Forex loss or gain shall be considered while determining operational cost in transfer pricing cases

IT/ILT : Profit or loss arising out of foreign exchange fluctuations has to be taken into consideration while arriving at operating cost in transfer pricing matters

Winding-up plea couldn't be initiated against debtor-Co. for non-payment of time-barred debts

CL : Where company petition for winding up of respondent company on its inability to pay debts filed by petitioner-company was barred by limitation, petition was to be dismissed

No denial of registration to trust just because its incidental activities were profitable in nature

IT : Where assessee's primary purpose remained advancement of objects of general public utility, even if an incidental or ancillary activity for purpose of achieving main purpose was profitable in nature, denial of registration was unjustified

FinMin unveils guidelines of 'Gold Monetization Scheme' and 'Gold Bond Scheme'

IT : Introduction Of Gold Monetization Schemes

M.S. Plates, Angles and Channels used in construction of plant are eligible for credit as capital go

Cenvat Credit : M.S. Plates, M.S. Angles, M.S. Channels and H.R. Plates purchased and utilized in construction/erection of plant are eligible for credit as capital goods

Search proceedings can't be initiated against an issuer of seized cheque

IT : When cheque issued by assessee to searched person was found from searched person, cheque did no more continue to belong to assessee; further where no satisfaction was recorded by Assessing Officer of person searched and cheque was also undated, conditions for issuing notice to assessee under section 153C were not satisfied

No concealment penalty if income not found during search, was voluntary declared post search

IT: Where assessee filed revised return and had suo motu offered additional income and same was not detected during any course of action by revenue authorities, it could not be said to be a case of concealment of income inviting penalty action under section 271(1)(c)

ITAT suggests legislative amendment to give more time to TPO for passing orders

IT : Sub-section (3A) of section 92CA provides that where a reference is made to TPO, an order may he made at any time before sixty days prior to the date on which limitation period referred to in section 153, or as the case may be, in section 153B, expires

Property let out by trust to 'Airlines' for imparting technical training as per its objects is chari

IT : Where assessee, educational society, let out part of its property for efficient utilization of its assets with a larger purpose of imparting technical training in said campus, assessee could be said to be carrying on a charitable activity and income therefrom was exempt from tax

Apex Court remands matter to Tribunal for determining classification of wafers

Excise & Customs : Where Tribunal had not examined issues : (a) whether Chekkers Choco wafers contained chocolate or not; and (b) whether cocoa/chocolate 'sandwiched between wafers' would amount to 'contained in wafers', matter was remanded back for consideration afresh

No notice required to recover refund which was granted by AO and reversed by appellate authority

Service Tax/Excise/Customs : Recovery of refunds granted by adjudicating authority and reversed by appellate authority, does not amount to recovery of 'erroneous refund' as per section 11A; hence, no show-cause notice is required therefor

CBDT focuses on critical recovery area of outstanding tax; raises limit for monitoring of dossier ca

IT/ILT : Section 268A Of The Income-Tax Act, 1961 – Filing Of Appeal Or Application For Reference By Income-Tax Authority – Monitoring Of Dossier Cases – Re-Fixation Of Monetary Limits For Various Income-Tax Authorities

No reassessment on basis of audit objection without independent opinion of AO that income had escape

IT : Assessing Officer could not initiate reassessment proceedings merely on basis of objection raised by audit party to effect that assessee had been granted higher rate of depreciation in respect of earth moving machinery

Inputs sent to affiliate to generate electricity were eligible for credit as electricity was used in

Cenvat Credit : Electricity generation is integral part of process of manufacture; hence, inputs/pet-coke sent to sister unit for generation of electricity would be eligible for input credit, if resultant electricity is used for manufacture of final product

SEBI enhances disclosure requirement for NBFCs on issuance of debt securities

SEBI : Disclosures to be made by NBFCs in offer documents for public issue of debt securities under Sebi (issue and listing of debt securities) regulations, 2008

Goods taxable at 4% shall now be taxable at 5% under Dadra and Nagar Haveli VAT

VAT /INDIAN ACTS & RULES : Dadra And Nagar Haveli Value Added Tax (Amendment) Regulations, 2015 – Amendment In Regulation 4

Royalty paid to buyer for use of its brand name can't be deemed as additional consideration

Central Excise : Royalty paid by seller to buyer for use of buyer's brand does not amount to 'additional consideration', as it does not flow from buyer to seller; hence, same is not includible in transaction value

No penalty due to clerical mistake of showing loan repayment in cash instead of through cheque

IT : Where assessee-society repaid loan by account payee cheque but due to clerical mistake it was wrongly shown as cash payment, as there was no violation of section 269T, penal provision of section 271E would not be attracted

Woofers aren't part of TV; to be valued separately - Supreme Court

Central Excise : Where it was found that woofers were not part of Colour TV and were mere accessories, they were to be valued separately from Colour-TV; further, MRP-based assessment applicable to Colour-TV would not apply to 'woofers'

Goods manufactured by job-worker include transport and unloading of inputs at its premises

Excise & Customs : Transport of inputs from principal manufacturer to job-worker and unloading of said inputs at job-worker's premises (whether by own labour or hired labour) is includible in value of goods manufactured by job-worker

In case of trader sec. 68 and sec. 69C would be applicable if he failed to prove genuineness of cred

