A parliamentary standing committee on coal and steel has recommended either a complete ban on iron ore exports or hiking the export duty high enough to minimize outflow of the precious raw material.
It expressed anguish more than one third (36.9%) of the total iron ore produced in the country was exported during 2011 to 2012. Despite the Planning Commission warning that the iron ore reserves in the country may not be sufficient to meet the domestic steel industry's demand beyond 25 years, an export of 486 million tonnes of the raw material worth INR 1.85 lakh crore during the 11th Plan is baffling.
The panel headed by Trinamool member of Parliament Kalyan Banerjee disapproved the iron ore export policy of the government and noted that even imposition of higher export duty was no solution for the long-term conservation of the ore required by steel industries in the country. It also disapproved the decision to reduce export duty on pallets to zero.
It said that imposition of higher export duty on iron ore fines and non-exemption of pellets from export duty will give an impetus to set up pelletisation plants in the country by stand-alone miners. Setting up of more pelletisation plants will also generate employment opportunities and will also generate more revenue in terms of value added products.
Source:- steelguru.com
Tuesday, 10 September 2013
House Panel Mulls Iron Ore Exports Ban From India
Indian Buyers Ditch Indonesian Coal Orders On Rupee Slump
10-Sep-2013
Jakarta: Indian buyers have reduced shipments from top thermal coal exporter Indonesia and are seeking to renegotiate contracts as a sharply lower rupee has driven up their import costs, Indonesian industry executives said on Tuesday. The fall in purchases from India is forcing Indonesian suppliers to seek other buyers or dump cargoes into the spot market, putting more pressure on international benchmark prices that are already near their lowest in four years. India buys about a fifth of Indonesia’s exports of coal, which is traded internationally in U.S. dollars.
Southeast Asia’s biggest economy aims to ship about 317 million tonnes of its expected output of around 400 million tonnes this year, according to government and industry sources. Reuters Reuters Several Indonesian companies have scrambled to find new buyers on the spot market after deals with Indian buyers fell through, the Indonesian Coal Mining Association (ICMA) said. “Some buyers have cancelled contracts or sought to renegotiate contracts, because now it’s actually cheaper for them than fulfilling their obligations,” ICMA commercial committee chairman Pandu Sjahrir told Reuters.
“Sellers have been dumping into the market. They have to choose – should I take (buyers) to court or renegotiate with them or just sell it in the spot market?” The ICMA official did not give the volumes impacted by the Indian buyers’ moves and those could not be immediately ascertained by Reuters. The rupee has lost 18 percent against the dollar since May and the country is going through its worst economic slump in 20 years.
Energy imports are among the top contributors to India’s growing current account deficit. India’s power producers depend on coal imports to supply more than half of the country’s domestic power needs. The slide in Indian imports could help to narrow the gap between Indonesian coal prices and other regional coal indexes which have fallen faster under the weight of a global oversupply situation. LISTED FIRMS IMPACTED Sjahrir said several of the firms affected were publicly listed companies, declining to name them because of the sensitivity of the matter.
Indonesia’s publicly listed coal companies export between 2 million and 7 million tonnes of coal a year each, he said, adding that the increase in spot market supply had weakened prices for the past two-three weeks. Listed Indonesian coal mining companies that export coal to India include Bumi Resources , Adaro Energy , Indo Tambangraya Megah (Banpu Indonesia) and state-owned Bukit Asam . Indonesia ships around $2 billion worth of coal a month, one of its largest exports by value.
A drop in exports would exacerbate Indonesia’s own current account deficit, which is already a concern for investors as it fights a weakening rupiah, rising inflation and the exit of foreign capital. “Deals are still being done,” said Ben Lawson, chief development officer at Indonesian coal producer Apple Coal, referring to Indian purchases of Indonesian coal. “(But) many contracts are being renegotiated or delayed.” INDIA’S POWER SHORTAGES The changing value of the rupee meant Indian buyers would now be forced to import lower quality coal from Indonesia than they were buying before, said Singapore-based Zenny Tran, coal team leader at Ginga Petroleum.
A fall in imports for India could exacerbate the country’s power shortages. “It is unlikely that Indian power companies can continue to pay for Indonesian coal at today’s prices without causing themselves serious financial harm,” said Roleva Energy coal analyst Bart Lucarelli. “Power shortages are a way of life in India and I think we will see more of them over the next year.” Last year, 670 million people in the northern, eastern and northwestern parts of the country had no power for two days, the biggest outage in the world, as a few states drew excess power from the national grid causing it to snap. China’s appetite for Indonesian coal has also subsided as domestic producers slash prices to gain market share.
China’s spot coal prices are down 14 percent this year and 9.3 percent since June, hitting a four-year low of 546 yuan per tonne last week. Indonesian coal exporters have seen revenues plummet with international prices, and asked the government on Monday to help them by delaying plans to hike royalty and tax on coal output. The Indian rupee rose to a two-week high at 64.15 in early trade, versus its Friday close of 65.24/25. The rupiah dropped almost 3 percent on Tuesday, hitting a near four-and-a-half-year low with spot indicative rupiah reaching 11,490 per dollar, its lowest since April 2009.
Source:- firstpost.com
India To Continue Importing Iranian Oil Despite Us-Led Sanctions
10-Sep-2013
India’s Minister of Petroleum and Natural Gas M. Veerappa Moily says his country will continue to import crude oil from Iran despite illegal US-engineered embargoes against the Islamic Republic's oil and financial sectors.
"As far as Iran is concerned, there are a lot of constraints, but at the same time, within the constraints, we are importing the oil from Iran,” he told reporters after a meeting with Japanese oil ministry officials in Tokyo on Monday.
In a letter to Indian Prime Minister Manmohan Singh on August 30, Moily wrote that crude oil imports from Iran will save his India over USD 8.5 billion in hard currency.
“An additional import of 11 million tons during 2013-14 would result in reduction in forex outflow by USD 8.47 billion,” the Indian oil minister said.
India’s oil shipments from Iran are estimated to rise to 4 million tons in the current fiscal year.
India is among Asia’s major importers of energy and relies on the Islamic Republic of Iran to meet a portion of its energy demands.
Iranian Oil Minister Bijan Namdar Zanganeh said on September 1 that there are appropriate grounds for further cooperation between Iran and India in the oil and gas sector.
At the beginning of 2012, the United States and the European Union imposed new sanctions on Iran’s oil and financial sectors with the goal of preventing other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.
In June this year, India won a 180-day waiver from US sanctions targeting oil trade with Iran.
India’s crude oil imports from Iran increased by 21.1 percent in June 2013 compared to a year earlier.
Source:- presstv.ir
Japan And India To Push For Better Lng Pricing
10-Sep-2013
Japan and India said they were planning a liquefied natural gas importers' group as a way to reduce the Asian price and diversify their import sources.
LNG prices in Asia are higher than those in Europe and North America because the cost in Asia is linked to crude oil prices under long-term contracts.
In their joint statement Monday ahead of the second LNG Producer-Consumer Conference in Tokyo the next day, Toshimitsu Motegi, Japan's minister of Economy, Trade and Industry, and M. Veerappa Moily, India's minister for Petroleum and Natural Gas, said oil-linked prices for LNG do not "accurately reflect the LNG supply and demand balance" in Asia-Pacific markets, the Financial Post reports.
Government and private-sector officials from about 50 economies attended the one-day conference.
Data from the U.S. Federal Energy Regulatory Commission indicate Asian LNG importers such as Japan and China paid as much as $15.75 per million British thermal units this month, compared with $2.97 paid by LNG buyers in the U.S. Gulf Coast and $9.79 by British consumers.
Contracts linked to the Henry Hub price benchmark, however, would revolutionize the Japanese market, even if oil-linked contracts continue to dominate the global LNG market, Platts news service quoted Freeport LNG chief executive Michael Smith as saying on the sidelines of the conference.
Freeport, one of three U.S. Gulf Coast export projects looking to tap into Asian demand, announced Monday that Japan's Toshiba Corp. and SK E&S LNG of South Korea had each contracted to liquefy 2.2 million tons of natural gas per year at Freeport's Quintana Island facility in Texas.
The U.S. Energy Department in May gave Freeport LNG conditional approval to export 1.4 billion cubic feet of natural gas per day over the next 20 years.
