HC upheld detention order as goods were diverted to location not shown in docs

CST & VAT : Tamil Nadu VAT - Where goods were diverted to one 'S' at Trichy while all relevant document showed that goods were meant to be delivered at assessee's factory at Coimbatore, detention notice was valid

Registration certificate of dealers can't be cancelled without hearing them and without assigning an

CST & VAT : Tamil Nadu VAT - Registration certificate of dealers cannot be cancelled without providing sufficient reasons and opportunity of being heard

India Eyes Wheat Exports, But Challenges Loom

A rally in global wheat prices and a looming tax on Russian exports have set the stage for resumption in India's overseas sales, although cheaper European supplies could provide stiff competition to the South Asian nation.

Exports by the world's No.2 wheat producer after a six-month gap could cap benchmark wheat prices which soared 20 per cent in the past quarter on worries over Russian supplies.

"India is in a unique position to make the best out of the export curbs put in place by Russia which was exporting wheat similar in quality to Indian wheat," said a trader with a leading global trading company in New Delhi.

Russia, a key wheat exporter, plans to introduce a duty of at least 35 euros ($41) per tonne on shipments from February to curb a rise in domestic prices.

India could sell around 2 million tonnes of wheat between February and July to Asian buyers as Russian supply dries up, traders and officials said.

While this is small versus a global trade of around 160 million tonnes, it is important for Southeast Asian millers looking for prompt shipments.

"Importers such as Indonesia, Vietnam, Malaysia and Bangladesh will be taking Indian wheat because of the freight advantage over European cargoes," a Singapore-based trader said. Southeast Asian buyers pay a freight rate of $12-$15 a tonne to get wheat from India and up to $30 to get grain from Ukraine.

There has been talk among traders that India could start issuing tenders to sell wheat from reserves from February. Government stocks were at 25.1 million tonnes as of January 1, more than three times the target.

"The government hasn't taken any decision on tenders yet but there are discussions going on between trading companies and the Food Corporation of India on export prospects and prices," an official at a state-run trading company said. India is set to procure wheat from farmers at about $230 per tonne this season, 3.7 per cent higher than last year.

In the export market, Indian wheat was offered by private traders at $270 per tonne free on board, while French wheat was sold at $248.94-250.25 recently. Australian standard wheat is at $270 and Ukraine milling wheat is available for $265.

But Indian wheat is still "attractive for buyers in Asia because they buy in smaller parcels and shipping time is shorter", a second Singapore trader said. "There is a strong possibility of a couple of million tonnes coming from India."

Source:profit.ndtv.com

India Offers Great Opportunity For Australian Uranium Sales: Dr Vanessa Guthrie

Australian uranium company Toro Energy is engaged in talks with the Indian public and private sector companies for a possible tie-up in uranium supply, trading and transfer of skill and knowledge strengths in uranium mining.

In an interview with Sanjay Jog, the company Managing Director Dr Vanessa Guthrie, a leading member of the India Australia Prime Ministers' CEO Forum participating in the Australia Business Week here, speaks on a wide range of issues.

Signing of the civil nuclear agreement in September last year was a watershed event for Australia uranium sector. It has provided us an opportunity to open a new market that is India. With the deal in place we can now build on negotiations for the Free Trade agreement (FTA) between the two countries and make sure that the relationship is reconnected.

For Toro Energy, the opportunity is exciting. We are currently focused on the development of a flagship Wiluna uranium project, for which the company has secured mining approval and clearance for starting the construction. We are ready to bring the product to India. India offers a very significant opportunity for sales of Australian uranium.

Australia has started talks to build relations with the Nuclear Power Corporation of India Ltd and Uranium Corporation of India Ltd. Besides, we have also launched negotiations with some private sector companies including Reliance Industries and Aditya Birla Group having interest in uranium trading in India with the Nuclear Power Corporation of India Ltd and Uranium Corporation of India Ltd.

Uranium Corporation of India Ltd owns uranium resources in India. The role of Australian investors including Toro Energy is to be able to provide skill and knowledge strengths. Australia has been mining uranium since a long time. We know how to do it, how to manage an environmental and radiation protections, we know how to regulate and control uranium operations.

So we would see most role that we can play provide knowledge and skill transfer in India's uranium mining. So far there has not been any MoU which has been signed but with the civil nuclear agreement in place this will be possible in due course of time. This apart, talks are also progressing with Indian companies for investment opportunities in coal and iron sector too.

With India and Australia now have inked civil nuclear cooperation deal, both the countries will have to soon finalize the administrative arrangements which is the protocol for exchange of material. It is currently underway. Prime Ministers of both the countries have set an ambitious target of December 2015 to sign FTA and they also have given due priority to soon put in place administrative arrangements for nuclear cooperation. We do not see any impediments. Modi's commitment to bring low carbon energy in India's power sector is very strong and we also see clear picture for energy sector.

During the fiscal 2013-14, Australia has exported about 6,000 tonne of uranium worth Australian dollar 622 million. We have the potential to increase it to almost 9,000 tonne worth Australian dollar 1 billion by 2018-19. In that proposed 9,000 tonne, Toro Energy's share will be 1,000 tonne. None of it is so far has been committed to India.

India is a good natural market for Australia. We in Australia have suffered under investments for many years due to government policies but in last 10 years there has been shift and policies have become much more open so also the mining sector.

We have the largest resources as Australia holds 34% of global uranium resources. However, Australia's uranium export in global exports is mere 11%. There is an opportunity for growth in India's nuclear power sector and it is matched with the growth in Australia's uranium exports.

Source:business-standard.com

Jsw Steel In Talks To Buy Iron Ore Terminal In Tamil Nadu From Sical Logistics

JSW Steel is in talks to buy an iron ore terminal in Tamil Nadu from Sical Logistics, a move aimed at backward integration of its operations and saving on cost of importing the key raw material, people familiar with the deal told ET. Sical Logistics runs an iron ore terminal with a capacity to handle 6 million tonnes (mt) of iron ore annually at government-owned Ennore Port.

The terminal's existing infrastructure can be further leveraged to handle 12 mt per annum to meet growth volumes, according to its website. Sajjan Jindal-led JSW Steel is greatly dependent on import of iron ore as it does not own any captive mines in India and the availability of iron ore in the country remains constrained after restrictions clamped by the courts in the wake of illegal mining. JSW Steel imports almost

half of its iron ore requirement of about 20 mt per annum.

