CA Terminal

Thursday, 10 July 2014

Budget 2014-15 : Amendments proposed in Service Tax, Excise and Customs

[Indian Customs Non-Tariff Notification] : Seeks to specify class of persons for the purposes of section 28E of the Customs Act, 1962.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 51 /2014-Customs (N.T.)

New Delhi, the11th July, 2014

G.S.R. (E).- In exercise of the powers conferred by sub-clause (iii) of clause (c) of section 28E of the Customs Act, 1962 (52 of 1962), the Central Government hereby specifies "the resident private limited company" as class of persons for the purposes of the said clause.

Explanation.- For the purposes of this notification,-

(a) "private limited company" shall have the same meaning as is assigned to "private company" in clause (68) of section 2 of the Companies Act, 2013 (18 of 2013);

(b) "resident" shall have the same meaning as is assigned to it in clause (42) of section 2 read with sub-section (3) of section 6 of the Income-tax Act, 1961 (43 of 1961).

[F.No. 334/15/2014-TRU]

(Pramod Kumar)

Under Secretary to the Government of India

Budget 2014-15 : Highlights of amendments proposed in Service Tax

Union Budget, 2014-15: Changes in Service Tax - reg.

India’S Oilmeal Exports Down

India’s oilseed meal exports have declined by 31 per cent at 592,850 tonnes for the first quarter ended 30 June 2014 (April to June).During the same period last year, exports of oilmeal were recorded at 856,686 tonnes, Solvent Extractors’ Association of India (SEAI) said in a quarterly report.

In June 2014, export of soybean meal drastically reduced to just 2,637 tonnes, lowest in the history, however export of rapeseed meal and castor meal saved the situation and reported at 193,313 tonnes compared to 360,822 tonnes in June 2013, the statement adds.

SEAI said, export of soybean meal reduced due to poor availability of soybean coupled with high price lead to total disparity in international market.

South Korea, Iran and Thailand were the major importers of oilmeal during the first quarter.

Oilmeal import by South Korea during April-June was reported at 295,249 tonnes, against 304,745 tonnes, consisting 142,750 tonnes of rapeseed meal, 152,062 tonnes of castor meal and 617 tonnes of soybean meal.

Iran imported of 102,275 tonnes, as compared to 260,734 tonnes last year consisting of 35,500 tonnes of soybean meal and 66,775 tonnes of rapeseed meal, the statement adds.

Thailand imported of 44,192 tonnes, as compared to 55,810 tonnes, consisting 41,800 tonnes of rapeseed meal and 2,392 tonnes of soybean meal.

Viet Nam imported 29,664 tonnes, compared to 37,156 tonnes last year consisting of 16,091 tonnes of rapeseed meal, 3,462 tonnes of soybean meal and 10,111 tonnes of rice bran extraction.

Taiwan imported 20,866 tonnes, against compared to 27,521 tonnes of last year consisting of 13,995 tonnes of rapeseed meal and 6,833 tonnes of castor meal and small quantity of 38 tonnes of soybean meal.

Import from Europe drastically reduced to 36,017 tonnes during the first quarter compared to 109,062 tonnes imported during the same period last year, SEAI statement.

Source:- thepigsite.com

India May Cut Gold Import Duty

India is likely to cut its gold import duty to 6 per cent from a record 10pc in Thursday’s budget, leading to a rise in imports, a senior official at the country’s biggest gold trade group said on Wednesday.

Higher overseas purchases by the world’s No.2 buyer of the precious metal after China should underpin global gold prices that have risen almost 10pc this year, recovering from a 28pc plunge in 2013.

The drop to 6]pc in import duty “is practical and it may be reduced further. A reduction in import duty may encourage more demand from the consumers”, Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation, told the Reuters Gold Forum.

Bamalwa, whose federation represents more than 300,000 jewellers, met Finance Minister Arun Jaitley late last month, and said: “He (Jaitley) seemed very positive and we expect some good news about the industry.”

Jaitley’s maiden budget will be the first major policy event since Prime Minister Narendra Modi’s landslide general election win in May.

Finance ministry officials were not immediately available for comment outside business hours. Gold imports into India are likely to rise 200 tonnes in the second half to December, a 14pc increase compared with the first half, Bamalwa said.

Source:- dawn.com

Live Update Budget 2014: Personal Tax Exemption Limit raised by Rs. 50,000; No change in rate of sur

Live Update Budget 2014: Personal Tax Exemption Limit raised by Rs. 50,000; No change in rate of surcharge

Live Update Budget 2014: Maximum exemption limit raised to Rs. 2.5 lakhs for an individual

Live Update Budget 2014: Import duty on steel increased from 5% to 7.5%

Live Update Budget 2014: PPF annual ceiling enhanced to 1.5 lakhs

Wednesday, 9 July 2014

Defense Ministry issues security manual for its licensed industries

FDI/FEMA/ILT : Security Manual for Licensed Defence Industries

IRDA issues new format of 'Financial Condition Report' for non-life insurance Cos; to be effective f

INSURANCE : Financial Condition Report For Non-Life Insurance Companies - Supersession of Circular No. Irda/Actl/Cir/Misc/081/05/2010, Dated 13-5-2010

Live Update Budget 2014: Committed to revive Special Economic Zones: Jaitley

Mango Exports Likely To Dip This Year

With the European Union (EU) banning import of Indian mangoes earlier this year, exporters have tried to focus on other markets, especially the US to compensate for the loss. However, industry insiders feel that the US is unlikely to make up for the volumes lost to EU, and overall mango exports from the country would be less by around 10-15 per cent this year.

