Indian agent procuring ad air time for National Geographic & Fox Channel held as agency PE of foreig

IT/ILT : Agent of US based company procuring advertisement airtime for National Geographic Channel and Fox International Channel held as its agency PE in India. Thus, profits attributable to PE of foreign company on sale of advertisement airtime were taxable in India.

Order dismissing appeal in absence of pre-deposit can't be challenged without challenging pre-deposi

Excise & Customs : Where pre-deposit order directing assessee to make a pre-deposit was not at all challenged, same had attained finality and once pre-deposit order has attained finality, dismissal of appeal for non-compliance with pre-deposit condition cannot be independently challenged

No Sec. 153C assessment proceedings only on basis of survey

IT : Matter restored to file of Commissioner (Appeals) to readjudicate issue whether survey under section 133A could be made basis for assessment framed under section 153C

SC directs tribunal to decide whether value of software meant for upgrading could be included in val

Excise & Customs : Where Tribunal rendered conflicting view on 'inclusion of value of software in value of imported mobile phones', Supreme Court remanded matter for consideration of issue by larger bench of Tribunal

No best judgment assessment if dept. fails to prove how assessee failed to assess tax as per law

Service Tax : Where assessee had filed returns in due time, department could not invoke best judgment assessment under section 72 without even specifying how assessee failed to assess tax as per law and which details were not supplied by assessee

Period of 30 days to be considered and not British Calendar month to calculate interest for delayed

IT : For calculating interest under section 201(IA), term 'month' must be given ordinary meaning of term of 30 days period and not British calendar month

No best judgment assessment if dept. fails to prove how assess failed to assessee tax as per law

Service Tax : Where assessee had filed returns in due time, department could not invoke best judgment assessment under section 72 without even specifying how assessee failed to assess tax as per law and which details were not supplied by assessee

Rupee Moves Up 9 Paise Against Us Dollar In Early Trade

 MUMBAI: Rising for the fifth straight session, the rupee gained 9 paise at 66.31 against the dollar in early trade today at the Inter-bank Foreign Exchange on increased selling of the US currency by exporters.


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


The rupee had appreciated by a modest two paise to settle at 66.40 against the greenback on Friday.


It had gained 69 paise in the past four trading sessions.


Meanwhile, the benchmark BSE Sensex fell 105.68 points, or 0.41 per cent, to trade at 25,413.54 in early trade.
 

Source :timesofindia.indiatimes.com

Copper Falls By 0.3% On Weak Global Cues

Copper futures fell 0.28% to Rs 317 per kg today as speculators trimmed positions amid weak trend in the global markets.

Moreover, muted demand at domestic spot markets also put pressure on prices.

At the Multi Commodity Exchange, copper for delivery in April next year declined by 90 paise or 0.28% to Rs 317 per kg in a business turnover of seven lots.

The metal for delivery in February fell by 85 paise or 0.27% to Rs 312.45 per kg in a business volume of seven lots.

Analysts said a weak trend in copper in the global market after climbing the most in over two months and subdued demand at the domestic spot markets, weighed on copper futures.

Globally, copper for delivery in three-months fell 0.4% at $4,667.5 per tonne at the London Metal Exchange.

 

Source :.business-standard.com

No reassessment on exclusion of forex gains from total income as such info was available during asse

IT: Where reassessment was initiated on ground that assessee had excluded foreign exchange fluctuation gains while computing total income while, in fact, same computation was available on record during assessment, reassessment was bad

Now auditors shall report only on frauds of one Crore or more to Govt

COMPANIES ACT, 2013/AAA/INDIAN ACTS & RULES : Companies (Audit and Auditors) Amendment Rules, 2015 – Substitution of Rule 13 and Amendment in Rule 14 & Form No.ADT-4

For Oil-Producer Nigeria, India Is Top Export Destination

India has taken the first place as Nigeria's major export destination with earnings of $2.02 billion from the sale of crude oil, representing 17.5 per cent of the country's total export for the third quarter of this year, the National Bureau of Statistics (NBS) said.

For the 2014-15 financial year, the Indian High Commission said, the country imported $13.53 billion worth of crude and petroleum products $13.96 billion in 2013-14.

"Bilateral trade between India and Nigeria in 2014-15 stood at $16.36 billion, which was two percent less compared to the previous year's figure of $16.98 billion," the high commission added.

It said India's exports to Nigeria have grown gradually during the last few years - from $1.08 billion in 2007-08 to $2.68 billion in 2014-15. Nigeria is India's largest trading partner in Africa and India is the largest trading partner of Nigeria globally

From the NBS figures, Netherlands is the second major export destination with $1.2 billion representing 10.5 percent, followed by Spain with $1.04 billion representing 9.1 percent, the NBS said.

The NBS said the value of the nation's merchandise exports totaled $11.58 billion in the third quarter of 2015 and represented a decrease of $1.59 billion or 12.1 percent, over the previous year's figure of $13.17 billion.

The decline was attributed to a fall in crude oil exports by $1.85 billion or 18.8 percent over the preceding quarter. "Nevertheless, the structure of exports is still dominated by crude oil, which contributed $7.99 billion or 69.1 percent to the value of total domestic exports in 2015. Natural liquefied gas recorded $1.31 billion of the total export value during the period under review," the NBS added.