"Our [Japanese] customers -- Osaka Gas, Chubu Electric and now Toshiba -- all are focused on getting U.S.-based natural gas here on a Henry Hub-linked basis, because that's the cheapest gas they can get in the world," Smith said.
"Post-Fukushima, their increasing LNG volumes on top of the very high oil-linked cost is severely hurting their economy," Smith said of Japan's appetite for LNG after the March 2011 earthquake- and tsunami-triggered nuclear plant disaster. "They must drive down the price, and we're happy to be the ones to facilitate that."
Japan, the largest LNG importer in the world, spent $60 billion on LNG imports in 2012. That figure is expected to rise to $72.1 billion this year. Japan's Nuclear Regulation Authority is reviewing applications from utilities to operate about a dozen of the country's 50 reactors, shut down in the wake of Fukushima.
India is the fifth-largest importer of LNG after Japan, South Korea, the United Kingdom and Spain. Moily has said he expects India's LNG demand to grow at 2-6 percent a year until 2020 and 2-3 percent thereafter.
Source:- upi.com
Tata Motors Jumps On Partnership With Drb-Hicom
10-Sep-2013
Tata Motors, India's largest automobile company, jumped on Tuesday after it entered into a partnership with Malaysia's DRB-HICOM for import, distribution and assembly of its commercial vehicles in the country as part of ongoing global footprint expansion.
As part of the pact, the company has signed a distribution agreement and technology license agreement with USF-HICOM (Malaysia) Sdn Bhd, a subsidiary of DRB-HICOM Berhad, Tata Motors said in a statement.The companyowned Jaguar Land Rover (JLR) last month sold 27,852 vehicles, its best ever August sales performance with an increase of 28% versus the same period last year.
During the first eight months of the year, Jaguar Land Rover sold 269,653 vehicles, up 16%. Shares ofthe companyare trading at Rs 342, up Rs 24.2, or 7.61% at the Bombay Stock Exchange (BSE) on Tuesday at 11:02 a.m.
The scrip has touched an intra-day high of Rs 343.15 and low of Rs 320.10. The total volume of shares traded at the BSE is 589,868.In the earlier session, the shares gained 0.36%, or Rs 1.15, at Rs 317.80. Currently, the stock is trading all time 52-week high, which is above 43.1% over the 52-week low of Rs 239.00.
Share Price Movement Period Pricein Rs Gain/(Loss) in Rs in % 1 Week 296.90 (9.75) (3.28) 1 Month 290.80 (3.65) (1.26) 3 Months 270.40 16.75 6.19 6 Months 306.70 (19.55) (6.37) 1 Year 247.00 40.15 16.26 Note: Based on previous day closing price.
Source:- newindianexpress.com
HC extends limitation period for distribution of dividend as applicant was old and illiterate
Trade Deficit Narrows To $10.9 Billion As Exports Surge
NEW DELHI: India's trade deficit narrowed to a five-month low in August, as merchandise exports clocked double digit growth for the second consecutive month and imports declined, offering a glimmer of hope for the battered rupee.
The narrowing of the trade deficit sparked further appreciation of the rupee, and stock indices built on already strong gains before the data was released on Tuesday.
Exports grew by 13% in August from a year ago while imports fell 0.68%, yielding a trade deficit of $10.9 billon, down marginally from $12.2 billion in July and $14.1 billion in August last year, data released by the ministry of commerce and industry showed.
Trade deficit narrows to $10.9 billion as exports surge
"Exports are on a firm positive terrain now and I remain optimistic about them remaining positive", commerce and industry minister Anand Sharma said. "Our imports are also down and we are closing the big gap in our trade account."
Exports were at a five-month high in value terms at $26.1 billion against $25.8 billion in July. All sectors that have a significant share in exports showed positive growth, barring that of jewellery. Gold imports declined by 70% to $0.65 billion in August compared with $2.2 billion a month ago.
"Gold imports are coming down, but it will not impact the jewellery sector," Sharma said. The moderation in trade deficit will help lower the current account deficit, which touched a record 4.8% of GDP last year, triggering a massive depreciation of the rupee.
The Reserve Bank and the finance ministry have taken a series of measures to curtail gold imports, which will help narrow the current account deficit. Finance Minister P Chidambaram aims to reduce CAD to 3.7% of GDP, or $70 billion. "The continued comfort on trade balance bodes well for CAD, which is likely to see a significant correction in Q2FY14," said YES BankBSE -1.86 % chief economist Shubhada Rao.
Rao expects gold imports to be muted because of existing restrictions, but sees some pick up in demand due to the expected increase in farm output and festival season buying. Crude oil imports grew in value terms on account of high increase in global crude oil prices.
Oil imports rose to $15.09 billion in August, registering an 18% year-on-year growth, compared with a de-growth of 8.7% in the previous month. Sharma, however, felt the rupee depreciation did not have a significant role in the exports pick-up.
"Forty five percent of exports have imported contents. I don't think weak rupee has any impact on positive export results," he said. In the five months to August, exports were up 3.89% at $124.4billion. Trade deficit during the period declined to $73.36 billion compared with $74.67 billion in April-August 2012-13.
Agriculture exports was a big contributor to the overall high export growth, with rice exports rising 43.41% and marine products increasing by about 40%. To further curb imports, the government is looking at imposing duties on non-essentials imports.
Industry has sought cheaper credit to sustain the momentum and suggested that exports be brought under priority sector lending.
Source:- economictimes.indiatimes.com
India's Gold Imports Slump In August
11-Sep-2013
India's imports of gold in August fell to less than a 10th of what it bought a year earlier, as higher import tax and a weaker rupee currency drove up local prices to a near record and tighter rules made imports tougher.
But demand is expected to pick up over the next two months because of the festival season, industry executives said.
India imported three metric tons of gold in the past month, compared with 35 tons a year earlier. The drop was even more dramatic compared with April, when imports totaled 142 tons as buyers rushed to take advantage of a fall in gold prices to a two-year low.
India imported three tons of gold in August, compared with 35 tons a year earlier and 142 tons in April, when prices dropped to a two-year low.
India imports nearly all the gold it consumes. The outflow of dollars spent on gold was one of the main reasons for India's wide trade and current-account deficits, one of the biggest worries for investors to dump Indian assets, pushing the rupee to successive new lows against the dollar in recent weeks. The rupee is down about 16% against the dollar since early May.
The government is likely to find the latest data encouraging. The value of gold imports fell to $650 million in August from $2.20 billion in July, helping India's trade deficit to narrow to $10.9 billion from $12.27 billion, government data showed Tuesday.
Local authorities have been trying to curb demand for the metal, with Finance Minister Palaniappan Chidambaram publicly urging people to curb their gold purchases.
India raised the import tax on gold to 10% from 8% in August—the fifth increase since January 2012. Besides, the Reserve Bank of India in July asked banks and dealers who import the metal to ensure that 20% of imports were re-exported.
Banks and state-run trading agencies had halted gold imports because of a lack of clarity over the changes in rules, but are now expected to resume purchases as detailed guidelines have been issued recently.
"We do believe that demand will be high during the festival season," said P.R. Somasunderam, managing director of the World Gold Council's India office.
However, a repeat of the rush in demand seen in mid-April is unlikely, he said, as prices are higher compared with the April levels.
"The festival season is ahead and there should be good demand," said Harmesh Arora, a spokesman for the Bombay Bullion Association, one of the largest gold-industry associations in India. "I hope the price stabilizes."
There were some signs of that Tuesday with the price of gold in the local market falling to 31,000 rupees per 10 grams from 34,000 rupees on Aug. 28, when the rupee hit a record low of 68.80 to the dollar. The rupee has since risen to end local spot trading at 63.84 Tuesday.
International gold prices also softened and were 0.8% lower Tuesday at $1,375.10 a troy ounce.
According to Mr. Arora, even if the prices were high, Indian consumers would buy some quantities of gold as they consider it auspicious during the festivals.
"You cannot stop the minimum demand," he said, adding that imports through the year were likely to be around 900 tons.
Imports totaled 859.7 tons in 2012.
Demand from rural India is expected to be strong this year. This is because India is expecting a bumper harvest of summer-sown crops such as rice, oilseeds, sugar and cotton that should boost rural income and spending on gold—the popular mode of savings for farmers.
