S. 194C TDS does not apply to contract manufacturing agreements The assessee, a manufacturer of pharmaceutical products, entered into agreements with various manufacturers who manufactured the said items according to the specifications provided by the assessee. The AO held that the transaction between the assessee and the manufacturer was in the nature of a “works contract” and fell within the purview of s. 194C and that the assessee ought to have deducted TDS thereon. The assessee was held to be in default and liable to pay the tax and interest u/s 201(1) & 201(1A). On appeal by the assessee, the Tribunal held that the transaction was one of sale simplicitor and was not in the nature of a work contract and that the assessee was not liable to deduct TDS u/s 194C. The department’s appeal to the High Court was dismissed by following Reebok India 306 ITR 124 (Del). On appeal by the department to the Supreme Court, HELD dismissing the SLP: |
Wednesday 12 June 2013
CIT vs. Silver Oak Laboratories P. Ltd (Supreme Court)
AO to record satisfaction under sec. 153C even if he has jurisdiction to assess both other person an
Sec. 80-IA relief denied as parent scheme, under which application was made, was not operative
After sanction of amalgamation, any suit or appeal pending against transferor would continue against
Tax-free bonds may be your best bet to gain from softer interest rates
Tax-free bonds have always been a favourite with investors. Now, there is an even bigger reason for investors to lap them up. The bonds of PFC, REC, Hudco and NHAI, all issued in the first quarter of 2012, have increased in value by 5-15 per cent as rate cut hopes drive up prices. The 15-year 8.3 per cent NHAI - N2 bond (face value of Rs 1,000 and interest paid annually), issued in January 2012, is quoting at Rs 1,170, a gain of 10.8 per cent in one year, while the 15-year 8.12 per cent REC bond has moved up from Rs 1,010 to Rs 1,175 in the same period. Though yields have fallen by 100-110 basis points (prices and yields move in opposite directions), experts are advising investors to stay invested and even buy some more as inflation slows and the interest rate environment becomes more benign. The calculation works this way. If inflation moves down and interest rates also move downward by another 50 basis points, the 10-year bond could see a capital appreciation of 2.5-3.0 per cent, while a 15-year bond could appreciate by another 4-5 per cent. "Investors should hold on to them," says Deepak Punjwani, head (debt markets), GEPL Capital. Investors with an appetite for tax-free bonds could even look to buy these from the secondary markets, he adds. Existing tax-free bonds are giving a yield of 6.9-7.19 per cent. Given the soft interest rate environment, new issuances could be at lower yields. "Investors with an appetite for tax-free bonds can consider buying these from the secondary markets," says Ajay Financial experts are betting that lower inflation will push up bond prices. The declining price of food items, including fruits and vegetables, pulled down inflation to a three-and-ahalf year low of 4.89 per cent in April compared with 5.96 per cent in March 7.50 per cent in April 2012. "The central bank may cut rates by another 25 basis points by August or September," says Mahendra Kumar Jajoo, executive director and chief investment officer, Pramerica Mutual Fund. An interest rate cut could see bond prices move up. Take the case of 8.2 per cent Hudco - N2 option with a tenure of 15 years. The bond trades at Rs 1,110, giving a yield of 7.16 per cent. "For every dip in interest rates by 100 basis points, an investor could get a capital appreciation of 75-100 paise," says Deepak Punjwani. Those with an appetite for tax-free bonds could look at buying these from the secondary market as these are liquid and easily available. Tax-free bonds of NHAI, PFC, REC, IRFC and Hudco trade in the secondary market with a yield of 6.90 and 7.19 per cent. For example, the 8.02 per cent PFC bond maturing in 2022, trades at Rs 1,124, giving a yield of 7.03 per cent. So, while a 10-year bank fixed deposit from the State Bank of India gives 8.75 per cent, the effective after tax return for an investor in the high tax bracket would be 6.05 per cent. |
Assessee can’t blame computer programme for stock discrepancy unless he proves it; sec. 69B addition
Import Of Long Staple Cotton Continues
12-Jun-2013
While export of cotton is rising, import of long staple cotton is continuing, despite high import cost due to rupee depreciation.
The landed cost of extra long staple at Indian ports is Rs 66,275 a candy (365 kg), but some mills are insisting on cotton yarn produced from US and Egyptian cotton, as it is of better variety. South Indian mills find it more viable to import cotton from Africa, as it is cheaper for them to import than have cotton transported from Gujarat or Maharashtra. The contamination level is lower in imported cotton.
"Indian mills are expected to import another eight to 10 lakh bales this cotton year, as it is cheaper for them to import cotton," said Shirish Bhai Shah, a Mumbai-based trader.
