Profit arising to a German Co. from high sea sale of equipment to Indian Customer isn’t taxable in I

IT/ILT: Profit arising to a German Co. from high sea sale of equipment to Indian customer couldn't be taxed in India even if equipment was subjected to inspection in India.

Cost of reworking reimbursed to NR wasn't FTS as re-working done abroad had no link with business of

IT/ILT : Where assessee engaged in manufacturing and export of printed circuit boards, paid certain repairing expenses to its parent company located abroad to complete manufacturing process before selling its products to final customers, since activities carried out outside India had no connection with assessee's operations in India, payment in question was not taxable in India under section 9(1)(vii)

Service provider is liable to pay service tax even when service recipient doesn't reimburse service

Service Tax : Service tax liability is not dependent on whether service recipient makes payment of service tax or not; taxable event is rendering of service and merely because service recipient did not pay service tax liability initially, that would not take away/obliterate liability on service provider to discharge tax

Bir Pleads India To Push Effective Date Of New Scrap Import Regulations

The Bureau of International Recycling (BIR) has requested the Indian authorities to extend the effective date of implementation of the new scrap import regulations. In a letter written to the Indian Ministry of Commerce and Industry, the world trade body has requested to extend the transition period to comply with the pre-shipment inspection rules by another four months. Currently, the new rules are set to become effective July 1st onwards.

BIR, in collaboration with the Metals Recycling Association of India (MRAI) and the Institute of Scrap Recycling Industries (ISRI) has pointed out that more time is required for Pre-Shipment Inspection Agencies (PSIAs) to prepare themselves to meet the proposed certification requirements.

BIR, in its letter, noted that large shredders around the world who maintain high standards of quality and safety should be either carry out self-inspection or be exempted from the certification requirements. BIR also appreciated Indian authorities for installation of new state-of-the-art radioactivity detection devices at major ports.

With reference to Public Notice No. 12/2015-20 issued by India’s Directorate General of Foreign Trade (DGFT), PSIAs in source countries are required to submit photograph(s) or video clipping of the place of inspection with PSIA inspector and representatives of exporter or importer. The proposed rule also requires photograph(s) or video clipping of the testing instruments used for inspection. Additionally, photograph(s) or video detailing the process of stuffing of containers displaying the container numbers must be submitted for all scrap shipments destined to the country.

The Bureau of International Recycling (BIR) is a global recycling industry association representing more than 700 companies from the private sector and 40 national trade federations from 70 different countries. The organisation serves as a platform to promote business relations and recycling among industry and to liaise with policy makers.

Source:metal.com

Indian Rupee Rallies 25 Paise Against Dollar

The rupee appreciated 25 paise to trade at 63.87 against the dollar in early trade on Thursday at the Interbank Foreign Exchange after the American currency weakened overseas amid sustained selling of the greenback by exporters and banks.

Forex dealers said the dollar’s weakness against euro and other currencies overseas after the Fed disappointed some who had hoped for a clearer signal on the timing of an interest rate increase supported the rupee.

The US Fed kept its near-zero benchmark interest rate unchanged. Furthermore, a higher opening of the domestic equity market influenced the uptrend in the rupee, they added.

The rupee had closed 14 paise higher at 64.12 against the dollar on Wednesday on fresh selling of the greenback by exporters amid weakness of the American currency in overseas markets.

Meanwhile, the benchmark BSE Sensex regained the 27,000-mark by surging 200.65 points or, 0.75 per cent, to 27,033.31 in early trade on Thursday.

Source:financialexpress.com

Raj VAT: Works contract having major portion of laying of pipeline attracts exemption fee of 2.25%

CST & VAT : Rajasthan VAT - Where assessee was awarded works contract for sewerage treatment plant and work awarded to it was composite agreement of contract and major activity undertaken by it was laying of pipeline with material, assessee would fall under Item No. 3 of Notification dated 11-8-2006 and was liable to pay exemption fee at rate of 2.25 per cent

Interest paid on partner's cap was allowable if cap was used to construct property from which rental

IT: Rental income received from unsold portion of property constructed by assessee a real estate developer, is assessable as income from house property

Celebration by coaching institute for successful students after completion of coaching isn't an inpu

Cenvat Credit : A commercial training or coaching centre cannot take input service credit of : (a) celebrations meant for successful candidates; (b) repair and maintenance of its motor vehicles; and (c) travelling expenses incurred for business tours

No denial of sec. 80P relief to society merely due to receipt of small portion of revenue from non-m

IT : Where assessee-co-operative society could not be regarded as 'Co-operative Bank' on, mere fact that an insignificant proportion of revenue was coming from non-members, and thus, was entitled for deduction under section 80P(2)(a)(i)

Allowance of service tax exemption only to theatre artists but not to film artists isn't discriminat

Service Tax : Theatre and films are not identical, hence, service tax exemption to 'theatre artists' in folk/classical forms of art but not 'film artist' cannot be regarded as violative of article 14, as the same is aimed at giving support to native art and culture in compliance with obligation of State under article 29

Sec. 14A disallowance has to be invoked even for computing book profits to determine MAT liability

IT : Where assessee declared an income being profit on sale and development of land in respect of a project carried out by assessee, even though said land belonged to sister company of assessee, assessee would be entitled for deduction under section 80-IB

RBI norms for classifying an asset as NPA aren't unconstitutional, rules Delhi High Court

Banking Regulation Act : RBI is empowered to issue guidelines for asset classification and, therefore, guidelines issued by RBI for classifying an asset as non performing asset are valid

Salary paid to NR director for services rendered to US based branch of Co. wasn't taxable in India

IT : Where amount credited in profit and loss account was net of gross receipts after deducting various expenses and entire receipt in TDS certificate had been duly considered by assessee, addition made on difference between TDS certificate and income credited was not justified

TPO couldn't consider ALP of technical service fee as nil without considering break-up of cost incur

IT/ILT : Where TPO made addition to assessee's ALP by taking value of technical service fee paid by assessee to its AE at nil, since in order to prove genuineness of payment in question, assessee had given breakup of costs incurred by parent company and basis of apportionment but same had not been considered at all by TPO, impugned addition was to be set aside and, matter was to be remanded back for disposal afresh

Apex Court directs AO to consider claim of partial exemption claim when full exemption was denied to

Excise & Customs : Where assessee was denied full exemption but sought to claim another partial exemption whereby rate of duty was 40 per cent, Supreme Court remanded matter back for consideration of partial exemption subject to deposit of 40 per cent of duty

Steps To Arrest Decline In Exports Should Be Taken: Fieo

While expressing concern on sharp decline in India's export for May 2015, FIEO Southern Region Chairman, A Shaktivel said that
continuous decline in export need to be arrested at any cost.

In a statement, Shaktivel urged the Centre to take pro-active step and address the concerns of the Industry especially the issue of reintroduction of Interest Subvention Scheme and fine tuning of SFIS (serviced from India Scheme) benefits.

He also demanded that availability of fund under Market Development Assistance and MAI should be increased immediately to help MSME exporters to do vigorous marketing in potential and emerging markets, as more than 45 per cent of India's exports are from this segment.

Even though data on sectors which have shown negative trend in export was not available now, Shaktivel urged the Government to provide special focus for export growth of Textiles and Ready made Garments, Leather, Auto components, Pharmaceuticals and Chemicals so that the negative trend can be reversed in the coming months.

Source:economictimes.indiatimes.com

 

Outdoor catering services are ineligible for credit to extent of cost of food recovered from employe

Cenvat Credit : In case of outdoor catering services availed in factory canteen, proportionate credit, to extent it is embedded in cost of food recovered from employee/beneficiary, is not admissible to assessee

India Yarn Prices: Domestic And Export Markets (Weekly Report)

Yarn prices are relatively firm in India, although production continues rising in line with the capacity expansion. Cotton yarn output has further increased in April, as reflected by our charts and tables.

