bangladesh. It is investigating different alternatives to build the export market.
Commenting on the 2020 arrangements for the organisation, he said: “We have effectively begun gaining land in Gujarat for another plant however we have not began working at it as we can in any case improve generation limit of our Tapukara plant. On the other hand, Indian business sector is developing and the thought to set up another plant is to cater to the expected improved demand.”
On the difficulties in the Indian market, Inoue said: “India is a discount market and the opposition in very competitive. Our fundamental focus will be to upgrade clients satisfaction.”
“For us client is very essential. In the event that we attempt to increase production quickly we may hurt clients …that is not what we need, consumer loyalty is critical for us,” he added
Source:- mizonews.net
Centre Urged To Ban Export Of Buffalo Meat
CHENNAI: Animal rights activists have urged the central government to ban export of buffalo meat even as they lauded Union ministry of commerce's recent statement that export of beef has been prohibited in accordance with country's foreign trade policy.
"The idea of banning beef export is a huge relief as it will help preserve cattle wealth in the country," said G Arun Prasanna of the People for Cattle in India (PFCI), adding that the government should consider banning the export of buffalo meat.
It may be recalled that in a representation on June 25, Lok Sabha member Kirit Somaiya asked the ministry's stand on export of beef. In a letter dated July 9, minister of state for commerce and industry Nirmala Sitaraman said the export of beef (meat of cow, oxen and calf) had been prohibited.
However, animal husbandry was a state subject and the state governments could enact legislations to preserve cattle, it said. It also said the department of commerce had withdrawn the Transport Assistance Subsidy (TAS) to meat exporters since January 1, 2014.
According to PETA India (People for the Ethical Treatment of Animals) CEO Poorva Joshipura, there are around 30,000 unlicensed slaughterhouses in India. Cows and other animals were being transported across the state borders, she said. "They are being transported even to Bangladesh, to be slaughtered," she said.
"I have personally investigated the transport and slaughter of cows in India. They are either marched to slaughterhouses or crammed on to vehicles in high numbers that often their bones break and many of them die of suffocation and injuries en route," she added.
Source:- timesofindia.indiatimes.com/
Factory cleaning services are eligible for credit
Cenvat Credit : Cleaning services used to keep factory clean (as per obligations under Factories Act) are eligible for input service credit; and said credit cannot be denied merely because factory space was used by technical and administrative staff, without working area so used
Iran Deal Could Help India Boost Exports By Over A Third – Trade Body
India’s exports to Iran could jump by over a third to $6 billion this fiscal year as an easing of sanctions against Tehran would help boost sales of agricultural commodities though competition for non-farm items would rise, a leading trade body said.
Iran has been buying most of its basmati rice and sugar from India in the past few years using rupees for its oil due to restrictions on its dollar trades. On Tuesday, Iran and six major world powers reached a deal that will see the Islamic nation curbing its nuclear programme that the West has suspected was aimed at a nuclear bomb.
“It’s true that some of our exports, especially non-agricultural ones, will suffer but our farm exports will more than compensate for any loss,” said Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO).
Iran’s trade with India will no longer be governed entirely by how much oil it sells to the South Asian country, giving it more leeway to expand purchases of food items which India produces in abundance, such as rice, sugar and soybeans.
Rupee-denominated trade with Iran – India is its biggest oil buyer after China – started in 2012. India’s oil refiners settled 45 percent of Iranian oil payments by depositing rupees in Tehran’s commercial banks’ account with India’s UCO Bank.
“Now, both Indian and Iranian traders can look forward to conventional deals,” said Vijay Sethia, former president of the All India Rice Exporters’ Association.
India is Iran’s top rice supplier, accounting for the bulk of its annual requirement of 1-1.2 million tonnes, mainly basmati. Iran imported nearly 1 million tonnes of basmati in 2014/15, with 930,000 tonnes coming from India.
Sethia expects India’s basmati exports to rise 10-15 percent this fiscal year. “Of late there has been some slowdown in India’s rice exports to Iran which has built a buffer to avoid any shortage due to the sanctions. But volumes will pick up,” he said.
India and Pakistan exclusively grow the long-grain, aromatic basmati in the foothills of the Himalayas. The deal between Iran and the West could also cut freight rates, helping some Indian food exporters.
However, a 20 percent drop in the euro in over past year will help European firms win market share from India in automobile parts and machinery tools, among other things.
Source:hellenicshippingnews.com
India May Not Import More Wheat Due To High Global Prices
India is unlikely to import more wheat in the coming weeks due to surge in global prices and concerns that the government may anytime slap 10 per cent duty on inbound shipments, traders said.
