IT : In case of company, mere mentioning name of country visited by directors alongwith mentioning of total amount of expenditure under various heads of expenses like, hotel bills, air-ticket, etc., does not indicate or establish business purpose of foreign travel expenses incurred by assessee-company
Monday, 22 December 2014
Sum received from sale of carbon credit is a capital receipt, says ITAT
IT : Receipt on sale of carbon credits is a capital receipt
ITAT directed TPO to choose comparables on basis of ruling of Motorola’s case as it contained simila
IT/ILT : Where facts of case of assessee were similar to facts of case of Motorola Solutions India (P.) Ltd. v. Asstt. CIT [2014] 48 taxmann.com 248 (Delhi) and comparables picked up by TPO in both cases were same, decision of Tribunal in Motorola's case on each of comparables had to be followed in case of assessee
In FOR transaction assessee can claim credit on freight upto buyer's place
Excise & Customs : In case of FOR transactions, place of removal is buyer's place and freight upto buyer's place is includible in value and hence, duty paid on such value is in accordance with law and is eligible for refund under area-based exemptions
Penalty leviable on non-disclosure of income in respect of refundable deposit of empty bottles; SLP
IT: SLP dismissed against High Court's ruling that where assessee had disclosed income from refundable empty bottle deposits in profit and loss account and balance sheet both in earlier and subsequent assessment years but had failed to disclose same in current year, levy of penalty was justified
No addition on protective basis against partner if same addition was already made on substantive bas
IT : Addition once made on substantive basis in case of firm or other partners and same was sustained, same addition could not be made on protective basis in hands of assessee being partner of firm
RBI announces new criteria for classifying borrower as non-cooperative
BANKING : Non-Cooperative Borrowers
Interest income on NPA has to be recognized as per legal position and not on basis of presentation i
IT : Where assessee had credited gross amount of interest on NPAs on both side of profit and loss account and same was in compliance with requirement of statutes, rejecting claim of assessee for non-recognition of interest income on NPAs on basis of presentation in annual financial statement was not justified
No recovery during pendency of appeal as on compliance with stay order balance dues automatically st
Excise & Customs : Where stay order of Tribunal has been complied with, balance dues are automatically stayed until stay order is modified/set aside by Tribunal or higher authority; hence, recovery during pendency of appeal is bad in law
Delay in filing appeal due to delayed payment of taxes condoned as assessee was facing financial cri
IT : Where assessee faced financial hardship to pay tax due at relevant time and after making sufficient arrangements of funds could pay tax due, delay was to be condoned
ALP of international transaction couldn't be deemed as 'Nil' without adopting any prescribed method
IT/ILT: Where significant costs had been incurred by assessee in respect of a project and assessee had also furnished relevant invoices raised in this regard, it was incumbent upon TPO to work out ALP of relevant transactions by following some authorized method and entire cost borne by assessee could not be disallowed by taking ALP at nil
Even visually impaired person can’t escape from penalty on violation of Takeover Code, says SAT
SEBI : When a visually impaired person dealing in shares in stock market violates any of regulatory provisions, then that person cannot escape penal liability
Job worker can't take credit of transportation services from his factory to depot of principle-manuf
Cenvat Credit : Assessee, a job-worker, cannot take input service credit of transport from his factory to depot of principal manufacturer, when it is found that : (a) clearances were not 'FOR Destination' and place of removal is factory gate of assessee; and (b) freight was not borne by assessee but by principal manufacturer
SC: Mobile charger is an accessory of mobile phone and not its integral part; leviable to VAT at 12.
CST & VAT: Punjab VAT - Where assessee sold mobile/cell phone with battery charger in same packing and it did not charge any separate amount for battery charger from customers and only amount charged was for handset, battery charger was an accessory to cell phone and was not a part of same and was liable to tax at general rate of 12.5 per cent
No denial of exemption granted by authority even if exemption under old notification was withdrawn r
CST & VAT: Kerala Sales Tax : Where assessee in terms of a Notification was granted exemption from payment of tax, subsequently it could not be denied benefit of exemption already granted relying on a new Notification
Title cover of text Books forms part of the book; its supply would be exempt from VAT
CST & VAT : U.P. VAT : Where assessee in terms of contract executed between him and Pathya Pustak Adhikari had printed title cover of Text Books to be used for Class I to VIII and supplied same to authorised publishers as per directions of above Adhikari, title cover formed part of Pathya Pustak and would not be liable to tax
S Korea Appeals To Wto Over Us Duties On Steel Pipe Imports
The South Korean government said on Monday it has lodged an appeal with the World Trade Organisation (WTO) against a US move to slap anti-dumping duties on imports of steel pipes from the Asian nation.
South Korea's trade ministry said in a statement that the high US tariffs on Korean steel pipes - over US$100 million (S$132 million) annually - put them at a price disadvantage compared with imports from India and other countries.
A ministry official said the appeal has sought a withdrawal of the duties.
The US International Trade Commission ruled in August that "oil country tubular goods" (OCTG) imports from South Korea, India, Taiwan, Turkey, Ukraine and Vietnam would be subject to duties.
Steel pipes are high-margin products used in the energy sector and have been a bright spot in the sluggish steel industry, benefiting from a boom in the US shale oil and gas industry.
