No ad hoc disallowance under sec. 14A if no exp. were incurred by assessee to earn exempt income

IT : If no expenditure is incurred in relation to exempt income, no disallowance can be made under section 14A

HC directs ITAT to condone the delay as assessee repeatedly attempted to file appeal which caused su

IT : Where assessee had been pursuing one remedy or other by filing appeals as per legal advice tendered to him, such an event would constitute sufficient cause for condoning delay

CIT can’t exercise revisionary power if order isn’t found to be prejudicial to revenue

IT: Where condition of assessment order being prejudicial to interest of revenue was missing, Commissioner could not revise order by invoking section 263, merely on ground that Assessing Officer had not made proper enquiry

Penalty not to be imposed if credit reversed by assessee was admissible

ST : When there are decisions taking a view that services for maintenance of windmill are eligible for input service credit, no penalty could be levied even if assessee had reversed such credit and such reversal had attained finality

Concealment penalty upheld as return was not filed by assessee despite having taxable income

IT : Where no valid return of income was filed by assessee within time limit provided under section 139 or section 142(1) despite having taxable income, penalty under section 271(1)(c) was leviable

Interest paid on borrowings undertaken for expansion of existing plant is an allowable exp.

IT: Interest on amount borrowed for expansion of business for an existing plant is allowable under section 36(1)(iii)

Cenvat credit taken on goods used for private purposes needs to be reversed

ST/ECJ : In case of private use of goods in respect of which input credit was taken, department may seek reversal of credit

Explanation 3 to sec. 43(1) isn't applicable if transaction to buy asset is genuine and not among re

IT : Where seller of wind mills was not related to assessee and purchase price shown by assessee in relation to such wind mills was genuine, Explanation 3 to section 43(1) could not be invoked

Explanations to sec. 65(105)(zzq) and 65(105)(zzzh) are constitutionally valid

ST : Section 65(105)(zzzzu) Explanations inserted below Section 65(105)(zzq) and 65(105)(zzzh) are constitutionally valid, as they do not amount to tax on 'land or buildings' and service tax is levied on construction services only

Royalty paid to AEs couldn’t be disallowed if assessee was not acting as its contract manufacturer

IT/ILT : Payment of royalty to associated enterprise for use of technical know-how for manufacturing goods on own account by assessee cannot be disallowed taking arm's length price as nil

Order without opportunity of personal hearing isn’t valid even if assessee is allowed to file writte

IT : Order passed without giving an opportunity of being heard to assessee is invalid irrespective of the fact that assessee was given an opportunity of filing written submissions

No TDS under sec. 194H on brokerage paid by an agent to sub-brokers for dealing in securities or mut

IT: Sub-brokerage paid by an agent to sub-agents for services rendered in connection with securities/mutual funds, is outside purview of section 194H

Gopa Oppose Registration With Iopepc For Exports

23-May-2013

Alleging certain misguidance from the Indian Oilseed and Produce Export Promotion Council (IOPEPC), the Gujarat Oilseeds Processors Association (GOPA) are protesting against registration with the former for groundnut exports.



The state-based oilseed processors association has claimed that IOPEPC has demanded registration of groundnut exporters and shelling units with itself, over and above the compulsory registration with the Agricultural and Processed Food Products Export Development Authority (APEDA).



Sometime back, APEDA made registration mandatory for peanut shelling units in order to export groundnut and groundnut products. However, according to GOPA, while registering groundnut exporters and peanut shelling units with APEDA is acceptable, doing the same with IOPEPC is not.



"IOPEPC is a trade body and it should have to work for us. However, IPOEPC has misguided us regarding peanuts export notification. Compulsory registration with IOPEPC is unacceptable. If necessary, we are ready to register with APEDA only. We don't want to deal with IOPEPC," said Mukund Shah, president of GOPA.



As per DGFT notification dated January 3, 2013, exports of groundnut have been subjected to registration with APEDA along with controlled Aflatoxin level certificate issued by APEDA recognized laboratories. On its part, IOPEPC said that it is compulsory for shelling units and exporters to register with it but according to GOPA no such thing has been mentioned in the notification.



Speaking on the allegations from GOPA, Rajesh Bheda, chairman of IOPEPC said, "By talking like this GOPA is instead misleading the industry. These allegations are wrong and whatever we are doing is for the benefit of the industry and we are ready to discuss the issue in open forum. These new rules are ultimately beneficial for the small shelling units but some are opposing it due to vested interests."



According to Bheda, the notification has made it mandatory for shelling units to register with IOPEPC. "If anyone wants to withdraw membership or cancel registration by following the false allegations, they can," Bheda added. What's more, GOPA is also opposing seeking a Hazard Analysis Critical Control Point (HACCP) certificate for peanut units. Shah said the association is instead ready to get Food Safety and Standards Authority of India (FSSAI) certificate from the Government of India. "HACCP certification is too costly as compared to FSSAI and is not viable to maintain norms to small units," said Shah.



During a recent meeting of GOPA, registered exporters have come in support of the association and ready to withdraw their registration from IOPEPC.



Meanwhile, groundnut export from India seem to have been adversely affected due to the new regulations by APEDA. The industry data showed that groundnut export from India during January and February period this year has been declined by 48 per cent.



About 50 per cent of groundnut shelling units in Gujarat have been closed since last two months after APEDA new rules, traders claimed.



According to IOPEPC data, groundnut export from India during January and February 2013 stood at 70,917 tonnes, down by 65,491 tonnes as compared to last year during same period. India had exported 136,408 tonnes of groundnut in January - February period in 2012. As per the data, total export in 2012-13 till February stood at 492,219 tonnes, which was 853,080 tonnes in 2011-12.



In the meeting GOPA has decided to meet commerce minister and ministry official and inform them that this new rules are hurting the export business of the India.

Source:-www.business-standard.com

Indian Rupee Opens Flat At 55.61 Per Dollar

The Indian rupee opened flat at 55.61 per dollar versus Thursday's close of 55.59.



Himanshu Arora, Religare said, "The dollar lost heavily against a basket of currencies with investors opting for safe haven currencies like the yen. Better than expected US economic data could add to the pressure. Profit-booking at higher levels may also weigh on the dollar versus the rupee. The range for the rupee is seen between 55.37-55.61/USD."



The euro rose to 1.28 to the dollar. The dollar index was slightly below the 84 mark.

Source:-www.moneycontrol.com

Daimler To Develop India Ops As Export Hub

CHENNAI: As part of an integrated Asia strategy, German automobile giant Daimler is developing its Indian commercial vehicle operation as an export hub. Daimler India Commercial Vehicles (DICV), its truck and bus making Indian subsidiary, will export locally assembled trucks from the conglomerate's Mitsubishi Fuso range in 15 markets in Asia and Africa like Indonesia , Thailand, Malaysia, Tanzania, Malawi, Uganda, Zimbabwe, Mozambique, Mauritius and the Seychelles.



The first export market will be Sri Lanka in June 2013, followed by Bangladesh, Zambia , Kenya and Brunei later this year. DICV launched the local production of its new product range under the Fuso brand on Thursday at its Oragadam plant, near Chennai.



Said Albert Kirchmann, head, Daimler Trucks Asia and president & CEO, Mitsubishi Fuso Truck and Bus Corporation (MFTBC): "We are developing India as an export hub under our Asia strategy. Currently 19 plants across the world produce 1,75,000 Fuso trucks sold in 150 countries. The Oragadam plant along with the Kawasaki plant in Japan will be our two global competence centers." Although the new lineup will be branded Mitsubishi Fuso in export markets, in India they will be badged Bharat Benz, Daimler's Indian brand. "There will be some product differences too - though they will be from the same platforms , the products will be market specific," said Kirchmann .





India's status as an export hub will also offer the opportunity for global sourcing of components. "We are working on it and India will become more important for parts supply globally as the first and second phase of localization kicks in," said Kirchmann.



