SEBI/INDIAN ACTS & RULES : SEBI (Stock Brokers And Sub-Brokers) (Amendment) Regulations, 2015 – Amendment In Regulation 2, Schedule V & Schedule Vi And Insertion Of Regulations 10E & 18C
Tuesday, 8 September 2015
Petitioner convicted for cheque dishonour as cheques were issued to pay off debt and weren't stolen
Negotiable Instruments Act: Where it was proved that cheque was issued by accused to complainant in discharge of liability and plea of accused regarding cheque being stolen was found to be false, accused was to be convicted under section 138 for dishonour of said cheque
Bubble gum and Chewing gum classifiable as different commodities under Excise
Excise & Customs : 'Bubble gum' and 'Chewing gum' are different commodities; hence, 'Bubble gum' cannot be classified as 'Chewing gum' under Heading 17041000; 'Bubble gum' is a 'sugar confectionary' and classifiable under sub-heading 1704.90
Purchase of agricultural land in name of wife won't allow sec. 54B relief
IT: Where assessee had established that he had been using land for a period of two years immediately preceding date on which he transferred same, exemption under section 54B was to be allowed
HC sets aside reassessment initiated due to payment of sugarcane above its price fixed by Govt.
IT : There being no failure on part of assessee to disclose fully and truly all material facts necessary for its assessment, reopening of assessment beyond four years from end of relevant year on ground that assessee had paid more cane price than price fixed by Govt. under Sugar (Control) order which was nothing but distribution of profit resulting in escapement of income, was without jurisdiction
ITAT withdraws adverse remark against ICAI and its members; it conveyed unintended message to public
IT : The Tribunal had made certain observations about CA profession, the conduct of students pursuing the CA courses and also about the ICAI in its order. ICAI was of the view that such observations of ITAT had been viewed by public at large that ITAT had found fault with conduct of ICAI. Thus, ICAI filed miscellaneous application for removal of such observations. ITAT was of the view that such observations had not conveyed the intended message, thus, it replaced that paragraph (containing such
Need More Safeguards Before India Uranium Exports: Aussie Panel
Australia should not sell uranium to India until the South Asian giant establishes an independent nuclear regulator, a parliamentary committee recommended on Tuesday.
Prime Minister Tony Abbott and his Indian counterpart Narendra Modi inked a long-awaited pact for Australia to sell uranium to India in September last year, in a bid to ease the country's power crisis and help provide clean energy to its population.
But parliament’s treaties committee, which has a majority of members from the governing Liberal-National coalition, called for more safeguards on the landmark energy deal between the two countries.
The panel further said India should implement certain measures to strengthen safeguards and nuclear non-proliferation. The recommendations include Australia helping India to "make genuine disarmament advances, such as signing the Nuclear Test Ban Treaty".
It noted that recent checks by renowned bodies indicated that India’s nuclear safety standards were "not as high as they should be".
"Because of this, the committee has recommended that Australian uranium not be sold to India until the Indian government has established a nuclear regulator with statutory independence and safety inspections of Indian nuclear facilities that meet best practice standards," the panel said.
It said other concerns – such as the tracking and accounting of nuclear material so it would not be diverted for military use – had been addressed by the Australian government's safeguards agency ANSO, which monitors the proliferation of weapons of mass destruction.
Australia is the world's third-biggest uranium producer and the parliamentary report said the domestic sector would enjoy a huge boost if the agreement is ratified, with the industry and the number of people employed in it doubling in size.
Export revenue too would increase by an estimated Aus $1.75 billion (US$1.22 billion), the report said.
Australia had long refused to export uranium to India as it has not signed the Nuclear Non-Proliferation Treaty. It reversed its stand in 2012 as it sought to improve ties with the growing nation.
India is heavily dependent on coal and has been struggling to meet rising energy demand as the economy booms and the middle class expands.
Source:- hindustantimes.com
Dgft Eases Norms For Sugar Exports
Relaxing norms for sugar exports, the Directorate General of Foreign Trade (DGFT) has done away with the registration requirement with the Commerce Ministry.
