Question as to whether accounts are correctly classified as NPA is a factual dispute: High Court

SARFAESI : Question whether a borrower has committed any default in repayment and whether account has been correctly classified as a NPA or not is a factual dispute which is not to be entertained in writ jurisdiction particularly when fora for adjudication thereof, i.e., DRT, in event of bank taking further action, is prescribed

Providing food/snacks in a factory canteen of clients amounts to 'outdoor catering' service

Service Tax : Providing food/snacks to employees of clients in factory canteen of such clients amounts to 'outdoor catering' services and is liable to service tax accordingly

CBDT's order on cadre restructuring in tax department wasn't discriminatory; it was constitutionally

IT : Where due to massive induction of information technology, restructing of cadres was done in tax department since there was no discrimination pointed out by employees, same was to be regarded as constitutionally valid

RBI releases master circular on appointment, delisting of brokers and payment of brokerage on relief

IT : Appointment and Delisting of Brokers, and Payment of Brokerage on Relief/savings Bonds

Time-limit to file refund claim doesn't apply to claim refund of amount paid under investigation

Service Tax/Excise/Customs : Time-limit of section 11B would not apply to amounts paid under investigation, which are considered by Tribunal as sufficient pre-deposit for purpose of filing of appeal

Sum received by land owner as per terms of development agreement wasn't cap gain as land was held as

IT: Where assessee-owner of a piece of agricultural land had undertaken a series of activities for commercially exploiting it such as conversion of user of land, appointment of architect and contractor, land in question being stock-in-trade, non-refundable deposit received from builder for constuction would not give rise to any capital gain

RBI asks banks to verify credit details of customers from CRILIC database before opening current acc

BANKING : Opening of Current Accounts by Banks – Need for Discipline

Banks can slot excess SLR securities and 'MSF' securities under Day-1 bucket in structural liquidity

BANKING : Bucketing of Excess SLR And MSf Securities in Structural Liquidity Statement

RBI clarifies credit concentration norms for NBFCs

NBFCs : Applicability of Credit Concentration Norms

Leasing of storage tanks for three years at monthly rentals doesn't fall under 'Banking/Financial Se

Service Tax : Lease of storage tanks for 3 years at monthly rentals would not get covered by 'Financial leasing including equipment leasing and hire-purchase' and hence, would not fall under Banking and other financial services

Compensation received on non-fulfilment of 'specific performance' in pursuance of oral contract is c

IT: Amount of damage awarded by Trial Court on account of failure of vendor to transfer its factory premises in pursuance of an oral agreement entered into between parties was to be regarded as 'capital receipt'

RBI releases master circular on collection of direct taxes through OLTAS

IT : Collection of Direct Taxes -OLTAS

Govt. explains substance of provisions relating to declaration of undisclosed foreign asset

IT/ILT : Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 – Explanatory Notes on Provisions Relating to Tax Compliance for Undisclosed Foreign Income and Assets as Provided in Chapter VI of Said Act

ITAT directs AO to decide taxability of AMP exp. by following ratio of high Court in case of 'Sony E

IT/ILT : ITAT directs Assessing Officer to decide taxability of AMP expenses by following ratio of High Court in case of 'Sony Ericsson'

Mere sign of Commissioner on notes prepared by Inspector doesn't constitute valid review

Service Tax : Mere appending of signatures on a note drawn up by Inspector (Review) does not amount to application of mind and recording of opinion by Committee of Commissioners; hence, appeal filed consequent to such invalid review order cannot be maintained

High Court orders refund of duty as revenue had initiated garnishee proceedings without issuing any

IT : Where revenue initiated garnishee proceedings and recovered entire amounts from account of assessee without issuing any notice to it, revenue should refund said amount to assessee

CIT couldn't step into the shoes of AO and decide Sec. 80-IB eligibility while passing revisional or

IT : At time of passing of revisional order, Commissioner could not take over role of Assessing Officer by himself deciding assessee's eligibility to claim deduction under section 80-IB

RBI releases master circular on appointment, delisting of brokers and payment of brokerage on relief

IT : Collection of Direct Taxes -OLTAS

Govt. notifies Black Money Rules; releases 7 Forms including 'Form 6' for declaration of undisclosed

IT/ILT/INDIAN ACTS & RULES : Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015

RBI demands region-wise weekly reports from banks on implementation of 'Sukanya Samriddhi Account'

IT : Kisan Vikas Patra, 2014 and Sukanya Samriddhi Account – Expeditious Implementation of Said Schemes

Now unsold rough diamonds can be re-exported from special notified zone without export declaration f

FEMA/ILT : Re-Export of Unsold Rough Diamonds from Special Notified Zone of Customs without Export Declaration Form (Edf) Formality

Now Indian Cos can issue ESOPs and sweat equity shares to NR employees/directors of its holding Co.

