Industrial Corridor From Amritsar To Sagar Port

KOLKATA: The industrial corridor from Amritsar that was originally planned up to Dankuni will now connect the Sagar port, shipping secretary Vidyapati Trivedi said in Kolkata on Monday. This industrial corridor is patterned on the Delhi-Mumbai Industrial Corridor (DMIC) and will use the Eastern Dedicated Freight Corridor (EDFC) as a backbone. The industrial corridor from Amritsar will also leverage the inland waterway system being developed along National Waterway-I that extends from Allahabad to Haldia.



"The Amritsar-Delhi-Kolkata (now Sagar) Industrial Corridor will cover the states of Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and West Bengal. This is one of the most densely populated regions in the world where nearly 40% of India's population resides. This is also the region that needs a major push for industrialization and job creation. The Centre is expected to provide a support of Rs 5,749 crore over a period of 15 years for this corridor," an official said.



"There is no alternative to the ports of Kolkata and Haldia. After all, these ports handle cargo for the entire eastern and northeastern region of the country. The draught situation at Haldia is a problem though. That is why, projects like Haldia Dock-II and Sagar have been planned. The industrial corridor from Amritsar will also connect to Sagar," Trivedi said.



By mid-2014, the shipping ministry and Kolkata Port Trust will also finalize the agency that will build the deep-draughted port at Sagar, shipping minister G K Vasan said during the day. If this happens, the first phase of the port — the first deep-draughted one in West Bengal — is likely to become operational by the end of 2019, officials believe. This will solve a number of problems for the state and the Centre. While the port will boost much needed industrial growth in West Bengal, the Centre can also cut down on dredging subsidy that it needs to bear to maintain the Haldia Dock Complex (HDC). The annual dredging subsidy comes to around Rs 400 crore per annum.



"So far as the shipping ministry is concerned, we don't want any port to suffer. However, a decision has been taken to bring down the dredging subsidy. This will happen as more downstream projects develop. We hope to finalize the contract for the Sagar port latest by mid-2014. It will take a few more years for the facility to come up. So much expense for dredging will no longer be required after that," Vasan said.



"Between April and September this year, there has been a growth of 5.4% in the cargo handled by Kolkata Port Trust (KoPT). Capacity utilization of berths at the two ports of Kolkata and Haldia is about 62.5%. What is most encouraging is the Rs 12,000 crore investment commitment that has come in for this port facility," the shipping minister said. Of this Rs 12,000 crore, Rs 7,851 crore will be the cost for the port at Sagar where 55 million tonnes of cargo will be handled by 2019-20.

Source:- timesofindia.indiatimes.com

India May Spurn Eu Demand For Duty Cut On Auto, Parts .

NEW DELHI: India may reject demands by the European Union that the government slash import tariffs on industrial goods such as automobiles and auto components, making it unlikely that the two sides will finalise their long-awaited free trade agreement (FTA) anytime soon.



The trade and economic relations committee, or TERC, chaired by Prime Minister Manmohan Singh has decided that no new concessions should be offered under the proposed trade deal, something domestic manufacturers have been lobbying for.



New Delhi's tough stance spells more trouble for the much-delayed trade deal and dashes expectations that European automobiles, and wines and spirits would become cheaper for Indian consumers under such an accord.



The EU had sought concessions in 56 non-agriculture market access tariff lines, said an official aware of the stand of the TERC, the highest decision-making body on trade deals. "The TERC has decided that it would be difficult to accommodate most of these in view of the implications this has for our domestic manufacturing industry," the official said.



The 27-nation bloc wants duty on the auto sector to decline eventually to zero from the current 60-100%. However, India has resisted this due to the impact such a steep tariff reduction will have on local manufacturers.



The TERC also decided that "a final effort may be made by the department of commerce to push for a settlement of all issues based on existing offers and demands," the official said.



The panel also mandated secretaries at the ministries of finance, commerce, industrial policy and promotion and external affairs to examine the advantages and disadvantages of an FTA with the EU, the official said. This panel, along with the Planning Commission and the chairman of the Prime minister's Economic Advisory Council, will prepare an agenda for action by the government to boost India's global competitiveness.



India and the EU have been negotiating the broad-based investment and trade agreement (BITA) since 2007 and have held 15 rounds of negotiations in the last six years. The ministerial-level talks scheduled in June did not take place.



