Where after settling claims of creditors and Employee Provident Fund, company-in-liquidation had neither any funds nor any assets for realisation, it would be appropriate to dissolve said company-in-liquidation
Friday, 9 October 2015
Interest earned on deposit which was made out of deposit received from members eligible for sec. 80P
Where assessee was in business of providing credits to its members and earned interest on deposits in bank which were out of deposits received from members, interest earned was exempt under section 80P and, accordingly, assessee was entitled to section 80P(2)(a)(i) deduction
Unabsorbed losses of the period prior to initial year couldn't be set-off while computing sec. 80-IA
Where assessee was engaged in business of wind mill power generation/hosiery goods, etc., and its losses had already been set off against other income of business, deduction under section 80-IA was to be allowed
Work contract tax deducted by clients is an allowable business exp.
Amount of works contract tax deducted by clients of assessee-company and remitted to respective State Governments Sales tax Departments, is an allowable business expenditure under section 37(1)
Govt. delegates its power to make rules, by laws under FCRA to SEBI
SEBI : Section 26, Read With Section 28a Of The Forward Contracts (Regulation) Act, 1952 – Power To Delegate – Delegation Of Powers Exercised By Central Government Under Sections 5 To 12 And 14 Of Said Act To SEBI
Deposits in bank account held as unexplained as assessee failed to prove them as receipts of proprie
IT: Where assessee deposited cash and explained same as sale proceeds from his sole proprietorship concern, since assessee did not produce bank account details as well as sale vouchers to show that amount received was part of sale proceeds, matter was to be readjudicated
Tapan Ray, Secretary, MCA appointed as part time member of SEBI
SEBI : Section 4 Of The Securities & Exchange Board Of India Act, 1992 – Board – Management Of – Appointment Of Secretary, Ministry Of Corporate Affairs As Part-Time Member Of Sebi In Place Of Former Secretary, Ministry Of Corporate Affairs
Place of removal can't be buyer's premises just because insurance policy is bought by manufacturer
Central Excise : Where : (a) all prices are "ex-works"/ "ex-factory"; (b) goods were cleared by manufacturer from factory on payment of appropriate sales tax; (c) invoices were prepared at factory directly in name of customer with name of Insurance Company; (d) goods were handed over to transporter without manufacturer reserving any right to disposal of goods, it was clear that title had already passed to customer at factory and therefore, place of removal was 'factory' and freight and transport
RBI permits NRs to subscribe to 'National Pension System' of PFRDA via normal banking channels
FEMA/ILT/INDIAN ACTS & RULES : FEM (Transfer Or Issue Of Security By A Person Resident Outside India (Ninth Amendment) Regulations, 2015 – Amendment In Schedule 5
Fee paid for conducting market research & advising on new technological developments in China is FTS
IT/ILT : Where Chinese subsidiary of Indian holding company provides services in China in connection with procurement of goods by Indian company from Chinese vendors, specialized services of market research and information on new developments in China with regard to technology/product/process upgrade etc., fees received, by Chinese company is chargeable to tax in India to extent of full amount received as fees for technical services at the rate of 10% of gross amount
Assessee's failure to verify genuineness of labour charges led to rejection of its books of account
IT : Where assessee failed to verify genuineness of opening and closing balance of labour charges payable or furnish details called for by Assessing Officer, rejection of books of account was justified
SARFAESI can't be enforced in State of J&K rules HC
SARFAESI :The Union Parliament does not have legislative competence to make laws contained in section 13, section 17(A), section 18(B), sections 34, 35 and section 36 of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, so far as they relate to the State of J&K
Gst Can Be Implemented Any Time, Once Bill Passed: Cbec
The tax department has said that Goods and Services Tax (GST) can be implemented anytime in 2016, once the Bill is passed.
Speaking at the 3rd CII Global Tax Summit organised in Delhi on Thursday, V S Krishnan, Member, Service Tax, CBEC, Ministry of Finance clarified that missing the 1st April 2016 deadline does not mean going to 1st April 2017. GST can be implemented anytime during the year, once the Bill is passed.
"One Committee is already working on the GST rate structure and the Committee is expected to submit its report very shortly. In addition, the Empowered Committee is working with think tank NIPFP on the Revenue Neutral Rate, based on a fresh set of data. He assured the industry that the rate should not exceed 20 percent," he added.