Our comprehensive review of Indian yarn markets covers the domestic markets in Ludhiana (Punjab) and Indore (Madhya Pradesh), with a wide range of products and counts, including cotton yarns (carded and combed), polyester spun, polyester-cotton, polyester-viscose and polyester-acrylic. Export market prices are also available for both cotton and polyester-cotton.

Source:emergingtextiles.com

“Removal Of Benefits To Hit Exports”

The cotton textiles export promotion council (TEXPROCIL) has said that the removal of benefits on exports to African countries in the new foreign trade policy will affect shipments of value added products like cotton dyed and printed fabrics, according to media reports.

"The new Foreign Trade Policy 2015-20 has removed all benefits on exports to African countries. This has had a serious impact on exports of value added products like cotton dyed and printed fabrics and made-ups to African countries," TEXPROCIL chairman R K Dalmia said in a statement in Mumbai.

"We urge the government to include exports of value added products to African countries in the new Foreign Trade Policy 2015-20," Dalmia added.

The newly introduced MEIS (Merchandise Exports from India Scheme) has allowed a duty credit scrips of 2 per cent, 3 per cent and 5 per cent to exports of notified products to certain specified countries, he said.

However, Dalmia said, the scheme does not include exports of value added and labour intensive products like cotton dyed and printed fabrics and made-ups to different African countries like Mauritania, Mali, Dar Es Salaam, Burkina Faso, Guinea Bissaou, Niger, Benin, Angola, Senegal, Togo, Ghana, Kenya and Tanzania, which is a major blow to the exporters to the African region.

Earlier, in the Foreign Trade Policy 2009-14, exports of cotton fabrics and made ups to many African countries were granted duty credit scrips at 4 per cent of the Free On Board (FOB) value of exports in general and in some cases 7 per cent.

The withdrawal of these benefits on exports of cotton fabrics and made ups to African countries has put the exporters into a huge dilemma, he added.

Dalmia said the share of textiles exports to African region is less than 5 per cent and there is huge potential to increase this share if adequate export benefits are extended.

Source:fibre2fashion.com

India’S Mango Exports To Remain Below 25,000 Tonnes This Year: Assocham

Export of mangoes from India might fall by up to 40 per cent in terms of quantity and might remain less than even 25,000 tonnes as unseasonal rains coupled with hailstorms between February-end and early-April lashed major mango producing areas across India thereby damaging the crop and causing dearth of 'export-quality' fruit, according to an ASSOCHAM analysis.

Mango exports have fallen significantly in recent years in quantity terms i.e. from 55,585 tonnes in 2012-13 to 41,280 tonnes in 2013-14 thereby registering a fall of about 26 per cent year-on-year (Y-o-Y)," according to the analysis based on a study titled 'Mango: Anxiety on production & export front,' conducted by the Agri-business council of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Even previously, exports of mangoes had fallen by over 12 per cent Y-o-Y i.e. from over 63,440 tonnes in 2011-12 to 55,585 tonnes in 2012-13. Though in terms of value, mango exports rose by about 26 per cent Y-o-Y i.e. from over Rs 209 crore in 2011-12 to Rs 265 crore in 2012-13. But the growth in realisation had fallen drastically from 26 per cent in 2012-13 to eight per cent in 2013 14.

However, export of mango pulp from India has risen both in terms of quantity and value by 18 per cent and 27 per cent respectively in 2013-14, further noted the ASSOCHAM analysis. UAE alone accounted for over 60 per cent of India's total mango exports followed by UK (16 per cent), Saudi Arabia (four per cent), Kuwait (three per cent) and Qatar (two per cent) in 2013-14. While Kuwait registered a whopping 456 per cent jump Y-o-Y followed by Bharain (28 per cent), Saudi Arabia (3.4 per cent) and UK (2.3 per cent), US did not register any growth in imports of mango (quantity-wise) from India, rest all countries registered negative growth in 2013-14.

"Apart from poor mango production due to damage caused by unseasonal rains in top mango producing states early this year, increase in freight costs is also proving to be a hurdle for mango exporters," said DS Rawat, national secretary general of ASSOCHAM. "Stiff competition from other mango producing countries, together with dearth of proper packaging and storage facilities in major mango growing regions are other key concerns of the exporters," said Rawat.

Mango production in India might decline this year by 35-40 per cent, due to crop damage following unseasonal rainfall in major growing states, noted the ASSOCHAM study.

With a share of over 23 per cent, Uttar Pradesh is ranked India's leading mango producing state as of 2013-14 followed by Andhra Pradesh (15 per cent), Karnataka (9.5 per cent), Telangana (nine per cent) and Bihar (seven per cent) which remained top five states in this regard.

Source:timesofindia.indiatimes.com

Softly, Softly, India's Influence Rises In Crude Oil

Almost unnoticed, India is starting to exercise increasing influence on crude oil markets in Asia. The South Asian nation has doubled imports to almost 4 million barrels per day (bpd) in the past decade, in the process overtaking Japan, Germany and South Korea to become the world's third-biggest importer behind China and the United States.

Its importance to the outlook for crude oil over the next decade becomes even more apparent in the light of slowing demand growth in China, the likelihood of at best steady consumption in much of the developed world and declining demand in Japan.

Two recent events underscored the importance that India is assuming in Asian crude oil markets: the visit by a senior official of Saudi Arabia's state oil giant and talks between Indian refiners and Iraq over filling strategic storage.

The main news from the visit of Ahmed Al-Subaey, Saudi Aramco's executive director for marketing, to New Delhi last week was that the kingdom is ready to boost output in coming months to meet rising global demand.

That was information useful to market players, but what wasn't discussed in public was what the Aramco executive was talking about with the Indian oil officials he met.

It doesn't require much imagination to conclude that the Saudis are interested in expanding their relationship with India, given it is becoming the main driver of crude demand growth in Asia, something Al-Subaey acknowledged.

India imported 3.942 million bpd in the first four months of the year, a decline of 0.6 percent over the same period in 2014.

However, import growth was affected by refinery maintenance in April and it's expected to accelerate over the rest of the year, with full-year imports expected to exceed 4 million bpd.

Saudi Arabia supplied about 795,000 bpd to India in the first four months of the year, a gain of 4.6 percent over the same period last year.

But the Saudis will be well aware that their oil will face competition from Middle East rivals in coming months, especially if Iran is successful in getting Western sanctions relaxed and Iraq continues to pump more crude.

Iran shipped about 160,000 bpd to India in the first four months of 2015, a decline of 50.6 percent over the same period a year earlier. The Iranians will be targeting to get that market share back and reclaim their position as India's preferred Middle Eastern supplier.

The Iraqis increased their exports to India by 12.9 percent to about 555,000 bpd in the first four months, and seem determined to grab an increasing share.

Indian Oil Corp and Hindustan Petroleum Corp held talks earlier this month with Iraq's national oil company to buy 4 million barrels of Basra light crude oil for India's strategic petroleum reserves (SPRs), Reuters reported on June 3, citing three sources with knowledge of the discussions.

The talks centred around supplying 8 million barrels of crude for SPRs in the coastal city of Vizag in southern Andhra Pradesh state. Two other SPRs are expected to be completed by the end of the year, holding 29.3 million barrels.

However, even with that storage, India will only have reserves equivalent to about 13 days consumption, well below the 90 days the International Energy Agency mandates its members countries should hold. This means that in coming years India is likely to boost its storage capacity and thus import more oil than it consumes.