"The requirement of registration of quantity with DGFT for export of sugar has been dispensed with," Director General of Foreign Trade (DGFT) said in a notification.
Earlier, prior registration of quantity with DGFT was mandatory.
At present, the exporters have to take RCs from DGFT, which are issued for a maximum 50,000 tonnes.
Further, export of organic sugar without any quantity limits, will be permitted till the time export of sugar is “Free”.
“Such export will be subject to the condition that the sugar should be duly certified by APEDA as being organic sugar,” it said.
Source:- knnindia.co.in
Dept. couldn't allege that input-supplier was bogus when supplier had filed returns and paid duty
Cenvat Credit : Where input-supplier had filed returns and had paid duty during relevant period and returns were assessed by department, then, so as to deny credit to buyers of said inputs, it could not be concluded that input-supplier was non-existent
No reassessment as AO failed to show that society had undisclosed income from business promotion of
IT: Where Assessing Officer found that assessee-society allowed certain outside parties to utilize premises of society for promotion of business activities of such outside parties for pecuniary consideration, but could not prove that assessee failed to disclose said income, reassessment was not justified
Falling Rupee To Benefit Indian Apparel, Fabric Exporters
Indian apparel exporters are likely to reap benefits of depreciating rupee against the dollar. Rupee has declined more than currencies of competing countries such as China, Vietnam and Bangladesh.
Since Chinese currency – yuan – was first devalued on August 10, rupee has recorded its sharpest depreciation among its competitors including China, Vietnam and Bangladesh. Since August 10, rupee has depreciated by 4.63% to 66.83, while yuan (renminbi) is down 2.51% to 6.37 against the dollar as of Monday. Among other competing countries, Vietnamese dong slumped by 2.96% to 22468 against the dollar on Monday from 21823 dong on August 10.
On the other had, Bangladesh's currency appreciated by a negligible 0.06% to 77.73 on Monday against the dollar from 77.78 on August 10.
“Indian apparel will be more competitive. The quantum of competitiveness, however, would depend upon relative currency movement of the major apparel exporters such as China, Bangladesh and Vietnam,” said Rahul Mehta, President, Clothing Manufacturers’ Association of India (CMAI).
Meanwhile, overseas buyers would immediately start re-negotiating terms of existing contracts.
| Currencies movement versus dollar | |||
| Currencies | 10-Aug | 7-Sep | Variations (%) |
| Indian Rupee | 63.87 | 66.83 | (-)4.63 |
| Vietnamese Dong | 21823 | 22468 | (-)2.96 |
| Chinese Renminbi (Yuan) | 6.21 | 6.37 | (-)2.51 |
| Bangladeshi Taka | 77.78 | 77.73 | 0.06 |
| Source : Bloomberg, On Aug 10, China devalued its currency first this year | |||
According to industry sources, drafts of new contracts mention renegotiation clause if rupee depreciates beyond 2-3%.
An Icra study also says that the depreciation in rupee would benefit apparel exporters. But it adds that as yuan has also depreciated and given that China enjoys dominant position in international export markets, India would see increased pricing competition which will affect the profitability of Indian exporters.
“However given that the rupee has depreciated more than that of other competing countries, and India’s share in overall trade is relatively small, we expect the export volumes may not be impacted severely. Fabric exports, on the other hand, are geographically well diversified as against other segments in textile exports. Given the fragmented nature of India’s fabric industry, the Indian exporters will require to pass on the benefits of depreciated rupee by way of lower dollar price,” said the study.
India’s cotton exporters would see improved competitiveness, being the second largest exporter of the natural fibre after the United States.
Nevertheless, as China is the largest market for both cotton and cotton yarn exports from India, the higher devaluation of China’s Yuan will require Indian exporters to offer lower dollar prices for these products to maintain competitive prices in yuan terms.