Meanwhile, the local market has seen a turnabout as lots of people have been selling stashes gold jewelry since late-August with the drop in rupee's value pushing up Indian gold prices
Source:- online.wsj.com
[Indian Custom Order] : Appointment of Common Adjudicating Authority
F.No.437/26/2013-Cus-IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
*****
North Block New Delhi,
Dated 5th September, 2013
ORDER
In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice DRI F.No.64/KOL/APP/2011/158 dated 11.01.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Kolkata Zonal Unit, Kolkata in the case of M/s C & C Construction Ltd, Plot No. 70, Institutional Sector, Gurgaon-122001 to the Commissioner of Customs (Port), Kolkata for the purpose of adjudication.
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
1. The Additional Director General, DRI, Kolkata Zonal Unit, 8, Ho Chi-Minh Sarani,
Kolkata-700071.
2 The Commissioner of Customs (Port), Kolkata, 15/1 Strand Road, Custom House,
Kolkata-700001.
3. The Commissioner of Custom (Export), Mumbai, New Custom House, Mumbai.
4. Webmaster.cbec@icegate.gov.in
Indian Rupee Up 140 Paise At 63.84 Vs Us Dollar As Syria Strike Fears Fade
10-Sep-2013
The Indian rupee on Tuesday closed above the 64 mark at 63.84 against the dollar, up 140 paise The biggest in two weeks as fears of a US military strike on Syria eased amid lower global oil prices.
Banks and exporters preferred to reduce their dollar positions on expectations of additional foreign fund flows into the equity market.
The rupee resumed higher at 64.40 a dollar from Friday's close of 65.24 and touched a low of 64.54 at the interbank foreign exchange market. It later bounced back to breach the 64 mark and touch a high of 63.78 before settling at 63.84, a rise of 140 paise or 2.15 per cent.
Today's rise was the biggest since it added 225 paise on August 29. In four straight sessions, the local currency has flared up by 379 paise or 5.6 per cent.
US jobs data on Friday fell short of expectations, leading to speculation that the tapering of the US Federal Reserve's bond-buying programme would be delayed.
India's exports rose for the second straight month in August, while the trade deficit narrowed as gold imports fell, the Commerce Ministry said today.
"The downbeat jobs data from the US led to losses in the US dollar index, thereby helping the rupee and other Asian currencies to post gains," said Abhishek Goenka, CEO of India Forex Advisors. "Also, today's trade deficit data...was seen supporting the rupee as it showed the trade gap reduced to USD 10.9 billion in August from USD 12.27 billion in July."
The benchmark S&P BSE Sensex surged 727 points today, the biggest gain in absolute terms in more than four years.
Foreign institutional investors bought a net Rs 2,563.60 crore of shares today and Rs 800.71 crore of shares on Friday, as per provisional data from the stock exchanges.
Brent (oil) crude futures fell below USD 113 a barrel as supply fears eased on Syria developments.
"The trading range for the spot USD-INR pair is expected to be within 63 to 65," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India). "The government is also set
Source:- financialexpress.com
Activity of assembling water purifier is deemed manufacturing for purposes of sec. 80-IC relief
Services acquired for maintenance of lawn in a factory premise as per legal mandate is eligible inpu
Lower authorities aren't allowed to place their judgment over decision of superior forum
If consequential order of AO isn't in sync with directions of Tribunal, assessee can initiate fresh
SEBI's initiative to curb Saradha like Scams; declares illegal mobilization of funds as fraudulent
Forms and Rules prescribed to furnish details of income distributed by the Securitization Trust
CIT V Vs. NASA FINELEASE P LTD
Revenue, by this appeal under Section 260A of the Income Tax Act 1961 (Act, for short), has raised a solitary issue relating to interpretation of clause (d) to Section 43(5) of the Act. For the purpose of record, we note that the appeal pertains to assessment year 2006-07. The respondent-assessee is engaged in the business of dealing in securities and investment and was engaged by Kotak Mahindra Securities to manage their funds and earn income in nature of profits/gains or dividends from dealing with securities. The assessee |
SEBI Act and Collective Investment Scheme Regulations intend to save Aam Aadmi from nemesis; not ult
Profit from eligible unit to be computed without setting off losses of other eligible units for sec.
Case remanded as DRP passed non-speaking order without considering objections raised by assessee
Reassessment without prior scrutiny assessment permissible if assessee had income which escaped asse
Credit for motor vehicles is available to extent it falls under definition of 'capital goods'
WOODWARD GOVERNOR INDIA LTD. Vs. COMMISSIONER OF INCOME TAX
The aforesaid decision in Woodward Governor India Limited (supra), which pertains to Assessment Year 2004-05, accepts the legal position that provision for warranty can be allowed as an expenditure under Section 37(1) of the Income Tax Act, 1961 (Act, for short). The other question, i.e., how much or the quantum of expenditure, which |
HC sets aside ITAT's order as it deleted addition and rejected report of valuation officer without h
Purchases couldn't be concluded as bogus on mere reasoning that creditors didn't reply to confirmati
Reassessment to recompute book profits u/s 115JB not allowed
Levy of service tax on renting of immovable property is constitutional, rules HC
ORDER dated 05-09-2013
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
ORDER
North Block New Delhi,
Dated 5th September, 2013
In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F. No.DRI/SRU/INV-3/2012 dated 23.04.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s Purab Textiles Pvt. Ltd. (IEC No.527021907), Neeta Estate, Near Zenith Mill, Vasta Devdi Road, Katargam, Surat and Jay Laxmi Fabrics, (IEC No.5290559952), 7/1164, Ruwala Compound, Juna Balashram, Rampura Tunki, Surat to the Commissioner of Customs (Port-Import) Jawaharlal Nehru Custom House, Nhava-Sheva, Post Uran, District Raigad, Maharashtra-400707 for the purpose of adjudication
F.No.437/51/2013-Cus-IV
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
- The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad.
- The Commissioner of Customs (Import), JNCH, Nhava Sheva, Post-Uran, Distt-Raigad, Maharashtra - 400707.
- The Joint/Additional Commissioner of Customs (Imports), JNCH, Nhava Sheva, Post-Uran, Distt-Raigad, Maharashtra-400707.
- The Joint/Additional Commissioner of Customs (Preventive), Sarda House, Bedi Bandar Road, Opposite Panchavati, Jamnagar-361002.
- The Joint/Additional Commissioner of Customs (Imports), Air Cargo Complex, Sahar,Andheri (E), Mumbai-400099.
- Webmaster.cbec@icegate.gov.in
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
ORDER
North Block New Delhi,
Dated 5th September, 2013
In terms Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F. No. VIII/26/50/2013-DRI dated 09.05.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Chennai Zonal Unit, Chennai in the case of M/s Devendran Coal International Pvt. Limited, 2A & B, III floor, Raja Annamalai Building, No.19, Marshalls Road, Egmore, Chennai-600008 to the Commissioner of Customs, New Harbour Estate, Turicorin for the purpose of adjudication.
F.No.437/53/2013-Cus-IV
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
- The Additional Director General, Directorate of Revenue Intelligence, Chennai Zonal Unit, Chennai.
- The Commissioner of Customs (Seaport-Import), Customs House, Chennai.
- The Commissioner of Customs, No.1, Williams Road, Tirchirpalli-620001 .
- The Commissioner of Customs , Custom House, New Harbour Estate, Tuticorin 628004.
- Webmaster.cbec@icegate.gov.in
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
ORDER
North Block New Delhi,
Dated 5th September, 2013
In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F. No. DRI/AZU/INQ-1/2013 dated 27.06.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s VVF(India) Limited, (formerly known as VVF Ltd., Mumbai), 109, Opposite Sion Fort Garden, Sion East, Mumbai-400022 to the Commissioner of Customs, Custom House, Kandla for the purpose of adjudication.
F.No.437/54/2013-Cus-IV
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
- The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad.
- The Commissioner of Customs, Custom House, Kandla.
- The Commissioner of Customs (Import), NCH, Mumbai.
- Webmaster.cbec@icegate.gov.in
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
ORDER
North Block New Delhi,
Dated 5th September, 2013
In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 (as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice DRI F.No.64/KOL/APP/2011/158 dated 11.01.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Kolkata Zonal Unit, Kolkata in the case of M/s C & C Construction Ltd, Plot No. 70, Institutional Sector, Gurgaon-122001 to the Commissioner of Customs (Port), Kolkata for the purpose of adjudication.
F.No.437/26/2013-Cus-IV
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
- The Additional Director General, DRI, Kolkata Zonal Unit, 8, Ho Chi-Minh Sarani, Kolkata-700071.
