IT: Where assessee had taken loan for purchase of capital assets and there was a cessation of liability to repay said loan, section 41(1) would not be applied
Thursday 17 September 2015
'High level committee on CSR' gets one month extension to submit its report
COMPANIES ACT, 2013 : Section 135 Of The Companies Act, 2013 – Corporate Social Responsibility (Csr) – Extension Of Another One Month For High Level Committee On CSR
Person drawing Cheque in his personal capacity to discharge liability of Co. was liable under sec. 1
Negotiable Instruments Act : Where respondent had drawn a cheque in his personal capacity to discharge liability of company and same was dishonoured, respondent being drawer of cheque was liable under section 138, even though company had not been named in notice or complaint
Tribunal's stay order prevails over undertaking given by assessee for payment of tax
Excise & Customs : Tribunal's stay order would prevail over any undertaking given by assessee; hence, where Tribunal had granted unconditional stay without any direction as to bank guarantee, department was bound to return bank guarantee furnished by assessee
Once assessee refused to co-operate with AO in block assessment his arguments at subsequent stage co
IT : Where assessee at time of search, admitted to have lent certain amount from his undisclosed business income, subsequently he could not file return declaring lower amount as undisclosed income contending that he had given said amount as trade advance which was returned later on
No disallowance of 'FTS' due to TDS default if FTS was capitalized in books
IT/ILT : Where assessee-company made payments to a non-resident concern, but said payment had not been claimed by assessee as revenue expenditure in current year, same would not come within ambit of section 40(a)(i)
Loss arising on ‘Index linked debentures’ as on balance sheet date is allowable: ITAT
IT : The methodology adopted by assessee to determine the rate of return on debentures on basis of Nifty level prevailing on the date of maturity was only a different method of computing the interest liability of assessee. It is an accepted and prudent accounting practice to provide for all known liabilities and losses as on the date of balance sheet. Thus, the loss provided by assessee on the date of balance sheet due increase in level of Nifty index vis-à-vis the level existed at the time of a
Assessee gets sec. 10A relief as it wasn't formed by splitting up of or reconstruction of asset alre
IT : Where STPI unit established by assessee for which section 10A deduction was claimed, was not formed by splitting up or reconstruction or transfer of used assets of its non STPI unit , assessee would be entitled for said deduction
ITAT interprets sec. 15 to determine taxable salary when excess salary is refunded by employee
IT : What is taxable under section 15 is "salary due" and not "salary accrued" salary is not taxable on "accrual" under section 15 since section 15 uses the words "salary due". The salary is not to be taxed on the basis of "accrual" since, in it's conscious choice of words, legislature has chosen the taxability on due basis or payment basis – whichever is earlier. The amount which constituted "salary due from an employer" was only the amount net of recovery, which the employer was legally empowe
Unexplained money couldn't be assessed in hands of assessee as same was already assessed in hands of
IT : Where impugned amount had already been assessed in hands of another person, same could not be again assessed in hands of assessee
Bpcl May Import Ethane From Us For Its Petchem Unit
State-run Bharat Petroleum Corporation (BPCL) could look at importing ethane from the United states to power its refineries.If BPCL goes ahead with its plan, it will be the second company to do so after the Mukesh Ambani-led Reliance Industries.
“Ethane is available in abundance in the US. We are evaluating the future of ethane in this country and studying if there is demand for the fuel in India. We could use it to fuel our ventures. The cost of importing and the savings the fuel is being worked out,” said an official from BPCL.
BPCL has an integrated refinery expansion project at Kochi at the cost of Rs 14,225 crore augmenting its refining capacity to 36.5 million metric tonnes per annum (mmtpa) from the present 30.5 mmtpa which is about an increase of 20% in refining capacity. An additional 5.3 mmtpa of petroleum products will be available in the market after the expansion.
