CIT Vs. HCIL KALINDEE ARSSPL

$~10-11 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 480/2012 % Date of Decision: 29th July, 2013 CIT ..... Appellant Through Mr. Rohit Madan, Advocate. versus HCIL KALINDEE ARSSPL ..... Respondent Through None. + ITA 481/2012 CIT ..... Appellant Through Mr. Rohit Madan, Advocate. versus HCIL ARSSPL TRIVENI (JV) ..... Respondent Through None. CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE SANJEEV SACHDEVA SANJIV KHANNA, J. (Oral) 1. These two appeals by the Revenue arise out of a common order of Income Tax Appellate Tribunal dated 25.11.2011 in the case of M/s. HCIL ARSSPL TRIVENI (JV) vs. ACIT and M/s. HCIL KALINDEE ARSSPAL (JV) vs. ACIT. The appeals ITA 480/2012 Page 1 of 11 relate to Assessment Year 2007-2008. 2. By order dated 30.10.2012, the following substantial question of law was framed in these two appeals. "Whether the ITAT erred in law and on merits in deleting the penalty levied u/s 271 (1) (c) of the Income Tax Act, 1961? 3. The respondent assessees had claimed deduction under Section 80IA of the Act. They had also filed a copy of Form No.3CB and 3CD and Form No.10CCB in support. In the regular assessment proceedings, the Assessing Officer collected details from M/s. Rail Vikas Nigam Ltd and M/s. Rites Ltd. and came to the conclusion that HCIL ARSSPL TRIVENI (JV) had not executed the work but had given sub-contract to M/s. HCIL. Respondent assessee M/s. HCIL Kalindee ARSSPL similarly had not done any work but sub-contracted the work to M/s HCIL and M/s Kalindee Rail Nirman Project Ltd. 4. The aforesaid factual position was put to the respondent assessees and they were asked to reply and explain. Reply furnished was not accepted by the Assessing Officer, who also relied on Explanation to sub-Section 13 of Section 80IA of the Act which stipulates that the Section 80IA is not applicable to an assessee engaged in the execution of works contract. ITA 480/2012 Page 2 of 11 Deduction under Section 80IA was denied and an addition of Rs.70,07,615/- and Rs.41,83,622 was made in the case of M/s. HCIL Kalindee ARSSPL (JV) and HCIL ARSSPL Triveni (JV) respectively. The assessees accepted the quantum order and did not file any appeal. Additions made attained finality. 5. Concealment penalty proceedings under Section 271(1)(c) were initiated and penalty of Rs.23,02,665/- imposed on M/s. HCIL Kalindee ARSSPL (JV) and Rs.13,52,107 on M/s. HCIL ARSSPL Triveni (JV), were upheld by the CIT (Appeals). They specifically rejected the contention that the assessees had acted bonafidely and were not liable as they had relied upon opinion in view of the forms which had been filled up by the Chartered Accountant. 6. The Tribunal in the impugned order dated 25.11.2011 while deleting the penalty has held:- "7.4 In the light of aforesaid observations of the Hon'ble Apex Court, what is to be seen in the instant case, is whether the claim for deduction u/s 801A of the Act, on the basis of certificate of the accountant, made by the assessee was bona-fide and whether all the material facts relevant thereto have been furnished and once it is so established, the assessee cannot be held liable for concealment penalty u/s 271 (i) (c) of the Act. The Assessing Officer has not been able to establish that the claim ITA 480/2012 Page 3 of 11 of the assessee for deduction under section 801A of the Act was not bona fide. A mere rejection of the claim of the assessee by relying on difference interpretations does not amount to concealment of the particulars of income of furnishing inaccurate particulars thereof by the assessee. Hon'ble Apex Court in CIT V. Reliance Petroproducts (P) Ltd. [2010] 322 ITR 158/189 Taxman 322, after considering various decisions including Dilip N. Shroff v. Jt. CIT [2007] 291 ITR 519/161 Taxman 218 (SC) and Union of India V. Dharmendra Textile Processors [2008] 306 ITR 277/174 Taxman 571 (SC) concluded that a mere making of a claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee. Such a claim made in the return cannot amount to furnishing inaccurate particulars. Following this decision, Hon'ble jurisdictional High Court in M/S Dharpal Premchand (Supra) upheld the cancellation of penalty levied in relation to incorrect claim of deduction u/s 801A & 801B of the Act. Mere disallowance of a claim will not amount to filing of inaccurate particulars of income. It can at best be a "wrong calim"not a "false claim". In such circumstances, Hon'ble Delhi High Court held in the case of Commissioner of Income-Tax vs Bacardi Martini India Limited, 288 ITR 585 (Del) that no penalty was leviable. In the case under consideration, there is nothing to suggest that the assessee furnished any inaccurate particulars or concealed the particulars. Admittedly, the claim for deduction u/s 801A was duly supported by the certificate of the chartered accountant in the prescribed form. In these circumstances no fault can be found with the claim of the assessee that it had claimed the deduction in a bona fide manner. In somewhat similar circumstances. Hon'ble Punjab and Haryana High Court cancelled the penalty levied in respect of disallowance of deduction u/s. 801 in the case of CIT Vs SD Rice Mills, 275 ITR 206 (P & H). Similar view was taken in ACIT Vs. Arisudana Spinning Mills Ltd., 19 DTR.1 (Chd) and Model ITA 480/2012 Page 4 of 11 Footwear P Ltd. Vs. ITO, 124 ITD 353(Del.). Moreover, mere fact that the report prepared by the CA in the form 10 CCB was not in accordance with the provisions of section 801A(7) of the Act, was not enought to hold that the mistake was not bona fide. This view is supported by the decision in the case of CIT Vs. Deep Tools Pvt. Ltd., 274 ITR 603 (P&H), where in also levy of penalty was held to be unjustified. In CIT Vs. Caplin Point Laboratories Ltd., 298 ITR 524 (Mad) Hon''ble High Court while adjudicating the levy of penalty in relation to incorrect claim for deduction u/s 80 HHC & 801 of the Act held in the light of aforesaid decision of the Hon'ble Apex Court in Dilip N. Shroff (supra) that a mere rejection of the claim of the assessee by relying on different interpretations does not amount to concealment of the particulars of income furnishing inaccurate particulars of income by the assessee." 7. Penalty provisions are not criminal and do not require culpable mens rea. Whether or not the assessee had acted malafidely is not the relevant question to be asked and answered. The relevant question to be asked and answered is whether the assessee has discharged the onus and satisfied the conditions mentioned in Explanation 1 to Section 271(1)(c) of the Act. The said explanation reads as : "Explanation 1- Where in respect of any facts material to the computation of the total income of any person under this Act:- (A) Such person falls to offer an explanation or offers an explanation which is found by the Assessing Officer or the Commissioner (Appeals) or the Commissioner to be false, or (B)Such person offers an explanation which he is ITA 480/2012 Page 5 of 11 not able to substantiate and fails to prove that such explanation is bone fide and that all the facts relating to the same and material to the computation of his total income have been disclosed by him, Then, the amount added or disallowed in computing the total income of such person as a result thereof shall, for the purposes of clause (c) of this sub-section, be deemed to represent the income in respect of which particulars have been concealed." 8. Penalty under Section 271(1)(c) of the Act is imposed when an assessee has concealed his income or furnished inaccurate particulars. In terms of the explanation quoted above, we have to examine whether the case falls within sub-clause (A) or (B) and the effect thereof. Sub-clause (A) applies when the assessee fails to furnish any explanation or when an explanation is found to be false. In the present case, sub-clause (A) would not be applicable as assessee has furnished an explanation, and the explanation has not been found to be "factually" false. The assessee had made a wrong claim for deduction under Section 80IA and, therefore, had furnished inaccurate particulars as the claim was not admissible. Sub-clause (B) of the explanation is, therefore, applicable and we have to examine the two conditions whether: (1) The assessee has been able to show that the explanation was bonafide; and (2) Facts and material relating to computation of his income had been disclosed. ITA 480/2012 Page 6 of 11 9. Onus of establishing that the assessee satisfied the two conditions is on him i.e. the assessee. We shall examine the first condition i.e. whether the explanation of the assessee was bonafide. The second condition is satisfied. 10. In the present case, we note that Tribunal has proceeded on the premise that the claim for deduction under Section 80IA of the Act was duly supported by the Chartered Accountant 's Certificate and prescribed forms signed by the Chartered Accountant. For claiming deduction under Section 80IA of the Act, filing of certificate and forms signed by the Chartered Accountant is mandatory and a requirement of law. All returns, where deduction under Section 80IA is claimed, must have such certificates and forms. Mere filing of the said forms/certificate cannot absolve and protect an assessee who furnishes in-accurate particulars. If the explanation and the reasoning of the Tribunal is accepted, then in all cases where a form/certificate is furnished by the Chartered Accountant but a wrong claim of deduction is made, no penalty under Section 271(1)(c) can be imposed. Merely because the assessee complies with the statutory procedural requirement of filing the prescribed form and certificate of the Chartered Accountant, cannot absolve the assessee of its liability if the act or attempt in claiming the ITA 480/2012 Page 7 of 11 deduction was not bonafide. 11. Two reasons were given by the Assessing Officer why the claim for deduction under Section 80IA of the Act was rejected and should be denied. The first reason was that the respondent assessees were involved in works contracts and Explanation to Section 80IA (13) stipulates that benefit under the said Section was/is not available to a contractor carrying on works contract. The said "clarificatory" explanation was inserted by the Finance Act, 2007 with retrospective effect from 01.04.2000. The CIT (Appeals) in the first appellate order has specifically mentioned that the Finance Act, 2007 received the Presidential assent on 11.05.2007 [(2007) 291 ITR (St.) 1]. The returns of income were filed by M/s. HCIL Kalindee ARSSPL (JV) and M/s. HCIL ARSSPL Triveni (JV) on 01.11.2007. An amendment of this nature invariably attracts attention and is seldom missed. Such amendments become topic of discussion and conversation in the professional circles. To show and establish bonafides, the assessees had to show some more "tangible material" or basis as to why a clear statutory provision which excludes works contracts was ignored. 12. We are not stating or holding that penalty for concealment ITA 480/2012 Page 8 of 11 can be imposed and is justified merely because interpretation or claim of the assessee is rejected. For interpretation and understanding tax laws assessees necessarily and do rely on professional or expert opinion and they cannot be subjected to penalty when the assessee discharges the onus that the claim was bonafide [see Devsons Logistics Pvt. Ltd. vs. CIT (2010)329 ITR 483 (Del.) and decision of this court dated 28th May, 2013 in ITA 804/2011 titled Shervani Hospitalities Ltd. vs. CIT]. The Act i.e. the Income Tax Act, 1961 is one of most vexed and complicated legislation. It has been subjected to numerous amendments from time to time. It requires highest degree of interpretative skills and divergent views on interpretation of tax provisions have been subject matter of plethora of judgments. It is not necessary that there should be uniformity or consistency of opinion on aspects of law. Law does not postulate that an assessee must accept an interpretation against him, even when a favourable view is credible and tenable. Penalty of concealment cannot be imposed because the assessee has taken a particular stand or had preferred an interpretation which was plausible and reasonable, but has not been accepted, unless the assessee had not disclosed facts before the authorities. Such cases have to be distinguished from cases where the claim of the assessee is ITA 480/2012 Page 9 of 11 farcical or farfetched. Dubious and fanciful claims under the garb of interpretation, are a mere pretence and not bonafide. 13. It is not the case of the respondent assessee that there were conflicting decisions of High Court or there was a recent decision of the Supreme Court which had escaped attention or was not understood or an appeal or review etc. was pending before the Supreme Court. The explanation added was clear and categorical. The Tribunal has not referred to the Explanation to Section 80IA as to why and on what basis divergent interpretations were possible. Absurd or illogical interpretations cannot be pleaded and become pretence and excuses to escape penalty. "Bonafides" have to be shown and cannot be assumed. In the present case, the respondents have not been able to discharge the said onus and establish that they had acted bonafidely. 14. We also notice that the Tribunal has not dealt with the second reasoning given by the Assessing Officer to make the said addition; that the assessees had not carried out the work but had sub-contracted the same to a third party/parties. 15. In view of the aforesaid position, we answer the question of law in affirmative i.e. in favour of the Revenue and against ITA 480/2012 Page 10 of 11 the respondent assessees. Order of the Tribunal deleting penalty is held to be contrary to law. Penalty imposed is upheld. The appeals are disposed of. No costs. (SANJIV KHANNA) JUDGE (SANJEEV SACHDEVA) JUDGE JULY 29, 2013 st/kkb ITA 480/2012 Page 11 of 11