Daimler has a range of global brands including Mitsubishi Fuso in its truck and bus stable. However, said Kirchmann, there are no plans to introduce any of those brands in India. But, he said, the Actros truck will continue to be branded Mercedes Benz. "It's a high horsepower , high payload, low volume , low localization niche product whereas our Bharat Benz range has 80-90 % local content and targets big volumes so that it can be badged differently," said Marc Llistosella , MD and CEO, DICV. The Fuso range to be manufactured at DICV's Oragadam plant will comprise five models spanning medium/heavyduty (25-49 tonne referred to as 'FJ' , 'FO' & 'FZ' ) and light/ medium-duty (9-16 tonne referred to as 'FA' & 'FI' ).



DICV's truck focus means it's not thinking buses right now. Nor will it even consider the newly introduced category of quadricycle. "Buses for now are not a part of our strategy as we are focussed on truck launches," said Llistosella . "As for quadricycles, that's not even something we're thinking about."

Source:-timesofindia.indiatimes.com

Evasion penalty under sec. 78 was not imposable if there was reasonable cause for non-payment of ST

ST : Where, in view of reasonable cause for failure to pay service tax, section 80 has been applied to set aside penalty under section 76, no penalty can be levied under section 78 as well

Time-limit under sec. 11B for claiming ST refund isn’t applicable if ST is paid under protest

ST : Time-limit of section 11B of Central Excise Act, 1944 for claiming refund doesn't apply in case service tax was disputed and was paid under protest

Pre-deposit requirement to be waived off in case of inconsistent stand of revenue to levy service-ta

ST : When there is inconsistency in stand of revenue in relation to head under which service tax was leviable, requirement of pre-deposit was to be waived

RBI/2012-13/504 A. P. (DIR Series) Circular No.106 dated 23-05-2013

RBI : Liberalised Remittance Scheme for Resident Individuals - Reporting



Click Here:http://www.eximguru.com/Notifications/liberalised-remittance-scheme-for-resident-30803.aspx

Overseas principal can set-up services for cross border money transfer to India - RBI

FEMA : Authorisation Applications from Overseas Principals for Cross Border In-Bound Money Transfer Services to India

Investments out of receipts to be disclosed in return due to be filed couldn’t be an undisclosed inc

IT : Where last date for filing of return wherein professional receipts earned by assessee could be shown had not expired, fixed deposits and Kisan Vikas Patras (KVPS) acquired out of such receipts could not be regarded as undisclosed income in course of block assessment proceedings

Cenvat credit to be reversed on capital goods used for private purposes on closure of business

ST/ECJ : In case of capital goods used for private purpose on closure of business, credit reversal is required only if credit was taken on such capital goods; further, if repair work is done thereon prior to such allocation for private use, reversal is required of goods/services used in such repair work

Mere rejection of books of account doesn't mean compulsorily additions to returned income

IT : Section 145 by itself does not deal with addition or deletion in income and, thus, merely because there is some deficiency in books of account or merely because there is rejection of books of account, it does not mean that it must necessarily lead to additions in returned income of assessee

ITAT quashed additions for cash credit as assessee proved identity and creditworthiness of her credi

IT : Where assessee proved identity of creditors, their creditworthiness and genuineness of transaction, addition on account of cash credit was rightly deleted

Hiring of buses does not amount to ‘rent-a-cab’ service

ST : Hiring of buses to State Road Transport Corporation for being plied as public transport system does not, prima facie, amount to 'rent-a-cab' services

‘Processing fees’ and ‘penal interest’ received by financial corp. are eligible for sec. 36(1)(viii)

IT : Where assessee, engaged in providing long-term finance, received certain amount as processing fee and penal interest for repayment of loan before agreed period, those charges being incidental to earning of interest income, were to be included in income eligible for deduction under section 36(1)(viii)

Profit accruing to FIIs from hedging against forex fluctuation is taxable as capital gain

IT/ILT: Where assessee-company, a resident of Spain and registered as FII with SEBI, earned profit on account of its transaction with foreign exchange, such profit/loss had to be considered as income from capital gains

Sec. 54F benefit allowable for sum invested from other sources and actual consideration if sec. 50C

IT : Where capital gain is assessed on notional basis under section 50C, whatever amount is invested in new residential house within prescribed period under section 54F, entire amount so invested would get benefit of deduction irrespective of fact that funds from other sources are also utilized for new residential house

Gold Import Tariff Value Cut Further

22-May-2013

Taking cognizance of the high volatility in gold prices with a downward bias in global markets, the government, on Wednesday, reduced the import tariff value of the yellow metal to $440 per 10 grams from $ 466 per 10 grams fixed a week ago.



For silver, however, the import tariff value, which is the base price on which customs duty is determined to prevent under-invoicing, has been kept unchanged at $761 a kg.



According to the notification issued in this regard by the Central Board of Excise and Customs, the tariff value on import of different varieties of vegetable oils, brass scrap and poppy seed also remains unchanged.

Source:-www.thehindu.com

Cotton Sowing To Drop 10-15%

22-May-2013

Cotton farmers are slowly losing their fancy towards the fibre crop. Lower yield and reduced realisation are likely to see them shift to other crops this kharif season, which starts from next month, leading to a 10-15 per cent drop in Cotton sowing.



According to projections given by the Textile Commissioner of India, the area under cotton cultivation is likely to be around 11.77 million hectares in 2012-13. In 2011-12, the area under cotton cultivation was reported at 12.17 million hectares.



"This year, cotton cultivation will drop and more farmers will shift to other crops like groundnut. There are issues of less prices and falling yield. There should not be surprise if cotton area falls this year," said N M Sharma, managing director, Gujarat State Co-operative Cotton Federation Ltd.



According to Sharma, farmers received lesser prices than last year. Also, the weather played spoilsport last year, pushing the cotton sowing down.



"Farmers are seeking cotton prices to be around Rs 1,000 per 20 kg, whereas in the current market situation, the prices hover around Rs 720 to Rs 780 per 20 kg for raw cotton. In such a situation, cotton sowing will drop in the range of 10-15 per cent," noted Ahmedabad-based cotton expert Arun Dalal.



In Andhra Pradesh, the price of kapas (unginned cotton) had already fallen below the minimum support price (MSP) in April, but rebounded due to Cotton Corporation of India (CCI) buying cotton.



The MSP of kapas in Andhra Pradesh is currently Rs 3,900 per quintal and 20 days ago, the price was Rs 400 to Rs 500 below MSP.



Exports are also weak, which is further putting downward pressure on the prices, discouraging farmers from taking up the crop next season. Insiders maintained that Chinese buying has stopped and no further export of cotton is taking place.



"There was sufficient demand from mills last year, which controlled a possibility of oversupply in the market. However, now, mills' demand is also weak due to global economic conditions," said Dalal.



Added Piyush Kotecha, a Gujarat-based indenting agent: "Farmers have no option but to sell their produce below the MSP prices as they need the money to buy cotton seed for the upcoming kharif season. CCI and Nafed (National Agricultural Cooperative Marketing Fedration of India) have intervened in Maharashtra and Andhra Pradesh, and have managed to increase the price of kapas, but have not done so in Gujarat and thus farmers here have sold their produce below the MSP."



Cotton importers in China (which accounts for about 60 per cent of India's cotton exports) have been told that if they import, they would have to buy three times that amount from the Chinese government agency. This has hit India's cotton exports to the neighbouring country.



Bangladesh, the second largest importer of Indian cotton, has also cut down its cotton imports, besides Pakistan, which turned to Australia and African countries for cheaper cotton.



Indian mills are also not buying cotton and have imported cotton as it is cheaper compared to domestically-sourced cotton. "The overall scenario is very bleak for cotton at the moment on the domestic market as well as international market," said Rahul Kotecha, a Coimbatore-based indenting agent.



This year, the Cotton Advisory Board has pegged cotton exports at seven million bales, which the industry earlier thought was unachievable due to weak demand for the commodity from major buyers.

Source:-www.business-standard.com

Stc Gets Highest Bid At $304.5Per Tonne In Wheat Export Tender

22-May-2013

NEW DELHI: India's State Trading Corp has received the highest bid at $304.5 per tonne in its wheat export tender offering 60,000 tonnes on the west coast, trade sources said on Wednesday.