"Sical Logistics' terminal at Ennore makes sense for JSW Steel," said one of the persons, requesting not to be named. VG Siddhartha Hegde, the promoter of Cafe Coffee Day, which owns majority of shares in Sical Logistics, is in charge of the discussions with JSW Steel, the person added. A spokesperson of Sical Logistics declined to comment on the development, saying, "We are not initiating any media activity at present."

JSW Steel executives said the company is likely to negotiate hard on the deal. Sical Logistics spent Rs 360 crore to build the terminals first phase of 6 mt capacity and will need another Rs 120 crore to take the capacity to 12 mt. JSW Steel, on the other hand, built a 10 mt iron ore jetty in Goa for Rs 180 crore and a 20 mt terminal in Ratnagiri, which has room for further expansion for Rs 700 crore.

"Sical Logistics has incurred high costs in building the terminal. It does not make sense for JSW to pay that much," the person cited earlier said. Sical has been grappling with high debt. At the end of September 2014, its debt was Rs 819 crore. The interest expense was 93% of its profit before interest and tax (PBIT). Any possible deal could bring down Sical's debt considerably.

In anticipation of this development, Sical's stock has risen 50% in the past three months. A senior official at Ennore Port who had not heard about negotiations said that since the port terminal was a public-private partnership, a deal will need consent of port as well as the government for change of ownership. In 2014, JSW Steel acquired Welspun Maxsteel for Rs 1,000 crore and a 50% stake in Vallabh Tinplate for Rs 46 crore.

Source:economictimes.indiatimes.com

Trust entitled to sec.11 relief once ITAT sets aside order withdrawing registration even if such ord

IT : Once order withdrawing registration under section 12A was set aside by Tribunal, registration would continue and assessee would be entitled to exemption notwithstanding fact that revenue had filed appeal against Tribunal's order

Revision by CIT would be void-ab-initio if such revisional order was set aside by ITAT and later on

IT: Where income from business of sale-purchase of land was duly disclosed by assessee and reconsidered by Assessing Officer, revision was not justified

Karnataka VAT: Provision on 'assessment of escaped turnover' can be invoked even in respect of deeme

CST & VAT: Karnataka VAT - Provisions of section 12A of Karnataka Sales Tax Act, which is headed 'Assessment of escaped turnover', could be invoked even in respect of deemed assessment

Rupee Strengthens Past 62 Per Dollar After Rbi Cuts Rates

The Indian rupee strengthened past the 62-per-dollar mark, while the 10-year bond yield fell 11 basis points in opening trade on Thursday after Reserve Bank of India (RBI) unexpectedly cut the repurchase rate with immediate effect. One basis point is one-hundredth of a percentage point.

The local currency opened at 61.89 per dollar and touched a high of 61.72, a level last seen on 24 November 2014. At 10.02am, the rupee was trading at 61.79 per dollar, up 0.65% from its previous close of 62.19.

RBI cuts its benchmark repo rate by 25 basis points to 7.75%, citing easing inflationary pressures. RBI said inflationary pressures have been easing since July and the path of inflation has been below the expected trajectory. India’s benchmark Sensex was trading at 27,834.64 points, up 1.8% or 487.82 points.

Most of the Asian currencies were trading mixed against the dollar. The Malaysian ringgit was up 0.57%, Taiwanese dollar 0.11%, Singaporean dollar 0.05%. However, Japanese yen was down 0.34%, Indonesian rupiah 0.14%, Chinese offshore 0.06% and South Korean won 0.06%.

The yield on India’s 10-year benchmark bond stood at 7.67%, a level last seen on 15 July 2013, compared with its Wednesday’s close of 7.77%. Bond yields and prices move in opposite directions.

Lower-than-expected inflation has been enabled by lower global crude oil prices, weaker demand conditions globally and locally and the government’s commitment towards fiscal consolidation, RBI said.

India’s Consumer Price Index (CPI) data released on Monday had shown that retail inflation fell to 5%, while Wholesale Price Index (WPI) data released on Wednesday showed an expansion of just 0.1%.

Since the beginning of the 2015, the rupee has strengthen 1.94% against the dollar, the best performer in Asian currencies market, while foreign institutional investors have sold $311.6 million from local equity markets and bought $955.9 million from the debt market.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.151, down 0.01% from its previous close of 92.161.

Source:livemint.com

No stay on basis of earlier favourable stay order by Tribunal if assessee didn't refer to such order

Service Tax : If Tribunal has granted stay on earlier occasion, it is duty of assessee to point out same at time of hearing of stay petition; Tribunal cannot be expected to go through what had happened in past to give relief

Value of unbranded/duplicate goods can be enhanced on basis of data of National Informatics Data bas

Excise & Customs : Value of unbranded/duplicate goods cannot be enhanced based on value of branded goods; however, if NIDB (National Import Data Base) data of comparable goods is available, value shall be adopted on basis of NIDB data

Now CFO/CS to sign quarterly declaration of importer/exporter hedging forex under past performance r

FEMA/ILT : Risk Management and Inter Bank Dealings: Hedging under past Performance Route- Liberalisation of Documentation Requirements in the OTC Market

ITAT rejects high risks, high return claim of TPO; deletes TP addition as assessee beard same risk i

IT/ILT: Assessee was following two business models, which carried the same risk - where in the first model customers could enter into contract directly with assessee and in the other model they could enter into contract with its AE. In both business models assessee had to share same ratio of revenue with AE. Whether TPO could not made transfer pricing adjustment on the ground that assessee was entitled to larger share of proceeds when contract was directly entered into with customers if assessee

Jharkhand Governor mandates e-filing of VAT returns; introduces drastic changes to Jharkhand VAT Rul

CST & VAT/INDIAN ACTS & RULES : Jharkhand Value Added Tax Rules, 2006 - Amendment in Rules 2, 3, 3A, 4, 7, 8, 10, 11, 14, 15, 18, 23, 24, 25, 31, 35, 41, 42, 43, 44, 58, 59, 60, Forms Jvat 120, Jvat 205, Jvat 400 and Jvat 407; Insertion of Rule 67, Forms Jcrf, Jcaf, Jccf, Jvat 126 and Jvat 215; Substitution of Forms Jvat 111, Jvat 112, Jvat 117, Jvat 119, Jvat 122, Jvat 200, Jvat 202, Jvat 204, Jvat 206, Jvat 207, Jvat 208, Jvat 209, Jvat 211, Jvat 212, Jvat 302, Jvat 306 and Jvat 508

