CA Terminal

Monday, 16 November 2015

Coal India Dips 3% As Production Numbers Dissapoint

Shares of Coal India slipped over 2 per cent in Monday's trade after the company reported September quarter results largely in line with the expectations of the Street. The world's largest coal miner reported a 16 per cent year-on-year increase in net profit at Rs 2,543.80 crore against Rs 2,192.38 crore reported for the same quarter a year ago.

The scrip fell 3.16 per cent to hit a low of Rs 326.95 during morning trade.

Coal production during the second quarter of the financial year stood at 108.20 million tonne (MT) against 102.42 MT reported for the second quarter previous year, a statement released by the state miner on the BSE website said. "While production was slightly below our estimate at 108.2 million tonne for the quarter (against an estimate of 110.6 MT), offtake volume was marginally ahead of expectations at 121.8 million tonne (estimate 119.1 MT)," Angel Broking said in a note to investors.

Consolidated net sales of the company stood at Rs 16,957.59 crore during the quarter, registering an increase of eight per cent. "The increase in earnings was largely due to the higher production and better offtake during the period compared with the corresponding period of previous year," the miner said.

"E-auction realisations came in much lower than expected at Rs 1,788 crore. This was partially offset by better-than-expected washeries realisations of Rs 2,328 crore," the brokerage firm said. Angel Broking maintains a 'buy' rating on the stock with a target price of Rs 400.

Source :economictimes.indiatimes.com

Nalco To Invest Rs 5600 Crore At Alumina Refinery In Odisha's Damanjodi

KOLKATA: National Aluminium Company (Nalco), the country's leading state run PSU in the aluminium sector, has said it will invest Rs 5600 crore in setting up a 5th stream of one million tonne capacity in the precincts of the existing alumina refinery at Damanjodi, in Odisha's Koraput district.

Nalco latest investment thrust comes on heels of allocation of Utkal D&E coal blocks by the Centre and the state government's recommendation of Pottangi bauxite mines in favour of Nalco.

The plans of the navratna PSU was disclosed by mines secretary, Balvinder Kumar, when he called on Mr. Naveen Patnaik, Chief Minister of Odisha and Gokul Chandra Pati, Chief Secretary, Govt. of Odisha on Monday. T K Chand, CMD, NALCO was also present at the high-level meeting.

Mr Kumar also said Nalco would, at the same time, spend another Rs 2,000 crore to develop the 200-million-tonne coal blocks recently. These blocks, which were recently allotted to the company, are located in Angul district of Odisha. The company's Smelter and Power Complex is also located in the same district. The aluminium major is also closely associated with the state government in setting up an aluminium park in Angul to attract downstream industries.

"This is just a humble beginning in our roadmap for expansion and investment plans. Since our entire value chain is located in Odisha, we are committed to the people of the State. Besides, in the context of recently announced State Industrial Policy, it makes lots of business sense to invest in Odisha", T K Chand said. The state has recently launched a new industrial policy to attract an investment of Rs 1,73,000 crore in the state.

Source :economictimes.indiatimes.com

Msme Entrepreneurs Caught In Aadhaar Web

Efforts of entrepreneurs to start new ventures in the micro, small and medium enterprises (MSME) sector in the State have hit a roadblock. The situation is the result of a reform that envisaged registration of units, incorporating Aadhaar linkage, introduced under a direction from the Union government.

The State Industries Department has stopped issuing Entrepreneurs Memorandum Part-I, a document which facilitates access to official channels for getting the required licences and finance to establish the unit. The issuance of the memorandum has been stopped from October 20.

The action of the State government is the result of introduction of Udyog Aadhaar Memorandum as per instructions from the Ministry of Micro, Small and Medium Enterprises, vide letter dated September 18 this year. The Udyog Aadhar had been launched in Gujarat when Narendra Modi was the Chief Minister there.

According to the new regime, MSMEs are to register under a new format linking Aadhaar number and bank account. The application being filled up online facilitates registration for existing units only, according to industry representatives.

Basic document

The Entrepreneurs Memorandum Part-I is a basic document or a gateway to various facilities offered by government agencies and financial institutions. The document is necessary for the entrepreneur to approach banks, electricity board, pollution control board and other authorities. The Udyog Aadhaar scheme doesn’t provide such a platform. Prior to the implementation of Entrepreneurs’ Memorandum in 2006, the State government had been providing a provisional SSI registration to new enterprises through the District Industries Centres. The SSI provisional registration and permanent certification were transformed into Entrepreneur Memorandum-I and II respectively, in 2006.

