FEMA/ILT : Trade Credit Policy – Rupee (INR) Denominated Trade Credit
Thursday, 10 September 2015
Writ filed against confiscation order under PMLA dismissed as there was no violation of principles o
PML : Writ petition filed against confiscation order passed by adjudicating authority would not be maintainable when alternative efficacious remedy of appeal was available to petitioner under section 26
MCA releases new consolidated form for filing of financial statements in XBRL format
COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015
Water and electricity charges collected during construction period are includible in value of constr
Service Tax : Charges for water/electricity/document verification, etc. collected by builders during construction period, are prima facie includible in value of construction services, as they are part of construction activity and are therefore, liable to service tax
Indian ladies usually possess the quantity of gold jewellery as was found in search; no additions un
IT : Where details of properties had already been disclosed to department under VDIS, addition on account of unaccounted investments made in immovable properties was to be deleted
AO can't make reference to TPO for computing ALP if no assessment proceedings are pending
IT/ILT: When no assessment proceedings were pending in relation to relevant assessment year, Assessing Officer could not have made a reference to TPO under section 92CA(1) for purposes of computing arm's length price in relation to international transaction
No sec. 14A disallowance if taxpayer has not earned any exempt income in that year, rules Delhi HC
IT : Section 14A will not apply if no exempt income is received or receivable during the relevant previous year.
No withholding tax on wrong credit entry for royalty if payment of same is barred by DIPP guidelines
IT/ILT : Indian wholly owned subsidiary not liable to deduct TDS u/s 195 on credit entry of royalty payable to foreign parent company where payment of the same is barred by FDI Guidelines issued by DIPP and credit entry is reversed.
Trace a VAT defaulter and get reward of 10 lakhs from DVAT dept.
VAT : Introduction of Reward Scheme for Informers Providing Vital Inputs to Check and Detect Vat Evasion in Delhi
Construction of classrooms and hostels for an educational institution is entitled to service-tax exe
Service Tax : Even assuming that education is an industry, exemption to 'civil construction services for educational institutions' cannot be denied if said constructions are used other than for commerce/industry
Exemption available on captive consumption of 'parts' can't be availed when such parts are sold as s
Excise & Customs : Where parts are exempt only if used with factory of production thereof for further manufacture, such exemption meant for captive consumption cannot be extended to a case where parts are sold by assessee
India May Turn Out To Be Net Importer Of Iron Ore For Second Year
India’s reliance on foreign iron ore is set to run into a second year, making the case for court-mandated caps on domestic production to be lifted, according to the nation’s mining lobby.
Imports may total 10 million tonnes in the year ending 31 March, R.K. Sharma, secretary general of the Federation of Indian Mineral Industries, said in an interview this week. At the same time, exports are slumping due to government taxes on shipments and the collapse in international prices for the steel-making material, he said.
It’s a stark turnaround from three years ago, when India was the third-biggest exporter of iron ore, able to satisfy demand from a steel industry ranked fourth largest in the world and sell its surplus of low-grade ore to China at a time when prices were double or triple where they are now.
India’s steel producers have faced raw material shortages since 2011, after courts found illegal iron ore mining and imposed successive bans in the top producing states of Karnataka, Odisha and Goa. While the bans have since been lifted, the states are subject to output caps. India produced 129 million tonnes of iron ore in 2014-15, down from 207 million tonnes in 2010-11, according to federation data.
“The restrictions on mining are hurting the steel industry, especially in Karnataka. We will have to import high grade iron ore to feed steel plants,” Sharma said by phone from New Delhi. The restart of some mines should cut imports from last year’s 12.1 million tonnes, he added.
Sharma expects exports this year at 5 million tonnes, down from 7.3 million tonnes in 2014-15 and a fourth year of decline.
Iron ore prices slumped in July to their lowest level in at least six years as major miners in Australia and Brazil ramped- up production to win market share even as growth in China, the world’s biggest steelmaker, slowed. India bears the additional burden of royalty taxes and export duties of 10 percent on lower grade ore, and 30% on higher grade material, Sharma said.