FEMA/ILT/INDIAN ACTS & RULES : Fem (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2015 – Amendment in Regulation 2 and Substitution of Regulation 8

Difference of amount in invoices raised and payment received isn't a ground to deny refund on export

Cenvat Credit : Export incentive, viz., refund of accumulated cenvat credit cannot be denied merely due to difference in value of exports invoiced and proceeds received during a half-year, when assessee explained that said difference was on account of time-gap in realizations and discounts allowed

CIT couldn't step info the shoes of AO and decide Sec. 80-IB eligibility while passing revisional or

IT : At time of passing of revisional order, Commissioner could not take over role of Assessing Officer by himself deciding assessee's eligibility to claim deduction under section 80-IB

Department can't arrest assessee without issuing notice and quantifying service tax due from him

Excise & Customs : Department cannot arrest an assessee even before issuance of show-cause notice and even before quantifying/adjudicating service tax due from him, as that would amount to 'putting cart before horse', which is impermissible

ITAT allows depreciation on goodwill generated during slump sale

IT: Goodwill is in nature of business or commercial right specified in section 32(1)(ii)

Recovery provisions of service tax can't be invoked without adjudication

Service Tax : Tax can be held to be payable only after adjudication either under section 72 or section 73; hence, in absence of any power to recover tax based on preliminary assessment, even without an adjudication, recovery under section 87 without adjudication was invalid

Opposite party abused its dominance by imposing unfair terms in supply of software development kit a

Competition Act : Where OP having dominant position in relevant market of Point of Sale (POS) terminals in India had imposed unfair conditions in Software Development Kit (SDK) agreement for supply of SDK for development of software on POS terminals, OP had abused its dominant position

Sec. 43B doesn't contemplate payment of service tax before it is actually received from parties

IT: Where it was found that before end of year, amount on which service tax was payable had not been received from parties to whom services were rendered, claim of service tax paid could not be disallowed

Construction of Metro train isn’t chargeable to service tax

Service Tax : Construction of metro rail cannot be charged to service tax under Commercial or Industrial Construction Services, as word 'railways' used in context of said services would cover all types of rails including monorail/metro rail

Bid amount can be deposited on next day of auction sales if auction proceedings are concluded after

SARFAESI : Where auction purchaser had deposited sale amount immediately after bid as provided in auction sale notice, petition challenging auction sale on ground of delay in depositing bid amount as stipulated in sale notice was to be dismissed

A comparable having a different accounting year can't be chosen for TP study

IT/ILT: A comparable having a different accounting year cannot be a valid comparable

Machinery used by 'Titan' to manufacture 'Circuit Boards' for watches was eligible for higher deprec

IT: Where assessee purchased semi-conductor devices such as Integrated Circuits and mounted piezo-electronic crystals which were fixed on board and they were interconnected to produce end products, i.e., ECBs, it could be said that assessee was engaged in semi-conductor industry and was entitled to high rate of depreciation of 40 per cent

Now Black Money Act would be effective from July 1, 2015

IT/ILT : Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act (Removal of Difficulties) Order, 2015 – Amendment in Section 1 of Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015

Criminal proceedings couldn't be initiated on issue which decided on merits in favour of assessee

Excise & Customs : Where issue of classification and exemption has been resolved finally by Supreme Court in favour of assessee i.e., assessee has been exonerated in adjudication proceedings on merits, criminal proceeding on same cause of action cannot continue

No additions if transaction made at a price less than its cost wasn't with any specified person and

IT : Where assessee sells his goods at a price less than purchase price and transaction is bonafide one, taxing authority cannot take into account purchase price of those goods to ascertain profit from transactions

No reversal of credit availed on cold drink bottles if they were removed from factory after filing c

Cenvat Credit : Removal of bottles/crates with final product being 'aerated beverages' amounts to 'use' of bottles/crates for purpose of 'aerated beverages'; such removal does not amount to removal 'as such' for reversal under Cenvat Rule 3(5)

AO's order was erroneous as he had allowed higher depreciation on hospital equipments without proper

IT : Where Assessing Officer had allowed higher depreciation on furniture and hospital equipment and accepted unsecured loans without making proper and adequate enquiries, order of Assessing Officer was erroneous and prejudicial to interests of revenue

Prior to 1-5-2011, service tax on life insurance was leviable only on 'risk premium' and not on othe

Service Tax : Prior to 1-5-2011, service tax on life insurance was leviable only on risk premium and not on : (a) Agency Processing Fees; (b) Lapsed policy renewal Charges; (c) Back Dating Alteration Charges, (d) Recoveries on look-in, and (e) Policy Reinstatement Fees