THE COMMISSIONER OF INCOME TAX-XVI Vs. SH. FUMIO GOTO

* IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 08.07.2013 Decided on: 31.07.2013 + ITA 379/2007 THE COMMISSIONER OF INCOME TAX XVI ....Appellant versus SH. SASHI MUKUNDAN ..... Respondent + ITA 387/2008 THE COMMISSIONER OF INCOME TAX XVI ...Appellant versus MR. SHORT DONALD ..... Respondent + ITA 212/2009 THE COMMISSIONER OF INCOME TAX ......Appellant versus MR. FUMIO GOTO ..... Respondent + ITA 15/2010 THE COMMISSIONER OF INCOME TAX-XIV .....Appellant versus MR. DUNCAN ETHERINGTION ..... Respondent + ITA 351/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus SH. YASHIMITSU ZAUTSU ..... Respondent + ITA 408/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus SH. IKUJU YABUKI ..... Respondent + ITA 450/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant ITA 379/2007 & connected matters Page 1 versus SHRI TOSHIHORU SUNAHARA ..... Respondent + ITA 534/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus SOJITZ CORPORATION AS AGENT ..... Respondent + ITA 635/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus SH. YASHIMITSU ZAUTSU ..... Respondent + ITA 1354/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus SH. JASWINDER SINGH .... Respondent + ITA 1556/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus MR. MOHAMMAD RAUFF NABI BAX ..... Respondent + ITA 1561/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus MR. MOHAMMAD RAUFF NABI BAX ..... Respondent + ITA 370/2011 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus GORAM WESTERBERG ..... Respondent + ITA 1557/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus MR. JOHN TRIPLETT ..... Respondent ITA 379/2007 & connected matters Page 2 + REV. PET. 708/2011 IN ITA 1369/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus SH. FUMIO GOTO ..... Respondent + ITA 761/2005 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus MR. K.P.HOSTELLEY ..... Respondent + ITA 798/2005 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus MR. YOSHIO KUBO ..... Respondent + ITA 800/2005 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus MR. YOSHIO KUBO ..... Respondent + ITA 680/2007 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus SH. MOHAN RAI ..... Respondent + ITA 681/2007 THE COMMISSIONER OF INCOME TAX XVI ..... Appellant versus SH. MOHAN RAI ..... Respondent + ITA 1215/2008 COMMISSIONER OF INCOME TAX DELHI XIV ..... Appellant versus MR. GHORAYEB EMILE, C/O AIR FRANCE ..... Respondent + ITA 494/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant ITA 379/2007 & connected matters Page 3 versus SH. HIROYASU KITADA ..... Respondent + ITA 508/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus SH. HIROYASU KITADA ..... Respondent + ITA 577/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus MR. SCOTT R BAYMAN ..... Respondent + ITA 631/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus SH. VENKAT RAO SHRIDHAR ..... Respondent + ITA 699/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus MR. JEROME SUDAN ..... Respondent + ITA 1912/2010 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus SH. PANKAJ SHAH ..... Respondent + ITA 528/2011 THE COMMISSIONER OF INCOME TAX-XVI ..... Appellant versus SH. MARCH FRANCOIS JEAN SOULACROUP ..... Respondent .....Appearance Through: Mr. Rajiv Tyagi with Mr. Ajay Kumar, Mr. Gyanendra Sharma and Ms. Renu Narula, Advocates, for respondent in ITA 379/07. ITA 379/2007 & connected matters Page 4 Mr. Pawan Sharma with Ms. Madhavi Swaroop, Advocates, in ITA 15/2010. Mr. Piyush Kaushik, Advocate, in ITA 450/10 & ITA 534/10. Ms. Amita Kalkal Chaudhary, Proxy for Mr. Naresh Kaushik, Advocate, in ITA 1354/10. Mr. S. Ganesh, Sr. Advocate with Mr. Pawan Sharma, Ms. Madhavi Swaroop, Ms. Roohina Dua and Ms. Preeti Goel, Advocates, in ITA 577/10. Mr. Satyen Sethi with Mr. Arta Trana Panda, Advocates, in ITA 1912/10. Ms. Shreya Verma, Advocate, for Respondent in ITA 681/07 & ITA 1215/08. Mr. Salil Kapoor, Mr. Vikas Jain, Mr. Manomeet Dalal and Ms. Preity Goel, Advocates, for Respondents in ITA 212/09, ITA 1556/10, 1561/10, 1369/10, 370/11, 494/10, 508/10 and ITA 631/10. CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE R.V. EASWAR MR. JUSTICE S. RAVINDRA BHAT % 1. For detailed judgment please see ITA 441/2003 titled YOSHIO KUBO vs. COMMISSIONER OF INCOME TAX. S. RAVINDRA BHAT (JUDGE) R.V. EASWAR (JUDGE) JULY 31, 2013 ITA 379/2007 & connected matters Page 5

Tolerable limit not available if only one comparable is selected for computation of ALP

IT/ILT: Where only one comparable is finally selected for purpose of determining ALP, benefit of ± 5 per cent adjustment in terms of proviso to section 92C(2) is not available

Karnataka HC dismisses revenue's appeal as minimum tax effect was less than prescribed limit

IT : Where tax effect is less than prescribed monetary limit, no appeal is maintainable

Chit funds are a form of fund management and are liable to service tax

ST: Chit funds are a form of 'fund management'/'cash management' and are liable to service tax under Banking and Other Financial Services after amendment by Finance Act, 2007

Unsustainable re-assessment to disallow an exp. for TDS default when assessee possessed nil TDS cert

IT : Where details of commission paid to company in question were furnished to Assessing Officer and entire expenditure was disallowed under section 40A(2)(b) in order of assessment under section 143(3), reassessment proceedings to disallow such commission under section 40(a)(ia) could not be sustained

HC directed fresh orders on stay of demand as valid reasons were given by assessee for non-appearanc

IT: Where assessee explained reasons for absence on date of hearing, fresh order on application for stay of demand was called for

The Service Tax Voluntary Compliance Encouragement Schemeclarifications regarding.

