No denial of interest on refund money that remained with revenue even for period assessee took to re

IT: Interest cannot be denied by revenue for time taken by assessee to cure defects in TDS certificates

MCA notifies Rules under Companies Act, 2013

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Ministry of Corporate Affairs notifies various Rules under Companies Act, 2013 on March 27, 2014

Concealment penalty upheld as claim of depreciation on computer was not genuine: HC

IT : Where assessee's claim for depreciation on computers was neither bona fide nor substantiated with evidence on record, imposition of concealment and leased to ALTOS penalty was warranted

AO can't make additions on estimations without rejecting books of account or directing special audit

IT: Where audited books of account were not rejected or matter was not referred to special audit, Assessing Officer was not entitled to compute average interest on advances and to add difference between such average interest and interest actually charged

Where assessee sought for personal hearing, mere reference to written submissions not suffice; matte

CST & VAT : Where assessee has sought for personal hearing, then, mere reference to written submissions, documents and reply furnished by assessee would not suffice; in such cases, grant of personal hearing is mandatory

HC directs revenue to stay recovery as assessee agreed not to press for refund till disposal of appe

IT: Revenue was directed to lift attachment in respect of bank accounts forthwith and not to take any percipitative action with regard to outstanding dues as assessee agreed that it would not press for refund for which it was eligible for assessment years 2012-13 and 2013-14 till disposal of appeal before Commissioner (Appeals)

Genuine sale advances weren't unexplained cash credits merely if cash balance wasn't found on respec

IT : Where Assessing Officer made a lump sum addition in income of assessee on ground that it had accounted sale advances on various dates, but it did not have sufficient cash and Commissioner (Appeals) admitting additional evidence allowed appeal of assessee, Tribunal was justified in remanding matter to Assessing Officer to appreciate entire issue afresh

Parking services provided at airport were liable to ST either under Airport services or renting serv

Service Tax : Parking Services provided at airport or at any other place are not liable to service tax before or after 1-6-2007 under 'Airport Services' and/or 'Renting of Immovable Property Services'

Definition of NPA is neither unfair nor in violation of Articles 14 and 19 of Constitution: Delhi Hi

SARFAESI : Section 2(1)(o) is neither unreasonable nor violative of articles 14 and 19(1)(g) of Constitution

CUP method is more appropriate than TNMM if details of internal and external CUP are available

IT/ILT: Where assessee has both details for internal CUP as well as external CUP, CUP method should have been adopted as most appropriate method for comparing purchase price of raw materials of ferro-alloys acquired by assessee from AE

Yarn Producers Seek Govt Help To Avert Crisis

After several years of good business despite growing energy shortages, Punjab’s yarn producers could be headed for another crisis that may force many to close down factories to avert losses.

A confluence of domestic and regional developments is said to have obliged many spinners to stop purchasing cotton and production until the market stabilises, causing ginners’ unsold stock to pile up.

Major regional developments claimed to have made domestic yarn production ‘unviable’ include slowdown in Chinese demand for Pakistani yarn and 5pc rebate allowed by India on its yarn exports since January.

Domestic factors affecting yarn production in Punjab include rising electricity prices (currently standing at $0.18 per unit), unavailability of cheaper gas for captive power generation and strong revaluation of the rupee.

“Yarn market has fallen like ninepins in the recent weeks,” a yarn merchant at Faisalabad’s Sooter Mandi told Dawn. He said Punjab’s spinning had flourished in last few years despite energy crunch on the back of a strong Chinese demand.

“But now the Chinese demand is tapering off. On top of that India with surplus cotton of 10m bales has entered the market with a big bang. India’s yarn isn’t only replacing Pakistan in China but also flooding our market because of 10-20pc price differential in various categories,” the merchant, who spoke on condition of anonymity, claimed.

“Power loom owners prefer Indian yarn despite its poor quality because of its low price,” he argued.

“I don’t have the exact numbers because India is sending yarn mostly from the sea route. But some in the market say at least 1m bales would have made their way into Pakistan’s market by the end of the present fiscal,” he reluctantly said.

A Lahore-based spinner contended that yarn imports from India could rise to 1.5-2m bales this year. “India has given rebate to damage our textile industry, which was feeling buoyed after getting GSP+ status from the EU.”

“We could have somehow survived competition from India but the recent rupee appreciation against the dollar and increasing electricity prices have broken our back,” said the spinner, who said at least 100 spinning factories in Punjab faced closure once their current cotton stocks are exhausted over the next few days.

He said the spinners wouldn’t survive Indian competition unless the government allowed them rebate to offset the effect of the currency appreciation, imposed 5pc duty on yarn imports, brought down electricity prices and provided gas for captive power five days a week.

The ginners approached the commerce minister last week to request him to force spinners to lift their stocks. “Since it’s not possible to force the spinners, the minister has promised to look into the possibility of pulling in the TCP to procure their unsold stocks,” an apparel exporter, who claimed he was present in the meeting between the ginners and the minister, said.The value-added textile exporters are opposing restrictions on Indian yarn.

Source:- dawn.com

Indirect Tax Collection Up 5.6 Pc At Rs 4.41 Lakh Crore In Apr-Feb

Indirect tax collections grew by 5.6 per cent to Rs 4,41,826 crore in the April-February period of this financial year amid a slowing economy.

Total collection of indirect taxes - excise, customs and service tax - in February rose by 5 per cent to Rs 43,794 crore, against Rs 41,714 crore in the same month last financial year, official sources said.

Service tax collection grew 15.4 per cent to Rs 12,181 crore in the last month, against Rs 10,556 crore in the year-ago period.

Customs mop-up stood at Rs 15,109 crore, while Central Excise collection was at Rs 16,504 crore in the month.

Total collection of indirect taxes stood at Rs 4,18,286 crore during April-February 2012-13.

Excise collection dropped by 3.8 per cent to Rs 1,49,711 crore during April-February FY14, against Rs 1,55,570 crore in the same period last financial year, reflecting a slump in manufacturing activity, the sources said.

Service tax collection, which has become a new focus area for revenue department, grew by 18.2 per cent to Rs 1,34,171 crore in April-February FY14, against Rs 1,13,505 crore in the same period last financial year.Customs duty contributed Rs 1,49,211 crore during the period, sources said.The Government has set a revised indirect tax collection target of Rs 5.19 lakh crore for 2013-14.

Source:- businesstoday.intoday.in

HC denied sec. 12A registration to 'Guru Harkishan Medical Trust' as it was created contrary to law

IT : If the creation of a trust is illegal and contrary to law , no registration can be granted to it under section 12A especially when a civil court has held that establishment of trust is illegal and contrary to law. There is mandate to question or re-appreciate the civil court's decision in income-tax appeals filed before HC under section 260A of the Act. The HC while dealing with IT appeals under section 260A shall regard civil court decision as final subject to any further appellate interfe

High Court permits re-export as importer abandoned goods due to increase in duty; matter remanded

Excise & Customs : Where importer had abandoned goods owing to increase/levy of anti-dumping duty and there was no allegation of misdeclaration/undervaluation, goods were allowed to be re-exported back to foreign exporter

Payment to villagers not having any bank account during holidays shielded from sec. 40A(3) disallowa

IT: Where persons to whom cash payments exceeding rupees 20,000 were made were villagers and they did not have bank accounts and payment had to be made to them immediately to secure lands on holidays and Sundays, said payments could not be disallowed under section 40A(3)

Sugar Production In India Seen Jumping As Subsidy Boosts Exports

Sugar output in India, the world’s largest producer after Brazil, is set to climb for the first time in three years as a subsidy for raw exports and abundant dam water spur farmers to increase planting.

“Production may gain 5% to 25 million tonnes in the harvesting season starting 1 October,” said M.G. Joshi, managing director of the National Federation of Cooperative Sugar Factories Ltd, which account for 48% of the national output. The area under the crop will increase in Uttar Pradesh and Maharashtra, the biggest growers, he said.

Prospects for higher Indian output may halt a rally in raw-sugar futures in New York and extend a global glut into a fifth year. A bigger Indian harvest will boost exports of subsidized raw sweetener, bridging any potential decline in supplies from Brazil due to dry weather.