- The Commissioner of Customs (Port), Kolkata, 15/1 Strand Road, Custom House, Kolkata-700001.
- The Commissioner of Custom (Export), Mumbai, New Custom House, Mumbai.
- Webmaster.cbec@icegate.gov.in
DDIT vs. Reliance Infocom Ltd/ Lucent Technologies (ITAT Mumbai)
Consideration for supply of software which is not embedded in equipment is taxable as “royalty” The assessee, Reliance Infocomm Ltd, wanting to establish a wireless telecommunications network in India, entered into a contract with Lucent Technologies for supply of software required for the telecom network. The assessee claimed, relying on Tata Consultancy Services 271 ITR 401 (SC), Ericson AB 343 ITR 370 (Del), Nokia Networks OY 25 taxmann.com 225 & Motorola 270 ITR (AT) (SB) 62, that the amount paid by it to Lucent for acquiring the software was for purchase of a “copyrighted article” and “goods” and that it was not assessable to tax as “royalty” u/s 9(1)(vi) or Article 12(3) of the India-USA DTAA. The claim was upheld by the CIT(A). On appeal by the department to the Tribunal HELD allowing the appeal: There is a distinction between a case where the software is supplied along with hardware as part of the equipment and there is no separate sale of the software and a case where the software is sold separately. Where the software is an integral part of the supply of equipment, the consideration for that is not assessable as “royalty”. However, in a case where the software is sold separately, the consideration for it is assessable as “royalty”. On facts, the assessee had acquired the software independent of the equipment. It had received a license to use the copyright in the software belonging to the non-resident. The non-resident supplier continued to be the owner of the copyright and all other intellectual property rights. As there was a transfer of the right to use the copyright, the payment made by Reliance to Lucent was “for the use of or the right to use copyright” and constituted “royalty” under s. 9(1)(vi) and Article 12(3) of the India-USA DTAA (Synopsis International 212 Taxman 454 (Kar), Samsung Electronics 345 ITR 494 (Kar), Lucent Technologies 348 ITR 196 (Kar), Citrix Systems 343 ITR 1 (AAR) & Microsoft/Gracemac Corp 42 SOT 550 (Del) followed). |
Monday, 9 September 2013
Service Tax Dept. gets stringent for Bollywood
With three prominent film personalities already under the scanner for service tax evasion, the department has proclaimed that they are going to be much more stringent about these tax laws. Sunny Deol is already on the verge of an arrest considering the fact that the actor turned producer has a payment of Rs. 20 lakh due to the Service Tax Department and the department will send a show-cause in the next two days. |
Capital transaction with AEs can be included for calculation of RPT only on basis of functions perfo
Continuance of proceedings by ICAI against CA after settlement of matter before CLB is vicious
India Looks To Lower Dollar Outflow On Oil Via Bilateral ` Deals
9-Sep-2013
With Prime Minister Manmohan Singh underlining the need to reduce the oil import bill by at least $25 billion (about `1.63 lakh crore) in the current financial year to contain the current account deficit (CAD), India is exploring opportunities for bilateral currency swap agreements with oil-producing countries that could include Iraq and the UAE.
The move would enable India to pay in rupees for oil imported from other economies. Besides, it would also reduce India’s widening CAD — the difference between inflows and outflows of dollars and make the rupee internationally more acceptable and tradable.
India pays Iran rupees for oil imports. Under a plan to pay Iran in rupees and increase oil imports by 2 million tonnes per annum, India expects to save close to $8 billion (about `52,192 crore) from Iran alone. Kuwait and Iraq are two other countries that India is talking too on the same lines.
Besides, oil-producing countries, it is set to have more such deals with other economies as well.
The commerce and industry ministry has already set up a taskforce to work out details of such agreements.
With an imminent war-like situation in Syria, global oil prices could further skyrocket.
“There is an increasing trend among countries to institute bilateral currency swap agreements for trade purposes. The Central Bank of China has so far singed 20 such agreements where the yuan is currency of settlement,” Soumya Kanti Ghosh, chief economic adviser, State Bank of India, said.
Source:- hindustantimes.com
Russia Lifts Ban On Import Of Rice, Peanuts From India
9-Sep-2013
NEW DELHI: Russia has lifted an eight-month-old ban on the import of Indian rice and peanuts, effective from this month, a move that would help traders regain their lost market.
The Russian Federation had imposed the ban due to the presence of khapra beetles pest in rice and aflatoxin contamination of peanuts.
"Russia has cancelled the temporary restriction on import of rice, rice cereals and peanuts from India. Exporters can resume export of these products effective from September 1," a senior government official told PTI.
Russia decided to remove restrictions after its officials visited processing units in India in June. The delegation was convinced about the safety measures that were put in place here while processing these food items, the official said.
The resumption of trade comes as the country seeks to boost exports to address the current account deficit.
India, the world's second-biggest producer of rice, had shipped 61,000 tonnes of rice and 3,700 tonnes of peanuts in the last financial year, earning USD 31 million from the export of the two food items.
Source:- economictimes.indiatimes.com
Brazil, India Offer Cotton Price Bulls Little Joy
9-Sep-2013
US farm officials gave hope to investors downbeat on cotton prices, hiking forecasts for India's harvest and, for Brazil, flagging a slump in forward sales by growers and a limited boost to demand from soccer's World Cup.
US Department of Agriculture foreign staff raised to a record 29.0m bales their forecast for India's harvest in 2013-14, citing "adequate" sunshine following strong monsoon rains, conditions "which point to food yield prospects".
"Recent field travel to Andhra Pradesh and Gujarat and a phone survey of contacts in other states point to considerable optimism concerning the upcoming harvest," the USDA's New Delhi bureau said.
The production estimate is 1.0m bales higher than the official forecast from the USDA, which will on Thursday update its world supply and demand numbers on a range of crops in its monthly Wasde report, and represents a 9.4% increase year on year.
And it will support exports of 7.0m tonnes, above the official USDA number of 6.25m tonnes, with the strong supplies, an absence of government intervention and currency weakness boosting prospects.
While Indian supplies are currently some 4 US dollar cents a pound above the Cotlook A index of physical prices, "presumably, the onset of harvest will push Indian cotton lower and a weaker rupee will eventually make Indian cotton an attractive option", the bureau said.
Reluctant to hedge ahead
In Brazil, the USDA's Brasilia office offered some succour to cotton bulls, estimating that cotton exports will halve to 2.1m bales in 2013-14, below the official USDA forecast of 2.6m bales.
The estimate reflected ideas of a significant hangover from a weak harvest in 2012-13, when output tumbled by one-third as "farmers exited cotton production, dismayed with the high capital costs, level of risk, and stringent management practices".
However, output is expected to rebound some 24% in 2013-14, reflecting a recovery in sowings and the greater use of seed resistant to the Helicoverpa zea corn earworm moth caterpillar, which has become a major pest in cotton and soybeans as well as corn.
The office also flagged weak forward sales by farmers of the next harvest, with 14% of the crop hedged so far, a little under half the 30% of the crop typically sold by now, reflecting a rise in local prices.
Local prices, while falling late in August, increased 3.4% overall last month, protected by the weak real, according to research centre Cepea.
World Cup impact
Meanwhile, on demand, the USDA's Brasilia staff downplayed hopes that the 2014 football World Cup, being held in Brazil, would spark rising domestic demand for cotton through boosting purchases of replica shirts and soccer-based clothing.
"Across-the-board inflation has weakened consumer's domestic purchasing power and reduced disposable income available for apparel purchases, particularly in the lower and middle classes," the staff said.
"Significant World Cup sales are expected in 2014. But these sales are expected to offset the minor slide in consumption instead of increasing consumption."
Source:- agrimoney.com
Onion Exports Drop By 81% In August After Curbs On Sale
9-Sep-2013
NEW DELHI: India's onion exports fell sharply by 81 per cent to 29,247 tonnes in August as compared to same period a year ago, after the government imposed curbs on the overseas sale to improve domestic supply and check prices.
On August 14, the government had imposed a minimum onion export price of $ 650 per tonne to restrict shipments and control prices after it touched Rs 80 per kg in retail markets on supply crunch. The retail price of onion continues to rule at Rs 50-60 per kg in most parts of the country.
According to the data maintained by the cooperative Nafed, onion exports declined to 29,247 tonnes in August this year from 1,56,283 tonnes in the same month last year.
