Textile Sector Welcomes Revision

The textile sector has welcomed the increase in drawback rates and value caps for several textile products, which will come into effect from November 23. Cotton Textiles and Export Promotion Council Chairman, R. K. Dalmia, has said in a press release that increase in the drawback rates for cotton made ups and garments would encourage export of value added products. However, some high value items such as ‘boiler suits’ and ‘protective wear’ made of cotton and manmade fibre blends have not been covered. According to the Southern India Mills’ Association (SIMA) Deputy Chairman P. Nataraj, increase in the rates for value added products will encourage the sector to focus on value addition. Indian Texpreneurs Federation has said that the importance given to manmade fibre based yarn and fabrics in the drawback revision will give a boost to value addition in man-mande fibre segment.

 

 

 

 

 

 

 

 

 

 

Source :thehindu.com

 

 

 

 

 

Sale of goods from Kerala to SEZ unit isn't deemed as export; liable to sales tax

CST & VAT : Kerala VAT - As per SEZ Act, Sales to SEZ unit is regarded as taxable sales unless any specific exemption in respect thereof is provided under CST Act or under the respective state legislation. In the instant case, it was held by the High Court that sale of sandalwood from Kerala to SEZ unit in Madras does not qualify to be export sales under Kerala VAT as no specific exemption has been provided either under Kerala VAT Act or under CST Act.

Pest Invasion To Push Cotton Production To Five-Year Low

AJKOT: Cotton production in Gujarat, the largest producer of this staple fiber in India, may drop by 30% due to massive invasion of pink bollworm pest and sukaro (para wilt) disease. Farmers and agriculture experts fear the production may fall to a five year low to less than 90 lakh bales - down from 125 lakh bales in 2014-15. Besides farmers, the lower production threatens to hit the textile trade.

The unprecedented magnitude of the dual menace has forced thousands of cotton growers in Saurashtra and north and central Gujarat to destroy their standing crop, rendered useless due to infec tion. The crisis claimed its first victim, a 30-year-old farmer from Supedi village near Rajkot, who committed suicide after pest attack destroyed cotton grown on 85 bigha land.

"Cotton production will be 30% less this year. The area under sowing in 2015-16 was already down at around 27 lakh hectares as against 30 lakh hectares the previous year as farmers switched to other cash crops like groundnut," said N M Sharma, managing director, Gujarat State Co-operative Cotton Federation Ltd (Gujcot). Sharma said that the production may not cross 90 lakh t bales, the lowest in five years.r Bhikhu Vekariya, a farmer in Devrajiya village of Amreli, said, "Due to pink bollworm, I got just around 200 kg per bigha instead of 600 kg per e bigha earlier. None of the pesti cides are effective."

The market prices of cotton have also declined to Rs 32,100 Rs 32,200 per candy (356 s kg) from Rs. 32,800-Rs 32,900 h per candy a month back on global cues. Farmers want the , minimum support price (MSP) e to be hiked from Rs 810 per 20 kg to over Rs 900 per 20 kg. It's a delicate situation for ginners too who are I wary of government hiking MSP . "We won't be able to afford raw cotton if the MSP is hiked above Rs 900 per 20kg.

The yarn market is reeling under slowdown and mills are already facing problems due to subdued textile market," said Dilip Patel, president, All Gujarat Ginners Association. "This pest can be controlled only if it's detec ted early. Once it enters the cotton balls, pesticides are not effective," Dr. K L Raghvani, head of entomology department at Junagadh Agricultural University , said. Raghubha Vaghela, a farmer from Derala village of Maliya-Miyana said, "I lost around 40% cotton in my 40 bigha land due to sukaro and pink bollworm." "Half of the cotton crop in my 86 bigha land is destroyed. I destroyed the infected crop after first round of plucking and sowed wheat and sesame as I have irrigation facility'' says Natubha Parmar, a farmer from Godavari village in Muli taluka of Surendranagar.

Entomologists say sukaro (para wilt) disease occurs due to many reasons, one of the main being lack of nutrients in the land where cotton is sown.

Source :timesofindia.indiatimes.com

Gold Falls To Near 6-Year Low With Fed Still In Focus

Gold prices fell more than 1 percent to the lowest price in nearly six years on Tuesday, pressured by expectations that the United States will raise interest rates in December, and as the dollar rose and stocks rebounded from losses suffered after Friday's attacks in Paris.

The other precious metals followed gold down, with silver dropping for the fourteenth straight session to a 2-1/2-month low and platinum tapping a seven-year low.

Spot gold was down 1.1 percent at $1,070.18 an ounce, after falling to $1,065.18, the lowest since February 2010.

U.S. gold futures for December delivery settled down 1.4 percent at $1,068.60.