Circular No. 169/4 /2013 - ST F. No. B1/19/2013-TRU Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs Tax Research Unit ***** New Delhi, dated the 13th May, 2013 To, Chief Commissioners of Central Excise and Customs (All), Director General (Service Tax), Director General (Systems), Director General (Central Excise Intelligence), Director General (Audit), Commissioners of Service Tax (All), Commissioners of Central Excise (All), Commissioners of Central Excise and Customs (All) Madam/Sir, Sub: The Service Tax Voluntary Compliance Encouragement Scheme- clarifications regarding. The Service Tax Voluntary Compliance Encouragement Scheme (VCES) has come into effect upon enactment of the Finance Bill 2013 on the 10th May, 2013. The Service Tax Voluntary Compliance Encouragement Rules, 2013 has been issued to bring into effect the Scheme. Some references have been received seeking clarification as regards the scope and applicability of the Scheme. 2. The issues have been examined and clarifications thereto are as follows: S. Issues Clarification No. 1 Whether a person who has not Any person who has tax dues to declare can obtained service tax make a declaration in terms of the provisions of registration so far can make a VCES. If such person does not already have a declaration under VCES? service tax registration he will be required to take registration before making such declaration. 2 Whether a declarant shall get Yes. It has been provided in VCES that, beside immunity from payment of late interest and penalty, immunity would also be fee/penalty for having not available from any other proceeding under the taken registration earlier or Finance Act, 1994 and Rules made thereunder. not filed the return or for delay in filing of return. 3 Whether an assessee to whom In terms of section 106 (1) of the Finance Act, show cause notice or order of 2013 and second proviso thereto, the tax dues in determination has been issued respect of which any show cause notice or order can file declaration in respect of determination under section 72, section 73 or of tax dues which are not section 73A has been issued or which pertains to covered by such SCN or order the same issue for the subsequent period are of determination? excluded from the ambit of the Scheme. Any other tax dues could be declared under the Scheme subject to the other provisions of the Scheme. 4. What is the scope of section Section 106 (2) (a)(iii) of the Finance Act, 2013 106 (2)(a)(iii)? provides for rejection of declaration if such Whether a communication declaration is made by a person against whom from department seeking an inquiry or investigation in respect of service general information from the tax not levied or not paid or short-levied or short declarant would lead to paid, has been initiated by way of requiring invoking of section 106 (2) production of accounts, documents or other (a)(iii) for rejection of evidence under the chapter or the rules made declaration under the said thereunder, and such inquiry or investigation is section? pending as on the 1st day of March, 2013. The relevant provisions, beside section 14 of the Central Excise Act as made applicable to service tax vide section 83 of the Finance Act,1994, under which accounts, documents or other evidences can be requisitioned by the Central Excise Officer for the purposes of inquiry or investigation, are as follows,- (i) Section 72 of the Act envisages requisition of documents and evidences by the Central Excise Officer if any person liable to pay service tax fails to furnish the return or having made a return fails to assess the tax in accordance with the provision of the Chapter or rules made thereunder. (ii) Rule 5A of the Service Tax Rules, 1994 prescribes for requisition of specified documents by an officer authorised by the Commissioner for the purposes specified therein. The provision of section 106 (2)(a)(iii) shall be attracted only in such cases where accounts, documents or other evidences are requisitioned by the authorised officer from the declarant under the authority of any of the above stated statutory provisions and the inquiry so initiated against the declarant is pending as on the 1st day of March, 2013. No other communication from the department would attract the provisions of section 106 (2)(a)(iii) and thus would not lead to rejection of the declaration. 3. Trade Notice/Public Notice may be issued to the field formations and tax payers. Please acknowledge receipt of this Circular. Hindi version follows. Yours sincerely, (S. Jayaprahasam) Technical Officer, TRU Tel: 011-2309 2037

Exemption can be claimed even after payment of ST except when assessee passes on burden to recipient

ST/ECJ: An assessee may claim exemption even after provision of service and payment of tax thereon only if he has not passed that tax on to persons following him in chain of supply

Vaghjibhai S. Bishnoi vs. ITO (Gujarat High Court)

Department’s practice of not giving prompt & full credit for TDS condemned The assessee filed a return of income in which he claimed a refund of Rs. 2.11 lakhs. An intimation u/s 143(1) was issued by the CPC Bangalore in which credit for certain TDS certificates was omitted to be given. The assessee filed a rectification application u/s 154 before the AO which was not acted upon. The assessee filed a writ petition to challenge the neglect of the AO to give proper TDS credit. Before the High Court the AO argued inter alia that as the details of the e-return had not been transferred to him by the CPC, he was not authorized to accede to any request of the assessee. It was also claimed that the assessee had not filed full details relating to the claim. HELD by the High Court allowing the Petition: Form 26AS, available on the department’s website, clearly reflects the assessee’s entitlement to credit for TDS. Instead of giving credit for the TDS, the department has adamantly continued to take the stand that there is a failure on the part of the assessee to furnish details. We are not impressed with such a stand. Computerization is with the object to facilitate easy access to the assessee and make the system more viable and transparent. In the event of any shortcoming of software programme or any genuine mistake, the Department is expected to respond to such inadvertence spontaneously by rectifying the mistake and give corresponding relief to the assessee. Instead of that, even when it is being brought to the notice of the Department by the assessee, by a rectification application and subsequent communication, not only it has chosen not to rectify the mistake, but, the lack of inter departmental coordination has driven the assessee to this Court for getting his legitimate due. This attitude for sure does not find favour with the Court, as more responsive and litigant centric system is expected; particularly in the era of computerization. Tax payers friendly regime is promised in this electronic age. For want of necessary coordination between the two departments, the assessee cannot be expected to be sent from pillar to the post. If the Centralized Processing Center meant for return processing, accounts, refund, storage of data etc. adds to the difficulties of the Tax payers, due to lack of distribution of work between back office and front office, and that too, after having been pointed out the actual error, a serious re-look is expected.

RBI/2013-14/177 A.P. (DIR Series) Circular No. 21 dated 12-08-2013

Reserve Bank Of India

A.P. (DIR Series) Circular No. 21

August 12, 2013

To,

All Category - I Authorised Dealer Banks

Madam / Sir,

Exim Bank's Line of Credit of USD 28.60 million to the Republic of Zimbabwe

Export-Import Bank of India (Exim Bank) has entered into an Agreement dated June 21, 2013 with the Republic of Zimbabwe, for making available to the latter, a Line of Credit (LOC) of USD 28.60 million (USD Twenty- eight million six hundred thousand only) for financing eligible goods, services, machinery and equipment including consultancy services from India for the purpose of financing upgradation of Deka Pumping Station and River Water Intake System in Zimbabwe. The goods, services, machinery and equipment including consultancy services from India for exports under this Agreement are those which are eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this Agreement. Out of the total credit by Exim Bank under this Agreement, the goods and services including consultancy services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India and the remaining 25 percent goods and services may be procured by the seller for the purpose of Eligible Contract from outside India.

2. The Credit Agreement under the LOC is effective from July 25, 2013 and the date of execution of Agreement is June 21, 2013. Under the LOC, the last date for opening of Letters of Credit and Disbursement will be 48 months from the scheduled completion date(s) of contract(s) in the case of project exports and 72 months (June 20, 2019) from the execution date of the Credit Agreement in the case of supply contracts.


3. Shipments under the LOC will have to be declared on GR / SDF Forms as per instructions issued by the Reserve Bank from time to time.


4. No agency commission is payable under the above LOC. However, if required, the exporter may use his own resources or utilize balances in his Exchange Earners’ Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category- l (AD Category-l) banks may allow such remittance after realization of full payment of contract value subject to compliance with the prevailing instructions for payment of agency commission.


5. AD Category-I banks may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain full details of the Line of Credit from the Exim Bank’s office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005 or log on to www.eximbankindia.in.


6. The Directions contained in this circular have been issued under sections 10(4) and 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/2013-14/177

RBI/2013-14/178 A.P. (DIR Series) Circular No. 22 dated 12-08-2013

Reserve Bank Of India

A.P. (DIR Series) Circular No. 22

August 12, 2013

To,

All Category - I Authorised Dealer Banks

Madam / Sir,

Exim Bank's Line of Credit of USD 300 million to the Government of the Federal Democratic Republic of Ethiopia

Export-Import Bank of India (Exim Bank) has entered into an Agreement dated June 13, 2013 with the Government of the Federal Democratic Republic of Ethiopia, for making available to the latter, a Line of Credit (LOC) of USD 300 million (USD Three hundred million only) for financing eligible goods, including machinery and equipment and services(including preparation of the Detailed Project Report) including consultancy services from India for the purpose of financing new Ethio-Djibouti Railway Line [the Asaita-Tadjourah portion] Project in Republic of Ethiopia/ Republic of Djibouti. The goods, services, machinery and equipment including consultancy services from India for exports under this Agreement are those which are eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this Agreement. Out of the total credit by Exim Bank under this Agreement, the goods and services including consultancy services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India and the remaining 25 percent goods and services may be procured by the seller for the purpose of Eligible Contract from outside India.