While not on the same scale as the SPR programme being undertaken by China, India will nonetheless be a driver of demand growth in Asia, most likely at a time when China has filled its SPRs and is transitioning its economy to a lower fuel intensity as it moves more to consumer-led growth and away from export-led industries.

In the current market, where oil is well-supplied and the Organisation of the Petroleum Exporting Countries (OPEC) and other major producers show little inclination to cut output, it won't surprise to see more exporters beating a path to New Delhi.

Source:deccanherald.com

Failure to mention PAN of a few deductees in TDS return due to their non-availability won't invite p

IT : No penalty imposable u/s 272B if deductor fails to mention correct PAN of a few deductees in quarterly e-TDS return Form 26Q which in fact were not available with deductor at the material time and deductor had nevertheless deducted TDS and deposited the same with Govt and obtained correct PAN numbers and filed revised statement on receiving show cause notice from the Department. These circumstances come within the scope of "reasonable cause" for non-compliance u/s 273B. Also, absent contuma

Sum received for making investment on behalf of payer couldn't be treated as gift under sec. 56

IT: Where assessee received certain sum from another person in pursuance of a general power of attorney for making investment in mutual fund on behalf of latter, said sum could not be assessed in hands of assessee under section 56(2)(vi)

Reimbursement not includible in value of services if it is paid to discharge legal obligation of ser

Service Tax : Reimbursements are includible in value of services, except where service recipient is having obligation, legal or contractual, to pay certain amount to any third party and reimbursement relates to said amount paid by service provider on behalf of service recipient

Interest on housing loan disallowed due to maximum limit of Sec. 24 couldn't be set-off against inte

IT : Housing loan interest in respect of Self Occupied Property in excess of Rs.1,50,000 shall be disallowed u/s 24(b) and shall not be allowed to be deducted from interest income from loan given shown under income from other sources head. It cannot be argued that if own savings had not been given as loan and been invested in house instead, there would have been no income from loan given nor there would have been interest liability on housing loan and thus both should be netted off

India’S Thermal Coal Imports Likely To Spike Owing To Poor Monsoon Rains

Indian thermal coal imports were expected to spike over the next few months, exceeding the 200-million-ton forecast for the current financial year, a senior government official has said.

Indian thermal coal import projections for 2015/16 have already been increased to 200-million tons, but shipments could well increase by between 15% and 20%, should rainfall be insufficient during the monsoon season.

Any tardy progress of the monsoon rains carried the risk of lower hydro-electricity generation and would put pressure on thermal power generation. At the same time, scanty rainfall would trigger a rise in demand for irrigation, which would increase electricity demand.

According to Indian Meteorological Department (IMD), monsoon officially arrived in the sub-continent on June 5 and so far, progress across the peninsula region of the country has been “sluggish”. In its updated monsoon forecast earlier this month, the IMD revised its estimate cumulative rainfall during the season at 88% of long-term average, down from 93% predicted before the onset of the rainy season.

According to data sourced from government agencies, Indian electricity generation during April 2015 was down 1% compared to yearly growth of 8.4% during 2014/15.

The data showed that current coal stocks available at the 100 major thermal power plants in the country was estimated at 20 days consumption of fuel, which was an improvement of about 11 days consumption around the same time last year. Pithead stocks with major supplier, Coal India Limited, were pegged at around 40-million tons.

However, even if coal imports were poised for a seasonal surge, there was a logistical logjam with stocks at various ports rising to 16-million tons.

Several officials with thermal power companies said that with the Indian rupee depreciating below the Rs64 to the US dollar, power companies were reluctant to blend more expensive imported coal with local fuel as it would increase cost of power generation which they would not be able to pass on to consumers.

The spurt in coal imports would also necessitate clearing of infrastructure and logistical logjams to negate risks of high port stocks and shortage at thermal plant sites.

According to a Coal Ministry official, besides from supply side issues, the government was also having to assess the rise in import bill despite soft international prices of thermal coal, since the depreciating Indian rupee would sharply increase the total import bill.

India’s coal import bill in 2013/14 was $14-billion, which increased to $16-billion in 2014/15. According to some private analysts, coal imports could escalate to about $22-billion owing to local currency depreciation even if current international thermal coal persist at lower levels.

Source:miningweekly.com

India's Gold Import Increases By 10.5% To Usd 2.42 Billion In May

With the increasing demand of yellow metal owing to its lower prices pushed India’s gold imports by 10.5 per cent in May from a year before.
 
Imports by India, the net importer of gold, stood at USD 2.42 billion in May, compared with USD 2.19 billion a year earlier, according to the latest official data.
 
Gold prices have been down by roughly 10 per cent from a year before. In April this year, the imports grew 78.33 per cent to USD 3.13 billion. 

The increase in gold imports directly impacts the current account deficit (CAD). The Reserve Bank and the government have maintained that the CAD level is comfortable, but the surge in gold imports might put some pressure on them. 

India is the largest importer of gold, which mainly caters to the demand of the jewellery industry.

Source:knnindia.co.in

Indian Rupee Opens Higher At 64.18 Per Dollar

The Indian rupee opened marginally higher at 64.18 per dollar on Wednesday against previous close of 64.24.

 

The dollar edges higher, as US housing data encouraged speculation that the Federal Reserve will soon raise interest rates and it was further strengthened by worries that Greece was tilting towards debt default dragged on the euro. The dollar index inches towards the 95 mark.

 

Himanshu Arora of Religare said, "The rupee is expected to depreciate against the dollar today, amid expectations of interest rate hike that may happen sooner than later. This will prompt foreign investors to sell their investments in emerging markets, including India and channel their investments back to the US."

 

"Recent selling by FIIs in Indian debt market may continue going forward and is expected to dent INR in the short term. Weakness in domestic equities may also keep INR under pressure. Range for the day is seen between 63.85-64.38/dollar," he added.

 

Source:moneycontrol.com

No additions under sec. 153A if no incriminating material is found during search

IT: No addition can be made in respect of assessments which have become final if no incriminating material is found during search

FEMA : HC quashes adjudication proceedings against petitioner on failure of ED to conclude proceedin

FEMA: Where there was unexplained delay of 19 years on part of Enforcement Directorate to conclude adjudication proceedings against petitioners, adjudication proceedings were to be quashed for lack of evidence

AO can determine actual cost of used asset after satisfying that its actual price is inflated for ul

IT: Where an asset before acquisition by assessee was used by another person for his business and Assessing Officer was satisfied that actual price of such asset had been inflated or deflated for an ulterior purpose, then Assessing Officer had power to reject such declared price and determine correct actual cost

Co. providing 2D/3D animation services isn't comparable with a Co. providing software development se

IT/ILT : A company engaged in services for 2D and 3D animation is functionally different from a company providing software development services

Electric panel board was taxable @ 12% w.e.f. 18-8-2001 under Tamil Nadu General Sales Tax Act, 1959

CST & VAT : Tamil Nadu VAT - Electrical panel board would fall under Entry No. 64 of Part C of First Schedule, attracting tax at eight per cent, till 17-8-2001 and thereafter it would fall under Entry No. 43 of Part DD of First Schedule, attracting tax at rate of 12 per cent

High Court orders mandatory pre-deposit as per new provision even when appeal was filed prior to Aug

Excise & Customs : Where assessee expressed its willingness to make pre-deposit in appeal (filed before 6-8-2014) as per section 35F (as amended from 6-8-2014), High Court permitted said pre-deposit

Vending fee payable to Govt. which will be used to repair machinery is covered under sec. 43B

IT: Vend fee collected by State Government from manufacturer for giving special benefit to repair or replace old machinery would be a 'fee' by 'whatever name called' to be allowed only on actual payment in previous year, relevant to assessment year

TRAI's directives to private mobile service providers to end differential tariffs in four States was