In a separate tender to export 40,000 tonnes of wheat from the east coast, STC received the highest bid at $302 per tonne, sources said.



STC issued the tenders earlier this month offering 100,000 tonnes of wheat from government warehouses for shipments by June 25.



Government-backed traders MMTCBSE -4.71 %, STC and PEC have been floating export tenders to ship out wheat from overflowing government warehouses since July 2012.



In the last tender on April 17, STC received the highest bid at $304 per tonne.



Source:-economictimes.indiatimes.com

Rupee Hits New 6-Month Low Of 55.86 To Dollar

The rupee is at a new six-month low on global dollar strength after Bernanke testimony, says a dealer. The rupee is at 55.77/78 after falling to 55.86, last closed at 55.46/47.



The dollar-rupee pair has a resistance at 55.89, a break of which may open the way for 56.



Dealers say a large private refiner seen selling dollar in early session.



Most emerging Asian currencies on Thursday fell as a weak China manufacturing survey increased concerns over the world's No.2 economy, adding to pressure on regional units generated by prospects of reduced inflows if the Federal Reserve scales back its stimulus. See



Local stocks will be watched with State Bank of India and Tata Steel reporting March quarter earnings later in the day.

Source:-profit.ndtv.com

India Set To Resume Oilmeal Exports To China-Trade Body

22-May-2013

NEW DELHI: India is on course to resume oilmeal exports to China, after Beijing agreed in principle to lift a ban that it imposed last year citing traces of a hazardous chemical, an industry body chief said on Wednesday.





"China has agreed in principle to re-open the Chinese market for Indian oilmeals," said Vijay Data, president of Solvent Extractors' Association, in a statement issued to its members.



The move to re-open the Chinese market was proposed during the visit of Chinese Premier Li Kegiang earlier this week to New Delhi. This will help stem a fall in rapeseed meal exports from India, Asia's top oilmeal exporter.



India's trade ministry is drawing up the finer details to be followed for exports to China, the country's No. 2 consumer for rapeseed meal prior to the ban, Data said.



China banned Indian oilmeal imports in January last year after finding traces of malachite green in them.



He said he hoped for the exports to resume "very soon". India's oilmeal exports in 2012/13 fell 14.3 percent from a year earlier to 4.8 million tonnes, due to the ban and a drop in demand from traditional buyer Japan.



Source:-economictimes.indiatimes.com

India’S April Iran Oil Imports Drop 34.2% Vs March

NEW DELHI: India’s oil imports from Iran fell 34.2 percent in April from March, data from trade sources showed on Wednesday, bolstering the country’s case for the renewal of a waiver from US sanctions on Tehran due to expire next month.



The US has already granted fresh waivers to Japan and 10 European countries but has so far left out China and India, Iran’s biggest clients.



US and European Union sanctions aimed at choking the flow of oil money into Iran and forcing Tehran to negotiate curbing its controversial nuclear programme slashed its crude exports in half in 2012, costing it as much as $5 billion a month.



Indian imports dropped 56.5 percent to 117,300 barrels per day (bpd) in April from the year before, the first month of the new contract year, with Mangalore Refinery and Petrochemicals Ltd and Hindustan Petroleum Corp Ltd declining to make fresh purchases as problems emerged in getting insurance for handling cargoes from Iran.



Another exemption? Washington in December renewed 180-day waivers to all of Iran’s major crude buyers from sanctions targeted at financial institutions after they cut imports significantly.



India imported 46.3 percent less oil from Iran in January-April than a year ago, replacing it with shipments from Venezuela, Iraq and Oman, the data showed. The decline in India’s oil imports from Iran in in the first quarter is steeper than a 28.4 percent cut by South Korea and an increase of 11 percent by China.



Iran contributed 5.5 percent of all India’s oil imports in that period, compared with 11.2 percent a year ago. That meant it slipped to seventh place among India’s oil suppliers, down from No.3 a year ago.



India almost doubled imports from Latin America in the January-April period, with the region accounting for about a fifth of overall imports, up from around 11 percent a year ago. reuters

Source:-www.dailytimes.com.pk

Procurement of an order for clients is covered under ‘Business Auxiliary Services’

ST : Procurement of purchase orders for various products of client, maintenance of effective follow-up and undertaking of any promotional/ marketing activities in respect of client's brands, prima facie, amounts to Business Auxiliary Services

Registration of a trust was not to be denied as it was not covered in prohibition list of Sec. 13

IT : Where trust deed of assessee-trust did not contain a provision that it was established for benefit of any particular religious community as prohibited under section 13(1)(b), its application seeking registration under section 12AA was to be allowed

CUSTOMS INSTRUCTION dated 21-05-2013

Indian Customs : Regarding issues related to transmission of trade data



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No reassessment could be initiated after 4 years merely on basis of retro amendment to law

IT : Where there was no failure on part of assessee to disclose all material facts necessary for assessment, reassessment proceedings could not be initiated after expiry of four years from relevant assessment year merely on ground that in view of retrospective amendment to provisions of section 80-IA, assessee was not entitled to deduction granted under said section earlier

Customs Notification No 55/2013 (NT) dated 21-05-2013

Indian Customs : Amends Notification No. 36/2001-Customs (N.T.), dated the 3rd August, 2001



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Gain on sale of shares is subject to capital gain only if these shares aren’t tradable like other tr

IT : Where assessee-company purchased shares of a private limited company from funds received from its holding company and after some time it had sold said shares to its holding company, profit arising from sale of shares had to be taxed under head capital gains

Court has no power u/s 392(1)(b) to modify the basic fabric of the sanctioned scheme

CL : The modifications which the Court can carry out are only to be for the proper working of the Scheme. The Court cannot change the basic fabric of the Scheme. A modification for the proper working of the Scheme is distinct from a modification of the Scheme itself . What is permissible under Section 392(1)(b) is the former and not the latter.

Actual date of purchase of shares and not its date of dematerialization is relevant to reckon period

IT : Merely because shares purchased by assessee were transferred to his demat account on a later date, date of transfer to demat account could not be taken as date of purchase

Repair or restoration of goods belonging to customer amounts to 'job-work services'

ST/ECJ : Repairs, even if radical, which simply restore customer's article to its original function without resulting in creation of a new article do not amount to production of goods; they amount of provision of services

Clarification on revised requirements for stock exchanges and listed Cos. undertaking schemes of arr

SEBI : Scheme of Arrangement under the Companies Act, 1956 - Revised Requirements for the Stock Exchanges and Listed Companies - Clarification

SEBI provides for mandatory audit of algorithmic trading system after every six months

SEBI : Broad Guidelines On Algorithmic Trading

Activity of galvanization of MS pipes isn't manufacture to claim sec. 80-I benefit

IT : Business of galvanizing MS pipes does not amount to manufacture and thus, is not entitled for benefits of section 80-I

Payment of royalty to get exclusive manufacturing rights is allowable as revenue exp.

IT : Where payment of royalty was in nature of expenditure incurred for carrying on business with available know-how, same was allowable as revenue expenditure

International transactions are at ALP if sharing of profits in equal ratio by assessee with its AE i

IT/ILT : Where assessee, a logistics service provider, undertook international transactions with its AEs and it had earned/paid revenue from /to its AEs in same proportion, transactions had been recorded at arm's length price and there was no justification for making adjustment in ALP worked out by assessee

Obligation to frame Code of Conduct to prevent ‘insider trading’ is sacrosanct; its violation invite

SEBI : Requirement of framing a Code of Conduct for prevention of insider trading by companies is a mandate of law and nobody can be allowed to violate same

Sum paid to the other party to the agreement even on its refusal to honour the agreement is not an a

IT : Where second party, by its own, terminated processing agreement with assessee without giving timely notice to assessee to arrange alternate processor, payment made by assessee to said party for taking some time could not be said as business expenditure

[Indian Custom Non-Tariff Notification] : Amends Notification No. 36/2001-Customs (N.T.), dated the 3rd August, 2001

North East Company Begins Cement Export

21-May-2013

GUWAHATI: Star Cement made NE proud on Sunday as it dispatched its first full rail rake from its greenfield cement plant at Sonapur village, on the outskirts of Guwahati, to other parts of the country.