Nigeria's total external merchandise trade decreased by $1.67 billion to $1.9 trillion in the third quarter of this year.

It attributed the decline to a $320.6 billion or 12.1 percent decline in the value of exports as well as imports decline of 17.4 billion or 1.0 percent against the levels recorded in the preceding quarter.

 

Soorce :.business-standard.com

Government Taking Necessary Steps To Boost Msmes, Exports: Nirmala Sitharaman

The government is taking necessary measures to support small and medium industries, keeping in view a sluggish global situation that has led to a fall in the country's exports, Commerce and Industry Minister Nirmala Sitharaman has said.

"It cannot be denied that the global situation has been depressed and things are not improving. The government is doing what it can to change the situation for the small and medium players," the minister said at the inauguration of 'India Diamond Trading Centre' on Sunday.

She said merchandise exports are likely to fall further and the ministry is making all efforts to help small and medium players.

The gems and jewellery sector constitutes 13% of the merchandise exports, she added.

India's exports remained in negative territory for the 12th straight month after it registered a drop of 24.43% in November to $20.01 billion (nearly Rs 13.27 lakh crore) as against $26.48 billion (nearly Rs 17.56 lakh crore) in the year-ago period.

The minister said, the gems and jewellery sector needs a lot of attention as it provides jobs to millions and the government will take steps to remove the hurdles that are impediment to the growth.

"We will ensure that the gems and jewellery sector remains vibrant. We will take up some of the concerns of the industry with finance ministry, especially the taxation issue," she added.

Sitharaman further said, the industry has grown since 2004-05, to become an important sector, exporting $40 billion (nearly Rs 26.53 lakh crore) goods in 2014-15, due to its entrepreneurship, drive and hard determination to be internationally competitive.

Speaking about the Diamond Trading Centre, the minister said, "Last December 2014, Prime Minister Narendra Modi in the presence of Russian President Vladimir Putin at the World Diamond conference, jointly organised by the GJEPC, said he would announce a special notified zone (SNZ) and within one year we are here to inaugurate the diamond trading centre. And this is much before the scheduled visit of the Prime Minister to Russia."

Source :.dnaindia.com

Us Lifts Oil Export Ban; India To Benefit?

WASHINGTON: The United States on Saturday lifted a 40-year-old ban on export of oil, thus paving the way for energy deficient countries like India to open up another frontier to import oil from a distant friendly nation.

The ban was lifted as President Barack Obama on Saturday signed into law the Omnibus $1.8 trillion spending package and tax bill for the current fiscal ending on September 30, 2016.


The move was welcomed by the industry , while proenvironmental groups were critical of it.


Senator Lisa Murkowski, energy panel chairman, welcomed the decision. "By lifting the domestic crude oil export ban, we are sending a signal to the world that our nation is ready to be a global energy superpower," he said. "With crude exports comes job creation, economic growth, new revenues, prosperity, and enhanced energy security for our allies and ourselves," Murkowski said.

Top Comment
Yes Indian Corporates will benefit maximum, not the people!Krishna

Business Roundtable welcomed the move to end the ban on the export of US crude oil, a policy enacted during the 1970s. "Business leaders representing every sector of the US economy applaud Congress for voting to end the outdated ban on American oil exports," said Nicholas K Akins, chairman, president and CEO of American Electric Power Company , Inc and chair of the business roundtable committee on energy and environment.


"The US is now the world's number one oil producer, and removing this ar tificial export restriction will strengthen our nation's strategic position in global energy markets," he said.


However, senator Tom Carper, a top Democrat, ex pressed concern over lifting the ban. "I am deeply con cerned about the impact of lifting the oil export ban on our independent oil refi ners, who employ thou sands of hardworking midd le class Americans," he said Republican presidential candidate Chris Christie wel comed the decision to lift ban on oil export. "The oil export part of it is great, it's good for Americans, it's good for the oil industry , it's good for the world," he said.

CESTAT can't entertain an appeal without mandatory pre-deposit by appellant

ST: CESTAT cannot entertain any appeal filed on or after 6-8-2014 without mandatory pre-deposit

Now Delhi dealers to reverse full input credit on inter-state transfer of Tobacco and lubricants

VAT/INDIAN ACTS & RULES : Delhi Value Added Tax (Amendment) Rules, 2005 – Amendment in Rules 7 and 43

Sum paid by employer voluntarily to settle dispute on premature cessation of employment is tax free

IT: Where ex gratia compensation paid to assessee on his discharge from services was voluntary in nature, it would not amount to compensation in terms of section 17(3)(i)

Govt. includes 41 Housing finance Cos under ambit of 'financial institutions' under SARFAESI Act

SARFAESI : Section 29(1)(m)(iv) of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 – Financial Institution – Notified Financial Institution

Now RBI permits FIIs, FPIs and NRs to purchase security receipts of Securitization Cos

FEMA/ILT/INDIAN ACTS & RULES : FEM (Transfer or Issue of Security by A Person Resident Outside India) (Thirteenth Amendment) Regulations, 2015 – Amendment in Schedule 5

