IT : There being no search under section 132, block assessment invoking provisions of section 158BC would not arise
Monday 16 November 2015
CBDT lays Std. Operating Procedure for allocation/transfer of cases and curing of defective appeals
IT/ILT : Section 260A of the Income-Tax Act, 1961 – Appeal to High Court – Procedure for Filing Appeals, Curing Defective Appeals and Effective Representation in Delhi High Court
CBEC issues directions for monitoring and disposal of pending cases
EXCISE : Monitoring and Disposal of Cases Pending for Adjudication
If pledging of shares is valid its subsequent enforcement before winding up can’t be held as fraudul
CL: Once original pledge by company-in-liquidation in favour of applicant was held to be valid, its subsequent enforcement could not be faulted on ground that it amounted to a fraudulent preference or invalid transfer during pendency of winding up
HC considers actual usage of rig instead of it being ready for use to determine PE
IT/ILT : In order to determine question as to whether assessee owing rig had PE in India, Tribunal rightly concluded that unless rig owned by assessee was actually used for a period of 120 days in India, it would not be sufficient to attract article 5(2)(j) of India - USA DTAA
Due date for filing of DVAT return of second quarter further extended to Nov 20, 2015
VAT : Filing of Online Return for Second Quarter of 2015-16 – Extension of Period Thereof
Govt. notifies accounting codes for payment of Swachh Bharat Cess
ST : Accounting Code for Payment of Swachh Bharat Cess
Base frame not classifiable under heading 'Industrial Pumps' as it isn't an essential part of indust
Excise & Customs : 'Base Frame' is not an essential part of 'Industrial Pump', as industrial pump may be sold separately; therefore, base frame was not classifiable under heading 8413 but only under heading 8485
Revenue can't challenge subsequent order of ITAT without any reasons after accepting its earlier ord
IT : Where jurisdictional Tribunal had allowed assessee's claim for exemption under section 10(10C) by following its earlier order which had been accepted by revenue by not preferring an appeal thereagainst, then it was not open to revenue to challenge Tribunal's order without giving reasons for taking a different view
Receipt shown in P&L A/c liable to MAT even if it is shown as capital receipt in notes to accounts
Remission of bank loan shown in P&L A/c shall not be excluded for computing book profits under section 115JB even if same was shown as capital receipt in notes to accounts
President promulgates two ordinances for speedy settlement of disputes
CORPORATE LAWS/INDIAN ACTS & RULES : Arbitration and Conciliation (Amendment) Ordinance, 2015
Niggling Doubts Over The New Gold Schemes
The government has launched, amidst plenty of fanfare, three new schemes to monetise gold in the country — the gold monetisation scheme, the sovereign gold bond and gold coin. The underlying objectives of all three are laudable. Households in India hold a large amount of their savings as physical assets — gold, silver and other precious metals and real estate. Gold especially has for long held a tremendous attraction both as an investment avenue as well as a store of value.
With very little of the precious metal now being mined in the country, the seemingly insatiable domestic demand is being met by gold imports. Hence a two-pronged strategy is needed to provide an instrument that would target would-be gold investors and second, to draw out gold lying idle in private hands.
Get the gold to banks
The idea behind gold monetisation is to lure gold, now held as physical assets in private hands, into productive financial savings. According to government statistics, the amount of gold with households is a mind boggling 20,000 tonnes. Even if 5 per cent can be mopped up through innovative financial instruments based on gold, the domestic demand — estimated at between 850 and 900 tonnes annually — can be met. A significant gain would, therefore, accrue to the macro-economy where gold imports, along with petroleum imports, have for long been a significant factor behind the current account deficit.
It is a different matter that with falling oil prices and consequently the reduced import bill, the current account deficit looks eminently manageable. But long term solutions are needed for gold. Those who cling to gold should be weaned away for which they need to be provided with a decent return and equally importantly a guarantee for the safety of their investment.
The gold monetisation scheme (GMS) appears to be central to the three schemes. It is a vast improvement over existing schemes in its genre and its appeal to medium and long term investors should be stronger. Under the new scheme, as small as 30 gms of gold can be accepted. The tenure can go up to 15 years and the scheme pays higher interest rates to depositors – 2.25 to 2.5 against one per cent before.
A synthetic bond?
The gold bond scheme is for those investors who buy gold as an investment. According to government estimates, a third of the domestic gold demand arises from those who buy gold bars and coins. The gold bond’s unique feature is that it will offer returns linked to market price of gold. This is akin to a synthetic bond mimicking gold prices.
Gold coins to be issued with Ashoka Chakra emblem is bound to be popular. It is hoped that the government would mop up enough gold through its monetisation scheme to meet the demand from jewellers as well as from the issuance of coins.
Compared to the draft guidelines , the new l guidelines for all the three schemes have been spruced up operationally and are friendlier to investors. Yet, niggling questions remain.
