BANKING : Section 24 of the Banking Regulation Act, 1949 - Maintenance of Statutory Liquidity Ratio (SLR)
Wednesday, 4 February 2015
FPIs to make all future investments in corporate bonds with maturity of 3 years within corporate deb
FEMA/ILT : Foreign Investment in India by Foreign Portfolio Investors
Income of particular year in which return hasn’t been filed partakes the character of undisclosed in
IT: Failure to file return may result in treating such income as undisclosed one
Transmission of data via technical gadgets without any human intervention won't amount to technical
IT: Transmission of data via technical gadgets without any human intervention won't amount to technical services
ITAT denies to make TP adjustment for location saving relying on BEPS Action plan
IT/ILT: Whether where functional profile of a company was broadly similar to that of assessee company both being into contract research and development services same could not be excluded as comparable
TPAs aren't liable to withhold taxes from payments made to policy holders under health insurance pol
IT : TPAs are liable to deduct TDS u/s 194J from payments made to corporate hospitals. However, payments made to patient or policyholder would not be liable for deduction of TDS . It is nobody's case that a patient or a policy holder would be covered within the term "business or profession". A policy holder has not received the payment for rendering services in the course of carrying on medical profession or other professions. The patient is the receiver of the service but not a professional ser
CESTAT rejected plea of financial hardship as assessee had understated value of services in ST-3 ret
Service Tax : Argument of financial hardship can be acceptable only if assessee indicates correct value in ST-3 returns; hence, where value of services shown in ST-3 return was less than what was recovered, assessee was liable to evasion penalty
Penalty proceedings to be initiated afresh if CIT(A) had re-determined the undisclosed income assess
IT : Where undisclosed income determined by Assessing Officer was redetermined by Commissioner (Appeals), penalty proceedings was to be initiated afresh
AO couldn't revise assessment at enhanced rate of tax without issuing show cause notice
CST & VAT: CST - Where Assessing Authority passed revised order of assessment on assessee and levied tax on sales in question at enhanced tax without issuing show cause notice, impugned order was illegal
HC sets aside VAT penalty as department failed to appreciate objections of assessee
CST & VAT: Kerala VAT - Where penalty notice stated that no objections were filed by assessee while department took contrary stand that reply was available in file, matter was to be remanded to consider objections of assessee
No exclusion of loss making Co. from list of comparables if it wasn't shown as persistent loss makin
IT/ILT: Where a company was not a persistent loss making company, merely because it had incurred loss during impugned financial year, it could not be rejected from list of comparables
Tuesday, 3 February 2015
Goods not saleable due to restrictions imposed by Defence Ministry weren't marketable commodities
Excise & Customs : Where, as per agreement between assessee and buyer (Defence Ministry), assessee was prevented from selling or marketing 'castings' or passing-on any information about same to any other persons, 'casting' was not 'marketable' product
Provision for losses on forex option contract doesn't constitute an ascertained liability; not deduc
IT: Provision for losses created on foreign exchange option contracts as on Balance Sheet date does not constitute an ascertained liability and, thus, deduction could not be allowed in respect of same as business loss
Non-consideration of issue not pressed before ITAT couldn't be considered as its apparent mistake
IT : Once assessee had withdrawn challenge on a particular issue by not pressing it before Tribunal, non-consideration of said issue would not be considered as mistake on part of Tribunal
Director, being in charge of Co., was liable for offence committed by Co. even if he didn't receive
IT : In terms of section 278B, once offence is shown to have been committed by company, then liability of directors in charge of its affairs is attracted and in such a case, directors cannot be acquitted merely on ground that no separate notices were issued to them
India's Wheat Exports To Fall In 2015 As Rise In Supplies From Australia, Europe Trims Prices
India's wheat exports are poised to fall this year as an increase in supplies from Australia, Russia and Europe has pulled down global prices and made shipments from India non-viable. This could put pressure on the government as it would be forced to procure more of the grain at the state-set price as India is expected to have another bumper harvest.
Trading companies from US-based Cargill to local major ITC aren't signing contracts for the new crop to be harvested in April-May as prices at $275 a tonne were too high, said industry executives.
In comparison, French wheat is available at $210. Indian wheat is usually in demand in the Gulf and African countries for milling and in southeast Asian countries for animal feed. "French milling wheat is now the flavour of the season," said Tejinder Narang, a grain analyst in New Delhi.
"The price of French wheat climbed down from $245 to $210 free-on-board (fob) with the depreciation of the euro."
According to him, French 'feed' wheat is available still cheaper, at $200 a tonne.February-March is usually the time when trading companies like ITC, Cargill, Olam, Louis Dreyfus, Glencore, Emmsons, Noble, Midstar, Concordia and Bagadiya Brothers start signing forwardcontracts for delivery in April. This has not been the case as of now.
The weakening euro and a stronger rupee have both enlarged the spread of disparity. Even the US soft red winter wheat is quoted cheaper than Indian variety, at around $232 fob.
"This year, commitment for a new crop for shipments from March till May has been nil. Compared to it, in the previous year it was 2.5-3 lakh tonne," said Rajnikant Rai, COO of ITC's agribusiness.
How the market forces unfold globally and domestically during April-June would decide future possibilities of shipments, companies and traders said. This will also be the time when the new crop from Russia and Ukraine will start arriving.
Narang said with no takers for Indian grain in the export market, the pressure on government procurement at the minimum support price is sure to build up.
"The government will end up buying again 30-32 million tonne of wheat in April-May 2015 unless there is some dramatic reversal in the market or the rupee depreciates to 65-66 to a dollar, a possibility that appears to be remote.
Souce:- economictimes.indiatimes.com
Gold Imports Dip To 14-Month Low In Gujarat
Over stocking by bullion traders in last few months of 2014, scrapping of 80:20 rule by central government and increase in international prices resulted in decline in gold imports in month of January in Gujarat. The imports were at 14-month low last month with little over 1.5 metric tonnes (MT), lowest since November 2013 when 0.2MT gold was imported.
According to latest figures, 1.58 MT of gold was imported in January 2015 compared to 4.57 MT in the same period in 2014. After record import in November last year (39.9 MT), the month of December saw a drastic fall, with only 2.6MT of the gold being imported.
The imports of yellow metal recorded substantial increase in later half of 2014 following Reserve Bank of India's (RBI) decision to provide conditional relief in gold import restrictions by allowing premier trading houses to import gold in September last year. However the imports fell to single digit owing to high international prices and availability of gold in local market.
"One of the major reasons for high imports last year was the fear among the bullion traders that central government may toughen the restrictions on imports," said Monal Thakkar, president, Amrapali Industries. "Traders imported in large numbers to cater to the demand during Diwali and marriage season which led to over stocking," added Thakkar.
The scrapping of 80:20 rule which mandated traders to export one-fifth of the gold consignment imported also led to decline in imports. In case of silver, only 5.27MT were imported in January 2015 compared to 41.57MT in same period last year.
Source:- timesofindia.indiatimes.com
Now, Apply Online For Importer, Exporter Code
Exporters and importers will now be able to apply online for their new Importer Exporter Codes (IEC) instead of physically submitting papers and making payments at various offices.
IEC is a unique 10-digit code given to exporters and importers by the DGFT without which they are not allowed to carry out international trade unless given special exemption.
The Directorate General of Foreign Trade (DGFT) has started the process of online filing and processing of applications and issuing of codes in a digital format, an official release said.
The required documents for getting the IEC can be uploaded by the applicants online and the required fee can be paid through net banking.
Processing of such applications by regional authority of DGFT would also be done online and the digitally signed e-IEC would be issued/e-mailed to the applicants within two working days, the release added. In case the application is incomplete or otherwise ineligible, the same shall be rejected and an auto generated rejection letter/e-mail (with reasons for rejection) would be sent to the applicant within two working days.
