Wheat Prices Caught In A Web Of Abundance

India is the second largest producer of wheat in the world after China, contributing to about 13.02 per cent of the world’s production. According to the 4th advance estimate, wheat production for 2012-13 is estimated at 92.46 million tonnes (mt).

Over the last three years, production has increased due to good yields, supported by good monsoon and increase in the minimum support price. Over 94.54 per cent of the total production of the country comes from six States. The top wheat producing States of the country are Uttar Pradesh (31.93 per cent), Punjab (18.21 per cent), Haryana (13.37 per cent), Madhya Pradesh (12.16 per cent), Rajasthan (9.82 per cent) and Bihar (4.98 per cent).

Domestic consumption is estimated at 85-90 mt. India is the third major wheat consumer globally after China and European Union.World wheat production is projected at a record 708.9 mt, up 3.5 mt. Higher production in Canada, the European Union (EU), and the FSU-12 (former Soviet Union states) more than offset a drop in Iran and Paraguay. Black Sea production is expected to rebound to 108 mt due to favourable weather, compared with 77.2 mt in 2012-13. Consumption is expected to reach a record 707 mt, up 4 per cent from 2012-13 and the global feed use is expected to rise three per cent to 141 mt.

The wheat spot market price variation study indicates that the price volatility remains steady for most of the year and a spurt is witnessed in the period between June and August. Reports of Black Sea exporters re-entering the market at competitive prices is likely to keep the global price volatility under check. There are reports that Black Sea production is likely to rebound by 40 per cent to 108 mt on improved weather and higher yields. Russian production is expected to increase by 16.3 mt from 2012-13 to 54 mt and Black Sea exports are expected to reach 37.1 mt and represent 24 per cent of world market, compared with 19 per cent in 2012-13. In the domestic market, the spurt in the volatility was noticed during July-August 2013 (from an average of around 20 per cent to over 40 per cent) and since then prices have been consolidating in a tight range.

The major development which has supported the global market is the demand from China, which is expected to import 9.5 mt, compared with the 5-year average of 1.74 mt with its production remaining unchanged at 121 mt. Spot prices in Delhi sharply declined from March onwards due to higher wheat production. The Indian market is marginally stable at the higher level amidst expectation that 5.5 mt of wheat will be exported in the current marketing year.

Wheat being a Rabi crop, sown during October to December, is highly dependent on good monsoon. This year, good rainfall in major producing regions has provided the required soil moisture during the sowing period. The upcoming harvest season is likely to see production of around 90-95 mt. The Indian market is currently pegged around ?1,650 a quintal, which is likely to hold on for the coming season without much fluctuation. I expect the 2014 prices to be range-bound with an upper cap of ?1,780 and lower firm support at ?1,420 a quintal.

Source:- thehindubusinessline.com

Air Bubbled Film rolls aren’t packing materials; classifiable as ‘polymers of ethylene sheets of pol

CST & VAT : Air Bubbled Film Rolls are not packing material in general and are classifiable as 'polymers of ethylene sheets of poly ethylene' under HSN 3920 10 92 and not under HSN Code 3923 90 90

SC's Jurisdiction under article 129 is unrestricted and independent of the Contempt of Court Act, 19

Constitution of India: Jurisdiction of Supreme Court under article 129 of Constitution is independent of Contempt of Courts Act and powers conferred under article 129 of Constitution cannot be denuded, restricted or limited by Contempt of Courts Act, 1971

FinMin opens doors to insurance co’s admission for membership of stock exchange

SEBI/INDIAN ACTS & RULES : Securities Contracts (Regulation) (Amendment) Rules, 2014 - Amendment in Rule 8

Going abroad for purpose of ‘employment’ includes self-employment to determine residential status un

IT/ILT : For the purpose of determining the residential status in India under Sec. 6, the term 'Going abroad for the purpose of employment' means going abroad to take up any employment or for any business carried outside India. It is not necessary to establish employer-employee relationship to prove travelling abroad; for employment it may be for other avocation including self-employment

Dicalcium Phosphate of animal feed exempted; Duty on rail track construction material reduced to 12%

GST : CENTRAL EXCISE : Section 5A of The Central Excise Act, 1944 - Exemptions - Central Excise - Mega/General Exemption - Dicalcium Phosphate of Animal Feed Exempted from Excise Duty and Duty on Railway or Tramway Track Construction Material of Iron and Steel Reduced to 12%, If Same is Manufactured Out of Duty-Paid and Non-Cenvatted Rails

Registration not enough to claim exemption; trust needs to comply with section 11, 12 and 13 to clai

IT : Where assessee, an engineering college, was granted registration under section 12AA and it claimed exemption under section 11, mere grant of registration would not automatically exempt entire income of assessee and income had to be exempted by examining entire receipts and expenditure in light of provisions of sections 11,12 and 13

Construction of roads for power companies not liable to ST under Commercial or Industrial Constructi

Service Tax : Construction of road, by itself, is not liable to service tax under Commercial or Industrial Construction Services; liability may arise only where construction of road is a part of composite contract

Employer’s contribution to PF deposited within grace period allowed under PF Act is eligible for ded

IT: Where assessee deposited employer's contribution of provident fund within extended grace period under PF Act, he will be eligible for deduction for same under section 43B

On compromise arrangement with creditors, status quo order on shareholding binds parties before Cour

CL : Shareholding does play an important role in taking control of companies; a status quo order with regard to shareholding binds parties before Court

Value of building disclosed by buyer in books to be preferred over value determined by DVO which is

IT : Valuation report of DVO per se have an element of discretion and are matter of opinion; valuation of land in books of account of builder that was accepted by Tribunal, may be treated as sale consideration

CBEC circulars are binding on revenue, except when they are contrary to law or judgments

Cenvat Credit : In absence of any provisions providing of lapse of credit not utilized as per erstwhile rule 6(3)(c) of CENVAT Credit Rules, 2004, such accumulated and unutilized under CENVAT Credit Rules, 2004 amended from 1-4-2008

There is no need to own property to claim deduction under section 80-IB(10)

IT: To claim deduction under section 80-IB(10), open terrace area cannot form part of built up area

Receipt of amount before or after beginning of business is insignificant to make addition for unexpl

IT : Statutory requirement for treating any amount as income of assessee under section 68 is where assessee fails to justify and establish genuineness of entry in its books of account and, therefore, question as to whether said amount is introduced prior to commencement of business of company or afterwards is of no significance

Spare parts used in servicing of motor vehicle not liable to service tax if VAT was paid thereon

Service Tax : If bill/invoices issued clearly show payment of sales tax/VAT on spare parts used in motor vehicle servicing, then value of such spare parts would not be includable in gross consideration received for rendering of service

Subvention from shareholder to cover losses would be revenue receipt if co. couldn’t prove it as gra

IT : Where assessee-company received subvention receipts from its principal shareholder 'S' and claimed same as capital receipt, since it was not case of assessee that financial assistance was extended by 'S' either for setting up any unit or expansion of existing business or for acquiring any assets, money received by assessee was revenue receipt in nature

Termination of an agreement is a contractual dispute; no remedy available under Competition Act

Competition Law: Where though informant entered into agreements with opposite parties for manufacture of oral healthcare products, it was free to take up manufacturing orders from any other company/brand(s) at mutually agreed terms, there could be no issue of abuse of dominant position by opposite parties; remedy for termination or non-renewal of agreement is not available under Competition Act

Matter rightly remanded by the ITAT when notice of inquiry was served at wrong address, says HC

IT: In absence of relevant books to verify wage payment made by assessee, disallowance at rate of 1 per cent was just

Property occupied for business but not utilized for same can’t escape taxability as Income from Hous

IT : Where a property occupied for business purpose, is not utilised for running a business, profits of which are taxable, said property would not enjoy benefit of exception mentioned under section 22 and, its income would be determined as per provisions of section 23(1)(a)

Increase in TDS rate of VAT would also apply to provisional payments already made

CST & VAT : In case of increase in TDS rate of VAT under Jharkhand VAT Act, such increased rate would, prima facie, apply to provisional bills/payments already made for which final billing is pending

No exemption on succession of a firm by co. if partners got consideration in form of ‘loan’ instead

IT: Where prior to conversion of partnership firm into company, land belonging to partnership firm was revalued as per market value and realization was credited to partners' current account maintained with partnership firm as per their profit sharing ratio and value of land was treated as loan in hands of company, such transaction would be subjected to capital gains tax

Absence of bylaws and contributions to other educational institutions can’t cause denial of trust re

IT : Where Memorandum of Association (MoA) of trust does not provide for allocation of functions and duties of office bearers, it can not be a ground to refuse registration because it is an internal regulation and does not in anyway affect objects of trust

Adopting Indian Procedure: Government Urged To Curb Dumping Of Hazardous Plastic Scrap

During the last three years Pakistan has imported more than 100 thousand tons of plastic scrap out of which most of the imported plastic scrap is used in manufacturing of pipes, which are then used for supply of water thus putting millions of lives at risk and also in violation of Pakistani Pipe manufacturing standards PS 3051/1991, according to stakeholders here.

