VAT/INDIAN ACTS & RULES : Rajasthan Value Added Tax (Fourth Amendment) Rules, 2015 – Amendment In Rules 21, 22a, 53 And Form Vat-65; Substitution Of Rule 41 And Insertion Of Form VAT-72
Tuesday 22 December 2015
Assessee hadn't taken a wrong credit if it had paid duty on exempted goods when dept. didn't clarify
Cenvat Credit : Where assessee asks department to clarify applicability of exemption and in absence of clarification, proceeds with payment of duty along with benefit of Cenvat credit, then, assessee cannot be said to have 'wrongly taken' credit; hence, even if said goods are later clarified to be exempted and assessee is made to reverse credit, assessee is not liable to pay interest on reversed Cenvat credit
HC rejects Bright Line Test for determining ALP of AMP expenses
IT/ILT : Where the Revenue has been unable to demonstrate some tangible material that there is an international transaction involving AMP expenses between Indian subsidiary and foreign parent, the Revenue cannot proceed to determine ALP of AMP expenses by inferring the existence of an international transaction based on the bright line test
AO couldn't reopen assessment to seek more details of transaction
IT: Where assessee had shown gift of shares to a company, merely because assessee had been called upon by Assessing Officer for verification of value of shares in terms of section 47(iii), it would not enable revenue to resort to section 147
Genuine disputes relating to oppression and mismanagement not referable to arbitration
CL: Disputes raised in a properly filed petition under sections 397, 398, 402 and 403 are not referable to arbitration in accordance with agreement between parties
Co. rending engineering support services isn't comparable with a co. engaged in third party inspecti
IT/ILT : Assessee, which was rendering engineering support services including related design and drawing as per specification of its foreign AE, could not be compared with a company which was engaged in functions of Third Party Inspections (TPI), certification of equipment supplied by vendors and installation of work of contractors of ONGC, other government departments and private sector undertakings
Domestic Milk cans classifiable as 'kitchen articles' and not as 'cans'
Excise & Customs : Domestic Milk cans are classifiable as 'kitchen/household articles' under Heading 73.23 and not as 'cans' under Heading 73.10
Rupee Closes Marginally Higher Against Us Dollar At 66.33
The Indian rupee on Tuesday closed marginally higher against the US dollar, tracking the gains in the Asian currencies markets. This was the sixth consecutive session when the rupee closed higher against the US currency.
The rupee closed at 66.33 a dollar, up 0.03% from its previous close of 66.35. The local currency opened at 66.31 a dollar.
India’s benchmark equity index, BSE Sensex, ended at 25,590.65 points, down 0.56%, or 145.25 points.
The yield on India’s 10-year benchmark bond closed at 7.76% compared with its Monday’s close of 7.772%. Bond yields and prices move in opposite directions.
Traders are cautious in a holiday shortened week ahead.
Markets will remain closed on Friday for Christmas.
Since the beginning of this year, the rupee has weakened 4.9% against the dollar, while foreign institutional investors (FIIs) have bought $2.84 billion from local equity markets and $7.77 billion from the debt market.
Most of the Asian currencies were trading higher against the dollar. The Indonesian rupiah was up 1%, South Korean won 0.39%, China offshore 0.29%, Singapore dollar 0.17%, Taiwan dollar 0.14%, Thai baht 0.14% and Japanese yen 0.13%. However, Malaysian ringgit was down 0.14%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 98.334, down 0.04% from its previous close of 98.363.
Traders are awaiting the gross domestic product (GDP) and home sales numbers and corporate profits data in the US later in the day, according to a Reuters report.
Brent crude fell for 16 out of 19 trading sessions. Since 25 November, it fell 22.11%. Brent crude was trading at $36.57 a barrel, up 0.63% from its previous close.
China’s leadership signalled that it will take more steps to support economic growth from a 25-year low, including by widening the fiscal deficit and stimulating the housing market. Statements released at the end of the government’s Central Economic Work Conference also highlighted the desire for more “flexible” monetary policy, Bloomberg reported.