Telegraph Act: Classification of subscribers into two categories on basis of calls made by them from private network to another private network and from private network to BSNL/MTNL network was arbitrary as it failed to satisfy twin test for reasonable classification

Vending fee payable to Govt. for benefit on repair of machinery is covered under sec. 43B

IT: Vend fee collected by State Government from manufacturer for giving special benefit to repair or replace old machinery would be a 'fee' by 'whatever name called' to be allowed only on actual payment in previous year, relevant to assessment year

An investment advisor can't be compared with a merchant banker for TP study

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering investment advisory services to its Associated Enterprise, since one of comparables selected by TPO was engaged in qualitatively different and diversified business activities of merchant banking, impugned addition was to be set aside

SEBI specifies additional disclosure requirement by Cos under 'Share based employee benefits' norms

SEBI : Requirements Specified under SEBI (Share Based Employee Benefits) Regulations, 2014

Payment for use of technology without transferring license wasn't capital expenditure in nature

IT: Where assessee, entered into an agreement with a foreign company to manufacture and sell of its product in India, royalty paid for use of technology proportionate to volume of sales could not be treated as capital in nature

Assessee couldn't be asked to prove that its supplier had purchased goods legally

Excise & Customs : Under section 123, an assessee can be asked to prove validity of its source of purchase; assessee need not prove that its supplier had also made purchases through legal means

Compensation received on termination of agency agreement is taxable as business income and not capit

IT : Where consideration received by assessee was only towards termination of agency, income received by assessee was to be treated as business income and not as capital gain

Exports Contract 20.2% To $22.34 Bn In May; Trade Deficit Narrows To $10.4 Bn

Goods exports from India dropped 20.19 per cent in May 2015 to $22.34 billion — the sixth continuous month of fall — as the slowdown in China added to the woes of the already slowing global economy.

Imports during the month were 16.52 per cent lower at $32.75 billion, mainly due to a sharp drop in petroleum imports. Trade deficit narrowed to $10.4 billion in the month under review compared with $11.23 billion in May 2014, according to a data released by the Commerce Ministry.

“It is not just our traditional markets, but demand from emerging markets, including the ASEAN countries and the rest of Asia, is also shrinking. The slowdown in China has hit economic activity in the smaller economies in Asia and exports of many other countries are on the decline,” said Ajay Sahai, Director-General, Federation of Indian Export Organisations.

Exports of petroleum products declined 59.10 per cent to $2.42 billion during the month due to fall in global oil prices. Other major export items, including engineering goods, electronic goods, gems & jewellery, cotton yarn and a number of agriculture items, also declined.

Import of a number of items, including petroleum products, transport equipment, chemicals, dyes, precious and semi-precious stones and vegetable oil, declined in May 2015.

While petroleum and crude imports during the month was 40.97 per cent lower at $8.53 billion, non-oil imports were 2.24 per cent lower at $24.21 billion.

Cumulative value of exports for April-May 2015-16 was $44.40 billion which was 17.21 per cent lower than that in the comparable period of the previous fiscal. Cumulative value of imports for the period April-May 2015-16 was 12.21 per cent lower at $65.80 billion.

Trade deficit for April-May 2015-16 was estimated at $21.39 billion which was higher than the deficit of $21.32 billion during April-May, 2014-15.

Source:thehindubusinessline.com

Dgft Issues Notification On Allowing Consignment Import At Snz

The Directorate General of Foreign Trade (DGFT) has issued a notification for the import, auction sale and re-export of rough diamonds on consignment basis or outright sale at the Special Notified Zone (SNZ) for rough diamonds.
 
“Import, auction/sale and re-export of rough diamonds by entities, as notified vide RBI Notification 116 of April 1, 2014, as amended from time to time, on consignment or outright basis, will be permitted in SNZ administered by the operator of SNZ, under supervision of Customs,” DGFT said in a notification.
 
The procedure of import, auction/ sale and re-export of rough diamonds (unsold) would be as specified by CBEC, it added.
 
The DGFT has made necessary amendments in the Foreign Trade Policy (FTP) allowing the import, auction, sale and re-export of rough diamonds from the SNZ to be set up at Mumbai's Bharat Diamond Bourse (BDB) at Bandra Kurla Complex (BKC). Earlier, the import on consignment basis was not allowed under the FTP.

Source:knnindia.co.in

Psus To Soon Float Pulses Import Tenders: Agriculture Secretary Siraj Hussain

The government has finalised modalities for import of key pulses and state-run agencies such as MMTC will soon float tenders for overseas purchase of lentils, Agriculture Secretary Siraj Hussain said today.

"We have finalised the modalities for import of pulses. MMTC and other state-trading agencies have been asked to float import tenders," Hussain told PTI. The import of pulses will boost domestic supply and check rising prices, he added.

Prices of pulses have risen by more than 64 per cent in the last one year as the domestic production fell by nearly two million tonnes (MT) in 2014-15 crop year due to unfavourable weather conditions.

For instance in Delhi retail markets, tur prices have increased to Rs 113/kg, urad to Rs 112/kg, moong to Rs 103/kg, masoor dal to Rs 94/kg and gram to Rs 68/kg, as per the data maintained by the Consumer Affairs Ministry.

Last week, the Cabinet had expressed concern over rising prices and decided to increase imports, among other measures.

"The government is very serious on rising prices of pulses. There has been less production of pulses. We will import pulses whatever quantity is required," Food and Consumer Affairs Minister Ram Vilas Paswan had said.

Pulses production is estimated to have fallen to 17.38 MT in 2014-15 crop year (July-June) from 19.25 MT in the previous crop year due to deficient monsoon last year and unseasonal rains and hailstorms during March-April this year. India imports about four MT of pulses, largely through private trade, to meet domestic shortfall.

Source:economictimes.indiatimes.com

Indian Exports Continue To Worry; Down For 6Th Straight Month

Even though trade deficit has been contracting when compared to the same months of last year, the numbers are increasing when looked sequentially. India's exports in the month of May 2015 stood at $22.34 billion, lower by nearly a fifth as against the same month last year. This is also the sixth consecutive month of fall in India's exports to the world. Imports, too, fell but at a lower pace of 16.52%.

According to the data made available by Ministry of Commerce and Industry, Indian imports for the month of May 2015 were recorded at $32.75 billion, lower by nearly 16.5% as against imports of $39.23 billion in May 2014. In rupee terms, imports fell by over 10%.

The government data showed that the precipitous fall in crude oil prices helped to post the lower import bill as India's oil imports for the month of May 2015 fell by nearly 41% and were valued at $8.53 billion as against $14.46 billion in May 2014.

The trade deficit fell to $10.4 billion as against $11.23 billion in the corresponding month of last year. India's trade deficit for the month of January, February, March and April stood at $8 billion, $6.8 billion, $11.8 billion and 11 billion, respectively.

Indian exports and imports have been on the decline since the beginning of this calendar year but it is the fall in crude oil imports that is helping immensely to keep the trade deficit numbers under control. An analyst tracking India's macroeconomic data said, "There is a slump in global demand."

Global economic behemoth, China, too has reported a third consecutive month of exports decline. South Korea said that its May exports were down 11%, biggest slump in six years. The analyst said, "Exports globally are shrinking as growth in China is contracting and this is a worrying sign. None of the BRICs countries are showing any recovery in their international trade."

Daljeet S. Kohli and Kaushal Patel of IndiaNivesh Securities Pvt Ltd in a report dated May 18 had said that steep decline in crude oil prices has impacted India's oil exports which has reduced from 20% to 12% in April 2015.

They said , "Overall, with weak global demand exports will remain under pressure and if manufacturing activity revives in FY16, imports of raw materials and intermediate goods are likely to increase."

