CL: Transfer of shares without compliance of section 108 is not valid in law
Thursday 27 August 2015
Sum received for permitting installation of Telecom Tower on terrace is taxable as income from house
IT : Where assessee owning terrace floor of a building, gave same on licence to a telecom company for installing tower/antenna, licence fee was to be taxed as income from house property
CBDT notifies procedure to report financial transactions & reportable accounts under FATCA
IT/ILT : Section 285BA of the Income-Tax Act, 1961, Read with Rule 114G of the Income-Tax Rules, 1962 – Furnish Statement of Financial Transaction or Reportable Account – Obligation to – Procedure for Registration and Submission of Report as Per Clause (k) of Section 285BA(1)
Principle of unjust enrichment won't apply when same amount was paid twice
Excise & Customs : Where assessee had paid same amount twice over, question of unjust enrichment cannot apply to refund thereof, as burden of said amount was borne by assessee himself and not by some other person
Using Director's surname on goods doesn't amount to using other's brand name; SSI exemption availabl
Excise & Customs : Use of director's surname on excisable goods cannot amount to use of other's brand name by assessee-company; hence, SSI-exemption cannot be denied to assessee
No disallowance of royalty paid to AE for export of goods by holding that assessee was contract manu
IT/ILT: In case of export commission paid by assessee to its AE, it is duty of Assessing Officer to determine whether assessee had derived any benefit from said payment and if any benefit had been derived, only thereupon TPO had to examine whether such payment was commensurate to comparable transaction
Govt Looking Into Import Duty, Fta Issues: Steel Minister
Expressing concern over problems being faced by domestic steelmakers due to large-scale dumping from abroad, union minister of steel and mines Narendra Singh Tomar on Thursday said the government is looking into the issues related to import duties and free trade agreements (FTAs). The minister also said the government is seized of the issues impacting the steel sector and will take a decision in appropriate time, including on import duties. The industry has been demanding further hike in import duty on steel products.
“We are closely monitoring the situation and are in consultation with the ministries of finance and commerce and the Prime Minister to decide and reconsider on these FTAs and further increase in anti dumping duties very soon to safeguard the suffering rubber and steel industry domestically,” a CII statement quoted Tomar as saying. Indian steel industry has been hit hard due to cheap imports of the metal from China as well as from South Korea, which has a FTA with India that the industry says is leading to the country exporting cheaper products to India.
While addressing at an event organised by CII, Tomar assured the rubber industry that the government is seized of the matter and is concerned about the situation. “We are concerned about the situation your industry is facing related to power and dumping by China. We are working on it to sort this out. The government is looking at the issue of FTAs and their impact on the industry,” he added.
India, the world’s third largest steel producer, saw a surge in stainless steel imports by 49% to 5.5 lakh tonnes (LT) in 2014-15 against 3.7 LT in 2013-14. In value terms, imports of the metal rose by 23% to Rs.5,918.9 crore in 2014-15, as against Rs.4,801.9 crore in 2013-14. Earlier this month, revenue secretary Shaktikanta Das had said that a decision regarding imposition of safeguard duty on import of steel will not be delayed if the Directorate General of Safeguards recommends restrictive duty.
According to experts, free trade agreements with Japan and South Korea have already resulted in cheaper imports of steel and has impacted the domestic production.
Under FTA, duties on most of the products traded between the countries are either eliminated or reduced sharply. The industry has already demanded that steel products should be excluded from the FTAs with Japan and Korea as these countries are flooding the Indian market, taking advantage of concessional duty rates at the cost of domestic firms.
In a much needed relief for domestic producers, in June the government increased the basic customs duty (BCD) on certain long and flat steel products by 2.5%. Import duty on flat steel products have been increased to 10% from 7.5%, whereas that on long steel products have been raised to 7.5% from 5%. In the same month, India had slapped an anti-dumping duty of up to $316 per tonne on imports of certain steel products from three countries, including China, to protect domestic producers from below-cost inbound shipments. A duty of $309 per tonne has been imposed on imports from China, while $316 per tonne duty has been fixed for Malaysia and USD 180 per tonne for Korea.
