VAT/INDIAN ACTS & RULES : Bihar Value Added Tax Rules, 2005 – Amendment in Rules 14 & Omission of Rule 17
Wednesday, 20 January 2016
Failure to issue notice can't be cured by sec. 292BB even if assessee participated in reassessment p
IT : Merely because assessee participated in proceedings pursuant to notice under section 148, it would not obviate mandatory requirement of Assessing Officer to issue assessee a notice under section 143(2) before finalizing order of reassessment
Capital gain arise on transfer of land under JDA and not business income if there was no commercial
IT : Where in terms of construction agreement, assessee handed over piece of land to builder, for construction of multi storied building, since construction and sale of flats did not change character of asset and there was no material to show that assessee ever had any intention to exploit plot as a commercial venture, transaction could not be characterized as 'an adventure in nature of trade'
Murthy Panel on AIFs suggests favourable tax regime for investors
SEBI : Submission of Report by Alternative Investment Policy Advisory Committee
No MAT on foreign Co. as it doesn't have PE in India; AAR follows Government's stand
IT/ILT: Where a Mauritian Company a 100 per cent subsidiary of parent company proposed to transfer shares held by it in Indian company in favour of a company proposed to be incorporated in Singapore with an object of group re-organization, the transaction having begun almost 20 years back, it could not be said that it was for tax avoidance and, therefore profit arising from such transaction won't be subjected to tax in India in terms of Article 13 of of DTAA between India and Mauritius. Further,
Dept.'s appeal against liquidating Co. stands abated as no application filed by liquidator to contin
Excise & Customs : If assessee-company is being wound up, Revenue's appeal before Tribunal would stand abatement as per provisions of rule 22 of CESTAT (Procedure) Rules, 1982, unless an application is made by or against liquidator/receiver for continuance of proceedings
No additional depreciation if manufactured goods were captively consumed for construction activity
IT: Production of prefabricated piles which were going to be used by assessee in its business of piling, would form part of construction activity irrespective of fact whether such piles were constructed at project site or at some other place with help of machinery; it did not involve production or manufacture of an article or thing entitling assessee to additional depreciation on said machinery
Fee received for 'Supply Management Services' isn't taxable as FTS or royalty under India-UK DTAA
IT/ILT: Where Indian company CTIL purchases turbocharger components directly from third party in UK and US and in relation to such purchases, applicant provides supply management services which ensure CTIL market competitive pricing from suppliers and applicant is not imparting its technical knowledge and expertise to Indian company based on which Indian company will acquire such skills and will be able to make use of it in future, Supply Management Services fees received by applicant is not FTS
Sum received by FII for giving-up right to sue 'Satyam' for fraud is tax-free
IT/ILT : Settlement amount received by FIIs who had invested in company's shares/ADS for giving up right to sue the company for damages caused by fraud in financial statements is capital receipt and is not taxable. Settlement amount is a compensation for not pursuing the suit and involves surrender of capital asset of "right to sue". The capital asset "right to sue" cannot be transferred in terms of section 6(e) of the Transfer of Property Act. Even if surrender of right to sue can be treated as
HC allows depreciation on ROC fee after capitalizing it in cost of plant
IT: Where amount of fees paid to Registrar of Companies for increasing authorized share capital was capitalized against plant and machinery, assessee was entitled to depreciation at rate of 15 per cent on said amount
HUF or its Karta can't become partner in LLPs; MCA clarifies
LLP : Section 5 of The Limited Liability Partnership Act, 2008 – Partners - Whet her Hindu Undivided Family (HUF)/Its Karta Can Become Partner/Designated Partner (DP) in Limited Liability Partnership (LLP)
Rupee Falls 29 Paise Against Us Dollar
NEW DELHI: After a break, the rupee resumed its downtrend by falling 29 paise to 67.94 against the US dollar in early trade on Wednesday, tracking mixed cues from Asian currencies.
The domestic currency had closed 3 paise higher at 67.65 on Tuesday on fresh dollar selling by banks and exporters.
The People's Bank of China set the midpoint rate at 6.5578 per dollar, which was higher than the previous fix of 6.5596, and up from the previous day's closing quote of 6.5787. There have been concerns that the recent weakness in the Chinese economy would prompt further stimulus by Chinese authorities, which may weaken the yuan and other Asian markets.