The EU has already made it clear that there can be no deal without India slashing tariffs on cars and allowing a higher foreign direct investment limit in insurance. The United Progressive Alliance is committed to raising the FDI limit in insurance to 49% from 26% but the move needs parliamentary approval.



The panel has, meanwhile, directed the department of commerce to take a "calibrated approach to FTAs", said the official cited above, suggesting that the government wants to ensure that such accords don't hurt local industry.



European Commission vice-president Joaquin Almunia had blamed India for the delay in finalising the trade pact during his visit to New Delhi last week. He had said that the ball was now in India's court. Commerce and industry minister Anand Sharma had demanded data secure status for India in his meeting with Almunia, something the EU is reluctant to give. This relates to information about customers and other entities remaining safe from theft.



The EU, for its part, wants restrictions on the movement of professionals based on sectors, which could adversely impact India's IT sector.



India has signed FTAs with about 20 countries including Japan, South Korea, the Association of South-east Asian Nations ( Asean), Sri Lanka and Nepal. It's negotiating market opening pacts with Australia, Canada and New Zealand, apart from the European Union.



Source:- economictimes.indiatimes.com

Looking At Increasing Raw Wool Imports To India: Woolmark Co

NEW DELHI: Australia-based leading wool textile firm The Woolmark Company today said it is looking at an increase in raw wool imports mainly of Merino wool from the country to India.



"We are expecting an increase in percentage of raw wool being imported to India in the 2013-14 season," The Woolmark Company Country Manager for India, Hong Kong and Taiwan Alex Lai told reporters here at an event.



The majority of this will be Merino wool which is of a very high quality, he added.



Australia is the world's second largest producer of greasy wool, producing about 345 million kilogrammes (Mkg) of wool and accounting for about one fifth of global wool production.



In 2012, 20 per cent of India's raw wool imports were from Australia. In the 2012-13 season, the raw wool import volume from Australia was at 20.9 Mkg (at least 88 per cent of this was Merino wool).



However in the 2013-14 season, raw wool imports from Australia so far have been 6.1 Mkg (at least 89 per cent is Merino wool).



Monte Carlo Fashions and Raymond Ltd, major importers of the raw wool supplied by the Woolmark Company in India, said they were working on introducing 'Cool Wool' in India, which can be worn in Indian spring and summer seasons, shedding the popular perception that wool is a seasonal fabric for winter.



"The perception of wool only being for winter is a myth. We will be promoting Cool Wool in India in spring-summer 2014," Raymond LtdBSE -0.54 % Director-Marketing Mrinmoy Mukherjee said.



Cool Wool is a range of fine, lightweight Merino wool fabrics and garments ideal for hotter climates and the spring summer season.



The Woolmark brand is owned by Australian Wool Innovation (AWI), a not-for-profit company owned by over 25,000 wool growers.

Source:- economictimes.indiatimes.com

Tax Evaders Can Be Traced, Warns Chidambaram

Cautioning tax evaders, Finance Minister P. Chidambaram on Tuesday said the central government was in a position to trace defaulters by constructing their full profile and possessed dossiers on them.



No tax evader could escape the government, he asserted.



"All financial transactions can be traced once you are identified as a tax evader. We can construct a 360 degree profile them," Chidambaram said at a programme.



Delivering the inaugural speech at an interaction with representatives of trade and industry on the Service Tax Voluntary Compliance Enforcement Scheme (VCES), the minister said: "In fact we have such profiles. We have dossiers on them."



He asserted that the government had the option to arrest and prosecute habitual offenders. Already, 13 such peoples have been taken into custody from various parts of the country.



Calling upon traders to utilise the VCES, the minister said it would enable them to come clean.



He mentioned several sectors - construction, couriers, telecom and security services - for failing to deposit with the government the service tax they collected.



He said the service sector comprised 55 percent of the country's Gross Domestic Product, while "a healthy number - 17 lakh - had registered for service tax.



"But of them, only seven lakh pay service tax, and the rest have forgotten. While some are no-filers, some others are stop-filers."



The VCES, in force since May 10, would continue upto Dec 31.

Source:- businesstoday.intoday.in

Indian Rupee Rises To 62.45 Per Dollar In Early Trade

Indian rupee kicked-off trade at 62.45 per dollar on Wednesday, up 5 paise compared to previous close of 62.50 per dollar.