Source:- livemint.com
Failure to serve notice can be cured by Sec. 292BB but not failure to issue notice
IT : Failure of Assessing Officer issue notice under section 143(2) is fatal to order of reassessment; such failure cannot be condoned by referring to section 292BB
Kingfisher Airlines, a wilful defaulter can represent through advocate before Redressal Committee
Banking Laws : A Person who is proposed to be classified as a wilful defaulter by a Bank/FI and are given an opportunity of hearing before grievance Redressal Committee (GRC) of said Bank/FI, is entitled to be represented therein through advocates
DRT's jurisdiction to consider securitization application to be decided under RDDB Act and not CPC
SARFAESI: Jurisdiction of DRT to decide a Securitization Application under section 17 of SARFAESI Act, ought to be decided on principles enshrined in section 19(1) of RDDB Act rather than on basis of section 16 of CPC
No custom duty on 'diving equipments' if they were welded onto barge prior to import
Excise & Customs : Where diving equipments were welded onto barge even prior to import and continued to be so welded even when barges were returned back, said 'diving equipments' were eligible to be exempted along with barge
Sec. 14A disallowance not to be added back while computing book profits under Sec. 115JB
IT : While computing book profit for purpose of section 115JB, disallowance made under section 14A as also disallowance under normal provision of Act cannot be added back
Vietnam Cement Exporters Fail To Hit Target
Vietnamese cement producers are struggling to maintain high volumes of cement exports due to falling overseas demand.
According to the Vietnam National Cement Association (VNCA), Vietnamese cement makers have been facing fierce competition from China, the world’s biggest cement producer, which accounted for 60 per cent of the world total output.
Selling at lower prices and trying to boost export whilst facing tough times domestically have led to a spreading malaise across the Asian market, the association added. Competition from overseas producers has prevented Vietnamese cement makers realising this year’s export target of over 20Mt of cement and clinker.
Luong Quang Khai, chairman of Vietnam Cement Industry Corp (Vicem), the country’s leading cement producer which holds 35 per cent of the domestic market, said that its cement exports could only meet 60 per cent of the full-year’s target of 3.5Mt.
Nguyen Tien Dat, general director of Vissai Cement Group, another major cement and clinker exporter, said that the group was unlikely to attain the same goal set last year.
He claimed that cement exporters from Vietnam were struggling with the rising input cost while the import demand from overseas markets showed no sign of improvement.
Meanwhile, ports in Vietnam used to export from have not yet upgraded to handle large vessels over 20,000dwt. Vietnam’s cement companies must also export via free on-board (FOB) contracts, losing the competitive advantage compared to other peers in the region, including Thailand and China, according to cement analysts StoxPlus.
Vietnam has become the fifth-biggest cement producer and consumer in the world behind China, India, Iran and the US.The country now has 76 cement production lines with a combined output of 81.56Mta.
The Ministry of Construction forecast that Vietnam's sales of cement and clinker will rise 4-7 per cent on year to between 75-77Mt in 2016 despite persistent economic woes.
Source :cemnet.com
Uplinking of own TV channels to satellite is taxable under broadcasting services
Service Tax : Uplinking of own TV channels and earning 'airtime and uplinking charges' is prima facie taxable under Broadcasting services
Provisions relating to bail under PMLA overrides bail provisions of CrPC
PMLA : Section 71 of PMLA provides that the provisions of the PMLA shall have overriding effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force. PMLA has an overriding effect and the provisions of Cr.P.C. would apply only if they are not inconsistent with the provisions of this Act. Therefore, the conditions enumerated in Section 45 of PMLA will have to be complied with even in respect of an application for bail made under Section 439 of Cr.
Time-limit for sec. 54EC investment to be extended automatically on unavailability of desired bonds
IT: Where bonds of assessee's choice were not available throughout stipulated period for investment for claiming exemption from capital gain, time limit to invest in bonds would get automatically extended
Secondary Steel Sector Wary Of Decision To Raise Minimum Import Price
KOLKATA: The secondary steel sector is apprehensive about the government's proposed move to impose minimum import price (MIP) for steel. While falling steel prices, higher electricity costs, and interest burden are already a drag for smaller mills in the secondary sector, they feel that any plan to bring their raw material under the proposed MIP, will affect them. This could lead to heavy defaults on loans and significant jobs losses, since the sector supports some five million people in terms of direct and indirect employment. As per a steel industry report by Bank of America Merrill Lynch, out of the total Rs 2.8 lakh crore of NPAs in the steel sector, some Rs 1.95 lakh crore is with Tier 2 mills and the unorganized sector.