The DGFT is also working on enabling payment of fee through debit/credit cards, which would further facilitate this process. Once implemented the Online system would be made mandatory.
Till that happens, the existing offline/manual system has also been allowed side by side, in order to facilitate those applicants who do not have net banking facility, the release added.
Efforts are also on for message exchange/integration of the DGFT’s system with Income Tax department and Ministry of Corporate Affairs for verification of PAN and other details. Once implemented, this would further reduce the processing time of e-IEC applications to possibly one day, the release said.
Source:-thehindubusinessline.com
Rupee Gains 13 Paise To End At Nearly 1-Week High Against U.S. Dollar
Bucking the weak trend in stocks, Indian rupee on Tuesday strengthened 13 paise to end at nearly one-week high of 61.67 against the greenback on persistent selling of dollars by banks and exporters on a day the RBI kept interest rates unchanged.
The rupee opened higher at 61.65 per dollar as against the yesterday’s closing level of 61.80 at the Interbank Foreign Exchange (Forex) market. It moved up further to 61.61 per dollar on initial selling of dollars by banks.
However, it fell to 61.84 per dollar in the afternoon on fresh demand from some banks before closing at 61.67 per dollar, showing a gain of 13 paise or 0.21 per cent from its last close.
The rupee has now gained by 19 paise, or 0.31 per cent, in two days and has closed at its strongest level since 61.41 on January 28, 2015.
The local currency moved in a range of 61.61 per dollar and 61.84 per dollar during the day.
“Foreign inflows and hopes of rates cuts in the future continued to support the local currency. Foreign investors were net buyers of $120.68 million in Indian markets yesterday and purchased a total $6.818 billion in 2015,” said Admisi Forex India, Director, Suresh Nair.
The Reserve Bank of India (RBI) earlier today left repo rate unchanged at 7.75 per cent, but cut SLR by 50 bps to 21.50 per cent from 22 per cent.
In international Forex markets, the widely-tracked dollar index was down by 0.05 per cent against a basket of major global rivals.
In the Tokyo market, the dollar was lower against the yen on Monday, with investors seeking to take profits on overnight gains in the greenback.
In the New York market, the Canadian dollar, Norwegian krone and Russian ruble rose against the U.S. dollar yesterday as oil prices fluctuated.
Meanwhile, the Indian equity benchmark Sensex dropped by 122.13 points, or 0.42 per cent, to close at nearly two-week low of 29,000.14.
“Some banks were selling dollars in the market which helped the rupee trade strong against the U.S. dollar. The trading range for the spot USD/INR pair is expected to be within 61.20 to 62.20,” said Veracity Group, CEO, Pramit Brahmbhatt.
Meanwhile, the forward premia recovered sharply on fresh paying pressure from corporates.
The benchmark six-month premium payable in July ended higher at 222.5-224.5 paise from 218-220 paise yesterday and forward contracts maturing in January 2016 also rose to 428- 430 paise from 417-419 paise.
The Reserve Bank of India fixed the reference rate for dollar at 61.7389 and for Euro at 69.9378.
The rupee eased against the pound to 92.89 per pound from 92.82 per pound previously while moved up against the euro to 69.99 per euro from 70.02.
Source:- thehindu.com
Issue regarding admission of winding-up plea referred to third bench as division bench judges had di
CL : Where there was difference of opinion between two Judges of Division Bench as regards admission of winding up petition against appellant company, matter was to be referred to Third Judge for majority decision
Credit distributed by Head Office can be availed of even if it isn't registered as Input Service Dis
Cenvat Credit : Distribution of credit by Head Office without taking registration as Input Service Distributor cannot be adopted as a ground for denial of credit
AMP exp. incurred on brand promotion of foreign AE would attract TP provisions
IT/ILT: Where incurring of AMP expenses by assessee towards promotion of brand legally owned by foreign AE constituted a transaction, transfer pricing adjustment in relation to such AMP expenses was sustainable in principle
ITO couldn't levy concealment penalty when gold and cash were found pursuant to search by Excise Dep
IT : Where search and seizure was conducted by Central Excise Department, penalty under section 271(1)(c) was not to be levied by Income Tax Officer as concealment was not conducted by Income-tax Department
RBI to announce new FDI policy for medical devices sector
FEMA/ILT : Clarification on Foreign Direct Investment in Pharmaceuticals Sector
Banks to update their websites on monthly basis with list of unclaimed deposit accounts, inoperative
BANKING : Depositor Education and Awareness Fund Scheme, 2014 - Section 26A of Banking Regulation Act, 1949 - Unclaimed Deposits/inoperative Accounts in Banks - Updation of List of Inoperative Accounts on Their Website
Banks can install offsite cash deposit machines with adequate security arrangements without approval
BANKING : Section 23 of the Banking Regulation Act, 1949 - Installation of Off-Site Cash Deposit Machines (CDMs)/bunch Note Acceptor Machines (BNAMs)
Order passed by ITAT without considering decisions placed on record by assessee wouldn't call for re
IT: Tribunal rightly dismissed assessee's rectification application raising an objection that dictum of decision placed by assessee was not looked into before disposing of appeal because it was a matter to be agitated in appeal
Coconut oil sold under brand name of 'Parachute' was taxable at 4% under U.P. VAT Act
CST & VAT: U.P. VAT - Where assessee was engaged in manufacture of pure coconut oil and same was sold as coconut oil under brand name of Parachute and on packaging it was mentioned 'A premium quality 100 per cent pure edible oil made from finest coconut,' said oil would fall under Entry No. 43 of Part A of Schedule II
Protocol to India-South Africa DTAA requires strict compliance with exchange of info request
IT/ILT : Section 90 of the Income-Tax Act, 1961 - Double Taxation Agreement - Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries - South Africa - Amendment in Notification No. GSR 198(E), DATED 21-4-1998
HC reduced pre-deposit ordered by Asst. Comm. (A) as petitioner's appeal was pending and he had paid
CST & VAT - Kerala VAT - When out of total demand, petitioner had remitted amount of tax, in view of fact that contentions of petitioners had not been considered, 20 per cent of demand would be pre-deposited
ITAT to consider intention of assessee for holding mutual funds to decide tax liability on their sal
IT : Where Tribunal, while holding that profit on sale of mutual fund units was short-term capital gain, did not look into actual intention of assessee and manner in which transactions took place, matter was remanded for fresh consideration
Claim of secured creditors of liquidating-Co. had priority over dues of Sales Tax department
CL: In case of a company which is being wound up, proceeds of its assets must enure firstly to secured creditors and workers and then, if any proceeds remain, it is to be distributed among others including State which may be creditors with unsatisfied demands
Monday, 2 February 2015
License fee paid to use software for accounting purposes is allowable as revenue exp., says ITAT
IT : Where there were various expenses which pushed down net profit rate of trading division if compared to profit of other business of assessee, ad hoc disallowance could not be made on said expenses
Increase in anti-dumping duty doesn't apply to Bill of Entry, being filed prior to said increase
Excise & Customs : Rate of anti-dumping duty, as applicable on date of filing bill of entry, is payable; hence, where increase in anti-dumping duty was made after filing of bills of entry, said increase could not be made applicable to assessee
No denial of sec. 35 deduction without seeking opinion of prescribed authority about nature of resea
IT : Where assessee claimed deduction under section 35(1), Tribunal itself should not have decided said question in assessee's favour without seeking opinion of prescribed authority and without fully discussing material on record
Case restored to AO as additional evidence filed before ITAT was relevant to decide allowability of
IT : Where assessee filed additional evidence before Tribunal and same was relevant for adjudication of allowability of corporate cost of allocation expenses, matter was to be restored to file of Assessing Officer to decide issue afresh
India's Reliance Dec Oil Imports Down 5.9 Pct Y/Y - Trade
India's Reliance Industries, owner of the world's biggest refining complex, imported about 6 percent less oil in December than a year earlier and
continued to skip purchases of Iraqi oil for the fourth straight month, tanker arrival data made
available to Reuters showed.