“Farmers are opting for cane even if they are getting lower prices this year as there is assured demand and return for the crop,” said Sanjeev Babar, managing director of Maharashtra State Cooperative Sugar Factories Federation, which represents 173 mills. Reservoirs are full and good rainfall last year has improved moisture in soil.

India announced a cash subsidy for exports of as much as 4 million tonnes over two years and interest-free loans to mills to allow them pay arrears to farmers. Producers including Bajaj Hindusthan Ltd and Shree Renuka Sugars Ltd are betting on exports to prevent stockpiles expanding from a five-year high.

Competitive crop

“Farmers will stick with cane as no other crop is as competitive,” according to Avdhesh Mishra, president of the Cane Committees’ Association, a grouping of farmers. “Even if payments are delayed, farmers know that mills will clear the dues,” he said by phone from Gorakhpur in Uttar Pradesh on Wednesday.

Cane production in Maharashtra will probably jump 26% to 85 million tonnes in 2014-2015, Babar said. Sugar output may climb 17% to 9 million tonnes if the monsoon is normal, he said. Farmers planted the crop on 565,000 hectares as of 19 March, compared with 482,000 hectares a year earlier, agriculture ministry data showed. The area in Uttar Pradesh was little changed at 1.22 million hectares, the data show.

“There is a turnaround in domestic sentiments after the government decided to subsidize exports of raw sugar and a downward revision in output this year,” said Sudha Acharya, a senior analyst with Kotak Commodity Services Ltd in Mumbai. “The increased demand for summer also pushed up prices. Besides, the global rally in prices due to weather woes in Brazil helped Indian sentiments.”

Futures in New York rallied 14% in February, the biggest monthly advance since June 2011. The contract for May delivery rose 2.3% to 17.36 cents on ICE Futures US on Wednesday. Futures in Mumbai climbed to Rs.3,077 per 100kg on Wednesday, the highest since August.Monsoon rainfall was the highest since 2007 last year, boosting water levels in the nation’s reservoirs, the India Meteorological Department estimates. Water levels are 24 percent above last year, according to water resources ministry data.

Source:- livemint.com

India’S Spice Exports Surge 41% During April-Dec 2013

Riding on the excellent export performance of mint, chilli and seed spices, India’s spice exports has registered a 41 per cent growth in terms of rupee value during April-December 2013.

The period witnessed a total export of 57,1680 tonnes of spices and spice products valued ?9,433 crore as against 44,9926 tonnes valued at ?6,696 crore during April-December 2012. An increase of 27 per cent has been registered, both in terms of volume and dollar value.

The steady growth of spice exports reiterates the unshaken global demand for Indian spices. The conspicuous export performance of mint, chilli, value-added products and seed spices points to a promising future for the Indian spice industry, A Jayathilak, Chairman, Spices Board India told reporters here.

He further added that spice is the only one sector which is recession proof as the eating habits of people globally has not changed during the slowdown period. Central and South America and Africa have emerged as the fastest growing markets for spices as the traditional markets in US and Europe are saturated, he said.

Jayathilak pointed out that 92 per cent of the target in terms of volume and 91 per cent in terms of value set for spice exports during FY 2013-14 has been achieved.

The seed spice basket had registered 78 per cent increase in volume and 89 per cent in value compared with April-December 2012. The total volume of 1,93,625 tonnes seed spices valued at ?1,906 crore has been exported against 1,09,067 tonnes valued at ?1,008 crore in the previous year.

Amongst the seed spices, cumin registered a prominent increase of 89 per cent in volume and 83 per cent in value with a total export volume of 96,500 tonnes valued at ?1,282 crore.

Mint and mint products, which includes mint oils, menthol and menthol crystals, topped the item-wise list, in terms of value, with an export turnover of ?2,202 crore and 17,850 tonnes in volume. Chilli netted a foreign exchange worth ?1,846 crore with a total export volume of 2,05,500 tonnes.

Value-added products such as spice oils and oleoresins fetched ?1,242 crore by exporting 8,665 tonnes. Pepper and cardamom (small) marked an increase of 41 per cent and 23 per cent respectively in value, with a corresponding export volume of 15,350 tonnes and 2,080 tonnes. The exports of pepper and cardamom (small) were valued at ?651 crore and ?164 crore respectively.

Source:- thehindubusinessline.com

Major American Port Eyes Expanding Indian Businesses

A major American port has entered into an agreement with an Indian shipping company to gain more business both in steel imports and capital investment.

Located in the US state of Louisiana, the New Orleans port has reached an agreement with India's Samsara Shipping to represent the Port in India.

"The Port of New Orleans is well positioned for growth in imported steel products, as it offers excellent connectivity via barge, rail and truck to major oil and gas projects in the United States and Canada," port president and CEO Gary LaGrange said.

"With India's fast-paced economic growth, we see opportunities to grow two-way trade between the Port and India through a variety of commodities," he added.

The New Orleans port is the 6th largest port in the US based on volume of cargo handled and 13th largest in terms of value of cargo.

He said while the marketing focus will be on steel for oil and gas projects, the port will also target apparel, furniture, machinery and retail merchandise.

"We welcome the Port of New Orleans to India and Samsara shall provide the right platform to explore the possibilities of growth for the Port in the land of opportunities," Group president and CEO of Samsara Group India Mukesh Oza said.

In its media note, the port of new Orleans said India is a significant player in the global steel market and is responsible for meeting the demand of many US customers.

In addition, India imports many products from Louisiana, including forest products, synthetic rubber and various chemical commodities, it said.

Under the deal, Samsara Shipping, which has 54 offices in 44 locations across India and keeps track of which companies are looking to expand, which ones are already exporting to the US and businesses that need to import products from outside India, will submit monthly reports to the Port of New Orleans for a one-year, USD 3,000-a-month contract.

"We wanted better coverage and more information about the Indian market," chief commercial officer at the port Robert Landry said.

Source:- business-standard.com

Ruchi Soya Expects India's Sunflower Oil Imports To Hit Record High

India's sunflower oil imports are likely to jump 54 percent to a record high in the year to October 2014 as the world's biggest edible oil importer trims palm oil purchases to make room for the soft oil, said Dinesh Shahra, managing director of Ruchi Soya Industries Ltd .

The rise in sunflower oil imports would provide support to prices that are under pressure due to a record crop in top producer Ukraine, but will cap palm oil prices that have risen in the last two months on a likely drop in production in top two producing countries.

"We are expecting palm oil imports would drop significantly to around 7.4 million tonnes from 8.17 million tonnes last year due to price spreads in favour of soft oils," Managing Director of the country's biggest edible oil buyer said.

India is likely to buy 1.45 million tonnes sunflower oil in 2013/14, higher than the previous record purchase of 1.1 million tonnes in 2011/12, Shahra said. India imports most of its sunflower oil from Ukraine and palm oil from Indonesia and Malaysia.

The country's total edible oil imports are set to rise by 4 percent in 2013/14 to 10.8 million tonnes due to higher imports of soft oils like sunflower and soyoil, he said.

The price gap between crude palm oil and crude sunflower oil narrowed to $47 per tonne in February, compared with $430 per tonne during the same period last year, according data compiled by Solvent Extractors Association.

Source:- reuters.com

Gold Shipments Into India Seen Rebounding By Billionaire Jeweller

Gold imports by India, the second- biggest consumer, will rebound in the second half as a new government may ease trade curbs while festivals and weddings spur demand, said billionaire jeweller T.S. Kalyanaraman.

“The pickup in shipments from mid-year will help overseas purchases over 2014 match the 825 tonnes imported in 2013,” Kalyanaraman, chairman of the Thrissur-India based Kalyan Jewellers Ltd, said in an interview. “The curbs on bullion will probably be removed as smaller jewellers are struggling to get raw material, spurring increased smuggling,” he said on Wednesday.

Prime Minister Manmohan Singh raised the import tax on bullion three times last year and tightened financing norms to rein in a record current-account deficit and reverse a slump in the rupee. The controls cut shipments, narrowing the deficit to the smallest in at least four years in the fourth quarter as the currency rebounded. The opposition Bharatiya Janata Party (BJP) is leading in opinion polls before voting that starts 7 April.