To control the dumping of hazardous plastic scrap in the country, the Government doesn't need to invent any special procedure as it can fully control this menace by adopting the procedure being followed by neighbouring India. In India, only production waste can be imported for further recycling. According to Indian law, "plastic scrap/waste shall constitute those fractions of plastics generated by various plastic processing operations or those fractions generated in the production process of plastics in a plant, which have not been put to any use whatsoever and as such can be termed as virgin or new material which can be recycled into viable commercial products using standard plastic processing techniques but without involving any process of cleaning, whereby effluents are generated."

Conditions for importing plastic waste in India demand that:

(i) Applications for import licenses would be granted by Directorate General of Foreign Trade (DGFT) in consultation with Department of Chemicals & Petrochemicals and Ministry of Environment & Forests, India.

(ii) The plastic scrap/wastes conforming to the prescribed specifications would be permitted only to the actual users who have the required facility for recycling such scrap/waste and who are duly registered with the competent State/Central authority and also possess clear pollution clearance certificate from the concerned State Pollution Board where the unit is located, as well as a capacity assessment certificate.

(iii) Each consignment of plastic scrap/wastes imported shall be accompanied with a certificate from the factory in which it was generated to the effect that it conforms to the prescribed specifications.

(iv) The importer of the plastic scrap/waste shall also be required to furnish a declaration to the Customs authorities at the time of clearance of goods, certifying that the plastic scrap/wastes imported by him and for which clearance is being sought, strictly conforms to the prescribed specifications and that it is free from any kind of toxic/non-toxic contamination and has not been put to any previous use, whatsoever.

(v) The Port and Customs authorities shall ensure that shipment is accompanied by test report of analysis of the consignment in question, from a laboratory accredited by the exporting country.

(vi) Before the clearance of the plastic waste/scrap, all imported consignments of such plastic scrap/waste shall be subjected to scrutiny and testing of samples. Customs authorities shall for this purpose draw a sample and send the same to the nearest laboratory/Office of the Central Institute of Plastic Engineering & Technology (CIPET) with a view to having the same analysed and verified that such imported consignments are in conformity with the prescribed specifications.

Pakistan's Ministry of Commerce in its import policy order dated March 8 had introduced measures to further control the import of hazardous plastic import in the country. Under the new policy order the government wouldn't allow import of hospital waste of all kind, used sewerage pipes and used chemical containers.

According to the new import policy, plastic scrap was supposed to be Importable by industrial consumers subject to the fulfilment of certain conditions, such as certification confirming appropriate manufacturing facility available with the importer and determination of import quota from concerned Federal/Provincial Environmental Protection Agency.

Nothing has so far been implemented in this regard and from January 2013 to December 2013 Pakistan allowed dumping of over 25,736 metric tons of plastic scrap in the country. The major dumping countries include, kingdom of Saudi Arabia 37 percent, Britain 27 percent and United Arab Emirates 15 percent share. Other dumping countries include: Bahrain/Kingdom of Bahrain 6 percent, Belgium 4 percent, Netherlands 3 percent, Hong Kong, China 2 percent, Oman 2 percent, Germany 2 percent, Kuwait 1 percent, & others.

Informed sources said that despite it being the policy's intent to have the plastic scrap consignments inspected by technically qualified designated Pre-Shipment Inspection companies in exporting countries, this rule is yet o be implemented.

Industry sources said that the current policy like previous policy limits the import of non hazardous plastic scrap to manufacturers only, however, making it more regulated by assigning manufacturer quota for import. As previously observed that most of plastic scrap in Pakistan is imported by traders for resale therefore, the efficacy of newly proposed measures could only be ascertained if it's implemented in letter and spirit.

They said that in Pakistan, despite the new rules in Import Policy order 2013, imported plastic scrap continued to be released on certification of a renowned multinational certification company on the basis of visual inspection and radiation testing. The irony being that of the 27 hazardous constituent elements defined in the Basel convention none can be tested by either visual inspection or radiation testing.

The former method lacks any and all scientific analytical reasoning capability while the latter checks a sample for radioactivity (plastics due to their generally lower densities are not used to handle radioactive substances in the first place) and is incapable of identifying levels of biological toxicity, heavy metals, chemical toxins and other sources of toxicity. This is all in principle due to the implementation framework of the import policy, which is still not finalised.

Source:- brecorder.com

Govt Urged To Improve Economic Competitiveness

Experts have urged the planners to improve the economic competitiveness, which is an ability to export more value-added products than import, but without subsidising exports or erecting tariff and nontariff barriers against imports.

“You cannot increase competitiveness through subsidies, concessions and grants,” Naveed Anwar, senior economist, said. He said a country needs strong institution and prudent policies to increase competitiveness. True competitiveness comes when a level playing field is provided to all citizens, he said, calling for equal opportunity to all entrepreneurs and innovators that are most efficient producers of goods and services.

“Even global experts are confused about the actual definition of competitiveness,” he said, adding that the European Commission, for instance, in its European competitiveness report did not elaborate what competitiveness is. Michael Porter of Harvard states that productivity is the barometer of competitiveness of an economy. Some others consider competitiveness as a set of institutions and policies that determine the level of productivity.

Anwar said this confusion should be addressed as competitiveness is not the same as productivity. You can increase productivity through subsidies or through better technology, quality human resource and higher efficiencies.

The economist said competitiveness relates only to the economic health of a traded sector, in which a firm sells a significant share of its output outside a particular nation. He said Pakistan could have high productivity in its locally operated hardware stores but still have unhealthy traded sectors.

Economist Faisal Qamar said if we look around our region, China and India are able to export more in textiles because they provide huge subsidies to cotton producers and direct subsidies to its exporters. Likewise, Bangladesh enjoys duty concessions from developed economies over major textile exporting nations; it also provides direct subsidy to its exporters.

These three economies are not competitive in true sense as they have also erected trade barriers on import of textiles, he said. Textile sector in Pakistan operates without government support or subsidies and is more competitive than the above three nations.Qamar said the distortions created by other regional countries are undermining the ability of Pakistan to exploit its true export potential.

Weak institutions and flawed government policies are compounding the woes of this sector. Despite these drawbacks, textiles, he added, is the most growth-oriented sector of Pakistan’s economy as it operates without government subsidies and concessions.

The economist said most planners focus on trade deficits alone but ignore the fact that a nation might run a trade surplus by providing discounts to its exporters. This, he added, could be in the shape of undervalued currency as is the case in China, or due to suppressed export sector wages, which are in Bangladesh. He said subsidies or import barriers as in India could increase exports and have the potential to create trade surplus.

A certified public accountant Asif Ali Shahid CPA if the trade surplus of a nation is due to large discounts provided to the exporters, it will not be truly competiveness.If the trade surplus is accumulated by erecting sizable import barriers, the competitiveness of the economy would be in doubt.