Krishnan reiterated that drafting of the GST law has already been done and it would be given to the Empowered Committee for their inputs. Thereafter, it would be put in the public domain for comments. In addition, the draft Place of Supply rules will also be made public for comments.
"A lot of ground work needs to be done on GST by Industry Associations. Industry needs to identify challenges in the transitional provisions to the new GST legislation as well as suggest solutions to the problems," he said.
"We need to create a state level GST secretariat in which senior officials from centre and state should come together for interactions in institutionalised arrangements. A lot of hand holding is required for the successful implementation of GST," said Krishnan.
On the issue of delay in refund of service tax, Krishnan mentioned that this is being looked into and CBEC will come out with the developments very shortly.
Summing up, Krishnan stressed that there is undue revenue pessimism about GST. But on the contrary, he expects revenue to boom under GST.
source:- smetimes.in/smetimes
Import Of Non-Tyre Rubber Products Jump 32% In Two Years
Imports have gone up substantially during last couple of years across several rubber product categories. According to Chemical and Allied Export promotion Council [Capexil] data, import of latex, dipped & medical rubber products including contraceptives has gone up from $ 48.77 million in 2011-12 to $ 64.18 million in 2014-15, recording a whopping 32% jump in just two years.
The inverted duty structure and the various trade agreements between India and South East Asian countries are the main villain in the game as import is much cheaper than producing in India. The increase in cost of production, availability of raw materials like natural rubber and advent of imported goods in the market have put the local manufacturers in doldrums. Lately other countries like Vietnam have emerged as tough competitors to Chinese goods. So a large chunk of Indian manufacturers have become distributors of rubber products.
According to Mohinder Gupta, president, All India Rubber Industries Association [AIRIA] this is obvious in the case of balloons as 80 per cent of the balloon manufacturing units have vanished from the scene. They now distribute balloons imported from China. Speaking to Business Standard he said that the import duty of latex, the main raw material in making balloons, is 70 per cent, while the import duty of balloon is just 10 per cent. The local price of latex is higher than that of countries like Thailand and Malaysia. There is no lvele playing field for the Indian companies in this sector. Hence there will not be any balloon making units in the country within a few years time.
A substantial part of rubber balloon industry in India has turned traders importing and distributing amongst their agents across India. Dahanu in Maharashtra, which was once a hub for rubber balloons, wears a deserted look leading to thousands of job losses in the manufacturing sector. Same is the case with Rubber rice rollers. Government, instead of promoting domestic manufacturing of rubber de-husking rollers has signed FTAs to import rubber rollers at nil rates of duty. On the other hand, rubber needed to manufacture these rollers in India attracts 25 per cent duty.
He said that rice de-husking rollers attract nil duty as this is part of rice making machinery. The machines and parts of rice making industry attract nil duty. Overall the import duty cost comes to the tune of 7-10 per cent only across various products, including automotive tyres, which literally kills the local rubber based units. The major raw materials for rubber based goods like latex attracts 70 per cent duty and natural rubber attracts 25 per cent. Other raw materials have a duty of 10 per cent on an average. The local prices of these items are much higher compared to other countries. Hence companies, especially in the MSME sector can not survive under the present duty structure and market conditions in India. Gupta said that more than 30 per cent of 5500 plus MSME units in the country had either shut down or opted distribution of imported goods.
Apart from China, which contributes the lion's share of imports to India, in recent years Vietnam, Thailand and Malaysia have be importing various rubber products to India. For example, a major chunk of the Indian hospitals use medical and surgical gloves imported from Malaysia. Malaysia is leading this sector across the world and they are unbeatable on the price and quality fronts. Apart from balloons, rubber rollers, v-belts, rubber sheets, hoses, medical and surgical gloves, automotive parts and contraceptives are the main items dumped to India.
source:- business-standard.com
Vegetable Prices Go Through The Roof
Vegetables are steadily slipping out of the common man’s plate, due to skyrocketing prices. Since the monsoon started about three months ago, prices of vegetables jumped by upto 157 per cent.
