Competition Act: Where there were large players such as Omaxe Ltd. in relevant market for provision of services of development and sale of residential plot in Bhiwadi and its nearby areas, OP was not dominant in relevant market and, therefore, had not abused its dominant position by demanding additional payment from informant-allottee
Monday, 26 October 2015
No TP adjustment on pretext of outstanding receivables when working capital adjustment is already ma
IT/ILT : Where in transaction with AEs, assessee earn significantly higher margin than comparable companies and such higher margin compensates for credit period extended to AEs no further TP adjustment was required
Exemption available on payment of duty in cash isn't available if duty paid by use of credit
Excise & Customs : Where partial exemption is conditional upon payment of duty in cash without use of credit, said exemption has to be construed strictly and cannot, therefore, be extended to assessee paying concessional duty using credit balance
No disallowance of contribution to PF just because PF wasn't recognized by Jurisdictional CIT
IT : Contribution made by assessee in pension fund could not be disallowed on ground that same was not recognised by Jurisdictional Commissioner, as under section 36(1)(iv) it is nowhere mentioned that pension fund should be recognised only by Jurisdictional Commissioner and that approval of Jurisdictional Commissioner is mandatory
No ST if entire consideration for immovable property is received after issue of occupancy certificat
SECTION 65B(44) OF THE FINANCE ACT, 1994 – SERVICE - MERE TRANSFER OF TITLE IN IMMOVABLE PROPERTY IS EXEMPTED FROM SERVICE TAX
Cbec Redefines Import Value Of Capital Goods
The Central Board of Excise and Customs (CBEC) has revised its 2008 guidelines for determining the value of imported second-hand capital goods, for the purpose of charging duty. Its circular (No. 25 of October 15) first affirms a fundamental proposition in customs valuation law, that where used second-hand machinery is exported to India and the sale meets all the requirements in the Customs Valuation Rules of 2007 (CVR-2007), the price paid or payable will be the basis for determining the assessable value. However, the circular goes on to undermine that basic mandate.
Section 14 of the Customs Act, 1962, gives primacy to the transaction value i.e., the price paid or payable for imported goods. Rule 12 of CVR-2007 has some criteria for doubting a transaction value declared by an importer and for rejecting it. CBEC now adds its own criteria for rejection of the transaction value, by prescribing comparison of the declared value with that determined on the basis of a chartered engineer's certificate.
CBEC says the value declared by an importer shall be examined with respect to the report of a chartered engineer and the depreciated value of the goods, determined in terms of circular No. 493/124/86-Cus VI dated November 11, 1987, and one of January 4, 1988. If this comparison does not create any doubt on what is declared, these may be accepted. If there are significant differences arising from such a comparison, the officer concerned shall seek an explanation from the importer to justify the declared value. The officer will determine if the declared value may be accepted. If rejected, the value is to be determined in terms of rules 4 to 9 of CVR-2007, says CBEC. These instructions are not very different from its earlier circulars.
The latest circular also says inspection/appraisal reports by a chartered engineer or equivalent, based in the country of sale of the second-hand machinery, must be accepted by Customs. It prescribes the format in which these reports shall be prepared.
If an importer does not produce this report in the prescribed format from the country of sale, he might engage the services of inspection agencies as in the Handbook of Procedures, Vol. 1 (HB-1), notified by the Directorate General of Foreign Trade.
In case the agencies notified in HB-1 are not available at the port of import, the importers will be free to select any chartered engineer from those empanelled by the Customs House at the port. The circular prescribes the format of the certificate to be obtained from the agencies in India.
What CBEC has done is to relegate to the background the primacy in law given to the transaction value. Instead, it gives primacy to the depreciation method prescribed by it, a method upheld in some judgements. Importers have to comply with the circular, no matter how genuine their transactions with suppliers.
Source:- business-standard.com
Ludhiana Inc Hails Centre's New Duty On Import Of Auto Parts
Industrialists have welcomed the Centre's move to impose an anti-dumping duty on some auto parts being imported from China. However, at the same time, they have said that more steps are needed for the country to realize its 'Make in India' ambitions.
An anti-dumping duty of $0.35 to $1.11/kilogram has been imposed on front axle beam and steering knuckles for medium and heavy commercial vehicles. These are used in all vehicles with more than four or more wheels.
Terming it a good step, Focal Point Industrial Sheds Association president Rajneesh Ahuja said this would not only help auto parts' manufacturing industry, but also other industries.
However, he said that there is a need for more steps for helping the industry "First of all, one has to understand why China is giving cheaper products. The term loan on machinery there is 4%. In our country, it is 14%. This should be reduced. Similar is the case with working capital interest, which is higher in India. These are reasons why we don't have a level-playing field against other countries," Ahuja said.
He added that the industry should be made competent enough to deal with the situation on its own, so that there is no need for anti-dumping duty and other such steps.