Order passed by 'In-charge Chief Metropolitan Magistrate' in absence of CMM to recover mortgaged pro

SARFAESI : Where petitioner failed to pay outstanding dues of respondent bank, order passed by In-charge Chief Metropolitan Magistrate 'de-facto' assuming jurisdiction in absence of Chief Metropolitan Magistrate under section 14 to recover possession of mortgaged property could not have been assailed by petitioner

No denial of sec. 10B relief just because end product of research contract would be used in later st

IT : Where research documents and speciality compound produced while providing 'contract research' service in chemistry would be used only in later stages of development of industrially useful chemicals, it could not be concluded that assessee was not manufacturing an article or thing; its claim for exemption under section 10B was to be allowed

No special audit on basis of seized material without indicating complexity in accounts

IT: Where assessee shifted business premises with due intimation to department, order of transfer case without notice to assessee, was illegal

Winding up plea filed by bank at Mumbai in respect of guarantee executed by its agent branch at Hong

CL: Where document of guarantee was executed by respondent in favour of petitioner-bank, which had its registered office at Vadodara and corporate office at Mumbai, acting through its Hong Kong branch, winding up petition filed by petitioner in Bombay High Court was maintainable

Bank of India entitled to double taxation relief on income of its foreign PE as it had paid taxes ou

IT/ILT : Where operations of assessee-bank in foreign countries denoted it having PE outside India, income attributable to said branches could not be taxed in India as there was sufficient evidence on record pertaining to payment of taxes by those branches abroad

Definition of "Person" in service tax which includes AOP or BOI whether incorporated or not is a per

Service Tax : Inclusion of 'association of persons or body of individuals, whether incorporated or not' in meaning of word 'person' is constitutional.

Officer can have a Camp Office at taxpayer's house to examine him on oath after search and seizure

IT: Where search of assessee's residential premises resulted into seizure of huge cash and panchanama was drawn, Authorized Officer was not barred from going to house of assessee and served notice on him to depose at said residence; it could not be said that Authorized Officer had trespassed into house of assessee and he deserved to be prosecuted

Exemption available on formulation of one drug can't be denied if it contains other drugs too

Excise & Customs : Exemption to 'formulations' manufactured out of 'streptomycin' does not mean that 'formulations' cannot contain any other 'drug'; therefore, Strepto Penicillin Injection containing 'streptomycin' as well as 'penicillin' is exempt

No need to give hearing chance to tax defaulter before valuation of its property to be auctioned

IT: There is no requirement of giving opportunity of hearing to Judgment Debtor before valuation of property to be auctioned is made and its reserve price is fixed

Consumable product 'Ramdev Hing' sold in Rajasthan attracts VAT at 4%

CST & VAT: Rajasthan VAT - Where on packet of asafoetida (hing) being sold by assessee, it was printed 'Ram Deo Super Compounded Asafoetida Ingredients: Edible Gum, Wheat Flour 30 per cent aprox', said item would fall under Entry No. 82 of Act and was liable to tax at 4 per cent

Sales to related parties in specific period have to be valued on basis of sales made to unrelated pa

Excise & Customs : In case of related parties, value is determined based on sale price of buyers for same period during which goods were sold by assessee to related buyers; hence, in valuing sales for 2004-05, sale price of buyers during 2001-02 cannot be taken

Capital introduced from gifted money held as unexplained as donors didn't have capacity to make gift

IT: Where assessee did not have any close relation with alleged donors and no cogent material had been brought on record to prove their financial capacity, gifts received by assessee in his capital account could not be treated as genuine and would be added to his income under section 68

Excise dues payable by seller of capital goods can't be demanded from purchaser

CENVAT: Central Excise duty equivalent to Cenvat Credit availed by original manufacturer on capital goods could not be demanded from purchaser on its sale when purchaser did not take benefit of Cenvat credit on it

Govt. notifies rules for recruitment of Court Masters in Debt Recovery Tribunals

DEBTS RECOVERY TRIBUNAL/INDIAN ACTS & RULES : Debts Recovery Appellate Tribunal, Delhi (Court Master) Recruitment Rules, 2015

Meaning of 'Keyman Insurance Policy' can't be derived from IRDA circulars for sec. 10(10D) relief

IT : Stipulations in IRDA circulars have no role to play in deciding whether premium on insurance policies paid are covered by scope of 'keyman insurance policy' under section 10(10D)

No reassessment on basis of info supplied by DGIT (Investigation) without any details available on r

IT : In absence of any details available on record, Assessing Officer could not initiate assessment proceedings merely on basis of information supplied by DGIT (Inv.) that assessee had made certain bogus purchases and, to said extent, income had escaped assessment

Shareholder can be arrested if he was found involved in evasion of duty by company

Excise & Customs : If major shareholder of company is found actively involved in evasion of duty by company by unaccounted sales and purchases, his arrest and proceedings for confiscation and penalty against him, are valid

Co. whose directors were facing charges of fraud couldn't be accepted as comparable for TP study

IT/ILT: Where assessee, engaged in manufacturing cassia gum powder, rendered marketing support services to its AE, company involved in high end niche market segment of financial contents and company which outsourced its ITES to third party vendors, could not be accepted as valid comparables while determining ALP