Data compiled by the Agricultural Produce Market Committee (APMC), Vashi, showed prices of almost all vegetables had shot up sharply on lower arrivals. For example, pointed gourd (parval) has seen a price rise of 157 per cent to trade in the range of Rs 3,000 to Rs 3,600 a quintal on Thursday, as against Rs 1,000 to Rs 1,400 a quintal three weeks ago. Other vegetables like bitter gourd, brinjal and cauliflower firmed up by upto 78 per cent since September 16.
“There are three major factors that contribute to a price rise in vegetables. Firstly, sowing was delayed due to late onset of the monsoon this season. Hence, harvesting is likely to witness a proportionate delay. Secondly, the monsoons were deficient in major producing regions like Jalgaon and Dhulia districts in Maharashtra, resulting in a lower yield in these regions. Thirdly, there were two-weeks-long extended monsoon showers across these major producing regions which hit matured crops. So, arrivals have become very thin these days,” said a senior official at the APMC in Vashi.
The recently ended southwest monsoon season was deficient by 16 per cent.
So, the fruit size of average kharif vegetables remained lower, due to lack of irrigation.
“Apart from that, there are reports of 30 per cent crop damage across Maharashtra. So, supply will continue to remain lower this year until new crops arrive at mandis, which is three months away. By then, consumers will have to live with high vegetable prices,” said Sanjay Bhujbal, a wholesale dealer of cauliflower, cabbage and brinjal in Vashi.
Vegetable prices go through the roof
Data compiled by the government-owned National Horticultural Board (NHB) showed average arrivals of bitter gourd in Mumbai stood at a negligible 20 tonnes in October, as against 27 tonnes last year. Arrivals declined across all vegetables and markets throughout the country.
Ladies finger recorded a 56 per cent increase, with prices in the range of Rs 2,400 to Rs 2,800 a quintal, from Rs 1,500 to Rs 1,800 a quintal three weeks ago.
Interestingly, its arrivals in the benchmark Ahmedabad mandi slumped to a mere 48 tonnes now, from 72 tonnes on September 16. In Azadpur mandi (near Delhi) too total arrivals of ladies finger fell to 64 tonnes from 89 tonnes three weeks ago, Agmarket data showed.
“Ladies finger is a very moisture-sensitive vegetable, which — if it gets wet, has a reduced shelf life. So, vegetables attract high moisture this season due to the extended monsoon in September. Consequently, there has been higher spoilage this year as compared to past seasons,” said Samir Inamdar, a ladies finger wholesaler at the Vashi APMC.
Around this time, arrivals begin in large quantity from Jalgaon and Dhulia, among other centres. However, this year, arrivals have been very low from these centres as well. With the rabi sowing of vegetables on in full swing, and harvesting set to start only by the end of December, vegetable prices are likely to remain high for the next 10 weeks.
source;- business-standard.com
Technical Textiles Market Worth 42.20 Million Metric Tons By 2020
The report "Technical Textile Market by Product (Fabric, Unspun Fiber, Yarn-type Products), Technology (Nonwoven, Fabric, Weaving, Knitting, Spinning), Fiber (Synthetic, Natural, Specialty), Application (Mobiltech, Indutech, Sportech, Others), Colorant (Dye, Pigment), Fabric - Global Forecast to 2020", published by MarketsandMarkets, The Technical Textiles Market, in terms of volume, is projected to reach 42.20 Million Metric Tons by 2020, at a CAGR of around 4.68% from 2015 to 2020.
textile industry has witnessed remarkable growth in the past few years and this growth is estimated to increase in the coming years, this trend is estimated to have a positive impact on the demand for technical textiles. The sector has undergone significant industrial changes with the increasing significance of new applications in medical, automobile, sport and leisure, environment, and industrial sectors. Automobile and medical sectors are the fastest growing sectors, continuously expanding and mounting the demand for technical textiles. These industries has been improving their existing market share and creating innovative products through new developments, which in turn enabling the Technical Textiles Market growth. The increase in population, urbanization, developing economy, demand for infrastructure, contribution to GDP, and growth in automobile, construction, packaging, and healthcare sector, are the few factors that are driving the market for technical textiles globally. On the other hand, factors such as the high price of technical textiles products affects the pricing structure of the intermediate industries which makes the final product available to the customer.