Forex loss arising on purchase of goods is includible in operating cost for TP study

IT/ILT : Forex gain or loss from a trading transaction is not only an item of revenue nature, but is, in fact, a part of price of import or value of export transaction

HC directs ACIT to reconsider stay application as he determined income manifold higher than returned

IT : Income being assessed at 17 times higher than returned income, rejected stay application required re-consideration

CIT couldn't make revision to change head of income if consequential tax effect was revenue neutral

IT: Where income from purchase and sale of immovable property was shown as STCG and not business income, revision is not justified as tax effect in both cases is same

Date of allotment of land would be its date of acquisition and not the date of sale deed to compute

IT : Where assessee had entered into an agreement with builder for purchase of undivided share of land and construction, date of allotment of undivided share in land was to be adopted as date of acquisition for computing capital gain instead of date of sale deed

Cost of production of abandoned TV serial was allowable as business exp. to its producer

IT : In case of film/television serial, cost of production is to be treated as stock in trade and expenditure on abandoned film or teleserial is to be allowed as business expenditure

Capital gain accrues on relinquishment of rights in land to developer to get constructed area

IT : Where assessees divested possession of land to developer and in lieu of that assessees would receive consideration in form of 50 per cent constructed area, capital gain accrued to assessees on account of transfer of land

ITAT couldn't examine order of AO if assessee appealed against the revisional order passed by CIT

IT/ILT : Non-compliance of provisions of section 144C itself proves that there is error in order passed by Assessing Officer and said order tantamounts to order being erroneous and prejudicial to interest of revenue

Delay caused due to perusal of remedy before wrong forum wasn't condonable when appellant didn't act

Excise & Customs : Where, in matter of order of Commissioner of Kanpur, assessee pursued remedy before Delhi High Court, which had no territorial jurisdiction in matter, instead of filing appeal before Allahabad High Court, and assessee had not acted bona fide, delay caused thereby could not be condoned

Sums paid on electrical fittings and wooden work of house are personal effects

IT : Sums paid on electrical fittings and wooden work of house are personal effects

Excess duty paid on exported goods using Cenvat credit would be allowed in form of re-credit and not

Excise & Customs : In case where an assessee had paid excess duty (i.e., duty at tariff rate instead of net effective rate, after exemption) on exported goods utilizing balance in Cenvat Credit account, said excess duty cannot be allowed as refund/rebate; however, it may be allowed as re-credit

Misleading ads by developer on quality of services to be provided in housing project was unfair trad

Competition Act: Where respondents had issued misleading advertisement about standard and quality of services proposed to be provided by them in their house project, it could be inferred that they were guilty of adopting unfair trade practice

No TDS on interest paid by Indian branch to its foreign head-office as it wasn't taxable on grounds

IT/ILT : Where interest payment made by Indian branch of assessee to its head office abroad was allowed as deduction in computing profits of assessee's branch in India, therefore, section 195 would not be applicable on said payment

Amendment to SEBI's Act barring filing of appeal before HC against order of SAT doesn't have retro-e

Reduction in "appellate package" is not retrospective unless amendment provides to the contrary

India Eyes Wheat Exports, But Cheap European Supplies Pose Challenge

A rally in global wheat prices and a looming tax on Russian exports have set the stage for a resumption in India's overseas sales, although cheaper European supplies could provide stiff competition to the South Asian nation.

Exports by the world's No.2 wheat producer after a six-month gap could cap benchmark wheat prices which soared 20 percent in the past quarter on worries over Russian supplies.

"India is in a unique position to make the best out of the export curbs put in place by Russia which was exporting wheat similar in quality to Indian wheat," said a trader with a leading global trading company in New Delhi.

Russia, a key wheat exporter, plans to introduce a duty of at least 35 euros ($41) per tonne on shipments from February to curb a rise in domestic prices.

India could sell around 2 million tonnes of wheat between February and July to Asian buyers as Russian supply dries up, traders and officials said. While this is small versus a global trade of around 160 million tonnes, it is important for Southeast Asian millers looking for prompt shipments.

"Importers such as Indonesia, Vietnam, Malaysia and Bangladesh will be taking Indian wheat because of the freight advantage over European cargoes," a Singapore-based trader said. Southeast Asian buyers pay a freight rate of $12-$15 a tonne to get wheat from India and up to $30 to get grain from Ukraine.

There has been talk among traders that India could start issuing tenders to sell wheat from reserves from February. Government stocks were at 25.1 million tonnes as of Jan. 1, more than three times the target.

"The government hasn't taken any decision on tenders yet but there are discussions going on between trading companies and the Food Corporation of India on export prospects and prices," an official at a state-run trading company said. India is set to procure wheat from farmers at about $230 per tonne this season, 3.7 percent higher than last year.

In the export market, Indian wheat was offered by private traders at $270 per tonne free on board, while French wheat was sold at $248.94-250.25 recently. Australian standard wheat is at $270 and Ukraine milling wheat is available for $265.

But Indian wheat is still "attractive for buyers in Asia because they buy in smaller parcels and shipping time is shorter", a second Singapore trader said. "There is a strong possibility of a couple of million tonnes coming from India."

Source:in.reuters.com

Penalty can be levied under Tamil Nadu Sales Tax Act only after issuing notice to assessee

CST & VAT: Tamil Nadu ST - As per Circular dated 20-4-2001 issued by Commissioner, before imposing penalty under section 24(3) of Tamil Nadu General Sales Tax Act, notice had to be issued to assessee

Member's share in AOP would be exempt from tax even when AOP was claiming relief under sec. 80-IB

IT : Income of member company of AOP/BOI is to be computed as per section 67A read with section 86; Assessing Officer was not justified in observing that where an AOP had claimed deduction under section 80IB(10), share of income of member-company in said AOP would not be exempted

India's Dec Palm Oil Imports Rise, Trend May Continue

Indian palm oil imports rose 5 per cent to 836,447 tonnes in December from a month earlier because of tight supplies of local soy oil plus the decision by big producers to allow duty-free exports of palm oil, which made overseas purchases cheaper.