Govt. to return unutilized land to its original owner under New Land Acquisition Rules

CORPORATE LAWS/INDIAN ACTS & RULES : Right to fair compensation and transparency in land acquisition, rehabilitation and resettlement (Compensation, Rehabilitation and Resettlement and Development Plan) Rules, 2015

Act of terminating distributorship due to dispute of contractual nature is not unfair trade practice

Competition Act : Where disputes between complainant-distributor and respondent -supplier were purely contractual in nature, allegations made by complainant in context of discontinuance of distributorship could not be treated as unfair trade practice as defined under section 36A of MRTP Act

SEBI seek public comments on guidelines for public issue of units of Infrastructure Investment Trust

SEBI : Consultation paper on guidelines for public issue of units of Infrastructure Investment Trusts

SEBI proposes additional disclosure norms on retail issuance of Additional Tier -1 instruments by ba

SEBI : Consultation paper on additional disclosure norms for retail/public issuance of Additional Tier 1 (AT1) instruments issued by banks

ITAT annoyed with AO for reopening assessment under sec. 147 and not under sec. 153A in case of sear

IT: In case of assessment made on assessee consequent to search in another case, Assessing Officer is bound to issue notice under section 153C and thereafter proceed to assess income under section 153A and if Assessing Officer had proceeded with reassessment under section 147/148 and passed assessment order under section 143(3), same would be illegal, arbitrary and without any jurisdiction

Deptt. has to provide all documents demanded by assessee even if same are not relied upon in show ca

Excise & Customs : Right to fair hearing and right to defence is a guaranteed right; hence, for said purpose, department must supply documents demanded by assessee, even if said documents are not relied upon in show-cause notice

Profit on share dealings held as cap gains in absence of allegations of shifting of scrips from inve

IT: Where assessee maintained two separate accounts in respect of its dealing in mutual funds and shares, i.e., one in respect of its trading and other in respect of its investment, and there were no allegations of shifting of scrips from trading to investment or vice versa, assessee's claim of capital gain on sale of shares held as investment was to be allowed

Interest paid to NR on FCCB won't accrue or arise in India if borrowed sum is utilized for overseas

IT/ILT: Where assessee-company paid interest on FCCBs issued by it to bond-holders outside India, said income squarely fell under exclusion clause of sub-section (1)(v)(b) of section 9, and, consequently, it could not fall within ambit of section 5(2)

No service-tax on intellectual property services if permission to use technology was given prior to

Service Tax : In case of Intellectual Property Services, date of rendering of service is date of transfer/permission to use technology; hence, where date of such transfer/permission is prior to 10-9-2004, no service tax can be demanded even if royalty payment is spread over period of use and is said payment is made even after 10-9-2004

Sec. 10(23C)(vi) exemption can't be denied if institution exists solely for educational purposes and

IT: Once assessee existed solely for educational purposes and not for purpose of profit, CBDT could not deny to issue certificate of exemption under section 10(23C)(vi); however, Assessing Officer could go into question whether third and thirteenth proviso was met and then passed appropriate order

Extended due date of Dec. 20, 2015 to pay excise duty is also applicable for Union Territory of Pudu

EXCISE : Central Excise (Third Amendment) Rules, 2015 – Amendment in Rule 8

SC denied to interfere with issue related to 'rate of duty' as assessee had voluntarily paid excise

Excise & Customs : Where, in a case involving determination of applicable rate of duty, assessee has paid duty at higher rate, then, issue becomes tax neutral and hence, appeals were not maintainable in said matter

Failure of AO in making inquiries renders resultant order as erroneous

IT : Mere failure on part of Assessing Officer in not making inquiries or not examining claim of assessee in accordance with law per se renders resultant order as erroneous and prejudicial to interests of revenue

MCA lays down conditions for omnibus approval of Related Party Transactions

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Meetings of Board and its Powers) Second Amendment Rules, 2015 – Amendment in Rule 15; Insertion of Rule 6A and Omission of Rule 10

CBDT directs AOs not to disallow employer's contribution to PF/ESI if paid before return filing due

IT: Section 43B of The Income-Tax Act, 1961 – Business Disallowance – Certain Deductions to be Allowed Only on Actual Payment - Employer's/Employee Contribution – Allowability of Employer's Contribution to Funds for Welfare of Employees in Terms of Section 43B(b)

Even GTA service received from individual truck operators is liable to ST under reverse charge

Service Tax : Where GTA service provider is not registered with department, there is no question of availing credit by him; hence, abatement cannot be denied to service recipient alleging that cenvat credit might have been taken by service provider

No addition on basis of third party statement if opportunity of cross-examination isn't given to ass

IT: Where assessee during search conducted under section 132 made admission that a sum of Rs. 86 lakhs seized from his employee belonged to him and it represented undisclosed income and subsequently he retracted above admission and offered an explanation that said amount was verifiable from records and books of account and Assessing Officer did not accept explanation and added said amount in income as unexplained cash credit, impugned addition was not justified

Remission of duty on molasses lost due to 'oozing out' can't be denied merely because insurance clai