Source:livemint.com
Sum paid for live coverage of IPL matches isn’t FTS under India-UK DTAA
IT/ILT: Sum paid for capturing and delivering live audio and visual coverage of IPL cricket matches was not Fee for Technical Services('FTS') as broadcasters or the BCCI had not acquired technical expertise from the assessee which would enable them to produce the live coverage feeds on their own after the conclusion of IPL
AO was justified in extending time-limit for submission of Stock Transfer Forms
CST & VAT : Central Sales Tax - Where assessee sought for extension of time for submission of balance 'F' forms stating that all pending 'F' forms were from Bihar location, there was justification for Assessing Authority to invoke powers under proviso to rule 12(7) to grant extension of time for submission of balance 'F' forms
Bank account isn't a person in whose name search can be initiated, says Kolkata ITAT
IT : Bank account of assessee cannot be a person in whose name search can be initiated or such warrant can be issued
Only 'TRC' would provide India-Mauritius treaty benefits; HC rejects charge of treaty shopping
IT/ILT : Certificate of Residence issued by Mauritius is sufficient evidence for residence under DTAC
Indian Coffee Exports Surge Over Higher Demand For Robusta
Indian coffee exports have recorded a marginal increase despite a sluggish trend in the world market and a general decline in prices, thanks to the demand for robusta coffee. India exports 70 per cent of its coffee output of over 3 lakh tonnes.
The total exports stood at 2,20,113 tonnes from January 1 to August 25, as per data of the Coffee Board, up 1 per cent year-on-year. Robusta shipments went up 22 per cent while the arabica exports slumped 33 per cent. Robust demand for the premium parchment variety of robusta has offset the fall in arabica shipments. There has also been a significant increase in the re-exported coffee for use by instant coffee makers. "Robusta parchment has become cheaper with higher production. The European countries are buying it to mix it in blends as the quality is superior. Robusta parchment price is around Rs 134 a kg, only Rs 12 higher than the robusta cherry. Usually , it will be Rs 40 higher," said a senior officer of NKG Jayanti Coffee, a major exporter. The robusta parchment shipments have risen nearly 50 per cent till August 25.
For re-export, local companies prefer to import cheaper robusta coffee from Vietnam and Indonesia for processing and send it to instant coffee makers. Even after adding the freight charges, the imported coffee works out to be cheaper.
With recessionary trend prevailing in many European countries and the downturn in Chinese economy , buyers are looking for cheaper coffee. Predictably ,robusta is preferred to the premium arabica coffee. "The coffee export market is subdued at the moment and the only positive for India is the depreciation of rupee. The market is likely to look up only by December," said Ramesh Rajah, president of the Coffee Exporters Association of India.
The global coffee prices revolve around the crop in Brazil, the largest producer. But despite a lower output in the country , the prices have crashed in reaction to the depreciation of Brazilian currency. As a result, the exports from Brazil have increased. According to the International Coffee Organisation report, the domestic stocks accumulated over previous two seasons have allowed the exports from Brazil to continue unabated.
Source:economictimes.indiatimes.com
Boa To Consider, Decide The Cases For Extension Of Letter Of Permission Of Existing Eous: Dgft
The Directorate General of Foreign Trade (DGFT) has incorporated a new provision in the Aayat Niryat Forms of the Foreign Trade Policy (FTP) 2015-20, with the view to enable the Board of Approval to consider and decide the cases for extension of Letter of Permission of existing Export Oriented Units (EOUs).
“An enabling provision has been incorporated in paragraph (7) of Appendix 6-B of Appendices and Aayat Niryat Forms of FTP 2015-20,” DGFT said in a notification.
Earlier, activities pertaining to reprocessing of garments/ used clothing /secondary textiles materials / clipping/ rags/ industrial wipers/shoddy wool/ yarn/ blankets/ shawls and other recyclable textile materials were not allowed under EOU schemes.