Source:- thenews.com.pk

Exports Fail To Lift Onion Prices; Increased Arrivals Keep Market Rates Low

Exports fail to lift onion prices; increased arrivals keep market rates low Jayashree Bhosale, ET Bureau Feb 5, 2014, 04.00AM IST.wholesale prices|Onion prices|Onion|Nafed|MEP|markets|exports(Export of onions may be robust)

Export of onions may be robust, but that's no relief for farmers are domestic prices are sliding. Wholesale prices crashed to 5.50/kg in Pune on Monday. Crop input from Maharashtra is on the rise, despite the exporters shifting their procurement base from Nashik to Pune. Trade veterans expect the situation to turn worse by April when the rabi crop hits the market.

After the Central government reduced the minimum export price ( MEP) to $150/tonne in December 2013, exports from Maharashtra boomed, especially from Nashik. Recently, the exporters have shifted their procurement base from Nashik to Pune region comprising of Satara, Kolhapur etc.

The light pink coloured onion coming from this region is better suited for exports due to its slightly longer shelf life. "About 50 to 70 trucks of onions are going from Pune to Mumbai every day for exports. The Dubai-quality onion gets Rs 8.50/kg," said Ganesh Shedage, an onion and potato wholesaler from Pune.

Despite the exports, onion prices have declined by 30-40% during last one month in all the growing areas in Maharashtra, Gujarat and Karnataka. They are likely slide further due to heavy arrival of the bulb everywhere. Markets such as Ahmedabad, Pune etc are getting about 30,000 quintal onion every day from last week.

Trade veterans say the worse is yet to come. "The domestic onion prices may crash further by April as the area under the crop has increased everywhere. The government may have to give subsidy to boost onion exports and support the prices," said CB Holkar, director of National Agricultural Cooperative Marketing Federation of India.

Source:- articles.economictimes.indiatimes.com

Southern Indian Cement Producers Start Exports To Myanmar

Producers in the south of India have started exporting cement to Myanmar in response to depressed market conditions locally. Chettinad Cements, the India Cements, Dalmia Cements and Ramco Cements have all started shipping cement to Myanmar in the past few months, according to local media.

"We started shipments in January 2014 to Myanmar of about 10,000 - 12,000t. It is not very remunerative, but when the chips are down, we have do something to stay afloat," said Vipin Agarwal, CEO-south, Dalmia Cements. He added that producers make 'token' profits from this market but hope it will become profitable in the future. Dalmia transports its cement from Dalmiapuram in central Tamil Nadu to Tuticorin port for subsequent export. Ramco Cements also starting trialling cement exports to Myanmar in mid-2013, having shipped around 40,000t so far.

Agarwal said that demand in south India has continued to fall with growth in Karnataka, no change in Kerala and decreases in Tamil Nadu and Andhra Pradesh. Cement producers in the region are operating at 55% of their rated cement production capacities. Myanmar is the second export market that cement producers are testing, after Sri Lanka.

Source:- globalcement.com

Libor rate is acceptable to calculate ALP of interest payable or receivable in International Transac

IT/ILT : Where while calculating ALP in respect of interest receivable or payable in international transaction, Libor plus Certain base points could be accepted

HC can’t condone delay in filing of appeal beyond permissible period of condonation by Commissioner(

Service Tax : High Court has no power, even in exercise of its writ jurisdiction, to condone delay in filing appeal before Commissioner (Appeals) beyond permissible period of condonation by him

Stock broker penalized for unauthorizly operating client's account to create artificial volumes in s

CL: Where stock broker, instead of trading on behalf of his client, had used account of his client for placing orders in scrip leading to manipulation of volumes of scrip which resulted into increase in its price, there was violation of PFUTF Regulation

Pension Fund Regulatory and Development Authority Act, 2013 applicable from 1 February, 2014

CL : OTHERS/INDIAN ACTS & RULES : Section 1 of The Pension Fund Regulatory and Development Authority Act, 2013 - Act - Enforcement of - Notified Date on Which all The Provisions of Said Act Shall Come into Force

Sec. 40(a)(i) disallowances based on residential status doesn’t violate non-discrimination clauses o

IT/ILT : Sec. 40(a)(i), based on residential status, doesn't violate DTAA bar on discrimination based on nationalities

No ST on construction of self-contained buildings, wherein each building was having 12 dwelling unit

Service Tax : Where assessee had constructed various residential complexes for State Government wherein each building had self-contained facilities and was consisted of 12 dwelling units, it was not liable to service tax under construction of complex services

Sale of agricultural land located outside the purview of municipal limits is exempt from tax

IT : Profit earned on sale of a land wherein agricultural operations were carried out and which was also classified as agricultural land in revenue records, is agricultural income of assessee

No appeal against oppression if petitioner didn't prove payment of call money necessary to treat him

CL: Where petitioner was a subscriber to Memorandum of Association and had failed to produce any document to substantiate that he had paid call money, requisite criteria as contemplated under section 399 was not fulfilled and petition filed under section 397 was not maintainable

Rectification appeal allowed as Tribunal erroneously concluded that certain matters weren’t pressed

IT: Where Tribunal erroneously recorded revenue's concession to effect that certain grounds were not pressed and rendered no decision on merits on such grounds, it constituted a mistake apparent from record and, thus, revenue's application seeking rectification of said order was to be allowed

RBI devises new system to facilitate filing of returns relating to export of goods/services on a sin

FEMA/ILT : Export of Goods and Services - Export Data Processing and Monitoring System (EDPMS)

Service of sales commission agent isn’t eligible for input service credit; CBEC circular not binding

Cenvat Credit : An assessee is not entitled to input service credit of services of commission agent; view in assessee's favour taken in CBEC Circular is not binding on Department

No concealment penalty for creating a provision for liquidated damages even when other party didn’t

IT : Where contract entered into between assessee and other contracting party provided a clause for liquidated damages from assessee in case of delay in executing work, concealment penalty could not be imposed merely because assessee made a provision for same and claimed it as deduction but no such claim was raised by other party

Predominant objective of promoting Christianity wasn’t an educational activity; trust registration n

IT: Where assessee-trust made application for grant of registration under section 12AA claiming itself as an educational trust, since predominant object of trust was to promote Christian religious faith and no educational activity within meaning of section 2(15) was carried out, it was not entitled for registration

Purchases couldn’t be treated as undisclosed investment without pointing out defect in supporting do

IT: Where genuineness of documents evidencing purchase of machineries by assessee was not doubted, any addition treating said purchase as undisclosed investment could not have been made to assessee's income

RBI devises new system to facilitate filing of returns relating to export of goods or services on a

FEMA/ILT : Export of Goods and Services - Export Data Processing and Monitoring System (EDPMS)

RBI eases export-import norms; does away with requirement of firm irrevocable order for third party

FEMA/ILT : Third Party Payments for Export/Import Transactions

Additions upheld by ITAT under different provision can be challenged through review and not rectific

IT: Assessee could challenge finding of applicability of section only under review proceedings, but not in rectification proceedings as long as action was authorised and governed by a provision

Directors and Guarantors of sick company not entitled to get protection under sec. 22(1) of SICA

SICA: Directors and guarantors of a sick company are not entitled to get protection of section 22(1) of SICA

If partner’s flat used by employee it can’t be said to be used by firm for its business; notional re

IT : Where assessee was partner in certain firms and he had not shown any notional income from a residential flat owned by him claiming that flat was used by employees of a firm, income from flat was chargeable in hands of assessee

Deletion of additions for unexplained jewellery on admission of evidence need not be interfered with

IT: Deletion of a part of addition made in respect of gold found during search on basis of concurrent finding of fact given by both appellate authorities on appreciation of evidence need not be interfered with

Repair onboard of marine vessel won't be deemed as export if vessel was in territorial waters of Ind

Service Tax : Services by way of repair and maintenance of electronic equipments onboard marine vessels while they are anchored in territorial waters of India cannot be regarded as 'exported', as services are performed in India

Depreciation allowed on composite amount paid for IPR and non-compete fees as it wasn’t possible to

IT : Where assessee carrying on business in software development, etc. entered into an agreement with one 'P' for hiving off and transfer of software development and training divisions from 'P' and paid certain amount to 'P' towards acquisition of intellectual property rights and non compete fee, since agreement between parties was a composite agreement, assessee was entitled to depreciation on intellectual property rights as well as on non compete fee

Assessment of trust under Chapter IV and not chapter III would deny all available benefit; assessmen

IT : Where assessment was completed under Chapter IV instead of Chapter III in case of a trust duly registered under section 12A without pointing out any defect in books of assessee, assessment order passed by Assessing Officer was without any merit

Newmont Upbeat Govt Will Resolve Export Duty Problem

PT Newmont Nusa Tenggara (NNT) is hopeful its talks with the government over a controversial export duty will bear fruit although authorities keep saying there is no room for compromise.