“Imports will be slow till June, and then the trend will be the opposite and we will land with the same figures as the previous year,” said Ramesh Kalyanaraman, executive director and the chairman’s son. “Sudden antibiotics are necessary when somebody is ill. But it should be a temporary thing, and we believe that the government will take off the curbs soon.”

A rebound in Indian demand may help sustain bullion’s gains this year amid forecasts by Goldman Sachs Group Inc. and Societe General SA that the metal may drop below $1,000 an ounce. Gold for immediate delivery traded at $1,304.73 an ounce at 5:03 am in Mumbai, set for a second weekly loss on expectations US stimulus will be cut. The loss pared this year’s rise, spurred by haven demand on tension in Ukraine, to 8.2%.

Record premiums

India was surpassed by China as the largest consumer last year as imports slumped 57% to 205 tonnes in the six months to December from a year earlier, according to the World Gold Council. Sales fell at retailers including Gitanjali Gems Ltd and Titan Co. Ltd in the quarter ended December as premiums paid by jewellers rose to a record $160 an ounce over the London cash price because of a shortage of metal in the local market.

India, which imports almost all of the gold it consumes, accounted for 25% of global demand in 2013, the London- based WGC estimates. Official imports fell 4% to 825 tons in 2013, while unofficial flows almost doubled to 200 tons, WGC data show. China consumed a record 1,065.8 tonnes last year.

“If you add the smuggled gold, demand in India will be 40 to 50% more than in China,” Kalyanaraman said. “Demand is very much there as a lot of small, organized players are selling without bills and not showing in official figures.’

Rupee’s rally

The Reserve Bank of India estimates bullion contributed to almost 80% of a record $87.8 billion deficit in the year ended 31 March. The shortfall this year will be contained below $40 billion, finance minister P. Chidambaram said on 7 March, less than the $70 billion target. That helped to spur a rally in the rupee to an eight-month high.

“The current-account deficit is under control and that might provide some kind of comfort for the new government to look at reviewing gold restrictions,” said Harish Galipelli, head of commodities and currencies at JRG Wealth Management Pvt in Hyderabad. Pressure from the industry is increasing and also the imports from other channels are rising.

Source:- livemint.com

Rupee Down 8 Paise Against Dollar In Morning Trade

The rupee dropped 8 paise to 60.22 per dollar in morning trade on Thursday due to month-end demand for the US currency from importers, triggered by its firm value overseas.

However, sustained foreign capital inflows into equity market restricted the rupee’s fall, forex dealers said.

The rupee resumed lower at 60.21 per dollar as against Wednesday’s closing level of 60.14 at the Interbank Foreign Exchange (Forex) Market.

It hovered in a range of 60.27—60.17 per dollar before quoting at 60.22 at 1000 hours.

The month-end dollar demand from importers, mainly oil refiners, affected the value of rupee against the American currency, dealers said.

In the global markets, the euro was under pressure against the US dollar on Wednesday, dragged lower as European monetary policy officials indicated willingness towards supporting more stimulus measures to aid the regional economy.

Meanwhile, the benchmark BSE Sensex rose by 83.92 points, or 0.38 per cent, to 22,179.22 at 1000 hours, after hitting an all-time high of 22,188.63 in early trade.

Source:- thehindu.com

Receipts of foreign co. from software sales and support services provided in India couldn’t be taxed

IT/ILT: In view of decision of Jurisdictional High Court in case of DIT v. Infrasoft Ltd. [2014] 220 Taxman 273/[2013] 39 taxmann.com 88 (Delhi), addition made for sale of software and provisions of maintenance/other support services to customers in India being not taxable was to be deleted

Mere observations not supported by any fact couldn't be a ground to revoke registration of trust

Registration granted under section 12A cannot be cancelled on basis of general observation not substantiated by any fact

No abuse of dominance by DMRC if it restricts parties held guilty of contravening competition law fr

Competition Law : Restraint prescribed by opposite party in tender document as regards participation of parties guilty of contravening provisions of Competition Act, would not be discriminatory or unfair

HC remanded matter as Tribunal rejected assessee's claim for deduction without examining relevant do

IT: Where Tribunal without looking into documents rejected claim under sections 10B and 80HHC, it was proper to remit matter to assessing authority to decide afresh

No interest is chargeable on additional tax payable due to retrospective levy

CST & VAT : Where liability to pay tax arises by virtue of a retrospective levy/charge of tax, interest cannot be made chargeable in case of such retrospective levy of tax

Exemption from wealth tax denied as house wasn't occupied by assessee himself for the purpose of bus

IT : To claim exemption under items (2) and (5) of section 2 (ea)(i) it must be established that house is occupied by assessee himself for purpose of any business or profession carried on by him and property itself is in nature of commercial establishment or complex and used in a business or trade carried thereon

RBI further extends validity of ECB scheme for Civil Aviation Sector till March 31, 2015

FEMA/ILT : External Commercial Borrowings (ECB) for Civil Aviation Sector

Sum paid to NR assisting in production of TV shows wasn't FTS as it didn't make available technical

IT/ILT : Payment to a non-resident for production of programmes for purpose of broadcasting and telecasting shall not be treated as 'Fees for technical service' in terms of article 12.4 of India Singapore Tax Treaty

CCI : No abuse of dominate position by a manufacture of Scotch as other parties also available in ma

Competition Law : Presence of various competing brands of Scotch and imported whiskey in relevant market for whiskey in India, rules out dominance of OP, a producer of scotch whiskey, in relevant market

Trust can't be deprived of registration on mere reasoning that it undertook services of a commercial

IT : Where assessee was engaged in educational activities, merely because it engaged Z, a commercial venture for setting up of school or to provide educational programs to school of assessee, it would not make assessee disentitled for registration

CBDT notifies revised guidelines for approval of agricultural extension project under sec. 35CCC

IT : Income-Tax (Third Amendment) Rules, 2014 - Amendment in Rule 6AAE and Substitution of Rule 6AAD

Steamer agent providing services to foreign principal amounted to export of services

Service Tax : Where a steamer agent provides services to foreign principal and gets consideration in convertible foreign exchange, such service amount to 'export of services' and cannot be charged to service tax.

Agricultural land won't lose its privileges even if sold in violation of State laws; not taxable as

IT : Merely because agricultural land was sold in favour of non-agriculturist in breach of law prevailing in State, said land would not lose its character as agricultural land and, hence, could not be treated as capital assets

Writ filed against TRO dismissed as its was passed after giving an opportunity of being heard to ass

IT: Where representation had been submitted by petitioner before TRO Prior to notice of attachment, petition filed against order of TRO was premature

Tribunal couldn’t make adverse observations on merits of case while dealing with stay application

Service Tax : Tribunal may, in exceptional cases, assess prima facie case treating same to be a hardship for maintaining appeal by dispensation of pre-deposit; however, Tribunal cannot observe adversely on merits of case

Assessee once admitted can't re-agitate disallowance of interest on funds diverted to sister concern

IT : Where assessee itself admitted that payment of interest to extent of loan utilised by sister concern had to be disallowed, it could not subsequently re-agitate said issue by contending that once funds were used by sister concern for its business purpose, there could not be any disallowance

Credit for TDS not claimed in original return but claimed in revised return filed within stipulated

IT : Where assessee had submitted revised return within prescribed period of limitation as provided under section 139(5) claiming credit/refund of TDS, which was not made in original return, assessee was entitled to credit of TDS

Order of CCE(A) is binding on Depart. even if revision proceedings are pending against it

Excise & Customs : Mere fact that order of appellate authority is not acceptable to department and is subject matter of an appeal/revision, cannot be a ground for not following it unless its operation is suspended by competent court

Sale deed to be executed in favour of applicant only when he pays sum due to liquidating Co., HC say

CL : Where certain dues were pending towards company-in-liquidation under lease-cum-sale deed of a property which was auctioned in favour of applicant, sale deed would be executed in favour of applicant only on payment of those dues

Cos with either huge turnover or extraordinary events couldn’t be taken as comparable for TP study

IT/ILT: Companies which are functionally different, have a very high turnover, have incomparable size, have exceptional circumstances and events like merger/demerger, which impact financial statements, cannot be selected as comparables

SC denies interest on interest on refund; directs HC to consider its earlier judgment in case of Guj

IT : Where High Court relying upon decision in case of Sandvik Asia Ltd. v. CIT [2006] 150 Taxman 591 (SC), directed revenue to pay interest on amount refunded as provided for under section 244(1A), order so passed was to be set aside and, matter was to be remanded back for disposal afresh keeping in view observations made in case of CIT v. Gujarat Fluoro Chemicals [2014] 42 taxmann.com 1 (SC)

SEBI releases standardized format of Auditor's Certificate under clause 24(i) of Equity Listing Agre

SEBI : Format for Auditors’ Certificate Required Under Clause 24(I) of The Equity Listing Agreement

Transporter Held For Evading Service Tax

The customs, central excise and service tax department on Tuesday arrested proprietor of a transport firm in the city for not paying Rs 2.35 crore service tax in the six months.

