VAT : Furnishing of an Online Quarterly Return of Purchases Made by All Government Entities Having Their Offices Functioning Within National Capital Territory of Delhi
Wednesday, 13 January 2016
Member of drug association wasn't guilty as he had no knowledge that association was engaged in anti
Competition Act: Where appellant had resigned from office of Executive Committee of Chemist and Druggists association and he did not have any knowledge about decision taken to restrain sale of drugs/medicines below Maximum Retail Price (MRP) etc., penalty could not be imposed upon appellant holding him guilty of anti-competitive conduct with help of section 48
Interest on loan is deductible under sec. 24 if loan is obtained to release a mortgaged house proper
IT: Where assessee undertook to pay loan of financial institutions as a condition for acquiring its mortgaged property, interest paid on such loan would be deductible under section 24(1)(vi) against rental income from said property
Govt. notifies protocol amending India-Balarus DTAA
IT/ILT/INDIAN ACTS & RULES : Section 90 of The Income-Tax Act, 1961 – Double Taxation Agreement – Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evation with Foreign Countries – Belarus – Amendment in Notification No. GSR 392(E) [No.10646 (F.No.501/7/92-F.T.D.)], Dated 17-7-1998
Service exporters shall file claim of 'Cenvat refund' within 1 year from date of export invoice
Service Tax: In case of service exporters, quarterly refund claim of cenvat credit under rule 5 of the CENVAT Credit Rules, 2004 must be filed within 1 year from date of export invoice
ALP of AMP exp. can't be determined without comparing AMP functions of assessee with external compar
IT/ILT: Where for determining ALP of AMP functions performed by assessee, AMP functions performed by external comparables, were neither submitted by assessee before Assessing Officer/TPO nor examined by TPO, matter should be readjudicated afresh
An imported vehicle taken on lease couldn't be treated as unexplained investment of assessee
IT: Where consideration for imported vehicle and its initial duty had been paid by one 'S', it could not be concluded that assessee had made unexplained investment in purchase of same vehicle
Oil Boon For Import Cover
India's import cover stood at 9.8 months as of September 2015, the Reserve Bank of India (RBI)'s half-yearly report on foreign exchange reserves showed. The cover was 7.28 months at the end of 2012.
According to Business Standard calculations, import cover at the end of 2015 could improve to 10.81 months, with crude oil prices crashing. Oil constitutes roughly 34 per cent of the country's total imports, which fell 30.26 per cent year-on-year to $29.8 billion in November.
Brent crude oil was at $145.66 a barrel in May 2008 but is now hovering around $30 a barrel. In February 2004, the last time oil prices were at this level, the import cover was as high as 17.7 months. India's imports were lower then, as were foreign exchange reserves ($109.67 bn).
Source :.business-standard.com
Polished Diamond Export To Dip 20% In Financial Year16
Surat: For the first time in a decade, the export of polished diamond is likely to decrease by 20% FY16. The steep fall in polished diamond exports is attributed to weak demand in the US, Europe and the economic instability in neighbouring China.
As per the data available from Gems and Jewellery Export Promotion Council (GJEPC), the Indian diamond industry closed the year 2014-15 with polished diamond exports decreasing by 5% at $24 billion.
Industry experts said that the Indian diamond industry is facing similar challenging times as it did during the global economic downturn in 2008. The only difference was that the diamond mining companies had reduced rough diamond prices in 2008 by almost 50%, while the prices remained firm 2015-16. "The cheap raw material in 2008 was like a gold mine for the diamantaires. A huge amount of rough stocks were purchased during this period. However, when the global markets recovered after few months, diamantaires were ready to supply the stock with huge profit margin. This time in 2015, it is totally a reverse situation where profitability has eroded," said chairman of Gems and Jewellery Export Promotion Council (GJEPC), Praveen Shanker Pandya
Source :.timesofindia.indiatimes.com
SEBI tweaks de-listing norms for small companies
SEBI/INDIAN ACTS & RULES : SEBI (Delisting of Equity Shares) (Amendment) Regulations, 2016 – Amendment in Regulation 27
Four Chemical And Plastic Industry Export Promotion Bodies To Hold Expo
As part of measures to boost sagging exports, the Centre, for the first time, is getting together four export promotion organisations from the chemical and plastic industry to hold a mega event to showcase the sector and help foreign buyers tap the potential in the industry.
The Ministry of Commerce and Industry has granted ?3.6 crore for the three-day event CapIndia, to be organised from March 20 in Mumbai by the Plastics Export Promotion Council, Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council (Chemexcil), Chemical and Allied Export Promotion Council of India (Capexil) and Shellac & Forest Products Export Promotion Council (Shefexil).