Reliance, which has a diversified crude slate and shifts purchases to maximise revenue,
bought about 0.7 percent more oil in 2014 than a year earlier.
It continued to buy 45 percent of its oil needs from Latin America in 2014 while share of
middle eastern grades in its overall purchases during the year declined to 39 percent from about
43 percent in 2013.
African grades accounted for about 15 percent of the refiner's crude purchase in 2014
compared with about 11 percent in 2013, the data showed.
Reuters reported in May that Reliance may boost intake of Brent-linked heavier, cheaper
African grades in 2014 and West Texas Intermediate (WTI)-related Latin American oil while
cutting intake of those from the Middle East.
Reliance's two advanced refineries in western Gujarat state can together process 1.2 million
bpd of oil, or about 28 percent of India's overall capacity.
The complexity of these plants allows the refiner to continuously diversify its crude slate
by testing new grades and to improve refining margins.
Following are the details of Reliance's crude and condensate imports in January-December
2014 versus a year earlier, according to the data. Volumes are in 1,000 bpd:
---------------------------------------------------------------------------------------------
Region/ Dec Nov %chg Dec %chg Jan-Dec Jan-Dec %chg
Country 2014 2014 mth/mth 2013 yr/yr 2014 2013 yr/yr
-----------------------------------------------------------------------------------------------
Latam
Brazil 214.7 59.6 260.1 87.5 145.6 69.3 37.6 84.3
Colombia 67.0 0.0 -- 98.2 -31.7 54.5 57.6 -5.5
Ecuador 0.0 0.0 -- 0.0 -- 23.9 8.4 185.9
Mexico 68.2 70.3 -3.0 68.6 -0.6 61.8 63.4 -2.6
Venezuela 399.6 485.0 -17.6 337.2 18.5 349.0 394.3 -11.5
Guatemala 0.0 0.0 -- 8.8 -100.0 0.0 0.7 -100.0
TOTAL 749.5 614.9 21.9 600.2 24.9 558.5 562.1 -0.6
Asia
Australia 0.0 22.8 -100.0 18.5 -100.0 1.9 7.0 -73.2
TOTAL 0.0 22.8 -100.0 18.5 -100.0 1.9 7.0 -73.2
Middle East
Neutral zone 34.7 35.1 -1.1 62.3 -44.2 59.5 119.2 -50.1
Oman 0.0 0.0 -- 8.9 -100.0 3.3 6.5 -49.0
Iraq 0.0 0.0 -- 0.0 -- 16.7 71.6 -76.7
Qatar 13.8 29.8 -53.6 84.4 -83.6 80.7 63.7 26.7
Kuwait 0.0 0.0 -- 0.0 -- 0.0 2.9 -100.0
S Arabia 250.4 259.9 -3.6 263.3 -4.9 228.1 203.3 12.2
U.A.E. 54.4 234.3 -76.8 37.9 43.6 94.8 57.1 66.0
Yemen 18.0 0.0 -- 0.0 -- 1.5 5.4 -71.5
TOTAL 371.4 559.2 -33.6 456.8 -18.7 484.6 529.7 -8.5
Europe
Albania 0.0 0.0 -- 0.0 -- 3.3 3.4 -2.7
TOTAL 0.0 0.0 -- 0.0 -- 3.3 3.4 -2.7
C.I.S.
Azerbaijan 0.0 0.0 -- 0.0 -- 2.8 0.0 --
Kazakhstan 0.0 0.0 -- 31.3 -100.0 13.4 5.3 150.5
TOTAL 0.0 0.0 -- 31.3 -100.0 16.1 5.3 202.2
Africa
Nigeria 91.2 88.9 2.6 0.0 -- 55.8 15.0 271.0
Angola 0.0 33.9 -100.0 0.0 -- 45.8 35.8 27.8
Cameroon 0.0 0.0 -- 22.2 -100.0 7.6 11.7 -35.1
Chad 0.0 0.0 -- 0.0 -- 2.8 4.1 -33.1
Egypt 37.2 18.2 105.1 70.1 -46.9 27.0 39.0 -30.8
Gabon 30.0 0.0 -- 50.7 -40.7 16.0 13.5 18.7
Sudan 0.0 21.0 -100.0 20.3 -100.0 18.5 5.0 269.7
Eq. Guinea 0.0 0.0 -- 0.0 -- 11.1 9.6 14.8
Libya 0.0 0.0 -- 0.0 -- 0.0 1.7 -100.0
TOTAL 158.4 162.0 -2.2 163.2 -2.9 184.4 135.4 36.2
Canada 0.0 0.0 -- 0.0 -- 2.8 0.0 --
----------------------------------------------------------------------------------------------
TOTAL ALL 1279.4 1358.9 -5.9 1270.1 0.7 1251.7 1242.9 0.7
---------------------------------------------------------------------------------------------
Note: The total may not tally as numbers in tonnes have been rounded off after converting them
into barrels per day using a conversion factor of 7.2 barrels per tonne, divided by the number
of days. Numbers for previous months have been revised.
Source:-in.reuters.com
Indian Steelmakers Poised To Cut Prices As Imports Flood Market
India’s largest steelmakers are expected to cut prices to the lowest in almost a year to cope with a glut created by surging imports from China, Russia and South Korea.
Prices of hot-rolled steel, used to produce sheets, wheels, pipes and railway tracks, may fall by more than 4 percent this month to 32,500 rupees ($526) a metric ton, according to the average of six estimates compiled by Bloomberg from industry executives, government officials and analysts. Prices may not recover for a couple of quarters, unless the government acts to curb imports, they said.
“The slowing Chinese economy is leading to higher exports from the country,” said Rahul Jain, a Mumbai-based analyst with CIMB Securities India Pvt. in Mumbai. “With surging imports, price cuts will happen at least in the near-term.”
Hot-rolled coil prices in Mumbai have declined 10 percent since July, when imports started rising, to about 34,000 rupees a ton, excluding taxes. The rates for similar products in China tumbled 22 percent in the same period, according to researcher Beijing Antaike Information Development Co.
Earnings at Indian steelmakers are already under pressure with Tata Steel Ltd., the top producer, expected to post its lowest profit in seven quarters for the period ended Dec. 31, according to the median of 20 analyst estimates compiled by Bloomberg. JSW Steel Ltd. reported its lowest profit in five quarters in the three months ended Dec. 31.
“Prices of some of the imported steel products have come down to ridiculous levels and it’s forcing local producers to cut prices,” A.S. Firoz, chief economist at the steel ministry’s economic research unit, said today by phone from New Delhi. “It’s a concern that our exports have fallen, while imports are flooding our markets.”
Imports accounted for 12 percent of India’s steel consumption in the nine months ended Dec. 31, compared with 8 percent in the same period year ago, according to steel ministry data. Local prices will remain restrained in the year starting April 1 due in part to higher imports, according to a Jan. 20 report by India Ratings & Research Pvt., the local unit of Fitch Rating Ltd.
“There’s pressure from steel imports this quarter,” JSW Steel Director Jayant Acharya told reporters at an earnings press conference on Jan. 30. “The Chinese surplus is coming out into the international markets and Russia’s ruble depreciation has facilitated their exports.”
Crude steel output in China, the world’s top producer, reached a record last year, while a fall in Russia’s ruble and a free-trade accord between India and South Korea has led to a surge in imports from those nations. India, which was a net exporter of steel last year, may become a net importer of 3 million tons this year, Firoz had said in January.