Till the end of the current cotton year, another 800,000 to one million bales are likely to be imported. So far, 1.2 million bales of cotton have already been imported. "Southern mills prefer importing cotton, as the landed cost of African cotton is cheaper than buying cotton from India itself," said Rahul Kotecha, a Coimbatore-based cotton indenting agent. The current price of cotton in the Indian market is around Rs 11,107 a quintal, while cotton imported from Africa costs around Rs 10,777 a quintal.
Source:-www.business-standard.com
Gold Imports Remain High Despite Positive Real Rates
Gold imports and real policy rates broadly share an inverse relationship (see chart). In the past, when real policy rates became positive, bank deposit rates became more attractive and investors parked their money in banks, reducing the lure of gold. But things seem to be different this time around, because gold imports as a percentage of the gross domestic product (GDP) have not fallen, even though real rates have ticked above zero.
One reason could be that consumer price inflation remains high. Consumer price inflation was slightly lower at 9.31% for May, suggesting that lower input costs are not being passed on to the consumers though growth is weak, thus keeping inflationary expectations high.
Also, monetary transmission of interest rates has been slow. The Reserve Bank of India (RBI) has cut rates by 125 basis points in the past year. However, banks have cut their base rate by only 30-40 basis points. One basis point is 0.01%.
It is not surprising that even credit growth has remained sluggish at 14.6%, as of 17 March. To buttress credit growth, banks may bring down their deposit rates once liquidity eases and RBI cuts interest rates further. But the central bank must ensure that real interest rates remain high, otherwise a rate cut may further buoy demand for the yellow metal.
photo
Another factor spurring higher gold imports recently is prices. Gold prices in rupees have corrected 17% from a high of Rs.32,460 per 10 gram to Rs.27,731 as of Wednesday. Kishore Narne, analyst at Motilal Oswal Securities Ltd, said that after 10-12 years they were seeing a major correction in gold prices and a lot of people who had postponed their purchases are buying the precious metal now.
There is another reason for high gold imports. Analysts say that businessmen and wealthy individuals, who were parking a lot of unaccounted-for money in real estate, are also moving to gold. The real estate sector is in trouble and inventory is high. Real estate as an investment avenue is losing its sparkle. The only option for investors is gold, said an economist who did not want to be named.
After strong demand for gold in April and May, gold imports may decline because of the hike in import duty and tightening of regulations by RBI. But as the chart shows, the key factors are high real rates on deposits and the direction of gold prices.
Source:-www.livemint.com
Shilling Slips As Oil Importers Push Up Dollar Demand
12-Jun-2013
The shilling weakened yesterday on the back of oil importers buying dollars to pay for their supplies, but traders said the local currency could recover on tea exporters' inflows.
Commercial banks quoted the shilling at 85.00/20 per dollar, weaker than Monday's close of 84.85/85.05. "The marginal decline was mainly attributed to demand from the energy sector as various bought dollars," said Bank of Africa in a daily note. "Slow demand during the mid-month cycle coupled with tea dollar inflows during mid-week, the shilling should remain supported and could likely dip back below the 85.00 mark towards end of this week."
Tea is Kenya's leading foreign currency earner and is sold in the port city of Mombasa every Monday and Tuesday. Exporters typically then convert their earnings into shillings to pay farmers and cover operational expenses.
The shilling has gained 1.2 per cent so far this year. Some traders, however, predict that the shilling could depreciate gradually in coming months on the back of a widening current account deficit. Kenya's current account deficit stands at above 12 per cent of GDP, driven by increased local demand for imports, having stood above 10 percent since 2011. A Reuters poll of eight analysts and traders gave a median forecast of 88.00 shillings per dollar by the end of this year.
"The appreciation risk to our forecasts is weaker commodity prices, which would lower Kenya's import costs, narrow the large current account deficit and limit shilling weakness," said Yvonne Mhango, Sub-Saharan Africa Economist at Renaissance Capital. "This would counter the depreciation risk of loose monetary policy," referring to the 950 basis points of cuts to the central bank's key interest rate since July 2012 to 8.50 per cent.
Source:-www.the-star.co.ke
Sales Tax Exemption On Tea Import Sought
Thursday, June 13, 2013 - Karachi—Tea traders are learnt to have urged the government to exempt sales tax on the import of black tea in the new budget to curb the commodity’s smuggling. Pakistan Tea Association (PTA) submitted a set of proposals to the government for incorporation in the new budget document, which proposed to the federal government to enforce a quantitative restriction on the import of tea via Afghan Transit Trade.
They insisted that 15,000 ton of ‘Green and Black Tea’ was being imported through Afghan Transit Trade (ATT), saying that green tea was the foremost beverage served in Afghanistan. “Therefore, a quantitative restriction will be more than sufficient for them”. Members of the tea association also advised the federal finance minister to levy and collect the same amount of CD/ST/IT from Afghan importers at entry point in Karachi and passing it on to Afghan government.