The four associations accounted for $35-billion exports in the last fiscal while in the first seven months of the current fiscal their exports were down five per cent at $20 billion.
Speaking to the media on Tuesday, BS Bhalla, Joint Secretary, Ministry of Commerce and Industry, said with little handholding, the chemicals and plastics industry would play a major role in achieving the government set export target of $900 billion by 2020.
Though in terms of value, exports by these industries were down this fiscal due to a sharp fall in crude oil prices, in terms of volumes they have performed much better, he said.
Given the current trend, overall merchandise exports is expected to decline about 13 per cent to $270 billion in the current financial year due to global demand slowdown and fall in crude oil prices. The country's aggregate exports were at $310.5 billion last fiscal. In the first eight months of this fiscal, export declined 18 per cent to $174.3 billion. Imports were $261.8 billion and trade deficit was $87.5 billion.
Despite slowing exports, the Ministry expects 125 foreign buyers to visit the expo where 250 Indian exhibitors will showcase their wares.
“Based on the outcome of this event, the government is thinking of replicating this model of holding joint export promotion expos to represent India in wholesome than each Council conducting separate events to promote their sector,” said Bhalla.
Source :.thehindubusinessline.com
India's Tea Exports To Pakistan Up 42% At Rs 116 Crore
NEW DELHI: India's tea exports to Pakistan have increased by 42 per cent to Rs 116.12 crore in the first eight months of the current financial year on account of rise in volumes and price of the beverage.
The overall total exports have also risen by 6 per cent to Rs 2,746.04 crore in the April-November period of the 2015-16 from Rs 2,590.08 crore in the year ago period.
While the exports to Pakistan stood at Rs 81.61 crore in the first eight months of the last fiscal.
In volume terms also, the outward shipments increased to the neighboring nation from 9.65 million kg to 11.85 million kg.
The total tea exported from India in the period under review also rose to 141.07 million kg from 129.82 million kg according to the Tea Board data.
Increase of tea exports was seen in major tea-importing countries like CIS countries, the UK, Germany, Poland, the UAE, Bangladesh and Sri Lanka.
Tea production has been low this year mainly due to unfavorable weather conditions and wages issues have also hit tea producers hard.
During the year, there have been reports of labour migration to other industries rather than staying at the tea gardens on account of issues related to quality of life and wages.
India is the world's second-biggest tea producer and also one of its largest consumer. The country exports CTC (crush- tear-curl) grade tea to countries like Egypt, the UK, and other traditional varieties to Iraq, Iran and Russia.
Tea plucking in India mainly picks up between July and October.
Source :economictimes.indiatimes.com
Paper Producers Raise Prices Ahead Of Peak Season
Paper manufacturers have raised prices by two-five per cent on expectation of rising demand from user sectors for printing of books and notebooks for the next academic year (2016-17). While Avantha Group company Bilt Graphic Paper Products Ltd (BGPPL) has raised prices of some grades, JK Paper increased its coated paper prices by Rs 500 to Rs 47,000-48,000 a tonne. As demand will continue prices are likely to remain firm in the coming months.
While BGPPL has not revealed the quantum of increase, it is learnt the company has raised prices by two-five per cent. Yogesh Agarwal, managing director and chief executive said: "Domestic demand seems to be picking up. To cover the increasing input costs and reducing margins, and also taking factors like stable market and a healthy order book, BILT has increased the price of some grades."
The rise assumes significance in the wake of rising import from countries with which India has signed free trade agreements. Rising domestic prices might prompt users to focus more on import if its parity becomes in their favour.
Data compiled by the Indian Paper Mills Association showed India's paper and paper board import (excluding newsprint) has risen to Rs 7,223 crore for 2014-15, compared to Rs 5,987 crore in the previous year.
Imports from China and Association of Southeast Asian Nations (Asean) have shot up to Rs 1,293 and Rs 589 crore from Rs 1,188 crore and Rs 426 crore in 2014-15 and 2013-14, respectively.
India's paper and paper board exports, however, have increased, albeit marginally, to Rs 2,926 crore in FY15 against Rs 2,739 crore in the previous year. With China devaluing its currency on many occasions since August 2015, paper import into India are likely to rise significantly in the coming months. Imports have hit the domestic sector at a time when it has made huge investment in capacity expansion.
Last year, capacity utilisation of domestic mills in writing and printing grades was only 89 per cent. The domestic industry is making representations to the government to impose safeguard duties. Customs duty on paper imports ranges from zero to 10 per cent, depending on the country of import.