"The reality here is that the panic is really coming due to worries over the real intentions behind policymakers moves on the renminbi and exchange rate. The fact that it has started to truly trade according to a trade-weighted basket, makes it appear like the target is to keep it flat on a trade-weighted basis," said David Mann, Standard Chartered Bank, in an interview to ET Now.
So it will be more volatile on a bilateral basis against the dollar, which has been shaking the market sentiment, Mann added.
On Wednesday, the Korean won declined 0.39 per cent to 1210.60 against the greenback. Malaysian ringgit, Indonesian rupiah and Thai baht fell 0.30 per cent, 0.14 per cent and 0.03 per cent, respectively.
On the flip side, Taiwanese dollar and Japanese yuan added 0.53 per cent and 0.38 per cent, respectivey. Yuan was flat.
There were also concerns over foreign equity outflows, which stood at Rs 6,385 crore so far in January.
"India has done better than other emerging market currencies. The Indian currency is down 7-8 per cent but not the same as other emerging markets. Russia's rouble has fallen 55-60 per cent. The macro fundamentals in India are good and we have a very good central bank. Even if there is some weakness, it will be limited as compared to other currencies," said John Praveen, Pramerica International Investments.
Meanwhile, the International Monetary Fund (IMF) has retained India's growth forecast for the next two years even as it pared the global estimate citing subdued demand and diminished prospects in its latest update of the World Economic Outlook.
The ongoing month has seen Asian currencies falling as much as 3.5 per cent against the greenback. The rupee has declined 2.21 per cent, while the yuan has fallen 1.30 per cent.
Source :economictimes.indiatimes.com
Centre Allows Apple Import Via Kochi Port
KOCHI: The high court on Tuesday disposed petitions challenging a ban on importing fresh apples through ports other than Mumbai after the Centre informed that the ban has been relaxed.
During the hearing on Tuesday, the central government produced a copy of the new notification, according to which imports of apples can be made through seaports and airports in Kolkata, Chennai, Mumbai, and Kochi as well as land and airports in Delhi.
The Kerala high court had earlier stayed the notification that allowed importing of fresh apples only through Nhava Sheva Port, east of Mumbai. The notification was issued by the department of commerce of the ministry of commerce and industry on September 14 last year.
Muvattupuzha, Ernakulam-based importers had filed petitions alleging that such a ban is in violation of their constitutional right to equality. They had pointed out that the restriction would result in an additional transportation cost of Rs2.25 lakh per container of apples. If the ban is allowed to continue, price of apples would rise to a range of Rs300 -350 per kg.
Source :timesofindia.indiatimes.com
Sec. 234B interest couldn't be stretched to the stage of appellate proceedings
IT: In terms of section 234B(1), interest liability would end on date of determination of total income under section 143(1) or, in case of regular assessment, date of such assessment and there is no scope for extending such liability to a later date and relate it to a revisional, appellate or a rectification order
Diamond Industry Seeks Export Boosting Steps
SURAT: Slowdown in global markets continues to impact exports of cut and polished diamonds from India. Gems and Jewellery Export Promotion Council (GJEPC) has requested central government to introduce Special Turnover Tax regime for diamond industry with 0.75 per cent tax on sales turnover like it is in Israel, Belgium and Dubai to encourage companies of non-resident Indians to shift capital to India and give a boost to exports.
The latest import-export figures declared by GJEPC show that the exports of polished diamonds in December 2015 decreased by 17.1 per cent at $1.20 billion compared to $1.50 billion in the same month previous year.
However, rough diamond imports during the month increased by 2.44 per cent at 1.46 billion, marginally up by 2.44% in value terms from US$ 1.43 billion the previous December.
Source :timesofindia.indiatimes.com
India Cautiously Optimistic On Agri Exports To Iran
The lifting of economic sanctions on Iran has brightened the prospects of agriculture product exports to that country.
Despite domestic challenges, India has the potential to export fruits, vegetables and basmati rice to Iran.
Speaking to BusinessLine, V Shankar, Managing Director of Rallis India, said deficient rain in the last two years has put huge stress on farmers, with commodity prices dropping along with fall in output, a rare phenomenon in any business.
Given the current situation, farmers can definitely tap into export potential to Iran, if the Centre provides little support to bring down the cost of cultivation, he said.
Advantage of fruits, veggies
Fruits and vegetables are good diversification for farmers as they consume less water and can be grown in 90 days, as compared to other crops.