At the current rate, imports may reach as much as 1 million metric tons a month, Acharya said. India’s total steel imports rose 59 percent to more than 6.5 million tons in the nine months through Dec. 31 from a year earlier, according to steel ministry data.
Chinese steel exports soared to 10.17 million tons in December from the previous month’s record of 9.72 million tons, according to data from the nation’s customs department.
India’s steelmakers are lobbying the government to restrain imports by raising taxes on shipments from overseas suppliers and also implement a December order to ensure uniform quality of the alloy being imported.
The order makes quality certification from the Bureau of Indian Standards mandatory for imported steel products.
“We are requesting the government to look at enforcing the quality order,” Acharya said. “We also expect some changes in the duty structure either in terms of normal customs duties or tariff barriers.”
Source:- bloomberg.com
Indian Shrimp Exports To Touch Rs.27,151 Crore By 2017
While the Indian frozen shrimp export market is expected to reach nearly Rs.27,151 crore by 2017, over-exploitation of the crustacean has led to a market imbalance, a study conducted by an industry association said Monday.
According to industry body Assocham, there is an urgent need to promote brackish water aquaculture for shrimp production through focused research on increasing productivity.
"Over-exploitation of shrimp from natural sources and ever-increasing demand for shrimp and shrimp products globally has resulted in wide demand-supply gap, thereby necessitating the need for exploring new avenues for increasing production of prawns and increasing brackish water area under culture," D.S. Rawat, secretary general of the industry body said here.
Indian shrimp exports in 2013-14 accounted for 301,435 tonnes valued at $3,210.94 million and the volume export of cultured shrimp grew by 31.85 percent in the time period.
The study has stated the exports in the coming years are expected to rise by 36.71 percent in volume and 92.29 percent in terms of dollar valuation.
According to the study, although the shrimp production potential is enormous for the country, estimated at over 11 lakh hectares (ha) available for brackish water, only 8.5 percent, accounting for about 1 lakh ha has been brought under shrimp cultivation.
Brackish water is needed for shrimp farming and is the natural habitat of the crustacean.
Though West Bengal had the largest available brackish water area of over four lakh ha, the state had brought a meagre 12 percent area of about 47,488 ha under brackish water culture as of 2009-10, the study said.
The state, which had the highest share of over 46 percent in total area under brackish water culture, however, has decreased by about six per cent in four years.
Gujarat, ranked second in terms of potential brackish water area of over 3.7 lakh ha, had brought only 0.5 percent or about 1,916 ha of area under brackish water culture.
However, it is the only coastal state where area under brackish water culture has increased by about 48 percent, from 1,297 ha in 2005-06 to 1,916 ha as of 2009-10.
Source:- indiagazette.com
Pharmexcil Focuses On Improving Indian Pharma Exports To Myanmar
The Pharmaceutical Export Promotion Council of India (Pharmexcil) is focussing on improving Indian pharma exports to Myanmar. As part of this initiative, the council is planning to organise expo-cum-BSM (buyer-seller-meet) in Yangon from 19-21st February 2015.
Myanmar, the eastern neighbour of India (also called as Burma earlier) has been long neglected and not much focus was given towards this country due to political uncertainty and military dictatorship. But during the past few years now, things are fast changing with much improved business environment prevailing in the country.
Particularly, the demand for healthcare products in the country is very high due to aging population. As India has already proven its might in high quality generics all over the world, Myanmar is now looking at India for its medicinal and healthcare imports.
Since the year 2011, Indian bulk drugs, formulations, herbals and Ayush products are being increasingly exported to Myanmar. India recorded a growth of 27 per cent in its formulations exports from Rs.375.46 crore, in the year 2011-12 to Rs.831 crore in the year 2013-14. Similarly in herbals, India recorded a growth of 71 per cent and improved its exports from Rs.0.16 crore in the year 2011-12 to Rs.0.9 crore in the year 2013-14.
On the other hand, India’s exports to Myanmar have recorded a negative growth in bulk drugs and Ayush products. Exports of bulk drugs from India to Myanmar have dipped to Rs.5.26 crore in the year 2013-14 from Rs.9.29 crore in the year 2011-12.
As there is a huge demand for generic medicines in Myanmar, India wants to grab the opportunity to improve its pharmaceutical export business to the country. At the same time the council is looking to establish a long term partnership between Indian pharma entrepreneurs and business community in Myanmar. As part of this, Pharmexcil with the support of department of commerce, government of India is planning to organise an expo-cm-BSM at Hotel Park Royal in Yangon from 19-21st February.
The main aim of this expo is to promote Brand India Pharma Campaign and to attract more investments in pharma sector as well as to improve Indian generic exports to this high potential market. “Our aim with this expo-cum BSM is to create a huge opportunity to interact with local buyers/distributors and large number of doctors from various parts of Myanmar for creating awareness about India generics. Further, Ministry of Commerce has directed Council to include related segments like pharma consultants, pharma education, pharma engineering, medical devices, drug testing labs, pharma institutions etc. in order to give the effort a composite outlook and create opportunities strategically. Using such platforms Indian pharma companies can build much better business links as well as share views and give suggestions to resolve in there are any issues relating exports or imports,” informed Dr P V Appaji, Director General of Pharmexcil.
Source:- pharmabiz.com.
Judgment of HC was a binding precedent even if it laid down an incorrect law unless it was set aside
Excise & Customs : High Court cannot review earlier judgments rendered by it, and even if said judgment does not lay down law correctly, such earlier judgment is a precedent of binding nature so long same is not set aside
ITAT set-aside TP adjustment; directed assessee to show that no mark-up was required on AMP exp. rei
IT/ILT : Where TPO made addition to assessee's ALP by applying mark up of 15.27 per cent on reimbursement of AMP expenses incurred to promote brand name of parent company, impugned addition was to be set aside and, matter was to be remanded back with a direction to assessee to demonstrate its claim that no mark up adjustment was required
No Sec. 68 addition on receipt of share application money as acceptance of investor established sour
IT: Where all companies making payment of share application money and share premium money, addition as unexplained credit was unwarranted
There Is A Slight Shift Of Exporters From Telangana To Ap After Bifurcation Of The State, But Still The Export Potential Of The New Ap Is Grossly Untapped, According To The Joint Director-General Of Foreign Trade, Pk Ghosh.
There is a slight shift of exporters from Telangana to AP after bifurcation of the State, but still the export potential of the new AP is grossly untapped, according to the Joint Director-General of Foreign Trade, PK Ghosh.
He was speaking at a seminar on exports organised by the GITAM School of International Business (GSIB) here on Monday in association with the DGFT, as a part of DGFT’s nationwide awareness campaign on Niryat Bandhu.
Ghosh said DGFT office would start functioning at Vijayawada from April 1. While the Visakhapatnam office will cater to the five of the coastal districts of the state, the Vijayawada office will cater to the remaining eight districts.
He said shrimp and aqua exports accounted for a major share of exports from the state. “But still there is immense scope to improve aqua exports and also in other sectors such as ferro alloys, steel and engineering products,” he said.Niryat Bandhu is being organised across the nation to create awareness and encourage entrepreneurship.
Source:-thehindubusinessline.com
Indian Rupee Rises 6 Paise Vs Us Dollar Ahead Of Rbi Policy
Ahead of RBI credit policy, the Indian rupee today ended 6 paise higher at 61.80 against the American currency on fag-end selling pressure from banks and exporters due to a weak dollar in the overseas markets.
The rupee resumed lower at 62.00 per dollar as against last weekend’s level of 61.86 at the Interbank Foreign Exchange (Forex). It moved down further to 62.01 per dollar on initial dollar demand from banks.
However, it recovered immediately to end at 61.80 per dollar on selling of dollars by banks and exporters, showing a gain of six paise or 0.10 per cent.Intra-day, it hovered in a range of 61.76 and 62.01.