Source:- khabarindia.in
No additions on firm solely on basis of statement of partner made during survey later on retracted
IT : Where Assessing officer, while making addition in hands of assessee-firm as well as its partner, solely relied upon statement of partner recorded at time of survey which was subsequently retracted, addition made by Assessing Officer were to be deleted
Safeguard Duty To Lift Steel Companies Profits: Moody's
Moody's has said the 20 per cent safeguard duty on some variants of steel imports is credit positive for domestic producers and will improve their profitability.
"The imposition of a safeguard duty on certain categories of hot-rolled coil steel imported into the country is credit positive for Indian steel producers because the duty will support domestic steel prices, improve producers' profitability and their leverage metrics," Moody's Investors Service said in a report.
"For our rated entities in India, Tata Steel (Ba1 stable) and JSW Steel (Ba1 stable), the safeguard duty is
credit positive as it staves off some of the downward pressure on their realisations caused by cheap imports."
The safeguard duty and a depreciating rupee will provide a stabilising impact on domestic prices and demand-supply equations, it said.
The 20% duty - which was announced on September 14 - took effect immediately and will be levied for 200 days.
Surging imports - especially from China, South Korea and Japan - have resulted in an imbalance between the supply and demand of steel in India and led to a sharp drop in prices. Domestic prices fell 25 per cent between June 2014 and June 2015 owing to a 57 per cent increase in cheaper imports, one third of which came from China, Moody's said.
"The safeguard duty and a depreciating rupee will provide a stabilising impact on domestic prices and
demand-supply equations although the extent of price increase may vary and fall short of the duty imposed," Moody's said.
The weak rupee makes steel imports more expensive and therefore, helps domestic steel producers indirectly, it added.
Source:- profit.ndtv.com
Instant Coffee Makers Import Raw Coffee As Prices Rise Here
Indian instant coffee exporters are depending more on imported raw coffee for their shipments, thanks to global fall in coffee prices and relatively high prices of raw coffee in the country, even as weakening rupee has pushed exports.
While the total coffee exports from India for nine-and-a-half months to September 15 showed marginal increase at 2,36,779 tonnes year-on-year, the instant coffee re-exports jumped 22% to 46,127 tonnes for the period.
Global coffee prices plunged following a larger-than-expected crop output in Brazil, the largest producer. Weakening of the Brazilian currency too contributed to the fall in global prices.
Prices of Indian green coffee of both varieties - Arabica and Robusta - are about 10% higher than global prices. So, instant coffee exporters are increasingly opting to import raw coffee.
Hyderabad-based CCL Products (India), the country's top instant coffee exporter that ships to 80 countries, is now sourcing coffee from African countries, Brazil, Columbia, Vietnam, Mexico, Columbia and Peru.
Challa Srishant, MD of CCL Products, feels that instant coffee is winning more fans globally because it is cheaper and more convenient to prepare than the regular filter coffee. Its quality has also improved, he said. Latest trends in instant coffee are functional coffees, in which certain ingredients are added for health benefits like green coffee extract for weight loss, he added..
Source:- economictimes.indiatimes.com
Russia Restricts Import Of Meat From Up Plants
India’s buffalo meat exports to Russia, which commenced earlier this year, have hit a roadblock following several cases of foot-and-mouth disease reported from Uttar Pradesh.
Sources told FE that Russia had commenced import of buffalo meat earlier this year from four processing plants located in Aligarh, Barabanki, Rampur (Uttar Pradesh) and Aurangabad (Maharashtra) where inspectors from Russia had been stationed to monitor quality.
“Russia has decided to limit buffalo meat deliveries from units located in Uttar Pradesh following several cases of foot-and-mouth disease which had been reported from the state,” an official said.
After months of discussion and inspections of plants last year, Russia has decided to import buffalo meat from India.
As Russia, Kazakhstan and Belarus have common customs standards, the buffalo meat exports commenced to these three CIS countries earlier this year.
Russia is among the few countries that had put a ban on import of meat and poultry products from India due to occurrence of foot-and-mouth disease years ago. Although, India is globally one of the largest buffalo meat suppliers, Russia did not import any meat from the country before 2015.
