CST & VAT: Tripura VAT - Officer-in-charge of check-post had no power to seize goods under transport, since documents were produced before him and he had not even prima facie come to conclusion that documents were false or forged
Monday 17 August 2015
Govt. notifies backward areas of Bihar to provide tax incentives for setting-up of industrial units
IT : Section 32, Read with Section 32AD, of the Income-Tax Act, 1961 – Depreciation – Notified Backward Areas in Specified Districts of State of Bihar under First Proviso to Section 32(1)(iia) and Section 32AD(1)
Appellant held guilty of making stop payment request without proving that inferior quality goods wer
Negotiable Instruments Act : Where accused failed to prove that goods supplied by complainant were of inferior quality, accused was guilty of commission of offence under section 138 on dishonour of cheque issued by it in discharge of its liability towards goods supplied
Tax on expats reimbursed by parent Co. wasn't includible in operating revenue and TP analysis under
IT/ILT : Where TPO made addition to assessee's ALP for rendering software development services to its AE, since some comparables selected by TPO were improper on account of huge turnover and high RPT whereas some compares were developing their own software products, impugned addition was to be set aside
CBDT clarifies issues relating to exemption and approval of Educational Institutions
IT : SECTION 10(23C)(vi) OF THE INCOME-TAX ACT, 1961 – EXEMPTIONS – UNIVERSITY OR OTHER EDUCATIONAL INSTITUTIONS – NOTIFIED UNIVERSITY OR OTHER EDUCATIONAL INSTITUTION – CLARIFICATION ON CERTAIN ISSUES RELATED TO GRANT OF APPROVAL AND CLAIM OF EXEMPTION UNDER SECTION 10(23C)(vi)
Bangladesh Exports To Indian Market Witnessed Rise 15Pc In Fy2014-15
Bangladesh has earned $527.16m from its exports to Indian market in FY 2014-15 a rise by 15.45% compared to $456.63m in the last fiscal year as some products including textiles got duty and quota-free access, according to Export Promotion Bureau data.
Readymade garment export to the neighbouring country also increased by 8.31% to $104.25m in the year compared to $96.25m in the previous year.
Bangladesh has to compete with India’s local producers as they made same products. Besides, the Indian government patronizes local industry to boost economic growth, which caused slow RMG export growth to the neighboring country, said Khondaker Golam Moazzem, additional research director of Centre for Policy Dialogue.
He stressed on improving communication between Bangladesh’s RMG manufacturers and Indian retailers to increase bilateral trading. Besides this, he urged the government to negotiate with its Indian counterpart to lift the countervailing duty on the RMG products.
BGMEA vice president Shahidullah Azim said that RMG export growth to the Indian market was not satisfactory. Lilliput, the largest kids’ wear brand in India, did not pay $5.5m to 22 garment exporters of Bangladesh and this also discouraged RMG exports to India, which led to the slow growth.
The government needs to take measures through embassy in Delhi to ensure the payment of dues as the exporters were in the risk of shutting down their factories.
A BGMEA director said that Bangladesh has a bright export prospects in densely populated India which has a wide middle-class consumers base and that the garment exports to India were increasing due to high demands for Bangladeshi products like trousers, shirts, blouses, skirts, kids wear, cotton nightwear and jeans.
According to Exporters Association of Bangladesh president Abdus Salam Murshedy, Bangladesh’s export to Indian market has seen increase due to tariff waiver along with geographical proximity, but the growth was slow compared to the previous year. To attract consumers as well as the retailers to grab the big Indian market, Abdus Salam emphasis on organizing fairs in India.
Source:yarnsandfibers.com
Carrying out ‘seismic survey’ is a service and not works contract
CST & VAT: Tripura VAT: Assessee agreed to carry out seismic surveys for an entity to assist it in gas exploration. It used certain equipments for surveys. Since, equipments always remained in control of assessee, therefore, there was no transfer of right to use goods and, thus the contract was of service and not works contract.
Cement/steel used in construction of storage facility is eligible for Cenvat credit
Cenvat Credit : Storage is essential and is required for smooth running of factory; hence, Cement and steel used for construction of Silo meant for storage of cement bags, is eligible for credit as inputs
Suspended Customs Officer Jumps In Front Of Train
A 33-year-old Customs appraiser, working with Jawaharlal Nehru Port Trust (JNPT), reportedly committed suicide by jumping in front of a harbour line local near Khandeshwar station on Saturday morning.
Panvel GRP, who have identified the Customs official as Rishi Ranjan, recovered the body, with severe injuries, from the railway tracks between 6.30 and 7 am. A diary with handwritten notes and some printouts were found from the spot. Assistant inspector, Panvel GRP, Rahul Karbhari said the body was spotted by commuters crossing the tracks. "An accidental death report has been lodged," the officer said.