Martiono Hadianto, the president director of NNT — the Indonesian unit of US-based Newmont Mining Corporation — indicated Tuesday that an agreement would be reached over the matter and that the company would not go ahead with its plan to seek international arbitration.

“We keep trying to discuss this with the government. I’m optimistic that we can work it out,” Martiono told the press.Beginning Jan. 12, the government formally banned the export of unprocessed mineral ore in line with the 2009 Mining Law. As most mining companies have not built smelters, as required by the law, they have been given until the end of 2016 to continue exporting semi-finished mineral products. The government, however, has attached strings: Companies must obtain export permits and pay a progressive export duty of between 25 and 60 percent during the three-year period.

Mining companies strongly oppose the export duty because the rates are high, exceeding their average profit margins. For some companies, the duty also violates their contracts of work (CoW).CoW holders, such as Newmont and PT Freeport Indonesia — subsidiary of Freeport-McMoRan Copper & Gold Inc. — have argued the export duties violated their contracts.Under the CoW, the contract-holder shall not be subject to taxes, duties or fees by the government except those already stipulated in their agreements.

Finance Minister Chatib Basri said separately that the export duties were aimed at forcing miners to build smelters in the country, as mandated in the Mining Law.“The key point is whether there is a smelter or not. If a company has already built a smelter and has conducted the purification process [to produce metal], it won’t be required to pay an export duty,” Chatib said.

He added that mining companies would also have to prove they had mustered sufficient investment capital as evidence of intent to process minerals domestically.NNT has said that because of the duty it had no plans to export its copper concentrate until later this quarter and would take the time to talk to the government to resolve the issue.

Freeport-McMoRan’s chief executive officer has made marathon visits to a number of ministries to discuss the new regulation, but so far the government has given no indication that it would ease the export duty for the mining giant.Jakarta-based energy sector think tank Reforminer Institute executive director Pri Agung Rakhmanto said the 2009 Mining Law had drawn multiple interpretations because the issuance of technical regulations for the implementation of the export ban had come too late.

“The government has the right to issue any regulation. On the other side, contractors have the right to hold on to agreed contracts,” he said.“The regulations were issued with good intentions, however, the government lacks coordination so there is no certainty. For example, the export duty was not derived from the Mining Law, but was issued by the Finance Ministry.”

He said any exemption to export duties given to CoW holders would discriminate against non-CoW holders and therefore the fairest solution would be arbitration.“Arbitration is a final option. It is also positive because it will clear up how the game is actually played,” he added.

Source:- thejakartapost.com

Garment Exporters Worry Over Costlier Yarn

The Textiles Ministry expects exporters to achieve a target of $43 billion this fiscal. But, fundamental issues such as the rise in costs of raw cotton, freight charges, and labour puts it a little beyond reach.

The recent hike in cotton yarn prices by mills is a roadblock to the revival in garment and knitwear exports, said A. Sakthivel, President, Tirupur Exporters’ Association, in a letter sent on Monday to the Textiles Minister Kavuru Sambasiva Rao.

He protested the ? 10/kg increase mills have effected over the last 10 days, raising bottom-line concerns for clothing manufacturers at a time Indian textile units have just begun to benefit from European and American economic recovery.

“When we have been taking efforts to reach the export targets fixed by the Ministry of Textiles, the increase in yarn prices have come as a blow. It would be difficult to reach the set level in this year,” he said in the letter.

S. Sakthivel, Executive Secretary, TEA, told Business Line the Ministry has set a stiff export target against $34 billion achieved last fiscal. The spinning mills, he said, are a tad slow in reducing yarn prices after rates of raw cotton decline.

However, the mills, which supply cotton yarn for the manufacture of fabrics and garments, tell a different story: the input costs for these factories have increased by ?30 a kg in the last six months. One of the chief contributors to this inflation is the increase in raw cotton prices despite a record output forecast of 375 lakh bales for 2013-14.

K. Selvaraju, Secretary-General, The Southern India Mills’ Association, says the on-the-ground output this year could fall short of that prediction by 15 lakh bales. On top of that, export of raw cotton is seeing swift registration despite tepid demand from China and other buying nations.

Over 65 lakh bales have been marked for export this season, and the total shipments may touch 90 lakh bales this year. Since consumption by Indian mills is pegged at 290 lakh bales, exports above 70 lakh bales will mean short supply for domestic mills, and as a result – price inflation. “Add to this the holding back of stock by farmers for want of a better price. This is obviously bound to create a pressure on prices.” The incremental hike in diesel prices and rising labour costs are not on the credit side for mills grappling with working capital issues.

Lorry freight charges have risen by ?7,000 for a consignment of 100 bales (17,000 kg). Tamil Nadu, which produces about 70 per cent of the cotton yarn in the country, has a raw cotton production capacity of only 5 lakh bales.

To meet its targets, it transports, chiefly from Gujarat, about 115 lakh bales each year.Around 2.09 bales make a candy of cotton. “With the price of good quality cotton from Gujarat ruling at Rs. 46,000 a candy, how can yarn prices be kept down,” questions Selvaraju.

Source:- thehindubusinessline.com

Conference On Harbour And Ocean Engineering

The 5th Indian National Conference on Harbour and Ocean Engineering will be held at the National Institute Of Oceanography, Dona Paula, from February 5 to 7. The inaugural session at 10am on February 5 will be chaired by NIO director S W A Naqvi and scientist Ehrlich Desa.

Kosambi festival of ideas: The 7th D D Kosambi Festival of Ideas, organized by the directorate of art and culture, will be held till February 8 at Kala Academy, Campal. This year, the speakers include Vandana Shiva, Indian environmental activist and anti-globalization author; Jayant Narlikar, Indian astrophysicist and a proponent of steady state cosmology; and Kishore Mahbubani, a Singapore-based academician and former Singaporean diplomat and currently professor in the Practice of Public Policy and Dean of the Lee Kuan Yew School of Public Policy at the National University of Singapore.

Photography exhibition : In collaboration with the directorate of art and culture, the parish priest of Holy Family Church, Alto-Porvorim, Fr Tomas Lobo will be holding a photography exhibition titled 'Eco Yatra' at the art gallery, directorate of art and culture until February 6. The exhibition will continue at the venue from 10.30am to 7.30pm.

Sufi music workshop: Artistes Priyanka Patel and Anuraag Dhoundeyal of the 'Looking Glass' initiative will conduct a sufi music workshop at Literati, Calangute, on February 12 at 4pm. The two and a half hour workshop is open to people aged 18 and above. Registration fee is Rs 1,000 and prior registration can be doe.

Bookworm's Jumble Sale: Bookworm,a library based organisation is conducting its annual fund raising Jumble Sale. The funds raised will support Bookworm's 'Library in Schools Program' ( LiS) and the 'Mobile Outreach Program' ( MOP). The Jumble Sale is a massive drive to raise funds from the community to help spread a love for reading. The Jumble Sale will be held at the Indoor Stadium Parking Lot ( Behind Fab India) Campal, Panaji on the February 9, from 9am to 6pm. For further details contact Bookworm 0832 2451233.