"We believe that the US commerce department potentially violated WTO rules when it investigated the anti-dumping case, including calculating dumping margins," the South Korean trade ministry statement said.
"If our government wins the case, the US has the obligation to correct its action to levy anti-dumping duties."
US steel companies had lodged a complaint against cheap imports in 2013, saying OCTG imports sold cheaply using government subsidies had harmed their business, dragged prices down and triggered job cuts.
The US commerce department, which determines whether dumping exists, said in July that imports from South Korea's Hyundai Hysco would be subject to duties of 15.75 per cent, those from Nexteel to 9.89 per cent, and all other South Korean producers including Seah Steel Corp and Husteel will have a duty of 12.82 per cent.
South Korea's OCTG exports to the United States were worth US$818 million in 2013, more than the combined imports of the other countries involved in the case.
South Korea was hit with the second-highest duties after Vietnam, which attracted duties in the range of 24.22 per cent-111.47 per cent. India steel pipe imports faced tariffs of 2.05 per cent to 9.91 per cent.
Despite the appeal to the WTO, the United States and South Korea can still engage in negotiations to settle the dispute. If that does not work, South Korea can ask for the establishment of a WTO panel to review the matter.
Source:- news.asiaone.com
India’S Cashew Nut Exporters Eye Emerging China Market
India’s cashew nut exporters are facing a tough time due to multiple factors that include higher input costs, shrinking sources and trade barriers in exporting to China.
India is the world’s largest producer of cashew nuts and is known as a source of good quality cashew nuts. It was also the top exporter, but has now been replaced by Vietnam, which is keen to increase its cashew nut exports from the current $2 billion (around Rs.12,500 crore).
Despite various incentives provided to cashew nut exporters in India, exports have remained low in the last few years. According to official sources, India’s cashew nut exports stood at around Rs.5,062 crore in FY2012-13, but it declined by around 20% to about Rs. 4,046 crore in FY2013-14.
While, production has grown slightly in India, demand has risen significantly due to higher income in India. Exporters say it is preferable to sell in the domestic market because the realisation is quick and assured.
As such there is a shortage of cashewnut for mills, and India’s imports, mostly from African countries, have remained steady in the recent years at around Rs.4,500 to Rs.5,500 crore per year. However, countries in Africa are planning value-addition and are eyeing direct exports of cashew nuts.
Meanwhile, input costs are increasing mainly due to increasing wages in Kerala, a prominent cashew nut exporting state in India. Earlier this month, the Kerala government decided to hike labour wages by around 35% for cashew nut labourers, a move that is expected to hurt exports in the coming months.
S. Sankaranarayanan of Swathy Enterprises, a prominent cashew nut exporter from Kerala, told The Dollar Business that cashew kernels exports was dominated by India, but cashew exports from Vietnam and Brazil has grown steadily with the help of increasing mechanisation. “Exporters in Vietnam offer cashew nuts at a competitive price compared to India due to lower wages, lower power charges and better trade policies.”
He added that the while it is good to see that the government is providing support for modernisation and mechanisation of cashewnut processing, it must ensure the welfare of labourers because the sector is a labour intensive one with over 95% comprising women.
Under such circumstances, increasing the acreage under cashew is needed to keep India at the top. However, tapping growing markets is also required. Industry sources say that China is perhaps the most promising market now and imported close to Rs. 2,000 crore from Vietnam.
However, Indians are unable to tap into the market due to trade barriers placed by China. According to Indian exporters, Indian cashew is of good quality and Chinese importers are interested to buy cashew from India as well, but import duty of around 5% diverts them to Vietnam.
Some Indian cashew exporting companies are increasing their presence in Vietnam in order to continue operations and to remain in the export market.
Source:- thedollarbusiness.com
Russian Crisis Hits India's Guar Gum Exporters Hard
The ongoing crisis in Russia has hit India’s guar gum exporters hard. Orders from Russia have declined at least by 30% in the October–December quarter which, traders believe, would be difficult to overcome in near future.
“While depreciating rouble has hit order flow, falling crude oil prices have also hit demand of guar gum. We estimate at least 30% decline in exports in the second quarter of the current financial year as the fall, which started in October would continue through year end and beyond,” said Bheru Jain, partner with Rajasthan Gum Pvt Ltd. one of India’s largest guar gum exporters to Russia. Most of the guar demand is driven by the petroleum industry.
Guar gum tops the list in agri-commodities' exports to Russia with an annual shipment of around $55 million, a third of overall exports to the country facing economic sanctions from the western world.
Exporters of other agri commodities also face similar problems. “We estimate a steep decline in overall grapes exports to Russia. But we will recover the loss through increased exports to other countries being our overall quantity of agri exports very small,” said Ashok Sharma, Chief Executive, Mahindra and Mahindra (Agri Division).
Russia imported fresh grapes worth $38.28 million in 2013-14, constituting the second largest in the list of agri commodities shipment from India.
Source:- business-standard.com
AO had to provide materials relied upon by him to assessee and consider explanation of assessee ther
CST & VAT: Orissa VAT : A dealer is entitled to be supplied with materials intended to be used against him in assessment proceeding and his explanation with regard to those materials is bound to be considered by Assessing Officer in assessment order
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