In value terms too, shipments dropped to Rs 125.46 crore from Rs 164.92 crore in the review period.
During the April-August period of this fiscal, onion exports fell to 6,97,028 tonnes as against 8,50,634 tonnes in the year-ago period. However, in value terms, the outbound shipments rose sharply to Rs 1,341 crore from Rs 844 crore in the said period.
According to traders, exports in the coming weeks would depend on the supply situation. The supply of onion is limited during the lean period of July-October, as 60 per cent of produce is grown during the rabi season of March-June.
The rest is produced during the Kharif season of October-- December and late Kharif season of January--March period.
India, the second largest producer of onion in the world after China, is estimated to have harvested 166 lakh tonnes of the staple vegetable last year. The country had earned Rs 2,294 crore from the export of 18.22 lakh tonnes of onion in FY 2012-13.
Source:- economictimes.indiatimes.com
Rupee Jumps To 64.30 Per Dollar, Sensex Soars 400 Points
The Indian rupee jumped around 1.5 per cent against the US dollar to pull back below the key 64.50 levels on Tuesday, triggering sharp gains in the stock markets. The partially convertible rupee is now on track for its fourth straight day of gains after snapping a three-week losing streak.
As of 09.16 a.m., the rupee traded at 64.33, up 1.4 per cent against Friday's close at 65.24 per dollar. Markets were closed on Monday on account of Ganesh Chaturthi.
The rupee is now trading at a two-week high. A surge in exports also helped sentiments.
India's merchandise exports posted double-digit growth in the month of August, while imports were "contained", trade secretary S. R. Rao said on Monday, offering some respite for the troubled rupee. Official data is due later this week.
The rupee tracked higher euro, which gained against the dollar after disappointing US jobs data raised hopes that the Fed Reserve may be hesitant to announce tapering of stimulus as early as next week.
Sentiment in the currency has improved since Reserve Bank of India governor Raghuram Rajan unveiled a slew of proposals to support the rupee and open up markets on Wednesday, providing a breath of fresh air for investors unnerved by the country's worst economic crisis in two decades.
The RBI has so far been the main line of defence against the rupee.
Stock markets are also on track for the fourth consecutive day of gains. The BSE Sensex, which has gained over 1,000 points in the previous three sessions, rose another 400 points in early trade today. The broader Nifty scaled above the key 5,800 levels on the back of strong gains in banking stocks.
Mayruesh Joshi of Angel Broking told NDTV that steps taken by Raghuram Rajan are not only aiding the Indian rupee, but also leading to a huge momentum in the Bank Nifty.
Source:- profit.ndtv.com
Gold Tumbles By Rs 625 On Sluggish Demand, Global Cues
9-Sep-2013
NEW DELHI: Gold prices tumbled by Rs 625 to Rs 31,100 per ten grams here on Monday on sluggish demand at prevailing higher levels amid a weak global trend.
However, silver held steady at Rs 54,300 per kg in scattered buying from industrial units and coin makers.
Traders said sluggish demand at prevailing higher levels amid a weak global trend on speculation Federal Reserve policy makers will reduce monthly debt purchases this month, mainly pulled down gold prices.
Gold in London, which normally set price trend on the domestic front, fell 0.3 per cent to USD 1,387.24 an ounce and silver by 0.3 per cent to USD 23.78 an ounce.
On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 625 each to Rs 31,100 and Rs 30,900 per ten ten grams, respectively. It had gained Rs 725 in the previous session. Sovereign held steady at Rs 25,200 per piece of eight gram.
On the other hand, silver ready ruled steady at Rs 54,300 per kg while weekly-based delivery shed Rs 35 at Rs 54,895 per kg. Silver coins continued to be asked around previous level of Rs 88,000 for buying and Rs 89,000 for selling of 100 pieces.
Source:- timesofindia.indiatimes.com
[Indian Custom Order] : Appointment of Common Adjudicating Authority
F.No.437/51/2013-Cus-IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
*****
North Block New Delhi,
Dated 5th September, 2013
ORDER
In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.DRI/SRU/INV-3/2012 dated 23.04.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s Purab Textiles Pvt. Ltd. (IEC No.527021907), Neeta Estate, Near Zenith Mill, Vasta Devdi Road, Katargam, Surat and Jay Laxmi Fabrics, (IEC No.5290559952), 7/1164, Ruwala Compound, Juna Balashram, Rampura Tunki, Surat to the Commissioner of Customs (Port-Import) Jawaharlal Nehru Custom House, Nhava-Sheva, Post Uran, District Raigad, Maharashtra-400707 for the purpose of adjudication
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
1. The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad.
2. The Commissioner of Customs (Import), JNCH, Nhava Sheva, Post-Uran, Distt-
Raigad, Maharashtra - 400707.
3. The Joint/Additional Commissioner of Customs (Imports), JNCH, Nhava Sheva,
Post-Uran, Distt-Raigad, Maharashtra-400707.
4 The Joint/Additional Commissioner of Customs (Preventive), Sarda House, Bedi
Bandar Road, Opposite Panchavati, Jamnagar-361002.
5. The Joint/Additional Commissioner of Customs (Imports), Air Cargo Complex,
Sahar,Andheri (E), Mumbai-400099.
6. Webmaster.cbec@icegate.gov.in
F.No.437/53/2013-Cus-IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
*****
North Block New Delhi,
Dated 5th September, 2013
ORDER
In terms Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.VIII/26/50/2013-DRI dated 09.05.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Chennai Zonal Unit, Chennai in the case of M/s Devendran Coal International Pvt. Limited, 2A & B, III floor, Raja Annamalai Building, No.19, Marshalls Road, Egmore, Chennai-600008 to the Commissioner of Customs, New Harbour Estate, Turicorin for the purpose of adjudication.
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
1. The Additional Director General, Directorate of Revenue Intelligence, Chennai Zonal Unit, Chennai.
2. The Commissioner of Customs (Seaport-Import), Customs House, Chennai.
3. The Commissioner of Customs, No.1, Williams Road, Tirchirpalli-620001 .
4. The Commissioner of Customs , Custom House, New Harbour Estate, Tuticorin 628004.
5. Webmaster.cbec@icegate.gov.in
F.No.437/54/2013-Cus-IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
*****
North Block New Delhi,
Dated 5th September, 2013
ORDER
In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.DRI/AZU/INQ-1/2013 dated 27.06.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s VVF(India) Limited, (formerly known as VVF Ltd., Mumbai), 109, Opposite Sion Fort Garden, Sion East, Mumbai-400022 to the Commissioner of Customs, Custom House, Kandla for the purpose of adjudication.
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
1. The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad.
2. The Commissioner of Customs, Custom House, Kandla.
3. The Commissioner of Customs (Import), NCH, Mumbai.
4. Webmaster.cbec@icegate.gov.in
F.No.437/26/2013-Cus-IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
*****
North Block New Delhi,
Dated 5th September, 2013
ORDER
In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice DRI F.No.64/KOL/APP/2011/158 dated 11.01.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Kolkata Zonal Unit, Kolkata in the case of M/s C & C Construction Ltd, Plot No. 70, Institutional Sector, Gurgaon-122001 to the Commissioner of Customs (Port), Kolkata for the purpose of adjudication.
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
1. The Additional Director General, DRI, Kolkata Zonal Unit, 8, Ho Chi-Minh Sarani,
Kolkata-700071.
2 The Commissioner of Customs (Port), Kolkata, 15/1 Strand Road, Custom House,
Kolkata-700001.
3. The Commissioner of Custom (Export), Mumbai, New Custom House, Mumbai.
4. Webmaster.cbec@icegate.gov.in
Courts can only give directions for working of scheme, it can't rewrite terms of scheme
Cos providing engineering services can't be compared with cos providing marketing services for TP st
No penalty for accepting cash loan through cheque discounting facility to handle urgent business nee
No waiver of penalty if ST was collected but not deposited by assessee
Service charges from operation of water plant eligible for sec. 80-I even if plant wasn't owned by a
Additions merely on basis of valuation report not sustainable unless supported by rejection of books
Interest income to be allowed as revenue exp. or bad-debt on its subsequent waiver
Company can decide to extend financial year at any time either during the year or after its end
Sec. 80-IC relief allowed in past years couldn't be disallowed in relevant year in absence of advers
Cost incurred by hotels in providing meals to its employees at concessional rates couldn't be charge
DGFT Public Notice No.24/(RE 2013)/2009-14 dated 06-09-2013
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
PUBLIC NOTICE No. 25 (RE-2013)/ 2009-2014
NEW DELHI, DATED THE 6th September, 2013
Subject: Relaxation of condition for fulfillment of export obligation in respect of consignments of gold articles.