Export markets follow stringent quality norms with low pesticide residue and in case of rejection, farmers are hit badly as they have to incur high cost of cultivation and transportation.
“India can export all fruits including grapes, mangoes, pomegranate besides basmati rice, but globally commodity prices have fallen sharply. The high value agriculture export, if it becomes a reality, can bring big relief to farmers,” he said.
Incidentally, Rallis India works closely with farmers growing grapes in Nashik. Grapes are grown over 4 lakh acres in Maharashtra at Nashik, Sangli, Pune and Solapur. Last season, the crop was affected because of unseasonal rain and hailstorm. This year around, farmers fear the sudden drop in temperature in Nashik to impact overall production. Vinod Ahuja, President of Basmati Rice Farmers and Exporters Development Forum, said Iran displaced Saudi Arabia as one of the largest importers of Basmati rice from India, before the economic sanctions were imposed.
Iran used to import about 1 million tonne of basmati rice, and farmers in Punjab and Haryana switched from growing other crops to Pusa 1121 variety, but burned their fingers after Iran stopped buying directly from India after the sanctions, he said. India exports about 3.5 million of basmati rice annually.
Basmati price
Along with other commodities, the price of Basmati has fallen sharply to $897 a tonne between April and November from $1,352 a tonne registered in the same period last year. Till recently, India exported Basmati rice through Dubai.
Ahuja said opening up of any new market is always good farmers but given the high cost of cultivation and unpredictable climatic conditions has made farming a difficult task.
Source :thehindubusinessline.com
India Eyes More Crude Oil Imports From African Nations
India will host 22 African countries at the India-Africa Hydrocarbon Conference later this week. To be held in New Delhi on Thursday and Friday, this will be the fourth edition of the conference.
Three conferences were earlier held in 2007, 2009 and 2011. India had invited 25 oil and gas-producing African countries to the conference. Of these, 22 have confirmed their participation. Nine countries will be represented at the ministerial level. These include Algeria, Morocco, Tunisia, Mauritius, Sudan and South Sudan.
Mozambique and South Africa will skip the conference, as their ministers are busy with the World Economic Forum at Davos, official sources said.
The government hopes to consolidate the discussions that External Affairs Minister Sushma Swaraj and Petroleum Minister Dharmendra Pradhan had with delegates at India-Africa Summit three months ago.
Sources said India’s domestic production of crude oil has plateaued at 37 million tonnes (mt) and is likely to remain at this level with little likelihood of future discoveries and technological breakthroughs. Meanwhile, the number of African nations that have struck oil or gas has increased from seven in 1990 to 25 now.
India imports 76 per cent of its crude oil needs, which by 2030 is estimated to reach 90 per cent. The country also imports 37 per cent of its gas requirement.
Africa is likely to be a significant source of meeting India’s hydrocarbon needs in the years to come. This will also help India diversify its source of crude from volatile West Asia.
In 2014, India had imported 32 mt of crude, 15 per cent of its consumption that year, from Africa. This was primarily from Nigeria and Angola. Currently, India’s oil imports from Africa stand at 7.5 per cent.
Of India’s top four sources of gas – Qatar, Nigeria, Australia and Equatorial Guinea – two are from Africa. In 2015, India’s gas imports from Africa doubled compared to 2013; India accounted for eight per cent of Africa’s gas exports in 2015, compared to four per cent in 2013, official sources said.
India is also a major exporter of refined petroleum products and Africa is the second largest destination for these products. Seventeen per cent of India’s refined products are headed for Africa. New Delhi expects this figure to rise to 20 per cent.
Apart from energy security, India hopes to nurture the growth of African hydrocarbon sector by providing its expertise in oil exploration, refining, consultancy, training and infrastructure development. Indian public sector company ONGC Videsh has significant investments in the African oil & gas sector, particularly in Sudan, South Sudan and Libya. However, India's investments in Africa pales compared to China's $25 billion in that continent's oil & gas sector.
The total India-Africa trade has increased nine-fold from $8.2 billion in 2004 to $75 billion in 2014. New Delhi expects this to touch $100 billion in the next couple of years.
Three conferences were earlier held in 2007, 2009 and 2011. India had invited 25 oil and gas-producing African countries to the conference. Of these, 22 have confirmed their participation. Nine countries will be represented at the ministerial level. These include Algeria, Morocco, Tunisia, Mauritius, Sudan and South Sudan.