Ranjan, who had been recently posted in the imports section of JNPT, was suspended on July 29 over his alleged involvement in a case of illegally smuggled cigarettes. On the fateful day, directorate of revenue intelligence (DRI) officials had seized a container carrying cigarettes worth Rs 4.24 crore hidden in a consignment marked "trolley bags". The DRI has already arrested three other persons in connection with the case.
Ranjan had been suspended, as he was in-charge of container freight station import zone at the time. An inquiry has been on since the suspension and the deceased last appeared at the DRI office on August 12 for questioning. Reportedly, Ranjan was earlier working at Kandla port in Gujarat.
A resident of Krishna Kunj society in sector 20, Kamothe, Ranjan had married just four months ago in April this year. His wife and mother had reportedly gone to visit their relatives in Gujarat and Ranjan was staying alone at the time of his suicide. His family collected the body after a post-mortem was done at the municipal hospital in Vashi.
Source:timesofindia.indiatimes.com
Sea Demands Hike In Import Duty On Crude, Edible Oils
To protect farmers' interests and provide a level-playing field to domestic oilseed processors, industry body SEA on Monday sought increase in import duty on crude edible oil from 7.5 percent to 25 percent and on refined oil from 15 percent to 45 percent.
The import duties were last increased in December. In a memorandum submitted to the government on Monday, Solvent Extractor's Association (SEA) said, "We would like to bring to your kind notice the alarming increase in import of edible oils seriously hurting the domestic farmers and the vegetable oil refiners."
The increase in duties will protect the interest of crushers and also local farmers to sustain their interest in oilseed cultivation, the industry body said in a statement.
"The industry requested for increase in import duty on crude edible oils from 7.5 percent to 25 percent and that of refined oil for 15 percent to 45 percent," it added.
According to the SEA data, the imports of edible oils has reached a record level of over 10 million tonnes in the first nine months of the current oil year ending October 2015, as against 8 million tonnes in the year-ago period.
Total imports are expected to touch 14 million tonnes valued at Rs 65,000 crore in the entire 2014-15 oil year against last year's import of 11.8 million tonnes, it added.
About 60 percent of India's annual edible oil demand of 18-19 million tonnes is met through import, mostly from Malaysia and Indonesia.
According to the government's data, farmers have sown oilseeds in 163.79 lakh hectare till August 14 during the current kharif season that started from June, as against 160.83 lakh hectare in the year-ago period.
Source:moneycontrol.com
Yuan Devaluation Spurs India To Consider More Curbs On Steel Imports
India said it’s being forced to consider steel safeguard duties and more anti-dumping curbs as the yuan’s devaluation threatens to stoke surging Chinese shipments.
A steel import-tax increase earlier this month may not be enough of a deterrence, financial services secretary Hasmukh Adhia said. Adhia has seen the steel industry contribute to elevated bad debt in India, in part as producers struggle to compete with imports from nations such as China and Russia.
“The global lack of demand in steel is so strong that one isn’t sure how, even after this recent increase, it’s going to help,” Adhia said in an interview on Sunday in New Delhi. “We’ll have to think about other options, whether safeguard duty and anti-dumping duty can also be used.”
Import levies were pushed up after talks at the highest levels of government concluded that India must protect domestic producers for the time being, Adhia said. The industry should also spell out the need for more measures, he said. The finance and commerce ministries usually take decisions on curbs.
India raised the import tax on certain steel products to 12.5% from 10% on 12 August. The government imposed some anti-dumping duties in June. Indian mills including Tata Steel Ltd had sought higher taxes to check imports.
Indian steel imports jumped 58% to 3.5 million tonnes in the four months ended on 31 July, according to government data. In the first seven months of 2015, total exports from China expanded 27% to 62.13 million tonnes, the highest ever for the period, according to data compiled by Bloomberg.
China’s 11 August move to allow markets greater sway in setting the yuan’s level led to the biggest selloff in 21 years. That makes the flood of steel and aluminium exports from the world’s biggest producer even cheaper. “China has so much capacity,” Adhia said.