In exercise of powers conferred under Paragraph 2.4 the Foreign Trade Policy, 2009-2014, the Director General of Foreign Trade hereby relaxes certain conditions of para 4A.8 of HBP v1 for the purpose of import/release of 20% gold consignment (under customs bond) against export of gold jewellery/articles of gold.
- Para 4A.8(a) stipulates what may constitute “Proof of Export” and lists three specific documents as under:
(i) E.P. copy of the shipping bill;
(ii) Customs attested invoice;
(iii) Bank certificate of realisation in Appendix 22A
- Only in respect of export of gold jewellery and export of articles of gold, the document listed at (iii) above, namely “Bank certificate of realisation in Appendix 22A” will not be insisted upon so far as “proof of exports” is required as per RBI Circular No.25 dated 14.08.2013 or any other related guidelines issued by RBI or Ministry of Finance.
- It is reiterated that in respect of all other exports, all the 3 documents listed above will continue to be required for establishment of proof of export. Similarly against export of gold jewellery and export of articles of gold, if any claim of export benefit like drawback, etc., is considered then Bank certificate of realisation in Appendix 22A would be required.
Effect of this Public Notice: The exporters/importers can import/get their 20% gold consignment (under customs bond) released without waiting for the realization, if the other two requirements of para 4A.8(a) are satisfied.
(Anup K. Pujari)
Director General of Foreign Trade
e-mail: dgft@nic.in
(Issued from F. No. 01/94/180/88/AM11/PC-4)
Customs Circular No 35/2013 dated 05-09-2013
Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise & Customs
Drawback Division
Circular No. 35/2013-Customs
New Delhi, dated the 5th September, 2013
To
All Chief Commissioners of Customs / Customs (Prev),
All Chief Commissioners of Customs & Central Excise,
All Directors General of CBEC / Chief Commissioner (AR), CESTAT
All Commissioners of Customs / Customs (Prev)/ Customs & Central Excise
All Commissioners of Customs (Appeals)/ Customs & Central Excise (Appeals)
Subject: Audit Report No. 15/2011-12, Section 2 – Duty Drawback Scheme: All aspects to be covered in speaking orders issued in each case of export under section 74 of Customs Act, 1962- regarding
Ma’am/Sir,
Reference is drawn to Board’s Circular No.46/2011-Cus dated 20.10.2011 and Instructions of even number dated 31.7.2013 related to Audit Report No. 15/2011-12, Section 2 – Duty Drawback Scheme.
- Board has noted that the Circular No. 46/2011-Cus had earlier directed, inter alia, passing of speaking orders, after following the principles of natural justice, under section 74 of Customs Act on the issues of establishing identity/determination of use of goods under re-export under section 74 of Customs Act. Further, taking note of Audit observations regarding payment of claims under section 74 in a manner inconsistent with provisions of Rule 5 of Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995relating to manner and time of claiming drawback, the Board’s Instructions dated 31.7.13 had directed field formations to, inter alia, ensure due diligence in the application of said Rule.
- In the light of the overall position that appealable speaking orders in original are to be issued in section 74 cases, it is clarified for removal of doubts that the aspect of how the provisions, of the various sub-rules of said Rule 5, are satisfied or not satisfied, as also other attendant aspects relevant to sanction of the re-export drawback, should also invariably be covered in the speaking order in original issued by the officer.
Yours faithfully,
(Ashok Kumar Pandey)
Senior Technical Officer (Drawback)
Tel:23362843
Email: ashok.p@nic.in
F.No.603/01/2011-DBK
RBI/2013-14/232 A.P. (DIR Series) Circular No. 38 dated 06-09-2013
RBI/2013-14/232
A.P. (DIR Series) Circular No. 38
September 6, 2013
To
All Category - I Authorised Dealer Banks
Madam/ Sir,
Purchase of shares on the recognised stock exchanges in accordance with SEBI (Substantial Acquisition of Shares and Takeover) Regulations
Attention of Authorised Dealer Category – I (AD Category-I) banks is invited to Schedule 1 to Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified by the Reserve Bank vide Notification No. FEMA 20/2000-RB dated 3rd May 2000 , as amended from time to time.
- At present, Foreign Institutional Investors, Qualified Foreign Investors and Non Resident Indians are eligible to acquire shares on the recognised stock exchanges in compliance with the conditions under Schedule 3, 4, 5 and 8 of FEMA Notification No. 20. A non-resident is not permitted to acquire shares on stock exchange under FDI scheme under Schedule 1 of FEMA Notification No. 20.
- The issue of acquisition of shares under the FDI Scheme by a non-resident on a recognised stock exchange has been reviewed and as a further measure of liberalization, it has been decided that a non resident including a Non Resident Indian may acquire shares of a listed Indian company on the stock exchange through a registered broker under FDI scheme provided that:
- The non-resident investor has already acquired and continues to hold the control in accordance with SEBI (Substantial Acquisition of Shares and Takeover) Regulations;
- The amount of consideration for transfer of shares to non-resident consequent to purchase on the stock exchange may be paid as below:
- by way of inward remittance through normal banking channels, or
- by way of debit to the NRE/FCNR account of the person concerned maintained with an authorised dealer/bank;
- by debit to non-interest bearing Escrow account (in Indian Rupees) maintained in India with the AD bank in accordance with Foreign Exchange Management (Deposit) Regulations, 2000;
- the consideration amount may also be paid out of the dividend payable by Indian investee company, in which the said non-resident holds control as (i) above, provided the right to receive dividend is established and the dividend amount has been credited to specially designated non –interest bearing rupee account for acquisition of shares on the floor of stock exchange.
- The pricing for subsequent transfer of shares to non-resident shareholder shall be in accordance with the pricing guidelines under FEMA;
- The original and resultant investments are in line with the extant FDI policy and FEMA regulations in respect of sectoral cap, entry route, reporting requirement, documentation, etc;
- AD Category - I banks may bring the contents of the circular to the notice of their customers/constituents concerned.
- Reserve Bank of India has since amended the relevant Regulations vide Notification No.FEMA.279/2013-RB dated July 10, 2013 notified vide G.S.R.No.591 (E) dated September 4,2013 and Notification No.FEMA.280/2013-RB dated July 10, 2013 notified vide G.S.R.No.531 (E) , dated August 5,2013.
- 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
(Rudra Narayan Kar)
Chief General Manager In-Charge
RBI/2013-14/233 A.P. (DIR Series) Circular No. 39 dated 06-09-2013
RBI/2013-14/233
A.P. (DIR Series) Circular No. 39
September 6, 2013
To
All Category - I Authorised Dealer Banks
Madam/ Sir,
Export and Import of Currency
Attention of Authorised Persons is invited to Regulation (2) of Foreign Exchange Management (Export and Import of Currency) (Amendment) Regulations, 2009, notified vide Notification No. FEMA 195/RB-2009 dated July 7, 2009, in terms of which, any person resident in India may take outside India or having gone out of India on a temporary visit, may bring into India (other than to and from Nepal and Bhutan) currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.7,500 per person.
- As part of providing greater flexibility to the resident individuals travelling abroad, the existing limit, mentioned above, has been enhanced to Rs. 10,000 per person.
- Accordingly, any person resident in India:
i) may take outside India (other than to Nepal and Bhutan) currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.10,000 (Rupees ten thousand only) per person; and
ii) who had gone out of India on a temporary visit, may bring into India at the time of his return from any place outside India (other than from Nepal and Bhutan), currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.10,000 (Rupees ten thousand only) per person.
- Authorised Persons may bring the contents of this circular to the notice of their constituents, customers and foreign counter parties concerned.
- Reserve Bank of India has since amended the relevant Regulations vide Notification No.FEMA.258/2013-RB dated February 15, 2013 , notified vide G.S.R.No.480(E) dated July 12, 2013
- 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) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Rudra Narayan Kar)
Chief General Manager-in-Charge
Notification No 40 (RE-2013) / 2009-2014 dated 06-09-2013
Government of India
Ministry of Commerce & Industry
Department of Commerce
Udyog Bhawan
Notification No. 40 (RE–2013)/2009-2014
New Delhi, Dated 6th September, 2013
Subject: Non-insistence on sequencing of import of gold being followed by export of gold jewellery/articles of gold.