Excise & Customs : Oozing out of molasses and consequent auto-combustion is a natural process; hence, assessee is eligible for remission of excise duty on molasses lost due to oozing out/auto-combustion said remission cannot be disallowed partly merely because insurance claim was also disallowed to that extent

Interest which was disallowed under sec. 36(1)(iii) couldn't be considered again for sec. 14A disall

IT : In case of assessee, a non-banking finance company, engaged in principal business of granting loans and advances, set off of loss from share trading business had to be allowed against profits earned from derivative transactions

Transport of coal within mining area without issuance of consignment note is not GTA service

Service Tax : Where goods being coal was being transported within mining area without any issuance of consignment note, said transport service did not amount to Goods Transport Agency's Services and was not liable to service tax

Banks to follow Marginal Cost of Funds Based Lending Rate for advancing loans from April 1, 2016: RB

BANKING : Interest Rates on Advances

CBDT notifies new tax authority for making declaration under Black Money Act

IT/ILT : Section 119 Of The Income-Tax Act, 1961, Read With Sections 6 And 84 Of The Black Money (Undisclosed Foreign Income And Assets) And Imposition Of Tax Act, 2015 – Income-Tax Authorities -Instructions To Subordinate Authorities – Notified Income-Tax Authority

No abuse of dominance by 'Haria hospital' as many hospitals were offering better medical service in

Competition Act: Where there were major hospitals offering better medical services in relevant market for provision of medical services by hospitals in Vapi and neighbouring areas, patients were not dependent solely on medical services being provided by OP-hospital and, therefore, OP was not dominant in relevant market

CIT(A) couldn't delete TP additions without calling remand report from AO and entertaining additiona

IT/ILT: In course of appellate proceedings, Commissioner (Appeals) was not authorised to proceed with deleting addition to assessee's ALP by granting working capital adjustment without entertaining additional evidence during appellate proceedings and without calling remand report from Assessing Officer

Banks to follow Marginal Cost of Funds based lending rate method for advancing loans from April 1, 2

BANKING : Interest Rates on Advances

Additional income declared in revised return pursuant to search would attract concealment penalty

IT: Where assessee disclosed additional income only after search of premises of another assessee by DIT (Investigations) which unearthed certain evidences indicating that certain expenditure claimed by assessee was disallowable, it would amount to concealment of income liable to penalty under section 271(1)(c)

Balance 50% credit on capital goods can be taken in subsequent years even if goods are not in posses

CENVAT : Where goods in question were components entitled for credit as capital goods, condition that to avail 50 per cent of Cenvat credit in subsequent year same should be in possession of manufacturer, would not be applicable

Cenvat credit can't be denied on inputs wasted during manufacturing process: HC

CENVAT: A textile manufacturer is entitled to claim Cenvat Credit on total quantity and value of inputs, i.e., yarn inclusive of manufacturing loss that went into making of finished product i.e., fabric

Cenvat credit can't be denied on inputs waste arising during manufacturing process: HC

CENVAT: A textile manufacturer is entitled to claim Cenvat Credit on total quantity and value of inputs, i.e., yarn inclusive of manufacturing loss that went into making of finished product i.e., fabric

Co. doing clinical research and manufacturing not comparable with software development service provi

IT/ILT : Company in clinical research and development cannot be considered a comparable to company providing software development services

Area based exemption can't be denied if assessee claimed exemption only for one unit out of several

Excise & Customs : Area-based exemption is allowed to an 'industrial unit'; hence, an assessee may opt for : (a) exemption for goods cleared from one industrial unit; and (b) paying duty on goods cleared from another industrial unit in same factory

CBDT notifies forms for reporting of income distributed by Category I and II AIFs

IT/ILT/INDIAN ACTS & RULES : Income-Tax (Twentieth Amendment) Rules, 2015 – Insertion of Rule 12CB & Form No.64C & Form No.64D

There is no time-limit for a SEZ to claim refund of input tax paid under Karnataka VAT Act

CST & VAT: Karnataka VAT - Where assessee, a developer of Special Economic Zone, in assessment year 2009-10, as per provisions of section 20(2) and rule 130A, claimed refund of input tax paid on purchases and Assessing Officer having noticed that assessee had claimed input tax credit in a particular tax period related to purchase of some other months disallowed refund of input tax paid partly, assessee was entitled for refund of full input tax paid

Gift of 6 lakh USD received by CA isn't unexplained as donor is financially sound and has close rela

IT : Where there existed close relationship between donor and assessee for a long time and, donor had funds necessary for making gift, impugned addition made under section 68 in respect of gift in question was to be set aside

No deduction under sec. 57(iii) on writing off income from other sources

IT: Where interest and lease rent receivables were shown as 'income from other sources', on their writing off due to non-realisation, no deduction can be claimed either under section 57(iii) or under section 36

'The National Intelligence Grid' and 'Central Vigilance Commission' included in ambit of PMLA norms

MONEY-LAUNDERING : Section 66 of The Prevention of Money-Laundering Act, 2002 – Disclosure of Information – Notified Authority – Amendment in Notification No. GSR 381(E), Dated 27-6-2006

Tea Exports Up 4% In Value; Dip In S India Production Drags Overall Output

Tea exports have seen an over four per cent increase (in value terms) during the seven month period from April to October this year to over 2,318 crore. The corresponding figure for the same period last year stood at 2,225 crore (approximate).