Till recently, manufacturers from other parts of the country used to meet the region's cement requirements. However, the region has now been able to produce excess cement to supply it to the rest of the country.



The first line dispatch of railway rake loaded with Star Cement was flagged off on Sunday.



Jyoti Swaroop Agarwal, president (sales & marketing), Star Cement, said, "Eastern India's demand growth is currently double the national average. The projected compound annual cement demand growth rate for the region is around 13 per cent for the next few years. For the country as a whole, it is under 7 per cent".



He added that the company is well placed to tap into economic opportunities in the eastern market which has witnessed a spurt in cement demand in the last few years.



Entering into new territories like North-Bengal, Sikkim and Bihar, it has become a true pan-Eastern India company, first from NE to earn this tag. Last year, Star Cement had started exporting clinkers to Bangladesh.

Source:-timesofindia.indiatimes.com

India: Poultry Sector Seeks Ban On Maize Export

21-May-2013

The poultry industry has sought a ban on the export of maize, a key raw material of the poultry feed, for stabilizing chicken and egg prices amid fresh price hike of different feeds in the international markets, according to Financial Express.

India: Poultry sector seeks ban on maize export



Industry owners said the poultry feed prices will go up further affecting the local eggs and meat supply if the government does not check maize export amid production fall in the global markets.



Breeders Association of Bangladesh (BAB) president Moshiur Rahman said a group of vested local traders is pushing the government to permit maize export when only fifty percent of our demand is being met by the locally-produced maize.



We need to import the rest 50% of maize from the international market to produce feed for the poultry birds, he added.



The present demand of maize in poultry industry is nearly 1.6 million metric tonnes per year. In last fiscal 2011-12, a total of 1.6 million tonnes of maize was produced in Bangladesh, Department of Agricultural Extension data showed.



The government should ensure smooth marketing facilities and check political unrest to ensure better prices for the maize growers instead of allowing export, Mr Moshiur said.



Maize is an essential raw material for producing poultry feeds in which nearly sixty percent of feed ingredient is available, millers said.



Feed Industry Association Bangladesh (FIAB) President Ihtehsham B. Shahjahan said prices of poultry feeds have already increased in last few months in the international markets.



If the government does not ban export of locally-produced maize, the poultry feed production cost will rise further hitting the poultry farmers in chicken and egg production, he said.



Managing Director of Aftab Bahumukhi Farms, Fazle Rahim Khan Shahriar said since major supplier India has started to control maize export due to its production fall for draughts and floods, there is possibility of further price hike of the poultry feed.



Mr Ihtehsham said according to law, maize export is prohibited unless the price is above US$600 per tonne. "However, ignoring the existing law, maize has been exported to Nepal in recent times at US$190 per tonne."



Bangladeshi maize is also being smuggled to neighboring India due to its high grade, he said seeking check on the smuggling to the neighbouring country.



Mr Shahriar, also the FIAB general secretary, said the poultry feed price of soya has been increased to Tk 55-60 per kilogram from Tk 33-35 per kg, meat & bone meal to Tk 50-55 from Tk 32 per kg, mustered oilcake to Tk 30-33 per kg from Tk 18 per kg, maize to Tk 23-24 from Tk 13 per kg, rice bran to Tk 22-23 per kg from Tk 14.



"If the government does not ban the locally-produced maize export, the poultry feeds will be costlier and the meat and eggs price will be affected further," he also told the FE.



The price of egg and chicken in the Bangladesh's local market has already gone up by nearly 40 per cent over the last one and a half years affecting the low-income people.



Saidur Rahman Babu, General Secretary of BAB said that 60% of poultry farms and 70% hatcheries and breeding farms were closed due to bird flu attack in 2007-2008 period.



"Many of the farmers have been trying to revive their production. But the fresh price hike of maize and other feeds in the local and international markets have hit the struggling poultry farmers," he added.



The poultry leaders said they were trying to recover from the previous losses from the bird-flu outbreak producing more day-old chicks and eggs.



The feed manufacturers said Bangladesh is now producing high quality feed at international standards. They are using superior quality nutrients and enzymes so that protein is absorbed in feed easily.

Source:-www.worldpoultry.net

Rupee Near Six-Month Low; Continued Dollar Buying

The rupee hits a fresh near 6-month low in opening trades. The rupees falls to 55.48 after opening at 55.335, currently at 55.43/44 versus Tuesday close of 55.41/42.



Dealers say follow-on dollar buying is pushing the pair up after a late surge on Tuesday.



The chief dealer of a private bank tips 55.20-55.50 band for the session.



Dealers say the bias may remain for the pair's strength on month-end dollar demand with crucial 55.20 level taken out on Tuesday.



The Bank of Japan on Wednesday decided to keep monetary policy on hold, but one board member tried unsuccessfully to loosen the central bank's commitment to achieving its 2 percent inflation target within two years.

Source:-in.reuters.com

Deliberate non-payment of ST warrants invocation of extended period to recover ST dues

ST : Collection of amounts by mentioning same on reverse side and not paying service tax thereon amounts to mis-declaration of value and suppression of facts on part of assessee and extended period of limitation was invocable

Cec Says No To Export Of Iron Ore Pellets From Karnataka

Bangalore, May 21: The Supreme Court-appointed Central Empowered Committee (CEC) here on Tuesday ruled out any possibility of allowing export of iron ore pellets from Karnataka-based miners. The team of CEC officials led by its chairman P V Jayakrishanan held day-long discussions with Karnataka Mines and Geology Director and top forest officials, besides lease-holders owning A and B category mines, on according permission to restart mining operation in the state.



Speaking to reporters after the meeting, Federation of Indian Mineral Industries Vice Chairman Basant Poddar said the CEC told miners that there is no scope for allowing export of iron ore pellets at this stage from Karnataka. The SC had ordered suspension of iron ore exports from Karnataka in 2011. Poddar also said the CEC told that miners will not be allowed to either do mining or dump ore in overlapped area between two mines.



"The survey map fixed by the Joint Survey Team of the CEC last year will be sacrosanct and there is no scope for any further dispute," he said. However, if there is any minor overlapping in the Category C mines, such area will be exempt from mining, Poddar said. Poddar said as many as eleven mines in Category A and two mines in Category B have restarted mining operations.



"These mines can produce about 4.5 million tonnes per annum." Former Chief Minister B S Yeddyurappa had banned export of iron ore from July 26, 2010. Until the export was banned, Karnataka exported about 20 million tonnes of iron ore annually. The CEC had convened the meeting to discuss various issues including overlapping of mining leases and implementation of Reclamation and Rehabilitation (R&R) Plans, Poddar said.



The meeting was convened following the April 18 Supreme Court order allowing reopening of all Category A and B mines in Karnataka. The court had clamped a total ban on mining in 2011 following allegations of corruption and environmental damage. It had set up a CEC which studied the situation on the spot and reported to the court.

Source:-news.oneindia.in

India Leads Asian Cuts In Iran Oil Imports Ahead Of Waiver Review

NEW DELHI/SEOUL, May 21 (Reuters) - India has slashed Iranian oil imports by almost a fifth since December, the sharpest cut among Asian buyers, in a move that should increase its chances of winning a new U.S. waiver next month on sanctions targeting oil trade with Iran.



Sanctions imposed by the United States and Europe to force a halt to a controversial nuclear programme that Tehran says is for peaceful purposes saw Iran's oil exports more than halve last year, costing it $5 billion a month in lost revenue.



The sanctions have forced refiners in India, Iran's second-largest oil buyer, to reduce imports because national insurer the General Insurance Corp. of India has said that cover and losses on processing the crude would not be payable by European reinsurers.



Local insurers rely on reinsurers, who are mostly based in Europe and the United States, to share the financial burden in case of claims on equipment worth billions of dollars.