“This practice is in vogue in various landlocked countries.” In a letter sent to the prime minister, federal finance minister and FBR, tea traders called for declaring tea a zero-rated item, freeing it from the Sales Tax regime for at least a year to discourage smuggling and protect government revenue. The letter said that as much as 240,000 tons of tea was consumed in Pakistan, more than half of which was smuggled into the country via the Afghan Transit Trade. This practice, they said, was being encouraged because of “poor physical controls by customs and substantial high incentive to evade import duty and Sales Tax”. Chairman of Pakistan Tea Association Hamid S Khwaja said that the outgoing government in the last budget in June last year had reduced Sales Tax from 16 percent to 5 percent, besides imposing stiffer checks and control.
Source:-pakobserver.net
'Raised Limit For Online Transaction Will Boost Exports'
With an aim to arrest the Rupee volitality, the Reserve Bank of India (RBI) has recently raised the limit for online value of per export transaction upto USD 10,000, this will boost exports through e-commerce by 30 percent, the apex exporters body, Federation of Indian Export Organisation (FIEO) Wednesday said in a press statement.
"This move will help boost India's exports through the e-commerce route to grow by over 30 percent from the current level of USD 1 billion," President, FIEO, M Rafeeque Ahmed said, while welcoming the enhancement of limit per export transaction from USD 3,000 to USD 10,000 by RBI, through the online payment gateways.
"It has now been decided to increase the value per transaction from USD 3,000 to USD 10,000 for export related remittances received through OPGSPS (Online Payment Gateway Service Providers)," a RBI notification said, reports media. And made it mandatory for units in Special Economic Zones to repatriate full value of exports within 12 months.
Ahmed added that the sectors which will benefit most are like Gems and Jewellery, Healthcare, lab and life sciences, Antiques, collectibles and toys, Maritime equipments, Handicrafts, Carpets and Furnitures.
He said that despite growing opportunities the earlier limit of USD 3000 constrained the Indian exporters from exporting necklace sets, bridal jewellery, High end gem stones, diamonds, diagnostic equipments, dental chairs, surgical operating microscopes, industrial items, spare parts, paintings, high valued carpets, furnitures etc.
"The enhanced limit will also boost lot sales of items like apparels, semi precious jewelleries etc.," he added.
However, President FIEO suggested that exports through e-Commerce should be recognized as merchandise exports so that all applicable benefits are extended to such transactions making them competitive.
Source:-www.smetimes.in
Weakening Indian Rupee May Hurt Mobile Handset Makers
I still remember when I first arrived in India in March 2009, the exchange rate was approximately 40 rupees to US$1. Fast forward four years later, now it's 58 rupees against US$1. In the short term, while this may be one of the best times for foreigners to visit India as their home currency goes a longer way, this could be the start of bad news for handset makers.
indian-rupee-handsIndian consumers could get less bang for their buck if rupee weakens further.
According to TechGig.com, the depreciation of the rupee could in fact lead to a rise in input costs for manufacturers in India. Consequently, both revenues and profit margins will be eroded, and possibly lead to price hikes, if the situation persists.
So what does this mean for the average consumer?
In the short term, nothing too drastic as leading mobile makers such as Samsung and now Nokia are currently engaged in offering free devices for zero down payment and low Equated Monthly Installments (EMI), pending approval from banks and creditors. If anything, this might be the preferred route for consumers to purchase new handsets, as prices for mid range and high end devices are comparable to those in the West.
Looking at this scenario further, it's probable that Indian brands such as Karbon, Micromax, and even Onida could end up passing price hikes on to consumers, and to begin with, these are the middle to low tier devices available in India. However, they would have a direct advantage against all the entrants from China due to import duties and tariffs.
In the long run, perhaps Indian consumers will change their love affair with mobile devices and replace them every 1 to 2 years, as required, instead of the more frequent 6 to 12 months as is the norm.
Irrespective of personal disposable income, Indian consumers love to have the latest and greatest mobile devices and will save up months just to get their hands on the latest device. Hence, the purchasing power and behavior of Indian consumers when it comes to mobile devices could potentially offset any potential losses incurred by the mobile handset makers.
In that aspect, perhaps Samsung and Nokia have the lead by offering free devices as mentioned earlier. If others follow suit, even more Indian consumers will have their hands on newer devices, thus securing both revenues and profits for the mobile handset makers.