"Increasing imports of gold also continue to remain main cause of concern in the Indian economy. So, as long as crude oil price is at low level, it will continue to help to offset any increase in non-oil imports," they added. India gold import bill for May 2015 stood at $2.42 billion, up by over 10% as against the same month of last year.

Source:dnaindia.com
 

Growth In Export Of Textile Products May Shrink

The Indian textile and clothing sector, which registered 41 billion dollars worth exports last financial year, might not see high growth in exports this year, according to industry sources.

The sources told The Hindu here recently that segments such as garments and home textiles had seen growth in exports. However, sectors such as cotton yarn had seen exports slowing down because of decline in demand from China.

The sources said that China was one of the major markets for cotton and yarn exports from India. Though textile mills were now exporting to countries such as Bangladesh, Vietnam and Cambodia, the demand from China was huge. This year, the industry expects export demand to be good for segments such as garments. However, the demand for yarn should increase in the overseas market. Hence, the export growth might be flat this year for the entire sector, the sources said.

Nearly 35 per cent of the country’s annual textile and clothing production is exported. In some countries, the average import duty on these products is high and hence, the industry needs support to upgrade technology, improve its efficiency.

Source:thehindu.com

Indian Spices In Good Demand; Export Touch $2,432.85 Million

Indian spices maintained their robust demand in the international market with their export touching a whopping Rs 14,899.68 crore in 2014-15 as compared to Rs 13,735.39 crore (US $2,267.67 million) a year earlier.

Chilli, mint and mint products, cumin, spice oils and oleoresins, pepper, turmeric, coriander, small cardamom, curry powder/paste and fenugreek contributed substantially to the spice export basket as the demand for Indian spices scaled up phenomenally at the global level.

In 2014-15 fiscal, a total of 8,93,920 tonnes of spices and spice products valued at Rs 14,899.68 crore (US $2,432.85 million) were exported, registering a 9% increase in volume and 8% in rupee terms and 7% in dollar terms in value as compared to 8,17,250 tonnes valued at Rs 13,735.39 crore (US $2,267.67 million) in financial year 2013-14.

The total export of spices during 2014-15 exceeded the target of 7,55,000 tonnes valued at Rs 12,304.90 crore (US $2000 million) in terms of both volume and value for the financial year 2014-15.

Spices Board, the flagship organisation under the Union Ministry of Commerce and Industry, has been able to meet the export target by devising multifaceted activities for promotion of spices and sustaining their demand in the global market.

"The achievement is substantial — 118% increase in terms of volume and 121% in rupee and 122% in dollar terms of value — and it was achieved in the face of tough competition. Increased demand for Indian spices in the international market is a testimony to their unmatched quality and escalating faith in their sustainability," said A Jayathilak, Chairman, Spices Board in a release here on Monday.

Chilli continued to be India's largest exported spice, accounting for 347,000 tonnes in quantity and Rs 3,51,710 lakhs in value during FY 2014-15. The export grew by 11.04% in quantity and 29.20% in value as compared to FY 2013-14. 

Mint and mint products (mint oils, menthol and menthol crystals) earned substantial foreign exchange worth Rs 2,68,925 lakhs through exports of 25,750 tonnes, emerging as a major money-spinning commodity in international spice markets.

In terms of volume, chilli was followed by cumin with an export quantity of 1,55,500 tonnes that earned a foreign exchange worth Rs 1,83,820 lakhs. In 2013-14, the figures stood at 1,21,500 tonnes valued Rs 1,60,006.45 lakh.

Value-added spice products like spice oils and oleoresins notched a significant high with figures of 11,475 tonnes (exports) and Rs 1,91, 090 lakhs (earnings), registering a growth of 1% in quantity and 10% in value, respectively.

The figures for the corresponding period in 2013 stood at 11,415 tonnes and Rs 1,73, 324.85 lakhs, respectively. Pepper, 'The King of Spices', contributed significantly to export earnings by bringing home Rs 1,20, 842.16 lakhs with a corresponding export volume of 21,450 tonnes in FY 2014-15.

The earnings from pepper export rose marginally as the figures in the corresponding FY 2013-14 were Rs 94,002.34 lakhs and 21,250 tonnes, registering an increase of 1% and 29% in terms of volume and value, respectively.

Turmeric too continued to make great strides with an export volume of 86,000 tonnes, which translated into a hefty earning of Rs 74,435 lakhs as compared to 77,500 tonnes and Rs 66,675.85 lakhs during FY 2013-14.

Coriander was another major spice with a huge demand in foreign markets. By exporting 46,000 tonnes, it fetched Rs 49,812.50 lakhs while curry powder/paste contributed to the exchequer with a tidy amount of Rs 47,626 lakhs through export of 24,650 tonnes.

Small Cardamom, 'The Queen of Spices', stood at 3,795 tonnes that earned for the country foreign exchange pegged at Rs 49,812 lakhs. Large cardamom's export value surged substantially to Rs 8403.90 lakhs as compared to Rs 7961.15 lakhs compared to FY 2013-14.

In 2014-15, chilli, cumin, turmeric, coriander and ginger accounted for more than 70 per cent of the total volume of spice export whereas mint, chilli, spice oils & oleoresins, cumin and pepper accounted for around 70% of the total export earnings.

"Indian spices are not only lucrative products for the national exchequer but have also become a trusted global brand," Jayathilak said, adding, "The challenge for us is to give a huge impetus to their export and sustain their quality and flavour."

Source:seeandsaynews.in

India’S Growing Demand Drives Nsw’S Coal Export

The bulk carriers were lining up as far away as Gosford yesterday waiting to get a berth at New­castle’s giant port almost 100km to the north.

Raising hopes among downbeaten miners, coal exports from NSW are up on the last financial year, pointing to a new era for the sector that hopes to feed India’s rising appetite for energy.

While prices have come off sharply from slowing demand from China, coal remains NSW’s number one export commodity. Exports for 2014-15 jumped nearly 5 per cent to 133 million tonnes, from 127 million tonnes in the previous financial year.

Exports to India have more than doubled from 3.2 million tonnes to 7.7 million tonnes over the nine months to March, according to figures released by Coal Services.

“Exports of NSW coal to Korea are up 8 per cent, while exports to Taiwan have risen by 21 per cent and across the rest of Asia outside of Japan and China, exports have more than doubled to 15.6 million tonnes over the last nine months,” NSW Minerals Council chief executive Stephen Galilee said.

The figures would be of little comfort to the 5000 coal industry employees of the state who lost their jobs over the past two years, but bode well for the long-term future of the sector, he said.

“We shipped more last year than we did the year before,” Port Waratah Coal Services spokesman Paul Chamberlin said.

The bulk of the coal exported through the Newcastle port was to China and Japan but “India is a growing market”, he said. “It is a win for Newcastle and Queensland because the coal that comes out of the Hunter Valley is very clean compared to ground coal from Victoria.”

The port last week received approval for a $5 billion coal loading terminal, the T4 project, with a capacity for 70 million tonnes.

“If you built it tomorrow it wouldn’t be used,” Mr Chamberlin said. “The indicators are that it is not needed at present, but exports will continue to grow … you respond to what you’re told will be future demand.”

The Minerals Council’s Mr Galilee estimated that India currently imported 80 per cent of its “low-grade, high-ash coal” from Indonesia.

“(India’s) move to cleaner coal imports puts NSW in a prime ­position to benefit from this growing demand for the type of clean thermal coal our state produces,” he said.

Japan comprises 40 per cent of total NSW coal exports, followed by China at 18 per cent and Korea at 11 per cent, but Mr Galilee said demand from India was set to ­increase.

He pointed to a recent speech by India’s head of the Department of Industrial Policy and Promotion, who said that India wanted international miners to send their coal to India, including Australian players.