The United States in June will review the 180-day exceptions granted to Asian importers that make continuous reductions in oil purchases from Iran. Waivers allow Iranian imports without the risk of being cut off from the U.S. financial system.



Refiners want to continue using the Iranian crude many of their plants are configured to process, as changes will need lengthy testing of new grades or cause an alteration in output.



"We are hopeful that India will get a waiver again because of this forced cut in imports," said an Indian government source, who was not authorised to talk to media.



Officials in Iran's top customer China, which cut its oil imports by 3 percent from the previous waiver period, also expect to have their country's waiver renewed. South Korea has increased its Iranian imports and is sending a delegation to the United States to discuss its continued exemption from sanctions.



Waivers on U.S. sanctions have been granted twice to China, India, South Korea and other Asian buyers. Japan, another top buyer, won its third exemption during an earlier review period.



A U.S. State Department spokesman said it was too early to tell if Asian buyers would get waiver renewals next month.



Overall, December to April Iranian oil imports by China, India and South Korea were nearly unchanged at 833,000 barrels per day (bpd), compared with the previous six-month period, according to customs and trade data and a loading programme obtained by Reuters.



Daily Iranian oil imports by the three were down 15 percent from the six-month period December to May a year ago.



The biggest winners in recent months filling the supply gap left in some Asian countries by falling Iranian exports include Iraq, Libya, and Central and South American exporters.



CHINA



China imported an average 440,800 bpd of crude from Iran in the December-April period, down from 455,000 bpd in the previous six months. From a year ago, daily imports rose about 6 percent as Iranian shipments in the first quarter of 2012 fell sharply due to a contract dispute.



Beijing opposes the U.S. and European sanctions on Iran and views them as unilateral moves made outside a United Nations framework. Even so, last year China cut imports from Iran by 21 percent versus 2011 to 438,448 bpd.



For all of 2013, China may cut imports another 5-10 percent, and it expects that to be enough to retain a waiver on U.S. sanctions, said trade officials familiar with the import strategy of state refiner Sinopec.



China's imports for April were 371,500 bpd. China largest refiner Sinopec Corp processes nearly all the Iranian crude imported into the country, which is shipped in by its trading arm Unipec and state trader Zhuhai Zhenrong Corp.



INDIA



India imported 224,532 bpd from Iran in the December to April period, according to the data and information gathered by Reuters, down from 270,380 bpd it bought in the previous six months. Compared with a year ago, imports fell about 40 percent.



Its imports from Iran in April are expected to be about 123,000 bpd, according to the preliminary loading programme.



Indian insurers have said they will not cover refineries processing Iranian crude because reinsurers in Europe and the United States, who dominate the global insurance market, will not honour claims on refineries, ports or other facilities handling Iranian oil.



Two of Iran's Indian clients - Mangalore Refineries and Petrochemicals Ltd and Hindustan Petroleum Corp - have said they will not import oil from Iran as long as they are unable to hedge their risk.



SOUTH KOREA, JAPAN



South Korea's imports of Iranian crude averaged 167,649 bpd in the December to April period, up 45 percent from the prior six months. The imports fell about 9 percent from a year ago.



The comparison to the previous six months was thrown off because South Korea imported no Iranian oil in August and September last year. Its imports in April are expected to be about 190,000 bpd, according to the preliminary loading data. SK Energy and Hyundai Oilbank process Iranian oil in the country.



A South Korean delegation is expected to visit the United States mid to late-May to discuss the exemption, a source with direct knowledge of the matter said, declining to be identified as he was not authorised to speak to the media.



South Korea may have to commit to cut Iranian imports by up to 20 percent over the next six months, the source said, though Seoul could take heart from the extension of the sanctions waiver for Japan, another close U.S. ally, in March.



For the six-month period ended February, a month before Japan secured its third waiver, Japan's imports from Iran rose 31 percent to 200,000 bpd compared with the previous six months.



But they fell a third from a year earlier. Japan had also halted its imports of Iranian crude for one month in the second half of 2012, skewing its data.



Japan probably imported about 179,000 bpd in April, and Tokyo plans to cut purchases from Iran by about 15 percent this year from a year earlier. JX Nippon Oil & Energy Corp is Japan's top buyer of Iranian oil. (Additional reporting by Meeyoung Cho in Seoul, Florence Tan in Singapore, Osamu Tsukimori and Risa Maeda in Tokyo, Writing by Manash Goswami; Editing by Tom Hogue, Simon Webb and Ed Davies)

Source:-www.reuters.com

India To Foot $8 Bn For Coal, Fertiliser, Scrap Imports

21-May-2013

While the fall in prices of gold and crude oil in recent weeks will help India prune its import bill, coal, fertiliser and steel scrap, among others, will only see more imports, as their prices have moderated. The import bill of the three commodities is projected to go up $8 billion. This could offset the benefit of the fall in gold and crude prices from the trade deficit viewpoint.



Analysts say the price outlook of most commodities is moderate or lower compared to last year, but import dependence has been rising.



Salil Garg Director, Corporates India Ratings & Research, said, "India's coal import in 2012-13 was 135 million tonnes, including thermal and coking coal, and we see imports will increase 10 per cent as demand from power plants is increasing."



Thermal coal prices were in the range of $85-110 a tonne last year and at present are $80. For 2013-14, the price outlook has been lowered. Citi has said the average price could be $89.



In the last two years, import of fertiliser in volumes and value has increased 30 per cent. In 2012-13, urea import was around eight million tonnes, while DAP and MOP were 7.75 million tonnes.



Vaishali Chopra, fertiliser analyst, Rabobank Group, India, said, "Urea remained the preferred choice as a fertiliser, due to its low price for farmers. This trend for skewed demand in favour of urea will continue in 2013, as it remains out of the Nutrient Based Subsidy (NBS). The imports for DAP and MOP will be depressed, as their prices are higher in the retail market."



Prices of DAP and MOP are expected to moderate during 2013-14 but imports will depend on improvement in demand.



Another commodity where the import bill is rising is steel scrap. The reason is falling ore production. The Karnataka ore mining issue was cleared only last month, while Goa mining is on halt.



Sajid Chinoy, India economist, JP Morgan Securities Services, said, "With ore extraction falling sharply, the economy has been forced to import much larger quantities of scrap metal, which have almost doubled from $7 billion in FY10 to $13 billion in FY13."



He says the import bill due to coal will increase by $3.5 billion, fertiliser, $1.5 billion, and steel scrap, $3 billion, in 2013-14.

Source:-www.business-standard.com

Takeover Code empowers SEBI to permit withdrawal of open offers only where performance of offer is i

CL : Regulation 27(1)(d) of the 1997 Takeover Code[corresponding to Regulation 23(1)(d) of the 2011 Takeover Code] doesn't empower SEBI to permit withdrawal of an offer merely because it has become uneconomical for acquirer to perform the public offer. Other two clauses of Reg. 27(1) are within the same genus of impossibility. Therefore, applying the principle of 'ejusdem generis' "such circumstances" in clause (d) would also be restricted to situation which would make it impossible for the acqu

AO is bound by stock valuation as accepted by sales tax authorities; and can’t reassess on third par

IT : Unless and until competent authority under Sales Tax Act differs or varies with closing stock of assessee, return accepted by said authority is binding on Income-tax authorities and Assessing Officer, in such a case, has no power to scrutinize return submitted by assessee

Concealment penalty can’t be imposed if divergent views exist on disallowance of an exp.