Mozambique and South Africa will skip the conference, as their ministers are busy with the World Economic Forum at Davos, official sources said.
The government hopes to consolidate the discussions that External Affairs Minister Sushma Swaraj and Petroleum Minister Dharmendra Pradhan had with delegates at India-Africa Summit three months ago.
Sources said India’s domestic production of crude oil has plateaued at 37 million tonnes (mt) and is likely to remain at this level with little likelihood of future discoveries and technological breakthroughs. Meanwhile, the number of African nations that have struck oil or gas has increased from seven in 1990 to 25 now.
India imports 76 per cent of its crude oil needs, which by 2030 is estimated to reach 90 per cent. The country also imports 37 per cent of its gas requirement.
Africa is likely to be a significant source of meeting India’s hydrocarbon needs in the years to come. This will also help India diversify its source of crude from volatile West Asia.
In 2014, India had imported 32 mt of crude, 15 per cent of its consumption that year, from Africa. This was primarily from Nigeria and Angola. Currently, India’s oil imports from Africa stand at 7.5 per cent.
Of India’s top four sources of gas – Qatar, Nigeria, Australia and Equatorial Guinea – two are from Africa. In 2015, India’s gas imports from Africa doubled compared to 2013; India accounted for eight per cent of Africa’s gas exports in 2015, compared to four per cent in 2013, official sources said.
India is also a major exporter of refined petroleum products and Africa is the second largest destination for these products. Seventeen per cent of India’s refined products are headed for Africa. New Delhi expects this figure to rise to 20 per cent.
Apart from energy security, India hopes to nurture the growth of African hydrocarbon sector by providing its expertise in oil exploration, refining, consultancy, training and infrastructure development. Indian public sector company ONGC Videsh has significant investments in the African oil & gas sector, particularly in Sudan, South Sudan and Libya. However, India's investments in Africa pales compared to China's $25 billion in that continent's oil & gas sector.
The total India-Africa trade has increased nine-fold from $8.2 billion in 2004 to $75 billion in 2014. New Delhi expects this to touch $100 billion in the next couple of years.
Source :.business-standard.com
No ST on sub-brokers if stock broker already paid tax on total brokerage amount
Service Tax : Where service tax had been paid on total brokerages by main broker under 'stock-broker services', no tax could be demanded from sub-broker under same category
Amendment Act to prevent crimes against SCs and STs to be effective from Jan 26, 2016
CORPORATE LAWS/INDIAN ACTS & RULES : Section 1 of The Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Amendment Act, 2015 – Act – Enforcement of – Notified Date on Which Provisions of Said Act Shall Come Into Force
Period of holding of ESOP shall be counted from date of exercising of option and not from date of of
IT: Where sweat equity shares were offered to assessee by employer was accepted immediately and assessee exercised option after three years and on same date shares were also sold, gains would be short-term capital gain or, in alternative, income from other sources, not liable for exemption under section 10(38) or section 54EC
IRDA releases revised guidelines to streamline regulatory process of cross border reinsurers
INSURANCE : Guidelines on Cross Border Reinsurers
Salary includes DA but excludes other allowances for computing exemption of gratuity and leave encas
IT : Computation of benefit of gratuity and leave encashment under sections 10(10) and 10(10AA) to be governed by definition of 'salary' as per Rule 2(h) Part A, Fourth Schedule
Objection against value adopted by DVO is meaningless when assessment is made on basis of stamp duty
IT: Assessee's objections regarding valuation made by DVO had no meaning where in terms of section 50C(3) assessment was made by adopting valuation made by stamp valuation authorities as full value of consideration as against valuation made by DVO
MMTC has prior charge of property over Punjab & Sind Bank as its mortgage deed is of earlier date
RDDBFI: Where DRT decree was passed by Recovery Officer in favour of PSB in respect of disputed property though arbitral award had already been passed in favour of MMTC in respect of that property, earlier mortgage would take prior claim by virtue of section 48 of TPA and matter was to be remanded to Recovery Officer to determine whether mortgage claim existed in favour of PSB
Service used to control pollution in factory area is eligible for Cenvat Credit
Cenvat Credit : Services meant for maintenance of green-belt to reduce pollution are eligible for input service credit, as control of pollution in factory area is an indispensable necessity
Subscribe to:
Posts (Atom)