The dollar index was down by 0.14 per cent against a basket of major global rivals.“Rupee appreciated against the Dollar to start the week on a positive note supported by dollar sales and foreign inflows. Rupee’s gain came after speculation that RBI could cut rates to help boost economic growth fuelled expectations of foreign fund inflows,” said Admisi Forex India Pvt Ltd, Director, Suresh Nair.
In the international market, the greenback met with selling pressure earlier in the morning, in line with the weak tone it has exhibited since Friday when weaker-than-expected US GDP figures for December quarter helped moderate he currency market’s expectation for higher interest rates.
A downbeat reading for China’s official manufacturing purchasing managers index Sunday also prompted selling of the US dollars.
Meanwhile, the benchmark BSE Sensex recovered from initial losses but ended lower by 60.68 points or 0.21 per cent at 29,122.27.Veracity Group, CEO, Pramit Brahmbhatt said: “Investors traded cautiously ahead of RBI credit policy which will be announced tomorrow. After unexpected rate cut last month, RBI is expected to keep interest rates on hold tomorrow, although some of the market players are being optimistic and are expecting further rate cut.”
The trading range for the spot USD/INR pair is expected to be within 61.40 to 62.40, he added.The forward premia declined further on sustained receipts by exporters.The benchmark six-month premium payable in July ended lower at 218-220 paise from 222-224 paise on last Friday and forward contracts maturing in January 2016 also fell to 412- 419 paise from 421.5-423.5 paise.
The Reserve Bank of India fixed the reference rate for dollar at 61.8840 and for Euro at 69.9413.The rupee firmed up further against the pound to 92.82 per pound from 93.33 previously ans recovered against the euro to 70.02 per euro from 70.22.The rupee also moved up to 52.51 per 100 yen from 52.59 previously.
Source:- financialexpress.com
ITAT couldn't allow Keyman insurance premium by relying upon earlier order not decided on merits
IT : Where assessee's claim for deduction of Keyman Insurance Premium was not decided on merits in earlier year, Tribunal could not rely on said order for allowing assessee's claim during relevant year
HC upheld reassessment disallowing excess relief under sec. 10AA as this issue wasn’t considered dur
IT : Reopening to recompute deduction under sections 10AA was justified where grounds/reasons recorded for reopening assessment were not issue which were considered by Assessing Officer while passing original assessment order
AO has no option under sec. 164 to assess beneficiaries of third level trust at maximum marginal rat
IT : The Act provides for assessment in representative capacity, but the representative capacity of the Trustees of the First Level Trust is to represent the beneficial interest of the beneficiary of its Trust. It cannot reach to the Third Level Trust or the beneficiaries of the Third Level Trust as sought to be canvassed. Had the option been not available under Section 164 of the Act to the Assessing Officer, possibly the beneficiaries of Second Level Trust could also not be considered, but as
TPO can't decide about deductibility of an exp. as his jurisdiction is limited to determination of A
IT/ILT : In the instant case, TPO proposed transfer pricing adjustment with 'nil' ALP of the commission transaction on the ground that no evidence was furnished about any services being rendered by the foreign AE.Accordingly, AO passed the assessment order without any further enquiry.
Assessee couldn't challenge notification after availing of exemption for more than 8 years
CST & VAT : U.P. VAT - Where assessee, a manufacturer of two wheeler automobiles, availed exemption from tax under notification dated 19-7-1996 issued under section 4A for more than eight years up to 22-2-2007 and thereafter it filed a writ petition on 23-10-2007 stating that said notification was not in accordance with U.P. Industrial Policy of 1994, said notification could not be said to be not in consonance with industrial policy
Sec. 10B: Exp. in delivering software services abroad was deductible from export turnover and total
IT: While computing exemption under section 10B, expenditure incurred was to be excluded from both export turnover and total turnover to maintain parity
HC upheld concealment penalty on failure of assessee to provide details of donees showing receipts o
IT : Where assessee received gifts from NRI's and stated that same was received due to his financial difficulty which was found to be incorrect and further, he could not provide details of said donees, penalty levied under section 271(1)(c) was justified
Assessee's failure to explain shortage of finished goods would be deemed as an admission of clandest
Excise & Customs : Non-furnishing of explanation of shortage of finished goods and payment of duty thereon is an admission by assessee that goods found short had been removed clandestinely without duty; hence, same is liable to penalty and method used for clandestine removal of goods is not required to be explained by department
E-invoices downloaded via internet are eligible docs to claim ST refund if they contain relevant det
Service Tax : Computerised invoices downloaded through internet are eligible documents for claiming refund of service tax paid on services used for export, if they contain all relevant details, establishing availment of service used in export of goods
ITAT deletes sec. 41(1) additions as assessee was making efforts to repatriate liability to its hold
IT : Where holding company located abroad confirmed unsecured loan given to assessee and, assessee was also making efforts to repatriate its dues, amount in question could not be added to assessee's income by invoking provisions of section 41(1)
Allottee couldn't allege unfair practice against developer if it didn't comply with terms of allotme
MRTP: Where complainants had failed to abide by general conditions and terms and conditions of allotment, they had disentitled themselves from contending that respondent corporation was guilty of restrictive/unfair trade practice
Sunday, 1 February 2015
New evidences, not furnished before AO, need not be considered at interim stage
Excise & Customs : New evidences, which were not furnished before adjudicating authority, have to be considered on merits and hence, same cannot be considered by Tribunal while passing interim order
ITAT directed TPO to calculate AMP exp. after considering principles laid down in LG Electronics' ca
IT/ILT : Where assessee claimed AMP expenses, matter was to be restored to TPO to consider principles laid down in Asstt. CIT v. L.G. Electronics India (P.) Ltd. [2013] 35 taxmann.com 344/148 ITD 671 (Delhi) in which directions to calculate said expenses was given
ITAT directs lower authorities to follow Merilyn shipping's case until reversed by jurisdictional HC
IT : The Tribunal held that no disallowance should be made under section 40(a)(ia) for TDS default in relation to amount paid during the year.It held that ITAT Special bench's decision in the case of Merilyn Shipping & Transports v. ADIT [2012] 20 taxmann.com 244 (Visakhapatnam) is binding on lower authorities until and unless the same is reversed by the Hon'ble jurisdictional High Court.
[DGFT Public Notice] : Online IEC applications: Operationalisation of the Public Notice No. 76 dated 27/11/2014.
To be published in the Gazette of India Extraordinary Part-I, Section (I)
Government of India
Ministry of Commerce & Industry
Department of Commerce
Udyog Bhawan, New Delhi
Public Notice. 83/ (RE-2013)/2009-2014
Dated the 30th January, 2015
Subject: Online IEC applications: Operationalisation of the Public Notice No. 76 dated 27/11/2014.
The operationalisation of the mandatory system of online applications for IEC with effect from 01/01/2015 was notified vide Public Notice 76 dated 27/11/2014. This was, however, kept in abeyance vide Public Notice No. 80 dated 6.1.2015.
2. Now, in exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy (2009-2014), the Director General of Foreign Trade hereby notifies operationalisation of the new system of applications for online IEC with effect from 01/02/2015. Applicants having access to net-banking facility with the following ten notified banks, namely, i) HDFC Bank; ii) ICICI Bank; iii) Bank of India; iv) State Bank of India; v) Central Bank of India; vi) Punjab National Bank; vii) IDBI; viii) Axis Bank; ix) Union Bank of India; x) Oriental Bank of Commerce, can apply online in the format notified vide Public Notice No. 76 (RE-2013), dated 27/11/2014 as per detailed guidelines laid down in Public Notice No.79 dated 31/12/2014.
3. Applicants who do not have access to net banking through the above banks can submit manual applications for IEC as before (existing prior to 01/02/2015), in physical form in the existing format (ANF-2A) and procedure with documents as prescribed therein, until further notice.