IT : In case of a trader section 68 as well as section 69C would be squarely applicable to sundry creditors, because credit purchases are nothing but expenditure and if sundry credits are not proved by assessee addition can be made by Assessing Officer by resorting to section 69C

ITAT imports 'make available' clause from India-Portugal DTAA by applying MFN clause of India-Sweden

IT/ILT : Assessee, a resident of Sweden, can claim benefit of conditions imposed for bringing to tax managerial fees in treaty between India and Portugal at lower rate on basis of protocol to DTAA between India and Sweden on principle of most favoured nation (MFN)

IRDA notifies registration norms for corporate agents; allows them to sell policies of upto 3 insure

INSURANCE/INDIAN ACTS & RULES : IRDAI (Registration Of Corporate Agents) Regulations, 2015

Accused held guilty of cheque dishonouring as complainant produced ledger books to show existence of

Negotiable Instruments Act : Where complainant produced ledger books to prove transaction by which liability of accused arose, complainant had discharged its initial burden to prove guilt of accused under section 138 on dishonour of cheque issued in discharge of that liability

'Facility Sharing Agreements' between Group Cos. at ALP won't be treated as 'real estate business' u

FDI/FEMA/ILT : Clarification On Fdi Policy On Facility Sharing Arrangements Between Group Companies

Now private companies can take loan from relatives of its directors

COMPANIES ACT, 2013/AAA/INDIAN ACTS & RULES : Companies (Acceptance Of Deposits) Second Amendment Rules, 2015 – Amendment In Rules 2 & 3

Excise Act doesn't contain any provision for proceeding against legal heir of deceased

Excise & Customs : In absence of any machinery provisions to assess and collect tax from a deceased person/dissolved firm, all proceedings against such deceased person/dissolved firm abate and therefore, proceedings cannot be continued against legal representatives

No reassessment to disallow additional depreciation without any failure of assessee to disclose mate

IT: Where claim of additional depreciation had been allowed during course of scrutiny assessment after verification of all details, in absence of any failure on part of petitioner, Assessing Officer could not have assumed valid jurisdiction to reopen assessment

Receipt of advance from Co. wasn't deemed dividend as money lending was substantial part of its busi

IT : Where assessee, holding 51 per cent shares in a company, obtained loan from its reserves and surplus, since out of total funds available with said company, more than 75 per cent were deployed in loans and advances, amount received by assessee could not be considered as deemed dividend because of exclusion by item (ii) to section 2(22)(e)

Payment under Voluntary Retirement Scheme is revenue exp.

IT: Where assessee, a manufacturer of paper, incurred expenditure on ucalyptus tree plantation, pre-plantation expenditure incurred by assessee was allowable as revenue expenditure

Goa VAT dealers who remained unassessed beyond limitation period can apply to Commissioner for refun

VAT/INDIAN ACTS & RULES : Goa Value Added Tax (Eighth Amendment) Act, 2015 – Amendment In Section 29

SEZ units asked to make payment to suppliers from Foreign Currency a/c; failure would invite liabili

SEZ : Closure of advance authorization license issued as per para 4.16(a) of ftp, pending for want of payment to be received from foreign currency account

Textile Ind Seeks Shield Against Chinese Dumping

On the heels of top guns of India Inc demanding protection for the textile industry from cheap Chinese imports, textile manufacturers and associations have warned that the domestic industry would be extinct if dumping is not countered.

The industry claims that as much as 60 per cent of dumping happens from China, and unofficial estimate peg the size of this trade varying between 20 and 40 per cent of the $105-billion domestic textile industry.

"If the present level of dumping continues unchecked, the domestic textile industry will be extinct over the next few years," Chairman for Policy, Apparel Export Promotion Council Premal Udani said.

He further said when China finds that shipments through one channel has reached the official limits, it starts exporting the same goods to other countries like Hong Kong, Vietnam, Bangladesh and Cambodia for onward shipping to India to avoid customs inspections.

The impact of increasing dumping by Chinese is also felt by the largest textile manufacturers like Birla Cellulose, Century, and other textile mills among others. Indonesian and Chinese viscose yarns are being imported at nearly 25 per cent cheaper rate than domestic prices.

While import price is around Rs 150 a kg CIF, domestic prices are around Rs 200 a kg. Also, nearly 80 per cent of the fabric being imported into the country is from China, CMO, Birla Cellulose Rajeev Gopal, which is the largest viscose staple fibre (VSF) producer in the world, said. 

The government should provide a level-playing field to the textile industry across the value-chain by providing safe-guard measures against cheap imports. It should also sign FTAs with consuming markets like Europe, the US etc with preferential treatment to textile products to provide competitive advantage to Indian exports and be at par with countries like Pakistan, Bangladesh and Vietnam, Gopal said.

He also said many textile units have been shut in Bhinwandi area in Maharashtra and Surat in Gujarat, leading to huge loss of jobs. Clothing Manufacturers Association of India President Rahul Mehta said for the Rs 2-trillion ready-mades industry, the bigger issue is unofficial sale of second-hand garments through the northeastern borders as well as through SEZs like Kandla.

