CL/INDIAN ACTS & RULES : Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Compensation, Rehabilitation and Resettlement, Development Plan) Rules, 2015
Monday 27 July 2015
Addition made by AO due to bogus purchases was rightly reduced by relying upon verdict of Apex Court
IT : Where addition made by Assessing Officer on account of bogus purchases was reduced by Tribunal relying upon decision of coordinate bench of Tribunal, though order of Tribunal was non-speaking, in view of fact that GP rate shown was still higher than that in subsequent years, impugned order of Tribunal did not require any interference
CCI imposed cease and desist order against suppliers for adopting collusive tactics to raise similar
Competition Act : Where OPs, were engaged in practices of determination of purchase price of 'CN Container' and collusive bidding in contravention of provisions of section 3, OPs were directed to cease and desist from such practice and penalty was to be imposed upon them
Courier agency importing goods on behalf of consignee must pay duty if it doesn't furnish authorizat
Excise & Customs : If authorised courier importing goods on behalf of consignees, fails to produce authorisation from consignees, such courier agency would become 'importer' and would be liable to duty
AO should satisfy himself about complexity of accounts before directing special audit
IT : Assessing Officer has to form an opinion having regard to nature and complexity of accounts of assessee and interest of revenue before issuing order under section 142(2)
Interest on tax refund having nexus with PE of NR in India would be assessable under article 11 of I
IT/ILT : Since international shipping profits earned by assessee did not fall or was not dealt with any other articles of Indo-Swiss Treaty, it was governed by residuary article 22 of DTAA and, therefore, applying article 22 of DTAA, income from shipping was not taxable in India
Govt Expects $933 Mn From Iron Ore Exports To Japan, Korea
The government is expecting to earn over USD 933 million (about Rs 5,989 crore) from exporting 16.5 million tonnes (MT) of high grade iron ore to Japan and South Korea, Parliament was informed today.
Government approved exports under Long Term Agreements (LTAs) to Japan and South Korea through MMTC for supplying 16.5 MT of high grade iron ore, Minister of State for Steel and Mines Vishnu Deo Sai said in a written reply to Lok Sabha.
"The foreign exchange expected to be earned is around USD 311.05 million per annum at current sale prices against export of iron ore under LTAs," he added.
In June, the Cabinet, chaired by Prime Minister Narendra Modi, gave its approval to renew LTAs with Japanese and South Korean steel mills for supply of high grade Indian iron ore, during the three year period from April 2015 to March 2018.
The quantities covered under the LTA will be in the range of 3.8 to 5.5 MT annually and will be supplied primarily from the mines of NMDC and the contract will be executed by MMTC.
India has been supplying high grade iron ore to Japan and South Korea under LTAs for the last four to five decades.
Sai informed the House that India has sufficient quantity of iron ore, at present, to meet domestic demand. However, there may be regional shortages in some states like Karnataka due to legal and regulatory issues.
Export duty at the rate of 30 per cent ad valorem on all iron ore varieties with effect from December 30, 2011 and 5 per cent ad valorem on iron ore pellets with effect from January 27, 2014 have been imposed, he added.
"Further, export duty at the rate of 10 per cent has been levied on iron ore containing Fe (Iron) less than 58 per cent with effect from April 30, 2015," the Minister said.
Source:business-standard.com
India Cuts Oil Imports From Saudi Arabia By Over 8 Per Cent
NEW DELHI: India has cut crude oil imports from its top supplier Saudi Arabia by over 8 per cent in 2014-15 as it raised purchases from Africa and Latin America in an apparent bid to cut reliance on volatile Middle-East.
Crude oil import from Saudia Arabia was cut to 34.99 million tonnes in the year to March 31, 2015 from 38.18 MT in 2013-14, Oil Minister Dharmendra Pradhan said today.
While imports from sanction-hit Iran were almost flat at 10.95 MT, shipments from Kuwait fell to 17.85 MT from 20.35 MT. Imports from Iraq were almost flat at 24.51 MT but the same from UAE rose 15 per cent to 16.11 MT.