4. Effect of this Public Notice: The new system of online applications for IEC as per the Public Notice No. 76 (RE-2013)/2009-2014 dated the 27 th November, 2014 will be operationalized with effect from 01/02/2015. The facility of submission of application in manual mode will, however, continue for those applicants who do not have access to net banking facility with the ten notified banks , as listed in Para 2 above. Applicants, applying for IEC in manual mode, may utilise the existing format (ANF 2A, as existing prior to 01/02/2015) and procedure to submit applications to RA’s office with documents as prescribed therein.
(Pravir Kumar)
Director General of Foreign Trade
E.Mail:dgft@nic.in
[F.No.01/93/180/20/AM-13/ PC-2(B)]
Leasing out of land to affiliate on reciprocity basis to fulfil trust's objectives doesn't bar sec.
IT : Leasing out of land to affiliate on reciprocity basis to fulfil trust's objectives doesn't bar sec. 80G relief
Department couldn't levy penalty without any finding on aspect of willful non disclosure by assessee
CST & VAT : Tamil Nadu VAT - Where Assessing authority levied penalty upon assessee under section 16(2), in absence of clear finding on aspect of wilful non disclosure, penalty could not be levied
Despite Exports To Eu, Alphonso Mangoes May Remain Affordable
Alphonso mangoes may come to market at reasonable prices this season following an increase in mango production this year.
"Prices are not going to go up compared to last year," said Arvind Morde, a third-generation mango exporter in Crawford Market.
"In Maharashtra, mango cultivation is increasing year after year, and growers are happy to switch over from other crops," said Morde. He said that declining fuel prices would further keep prices stable.
Mango-lovers feared that the fruit would become costlier, because the European Union recently lifted its ban on import of Indian mangoes.
The European Union's temporary ban had come into force on 1 May 2014 and was to remain effective until December 2015, after authorities in Brussels found consignments infested with fruit flies that they feared could damage European salad crops.
Ratibhai M Shah, a resident of Om Dariya Mahal in Nepean Sea Road, said, "In our family, alphonso mangoes are among the favourite fruits. Every season we not only consume them, but also distribute them among our family members in India and abroad. Generally we buy around 20 boxes of four dozen each every season. If prices hold up, we will stick to the same number. But if prices of mangoes go up this season, we would have no choice but to curtail our purchase to 16 boxes."
Source:- dnaindia.com
Sugar Mills In India Seek Government Help To Dispose Of Supply Surplus
Struggling sugar mills in India should benefit from a fixed-pricing mechanism for fuel ethanol but still need government support to export surplus sugar, the Director General of the Indian Sugar Mills Association said on Sunday.
Ethanol is produced in India from molasses, a byproduct of sugar production, and the government introduced the mechanism in December aiming to raise output to help curb fossil fuel imports.
"Fixed ethanol pricing is a positive development," Abinash Verma told the Kingsman Platts Dubai Sugar Conference.
Falling sugar prices in India linked to a supply glut have taken a heavy toll on sugar mills.Last year one of India's largest sugar mills, Mawana Sugars Ltd, defaulted on 2.5 billion rupees ($40 million) in outstanding loans from a consortium of lenders, an official from the company said.
The surplus has depressed local prices, which could fall further unless the government provides incentives for raw sugar exports.Verma said he expected the government to issue a decision on export subsidies this week.
"It is almost through so we expect and we pray it will happen this week," he told Reuters.Subsidies helped Indian raw sugar exports last year and mills have been waiting for news of this year's subsidy since the start of the crushing season in October.
Verma said India's sugar production for the 2014-2015 season is expected at 26 million tonnes while consumption will be between 24.7 million tonnes and 24.8 million tonnes.
"From what we are hearing the government is proposing around 1.4 million tonnes of assistance for raw sugar. Without government support we would not be in a position to export so whatever government will announce that is the kind of upper ceiling of what we can export," Verma said.
Verma said government policies which impose high prices for the cane used to produce sugar had helped create the surplus and government assistance was therefore needed to get rid of it.
"There is a need for government support for the disposal of surplus sugar," he said.India exported more than 1 million tonnes of raw sugar in 2014 and mills had hoped to export up to 2 million tonnes this year.
Source:-economictimes.indiatimes.com
Cbec Tells Officers To Go Easy On Issuing Summons
In a bid to quell harassment of taxpayers, especially the top management in India Inc, the Central Board of Excise and Customs (CBEC) has instructed its field officials (from service tax and excise units) to refrain from issuing summons to gather information.
The recently issued written set of instructions by the CBEC requires field officials to send politely-worded letters if these would also serve the purpose of gathering information or documents required in the course of a service tax or excise inquiry or investigation.
Under Section 14 of the Central Excise Act, summons can be issued to taxpayers when a service tax or excise inquiry is underway. It can be issued for recording statements or even for collecting evidence or documents.
The 'summoned' person, who can even be a CEO with no hands-on experience in tax issues, is required to appear before the excise or service tax authorities with the required information or documentary evidence. Generally, a limited time frame of a few days is made available to gather and submit a host of information. Such powers also give unscrupulous officials an opportunity to arm-twist taxpayers.
Industry representatives brought to the notice of the CBEC that summons were being issued in a routine manner by field officials to top senior management in India Inc to gather even basic information or documents. Such action often led to harassment. In this backdrop, CBEC has now issued written instructions to ensure summons are issued only when absolutely necessary.
At a policy level, similar instructions had been issued even in earlier years -in 1989 and later in 2007. These circulars had also called for discretion in issue of summons by excise and service tax officials.
CBEC's instructions seek to strike a balance between adopting a tax-friendly approach and the need to gather information in the course of a tax inquiry. It states: "While the evidentiary value of securing documentary and oral evidence under the legal provision can hardly be over emphasized, nonetheless, it is desirable that summons need not always be issued when a simple letter, politely-worded, can also serve the purpose of securing documents relevant to the investigation," The instruction also explicitly states that senior management (such as CEOs, CFOs or general managers of large corporations or PSUs) should not generally be summoned. These persons need to be summoned only when there are indications of their involvement in the decision-making process that led to loss of tax revenue.
Sunil Gabhawalla, chartered accountant, says, "Issue of this notification is a welcome step. However, there is an element of subjectivity involved, a CFO could be regarded as a decision-making authority -whose decision led to a loss of revenue. In this context, the CFO could still be summoned. It remains to be seen how well field officials understand the spirit behind this notification."
In addition, the power to issue summons requires prior written permission of an assistant commissioner, with reasons for issue of the summons to be made in writing. Gabhawalla adds, "Perhaps for large companies, where summons are sought to be issued to the CEO or any other senior ranking official, the power could have been vested with the commissioner."
Source:- timesofindia.indiatimes.com
Rupee Weakens Past 62 Per Dollar
The Indian rupee on Monday weakened past the 62 mark against the dollar, tracking losses in the Asian currencies market. The weak local equity markets also muted down sentiment.The local currency opened at 62 per dollar. At 9.17am, the rupee was trading at 61.94 per dollar, down 0.12% from its previous close of 61.87.India’s benchmark equity index, BSE Sensex, was trading at 29,119 points, down 0.33%.
Most of the Asian currencies were trading weaker against the dollar. The South Korean won was down 0.78%, Indonesian rupiah fell 0.42%, Taiwan dollar was down 0.41%, Japanese yen fell 0.23%, Philippines peso fell 0.23%, China renminbi fell 0.15%. However, Thai baht was up 0.27%.
Reserve Bank of India (RBI) will present its bi-monthly policy on 3 February. RBI is widely expected to keep interest rates on hold after a off-policy rate cut in January. Rates are likely to head lower from here. However, all eyes will be on the central bank’s guidance regarding the quantum of rate cuts with bets ranging from 50 basis points to 100 basis points during the course of 2015, Mint reported.