Pramit Brahmbhatt of Alpari India feels the rupee will be rangebound today with a slight negative bias owing to a weak equity market and strong month-end dollar demand by oil marketing companies and other importers. However a strong euro and a weak dollar coupled with RBI's intervention in the market might aid rupee, he adds.



According to Brahmbhatt, the range for the day is seen between 62.1-63.10/USD.

Source:- moneycontrol.com

SAT upheld repayment of sum collected by appellant as it carried on Collective Investment Scheme wit

CL: Where appellant-company collected huge amount of money from investors for development of land by promising high returns either in form of profits or increased value of land, in view of fact that business carried on by appellant was in nature of Collective Investment Scheme which was undertaken without obtaining certificate of registration from SEBI, impugned order passed in terms of section 11AA, read with section 12 directing winding up of said scheme was to be confirmed

Limit for mandatory e-payment under ST reduced to Rs. 1 lakh from Rs. 10 lakhs

ST : Rule 6 of The Service Tax Rules, 1994 - Payment - Service Tax - Limit for Mandatory E-Payment Reduced from Rs. 10 Lakhs to Rs. 1 Lakhs

Definition of expression ‘Infrastructure Lending’ broadened; RBI notifies new Sub-sectors for the pu

BANKING : Financing of Infrastructure - Definition of 'Infrastructure Lending'

A manufacturer can’t be made liable to ST under Scientific or Consultancy Services

ST : A manufacturer of textiles is not 'a science or technology institution or organisation' and cannot fall under Scientific or Technical Consultancy Services

Sec. 40A(2) provisions can be invoked for an expenditure and not for sale to sister concern at a les

IT : Where assessee had charged less sale price from sister concern as compared to non-sister concerns, provisions of section 40A could not be invoked as no payment had been made for any item of expenditure

Speculative losses from share transactions could be set-off against profits from loans and advances

IT : Losses from sale and purchase of shares can be set off against profits of business of company from loans and advances

Only profits embedded in purchases made from grey market are taxable in hands of assessee

IT : Where though purchase of raw material was not made from party from whom assessee claimed but such material was purchased from open market incurring cash payment, only profit element of such purchases and not entire purchases was to be added to income of assessee

Interest on late payment of taxes to be paid suo-motu; no time limit to issue show cause notice for

Excise & Custom : Interest being appendix to principal amount is required to be paid suo motu by an assessee; therefore, there is no time-limit prescribed under law for issuance of show-cause notice for recovery of interest amount

Re-assessment of parents to club minor’s income not justified if assessment of minor already conclud

IT: Reopening of assessment on ground that income shown in return of assessee's minor children was that of assessee was bad in law, when assessment in case of minor children had been completed before issue of notice under section 148

Complaint alleging mere oppression without any infringement of shareholder’s right liable to be reje

CL: Where petition filed under section 397 made only directorial complaint and did not allege any act of oppression and mismanagement which infringe petitioner's right as shareholder, same would be liable to be rejected under Order 7, rule 11(a) of CPC

Assistance in financial and risk management decision is a ‘technical service’; FTS under India-US DT

IT/ILT : Where assessee-company was making use of advice, input experience, experimentation and assistance rendered by USA based company in its decision making process of financial and risk management, etc., services so rendered being technical in nature as mentioned in clause 4(b) of article 12 of India-US DTAA, assessee was liable to deduct tax at source while making payments for said services

Charge sheet against an IRS for dishonest deeds not maintainable if it hasn’t been approved by Finan

Service Matter: Where Additional Commissioner of Income-tax was served with a charge sheet alleging that he failed to maintain integrity and exhibited a conduct which was unbecoming of a Government servant, charge sheet having not been approved by disciplinary authority, i.e., Finance Minister, was non est in eye of law

Exports May Get Priority Lending Status Shortly, Says Fieo Chief

Exports sector may soon get the priority sector lending status from the lenders as the discussions at the finance ministry and Reserve Bank of India (RBI) on the issue are now at an advanced stage, says top official.



Disclosing this to ET, the president of Federation of Indian Export Organizations (FIEO) M. Rafeeque Ahmed said the Federation was requesting the government to fix at least 5% in the current priority sector cap of 40% for exports.



"The idea is to ensure credit flows to the exports sector. Banks will be compelled to lend to exporters with priority sector lending status. I hope the lenders will give priority sector status to exports and I am sure something will come up in the next couple of months," said Rafeeque.