William Colaco, superintendent of central excise, preventive section (Surat-I) arrested Mahesh Ahir, proprietor of Khodiyar Earth Movers Ltd and Ambe Transport for the offence punishable under section 89(1)(a) and (d) of the Finance Act, 1994. Ahir has been sent in to judicial custody of the department. Official sources said that this is the fourth arrest by the service tax department in the last one month. Earlier, four persons running transport and labour contract firms in Hazira were arrested for evading huge amount of service tax.

Source:- timesofindia.indiatimes.com

Coking Coal Supply Talks Said At Six-Year Low Prices In India

Tata Steel Ltd, Steel Authority of India Ltd (SAIL) and JSW Steel Ltd are in separate talks with suppliers to sign coking coal contracts at the lowest price in six years, people with knowledge of the information said.

India’s top three steel makers are negotiating for deliveries at $125 a tonne for the month and quarter starting April, said three people, who asked not to be identified pending a settlement. The price is 13% less than the $143 for the three months ending March and the lowest since 2008, when annual contracts were the norm.

Increasing supplies from Australia and North America and a decline in output from pig-iron mills in China, Japan and South Korea have pulled down spot prices of coking coal and are set to impair benchmark contracts rates. A respite from floods, which wrecked Australia’s Queensland in 2010 and 2011 and sent prices soaring, has boosted shipments from the world’s biggest coking coal exporting region to a record.

“Low-cost producers, particularly BHP Billiton Ltd, have been pushing volume, leading to a surplus in the coking coal market,” said Daniel Morgan, an analyst for UBS AG in Sydney. “A seasonal pick-up in steel production rates in North Asia offers some support for prices but the market remains very well supplied from all key regions.”Metallurgical coal production at BHP increased 22% to a record 22 million tonnes in the six months ended 31 December, according to an 18 February statement.

“Discussions are underway,” Tata Steel spokesman Kulvin Suri said in an email, without giving price details. Arti Luniya, executive director at SAIL’s coal import group, declined to comment, while JSW Steel spokesman Manish Mallick didn’t respond to an email seeking comment.

Lower costs

Paying less for coal, a key raw material, would help India’s steel makers reduce their input cost and boost earnings at a time when demand from auto makers to builders has flagged. The three companies consume almost half of India’s 40 million tonnes of metallurgical coal imports. Tata Steel’s India business and SAIL are set to report their smallest profit margins in more than a decade for the year ending March, while JSW’s earnings have lagged estimates for five consecutive quarters.

“We’re both a seller and a buyer of coking coal and we are looking at a range of $125 to $135 a tonne for the quarter,” said K. Rajagopal, group chief financial officer at Jindal Steel and Power Ltd. The New Delhi-based company bought a controlling stake in Corrimal, New South Wales-based Wollongong Coal Ltd, which operates two coking coal mines in Australia and produces about 1.5 million tonnes a year.

Supply glut

Spot coking coal prices in China have declined 20% to $107 a tonne since 31 December, according to data from the Freight Investor Services index on Bloomberg. A supply glut is estimated by Morgan Stanley to be about the equivalent of 3% of annual seaborne trade. A reduction of at least 15 million tonnes is needed to restore tightness, Sanford C. Bernstein and Co. said in a report last month.

Tata Steel in India buys about half of its coking coal requirement from external suppliers. SAIL imports more than 70%, while JSW buys almost all of its needs.

“A fall in coking coal prices will be a big boost for local steel makers because they’ve been struggling to sell,” said Giriraj Daga, a Mumbai-based analyst at Nirmal Bang Equities Pvt. Ltd, who has a sell rating for all the three producers. “The demand cycle may not pick up before the end of the general elections.

Source:- livemint.com

U.S. Mulls Speedier Gas Exports To Help Ukraine, Europe

The U.S. shale gas boom should be used to counteract Russian influence in Europe and on Ukraine, a key senator said on Tuesday, as lawmakers weighed changes to export policy to take into account a shifting geopolitical landscape.

European worries about the security of energy supplies have skyrocketed since Russian forces seized control of the Crimean peninsula from Ukraine this month. Moscow has in years past cut gas supplies during regional disputes.

The Ukrainian crisis has led to intense scrutiny of export rules for U.S. liquefied natural gas. The regulations require the Department of Energy to grant permission for natural gas exports to all but a handful of countries, such as Canada, which have free trade agreements with the United States.

Hearings before the Senate and House energy committees on Tuesday focused on whether speeding up the Obama administration's review of two dozen pending export applications could help U.S. allies reduce their dependence on Russia for natural gas.

The export projects, once approved, would take several years to construct and actually ship gas.

"The last thing (Russian President Vladimir) Putin and his cronies want is competition from the United States of America in the energy race," Senate Energy Committee Chairwoman Mary Landrieu said at a hearing on Tuesday.

The hearing was the Louisiana Democrat's first as head of the Senate panel, after taking over in February from Oregon's Ron Wyden.

The session came a day after the Energy Department's sixth approval of LNG exports from a U.S. plant in the past 10 months.

The DOE has kept up a steady pace of approvals since May, and it was unclear whether recent rhetoric about the Ukrainian situation was affecting its timetable.

Opponents of unlimited U.S. gas exports have argued that shipping too much could cause prices to rise in the United States, hampering economic growth.

AUTOMATIC APPROVALS

The House Energy Committee considered a measure Tuesday, known as H.R. 6, that would allow U.S. natural gas exports to be made without government approval to any of the more than 159 countries that belong to the World Trade Organization.

While the administration has not officially taken a position on the measure, Deputy Assistant Secretary for Oil and Natural Gas Paula Gant told lawmakers the bill would essentially eliminate the need for Energy Department review.

She stressed that the department is considering applications as quickly as possible, even though export boosters are clamoring for more action.

"DOE understands the significance of this issue, as well as the importance of getting these decisions right," Gant said.

The top Democrat on the House panel, California's Henry Waxman, said he had concerns about the bill.

"Rubber-stamping unlimited LNG exports without any determination that they are in the public interest could have serious unintended consequences," Waxman said.

Among the opponents of unfettered U.S. exports, a coalition of industrial companies, led by Dow Chemical Co, has disputed claims that speeding up export approvals would help Ukraine or U.S. allies. They argue that substantial U.S. gas exports remain years away and that much of the exportable gas has been committed to countries like India.

Supporters of the bill argued that even with Energy Department approval, not all of the projects would be built. Companies would still have to secure investors for the multi-million-dollar plants, as well as permits from the Federal Energy Regulatory Commission.

At the Senate hearing, Lithuania's energy minister, Jaroslav Neverovic, urged lawmakers to allow allies such as his Baltic country to bypass the lengthy federal review process by designating shipments to those countries as being in the national interest.

"It would strengthen buyers so that we don't have to attach ourselves to these long-term (Russian) contracts because there will be gas in the market," Neverovic said.

Russia is Lithuania's sole supplier of natural gas. The country pays one of the highest prices for gas in Europe, due to disagreements with Gazprom, Russia's state-owned gas company.