Meanwhile, Cotton Textiles Export Promotion Council (Texprocil) has urged the government to extend benefits for garments exporters to help them compete with players in the countries where India has free trade agreements (FTA).
R K Dalmia, chairman of Texprocil, said that considering the infrastructural disabilities, cascading effect of un-rebated taxes, high cost of inputs and preferential benefits granted to our competitors, the government has to play an important role by continuing the export benefits for some more time.
"The emergence of mega trade agreements being promoted by United States of America and the European Union amongst themselves and among other key trading partners like Korea, Vietnam and Japan also pose challenges to countries like India. It therefore would be best if India takes an integrated approach rather than an ad-hoc approach while negotiating new FTA or re-negotiating old ones," he added.
Source:- business-standard.com
India Considers Safeguard Duty On Steel After Imports From China, Japan Surge
An Indian government body has found evidence that rising imports of some hot-rolled steel products from China, Japan, South Korea and Russia pose a threat to the domestic industry, potentially paving the way for an import levy known as a safeguard duty.
The Directorate General of Safeguards said on Monday it would look into whether a duty was needed after the Steel Authority of India, JSW Steel and Essar Steel filed an application in July seeking safeguard measures for a four-year period.
The steel makers have been pushing for a safeguard duty instead of an increase in an existing import tax because a safeguard duty would also apply to companies in Japan and South Korea. India has free trade agreements with these countries and gives them import duty concessions.
"The application has been examined and it has been found that prima facie increased imports of ("hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more) have caused or are threatening to cause serious injury to the domestic producers," Director General Vinay Chhabra said in a notice.
Imports made up 5 percent of the country's total production of these steel products in the year to end-March 31, 2014. But they have increased since then and are on course to hit 13 percent this fiscal year, the companies seeking the safeguard duty told Chhabra.
Indian steel minister Narendra Singh Tomar said late last month the government was concerned about the problems faced by steel companies due to "dumping" by free trade agreement countries.
Total steel imports into India jumped 72 percent in the last fiscal year to 9.3 million tonnes. South Korea and Japan, which pay duties of less than 1 percent due to the free trade agreements, together sent 3.5 million.
The notice said any other party to the investigation who wishes to be considered as an interested party may submit its request to Chhabra's office within 15 days.
Source:- Reuters.in
Rbi Sets Rupee Reference Rate At Rs 66.6060 Against Dollar
MUMBAI: The Reserve Bank of India today fixed the reference rate of rupee at 66.6060 against the US dollar and 74.6054 for the euro as against 66.7445 and 74.2733 respectively, yesterday.
According to an RBI statement, the exchange rates for the pound and the yen against the rupee were quoted at 102.3002 and 55.60 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:- economictimes.indiatimes.com
Capitalization of scientific research exp. in books isn't necessary for sec. 35 deductions
IT : For applying provisions of section 35, it is sufficient that assessee incurred expenditure of a capital nature on scientific research and there is no requirement that such an expenditure should be capitalised in books of account
AO can't rely on contrary views taken by other High Courts if same issue is decided by jurisdictiona
: Where issue whether petitioner educational trust was entitled to corpus donation and, resultantly, to depreciation, had been decided by jurisdictional High Court, Assessing Officer was bound by said order without taking any stand that High Courts of other States were taking different view
HC didn't interfere with SCN proposing to disallow input credit since factual adjudication was requi
CST & VAT : Tamil Nadu VAT - Where Assessing Authority issued on assessee a notice proposing to disallow input tax credit for assessment years 2011-12 to 2013-14 for reason that selling dealers had not filed their returns and had not paid tax and thereupon assessee filed writ petition, since factual adjudication was required, interference with show cause notice should not be done
Mere deduction of income from pre-operative expenses won't attract concealment penalty
IT: Wrong deduction of an amount for computation of income could not be equated with concealment and it would not amount to furnishing of inaccurate particulars of income or concealment of income so as to attract penalty under section 271(1)(c)
IRDA revises templates for filing Financial Statements for F.Y. 2014-15
INSURANCE : Submission Of Returns For F&A Life Through Business Analytics Project (BAP) Module
Payment of dividend to foreign service recipient can't be deemed as repatriation of export proceeds
Service Tax : Declaration and repatriation of dividends by service provider to foreign service recipient is not equivalent to repatriation of consideration for export of services and accordingly, export benefits cannot be denied
No rejection of books merely due to existence of some self-made vouchers of exp.