Overall, imports from Middle East fell by over 5 per cent to 109.88 MT, he said in a written reply to a question in Lok Sabha here.
Crude oil imports from Africa and South America rose 10 per cent each as Indian refiners bought more heavier but cheaper grade oil, he said.
Indian refineries have consistently reduced imports from traditional markets like Saudi Arabia and stepped up purchases from newer geographies like Mexico and Venezuela as imports have become viable due to availability of cheaper variants and softening of shipping cost.
India imported 189.44 MT of crude oil in 2014-15, almost unchanged from the previous fiscal, to meet over 80 per cent of its oil needs. Saudi Arabia was the top supplier with 34.99 MT with Iraq being number two.
Venezuela was a very close third with 24.40 MT of oil supplies, 13 per cent higher than 2013-14. With 17.82 MT of crude oil supplies, Nigeria was tied with Kuwait for the fourth spot.
Pradhan said imports from Africa rose to 33.05 million tonnes in 2014-15 from 30.39 MT in the previous year. They went up from South America too, to 34.46 MT from 31.73 MT in 2013-14.
Mexico supplied 5.06 MT of crude oil in 2014-15, marginally higher than 4.94 MT a year ago.
Pradhan said imports from Iran, which was once the second biggest crude oil supplier to India, was 10.95 MT, almost unchanged from 11 MT in 2013-14. In 2012-13, India had imported 13.14 MT of crude oil from Iran.
New Delhi has maintained crude oil imports from Iran at 2013-14 level as the US looked to financially choke Tehran to bring it to negotiating table on its controversial nuclear programme.
Pradhan said Prime Minister has set a target for reduction in import dependency in energy by 10 per cent to 67 per cent by 2012-22, from 77 per cent dependency in 2013-14.
"A Committee has been constituted under the Chairmanship of Additional Secretary, Ministry of Petroleum and Natural Gas, to prepare a roadmap in order to achieve the target," he said.
source:- economictimes.indiatimes.com
Govt. unveils third set of procedures for NGOs to claim Sec. 11 benefit on money send to earthquake
IT : Standard Operating Procedure (SOP) – Part III for Making Application for Claim of Tax Exemption under Section 11(1)(C) of the Income-Tax Act, 1961 in Respect of Remittance of Money/relief Articles by Indian NGOS/charitable Organisations for Earthquake Hit People in Nepal
Eu-Ban Will Impact $1 Bn Pharma Exports From India: Pharmexcil
The European Union's ban on 700 generic drug products, based on data integrity issues found at an Indian clinical research facility where they were subjected to bioequivalence studies, would impact exports worth at least $1 billion from India, according to Pharmaceutical Export Promotion Council of India (Pharmexcil).
While the products being manufactured and marketed directly by Indian pharmaceutical companies constitute around 30 per cent of this estimated value, the products carrying the rest of the value were being sourced by global generic players from India, the Commerce Ministry agency estimates.
"We have estimated the value of the products banned by the European Union to be between $1-1.2 billion. These products are being sourced from India by global majors. Therefore, the EU decision impacts our pharmaceutical exports to the extent of around $1 billion," Pharmexcil director general P V Appaji said here today. The products marketed in Europe by the domestic players would be 30 per cent of the total value of exports impacted by the decision, he added.
According to Appaji, the Union Commerce Ministry has been reviewing the situation arising out of the EU decision and asked the Pharmexcil for the necessary feedback about the impact.
He said the Ministry was unhappy with the blanket ban since the French regulator, ANSM, which had found discrepancies in the ECG reports in its May 2014 audit itself stated that the findings should not be extrapolated beyond the clinic part of the facility.
However, Appaji did not directly respond to a question on whether the Union Commerce Ministry was planning to approach the EU with any fresh representation on this matter.
The Government of India and clinical research firm GVK BIO Sciences, which had conducted the studies on these products at its Hyderabad facility, opened dialogue with various regulatory agencies in Europe and presented more data from cardiologists as well as data from the company's internal investigations following the recommendation for suspension of these products by the European Medicines Agency (EMA) in January this year.