Source:thehansindia.com

Even job worker is entitled for sec. 80-IB benefit

IT : Where assessee carried on three kinds of activities, viz., manufacturing of plastic bags, trading and carrying out job work for manufacturing of plastic bags and polypropylene sheets for others, it was entitled for deduction under section 80-IB in respect of income derived from job work activity

Dumping Duty Only Short-Term Safeguard For Steel Firms

With the much-talked about 20 per cent safeguard duty on imported steel finally coming into force, it brings welcome relief for the steel sector, which has been struggling due to cheap imports from China and countries with which India has free trade agreements.

While the government has reacted with remarkable speed in response to an application from domestic steel producers in June, the safeguard duty on hot-rolled coils (HRC) will benefit the integrated steel producers (ISPs) only in the short term as it is likely to be applicable only for 200 days.

Earlier a government panel comprising commerce, steel and revenue secretaries had approved imposition of 20 per cent safeguard duty on imports of specific steel products from China, Japan and Korea for 200 days.Finance minister Arun Jaitley on Monday announced the government’s decision to impose a 20 per cent safeguard duty on steel imports with immediate effect. The duty on specific steel products will be valid for 200 days.

This is perhaps the first time in nearly two decades that the government is taking a series of moves to ‘protect’ the domestic steel industry since it was liberalised in the early 1990s.The safeguard duty is superior to the import duty since it is applicable to all nations unlike the import duty which excludes countries falling under free trade agreements. That said, the higher safeguard duty would benefit the ISPs, but negatively impact the companies involved in cold rolling and annealing of HR coils.

However, the players could circumvent this by importing HRC with some value addition. India’s import of iron and steel rose 58 per cent during April-June 2015, making it the country’s sixth-largest import during this period. The sector’s contribution to stressed advances stood at 10.2 per cent of the total advances at end-December 2014 and is among the top five sectors with stressed loans in the system. The Reserve Bank of India in its latest financial stability report highlighted that five out of the top 10 private steel producing companies are under severe stress.

These companies are struggling with delayed implementation of projects due to delays in land acquisition and environmental clearances among other factors.Steel imports have increased primarily from China, Korea and Japan. While the imposition of import duty of 12.5% applies to China, it does not apply to Korea and Japan, with which India has bilateral free trade pacts.

Source:livemint.com

Amended proviso to sec. 2(15) is prospective; town development activities are general public utility

IT : The proviso to Section 2(15) as substituted by the Finance Act, 2015 is applicable with prospective effect. Thus, even post insertion of such proviso but prior to April 1, 2016 activities of trade, commerce, business, etc, are not excluded from scope of charitable purpose which are in the course of actual carrying out of advancement of any other object of general public if aggregate receipts from such activity do not exceed 20% of total receipt of trust

Exemption available for works contract under repealed Sales Tax Act couldn't be carried under New VA

CST & VAT: Andhra Pradesh VAT - Where State Government of Andhra Pradesh had awarded a works contract to one 'K' for construction of a port and 'K' had entrusted work of construction to assessee, latter was rightly subjected to tax on turnover relating to works contract executed for 'K'

Amalgamation reserve couldn't be treated as benefit arising from business or profession under sec. 2

IT: Where four companies amalgamated with assessee-company, amalgamation reserve being difference in value of share capital of said companies prior and post amalgamation, coming into existence consequent to said merger could not be regarded as 'profit and gains from business profession' under section 28(iv)

Soyabean Oil Imports Touch All-Time High Of 4.06 Lt In Aug

India's soyabean oil imports have touched an all-time high of 4.06 lakh tonnes (LT) in August and the total inward shipment of vegetable oil in the same month has increased by 3 per cent to 13.74 LT.

"The import of soyabean oil is highest ever since it was permitted by the government in 1994. The inward shipments of soyabean oil have gone up mainly due to decline in its prices by USD 200 per tonne in last one year," Solvent Extractors Association (SEA) Executive Director B V Mehta told PTI.

Soyabean oil, which was costing USD 897 per tonne in August last year declined to USD 699 per tonne in the same month this year, he added.

The total import of vegetable oils during August 2015 is reported at 13.74 LT compared with 13.33 LT in the same month last year, Mumbai-based industry body said in a statement. Out of the total vegetable oil imported by the country in August, edible oil was 13.64 LT and non-edible oil was 9,477 tonnes.

The overall import of vegetable oils during November- August period rose by 23 per cent to 117.25 LT as against 95.25 LT in the same period last year.

Expressing concerns over the sharp rise in imports, SEA said: "India is being used as a dumping ground for excessive supply of edible oils in the world market."

"Excessive import has put tremendous pressure on the local prices, which are at a level where Indian oilseeds growing farmers are in distress and losing interest in oilseed crop," it added.

The country's dependence on imported oil has further increased to nearly 70 per cent, an alarming situation for the country's food security, it added.

India meets 60 per cent of its annual vegetable oil demand of 17-18 MT via imports. Palm oils make up over 70 per cent of the country's total vegetable oil imports.

Source:business-standard.com

FEMA provisions inserted by Finance Act, 2015 come into force wef. Sep 9, 2015

FEMA/ILT/INDIAN ACTS & RULES : section 138 of the finance act, 2015 – amendments in foreign exchange management act, 1999 – notified date on which provisions of clause (b) of said section, sections 140, 141, 142 and clause (ii) of section 143 of the foreign exchange management act, 1999 to come into force

Modifications In Electronic And Physical Iecs Will Now Be Done Online: Dgft

The modifications in the Electronics Importer Exporter Codes (IECs) as well as physical IECs can now be carried online by paying a fee of Rs 200 from September 21, Directorate General of Foreign Trade (DGFT) has said.
 