Source:- worldbulletin.net

Cashew Kernel Exports Jump 17% In 11 Months Of Fy14

Cashing in on the depreciation in rupee value against the dollar, India's cashew kernel exports have recorded 17% rise in volume and 27% in value terms during the first 11 months of the current fiscal. For the period between April 2013 and February 2014, cashew kernel exports touched 109,958 metric tons compared to 93,841 metric tons in the same period last year.

The value of exports in rupee terms has gone up 27% to Rs 4,624.35 crore as against Rs 3,649.50 crore in the corresponding period last year. In dollar terms, the export earnings increased 14% to $765 million compared to $671 million in the year ago period, according to data available with Cashew Export Promotion Council of India (CEPCI).

The unit value realisation was moderately higher by 8.22% to Rs 420.56 per kg compared to Rs 388.90 per kg in the year ago period.

However, in the month of February, exports were lower at 7,009 metric tons as against 7,972 metric tons in the same month last year, showing a decline of 12%. The value of exports in dollar terms also went down 8.78% to $50.67 million against $55.55 million in the year ago period. In rupee terms, the export earnings in February 2014 were marginally higher at Rs 315 crore from Rs 299 crore last year.

With just one week remaining for the financial year to end, the cashew kernel exports are likely to register an all time high in value terms this year.

In value terms, the exporters have already surpassed last year's earnings of Rs 4,046 crore, in the first 11 months of the current fiscal. In volume terms, the exports are almost near the last year's level of 110,306 tonne.

During the current year, exports of roasted and salted kernels went up 6.37% to 1,718 metric tons compared to 1,615 metric tons last year.

For the first 11 months ended February 2014, the cashew processing units imported 732,478 metric tons of raw cashew nuts, a decline of 14% over the same period last year. Between April 2012 and February 2013, India had exported 852,183 metric tons of raw cashew nuts. In value terms, importers paid out Rs 4,246.37 crore, about 16.5% lower than last year. In 2012-13, the cost of imported nuts amounted to Rs 5,084.98 crore.

The average unit value of imported nuts was Rs 57.97 per kg, about 2.85% lower than the previous year. India requires an estimated 1.5 million metric tons of raw nuts. The domestic production is estimated at 700,000 metric tons.

Source:- business-standard.com

Sugar Exports Hit As Local Prices, Rupee Rally: Dealers

Sugar merchants are struggling to sign new export deals, as a surge in domestic prices to a seven-month peak and a firm rupee prompt buyers to wait for cheaper supplies from Thailand, dealers said on Wednesday.

Slower exports by the No.2 producer could support global sugar prices , which have slipped in the past two weeks partly on worries a record Thai output - estimated at 11 million tonnes - will swell an amply supplied world market.

"It is nearly impossible to strike new deals for white sugar. Indian sugar is too expensive," said Kamal Jain, managing director of Pune-based Kamal Jain Trading Services.

"Even in raw sugar, exports have slowed. Only Iran is buying in rupees. Others are not comfortable with current prices."

India is offering white sugar at around $492 per tonne free on board, versus offers from Thailand at $470 for comparatively better grade white sugar, dealers said. Thailand is the world's No.2 sugar exporter after Brazil.

Indian raws are being quoted at $438 per tonne, compared to Thai supplies at $381.

"Two months ago, mills in top producing state Maharashtra were willing to sell sugar below domestic prices. Since the announcement of an exports subsidy for raw sugar, they raised quotes," a Mumbai-based dealer with a global brokerage said.

Indian mills traditionally produce white sugar, but a global glut has made exports difficult. In an attempt to cut down stockpiles, the south Asian country has said it will provide an incentive of 3,300 rupees ($54.82) per tonne for the production of raw sugar for exports.

Rising seasonal demand from ice-cream and beverage makers ahead of the scorching summer months have also contributed to the jump in domestic sugar prices, which hit 3,077 rupees per 100 kg on Wednesday, the highest since August 2013.

"We are entering peak demand season. Prices can move higher from the current level. They are unlikely to fall," said Ashok Jain, president of the Bombay Sugar Merchants Association.

Also, a firmer rupee is prompting merchants to quote higher export prices, he added. The rupee rose to an 8-month top on Wednesday amid hopes of continued foreign fund inflows.

MARKET EYES WEATHER

Traders are now eyeing the weather forecast for more pricing cues. If El Nino returns this summer, it could curb sugar output and further boost prices. In 2009/10, a drought triggered by the weather pattern had forced India to import a record 4 million tonnes of the sweetener.

"There is uncertainty over next year's production. If there is a drought, then local prices will rise sharply. So there is no point in exporting sugar at lower prices now," said a senior official with a Maharashtra based sugar factory.

India exported 1.12 million tonnes in the first five months of the 2013/14 season that started on Oct. 1, including 520,000 tonnes of white and 600,000 tonnes raw sugar, the Indian Sugar Mills Association estimates.

The country had shipped out 348,000 tonnes in 2012/13.

"It would be very difficult for India to push exports in coming months. Some exporters are struggling to execute already signed deals," said a New Delhi-based dealer with an Indian trading firm that is exporting sugar to Iran.

Source:- economictimes.indiatimes.com

Telecom equipments are liable to entry tax as they are covered by the term ‘machinery’

CST & VAT : Goods purchased for purpose of transmission of voice from one place to another viz. telecommunication are 'electronic/telecom equipments' and are covered within expression 'machinery and spare parts thereof' and liable to entry tax

Sum incurred on transmission lines held allowable as it neither provided any title or enduring benef

IT : Where assessee incurred 35 per cent of entertainment expenditure on food and beverage for employees while they were entertaining assessee's customers, same had to be excluded from total expenditure and limit prescribed by section 37(2) had to be applied on balance amount

Rbi's Easing Of Norms May Lead To Twofold Increase In India's Gold Imports

The gold industry in India projects two consequences to Reserve Bank of India’s (RBI) decision to allow more private banks to import gold into the country. Firstly, the gold imports which has remained subdued since August last year following the tight curbs on imports of the yellow metal may increase twofold. Secondly, more banks importing gold can bring down the domestic gold prices.

Earlier, the RBI had announced its decision to allow five domestic private sector banks- HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank and Yes Bank to import gold. Before, only six nominated public sector banks and three state-run trading agencies enjoyed rights to import gold. The industry forecasts monthly gold shipments to almost double to 40 tons when compared with the imports of 20 tons during the month of February.

According to KC Chakrabarty, Former RBI Deputy Governer, more banks importing gold can bring down the prices. The presence of more players will result in healthy competition to import gold at lower prices. Gold imports at cheaper rates will in turn help to improve the Current Account Deficit (CAD) situation in the country.

The RBI’s move is assumed as the first step towards easing the tough regulatory restrictions on gold imports. Now that more banks are allowed to import gold, the gold supply crunch is likely to alleviate to a certain extent. The industry also expects that the RBI decision may bring down the high gold premiums in the country.

Source:- metal.com

Rupee Up 23 Paise Against Dollar

The rupee continued its rally against the American currency in early trade for the fourth trading day, gaining another 23 paise to 60.25 per dollar on persistent selling of the US unit by banks and exporters on the back of sustained foreign capital inflows.

Weakness of dollar in the overseas market also boosted the rupee value, a forex dealer said.The Indian currency resumed higher at 60.28 per dollar as against the last closing level of 60.48 at the Interbank Foreign Exchange (Forex) Market and firmed up further to quote at 60.25 per dollar at 1000hrs (IST).

Sustained selling of dollars by banks and exporters in view of good foreign capital inflows into equity market was the main factor behind rise in rupee value.In New York market, the dollar cut its rise after a round of mixed US data on Tuesday, but held narrowly higher against key rivals.