The yield on India’s 10-year benchmark bond stood at 7.682% compared with its Friday’s close of 7.692%. Bond yields and prices move in opposite directions.Since the beginning of this year, the rupee has strengthened 1.73% against the dollar, while foreign institutional investors have bought $2.02 billion during the period from local equity markets and bought $3.34 billion from debt markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.785, down 0.02% from its previous close of 94.804.
Source:- livemint.com
Logistic industry following 50:50 revenue sharing model for cargo handling services complied with AL
IT/ILT : In logistics and freight forwarding industry, international transaction benchmarked on the basis of 50:50 revenue sharing model complies with the arm's length principle
Appeal relating to 'rate of duty' on clearances by 100% EOU to DTA was not maintainable before HC
Excise & Customs : Where question raised by assessee (being 100 per cent EOU) is directly and proximately relating to rate of duty applicable to goods cleared to DTA, an appeal in said matter would not lie before High Court
Accused acquitted on charges of cheque dishonouring as complainant had no source to lend such huge s
Negotiable Instruments Act: Where complainant had no source of income to lend a sum of Rs. 14 lakhs to accused and he failed to prove that there was legally recoverable debt payable by accused to him, accused was to be acquitted for alleged offence under section 138
Saturday, 31 January 2015
Non-authorised service station wasn't liable to pay ST on repairs or maintenance of any part of moto
Service Tax : Non-authorised Service/maintenance centre or workshop doing maintenance or repairs of any 'part' of motor vehicle are excluded from scope of 'Management, Maintenance or Repair Services' and are not liable to service tax
BCCI to pay ST under reverse charge on payments made to foreign Cos for audio-visual coverage of IPL
Service Tax : Services received by BCCI from foreign media companies for coverage of Indian Premier League Matches by way of production of audio-visual coverage of the cricket matches are covered under 'Programme production services' and liable to service tax on reverse charge basis
Duty paid on non-excisable goods using Cenvat credit can't be allowed as refund to buyer, says Madra
Excise & Customs : Duty paid by manufacturer on non-excisable goods using Cenvat Credit cannot be allowed as refund to buyer because that would, in effect, amount to refund of credit, which is not permissible
HC set aside pre-deposit order as it was passed by Tribunal without considering plea of financial ha
Excise & Customs : Where Tribunal ordered pre-deposit without considering prima facie merits, contentions raised by assessee and plea of financial hardship, High Court remanded matter back to Tribunal
Maintenance of 'parts' of motor vehicle by non-authorised service stations, not liable to ST under M
Service Tax : Non-authorised Service/maintenance centre or workshop doing maintenance or repairs of any 'part' of motor vehicle are excluded from scope of 'Management, Maintenance or Repair Services' and are not liable to service tax
BCCI to pay service tax on payments made to companies for coverage/production of recordings of match
Service Tax : Services received by BCCI from foreign media companies for coverage of Indian Premier League Matches by way of production of audio-visual coverage of the cricket matches are covered under 'Programme production services' and liable to service tax on reverse charge basis
Writing off unrealized export proceeds without obtaining RBI's approval doesn't lead to denial of I-
IT : Where assessee had deducted and paid TDS on and before due date of filing its return of income, disallowance under section 40(a)(ia) could not be made
AO gets authority to make sec. 153A assessment once search is initiated even if no incriminating mat
IT : Assessing Officer gets jurisdiction for passing orders under section 153A once search is initiated, even if any incriminatory material is found or not during course of search action
Assessee who had consciously disregarded its obligation to pay tax wasn't entitled to concessional r
CST & VAT : Karnataka VAT - Where Assessing Authority levied penalty upon assessee under section 12B(4) for non payment of tax, since assessee consciously disregarded its obligation to pay tax, it was disentitled to a concession in levy of penalty by exercise of discretion
HC nods to opinion of ICAI of removing CA's name from register of members for 5 years due to miscond
Chartered Accountants Act: Recommendation of ICAI to punish respondent-chartered accountant found guilty of misconduct was accepted with an instruction to ensure that such complaints were dealt within a time bound manner
Designing and developing software for billing system is outside the ambit of Business Auxiliary Serv
Service Tax : Designing and development of software for billing system does not amount to billing services and is not covered by Business Auxiliary Services; it is liable to service tax under 'Information Technology Software services' only from 16-5-2008
SC: Retro levy of sales tax on works contract of processing and supplying of photos is constitutiona
CST & VAT : Processing and supplying of Photographs, Photo Prints and Photo negatives is works contract in which State legislature is empowered to segregate the goods part and impose sale tax thereupon by virtue of Article 366(29A); Levy was first introduced in post 46th Constitutional Amendment period hence retrospective effect is also valid
Govt. revises excise duty on branded diesel; specifies new method to levy excise duty
EXCISE & CUSTOMS LAWS : Section 5A of the Central Excise Act, 1944 - Power to Grant Exemption from Duty of Excise - Exemption to Specified Excisable Goods - Amendment in Notification No.12/2012 - C.e., Dated 17-3-2012
Rent-a-cab services provided at hotels by travel desks of transport Cos couldn't be taxed in the han
Service Tax : Rent-a-cab services provided by travel desks of various transport companies at various hotels, cannot be taxed in hands of hotels; such services are liable to tax only in hands of service providers
Valuation made by customs authorities should be a guiding factor for TPO for making TP adjustment
IT/ILT : Trading functions having same FAR and having closely linked transactions are to be taken as a whole and not separately
No revision by CIT if AO had accepted genuineness of agricultural income after making detailed inqui
IT : Where Assessing Officer accepted genuineness of agricultural income shown by assessee after making necessary inquiry, no revision order could be passed under section 263
Friday, 30 January 2015
Net profit rate to be fixed on basis of past tax history of assessee, value of contract and price of
IT : Discretion to determine net profit rate vested in authorities must be exercised on basis of relevant factors which are past tax history of assessee, an appraisal of value of contract, price of raw material, labour etc.
CIT(A) rightly deleted addition of undisclosed income after allowing AO to cross-examine author of s
IT: Where Commissioner (Appeals) not only examined author of seized document but also allowed Assessing Officer to cross-examine said author, there was no perversity or error of law apparent on face of record in order passed by Commissioner (Appeals) deleting addition of undisclosed income
Manpower supply services for cleaning factory, procuring material and educating suppliers are input
Cenvat Credit : Manpower supply services for : (a) cleaning of sugar mill, (b) supply of sugarcane to factory, its weighment and unloading at factory; and (c) cane area survey, sugarcane development by educating farmers by various means to get good quality sugarcane, are eligible for input service credit
Order passed by AO after one month from end of month in which direction of DRP was received would be
IT/ILT : Assessment order passed after expiry of one month from end of month in which direction of DRP was received, was to be regarded as invalid being barred by limitation in terms of section 144C(13)
Sec. 153C block assessment quashed as AO failed to record satisfaction that seized docs belonged to
IT: 'Sine qua non' for initiating action under section 153C is recording of objective satisfaction by Assessing Officer that articles or documents which are seized or requisitioned belong to a person other than person searched
'Resale Price Method' was to be adopted if goods purchased from AE were sold to non-AE without any p
IT/ILT: In case of distribution or marketing activities when goods are purchased from associated entities and sales are effected to unrelated parties without any further processing, then, RPM (resale price method) is most appropriate method to determine ALP of said transaction
No penalty when assessee had wrongly paid taxes at concessional rate due to bona-fide belief
CST & VAT : CST - Where assessee entered into a contract for construction of bridge and in certificate of registration stores material, consumables, etc. were mentioned and during year it purchased hut material against form 'C', imposition of penalty under section 10(b) read with section 10A on plea that assessee had unauthorisedly purchased hut material against form 'C' was not justified
No complaint of cheque dishonour against a director if he wasn't in charge of business of Co. at rel
Negotiable Instruments Act : A director, who was not in charge of and was not responsible for conduct of business of company at relevant time, will not be liable for an offence under section 141
Tribunal has no jurisdiction to entertain appeal against drawback related matters decided by Commiss
Excise & Customs : No appeal lies to Tribunal in respect of any order of Commissioner (Appeals) for payment of drawback, even if order of Commissioner (Appeals) was passed without proper jurisdiction; same must be challenged before proper forum
India Ahead Of China In Readymade Garments Exports
Amid concerns over several larger overseas buyers seeking reduction in prices in the wake of a drop in cotton prices, here's some silver lining for garment exporters.