The world's biggest edible oil importer is likely to make higher overseas purchases in January, too, after Malaysia decided to leave its palm oil exports duty-free until the end of February, industry officials said.

"Due to falling crude oil prices, biodiesel demand is quite weak for palm oil. That's why producers are trying to sell as much as they can to India," said BV Mehta, executive director of the Solvent Extractors' Association of India (SEA), a Mumbai-based trade body, Crude oil fell more than 1 per cent on Wednesday after touching its lowest in nearly six years on Tuesday.

"Farmers are holding back their soybean crop due to lower prices. It has been affecting soybean crushing and availability of soyoil in the country," said a Mumbai-based dealer. Soybean is the main summer-sown oilseed in India and its prices have fallen due to sluggish export demand for soymeal.

India's total vegetable oil imports in December fell 4.2 per cent from a month earlier to 1,139,586 tonnes as purchases of sunflower and soyoil dropped, data released by the SEA showed.

India mainly buys palm oil from Southeast Asia, with small quantities of soyoil from Latin America and sunflower from Ukraine. Edible oil stocks in India rose to a record 2 million tonnes on January 1 as lower prices prompted refiners to import more than the local requirement, Mehta said.

Source:economictimes.indiatimes.com

Perusal of appeal on same issue of prior years to be deemed as reasonable ground for delaying appeal

IT : Where assessee for earlier assessment years had diligently pursuing matter before higher authorities and had succeeded in getting a decision in its favour, same would constitute sufficient cause for delayed appeal for current assessment year

Capital gain arose on sale of shares if money was invested in shares for holding them for longer per

IT : Where a person invests money in an asset with intention to hold it, enjoys its usufruct for some time and then sells it at enhanced price, it would be a case of capital accretion, and not an adventure in nature of trade

HC allows withdrawal of revised return filed in pursuance of a wrong legal advice

IT : Where assessee proceeded on wrong legal advise and subsequently during assessment proceedings it stated that it would like to withdraw revised return and would rely upon original return, issue was to be decided in favour of assessee

Ppmai Urges Govt Not To Further Hike Import Duty On Stainless Steel

Process Plant & Machinery Association of India (PPMAI) has written to Director General of Safeguard Duties not to impose any further duty on import of Cold Rolled Flat Products of Stainless Steel of 400 series in larger interest of the capital goods industry and the prevailing economic situation in the country.

"Such an action of initiation of Safeguard duty proceeding by Director General of Safeguards over the Last year budget increase of 7.5 percent from 5 percent on imports of stainless steel coils and sheets plus advantage gained by the domestic stainless steel producer through devaluation of rupee by over 40 percent in last couple of years will affect the downstream industry in the country," Secretary, PPMAI, V. P. Ramachandran said in a press statement on Tuesday.

"There are already anti dumping duties applicable on a host of stainless steel imports from practically all countries on the behest of local single private sector producer. Currently most of the stainless steel imports are from Japan and Korea who basically supply these grades for their car units set up in India where the material standards call for the imports from these countries only. Moreover these countries as well as Malaysia enjoy special rate of import duty as a result of FTA with them. Due to FTA, the petitioner also gains access to these countries to export from India," said Ramachandran.

He said, "The imports from China do not seem so alarming as per the data available in the country. The imports from Europe are of high quality but very low in volumes and at a much higher price than the local producers because the industry needs such high quality product imports which are not available from the domestic stainless steel producer."

"Indian stainless steel industry has a limited range of products and their quality of products and commercial dealings are inconsistent and not world class. We do have Salem Steel Plant , though not there as petitioner, and they too have extremely limited range of products. Therefore imports shall happen and can not be stopped. Therefore the initiation of safeguard duty is actually based on incorrect data from petitioner which does not justify this initiation at all," added Ramachandran.

"We do have confidence in the new government that it will take care of all end user industries including SMEs and not support any action which leads to creating any undue advantage for the petitioner to suit their individual business interests.We therefore appeal to DG to reject this proposal of the petitioner for imposing safeguard duty," he added.

Source:smetimes.in

Govt To Soon Ease Exporters' Hassles

The government has planned various measures to ease things for exporters on transaction costs and processes.

Commerce Secretary Rajeev Kher chaired a meeting on Tuesday in this regard, attended by officials from the departments of industrial policy and promotion, revenue, telecom, roads, railways, shipping and foreign trade, among others.

The aim is an efficient trade facilitation mechanism, in line with global standards for seamless movement of goods within states, commerce department officials told Business Standard.

The government has already undertaken several measures on digitisation of various processes for exporters, said an officer from the Directorate General of Foreign Trade.

It is planning a two-pronged strategy for exporters by rolling out procedural simplification and online inter-ministerial consultation. Firstly, exporters can soon file their applications onsite with the Directorate General of Foreign Trade (DGFT).

Second, the government plans to make the office of DGFT as ‘paperless’ as possible. Once this takes effect, the office will issue authorisations to exporters in online format.

The plan is also to integrate all fiscal incentives meant for exporters under one procedure.

The second task force on transaction costs in exports, constituted in April 2013, gave its report in July last year. It made recommendations for simplification of procedures and on electronic data interface (EDI).

Minister for commerce and industry Nirmala Sitharaman had recently stated the government was evolving a strategy in terms of specific operational problems for export or import processes.

Last year India also signed an agreement under the World Trade Organization on trade facilitation. As a result, the government has to establish world-class standards in simplifying of customs norms.

Source:business-standard.com

Rupee Trades Marginally Lower At 62.18 Per Dollar

The rupee was trading marginally lower against the US dollar on consistent demand for the US currency from companies and state-owned banks.

At 2.50pm, the rupee was trading at 62.18 a dollar, down 0.06% from its previous close of 62.15 and down from its opening level of 62.11 per dollar.

“A couple of large companies and state-owned banks have been on the buying side today because there is a feeling in the market that 62 per dollar is a good level to buy at,” said a dealer with a private bank. India’s benchmark equity index, S&P BSE Sensex, was trading at 27,347.96 points, down 0.28%.

Wholesale price inflation (WPI) for December recorded a 0.10% rise from a year ago, up from an unchanged level in November and lower than expectations of a 0.40% rise which has increased expectations of a interest rate cut by the Reserve Bank of India (RBI).