Now, according to the DGFT notification, “Activities pertaining to reprocessing of garments/ used clothing /secondary textiles materials / clipping/ rags/ industrial wipers/shoddy wool/ yarn/ blankets/ shawls and other recyclable textile materials will not be allowed under EOU schemes. Provided that extension of Letter of Permission for an existing unit shall be decided by the Board.”
Source:knnindia.co.in
Parliamentary Panel Suggests Need-Based Import Of Natural Rubber
The Parliamentary Standing Committee on Commerce has suggested the need-based import of natural rubber depending on the gap between domestic production and consumption.
The committee headed by Chandan Mitra also asked the Centre to regulate imports in the peak season through the designated ports to ensure quality and prevent pressure on domestic prices.
Presenting its 119th report on the ‘Rubber Industry in India’ to the Rajya Sabha, the committee said the steep decline in rubber prices since last year called for an immediate intervention to arrest a further price drop. Unless necessary measures are taken, there is a possibility of growers shifting to other crops.
The Centre should firm up an efficacious price stabilisation fund scheme that compensates growers reasonably in times of price distress, the panel said.
Besides reconstituting the Rubber Board in three months, the committee recommended appointing a full-time Chairman for the board and filling the post of a Rubber Production Commissioner at the earliest.
The Home Ministry should also extend full support to the Rubber Board in promoting rubber cultivation in the Left wing extremist affected states such as Andhra Pradesh, Chhattisgarh, Jharkhand, Odisha, and West Bengal.
There were also suggestions to broaden the role of the Rubber Board as a regulatory body and development agency. This would bring synthetic rubber and reclaimed rubber within its ambit to ensure balanced development of the industry.
Source:thehindubusinessline.com
India's Palm Oil Imports To Hit Record 10 Mln T As 'Producers Dump' At Discount-Ruchi Soya
India's overseas purchases of palm oil in the year starting November are set to rise nearly eight percent to a record 10 million tonnes as producers dump the tropical oil at steep discounts, key importer Ruchi Soya said on Thursday.
Higher purchases by India, the world's top importer of cooking oils, could support benchmark Malaysian palm oil futures which are trading near their lowest level in 6-1/2 years due to soft prices and concerns over China.
"India has become the dumping ground for Indonesian and Malaysian palm oil," said Nitesh Shahra, president of the refinery division of Ruchi Soya, the country's biggest edible oil refiner.
"Due to lower prices and depreciating ringgit, in dollar terms palm oil prices have fallen sharply and it has become very attractive for buyers," Shahra told Reuters on Thursday. A weak Malaysian ringgit makes palm cheaper for offshore buyers. In dollar terms, Malaysian palm prices have fallen around 30 percent since a year ago.
In the current marketing year ending October, India's palm oil imports are likely to jump 16 percent to 9.3 million tonnes, or accounting for nearly half the output of the world's second biggest producer Malaysia.
"The spread between soyoil and palm oil has been consistently widening in the last few weeks," said Shahra, adding the discount had widened to $150 per tonne for spot delivery and September and October shipments were above $200. "At this level other oils can not compete with palm oil."
India also buys soyoil from Latin America and a tiny amount of sunflower oil from the Black Sea region. India's soyoil imports in the current year to October are likely to rise 45 percent to a record 2.9 million tonnes due to attractive prices in the first half, said Shahra.
Total edible oil imports in the next marketing year are expected to rise 7.1 percent to 15 million tonnes, after a likely rise of nearly 21 percent in the current year, he said.
Sunflower oil imports would remain steady next year at around 1.5 million tonnes as the premium over other oils has risen in last few months, he added.
Malaysian palm oil futures have been declining since June and hit a 6-1/2 year low of 1,863 ringgit a tonne this week. Shahra expects prices could drop another 6 percent from the current level of 1,916 ringgit to 1,800 ringgit if inventories rise further due to poor demand from biodiesel industry.
"Due to a drop in crude oil prices, there are few takers for palm oil from biodiesel industry. China has been going through economic turbulence," he said.
