IT/ILT : Section 10(6c) of the Income-Tax Act, 1961 – Exemption – Foreign Company, Income Arising to, by Way of Fees for Technical Services – Notified Foreign Companies
Monday 28 September 2015
Quoting of PAN is now mandatory in Form No. MGT-7
COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Management and Administration) Second Amendment Rules, 2015 – Amendment in Form No.MGT-7
Sec. 69C additions to be made on amount of Cenvat Credit and not purchases if credit was availed fra
IT : Where assessee had made purchases from open market and shown same to be made from company H just to avail CENVAT credit, addition was to be made only on account of such CENVAT credit, and not on account of total purchases
Raw material to sales ratio was appropriate benchmark to determine ALP of raw materials purchased fr
IT/ILT : Where assessee purchased raw material from its AE located abroad, in view of fact that subsequent sale by assessee to various parties was an uncontrolled transaction, ratio of raw material to sales would be a proper ratio to compare consumption of raw material by assessee and comparable parties while determining ALP
Interest paid to be set-off against interest earned on lending to holding Co. for commercial expedie
IT : Netting off of interest on bank borrowings allowed u/s 57(iii) against interest earned from onlending to holding company if onlending to holding co. is based on commercial expediency and terms of bank loan permit such onlending and the income and expenditure do not pertain to the pre-operative period
Non-compliance with 'AS' in preparation of financials isn't a continuing offence under Companies Act
CL: An offence under section 211 is not a continuing offence and is complete moment balance sheet in question is issued by company unlike offences under sections 113, 162 and 168 of Companies Act, 1956 which are continuing in nature
Rubber Products' Exports Record 5% Growth
Exports of rubber products, which have been growing at a healthy double digit rates for about two decades, have seen the growth rate dwindle in the last three financial years. This is a cause of concern as rubber is a sunrise sector and the potential for exports is immense notwithstanding the economic slowdown in some of the export markets, said Mohinder Gupta, President of All India Rubber Industries Association (AIRIA).
According to Chemicals and Allied Products Export Promotion Council (Capexil) data, the exports of rubber products increased 5 per cent in FY15 to $2.82 billion from $2.74 billion in FY14. The increase in exports was boosted by non-tyre rubber products manufactured largely by around 5,500 rubber MSMEs.
The fact that rubber MSMEs have been able to manage a growth of 10 per cent (from $1,056.82 million in FY14 to $1,168.91 million in FY15) notwithstanding the overall exports scenario is pointer to the fact that there is large potential for growth if policies for rubber MSMEs are in place.
The share of India in rubber export market is a paltry 1.48 per cent, whereas China is 11 per cent. India's share can be easily enhanced to 5 per cent in the next 5- 7 years and India's ranking can be enhanced to fifth position from current 19th.
Firstly import of raw materials needs to be facilitated. India is grossly deficient in production of natural rubber (NR). Import of NR is therefore inevitable. However, there is import duty of 25 per cent on import of NR while rubber products can be imported at 10 per cent or even lower rates of duty under Free Trade Agreements (FTAs), he said.
For encouragement of exports of rubber products, AIRIA has asked for a separate Rubber Export Promotion Council (Rubexil) with to view to maximise the export potential of Rubber industry.
Rubber industry fits in with the Government's initiatives of Make in India and Skill India as thousands of rubber units spread across the country manufacture around 35,000 different rubber products, which find usage in auto, defence, healthcare, agriculture and in various other critical sectors. Rubber industry is labour intensive already employing three million people, a large percentage of which are unskilled and around one million skilled, therefore rubber sector has all the ingredients to lead these initiatives.
Source:- business-standard.com
Payer not at fault for not approaching AO under sec. 195(2) as it made purchase contract and not com
IT : Where agreement entered into by assessee with foreign company was for simple purchase contract and not a composite contract, provisions of section 195(2) would not applied
India's Vegetable Oil Imports To Rise 19% This Season: Industry Body
India's vegetable oil imports will rise 19 percent to 14 million tonnes this marketing year ending Oct. 30, an industry body said on Monday, after weak monsoon rains late last year hit output of rapeseed and other oilseeds.
Pravin S. Lunkad, president of the Solvent Extractors' Association of India, also said the government should lower the import duty on oilseeds to 5-10 percent from 30 percent currently so that under-utilised crushing plants in India can revive their business.
Indian oilseed crushers have been forced to use a fraction of their capacity as the domestic market stays awash with cheap rival palm oil from top producers Malaysia and Indonesia.
Source: economictimes.indiatimes.com
Attempt To Illegally Import Over 8,300 Kg Polythene Bags Foiled
The Excise and Taxation department foiled two attempts of illegally importing polythene bags in Jammu and Kashmir by recovering over 8,300 kg of such bags here today.
Two attempts to smuggle 8,310 kg of polythene bags was thwarted at the Lakhanpur toll plaza today.
"In one instance we found that a truck, on its way to Kathua from Pathankot, was loaded with 400 bags of wheat which was also been loaded with 120 bags full of polythene bags containing 8,230 kg of poly bags," a spokesman of the department said.
He said that in another attempt 80 kg of polythene bags were recovered from a car that was on its way to Kathua from Punjab.
The consignment was later handed over to the pollution control board, Kathua for proper disposal, he said.