Source:livemint.com
Penalty was justified as person-in-charge of vehicle didn't produce any documents before officer
CST & VAT : Karnataka VAT - Where Investigation Officer intercepted a vehicle transporting goods of assessee and at time of interception or immediately thereafter person in charge of goods vehicle did not produce any documents before Investigation Officer, imposition of penalty upon assessee under section 53(12) was justified
SEBI amends ICDR norms; mandates issuer to accept bids in public issue only via ASBA
SEBI/INDIAN ACTS & RULES : Sebi (Issue of Capital and Disclosure Requirements) (Fifth Amendment) Regulations, 2015 – Amendment in Regulations 12, 58, 65, Schedule VIII, Schedule XI, Schedule XIII & Schedule XVI
Investment by Category I and II AIFs in shares of start-ups shall be deemed to be investment in unli
SEBI/INDIAN ACTS & RULES : Sebi (Alternative Investment Funds) (Amendment) Regulations, 2015 – Amendment in Regulation 15
Takeover code not applicable to startups that are listed without making a public issue
SEBI/INDIAN ACTS & RULES : Sebi (Substantial Acquisition of Shares and Takeovers) (Third Amendment) Regulations, 2015 – Amendment in Regulation 1
Penalty for delay in filing TDS return to be levied from date of deposit of TDS instead of due date
IT : Where assessee filed quarterly e-TDS returns belatedly because TDS could not be deposited in time due to non-availability of funds, penalty under section 272A(2)(k) could be levied only from date of paying tax to Central Government
Government Hikes Tariff Value On Imported Gold, Silver
The government on Monday raised the import tariff value on gold to USD 363 per 10 grams and silver to USD 499 per kg, taking strong cues from the global market. For the first fortnight in August, the import tariff value of gold and silver stood at USD 354 per 10 grams and USD 498 per kg, respectively.
The government on Monday raised the import tariff value on gold to USD 363 per 10 grams and silver to USD 499 per kg, taking strong cues from the global market.
The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing. The tariff value is revised on a fortnightly basis. The change in tariff value of gold and silver has been notified by the Central Board of Excise and Customs, said an official statement issued by the Finance Ministry.
The government raised the tariff value of imported gold and silver marginally taking into account the rise in global prices.
At Singapore market, prices of gold on Monday rose slightly to USD 116.70 per ounce, while that of silver to USD 15.34 per ounce. In the national capital too, gold was ruling at over Rs 26,200 per 10 grams and silver at Rs 36,130 per kg.
After declining in June, the country's gold imports jumped 62.2 per cent to USD 2.96 billion in July, as against USD 1.82 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:ibnlive.com
Rbi Sets Rupee Reference Rate At 65.2200 Against Dollar
The Reserve Bank of India today fixed the reference rate of rupee at 65.2200 against the US dollar and 72.3942 for the euro as against 65.1225 and 72.5595 respectively, last Friday.
According to an RBI statement, the exchange rates for the pound and the yen against the rupee were quoted at 102.2324 and 52.42 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:business-standard.com
Assessment carried out on basis of facts revealed in departmental audit amounts to provisional asses
CST & VAT : Tamil Nadu VAT - Where audit department on inspection found that assessee had suppressed sales of taxable scrap and thereupon Assessing Authority determined turnover, impugned assessments would be considered as revision of assessments and not best judgment assessments
ALP of interest on loans given to AE has to be fixed on basis of LIBOR
IT/ILT : In respect of loan granted by assessee to its AE located abroad, LIBOR rate of interest should be applied for determining ALP
Delisting norms not applicable to securities listed by start-ups without making a public issue
SEBI/INDIAN ACTS & RULES : Sebi (Delisting Of Equity Shares (Second Amendment) Regulations, 2015 – Amendment In Regulation 3
Only name of assessee on parcel containing smuggled goods doesn't make him a smuggler
Excise & Customs : Mere fact that speed post parcel containing smuggled goods bore name and address of assessee does not prove that assessee had smuggled such goods, especially when assessee had denied any such imports by him and there was no other evidence relating assessee to such goods
SEBI notifies norms for listing of start-ups on Institutional Trading Platform
SEBI/INDIAN ACTS & RULES : Sebi (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2015 – Amendment in Regulation 60, Schedule IV, Schedule VI & Schedule VIII; Substitution of Regulations 106W, 106X, 106Y, 106Z, 106ZA, 106ZB, 106ZC, 106ZD, 106ZE & 106ZF AND OMISSION OF SCHEDULE XIX-A
ITAT can't deny rectification just because order is challenged in High Court but is yet to be admitt
IT: If Assessee had challenged order of Tribunal under section 260A before High Court, it does not mean that power under section (2) of section 254 cannot be invoked either by assessee or by revenue/Assessing Officer
No extended period after 22 months of audit when Show Cause Notice doesn't allege suppression
Excise & Customs : Where all facts came to knowledge of department in course of audit, then, show-cause notice issued 22 months thereafter cannot invoke extended period, more so, when notice did not specify deliberate act amounting to suppression/intention to evade
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