He said a high-level delegation of exporters led by FIEO was planning to meet the RBI Governor this month-end to discuss the issue. Rafeeque was in Hyderabad on Monday visiting the Andhra Pradesh Trade Promotion Corporation (APTPC), where the Corporation's managing director Sadhu Sundar made a presentation on the export performance of Andhra Pradesh. The APTPC MD said the state expects to report a growth of 16% this fiscal over last year's exports of Rs 1.33 lakh crore.



Rafeeque said the Indian merchandise exports during the second half were expected to see a growth of 12-15%. "The government of India has fixed a target of $325 billion exports for this year. We are sure that this year we will be able to make that number and even exceed it. We see it between $330-350 billion."



The FIEO president said all the items in the export basket were doing well now. In the beginning of the year, gems and jewellery, oil, electronics and engineering goods suffered slowdown but they picked up momentum subsequently. Textiles, pharmaceuticals and leather were doing very good among the better performing sectors.



"The US economy has stabilized and the confidence level is very good. That is what is giving us a biggest growth. And also lately, the European Union has also stabilized. While emerging markets such as Latin America and others are also providing big opportunities, the only worrying thing for us now is China that is not picking up well. Our imports from China are much higher than our exports," said Rafeeque Ahmed.



The FIEO president said the dollar to rupee at 60-62 would help Indian exporters to compete better in the market. The Federation expects the dollar to rupee will hover at around 62-64 over the next 3-4 months.

Source:- economictimes.indiatimes.com

Belgium Raises Issue Of 2 Percent Duty On Diamond Imports By India

Belgium today raised the issue of imposition of 2 per cent duty on imports of polished and cut diamonds by India during a meeting with Commerce Minister Anand Sharma.



Diamonds account for a large part of trade between India and Belgium.



The diamond duty issue was discussed at the meeting of Sharma with Princess Astrid of Belgium and its Deputy Prime Minister Didier Reynders here.



According to an official, Sharma conveyed to the visiting side that the measure was necessitated due to economic reasons and the tax is applicable for imports from all the countries - not targeted specifically at diamond imports from Belgium.



"The Belgian side discussed the consequences of the recent special import tax of 2 per cent re-instituted by India on exports of polished and cut diamonds," the official said.



Of the world's polished diamond market, India's share is 60 per cent in terms of value, 85 per cent in terms of volume and 92 per cent in terms of pieces.



Eleven out of every 12 cut and polished diamond set in jewellery worldwide are processed in India. The cutting and polishing of diamond employs a million people in the country.



Antwerp in Belgium on the other hand is the key destination for rough diamonds.



More than 80 per cent of the world's rough diamond volume is traded through Antwerp. About 40 per cent of the world's natural industrial diamonds pass through the city.



Sharma also conveyed satisfaction over the signing of MoU between the two sides for exchange of information/data sharing on Kimberley Process.



KP is a joint initiative by governments, industry and the civil society to stem the flow of conflict diamonds - rough diamonds used by rebel movements to finance wars against legitimate governments.



Source:- economictimes.indiatimes.com

Hc Stays Govt Order Banning Potato Export

The Calcutta High Court Monday stayed a notification issued by the West Bengal government, which banned inter-state trading of potato. Delivering the order Justice Sanjib Banerjee also directed the state to file its reply within next three days. The case will come up for resumed hearing on December 3.



The state government notification dated October 23 stated that no West Bengal trader would be allowed to export potato to other states. The traders were told to take permission from the government at least seven days before exporting potato to other states.



The petition moved by Madhusudhan Sen, a potato merchant, alleged that the notification was illegal and unconstitutional as the President's assent was required to issue such order.



For the petitioner, Advocate Arunav Ghosh pleaded that the notification was interference into the right to the free trade of the traders. He said the notification violated the article 301 of the Indian Constitution.



For the state, Advocate General Bimal Chatterjee argued that the state government imposed the restriction under Article 304 of the Indian Constitution. Justice Banerjee, however, pointed out that based on the Article 304 no such restriction can be introduced by a state government without the previous sanction of the President.



The court said that prima-facie the notification was unconstitutional, Ghosh later told the reporters.

Source:- indianexpress.com

No reassessment on mere allegation of bogus entries as AO failed to identify culprits for such entri

IT : Where assessment was reopened on ground that assessee was involved in bogus entries but reasons recorded for reopening did not mention who had given bogus entries, reopening of assessment could not be sustained

Iran Deal To Help India's Oil Imports; Boost Bilateral Trade

The country's corporates today said the deal between Iran and six world powers, including the US, will help in sourcing of oil imports from the Persian Gulf state and boost trade with India.