"While MIP is a good move, we would urge the government to implement it in a rational manner that should not harm the secondary steel sector," Prakash Tatia, chairman of Sponge Iron Manufacturers' Association (SIMA) said. Against installed capacity of 50 mt, domestic sponge iron production has been only around 18 mt with capacity utilisation of only 35% in the last 2-3 years.
While domestic steel industry has overall capacity of 105 million tonne (mt), with a crude steel output of close to 91 mt, around 54% of capacity is in the secondary steel sector, Tier-II and local steel units. To ensure the survival of some 2,000 secondary units which are in operation, government should ensure that iron ore and coal is available on affordable and consistent basis. There should also be a pricing mechanism for these raw materials based on export parity, Tatia said.
Some of the secondary units like, slab re-rollers for instance, use continuously cast slabs, not readily available in the country. Currently, slabs worldwide are available at a very reasonable price range between US$ 220-250 f.o.b (free on board), facilitated by the dip in iron ore, coking coal and scrap prices. These units depend on imports and if a MIP higher that the current import price is imposed on slabs it will deal a vital blow to their raw material costs, the SIMA official said. Incidentally import of slabs accounted for 3 lakh tonne out of India's over-9 mt of steel imports last year.
Another section of the steel user industry expected to be affected if the MIP is not imposed rationally are those who use it for critical applications. These special steels have to be necessarily imported and include clad steel, special grade boiler steel, API high-grade steel for high pressure applications and higher width/thickness requirements as well as special auto grade steel.
Source :economictimes
Iran Woos Indian Refiners To Drive Oil Sales In Cut-Throat Market
NEW DELHI: Spurred by the prospect of an end to western sanctions, Iran has agreed to consider Indian demands for steep oil price discounts and other buying incentives, sources said, as it works to rebuild market share in a world awash with crude.
Tehran's return to the market will deepen a global supply glut that has cut benchmark Brent crude prices by two-thirds since 2014, below the lows hit during the 2008 financial crisis and to levels last seen in 2004, leaving producers to battle for market share.
The National Iranian Oil Company's international affairs director, S.M. Ghamsari, met Indian refiners last week, the sources told Reuters, including firms that halted imports from Tehran because of the sanctions.
Rather than quoting its own terms and prices, people involved in the negotiations said the Iranian delegation made the rare move of asking the refiners for proposals that would make their supplies more competitive than those of rivals.
"I haven't seen them as flexible as they were in the recent meeting," said a refinery source who met Ghamsari. "They have sought our feedback on how to make pricing of their crude competitive."
Ghamsari was willing to consider better pricing and sales terms, as well as offering new grades of crude, to boost market share, said four Indian refinery sources with direct knowledge of the talks.
"Naturally, we will see if Iranian oil fits into our model. If it is economical, only then we will go for it," said a source at an Indian refinery that does not buy Iranian oil.
Currently, Iran offers 90-day credit, free shipping and some discounts on crude prices to buyers in India.
India is Iran's second-biggest customer for oil, and at around 4 million barrels per day (bpd) is the world's fourth-biggest oil consumer. The country imports some 80 per cent of its needs and demand is set to rise fast as the economy grows at over 7 per cent a year.
Ghamsari's office in Tehran said he was not available for comment.
CUT-THROAT COMPETITION
No date has been set for the lifting of nuclear sanctions on Iran, but Tehran said on Friday the country will export most of its enriched uranium to Russia in coming days, a key part of a deal reached last year with a group of six world powers.
Iranian exports would go head to head with competitors within the Organization of the Petroleum Exporting Countries (OPEC) like regional rivals Saudi Arabia and Iraq, which produce similar types of crude and have virtually the same trading routes and prices.