The market has been segmented on the basis of major regions such as North America, Europe, Asia-Pacific, and Rest of the World (ROW), wherein their value and volume has been projected. The size of the markets in key countries has also been covered and projected. The major players of the textiles industry are E. I. du Pont de Nemours and Co (U.S.), Asahi Kasei Corporation (Japan), Kimberly Clarke Corporation (U.S.), Mitsui Chemicals, Inc. (Tokyo), and Freudenberg & Co. KG (Germany). These players adopted various strategies to expand their global presence and increase their market shares. Some of the key strategies adopted by the players include expansions and investments, mergers and acquisitions, new product launches, and agreements.
source:-prnewswire.com
Tpp Could Impact India's Export Market Share: Singapore Bank
SINGAPORE: India's position on trade agreements is under scrutiny after a group of 12 countries, led by the US, reached a tentative agreement on the Trans-Pacific Partnership (TPP) earlier this week, a Singapore banking group said today.
While the TPP ratification by the signatories and other processes are expected to delay its implementation by a few more years, nonetheless India's patchy track record on free-trade agreements is feared to hurt latter's ambitious goals to double exports to $900 billion over the next five years, DBS group said in its daily economic report.
Of the 12 TPP signatories, India has existing free trade/cooperation agreements with three.
Negotiations are on-going with the ASEAN (Association of South East Asian Nations) member countries on a separate Regional Comprehensive Economic Partnership (RCEP), which includes China but not the US, it pointed out.
India had expressed plans earlier in the year to join the APEC (Asia Pacific Economic Cooperation), but there has been little material progress since then, DBS said.
Focus has also been on pushing forth with other key pacts, especially with the European Union.
However, India's progress has been slow on a free trade agreement with the European nations.
The Indian government has taken active interest in forging deeper international ties since assuming office last year, especially to attract foreign investments for infrastructure and manufacturing facilities.
But progress on bilateral/multilateral trade pacts particularly has been tricky, given the tough choice between maintaining controls on certain strategic aspects, including agriculture, pharma, intellectual property rights, services.
Authorities have leaned towards the former in recent negotiations, suggesting that the push to conclude more trade pacts will evolve at a cautious pace.
Close to a quarter of India's merchandise exports headed to the US and ASEAN countries last year, with another four per cent to key Latin American markets.
Concern is whether improved market access, tariff reductions and diversion of service trade between the TPP members, as and when it becomes effective, might erode India's market share, the bank said.
It cited a think-tank estimates and press reports that India's exports, especially textiles and leather products might face threats, as countries such as Vietnam and Malaysia get cheaper access to the US and other markets covered by the deal.
However, real impact is likely to be "smaller in our view as the TPP is likely to take years to implement," it said.
Overall, given the weak global demand backdrop, collapse in commodity earnings, domestic bottlenecks and cautious stance on trading pacts, meeting the government's ambitious target to raise India's share in global trade to 3.5 per cent by 2020 from two per cent presently, will be an uphill task, DBS said.
source:- http://ift.tt/LUcUH1
India May Invest Rs 2 Lakh Crore At Chabahar Port In Iran: Nitin Gadkari
NEW DELHI: India is eyeing investments to the tune of Rs 2 lakh crore at Chabahar port in Iran in various infrastructure projects, Union Minister Nitin Gadkari said today.
The investments, however, will depend on the outcome of the negotiations on gas price as Iran has offered to supply natural gas at $2.95 while India wants rates to be lowered.
Meanwhile, three more countries have offered gas to India, which will be examined, Road Transport, Highways and Shipping Minister Gadkari said at an interaction with media at Indian Women Press Corp here.
"India is ready to invest Rs 2 lakh crore at Chabahar SEZ in Iran but the investments would depend on gas prices as India wants it to be lowered," Gadkari said.
He added that various Indian companies are ready to invest in Iran in various projects ranging from road and rail to shipping and agriculture.
The total investment in the projects will be around Rs 2,00,000 crore, Gadkari said.
Asked about the development of the port, he said: "Various ministries have given their report to the Shipping Secretary and Prime Minister Narendra Modi will soon take a call on it."
With the US and other western powers easing sanctions against Iran, India has been in talks with Tehran to set up a gas-based urea manufacturing plant at the Chabahar port, besides developing a gas discovery ONGC had made.