Source:- thehindu.com

MCA further notifies major sections of Companies Act, 2013; effective from April 1, 2014

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Section 1 of The Companies Act, 2013 - Act - Enforcement of - Notified Date from Which Specified Provisions of Said Act Shall Come Into Force

Product acquired from NR AE for resale in India to be benchmark by Indian rates and not rates in sou

IT/ILT: For benchmarking purposes product purchased by assessee from its American AE to be sold in India should be benchmarked by taking India specific prices and not prices in market of source country

Concealment penalty deleted as interest on FD held by firm was unknowingly credited in name of partn

IT: Where assessee-firm was advised to directly credit interest from fixed deposits in name of partners, which was later on found to be legally impermissible, penalty was not to be levied

Plea for rectification in register of member can only be made by depositories, Cos., participants an

CL: None other than five entities mentioned under section 111A(3), is entitled to file petition for rectification of register of members in respect of shares

Block assessment can't be initiated without first issuing search warrant in name of searched person

IT: When any person other than one named in warrant is searched and incriminating material is seized which belongs to that person and not person in respect of whom warrant is issued, if that person has to be assessed for block period, there should be a search warrant issued in his name as well because search and seizure is a condition precedent for passing a block assessment order

New Foreign Portfolio Investment Scheme notified to include FIIs, QFIs under reg. foreign portfolio

FEMA/ILT : Foreign Portfolio Investor - Investment under Portfolio Investment Scheme, Government and Corporate Debt

Resolution passed under sec. 293 of 1956 Act prior to Sep. 12, 2013 deemed as compliance of sec. 180

COMPANIES ACT, 2013/COMPANIES ACT, 1956 : Section 180 of The Companies Act, 2013 - Powers of Board - Restrictions on - Clarification with Regard to Resolution Passed U/S 293 of Companies Act, 1956 Prior to 12-9-2013 With Reference to Borrowings to be Regarded as Sufficient Compliance of Requirements of Section 180 for A Specified Period

ITAT explains interplay between Article 7 and Article 13 of India-UK DTAA

IT : Where special provision 'sends subject back to general provision', it is the general provision that applies

Income arising to banks from leasing out of defaulter's assets seized under SAFAESI Act were liable

Service Tax : Where a bank takes possession of factories/plants of its defaulting borrowers under provisions of SARFAESI Act and leases them out to recover its loan, lease rentals received by such bank are liable to service tax

Assessment already completed on basis of seized docs can't be reopened on mere change of opinion

IT : Where Assessing Officer on basis of documents impounded during survey, passed an assessment order under section 143(3), he could not initiate reassessment proceedings subsequently by merely taking a view that in terms of entries recorded on a loose paper impounded during survey, certain income chargeable to tax had escaped assessment

SAT upheld penalty imposed by SEBI on appellant as he failed to make disclosure required by Takeover

SEBI: For purpose of Takeover Regulations what is relevant is acquisition of shares and once acquisition of shares exceeds limits prescribed therein, provisions of Takeover Regulations are triggered

Rate of Bank guarantee to be adjusted before using it as comparable against corporate guarantee

IT/ILT : In course of transfer pricing proceedings, TPO cannot determine arm's length price of corporate guarantee by mechanically picking up bank guarantee rates as external /internal CUPs, as the case may be; however, said rates may turn out to be appropriate CUPs if they are properly benchmarked after making due adjustments in accordance with provisions of Rule 10B of 1962 Rules

Penalty couldn't be levied for a bonafide mistake if dept. failed to prove any concealment

IT : Where there was prime facie possibility of wrong entry being recorded in books, department having failed to prove concealment without any doubt, could not levy any penalty

RBI allows registered foreign portfolio investors to acquire Indian securities on repatriation basis

FEMA/ILT/INDIAN ACTS & RULES : FEM (Transfer or Issue of Security by A Person Resident Outside India) (Second Amendment) Regulations, 2014 - Amendment in Regulations 2, 5, 14, Schedule 1, Schedule 5, Schedule 7 and Insertion of Schedule 2A

Imported goods eligible for duty drawback under sec. 74 of Custom Act even if they were repacked and

Excise & Customs : Where imported goods have been repacked and re-exported, then, such repacking cannot amount to any 'process' or 'operation' within meaning of section 74; accordingly, drawback claim would be available only under section 74

Sum incurred on upgradation and troubleshooting of bug in existing software to improve product is re

IT: Expenditure incurred in ordinary course of business on upgradation, improvement, removal of glitches of existing or already developed software to improve its product is to be treated as revenue expenditure

Assessee allowed to determine peak credit after arranging it chronologically to calculate his undisc

IT : Where credits appear in accounts and genuineness of all persons is disbelieved and all credits are held to be assessee's own money, assessee will be entitled to set off and peak credit is to be determined after arranging all credits in chronological order

Indian Banks to pay ST under reverse charge for services received from foreign Banks for import/expo

GST : Section 68 of the Finance Act, 1994 - Payment of Service Tax -Service Tax Payable on Specified Services - Service Tax on Bank Charges Paid by Foreign Banks

No sec. 68 addition when assessee furnishes confirmation of creditors along with docs to prove their

IT : Where name, address, PAN, copy of IT Returns, balance sheet, profit and loss account of all creditors/lenders as well as their confirmation had been furnished, Assessing Officer could not make addition on account of unsecured loan and interest thereon

Entry tax is leviable on purchase price of goods irrespective of selling price of goods in local are

CST & VAT : 'Sale price' of goods by buyer, inside local area, cannot be identified as 'value of goods' for levy of entry tax

Secret commission paid by publishing house to various school to canvass its books is prohibited and

IT: Where Tribunal allowed assessee's claim of payment of secret commission to various schools for promotion of sales of books, in view of fact that Explanation to section 37 introduced by Finance (No. 2) Act, 1998 with retrospective effect from 1-4-1962, prohibited said payments, impugned order was to be set aside and matter was to be remanded back for disposal afresh

ITAT setting aside addition made by AO on estimation basis not to be interfered with, says HC

IT: Since question pertaining to net profit rate on estimation basis is a question of fact, appeal was dismissed at admission stage

Department could challenge classification of services made under self assessment regime

Service Tax : Where assessee has paid service tax on any service under a particular classification under self-assessment regime, said classification cannot be said to have been accepted by department as there is no provision for any such acceptance; therefore, department may challenge such classification as per law

Missing entry of debit notes in ledger rejects plea of damaged goods taken against winding-up petiti

CL: Where no entry for debit note on account of defective material appeared in ledger accounts of respondent, defence that goods supplied by petitioner were defective was sham and was liable at be rejected at threshold

'Infosys' not comparable to small captive service providers; assessee can oppose a comparable chosen

IT/ILT: Infosys Technologies Ltd. being a big company in all respects including range of turnover is not a comparable to small companies which are captive service providers being considerably low turnover

I-T offices to remain open in last three days of Financial Year to facilitate filing of return

IT/ILT : Section 119 of the Income-Tax Act, 1961 - Income-Tax Authorities - Instructions to Subordinate Authorities – Income-Tax Offices Throughout India to Remain Open and Receipts Counters Also to Work During Normal Office Hours on 29, 30 and 31st March, 2014

‘Andhra Pradesh State AIDS Control Society’ notified for sec. 10(46) exemptions

IT : Section 10(46) of the Income-Tax Act, 1961 - Exemptions - Statutory Body/Authority/Board/Commission - Notified Body or Authority - Andhra Pradesh State Aids Control Society

Meaning of term ‘Training Institute’ for purpose of Skill Development Project under Sec. 35CCD redef

IT/Indian Acts & Rules : Income-Tax (Second Amendment) Rules, 2014 - Amendment in Rule 6AAH

‘Ace Derivatives and Commodity Exchange Ltd.’ notified for trading of commodity derivative under sec

IT : Section 43(5), Clause (iii) of Explanation 2 to Clause (E) of Proviso, of the Income-Tax Act, 1961 - Speculative Transaction - Recognized Stock Exchange - Notified Recognized Stock Exchange

For sec. 54EC exemption six months means ‘Six British calendar months’; ITAT Special Bench’s interpr

IT : Time limit of 'six months' in sec 54EC means 'six British Calendar months' in view of the General Clauses Act, 1897

HC quashed ITAT's order which was based on its earlier order without considering merits of case

IT : Where Tribunal allowed assessee's appeal by merely placing reliance upon its earlier order passed in another case and without considering appeal on merits, order so passed by Tribunal was not sustainable in law

Goods deemed to be sold in execution of work contract were not liable to service tax

Service Tax : Goods which were deemed to be sold in execution of works contract shall not enter into purview of levy of Service Tax

Indian Steel Prices To Remain Stable In April

Falling international steel prices, drop in domestic iron ore prices and recent appreciation in rupee that made imports attractive may force steelmakers to either cut steel prices or keep prices unchanged in April.