Workshop on clay play for kids: Intro Creative Clay Studio at Gallery Gitanjali, Panaji, will organize an introduction workshop to clay play with Verodina de Sousa for children aged 6 years and above. The workshop will be held from February 8 to March 1 every Saturday between 5.30pm and 6.30pm. Sousa is a sculptor trained in clay at the teachers training center in Mumbai after graduating from the Goa College of Art. Her works include the fisherwoman traffic island at Panaji and a 4m tall figure of the risen Christ at the Bambolim church. The Creative Clay Workshop will have four sessions involving the following clay projects: an elephant as a lamp, bird's nest serving dish, a mask as a wall hanging and a plaque. Limited seats available. For registration contact at 2423331 / 8806035195 or email at gallerygitanjali@gmail.com.' Bookgallerygitanjali@gmail.com

The Hungry Mind presents 'Book in a Bag' where children from age 2 to 8 cajoin a session of fun and story telling on February 5 at Pajifond-Margao from 5.30pm to 6.30 pm. Call Andrea Menezes Crasto on 9923103514 to confirm attendance.

Discourse: Fr Abraham SJ, a Jesuit priest and counsellor, will deliver a discourse on 'Ego's Death Leads to Happier Life' on February 6 at 6 pm at Jesuit House, Panjim. It is free and open to all. Fr Abraham is available for counselling atJesuit House, Panjim. Contact 9850123667/2223495 for details.

Seminar on textile laundering: Goa state museum, in collaboration with Goa college of home science, is organizing a one-day state level seminar 'Selection and Laundering of Silk Textiles' on February 17 from 9.30am to 4.30pm at Goa state museum auditorium. The seminar is open to entrepreneurs,professionals, fashion designers and clothing conscious home makers. Limited seats are available.For registration and further queries contact Goa College of Home Science office on 0832 2227603 or 2425254.The last date for registering is February 12. Spot entries will not be accepted.

Monte music festival: The 12th Monte Music Festival 2014, will be held from February 7 to 9 at Chapel of Our Lady of the Mount, Old Goa. After the inaugural at 5.45pm, the festival will feature an Indian bamboo flute recital by Shantala Subramanyam (Chennai) in Courtyard-1. Later at 7.30pm, a vocal recital by soprano Lourdes Martins (Italy) will be held inside the chapel. The second day of the festival features a Bharatnatyam recital by Sharanya Chandran (Delhi) at 6pm in Courtyard-1, Goan mando by Goenchim Kirnnam and Porvorechim Sobit Fullam (Goa) at 7pm in Courtyard-2, and Bangalore's Cecilian choir inside the chapel at 8pm. The final day of the festival will kick off with a violin recital by Anupriya Deotale (Delhi) at 6pm in Courtyard-1, and a Portuguese guitar recital by Franz Schubert Cotta and Siddharth Cotta in Courtyard-2 at 7pm. The last performance of the festival will be the Goa University choir, which will sing inside the chapel at 8pm. No parking will be allowed at the venue.

Source:- timesofindia.indiatimes.com

Mills Rule Out Yarn Price Revision

Close on the heels of garment units in Tirupur urging the Union textile minister to intervene in controlling the rise in yarn prices, spinning mills in the region have ruled out any reduction in prices.

Cotton prices, which were ruling at 47,500 (spot price per candy of 355kg) during September 2013, came down to 39,000 in December. But they have again increased to 43,000 now, mills said. Prices of 40s combed hosiery yarn for the corresponding months stood at 260 per kg, 241 and 256 respectively.

"The cotton price rise alone would have an impact of 25 per kg on yarn, which has been only partly passed on to downstream sectors, which is unavoidable to sustain viability," said T Rajkumar , chairman, Southern India Mills' Association.

Garment exporters said that mills had increased yarn prices by 5 per kg for all counts twice in the last 10 days. "This kind of pricing strategy of mills has put the garment sector in jeopardy," said A Sakthivel, president, Tirupur Exporters' Association in a letter to union textiles minister K Sambasiva Rao.

Stating that export units are getting orders after a prolonged demand contraction in the EU market amidst a gradual recovery in the US market, he said that any deviation in planning for overseas orders would have a cascading effect on stakeholders in the garment industry.

"After getting rejuvenation through the arrival of orders, the increase in yarn prices have come as a blow on the knitwear sector and it would be difficult to reach the set level (for exports) this year," Sakthivel said.

Source:- timesofindia.indiatimes.com

Mexico Exports First Shipment Of Extra Light Olmeca Crude To India

Mexico's national oil company Pemex will export its first shipment of extra light Olmeca crude to India later this month, the company said on Tuesday, as it seeks to expand markets beyond the neighboring United States.

Pemex's commercial arm P.M.I. Comercio Internacional will deliver a shipment of 500,000 barrels of Olmeca in addition to 1.5 million barrels of heavy Maya crude oil to the Asian nation during the second half of February, a company spokesperson told Reuters.

Olmeca is Mexico's most valuable form of crude. The vast majority of Mexican output is heavier crude which is more costly to refine.

Current average Mexican oil exports to India are around 100,000 bpd, which up until now has only comprised of Maya.The exports are part of an ongoing plan by Pemex to diversify its export markets away from the United States, which is importing less Mexican crude as its own domestic production surges.

Last year, about 70 percent of Mexico's crude exports were sent to the United States, but export volumes to the U.S. are down by half since reaching a peak of 1.6 million barrels per day (bpd) in 2004, according to data from Mexico's national statistics agency INEGI.

Mexico's crude oil production, which currently stands at 2.5 million bpd, is down by a quarter over the past decade.Pemex has said it sees both India and China as future growth markets for its crude.

A sweeping energy reform signed into law in December promises to boost output by luring significant new streams of foreign investment into Mexico's oil industry over the next several years.So-called secondary laws needed to implement the reform are expected by April.

(Reporting by David Alire Garcia: Editing by Diane Craft).This story has not been edited by Firstpost staff and is generated by auto-feed.

Source:- firstpost.com

Indian Rupee Gains Against Us Dollar As Stocks Rebound, Demand Strong At Spectrum Auction

The Indian rupee recovered against the US dollar from early losses on Tuesday to end the session with marginal gains as the government's mobile spectrum auction attracted strong demand, including from bidders such as Vodafone, offsetting concerns about global risk aversion.

The government received $7 billion worth of total bids on Monday, the first day of the auction and looked set to top its minimum target of raising $1.8 billion initially.

Foreign companies like Vodafone and Telenor would have to convert their dollars to rupees if they win licences, with the first tranche needing to be paid within 10 days of allocation.

The rupee also benefited as Asian currencies firmed up later in the session on Tuesday as the region is seen better placed than other emerging markets to face the fallout of any global risk aversion due to the U.S. Federal Reserve's stimulus tapering and concerns of a slowdown in China.

"There have been rumours of fund flows related to the mobile spectrum auction over the last two days. The recovery in stocks also helped the rupee," said Uday Bhatt, a senior manager at UCO Bank.

He expects the rupee to trade in a range of 62-63.50 to the dollar in the near term.

The partially convertible rupee closed at 62.5250/5350 per dollar compared with Monday's 62.56/57, after initially falling to a session low of 62.81.

Dealers spotted healthy dollar selling by foreign banks, which they attributed to inflows related to the spectrum sale.

Meanwhile, shares rebounded from four-month lows, also helping the rupee. India's benchmark BSE index ended flat on Tuesday after declining as much as 1.2 percent.

Concerns about selling by foreign investors have clouded the outlook for Indian markets. Overseas funds sold a net $1.7 billion worth of shares and debt over seven sessions to Monday, according to preliminary exchange and regulatory data.