IT : Where disallowance of bad debt was due to difference of opinion, no penalty under section 271(1)(c) could be imposed on that account

RBI/2012-13/503 A. P. (DIR Series) Circular No.105 dated 20-05-2013

RBI : Export of Goods and Software - Realisation and Repatriation of export proceeds - Liberalisation



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Trade Notice No. 02 /2013 dated 20-05-2013

DGFT : Constitution of 2nd Task Force on Transaction Cost



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Electricity charge recovered from tenant not includible in rent from letting out of an immovable pro

ST : Electricity charges, towards electricity consumed by tenant, recovered on actual basis by landlord are not includible in value of renting of immovable property services; but, operation and maintenance charges are includible

Disallowances omitted by AO inadvertently during final calculation is rectifiable under sec. 154

IT : Where certain disallowance made by Assessing Officer by detailed discussion was left from final calculation, such mistake could be corrected under section 154

Provision of free transport provided to employees for business purposes doesn't amount to a service

ST/ECJ : Provision of free transport facility to employees for business purposes cannot be regarded as 'service' because work done and wages received are independent of use or otherwise of such facility by employees and, hence, a proportion of work performed by employee does not amount to consideration

Since investment in ICDs was part of business, loss therefrom was held as business loss by ITAT

IT : Where investment in inter-corporate deposits (ICDs) were part of business activities as interest accrued therefrom had been treated as business income, loss arising on such investment was allowable as business loss

Amendment to sec. 2(15) fixing monetary limit authorises AO to deny exemption and not to revoke regi

IT : Amendment to section 2(15) by introducing Proviso fixing monetary limit in respect of public utility services cannot be a reason to cancel registration in exercise of power under section 12AA(3)

Frequency for renewal of registration by depositories increased, liability fixed in case of defaults

SEBI : SEBI (Depositories and Participants) (Amendment) Regulations, 2013 - Amendment in Regulation 20A and Insertion of Regulations 39A & 64A

Period for realisation and repatriation of export proceeds reduced to 9 months for ADs

FEMA : Export of Goods and Software - Realisation and Repatriation of Export Proceeds - Liberalisation

Exp. on replacement of machinery part isn't a revenue exp. if it brings an advantage of an enduring

IT: Where assessee was engaged in business of printing and it incurred a sum of Rs. 173.44 lakhs for repairs, renovation, restoration and replacement of major parts of a particular machine and replacement resulted in a new or fresh advantage, said expenditure was neither allowable under section 31(1) nor under section 37(1)

NR couldn’t take shelter of Non-discriminatory clause to bypass conditions for a resident for claimi

IT/ILT : In case of claim of deduction under section 80M, benefit of non-discriminate clause of DTAA is available to foreign national under similar circumstances and, therefore, conditions which are required to be fulfilled by Indian national are also required to be fulfilled by foreign national in order to claim said deduction

Rupee Inches Up; Dollar Selling Watched

The rupee opens higher. The pair is at 54.97/98 versus its last close at 55.10/11.



The pair may trade in a 54.80-55.10 band for the session, says a senior dealer with a state-run bank.



Selling from exporters to continue keeping the rupee biased towards gains, adds the dealer.



Asian currencies trading firmer compared with the dollar.



Month-end dollar demand will be watched, with the pair to take direction from stock moves.



The dollar edged up against the yen on Tuesday after Japan's economy minister clarified earlier remarks about the yen's weakness that had toppled the greenback from a 4-1/2 year high in the previous session.

Source:-in.reuters.com

Coffee Edges Higher As Export Demand Rises

May 20, 2013

Indian coffee prices edged higher at the last week's auction on strong demand from exporters. Of the total 277,339 kg offered for sale, about 119,000 kg were sold, which consisted of 137,880 kg of arabica coffee, and robusta coffee stood at 139,459 kg.



Arabica plantation grades were quoted Rs 50-250 per 50 kg, higher compared with the last auction, while robusta parchment was higher by Rs 100 per 50 kg. Coffee exports were almost steady at 197,304 tonnes from October 1 to



May 17, data from the state-run Coffee Board showed.



India's state-run Coffee Board has cut the country's coffee output estimate to 315,500 tonnes for the crop year to September 2013, down three per cent from an earlier projection.

Source:-www.business-standard.com

Retention money withheld for satisfactory execution of a contract can't be stamped as income of asse

IT : Where assessee was awarded a contract and in terms of contract certain amount was withheld by contractee towards retention money for satisfactory execution of contract by assessee, retention money did not represent assessee's accrued income

HC confirms sec. 69 additions for undisclosed income unearthed as FDRs in name of employees

IT : Where Assessing Officer, finding FDRs in names of assessee's employees to be bogus, made addition in hands of assessee under section 69, Tribunal could not delete said addition without giving any reason

A trust can’t be penalized for being profit oriented; surplus in one year not a ground for its denia

IT : Mere generation of surplus/profit in a particular year cannot be a ground for denial of registration under section 12AA and also grant of approval for exemption under section 80G

Refund of ST paid under protest can be claimed within one year from the date of settlement of disput

ST : Hire Purchase Finance is not covered under service tax levy under Banking and other Financial Services.

RBI/2012-13/502 A. P. (DIR Series) Circular No.104 dated 17-05-2013

RBI : Foreign Direct Investment (FDI) in India - Issue of equity shares under the FDI scheme allowed under the Government route against pre-operative/pre-incorporation expenses



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DGFT Public Notice No.13/(RE 2013)/2009-14 dated 17-05-2013

DGFT : Format of ANF 3F (for Incremental Export Incentivisation Scheme).



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DGFT Public Notice No.14/(RE 2013)/2009-14 dated 17-05-2013

DGFT : Amendment in Para 2.43.2 (c) of Handbook of Procedure Vol.I, 2009-2014.



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Cenvat credit taken on goods used for private purposes needs to be reversed

ST/ECJ : In case credit is taken on goods and services used for maintenance, etc., of non-cenvatted capital goods used partially for private purposes, department may seek partial reversal of credit taken on such inputs/input services

CBDT notifies ‘Press Trust of India’ as a news agency for purposes of sec. 10(22B)

IT : Section 10(22B) of the Income-Tax Act, 1961 - Exemptions - News Agency - Notified News Agency

Payments to co. for issue of shares under FDI route can be made through bank account opened by NR

FEMA/ILT : Foreign Direct Investment (FDI) in India - Issue of Equity Shares under the FDI Scheme Allowed under the Government Route Against Pre-Operative/Pre-Incorporation Expenses

Tolerable variation between ALP and actual price allowable even if one price is determined by Most A

IT : Option of transaction price as deemed ALP under second proviso to section 92C(2) shall apply not only to a situation where more than one ALP is determined by ALP but also where only one price is determined as ALP

Discrepancy in inventory valuation allowed as deduction as assessee was following same method consis

IT : Diminution in valuation of closing stock on account of impairment and defect is allowable, if same method of valuation is consistently followed

Customs Notification No.29/ 2013 dated 16-05-2013

Indian Customs : Amends Notifications No. 92/2009-Cus,93/2009-Cus, 95/2009-Cus,104/2009-Cus and 23/2013-Cus.



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Customs Notification No 11/2013-Customs (ADD) dated 16-05-2013

Indian Customs : Seeks to impose anti-dumping duty on imports of Peroxosulphate, originating in or exported from People's Republic of China and Japan for a further period of 5 years pursuant to final findings of SSR.



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Central Excise Notification No 17/2013 dated 16-05-2013

Central Excise : Seeks to amends Notifications No. 34/2006-CE, 29/2012-CE, 30/2012-CE,32/2012-CE and 33/2012-CE.



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Pre-deposit order may be modified in view of subsequent decision in favour of assessee

ST : In view of subsequent favourable judgments, pre-deposit order passed may be modified to waive such requirement, as not modifying such order will result in creation of additional work by way of payment of amount under different challans and sanction of refund subsequently

Customs Notification No.28/ 2013 dated 16-05-2013

Indian Customs : Seeks to amend notification No. 12/2012, dated the 17th March, 2012 so as to allow transfer of goods imported for oil exploration from one eligible project to another.



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Developers are liable for ST on activity of development of residential complex through contractors

ST : Prima facie, developers getting complex constructed on land registered in name of individual buyers are liable to service tax and services of hired contractors engaged in actual construction are input services for developers

ITAT discourages double-dipping by AO; quashes disallowance under two provisions - Sec. 40(a)(ia) an

IT/ILT : Payment of fees to foreign group company, disallowed under section 40(a)(ia) for failure to comply with TDS provision, cannot again be disallowed under section 37(1) for non-furnishing of details or under section 41(1) for being shown as a credit in books

Four Lorries Burnt At Chennai Port

19-May-2013

inside the Chennai Port Trust area Sunday evening but tghe cause of the fire is not clear yet, officials said. The fire was brought under control by the tenders located in the port, they added.