Russia’s move to source buffalo meat from India follows the ban imposed on fruits, vegetables, meat, fish, milk and dairy imports from the United States, the European Union, Australia and Canada in response to the sanctions imposed on it last year.
The Russian president had asked for limiting food imports from those countries that had imposed sanctions on Moscow for its support of rebels in eastern Ukraine and the annexation of Crimea.
India had made it clear that it will not support sanctions sought to be imposed on Russia by a select group of countries led by the US.
Russia was earlier exploring possibility of importing from India and the decision to set up an office in the country for monitoring buffalo meat shipment was taken in a meeting last year in Delhi by Dmitry Rogzin, deputy prime minister of Russia, with external affairs minister Sushma Swaraj.
Meanwhile, officials said that concerted efforts to eliminate diseases such as rinderpest and foot-and- mouth disease among buffalo population have borne fruit with a sharp increase in exports of meat products from India in the last couple of years.
India’s buffalo meat shipment has risen sharply from R13,745 crore in 2011 – 12 to R29,282 crore in the last fiscal. Countries such as Vietnam, Malaysia, Egypt, Thailand and Saudi Arabia are the key export destinations for the buffalo meat products.
The major areas for buffalo meat production include Uttar Pradesh, Andhra Pradesh, Maharashtra and Punjab.
Source:- financialexpress.com
Courtesy Deficient Rainfall India To Import Edible Oil Worth $14Bn In 2015-16, A Rise Of $4Bn From Previous Year
During the current financial year 2015-16 India will be importing edible oils worth $14bn and this is due to poor rainfall. In financial year 2014-15 India imported edible oils worth $10bn. A deficient monsoon is also building pressure on pulses.
A study by industry body, Assocham said that in 2013-14 the import bill was $7.2bn, increasing by over 46 per cent in the subsequent year. The rain fall deficit this year is around 12 per cent, production of oilseeds in states like Gujarat, Madhya Pradesh, Maharashtra, Andhra Pradesh and Tamil Nadu is likely to drop, which will push India's vegetable oil import bill.
Demand of vegetable oil in the country is increasing, but, the supply side is not able to meet this growing demand. According to a release by the Assocham, responsible factors leading to this situation of wide demand-supply gap include, low and unstable yields of most oilseed crops, and uncertainty in returns to investment, which result from the continuing cultivation of oilseeds in rainfed, high risk production environments.
Industry Association's Secretary General, DS Rawat, in a statement said that for the optimum growth and development of oilseed economy a vibrant and efficient processing sector is a pre-requisite, which is sadly but truly not available in India.
"India's oilseed processing sector has been plagued by a slew of technological and policy issues culminating in the existence of a processing sector low in efficiency and capacity utilization", said DS Rawat.
Source:- merinews.com
Mandatory Export Policy For Sugar Likely Soon
The sugar industry is widely anticipating an announcement on a mandatory export policy from the government to replace the existing export subsidy scheme in the new crushing season beginning October 1, while officials say they are evaluating several options to deal with the excess sugar, the result of successive years of record surpluses.
Industry sources told ET that the central government will "very shortly" announce the mandatory sugar export policy . The central government had announced a subsidy of Rs 4,000 a tonne last year for export of raw sugar as the pressure of excess sugar production in the last five years had pulled down prices, and affected the capacity of mills to pay farmers for cane.
But the country could export only 1 million tonnes of sugar in this production year, even as output is expected to surge to record levels for the sixth consecutive year. Officials in the food ministry said there were a number of proposals to help the sugar industry and farmers, before the sugar crushing season began.
"We don't want to spread speculations on if we will be giving quotas to companies for mandatory export sugar or if we will give further any subsidy on export," a food ministry official said. "In the regulated regime prior to 2013, there was a Sugar Export Promotion Act and quotas were allocated. So it is not something bizarre if we now do it again. Let it happen and when it gets notified, we will talk."
If the central government accepts a mandatory sugar export policy, then there will be no export subsidy , as it will not be compatible with World Trade Organization rules. Without export subsidy , based on the current international rates, sugar mills can get an ex-mill price of Rs 17 a kg for raw sugar.
