Excise & Customs : Where, during relevant period, legal position and interpretation of unamended law and position after amendment, was in a fluid state, it would not be appropriate to levy penalty
Wednesday, 12 August 2015
Tribunal shall be made a party where it is required to defend its own order
Constitution : When a Tribunal or authority is required to defend its own order, it is to be made a party failing which proceeding before High Court would be regarded as not maintainable
Grant of minority status to educational institution doesn't lead to denial of trust's registration
IT : Merely because minority status is accorded to educational institutions run by a society, it cannot be regarded as being established for benefit of a particular religious community; registration cannot be denied on this ground
Detention of vehicle and goods carried along with all necessary documents was illegal
CST & VAT : Tamil Nadu VAT - Where assessee supplied goods from Haryana to a dealer in Tamil Nadu and driver of vehicle carrying goods was in possession of invoices as well as LR copy at time of interception of vehicle by Competent Authority at check-post and consignee TIN number was mentioned in invoices, detention of vehicle and goods was illegal
Fluctuating margin of a company over years doesn't justify its exclusion from list of comparables
IT/ILT: Where TPO made addition to assessee's ALP by rejecting comparables chosen by assessee in its TP study, in view of fact that certain comparables chosen by TPO were not found to be comparable on account of functional difference, absence of segmental details, possessing tangibles or IPRs, related party transactions etc. same had to be excluded
Repayment of loans without any identity of creditors proved that loan receipts were unexplained inco
IT : Where assessee's books of account depicted repayment of loan with no identity of creditors and assessee had not produced any material to show that to report loan further loans were availed same was to be treated as undisclosed income of assessee
India To Raise Tariffs On Some Base Metals By 2.5 Percent
India will increase the import duty on some base metals by 2.5 percent, according to a list of business on the website of the upper house of parliament on Wednesday.
Finance Minister Arun Jaitley will lay papers seeking to "increase the basic customs duty by 2.5 percent on specified goods falling under Chapter 72", the list said.
Iron and steel, copper, nickel and aluminium are among commodities listed as base matals under Chapter 72 of the Central Board of Excise and Customs.
Source:in.reuters.com
Andhra Pradesh High Court lays down principles to determine levy of purchase tax on by-products
CST & VAT : Andhra Pradesh VAT - Where assessees purchased paddy, raw dhal, soyabean seed and raw cotton from agriculturists and produced therefrom rice, dhal, soyabean oil and cotton lint, respectively and also obtained by-products, which were exempt from tax, and Assessing Authority levied purchase tax on proportionate purchase price of goods, matter was to be sent back for examination afresh in light of position of law laid down in instant case
Chinese Import Decline Hits The Indian Spinning Sector
Cotton spinning mills in northern India are planning to shut down one day a week. According to Chandigarh based Northern India Textile Mills’ Association (NITMA) that has 98 member mills that includes leading names such as Vardhaman and Trident, etc., excess spinning capacity and decline in exports this fiscal year have resulted in poor cash flow and excessive stocks.
In addition to these fiscal matters, textile policies in some southern states and those of Madhya Pradesh and Gujarat are hitting the northern spinning mills hard, stated Mr. Sharad Jaipuria, President of NITMA.
Mr. H. S. Cheema, Senior Vice President of NITMA stated that the spinning sector is under crisis and plans like shutting the production one day in a week are under serious consideration.
In a telephone conversation with this scribe today, Mr. G. Balasubramanian, Secretary General of NITMA stated India has about 10% excess spinning capacity.
According to him, “yarn exports have fallen by about 20% year-on-year in the first quarter of this year.” More importantly, imports by China have declined by about 30-40% this year creating a greater blow to the Indian spinning industry.
Source:hellenicshippingnews.com
India’S B5 Program Could Ease Crude Palm Oil Surplus In Southeast Asia: Market Sources
India’s newly launched biodiesel mandate would have limited impact on the region’s balances but could potentially help ease Malaysia’s crude palm oil surplus, market participants said Tuesday.
India began sales of B5 biodiesel blends this week at four retail outlets in New Delhi, Vishakhapatnam, Haldia and Vijayawada marketed by state-owned petroleum companies like Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum, according to local media reports.
Sales of the biofuel at the Haldia outlet started as early as June 24, serving mostly cranes and trucks operating within the port, the Times of India reported last week.
The move was largely based on a government initiative to reduce the country’s reliance on oil and gas imports and for environmental reasons.
Reactions in the region were mixed, with some market participants expressing surprise as India has limited production of palm oil and would need to import the raw material for producing biodiesel, defeating the original purpose of non-reliance on imports.
“India doesn’t have anything — they are a net importer of oils and have a food deficit so they will have to import the raw material when its economical versus the domestic feedstock,” said a trader.
In addition, palm oil is currently more attractive into the edible oils sector as opposed to biofuels prompting biodiesel manufacturers in India to look mainly at used cooking oil as a feedstock.
Other industry sources in the region felt the initial impact of the move would be muted as it remains unclear if the program would be nationwide, and as there are a fair bit of crude palm oil stocks in Southeast Asia.