"Four lorries stationed inside the port's gate number seven went up in flames suddenly. The fire is under control. The cause of fire is not known," a fire service personnel at the Chennai port told IANS.



The burning tyres caused a thick dark smoke to rise up in the area and smooth flow of traffic near the port was disturbed.



According to the port's fire service personnel, the trucks were not carrying oil and the cause of fire is not known yet.



An official of Tamil Nadu Fire and Rescue Services told IANS that their vehicles were kept on alert though there was no call for help from the port authorities.





Source:-timesofindia.indiatimes.com

'Ingenuity, Innovation, International Expansion Vital Elements Of Our Plans,' Director Sales, Dawlance

Dawlance is among the most well-known brands in the country and its jingle, "Dawlance: the name is enough" rings so true, that the company's senior management know they may just as easily launch other products and instantly receive a strong response from the domestic market.



Talking to BR Research, Company's Director Sales Hasan Jameel stated that the company's dealers have often insisted it should launch itself into generators, uninterrupted power suppliers and other products that it does not currently market. There are even counterfeiters who use the Dawlance brand to sell products like mattresses, pillows and water dispensers; all products that the real Dawlance, does not manufacture or market.



But Jameel is adamant that the company will only function in segments where it has developed strong expertise, adding that "success lies in consistently assessing what consumers need and delivering it to them".



Ten months ago, when senior managers at Dawlance met with BR Research, they had stressed that the company has maintained leadership among leading categories of home appliances, by consistently assessing the needs and desires of existing and potential clients and delivering new solutions to cater to these. The same philosophy is behind its latest ingenuity; Double French Door refrigerators, which have been recently introduced in the domestic market.



"These refrigerators offer about 35-40 percent more capacity than conventional refrigerators that are currently selling in the domestic market. Since this model is pillar-less, consumers are able to better utilise the extra capacity," he explained. The DFD refrigerators are also equipped with special bottle racks and easy handles; all features based on feedback gathered by the company through research.



DOING THEIR HOMEWORK



"We conducted extensive research before the development and marketing of this product. Concept testing was undertaken with the help of two independent testing agencies; consumer surveys were conducted by the marketing team in four cities which presented its findings to the research team through an internal forum," Jameel explained.



He added that the company's teams interacted to convert the customer needs into product features. Simultaneously, Dawlance engaged an international company for the design of the DFD refrigerators. In all, this comprehensive exercise yielded a new product after efforts spanning over four years.



Concept testing for products within the home appliances segment, is quite different even when compared to automobile or cellular phone industries, explained Jameel. He asserted that while those industries can rely on customer feedback regarding dimensions, design and colour based on computer-generated concepts; the same cannot be relied upon in home appliances.



"The value proposition for refrigerators is heavily based on capacity, but the average consumer cannot comment on the adequacy of capacity of a potential product simply by browsing computer-generated images; they have to see the real product."



INTERNATIONAL EXPANSION



Although the Double French Door refrigerators were launched in the domestic market just a couple of weeks ago; Dawlance has been showing off this unique innovation at international forums for a few months now.



Last year in October, Dawlance became the first Pakistani home appliances company to exhibit its product range at the Canton Fair in China. "We displayed all our high-end products prominently at that fair, including the new DFD refrigerators, and also received a hefty number of inquiries from international buyers," he said. Dawlance has already penetrated markets in Central Asia and North Africa. Now it is gearing up to sell its products in markets as geographically distant as South America.



"Food preservation habits in that part of the world are very similar to ours and as a result, that market is lucrative for us without making any major changes to existing products," explained Jameel. Dawlance has been actively pursuing buyers in Iraq, Syria and other markets in the Middle East.



The Director Sales conceded that prospects in those markets have been dampened by ongoing political strife there, but insisted that local sales and exports to other markets will ensure that the company maintains a strong growth trajectory.



LOCAL BUYERS GAIN FROM GLOBAL EXPANSION



Hasan Jameel highlighted that many manufacturing and quality benchmarks that are only incorporated by premium brands in Pakistan, have become industry norms in other parts of the world. He also conceded that although Dawlance is a well-entrenched and respected brand in Pakistan, the company has its work cut out to build brand equity internationally.



"We already benchmark our products according to international standards and are actively working on further improving our offerings. All of the innovations and improvements that we are introducing are further augmenting the value proposition for buyers in the country," he asserted.



The company currently sells about 750,000 refrigerators each year. Thanks to the addition of new factory in Karachi, besides expansion in the two units in Hyderabad, its existing capacity towers over a million refrigerators, annually.



Refrigerators, freezers and washing machines are manufactured at various facilities within Pakistan. Components of split air conditioners and microwave ovens sold under the Dawlance label are imported, while the final products are assembled in the country. Besides these, certain models of split air conditioners and automatic washing machines are imported directly from manufacturers; mostly in China.



Keen to safeguard its technological edge, Dawlance has now secured patents for its H-Zone technology and easy handles that adorn newly launched refrigerator models. A few days back, the company has also launched another patented innovation; low-voltage start-up refrigerators (LVS). "Even if you are getting 135 volts through the power supply at home, your refrigerator will perform, making this an ideal product for parts of the country where voltage fluctuation issues are common".



UNFETTERED BY CHINA, UNMOVED BY AFGHANISTAN



Chinese home appliances flooded the domestic market back in 2004-05. "At that time, there was a plethora of brands that were selling everything from split air conditioners to microwave ovens. The low quality brands and manufacturers have been weeded out of the market since that time," he summed up.



Jameel pointed out that Dawlance itself sources some of its components and products from prominent manufacturers in China. "Our split air conditioners, microwaves and automatic washing machines are based on parts from some of the world's largest suppliers who also supply to the world's leading brands like Samsung, Hoover and General."



Chinese manufacturers are supplying products and components to a whole range of brands; from low-cost solution providers to the most well-reputed premium brands. "The difference is based on the material that goes into the manufacturing and that is where we emphasise on quality to maintain our edge," explained the Director Sales. Dawlance has put in place a comprehensive testing procedure whereby products and components imported from various vendors are tested before approving the procurement by this company.



Responding to a question regarding the company's prospects in Afghanistan, Jameel complained about a lack of infrastructure and organised procedures. "Just consider their local television channels; if you wish to advertise with them, the tariffs charged are difficult to decipher and not based on any market research." He acknowledged that demand for home appliances in Afghanistan is booming, but pointed to hurdles such as rampant smuggling, lack of dealership and promotion channels and dispersed markets.

Source:-www.brecorder.com

Rupee Hits 2-1/2 Month Low

the rupee is trading at 54.02/03 after touching 55.07 in opening deals, its lowest since March 4. Traders say a weak euro is helping the USD/INR pair but gains in domestic shares may support the local unit.

The pair will face initial resistance at 55.15 a break of which can take it to 55.35, traders say.

The BSE Sensex is trading up more than 100 points while the broader 50-share Nifty is trading up 0.6 percent.

Source:-in.reuters.com

CUP is suitable method when twin conditions of comparability and uncontrolled transactions are satis

IT/ILT : CUP is suitable method when twin conditions of comparability and uncontrolled transactions are satisfied

Govt Can Get Rs 25K Cr By Export Of 17Mt Wheat Lying In Open'

19-May-2013

New Delhi: The government could garner over Rs 25,000 crore by just exporting 17 million tonnes of wheat that are lying in open storage facilities of FCI, an Assocham study said.



The industry chamber also suggested the government to keep an ambitious agri-export target of USD 50 billion for this fiscal as this will help control current account deficit.



"The Food Corporation of India (FCI) can earn over Rs 25,000 crore through exports of about 17 million tonnes (mt) wheat lying in its open warehouses across various states," Assocham said in a statement.