The sale and use of polythene bags has been banned by the government in the state, the spokesman said, adding, the drivers of both the vehicles have been detained by the excise department and will later be handed over to police.
Source:- economictimes.indiatimes.com
Indo-Us Bilateral Trade Can Touch $500 Billion By 2025: Report
With India emerging as the most sought after developing market and an important partner for the US, the bilateral trade between the two countries is likely to touch $500 billion by 2025, a recent survey said.
According to a survey conducted by PwC and Indo American Chamber of Commerce (IACC), trade between the two countries has the potential to grow up to $500 billion through concerned efforts from all stakeholders -- government leaders and investors, corporates, businesses and entrepreneurs.
"India continues to emerge as one of the most important markets in the developing world and an important trading partner for the US. This is evident by the four-fold growth in the India-US trade since 2006 to 100 billion $in 2014," PwC India Strategy Consulting Leader Shashank Tripathi said.
He said the drivers to achieve this trade growth would be the five key sectors including aerospace and defence (A&D), infrastructure and logistics, energy, manufacturing and services.
"These sectors are of the utmost importance to the Indo-US relationship. In each of these sectors, in addition to the facilitation of trade by the government, the corporate sector can lead the way into the evolving trade relationships," Tripathi said.
The report further said enormous headroom exists to unshackle the real potential of the trade and strengthen strategic relationship between the two nations through trade.
"This is increasingly important, since in the new world order, economic interests drive strategic partnerships to the mutual benefit of the world's largest and oldest democracies. The two nations should initiate more trade missions and remove barriers that affect the trade and investment among other initiatives from the government and corporates," he added.
According to it, some of the key challenges in achieving mission USD 500 billion include India's poor record in the ease of doing business (EODB) ranking and speed of decision making as well as the US government's restrictive visa policy and restrictions on technology transfer.
"Both the governments need to improve the business environment, provide tax incentives and simplify regulations. Positive signs are already emerging with the government's focus on the Make in India initiative, bilateral shared forum on manufacturing, and the India-US CEO Forum," IACC Secretary General Ranjana Khanna said.
She further said strategic trading relationship is only the first step in creating a more meaningful partnership between two of the largest democracies in the world.
"This can not only lead to deeper engagement in areas such as space exploration, climate change and counter-terrorism, but also build a stronger people partnership and bring together dynamism and new thinking to create solutions to some of the most pressing problems the world is facing," Khanna added.
While roadblocks may arise in the course of time, the commonalities of interests are immense for growth in trade between India and the US, she said.
Source:- economictimes.indiatimes.com
Rupee Pares Initial Gains; Still Up 6 Paise At 66.10
The rupee pared its initial gains, but was still trading higher by 6 paise at 66.10 against the US currency on bouts of dollar selling by banks and exporters.
The rupee resumed higher at 66.10 per dollar against the previous close of 66.16 at the Interbank Foreign Exchange (Forex) market.
It gained further to 66.01 on bouts of dollar selling before quoting at 66.10 at 3.35 pm local time. It hovered in a range of 66.14 to 66.01 per dollar during the evening deals.
In global markets, the US dollar was up against a basket of currencies in early lacklustre Asian trade amid relatively uneventful weekend with the dollar showing potential for gains if the upcoming data strengthen the case for a hike in interest rates this year.
The dollar index was 0.2 per cent up on Monday at 96.328, just shy of Friday’s high of 96.70, while the euro was down 0.2 per cent at $1.1174.
Meanwhile, the benchmark BSE Sensex ended lower by 247 points at 25,616.84.
Source:- thehindubusinessline.com
Govt. grant received for modernization of machinery is liable to MAT
IT : While computing book profit under section 115JB, Central Government grant received by assessee for modernisation of machinery and compensation received from State Government for loss to its compound wall, could not be deducted from net profit computed as per Parts II and III of Schedule VI of Companies Act, 1956
A charitable trust can exercise option of accumulation of income by mere filing return of income
IT : Though law does not mention any specific mode of exercising option for setting apart income for charitable purpose in succeeding year , If such option is exercised when return is filed, that would be treated as in conformity and comply with provisions contained in section 11
Investment in chit-fund Co. for better management of funds to be construed as eligible investment by
IT : Where contribution to chit funds was done only as an arrangement for better management of society's funds, exemption under section 11 could not be denied
All shares couldn't be treated to be held for trading purposes when majority of them were held for a
IT: Where assessee except for shares of two companies held other shares for a very long period and valued same at cost, entire share transactions could not be treated as business transactions
Addition of unexplained investment justified when assessee was taking different stand before authori
IT : Where assessee had initially accepted investment in land as unexplained and had taken different stands before different authority, addition made under section 69 was justified
A commercially insolvent co. which didn't dispute its financial inability was liable for winding-up
CL: Where company did not dispute its financial inability to pay and was commercially insolvent, company was liable to be wound up
Haryana Govt amends composition scheme for developers
VAT/HARYANA/INDIAN ACTS & RULES : Haryana Value Added Tax (Third Amendment) Rules, 2015 – Insertion of Rule 49A , Form VAT-CD1 and FORM VAT-R13
'Satyam' couldn't be selected as comparable as its financial results couldn't be relied upon due to
IT/ILT : Where a company admitted financial irregularities and conspiracy hatched and committed by its directors, financial results of said company cannot be relied upon and said company cannot be selected as comparable
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