Source:-www.zdnet.com
India Port Conditions:Kochi
12-Jun-2013
Jun 12(Reuters) - - Port conditions of Kochi as of Wednesday
Port summary:
Working Vessels 04
Waiting Vessels 01
Expected Vessels 24
Total Vessels 29
Vessels berthing today nil
Working Vessels
---------------
S.NO Vessels name Agent Cargo Arrival Berth Sail Load Unload I/E Balance
------Dates------ Tonnes/Units TEU Tonnes
**********************************************************************************************
1) Taba O Exim TimberLogs 08/06 08/06 ----- nil 1,721 nil 9,269
2) Prudent Cnehril HSD 11/06 11/06 12/06 nil 3,833 nil 11,167
3) Six Ace 12 Inter Ocean MS 12/06 12/06 ----- nil Uldg nil 25,000
4) Desh Samman Jairam Crude oil 12/06 12/06 ----- nil Uldg nil 102,567
Waiting Vessels
---------------
S.NO Vessels name Agent Cargo Load Unload I/E Arrival Date
Tonnes/Units TEU TBT
**************************************************************************************
1) Swarna Sindhu Jairam Crude oil nil 55,000 nil 12/06 ---
Expected Vessels
----------------
S.NO Vessels name Agent Cargo Load Unload I/E Expected
Tonnes/Units TEU DOA
*******************************************************************************
1) Santos Express ISS CNTR nil nil 150/150 13/06
2) Doric Pioneer Atlantic MS nil 15,000 nil 13/06
3) OEL Dubai Relay CNTR nil nil 400/430 13/06
4) Guru Prasad Pearl Bauxite nil 2,700 nil 13/06
5) Bengal Orchid GAC Methanol nil 2,000 nil 14/06
6) Caravel Pride Caravel CNTR nil nil 231/260 14/06
7) Jindal Kamakshi Sujan CNTR nil nil 150/150 14/06
8) Gas Cat Pearl Ammonia nil 8,400 nil 14/06
9) Indira Gandhi Jairam CNTR nil nil 600/800 14/06
10) Lodestar Grace GAC Methanol nil 2,000 nil 14/06
11) Jag _Prakash Atlantic MS/HSD 8000/300 nil nil 14/06
12) OEL Kutch Relay CNTR nil nil 350/350 15/06
13) Arietin Atlantic FO 35,000 nil nil 15/06
14) Darya Jaan Kinship Cement nil 16,000 nil 16/06
15) OEL Kutch Relay CNTR nil nil 350/350 17/06
16) M Avon Maersk CNTR nil nil 550/550 17/06
17) Jawaharlal Nehru Jairam Crude oil nil 55,000 nil 17/06
18) Gati Majestic Poseidon CNTR nil nil 100/0 17/06
19) Zim Europa Zim CNTR nil nil 200/150 18/06
20) PVT Eagle Atlantic Methanol nil 5,000 nil 18/06
21) King Daniel Inter Ocean CBFS nil 10,000 nil 20/06
22) OEL Dubai Relay CNTR nil nil 250/250 20/06
23) OEL Kutch Relay CNTR nil nil 250/250 21/06
24) M Avon Maersk CNTR nil nil 550/550 24/06
NOTE:-
-----
DOA:Date Of Arrival; ATF:Aviation Turbine Fuel; C.Mat:Construction Material; CU.CON.:Copper
Concentrate; DAP:Di-Ammonium Phosphate; EDC:Ethylene Dycloride; FO:Furnace Oil; HSO:High Speed
Oil; I.Sand:Industrial Sand; C.Oil:Crude oil; G.Cargo:General Cargo; P.Acid:Phosphoric Acid;
A.Nitrate:Ammonium Nitrate; I.Coal:Industrial Coal; LPG:Liquified Petroleum Gas; MOP:Muriate Of
Potash; RP:Rock Phosphate; SKO:Super Kerosene Oil; VCM:Vinyl Chloride onomer;ACN:Acrylonitrile;
ATF:Aviation Turbine Fuel; CAO:Coconut Acid Oil; CBFS:Carbon Black Feed
Stock; CPO:Crude Palm oil; CPKO:Crude Palm Kernel Oil; CPS:Crude Palm Stearin; CSBO:Crude
Soybean Oil; DAP:Di-ammoniumPhosphate; DEG:Di-Ethyle Glycol; DSBO:Degummed soybean oil;
DRSO:Degummed rapeseed; EDC:Ethylene Dycloride; HSD:High Speed Diesel; LAB:Linear Alkyl Benzene;
MGO:Marine Gas Oil MOP:Muriate of potash; PFAD:Palm fatty acid distillate; RPO:Rubberized
Processed Oil; RSBO:Refined Soybean Oil; SPKFA:Split Palm Kernel Fatty Acid; SKO:Super Kerosene
Oil; CNTR: Containers; Comp:Completed; TEU:Twenty foot Equivalent Unit; TOCOM: to Commence;
CBFS: Carbon Black Feed Stock; (B): In Bulk;(Bg): In Bags; (U): UnitsTBT: To berth today;WIND
MILL BLADES: W.M.BLADES;ANTHRASITE COAL:A.COAL; SOYABEAN MEAL:SOYBM Bleaching Powder: B
POWDER;Crude Sunflower Oil:CS OIL;CRUDE PETROLEUM OIL :C.P.OIL;CRUDE SOYABEAN OIL
:C.SB.OIL;CRUDE PALM OIL : C PALM OIL
Source:- in.reuters.com
Exporters Rejoice Currency Depreciation
12-Jun-2013
A cross section of exporters from the textile, leather and automobile components sector across Tamil Nadu have started breathing easy as the Indian currency hit a life-low of Rs 58.98 (before closing at Rs. 58.38) against dollar on Tuesday as against level of Rs 53.31 in January 2012.