"India has maintained strong historic links with Iran and any step that makes it easy for Iran to engage economically with the rest of the world would help us in sourcing of oil imports from Iran," Ficci President Naina Lal Kidwai said.



"We will see possibilities for exporting our manufactured goods to Iran including pharma, IT, electronics, automobile spare parts and food processing. This relief will benefit Indian companies in promoting bilateral trade between India and Iran which at present is around USD 15 billion," she said.



Capping four days of negotiations, representatives the US, the UK, Russia, China, France and Germany (P5+1 group of nations) reached an agreement with Iran in Geneva yesterday.



Under the deal, Iran agreed to give better access to inspectors and halt some of its work on uranium enrichment. But Iranian negotiators insisted they still had a right to nuclear power.



In return, there will be no new nuclear-related sanctions on Iran for six months.



"The deal would not only reduce India's import bill as energy prices ease, but also make a big difference to inflation, which has remained bane of the Indian economy for the last six years, more so at the retail level," Assocham President Rana Kapoor said.



Iran will also stop enriching uranium beyond 5 per cent, the level at which it can be used for weapons research, and reduce its stockpile of uranium enriched beyond this point.



Iran will also receive sanctions relief worth about USD 7 billion on sectors including precious metals.



"The deal will go a long way in augmenting India's trade with the Persian country. Exporters were fighting shy of dealing with the Iranian buyers even in regard to the items beyond sanctions, largely because there was so much uncertainty over the payment transfer in the backdrop of sanctions," EEPC India Chairman Anupam Shah said.



India can export a large number of items to Iran , if unhindered access is provided in that market, including high-tech machinery, automobiles, components besides the agri products, Shah said.



The agreement -- described as an "initial, six-month" deal -- includes "substantial limitations that will help prevent Iran from creating a nuclear weapon," US President Barack Obama said in a nationally televised address.



India is likely to resume paying Iran in Euros after a historic accord between western super powers and the Persian Gulf state made it easier to import crude oil from one of its biggest suppliers.



India's total exports to Iran were merely USD 3.7 billion in 2012-13, much less than potential, under the impact of sanctions.

Source:- economictimes.indiatimes.com

Ban Import Of Cars Not Roadworthy: Pil

Angered by the malfunctioning of a luxury car, a private company is suing the government for allowing import of vehicles not suited for Indian roads.



Embassy Property Development Limited, a Bangalore-based company, has filed a public interest petition before the Karnataka High Court after a luxury SUV it had imported suddenly locked itself up and caused a four-hour jam on MG Road.



The petition alleges the Heavy Industries and Public Enterprises Ministry, the Karnataka government, the Automotive Research Association and other government bodies are not checking the roadworthiness of imported cars.



The realty company had spent `71.25 lakh in 2010 and imported a BMW X5 Sports Utility Vehicle for its CMD Jitu Virwani. On April 19, the SUV reportedly jerked to a halt and locked itself. The driver was unable to even open the windows and doors as they were jammed. The incident occurred during peak hours, and inconvenienced hundreds of road users.



The petitioner sent legal notices to the BMW group in Germany, BMW Asia (Singapore) and BMW India, asking them to return the full amount paid for the vehicle along with interest of 36 per cent from September 9, 2010. It has also sought `5 crore for putting the life of its chairman in danger.



Forbes magazine reports that BMW had recalled 1.3 lakh vehicles in 2010 and is now recalling 5.69 lakh vehicles sold between 2007 and 2012 in the US and Canada. Top BMW officials in India failed to reply to emails and to this reporter’s calls seeking to know if the vehicle in question was from any batch that had been recalled.



The petitioner has urged the court to direct automobile manufacturers to recall all imported vehicles that are not roadworthy.



“Due to the failure of the authorities, the right to life and liberty of the citizens of India is in danger,” the petition states.



The High Court directed the petitioner to seek necessary particulars under the RTI Act.



Advocate Aijth Kumar, who also owns a imported vehicle, said foreign cars are unable to run properly on Indian roads with potholes.



“Either the authorities make good roads or ban the import of such cars,” Aijth Kumar said.



On September 17, because the roads were bad, the steering mechanism of another car (not a BMW) froze and the vehicle skidded into the Beguvalli Lake, Thirthahalli.