Still, India is seen as less vulnerable than last year when similar fears of a Fed tapering sent the rupee crashing to a record low of 68.85 to the dollar on Aug. 28.In the offshore non-deliverable forwards, the one-month contract was at 62.95, while the three-month was at 63.84

Source:- financialexpress.com

Assessment order to be quashed if matter not referred to TPO even when international transactions ex

IT/ILT: Where aggregate value of international transactions entered into by assessee exceeded Rs. 5 crore, still Assessing Officer did not refer matter to TPO, Commissioner was justified in setting aside said assessment order

Indian resident held guilty on confession that he received and made payment on behalf of NR in contr

FERA : Where certain amount was recovered and seized by Enforcement Officers from office and residence of appellant who confessed that he was indulged in receiving and making payment in India on behalf of a Singapore resident without any exemption from RBI, appellant was rightly held guilty of provisions of section 9(1)(b) and 9(1)(d)

SEBI paves way for issuer to make IPOs without any grading mandate

SEBI/INDIAN ACTS & RULES : SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2014 - Amendment in Regulation 26, Schedule VIII & Schedule XIII

No ST on services provided by authorized person in relation to forward contracts during 10-09-2014 t

GST : Section 83 of The Finance Act, 1994 Read With Section 11C of The Central Excise Act, 1944 - Power not to Recover Duty of Excise not Levied or Short-Levied As A Result of General Practice - Period From 10-9-2004 to 30-6-2012 - Services Provided by an Authorised Person or Sub-Broker to The Member of A Recognized Association or A Registered Association, In Relation to A Forward Contract, Exempted From Service Tax

Laying of pipelines for irrigation work isn't liable to service-tax

Service Tax : Activity of laying of pipelines falls under 'works contract service' and, on account of exclusion of laying of pipelines for irrigation work from taxable services, said activity is not liable service tax

Notice of penalty issued not in course of survey proceedings, but after its closure, is invalid

IT : Where penalty notice had been issued not in course of survey proceedings, but after its closure, assessee could not be prosecuted qua concealment of income

Time-limit to complete block assessment counted from date of second search which is continuation of

IT: Where there is more than one authorisation, starting point of limitation is to be computed from last of authorisation which as per Explanation 2 to sub-section (2) of section 158BE is deemed to have been executed on conclusion of search as recorded in last panchnama drawn

CCI approves of combination of two banks as resultant business would have insignificant impact on co

Competition Act : Proposed combination was to be approved when presence of acquirer in mortgage and banking business in India after proposed combination was insignificant and same did not have any appreciable adverse effect on competition

Spares supplied by vehicle manufacturer were not includible in value of authorized service station s

Service Tax : Cost of spare parts supplied by vehicle manufacturer by way of credit notes is not, prima facie, includible in value of authorised service station's services in view of Notification No. 12/2003-ST

Additions made in substantive assessment couldn't be added back during protective assessment

IT: Where certain amount of premium arising on sale of land was added to income of AOP consisting of nine persons including assessee in substantive assessment, said amount could not be added to assessee's individual income again in course of protective assessment

Amortization of premium paid in excess of face value of ‘Held to Maturity’ investment allowable as r

IT: Where premium paid in excess of face value of investments classified under HTM category had been amortized over period till maturity, same was allowable as 'revenue expenditure'

Advisory fee earned by investment banker is business income even if he can’t substantiate sum incurr

IT : Management and advisory fee received by assessee engaged in dealing in shares, investments, loan, finance and related activities, is business income of assessee, irrespective of fact as to whether assessee has not substantiated sum incurred to earn same

Terminal handling charges paid for export of goods were eligible for ST refund

Service Tax : Terminal handling charges paid in respect of export of goods are eligible for refund/exemption under notification No. 41/2007-ST

Liability to deduct tax under sec. 194C would not arise in case of purchase of goods and equipment

IT : In a case of purchase of goods and equipment, provisions of section 194C would not be attracted

No penalty on director under FERA if he wasn't looking after routine matters of co., including impug

FERA: No penalty could be imposed on director of company, which was held guilty for contravention of provisions of sections 8(3) & 8(4) for not producing evidence for import of goods against remittance of certain amount, in absence of any evidence to prove that said director was looking after day-to-day affairs of company including transaction in question

Additions for undisclosed income due to variation in stock is question of fact; no interference requ

IT: Additions for undisclosed income due to variation in stock is question of fact; no interference required: HC

No penalty for filing of unsigned auditor's report if mistake was subsequently rectified by assessee

IT : Filing of unsigned report of auditor by mistake was merely an irregularity and where it was duly rectified on being pointed out, no case for levying penalty under section 271B was made out

Consideration of appeal on merits tantamounted to condonation of delay even if no separate order was

Service Tax : Though appellate authority cannot consider belated appeal on merits without, first, condoning delay, however, if appeal is considered on merits, authority should appropriately be considered to have entertained appeal by virtually condoning delay

No denial of sec. 10(23C) relief to assessee if exemption certificate was delayed due to revenue's f

IT: Where exemption under section 10(23C)(iv) was available to assessee in previous and subsequent years, however, during assessment years under consideration certificate was not obtained due to technical reason or delay on part of revenue, exemption could not be denied

Ministry does away with max ceiling on sale of export rejects of un-mutilated clothing by SEZ to DTA

SEZ INSTRUCTION : Policy to Regulate Functioning of Worn and used Clothing units in SEZs - Amendment in Instruction, Dated 17-9-2013

Tusker Eats Plastic Waste Thrown By Pilgrims, Dies

A 40-year-old female elephant has died after consuming plastic waste dumped by Sabarimala pilgrims.Forest officials found the carcass at Valiyanavattam along the path leading to the pilgrim centre in Pathanamthitta district.

Veterinary surgeon Saseendra Dev, who conducted the autopsy, said the animal had consumed 2 kg of food packaging waste, including plastic bags, biscuit covers and aluminum foils.

“The waste should have been discharged with dung. But large quantity of the non-degradable waste got stuck in the bowels, leading to intestine obstruction. Its colon was ruptured due to constipation. We found the carcass Saturday, a week after the elephant died,’’ he said.

The two-month-long annual Sabarimala pilgrimage ended in the second week of January. Lakhs of pilgrims, particularly from south India, visit the hill shrine. The government has banned use of plastic bags in the region but the ban has never been effective.

P S Easa, head of wildlife biology division at Kerala Forest Research Institute, said food packaging waste posed a serious threat to elephants and other animals.

“In the past, we have noticed plastic waste in the dung of elephants and deer,” he said. “Many small animals have died in the past but such incidents generally go unreported,” he added.

Easa said the Sabarimala forest region had enough vegetation for elephants. “But the salty content in packaging waste lures them to garbage dumps. Salt is a major attraction that makes elephants consume packaging waste. Some packets also have leftover food,” he said, demanding strict enforcement of the plastic ban in the region.

Source:- indianexpress.com

4,000 Orange Fruit Containers Exported

The former chairman and spokesman of All Pakistan Fruit & Vegetable Exporters, Importers and Merchant Association (PFVA) said on Monday that the export of orange fruit was on full swing to the global markets as 4,000 containers worth USD $88.90 million had been exported, while possibility of export of potato to Russia during current week had also been brightened.

Wahid further said that the export volume of orange fruit to Russia had been restricted to 30% as compared to last year and the exporters were facing huge financial losses despite availability of good quality of Moroccan's oranges. The Russian market has been flooded with Pakistani oranges amid low price offered by this market. On other hand, a ban on import by Iran has further mutilated problems of the exporters.

Sharing good news, he stated that due to an increased demand of Pakistani potato in Gulf, Sri Lanka, Far-East, the export of potato had now reached 65,000 tons and out of the total production of 50 million ton, an additional three million ton was expected to be exported.

Chance of withdrawal of ban by Russian Quarantine on import of Pakistani potato was quite fair and it was strongly anticipated that the export of potato to Russia would commence in the current week, he further added.

The price of potato in local market is thrice of last year since it is being exported via land to Russia through Afghanistan, Iran and Iraq, and if price of potato is reduced locally, then 50,000 tons are expected to be exported to Russia, he further stated.Despite low price of potato from India & Bangladesh, we are still striving hard to achieve export target of potato this year, Wahid said.