On talks on supply of natural gas, Gadkari said that Iran has offered gas to India at $2.95 per million British thermal unit to set up urea plant at the Chabahar port but India is negotiating the gas price, demanding lowering the same.
The rate offered by Iran is less than half the rate at which India currently imports natural gas from the spot or current market.
Long-term supplies from Qatar cost four-times the Iranian price.
India, which imports around 8-9 million tonnes of the nitrogenous fertiliser, is negotiating for a price of $1.5 per mmBtu with the Persian Gulf nation in a move which if successful will see a significant decline in the country's Rs 80,000 crore subsidy for the soil nutrient.
India has already pledged to invest about $85 million in developing the strategic port off Iran's south eastern coast, which would provide India a sea-land access route to Afghanistan, bypassing Pakistan.
"If urea plant is set up there, it will result in slashing of urea prices in India by 50 per cent and cut on huge subsidy on urea, which is Rs 80,000 crore," Gadkari said, adding that he would be visiting Iran soon.
In 2013, Iran had offered gas at the rate of 82 cents, less than a dollar, the Minister said.
The ministries of Chemical & Fertiliser and Petroleum are working on the proposed 1.3 million tonnes per annum plant, which once successful, will lead to urea prices coming down by 50 per cent, he had earlier said.
The Minister had visited Tehran in May, and both nations had inked a pact to develop the Chabahar port.
Iran's Foreign Minister Mohammad Javad Zarif had also called on Gadkari last month.
In August, Gadkari had said that Iran has given "very good offers" to India to develop the integrated Chabahar port, which has a special economic zone (SEZ).
source;-http://ift.tt/LUcUH1
RBI permits booking of forward contracts upto USD 1,000,000 by residents on simple declaration basis
FEMA/ILT : Risk Management & Inter-Bank Dealings : Liberalisation Of Bookings Of Forward Contracts
RBI permits use of Nostro a/c of commercial banks of 'Asian Clearing Union' members for settling tra
FEMA/ILT : Memorandum Of Procedure For Channeling Transactions Through Asian Clearing Union (ACU)
Indian Rupee Closes 11 Paise Lower At 65.06 Against Us Dollar
The Indian rupee fell by 11 paise to end at 65.06 against the US dollar today on fresh demand for the American currency from banks and importers amidst a decline in equity markets.
The local currency opened lower at 65.14 as against yesterday’s closing level of 64.95 at the Interbank Foreign Exchange (Forex) market on initial dollar demand.
It hovered in a range of 65.18 and 65.03 during the day before settling lower by 11 paise, or 0.17 per cent, at 65.06.
The domestic currency had gained 46 paise or 0.70 per cent yesterday.
The dollar index was traded down by 0.37 per cent against a basket of six currencies.
In New York, the dollar strengthened against the yen yesterday after the Bank of Japan left its programme of asset purchases unchanged at the close of its two-day policy meet.
However, the dollar was moderately lower against the yen in directionless Asian trade today, with a weaker Nikkei Stock Average prompting buying of the Japanese currency.
Japanese core machinery orders fell at a faster pace than expected for the third straight sequential decline amid concerns over an economic slowdown in China.
Meanwhile, the benchmark BSE Sensex ended lower by 190.04 points, or 0.70 per cent, at 26,845.81. Veracity Group CEO Pramit Brahmbhatt said, “Not much movement was seen in the USD/INR pair. The rupee traded range- bound as investors preferred to be cautious in an uncertain market.
“After trading positively for six days in a row today, local equities closed on a weak note as profit booking was seen in the market which dented the rupee movement and forced it to depreciate.”
The trading range for the Spot USD/INR pair is expected to be within 64.70 and 65.50, he added.
In forward market today, premium for dollar ended lower on good receivings from exporters.
The benchmark six-month premium payable in March fell to 199-201 paise from 204-206 paise yesterday while those payable in September 2016 also dropped to 413-415 paise from 417-419 paise.
The RBI fixed the reference rate for the dollar at 65.1570 and for the euro at 73.3277.
The rupee dropped further against the pound sterling to finish at 99.59 from 99.41 yesterday and fell against the euro to 73.37 from 73.13 in the previous session.