Abhijeet Bhasale, managing director of Pune-based import-export house Rainbow International that is also engaged in online retailing ofmangoes through mangowale.com said, "We are the second largest exporter of mangoes to the USA, and had exported over 90 tonnes of mangoes to the US last year. However, this year we have not seen any rise in exports to the US." He outlined two main reasons behind this, one is that the irrradiation facility at Lasalgaon in Maharashtra that was undergoing a capacity expansion was not ready until end of April. Irradiation process certification is required to export mangoes to US.

On top of this, the US also employed stringent checks on Indian mangoes at airports following the ban from EU. India's total mango exports to the US last year was around 280 tonnes, and this year it can increase by 15-20 per cent. However, it is unlikely to compensate for the volumes lost in EU trade.

Traders say that the entire EU basket of exports is around 5,000 tonnes of mangoes, of which the UK is one of the biggest markets accounting for nearly 3,500 tonnes of export. The Agricultural Processed Food Products Export Development Authority (Apeda) figures show that India had exported nearly 3890 tonnes of mangoes to the EU in 2012-13. However, traders claim that original export figures are higher than the Apeda numbers, as all exporters are not registered with the Apeda.

Sudhanshu, regional in-charge, west zone, Apeda, however, says that exports to the US have been extended till mid-July. "We are expecting to touch 400 tonnes in total exports to the US this year, and have so far done around 300 tonnes. Among other markets, exports to New Zealand has increased to over 50 tonnes from a 30 tonnes last time," he said.

However, when it came to the traditional markets in West Asia (which accounts for around 50 per cent of mango exports from India), some of the South Gujarat-based traders pointed out that this year Pakistan has managed to raise its share of exports to these countries. "The kesar crop in Gujarat has been affected this year due to the unseasonal rains, and mango arrivals in Talala and also parts of Maharashtra have been less compared to last year," said Nanjibhai Patel, a Junagadh based trader.Total mango exports from India were around 55,000-56,000 tonnes in 2012-13.

Source:- business-standard.com

Economic Survey For Increasing Share In Merchandise Exports

India should more than double its share in world merchandise exports to at least 4 per cent in the next five years, a government document has said.

In 2013, India's exports share in world merchandise exports was 1.7 per cent, said the Economic Survey 2013-14, tabled in Parliament by Finance Minister Arun Jaitley on Wednesday.

"India should aim to increase its share in world merchandise exports from 1.7 per cent in 2013 to a respectable ballpark figure of at least 4 per cent in the next five years," it said, adding, "India's exports should grow consistently by around 30 per cent annually to reach" that figure.

It said the aim is "not impossible" as during 2003-04 to 2007-08, India's exports grew consistently by above 20 per cent annually.

However, it said that achieving this aim in the medium term is a big challenge and some basic steps need to be taken like product diversification, building export infrastructure, focusing on useful free trade agreements, addressing the inverted duty structure, rationalising export promotion schemes, and taking steps for trade facilitation.

India's merchandise exports share in world exports increased from 0.5 per cent in 1990 to only 1.7 per cent in 2013 whereas China's share increased from 1.8 per cent to 11.8 per cent during the same period.

"Thus there is a yawning gap between India and China in the share of world merchandise exports," it added. The country's exports grew by a double-digit pace for the first time in seven months in May, narrowing the trade deficit,” it noted.

"In 2014-15 first quarter, trade deficit declined by another 42.4 per cent.”

It said the pick-up in India's exports in April-May 2014, though a positive sign, is partly due to the low base.

According to the International Monetary Fund’s World Economic Outlook projection, world trade volume would grow to 4.3 per cent in 2014 and 5.3 per cent in 2015 from the 3.0 per cent in 2013 with a marked improvement in export and import growth of advanced countries.

However, it said there is also the downside risk of external shocks like the latest increase in oil prices owing to the Iraq crisis.

Talking about the services sector growth, it said services growth to a large extent depends on global growth and trade. The prospects for IT services, however, seem bright with Gartner projecting a 3.1 per cent increase in IT spending worldwide in 2014.

The robust growth in foreign tourist arrivals of 10.6 per cent coupled with the 11.4 per cent growth in foreign exchange earnings in the first two months of 2014-15 also augurs well for the Indian tourist sector."Thus the signals in India's service exports are mixed," it added.

Source:- profit.ndtv.com

Live Update Budget 2014: Five more IITs and IIMs to be set up

Live Update Budget 2014: FM raises FDI in defense up from 26 to 49 % with Indian management and cont

Live Update Budget 2014: FM raises FDI in defense up from 26 to 49 % with Indian management and control.