S.O.(E) In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), read with paragraph 2.1 of the Foreign Trade Policy, 2009-2014, as amended from time to time, the Central Government hereby notifies the following:
- Chapter 71 of ITC(HS) 2012 Schedule 1 stipulates that import of gold is ‘subject to RBI regulations’. The Reserve Bank of India has issued certain guidelines including A.P. (DIR Series) Circular No.25 dated August 14, 2013 on the operational aspect of the scheme of import of gold. Para 2(f) of the circular No.25 states:
“(f) Any authorization such as Advance Authorization / Duty Free Import Authorization (DFIA) is to be utilized for import of gold meant for export purposes only and no diversion for domestic use shall be permitted. “
- This condition (f) is getting interpreted as every import under Advance Authorisation /DFIA has to be followed by a corresponding export. Normally import precedes export under AA/DFIA but in certain cases export may precede import. It is necessary that every import under AA/DFIA must be duly accounted for by corresponding exports without insisting on the sequence: import preceding export.
- Accordingly, import of gold under AA/ DFIA would have a corresponding export but not necessarily import first and export later.
- Effect of this Notification: Import of gold under AA/ DFIA would not necessarily be followed by export but each import has to be accounted for.
(Anup K. Pujari)
Director General of Foreign Trade
E-mail: dgft[at]nic[dot]in
(Issued from 01/94/180/88/AM11/PC-4)
Identity of applicants and not their creditworthiness establishes genuineness of share application m
Sunday, 8 September 2013
Exemption to trust couldn't be denied alleging non-application of income if DIT approved of accumula
ITAT can't remand a matter for verification if it hasn't been challenged before it
Petitioner failed to prove rendition of service to support allegation of non-payment; winding-up ple
Exemption to small service provider allowed as credit availed was reversed before actual utilization
Non-payment of taxes by recipient of income is a pre-condition to invoke recovery provision on TDS d
Fruit, Vegetable Export Jumps To $625 Million
FAISALABAD: Export of Pakistan fruits and vegetables has jumped from 538 million dollars to 625 million dollar in one year.
A spokesman of agriculture (extension) department told here Sunday that Pakistan is producing best quality of fruits and vegetables which have attracted the foreign buyers very much.
He told that Pakistan has started its potato export to the markets of Middle East whereas the markets of South Korea, Mauritius and Japan have also allowed access to Pakistani fruits.
The spokesman further told that during 2012-13, Pakistan has made recorded export of potato, onion and Kinnow and in one year, the Pakistan fruit and vegetable exports jumped from 538 million dollars to 625 million dollar.
He told that climatic condition of Pakistan is most suitable for producing high quality fruits and vegetables and the Punjab government has also made tremendous efforts to increase exports of fruits and vegetables from this province.
In this regard, an exhibition of Pakistani fruits and vegetables was also in Germany whereas handsome subsidy is being provided to the growers so that the farmers could produce high quality fruits and vegetables and play their role in enhancing Pakistani exports, he added.
However, he stressed the need to improve quality of local production up to international standard and said that new varieties of fruits and vegetables are also being introduced among the farmers besides imparting education and training to the growers to improve the quality of fruits and vegetables by utilizing new technologies for grading, processing, packing, storing and transporting of fruits and vegetables.
Source:-www.brecorder.com
As Rupee Falls, Exporters Take On China
BANGALORE: "With the drop in the rupee, we are now much cheaper than China. We can today manufacture some products at 10% lower costs," says V Raja, MD of TE Connectivity India, which designs and manufactures products that connect and protect the flow of power, data and signals.
Raja, who has been with TE Connectivity since 2011 and who was CEO of GE Healthcare India for the seven years prior to that, says his parent company - the $13-billion US entity previously called Tyco Electronics - is examining the economics of exporting more out of India. "We are establishing a new facility in Bangalore, and we could create additional capacity for export if needed," he said.
The potential silver lining in the massive drop in the rupee value is beginning to emerge.
Manufacturing has been one of India's weakest links, but the rupee fall now makes a variety of products more exportable or import-substitutable. China, which has been the factory to the world for many years, has seen its currency actually appreciate slightly against the dollar during the past few months that the rupee collapsed, making Indian products even more attractive.
J Crasta, whose company CM Envirosystems makes environmental testing chambers to test a whole range of products, including missiles, says his exports have risen three-fold this year, in part due to the rupee depreciation. "By the end of the year, we might touch Rs 25 crore in exports, compared to about Rs 4 crore last year. We improved our product quality a lot, making them as good as or better than German and Japanese ones. But thanks to the rupee, we are now very, very competitive globally. The Japanese want to buy from us, and seeing that some Italians have come to us," says. Crasta, who is also the Karnataka head of industry chamber Assocham.
The depreciation comes at a time when the government has initiated significant measures to boost manufacturing.
Under the modified special incentive package scheme for the electronics sector announced last year, wherein it provides an attractive capital subsidy, the government is said to have already received project proposals worth Rs 11,500 crore. Of these, some have been approved, including a Rs 406-crore investment by Samsung to manufacture smartphones in Noida, and a Rs 544-crore investment by Bosch Automotive Electronics to make electronic control units of cars.
"The rupee depreciation is the icing on the cake," says P V G Menon, president of the India Electronics & Semiconductor Association (IESA). A study by IESA, which is yet to be concluded and which seeks to understand India's disability in manufacturing in comparison to China, finds that India has a 12-13% disability in certain high volume products, but has a 1-2% advantage in certain other industrial products such as flat panel displays. "Now with the depreciation, these figures may be more in favour of India. Labour in China has become four times as expensive as in India, and many companies are today looking at a China-plus-one strategy. So we should benefit," Menon says.
Electronic products is one of India's biggest import items currently, and is growing so rapidly (it grew 30% to Rs 1.57 lakh crore in 2011-12 over the previous year) that some estimate it will cross the oil import bill by 2020 if there aren't major import substitution efforts.
"In the last 18 months, there has been some movement in manufacturing from China to India largely in precision engineering as we are equipped in terms of technology and people. Also, China has lost its price-competitiveness in regular manufacturing," says Tamilselvan Sankaran, technical director in Detroit-headquartered engineering support services and technology solutions company EASi Engineering. But he says he is yet to see an impact due to the rupee depreciation.
For most, that could take time. It takes time to change customer mindsets and in many cases, companies have signed long-term contracts.
Sanjay Nayak, co-founder of Tejas Networks that makes telecom optical transmission products, says Indian customers have the choice to buy from Tejas or from a foreign vendor. "Many today have contracts with foreign vendors, but they should be motivated to shift in the medium term," he says. Nayak says Tejas is also more export-competitive now - it sells in over 60 countries - given that 50% of the cost of his product is the value addition that the Indian company makes on top of imported components.
But some of the older challenges to exports and manufacturing continue and will limit the potential. Infrastructure in terms of roads and ports are still problem areas. "Anomalies in the tax structure has to be rectified," says Anwar Shirpurwala, executive director in hardware association MAIT, referring to the lower customs duties on finished products in comparison to that on components.
TE Connectivity's Raja says labour laws are a critical concern for his parent company. "If I can't downsize in bad times, it's a big problem for me because we operate at very low margins. Global companies recognize India's capabilities, even Airbus and Boeing buy from me. If some of the problem areas are addressed, the potential is huge," he says.
Source:-timesofindia.indiatimes.com
Rupee Free Fall Against Dollar Likely Over, Say Forex Dealers
Sep 08 2013
Mumbai: Bankers are saying the worst is over for India’s currency. The rupee, which hit a record low of 68.85 a dollar on 28 August, has staged a dramatic recovery and since risen 5.5% to 65.25 on 6 September.
The Reserve Bank of India (RBI) on 28 August allowed oil marketing companies to buy dollars from the central bank through a swap window and followed this up on 4 September with allowing banks to swap their dollar deposits with it at a special concessional rate of 3.5% for at least three years and permitting local banks to raise 100% of their core capital from overseas all on 4 September. Such borrowing can also be swapped with RBI at 1% less than the market rates.
These measures and the passage of a few crucial bills in Parliament have restored investor confidence in the currency.