Source:- brecorder.com

Aptma Chairman Urges Government To Ensure Level Playing Field

Islamabad—Muhammad Yasin Siddik, Chairman, All Pakistan Textile Mills Association (APTMA) has advised the Federal Government that the decision to relax trading links with India should have to be in stages and only opening up sectors in the first stage where Pakistani businesses and industries do not feel threatened on a large scale.

In a statement issued to the press, Mr. Yasin Siddik said that the importance of regional trade can not be denied but the decision to liberalize the trade will need to be made keeping in view the developmental stage in different industries and the level playing field should be given due importance while granting MFN status to India.

Chairman APTMA further said that the higher cost of production in a relatively smaller economy in comparison to India will make the Pakistani Industries vulnerable to tough competition and will adversely affect our industries which are not so competitive in terms of prices. He further said that in order to provide a level playing field the duty structure between the two countries should be equal and on reciprocal basis without any discrimination and Non-Tariff Barriers hurting exports to India be removed immediately.

He pointed out that there is no parity between Pakistan and India in the rates of customs duties of similar products, e.g. in case of cotton yarn Government of Pakistan has allowed duty free import of cotton yarn vide SRO 15(I)/2010 dated 6th January 2010 whereas there is 23% total import duty including 10% basic custom duty, 6% to 12% Capital Value Duty (CVD), 3% Custom Education Cess and 4% Special CVD on import of cotton yarn in India. Similarly export of cotton fabrics to India attracts over all 25% whereas there is only 15% custom duty in Pakistan.

Yasin Siddik urged the Government that before entering into a new trading arrangement with India, having long-term implications, the duty structure between the two countries must be equal and on reciprocal basis without any discrimination and Non-Tariff Barriers hurting exports to India in the context of textiles is secured.

He further said that in order to give Pakistan side a fair chance for enhancing exports and also allowing the Indian side to enter in export to Pakistan a level playing field shall be provided to Pakistani Industry as otherwise we will open flood gates for Indian exports while Pakistan side will not be benefiting from this new arrangements.

Source:- pakobserver.net

No penalty for belated filing of tax audit report as it was caused due to delay in completion of sta

IT: Late completion of statutory audit by auditors and consequent late receiving of tax audit report constituted reasonable cause for non-compliance with provisions of section 44AB

Acquiring built up area in lieu of transfer of development rights satisfies conditions for claiming

IT : Where assessee was representative of an AOP, which had been constituted for purpose of receiving income from rent and interest on fixed deposits, and members of AOP in terms of a development agreement sold development rights in a property to one 'S' and received certain super built up area in kind as part consideration for sale of property, assessee was entitled for deduction under section 54/54F

Iron Ore Pellet Producers Threaten To Shut Ops If Export Duty Not Rolled Back

Iron ore pellet producers have told the government that they may be compelled to shut operations if the government does not roll back the 5 per cent duty imposed on exports of iron ore pellets. The shut down would render futile nearly Rs 35,000 crore of investment.

The government had imposing a 5 per cent export duty on iron ore last week, which the companies say has dealt a body blow to their investments and capacity expansion plans.

While recommending the duty, the steel ministry had argued that iron ore was being exported in the garb of pellets, which virtually amounted to exporting the scarce mineral. The finance ministry has imposed the duty despite objections raised by commerce and industry ministry. In a letter dated January 7, the commerce ministry wrote to revenue secretary Sumit Bose saying that it does not support export duty because pellet is a value-added product and it has been the ministry’s stance that there should be no export duty on the same.

However, the commerce ministry said that out of an installed capacity of over 75 million tonne, barely 25 MT is domestically consumed. It says the lack of low domestic demand has, in fact, compelled producers to cut down their capacity utilisation to less than 50 per cent.

Leading pellet producers have told finance ministry that while most plants would find it unviable to operate, bigger players may have to rethink on expanding the capacities unless the government addresses their concerns.

“The government hastily announced the 5 per cent export duty on pellets, despite the fact entrepreneurs have invested thousands of crores of rupees to create capacities and expand their operations. This action deepens investor’s fears of a stable policy. Flip-flop policies can turn investments sour overnight,” Essar Steel executive vice chairman Firdose Vandrevala told The Indian Express.

State-run Kudremukh Iron Ore chairman Malay Chatterjee said his pellet project in Karnataka has a capacity of 3.5 MT and is a 100 per cent export oriented unit, which had recently commenced overseas sale of pellets. “For my company the situation is even more worrisome. My unit can only survive on exports. The duty will hugely impact commercial viability of our operations,” he said. Chatterjee said that over 1,000 employees could be rendered jobless.

JSPL Group CEO Ravi Uppal said the move exhibits lack of consistency in government policy. “It is a decision without any rationale, which would do colossal damage to the pellet industry, which have invested over Rs 30,000 crore during the last three years.”

UK-based Stemcor’s India subsidiary Brahmani River Pellets Ltd MD ND Rao described the 5 per cent export duty as “a regressive step” and a hurdle towards investments in clean technology and natural resource conservation.

Vandrevala said little over 1 million ton pellets have been exported abroad till January this fiscal against the installed capacity of 75 MT. “I fail to understand what motivated the steel ministry to recommend the duty and how much revenue would the government gain in imposing it when exports are abysmally low.”

Senior officials of the Pellet Manufacturers Association of India said that the move to levy the duty is suspect and would virtually close down the industry.

Source:- indianexpress.com

India Ready To Export Power From Amritsar To Lahore

While India faces energy shortage, its state of Punjab will soon be surplus, technically ready to export electricity from Amritsar to Lahore.“This can increase if more infrastructure is added. There will be third party assurance and presently the method of payment and trying to involve the private sector are being looked into,” says Manish Mohan, Director Confederation of Indian Industry, who says he has also worked with Aman Ki Asha.

However, one view heard everywhere is why Nawaz Sharif suddenly had cold feet after initially he was so enthusiastic about importing Indian electricity. Fingers point in a familiar direction as in all matters concerning India. Initially, 259MW can be provided to Lahore.

Mohan recalls a meeting set up initially for 15 minutes with Sharif which stretched to over an hour. “That Indo-Pak relationship is complicated is an understatement. We have not been able to create the right chemistry,” he adds.

Meanwhile, Nisha Taneja, who heads the Indian Council for Research on Economic Relations, says that many in Pakistan are completely unaware of the items they can freely trade with India. “At times we found out on our visits to Pakistan that they are clueless of the number of items they can export,” she said.

But, she added, there is less bureaucratic constraints in Pakistan. The project, she heads on Pakistan, is the biggest in India. She admitted that there are factors on both sides that are trying to slow down the process. “If everything was open and there was no impediment, both countries could trade including in oil, a sum of two billion annually with the balance of trade in India’s favour,” she added.

Source:- thenews.com.pk

Call For Ban On Rubber Imports

Given the declining prices of natural rubber in the recent period, the Indian Rubber Growers Association has demanded the suspension of rubber imports through all channels for a period of one year. It has also asked the authorities concerned to redefine the policy on import-related exports.

Siby J. Monippally, President of the association, pointed out that importers, who import through duty free channel, delay their export commitments unreasonably to an extent of three years, which was adversely affecting the balance in the industry.

The association has also submitted a memorandum to the visiting Union Defence Minister A.K. Antony in this regard.

It has been pointed out in the representation that 2.70 lakh tonnes of rubber were imported till now, where 65 per cent was imported through duty-free channel (duty exemption entitlement certificate). It is pertinent to note that the deficit of natural rubber in India is only 70,000 tonnes.

If this trend continues, three lakh tonnes of rubber are expected to reach India through import. This import is directed towards artificially creating supply in the market. Therefore, it is not in the interest of rubber industry and farmers.The memorandum also demanded that the standard input and output norms for duty-free import should be revisited.

Source:- thehindubusinessline.com

Govt Cuts Import Tariff Value Of Gold, Silver

Government on Monday slashed the import tariff value on gold and silver to USD 404 per ten grams and USD 635 per kg, respectively, taking into account the volatility in the global prices.