Meanwhile, buyers have also started asking for a share in benefit, said the industry representatives.
Exporters from the textile hub of Tirupur, who do business based on spot rates, said that their margins are likely to improve by about 5-7% due to the rupee depreciation, though it will only be for short term. They also said that customers (buyers) have already started asking to share the benefit.
A Sakthivel, president, Tirupur Exporters Association said that the recent development will certainly help the industry here, to some extent, since almost 30% of the business is done through spot market. It may be noted, total exports from Tirupur were around Rs 12,500 crore last year. He also said that now customers are asking for price reduction or for a 50% share of the advantage. Buyers are now asking for reduction in prices or discounts.
M Rafeeque Ahmed, Chairman of Council for Leather Exports and President, Federation of Indian Export Organisations (FIEO) also agrees. He represents the industry which exports leather products worth around $5 billion from India.
He said, 30-40% of the exports is done through spot contracts. “This will be short-term benefit, but not long term for which we need a stable currency”.
Ahmed also said the rupee depreciation will also help to improve competitiveness of Made-In-India products and will control import of “unnecessary” imports since they will become costlier and in turn will improve trade deficit.
While there would be an immediate improvement in the viability and realisation of exports in the auto component industry, for which Tamil Nadu is one of the largest base in the country, one has to look at whether this is going to be a sustained depreciation or volatility, said a managing director of a company, which supplies to global and domestic OEMs both in India and abroad.
The strengthening of US dollars has resulted in currency devaluation in various other countries like Brazil, Turkey and Japan, and it is this competitive positions the country has to look at to determine whether the currency devaluation has benefited the industry of not. One also has to look at where Rupee is going to be as against US dollar over a longer period of time.
Besides, a lot of auto component industry is based on commodities and commodity prices are based on international market conditions. This would tend to show in the net impact of the currency depreciation and has to be taken into consideration to get a net picture of the impact, he added.
Source:-www.business-standard.com
Receipts for ground and technical handling charges by an airways Co. not taxable under Indo-Netherla
Middle East Has Lot Of Potential For India's Software Exports
12-Jun-2013
DUBAI: The Middle East and North Africa region has huge potential for export of India's computer software and services sector, a leading industry official has said here.
Kamal Vachani, regional director of Electronics and Computer Software Export Promotion Council of India, said Indian exporters can expand their markets with their innovation, quality and cost effectiveness.
"Because of its strategic location and the facilities Dubai can be the gateway for exports of computer software products and services to the North Africa," Vachani said.
He said the upcoming India Soft event in November in Mumbai is an opportunity for the entrepreneurs from the Middle East region to join hands with the leaders in Mobile services applications, cloud computing, big data management, BPO, e-security, Banking, Finance, Insurance, Telecommunications, Media & Entertainment, Bio Informatics, Engineering Design and others.
The Electronics and Computer Software Export Promotion Council, ESC will host around 400 IT buyers from more than 75 countries including those from the Middle East and North Africa region for business networking.
Despite global economic slowdown, India's export of Computer Software and Services during 2012-13 registered an estimated growth of 10.26 per cent over the year 2011-12.
The export of computer software and services during 2012-13 has crossed $ 75 billion from $ 68 billion in 2011-12.
Source:-economictimes.indiatimes.com
Income can’t be attributed to LO in India if its operations are confined to assisting manufacturers
Subsidy in entertainment duty to assist in construction of a multiplex theatre is a capital receipt
Mandatory filing of Form 3CEB in case of ‘Specified Domestic Transactions’, CBDT Notifies amended Ru
Doc. free return filing by trust; mandatory e-filing of audit report by entities claiming specified
RBI allows banks to offer facility of repatriation of export proceeds upto USD 10,000 per transactio
SEZ to realize and repatriate export proceeds to India within 12 months from date of export - RBI
RBI issues clarification on prohibition placed on NBFCs from becoming partners in firms
No leverage of extended period if revenue itself confused about the relevant category to levy ST
AO can’t stretch re-assessment period for his own defaults; can’t pursue matters not examined origin
Jewellery belonging to ladies isn't deemed as undisclosed income; CBDT's circular permits its exclus
RBI/2012-13/528 A. P. (DIR Series) Circular No.109 dated 11-06-2013
Reserve bank of India
A.P. (DIR Series) Circular No. 109
June 11, 2013
To
All Category – I Authorised Dealer Banks
Madam / Sir,
Processing and Settlement of Export related receipts facilitated by Online Payment Gateways – Enhancement of the value of transaction
Attention of Authorised Dealer Category 1 (AD Category – 1) banks is invited to the A.P. (DIR Series) Circular No.35 dated October 14, 2011 in terms of which AD Category I banks have been permitted to offer the facility to repatriate export related remittances by entering into standing arrangements with Online Payment Gateway Service Providers (OPGSPs) for export of goods and services for value not exceeding USD 3000 per transaction, subject to the conditions stipulated therein.