Source:- business-standard.com
Interest on FD wasn't taxable in hands of HUF as FD was transferred to daughters of Karta on disposa
IT: Where asset was disposed in favour of six minor daughters of Karta in form of fixed deposits, interest thereafter could not be treated as part of wealth of assessee-HUF and would not be taxable in hands of HUF
CBDT extends due date of filing wealth-tax return from July 31, 2015 to Aug. 31, 2015
IT/ILT : Section 14 of the Wealth-Tax Act, 1957 – Return of Wealth – Clarification on Extension of Due Date of Filing Return of Wealth for A.Y. 2015-16
Sec. 14A can't be invoked if no proximate cause exists between expenditure and exempt income
IT : Where assessee received dividends on mutual fund units and claimed said dividend as exempt under section 10(33), in absence of a proximate cause between expenditure incurred by assessee and tax exempt income, section 14A could not be invoked
Assessee had to substantiate its claim of non-provision of services in order to get relief from pre-
Service Tax/Excise/Customs : Mere statements that 'no service has been provided' or that 'assessee is suffering from financial hardship', without any supporting material, cannot lead to waiver of entire pre-deposit
Onions Are Here To Make You Cry Again
Just like most years, onion traders are stocking up onions and helping the prices to shoot up during the monsoon. Although, in 2013 the onion prices sky rocketed unimaginably high, the central government's adequate measures were able to keep the prices in check last year. It has almost become customary for onion prices to shoot up during the monsoon and remain abnormally high till late autumn.
Although retail prices have remained stable so far, a Mumbai-based exporter said traders in Maharashtra are stocking up heavily, anticipating a strike against market reforms likely to be initiated by the state government, as per a news report by The Economic Times.
"Other factors like increase in demand and decline in arrivals are also at play, but to a smaller extent," an exporter told the ET, requesting anonymity.
When wholesale onion prices have shot up by 50% in July over June, retail prices had touched a record high of Rs 100 per kg two years ago. In 2014, prices zoomed 35% in July over June but the government managed to suppress the price rise the next month through a series of measures.
"The traders are aware that no one can take any action against them as it is not possible to check stocks. The government is also not taking any action on the export front. It takes at least a month for the cargo to reach India after finalising the contract," the exporter told the financial daily.
Nothing unusual has happened to justify the 33% surge in onion prices in the past week, said one of the leading exporters in the country. "Some trader had some good demand, somewhere there was talk of traders going on strike, the rains haven't been so good so far and all this supported by some decline in arrival of onions," he said.
"Traders have become aggressive, jacking up the prices every day without any specific trigger. They have stocked up onions at high prices. To make money, they have to take the prices up," a functionary of Lasalgaon Agricultural Produce Marketing Committee (APMC) told the ET.
The commission agents (adtiyas) operating at the APMCs currently charge their commission from farmers. A state government appointed committee has been deliberating about charging the commission from forward traders and not from farmers. However, the committee's meeting, planned for July 24, was postponed, confirms the ET report.
With less rainfall this year in the onion growing regions, farmers have also started holding on to the crop. Most of them have either lost the kharif crop or will have to bear losses due to stunted growth in the past one month.
Source:businessinsider.in
Interest on tax refund having nexus with PE of NR in India would be assessable under article 7 of In
IT/ILT : Since international shipping profits earned by assessee did not fall or was not dealt with any other articles of Indo-Swiss Treaty, it was governed by residuary article 22 of DTAA and, therefore, applying article 22 of DTAA, income from shipping was not taxable in India
Bajaj To Export 48,000 Units To Nigeria
Country’s third largest two-wheeler manufacturer will soon send out nearly 48,000 bikes to the African country. These are good signs for the company as recently its exports had slowed down. Currently exports contribute to 47 percent of overall sales and stand at 3, 89,000 units.
With this, the company also reported a 37% rise in its net profit when compared to the last quarter. The profits are also helped by dividends coming from KTM. The Indian manufacturer has almost 50% stake of the Austrian sports bike makers.