Export of readymade garments from India has grown faster than those shipped from China for a bulk of 2014, although the rise is on a much smaller base. According to UN Comtrade data, during January-October 2014, India's garment exports rose 14.6% to $14 billion. In contrast, exports from China were 6.5% higher at $145 billion, which in value terms is 10 times higher.
The news will come as some sort of a relief to Indian exporters, many of whom have been asked to reduce costs by 6-8% by their overseas buyers, who want a share of the higher margins due to a steep fall in cotton prices, which account for a major chunk of the overall costs.
The strong growth in recent months has, however, made the exporters confident that the garment sector will grow by around 20%. "If we go by this projection, our garment exports will be reaching an ambitious target of achieving exports of $ 37.3 billion by 2018-19. In this financial year (April- December 2014), India's garment exports kept growing at the rate of 15%. This impressive growth is a clear cut indication that India is emerging as one of the top sourcing and compliant destinations for the buyers in the world," AEPC chairman Virendra Uppal said.
Source:- timesofindia.indiatimes.com
India's Raw Sugar Exports May Halve On Export Incentive Delay
India's raw sugar exports could halve this year as mills wait for the government to give the go-ahead for an increased production subsidy, traders said, potentially supporting depressed global prices.
India exported more than 1 million tonnes of raw sugar in 2014 and mills had hoped to export up to 2 million tonnes this year, taking advantage of a sales window before leading exporter Brazil comes to the market.
A delay in the expected incentives could help Brazil and Asia's biggest exporter Thailand grab a greater share of the world market, and support the benchmark New York sugar price that is struggling after losing 12 percent in 2014.
Subsidies assisted Indian raw sugar exports last year and mills have been waiting for news of this year's subsidy since the start of crushing season in October.
Government sources earlier this month said India was considering giving 4,000 rupees a tonne in subsidies for raw sugar exports, up from 3,300 rupees last year.
Prime Minister Narendra Modi's cabinet has so far failed to vet the plan, but could approve the subsidy as early as next week, trade and government sources said.
Most Indian sugar mills believe that the delay means mills will not be able to meet plans to ship out large quantities of raw sugar.
"India has nearly lost an opportunity due to the delay in approving the subsidy," said Kamal Jain, managing director of Kamal Jain Trading Services, a brokerage based in the western city of Pune.
"The window for exports has narrowed. From April shipments will start from Brazil. It is not possible to compete with Brazil. Even competing with Thailand is difficult."
Brazilian sugar starts arriving from April, while Thai sugar has already started trickling in.
India could still export 500,000-600,000 tonnes of raw sugar this season if the subsidy is approved next week, said a Mumbai-based official with a global brokerage.
India has amassed large sugar stockpiles following five years of surplus output, but weak global prices make it uneconomic for mills, which produce only white sugar for domestic use, to export without subsidies.
New Delhi exported 2.1 million tonnes of sugar in 2013/14, including over a million tonnes of raws, trade and industry estimates suggest. Most of the raws went to standalone Asian and African refineries for conversion into whites.Mills will not start raw sugar production until the government gives the subsidy.
Source:- reuters.com
Asia Grains-Australian Wheat Prices Fall, India's Export Hopes Fade
Australian wheat prices took a hit this week because of weak demand and falling global prices, which will make it difficult for India to export some of its burdensome stocks, traders said.
Australian prime wheat was quoted at $272 a tonne into Southeast Asia, including cost and freight (C&F), while standard wheat was offered at around $265 and high-protein hard wheat at $310, in each case around $15 a tonne down from last week.
Indian wheat, which competes with Australia's standard wheat, was priced at around $275-$280 a tonne for Southeast Asia although no deals have been reported.
"We are expecting Australian wheat to start becoming competitive with the fall in prices this week," said one Singapore-based trader. "India might find it tough to sell."
There was talk of India resuming wheat exports after a gap of six months earlier in January after a rally in global wheat prices and a tax on Russian exports.
But benchmark Chicago Board of Trade wheat futures have slid almost 14 percent in January, the biggest monthly decline in more than three years. Wheat prices jumped by more than a fifth in the final quarter of 2014.
On top of the lower international prices, a decline in freight rates will make it even more difficult for Indian wheat to compete in Africa and the Middle East.
"The biggest advantage India had was lower freight costs in shipping from India," said one New Delhi-based grains trader. "This is gone as freight rates have fallen with lower oil prices."
U.S. crude oil futures have lost more 50 percent of their value since the middle of last year because of slowing global demand and a supply glut.
The bulk freight rate from India to Yemen is quoted at around $14-$15 a tonne, down from $16-$18 a tonne earlier, while the cost of shipping from Australia to Yemen has seen a bigger drop to $22-$25 a tonne from $35.
"The drop in freight costs from India has not been as much as we have seen from other origins," the New Delhi trader said.
In the feed grain market, South Korea has been snapping up cargoes of corn, which has dropped almost 7 percent this month.
The country's largest feedmaker, Nonghyup Feed Inc, purchased about 255,000 tonnes of optional-origin corn in a tender this week. The tender for up to 280,000 tonnes was for arrival in July and August.
Source:- reuters.com
India’S Soymeal Exports Set To Hit 26-Year Low In 2014-15
India’s soymeal exports are set to hit a 26-year low in the 2014-15 year ending March as easing of sanctions against Iran has allowed the key buyer to opt for cheaper South American supplies, industry officials said.
According to the country’s biggest soybean processor Ruchi Soya Industries Ltd, India’s 2014-15 soymeal exports could drop to 800,000 tonnes, which is the lowest since 1988-89. Since Soymeal from India costs 5-10% more than supplies from Argentina and Brazil, top buyers of Indian soymeal such as Iran and Japan are turning away.
India exported 140,400 tonnes of soymeal to Iran over April to December last year, against record shipments of 1.23 million tonnes in 2013-14.
Source:- customstoday.com.pk
Rupee Trades Lower At 61.96 Per Dollar
The Indian rupee on Friday erased all the morning gains and was trading marginally lower against the dollar tracking losses in the local equity market.
At 2.06pm, the rupee was trading at 61.96 per dollar, down 0.15% from its previous close of 61.87. The local currency opened at 61.84 per dollar and touched a low of 61.97—a level last seen on 16 January.
India’s benchmark equity index, BSE Sensex, was trading at 29,275 points, down 1.7% or 500 points lower.
Asian currencies were trading mixed against the dollar. The Japanese yen was up 0.47%, Singapore dollar 0.28%, Thai baht 0.27%. However, Indonesian rupiah was down 0.71%, Taiwan dollar 0.07%, Philippines peso 0.07%, China renminbi 0.06%.
The yield on India’s 10-year benchmark bond stood at 7.708% compared with its Thursday’s close of 7.713%. Bond yields and prices move in opposite directions.
Since the beginning of this year, the rupee has strengthen 1.82% against the dollar, while foreign institutional investors have bought $1.72 billion from local equity markets and bought $3.05 billion from debt markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.565, down 0.23% from its previous close of 94.782.
Source:- livemint.com
Subscribe to:
Posts (Atom)