According to provisional data released by the Tea Board of India, exports in quantity terms increased by 7.25 per cent to 119.25 million kg (mkg) during these seven months against 111.19 mkg in the year-ago-period.

Increase in exports has been seen in major tea importing countries such as Russia, United Kingdom, Netherlands, Germany, Poland, UAE, Iran, Bangladesh and Pakistan.
Dip in production

The period also saw a minor dip in production (of less than one per cent) to 946.49 mkg. Production in the April to October period of 2014-15 stood at 953.59 mkg.

The fall in production was mainly reported in South India. Production there dipped to 148.58 mkg (155.8 mkg). North India, however, saw a 0.08 per cent increase in production to 798.39 mkg (797.79 mkg).
Auction prices

However, the tea sold at the various auction centres all over India saw an over three per cent dip, despite production going up (by a marginal 0.5 per cent).

Auction price (all India average) stood at ?128.35/kg (132.45) during April to October this fiscal.

Prices across both North and South India auction centres saw a dip. Price in the North Indian auction centres stood at ?148.48 (152.71), while in the South centres it was at ?78.59 (81.37).
Bought leaf factories

According to the Tea Board data, production of bought leaf factories (BLF sector) increased on an all India basis by nearly 2 per cent to 310.58 mkg.

The increase is mainly on account of the BLF sector’s increase in production in North India to 249.23 mkg for the period under review. In the corresponding period last year, it was 242.14 mkg.

South India, however, witnessed an over four per cent decrease in production, with BLFs producing 148.58 mkg (155.8 mkg).

Source :.thehindubusinessline.com

No CA certificate for payments to non-resident upto 5 Lakh; CBDT eases reporting norms

IT/ILT/INDIAN ACTS & RULES : Income-Tax (Twenty First Amendment) Rules, 2015 – Furnishing of Information in Respect of Payments Made to Non-Resident

Tribunal has to show that findings of adjudicating authority are perverse before overturning them

Excise & Customs : Where Tribunal did not record conclusion as to how findings of adjudicating authority were perverse and also failed to consider materials referred to by adjudicating authority, Tribunal order was perverse and therefore, matter was remanded back

India's Sugar Stockpile To Deplete By A Quarter As Exports Rise

India is likely to start the 2016/17 marketing year with 6.7 million tonnes of sugar, 26.4 per cent lower than at the beginning of the current year, as rising exports will pull down inventories in the world's second biggest producer.

The higher Indian exports will put pressure on global prices, but harden the local market and help mills pay farmers at the support levels set by the state for sugar cane.

 

Source :.business-standard.com

Coal To Remain Primary Energy Source; Depend Less On Imports: Coal Secretary

Coal will continue to be the primary source of energy in India till the time there is a viable environment-friendly alternative, a top official said while pitching for mining domestic coal instead of depending on imported fossil fuel.

The comments come amid rising concerns over increasing pollution in major cities in India.

"Till the time we find a viable alternative, coal will continue to be the primary source of energy in this country," Coal Secretary Anil Swarup told PTI.

He said although efforts are being made for developing non-conventional sources energy, coal will continue to play a dominant role for some time and "in that sense coal production will have to be enhanced".

The country is extremely concerned about the environmental issues and it is in that context a lot of efforts are being made to ensure or to look for alternative sources of energy, he added.

Asserting that last year the country imported 210 million tonnes (MT) of fossil fuel, he said that "if we don't produce coal within India we will have to import it. Instead of importing I would rather believe that environmentally it is friendly to mine coal in India than import coal from elsewhere," he said.

The government is eying 1.5 billion tonnes of coal production by 2020. Of this, Coal India, which accounts for over 80% of the domestic coal production, is eying an output of one billion tonnes.

In a tweet on Wednesday the Swarup said: "April-Nov '15 coal production by CIL (Coal India Ltd) and SCCL grows by a record 10.23% over corresponding period in 14-15. Production this year at 358.9 MT (million tonnes)."

    April-Nov '15 coal production by CIL and SCCL grows by a record 10.23% over corresponding period in 14-15. Production this year at 358.9 MT

 

Source :.dnaindia.com

Dept. can't demand interest if its delay in issuing refund order leads to delay in adjustment of ref

CST & VAT: MAHARASHTRA VAT: Where department made delay in making refund resulting in delay of adjustment of such amount against tax due for next assessment year, assessee could not be blamed for not making payment of tax in time for next assessment year and in such case assessee could not be made liable to pay interest under section 30 of Maharashtra Value Added Tax Act, 2002

Current year's profits won't be included in accumulated profits while computing deemed dividend

IT: Current profit is not to be included as part of accumulated profits while determining amount of deemed dividend under section 2(22)(e)

Us Congress Decides To Lift 40-Year Ban On Oil Export; Move To Benefit Countries Like India

WASHINGTON: The US is set to lift a four-decade ban on export of oil, a move that may benefit countries like India by giving them an option to purchase crude from non-Middle Eastern nations.