- The present instructions have been reviewed in the context of requests received for suitable enhancement of the value of the transaction from USD 3000. Accordingly, it has now been decided to increase the value per transaction from USD 3000 to USD 10,000 for export related remittances received through OPGSPS. The revised limit will come into force with immediate effect.
- All other terms and conditions issued, vide A.P. (DIR Series) Circular No.17 dated November 16, 2010 , shall remain unchanged.
- AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
- Reserve Bank has since amended the Regulations vide Notification No. FEMA.274/2013-RB dated April 26, 2013 and notified vide G.S.R.No.343(E) dated May 29, 2013.
- The directions contained in this circular have been issued under Section 10 (4) and Section 11 (1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(C.D. Srinivasan)
Chief General Manager
RBI/2012-13/528
Notification No 18 (RE-2013) / 2009-2014 dated 11-06-2013
Government of India
Ministry of Commerce & Industry
Department of Commerce
Udyog Bhawan
Notification No. 18 (RE–2013)/2009-2014
New Delhi, Dated The 11th June, 2013
Subject: Import of live-stock products - Amendment in ITC (HS) 2012, Schedule 1 (Import Policy).
S.O.(E) In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), read with paragraph 2.1 of the Foreign Trade Policy, 2009-2014, as amended from time to time, the Central Government hereby makes the following amendments in ITC (HS) 2012, Schedule 1 (Import Policy):
- The following Policy Conditions are revised /inserted in Chapter 1:
- Policy Condition 2 (b) (iii) is revised and substituted as under:
“A health certificate as per the India’s requirements issued either by the official veterinarian or by a veterinary doctor authorized to issue an export certificate by the Government of the country of origin shall be furnished at the time of custom clearance.”
- Policy Condition 2 (b) (iv) is inserted as under:
“Importer shall furnish information on the age, sex and breed of horses as well as the purpose of import with supporting documents at the time of filing application to the DGFT”.
- Policy Condition 2 (b) (iii) is revised and substituted as under:
- The following Policy Condition is inserted in Chapter 2 (Policy Condition 3); Chapter 3 (Policy Condition 3); Chapter 4 (Policy Condition 4); Chapter 5 (Policy Condition 4); Chapter 16 (Policy Condition 1); and Chapter 21 (Policy Condition 2):
“Import of all live-stock products shall be subject to a sanitary import permit to be issued by Department of Animal Husbandry, Dairying & Fisheries, Government of India, as per Section 3A of Live-stock Importation Act, 1898, as incorporated by Live Stock Importation (Amendment) Act, 2001 (Act No. 28 of 2001, 29th August, 2001), or as amended from time to time.”
- The following Policy Condition is inserted in Chapter 5 (Policy Condition 5):
“Import of Bovine Embryos shall be subject to compliance of the guidelines issued by Department of Animal Husbandry, Dairying & Fisheries. The guidelines are available at ‘www.dahd.nic.in’ under icon ‘trade’ at ‘Procedure for Import’.”
- The following Policy Condition is inserted in Chapter 23 (Policy Condition 1):
“Import of all items / products under ITC (HS) Code 2309 ‘Preparations of a kind used in Animal Feeding’ shall be subject to a sanitary import permit to be issued by Department of Animal Husbandry, Dairying & Fisheries, Government of India, as per Section 3A of Live-stock Importation Act, 1898, as incorporated by Live Stock Importation (Amendment) Act, 2001 (Act No. 28 of 2001, 29th August, 2001), or as amended from time to time.”
- The following Policy Condition is inserted in Chapter 41 (Policy Condition 2); Chapter 42 (Policy Condition 1) and Chapter 43(Policy Condition 1):
“Import of all live-stock products covered in this Chapter shall be subject to the provisions of Notification No. S.O. 794(E) dated 28.3.2008.”
2. Effect of this notification:
Requirements of Sanitary Import Permit issued by Department of Animal Husbandry, Dairying & Fisheries, GoI have been incorporated under relevant Chapters of ITC(HS), 2012.