“India can mop up the surplus in the region, but we don’t know the actual consumption figures from there too, and there have been no enquiries for imports as yet,” said a Malaysian producer.
As of July, Malaysia’s CPO stocks totaled 1,255,272 mt, an increase of 14% from June, while production volumes rose 2.9% to 1,815,631 mt, according to statistics from the Malaysian Palm Oil Board.
Source:hellenicshippingnews.com
Steel Shares Jump As Govt Raises Import Duty
Shares of steel companies gained with the government on Wednesday raising import duty on a range of steel products.
Tata Steel rose 3.16% to Rs.254.70, Steel Authority of India Ltd (SAIL) 2.5% to Rs.59.50 and JSW Steel Ltd 0.8% to Rs.900.30. The BSE Metal index fell 1.89% to 8,123.91 points, while India’s benchmark Sensex fell 0.36% to 27767.05 points.
Basic customs duty on flat-rolled steel products has been raised to 12.5% from 10%, Bloomberg reported, quoting a finance ministry statement.
Import duties on iron and non-alloy steel ingots, bars, rods, wires of stainless steel, semi-finished products of iron have also been increased to 10%, the report added. During 2014-15, India imported 9.3 million tonnes of finished steel, up 71.1% from a year ago.
Source:livemint.com
Risk adjustment can't be claimed without quantifying risk and its effect on adjustment of ALP
IT/ILT : TPO erred in modifying selection criteria used by assessee, i.e., salary and wages cost ratio of 50 per cent, and applying 25 per cent criteria for same, when in preceding assessment year assessee had applied similar filter and applying +/- 15 per cent range as applied by TPO in preceding year, such range came to 48.91 per cent to 78.91 per cent which was close to salary and wages cost ratio of 50 per cent applied by assessee
Ministry Of Finance Of Republic Of India : Tax Refund To Export Import Traders
The Government is initiating all steps that the exporters get their tax refunds in time manner and the timely issue of refunds has always been a matter of priority and concern for the Government. Field formations have been directed to ensure prompt and timely disbursal of drawback, rebate claims on exports and other incentives on exports, as may be available under the relevant scheme.
Details of incentives and other relief, inter-alia, being offered to exporters and importers are as under:
Duty Drawback to exporters to neutralize Customs, Central Excise Duty and Service Tax suffered on inputs/inputs services used in manufacture of export goods.
Benefit of rebate of Central Excise duty paid on exported goods is allowed under Rule 18 of the Central Excise Rules, 2002. Goods are also allowed clearance for export under bond for the same purpose under Rule 19 of the Central Excise Rules, 2002.
Refund of CENVAT credit of inputs or input services to a manufacturer who clears a final product or an intermediate product for export without payment of duty under bond or letter of undertaking or a service provider who provides an output service which is exported without payment of Service Tax, under Rule 5 of Cenvat Credit Rules, 2004.
In order to boost exports in garment sector, Government has provided various support measures. One such measure is duty free entitlement for import based on export performance, wherein manufacturers of textile and leather garments registered with their respective Export Promotion Council are allowed to import certain specified items duty free of value upto 5 per cent of the FOB value of the textile garments or 3 per cent of the FOB value of the leather garments, exported during the preceding Financial year for use in the manufacture of garments for export by such manufacturer. Similarly, the incentives are also provided to the exporters of handicrafts, leather products including footwear, handlooms, cotton and man-made textile made-ups etc.
Duty exemption schemes (Advance Authorization/Duty Free Import Authorizations and Export Promotion Capital Goods (EPCG) as well as the incentive schemes (Merchandise Export from India Scheme and Service/Export from India Schemes) extended to exporters administered by Director General of Foreign Trade (DGFT), Department of Commerce.
Rebate of whole of the duty paid on excisable inputs or whole of the Service Tax and cess paid on all input services used in providing service exported in terms of Rule 6A of Service Tax Rules, 1994.
Granting rebate of service tax paid on taxable services which are received by an exporter of goods and used for export of goods.
Allowing the holder of Vishesh Krishi and Gram Udyog Yojana (VKGUY), Focus Product Scheme (FPS) and Focus Market Scheme (FMS) scrip to pay service tax leviable on taxable services received by them by debiting in scrip.
Section 10AA of Chapter VI-A of the Income-tax Act, 1961 allows 100% deduction on profits and gains derived from export of certain articles or things subject of fulfillment of conditions prescribed therein. Further, exporters and importers are also eligible for claiming deductions in respect of profits and gains derived from such business as per provisions contained in Part D of Chapter IV (Profits and gains of business or profession) and Chapter VIA (Deductions to be made in computing total income).
This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Rajya Sabha today.
Source:hellenicshippingnews.com
U.S. Gold Jewellery Imports Post Slowest Second-Quarter Growth Since 2012
U.S. gold jewellery imports rose in the second quarter at the slowest rate in nearly three years, Thomson Reuters GFMS calculations showed on Tuesday, while imports of silver jewellery notched their biggest jump in more than a year.