The rupee won’t go anywhere close to Rs68 per dollar in the next three to six months as dollar inflows from last week’s RBI moves and a likely shrinking trade deficit will support the currency, according to Agam Gupta, managing director, fixed income trading India, at Standard Chartered Bank Plc.
“I expect at least $15 billion to come from RBI’s recent moves on foreign currency deposits and allowing banks to raise higher amount of capital from abroad. Trade deficit is also likely to shrink and the government may announce more measures to curb gold and oil imports,” Gupta said, adding that all these measures mean that “the worse is over for the rupee.”
The trade deficit is the difference of a country’s exports and imports.
Gupta expects India’s deficit to ease to $10 billion in August from $12.27 billion in July as the value of exports rise and imports remain stable.
The rupee’s “secular downward move” is over, said Ashish Vaidya, head fixed income, currency and commodity trading, India, at UBS AG.
“We saw a phase in which the rupee fell sharply and more than other emerging market currencies. That phase is now over,” Vaidya said. “Yes, there are risks like a tapering by the US Federal Reserve and higher oil prices because of a possible US strike on Syria, but more or else the crisis is behind us.”
Higher oil prices are likely to worsen India’s current account deficit, which has ballooned to a record $88.2 billion or 4.8% of gross domestic product (GDP) in fiscal year 2012-13. Oil constitutes 80% of India’s imports.
Vaidya expects the rupee to be around 65 per dollar with a broader 62-65 per dollar range in the next three to six months.
To be sure, bankers do not expect the rupee to rise sharply from current levels. However, the sharp fall seen in the past four months is unlikely to be repeated. From 53.80 a dollar on 30 April, the rupee slumped 21.84% to 68.85 on 28 August.
The sentiment towards the Indian currency has turned for the better, said Manoj Rane, managing director and head of fixed income and treasury at BNP Paribas SA’s Indian unit.
“From here on, if the currency has to appreciate, we will have to see real capital inflows coming in,” Rane said. “I would think the RBI should target to keep the rupee value at Rs 65 per dollar because in times of global uncertainties it is better than the currency is a bit undervalued.”
A proposal from the BRICS (Brasil, Russia, India, China and South Africa) nations countries to launch a $100 billion currency reserve fund also arguers well for the rupee, according to Jayesh Mehta, managing director and country treasurer at the global markets group at Bank of America-Merrill Lynch.
On Thursday, the BRICS group announced the launch of a $100 billion currency reserve fund to tide over the likely end of the US Federal Reserve’s stimulus package. India will contribute $18 billion to the fund.
“It will create a buffer for the US tapering,” Mehta said, adding that he also expects $15 billion to $20 billion to come through bank deposits and fund raising from banks.
Besides the moves by RBI, two important developments in Parliament—the passage of the pension reform legislation that allows foreign direct investment of up to 26% in the sector and gives statutory power to the sector regulator and the land acquisition Bill—has also brightened investor sentiment.
Source:-www.livemint.com
Engineering Imports Adding To Current Account Burden: Eepc
8 Sep, 2013
NEW DELHI: Engineering export body EEPC India today said large imports of engineering goods, in addition to crude oil and gold, are exerting pressure on country's current account.
The CAD has widened to a record high of USD 88 billion or 4.8 per cent of the GDP for the fiscal ended March 31, from USD 78.2 billion in 2011-2012, about 4.2 per cent of the GDP.
The import-export gap in the engineering items is overly negative at USD 17 billion (2012-13) despite the fact that engineering items are among the largest contributors to India's total export basket, an EEPC India study said.
The engineering exports have not been picking up. They fell by 5.77 per cent in the first four months of the current financial year, it added.
"It is not only crude and gold imports which are causing India's CAD to swell but also several other items like industrial machinery and other capital goods," EEPC India Chairman Aman Chadha said.
While there are no domestic alternatives available for the crude oil and gold, import of engineering goods can be reduced by giving a boost to the capital goods sector, he added.
"It is very much doable, and nurturing the sector can make the country achieve a positive balance of trade in the engineering goods sector in the next five years," Chadha said.
The study said there are at least 79 tariff lines of different engineering products such as automotive engines, which have shown an annual compound average growth of as high as 35 per cent in some cases.
"For instance, imports of engines of cylinder capacity greater than 250 CC were only USD 114 million in 2005-06. The import of this item has now crossed USD one billion," it said.
"We must lower the manufacturing/engineering trade deficit. This can be done by only by promoting the production of capital goods sector in the country," the study done by EEPC India (formerly Engineering Export Promotion Council ) said.
In order to curtail import of engineering items, EEPC India said the government should immediately launch a Technical Upgradation Scheme.
"We must thus move towards promotion of valued - added goods in the country," Chadha added.
Source:-economictimes.indiatimes.com
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Onion, Cotton May Lose Export Incentives
September 8, 2013
Products like onion and cotton are likely to lose export incentives as there are restrictions on their outbound shipments, a senior commerce ministry official said today.
The matter is under active consideration of the Commerce Ministry. The issue came up during a meeting of senior officials of the ministry recently.
"The senior officials pointed out that some products like onion and cotton are on one hand availing export incentives under Focus Market Scheme (FMS) or Focus Product Scheme (FPS) while on the other hand there are curbs on their exports," the official said.
The objective of the FMS is to offset the high freight cost and other disabilities to select international markets with a view to enhancing export competitiveness.
It allows a duty credit of 2.5 per cent of free-on-board value of exports to countries that are identified as focus markets by the government. The duty credit may be used for import of inputs or goods including capital goods. The products covered under FPS are entitled for 2 per cent duty credit scrip.
In the case of onion, the government has fixed minimum export price of $650 per tonne and the commodity also avail export incentive under FMS or FPS.
"It is not logical that on one hand we are giving incentives to boost export and on the other, putting restrictions on the shipments," the official added.
Similarly, the government has imposed quantitative restrictions on the exports of cotton and cotton yarn.
Exporters can apply for registration certificate (RC) for a maximum quantity of 30,000 bales or actual quantity exported in the previous cotton season, whichever is less. One bale contains 170 kg of cotton.
Cotton production was estimated to be around 34 million bales for the 2012-13 cotton season (October to September).
India's cotton exports are likely to remain flat at around 10 million bales in the 2013-14 season due to lesser demand from China. China is the biggest importer of the Indian natural fibre.
Source:-www.business-standard.com
Russia Lifts Ban On Rice Imports From India
September 7, 2013
Russia has lifted the ban on imports of rice and peanuts from India, after about nine months. This followed a series of marathon meetings between the governments of the two countries and India’s assurance of adhering to global quality standards.
Indian exporters would be able to send consignments of rice, rice cereals and peanuts to Russia with immediate effect. In December 2012, Russia had banned imports of rice, rice cereals and peanuts from India after khapra beetle (Trogoderma granarium), a pest found in stored grain products and seeds, was discovered in a few consignments.
Earlier, the ban had strained trade relations between India and Russia. The resumption of exports comes at a time when the Centre is pushing high quantities of exports to secure dollars. This would, in turn, help address the government’s current account deficit.
A communiqué posted on the website of Agricultural and Processed Food Products Export Development Authority said, “The ministry of foreign affairs of the Russian Federation presents its compliments to the Embassy of India in the Russian Federation and has the honour to inform you based on the material on the results of the Rosselkhoznadzor delegation’s visit to India and the guarantees of the Indian side to comply with Russian phytosanitary requirements, Russolkhoznadzor considers possible to cancel temporary restrictions on the import of rice, rice cereal and peanuts from India to Russia starting September 1.”
“The ministry of foreign affairs of the Russian Federation avails itself of this opportunity to renew to the Embassy of India in the Russian Federation the assurances of its highest consideration,” it added.
Gurnam Arora, joint managing director, Kohinoor Foods (formerly Satnam Overseas), said, “Though Russia is not a big market for Indian rice exports, opening up this market would surely make a positive difference for exporters here.”
The issue was discussed at a recent meeting between Commerce Minister Anand Sharma and Russian Minister of Economic Development Alexey Valentinovich Ulyukaev on the sidelines of an Association of Southeast Asian Nations ministerial meeting in Brunei. Sharma assured sanitary and phytosanitary issues in exportable commodities would be addressed.
Vijay Setia, former president of the All India Rice Exporters’ Association, said, “The opening of the Russian market will help India’s rice exports grow.” India’s rice exports to Russia increased to $25 million in April-December 2012, compared with $4.5 million in the corresponding period of 2011.
Source:-www.business-standard.com