DGFT, on Monday, said in a public notice, “Modifications in Electronic IECs as well as physical IECs will now be carried out online. Applicants can seek modifications in their e-IEC’s/ IEC’s by paying a fee of Rs 200 online from the 21st of September, 2015.”
 
The new formats of online application form for issue/modification in IEC was notified vide Public Notice on November 27, 2014. Subsequently online application for IEC was operationalised with effect from February 1, 2015.
 
“Now, in exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy (2009-2014), the Director General of Foreign Trade hereby notifies operationalization of modification in e-IEC’s as well as the IEC’s issued in physical format from the 21st of September, 2015,” it said.
 
Applicants seeking modification in their IEC’s may log on to dgft.nic.in and click on Importer Exporter Code (IEC) under Quick Links and select “Modify your IEC” to amend their e-IEC’s and IEC’s in physical format. Henceforth all modifications in e-IEC’s/ IEC’s would be done online only, the notification added.

Source:knnindia.co.in

Rupee Opens Flat At 66.35 Per Dollar

The Indian rupee has opened marginally lower at 66.35 per dollar on Tuesday against previous day's close of 66.33.

Ashutosh Raina of HDFC Bank said, "The market is keenly awaiting the outcome of FOMC meeting later this week. Markets expect Fed to keep rates on hold in this meeting in the face of global growth concerns."

"The USD-INR pair continues to trade in the 66-66.50/dollar range and should continue to trade this range till some clarity on policy action from central banks," he added. The dollar remained close to a three-week low against a basket of major currencies ahead of this week's Federal Reserve meeting.

Source:moneycontrol.com

 

Sum received under JDA for identifying purchaser for land owner was taxable on due basis and not as

IT : Where assessee, a real estate company, received certain sum for identifying purchaser for third party and was following mercantile system of accounting, sum received by it would be taxable in current year and not when project would be complete

Salary and interest paid to partners are deductible even if income is estimated by AO on basis of Ne

IT : Where assessment was done under section 145, normal deductions were to be allowed; Assessing Officer could not deny deductions of salaries to partners and interest on financial, charges to assessee firm on ground that said exercise was akin to one under section 44AD under which separate deductions provided for in sections 30 to 38 are impermissible

Transaction occasioning movement of goods from one State to another is inter-State sale under CST Ac

CST & VAT : Central Sales Tax - Where assessee operated rice mill at Yanam in Union Territory of Pondicherry and it in accordance with a memo issued by Government of Andhra Pradesh purchased paddy within State of Andhra Pradesh, transported it to its rice mill at Yanam, milled paddy in its rice mill and supplied prescribed percentage of levy rice to FCI, Kakinada in Andhra Pradesh, sale of rice had taken place in course of inter-State trade and commerce

IRDA notifies norms for minimum limits of annuities & other benefits under life insurance policies

INSURANCE/INDIAN ACTS & RULES : IRDAI (Minimum Limits For Annuities And Other Benefits) Regulations, 2015

Sum received for maintenance services linked to supply of software isn't taxable as royalty

IT/ILT : Consideration received by assessee for supply of 'contact solutions' used for better management customer interaction, comprising of sale of hardware alongwith license of embedded software to end user is not royalty under article 12 of DTAA between India and USA

Book entry doesn't create income but recognizes it; income doesn't arise merely on reversal of wrong

IT : Where assessee credited her capital account with amount of sundry creditors written back but failed to furnish anything except name of parties and even reason for write back was not stated, impugned sum was assessed as income from other sources under section 56

Now Commissioner can select cases for reassessment within 3 calendar years under Chhattisgarh VAT

VAT/INDIAN ACTS & RULES : Chhatisgarh Value Added Tax (Amendment) Act, 2015 – Amendment In Section 21

AO couldn't raise higher TDS demand due to non-furnishing of PAN by NRs while issuing sec. 200A inti

IT/ILT : Where assessee made royalty payments to non-residents, since benefit of DTAA was available to said recipients, their TDS liability could not be more than rate prescribed under DTAA or Act whichever was lower

Pick and drop facility extended to employees is eligible for credit an input service

Cenvat Credit : Transport/Rent-a-cab services for transporting staff to factory and return back to their place of residence, is eligible for credit as input service; however, credit would not be allowed up to extent cost is borne by employee

FEMA provisions inserted by Finance Act, 2015 comes into force wef Sep 9, 2015

FEMA/ILT/INDIAN ACTS & RULES : section 138 of the finance act, 2015 – amendments in foreign exchange management act, 1999 – notified date on which provisions of clause (b) of said section, sections 140, 141, 142 and clause (ii) of section 143 of the foreign exchange management act, 1999 to come into force

Book entry don't create income but recognizes it; income doesn't arise merely on reversal of wrong e

IT : Where assessee credited her capital account with amount of sundry creditors written back but failed to furnish anything except name of parties and even reason for write back was not stated, impugned sum was assessed as income from other sources under section 56

Dispatching notice intentionally at incorrect address couldn't be deemed as valid service of notice

Excise & Customs : Where department was aware of assessee's correct address as per certificate of registration, dispatching notice/order at different/incorrect address does not amount to 'service' thereof; therefore, entire proceedings are liable to be set aside for violation of principles of natural justice