2. The Credit Agreement under the LOC is effective from July 15, 2013 and the date of execution of Agreement is June 13, 2013. Under the LOC, the last date for opening of Letters of Credit and Disbursement will be 48 months from the scheduled completion date(s) of contract(s) in the case of project exports and 72 months (June 12, 2019) from the execution date of the Credit Agreement in the case of supply contracts.


3. Shipments under the LOC will have to be declared on GR / SDF Forms as per instructions issued by the Reserve Bank from time to time.


4. No agency commission is payable under the above LOC. However, if required, the exporter may use his own resources or utilize balances in his Exchange Earners’ Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category- l (AD Category-l) banks may allow such remittance after realization of full payment of contract value subject to compliance with the prevailing instructions for payment of agency commission.


5. AD Category-I banks may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain full details of the Line of Credit from the Exim Bank’s office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005 or log on to www.eximbankindia.in/.


6. The Directions contained in this circular have been issued under sections 10(4) and 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/2013-14/178

INCOME TAX APPELLATE TRIBUANL : KOLKATA BENCHS : KOLKATA REVISED WEEKLY BENCH CONSTITUTION FROM 12/08/2013 TO 14/08/2013

[unable to retrieve full-text content]INCOME TAX APPELLATE TRIBUANL : KOLKATA BENCHS : KOLKATA REVISED WEEKLY BENCH CONSTITUTION FROM 12/08/2013 TO 14/08/2013 {ad} For more information...

Application for refund of duty/interest

[unable to retrieve full-text content]Application for refund of duty/interest {ad} For more information...

RBI/2013-14/176 A.P. (DIR Series) Circular No. 20 dated 13-08-2013

Reserve Bank Of India

A.P. (DIR Series) Circular No. 20

August 12, 2013

To,

All Category - I Authorised Dealer Banks

Madam / Sir,

Foreign Exchange Management Act, 1999 (FEMA) Foreign Exchange (Compounding Proceedings) Rules, 2000 (the Rules) - Compounding of Contraventions under FEMA, 1999

Attention of Authorised Dealers (ADs) and their constituents is invited to paragraph 7.2 of A.P. (DIR Series) Circular No. 56 dated June 28, 2010 wherein they were advised to ensure that the applications for compounding are submitted only after the transactions are complete and all the requisite approvals are in place. Of late, we have been receiving a number of applications for compounding of contraventions of FEMA, 1999 which are submitted without obtaining proper approvals or permission from the concerned authorities leading to avoidable correspondence with the applicants and also return of applications. In case the application has to be returned for this reason or any other reason, the application fees of Rs.5000/- received along with the application fees is also returned.

2. To expedite the refund of compounding fees in such cases, it has been decided to credit the same to the applicant’s account through NEFT. The applicants are advised to furnish their mandate and details of their bank account as per ANNEX along with the application in the prescribed format and other documents required to be submitted in terms of the instructions contained in A.P. (DIR Series)Circular Nos. 56 and 57 dated June 28, 2010 and December 13, 2011 respectively.


3. Further, the Annexes relating to Foreign Direct Investment, External Commercial Borrowings, Overseas Direct Investment and Branch Office / Liaison Office, as given in A.P.(Dir Series) Circular No. 57 dated December 13, 2011 , have also been modified to include the details of income-tax PAN and the activity as per NIC codes – 1987. It may please be noted that the application will be treated as incomplete without these details.


4. The applicants may also note to bring to the notice of the compounding authority change, if any, in the address/contact details of the applicant during the pendency of the compounding application with Reserve Bank.


5. Authorised Dealers may bring the contents of this circular to the notice of their constituents and customers concerned.


6. The directions contained in this circular have been issued under sections 10 (4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999).

Yours faithfully,

(Rudra Narayan Kar)

Chief General Manager-in-Charge

RBI/2013-14/176

DGFT Public Notice No.22/(RE 2013)/2009-14 dated 12-08-2013

GOVERNMENT OF INDIA

MINISTRY OF COMMERCE AND INDUSTRY

DEPARTMENT OF COMMERCE

PUBLIC NOTICE No. 22(RE-2013)/ 2009-2014

NEW DELHI, DATED THE 12^th August, 2013

Subject: Option to close cases of default in Export Obligation.

In exercise of powers conferred under Paragraph 2.4 the Foreign Trade Policy, 2009-2014, the Director General of Foreign Trade hereby provides a procedure to close cases of default in Export Obligation under (a) Duty Exemption Scheme (para 4.28 of the HBP v1and (b) EPCG Scheme (para 5.14 of HBPv1 RE-2012).

1. All pending cases of the default in meeting Export Obligation (EO) can be regularised by the authorisation holder on payment of applicable customs duty, corresponding to the shortfall in export obligation, along with interest on such customs duty; but the interest component to be so paid shall not exceed the amount of customs duty payable for this default.
   

   [Here is an example: Suppose the default in EO is 100%, this would mean the complete duty saved amount has to be refunded. The interest on this duty saved amount has to be calculated from the date of import till the date of payment. The interest component under this dispensation would be limited to the duty saved amount. If the duty saved amount were Rs. 150, then the interest component would be limited to Rs. 150 and therefore for regularising this case the maximum amount to be paid by the authorisation holder would be Rs. 300. However, for the same duty saved amount of Rs. 150, if the default in EO were 30%, then the corresponding duty saved amount becomes Rs. 45 (30% of Rs. 150). Hence the interest component will be limited to Rs. 45. Thus, duty + interest will not exceed Rs. 90 for this regularisation of 30% default in EO for a duty saved amount of Rs. 150.]

   
   


2. In line with the existing policy the customs duty could be paid either in cash or by way of debiting of any valid duty credit scrips issued under Chapter 3 of the Foreign Trade Policy. The interest component however, has to be paid in cash only.


3. Any authorisation holder choosing to avail this benefit must complete the process of payment on or before 31^st March 2014.


4. Necessary procedures including a system of filing required reports by the respective RAs would be indicated separately.

Effect of this Public Notice: An option is being provided for redemption/regularisation of old cases of EO default.

(Anup K. Pujari)

Director General of Foreign Trade

e-mail: dgft@nic.in

(Issued from F. No. 01/94/180/395/AM13/PC-4)

Assessee directed to file fresh application for stay as earlier request was decided without hearing

IT: Where Commissioner (Appeals), on stay application filed by assessee, passed order without hearing assessee, assessee was directed to file fresh application before Commissioner (Appeals), who would consider same and pass appropriate order

Madras HC declined to entertain writ against sec. 264 order as assessee had an alternate remedy of f

IT: Writ against sec. 264 order need not be entertained in view of alternative remedy of filing appeal

CBDT authorised 13 entities to issue tax-free bonds of 48,000 crores; interest rate linked to G-sec

IT : Section 10(15), Item (h) of Sub-Clause (iv) of The Income-Tax Act, 1961 - Exemptions - Interest on Bonds/Debentures - Specified Companies Authorized to Issue Tax-Free, Secured, Redeemable, Non-Convertible Bonds During F.Y. 2013-14 Subject to Specified Conditions

Recipient not liable to pay ST under reverse charge if it was already discharged by provider

ST: Recipient cannot be asked to pay service tax under reverse charge, if service tax discharged by service provider

Advances treated as unexplained can't be reshaped as deposits to levy penalty for violation of sec.

IT : Once booking advance received by constructor had been assessed as undisclosed income under section 68, same could not be considered as deposit for levy of penalty under sections 271D and 271E

Private schools seek withdrawal of service tax

Tamil Nadu Nursery, Primary, Matriculation and Higher Secondary Schools Welfare Association has appealed to Union Finance Minister P. Chidambaram to take steps for ensuring the withdrawal of service tax imposed on private schools.

The Commissioner of Central Excise had recently issued a circular to such schools asking them to register all auxiliary educational services and pay service tax on the fee collected for these services.

Schools will have to pay service tax for food, transportation, extra-curricular activities, excursions and field trips.

Association general secretary G. Krishnaraj told journalists here on Saturday that the 12 per cent service tax imposed by the Centre would place a huge burden on small and medium schools.

These schools were already facing financial constraints owing to the “low fee levels” fixed by the School Fee Determination Committee headed by retired High Court Judge S.R. Singaravelu.

He also made a plea to Chief Minister Jayalalithaa to remove some of the State taxes on private schools and restore the concessions that were scrapped in recent years.

The association passed a resolution calling upon private schools to join it in a State-wide protest on August 26 to press their demands.

Further, they also requested the committee formed by the Department of School Education to look into land requirements for private schools to consider fixing the norms based on the numbers of students at the schools.