The gold monetisation scheme is no doubt an improvement over earlier scheme — it promises higher interest rate and retains the promise of returning the deposit as gold subject to certain conditions.
However, gold held as jewellery will be very difficult to be monetised. The point has been made several times before that there would be a sentimental objection to parting with jewellery, which in many households are passed on from one generation to another. In fact, no gold monetisation scheme can overcome the inhibitions of all would-be investors. People buy gold with different motivations. Pledging gold to meet seasonal requirements is very common. Many gold loan companies have grown exponentially recently, especially in Kerala. Whether the loan is taken from an NBFC or a money lender, the gold pledged can be redeemed in its original form and not melted away at the instance of a bank.
Despite much greater clarity in the operational aspects, it is obvious that the infrastructure for operationising a monetising scheme should be built up in a way that promotes efficiency as well as transparency.
There is high hopes that temples and other religious institutions who are large repositories of gold will invest in the monetisation scheme. The move will be controversial. There will always be a suspicion that politicians will get into the act. Moreover, religious traditions built up over centuries might have to reinterpreted in some cases. A better alternative to persuade the temples to convert a portion of their gold stock into coins, pendants and so on bearing the stamp of the presiding deity. This has already been tried out but from the point of bringing gold into mainstream financial sector has little relevance. One hopes that these schemes should succeed for the sake of the macro-economy. With the Prime Minister himself taking the initiative to popularise the schemes, they should make some headway. Fresh ideas are always welcome to remove possible glitches and make the schemes even more appealing.
Source : .thehindu.com
Inflation At -3.81% In October; Pulses, Onion Expensive
Deflationary pressure eased a bit with inflation rate moving up slightly to -3.81 per cent in October as pulses, vegetables and onion turning costlier.
This is 12 month in a row when the inflation at wholesale level remained in the negative territory. It has been in the negative zone since November last year.
The Wholesale Price Index-based inflation was -4.54 per cent in September. In October last year, it was 1.66 per cent.
Pulses and onion among the food items category turned costlier with inflation at 52.98 per cent and 85.66 per cent respectively during October.
The rate of price rise in case of vegetables was at 2.56 per cent as against -19.37 per cent in the same month last year, as per official data released on Monday.
Besides pulses and onion, the food items which became dearer during the month were milk (1.75 per cent) and wheat (4.68 per cent). However, inflation rate in case of potato was in the negative zone, -58.95 per cent.
Inflation rate in fuel and power segment was -16.32 per cent, while that in manufactured products was -1.67 per cent in September.
Inflation for August has been revised to -5.06 per cent, from the provisional estimate of -4.95 per cent.
The Reserve Bank would take into account WPI number for October while deciding on policy rate in its December 1 monetary policy review. RBI mostly tracks the consumer price index-based retail inflation for its monetary policy decisions.
Rising for the third straight month, retail inflation has climbed to 5 per cent in October, as against 4.62 per cent in the same month a year ago due to costlier pulses and other food items.
RBI governor Raghuram Rajan earlier this month had said that the central bank is comfortable with the current rate of interest till further room is available.
In September, RBI had reduced interest rates by more than expected 0.50 per cent and said it expects CPI inflation to reach 5.8 per cent in January 2016.
Source timesofindia.indiatimes.com
Coal India Dips 3% As Production Numbers Dissapoint
Shares of Coal India slipped over 2 per cent in Monday's trade after the company reported September quarter results largely in line with the expectations of the Street. The world's largest coal miner reported a 16 per cent year-on-year increase in net profit at Rs 2,543.80 crore against Rs 2,192.38 crore reported for the same quarter a year ago.
The scrip fell 3.16 per cent to hit a low of Rs 326.95 during morning trade.
Coal production during the second quarter of the financial year stood at 108.20 million tonne (MT) against 102.42 MT reported for the second quarter previous year, a statement released by the state miner on the BSE website said. "While production was slightly below our estimate at 108.2 million tonne for the quarter (against an estimate of 110.6 MT), offtake volume was marginally ahead of expectations at 121.8 million tonne (estimate 119.1 MT)," Angel Broking said in a note to investors.
Consolidated net sales of the company stood at Rs 16,957.59 crore during the quarter, registering an increase of eight per cent. "The increase in earnings was largely due to the higher production and better offtake during the period compared with the corresponding period of previous year," the miner said.
"E-auction realisations came in much lower than expected at Rs 1,788 crore. This was partially offset by better-than-expected washeries realisations of Rs 2,328 crore," the brokerage firm said. Angel Broking maintains a 'buy' rating on the stock with a target price of Rs 400.
Source :economictimes.indiatimes.com
Nalco To Invest Rs 5600 Crore At Alumina Refinery In Odisha's Damanjodi
KOLKATA: National Aluminium Company (Nalco), the country's leading state run PSU in the aluminium sector, has said it will invest Rs 5600 crore in setting up a 5th stream of one million tonne capacity in the precincts of the existing alumina refinery at Damanjodi, in Odisha's Koraput district.