(Anup K. Pujari)
Director General of Foreign Trade
E-mail: dgft[at]nic[dot]in
(Issued from 01/89/180/118/AM-02/PC 2(A))
Valuation loss is allowable even if stock-in-trade shown as investment in compliance with RBI guidel
Operational subsidies with direct nexus with profits of an undertaking are eligible for sec. 80-IB/8
RBI/2012-13/527 A. P. (DIR Series) Circular No.108 dated 11-06-2013
Reserve bank of India
A.P. (DIR Series) Circular No. 108
June 11, 2013
To,
All Category - I Authorised Dealer Banks
Madam / Sir,
Export of Goods and Services-Realization and Repatriation period for units in Special Economic Zones (SEZ)
Attention of Authorized Dealer banks is invited to A. P. (DIR Series) Circular No. 91 dated April 1, 2003 . In terms of provisions of Para A of the said circular, time limit for realization and repatriation of export proceeds, for the exports made by units in Special Economic Zones (SEZs), was done away with.
- It has now been decided that the units located in SEZs shall realize and repatriate, full value of goods/software/services, to India within a period of twelve months from the date of export. Any extension of time beyond the above stipulated period may be granted by Reserve Bank of India, on case to case basis.
- The above changes will be applicable with immediate effect and shall be valid for one year, subject to review.
- Necessary amendments to Notification No.FEMA.23/RB-2000 dated May 3, 2000 [Foreign Exchange Management (Export of Goods and Services) Regulations, 2000] have been issued vide Notification No.FEMA.273/2013-RB dated April 25, 2013 and notified vide G.S.R.No.342(E) dated May 29, 2013.
- AD Category - I banks may please bring the contents of this Circular to the notice of their constituents and customers concerned.
- The directions contained in this circular, have been issued under Section 10(4) and 11(1) of Foreign Exchange Management Act, 1999 (42 of 1999) and without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(C. D. Srinivasan)
Chief General Manager
RBI/2012-13/527
An order to transfer case of assessee to facilitate coordinated investigation is a valid order
Notification No 18 (RE-2013)/2009-2014 dated 11-06-2013
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Power subsidy given on actual power consumption is a trading receipt
Reassessment to tax exceeded deduction under sec. 35AB quashed
Order to transfer cases to facilitate coordinated investigation and administrative convenience is va
If AO didn’t examine the reasonableness and genuineness of exp. his order was erroneous
Car Sales In India Fall Over 12 Per Cent In May
11 June 2013
Indian automobile manufactures saw car sales decline by more than 12 per cent in May, raising the spectre of production cuts and job losses, as a slowing economy continued to affect consumer sentiment for the seventh consecutive month.
Local car sales dropped to 143,216 units in May, showing a 12.3 per cent year-on-year decline, data released by the Society of Indian Automobile Manufacturers (SIAM) showed.
This is the first time that car sales have fallen for seven months in a row since the association started compiling data 16 years ago, the data revealed.
SIAM attributes the declining trend in car sales to a variety of factors, including the overall economic slowdown, high interest rates and lack of confidence among customers of retaining income flows.
''This continuous decline is a combined factor of the overall economic situation,'' said SIAM director Vishnu Mathur, adding, ''People aren't confident of retaining their jobs.''
Also, even if these are overcome, loan rates are still high, despite the recent moderations, Mathur pointed out.
Mathur said some automakers and parts suppliers have started idling factories as they hold unsold stock and this could lead to job cuts.
''Obviously, if there is a decline in demand, there is an impact in the whole chain,'' said Mathur. ''More vulnerable are the suppliers. It has either started to happen or will happen soon if such a situation continues,'' he said.
Sales of motorcycles fell 0.7 per cent in May to 881,288 vehicles, SIAM said, while truck and bus sales were down 10.6 per cent to 55,458 vehicles.
Overall sales of passenger vehicles declined by 8.56 per cent during April-May 2013 over the same period last year.
Within passenger vehicles, sale of passenger cars and vans dropped by 11.33 per cent and 10.88 per cent, respectively, while utility vehicle sales grew marginally by 4.08 per cent during April-May 2013 compared to the same period last year.
During April-May 2013 overall automobile exports declined by (-) 8.62 per cent. Export of passenger vehicles and three wheelers grew by 7.34 per cent 26.53 per cent, respectively, while sales of commercial vehicles and two-wheelers dropped significantly by 19.62 per cent and 16.50 per cent, respectively, in April-May 2013 over April-May 2012.
The industry produced 1,737,548 vehicles in May 2013 as against 1,811,515 in May 2012, a decline of 4.08 per cent over the same month last year.