Forex loss in forward contract isn't speculative as contract is made to hedge loss in export-import

IT : Foreign exchange loss incurred by assessee on account of entering into forward contracts with banks for purpose of hedging loss in connection with its import/export business has to be regarded as business loss subject to condition that maturity of hedge does not exceed maturity of underlying transaction

Ponds specially designed for breeding of prawns to be treated as plant for depreciation purposes

IT: Ponds which were specially designed for rearing/breeding of the prawns have to be treated as tools of the business of the assessee and the depreciation was admissible on these at the rates applicable to plant and machinery

Imported goods eligible for SAD exemption only if VAT is leviable thereon: Apex Court

Customs : If goods are tax-free and not chargeable to sales-tax on their resale by importer, the said goods cannot be exempted from Special Additional Duty (SAD) of customs or special CVD at time of import

Order of AO wasn't erroneous if he had taken net profit rate of contractor above normal rate after s

IT: In case of civil sub-contract normal profit rate was about 5 per cent; where Assessing Officer worked out same to be 6.4 per cent in assessee's case, after scrutiny, said order could not be regarded as erroneous

India: Pomegranate Exports May Hit Record 60K Tonne

Maharashtra is all set to export record 40,000 to 60,000 tonne of pomegranates in the coming season beginning November. In 2014-15 season, the state had exported a record 40,000 tonne of pomegranate, an increase of nearly 33% compared to the previous season.

Prices have picked up after a poor start and doubled from R40-50 per kg to R100 per kg for farmers, said Prabhakar Chandane, chairman, Maharashtra Pomegranate Growers Research Association.

While the deficient monsoon has affected other crops, for pomegranates, less rains mean lesser possibility of fungal infections, he pointed out. Cultivation of pomegranates is on the rise not only in the state but also across the country, Chandane said.

In addition to Maharashtra, pomegranates are now being cultivated in Gujarat, Madhya Pradesh and Karnataka. Around 1.25-1.3 tonnes of production is expected in the coming season.

While the government quotes figures of 9 million hectares, the association says the crop is cultivated on some 14 million hectares, 1.5 times more than the earlier acreage, he said.

Maharashtra contributes 90% to the country’s total pomegranate production. The second season of harvesting is to come up in January-February period. The first season for the crop comes up in the July to September period.

Normally, the export season begins in November every year and is completed by March. However, the season extended up to April this year, Chandane said.

For exports, West Asia continues to remain one of the biggest markets for India, Chandane said. This year, India also exported pomegranates to countries such as Bangladesh, Bahrain, Sri Lanka and the Netherlands.

Although Russia emerged as a new market last year, traders are not keen to send products there owing to payment issues in the previous year, Chandane said. The UK, the UAE, the Netherlands, Egypt, Turkey, Bahrain and Kuwait are other important markets for the fruit.

In addition to increased acreage, new markets are also opening up, he said. In all likelihood markets in the US are also expected to open up next year.

Source:freshplaza.com

Lease rentals paid to start a new project wasn't preoperative exp. if such project formed part of ex

IT : Where a project was not a new business of assessee but was part and parcel of same business, lease rent expenses and hire purchase charges in respect of said project was allowable as revenue expenditure

Bangladesh Rice Farmers Face Double Whammy With Lower Prices And Higher Supplies

Bangladesh rice farmers are not happy despite the country achieving record 34.708 million tons production (milled basis) in FY 2014-15 (July - June) due to prevailing low prices, according to local sources.

They are the current prices are not even sufficient to cover their production costs. Most of the farmers are receiving Tk 460 per 40 kilograms (around $145 per ton) for hybrid and high-yielding varieties, about 20% lesser than the production costs.

Farmers have been complaining of lower prices since April this year due to increased local production and higher imports from India. The country reportedly imported about 1.45 million tons of rice during FY 2014-15, about four times more higher than in 2013-14, despite a record production due to prevailing low global rice prices, according to the Ministry of Food. They told local sources that the total availability of rice has crossed the local consumption demand of around 3 million tons and has put a downward pressure on prices.

Also farmers and traders are mainly concerned that increased imports have lowered demand for local rice further pushing down the prices. Average price of coarse rice currently stands at around Tk 30-34 per kilogram (around $377-$428 per ton), compared to around Tk 32-37 per kilogram (around $402-$465 per ton) in April this year and around Tk 35-38 per kilogram (around $440-$477 per ton) during the same time last year, according to data from Trading Corporation of Bangladesh.

They noted that the imposition of 10% duty on rice imports did not provide the desired effect as the Indian suppliers lowered their rates. They are expecting the current floods that are affecting some rice growing areas to push up the prices to some extent.

Floods that are a result of heavy rains have damaged more that 260,000 hectares of Aman crop land, local sources quoted the Department of Agricultural Extension (DAE). Farmers are reportedly encouraged to grow flood-tolerant rice varieties such as BRRI dhan51, BRRI dhan52, BINA dhan11 and BINA dhan12 to ensure that the production is not impacted.

USDA estimates Bangladesh’s MY 2015-16 (July 2015 – June 2016) milled rice production at around 35 million tons, slightly up from an estimated 34.5 million tons in MY 2014-15. It estimates Bangladesh to import around 1.2 million tons of rice in 2015.   