 

 

 

 

 

 

 

Source : cnbc.com
 

CCI slapped penalty on Jet Airways, Indigo and Spice Jet for forming cartel to fix fuel surcharge

Competition Act: Where opposite parties i.e. Jet Airways, Indigo and Spice Jet had acted in a concerted manner in fixing and revising fuel surcharge (FSC) rates for transporting cargo, conduct of OPs was anti - competitive and penalty was to be imposed upon them

Stay to be granted when TPO determined ALP of AMP exp. by following ratio of LG’s case instead of So

IT/ILT : Where assessee challenged demand made on account of T.P. adjustment on basis of Tribunal's decision, but High Court had disallowed said decision, assessee had good prima facie case for stay on said demand

MCA releases new Form MGT 7 with more clarifications

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Management And Administration) Third Amendment Rules, 2015 – Substitution Of Form MGT-7

Sum paid to US based co. to review design of cranes could be 'FTS' if major changes were suggested i

IT/ILT: Where assessee-company engaged a company registered in USA, for review of design of cranes but it could not be discerned from records whether suggestions given by U.S. company would bring brought any major change or improvisation in design of crane, matter should be reconsidered afresh

Penalty on attempt of illegal export can also be levied after illegal export

Excise & Customs : Since 'illegal export' is preceded by an 'attempt towards illegal export', confiscation under section 113 and penalty under section 114 are attracted against 'attempt of illegal export' even after goods have been actually exported

No penalty when additional income was declared in revised return after seized books were returned by

IT: Admission of income by assessee in revised return cannot give jurisdiction to Assessing Officer to levy penalty under section 271(1)(c)

Tax Authorities can’t attach Cash Credit Account of taxpayer to recover tax dues

IT: Where Assessing Officer raised huge tax demand upon assessee and in meantime bank account including cash credit account of assessee had been attached by income tax authorities, in view of decision of Madras High Court in case of K.M. Adam v. ITO [1958] 33 ITR 26, cash credit account of assessee could not be attached and it was entitled to be discharged

No penalty due to non-charging of ST on bank's commission as issue of its taxability was sub-judice

ST : Since taxability of business auxiliary service for which commission was paid to bank and insurance company and business support services for which handling charges was paid for RTO registration of vehicle, were subjudice in various forums, penalty could not be imposed for failure to deposit in government exchequer amount of service tax deducted; however, in respect of services of motor vehicle where assessee failed to deposit service tax, penalty was to be imposed

Foreign tax credit should be given on tax liability computed under MAT provisions

IT/ILT : There is no provision in Income-Tax Act, debarring granting of credit for tax paid abroad in case income is computed under Section 115JB

Co. having unreliable financial data can't be chosen as comparable for TP study

IT/ILT : A software product company could not be compared with assessee-company, which was primarily designing and developing software on contract basis for its AE

SEBI releases guidelines on Annual System Audit, Business Continuity Planning and Disaster Recovery

SEBI : Annual System Audit, Business Continuity Plan (BCP) and Disaster Recovery (DR)

SEBI issues circular to streamline framework of investor redressal and Arbitration Mechanism

SEBI : Investor Grievance Redressal System and Arbitration Mechanism

Oil And Gas Block Auction Policy To Be Ready By Fy16: Dharmendra Pradhan

Government expects to finalise the new policy for auction of oil and gas blocks during the ongoing financial year, Oil Minister Dharmendra Pradhan said.

"We have brought this consultation paper and suggestions will come in by November 30. We will make the policy after considering all the views and take it to the Cabinet. It will be our endeavour to make the policy during this financial year only," Pradhan told reporters on the sidelines of Bio-Energy Summit 2015 organised by CII here.

Yesterday, Oil Ministry had issued a paper on new fiscal and contractual regime for award of hydrocarbon acreages with a view to revive investor interest in oil and gas exploration by simplifying rules.

It proposes to free natural gas pricing as well as replace the controversial Production Sharing Contract (PSC) with simpler revenue-sharing regime for all future field auctions in the backdrop of low gas prices not attracting investors in exploration and production sector.

Global players like BP and domestic companies including RIL as well as state-owned ONGC have been seeking pricing freedom as the current rates make new investments unviable.

"There were suggestion on the issue from institutions like CAG. In order to make new bidding round more progressive, transparent and market friendly, we have brought in this consultation paper," the minister explained.

In September, the government had allowed pricing freedom for the gas produced from 69 small and marginal fields it plans to auction shortly.

On the Indian basket crude oil price cracking below USD 40 barrel mark to touch USD 39.89, the minister said, "We have to accept the changing geopolitical scenario of the world. Let's see how things are coming up. But this kind of price is certainly favourable for the Indian market."

While addressing the conference, he made it clear that lower crude prices will not change India's stance on increasing share of renewables sources in its energy mix.

He also indicated that as much as 20 GW of output from bio-energy will be achieved against the envisaged 10 GW under the total renewable energy target of 175 GW till 2022.

On LPG gas subsidy to households, Pradhan said: "There should be a public discourse on the issue whether LPG subsidy should be given to higher income groups. We will take a decision on this."

The government is planning to stop providing LPG subsidy to the consumers whose income is above Rs 10 lakh.

On the issue allowing premium pricing on gas produced from difficult deep-water and ultra deep-water blocks, he said oil and finance ministries will take a decision on the issue after achieving consensus.

Speaking at the same occasion, Railways Minister Suresh Prabhu said: "We are launching our first wind turbine in Jaisalmer by the end of this week. We need to invest in R&D in green power."

Source : economictimes.indiatimes.com

Insurers no more required to state in ads that "insurance is subject-matter of solicitation" -IRDA

INSURANCE/INDIAN ACTS & RULES : IRDAI (Insurance Advertisements and Disclosure) (Amendment) Regulations, 2015 – Amendment in Regulation 9

CCE(A) has to consider request for extension of pre-deposit which is made before due date of pre-dep

Excise & Customs : Commissioner (Appeals) has power to extend due date for making pre-deposit and he does not become functus officio as regards extension till due date for making pre-deposit

Block assessment couldn't be initiated on basis of survey

IT : There being no search under section 132, block assessment invoking provisions of section 158BC would not arise