Schools must be given time till the next academic year to implement the committee’s recommendations, the association said.

India to reserve 30 percent of tax free bonds for sovereign funds

India will allow sovereign wealth funds to invest up to 30 percent in the tax free bonds to be sold by state-run infrastructure companies, Finance Minister P Chidambaram said on Monday.

The government has allowed state-run companies to sell about 500 billion rupees worth of tax-free bonds in the current fiscal year 2013/14.

(Reporting by Rajesh Kumar Singh; Editing by Anand Basu)

Rupee Weakens 0.7% Against Dollar

12-Aug-2013

Mumbai: The rupee gave up all its early gains to end weaker against the dollar on Monday as banks covered their positions on the US currency, disappointed by the lack of details in the finance minister’s speech to Parliament on Monday.

The rupee ended at 61.28 per dollar, down 0.68% from the previous close of 60.86. It had earlier opened at 60.51 per dollar and touched a high of 60.49 and a low of 61.30.

Finance minister P. Chidambaram told Parliament that India would seek to reduce imports of gold, silver and “non-essential” imports, while also curbing demand for oil.

The finance minister also proposed to raise funds abroad, allowing public sector financial firms to sell debt to finance long-term infrastructure projects, raising money via deposits targeted at Indians living overseas, and liberalising guidelines for external commercial borrowings.

Chidambaram also vowed to contain the current account deficit at $70 billion for the fiscal year ending in March, or an estimated 3.7% of the gross domestic product (GDP), down from a record 4.8% in the previous fiscal year.

However, dealers bought back dollars sold earlier in the day because the announcement didn’t contain more specific measures.

“He told us what we already knew. The announcements did not say how they are going to act and by when can we expect some action. It was done in a noisy parliament and the market will react positively only when we see some details,” said a dealer with a UK-based bank.

Since January this year, the rupee has weakened 10.25% and has lost the most among Asian currencies after the yen.

The dollar index, which measures the US currency’s strength against major currencies, ended at 81.402, up 0.34% from the previous close of 81.126.

India’s benchmark Sensex ended at 18,946.98 points, up 0.84% from the previous close.

The 10-year bond ended at 8.282%, up 1.73% or 0.141 basis points (bps) from the previous close of 8.141%. It opened at 8.229% and touched a high of 8.288% and a low of 8.187%.

The call money rate ended at 10.25%, up 2.50% or 0.25 bps from the previous close of 10%. It opened at 10.25 and touched a high of 10.50% and a low of 10.10%.

Source:-www.livemint.com

India Initiated 159 Anti-Dumping Cases Against China

12 Aug, 2013

NEW DELHI: India has initiated as many as 159 anti-dumping investigation cases since 1992 against China, with which it has a huge trade deficit, Parliament was informed today.



"The Directorate General of Anti-Dumping and Allied Duties has initiated anti-dumping investigations into 290 cases as on date involving various countries since 1992. Out of these, 159 cases involve imports from China," Commerce and Industry Minister Anand Sharma said in a written reply to the Lok Sabha.



He said the Chinese products on which anti-dumping duty has been imposed include sectors such as chemicals and petrochemicals, pharma, steel, fibres and consumer goods.



Countries initiate an anti-dumping probe to determine whether their domestic industries have been hurt because of surge in cheap imports of any product. As a counter-measure, they impose duties under the multilateral regime of the World Trade Organization.



The duty is aimed at ensuring fair-trade practices and creating a level-playing field for domestic producers vis-a- vis foreign producers and exporters resorting to dumping.



Unlike the safeguard duty, which is levied in a uniform way, anti-dumping duty varies from product to product and country to country.



Further, Sharma said that during April-June quarter of the current fiscal, India's trade deficit with China stood at $9.64 billion. It was $40.8 billion in 2012-13.



In 2011-12, the deficit was aggregated at $39.44 billion, up from $27.99 billion in 2010-11.



Major items of Indian exports to China include raw cotton and yarn, iron ore, minerals, plastic, spices, machinery, petroleum. Import products include electric goods, machinery, chemicals, project goods, fertiliser, iron and steel, transport equipment and electric machinery.



In an another reply, Sharma said that recently an 8- member tea delegation from Iran has visited India.



"It is expected that there will be an increase in export of tea to Iran in the months ahead," he said.



In 2012-13, as per provisional figures, India's tea exports to Iran stood at 16.9 million kg (Rs 233.88 crore). In quantity terms, Iran accounts for eight percent of India's total tea exports and 10 per cent in value terms.



India's total production 2012-13 stood at 1,135.07 million kg. Out of this, the country exported 220.46 million kg.

Source:-economictimes.indiatimes.com

India: 40-50% Of Apples Are Imported

12-Aug-2013

European fruits and Chinese apples are a threat to the local fruit industry, Himachal Pradesh Chief Minister Virbhadra Singh said on Sunday.



"There is a need for diversification of fruit cultivation and plantation of new varieties of apples and other fruits to compete in the global market," Singh said at a conference organised by the Himachal Pradesh Horticultural Services Association.



He said horticulture experts and officials should think about meeting the future needs of productivity and quality.



Himachal Pradesh is a major apple-producing State. This season, it is heading towards a bumper production of over 35 million apple boxes of 20 kg each.



Trade representatives say 40-50 percent of the country's apple market is captured by imported ones, mainly from China, US, New Zealand, Australia and Chile.



Singh said the State has diverse agro-climatic zones that facilitate the cultivation of almost all temperate and sub-tropical fruits like apples, pears, cherries, peaches, plums, kiwis, mangos, citrus fruits and strawberry.



He said European fruits and Chinese apples were posing threat to Himachal's apple industry and Y.S. Parmar University of Horticulture and Forestry and the state horticulture department should import new varieties of fruits to compete with global markets.



The chief minister also asked horticulture officers to guide farmers on how to grow flowers as per the demands and the market requirements.



To promote mango cultivation, he said a blanket ban was imposed on cutting of mango trees during his previous tenure but trees were being axed illegally.



Singh said the climate in middle and upper hills was conducive for the production of off-season vegetables and farmers should make use of this.



He said efforts were being made to create and encourage infrastructure for post-harvest handling and processing of horticulture produce.



Apple harvesting has begun in the state and will pick up in the next few weeks. It continues till November.



According to the Directorate General of Commercial Intelligence and Statistics, the import of apples had increased by over 50 percent from 134,576 tonnes in 2010-11 to 199,262 tonnes in 2012-13.



It says China alone exported 73,648 tonnes of apples to India, out of the total Indian import of 188,071 tonnes in 2011-12.

Source:-www.freshplaza.com

Cotton Exports Dip By 31 Pc In 2012-13; Imports Rise

August 12, 2013

Cotton exports dropped by 31 per cent to 9.8 million bales in 2012-13 marketing year that ended last month, but imports rose slightly to 1.47 million bales in the same period, a report said.



The world’s second largest cotton producer is expected to import more natural fibre in the coming months, it noted. “Preliminary data suggests that exports reached 9.8 million bales through the end of July, the final month of the 2012-13 marketing year,” the US Department of Agriculture (USDA) said in its latest report. The outbound shipments stood at 14.17 million bales in the 2011-12 marketing year that runs from August to July.



ALSO READ: Exports likely to revive in second quarter



One bale contains 170 kg of cotton fibre. Major exports markets were China, Bangladesh and Vietnam. On the other side, the country’s cotton imports rose by two per cent to 1.47 million bales in 2012-13 marketing year, as against 499,524 bales in the previous year.



“More than 60 per cent of import shipments in July originated from West Africa suggesting that, as predicted, mills are covering their needs with imports. Imports are expected to continue over the next few months,” the USDA said.



The state-owned Cotton Corporation of India (CCI) has sold nearly 50 per cent of its stocks and higher volumes of cotton imports are expected over the next few months, it said.



CCI has sold 1.2 million bales of cotton so far and has stock around 1.1 million bales. The agency continues to auction stocks on a daily basis and will continue to release stocks in the 2013-14 marketing year, provided there are enough buyers, it added. While India’s overall consumption forecast was 28.81 million bales for 2012-13, the monthly consumption averaged over two million bales since December 2011. Trade sources indicate that domestic consumption will remain strong as small to medium sized mills seek to cover their position till September this year, the report said.



Larger mills are facing fewer liquidity issues and are largely covered with either imports or domestic supplies through October when new-crop cotton arrive, it added. India is estimated to have produced 33.8 million bales in 2012-13 crop year (July-June), slightly lower than last year.