Import tariff value is the base price at which customs duty is determined to prevent under-invoicing. The tariff value is revised on a fortnightly basis after analysing the global price trend.

Till Sunday, the tariff value on imported gold was at USD 407 per ten grams, while on silver it stood at USD 663 per kg.

The notification in this regard has been issued by the Central Board of Excise and Customs (CBEC), an official release said on Monday.

Besides precious metals, the tariff value on imported brass scrap has been cut to USD 3,959 per tonne from USD 3,995 per tonne, while those on crude soyabean oil has been reduced to USD 917 per tonne from USD 944.

Similarly, the tariff value on imported RBD palmolein has been reduced to USD 898 per tonne from USD 902, while that on imported crude palm oil has been slashed to USD 857 per tonne from USD 877.

In London, gold prices on Monday fell by 0.33 per cent to USD 1,241.80 per ounce, while silver dropped by 0.23 to USD 19.12 per ounce. Domestic gold and silver prices remained down following weak global price trend.

Gold is the second largest import item for India after petroleum. However, gold imports are expected to decline this year as government has taken several measures to curb shipments to address the high current account deficit.

According to the jewellers body, total gold imports may decline to below 500 tonnes this fiscal due to these restrictions, from 845 tonnes in the last fiscal.

Source:- timesofindia.indiatimes.com

Rupee Logs 1St Rise In 3 Days, Up 12 Paise To 62.56 Vs Dollar

The rupee on Monday gained for the first time in three days and closed up 12 paise to 62.56 against the dollar on fag-end sales of the U.S. currency.

After dropping 27 paise in the previous two sessions, the rupee’s strength was also linked to anticipation of spectrum auction inflows and a weak American currency overseas.

At the Interbank Foreign Exchange (Forex) market, the domestic currency resumed slightly lower at 62.70 a dollar from last weekend’s close of 62.68.

It later fell further to a low of 62.79 on weak local stocks, worries over recent cut in U.S. stimulus and lacklustre Chinese data. However, later the rupee bounced back to settle at day’s high of 62.56, a rise of 12 paise or 0.19 per cent.

The dollar index was down 0.14 per cent against a basket of six major currencies when local forex markets ended.

“The initial weakness was due to poor China data and strength in US dollar index. Fed’s decision of tapering its asset purchase programme every month is seen getting reflected in emerging market currencies,” said Abhishek Goenka, Founder & CEO, India Forex Advisors.Data showing India’s manufacturing sector in January expanded at the strongest pace in 10 months, helped sentiment.

Pramit Brahmbhatt, CEO, Alpari Financial Services, (India) observed that rupee’s rise was aided by the dollar index trading weak as investor focus on emerging-markets fears faded. “The trading range for the USD/INR pair is expected to be within 62.00 to 63.50,” he said.The BSE Sensex slipped about 305 points to end at its lowest level in over 11 weeks.

“USD-INR witnessed some flat to negative movement with weakness seen in dollar internationally along with improved Indian manufacturing PMI data. Equity markets witnessed sharp downside movement. Indian benchmark yields witnessed some lower movement during the day. Dollar Index resistance is seen at 81.40,” said a note from Admisi Forex India.

As per provisional data, FIIs sold stocks worth Rs 735 crore on Monday.Meanwhile, forward dollar premiums remained weak on persistent payments by exporters.The benchmark six-month forward dollar premium payable in July softened to 250.5-252.5 paise from 252-254 paise last Friday.Far forward contracts maturing in January eased to 493-495 paise from 494-496 paise.The RBI fixed the reference rate for the dollar at 62.6891 and for the euro at 84.5780.The rupee rebounded to 102.27 against the pound from last close of 103.14. It improved to 84.51 per euro from 84.87.It, however, declined further to 61.27 per 100 Japanese yen from 61.27.

Source:- thehindu.com

Guarantee commission deemed at ALP as it was within range of prevailing bank rate for guarantee comm

IT/ILT: Rate of 0.5 per cent guarantee fee/commission would be at arm's length where rates of guarantee commission charged by various banks were found to be in range of 0.15 per cent to 3 per cent

Non-delivery of notice by security agency to assessee wasn't a valid reason to condone delay in fili

Central Excise : Receipt of order by registered post with acknowledgement due amounts to 'communication of order'; ground that security agency hired by assessee did not hand over said post to assessee is not a valid ground to rebut presumption of said communication and accordingly, delay caused thereby cannot be condoned

SAT upholds penalty as appellant was trading within group to create artificial volumes of illiquid s

SEBI : Where appellants had traded amongst themselves in a synchronized manner within group at incremental prices in respect of an illiquid scrip, inference drawn by Board that alleged trades were carried out with a view to create artificial volume was justified

Export rebate was available even if goods were not directly exported from factory, rules HC

Excise & Customs : Even if assessee has not exported duty-paid goods 'directly' from his factory/warehouse, export rebate may be allowed subject to documentary evidence proving direct co-relation between duty-paid goods manufactured/cleared by assessee and those exported by him

Receipts from sale of goodwill of profession are capital receipts; not chargeable to tax

IT: Sale of goodwill of profession would not as such come within ambit of provisions of section 55(2)(a); same is not taxable as LTCG

Director General has specifically been denied power to investigate suo-motu under the Companies Act,

Competition Law: Though MRTP Act, 1969 empowered Director General to exercise suo motu power of investigation, said power has been expressly denied to him under Competition Act

Land located beyond 8 km from village panchayat isn't a capital asset; profit derived from its sales

IT : Where assessee claimed that during previous year he in terms of an agreement entered with a promoter of land had sold his agricultural land and said land was situated at a distance of more than eight kilometres from nearest panchayat, profit derived on sale of land was not liable to capital gain tax, because land was not a capital asset by virtue of section 2(14)(iii)

Prior to 19-04-2006, reimbursable expenses were not includible in value of services

Service Tax : For period prior to introduction of Service Tax Valuation Rules, 2006 with effect from 19-4-2006, in case of a Clearing and Forwarding Agent, only remuneration and commission paid to C&F Agent by principal is chargeable to Service Tax and not expenses reimbursed by service recipient

HC remands case as appeal was disposed off in name of dead assessee

IT: Since order was passed by Commissioner (Appeals) in name of dead person, order of Commissioner (Appeals) needed readjudication

Hiring of vehicle on hourly basis shifts TDS obligations from sec. 194C to sec. 194-I front yard; Ke

IT : Where assessee entered into an agreement with a contractor for hiring of vehicles and made use of vehicles and equipment and paid hire charges on basis of number of hours of use, section 194-I, and not section 194C, would be attracted

Delay in filing of appeal not condonable on advocate's negligence if assessee remained silent for ye

IT : Where delay in filing appeal was due to negligence of advocate and also negligence of assessee who did not enquire about filing of appeal for more than two and half years, application for condonation of delay was to be rejected

Exemption granted on non-resident deposits from maintenance of CRR and SLR requirements withdrawn

BANKING : Section 42(1) of The Reserve Bank of India Act, 1934 Read With Section 24 of The Banking Regulation Act, 1949 - FCNR(B)/NRE Deposits - Exemption From Maintenance of CRR/SLR and Exclusion From ANBC for Priority Sector Lending

In view of sec. 38A, omission of a rule doesn't affect already accrued obligation

Excise & Customs: Though section 38A in Central Excise Act refers only to 'amendment or repeal or supersession or rescission', even omission or otherwise of a rule would not affect any obligation or liability that had already accrued or incurred

No additions under sec. 68 on mere grounds that lenders dealt with persons providing accommodation e

IT : Where in respect of loan transaction, it was apparent that amount was advanced through account payee cheques and lender had got sufficient balance in their bank account before issuing cheques, said transaction was to be regarded as genuine and, thus, loan amount could not be added to assessee's income under section 68 merely on ground that lenders were related to a person who was involved in providing accommodation entries

Service clause barring employees from competing with ex-employer can't be held as abuse of dominance

CL : A clause in service contract restricting an employee from taking employment with competitors, after he leaves employment, for a particular period, raises no competition issue