The yield on India’s 10-year benchmark bond stood at 7.77% unchanged from Tuesday’s close. Bond yields and prices move in opposite directions.

Since the beginning of the 2015, the rupee has strengthen 1.38% against the dollar, second best performer in Asian currencies market after Japanese Yen, while foreign institutional investors have sold $352.5 million from local equity markets and bought $692.4 million from the debt market.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 92.05, down 0.28% from its previous close of 92.31.

Source:livemint.com

Sum received towards installation of mobile antenna on terrace was taxable as income from house prop

IT: Sum received from cellular companies for renting out of the terrace for installation of mobile antenna was taxable as income from house property and not as income from other sources since roof and terrace would be considered as part of the building

Sum paid to advertise group name 'HCL' instead of assessee's name was also eligible for input credit

Cenvat Credit : Where assessee had advertised its group name "HCL" and had paid consideration, along with service tax, for said services, assessee was eligible for input service credit thereon, subject to production of documentary evidence

Duty can't be demanded on intermediate goods if full duty is paid on final product

Central Excise : If assessee does not pay duty on intermediate goods but pays full duty on final product and duty payable on intermediate goods was eligible for credit, then, owing to principle of revenue neutrality, duty cannot be demanded on intermediate goods; and even interest component cannot be demanded

Bank couldn't be held as defaulter for not deducting tax against Form 15G/15H in absence of any defi

IT: Where Commissioner did not found deficiency in declarations filed in Form 15G/15H for non-deduction of tax by assessee-bank, order passed under section 201(1A) required fresh examination

No processing of return under sec. 143(1) even in case of refund claim if scrutiny notice was issued

IT/ILT : Section 143 of the Income-Tax Act, 1961 - Assessment - General - Clarification as to whether Provision of Section 143(1D) Permits Processing of Returns Having a Refund Claim, Where Notice under Section 143(2) Has Been Issued

Chhattisgarh High Court upheld legal sanctity of services tax levy on hotels and restaurants

Service Tax : Article 366(29A)(f) does not indicate that service part is subsumed in sale of food/beverages; hence, service tax on service portion of supply of food/ beverages in hotels/restaurants is Constitutional; however, States cannot levy VAT on service portion quantified as per service tax law

No cancellation of registration of trust on mere allegation of charging capitation fee without any e

IT: Where assessee-society was imparting medical education in accordance with object clause, registration granted to it under section 12AA could not be cancelled on basis of unsubstantiated allegation that it was collecting fee over and above fee prescribed by Government

Unabsorbed depreciation could be set-off against undisclosed income noticed in search

IT: Where aggregate losses were huge, in which undisclosed income would submerge and would virtually lose its identity, there was nothing to be brought under tax regime of Chapter XIV-B

No deduction of transport rebate allowed to customers if it forms part of taxable turnover of assess

CST & VAT : Tamil Nadu VAT - Where assessee claimed deduction of certain amount representing transport rebate allowed to customers, since impugned amount formed part of taxable turnover, assessee was not entitled to deduction

Once set off of capital loss was denied, it couldn't be carried forward to subsequent years

IT-I : In case of composite accounts, estimation of expenditure incurred to earn exempt income was to be made as per of Rule 8D

HC quashed detention order as mere ipse dixit of detaining authority doesn’t justify detention

COFEPOSA: Mere ipse dixit of detaining authority is not sufficient to sustain order of detention

Number of appeals to be filed before CESTAT must be equivalent to number of orders against which app

Service Tax : Number of appeals to be filed before CESTAT must be as many as number of orders-in-original to which case relates in so far as appellant is concerned

Commission paid for procuring bullion was disallowed as there was no evidence of services rendered b

IT: In absence of any supporting evidence, regarding rendering of services by agent for import of bullion by assessee, payment of commission could not be allowed

Import Policy Affecting Farmers: Agriculturists Federation

Criticising the import policy of the Centre, Federation of Tamil Nadu Agriculturists Association today alleged that some of its policies were turning out to be anti-farmer.

The federation said the Government has allowed the import of potato and onion worth Rs 500 crore, which were available and raised aplenty across the country.

Since there was no remunerative price for onion and potato, the farmers were suffering heavy loss, S Nallasami, Federation secretary, said in a release.

Similarly, as against the requirment of 1.9 crore tons of edible oil, the import was to the tune of 1.18 crore tons, which resulted in the fall of the prices of coconut, groundnut, gingelly, castor and mustard, he claimed

Another issue adversely affecting the growers was import of sugar, he said.

Since sugar was produced in India more than the demand, allowing import of sugar, has a direct effect on the sugarcane growers and also factories, as the farmers were not not getting the right price for their produce, Nallasami claimed.

Source:business-standard.com

Rat-Hole Coal Mining Ban In Meghalaya Hits Bangladesh

Coal-dependent industries in neighbouring Bangladesh have been badly affected in view of the ongoing ban imposed by a green tribunal on unscientific rat-hole coal mining in Meghalaya, officials said in Shillong.

Bangladesh officials confirmed this at the first-ever bilateral meeting of the deputy commissioners/district magistrates of Meghalaya (India) and Bangladesh held in the state capital in Shillong.

Speaking to reporters on the sidelines of the meeting, Deputy Commissioner of Kurigram district of Bangladesh ABM Azad said, "We are badly suffering due to ban on coal as most of our brick kilns (industries) depend on coal from India."

Meghalaya exports tonnes of coal to Bangladesh via its 11 land custom stations.

Informing that the issue also figured at the meeting, he said, "We have discussed this issue in our meeting on how to solve this problem and requested the Union government to make things easier so that coal can be imported easily in our border areas."

According to him, thousands of brick kilns is operating in Bangladesh but however could not provide specific figure.

"It is almost 60 per cent of coal we need for the production of bricks," he said while admitting that if coal is not available in future, the industries may face closure.

The National Green Tribunal (NGT) has imposed an interim ban on coal mining in Meghalaya since April 17 last year and but has allowed transportation of the extracted and assessed coal from September 1, 2014.

The volume of coal that is being exported annually to Bangladesh from these Land Custom Stations (LCS) comes around 5,000 to 6,000 metric tonnes annually, a custom official informed.

The volume of coal export from the LCS under Borsora and Cheragoan is approximately Rs. 3295 crore while Rs. 179 crore of coal is exported from Ghasuapara land custom station during 2012-13, the official said.