Source:-www.business-standard.com

SAT imposed penalty on Registrar for multiple allotment and delayed redressal of investor's grievanc

SEBI: Where there were innumerable cases of mismatches, multiple allotments made to same person, delayed redressal of grievances by appellant, Registrar to an Issue and Share Transfer Agent, penalty imposed by adjudicating officer was justified

Exclusive accounts to get credit of funds received on sale of shares acquired under portfolio Invest

FEMA/ILT : FEM (Transfer or Issue of Security by A Person Resident Outside India) (Third Amendment) Regulations, 2013 - Amendment in Schedule 3

Transaction at uniform global price can't be assumed to be at ALP unless comparability analysis is d

IT/ILT : Purchase transactions could not be held to be at arm's length where no comparability analysis was done, simply because AE supplied products at global price list

Concealment penalty to be levied when unexplained credit is added to taxable income

IT: Amount having been added under section 69A nonetheless is to be treated as income of assessee and unless assessee prove that there was no concealment, penalty is to be imposed

Amount of excise duty refunded to create employment opportunities was a capital receipt - HC

IT: Where excise duty refund was not a production or operational incentive, it was a capital receipt not chargeable to tax

HC dismissed writ petition against penalty order u/s 271FA as assessee had an alternate remedy

IT: Where an alternative remedy by way of appeal was available to assessee against penalty order under section 271FA, writ petition on issue of penalty was not maintainable

Onus to prove creditworthiness of share applicants isn't on assessee once their identity is establis

IT: Where assessee established identity of share applicant, burden of proving creditworthiness was not on assessee

Sec. 158BD requires filing of return to escape penalty which can't be deemed to fulfilled on filing

IT: An assessee must not file a nil return upon receipt of notice under section 158BD, so as to avoid penalty

Service tax was leviable on repair service provided by manufacturer of transformers to its clients

ST : Extended period is invocable to recover service tax where a true and fair construction of relevant statutory provisions leaves no doubt that assessee was liable to service tax

FORM A-1 New Central Excise Registration form. To fill this form Please see Instruction-1 and Instruction-2

Duplicate Form A-1 APPLICATION FOR CENTRAL EXCISE REGISTRATION (see rule 9 of Central Excise Rules, 2002) New Registration Amendments to information pertaining to existing Registrant Registration Number in case of existing Registrant Part I: Identification of business requiring Registration (Manufacturing, Warehousing, hundred percent Export Oriented Undertaking, Unit in Export Processing Zone , First Stage Dealer, Second Stage Dealer ) 1. Name of the Registrant (Please see instruction No. 5) 2. Details of Permanent Account Number (PAN) (Please see instruction No.6) Whether PAN has been issued by the Income Tax (i) Yes No Department (ii) If yes, the PAN (iii) Name of the Registrant (as appearing in PAN) (iv) If PAN is not available, whether applied for PAN Yes No 3. Category (tick only one box) Manufacturer Warehouse Export Oriented Unit within Export Processing Undertaking Zone Manufacturer's Depot Dealer 4. Constitution of business (tick only one box) (Please see instruction No. 7) Proprietorship Partnership Registered Company Unregistered Company Trust Society Others 5. Address of business premises (i) Name of Premises/Building (ii) Flat/Door/Block No. (iii) Road/Street/Lane (iv) Village/Area/Locality (v) Block/Taluk/Sub-Division/ Town (vi) Post office (vii) City/District (viii) State/Union Territory (ix) PIN (x) Telephone Nos.: (Please see instruction No.8) (xi) Fax No. (Please see instruction No. 8) xii) E-mail Address 6. Define boundaries of the premises to be Registered (Please see instruction No.9) (i) North (ii) East (iii) West (iv) South 7. Details of property holding rights of the Registrant with respect to the premises sought to be Registered (tick only one box) Ownership Lease/Rent If owned whether mortgaged/ hypothecated: Yes No 8. Estimated investment in land, plant and machinery (Rupees in Lakh): 9. Address of Head Office if different from that given at S.No. 5 above (i) Name of Premises/Building (ii) Flat/Door/Block No. (iii) Road/Street/Lane (iv) Village/Area/Locality (v) Block/Taluk/Sub-Division/ Town (vi) Post office (vii) City/District (viii) State/Union Territory (ix) PIN (x) Telephone Nos.: (Please see instruction No.8) (xi) Fax No. (Please see instruction No. 8) (xii) E-mail Address 10. Name, designation and address of the person signing this Application Form and of the authorised person(s): (Please see instruction No.10) (i) Name (ii) Designation (iii) Name of Residential Premises/Building (iv) Flat/Door/Block No. (v) Road/Street/Lane (vi) Village/Area/Locality (vii) Block/Taluka/Sub-Division/ Town (viii) Post office (ix) City/District (x) State/Union Territory (xi) PIN (xii) Telephone Nos.: (Please see instruction No. 8) (a) Office (b) Residence (xiii) Fax No. (Please see instruction No. 8) (xiv) E-mail Address 11. Please see Details of Bank Accounts used for business transactions by the Registrant ( instruction No. 11) (a) Number of Bank Accounts (b) Account 1 (i) Name of the Bank (ii) Name of the Branch (iii) Account No. (c) Account 2 (i) Name of the Bank (ii) Name of the Branch (iii) Account No. Part II: Business Transaction Number obtained from other Government Agencies/Departments 12. Details of Business Transaction Numbers obtained from other Government Agencies/Departments (Please see instructions No. 12 and 13) (i) Customs Registration No. (BIN No.) Yes No If yes, give details Directorate General Foreign Trade's Import (ii) Export Code No. Yes No If yes, give details (iii) Sales Tax Registration Nos. (a) State Sales Tax No. Yes No If yes, give details (b) Central Sales Tax No. Yes No If yes, give details (iv) Registrar of Company's CIN No. Yes No If yes, give details Part III: Proprietor/Partners/Chief Executive Officer /Chairman /Managing Director/Trustee etc. 13. Mode of business (Please see instruction No. 14) (i) Name (ii) Designation (iii) Name of Residential Premises/Building (iv) Flat/Door/Block No. (v) Road/Street/Lane (vi) Village/Area/Locality (vii) Block/Taluk/Sub-Division/ Town (viii) Post office (ix) City/District (x) State/Union Territory (xi) PIN (xii) Telephone Nos.: (Please see instruction No. 8) (a) Office (b) Residence (xiii) Fax No. (Please see instruction No. 8) (xiv) E-mail Address (xv) PAN (issued by the Income Tax Department) PART IV: Major Excisable goods to be manufactured, warehoused or traded/ Major inputs 14 Major excisable goods manufactured, warehoused or traded (description and CETSH) (Please see instruction No. 15 ) (i)______________________ (ii) ____________________ (iii) ____________________ 15. Major excisable goods used in the manufacture of final product (description and CETSH) (Please see instruction No. 15) (i)______________________ (ii) ____________________ (iii) ____________________ DECLARATION I, ________________________________________________ hereby declare that the information given in this Application Form is true, correct and complete in every respect and that I am authorised to sign on behalf of the Registrant. (Please tick appropriate box) (a) For new Registration/Amendment to Registration Certificate I would like to receive the Registration Certificate ­ by mail at the address specified at S. No. ______ of Part-I by Hand (b) For amendments to information pertaining to existing Registrant The above mentioned amendments are with effect from / / (Signature of the applicant/authorised person with stamp) (Please see instruction No. 16 ) Date: Place: ACKNOWLEGEMENT (To be given in the event Registration Certificate is not issued at the time of receipt of Application for Registration) I hereby acknowledge the receipt of your Application Form (a) For new Registration / amendments to existing Registration Certificate As desired, the New Registration Certificate will be sent by mail/ handed over to you in person on / / (b) For amendments to information pertaining to existing Registrant Signature of the Officer of Central Excise (with Name & Official Seal) Date: Instructions for filling up the Application Form for Registration 1) This Application Form should be used for applying for Registration as also for informing any corrections/ changes in the information, subsequent to Registration. Any change in the information subsequent to Registration, except those under Part IV, must be brought to the notice of the Central Excise Department. Such changes should be indicated by ticking the relevant box at the top of the Form, providing the Registration Number and filling up only such information that has undergone change leaving the boxes for information not to be amended blank. 2) The Application Form has to be filled in Duplicate, and submitted to the Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, having jurisdiction over the place of business. 3) Export Oriented Units and Units in Export Processing Zones in the Port Towns/cities which are in the jurisdiction of Commissioners of Customs would submit the Application Form to the concerned Deputy Commissioner of Customs or Assistant Commissioner of Customs. 4) After entering the relevant details, extra boxes in a field may be left blank. Also one box may be left empty after completion of each entry. For example more than one telephone number may be given as under: 0 1 1 3 0 9 2 8 2 9 0 1 1 3 0 9 2 8 3 0 5) The name should be the name and style in which the Registrant is likely to carry out business from the premises seeking to be registered. Please do not mention any prefixes such as M/s, Mr., Sh., etc 6) An attested copy of PAN allotted by the Income Tax Department should be enclosed; in case PAN has not been allotted attested copy of the acknowledged application for PAN should be enclosed. 7) A registered company means, a company registered with the Registrar of Companies under the Companies Act, 1956 (1 of 1956) and having a CIN number. Unregistered means a company that is not so registered 8) Telephone and fax numbers to be given with NSD code, without leaving a gap. 9) The description of the boundaries of the premises to be registered, should correspond to the one given in the Land Records. 10) If there are more than one authorized persons, information is to be provided in respect of all in a separate sheet in the same box format. 11) In case the Registrant has more than one Bank Account, for transacting his business, only two accounts with the maximum transactions must be mentioned. 12) The details relevant to the Registrant only are to be filled. The details of businesses carried out from other premises need not be filled. 13) If the status of the company is shown as Registered Company in Part I 4, then the information in Part II 12 (iv) is mandatory. 14) The maximum number of persons, whose details are to be provided, should not exceed seven. In the case of a partnership firm, details of partners are to be provided; in case of Registered /unregistered company, the details of its Chief Executive Officer /Chairman and Managing Director/Managing Director/Chairman/ key Directors as per relevance are to be provided; in the case of Society, the details of its President, key Executive Members, are to be provided; in case of any other type of business, the details of key personnel engaged in management of the business are to be provided. If more names are to be provided the information shall be provided in respect of all in a separate sheet in the same manner. 15) The details of the three major excisable goods/inputs likely to be manufactured/used/traded should be mentioned. 16) The instructions in respect of the person signing the Application for registration are as under: (a) The Application may be signed by the Registrant himself or by his authorised agent having general power of attorney. (b) The person signing the Application must be a holder of Permanent Account Number (PAN) allotted by the Income Tax Department. (c) In case of unregistered partnerships, all the partners should sign the application. (d) In case of registered Partnership the Managing Partner or other partners so authorised in the Partnership Deed may sign the application.";