Steel manufacturers and distributors confirmed that after three consecutive price hikes since January, steel prices are unlikely to rise in April.

A spokesperson from Essar Steel said that "The input cost continues to remain firm. The price levels in India are in line with global prices and in some cases lower than import parity prices. The demand is stable. Hence the prices will continue to remain at present levels."

Mr RK Goyal MD of Kalyani Steels, too agreed that probability of steel prices remaining at current levels in April are high as demand continues to remain subdued. Another steel major having strong presence in southern and western India said that previous price increases were absorbed by the market but now the prices would remain stable.

An analyst said “Steel demand was likely to remain subdued going forward. Even after election if stable government forms at center, it will not immediately translate in to investment. Real effect of new government will start reflecting only after September, thus no major investment is seen in next six months at least.”Steel prices across the globe, barring the US, have remained under pressure because of excess supply.

Source:- steelguru.com

No Leather Shoes Please, Cbse Requests Schools

The environmentalist streak in CBSE seems to have gone a notch higher with the board urging all affiliated schools to discourage the use of leather shoes. The board also feels that leather accessories must be avoided because of the adverse environmental impact it has.

The alternative which the central board suggests are canvas shoes which are commonly used for sporting activities. This is, however, a mere request and not binding on schools.

"There is no dispute that leather comes at a huge environmental and animal welfare cost. The production of leather from animals involves highly toxic chemicals and usage of these can be reduced sizably if leather shoes are not made mandatory in schools," CBSE public relation officer Rama Sharma told TOI.

In a letter the board has urged schools to encourage use of "eco-friendly option of canvas shoes, which are more resistant to wear and tear, more comfortable and relatively inexpensive. Canvas shoes are anyway prescribed for sports purposes and can easily be used for everyday wear eliminating the need for multiple pairs. Considering the concern and to reduce environmental impact caused by school uniforms, this may be considered as a tangible step forward".

While CBSE came up with the idea recently, many schools in Nagpur have been practicing it for quite some time. Centre Point schools had banned leather shoes about four years ago to be in sync with environment friendly practice. Centre Point Group of Schools executive director Mukta Chatterjee said, "Earlier we left the option of type of footwear to parents. Our reasoning for banning leather shoes is that the entire process of tanning and making the final product is very harmful to the environment. Now kids wear the black trainers, which is basically half canvas, and that's the norm for everyone here."

Jain International School principal Anmol Badjatia said, "Our school has been implementing a no-leather shoe policy since day one. Our philosophy is to promote eco-friendly practices in students and protect animals however possible. We use a particular brand of sport shoes and it is extremely comfortable for all."

Even Bhavans group in the city has no-leather shoe policy for the last couple of years but their reason for adopting the rule could not be known, as senior principal A Shastri could not be reached for comment.

Delhi Public School principal Akhilesh Chaturvedi said, "I believe that children must wear only those type of footwear in which they will be comfortable with regards to the geographical location and activity. The comfort of kids comes first before any other criterion."

Source:- timesofindia.indiatimes.com

India’S Unprecedented Appetite For Gold

As the decade-long surge in gold prices moderates, trends ahead may help explain India’s unprecedented appetite for the metal in recent years. To what extent was this driven by the global boom? And how much did domestic factors like inflation contribute? Disentangling the respective roles could offer useful lessons for future economic policies.

The issue is of interest from an Indian perspective, for past inflation episodes haven’t been accompanied by such a large-scale shift towards gold as has happened since 2008. Gold imports grew 42% annually in 2008-12, shrinking 2% in 2012-13 as import duties were raised to narrow the current account deficit. In the same period, global gold prices increased an average 27% annually, in large part fueled by the creation of global liquidity by advanced countries’ central banks. Gold is priced in dollars, so when the dollar’s value gets debased, investors reposition their holdings in favour of gold establishing a positive relationship between quantitative easing and gold prices.

The Indian lust for gold is commonly ascribed to high inflation. Consumer price inflation averaged 10% each year from 2009 to 2011, while real interest rates were negative over 2009-10 from loose monetary policy. Savers shifted to physical assets like gold from financial assets like bank deposits; deposit growth nearly halved from 20.4% in 2008-09 to 11.4% by 2010-11, recovering thereafter as monetary policy settings were adjusted.

Inflation alone however may not account for this extraordinary gold appetite. Given the coincidence with the global boom, portfolio factors possibly played a role. Gold outperformed all other assets in this period, offering savers annual returns in excess of 25% in 2008-11. Bank deposits compare poorly with that, even if real rates are positive as happened in 2012 -- gold demand remained undampened, inviting fiscal restraints. Income growth was strong too—in the four years to 2011-12, Gross Domestic Product growth averaged 7.7% annually, while per capita incomes grew an average 6% each year. Indian gold demand is highly income elastic.

With the US monetary stimulus in reversal mode, its economy recovering firmly and interest rate increases on the horizon, the settings are now reversing for gold. Global gold prices fell 28% in 2013. A changing global macroeconomic framework may thus reflect in India’s gold demand. Moderation to long-term trend levels will help highlight the role of future macroeconomic policies. For example, global liquidity that enters in the form of capital flow surges when combined with exchange rate appreciation, rising incomes and import demand, consumption and asset price boom, as was the case in 2009 and 2010, along with high inflation. Monetary policy alone then cannot curb gold demand; fiscal measures would be more effective instead.

Source:- livemint.com

Wheat Stands Steady Amid Surging Market Crisis

Indian wheat prices remain firm in the global market with no signs of an ease off in the Ukraine-Russia crisis. Delayed harvesting of wheat in Rajasthan and parts of Gujarat owing to cool weather is also attributed to the rise in prices to $285-290 a tonne for May delivery from a low of $265 a tonne in January.

However, in the volatile market industry sources say that private exporters are not keen on further forward contracts and adopt a wait and watch policy. Business conglomerates from ITC, Cargill, Noble, Louis Dreyfus, Glencore, Bagadiya Brothers and Emmsons have been in the market since January.

"If the crisis in Ukraine-Russia continues we may see bulk buyers flocking to India and domestic prices may go up due to sudden demand pull," said Tejinder Narang a grain analyst. Indian wheat prices are currently the cheapest compared to Australian, Russian and French.

Exporters state that wheat was sold on multi-origin basis and specification and Indian wheat could soon see arise in demand. "India wheat will be blended with high priced wheat from European Union for Middle East market. The contract size will fall to 20,000 tonne from 50,000-60,000 tonne as being done earlier due to uncertain global and domestic market," said a global player in wheat trade.

According to some exporters the buyers were ready to buy wheat at even $290 a tonne, but sellers were reluctant in hopes of prices to firm further amid reports of Rajasthan government likely to give bonus to wheat farmers this season. "I have been able to only buy 500 tonne wheat from around Rajkot in Gujarat as supplies have been low," said another global grains and oil seeds company official.

Since January this year, exporters have been doing forward contracts for March-April-May delivery ahead of the wheat crop arrival from Russia, Ukraine, America and Australia. "The market is taking a breather after 3-4 week of rally. We feel that it is a good time for market to sell and not hold as the rally might not stay for long," said BK Anand, head, grain supply chain, Cargill India.

Source:- economictimes.indiatimes.com

Sums paid to NRs for services rendered outside India won't be liable for TDS in absence of their PE

IT/ILT : Where foreign branches of assessee made payment to foreign suppliers for services rendered outside India and said suppliers did not have permanent establishment in India, assessee was not required to deduct TDS on such payments

Sum received from NRE a/c of brother held as unexplained as recipient couldn't explain source of dep

IT: Where assessee received certain amount from NRE account of his brother but he could not give any further details of either source or creditworthiness thereof, authorities below were justified in bringing said amount to tax as unexplained cash credits

Fieo Expects Rbi To Cut Interest Rate To Help Msme Exports

The Reserve Bank of India (RBI) may consider LIBOR plus lending to the micro small and medium enterprise (MSME) export sector besides a rate cut for rupee lending given some moderation in CPI, said exports body Federation of Indian Export Organistions (FIEO) in a statement Monday.