Source:ndtv.com

Security provided by Assam Industrial Security force in disturbed areas of Assam wasn't liable to se

Service Tax : Security received from Assam Industrial Security Force (AISF) in disturbed areas in State of Assam is 'sovereign function' and does not amount to 'support services' and is prima facie covered under negative list under section 66D(a)

No tax on Indian beneficiaries of foreign trust until its trustee distributes income to Indian benef

IT : Valuation of properties covered under ULC Act would surely be not same as market value and it is a major prohibiting and restricting factor to diminish value consideration

HC lambasted advocate seeking to disqualify a judge from participation; it would collapse working of

No advocate who understands his responsibility as an officer of Court is ever expected to say that because his client for "good or bad reason" has an apprehension of bias qua a Judge and however, unfounded apprehension of bias may be, it is his duty to seek recusal on basis thereof.

India-Vietnam Trade May Rise To $20 Billion By 2020: Thanh

The bilateral trade between India and Vietnam is likely to touch $20 billion by 2020, country's ambassador to India Ton Sinh Thanh has said.

"The two-way trade between Vietnam and India is expected to reach $8 billion this year and could rise to $10 billion in 2015 and $20 billion by 2020," Thanh, who was in the city to meet members of the Exim Club Association of Exporters and Importers, told reporters here yesterday. Vietnam is currently India's tenth largest trade partner. Thanh is in Gujarat for the Vibrant Gujarat Global Investors Summit held in Gandhinagar.

"Vietnam's exports to India include electronics (mobile phones and components, computers and electronic hardware), natural rubber, chemicals, coffee and wood products. While Vietnam imports animal feed, corn, steel, pharmaceuticals and machinery from India," he said.

The ambassador thanked India for offering a $300 million line of credit for trade diversification and strengthening of commercial ties, hoping that it will enable Vietnam to import more polyester fabrics and yarns from India.

Currently, nearly half of Vietnam's imports of raw yarn and fabrics come from China. India's offer of a line of credit is aimed at diversifying Vietnam's source of materials and thus reduce its dependence on China.

"Vietnam wants to import cotton from India and seeks investment of Indian companies in textile, chemical dyes and other sectors," he said, adding 100 per cent investment of Indian companies in the field of health, education and other sectors will be allowed in Vietnam.

Also, Indian companies will be allowed to have joint venture in Vietnam, the ambassador said.

Vietnam encourages Indian investment in areas of particular expertise such as infrastructure (railways), power generation and distribution, international bidding for projects in Vietnam, information technology, education, pharmaceutical research and production, and agro-products," Thanh said.

India ranks 30th on Vietnam's investment ladder. Figures for the number of projects financed by Indian direct investment vary from 69 to 84 as of September 2014.

Indian capital is concentrated in oil exploration, mineral exploitation and processing, chemical manufacturing, information technology, sugar and agricultural processing.

Source:economictimes.indiatimes.com

No demand could be raised when assessee had paid duty exceeding what was demanded by revenue

Excise & Customs : Where it was found that assessee paid duty in excess of amount claimed by department, orders passed by lower authorities setting aside demand was perfectly correct

Issuance of reassessment notice in name of non-existent firm was void even when AO was unaware of it

IT: Where partnership firm was converted into company, issuance of notice under section 148 to partnership firm was void irrepsective of fact whether Assessing Officer was aware or not with regard to dissolution of firm

No unjust enrichment if refund arose after benefit of downward revision of prices was passed on to c

Excise & Customs : If credit notes are issued and benefit of downward revision of provisional prices is passed onto customers, assessee is entitled to refund of consequent duty and such refund is not hit by bar of unjust enrichment

SEBI strengthens the mechanism of index based market-wide circuit breaker

Index based market-wide circuit breaker mechanism

SEBI advises depositories to establish clear and comprehensive risk management framework

Risk management policy at the depositories

Gold Imports May Fall As Families Bank Onto Household Gold To Meet The Bridal

Indian families are increasingly banking on household gold to meet the bridal jewellery demand for the upcoming wedding season that kicks off from mid-January, a trend that's likely to bring down its import by 73% to 40 tonne in January, against 151 tonnes in November last year.

"Nearly 30-40% of the bridal jewellery demand is being met by household gold. Consumers are buying new jewellery, but at a slower rate," Ketan Shroff, spokesperson, India Bullion & Jewellery Association (erstwhile Bombay Bullion Association), said. It is believed that nearly 22,000 tonne of gold is locked up in Indian households.

Shroff said that huge quantities of gold were imported by nominated agencies during November in anticipation that the government will introduce some stricter import curbs. But the opposite happened as the government withdrew the 80:20 rule which tied imports to exports, that made gold easily available in the Indian market. Gold imports surged in value terms in November to $5.61 billion, pushing the trade deficit to an 18-month high.

Source:economictimes.indiatimes.com

Rupee Gains 12 Paise Against Dollar

The rupee gained 12 paise at 62.04 against the dollar in early trade on Tuesday at the Interbank Foreign Exchange on increased selling of the U.S. currency by exporters and banks amid higher opening of domestic equities.

The rupee had gained 16 paise to close at over one-month high of 62.16 on Monday against the American currency on persistent selling of dollars by banks and exporters on hopes of capital inflows into domestic markets.

Source:thehindu.com

Stay granted as tax demand from society working as per Societies Act if realisation would cause fina

IT : Where remission of entire tax demand would cause financial hardship to petitioner, which was a cooperative working for its members stay on demand was to be granted

No reassessment on basis of change of opinion without bringing any additional evidence during reasse

CST & VAT: U.P. VAT - Where Assessing Authority reopened assessment of assessee under section 21 of U.P. Trade Tax Act, since material in existence remained same during both assessment and reassessment proceedings and no additional material or facts had been referred to as per mandate of section 21(1), reassessment proceeding was merely based on change of opinion

No reassessment on disallowance of any exp. when its details were given in return of income

IT : Reopening of assessment on ground that certain items were not disallowed/added back during regular assessment could not be sustained when Assessing Officer had allowed said items on application of mind

ITAT grants partial relief under sec. 80-IB on residential units satisfying conditions of maximum bu