Auto Parts Manufacturers' Association president Gurpargat Singh Kahlon also hailed the step and that there was a need for this to save the industry, which is "bleeding white in competition by the much cheaper products from China". "I just hope the government would take more such steps and adopt a multi-pronged policy to help the industry compete internationally, especially with China. If at all Make in India has to be turned into a reality, the government has to help manufacturers and slash interest rates," he added.
Source:- timesofindia.indiatimes.com
India's Electronic Imports May Exceed Overseas Purchases Of Bullion
India’s electronic imports could exceed the overseas purchases of bullion for the first time this year thanks to an increase in the import of smartphones. Estimates based on government data showed that the import of electronics surpassed those of gold and silver in the first six months of the current financial year.
"There is bigger concern as real electronic imports are much more than what is captured. Electronic components of cars such as electronic gears are still not counted, else these would take the import figure to a much higher level," said Ajay Sahai, director general of the Federation of Indian Export Organisations
India is one of the fastest growing consumers of electronics globally. Domestic production of electronic goods was $31 billion during 2014-15. Electronic imports grew from $2.85 billion in May to $4.38 billion in September. This growth was led by a sharp rise in purchases of integrated chips, personal computers, and more. In April-August, mobile phone imports were pegged at $2.4 billion. The import of such large quantities of electronics questions the success of the government's target of ‘net zero imports’. It also highlights the need to direct the focus of the Make in India initiative on the electronics sector.
Director of Ahuja Radios, Suresh Madan said, “The government talks of 'Make in India' but there is no change in labour laws or improvement in transportation and power availability that can encourage small and medium enterprises, which value add to imported goods to the order of 400-500 per cent.” He also cited the removal of a 2 per cent incentive for electronic hardware exports to the EU, the US, and India’s neighbours as the reason why his company’s overseas sales contracted by 35 per cent in the past six month. India sells $1.8 billion worth of components abroad with Europe being the top destination. The industry also criticises the inverted duty structure that hinders domestic manufacturing. For example, the import of microphones has zero duty, but its components attract a duty of 7.5 - 10 per cent.
Source: ET Retail
Ge’S India Unit To Export Med Equipments To Africa, Asean
GE Healthcare’s affordable range of medical technology products manufactured in India will soon be exported to Africa and Asean countries. The low-cost medical equipments have already garnered sales of $260 million for the company.
India is a key manufacturer of GE’s affordable solutions as part of its newly formed business unit - Sustainable Healthcare Solutions. The three manufacturing facilities in Bangalore produce medical technology products, majority of which is currently consumed by the country. Some are exported to neighbouring south Asian countries.
The scope of the business unit is being expanded to cover Africa and Asean countries. According to Terri Bresenham, president and CEO of GE Healthcare, India, Africa and Asean, $260 million sales from the segment will grow in double-digits in the future. In India, the tier II, III and smaller towns account for 60 per cent sales of affordable equipments, while metros and tier I cities account for the rest.
“India is important in terms of affordable healthcare. The market demands products of high clinical quality, which can stand heavy patient load and work robust in conditions where there are problems like power fluctuations. The tough situation makes it a great place to design and develop products for the developing markets. What works here will work anywhere in the world,” she said.
The company has developed 17 products, including x-rays, monitoring systems, ultrasound scans and magnetic resonance systems. The target is to develop 100 products and the company will be spending $300 million in five years.
Despite the inverted duty structure in the medical technology space, GE finds India to be a key manufacturing hub due to its skill sets.
“In other countries, the government ensures availability of suppliers for medical technology producers. Making components available is a problem due to the inverted duty structure in India, but the country has skills and medical fraternity that can help us in designing products,” said Bresenham.
The company is also evaluating ways to increase production capacity. Currently it has enough room to increase production in the existing facilities. By next year it will take a call on expanding the capacity of existing facilities or setting up new facility.
Source:- mydigitalfc.com
India's Dairy Products Export Seen Flat At 30K In 2016: Usda
India's dairy products (non-fat dry milk) exports are projected to remain flat at 30,000 tonnes next year on expectations of high global supplies and low prices, according to a latest USDA report.
The country's milk output may increase by 4.8 per cent to 154 million tonnes assuming a normal monsoon in 2016, while domestic consumption of milk is forecast to rise by 5 per cent to 62.75 million tonnes in the same period, the US department of Agriculture (USDA) said.
"Overall dairy exports (from India) are minimal due to high domestic consumption. CY 2016 non-fat dry milk (NFDM) exports are projected to be flat at 30,000 tonnes due to uncompetitive export prices," USDA said in its report.
High global supplies are expected to keep international prices low, it said.
Due to slow export pace, the country's non-fat dry milk (NFDM) export are revised down to 30,000 tonnes for 2015.
India, the world's largest milk producer, generally exports NFDM to milk-deficient countries including Bangladesh, Pakistan, Nepal, Bhutan, the UAE, and Afghanistan.
The country also exports smaller volumes of casein, butter and other dairy products to neighbouring countries.
According to the USDA, India's fluid milk production is estimated to increase by 4.8 per cent to 154 million tonnes next year assuming a normal monsoon.