The most recent forecast from the International Energy Agency predicts global electricity demand could double between 2009 and 2035 as those in the developing world gain access to electricity.

“The energy mix is changing but there is still a use for fossil fuels,” Mr Chamberlin said. “India wasn’t even on the radar a few years ago.”

Thermal coal prices have come off as China’s leadership is intent on reducing long-term coal imports as it deals with rising pollution and increases hydro, ­nuclear and gas-fired electricity generation. At the same time, a slowing economy there has hit steel­making.

In 2014, some higher-cost Australian coking coalmines closed, including Vale’s Integra mine and Sumitomo’s Isaac Plains mine in Queensland and Glencore’s ­Ravensworth mine in NSW, but there are now many mines doing it tough.

Prices of steelmaking coal, which traded above $US300 a tonne during the boom and were at $US113 at the start of the year, recently slumped to a 10-year low of $US85 a tonne, while thermal coal has fallen from more than $US140 a tonne to $US65 a tonne.

Source:hellenicshippingnews.com

No demand arose as duty-free diesel was used to generate electricity for captive use and not for res

Excise & Customs : Where : (a) assessee was procuring duty-free diesel for captive use and duty-paid diesel for generating electricity supplied to residential colony and (b) duty-paid diesel far exceeded diesel required to generate electricity used in colony, no part of duty-free diesel could be regarded as used for colony and no consequent demand could be raised

Profit on sale of carbon credit is a capital receipt, rules Hyderabad ITAT

IT: Income received on sale of carbon credits was a capital receipt and not a business receipt

JV wasn't taxable as AOP as it was only formed to secure contract and entire work was split up betwe

IT : Where JV was formed only to secure contract, in terms of which scope of each JV partner's task was distinctly outlined and further, entire work was split between two JV partners and they completed task, through sub-contractors, JV was not an association of persons and liable to be taxed on that basis

Rupee Erases Initial Gains, Trades Weaker For Fourth Consecutive Session

The Indian rupee erased all its morning gains and was trading weaker for the fourth consecutive session against the US dollar, on Tuesday, as foreign investors continued to liquidate their investment in the country, both in equities and debt.

 

At 2pm, the home currency was trading at 64.24 per dollar, down 0.11% from its previous close of 64.18. The local unit opened at 64.08 per dollar and touched a low of 64.25.

 

The Sensex was trading down 0.61% or 160.87 points at 26,425.68 points. The local equity markets have fallen more than 1,400 points, or 5% so far in June.

 

So far this month, foreign investors have sold a net of $483.01 million in local equities, while in May, they sold $67.09 million. Foreign institutional investors (FIIs) continued to sell Indian debt in June, taking overall sales in the last two months to $2.43 billion.

 

In the same period, FIIs have sold $1.13 billion in debt, after selling $1.3 billion in May. Selling from foreign investors has been heavy on certain days. For instance, on 11 June, FIIs sold $510.98 million, the heaviest selling seen since 27 January 2014, according to data from the securities and exchange board of india (Sebi).

 

Traders are cautious ahead of the US Federal Reserve meeting on 16-17 June and the breakdown of talks between Greece and its creditors over the weekend. The lack of progress in negotiations has rattled traders and raised fears of a default on Greece’s debt and a possible exit from the currency bloc, the Wall Street Journal reported.

 

The yield on India’s 10-year benchmark bond was trading at 7.902% compared with its Monday’s close of 7.867%. Bond yields and prices move in opposite directions. Since the beginning of this year, the rupee has lost 1.85%, while FIIs have bought $6.66 billion from local equity and $5.04 billion from bond markets.

 

Most of the Asian currencies were trading lower. Taiwan dollar was down 0.44%, Indonesian rupiah 0.17%, South Korean won 0.11%, Japanese yen 0.1%, Philippines peso was down 0.07%. Malaysian ringgit, though, was up 0.25%.

 

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.784, down 0.02% from its previous close of 94.81.

 

Source:livemint.com

Rupee Erases Initial Gains, Trades Weaker For Fourth Consecutive Session

The Indian rupee erased all its morning gains and was trading weaker for the fourth consecutive session against the US dollar, on Tuesday, as foreign investors continued to liquidate their investment in the country, both in equities and debt.

 

At 2pm, the home currency was trading at 64.24 per dollar, down 0.11% from its previous close of 64.18. The local unit opened at 64.08 per dollar and touched a low of 64.25.

 

The Sensex was trading down 0.61% or 160.87 points at 26,425.68 points. The local equity markets have fallen more than 1,400 points, or 5% so far in June.

 

So far this month, foreign investors have sold a net of $483.01 million in local equities, while in May, they sold $67.09 million. Foreign institutional investors (FIIs) continued to sell Indian debt in June, taking overall sales in the last two months to $2.43 billion.

 

In the same period, FIIs have sold $1.13 billion in debt, after selling $1.3 billion in May. Selling from foreign investors has been heavy on certain days. For instance, on 11 June, FIIs sold $510.98 million, the heaviest selling seen since 27 January 2014, according to data from the securities and exchange board of india (Sebi).

 

Traders are cautious ahead of the US Federal Reserve meeting on 16-17 June and the breakdown of talks between Greece and its creditors over the weekend. The lack of progress in negotiations has rattled traders and raised fears of a default on Greece’s debt and a possible exit from the currency bloc, the Wall Street Journal reported.

 

The yield on India’s 10-year benchmark bond was trading at 7.902% compared with its Monday’s close of 7.867%. Bond yields and prices move in opposite directions. Since the beginning of this year, the rupee has lost 1.85%, while FIIs have bought $6.66 billion from local equity and $5.04 billion from bond markets.

 

Most of the Asian currencies were trading lower. Taiwan dollar was down 0.44%, Indonesian rupiah 0.17%, South Korean won 0.11%, Japanese yen 0.1%, Philippines peso was down 0.07%. Malaysian ringgit, though, was up 0.25%.

 

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.784, down 0.02% from its previous close of 94.81.

 

Source:livemint.com

Govt. brings ordinance to allow filing of complaint on cheque bouncing at place where payee maintain

BANKING/INDIAN ACTS & RULES/BILLS/ORDINANCES : Negotiable Instruments (Amendment) Ordinance, 2015

Tax returns of MPs/MLAs can't be disclosed under RTI to compare info disclosed in election affidavit

Income-Tax Returns filed by elected representatives(MPs/MLAs) is exempted from disclosure by "privacy clause" of section 8(1)(j) of the RTI Act,2005.Copies of the same cannot be furnished for comparing the income disclosed in ITRs with disclosures made in election affidavit filed with Election Commission under Representation of the People Act,1950

Tax returns of MPs/MLAs can't be disclosed under RTI; they can't be used to compare info in election

Income-Tax Returns filed by elected representatives(MPs/MLAs) is exempted from disclosure by "privacy clause" of section 8(1)(j) of the RTI Act,2005.Copies of the same cannot be furnished for comparing the income disclosed in ITRs with disclosures made in election affidavit filed with Election Commission under Representation of the People Act,1950

Brokerage on sale of RBI bonds can't be charged to Service Tax as bonds are Govt. security

Service Tax : Brokerage received by a bank on sale of 'RBI tax-savings bonds', which were issued as part of borrowing programme of Government from public and were classifiable as 'Government security', cannot be charged to service tax

Court can't insist on remanding the matter if non-issuance of notice doesn't prejudice assessee

Excise & Customs : Even if it is found by court that there is a violation of principles of natural justice, courts may not strike down action and remand matter back for fresh decision, if non-grant of hearing has not caused any prejudice to concerned person

No revocation of trust's registration just because its commercial receipts are more than charitable