RBI issues master circular on Basel Capital norms, customer service in bank and housing norms

BANKING/MASTER CIRCULAR : Master Circulars, Dated 1-7-2015

Machinery used by 'Titan' to manufacture 'Cricuit Boards' for watches was eligible for higher deprec

IT: Where assessee purchased semi-conductor devices such as Integrated Circuits and mounted piezo-electronic crystals which were fixed on board and they were interconnected to produce end products, i.e., ECBs, it could be said that assessee was engaged in semi-conductor industry and was entitled to high rate of depreciation of 40 per cent

Authorities has discretion to provide an option of redemption fine in lieu of confiscation of prohib

Excise & Customs : Option to pay redemption fine in lieu of confiscation is mandatory in case of non-prohibited goods; but, in case of prohibited goods, officer has a discretion to give option, which must be exercised as per rules of reason and justice and after briefly recording reasons why same is exercised in one way or other

Interest attributable to investment made in SPV to execute NHAI's contract couldn't be disallowed un

IT : Expenses and interest attributable to investments made by assessee in Special Purpose Vehicles could not be disallowed under section 14A read with rule 8D, as it could not be termed as expenses incurred for earning exempt income

Directors who were removed in disputed EGM were allowed to be impleaded as a party in oppression ple

CL : Where EOGM whereat applicants were allegedly removed as directors of company was in dispute and they claimed that they continued to hold office of directors of company, they were allowed to be impleaded as respondents in array of parties in petition filed by petitioners under sections 397-398

Assessee's objection could not be deemed to have allowed if they were not decided within prescribed

CST & VAT : Delhi VAT - Assessee filed objections under section 74 before Commissioner, objections could not automatically deemed to have been allowed if they were not decided within prescribed time, i.e., 8 months from date of filing of objections

Late filing of requisite docs doesn't disentitle local authority from claiming sec. 11 relief

IT: Where assessee, a local authority, was duly granted registration under section 12A with effect from 1-4-2003, late filing of required documents would not disentitle assessee from availing benefits of section 11 for assessment year 2005-06

RBI releases master circular on NBFCs

NBFCs/MASTER CIRCULARS : Master Circulars, all dated 1-7-2015 on Non-Banking Supervision

RBI issues master circular for Scheduled Commercial banks on FEMA norms

FEMA/ILT/Master Circular : Master Circulars, all dated 1-7-2015 on Foreign Exchange

Payment of hire charges of trucks won't attract TDS in absence of any contract with truck owners

IT: Where assessee hired trucks from open market and there were no contract between assessee and truck owners, assessee was not liable to deduct tax on freight charges paid to truck owners

Wrong payment of duty on non-dutiable goods vide bill of entry can be challenged before Commissioner

Service Tax/Excise/Customs : Where assessee has wrongly paid duty on non-dutiable vide a bill of entry, he can challenge same in appeal before Commissioner (Appeals) and Commissioner (Appeals) cannot reject appeal on ground that there was no 'order' passed by assessing authority

Assessee eligible for sales tax exemption on rice and bran; he was also eligible for purchase tax on

CST & VAT : Kerala VAT - Where assessee was engaged in manufacture of rice and was eligible for exemption from sales tax on sale of rice and bran, it was not liable to pay purchase tax under section 5A on purchase of paddy from agriculturists/unregistered dealers

Creditor's objection to arrangement scheme of Satyam was quashed as lacunae in liquidator's report w

CL : Where in a scheme of amalgamation, shareholders were not aggrieved about management of company and only raised a preliminary objection that reports of Official Liquidator (OL) were not in accordance with section 394 of Act, 1956, since opinion of OL or RD about management of affairs of company could only be an opinion which could have no value, such objection was to be dismissed

Forex gain arising from transaction with AE would form part of operating revenue for computing opera

IT/ILT: Foreign exchange gain on realization of consideration for rendering software development services should be regarded as part of operating revenue

Admitting an appeal by HC couldn't mean that issue was debatable; penalty couldn't be quashed on thi

IT : Unless there is any indication in order of admission passed by High Court, simply because tax appeal is admitted, would not give rise to presumption that issue is debatable; penalty under section 271(1)(c) could not be deleted on this ground

Payment of electricity transmission charges doesn't attract TDS under sec. 194-I

IT : Where assessee, engaged in power distribution, entered into Bulk Power Transmission Agreement (BPTA) with MSETCL and Power Grid Corporation of India Ltd. (PGCIL) for transmission of electricity and for use of their transmission system from generation point to distribution point across different regions, since transmission charges were not amount paid under any arrangement for use of land, building, plant and machinery etc., said charges did not amount to rent requiring deduction of tax at