The study "Agri-exports: High potential and action agenda" has strongly advocated a long-term agricultural exports promotion policy as farm exports have the potential to be the second most significant foreign exchange earner after software and services exports.



Targeted export levels are imperative for raising the economic growth and narrow down the rising current account deficit, it added.



"The government should set a USD 50 billion target for agricultural exports for the 2013-14 fiscal which should subsequently be raised to about USD 70 billion in 2017 which will help in reducing the rising CAD," Assocham President Rajkumar Dhoot said.



Higher farm exports would promote crop diversity, drive productivity of crops and encourage farmers grow specific crops to meet global demand, he said.



As per official data, the country had exported USD 33.54 billion worth agriculture and allied products in 2012-13.



As there is huge scope for raise farm output in eastern states, there is need for greater investment for implementing modern and new farm practices.

Source:-zeenews.india.com

Part Of Government Can Still Be Independent

There is a raging controversy now whether an institution which is a part of the Government can still be independent. This happened in the recent context in which the CBI has come under serious criticism for not acting independently.



The CBI has been defended by some analysts in the newspapers and in the electronic media on the ground that it is a part of the government and so it cannot act independently. I am writing this treatise to propound the thesis that it is possible to act independently even while being a part of the government. I am writing about the tax departments, particularly about the indirect tax department.



Tariff Ruling:

The Customs Act and the Excise Act have provisions that make the decisions independent in individual cases, but general instructions can be given by the government. To the field officers, the ruling given by the Central Board of Excise and Customs is binding, as decided by the Supreme Court. But such ruling is given as a general ruling. The CBEC cannot legally give a ruling in an individual case. And the law also lays down that the Board cannot give direction in a particular case. What is more important is that such rulings also do not bind the Commissioner Appeal though he is a part of the Board. So it is an open situation that the department is bound by the Board's ruling but the appellate authority is not bound. This brings an element of freedom to the appellate commissioners such that they can dispense justice according to the interpretation that they consider right.



Investigation:

There is enough scope for officers to investigate properly since the provisions of search and seizure are such that the seizing officers have to form their own "reasonable belief" before they search a place or a person. Legally, if any direction is given by the higher officers to search a place and it is found that the searching officer did not have any reasonable belief that smuggled goods are hidden there, the search becomes invalid.



Adjudication:

In the case of adjudication, the adjudicator enjoys the same position as a judge. He cannot be given direction to confiscate the goods or release them. He and he alone can decide it. However, the norms are laid down by the government regarding hearing, imposing the quantum of fine and penalty in general terms. Even he can be questioned why he treated one case differently from all other cases. But that is to prevent misuse of power or whimsical use of power.



Prosecution:

Filing prosecution also is another issue which throws up controversy about the freedom of the officers from the government. Officers have to decide themselves that the offender needs to be prosecuted. The government has laid down who can decide on prosecution, but the government cannot decide in an individual case who should be prosecuted. The courts cross examine the person who gives person giving permission if he was satisfied that the case was fit for prosecution. When I filed prosecution against an officer, I was cross-examined in the court on how I satisfied myself about the need to prosecute.



Opposite view

With all these safeguards there is always a possibility that there will be verbal instructions to adjudicate in favour or against somebody.



I can definitely say from my experience that this happens. But such aggrandisements on the part of the government or the senior officers will always come even if there is a law to make an organisation independent of the government. It can be made independent of the government but it cannot be made independent of the senior officers. They would always bully or threaten the juniors to fall in line by overt or covert threats.



Conclusion:

The Customs, Excise and Service Tax laws are designed such that an officer can act independently. It depends on the individual officers to withstand any inroads into their independence. Usually, the threats to juniors to follow the line are given secretly and verbally.



So the officers have to follow the independent path by dint of their own personality and strength of character. If they are cowards, any amount of legal provision cannot make any organisation independent.

Source:-ww.business-standard.com

U.S. Clears Shale Gas Export To India

Opening up the prospects of export of shale gas to energy-starved India, the U.S. has granted conditional authorisation to export domestically-produced liquefied natural gas (LNG) to countries that do not have a free trade agreement (FTA) with it.



In a decision, which has major implications for India, the Department of Energy, on Friday, announced that it had conditionally authorised Freeport LNG Expansion, LP and FLNG Liquefaction, LLC (Freeport) to export domestically-produced LNG to non-FTA countries from the Freeport Terminal on Quintana Island in Texas.



Given that the companies from countries such as China, Japan and Britain have already an overwhelming stake in this Texas company, India is unlikely to benefit immediately from this grant of licence.



But the decision paves the way for India, which does not have a free trade agreement with the U.S., to get its companies seek similar licences for import of the much-needed gas from the U.S. in large quantities from other terminals.



The existing federal law generally requires approval of natural gas exports to countries that have an FTA with the U.S.



For countries that do not have an FTA with the U.S., the Natural Gas Act directs the Department of Energy to grant export authorisations unless the Department finds that the proposed exports “will not be consistent with the public interest.”

The DoE order



In its 132-page order, the Department of Energy said the proposed exports are likely to yield net economic benefits to the U.S.



“We further find that granting the requested authorisation is unlikely to affect adversely the availability of natural gas supplies to domestic consumers or result in natural gas price increases or increased price volatility such as would negate the net economic benefits to the United States,” it said.



The Freeport facility in Texas, the Department of Energy said, is conditionally authorised to export at a rate of up to 1.4 billion cubic feet of natural gas a day (Bcf/d) for 20 years.



The Department granted the first authorisation for the Sabine Pass LNG Terminal in Cameron Parish, Louisiana, to export LNG to non-FTA countries in May, 2011 at a rate of up to 2.2 Bcf/d.



GAIL (India) has executed an LNG off-take agreement with Sabine Pass Liquefaction LLC, for import of 3.5 million metric tonnes (mmtpa) per annum LNG from the U.S.A on FoB basis.

Supply to start from 2017-18



The commencement of supply is expected to start from 2017-18.



The Department is now processing several other applications in this regard.



Pushing for U.S. export of shale gas to India, the Indian Ambassador to India, Nirupama Rao, in a recent talk at the American Enterprise Institute (AEI), had said that the demand-supply gap of natural gas in India, estimated at around 2.2 trillion cubic feet (tcf) per annum at present, was likely to go up to nearly 4 tcf per annum by 2016-17.



The demand of natural gas is expected to be about 8 tcf per annum by the year 2030.



“We estimate that these savings would be in the range of $4-5 per million metric British Thermal Units (mmbtu).



“This would result in cheaper electricity, lower subsidies on urea and other nitrogenous fertilizers, and a more economical fuel for a variety of industrial and consumptive gas usages,” she argued.



She had said Indian companies had already made some large investment in the U.S. in this regard.



“Already, we have invested significantly in the liquefaction terminals that are likely to come up in this country. Recently, GAIL booked 2. 3 mmtpa capacity in the Cove Point LNG Terminal proposed to be commissioned by Dominion Cove Point LNG LP in 2017.



“During the recently-concluded LNG 17 Conference at Houston, India’s Petronet LNG and United LNG, LP, have entered into a conditional agreement to supply LNG from the Main Pass Energy Hub LNG project in the Gulf of Mexico, with the final agreement expected to be concluded by year-end.



“Thus, by late 2017, on the assumption of DoE approvals, we are already looking at a scenario of 0.5 tcf per annum of LNG exports from the U.S. to India, which is nearly 75 per cent of our current yearly imports of natural gas from all sources,” Ms. Rao said, adding that Indian companies were scouting for more tie-ups and ownership stakes in the 19-odd terminals which had applied for export of natural gas to non-FTA countries.



Besides, other Indian companies, including Reliance Industries in the private sector, had bought stakes in oil and gas exploration and production companies, a trend which would receive a huge boost if export of natural gas was permitted to India, she argued. According to another study, roughly 20 per cent of the $133.7 billion invested in U.S. tight oil and shale gas from 2008 to 2012 has come from abroad, with Indian companies accounting for a total investment of nearly $4 billion so far.

Source:-www.thehindu.com