IT: Profits of housing property which otherwise satisfied condition of section 80-IB(10), as referable to residential units having a maximum built up area as prescribed per clause (c), would qualify for deduction on proportionate basis thereunder to exclusion of other residential units

'Usance charges' paid to NR on import purchases would be deemed as interest and liable to TDS

IT/ILT: Usance charges paid to non-resident on import purchase by assessee would be considered as 'interest' income

CBDT’s instruction raising threshold limit for filing appeal before ITAT would also apply to pending

IT : CBDT Instruction revising monetary limit for filing appeal before Tribunal on income-tax matters would apply to pending appeals also

Govt. notifies officers for filing complain against persons holding more than one DIN

Section 439 of the Companies Act, 2013 - Offences to be non-cognizable - Notified officer authorized for purpose of filing complaints under section 159 in respect of offences under section 155 of said act

HC directs AO to complete assessment after considering eligibility of assessee for sale-tax exemptio

CST & VAT: Kerala VAT - Where assessee owned hatchery and poultry farms and it claimed exemption from sales tax and Assessing Authority issued on it notices under sections 17D and 45A, Assessing Authority was directed to complete assessment under section 17(3) and also finalise penalty proceedings after considering objections

Assessee need not to reverse credit on common inputs after making payment on exempted goods under Ru

Cenvat Credit : If percentage payment at 8 per cent/10 per cent of exempted goods has been made as per rule 6(3) of CENVAT Credit Rules, 2004, assessee cannot be asked to reverse credit pertaining to common inputs

Sec. 10A : Exp. on technical services rendered in course of export of software was includible in exp

IT: Carried forward business loss and unabsorbed depreciation of non-STPI units could not be set-off against income of STPI units

DRT doesn't have any jurisdiction to wind up a debtor company

CL : Debts Recovery Tribunal does not have any jurisdiction to wind up a debtor company

No disallowance of interest as revenue didn't indicate that borrowed funds were diverted as interest

IT : Where assessee, engaged in saraji business,obtained loan from bank, but there was no diversion of interest bearing funds as interest fee advances, assessee's claim for deduction under section 36(1)(iii) was to be allowed

ST leviable on freight charged by GTA on single consignee if freight exceeds Rs. 750

Service Tax : In case of goods transport agency's services, exemption limit of Rs. 1,500 relates to 'all consignments' relating to 'all consignees' while exemption limit of Rs. 750 relates to 'single consignee'; hence, where goods are transported for a single consignee, exemption limit of Rs. 750 is applicable and if freight exceeds Rs. 750, it is liable to service tax, even if it is upto Rs. 1,500

Co. engaged in product development services isn’t comparable for co. rendering software development

IT/ILT : Addition made to assessee's ALP in respect of rendering software development services to its AE was not sustainable on account of functional difference of comparables selected by TPO as they were engaged in product development themselves

Loss arising on forward contract of export proceeds won't qualify as speculative loss; allowable

IT-I : Where assessee-company entered into forward contracts for export proceeds in order to protect its interest against fluctuations in foreign currency losses incurred on derivative contracts was an allowable expenditure

Depreciation allowable on plant and machinery even if it was used only in trial production

IT: Depreciation allowance was to be allowed to plant and machinery even if used only in trial production

Maruti Aims 20% Growth In Exports In 2014-15 At 1.2 Lakh Units

Country's largest car maker Maruti Suzuki India is eyeing 20% growth in vehicle exports this fiscal at 1.2 lakh units, riding on increased sales in non-European markets like Africa, Latin America and the Middle East.

In the current fiscal till date, the company has exported over 92,000 units in over 100 countries, a growth of over 23% over previous year and would soon launch its latest model 'Ciaz' in Mexico to add to its export basket.

"We are likely to close the financial year with around 1.2 lakh units, a growth of around 20%," a Maruti Suzuki India spokesperson told PTI.

This growth is on account of multiple factors such as focused efforts on markets such as Africa, Latin America and Middle East, the spokesperson added.

"This is in line with the Suzuki mandate to drive exports to these markets from India," the spokesperson said.

In December, the company's total exports nearly surged three-fold to 11,682 units, as compared to 4,311 units in December 2013.

Elaborating on the company's export performance during last month, the spokesperson said: "December was good month for us. We added markets like Sudan and Mexico and launched Ciaz in Egypt. Ciaz has been well received in Egyptian market and will be launched in Mexico shortly."

Besides, the company also expanded its exports fleet. "We have moved forward from exporting small cars and have added models like Swift, DZire, AltoK-10, Ertiga, Celerio which are helping us get good export numbers," the spokesperson said.

The top five export markets for the company so far in the current fiscal have been Algeria where it sold 8,991 units, followed by Chile where the company dispatched 7,456 units.

The company exported 5,736 units to Angola, 3618 units to Peru and 2,328 units to Indonesia.

"South Africa and Angola are other interesting markets where our cars are selling very well. In Angola, we are the number one brand in the market for the past two months. While we will continue to explore new markets, future growth is expected from Non-European markets," the spokesperson said.

Some new models added to the export fleet that have helped the company strengthen its presence in non EU markets are new Alto K-10, Ertiga, Celerio and Ciaz, the spokesperson said.

"Models introduced last year like Dzire, new Swift, new Alto 800 have also been well received in these markets. These models are also available in left hand drive versions to meet the specific market needs," the spokesperson added.In 2014, India's overall passenger car exports declined by 2.65% to 5,47,087 units from 5,61,972 units in 2013.

Source:- timesofindia.indiatimes.com

Rio Tinto Expects To Begin Uranium Exports To India In 1-2 Years

Diversified mining giant Rio Tinto group, one of the largest exporters of uranium from Australia, said on Monday that it expects another year or two before it starts shipping the nuclear fuel to India.

"The memorandum of understanding for civil nuclear cooperation was signed last year but there is still work that needs to be done on certain safeguards about the end use of the uranium. It is an elaborate process and though both sides are committed, I think it will take another year or two before we start exporting uranium to India," said Sam Walsh, group Chief Executive Officer, Rio Tinto.

Walsh added that he expressed interest in bidding for coal blocks in his discussions with Prime Minister Narendra Modi. "Commercial mining of coal is still some way off, but we are open to opportunities," he said.

The group currently has a two way trade with India of about $2 billion.Rio Tinto is still awaiting environment clearances for its $2 billion iron ore project in Odisha and $500 million diamond mining project in Madhya Pradesh.

