Info under RTI Act revealing failure of AO in recording satisfaction note leads to quashing of searc

IT : Where Assessing Officer of searched person had not recorded requisite satisfaction in respect of assessee, impugned assessment proceedings under section 153C against assessee were to be quashed

In an oppression plea, not only co. whose affairs are gone into but anyone can be impleaded as respo

CL : In a petition under sections 397-398 not only company whose affairs are gone into but anyone can be impleaded as respondent

Sum paid by Hospital for administration of drug store would attract sec. 194C TDS and not sec. 194H

IT : Where assessee-hospital engaged two ladies to facilitate and manage its drug store, drug handling charges paid to said ladies would be liable to deduction of tax at source under section 194C and not under section 194H

Cement bags are taxable separately as it is established that sale of cement and bags are separate tr

CST & VAT: Andhra Pradesh VAT - Where assessee was engaged in business of manufacture and sale of cement and it had established that sale of cement and HDPE bags in which cement was packed was distinct and separate sale and there was a contract for such separate sale of cement and bags, sale of HDPE bags should be subjected to tax at rate applicable to it

Sum paid by Hospital for administration/management of drug store would attract sec. 194C TDS and not

IT : Where assessee-hospital engaged two ladies to facilitate and manage its drug store, drug handling charges paid to said ladies would be liable to deduction of tax at source under section 194C and not under section 194H

Govt. integrates 14 services with eBiz portal including services of issue of PAN/TAN and Co. incorpo

CL : Ease of doing business in India – Introduction of e-biz platform

IRDA notifies norms to calculate obligation of insurer on Third Party Insurance of motor vehicles

INSURANCE/INDIAN ACTS & RULES : IRDAI (Obligation of Insurer in Respect of Motor Third Party Insurance Business) Regulations, 2015

Assessee has no right over sale proceeds of confiscated goods as property in goods vests in the Gove

Excise & Customs : Where assessee did not opt for redemption of confiscated goods, property in confiscated goods stood vested with Government; hence, assessee had no right to claim refund of sale proceeds

Addition for undisclosed investment couldn't be made solely on basis of DVO's report

IT : No addition can be made with respect to difference between cost of construction determined by DVO and as shown by assessee solely on basis of DVO's report

Govt. unveils second set of procedures for NGOs to claim Sec. 11 benefit on money send to earthquake

IT : Standard Operating Procedure (SOP) for Making Application for Claim of Tax Exemption U/s 11(1)(C) of the Income-Tax Act, 1961 in Respect of Remittance of Money/relief Article by Indian Ngos/charitable Organisations for Earthquake Hit People in Nepal

Commissioning and installation of equipment is closely linked with manufacturing to be aggregated to

IT/ILT : Where activity of commissioning and installation of equipment arose out of manufacturing activity, both activities being 'closely linked' deserved to be aggregated and construed as a single transaction for purpose of determining ALP

Examination of AMP functions and probable comparables is essential to determine ALP of international

IT/ILT: Examination of AMP functions carried out by assessee and probable comparables is sine qua non in process of determination of ALP of international transaction, thus, where no details of AMP functions performed by assessee was available on record, matter required readjudication

Govt. announces guidelines for permitting use of 'Make in India' logo

CL : Guidelines for Permitting Use of 'make in India' Logo

India Onion Exports Fall

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 in quality and increase in cultivation. India ranked second among the top 10 onion exporting countries for several years. 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.

In the last five years, onion exports 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.

Source:rwfreight.co.uk

Sugar Exports From India Surge As Mills Rush To Pay Growers

Sugar exports from India will climb more than forecast previously as mills accelerate sales to clear $2.8 billion debt to cane growers.

Shipments will surpass 1 million metric tonnes in the 12 months through September, said Yatin Wadhwana, managing director of Sucden India Pvt. Mills may export about 400,000 tonnes of mainly white sugar between now and September, he said. Wadhwana’s forecast for full-year sales compares with 800,000 tonnes predicted by the Indian Sugar Mills Association last month.