Based on current price, this means they will have to bear a loss of about Rs 6 per kg on the sugar they export. A large number of sugar mills don't see any problem in absorbing this loss. "We used to sell 10 per cent sugar as levy sugar at lower than the market price. The mandatory export will be just like the levy mechanism. But this will help to get rid of the excess sugar, which is our biggest concern," said the managing director of a sugar cooperative from western Maharashtra.
Narendra Murkumbi, vice chairman and managing director of Shree Renuka SugarsBSE -1.34 %, said mandatory exports will be tough to implement."In principle, mandatory export of sugar is a good idea. The 3-4 million tonne surplus sugar in the country is driving down prices, and any solution that helps to take care of the surplus is good. But implementing it will be a challenge," he said adding: "Continuing export subsidy is the right solution to take care the short-term problem of surplus sugar."
Echoing the industry's demand about cane price, Murkumbi said: "Right now, sugar mills do not have the capacity to do another season.We need help to bridge the gap between the FRP (fair and remunerative price for cane) and what the mills can pay the farmers."
The food ministry official said the government is working to help export Indian sugar to Indonesia, Malaysia and Sri Lanka. "Indonesia is a very significant market in the Southeast Asian region, consuming over 3 million tonnes of the sweetener. Thailand has an advantage over India as they get to export sugar at 5 per cent and we attract a duty of 15 per cent. We are trying to work with them under the Regional Cooperation for Economic Partnership," he said.
Source:- economictimes.indiatimes.com
TP adjustments restricted to international transactions with AE and not in relation to entire turnov
IT/ILT : Transfer pricing adjustment has to be restricted to International transaction and not in relation to assessee's entire turnover
Circulars can't interpret notifications, says Supreme Court
Service Tax : Circular interpreting exemption notification and opining that said exemption would not be available to 'mutual funds agents' is violative of section 37B as it forecloses 'discretion or judgment' of adjudicating authority
TPOs working under Commissioner (TP) shall handle Specified Domestic Transaction cases
IT/ILT : Section 92CA Of The Income-Tax Act, 1961 – Transfer Pricing – Reference To Transfer Pricing Officer (TPO) In Specified Domestic Transaction Cases
Illness couldn't be an excuse for delay in filing appeal when assessee wasn't ill at the time of exp
IT: In order to constitute reason for delay in filing appeal under section 249, illness must be at time of expiry of limitation; if assessee/appellant was ill but got alright, illness cannot be any excuse for delay in filing appeal
TPOs working under Commissioner (Transfer-Pricing) shall handle Specified Domestic Transaction cases
IT/ILT : Section 92CA Of The Income-Tax Act, 1961 – Transfer Pricing – Reference To Transfer Pricing Officer (TPO) In Specified Domestic Transaction Cases
SEBI issues revised formats for disclosure under Insider trading norms
SEBI : Revised Disclosure Formats Under Sebi (Prohibition Of Insider Trading) Regulations, 2015
Now banks can grant loans and advance to their CEOs/full time Directors without RBI's nod
BANKING : Guidelines On Compensation Of Chief Executive Officer/Whole Time Directors – Restrictions Under Section 20 Of The Banking Regulation Act, 1949 – Loans To Directors
Assessee trying to sell goods in domestic market in disguise of export is liable for penalty
CST & VAT : Karnataka VAT - Where assessee was transporting in a vehicle its product from Belgaum to Mumbai and officer-in-charge of check post intercepted said vehicle and having noticed that goods were not meant for export as claimed and transaction was within country imposed penalty upon assessee under section 53(12), imposition of penalty was justified
Forex loss or gain shall be considered while determining operational cost in transfer pricing cases
IT/ILT : Profit or loss arising out of foreign exchange fluctuations has to be taken into consideration while arriving at operating cost in transfer pricing matters
Winding-up plea couldn't be initiated against debtor-Co. for non-payment of time-barred debts
CL : Where company petition for winding up of respondent company on its inability to pay debts filed by petitioner-company was barred by limitation, petition was to be dismissed
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