The jump in silver came on low prices and a strong dollar, said Erica Rannestad, senior analyst of precious metals demand at the GFMS metals analysts team in Thomson Reuters, in Chicago.
U.S. imports of gold jewellery rose 9 percent to 14,792 kilograms (475,573 troy ounces) in the second quarter and in June were up 3 percent from a year ago, rising to 4,205 kg.
"Indian gold jewellery imports rose a healthy 9.5 percent, bucking the trend among the top three import partners," Rannestad said in an email, noting that imports from China and Italy fell. India is the biggest source of U.S. gold jewellery imports.
Gold prices fell 12 percent in the second quarter from the same period a year ago, largely accounting for the drop in jewellery store sales in terms of value, Rannestad said. Bullion prices XAU= tumbled 6.6 percent in July, the weakest monthly performance in more than two years.
Second-quarter silver jewellery imports rose by 11 percent to 393,073 kg but they fell 3 percent in June from a year ago. "The decline in silver prices is making for an increasingly price-competitive global market, and it is becoming more difficult for higher-cost players to maintain market share," she said.
Imports from Thailand, the biggest supplier of silver jewellery to the United States and one of the lowest cost jewellery manufacturers, made up 46.3 percent of silver jewellery imports in the second quarter. This is the highest share on record, Rannestad said.
U.S. platinum jewellery imports surged by 39 percent in the second quarter as prices fell to six-year lows.
Source:reuters.com
Good If Rupee Weakens To 65-65.5/Usd On Yuan Dip: Stanchart
It is a good thing if the rupee depreciates to 65.0-65.50 to the US dollar, as our currency is still over valued in REER (real effective exchange rate) terms, says Ananth Narayan, Head, Financial Markets, Standard Chartered Bank.
"The reality is India is the most over valued currency over the last two years," he tells CNBC-TV18.
"Earlier, China was leading the pack. Now that China has moved, India stands out as a sore thumb as the most over valued currency among all major currencies," he says. The weakening of the yuan has both positive and negative implications for India, he says.
"Clearly, commodity prices being low is great news for us at the macro level; at the same time, while exports won't be impacted directly, domestic industry is going to be hit," he says, highlighting tyre and steel as the sectors which could be hit the most.
On China's decision to depreciate its currency, Narayan says it is both an attempt to revive the economy as well as correct the discrepancy in the yuan value.
"With the IMF SDR (special drawing rights) report , there was a requirement for China to move to a more market determined rate.
In the past, they have been accused of a fairly blackbox approach to fixing the FX rate, and what they have done is to alleviate some of those concerns.
Through this, they have achieved a few other positive benefits. Their REER was over valued over the last couple of years, their exports are down sharply, and they have lost around USD 350 billion of reserves over the last one year because of capital outflows," he says.
"They still have USD 3.65 trillion worth of dollar reserves, and they can come into the spot market at any point of time to control the volatility there. I think around 6.5 on the yuan, you will see Chinese authorities stepping in and arresting any sharp fall," he says.
For teh rupee as well, Narayan says a steep fall is unlikely because capital flows are fairly robust. "We are seeing knee jerk reactions. It would be great to see some depreciation in the rupee," he says.
"Reality is we are overvalued in REER terms, and also there is an overhang of unhedged foreign currency exposure. I think it is a great time for importers an dpeople with unhedged exposures to buy some insurance given that the paradigm is changing," adding that it is "great news" if these factors pull the rupee down to 65-65.5 to the dollar.
Source:moneycontrol.com
Delay in passing review order may be condoned by Tribunal
Excise & Customs : Power of Tribunal to condone delay in filing appeals preferred by revenue on review extends to delay caused in passing review order; hence, delay in passing review order may be condoned by Tribunal
Signature of person on docs pertaining to liquor vends allotted by Excise department proved that he
IT: Where finding of fact that 'B' was a partner of assessee-firm doing liquor business was based on relevant documents pertaining to auction and allotment of liquor vends which all were signed by 'B', such finding could not be held to be perverse or arbitrary and assessments were to be made accordingly
No penalty on basis of survey carried out at premises of assessee without independent witnesses
CST & VAT : Rajasthan VAT - Where Competent Authority on survey checked stock register of assessee and found stock in excess and thereafter Assessing Authority on basis of survey report passed assessment order on assessee and also imposed penalty, since at time of survey there were no independent witnesses, no credence could be placed on survey report
No rejection of books just because bills of sub-contractor didn't contain address if TDS was deducte
IT : Where assessee, a civil contractor, made payments to transporters and sub-contractors in course of its business, in view of fact that assessee gave complete addresses and PANs of payees and, moreover, said payments had been made after deducting tax at source, impugned order rejecting assessee's books of account was to be set aside
Govt. reveals third list of major initiatives taken on improving ease of doing business in India
CORPORATE LAWS : Major Initiative on Improving 'ease of Doing Business' in India
Subscribe to:
Posts (Atom)