Free supply of electricity by recipient of service to manufacture oxygen wasn't liable to service ta

Service Tax : Electricity supplied by customer for operation and maintenance of oxygen generating plant at customer's premises cannot form part of value of such operation and maintenance services, because said electricity is an input used in manufacturing oxygen meant for use of customer and not an input used in providing services

Admitting an appeal by HC couldn't mean that issue was debatable; concealment penalty couldn't be qu

IT : Unless there is any indication in order of admission passed by High Court, simply because tax appeal is admitted, would not give rise to presumption that issue is debatable; penalty under section 271(1)(c) could not be deleted on this ground

Windmill generators eligible for 100% depreciation as they are part of windmill power projects

IT : Wind electric generators were part of wind power projects which could not be operational without wind electric generators, and therefore, electric wind generators were eligible for higher rate of depreciation

No denial of input credit just because a part of expense is reimbursed by holding company

Cenvat Credit : Merely because part of cost of input services is reimbursed by parent company, credit thereof cannot be denied to assessee, as financial arrangement between subsidiary and parent company has no connection or relevance for Cenvat Credit

No sec. 14A disallowance during current year if major investments in securities were made in earlier

IT : Where assessee had sufficient surplus funds to make major part of investment in interest free securities in preceding year and moreover there was negligible increase in investment during relevant year, impugned disallowance made under rule 8D(2)(ii) and (iii) was to be deleted

Tribunal may extend stay of demand beyond 365 days if delay in disposal of appeal isn't attributable

Excise & Customs : Tribunal may extend stay of demand beyond 365 days, if delay in disposal is not attributable to assessee; for said purpose, assessee may make a fresh interim stay application just before/after expiry of 365 days

Andhra Pradesh VAT : Exemption granted under old Sales Tax Law couldn't be continued under new VAT L

CST & VAT: Andhra Pradesh VAT - Where State Government of Andhra Pradesh, under a concession agreement dated 17-9-2004, had granted exemption to assessee, a works contractor, from payment of sales tax under Andhra Pradesh General Sales Tax Act, 1957 for a period of 50 years and in meantime Andhra Pradesh Value Added Tax Act, 2005 came into force from 1-4-2005, since VAT Act unlike 1957 Act did not confer any power on Government to grant exemption, assessee was statutorily obligated to deduct tax

Signature of CIT on show cause notice revealed that he had obtained satisfaction for making revision

IT : Having put his signature in approval of draft show-cause notice, Commissioner had complied with provisions contained in section 263, and, thus challenge by assessee on account of non-recording of requisite satisfaction in said notice was not sustainable

Tribunal can't dismiss restoration application by citing lack of power of review

Service Tax : Restoration application filed, under rule 20 of CESTAT (Procedure) Rules, for setting aside an ex parte order cannot be regarded as an application for review; same must be allowed if assessee's non-appearance was for sufficient cause

FDI Policy prohibits non-equity investment in real estate sector

FEMA : FDI Policy prohibits non-equity investment in real estate sector

Chit dividend paid by Chit fund Co. to its members couldn't be treated as interest; not liable to se

IT : Chit dividend paid by chit fund company to its members is not interest falling under section 2(28A) and, consequently, no deduction of TDS under section 194A is required to be made

Addition of AMP exp. couldn't be deleted because profit margin of assessee matched with that of comp

IT/ILT : Addition for AMP expenses cant be deleted only because assessee's profit margin matches those of comparables

Department had to release seized cheque as it would not impede investigation

Excise & Customs : Since return of cheques cannot be said to stifle or impede investigation, hence, department was directed to release cheques seized from assessee

HC affirms Set Com order as application was rightly admitted and there was true disclosure of additi

IT: Where at time of filing application before Settlement Commission, assessment proceedings were still pending and, moreover, disclosure of additional income appeared to be prima facie full and true, impugned order passed by Settlement Commission to proceed with application did not require any interference

Renting of tents, cutlery and furniture on occasion of marriage is deemed sales under Rajasthan VAT

CST & VAT : Rajasthan VAT - Renting out of tents, cutlery, furnitures and carpets by assessee, a tent house, would be covered by definition of sale in section 2(35)(iv)

No exclusion of comparable due to business restructuring if it doesn't affect segment comparable wit

IT/ILT : A company earning income from infrastructure management services and e-learning and digital consulting is incomparable to company providing software design and development services

'LED video display boards' are temporary structures; entitled to 100% depreciation

IT : Where pre-requisite conditions for allowance of deduction under section 80-IA(4) had been satisfied in initial year, same could not be questioned in succeeding years unless and until revenue disturbed finding for initial assessment year

Notice served at old address of assessee was void when assessee had already informed new address to

