AO couldn't tax interest on accrual basis if recovery of principal amount of loan is doubtful

IT : Where assessee was in fact not receiving any interest on loan advanced and it had to write off said loan finally in subsequent year, no addition could be made on account of accrued interest just because assessee was following mercantile system of accounting

Now Commissioner can admit DVAT refund application from embassies upto 1 year of end of relevant qua

VAT/DELHI/NOTIFICATION/INDIAN ACTS & RULES : Delhi Value Added Tax (Amendment) Rules, 2015 – Amendment in rule 35

Winding-up petition admitted as co. never raised any defence until statutory notice was served by su

CL: Where respondent-company had admitted its liability to pay amount due to petitioner against supply of books and they had no defence for amount admitted and claim was not disputed contemporaneously but was disputed only when demand for payment came to be raised through statutory notice, winding up petition against respondent was to be admitted

Indirect Tax Ombudsmen to hold meetings with trade and industry associations to hear problems of tax

SERVICE TAX/CIRCULAR : Chairman, CBEC holds a meeting to strengthen institution of Indirect Tax Ombudsmen (ITOM)

Rebate on exported goods under Excise Rule 18 is available for inputs as well as finished goods: (SC

Excise & Customs : Word 'or' in rule 18 of the Central Excise Rules, 2002, to be interpreted as 'and' and therefore, the exporters are entitled to both rebates under rule 18 (viz. input-stage rebate as well as output stage rebate on finished goods) and not one kind of rebate

Delhi Govt. hikes sales tax on Aviation Turbine Fuel to 25%

VAT/DELHI/NOTIFICATION/INDIAN ACTS & RULES : Delhi Value Added Tax Act, 2004 – Amendment in Third & Fourth Schedule

High Court upset with errant behaviour of AO in imposing tax on two assessees for same income

IT: Where assessee had given a building on rent to Government and Assessing Officer fixed rent of building at a higher amount than disclosed by assessee and record showed that penalty proceedings under section 271(1)(c) were initiated against assessee and on verification of matter they were dropped, once penalty proceedings were dropped, rent for building must be taken as disclosed by assessee

Sec. 54(4) contemplates investment in house before due date of filing of belated return

IT : When sale consideration/capital gains has been utilized for purchase or construction of new asset before due date for furnishing return of income under section 139(4), assessee is entitled to claim deduction in respect of amount so utilized under section 54F

Kelkar Committee presents its report to FM on PPP Model of infrastructure development

IT : Report of Kelkar Committee on revisiting and revitalizing PPP Model of infrastructure development submitted to Finance Minister

Profitability in transaction doesn't indicate that it is at Arm's length price

The answer to the issue whether a transaction is at an arm's length price or not is not dependent on whether the transaction results in an increase in the assessee's profit

Share transactions carried out with six brokers out of borrowed fund held as business transactions

IT: Where assessee borrowed funds for purchase of shares, transactions was carried out with many brokers and transactions had resulted in crores of rupee, income earned on such transactions was to be assessed as 'business income'

Reasons for making reassessment must be given at the time of assessment and not during appellate pro

IT : Where reasons recorded for reassessment were not supplied to assessee at time of assessment but during appellate proceedings, there was violation of principle of natural justice

Govt. plans to phase-out corporate tax exemptions and deductions

IT/ILT : Finance Minister's Budget Announcement – Phasing out plan of deductions under Income-tax Act

Rbi Sets Rupee Reference Rate At 66.09 Against Dollar

MUMBAI: The Reserve Bank of India on friday fixed the reference rate of the rupee at 66.0940 against the US dollar and 70.8594 for the euro.

These rates were fixed at 66.1105 and 70.7779 respectively on Thursday.

According to an RBI statement, the exchange rates for the pound and the yen against the rupee were quoted at 101.0379 and 53.82 per 100 yens, respectively, based on reference rates for the dollar and cross-currency quotes at noon.

 

 

 

 

 

 

 

 

Source : timesofindia.indiatimes.com

New grounds may be raised before Apex Court on issues involving wide ramifications

Excise & Customs : Where issue involved is an important question having reasonably wide ramifications, appellant may be allowed to raise new grounds for first time before Supreme Court

‘Two Weeks On, Govt. Gets Just 400 Gm Yellow Metal

 Gold Monetisation Scheme, launched by Prime Minister Narendra Modi earlier this month, has so far attracted 400 grams of gold, industry body GJEPC on Thursday said. According to official estimates, around 20,000 tonnes of gold worth over Rs.52 lakh crore is lying idle with households and temples in the country.