It also fell against the Japanese currency to settle at 54.28 per 100 yen from 54.08 in the earlier session.
source:- financialexpress.com
AO can't make sec. 40A(2) disallowance without bringing evidence to prove excessive payments
IT : Where Assessing Officer had merely assumed certain facts without bringing any evidence or material against assessee in respect of excessive payments of transportation and handling charges, disallowance under section 40A(2) was to be deleted
RBI requires claims on foreign central banks to be risk weighted alike claims on foreign sovereign
BANKING : Risk Weights for Claims on Foreign Central Banks
SetCom can’t deny benefit of reduced penalty to eligible assessees
Excise & Customs : Settlement Commission is vested with powers of Central Excise Officer therefore it has to pass orders in consonance with provisions of Central Excise Act. Hence, where assessee has paid duty and interest within stipulated time; SetCom has to extend benefit of reduced penalty to assessee. Further, it cannot direct assessee to make payments within a period shorter than that specified in Act
Assessee-trust gets more one chance to produce details of exp. incurred on relief work
IT : Where assessee was carrying out relief work in areas affected by natural calamities but it could not produce details of expenditure on said activities, issue was to be restored to Assessing Officer to give one more opportunity to assessee to produce details
No duty-free inputs in GST-regime but exporters can claim refund afterwards: Joint Committee report
ST : Report of Joint Committee on Business Processes for Gst on Refund Processes
Proceedings under NI Act can't be stayed by invoking powers under Companies Act
CL: Proceedings under section 138 of the Negotiable Instruments Act, 1881 cannot be stayed by invoking power under section 446 of Companies Act, 1956
Printing process amounts to manufacture if resultant paper can only be used to wrap specific product
Excise & Customs: Assessee purchased GI paper and carried out customized printing according to the specifications of customers. Since after printing, end use of paper was confined to only specific product of particular customer therefore a new product had emerged, i.e., paper with distinct character and use of its own which it did not bear earlier. Hence such process of printing amounted to manufacture
Business transactions between two entities can't be termed as deemed dividend
IT : Where current account transactions between two group companies were business/commercial transactions, same could not be regarded as deemed dividend under section 2(22)(e)
Joint Committee’s report on GST registration – Multiple units within State of single entity can be r
ST : Report of Joint Committee on Business Processes for Gst on Gst Registration
Application u/s 10(23C) can't be rejected on failing to attach audit report thereto
IT : Furnishing of Audit Report in Form No. 10BB may be necessary for seeking approval under section 10(23C); however, mere failure to file Audit Report along with application under section 10(23C) would not result in rejection if the assessee furnishes the said report subsequently, prior to the rejection of the application
Committee of State FMs urges for extensive use of e-banking for GST payment
ST : Report of the Joint Committee on Business Processes for Gst on Gst Payment Process
AO couldn't reject books of doctor by presuming that all patients who had undergone lab tests had un
IT : Assessing Officer could not reject books of assessee-doctor by presuming that all persons who had undergone lab tests had undergone surgery
Appeals arising in Uttarakhand shall be filed in CESTAT, Delhi and not in Allahabad
Excise : Clarifications on Filing of Appeals, Arising from Territorial Jurisdiction of State of Uttarkhand Based on Cause of Action Arising within State of Uttarakhand
No penalty on basis of statement of director if no incriminating was found during search
IT: Where assessee withdrew claim for depreciation on IPR in statement during search and seizure operations undertaken on assessee but nothing incriminating was found during search which was concealed by assessees, penalty could not be levied under section 271(1)(c) merely on basis of statement during search
Assessee wasn't liable to confiscation penalty under rule 26 of Excise since goods were not confisca
Excise & Customs : Penalty under rule 26 of the Central Excise Rules applies only if concerned person deals with goods liable to confiscation and therefore, where there is no demand of duty and no confiscation of goods, penalty under Rule 26 cannot be levied
SEBI reviews capacity planning framework of stock exchanges and clearing corporations
SEBI : Review of Capacity Planning Framework of Stock Exchanges and Clearing Corporations
IRDA notifies forms for insurers for registering as 'International Financial Service Center Insuranc
Insurance : Form Irdai/sez/application - Application by An Indian Insurer for Grant of Registration as International Financial Service Centre Insurance Office (Iio)
RBI boosts affordable housing; cuts risks weight for individual home loans and eases loan caps
BANKING : Individual Housing Loans : Rationalisation of Risk Weights and Ltv Ratios
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