Excise & Customs : When assessee has informed of his changed address to department, service of order/notices, etc. ought to be effected at changed address; hence, sending at old address cannot be regarded as complete service so as to set time-limits in motion

Offering additional income to end a scuffle couldn't be deemed as failure to make fair disclosure be

IT : Where there was no material with department to justify a demand of further amount from assessee and a sum was offered by assessee to put a quietus to matter, order passed by Settlement Commission to grant immunity from penalty and presecution in terms of section 245H could not be interfered with

New Circular couldn't be used to demand tax for prior period if first Circular had provided exemptio

CST & VAT : Karnataka VAT : Where first clarification dated 3-6-2006 had provided that 'white oats were exempt' and subsequent clarification dated 20-1-2010 provided that 'white oats were taxable', said subsequent clarification would be effective only from 20-1-2010 and no demand can be raised prior to said date

Sum received on sale of carbon credit is capital receipt

IT: Amount received by assessee on account of clean development mechanism (Carbon credits) was capital in nature

AO couldn't treat payer as assessee-in-default without examining his submission justifying non-deduc

IT: Assessing Officer couldn't treat payer as assessee-in-default without examining his submission justifying non-deduction of tax

Lacquering, lamination and conversion of films into various shapes for packaging amounts to manufact

Excise & Customs : 'Lacquering and laminating' of films and converting it into several shapes/sizes for use in packaging amounts to 'manufacture' and therefore, credit may be taken and used for payment of duty thereon

No disallowance due to TDS default on reimbursement if agent had already deducted TDS while making p

IT : No disallowance can be made under section 40(a)(ia) on account of reimbursement of expenses incurred by agent on behalf of assessee for transportation when obligation to deduct tax at source was complied with by agent for and on behalf of assessee

Delay in filing appeal due to misplacement of papers in counsel's office was condonable

Service Tax/Excise/Customs : Delay in filing appeal due to misplacement of papers in counsel's office must be condoned in interests of justice, as : (a) appeal involved substantive issues, (b) delay was not mala fide and (c) delay was not inordinate but only of 92 days

'OLA' abused its dominance by providing huge discount to customers and incentives to drivers in Beng

Competition Act: Where OP running radio taxi services under brand name OLA was dominant in relevant market of radio taxi services in city of Bengaluru and was offering huge discounts to its customers and incentives to drivers at cost of bearing losses, OLA was following predatory pricing to oust other players and was abusing its dominant position in relevant market

Cost of additions or improvements on habitable house is also eligible for sec. 54F relief

IT: Where assessee while computing indexed cost of acquisition had taken value of sold asset as on 1-4-1981 at Rs. 280 per sq. ft. but as per Govt. notification value was at Rs. 45 per sq. ft., assessing authority was right in recording opinion that income chargeable to tax escaped assessment under section 147

After Delhi HC Gujarat HC also held that ITAT can extend stay beyond 365 days if delay isn’t due to

IT : ITAT may extend stay of demand beyond 365 days if delay in disposing appeal not attributable to assessee

After Delhi HC Gujarat HC also allows extension of stay by ITAT beyond 365 days as delay wasn't due

IT : ITAT may extend stay of demand beyond 365 days if delay in disposing appeal not attributable to assessee

Cash deposit couldn't be held as unexplained if such amount was surrendered during search and reflec

IT: Where Assessing Officer made addition to income of assessee on account of cash deposited by assessee in bank, fact that such amount was surrendered during search and tax had been duly paid and cash had been duly reflected in wealth tax return, no addition was called for

Arranger fee paid to bank for mobilizing deposits isn't 'FTS' and not liable to TDS

IT/ILT: Admissibility of head office expenditure of a PE is to be governed by article 7(3) of Treaty between India and UAE with effect from 1-4-2008

Exporters Warn Of Layoffs From Continuing Export Decline

The Federation of Indian Export Organisations (FIEO) has warned that the continuing decline in exports would result in layoffs besides putting pressure on the current account deficit (CAD).

The statement came a day after Reserve Bank of India Governor Raghuram Rajan's warning that the global economy is on the brink of a 1930s-type Great Depression.

"The global economy, which hitherto was in challenging phase, is entering into a dangerous stage which will have ominous implications for India and the world," FIEO president S.C. Ralhan on Saturday said in a statement here.

Ralhan said that based on the current order booking position, he is apprehensive that exports may significantly decline in volume in the months ahead, which will result in layoffs in jobs.

"It would be a big setback for the country, which has kept employment creation its top priority and is aiming to create 10 million jobs every year," he said.

"If exports continue to move in negative territory, it will sooner or later put pressure on the CAD (current account deficit) also and may derail rebuilding of the economy which the new government is keen to do as forex reserves will not provide the cushion which the exports provide," Ralhan added.