Nalco latest investment thrust comes on heels of allocation of Utkal D&E coal blocks by the Centre and the state government's recommendation of Pottangi bauxite mines in favour of Nalco.
The plans of the navratna PSU was disclosed by mines secretary, Balvinder Kumar, when he called on Mr. Naveen Patnaik, Chief Minister of Odisha and Gokul Chandra Pati, Chief Secretary, Govt. of Odisha on Monday. T K Chand, CMD, NALCO was also present at the high-level meeting.
Mr Kumar also said Nalco would, at the same time, spend another Rs 2,000 crore to develop the 200-million-tonne coal blocks recently. These blocks, which were recently allotted to the company, are located in Angul district of Odisha. The company's Smelter and Power Complex is also located in the same district. The aluminium major is also closely associated with the state government in setting up an aluminium park in Angul to attract downstream industries.
"This is just a humble beginning in our roadmap for expansion and investment plans. Since our entire value chain is located in Odisha, we are committed to the people of the State. Besides, in the context of recently announced State Industrial Policy, it makes lots of business sense to invest in Odisha", T K Chand said. The state has recently launched a new industrial policy to attract an investment of Rs 1,73,000 crore in the state.
Source :economictimes.indiatimes.com
Msme Entrepreneurs Caught In Aadhaar Web
Efforts of entrepreneurs to start new ventures in the micro, small and medium enterprises (MSME) sector in the State have hit a roadblock. The situation is the result of a reform that envisaged registration of units, incorporating Aadhaar linkage, introduced under a direction from the Union government.
The State Industries Department has stopped issuing Entrepreneurs Memorandum Part-I, a document which facilitates access to official channels for getting the required licences and finance to establish the unit. The issuance of the memorandum has been stopped from October 20.
The action of the State government is the result of introduction of Udyog Aadhaar Memorandum as per instructions from the Ministry of Micro, Small and Medium Enterprises, vide letter dated September 18 this year. The Udyog Aadhar had been launched in Gujarat when Narendra Modi was the Chief Minister there.
According to the new regime, MSMEs are to register under a new format linking Aadhaar number and bank account. The application being filled up online facilitates registration for existing units only, according to industry representatives.
Basic document
The Entrepreneurs Memorandum Part-I is a basic document or a gateway to various facilities offered by government agencies and financial institutions. The document is necessary for the entrepreneur to approach banks, electricity board, pollution control board and other authorities. The Udyog Aadhaar scheme doesn’t provide such a platform. Prior to the implementation of Entrepreneurs’ Memorandum in 2006, the State government had been providing a provisional SSI registration to new enterprises through the District Industries Centres. The SSI provisional registration and permanent certification were transformed into Entrepreneur Memorandum-I and II respectively, in 2006.
All entrepreneurs had to comply with the rule then. Now, the government wants the units to get themselves registered under the new Udyog Aadhaar memorandum, but has failed to provide guidelines for new enterprises.
Industry sources said the State would have to issue a new notification to facilitate registration of new enterprises.
Source : thehindu.com
Copper Falls By 0.2% On Weak Global Cues
Copper futures fell 0.16% to Rs 317.20 per kg today after participants trimmed exposure, tracking a weak trend in base metals overseas.
At Multi Commodity Exchange, copper for delivery in November shed 50 paise, or 0.16%, to Rs 317.20 per kg in a turnover of 764 lots.
The metal for delivery in far-month February 2016 was trading down 20 paise, or 0.06%, to Rs 324.05 per kg in a business volume of 38 lots.
Analysts said besides subdued demand at domestic spot markets, weakness in the base metal pack at the London Metal Exchange (LME) as investors rushed to less risky assets after the terror attacks in Paris led to a fall in copper prices at futures trade here.
Globally, copper for delivery in three months dropped 0.9% to trade at $4,783 per tonne at LME, the lowest since July 2009.
source :.business-standard.com
Loss incurred on forex derivative contracts aren't speculative loss
IT : Where assessee, engaged in manufacturing and export of garments entered into forex derivative contracts and incurred loss, such loss was to be regarded as business loss which could be set off against business income of assessee
CBEC releases FAQs on Swachh Bharat Cess
EXCISE : Frequently Asked Questions (FAQs) on Swachh Bharat Cess (SBC)
Insurance services availed from foreign insurer for stock lying in foreign warehouse eligible as inp
Cenvat Credit : Service tax paid on insurance services received for insurance of (a) existing as well as retired employees, and (b) stock stored in foreign warehouses, is eligible for input service credit
Penalty levied on assessee for accepting cash loan as it failed to prove that such receipt was from
IT : Where assessee failed to prove that he had received Rs. 15 lakhs in cash towards advance for sale of property, AO was justified in holding that it was infact a loan received in violation of provisions of section 269SS and, thus, penalty order passed under section 271D was to be confirmed
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