Source:- Oryza.com

 

Imported Pulses To Arrive In India From Sept. 23

At the second meeting of the Inter Ministerial Committee on Prices and Availability of essential food items here on Monday and it was appraised that 2500 MT of the imported Tur will arrive in three tranches at Chennai Port and similar quantity of around 2500 MT of Tur will arrive in four tranches beginning from 23rd September, 2015.

The entire consignment of 5000 MT of Tur would be received at the two Ports by 20th October, 2015. To further improve the availability, import of additional 5000 MT of Tur has also been approved. MMTC has already floated a tender of procurement of Tur on 11th September, 2015 with the bid opening date of 21st September, 2015.

With respect to Urad MMTC indicated that 5000 MT of Urad from Myanmar will be received at the Chennai and JNPT. Both the port will received around 2500 MT each by 20th October, 2015.

As regards imports of Onion MMTC informed that about 1000 MT is expected by 1st week of October, 2015 and another 1000 MT by 2nd & 3rd week of October, 2015 at JNPT, Mumbai. As directed by Union Minister for Consumer Affairs and Public Distribution in the review meeting held on 10th September, 2015 MMTC have also floated a tender for import of 1000 MT of onion on 11th September, 2015 and the bid would be opened on 18th September, 2015.

These imports are expected to improve the availability of pulses and onion and moderate their prices.

Source:business-standard.com

Depreciation includes depletion of natural resources; deductible for computing book

IT : Where voting power of assessee company had been unconditionally acquired by company in which public is substantially interested, assessee company would become a company in which public was substantially interested; assessee-company's claim of brought forward losses would be allowed under section 79

India To Impose Uniform Import Duty On Some Steel As Imports Surge

India will soon impose a 20 percent import tax on some hot-rolled steel products for 200 days, two sources said on Monday, as the government investigates a threat to domestic companies from rising supplies from China, Japan, South Korea and Russia.

The products together accounted for more than half of the 5.5 million tonnes of steel imported last fiscal year into India, the world's only major growing market at a time when top consumer and seller China is slowing.

Struggling to compete due to higher borrowing and raw material costs, Indian steel companies had successfully lobbied to get duties on some products raised to 12.5 percent and quality checks strengthened in recent months.

But the duties did not apply to Japan and South Korea, countries with which India has free trade agreements, prompting the companies to seek a safeguard duty that applies to all.

An Indian steel company executive, who declined to be named, said the so-called safeguard duty would not completely halt imports of the products but prevent foreign suppliers from "predatory pricing" when local production is rising.

Acting on a complaint from Steel Authority of India (SAIL), JSW Steel and Essar Steel, the Directorate General of Safeguards said last week any delay in implementing the duty would cause such damage to the local industry that would be "difficult to repair". (bit.ly/1Oa7c7e)

The government has accepted its recommendation and a notification on a temporary duty for hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more would come out soon, said the sources aware of the matter but who are not authorised to talk to the media.

News agency NewsRise quoted two senior finance ministry officials to say a duty may be announced as early as Monday. Reports of the duty pushed up shares of SAIL, JSW, Tata Steel, Jindal Steel and Power and Bhushan Steel.

Imports made up 5 percent of the country's total production of the under-investigation steel products in the year to end-March 31, 2014. But they have increased since then and are on course to hit 13 percent this fiscal year, or 3.4 million tonnes, according to the companies that sought the duty.

Source:in.reuters.com

Government To Resurrect Country's Dormant Gold Mining Industry

The ministry of mines has planned to resurrect India's dormant gold mining industry. "We're going to auction threefour gold mines in Karnataka, Madhya Pradesh and Rajasthan in two-three months. With amendment of the Mines and Minerals Development and Regulation (MMDR) Act, we are pursuing with the states to move ahead with these auctions," Union Mines Secretary Balvinder Kumar told Mail Today.

India is the world's leading importer and consumer of gold but policy handicaps and inadequate investments and technology mean vast gold ore reserves have largely remained unexplored. For example, despite geological similarity with India, Australia mines 280 tonnes of gold a year. An increase in gold production will cut India's rising gold import bill and boost economy.

"Gold mining in India is negligible. Kolar Gold Fields was our main project but that's been defunct for 14 years now. We're trying to revive it, but the idea also is to tap unexplored sites," Kumar said.

India's gold production dropped 8 per cent to 1.43 tonne in 2014-15 compared to 1.56 tonne in 2013-14 financial year. Gold production from Hutti Gold Mines Co. in Karnataka and Manmohan Industries in Jharkhand was 1.43 tonne in 2014-15 as against 1.56 tonne. In 2014-14, gold import stood at 782 tonnes, while for 2013-14 it was 661.71 tonnes.

Steps such as second-phase mine construction at Hutti gold mines have been taken for increasing the production of metal. At the Hira-Buddini and Uti gold mine, the second phase of mining by shaft sinking and mine development is in process.

Overall, the 12 mineral producing states will put 82 mining blocks containing various minerals for auctioning by October-November this year, Kumar said. The entire process will take 2-3 months.

Source:indiatoday.intoday.in

Rupee Trading Strong At 66.31 On Fresh Dollar Selling, Positive Economic Data

The rupee was trading strong at 66.31 against the dollar in the evening session on fresh dollar selling by banks and exporters amid positive economic data.

Forex dealers said that besides dollar selling, a firm domestic equity market and weakness of the dollar against other currencies supported the rupee.