India's merchandise exports continued to decline for the second month this fiscal, this time down by over 20 percent at $22.35 billion in May from $27.99 billion in the like month of the previous year, official data showed earlier this month.

Cumulatively, for the first two months of this fiscal, exports at $44.40 billion were down 17.21 percent over that during April-May
2015.

Saying that he was in full agreement with the RBI governor, Ralhan also said that the consecutive six-month decline in exports shows that the current level of state support for exports is not sufficient.

Rajan, who had predicted the 2008 US financial collapse, has been warning that global markets are now at the risk of a crash due to the competitive loose monetary policies being adopted by developed economies.

Pointing to the very low interest rate policies of the US Federal Reserve, the Bank of Japan and the Bank of England in a bid to stimulate their economies, Rajan has been warning that emerging markets are especially vulnerable to big shifts in capital flows triggered by the unprecedented monetary accommodation in rich countries.

Source:thestatesman.com

 

Volkswagen, Ford And Nissan Car Exports From India Exceed Domestic Sales

Foreign carmakers that entered India in a bid to target domestic markets have seen increased exports, which are well over their local sales.

FY15 saw car exports from India increase substantially. Three of the manufacturers- Volkswagen, Ford and Nissan have exported more cars than they have sold in India for the period 1st April 2014 to 31st March 2015.

These new companies have set up operations in India to cater to the demands of local markets as well as that of exports. This has allowed the companies to maintain optimum capacity utilization during periods when domestic demand is lower than expectations.

German automaker, Volkswagen exports of Vento increased by 74.45% to 56,064 units as against exports of 32,447 units in FY14. VW Vento was created for the Indian market but found increased acceptance in countries like Mexico and South Africa. Nissan exported substantial volumes of both the Micra and Sunny.

Nissan produced 82,271 units of Micra out of which 76,120 were exported while 44,593 units of Sunny were produced with 38,759 units exported. Nissan exports for period FY15 stood at 65-75% of total vehicles produced in the country. Ford also increased exports from India during the same period with added demand for its compact SUV EcoSport.

While exports of foreign car makers increased substantially, exports of Hyundai and Maruti Suzuki also improved significantly with India exporting 19.3% of 3.22 million passenger vehicles produced during 2014-15. FY15 saw Hyundai retain the title of being the largest PV exporter from India, followed by Nissan and Maruti. Overall, the five major automakers – Hyundai, Maruti, Nissan, Ford and VW contributed over 93% of exports volumes during the period FY15.

Source:rushlane.com

Sugar Prices Continue Bearish Trend, Mills Hunt Export Orders

The country has received 21 per cent more rainfall than normal till now, according to the India Meteorological Department (IMD). IMD data shows the quantum of rainfall between June 1 and 22 stood at 126.1 mm, which is 21 per cent above normal from the benchmark of 103.8 mm arrived on the basis of a 50-year average.

By June 25, the southwest monsoon covered the whole of the country more than two weeks ahead of the normal schedule in a year that was forecast to see below-average rains. This is certainly bound to bring cheers to farmers of all kharif crops, including sugarcane. The rain god would certainly help sowing activities over the next few weeks. The Met department has predicted that rainfall over the country is likely to be 92 per cent of long period average (LPA) during July and 90 per cent of LPA during August. LPA is calculated on the basis of the average annual rainfall recorded between 1951 and 2000 (89 cm) during the June-September period.

India produces around 300-350 million tonne of sugarcane, 24-26 million tonne of white sugar and 6-8 million tonne of jaggery and khandsari a year. The sugar industry also produces about 2,700 million litres of alcohol, 2,300 mw power and multiple allied products. A recent Care Ratings report said India is expected to remain a major sugar producer globally and the industry is expected be a net exporter during the 2015-16 marketing year for the sixth sugar season (SS), which runs from October to September in a row.

This is notwithstanding the fact that the area under cane cultivation in India has dropped to 4.16 million hectares as of June 19 compared with 4.39 million hectares a year earlier, according to the Union agriculture ministry. According to estimates made by different sugar mills, exports reached 558,000 tonne from October to May. As farmers prepare to harvest the third-biggest crop ever, extending the country’s surplus for a sixth consecutive year, sugar exports from the country are set to double. In all likelihood, shipments will be 2 million tonne in the 12 months starting October 1, analysts say.

Indian sugar mills have already contracted exports of 50,000 tonne of white sugar to Sri Lanka, Myanmar, Afghanistan and Turkmenistan at $340-$345 a tonne. The cargoes are for July shipment. Sugar stocks are now expected to touch 10.3 million tonne as of October 1, when the new season starts, up 37 per cent from the previous year.