“For exports, there is not much scope, as prices are at rock bottom and there are hardly any buyers,” he said. While the coastal state of Goa, traditionally an export hub, prepares to restart mining in October, progress could be slow as producers clear operational hurdles such as draining water from mines idled for three years, he said.
Benchmark ore with 62% content at Qingdao rose 1.3% to $58.18 a dry tonne on Wednesday, according to Metal Bulletin Ltd. The raw material sank to $44.59 on 8 July, a record low for the price dating back to May 2009. It peaked at $191.70 in 2011.
Source:livemint.com
Australia To Export Uranium To India By Listing Conditions Like Setting Up Of Independent Nuclear Regulator
An Australian Parliamentary Committee has given a cautious go ahead to its government to export uranium to India by listing a set of conditions including setting up of an independent nuclear regulator in this country, separation of Delhi's civil and military nuclear facilities and allowing safety inspections for transfer of yellow cake, exactly an year after the two sides signed historic civil nuclear deal.
As Delhi and Canberra hopes to conclude administrative arrangements by year-end for transferring uranium from Australian mines to Indian nuclear reactors the Australian Parliamentary committee's recommendations could further delay actual supply of yellow cake.
The Australian Parliament's Treaties Committee recently tabled a report in the House on the uranium deal with India, cautiously favouring it but with few recommendations including that India should be encouraged to sign the Comprehensive Test Ban Treaty (CTBT). The report has for the first time discussed several issues including the uranium export to a nation which is not party to the nuclear Non-Proliferation Treaty (NPT).
India is not a signatory of the NPT nor CTBT and has no intentions of signing as Delhi considers them discriminatory in nature.
Australian High Commission spokesperson in Delhi while sounding optimistic reacted cautiously to the development. "The Australian Government notes the Joint Standing Committee on Treaties (JSCOT) finds the Australia-India nuclear cooperation agreement takes a "prudent and balanced approach" to dealing with the supply of uranium to India," the spokesperson told ET.
Bringing the agreement into force and making it possible for exports to go ahead are priorities for the Government, the spokesperson said, adding, the Australian Government will examine the findings of JSCOT, which has conducted a rigorous review of the agreement signed before Prime Ministers Modi and AbbottBSE 1.34 % last year, and respond as soon as possible.
Eyeing to prevent Australian uranium to be used in nuclear weapons, the committee has made six recommendations. It has recommended that the bilateral treaty only be ratified if India manages to achieve the full separation of civil and military nuclear facilities, and that the country establishes a new, fully independent, nuclear regulatory body. It also recommends the International Atomic Energy Agency verify that inspections of India's nuclear facilities live up to international standards.
The merits of selling uranium to India were being examined by experts as part of the Treaties Committee's inquiry into the Government's proposal.
The report said Australia must commit to "significant diplomatic resources to negotiate a fissile material cut-off treaty."
The report, however, noted that uranium sales to India would boost Australia's uranium mining industry and mining industry in general. "To begin with, the quantum of uranium involved could easily double the size of the uranium mining industry in Australia, bringing significant export revenue, and business and employment opportunities at a time when commodity prices for other mining exports are slowing the pace of growth in Australia's mining industry," it said.
"For India, the significance of the proposed Agreement is possibly even greater. As an emerging world power with a considerable shortfall of generating capacity, nuclear powered electricity generation will grow as one of a number of generating sources selected because of their low carbon emissions," the report noted.
Australian authorities estimate India's uranium import could grow up to 2,000 tonnes a year, valued at 200 million dollars. Australia holds about a third of the world's recoverable uranium resources, and exports nearly 7,000 tonnes a year.
According to Chair of the Australian Uranium Council, Mark Chalmers, India is going to need "a lot" of uranium. "Australia can certainly increase its uranium production, probably two or threefold from what it's currently producing. Maybe even more than that."