IT : Merely because receipts from commercial activities of assessee-trust were more when compared to overall receipts from charitable activities, registration of assessee could not be cancelled

MP Govt. ordinance does away with requirement to pay amount by dealers for extension of stay order

VAT/MADHYA PRADESH/INDIAN ACTS & RULES : Madhya Pradesh Vat (Amendment) Ordinance, 2015 – Amendment in Sections 4A, 10, 14, 16A, 18 and 29 of Madhya Pradesh Value Added Tax Act, 2002

ITAT rejects comparables as they were inappropriate due to diverse activities, brand value and econo

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering software development services to its AE, since two comparables selected by TPO were inappropriate due to various factors such as brand value, economy of scales, goodwill, diversified activities, owning of intangibles etc., impugned addition was to be set aside

Sec. 10A relief denied on software development units on failure of assessee to prove that they were

IT : Where material on record was found to be insufficient to treat each of 31 units of assessee as separate undertakings, benefit under section 10A would be limited to eligible undertakings of assessee

No denial of DTAA benefit to owner of ship just because charterer of ship was liable to tax under bu

IT/ILT: Where assessee rendered services to foreign vessels under agency of a U.K. Company and charterer of ship was of Bahamas, freight beneficiary being a company of U.K., as per DTAA entered into between India and U.K., said income was not taxable in hands of assessee in India

CBDT's new instruction specifying revised limit for filing appeal is also applicable to pending case

IT : In view of CBDT Instruction No. 5 of 2014 dated 10-7-2014, where tax effect of appeal filed by revenue before Tribunal was less than Rs. 4 lakhs, appeal was to be dismissed

Prior period exp. is allowable if its liability is crystallized in current year

IT : Deductibility of prior period expenses is to be decided by considering details of such expenditure; if liability is crystallised in current year, amount has to be allowed as deduction but if expenditure relates to earlier year and simply payment is made in current year, deduction would not be allowed

Borrower can't be classified as wilful defaulter without adhering to procedure laid under RBI Circul

Banking Regulation Act: Where Grievance Redressal Committee of respondent bank had not followed procedure as envisaged under RBI Master Circular and not communicated its decision to petitioner forming an opinion that petitioner should be labelled as wilful defaulter, decision of Grievance Redressal Committee was to be set aside

High Court critical of ITAT for passing order on basis of docs and evidences not presented before AO

IT: Where Tribunal deleted disallowance on account of interest paid to partners, etc., based on documents and evidences which were not presented to Assessing Officer or Commissioner (Appeals), matter was to be remanded

Exp. incurred via credit card couldn't be held as unexplained if credit card bill was paid through b

IT: Where assessee made all her credit card expenses and investments out of her bank account by cheque and she explained all investments, addition made under section 69 was not justified

Growth In Exports Of Textile Products May Shrink

The Indian textile and clothing sector, which registered 41 billion dollars worth exports last financial year, might not see high growth in exports this year, according to industry sources.

The sources told The Hindu here recently that segments such as garments and home textiles had seen growth in exports. However, sectors such as cotton yarn had seen exports slowing down because of decline in demand from China.

The sources said that China was one of the major markets for cotton and yarn exports from India. Though textile mills were now exporting to countries such as Bangladesh, Vietnam and Cambodia, the demand from China was huge. This year, the industry expects export demand to be good for segments such as garments. However, the demand for yarn should increase in the overseas market. Hence, the export growth might be flat this year for the entire sector, the sources said.

Nearly 35 per cent of the country’s annual textile and clothing production is exported. In some countries, the average import duty on these products is high and hence, the industry needs support to upgrade technology, improve its efficiency and competitiveness.

Source:- thehindu.com

Good Demand For Indian Spices; Export Touch $2,432.85 Mn

Indian spices maintained their robust demand in the international market with their export touching a whopping Rs 14,899.68 crore in 2014-15 as compared to Rs 13,735.39 crore (USD 2,267.67 million) a year earlier.

Chilli, mint and mint products, cumin, spice oils and oleoresins, pepper, turmeric, coriander, small cardamom, curry powder/paste and fenugreek contributed substantially to the spice export basket as the demand for Indian spices scaled up phenomenally at the global level.

In 2014-15 fiscal, a total of 8,93,920 tonnes of spices and spice products valued at Rs 14,899.68 crore (USD 2,432.85 million) were exported, registering a 9 per cent increase in volume and 8 per cent in rupee terms and 7 per cent in dollar terms in value as compared to 8,17,250 tonnes valued at Rs 13,735.39 crore (USD 2,267.67 million) in financial year 2013-14.

The total export of spices during 2014-15 exceeded the target of 7,55,000 tonnes valued at Rs 12,304.90 crore (USD 2000 million) in terms of both volume and value for the financial year 2014-15.

Spices Board, the flagship organisation under the Union Ministry of Commerce and Industry, has been able to meet the export target by devising multifaceted activities for promotion of spices and sustaining their demand in the global market.

"The achievement is substantial - 118 per cent increase in terms of volume and 121 per cent in rupee and 122 per cent in dollar terms of value - and it was achieved in the face of tough competition. Increased demand for Indian spices in the international market is a testimony to their unmatched quality and escalating faith in their sustainability," said A Jayathilak, Chairman, Spices Board in a release here today.

Chilli continued to be India's largest exported spice, accounting for 347,000 tonnes in quantity and Rs 3,51,710 lakhs in value during FY 2014-15. The export grew by 11.04 per cent in quantity and 29.20 per cent in value as compared to FY 2013-14.

Source:- business-standard.com

Omission of creditors to participate in inquiry initiated by revenue wouldn't prove that they lacked

IT : Where omission on part of creditors to subject themselves to enquiry being initiated by revenue could not establish that creditors lacked identity, addition as undisclosed income was not justified

Haryana VAT: Deptt. can't make additions in turnover without corroborative evidence

CST & VAT : Haryana VAT - Where Assessing Authority rejected explanation of assessee that goods in question were never sold by it and made a certain addition in gross turnover, in absence of any material on record to show that any enquiry was made by revenue through vehicle owners or any material was confronted to assessee, impugned addition was not justified

Immediate Import Of Pulses Will Not Help Contain Inflation: Industry Experts

Immediate imports of pulses would not help in containing the domestic prices and the government should delay the inbound shipments of the commodity till August, industry experts said.

By August-September, arrival of the new crops from countries including Canada, the US, Australia and Myanmar start, Indian Grains and Pulses Association Chairman Pravin Dongre said.

These are the destinations from where India mainly import pulses.

"We advocate the delay in imports till August-September as that is the time for arrival of new crops in Canada, the US, Australia and Myanmar, the destinations from where we mostly import pulses.

"Now there is little point in importing as the prices internationally are firming up due to a dearth of supply and depleting stocks. It will be equally expensive for the domestic here," Dongre told PTI.

He said delay in imports for one or two months will not cause any major price rise so there is no need to panic so much.

Last week in the Cabinet meeting, the government had decided to import lentils in large quantities to boost supply and also asked states to take action against hoarders.

In a meeting chaired by Prime Minister Narendra Modi, the Cabinet expressed concerns over rising prices and decided to increase imports, among other measures.

According to ADMISI Commodities research analyst Sriram Iyer, the imports now might drive the prices higher in the international markets as farmers and other market participants who will be keenly watching the Indian situation could push up their prices in anticipation of the largest consumer, that is India coming to buy at the global markets.

"Even though, chana prices has fallen over the last month or so, we expect that with India entering the import market, there could be a possibility of a rally in prices," he added.

However, he added that prices rebounded from lows of the trading session to end above the important level of Rs 4,600 per quintal.