Gem and Jewellery Export Promotion Council’s (GJEPC) northern region Chairman Anil Sankhwal said, “Under gold monetisation scheme 400 grams have been deposited so far.”

Industry representatives on Thursday met Economic Affairs Secretary Shaktikanta Das and discussed ways for opening more centres for gold testing.

“If the 13,000 BIS-certified jewellers are allowed to act as collection agents, then I am hopeful that the scheme will take off in a good way,” Mr. Sankhwal said.

Apart from gems and jewellery industry, the meeting was also attended by representatives from the Reserve Bank of India, Bureau of Indian Standards (BIS), MMTC and private banks.

Vice-Chairman, Export Promotion Council for EOUs and SEZs and CEO, P. P. Jewellers, Rahul Gupta, said: “We requested Finance Ministry to allow jewellers registered with BIS to act as collection point for gold.”

At present, there are 3.5 lakh jewellers in the country, of which 13,000 are BIS-certified. Now the Finance Ministry in principle have agreed to make them eligible as testing centres.

According to a ministry official, 55 gold purity testing centres would come up by December, up from 29, at present. Also number of gold refinery would go up to 20, up from four at present. Mr. Sankhwal said Economic Affairs Secretary had asked BIS to fasten the process of registration of jewellers as collection agents and give out the licences within 15 days.

Under Gold Monetisation Scheme, launched on November 5, banks were authorised to collect gold for up to 15 years to auction them off or lend to jewellers from time to time. Depositors will earn up to 2.50 per cent interest per annum, a rate lower than bank deposits. As far as the scheme is concerned, earnings are exempt from capital gains tax, wealth tax and income tax.

There will be no capital gains tax on the appreciation in the value of gold deposited or on the interest made from it.

The designated banks will accept gold deposits under the short-term (1-3 years) bank deposit as well as medium (5-7 years) and long-term (12-15 years) government deposit schemes. The designated banks may sell or lend the gold accepted under the short-term bank deposit to MMTC for minting India Gold Coins and to jewellers, or sell it to other designated banks participating in the scheme.

To meet the growing domestic demand, India imports about 800-1,000 tonnes of gold annually.

Source : .thehindu.com

 

RBI clarifies on applicability of consolidated capital adequacy norms to Non-operative Financial hol

BANKING : Non-Operative Financial Holding Company (NOFHC) – Application Of Capital Adequacy Norms

IRDA notifies norms on 'other forms of Capital'

INSURANCE/INDIAN ACTS & RULES : IRDAI (Other Forms Of Capital) Regulations, 2015

Big Deal For Cotton, Textile Industry

The Council for Scientific and Industrial Research (CSIR) has introduced new pest-resistant cotton varieties within the savannah ecological zones to improve production of the cash crop to feed the textile industry.

The new pest-resistant cotton varieties Round Up Flex (RRF) is a trait tolerant to glyphosate and the Roundup Ready Flex/Bollgard 2 herbicides  are also tolerant to glyphosate in addition to offering insect protection, and are those currently being tried for the farmers.

The Bacillus Thuringiensis (BT) cotton, which is able to withstand insect protection trials in the three northern regions, is aimed at revamping the cotton industry to feed the textile industries and enhance the economy.

The new varieties, which were introduced in partnership with Savannah Agricultural Research Institute (SARI), are expected to produce high-quality cotton so as to revamp the cotton industry which employs a lot of people in the northern sector.

Some farmers who spoke to the B&FT said the new varieties will help them produce cotton to boost the countrya??s textile industry, and also generate revenue for government through exports.

The farmers are eager to access the seeds for cultivation after being sensitised and taken through field demonstrations on the best agricultural practices, and urged SARI to make the seeds accessible and affordable for them.

They therefore called on the National Bio-Safety Authority to hasten its investigations to approve release of the new varieties to help farmers access them for the next season.

The farmers spoke to B&FT at an open field-day for farmers and stakeholders, held at Nyankpala in the Northern Region by the CSIR-SARI in collaboration with Monsanto of Burkina Faso.

The event was aimed at observing and evaluating the performance of Roundup Ready herbicides on cotton varieties under the Ghana Cotton Growing Environment.

It was also to determine the effectiveness of the two glyphosate formulations on weeds when applied on the two genetically modified (GM) cotton varieties tolerant to glyphosate and protection.