Source:economictimes.indiatimes.com
SEBI directs stock brokers and DPs to comply with 'FATCA'
SEBI : Reporting Requirement under Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS) – Guidance Note
ITAT grants stay on prosecution of assessee as outcome of appeal would have direct bearing on such p
IT: Where revenue had not launched prosecution against assessee in any criminal court, stay application filed by assessee for keeping in abeyance launching of said prosecution proceedings was to be granted
Dgft Launches Online Training Pgrm For Imports, Exports
Commerce Secretary, Ministry of Commerce & Industry, Wednesday launched "Niryat Bandhu @ Your Desktop" an online certificate programme in export import business under the Niryat Bandhu Scheme of the Directorate General of Foreign Trade (DGFT), Department of Commerce.
The objective of the Niryat Bandhu Scheme is to reach out to the new and potential exporters and mentor them through orientation programmes, counselling sessions, individual facilitation, etc., for being able to get into international trade and boost exports from India.
More than 18,000 people were given orientation on export import business under the Scheme during the financial year 2014-15. As part of Foreign Trade Policy 2015-20, the Department of Commerce has decided to galvanize Niryat Bandhu Scheme and reposition it to achieve the objectives of "Skill India".
Additional Secretary, R. R. Rashmi, Director General of Foreign Trade, Anup Wadhawan, Additional Director General of Foreign Trade, D.K. Singh and other officers of Department of Commerce and DGFT were present during the launch.
With this objective in view, the DGFT has now collaborated with Indian Institute of Foreign Trade (IIFT), a national centre of excellence for development of human resource in the field of international trade management, to launch this innovative online programme for exporters and entrepreneurs.
This online programme would enable them to learn the essentials of export import business from the comfort of their homes, through direct live transmission of the lessons on their desktops. The sessions would be followed up by online question answer sessions where they can address their concerns with reputed experts from IIFT. A digital resource library shall also be available to them online. This programme would serve the twin objective of 'Digital India' and 'Skill India'.
The first course with a capacity of 60 participants begins from the 1st week of October, 2015. The course comprises 20 sessions of 2 hours each between 6 p.m. to 8 p.m. It is planned to have a similar programme every month for a batch of 60 participants. On successful completion of the programme the participants would be awarded a certificate jointly by the DGFT and IIFT.
Source:smetimes.in
Govt Nod For Gold Bonds, New Monetization Scheme
The government on Wednesday cleared two moves meant to reduce the import of gold. While the first entails the issue of gold bonds that individuals can invest in instead of buying it in physical form, the second is the Gold Monetization Scheme or a new deposit tool meant to help people earn returns on the precious metal lying idle in bank lockers. The gold deposited through this scheme will be re-circulated in the economy, helping cut imports.
Both the proposals were announced in the last Budget . But the returns that the two instruments will offer will only be announced after a few weeks. As a result, investment consultants are advising people to wait for the details to come out.
India is among the top two markets for gold with the demand for bars and coins estimated at 300 tonnes annually as households have traditionally seen it as a safe investment. But the high demand and large quantities of imports distort the trade numbers and put pressure on the current account deficit and, in adverse situations, impacts the exchange rate.
As a result, the government announced sovereign gold bonds, which can be purchased by resident Indians with annual cap on investment of up to 500 grams per person. The bonds will be in denominations of 5, 10, 50 and 100 grams and will earn interest, which could be floating or at a fixed rate. So, instead of buying gold, you buy the bonds and on redemption, the amount will be transferred to your bank account.
When it comes to the price of the yellow metal, the government said it would be based on a reference rate fixed by RBI. The bonds will have a tenure of five-seven years and will be sold through banks, post offices, non-banking finance companies and agents hawking National Savings Certificate (NSC).
Just as gold is mortgaged during tough times, the bonds can be used as collateral for loans and will be traded on exchanges. In a statement, the government said the exemption from capital gains would be considered in the next budget with the benefit of indexation available to investors.