For example, import duty from Asean countries on paper sheet is zero per cent and coated paper reels at five per cent. Under FTA, duty works out to 1.5 per cent with South Korea and 5.5 per cent with Japan. The duty stands at 10 per cent for other countries.
As a consequence, while domestic mills have been facing tough competition from rising imports, being a capital-intensive business, domestic industry has restrained from taking any major production cuts. The domestic industry has preferred to manufacture and sell the installed capacity even at the cost of lower margins, which would certainly impact future investments in the infrastructure of pulp and paper.
"We have not taken any decision to raise prices of mainline copier or paper board effective January. But, we adjusted coated paper price a few weeks ago, which was raised by Rs 500 to Rs 47,000-48,000 a tonne," said V Kumaraswamy, chief financial officer, J K Paper. Coated paper contributes nearly 10 per cent of J K Paper's overall production.
Demand of grades such as coated and printing paper has increased significantly in the past few weeks as educational institutes have started preparations for the ensuing academic year in June 2016. Looking at the same, Kumaraswamy did not rule out some upward adjustment in paper prices in the coming weeks.
Source :business-standard.com
Steel Imports Fall For Second Month In Dec
Indian steel imports fell for a second month after the government imposed taxes and anti-dumping duties on some products to protect local mills from cheaper overseas supplies.
Inbound shipments dropped 1.4 per cent to 941,000 tonnes in December from a year ago, according to provisional data from the steel ministry. For the nine months through December, imports climbed 29 per cent to 8.39 million tonnes.
India plans to step up safeguards for its debt-laden steelmakers by imposing a minimum price on imports and studying loan restructuring, steel secretary Aruna Sundararajan said last month. China, world's biggest producer, is facing the slowest growth in a quarter century and its surfeit of steel is driving a surge in exports, forcing governments from India to the US to impose curbs to protect domestic mills.
India's latest measures include a 20 per cent import tax on hot-rolled coils for 200 days imposed in September, and anti- dumping duties on cold-rolled flat products of stainless steel for five years.
Steel output declined 1.4 per cent to 7.62 million tonnes in December from a year earlier, while consumption climbed 1.2 per cent to 6.93 million tonnes, according to the ministry. For the April-December period, production fell 1.4 percent to 68.04 million tonnes, while demand rose 4.7 per cent to 59.08 million tonnes.
Source :business-standard.com
Chinese Firms Could Invest $2-3 Billion Over Next 2 Years In Indian Mobile Manufacturing: Ica
NEW DELHI: Chinese companies could invest $2-3 billion (Rs13,400 crore-Rs 20,100 crore) in Indian mobile manufacturing operations over the next two years, a top local cellular body said Wednesday.
Going by the encouraging response of Chinese companies and definitive joint collaboration talks between Indian and Chinese mobile and handset manufacturers, Chinese investment of $2 - 3 billion over next two years in this sector looks like a real possibility along with employment for 1 - 2 lakh people," Pankaj Mohindroo, head of Indian Cellular Association (ICA) and CEO of the Digital India Task Force said in a statement.
The statement came as part of the first of its kind summit to boost mobile handsets and components manufacturing in India has been jointly organized by ICA in association with Mobile World (Shoujibao), China's leading mobile industry service platform.
Top officials from major Chinese companies such as Techno, Gionee, Coolpad, Holitech, Wingtech, Camera King, Galaxy Core, Poxiao, Vivo and Sprocomm participated at the summit and are exploring various avenues to tap the existing and emerging opportunities. Leading Indian mobile companies such as Micromax, Lava, Karbonn, Spice, Vodafone, Intex also participated at the Summit.
"Chinese companies are usually reluctant to set up manufacturing base in other countries as their own eco-system is highly efficient and supremely productive. But they are still seeing India as the hottest next destination to set up manufacturing base," said Mohindroo.
He added that the Indian mobile handset industry aims to locally manufacture 500 million handsets by 2019 and create 1.5 million jobs and establish a Rs 50,000-crore worth component industry in the country.
In a joint initiative between Chinese and Indian mobile manufacturers, the local electronics manufacturing sector sought support of their Asian counterparts and ecosystem players to fulfill the ambitious objectives of Make in India and Digital India set out by Narendra Modi-led government.
"We...would contribute to making India a global manufacturing hub for mobile handsets and components," said Mr Wu, Founder & CEO, Mobile World (Shoujibao), Shenzhen.
He added that the Chinese companies are quite impressed that the progressive policies of the Modi government and policies around developing a manufacturing eco-system is very encouraging for investment and business.
"Chinese companies are quite enthusiastic about setting up manufacturing base in India either on their own or in partnership with Indian companies," added Wu.