Private flour millers had recently contracted 5 lakh tonnes of wheat from Australia for the first time in a decade due to sluggish supply of domestic high protein wheat and lower international prices. They had plans to contract another 5 lakh tonnes from France and Russia.
Despite surplus domestic stocks, imports were being made because of the damage to high-protein wheat crop following unseasonal rains and hailstorm early this year.
"Now, global wheat prices have started rising due to El Nino concerns. There is also fear that the government could impose 10 per cent import duty on wheat. In this situation, I doubt if more imports could take place," Roller Flour Millers' Federation of India Ex-President M K Datta Raj told PTI.
India has lost the window of opportunity to purchase from the overseas market as the global price of Australian wheat has increased to over Rs 20,000 tonnes now, as against Rs 17,000-18,000 per tonnes last month, he said.
Even at the current high rate, wheat imports would be expensive if the government imposes any import duty, he added.
The Food Ministry has already proposed 10 per cent import duty on wheat to curb shipments and liquidate poor quality grains lying in the government godowns.
A trader from Kochi said, "The existing not-so- comfortable situation is preventing flour millers and traders to contract more wheat from the other countries."
A representation has also been made to both Food and Commerce Ministries to reconsider the decision of imposing the import duty wheat, the trader said.
High protein wheat is grown in states especially Madhya Pradesh, Rajasthan, Gujarat and Maharashtra. The crop quality here got damaged due to unseasonal rains.
Wheat production in India, the world's second biggest grower, is estimated to have declined to 90.78 million tonnes in 2014-15, as against the record production of 95.85 million tonnes achieved during 2013-14.
Source:timesofindia.indiatimes.com
Merger of Co. won't shift its jurisdiction to AO of successor Co. in respect of previous year prior
IT/ILT: Once a company was assessed at Bangalore, subsequent merger of that company with company which was assessed at Gurgaon, would not give jurisdiction to Punjab and Haryana High Court to decide a lis over order passed by Assessing Officer at Bangalore
Rupee Depreciates Against Us Dollar
Rupee depreciated 7 paise to 63.54 against US dollar in intraday trade today amid rising hopes of interest rate hikes by the US Fed in coming months.
The domestic unit had snapped a two-week winning streak, slipping eight paise last week, to settle at 63.47 on Friday
Strong inflation and housing data released in the US on Friday pushed the dollar index to a three-month high. The index, which tracks the movement of dollar against a basket of major world currencies, rose to 98.
That said, persistent foreign capital inflows into the equity market has largely cushioned the rupee's fall to an extent, PTI quoted a forex dealer as saying.
Meanwhile, the Reserve Bank of India, which has stockpiled enough dollars to cover more than 10 months of the country's imports, is changing its strategy in the foreign exchange (FX) market, said The Economic Times in a report.
Given that it is in favour of lowering market interest rates, the RBI has bought more dollars in the spot market and dramatically reduced purchases of the US currency in the forward market, the report added.
Source:economictimes.indiatimes.com
Cash payment made on Sunday, being last date of registration of sale deed, won’t be disallowed
IT : Where assessee paid cash on Sunday in order to execute sale deed same being covered by exception provided under rule 6DD(j), disallowance under section 40A(3) was to be deleted
Credit is allowable when duty is paid on goods not liable to excise duty
Cenvat Credit : If duty is paid and accepted on final product by department, department cannot be permitted to challenge credit even if process resulting in final product does not amount to manufacture; in any case, duty paid for on final product may be treated as reversal of Cenvat credit
Sec. 158BD notice rightly issued to examine receipt, bearing signature of assessee, found during sea
IT : Where during search in case of third party, revenue found a receipt bearing signatures of assessee and indicating receipt of certain amount by assessee as sale consideration of a property, revenue was entitled to issue notice under section 158BD to assessee for ascertaining whether such amount was actually received by him and, if so, on whose behalf, and proceed further irrespective of assessee's claim that property was owned by his father and he received amount on behalf of his father
'Ericsson' abused its dominance by imposing unfair royalty on usage of 'SEP' patents for smart phone
Competition Act : Ericsson holding Standard Essential Patents for mobile communications like 2G, 3G and 4G patents used for smart phones, tablets, etc., was prima facie abusing its dominant position in relevant market by imposing excessive and unfair royalty rates
Cash payment made to execute sale deed on last date of registration which is Sunday won't attract se
IT : Where assessee paid cash on Sunday in order to execute sale deed same being covered by exception provided under rule 6DD(j), disallowance under section 40A(3) was to be deleted
Subscribe to:
Posts (Atom)