Sugar mills are getting increasingly interested in booking export orders. This can be attributed to falling prices in the domestic market, coupled with growing carry-forward stock. Last year, prices fell below the cost of production to a seven-year-low because of weak demand and mounting stockpiles, according to analysts and sugar industry officials.

The cabinet earlier this month approved interest-free loans of Rs 6,000 crore ($943 million) to help sugar mills clear Rs 21,000 crore dues to farmers. The government has also pledged a subsidy of Rs 4,000 per tonne for raw sugar exports as domestic rates have risen above global prices. Despite all these, sugar prices continue to fall.

Last week, sugar prices continued their bearish trend as a few producers sold the commodity at a discount on June 20 to ease stock burden amid limited demand. Mill-level prices dropped by Rs 20-40 a quintal, pulling down spot rates by Rs 20-30 a quintal. In futures trading, sugar prices fell by 0.73 per cent to Rs 2,169 per quintal in futures trading, as speculators trimmed positions, triggered by higher supplies from millers against low demand from bulk consumers.

Source:mydigitalfc.com

India Iron Ore Exports Plunged In March

According to latest trade statistics released by the Ministry of Commerce in India, the iron ore exports by the country dropped sharply during the month of March this year. Huge cuts were seen in export prices too. This is when compared with the same month a year ago.
 
The iron ore exports by India during March 2015 totaled 804,233 tonnes, sharply down by 56.7% when compared with the exports during same month in 2014. The country had exported 1.857 million tonnes of iron ore during March last year.

Also, export prices dropped by 25.8% over the year. The iron ore export prices averaged at $71.4 per tonne in Mar ’15 as against $96.20 per tonne in March 2014. The iron ore exports during the month valued at $27.22 million.
 
The largest destination of Indian iron ore export was Japan. The Japanese imports totaled 289,813 tonnes, accounting for nearly 36% of the total exports by Canada. The second largest export destination was China with 287,238 tonnes, followed by Iran with 198,159 tonnes. The other importers of iron ore from India during March this year were Oman (27,500 tonnes) and Nepal (1,523 tonnes).
 
The cumulative iron ore exports by India during the three-month period from January to March in 2015 totaled 1.672 million tonnes. The primary importer of Indian iron ore during the three-month period was China.

The imports by China totaled 718,558 tonnes, dropping sharply by nearly 80% when compared with the total imports of 3.561 million tonnes during Jan-Mar ’14. The other key export destinations were Japan (576,712 tonnes, +13.5%) and Iran (198,159 tonnes, +482.5%).
 
The export price during this period averaged at $63.0 per tonne, dropping by almost one-third when compared with $94.6 per tonne. The total value of exports touched $105.42 million.

Source:metal.com

Charges for setting up of import plant in India is post-importation activity, not includible in valu

Excise & Customs : Charges paid under technical services agreement entered into with foreign seller, not as a condition of sale, but, only to successfully set up, commission and operate plant after it has been imported into India, cannot be included in customs value, as they related to post-importation activity

General testing/inspection and repair of vehicles don't amount to 'Technical Inspection and Certific

Service Tax : General testing, pre-delivery inspection and rectification/repair of defects by a motor shop cannot amount to 'Technical Inspection and Certification Services'; for classification under said services, inspection and certification must be with respect to standards of functionality, utility, quality or safety 'laid down in some statute or some Guidelines'

No deduction of employee's contribution to PF if paid before due date of filing return but after due

IT: Belated payment of employees' contributions to provident fund cannot be allowed as deduction in terms of section 36(1)(va)

Fci Stuck With 24M Tonnes Of Poor Wheat

The Food Corporation of India (FCI) is saddled with 27 million tonnes of wheat. Since 90% of grain procured this year were under relaxed norms, these stocks have a shorter shelf life and must be used in 8 to 10 months.

FCI, sources said, is releasing these stocks to the public distribution system (PDS). This grain is shrivelled, broken and lacks lustre and the challenge is to release the grain into the market in less than a year.

Officials said PDS needs roughly 20 million tonnes and FCI has to sell the rest in the open market. But officials say they're worried over imports of wheat, which sells cheaper than the government-fixed rates of FCI wheat.

"If we allow more wheat to be imported by private players over and above what they've already lined up, there'll be fewer takers for FCI grain. This will result in huge waste and losses to the public exchequer," an official said.

The government, he said, should come out with a norm stipulating that the price of imported wheat can't be less than the price at which FCI is offering the grain in the open market.

"The government took a bold step relaxing norms to help farmers whose crops were hit in the unseasonal rain and hailstorm. There's need to protect domestic interest," said another official.

TOI has learnt that private players have concluded contracts to import about 5 lakh tonnes of wheat and so far about 67,000 tonnes have been imported. Another 50,000 tonnes are likely to reach India soon.