The dollar inched lower with investors sticking to the sidelines as the countdown begins on whether the Federal Reserve will hike interest rates for the first time in nearly a decade.

The euro edged up 0.1 per cent to $1.1350, holding on to last week's 1.8 percent gain. The dollar eased 0.1 per cent to 120.42 yen.

Against a basket of six major currencies, the dollar eased 0.1 per cent to 95.067. The rupee opened strong by 14 paise to 66.40 against the dollar in early trade at the Interbank Foreign Exchange market today.

It further strengthened to 66.30 before being quoted at 66.31 at 4.10 pm local time. The domestic currency moved in a range of 66.49 and 66.30 in the evening trade.

On Friday, the rupee had lost 11 paise at 66.54 against the US dollar on sustained demand for the American currency from banks and importers amid a higher greenback overseas. Meanwhile, the benchmark BSE Sensex ended higher by 246.49 points or 0.96 per cent at 25,856.70.

Source:thehindubusinessline.com

No sales tax on oil products sold to distributors, as Oil Co. hadn't purchased substantial part from

CST & VAT : Assam VAT - Where assessee purchased petroleum products from IOC and thereafter sold it to dealers and sale price collected from dealers was above 40 per cent of sale price paid to IOC, since quantity of goods sold to assessee by IOC was only 4.5 per cent of its total production, sale effected by assessee did not amount to a first sale under section 8 and was not taxable

Payer can't escape TDS liability on basis of Form 15G if amount of interest exceeds basic exemption

IT : Payer of interest cannot justify non-deduction of tax at source by taking shelter of ultimate tax effects of payee

Credit availed as a service provider can be used to pay excise duty payable as manufacturer

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Payment made to sub-contractors disallowed as vouchers issued to them were suspicious in nature

IT : Where Commissioner (Appeals) disallowed payments made to sub-contractors on ground that vouchers issued to them were highly suspicious in nature and even nature of work did not require involvement of sub-contractor, Tribunal could not set aside said order, particularly when none of major points highlighted by Commissioner (Appeals) was answered

AO to rectify his order as he failed to consider an amendment to which retro-effect was given by HC

IT : Where Assessing Officer made disallowance under section 40(a)(ia) for not depositing tax deducted at source within time stipulated under section 200(1) but subsequently section 40(a)(ia) was amended providing to make such disallowance only in case of not depositing tax deducted before due date specified under section 139(1) and such amendment was held to be retrospective by jurisdictional High Court, Assessing Officer should have rectified his order by deleting impugned disallowance

Dept. couldn't forfeit taxes collected by 'Indian Oil' on petrol when it was a taxable commodity

CST & VAT : Assam VAT - Where assessee purchased oil products from two oil companies after payment of tax and sold same to dealers in Assam and collected taxes from them, since oil companies were not specified oil companies at that time and goods were not exempted goods, levy of penalty was bad in law

Running a Pre-School is a charitable activity for getting registration as trust

IT: Where assessee-trust was only running a pre-school by collecting fees for imparting education to children, assessee's main objects were covered by charitable purposes 'education' under section 2(15) and it was entitled for registration under section 12AA

Sec. 54F benefit available on investment in house within 3 years of transfer even if house is regist

IT: Whether where investment in construction of new building is made within three years of sale of property, benefit of section 54 is to be given; question of registration of document does not arise

CESTAT, Allahabad shall begin hearing of cases w.e.f. Oct 10, 2015

EXCISE : Statuts Of Appeals/Applications Arising From Territories Of State Of Uttar Pradesh Listed On Board From 1-9-2015

SCN can be waived if tax and penalty are paid before issuance of SCN; CBEC clarifies

EXCISE : Finance Act, 1994 – Clarification Regarding Provisions Of Sections 73, 76 And 78 Of The Finance Act, 1994 And Section 11c Of The Central Excise Act, 1944 After Amendments Made By Finance Act, 2015

Registration fee to file appeal at CESTAT, Allahabad shall be paid in name of Asst. Registrar, CESTA

EXCISE : Registration Fee Payable For Appeal/Applications For Filing At Regional Bench, Allahabad

CESTAT prescribes new numbering system for matters before different CESTAT benches

EXCISE : New Numbering Systems Proposed For Causes Initiated And Orders Issued By Different Benches Of Cestat

Director's plea to discharge her from alleged violation of CIS norms rejected as she could prove inn

SEBI: Where petitioner director sought for discharge from complaint case filed by SEBI against company for violation of CIS Regulations, petitioner's application was to be rejected as petitioner would get opportunity at trial for proving that she was not concerned with affairs of company at time of alleged offence

ITAT directs AO to rework ALP as it wasn't clear whether assessee was testing chips or developing so

IT/ILT : Where it was not apparent from records as to whether assessee was engaged in software development or simply testing of chips manufactured by its parent company abroad, matter relating to determination of ALP was to be remanded back for disposal afresh

Prior to 1-4-2011, taking land on lease and setting-up factory and plant thereon were input services

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Period of holding is to be computed from date of 'Agreement for sale' if it confers right in immovab

IT : Where 'agreement for sale' conferred rights in immovable property and such rights were capable of being enforced, order under section 263 was bad in law

Sum paid to purchase software isn't royalty as there is no transfer of copyright or patent of softwa