The measure allowing oil exports is at the centre of a deal Congressional leaders announced yesterday on spending and tax legislation. Both the House and Senate still must pass it and President Barack Obama must sign it into law.

This legislation is scheduled to be voted on this week before Congress adjourns for winter break.

"We are lifting the government's 40-year-old ban on crude oil exports. This is big win for American jobs and for our energy industry. It's a big win for our manufacturers and for our foreign policy," Paul Ryan, Speaker of the US House of Representatives told reporters after Congressional leaders agreed on the USD 1.1 trillion spending bill for the current fiscal ending on September 30, 2016.

Ryan said it has been 40 years since the ban was implemented in 1975 amid the Arab oil embargo and petroleum shortages.

In just the past few years alone, the US lost 80,000 jobs because oil producers have been forced to scale back their rigs by nearly 60 per cent.

Lifting the ban would create an estimated one million American jobs in nearly all 50 states within a matter of years, and it would add USD 170 billion annually to the US GDP, Ryan said.

The move could benefit countries like India in the long run, giving it another option to purchase crude oil from non-Middle eastern countries.

Ryan said US producers would generate more than a million barrels daily, which means more American jobs and greater economic competitiveness in the global marketplace.

This means higher wages for hardworking Americans and greater economic competitiveness in the in the global marketplace, he argued.

"Lifting the ban will also increase overall energy supplies, which will directly benefit consumers. According to the Government Accountability Office, consumer gas prices here at home could drop as much as 13 cents per gallon so families can save more at the pump," Ryan said.

House Majority Leader Kevin McCarthy said the oil export ban is a relic of the past that makes no sense in today's globalised world.

"Lifting the oil export ban will help reboot our struggling economy here at a home and reassures our allies that the resources they need are now available from a friend," he said in a statement.

In exchange of lifting oil export ban, the Democrats secured a five-year extension of production and investment tax credits for renewable energy sources like wind and solar, three-year reauthorisation of the Land Water Conservation Fund, and a concession from Republicans to exclude all major anti-environmental measures from the bill.

The spending bill likely to be formally passed by the House of Representatives and Senate later this week also notes that the American aid to Sri Lanka is subject to certification by the Secretary of State that it is addressing the "underlying" cause of conflict in the country.

The Secretary of State is also required to certify that Sri Lankan Government is continuing to increase accountability and transparency in governance.

As per the text of the bill, the US military assistance to Sri Lanka should not cross USD 4000,000 and be made available for programmes to redeploy, restructure, and reduce the size of the Sri Lankan armed forces.

 

Source : economictimes.indiatimes.com

Nmdc Starts Iron Ore Exports Amid Slump

KOLKATA: At a time when overall exports have fallen for the 12th straight month, state-run miner NMDCBSE 4.39 % has initiated exports of iron ore. The move, which comes at a time when spot prices of iron ore have crashed to a seven-year low of $38 per tonne, seems to have miffed the domestic steel industry. The latter is questioning the logic and timing of the exports, particularly since, NMDC's price realisation is believed to be about a quarter of the domestic rates. "We will be exporting around five lakh tonne to Japan till March 31, 2016," a senior NMDC official said in response to a query from ET. "As on date exports are cash positive for NMDC," he added, while pointing out that export realisation depends on a variety of factors.

In June this year, the Cabinet approved renewal of the Long Term Agreement (LTA) with Japanese and Korean Steel Mills to export up to 5.5 million tonne to Japan and Korea annually over the next three years (April'15 to March 2018). "These agreements will help continue this relationship and strengthen Indo-Japanese collaboration in several areas like technology transfer, joint venture, investment, etc. The agreement will also help utilize surplus production of iron ore currently available in India," a government statement in June said.

However, an export duty of 30% on fines and high railway freight proved to be a major dampner. It was only after the government decided to lower the duty on exports to 10% and slash railway freight charges on exports by almost 46%. Rs 1572 per tonne from Rs 2900 per tonne earlier that NMDC managed to export the first consignment in November 2015. For October-December 2015 (Q3) the export price benchmarked to the global Platts Index is US$ 51.69 per dry metric tonne.

Industry watchers have pointed out compared to NMDC's net sales realisation from domestic market, its export realisation which varies between consignments -is estimated at less than one fourth of it. "The net sales realisation from exports would have been negative had duty not been reduced on NMDC's exports to 10%," they said.

Analysts feel the PSU miner has to meet its exports commitments under the LTA. Saurav Chatterjee, an analyst at CARE Ratings said: "NMDC has to fulfill its export commitment. Also, with a cut in export duty and railway freight, exports would be justified at this point when domestic offtake remains poor."

Steel industry sources feel NMDC should have sold the material in the home market where price realisation is better and this would have encouraged value addition at home.