The combined buffer and ghee output is estimated to rise by 3 per cent to 5.2 million tonnes in 2016 on rising domestic demand due to population growth and demographic shifts.
The domestic milk consumption is also estimated to rise by 5 per cent to 62.75 million tonnes on population growth in the said period, it added.
USDA said that due to rising incomes, urbanisation and other demographic shifts, demand has increased for more value-added dairy products.
Cooperatives and private sector dairies are producing more dairy products to meet this demand, such as milk powder, butter, ghee, paneer, flavored milk, ice cream, cheese, yogurt and ethnic sweet, it added.
Source:- timesofindia.indiatimes.com
Benefit of payment of 8% amount for using ethyl alcohol in manufacturing wasn't available after 1-3-
CENVAT : On or after 1-3-2002 vide amended clause (a) of Rule 6(3), certain goods such as ethyl alcohol, etc. were excluded from benefit of scheme of tax payment of 8 per cent
Addition made on jeweller as he failed to substantiate unaccounted stock of gold found during survey
IT: Where Assessing Officer made certain addition to income of assessee on account of excess stock of gold found at its business premises during survey, since assessee failed to prove source of acquisition of said gold, impugned addition was justified
Co. developing own software products isn't comparable with a software service provider
IT/ILT: Companies which are on similar standards to assessee can only be taken as comparables, thus a company having turnover in excess of Rs. 200 crores engaged in provision of software services, BPO services and which had also developed its own software products was not comparable to assessee, who was a mere software service provider to its AE having turnover of only Rs. 11.32 crores
No denial of sec. 80-IB relief if completion certificate was delayed by Municipal Authority
IT: Where assessee-builder undertook a housing project which was completed on time and an application was moved in time for seeking completion certificate from Municipal Authority but same was issued to assessee with delay, that delay could not be attributed to assessee and assessee was entitled to exemption under section 80-IB(10)
Interference with valuation was unwarranted as valuer wasn't related to transferee co.: HC
: Where valuer was neither related to transferee company nor same was statutory auditor/tax auditor/tax consultant of transferee company or its major shareholders, no interference with valuation was warranted and there was no need for appointing an independent valuer
Issue related to clubbing of turnovers for SSI-exemption must be decided on basis of fact
Excise & Customs : Where issue of clubbing of turnover under SSI-exemption as well as issue of invocability of extended period was decided without examining facts and grounds, matter was to be remanded back to Tribunal for consideration afresh
ITAT refused to invoke LOB clause of India-UAE treaty as shipping Co. wasn’t a conduit Co. in UAE
IT/ILT : Shipping company in UAE could not be said to have been created for the purpose of availing India-UAE tax treaty benefits on the ground that such company was owned by shareholders in Switzerland when treaty protection in respect of income of such a nature was anyway available under India-Swiss tax treaty
Paying duty at lower rate attracts extended period if assessee undertook to pay duty at higher rate
Excise & Customs : Where, after filing undertaking that duty would be paid at higher rate under classification approved by revenue, assessee's act in paying duty at lower rate under different classification amounted to "misstatement" and therefore, extended period of limitation was invocable
Monetary limit to file an appeal before Tribunal would also apply to pending cases
IT : CBDT Instruction No. 5 of 2014 revising monetary limit to Rs. 4 lakhs for filing appeal before Tribunal apply to pending appeals also
Expenses incurred on shuttering, centering, scaffolding to construct bridges are allowable exp. as u
IT: Expenditure incurred on constructing temporary accommodation at construction site was to be allowed
President of Tribunal can refer matter to more than one member if case of divergent opinions
Service Tax : In case of difference of opinion, President of Tribunal can refer matter to one or more of other Members and not necessarily a single third member; hence, difference of opinion relating to credit of telecom towers in Idea Mobile's case (along with these matters) was referred to Larger Bench of Tribunal
SLP granted as High Court hadn't cancelled registration of trust even when trustees were embezzling
IT : SLP granted against High Court's ruling that where assessee-trust was fulfilling its main object of imparting education, registration of trust could not be cancelled only on basis that trustees were misappropriating funds of said trust
Interest on foreign currency loan given to AE should be benchmarked as per LIBOR
IT/ILT : It is LIBOR which has to be applied in case of foreign currency loan given by assessee to its AE
IRDA notifies norms on establishment of 'common service centres' for insurance services
INSURANCE/INDIAN ACTS & RULES : IRDAI (Insurance Services by Common Service Centres) Regulations, 2015
Issue related to clubbing of turnovers for SSI-exemption must be decided on basis of facts
Excise & Customs : Where issue of clubbing of turnover under SSI-exemption as well as issue of invocability of extended period was decided without examining facts and grounds, matter was to be remanded back to Tribunal for consideration afresh
Production of backdated completion certificate won't allow sec. 80-IB deduction
IT: Where completion certificate of housing project of assessee was issued after cut off date by Local Authority but mentioned date of completion of project before cut off date, same could not fulfil condition specified in section 80-IB (10)(a) read with explanation (ii) thereunder and assessee was not entitled to deduction under section 80-IB (10)(a)
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