All entrepreneurs had to comply with the rule then. Now, the government wants the units to get themselves registered under the new Udyog Aadhaar memorandum, but has failed to provide guidelines for new enterprises.

Industry sources said the State would have to issue a new notification to facilitate registration of new enterprises.

Source : thehindu.com

Copper Falls By 0.2% On Weak Global Cues

Copper futures fell 0.16% to Rs 317.20 per kg today after participants trimmed exposure, tracking a weak trend in base metals overseas.

At Multi Commodity Exchange, copper for delivery in November shed 50 paise, or 0.16%, to Rs 317.20 per kg in a turnover of 764 lots.

The metal for delivery in far-month February 2016 was trading down 20 paise, or 0.06%, to Rs 324.05 per kg in a business volume of 38 lots.

Analysts said besides subdued demand at domestic spot markets, weakness in the base metal pack at the London Metal Exchange (LME) as investors rushed to less risky assets after the terror attacks in Paris led to a fall in copper prices at futures trade here.

Globally, copper for delivery in three months dropped 0.9% to trade at $4,783 per tonne at LME, the lowest since July 2009.

source :.business-standard.com

Loss incurred on forex derivative contracts aren't speculative loss

IT : Where assessee, engaged in manufacturing and export of garments entered into forex derivative contracts and incurred loss, such loss was to be regarded as business loss which could be set off against business income of assessee

CBEC releases FAQs on Swachh Bharat Cess

EXCISE : Frequently Asked Questions (FAQs) on Swachh Bharat Cess (SBC)

Insurance services availed from foreign insurer for stock lying in foreign warehouse eligible as inp

Cenvat Credit : Service tax paid on insurance services received for insurance of (a) existing as well as retired employees, and (b) stock stored in foreign warehouses, is eligible for input service credit

Penalty levied on assessee for accepting cash loan as it failed to prove that such receipt was from

IT : Where assessee failed to prove that he had received Rs. 15 lakhs in cash towards advance for sale of property, AO was justified in holding that it was infact a loan received in violation of provisions of section 269SS and, thus, penalty order passed under section 271D was to be confirmed

Sunday, 15 November 2015

Mere reading of docs for Octroi clearances doesn't amount to handling of docs of title; not liable t

Service Tax : Mere filling up of form and obtaining Octroi clearance at check post, does not amount to dealing with or handling documents of title; hence, such Octroi agent cannot be made liable to service tax under Business Auxiliary Services

Excise duty on LPG to be computed on transaction value even in case of Administered Price Mechanism

Central Excise : After introduction of transaction value based duty from 1-7-2000, a manufacturer of LPG selling the product in bulk to an Oil Marketing Company (OMC) for further sale in packed form to dealers/domestic consumers and recovering ex-refinery price from the OMC as sale consideration is —

TPO should give reasoning for rejecting TP method continuously followed by assessee

IT/ILT : Where in earlier year RPM applied by assessee to determine ALP of its transaction of purchase from its AE and sale to Indian parties was accepted and during relevent year TPO had not given detailed reasoning as to why RPM was not applicable to assessee, matter should be considered afresh

No extended period when assessee has challenged levy of service-tax on commission paid to foreign br

Service Tax : Where assessee had challenged constitutionality of levy of service tax and department was aware of all facts since that time, then, later, department cannot allege suppression of facts to invoke extended period

High Court unhappy with AO for adjusting refund which wasn't processed by dept.

IT: Where refunds accrued to assessee for earlier assessment years were not processed, action of Assessing Officer by resorting to section 245 and adjusting same for any new subsisting due could not be valid

Saturday, 14 November 2015

LIBOR is best benchmark under transfer pricing for interest-free loan granted to AE

IT/ILT : Where assessee advanced interest-free loan to its AE, LIBOR is best basis for benchmarking interest rate and since there was no independent CUP rate available to benchmark said international transaction, as per RBI guidelines, Assessing Officer should adopt 6 months LIBOR + 150 basis points for three years and LIBOR + 250 basis points for five years

Goods bearing brand name of other are ineligible for SSI exemption even if they are captively consum

Excise & Customs : Goods bearing brand name of buyer are ineligible for SSI-exemption even if they are used captively by buyer for further manufacture; hence, they are not includible in aggregate value/eligibility turnover under SSI-exemption

CIT(A) rightly directed AO to allow sec. 10B relief after considering additional ground raised by as

IT : Where Assessing Officer disallowed claim of assessee for deduction under section 10B and on appeal assessee filed additional ground raising an alternative claim that it was entitled for deduction under section 10A, Commissioner (Appeals) was right in directing Assessing Officer to consider alternative claim of assessee