Pulse prices have risen by up to 64 per cent in the last one year as the domestic production fell by nearly two million tonnes in 2014-15, crop year due to unfavourable weather conditions.

Pulses production is estimated to have fallen to 17.38 million tonnes in 2014-15 crop year (July-June) from 19.25 million tonnes in the previous crop year due to deficient monsoon last year and unseasonal rains and hailstorms during March-April this year.

India imports about four million tonnes of pulses, largely through private trade, to meet domestic shortfall.

Source:- economictimes.indiatimes.com

 

Mideast Oil Powers Saudi Arabia, The Uae To Cut Petrol Imports

Middle Eastern oil producers Saudi Arabia and the UAE will sharply cut or even halt costly petrol imports next year after ramping up new refining capacities that put them a step closer to becoming exporters of the motor fuel.

The estimated loss of at least 60,000 barrels per day (bpd) in shipments to Saudi Arabia and the UAE is expected to be mitigated by strong global demand that will help replace revenue lost by sellers such as trader Gunvor, French major Total and India’s Reliance Industries.

And while the dwindling imports may point to a coming change in trade flows as other Middle East refining projects come online, the market currently looks strong enough to withstand the relatively small loss in daily seaborne purchases.

“Most of the counterbalancing will be done by lower exports from surplus countries, either because domestic consumption is growing [such as in India] or because the refining sector or yields are shrinking [such as in OECD markets]”, said David Wech, managing director of consultancy JBC Energy.

Organisation for Economic Cooperation and Development (OECD) countries Japan and Australia, for instance, are cutting refining capacities due to shrinking domestic consumption and more cost-effective imports.

Petrol exporter India is likely to reduce overseas sales to cater to growing local use of the fuel.

Total and Gunvor could also sell more into other Middle Eastern countries such as Egypt or nearby Pakistan, where petrol demand is strong, traders said.

ESAI Energy research agency expects global petrol demand growth to accelerate by 50,000 bpd to 420,000 bpd this year, the principal reason overall oil demand growth will be higher this year than in 2014, it said in a June note.

“The unusual strength in petrol had overturned some analysts’ reports in 2014 which said petrol would be bearish [this year] due to overcapacity,” said a Singapore-based oil products trader. “Overall, petrol’s crack this year should end at the same levels seen in 2014 if not higher.” Asian petrol cracks hit their highest in at least six years on June 11 at about $19 a barrel.

The drop in petrol imports from the two oil powers is a blip compared with the 24 million bpd the world will consume this year, and less than 20 per cent of the nearly 400,000 bpd taken by Asia’s top importer Indonesia.

Still, the UAE is adding another refinery at Fujairah and the Saudis another 400,000-bpd unit at Jazan before 2018, meaning the days of the region being an import destination could be numbered.

“The Middle East is moving towards self sufficiency.

Petrol crack values may be (put) under pressure but the impact would be countered by the slowdown in refining additions and strong demand growth within Asia,” said Ngai Si Min of consulting firm FGE.

State-owned Abu Dhabi National Oil Co has already more than doubled its refining capacity to around 830,000 bpd this year. And once it stabilises operations at a new residue fluid catalytic cracker (RFCC), it will choke off imports estimated at about 50,000 bpd.

Saudi Aramco’s petrol imports are already in decline after it started up two 400,000-bpd refineries over the last two years.

“This is a transition period where Saudi Arabia moves from being an importer to being roughly balanced from second-half of this year,” said Victor Shum of consulting firm IHS.

FGE expects Saudi Arabia to import some petrol this year, although with its net intake dropping by more than half to around 25,000 bpd from 80,000 bpd in 2014.

In 2016, Saudi Arabia’s net petrol imports could be down to as little as 12,000 bpd, said FGE’s Ngai.

Adnoc traders do not comment on operational issues and company officials were not available. A Saudi Aramco spokesman said he could not comment on trade flows.

Source:- gulfnews.com

Gold Seizures Up 62% In Fy15

Gold seizures by enforcement agencies shot up 62% last fiscal to 4.48 tonne, according to latest official data.

Official agencies seized 4,480 kg gold in 2014-15 compared with 2,760 kg a year before, said a senior government official. In value terms, the seizures were to the tune of Rs 1,120 crore last fiscal against Rs 690 crore in the previous year. The number of cases registered against such seizures has gone up to 4,400 in 2014-15 from 2,700 cases in the previous fiscal and 870 in 2012-13.

Despite the spurt, bullion industry executives say these seizures account for a very tiny part of the overall gold smuggling business. The World Gold Council last year predicted that gold smuggling in India would touch 200 tonne in calendar year 2014 compared with 150-200 tonnes a year before.

Gold seizures have jumped since January 2012, when the government started raising the import duty on the precious metal from a flat Rs 300 per 10 grams. Initially, it was raised to 4% in two phases in 2012 and in 2013 it was raised three times to 10%.

These apart, to control the current account deficit,  the central bank in 2013 imposed an 80:20 rule, mandating at least a fifth of the imported gold  to be kept aside for re-exports.

Source:- financialexpress.com

Indian Rupee Up Against Yen, Euro; Down Vs Us Dollar: Dbs

Backed by projected strong growth and inflow of investments, the Indian rupee has appreciated by 13.7 per cent against the Japanese yen and 12.8 per cent against the euro over the past 11 months, Singapore’s DBS banking group said today.

It has however declined 6.1 per cent in value against the US dollar from July 2014 to June this year, as the greenback has appreciated against Asia’s 10 currencies on its own economic strength.

Giving performances of Asian currencies, David Carbon, managing director for economic and currency research at DBS, said the rupee has appreciated by 6.6 per cent from July 2014 to this month against the Japanese yen, euro and USD combined.

The combined 10 Asian currencies have also appreciated by 6.6 per cent against the yen, euro and USD put together over the same period.

Currencies from China, Hong Kong, South Korea, Taiwan, Indonesia, Singapore, Malaysia, Philippines, Thailand and India had, combined together, appreciated by 13.7 per cent against the yen and 12.8 per cent against euro. However, they lost in value by 6.1 per cent against the American currency.

Individually, the gain/loss figures are the same for the Indian currency vis-a-vis others.

“Asian currencies are too strong,” Carbon told reporters during media briefing today, citing their performances against the yen, euro and USD.

He said the Asian currencies should soften or else there would be pressure on the region economies.

Asia’s combined economic growth is forecast at 6.25 per cent this year. Comparatively, US growth is forecast at 2.2 per cent, Japan 1.2 per cent and Europe 0.9 per cent during for the year.

Asia is driving the global growth and not the US, he pointed out. “For every dollar of growth the US puts on the global table, Asia now puts out USD 2.50,” said Carbon.

Reminding that “too strong Asian currencies” were not good, he said “Central banks (in the region) are shooting themselves in the foot.”

He also reminded Asian economies to invest at home from their surpluses. Except for India and Indonesia, Asian countries have been running surpluses since 1998. “Stop running surpluses, start running deficits. Stop investing in US Treasuries and start investing at home, where the income-lifting capital equipment and infrastructure is desperately needed,” said Carbon.

Current account surpluses are standing in the way of greater domestic investment in all Asian countries save for Indonesia and India, said Carbon, adding, “Asia’s investment growth has slowed to a crawl”.

After averaging 15 per cent per year for decades, the 10 Asian countries’ real investment growth has slowed from an 11-odd per cent pace in 2008 to four per cent in 2013 and three per cent last year.

If the Asian countries ran deficits of 2-3 per cent of the Gross Domestic Product (GDP), domestic investment could be 8-9 nine per cent of GDP higher than it currently is.

“That’s a boatload of investment dollars that could be improving Asia’s infrastructure, raising Asia’s growth rates and lifting Asian incomes,” he said.

Source:- financialexpress.com

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