HC directed parties to maintain status quo it recovery proceedings till disposal of pending stay app

IT : Parties were directed to maintain status quo in recovery proceedings till disposal of pending stay petition

CIT vs. HCIL Kalindee ARSSPL (Delhi High Court)

S. 271(1)(c) penalty is valid even if claim is disclosed and as per CA certificate The assessees claimed deduction u/s 80IA on the ground that it has executed an eligible infrastructure project. A copy of Form No.3CB, 3CD and Form No.10CCB was filed with the return in support of the claim. In the assessment order, the AO denied 80-IA deduction on the ground that the assessee had not executed the work but had given a sub-contract to another party and that it was not eligible u/s 80-IA(13). The assessee accepted the denial of the claim. The AO levied penalty u/s 271(1)(c) for filing inaccurate particulars of income which was upheld by the CIT(A). The Tribunal relied on Reliance Petroproducts 322 ITR 158 (SC) and deleted the penalty on the ground that the claim for deduction u/s 801A was on the basis of a certificate of the CA, was bona fide and all the material facts relevant thereto had been furnished. On appeal by the department to the High Court, HELD reversing the Tribunal: While it is true that the Income-tax Act, 1961 is one of most vexed and complicated legislation and requires highest degree of interpretative skills and there are divergent views on interpretation of its provisions and while it is also true that penalty for concealment cannot be imposed merely because assessee’s interpretation or claim is rejected, such cases have to be distinguished from cases where the claim of the assessee is farcical or farfetched. Dubious and fanciful claims under the garb of interpretation, are a mere pretense and not bona fide. Absurd or illogical interpretations cannot be pleaded and become pretense and excuses to escape penalty. “Bona fides” have to be shown and cannot be assumed. The fact that the claim for deduction u/s 80IA was duly supported by the Chartered Accountant’s Certificate and prescribed forms signed by the CA cannot absolve and protect an assessee who furnishes in-accurate particulars because then in all cases where a form/certificate is furnished by the CA but a wrong claim of deduction is made, no penalty u/s 271(1)(c) can be imposed. Merely because the assessee complies with the statutory procedural requirement of filing the prescribed form and certificate of the Chartered Accountant cannot absolve the assessee of its liability if the act or attempt in claiming the deduction was not bona fide. On facts, the assessee’s claim was not tenable due to the Explanation to s. 80IA (13) which stipulates that benefit is not available to a contractor carrying on a works contract. The assessee has not shown any “tangible material” or basis as to why a clear statutory provision which excludes works contracts was ignored.

Scheme framed for avoidance of ST can't be curbed in absence of anti-avoidance provisions - Australi

ST : In case of a scheme framed by builders, whereby one builder constructs partial property and sells to other without any liability to service tax, and other completes it and pays service tax on value-addition/services provided by it, thereby, avoiding service tax on value-addition made by first builder, such practice cannot be curbed owing to lack to anti-avoidance provisions

CIT(A) can allow sec. 80-IA benefit not claimed in return if losses turn into income after assessmen

IT : Where in appellate proceedings, assessee raised an alternative contention that in case its income was found positive, it would be entitled to deductions under sections 80HHC and 80-IA and Commissioner having accepted said contention, remanded proceedings for verification of facts to Assessing Officer, there was no error in said order and, therefore, it was to be upheld

No TDS from sum paid for transmission of gas if it is treated as part of cost of gas

IT: Where transmission charges paid by assessee for supply of gas to oil company was treated as part of cost of gas, provisions of section 194C and 194J were not applicable

Synchronized reversal trades in scrip of a company slammed as scrip manipulation

SEBI: Where appellants had executed synchronised reversal trades, cross trades in scrip of company, appellants were guilty of manipulating price of scrip

Scheme framed for avoidance of ST can't curbed in absence of anti-avoidance provisions - Australian

ST : In case of a scheme framed by builders, whereby one builder constructs partial property and sells to other without any liability to service tax, and other completes it and pays service tax on value-addition/services provided by it, thereby, avoiding service tax on value-addition made by first builder, such practice cannot be curbed owing to lack to anti-avoidance provisions

Have you missed the tax filing deadline?

The surge in the number of efilers on 31 July, the last day for filing income tax returns, overloaded the system and forced the government to extend the deadline to 5 August. This last-minute rush has become a regular feature in the past few years. The system gets overloaded because a large number of taxpayers wait till the last day. In the melee, many of them are unable to file by the due date. The rush was greater this year because of the new rule that if your taxable income is 5 lakh and above, it is mandatory to e-file your return. Also, if you have foreign assets, you have to take the online route even if your income is below 5 lakh. There are other reasons why a taxpayer may miss the filing deadline. There could be mistakes in their Form 16 or TDS details, which could not be resolved in time. It is also possible that the details of foreign assets, which have to be mentioned in the tax returns, were not available, or perhaps, the taxpayer was too ill to file his return. If, however, you have missed the extended deadline as well, the good news is that the Income Tax Department allows you to file your returns till 31 March 2014, the last day of the assessment year. However, missing the filing deadline is not an earth shattering event. The online filing data reveals that the biggest surge in tax filing is witnessed not on 31 July but on 31 March the next year. This year, for instance, the peak daily rate of receipt of returns was clocked on 31 March when 7.5 lakh taxpayers filed their returns. If all taxes are paid, a taxpayer will not face any penalty or get a notice for non-filing . However, if there is some tax to be paid, he will have to shell out a 1% late payment fee for every month of delay since April 2013. If the tax due is more than 10,000, the taxpayer should have paid an advance tax. Advance tax is payable in three tranches—30 % is to be paid by 15 July of the financial year, 60% by 15 December and 100% by 31 March. If advance tax has not been paid, the penalty per month will be applicable from the due date of the advance tax. There is more good news for the lazy taxpayer. If you miss the 31 March 2014 deadline, you can still file the return. This means you can file last year's return as well. However, such returns will be treated as belated and the assessing officer can levy a penalty of 5,000 for late filing. Though the tax laws give you a grace period if you file your return late, you also forego some of your rights as a taxpayer For one, you cannot modify your tax return if it has been filed after the due date. If you have filed by the due date ( August for this year), you can modify it any number of times before the end of the assessment year or till the return is assessed. However, after the due date, you are not allowed to modify it. So if you miss any deduction or exemption, you can' claim it later. You also cannot carry forward any short-term or long-term losses if you have filed after the due date. The taxpayers who file by the due date can carry forward capital losses and adjust them against future capital gains. They can also carry forward these losses up to eight financial years. So, if you suffered capital losses in 2012-13 , these can be adjusted against gains made till 2020-21 . This benefit is not available to the late filer.

Receipts from letting out business centre are taxable as income from house property

IT: Where business centre is generally operational and workable for temporary offices, income received by assessee from renting of office premises to a single party was assessable as income from house property and not business income

Shareholder can’t file petition for oppression solely on basis of resolution not approved in the AGM

CL : A shareholder cannot take benefit of resolution passed by board of directors for issuance of additional shares to maintain his petition under sections 397 & 398 when resolution had not been approved in AGM and accepted by statutory authority

Onion Prices Rise To Rs 55-60/Kg, Hike Bring 'Tears' In Eyes Of People

11-Aug-2013

Vegetable sellers said the reason for the spurt in the price of onion was shortage of onions at the supply source.

Consumers across the country feel the pinch of rising prices of onion, as erratic rainfall in growing areas and thin stocks coupled with high demand pushes the prices further.

Vegetable sellers said the reason for the spurt in the price of onion was shortage of onions at the supply source.

Diwaker, a vegetable vendor in New Delhi said: “One of the main reasons for hike in onion prices is the shortage of supply from Madhya Pradesh. The ongoing shortage and price hike calls for an immediate solution and for this we may have to import onions from abroad to meet the demand of the consumers.

Onions are being sold at Rs. 55-60 per kilogram in Delhi.

Higher onion prices may also create fresh problems for the Government, which has been struggling over the past several months to contain inflation.