Inventories in India are poised to jump to a seven-year high after production outpaced demand for a fifth year and a slump in global prices slowed exports. With another bumper crop in the making and government threatening action against producers for not paying farmers, mills are selling below production cost to clear dues to growers. That may weigh on futures in New York which slumped to a six-year low this week.

“Mills are forced to sell at a loss because of government’s pressure to pay farmers on time,” Sanjeev Babar, managing director of Maharashtra State Cooperative Sugar Factories Federation, said by phone from Mumbai on 20 July. “We don’t have enough money to run the mills.”

Factories owed farmers about Rs.18,100 crore ($2.8 billion) as of 15 June, according to the mills association. Under the law, factories are required to pay farmers within 14 days of supplying cane, Babar said. Failure to pay up on time would entitle growers to 12% interest on dues and the government can seize sugar stockpiles and auction them to pay the farmers, he said.

Prices on the ICE Futures US fell to as low as 11.35 cents a pound on Monday, the lowest level since January 2009. The contract for October delivery closed at 11.42 cents in New York on Tuesday while prices in Mumbai ended at Rs.2,184 per 100 kilograms (220 pounds).

Mills in Maharashtra state, the nation’s biggest producer, sold about 300,000 tonnes of white sugar in the past two weeks to mobilize money to pay farmers, Babar said. Mills there owed farmers Rs.3,300 crore as of 15 June, he said.

“Mills were helpless due to the sword hanging on them in the form of cane payments,” said Kamal Jain, managing director of brokerage Kamal Jain Trading Services Pvt.

Factories sold sugar at prices between Rs.19 a kilogram to Rs.19.50 a kilogram, the lowest since May 2007, when the rate was Rs.10.68 a kilogram, Babar said. The production cost is as high as Rs.34 a kilogram, he said.

The slump in prices forced the government to subsidize exports and waive interest on bank loans to processors. Stockpiles of 10.2 million tonnes at the start of new crop season from 1 October, the highest since 2008-09, will add to supplies of about 27.25 million tonnes in 2015-2016 estimated in a Bloomberg survey last month.

Source:livemint.com

Texprocil Hails Govt Steps To Boost Cotton Fabrics Export

The Cotton Textiles Exports Promotion Council (TEXPROCIL) has welcomed the inclusion of exports of cotton fabrics - both woven and knitted - to Bangladesh and Sri Lanka under the Merchandise Exports from India Scheme (MEIS), according to a press statement by the trade body.

The Directorate General of Foreign Trade (DGFT) had announced a new list of textile items eligible for export sops last week.

MEIS was introduced in the Foreign Trade Policy 2015-20 announced recently. The scheme allows duty credit scrips at the prescribed rates of 2 per cent, 3 per cent and 5 per cent on exports of products to notified countries classified under Group A, B and C.

"This is a very positive step taken by the government as it will increase exports to these two countries. India can play a big role by supplying fabrics to Bangladeshi and Sri Lankan garment manufacturers as India is stronger in fabrics and the two countries are stronger in garment manufacturing," Texprocil chairman R K Dalmia said in a statement in Mumbai.

However, knitted fabrics with H S (Harmonised System) Code 6006, which covers most of the knitted fabrics, including those with lycra, were left out in the list of items covered for export benefit.

Knitted fabrics with lycra are value added products, that are being widely used in garments. Texprocil has demanded that the entire range of fabrics should be covered under the benefit to avoid unintended exclusions.

The MEIS has also not included exports of value-added and labour-intensive products like cotton dyed and printed fabrics and made-ups to different African countries like Mauritania, Mali, Dar Es Salaam, among others, Dalmia said.

He urged the government to include exports of knitted fabrics covered under HS code 6006 to Bangladesh and Sri Lanka and exports of value-added products like cotton dyed and printed fabrics and made-ups to African countries under the MEIS.