Mohindroo said that the state governments of Andhra Pradesh, Uttar Pradesh, Maharashtra and Telangana among others are serious in their bids to establish electronics manufacturing facilities within their states with industry-friendly policy initiatives.
The government, through its mega Make in India program, aims to fuel domestic manufacturing in the country cutting imports to net zero by 2020.
"India has embarked on an incredible journey of change led by new government and there have been several initiatives such as enabling government services over mobile devices and approval of payments banks to propel mobile handsets uptake," Department of Electronics and IT (DeitY) additional secretary Ajay Kumar said.
The smartphone segment, according to Kumar, is growing at 40% year-on-year. "The government is offering a range of incentives to support capital expenditure, skill development and exports".
Gionee country head Arvind Vohra said that as electronics manufacturing picks up, India can become a leading handset exporter in the next 2-3 years.
Gionee, according to Vohra, has plans to scale up production to 100% within India from June, 2016 onwards.
Source :economictimes.indiatimes.com
As India Reservoirs Run Low, Farmers Slash Sugar Cane Planting
Farmers in India's top sugar growing state of Maharashtra are being forced to replace cane with less water intensive crops, as a scorching drought drives authorities to hold back water from dams.
The drop in plantings for the 2016/17 season - which one official estimated means acreage could fall by about a third - comes after a faltering monsoon has damaged thousands of hectares of cane in the world's second-biggest producer.
India's sugar output risks dropping below consumption for the first time in seven years, threatening to cut exports and boost global prices, particularly if imports are needed for the first time since 2008/09.
Shankar Tiwari, a farmer in Maharashtra, has for the first time in nearly a decade planted sorghum on his two acres of land instead of sugar cane due to the drought.
"For the last three months, the government has not released water from dams. How can we plant sugar cane?" asked Tiwari, who has relied on canal irrigation to cultivate cane in the Solapur district of Maharashtra, 400 km (245 miles) south-east of Mumbai.
Maharashtra, the southern state of Karnataka and Uttar Pradesh account for nearly 80 percent of India's sugar production.
After a series of bumper harvests, the states have been hit by the first back-to-back drought in nearly three decades, prompting authorities to divert water from agriculture.
India's main reservoirs are at 44 percent of capacity, compared with a ten-year average of 58 percent. Some reservoirs in Maharashtra are holding just 8 percent of capacity, compared with a ten-year average of 50 percent.
"Going by the current trend, it seems the cane area will be at least 35 percent lower next season. We will have a better understanding only in March when farmers finish planting," said a senior official at the Maharashtra state government, who declined to be named.
Cane cultivation is mostly done from October to March, but many farmers have already switched to other crops.
GLOBAL PRICES
India's annual sugar demand is around 26 million tonnes, but B.B. Thombre, president of the Western India Sugar Mills Association, said the country could struggle to produce 24 million tonnes next year.
This could provide a boost to global prices. March ICE raw sugar futures hit a two-month low at 13.93 cents a lb this week on stronger Brazilian production.
But in 2008/09, when monsoon rains also failed, fluctuations in Maharashtra's sugar output forced India to become a net importer, triggering a rally in global prices to 30-year highs.
Thombre said Maharashtra could surprise the market in the same way in the upcoming season starting in October, estimating production of just 5.5 million tonnes, down from this season's estimate of 7.5 million tonnes.
Last season, the state produced a record 10.5 million tonnes.
Indian mills have been exporting sugar as the government has made it mandatory to trim stockpiles built up in the last five years.
But exports are likely to become uncompetitive from March onwards once local prices rise, said Ashwini Bansod, a senior analyst at Phillip Commodities India Pvt Ltd.
While India will not need to import in the current season ending on September 30, due to carry forward stocks of 9.1 million tonnes from the last season, imports may be required next season to meet domestic requirements and control prices, said a Mumbai-based dealer with a global trading firm.
"If India starts importing, then a rally is assured in the global market," the dealer said
Source :.reuters.com
No carry forward of ad and printing cost of film distributor if exhibition rights acquired on minimu
IT : Where assessee acquired rights for exhibition of films on minimum guarantee basis which did not complete commercial run of 180 days during preceding financial year, in terms of Explanation to sub-rule (1) of rule 9B, minimum guarantee amount excluding expenditure incurred on preparation of positive prints and expenditure incurred in connection with advertisement of films, was to be considered to be cost of acquisition of distribution rights of films which could be carried forward for amorti
Banking and other financial services are eligible input services for exporter
Cenvat Credit : Exporter is eligible to take credit of 'banking and other financial services' used in connection with their export activities of finished excisable goods
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