Dr. Emmanuel Chamba, Principal Investigator CSIR-SARI, said farmers who adapt to the new technology will increase their yields.

He noted that the institute is embarking on the new varietiesa?? trials in the three northern regions of the country to ascertain the producta??s quality.

According to him, samples have been sent to the Public Procurement Regulatory Authority (PPRA) and the National Bio-Safety Authority (NBA) for approval, and when done will be commercialised to farmers.

He said the trials are being undertaken to ensure that all the safety precautions are observed to avoid any negative impact on the environment.

According to Dr. Chamba, while trying the BT cotton seeds. ?We sprayed the BT cotton two times only as compared to the six times we did for the non-BT (conventional) cotton.

So with the BT, it was proven how farmers can cut down their spraying cost; how they will also reduce the impact of the chemicals on their environment; and again how farmers will be able to save time.

He said the CSIR-SARI is committed to undertaking relevant research activities based on an approved and appropriate national regulatory framework.

The process, he said, aims at developing technologies and innovations that are to enhance and sustain agricultural productivity in the savannah ecological zone.

Dr. Mashad Abdulai, Chairman Institutional Bio-Safety Committee (IBC), said most farmers after cultivation leave their cotton-crops to the mercy of the unwanted weeds and concentrate on the other crops, which results in bad yields.

With this technology, he said, no manual weeding is needed; only spray twice and kill the weeds, leaving the crop alone.

Source: Cotton market news
 

No denial of sec. 10B benefit if only a part of manufacturing is outsourced which was under direct c

IT: Where only a part of manufacturing activities was got done by assessee from outside agency and that too under direct control and supervision of managerial and technical staff available with assessee, assessee was entitled to exemption under section 10B

India's Mines Ministry Propose Scrapping Export Tax On Iron Pellets

NEW DELHI: India's mines ministry has written to the finance ministry to propose scrapping a 5 percent export duty on iron ore pellets, Mines Secretary Balvinder Kumar told Reuters, adding the government could also look at abolishing duty on low-grade iron ore.

He said miners in Goa have written to him seeking the cancellation of the 10 percent duty on overseas shipments of iron ore from the state. Goa is known for low-grade ore used mainly by Chinese steel mills.

India was also looking at a request to raise the import duty on aluminium to 7.5 percent from 5 percent to protect local companies from rising supplies from countries like China.

 

 

 

 

 

 

 

 

Source :economictimes.indiatimes.com

Us Opposes India's Latest Round Of Incentives To Boost Textile Exports

NEW DELHI: The United States has opposed India's latest round of incentives to provide a fillip to exports, alleging violation of a global trade rule for export competitiveness in textiles.

Commerce department officials said the US raised this issue more than a week ago, after India increased support for exports of several products including textiles while expanding the scope of the Merchandise Exports from India Scheme (MEIS) on October 30.

The government included exports of cotton fabrics, both woven and knitted, and made-ups to leading markets including African countries under the MEIS. Under the World Trade Organisation's agreement on subsidies and countervailing measures, when the export share of a developing country with per capita income below $1,000 a year touches 3.25% in any product category for two consecutive calendar years it is deemed to have gained "export competitiveness".
 

 

 

 

 

 

 

 

 

Source :economictimes.indiatimes

HC nods to Amalgamation Scheme framed for tax planning as it didn't affect public interest

CL: Where main purpose of proposed scheme of amalgamation between trnsferee company and transferor companies was to streamline affairs of companies,tax planning and scheme did not in any manner affect interest of any of stake holders, including public,proposed scheme of amalgamation was to be sanctioned.

Gold Bar recovered from gold mud held as primary gold; exempt from excise duty

Excise & Customs : 'Gold bar' recovered from 'gold mud' is a 'primary gold' derived from 'mud form of gold'; hence, same is exempt from duty and exemption cannot be denied merely because 'gold mud' was, in turn, recovered from 'anode slime'

RBI allows Regional Rural Banks to provide internet banking facility for non-transactional services

BANKING : Internet Banking Facility For Customers Of Regional Rural Banks

Now banks offering factoring services can decide pre-payment amount on basis of their own assessment

BANKING : Review Of Provision Of Factoring Services By Banks

Mere non-intimation of amendments to trust deed couldn’t lead to cancellation of its registration

IT : Mere non-intimation of amendments in trust deed to department cannot ipso facto lead to cancellation of registration under section 12AA(3)