In Nigeria, only three products are on sale which includes two-wheelers Boxer 100 and Boxer 150 and a three-wheeler RE 205. Since Bajaj has claimed that the number 48,000 includes only bikes, it is not confirmed that all of those are Boxers or not. Nigeria is the biggest market for the company in terms export and accounts for 12% of the company’s overall turnover.
Boxer is the market leader in the African nation and around 35% of its yearly exports are to Nigeria only. The company has also hiked its prices there as it aims to get more profits and also because of the devaluation of Naira (Nigeria’s currency) to US Dollar. It exported around 5 lakh units last year to Nigeria alone and always maintains a market share of above 40%.
The report did not have any significant affect on the stick prices of the company as it closed 0.90% down. Bajaj is more focussed on the sports bike segment in India and developing its 100 cc commuters for markets like Nigeria. The company is expected to launch 400 cc variants of its flagship Pulsar bikes very soon. Bajaj has benefitted from its partnership with KTM as Pulsar 200 NS is based on KTM’s Duke and RS 200 is based on the Austrian’s RC series of bikes.
Source:cartrade.com
Oil Processors, Us Body Join Hands To Promote Soya Foods
The US Soyabean Export Council (USSEC) has joined hands with the Soya Oil Processors Association (SOPA) of India to make Indians consume more soya food, though the two seem to have conflicting interests - one is seeking to boost exports to India and the other is hoping to increase the consumption of locally-produced commodity.
The two bodies signed a memorandum of understanding on Saturday to increase soya bean consumption in India, both as human food and as feed by the poultry and aquaculture industries. The Indian soya bean industry has interest in boosting the local demand as it is struggling to increase exports of soya meal. "Because of the import of cheaper soya oil in the country, our realisation from oil has reduced. As a result, soya feed, the other byproduct of soya bean processing, has become expensive, out-pricing us in the export markets," said SOPA chairman Davish Jain.
Last year, soya bean processors were not able to export their desired quantity and the industry survived on local demand.
Of the eight million tonne soya meal production in the country, only five million tonne is consumed locally. For the rest, the processors have to depend on exports. Increasing local consumption is one way for the industry to reduce dependence on export markets and that is what it is hoping from the tie-up with the US council.
The USSEC, meanwhile, is willing to spend its resources to develop demand in India because it sees the country as a big future market for the exports of US soya bean. Also, if the local demand for soya meal goes up, Indian processors will vacate their ex port markets, creating space for US producers.
For the local association, working with the USSEC involves risk of cheaper imports from the US. The US grows genetically-modified soya bean, which has higher yields than India's open-pollinated straight varieties. Both the bodies plan to work with the Centre to include soya bean food in its social welfare projects such as mid-day meal and the Integrated Child Development Services programmes, educate people about soya food and develop new soya food products.
Source:economictimes.indiatimes.com
No need to declare MRP on cement cleared to builders and Govt. as they are industrial/institutional
Excise & Customs : Builders, government and RMC (Ready-mix Concrete) producers quality as 'industrial/institutional buyers' and there is no need to declare RSP (retail sale price) on cement cleared to them
Rbi Sets Rupee Reference Rate At 64.0028 Against Dollar
The Reserve Bank of India on Monday fixed the reference rate of rupee at 64.0028 against the US dollar and 70.6143 for the euro as against 63.8916 and 70.1210 respectively as on 24 July 2015.
According to an RBI statement, the exchange rates for the pound and the yen against the rupee were quoted at 99.4348 and 51.85 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:moneycontrol.com
Interest on FD wasn't taxable in hands of HUF as FD was transferred by HUF to its daughters on dispo
IT: Where asset was disposed in favour of six minor daughters of Karta in form of fixed deposits, interest thereafter could not be treated as part of wealth of assessee-HUF and would not be taxable in hands of HUF
New entry introduced in Finance Bill to increase tax vide notice of amendments doesn't have immediat
Excise & Customs : An entry which was not there at all in original Finance Bill and was subsequently brought in vide amendment thereto, cannot be said to have been protected by declaration made under section 3 of Provisional Collection of Taxes Act, 1931; hence, said new entry would come into effect from date of enactment of bill
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