"RBI could consider a rate cut in the policy given that there is a upsurge in credit and a demand by banks to cut CRR to provide credit to industry," said M Rafeeque Ahmed, President, FIEO while commenting on the forthcoming announcement of the monetary policy review on 1st April prior to the annual policy. He stated that as the per the RBI update of 21st march 2014, WPI had settled at 4.7 percent and CPI stood at 8.1 percent, with credit to the commercial sector moderating at 14 percent.

FIEO Chief stated that net foreign exchange assets of banks have grown to 17.3 percent and given that exports have shown a decline of 3.7 percent in USD terms over a year, and rupee is again in a volatile mode, banks could consider providing export credit in foreign currency at LIBOR + rates as against a deregulated regime of export credit in foreign currency announced a couple of years back, added Ahmed. This would help the MSME export sector which is unable to borrow through ECB route easily.

FIEO Chief stated that providing foreign currency loans at competitive rates in a scenario of appreciating rupee/ narrowing CAD due to clamp on gold/ and India's exclusion in respect of many important products from the European Union (EU)'s GSP benefits would imply that mineral products, textiles, motor vehicles, bicycles, chemicals etc, which originate from India, will no longer get preferential treatment attracting higher duties in EU.

This would further impact exports even though markets in advanced countries are showing buoyancy in terms of consumption patterns/volume of world trade increasing by 0.6 percent in January 2014 said Ahmed.

Source:- smetimes.in

Export Subsidy For Sugar Questioned At Wto Meet

The government's pre-election bonanza for the sugar industry has been questioned at the World Trade Organization, making it the second farm subsidy to global face scrutiny in recent months.

Australia, Colombia, Brazil and the European Union, along with others, have raised several questions including the compatibility of the latest set of sops with WTO rules with some urging India to immediately remove what they described as export subsidies that will potentially impact world trade. The issue was raised at a meeting of WTO's agriculture committee on March 21, said a source familiar with the developments.

Paraguay, Thailand, El Salvador, Canada, the US, Pakistan and New Zealand were the other countries that protested India's export subsidy for sugar meant to clear a glut.

At the meeting, WTO members once again questioned India about details of its support programmes for rice and wheat and its stockholding programme for food security. In a questionnaire circulated before the meeting, the US went to the extent of suggesting that the government's subsidy programme was highly inefficient.

Some members also asked India to circulate more up-to-date information on its domestic support. Government officials said the notifications were being prepared and there was no question of breaching the prescribed limits.

The government's trade policies have come under intense scrutiny in recent months.

But the immediate focus was on sugar export subsidies, which hogged limelight at the meeting. Sources said Australia, Colombia, Brazil and the EU went to the extent of seeking the legal basis for the export subsidies announced last month. They also said India has agreed not to subsidize exports.

Indian officials defended the move and said the policy was designed to encourage diversification from white sugar to raw sugar and that no intervention payments had been made yet. The total is not expected to exceed the equivalent of $80 million, they said.

Australia said the Rs 3,300 per tonne incentive payment was the equivalent of 14-16% of the world price. Since India is the third largest exporter of sugar, this threatens to seriously distort trade, Australia said and pointed out that the amount could potentially finance its own exports half way across the Pacific.

Source:- timesofindia.indiatimes.com

Bajaj Auto To Export Made-In-India Ktm Duke 200 And 390 To China

Bajaj Auto is facing slowing down sales in India and is therefore looking at the export market for solace. Like India, China is a huge bike market but Bajaj doesn’t have a presence in that country. Bajaj is planning to make its Chinese debut with KTM Duke motorcycles. From this week, the KTM Duke 390 will be exported to the Chinese market.

Bajaj will follow a top down approach for the Chinese market by first launching the Duke 390 and then following it up with the Duke 200. Both the Duke 200 and 390 are built at Bajaj Auto’s factory in Chakan, an industrial township near Pune. Bajaj Auto will initially export 9000 bikes a month to China.

In a year’s time, Bajaj plans to increase this number by a whopping 10 fold. For Bajaj, which is presently exporting 1 lakh bikes a month to countries around the world, China presents an opportunity to double its exports as the company seeks to export 90,000 KTM bikes each month to China next year.

Bajaj Auto holds a near 50% stake in KTM. While KTM handles the research, design and development of world class sportsbikes, Bajaj Auto brings its manufacturing expertise to the equation. The Pune headquartered Indian two wheeler giant produces bikes for a fraction of a cost when compared to what KTM would need to spend to build bikes in Europe.

These cost savings allows Bajaj to sell KTM bikes at a very competitive price in the former’s home market of India. By using Bajaj Auto’s factory as a low cost manufacturing base, Austrian bike maker KTM is able to earn big profits when it sells the Duke 125, 200 and 390 models in European and other developed countries.

Soon, KTM and Bajaj will launch fully faired bikes based on the Duke platform. The KTM RC 125, RC 200 and the RC 390 will be exported to markets around the world and China could also be a major export destination for these bikes. In India, Bajaj and KTM will sell the RC 200 and RC 390 fully faired sportsbikes.

Source:- indiancarsbikes.in

Collusion among cylinder manufactures held anti-competitive as identical bids were quoted in a tende

Competition Law : Where association of cylinder manufactures quoted identical bid by holding meetings just prior to making bid offer, there was concerted agreement bidders in contravention of section 3

Sec. 80-IA relief can't be curtailed by brought forward losses not pertaining to initial year of rel

IT: Loss prior to initial assessment year of claiming section 80-IA deduction which has already been set-off cannot be brought forward and adjusted into period of ten years from initial assessment year

Rupee Further Strengthens By 27 Paise Against Dollar

The rupee firmed up further by 27 paise to 60.50 against the American currency in the morning trade on Tuesday. This was mainly because of sustained selling of dollars by banks and exporters in view of persistent capital inflows from foreign funds despite higher dollar in overseas market.

The rupee resumed higher at 60.60 per dollar as against Monday’s closing level of 60.77 at the Interbank Foreign Exchange (Forex) Market and advanced further to quote at 60.50 per dollar at 1000 hours.

It moved in a range of 60.50 and 60.60 per dollar during the morning deals.

Banks and exporters continued to sell dollars in view of sustained capital inflows from foreign funds into equity market.

However, the benchmark BSE Sensex eased by 16.45 points, or 0.07 per cent, to 22,039.03 at 1000 hours.

In New York market, the US dollar edged higher against the yen yesterday as traders appeared to shrug off further signs of slowing Chinese growth and tensions over Russia’s annexation of the Crimea region.

Source:-thehindu.com

No denial of refund on pretext of unjust enrichment if purchaser had admitted fact of non-recovery o

Excise & Customs : Where : (a) due efforts were made to find out whether amount of duty had been passed over to purchasers being government-controlled enterprises; and (b) even purchasers had admitted fact that amount of duty had not been recovered from them, and said finding is not challenged/disturbed, refund cannot be denied on ground of unjust enrichment

AO can initiate re-assessment on basis of info found in return even after issue of sec. 143(1) ackno

IT : Normally Assessing Officer is Competent to initiate reassessment; however, on expiry of 4 years, satisfaction is to be recorded by an officer of higher rank

HC accepts winding-up petition as Respondent Co. didn't attempt to pay debt even during pendency of

CL: Failure of respondent-company to repay any sum towards repayment of loan taken from petitioner-bank even during pendency of winding up petition established that respondent was unable to pay its debts

Rental income of godown constructed on an agricultural land couldn't be termed as agriculture income

IT : Where assessee-firm having constructed a godown on agricultural land received from partners as their capital contribution, gave it on rent for tenant's business purpose, rental income arising from said godown building could not be regarded as agricultural income