"Going by this trend we feel imports would be around 5 lakh tonne in this fiscal. Some import is needed to make maida and suji. The imports can be mixed with the domestic wheat which has suffered luster loss for this purpose," said a government official.

Source:timesofindia.indiatimes.com

 

Bangladeshi Importers Fear Price Hike Of Indian Onions Could Leave Market In Tears

Bangladeshi importers are fearing market instability after India declared it is hiking onion prices by $175 per tonne to $430, saying the news from across the border came when demands are high due to Ramadan.

Mangager of Ahmed Enterprise in Jessore, Tuhin Saha, told bdnews24.com, “Even when we were importing onions at $255 per tonne, the prices ranged between Tk 22-25 per kilogramme at the land port depending on quality.”

He added the hike would push up prices to Tk 30-35, which would destabilise the market further.“Currently, onion prices are already unstable and the rise could cause the market for local onions to become unstable.”

Milton Saha, an onion importer in Khulna, told bdnews24.com, “The decision by the Indian government to hike onion prices a second time will raise our import costs, which will affect the local market.Prices of onion rose at the end of last month ahead of the Ramadan.

Indian exporters are attributing the rise of onion prices declared by India’s National Agriculture Cooperative Marketing Federation on Friday to a fall in supply.

“There was a crisis for onions in India since last month. The arrival of fresh supply from southern India could not lower the prices,” Kartik Chakrabarty, general secretary of Petrapole Port Clearing and Forwarding Staff Welfare Association, told bdnews24.com.

“As a result, NAFED increased the price to decrease exports on the advice of the government to control prices in India.” He confirmed a fax instructing export of onions at the new price reached Petrapole LC Station from Kolkata on Sunday.

Source:bdnews24.com

Pibc Chairman For Importing Electricity From India

Chairman Pak-India Business Council (PIBC), Noor Muhammad Kasuri here Sunday said electricity, gas and petroleum products import from India was the best option for resolving energy crisis in Pakistan.

Elaborating, he said, Indian electricity transmission network was situated at a very short distance with Pakistan. “It is much easier for both the countries to connect electricity lines of each other as compared to any other country and same is the case for import of oil and gas,” he said talking to APP. He also stressed the need for boosting trade ties between India and Pakistan on the basis of mutual interest.

Kasuri said India produced more than 200,000MW electricity and has made power trade agreements with its neighboring countries like Sri Lanka, Nepal, Bhutan, Bangladesh. He said the same method could be adopted for making a deal between India and Pakistan. The Indian private and public sector companies ere ready to export electricity to Pakistan, he added. Kasuri said the option of LNG and petroleum products import from India must also be weighed as per merit.

Source:dailytimes.com.pk

Rupee Opens Lower At 63.84 Against Us Dollar

The Indian rupee on Monday weakened against the dollar, tracking losses in Asian currencies. The local unit opened at 63.84 per dollar, down 0.31% from previous close of 63.64. The Sensex index lost 1.30% or 360.77 points to 27,451.07 points in pre-opening trade.

Uncertainty led to a weak rupee as Greece stunned creditors by calling a public vote on austerity, and the European Central Bank (ECB) startled Athens by freezing aid to Greek lenders.

 

Most of the Asian currencies were trading lower. South Korean won was trading down 0.564%, Malaysian ringgit was down 0.402%, Indonesian rupiah 0.262%, Philippine peso 0.239%, Thai baht 0.224%, Singapore dollar 0.155%, Taiwan dollar 0.136% and Hong Kong dollar 0.001%.

 

The yield on India’s 10-year benchmark bond was trading at 7.85% compared with its Friday’s close of 7.81%. Bond yields and prices move in opposite directions.

 

Since the beginning of this year, the rupee has lost 1.32%, while foreign institutional investors have bought $12.82 billion from local equity and bond markets.

 

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.141, up 0.70% from the previous close of 95.47.

 

Source:livemint.com

'Keo Karpin Baby Oil' is taxable as medicine and not as cosmetics under Rajasthan Sales Tax Act

CST & VAT : Rajasthan VAT - Keo Karpin Baby Oil is taxable as medicine under Sales Tax Act and not as a cosmetics

No sec. 68 additions without making detailed scrutiny of creditors

IT: Where assessee derived income from transportation work, keeping in view assessee's turnover and nature of business, assessee's business income was to be estimated at 5 per cent

Bombay HC annoyed due to non-appointment of advocates, can dispose of revenue's appeals in their abs

Excise & Customs : High Court expresses its displeasure with non-appointment of advocates to argue appeals on behalf of revenue and warns Commissioners to take immediate steps to replace old Advocates, otherwise Court would be constrained to dispose of them in their absence