India's Jsw Raises Iron Ore Imports

JSW Steel, led by billionaire Sajjan Jindal and India's third-largest maker of the alloy, will import 6 million metric tons of iron ore this fiscal year compared with no shipments a year earlier due to production cutbacks at home.

JSW's return to the sea-borne iron ore market after a gap of more than a year could further support prices that seem to be recovering after sliding to 21-month lows in mid-June.

India's Supreme Court in May ordered the temporary closure of some iron ore mines in top producing state Odisha pending renewal of their licences. This has cut output from the state that produced more than 70 million metric tons last fiscal year.

A previous court clampdown on illegal mining in Karnataka and Goa states have also stifled supplies.

The company last week took delivery of its first imported iron ore shipment in over a year in a capesize vessel carrying 170,000 metric tons of high-grade ore from South Africa, JSW's Joint Managing Director Seshagiri told Reuters on Wednesday.It imported about 1.6 million metric tons in 2012/13.

"Imports are coming all the way from Canada, South Africa and Australia," he said in a telephone interview. "Iron ore can be seen in Karnataka but it is not available to the industry."

India was once the world's third largest exporter of iron ore, shipping more than 117 million metric tons in the fiscal year through March 2010. It slipped to No. 10 last fiscal year, with exports estimated at less than 20 million metric tons.From about 218 million metric tons in 2009/10, India's iron ore production fell to 144 million last fiscal year ended March 31.

Rao said output is expected to drop to 100 million metric tons in the current fiscal year against demand of 140 million.The domestic shortage has also forced JSW to use low-grade iron ore ignored by local steel mills before the mining restrictions came into place in the past three years.

This has increased JSW's consumption of coke, a processed form of coal, by up to 25 percent as low-grade iron ore tends to consume more energy, Rao said.As a result, the company's coke imports will continue to rise from the 8 million metric tons it shipped in last fiscal year.

Source:- marinelink.com

Foie Gras Import Ban: Should The Government Decide What You Eat?

In a controversial move, the Government of India has banned the import of Foie Gras – a food product made from the liver of a duck or goose that has been specially fattened. Foie Gras has been a contentious issue because of the way it is produced.

Foie gras is a popular and well-known delicacy in French cuisine. Ducks are forced to endure the pain of force-feeding, which is done to enlarge their livers, and are ultimately killed to extract the liver which is described as rich, buttery, and delicate, unlike the liver of an ordinary duck.

Force-feeding of birds dates as far back as 2500 BC, when the ancient Egyptians used to deliberately fatten them for food. Today, France is the largest producer and consumer of foie gras, though it is produced and consumed worldwide, particularly in other European nations, the United States, and China.

Although the move to ban the import of foie gras has won India accolades from the animal rights groups across the world, it has raised many eyebrows at home as some people feel that the Government should leave it to consumers to decide what they want to eat.

One feels compelled to ask: What about lakhs of chickens and goats which are slaughtered daily in the country? Will the Government ban them too? Such a thing is not practically possible. People are capable of making the right moral and personal choices for themselves. The Government has no business prescribing food habits.

According to The Wall Street Journal, an official said that the ban is a result of complaint by an animal activist group. “Import policy of the item ‘foie gras’… is revised from ‘free’ to ‘prohibited’,” the Directorate General of Foreign Trade (DGFT) said in the notice on its website. “The decision takes immediate effect,” said SP Roy (Joint Director General of Foreign Trade at the Directorate).

Animal Equality, a London-based animal activist group, has been campaigning for a ban on foie gras across the world since 2012. A spokesperson of Animal Equality, Amruta Ubale, told the Wall Street Journal, “India is the only country to ban imports, whereas countries such as Israel, Germany and England have only banned the production of foie gras.”

While people can be made aware or educated, the Government taking decisions on their part — that too about something as personal as food habits — doesn’t make sense.

While a ban on import of narcotic drugs is logical, one wonders why the Government should ban an import when there is no national interest or economic interest at stake.

Any ban is executed by the bureaucracy. That’s the level where corruption seeps in with bureaucrats giving a free hand to few in exchange for bribes. In case of a ban on an import such as this, custom officials get several easy opportunities to facilitate smuggling of the banned products.

Every ban implies greater regulation and more government and hence goes against the grain of the mantra that this Government has adopted from day one: Minimum Government, Maximum Governance”.

Source:- niticentral.com

Adani Gas abused its dominance position as it imposed unfair conditions on buyers for supply of gas,

Competition Law : Where Gas Sales Agreement (GSA) entered into by opposite party (gas company) with its buyers provided for payment of interest by buyer on delayed payment and for termination of contract by opposite party on account of failure to off-take 50 per cent or more of cumulative Daily Contracted Quantity (DCQ) by buyer during a period of 45 consecutive days as against longer period available to opposite party from GAIL, GSA imposed unfair conditions in contravention of section 4 of Com

Data collection charges couldn’t be deemed as charges for professional services to attract TDS under

IT : Data collection charges paid by assessee are not covered by expression 'professional services' as mentioned in Explanation to section 194J