"The Madhya Pradesh project is an important one. It has the potential to create 30,000 jobs. We hope that approvals for this and the Odisha iron ore project will come through soon," said Walsh.

He added that over the three meeting with Modi in the last six month, the issue of pending approvals has been raised.

Source:- thehindubusinessline.com

Excess tax could be set off against deficient CST if CST collection was mistakenly deposited as Stat

CST & VAT : CST - Where assessee was registered under Central Sales Tax Act as well as West Bengal Sales Tax Act and it made sales under both Acts and by mistake it had deposited a part of central sales tax collection as sales tax under State Act, assessee was granted permission for set off or adjustment of excess payment of State sales tax against deficit of central sales tax

CIT couldn't deny registration to trust due to non-commencement of charitable activities

IT: Application of registration of a trust cannot be rejected for not doing charity immediatly resulting in apprehension about genuineness of objects; registration can be cancelled later on, on breach of objects

SC stays Travelite India (Delhi HC) judgment striking down service tax rule 5A(2)

Service Tax : Supreme Court stayed operation of judgment of Delhi High Court in Travelite (India) holding that : (a) only type of audit contemplated under law is under section 72A, i.e., a special audit; (b) Parliament did not intend to provide for a general audit that "every assessee" may be subjected to "on demand" under rule 5A(2); and (c) rule 5A(2) of Service Tax rules, 1994 is ultra vires section 94

Lapse of AO in making assessment in due course in pursuance of remand order won't lead to denial of

IT: Where no assessment order was passed on remand, assessee would be entitled to refund on basis of returned income

Cos with high turnover and related party transactions are excludible from lists of comparables for T

IT/ILT: Where companies selected by TPO were functionally different, and had high turnover and high RPT filter, same had to be excluded from list of comparables

Exporter can convert shipping bill under one export promotion scheme to another to avail of benefit

Excise & Customs : Section 149 of Customs Act permits conversion/corrections of shipping bills from 'EPCG Drawback Scheme' to 'EPCG Drawback and Advance Licence/DEEC Scheme' so as to avail benefit of DEEC Scheme also

Indian Rupee Up 23 Paise Against Us Dollar In Early Trade

Rising for the fourth straight session, the rupee gained 23 paise at 62.09 against the dollar in early trade today at the Interbank Foreign Exchange on increased selling of the US currency by exporters.

Forex dealers said sustained selling of the American unit by exporters and the dollar’s weakness against other currencies overseas supported the rupee, but a lower opening in domestic equity market, capped the gains.

The rupee had surged by 35 paise to end at four-week high of 62.32 against the Greenback on Friday on persistent selling by participants amidst continued optimism of inflows.

Meanwhile, the benchmark BSE Sensex fell by 125.30 points, or 0.45 per cent, to trade at 27,333.08 in early trade.

Source:financialexpress.com

Even agreement to carry out construction of immovable property would be deemed as sale under Uttarak

CST & VAT : Uttarakhand VAT - Sale of goods is a sine qua non for application of Act; such sale will include an agreement for carrying out construction of immovable property or commissioning of any immovable property

Factual findings of Set Com couldn't be challenged in writ proceedings

Excise & Customs : Where, after considering all facts, Settlement Commission records that assessee has not made a full and true disclosure, said finding cannot be challenged in writ because writ court is not Appellate Authority over findings of fact recorded by Settlement Commission

Interest received on delayed payment of sale proceeds of power is eligible for sec. 80-IA relief

IT : Interest on delayed payment of sale proceeds of power generated from windmill is eligible for deduction under section 80-IA

Payment of 50% of deferred tax to be calculated before deducting input credit after introduction of

CST & VAT : Haryana VAT : Where assessee, a manufacturer, was allowed deferment of tax under provisions of Haryana ST Act and after introduction of Haryana VAT Act it opted for payment of 50 per cent of deferred tax upfront along with returns, amount of deferred tax would be calculated without deducting amount of input tax paid on goods used in manufacture and amount of input tax paid was to be counted towards payment of 50 per cent of deferred tax upfront

No VAT on sale of used Car as assessee, being not a dealer in Cars didn't avail of credit on its pur

CST & VAT: Delhi VAT - Where assessee, a trader dealing in other commodities, purchased a car after payment of VAT and did not avail input tax credit on purchase of car and later it sold car, sale of car was exempt from tax under section 6(3)

Cash loan taken at the time of financial crisis to meet business necessity won't invite penalty unde

IT : Receipt and repayment of loan in cash due to immediate business necessity would amount to reasonable cause for not levying penalty under sections 271D and 271E

CIT couldn't make revision on allegation of inadequate inquiry by AO when order of AO wasn't found a

IT : Where Assessing Officer rejected books of account and estimated net profit on gross receipts, Commissioner could not invoke revisional power

Co. alleged to have been involved in fraud cases was excludible from list of comparables for TP stud

IT/ILT: For Computing arm's length price, a Company under serious indictment in fraud cases is to be excluded from list of comparables on ground of unreliability of data

No service tax leviable on chit funds even after 1-6-2007; SC dismisses SLP against order of AP High

Service Tax : Supreme Court dismissed SLP against order of Andhra Pradesh High Court holding that in absence of any positive inclusion of 'chit fund' business under service tax law, service tax cannot be levied thereon merely by removal of 'exclusion of cash management' from Banking and Other Financial Services

Pendency of audit against service recipient couldn't be a ground to reject VCES declaration of asses

Service-tax : Where audit had been initiated at end of service recipient and on basis thereof, department asked assessee to pay service tax vide letter issued on or after 1-3-2013, same cannot be regarded as 'initiation of audit before 1-3-2013' against assessee; hence, assessee's declaration under VCES cannot be rejected

Pre revision notice issued after 6 years of completion of assessment was barred by limitation

CST & VAT: Tamil Nadu VAT - Where for assessment year 2000-01, Assessing Authority passed assessment order on 28-12-2001 and subsequently he issued on assessee a pre revision notice dated 8-1-2008 under section 16(1)(a) proposing to revise assessment for above year, pre revision notice was barred by limitation

Reassessment was justified if made on basis of high construction cost determined by valuation cell o

IT: Reopening of assessment on basis of valuation of godown constructed by assessee, by valuation cell could not be said to be without any basis