"The deposit will not be hedged and all risks associated with gold price and currency will be borne by GOl (government) through the Gold Reserve Fund. The position may be reviewed in case Gold Reserve Fund becomes unsustainable," an official statement said.
If the move to issue gold bonds is meant to wean away buyers of the metal in physical form, the decision to launch a revamped gold monetisation scheme is aimed at tapping into vast quantities lying with households although similar schemes have failed to generate interest in the past.
Unlike gold lying at home, the amount deposited under the Gold Monetisation Scheme will fetch interest, much like a savings bank account, although the returns will be far lower at 1.5-2%. But on the flip side, the scheme is targeted at individuals who are willing to deposit a minimum 30 grams.
You will need to get a purity certificate from an approved Assaying and Hallmarking Centre and open a Gold Savings Account. You will then deposit the gold with a bank -- which will transfer it to a warehouse -- and choose a tenure which can range from one-three years (with rollover in multiples of one year to 12-15 years). "Like a fixed deposit, breaking of lock-in period will be allowed in either of the options and there will be a penalty on premature redemption (including part withdrawal)," a statement said.
When it comes to redemption, if you are a short-term investor, you will have the option to redeem it either in cash or the equivalent quantity of gold. But medium- and long-term deposits will only be redeemed in cash.
To reduce imports and use the gold mopped up through the GMS, there will be a loan facility for jewellers.
Source:timesofindia.indiatimes.com
Rbi Sets Rs Reference Rate At Rs 66.5840 Against Usd
The Reserve Bank of India today fixed the reference rate of rupee at 66.5840 against the US dollar and 74.7139 for the euro as against 66.2945 and 73.9847 respectively, yesterday.
According to an RBI statement, the exchange rates for the pound and the yen against the rupee were quoted at 102.2930 and 55.14 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:prameyanews7.com
CIT can't reject application for sec. 80G approval by passing non-speaking order
IT : Where assessee, a society registered under section 12A, filed an application seeking continuation of approval granted under section 80G(5)(vi), Commissioner could not reject said application without complying with mandate of Rule 11AA of Income-tax Rules, 1962
Withdrawal of wrong claim before being considered by revenue doesn't invite concealment penalty
IT : Where business income was set off by assessee against brought forward business losses in return of income and, thereafter, it was claimed to be set off against unabsorbed depreciation based on legal advice received and had withdrawn its claim before being considered by revenue, conduct of assessee was bona fide and levy of penalty was unjustified
Issue involving disallowance of Cenvat credit is appealable before High Court
Service Tax/Excise/Customs : Issues involving : (a) clandestine removal; (b) Cenvat credit; and (c) interest and penalties, are appealable before High Court; hence, Tribunal order involving them cannot be challenged before Supreme Court
Credit card services weren't taxable before 1-5-2006
Service Tax : "Credit card, debit card, charge card or other payment care service" was introduced only from 1-5-2006; hence, they cannot be taxed under 'Banking and Other Financial Services' prior thereto.
Sections 234B and 234C interest leviable even when taxes are payable under MAT provisions
IT : Provision for bad and doubtful debts would not be covered by clause (c) of Explanation to section 115JA(2) because even if debt is not recoverable by an assessee, it cannot become liability of assessee
Excess exp. incurred by trust over and above its income held as application of income of subsequent
IT : In case of charitable trust whose income is exempt under section 11, excess of expenditure incurred on religious and charitable purposes in earlier years can be adjusted against income of subsequent years and such adjustment would be regarded as application of income for subsequent years
Donation given to Mandap Keeper to get exclusive right of catering wasn't taxable as Commission Agen
Service Tax : Donation received by a Mandap Keeper from decorator/caterer for grant of monopoly rights to decorator/caterer to provide decoration/catering services cannot be taxed as Commission Agent (Business Auxiliary) Services, as Mandap keeper never acted as agent of decorator/caterer
SEBI provides details of material info. to be disclosed by listed entities under listing norms
SEBI : Continuous Disclosure Requirements for Listed Entities – Regulation 30 of Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015
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