"The Saudis and Iraqis are already in the market. If Iran wants to corner their share, it has to offer better terms in the form of discounts and payment conditions," said Ehsan Ul-Haq, senior analyst at London-based consultancy KBC Energy Economics.
"It will be a cut-throat fight for market share among the Gulf producers," Haq said.
Formerly the second biggest OPEC exporter, Iran's crude exports have more than halved to around 1 million barrels per day (bpd) since 2011.
Tehran has said it plans to ramp up output by 500,000 bpd once sanctions are lifted, adding to overproduction that is estimated at between half a million and 2 million bpd.
The moves in India follow agreements to extend crude sales with its top two Chinese buyers into 2016.
In India, Iran already supplies oil to Mangalore Refinery and Petrochemicals, Essar Oil and Indian Oil Corp. Reliance Industries Ltd, Hindustan Petroleum Corp, HPCL-Mittal Energy Ltd, Chennai Petroleum Corp and Bharat Petroleum Corp stopped imports from Iran due to sanctions that hit banking channels.
Source :economictimes
Argentina’S Duty-Free Exports Of Soya Oil Fuel Worries Among Indian Extractors
Mumbai,
In yet another blow to the ailing edible oil industry, the Argentina government has removed export duty on soyabean and soya oil to make their exports competitive and retain its share in global edible oil market where prices are falling.
Pravin S Lunkad, President, Solvent Extractors Association, said the move by newly elected Argentina President Mauricio would have a positive impact on their export but soyabean and soya oil prices have started falling in the international markets.
Indian edible oil industry and farmers are already hit by the 24 per cent increase in edible oil import at 14.4 million tonnes last oil season (November 2014 to October 2015) worth about ?65,000 crore ($10 billion).
“Globally, edible oil prices are at record low levels of 2008 and Indian edible oil producers are unable to compete with rising imports due to high prices they pay for soyabean in India,” he said in a statement on Monday.
Indonesia and Malaysia, the major palm oil producing countries, have set up a council with a common objective to maintain higher price of palm products in the international market and reduce competition amongst them.
India imported nearly 9.5 million tonnes of palm products from Indonesia and Malaysia – almost two-third of total imports in 2014-15.
Both these countries have inverted duty structure where crude palm oil attracts more duty than finished product refined palm oil, affecting the domestic refining sector. This may have serious implication for India in the long run if the government does not take corrective measures, Lunkad said.
The association has asked the Centre to revise the duty difference between crude and refined oils to at least 15 per cent to protect the margins of domestic industry and ensure some value addition within the country.
The Association has made representation with the Commission for Agricultural Costs and Prices to reduce import duty on high oil-content oilseeds such as rapeseed/mustard and sunflower seeds to 5-10 per cent from 30 per cent so that crushing of these can reduce edible oil imports and also enhance oilmeal supply for domestic consumption by feed industry and exports.
“Oilseed imports will not have any impact on the farmers as they are protected with an assured minimum support price of the government,” he said.
Source :thehindubusinessline.com
Abatement on construction services available even if free supplies of material not included in gross
Service Tax : Construction work of shops for local authority, which were to be allotted to unemployed people under a state sponsored scheme, is liable to service tax
Job given to wife on accidental death of husband isn't pecuniary advantage under Motor Vehicle Act
IT: Compassionate appointment given to dependent of deceased employee cannot be termed as 'Pecuniary Advantage' under periphery of Motor Vehicles Act and, therefore, amount received on such appointment is not liable for deduction for determination of compensation under said Act
Delhi HC declines to issue directions to investigating agencies to probe FCRA matters against AAP
FCRA/FEMA : Absent any reason why investigating agencies would not look into allegations against AAP(Aam Admi Party) leaders under FCRA/FEMA , Delhi HC declines to issue any directions to the agencies as regards investigation of the allegations and dismisses PIL without expressing any opinion on the merits of the case
CBEC empowers Chief Commissioners to authorize any officer of his zone to appear before Tribunal
EXCISE : Jurisdictional Officer Authorized to Appear Before Cestat Bench for Pleading A Case on Behalf of Department
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