A family of six was trapped inside. Luckily, they were saved.



While some companies like Fiat and Ford have been known to modify their cars for Indian conditions, the practice is not mandatory.



Globally, BMW has recalled many units of the X5 as and when problems with the steering, fuel pump and other components were discovered.

Source:- newindianexpress.com

Duties On Newsprint Import Cut

The National Board of Revenue (NBR) yesterday cut import duties on newsprint consumed by the country’s newspaper industry to 5 percent from 10 percent.

The NBR issued a statutory regulatory order bringing down the import duties, which came into effect yesterday.



The move came two months after the government agreed to reduce the duties on the imported newsprint following a tripartite meeting with the owners of the newspapers and leaders of the media community after the Eighth Wage Board was approved.

Following the meeting in September, the cabinet approved the decision and instructed the NBR to implement the decision.



The information ministry also recommended the reduction of the import duties.

Sources at the NBR said the value-added taxes and advance income tax for the newspaper industry would remain the same.

As a result, the newspaper owners will have to pay 26 percent as duties for importing a tonne of newspaper, compared to 31 percent earlier.

The duties on imported printing plates will remain unchanged at 2 percent.

Newsprint is the key raw material for the newspaper printing industry, and the country relies heavily on imports.



While placing the budget for the fiscal 2013-14 in parliament, Finance Minister AMA Muhith had proposed raising the import duty on newsprint to 25 percent from 3 percent.

Following an outcry from the industry, the rate was fixed at 10 percent when the parliament approved the budget.



But industry people still saw the high import duty as a threat for the printing industry.

The government, however, agreed to halve the import duties after newspaper owners accepted the Eighth Wage Board for raising salaries and other benefits for journalists.

The government has also doubled the rates for newspaper advertisements.

Source:- thedailystar.net

Dabhol Lng Import Terminal Gets Shipment After Six-Month Gap

The Dabhol LNG import terminal in Maharashtra has received a shipload of liquefied natural gas (LNG) after a gap of six months.

Ratnagiri Gas and Power Pvt Ltd (RGPPL) received a spot cargo from Nigeria on Sunday.

“It was the sixth successful unloading of LNG cargo since commissioning (of the terminal) in January,” RGPPL Deputy Managing Director A K Jana said.

LNG carrier Iberica Knutsen, with a capacity of about 135,000 cubic meters, discharged the cargo at Dabhol on Sunday, he said. The vessel had loaded the gas at Nigeria LNG Ltd’s Bonny Island facility.

The 5 million ton-a-year capacity LNG terminal was half ready when original builder and US energy major Enron Corp went bankrupt. The terminal and adjacent power plant were taken over in 2005 by RGPPL - a joint venture of state gas utility GAIL India and NTPC.

GAIL is now seeking another cargo from the spot market for January delivery at Dabhol.

Dabhol, about 340 km south of Mumbai, is India’s oldest LNG import facility and one of four such terminals in the country, Asia’s fourth-largest buyer of liquefied natural gas.

“As on date, global LNG suppliers like Gazprom, GdF, Shell, Sonatrach and GnF have successfully brought their cargoes at Dabhol terminal,” Mr. Jana said, adding that the terminal has now received LNG from BG Group, RasGas of Qatar and Nigeria LNG.

The shipment from Nigeria was the first imported by Dabhol after the monsoon.

Mr. Jana said RGPPL plans to build a breakwater at Dabhol port by 2016. In the absence of the breakwater, which guards ships against high tides, the terminal could operate at about 60 per cent of its capacity, with operations shut during the monsoon.

The contract for building a breakwater will be awarded by January, he said. “On completion, the terminal would be able to handle more than 80 cargoes in a year.”

GAIL owns 31.52 per cent stake in RGPPL - the owner of the 1,967 MW power plant and the adjacent LNG import terminal.

GAIL completed the plant in late 2010 and dredging work of the sea channel leading to Dabhol port was ready last year.

The company, as the commercial operator, has underwritten the re-gasification capacity of the Dabhol terminal for 25 years for lending support to the project.

Source:- thehindu.com

Gold Jewellery Exports Slip 7% In October

India's exports of gold jewellery slipped 7 percent in October as government restrictions continued to hit imports, and the trend is likely to continue for the rest of this year, industry experts said.



India's government has slapped a record 10 percent import duty on gold, its second-biggest import after oil, as it seeks to curb a swollen current account, and has said 20 percent of all imports must be turned around and exported as jewellery.