Source:-www.domain-b.com
Cheap Import, Gutka Ban May Drag Areca Prices
KOCHI: Arecanut ( supari) prices will be under pressure as Karnataka has decided to ban gutka. A jump in the import of inferior quality arecanut through Bangladesh will also hit local prices. Karnataka is the largest producer of arecanut followed by Kerala and Assam. But the fall may not be sharp as advance estimates show a drop in production for 2012-13.
Directorate of Arecanut and Spices Development data show that output has dropped 5% to 5,29,097 tonne mainly due to a 20% fall in production in Kerala where growers are increasingly turning to lucrative crops like rubber and nutmeg. "The gutka ban has made no major impact on demand but the announcement has played havoc with market sentiment, leading to a dip in prices," said Srinivasa Achar, president of All India Areca Growers Association.
In coastal Karnataka, the price of the new crop of white variety has fallen by Rs 5 to Rs 145 per kg. The market fears that cheap imports will do more harm to local prices than the ban since it continues to flood the market despite government curbs. The import duty is 108% and the minimum import price was raised recently to Rs 110 per kg from Rs 75.
"Poor quality arecanut from Indonesia is routed through Bangladesh and Nepal. The suppliers make use of concessional trade duty these countries have with India," said M Suresh Bhandary, managing director of Central Arecanut and Cocoa Marketing and Processing Co-operative based at Mangalore.
The processor has suggested that the Central Food Technological Research Institute be given the task of checking import quality. According to Homey Cherian, director at Directorate of Arecanut and Spices Development, total arecanut import during April-December 2012 reached 60,590 tonne as against 71,512 tonne the whole year of 2011-12. The indication is that imports could reach around 80,000 tonnes for the year.
Source:-economictimes.indiatimes.com
Rbi Hikes Cap For Online Repatriation Of Export Proceeds
MUMBAI: With an aim to arrest rupee slide by boosting forex inflows, RBI today raised the limit for online repatriation of export proceeds by over three-fold to $ 10,000 and made it mandatory for units in Special Economic Zones to repatriate full value of exports within 12 months.
The announcements come at a time the rupee has touched life time low of 58.98 against the US dollar. It has depreciated by 3.5 per cent against dollar in the last two days and by over 8 percent since April 30.
"...it has now been decided to increase the value per transaction from $ 3,000 to $ 10,000 for export related remittances received through OPGSPS (Online Payment Gateway Service Providers)," a RBI notification said.
Currently banks can offer facility to repatriate export related remittances through OPGSPs for export of goods and services for value not exceeding $ 3,000 per transaction.
In a separate instruction, the RBI asked the units in SEZs to repatriate proceeds of their exports within 12 months of the outbound shipments.
"It has now been decided that the units located in SEZs shall realize and repatriate, full value of goods/software/ services, to India within a period of twelve months from the date of export," the Reserve Bank said in a notification.
Earlier, there was no time limit for realisation of exports made by units in SEZs
The instructions have come into force with immediate effect.
Exports in April stood at $ 24.16 billion (Rs 1.31 lakh crore) as against $ 23.7 billion in same month of 2012.
India's total export in 20012-13 had totalled $ 300.6 billion (Rs 1635261.02 crore), of which the SEZs accounted for Rs 4.76 lakh crore.
So far, 166 zones are operational. SEZs contributed about 30 per cent to the country's overall exports. Andhra Pradesh has maximum number of operational special economic zones (38), followed by Tamil Nadu, Karnataka and Maharashtra
Source:-economictimes.indiatimes.com
Fish Oil Export Scam Busted, Two Held
The Visakhapatnam police on Tuesday busted a scam involving collection of deposits totalling Rs. 16 crore with the promise of high returns through the ‘export’ of oil extracted from fish.
The scandal involved collection of deposits, mostly from people belonging to Karimnagar and nearby areas, through a city-based firm. The city police arrested the kingpin behind the racket, N. Vamsi Krishna Reddy, and one of his associates, Pidakala Benarji. On receipt of complaints by the Karimnagar police, the Two Town police here conducted inquiries into fictitious firms, including Visakha Fisheries Pvt. Ltd, which had its office at Daba Gardens and caught Vamsi and Benarji.
Police said the main accused, an MSc and B.Ed graduate who founded Sri Sai Vidya Niketan in Karimnagar in 2001 and later forayed into the rice business, and Benarji, who worked as a teacher with him for sometime, hatched a conspiracy to dupe gullible investors after they went bankrupt.
Evasion of interest
Of the Rs.16 crore collected, they returned the principal amount of Rs.5 crore to some depositors and later evaded payment of interest to them on some plea or the other since three months. ACP (East) M.N. Mahesh and CI Mallikarjuna Rao told reporters that they suspect the involvement of some more people in the scam.
While the main accused belongs to Kothirampuram in Karimnagar, Benarji hails from Kovvur.
Source:-www.thehindu.com