Source:reuters.com
Disclosure of lesser profits than presumptive income without any tax audit would be deemed as escape
IT : Where assessee had not declared income from his business at 8 per cent of gross receipt in accordance with provisions of section 44AD and return of income which was also not accompanied by audited accounts was processed under section 143(1)(a), Assessing Officer had rightly formed a belief that income chargeable to tax had escaped assessment
Depreciation disallowable when presumptive tax scheme is applicable and not when income is computed
IT: Where assessee's gross receipts exceeded Rs. 10 crore, provision of section 44AD(2) would not be applicable and Tribunal was justified in determining net profit rate of current year on basis of that past years
Rupee Appreciates Against Us Dollar
Snapping its losses from the previous session, the rupee appreciated 29 paise to 65.86 against US dollar in trade today at the Interbank Foreign Exchange due to a decrease in dollar demand from importers. The domestic currency had closed at 66.09 in the previous session.
The currency was boosted after the Reserve Bank of India Governor Raghuram Rajan said he was not in favour of depreciating the rupee and joining a global wave of monetary measures that have weakened currencies, according to a newspaper interview on Wednesday.
The comments, in an interview with The Economic Times, reiterate Rajan's frequent criticisms of the competitive devaluations he has said are occurring globally because of actions taken in the euro-zone, Japan, and most recently China.
Earlier on Wednesday, ratings and research firm Crisil said there is a two-third chance that the rupee can touch the level of 64 against the US dollar by
March-end 2016 while there is a one-third chance it may reach 67 per dollar.
"Crisil Research, in the base case scenario, expects the rupee to appreciate from the current levels of 66.1 as of August 25 to settle at around 64 by March
31, 2016," it said in a statement.
The US dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was sharply lower by 0.2 per cent at 95.12.
Source:economictimes.indiatimes.com
No evasion penalty if there was conflict of judicial opinion and matter was settled only after judgm
Excise & Customs : When there was conflict of judicial opinion before issue stood settled by judgment of Supreme Court, it is not a case where evasion penalty should be imposed
TPO can't compare 'Gas lift valves' with general valve which is a consumer product, says Ahmedabad I
IT/ILT : Matter was remanded to TPO for fresh consideration where TPO, while conducting transfer pricing study, compared consumer product manufactured by assessee with industrial product of tested party which would not give a true picture of profit
Damages deducted by service recipients from amount payable to service providers will form part of ta
Service Tax : Deductions made by service recipient from amount payable to service providers towards damages payable by service providers for damages caused to properties of service recipients, will form part of value of taxable value
Interest was deductible if borrowings were made to subscribe to right's issue of another Co. to reta
IT: Interest paid on amount borrowed to subscribe rights issue of another company E in order to retain control on it has to be allowed under section 36(1)(iii)
SEBI proposes to relax open offer obligations under takeover code
SEBI : Discussion Paper on Review of Policy Relating to Forfeiture of Partly Paid-Up Shares – Amendment in Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
Grant received for survey doesn't amount to service if survey report isn't supplied to Govt.
Service Tax : Grants received from Government towards reimbursement of expenses incurred for survey, etc. does not amount to 'service', if 'survey report' thereof is retained by assessee and not supplied to Government
Assessee liable to penalty on declaration of NRE gifts during survey as he failed to prove genuinene
IT : Where assessee offered NRE gifts only after survey as income in revised return but he was not able to prove genuineness of NRE gifts and there was no explanation regarding non-disclosure of same in original return, initiation of penalty proceedings was justified
Supply of customized product which can't be sold in open market is works contract
CST & VAT : Tamil Nadu VAT - Where finished product supplied by dealer to a particular customer was not a commercial commodity in sense that it could not be sold in market to any other person, transaction was only a works contract
Non-discussion of inquiries made by AO in assessment order doesn't show that his order was erroneous
IT: Where Assessing Officer passed assessment order after cetain queries from assessee, mere non-discussion or non-mention thereof in assessment order could not lead to assumption that Assessing Officer did not apply his mind; invoking of revision proceeding under section 263 on said ground was unjustified
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