IT: Mere fact that some expenditure was supported with self made vouchers can never be reason enough to reject books of account as a whole
Govt. panel suggests reforms for curbing mis-selling and rationalizing incentives in financial produ
REPORTS & GUIDELINES : Report of the Committee to Recommend Measures for Curbing Mis-Selling and Rationalising Distribution Incentives in Financial Products
Populated Printed Circuit Boards are classifiable as 'parts' and not as 'other apparatus'
Customs : Populated Printed Circuit Boards (PPCBs) are classifiable under Heading 8517.90 as 'parts' and not as 'other apparatus' under Heading 8518.30 or 8517.80
Failure to comply with notice under secs 142(1) and 143(2) would invite best judgment assessment and
IT: Where assessee filed return disclosing net profit on estimated basis and it had failed to produce accounts, etc. as required under section 142(1) and had also failed to comply with all terms of notice issued under section 143(2), assessment made by Assessing Officer under section 143(3) was bad in law and he was required to make best judgment assessment under section 144
Govt. panel suggests abolition of STT and shift to residence-based taxation regime
REPORTS & GUIDELINES : Report Of The Standing Council On International Competitiveness Of The Indian Financial Sector
Govt. Cos. producing Defence Equipments are exempted from certain disclosures in P&L a/c
COMPANIES ACT, 2013 : Section 129 of the Companies Act, 2013 – Financial Statement – Notified Paras Relating to Additional Information of General Instructions for Preparation of Statement of Profit and Loss in Schedule Iii of Said Act not to Apply to Government Companies Producing Defence Equipment Including Space Research Subject to Fulfilment of Specified Conditions
Now trade payable to be bifurcated into outstanding dues of MSMEs and others in balance sheet
COMPANIES ACT, 2013/AAA/INDIAN ACTS & RULES : Companies Act, 2013 – Alteration in Schedule III of Said Act
No recovery can be made without passing assessment order
CST & VAT : Tamil Nadu VAT : When there is no assessment order or notice issued, notice of recovery/demand of cash amount is wholly untenable and illegal
Block assessment treated as time-barred as it was made on basis of old 'Panchnama'
IT: Where no further search was conducted after 13-1-1998, it was panchnama of 13-1-1998 which was relatable to conclusion of search and not panchnama of 6-2-1998, assessment order passed by Assessing Officer was beyond period of limitation
Customs Duty is leviable on actual import irrespective of quantity shown in bill of lading
Customs : Customs duty is different from purchase tax and is leviable only on quantity actually imported and entered for home consumption and not on quantity stated in bill of lading; therefore, where goods actually received are lesser than quantity stated in bill of lading, duty would be leviable only on value of goods actually received
Harvesting and transporting sugarcane from fields to sugar factory aren't 'manpower supply services'
Service Tax : Activity of harvesting and transport of sugarcane from fields to sugar factory does not amount to 'manpower supply services'; in fact, it amounts to 'procuring or processing of goods belonging to client' and service tax is payable on supervision charges under 'Business Auxiliary Services
Now trade payable to be bifurcated into outstanding dues of MSMEs and others in balance sheet
COMPANIES ACT, 2013/AAA/INDIAN ACTS & RULES : Companies Act, 2013 – Alteration in Schedule III of Said Act
Comparable rejected as it failed to satisfy employee cost filter of 15% as it was outsourcing its wo
IT/ILT : Where assessee was rendering software development services to its AE and having relatively low turnover, lesser intangibles, companies having functional dissimilarities, huge turnover, significant intangibles, etc. would not be acepted as comparables while determining ALP
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