These measures will give the much-needed impetus to exports at at a time when exporters are facing adverse conditions in major markets, he said.

Source:fibre2fashion.com

ITAT couldn't set aside revisional order of CIT by re-appreciating his satisfaction recorded under s

IT : Once Commissioner has got power to point out errors which have effect on revenue, Tribunal cannot sit as an appellate authority on said order of Commissioner passed under section 263

Indian Aluminium Producers Push To Double Duties On Growing Imports

Aluminium producers in India are lobbying the government to double the import duty on aluminium metal as they compete with the growing influx of material from China.

A delegate of the Aluminium Association of India met the government recently to flag the issue of rising aluminium metal imports to the country and suggested a hike in import duty on these materials. The increase in aluminium exports from China has been one of the key themes in the aluminium market over the past year.

As a means to check the growing imports, the industry body has asked the government lift the import duty on aluminium metal to 10% from 5% now, a producer source said. A member of the Aluminium Association of India confirmed that a presentation was made to the government, adding that the government has not agreed on any measures yet.

Source:metalbulletin.com

Leasing of factory with machinery amounts to 'renting of immovable property' and not 'business Suppo

Service Tax : Leasing of entire factory with plant and machinery, would amount to 'renting of immovable property services' and not infrastructural support (Business Support Services)

Rupee Opens Lower At 63.58 Per Dollar

The Indian rupee opened with a marginal loss of 7 paise at 63.58 per dollar on Wednesday against previous close of 63.51.

Himanshu Arora of Religare said, "The USD-INR pair is expected to trade in a rangebound fashion today with bearish bias amid weakness in dollar. Fresh selling of dollars by banks and exporters is expected to support the rupee today."

"The range for the USD-INR is seen between 63.35-63.70/dollar today," he added. The euro rebounded from three-month lows against the dollar as an easing of pessimism about Greece. The yen rose versus the greenback on upbeat remarks on inflation from the Bank of Japan Chief.

Source:moneycontrol.com

Director not liable to pay tax dues of Co. if non-recovery of taxes isn't due to gross negligence of

IT : In absence of any finding that non-recovery of tax due from company could be attributed to any gross negligence, misfeasance or breach of duty on part of petitioners, no order under section 179 could be made

Garnishee notices for recovery from assessee's debtors cannot be sustained, if demand itself has bee

Service Tax : Where earlier adjudication order has been set aside and matter adjudicated afresh, garnishee notices for recovery from assessee's debtors (service recipient and bank, etc.) based upon earlier adjudication order, cannot be sustained; however, department may issue fresh notices as per law

ICSI replies to queries received on SS-1 and SS-2

COMPANIES ACT, 2013 : FAQs on Secretarial Standard on Board Meetings (SS-1) and on General Meetings (SS-2)

CBEC issues instructions for conducting detailed scrutiny OF Excise returns

EXCISE : Returns - Instructions on Detailed Scrutiny of Central Excise Returns

Govt. explains reasons for amending exemption notification with non-Cenvat conditions

EXCISE : Judgement of Supreme Court in Case of Srf Ltd. Vs. Commissioner of Customs, Chennai [2015] 56 Taxmann.com 407 (Sc) – Clarification Relating to Notifications No.30/2004-C.e., Dated 9-7-2004; No.1/2011-C.e., Dated 1-3-2011 and No.12/2012-C.e., Dated 17-3-2012, as Amended from Time to Time

Provisions of sec. 292BB don't cure defect of non-issuance of notice under sec. 143(2)

IT : Provisions of section 292BB do not cure virus of non-issuance of notice under section 143(2)

Inputs/capital goods with concessional rate of duty are also covered for 'exemptions with non-Cenvat

EXCISE : NOTIFICATIONS NO.37/2015-C.E., 38/2015-C.E., And NO.39/2015-C.E., ALL DATED 21-7-2015