IT/ILT : Where assessee was only a reseller of software products of a non-resident company in India, since transaction in question was in nature of trade, payment made by assessee to non-resident towards purchase of products did not fall within purview of royalty under section 9(1)(vi)

Defamation case against editors can't be used to negate genuine criticism, rules High Court

SEBI : Where plaintiff NSE filed an application for injunction in a defamation action against defendants, editors of journal or website moneylife-in, on ground that article published by journal accused NSE of actively permitting illicit trading advantages being afforded to a select few using high-end technology, it was held that, a defamation action should neither be allowed to be used to negate or stifle genuine criticism, nor should it be allowed to choke a fair warning to public if its

Mere allegation of cash embezzlement against assessee wasn't not a valid ground to make addition on

IT : Where there was mere an allegation of cash embezzlement against assessee, such allegations, by itself, could not be legally sustainable foundation for making addition of amount allegedly embezzled in hands of assessee on protective basis

Deliberate suppression by original licence holder leads to invocation of extended period against tra

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Transactions of unlisted shares of group concern at throw away prices wasn't genuine transactions

IT: Where assessee acquired shares of its own group company at Rs. 40 per share and then sold same to its own group company at a throw away price of 10 paise per share and both transactions being off-market as shares were not listed on any stock exchange in country, entire transaction was not genuine and assessee was not entitled to claim long-term capital loss on sale of shares

No disallowance of interest if borrowed sum was given to affiliate without any interest for commerci

IT : Where assessee-company and its sister concern were in hotel business and assessee advanced an amount to sister concern free of interest on account of commercial expediency and same was used by sister concern for purpose of business, disallowance of interest paid by assessee on loans taken from banks was not justified

Once block assessment was framed then AO couldn't issue reassessment notice for the same period

IT: Once an assessment has been framed under section 158BA in relation to undisclosed income for block period as a result of search, Assessing Officer can not issue notice under section 148 for reopening of such assessment; reopening of assessee's assessment was bad in law

No differential CVD arises on entire import if only part of it was sold above MRP

Customs : Merely because importer sold some goods at price higher than RSP declared at time of import, revenue cannot demand differential duty on entire import

New incumbent in office of adjudicating authority couldn't modify decision taken by earlier adjudica

Excise & Customs : Incumbent of office of Additional Commissioner is not an appellate/revisionary authority and cannot, therefore, sit in judgment over decision of earlier Additional Commissioner and modify same

Govt. specifies procedure for filing of new VAT Form 'Delhi Sugam-2'

VAT : Detailed Procedures/Instructions for Filing of Online Form Delhi Sugam-2 (DS2)

New VAT Form 'Delhi Sugam-2' notified for import of goods in Delhi; effective from 15-9-2015

VAT : Submission of Information to Department in Respect of Goods Purchased or Received as Stock Transfer or Received on Consignment/agreement Basis from outside by Registered Dealers of Delhi - Simplified Online Form I.e. Delhi Sugam-2 (Ds2) in Place of Form T-2 for Providing Aforesaid Information to Department by Registered Dealers of Delhi

Sec. 10B relief available to 100% EOU from date of its approval though approval is subsequently rati

IT : For deduction to be allowed to 100 per cent EOU, grant of approval of 100 per cent EOU by Development Commissioner which came to be subsequently ratified by Board of approval would be sufficient

No commission involved on sale of prepaid mobile vouchers to distributors below their face value; no

IT : Where assessee engaged in business of providing mobile telephone services, sold prepaid vouchers to its distributors at a rate lower than its face value, difference between face value and selling price of prepaid voucher could not be regarded as commission requiring deduction of tax at source under section 194H

Premium paid on Keyman insurance policy is deductible even if it isn’t a pure life insurance policy

IT : There is no rational basis to confine the allowability of the expenditure incurred on the premium paid towards keyman insurance policy only to a situation where the policy is in respect of the life of an employee. So long as a policy is an insurance policy, whether it involves a capital appreciation or is under any other investment scheme, it meets the tests laid down under section 10(10D). The requirement of pure insurance policy is something which is not laid down by the statute.

HC exercises its inherent powers under CPC to direct AO to refund assessee's deposit with interest

CST & VAT : Tamil Nadu VAT - Where assessee filed revision and as per directions of High Court paid certain amount as condition precedent for grant of stay and subsequently High Court allowed revision, Assessing Authority was to be directed to give effect to order passed by High Court by refunding amount deposited by assessee along with interest

Providing medical assistance to poor patients and educating doctors are charitable object in nature

IT : Where objects of assessee-trust clearly showed that it came into existence for providing medical assistance to poor patients and to promote research work on medical site, etc, assessee-trust existed for charitable purpose only and would be eligible for registration under section 12A

Tax raised in best judgment assessment wouldn't attract interest which was leviable on non-payment o

CST & VAT : Karnataka VAT - Where Assessing Authority passed assessment order under section 12(3) on assessee and having found that amount of tax paid in advance was less than amount of tax assessed on final assessment levied interest under section 12(1B), since section 12(1B) had no application to instant case, levy of interest was unsustainable

CBDT sets up a committee to study feasibility of TARC suggestions to bring quality to assessment ord

IT/ILT : Constitution of a Committee to Study Feasibility of Recommendations of TARC in Respect of Group Assessment and System of Peer Review before Assessment