Source :economictimes.indiatimes.com

Before 13-7-2006, interest couldn't be charged on differential duty arising from provisional assessm

Excise & Customs : In case of provisional assessments carried out for period prior to 13-7-2006, there was no provision for interest under section 18 of Customs Act; hence, no demand for interest can be raised by resort to provisions of section 28

Provision mandating reporting of fraud by auditors is effective from Dec 14, 2015 : MCA

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Section 1 of the Companies (Amendment) Act, 2015 – Act – Enforcement of – Notified Date On Which Provisions Of Sections 13 And 14 Of Said Act Shall Come Into Force

In section 10(23C)(iiiad) cases, there is no need to file Form 10BB

IT: Where assessee-trust was carrying out sale activity of education during relevant year and its receipt from said activity was less than Rs. one crore, assessee's claim for exemption under section 10(23C) (iiiad) could not be rejected on ground that it had mentioned other objects also in trust deed

RBI is duty bound under RTI Act to share info. provided by Banks/FIs on loan defaulters

RTI ACT: RBI does not place itself in a fiduciary relationship with the Financial institutions (though, in word it puts itself to be in that position) because, the reports of the inspections, statements of the bank, information related to the business obtained by the RBI are not under the pretext of confidence or trust

EGM appointing petitioner as Chairman and MD held as invalid as notice of resolution wasn't issued t

CL : Where extraordinary general meeting appointing first petitioner as chairman and managing director of company was invalid as notices for same were not issued to all shareholders; holding of further EGM by respondents being majority shareholders for removing first petitioner from directorship could not be held as an act of oppression or mismanagement

Govt. hikes excise duty on petrol and diesel by Rs. 0.30 and 1.17 per litre respectively

EXCISE : Omnibus General Exemption to Goods Specified in Chapters 1 to 98 of Tariff – Amendment in Notification No. 12/2012-C.E., Dated 17-3-2012

Hiring of cabs can't be charged to service tax under 'rent-a-cab services'

Service Tax : Hiring is different from renting and therefore, hiring of cabs cannot be taxed under rent-a-cab services

Related party filter of 15% is appropriate threshold for selection of comparable for TP study

IT/ILT :15 per cent RPT filter is a proper threshold for selecting comparables for purpose of ALP study

No excise duty on 'Industrial dust' arising during course of manufacturing of brass and copper artic

Central Excise : 'Industrial dust' arising during course of manufacturing of brass and copper articles is not manufactured product; hence, same is not liable to excise duty

A.O. can't attach bank accounts for non-payment of tax dues during pendency of appeal & stay applica

CST & VAT : Gujarat VAT - Where against orders of assessment, assessee filed appeals together with stay applications and in meanwhile Assessing Authority issued on assessee a notice of demand and on same day he passed an order under section 44 attaching bank accounts of assessee, conduct of Assessing Authority in attaching bank accounts was not warranted, when appeals together with stay applications were pending consideration before First Appellate Authority

Demand has to be stayed if similar disputed issue has been decided in favour of assessee in earlier

IT : If demand in dispute related to issues that had been decided in another assessee's favour on similar facts by an appellate authority or Court earlier, demand will be stayed

No deduction for contingent liability arising out of single judge's order stayed by Division Bench

IT : In the case of a contractual dispute between the parties, liability of the assessee to pay arises only when the claimant against the assessee acquires some legal right to receive the amount

Assessee couldn't approach HC to claim interest if his dues against revenue were determined by SetCo

IT: Where dues of assessee towards department stood determined by Settlement Commission, in such a case, assessee had a right to claim interest on amount deposited with department in proceedings under section 245D(6) and High Court had no jurisdiction to entertain civil suit filed in that regard in view of specific bar contained in section 293

Collegiums of CCIT shall also consider withdrawal of frivolous appeals before HC: CBDT

IT/ILT : Section 260A of the Income-Tax Act, 1961 – High Court – Appeal to – Adoption of Collegium System to Consider Withdrawal of Appeals Before High Courts Where Same Are No Longer Considered Prosecutable

Whether supply of food in train amounts to 'outdoor catering service' is a debatable issue; HC reduc

Service Tax : In view of conflicting view of various High Court, issue 'whether supply of food and beverages in trains amount to outdoor catering services' is debatable and further, extended period could not be invoked prima facie; therefore, pre-deposit was reduced

After sales service charges borne by dealer out of its margin aren't includible in excisable value

Central Excise : Cost of Pre-delivery inspection (PDI) and free after-sales service (ASS) borne by dealers from their margin would not be included in assessable value of manufacturer for purposes of paying excise duty. In other words, —

India's Sugar Stockpile To Deplete By A Quarter On Rising Exports: Trade Body

NEW DELHU: India is likely to start the 2016/17 marketing year with 6.7 million tonnes of sugar, down 26.4 percent from the current year, as rising exports will help the world's second biggest producer to bring down the inventory, the chief of a leading trade body said on Wednesday.

Higher Indian exports would put pressure on global prices , but harden local prices and help mills in paying farmers state-fixed support price for sugar cane.

"The main markets for Indian sugar are Sri Lanka, Middle East and African countries. We can certainly exports 1.0 to 1.2 million tonnes of white sugar," said A Vellayan, president of the Indian Sugar Mills Association.

"We can also export up to 2 million tonnes of raw sugar."

India started the 2015/16 marketing year on Oct. 1 with 9.1 million tonnes carry-forward stocks.

 

Source :economictimes.indiatimes.com

Winding-up plea dismissed as overdue sum could be set-off against sum receivable from group concern

CL: Winding-up plea dismissed as overdue sum could be set-off against sum receivable from group concern of debtor company