According to the vegetable vendors the price of onions is likely to go up further in the near future.

A vegetable vendor Suresh Choudary from Mumbai also said that the hike in onion price is mainly due to shortage of supply.

“There is not enough supply to meet the demand of the consumers. Two days ago the price of onions was Rs. 40 per kilogram and now it is being sold at Rs. 44-50 per kilogram and every 10 kilogram of onion is being sold for Rs. 450. And the prices are bound to increase more,” he said.

The rise in onion price is adversely affecting the household budget of the consumers.

One of the customers Jaysantha said that the onion prices have risen from Rs. 40 per kilogram to Rs. 60 per kilogram and added that it has become very difficult to buy onions.

Onion rates at Lasalgoan, in Nashik District which is the Asia's biggest wholesale market for onions have increased to Rs 31.50 per kilogram from Rs 24 per kilogram on July 31.

According to reports, wholesale onion price in Lasalgaon had reached to this level during December 2010-January 2011. Retail prices had then skyrocketed to about Rs 100 per kilogram across the country, forcing government to curb exports.

However, on account of shortage of supply, onion prices in Punjab, Haryana and Chandigarh have also shot up to Rs 50-55 per kilogram across retail markets.

Meanwhile in NCR, onion is being sold at Rs. 45 per kilogram at Mother Dairy's 350 Safal stores.

Source:-www.dnaindia.com

Rupee Rises Against Dollar Ahead Of Iip, Inflation Data

Mumbai: The Indian rupee on Monday opened higher at 60.51 per dollar against its Thursday’s close of 60.86.

The government is expected to announce some measures, including a possible dollar bond issuance, soon this week.

At 9.09am, the local currency was trading at 60.66 per dollar, up 0.34%. India’s equity benchmark Sensex was trading at 18,853.31 points, up 0.46%.

On Monday, the government will issue the index of industrial production (IIP) and consumer price index (CPI) inflation data at 5.30pm.

A Bloomberg poll showed that IIP will fall 1.1% for June as against a 1.6% decline in May, while CPI will be 9.7% for June compared with May’s 9.87%.

Source:-www.livemint.com

Exports To Bangladesh, Nepal Face Procedural Delays: Eepc India

KOLKATA: Exports to Bangladesh through Petropole land port are facing delays in clearances from regulatory authorities such as customs resulting in very high transaction costs making Indian shipments uncompetitive, EEPC India has said.

In a presentation to the government, the EEPC India (earlier known as the Engineering Export Promotion Council) said that shipments are sent regularly to Bangladesh through Petrapole land port. These consignments are often facing delay for clearing due to over burden, holidays etc leading to heavy transportation detention charges being levied on them. The "unwarranted expenses" are usually transportation detention charges. Different exporters have reported different costs on this count. According to one assessment, these expenses were Rs 700 per day and are now Rs 800 per day. In that case, the detention time in the recent supplies is 8-10 days which is Rs 6,500 - Rs 8,000 for the whole consignment.

"The solution lies in round the clock 24X7 land port facility and this needs to be upgraded," EEPC India chairman Aman Chadha said. According to the EEPC India presentation, for shipments to Bangladesh by Barge, the current practice is that for each shipment, Customs commissioner's permission is required. It is suggested that the current practice be done away with as it is time consuming.

The situation in regard to exports to Nepal is somewhat similar. For shipments to Nepal by road through ICD Birgunj, Raxaul, Sanauli and Jogbani, Customs authorities insists on different kind of furnishing of papers which are not necessary during the time of processing of Bill of exports. The Bill of Exports are allowed to be processed only when materials physically cross the border.

"It is suggested that the Bill of Exports (BOE) be allowed to be processed before the material physically arrives as the BOE is valid till 15 days and no insistence for furnishing of the technical paper called ARE 1 should be made during the time and processing of BOE."

The EEPC said that procedures for exports in general through different ports have become cumbersome. There are approximately about 24 steps required by the exporter from the time of receiving an export order to remitting of Foreign Agency Commission including claiming of export incentives.

"The process takes 6 months at the minimum to complete this cycle. In addition, there are 8 Principal documents, 7 auxiliary documents and 7 regulatory documents. It is estimated that more than 100 signatures are required and about 16 to 18 hrs required approximately completing this process. The total transaction cost as a percentage of FOB value for a medium sized export consignment of around USD 20, 000 would be between 8.89 per cent for shipments closer to the ports and 11.89% for shipments which are from inland cities".

One possible way could be to think of one Single Export Document. Such a system has been tried in many other countries, EEPC India Chief said. It said when exports have been declining despite currency depreciation and the government is battling with the current account deficit, the country can ill-afford delays in shipments and incurring heavy transaction costs.

Source:-economictimes.indiatimes.com

Electronics Export Council To Unveil Africa-Focus Strategy

11th August 2013

The Electronics and Computer Software Export Promotion Council (ESC), sponsored by the Indian government, will soon evolve a multi-pronged strategy to tap the huge potential for export of electronics hardware and software to the African region.

Factoring in inputs from all stake-holders -- industry, the government and the trading community, the strategy will clearly delineate a country-specific approach for increasing the penetration to these markets, ESC said in a statement here Sunday.

“The region (Africa) is of paramount importance to future growth of the Indian electronics and IT sector on account of the fast digitalization programme embarked by some of the African countries,” said D.K. Sareen, executive director, ESC.

The ESC's Africa strategy will divide the continent into five regions depending on their geographical proximity. Each geographical unit will be studied in depth to ferret out the potentials, road-blocks and the likely results that can be achieved in a conceivable time-frame, Sareen said.

To start with, East Africa will be the geographical unit that will be taken up for intense study.

ESC is organising a meeting here this week with heads of African missions to collate their views for joint working to tap the electronics and IT sector for mutual development.

The 14th edition of ESC's flagship event "Indiasoft", being held in Mumbai in November this year, will be attended by 35 delegates from 13 countries including Ghana, Nigeria, Burkina Faso and Tanzania, which are making significant investments in the IT sector.

"ESC's initiative to evolve an Africa-focus strategy is to collate information from sources which are doing businesses with countries, irrespective of the presence of Indian missions (in those countries)," Sareen said.

Source:-newindianexpress.com

CUP method provides most direct comparison; should be preferred over other profit based methods, ITA

IT/ILT: Since CUP method provides most direct comparison, it is preferable to other profit based methods like TNMM

Government Considers Sops To Boost Export Of Auto Components

11 Aug, 2013

NEW DELHI: The government is considering giving incentives to the auto component industry to boost exports, with the Ministry of Commerce and the Department of Heavy Industry conducting a joint assessment of the sector.

"The automobile components industry, particularly exports, has been facing a tough time. Both the Ministry of Commerce and Department of Heavy Industry are doing an assessment of the sector with a view to give a push to exports," an official told PTI.

The auto component sector has been hurt by the slump in automobile demand, in both the domestic and export markets.

"Once the assessment is completed, both the ministries will see if incentives could be given to the sector," the official added.

The Automotive Component Manufacturers' Association of India (ACMA) has approached the Department of Heavy Industry to take steps to support the industry and address issues such as the high cost of borrowing and export incentives in the wake of rupee depreciation.

"The outlook (auto components exports) remains uncertain for the current fiscal as there is a weak demand globally," the official said.

The component industry has felt the hit of the drop in car sales, which fell for a record eighth month in a row in June. In the first quarter of this fiscal, passenger vehicles sales have dropped 7.24 per cent from 6,54,858 units in the same period in the previous fiscal.

Source:-economictimes.indiatimes.com

India Imports Urea Worth $ 614 Million During April-July

11 Aug, 2013

NEW DELHI: India imported over 2 million tonnes (MT) of urea in the first four months of this fiscal worth $ 614 million (about Rs 3,700 crore) to meet domestic demand, which is expected to further rise on good monsoon.

The country had imported 7.04 million tonnes of urea in the entire 2012-13 fiscal for nearly $ 3 billion, according to the Fertiliser Ministry data.

Out of 2 million tonnes of urea imported so far, the government has imported 1.34 million from OMIFCO, which is a joint venture project of IFFCO and Kribhco, with an offtake agreement. Another 0.69 million tonnes has been imported through state trading enterprises (STEs).

Urea is imported by three STEs - Indian Potash Ltd (IPL), MMTC and STC on behalf of the government to meet domestic shortfall. The country produces about 22 million tonnes against an annual domestic demand of 30 million tonnes.

According to data, import of P&K fertilisers (such as DAP and MOP) have touched 1.93 million tonnes in the April-July period of this fiscal.

India had imported 8.14 million tonnes of P&K fertilisers during last fiscal. Unlike urea, the demand of P&K nutrients is largely met through imports.

A Fertiliser Ministry official said the demand is expected to rise this year as sowing area rose on the back of good monsoon.

In 2012, urea demand was subdued due to drought in four states - Karnataka, Maharashtra, Gujarat and Rajasthan.

Urea is provided to farmers at a fixed subsidised maximum retail price (MRP) of Rs 5,360 per tonne.

The difference between the cost of production and MRP of urea is provided as subsidy.

Source:-economictimes.indiatimes.com