While exporters had increased sales during August and September, the measures delayed further supplies just as demand from the United States for the Christmas season weakened.



Gold jewellery exports fell 6.9 percent in October from the previous month to $608.95 million, the Gems and Jewellery Export Promotion Council (GJEPC) said in a statement.



Exports so far this fiscal year, from April to October, slid nearly 55 percent to $3.95 billion, the GJEPC said.



"Even if we have demand we are unable to supply due to inconsistency in securing gold," said Rajiv Jain, managing director with Sambhav Gems, an exporter to the United States andEuropean Union.



In order to prove export quantities, importing banks and trading agencies are required to submit the export performance of their first two import shipments while bringing in the third lot. That has meant irregular supplies for what used to be the world's biggest buyer of bullion.



"Now there is a problem with supplies of gold once again, which will weigh on the exports of November and December," said Pankaj Kumar Parekh, vice-chairman of the GJEPC.



Falling exports will have a knock-on effect on future imports because of the ties between the two and that will hurt domestic jewellers who should be seeing surging demand as the wedding season gets into full swing.



In October, India imported 23.5 tonnes, less than half last year's average monthly consumption of 60 tonnes, although it saw resurgence in August and September, when purchases slowed to a trickle as buyers struggled to work out the new restrictions.



Premiums paid by Indian buyers over London gold prices surged to a record $125 an ounce in October and tighter supplies in the next couple of months could push them even higher, Parekh said.



That would hurt domestic jewellery makers like Gitanjali Gems and Tara Jewels.

The World Gold Council (WGC) cut its forecast for Indian gold demand earlier this month, predicting that the country could also lose its crown as the world's biggest consumer of bullion toChina.



The WGC said Indian demand could be 900 tonnes in 2013 from its previous forecast of 1,000 tonnes. Demand is met partly by recycling, which rises when imported supplies dry up.



In September, as the restrictions bit, an Indian finance ministry official estimated gold imports would be 750-800 tonnes in the fiscal year to March 2014, down from 845-850 tonnes in 2012/13.



Meanwhile, India's exporters have been pushing silver jewellery and exports rose 52.73 percent in value terms to $109.89 million in October from a year ago.

The country's total gems and jewellery exports fell 6.67 percent to $20.94 billion between April and October.

Source:- profit.ndtv.com

CBEC clarifies yet more issues on VCES; SCN necessary prior to rejection of declaration

ST : Chapter VI of the Finance Act, 2013 - Service Tax Voluntary Compliance Encouragement Scheme - CBEC clarifies that : (1) defective applications not to be rejected; authorities must help in rectification (2) prior to rejection of declaration, a mandatory show-cause notice be issued within 30 days of filing declaration; and (3) benefit available under scheme even if part of tax dues paid in cash prior to filing declaration

No 'royalty' from sale of software, HC ignores amended Sec. 9 as DTAA more beneficial; Samsung’s cas

IT/ILT : Delhi High Court upheld the order of the Tribunal that amount received by the assessee under the license agreement for allowing the use of the software would not be royalty under the DTAA

Amendments by Finance Act 2007 to sec. 254D for abatement of settlement proceedings are constitution

IT : Amendments made to section 245D(4A)(i) and section 245HA(1)(iv) providing for abatement of proceedings were constitutionally valid

Net interest to be taken into account for computing deduction under section 80HHC

IT: It is net interest which has to be taken into account while computing deduction under section 80HHC as per Explanation (baa) to section 80HHC (4C)

Interest paid by Muthoot Finance in excess of statutory limit held as an exp. prohibited by law; not

IT : Where expenditure was laid out for purpose which constituted an offence or prohibited by law, same could not be treated as expenditure for which deduction could be claimed

Reassessment to deny section 54F relief when such issue was already considered in block assessment h

IT : Where deduction under section 54F was partly allowed to assessee in scrutiny assessment and same was again considered in block assessment proceedings, initiation of reassessment proceedings under section 147/148 on said issue on same materials was void ab initio and invalid

Mere omission to declare certain activity before department won’t amount to suppression to attract S

ST : Mere omission to declare activity before department would not amount to suppression of fact so as to warrant penalty under section 78

TPO should record reasons before rejection of most appropriate method chosen by assessee for TP stud

IT/ILT: Matter to be remitted back to Assessing Officer to enquire whether prices and other conditions were not influenced by GMBH to determine existence of AE relationship between assessee and said company

Officers couldn’t challenge promotion based on merger of grade I and grade II officers if merger acc

Service Matter: Once merger of Grade I with Grade II officer was accepted by petitioner-officers, further promotion on this basis could not be challenged

Sec. 25 Company registered with a foreign director eligible for sec. 80G approval

IT : Approval under section 80G is also permissible to a company registered under section 25 of Companies Act whose director is Foreign National

India May Have To Start Importing Iron Ore Soon: Steel Ministry

The Steel Ministry is of the view that India will have to import iron ore in the immediate future to meet significantly increasing demand from domestic companies.

“With many projects in the pipeline, both brownfield and greenfield expansion of steel capacity, iron ore requirement will increase significantly leading to imports of iron ore in near future,” the Steel Ministry has said in a recent presentation to the Planning Commission.

The Ministry in its mid-year plan review has identified iron ore availability as one of the challenges to achieve the steel production target of 300 million tonnes per annum (mtpa) by 2025.

With current production capacity of around 90 mtpa, India needs at least 140 million tonnes (MT) iron ore to meet its need. It requires 1.5-1.6 MT iron ore to produce one million tonne of steel.

“Domestic requirement of iron ore is increasing with the capacity addition in steel production. Between the 2008-09 and 2012-13 period, the demand for iron ore has gone up from 87.4 million tonnes (MT) to 124.8 MT,” it said.

India, the world’s fourth largest producer of steel after China, Japan and the US, had produced 78.31 MT steel during 2012-13. It is likely to slightly inch up in current fiscal.

During the January-October period of the current year, India produced 66.38 MT steel.

The Steel Ministry also said iron ore production has come down from 213 MT in 2008-09 to 136 MT 2012-13 due to ban on mining in Karnataka and sharp fall in production in Odisha.

“It would require sufficient time for 200 MT plus production (of iron ore),” the Ministry said.

The government has already taken steps discourage iron ore exports by raising the duty to 30 per cent.

As per the United National Framework Classification (UNFS) of mineral resources, total resource of iron ore in the country is around 28.51 billion tonnes, as on April 1, 2010.

Country’s iron ore production is expected to rise in the coming days with the Supreme Court partially lifting ban on iron ore mining in Karnataka, a producing state.

Source:- thehindu.com

Indian Refiners Say Iran Nuclear Deal Eases Crude Oil Import Process

The lifting of a European Union ban on insuring tankers carrying Iranian crude as part of a nuclear deal reached in Geneva on Sunday will ease the process of importing the Persian Gulf state's oil, according to Indian refiners. While officials from Indian Oil Corp, Hindustan Petroleum Corp and Mangalore Refinery & Petrochemicals Ltd said the removal of restrictions on shipping cover will enable them to purchase contracted volumes more easily, they said they don't intend to buy more than previously planned. "We can go ahead and import the contracted volume for this year," said Rajkumar Ghosh, the director of refineries at Indian Oil, the country's largest processor. The company has a deal to buy 1.2 million metric tonnes of Iranian oil in the year ending March 31, of which 0.5 to 0.6 million tons have been imported since April, he said. Middle East suppliers sell the bulk of their crude in long-term contracts.



The end of the EU ban is part of a first-step agreement that will give Iran as much as $7 billion in relief from economic sanctions over six months. In return for limiting its nuclear program, the interim deal provides for the release of $4.2 billion in frozen oil assets and will let Iranian oil exports continue at current levels, rather than requiring continued reductions by buyers, according to a White House statement.



It won't mean an increase in shipments after they were cut by 60 per cent since 2012, the US administration said.



Invalidated insurance

The insurance restrictions affected about 95 per cent of the global tanker fleet because the ships are covered under rules governed by European law. Carrying Iranian oil would invalidate ships' insurance against risks including spills and collisions, according to the International Group of P&I Clubs. The Japanese government started providing sovereign cover for its tanker operators while India was due to consider a 20 billion rupee ($320 million) fund to help cover imports.



"This is a precursor to overall easing of Iran sanctions," P.P. Upadhya, the managing director of Mangalore Refinery & Petrochemicals, said by phone. "We are importing about 500,000 tons every month since August, so we should reach our 4 million-ton plan by March."



India's crude imports from Iran are expected to total 11 million tons in the twelve months ending March 31, a drop of about 15 percent from the previous year, Petroleum Secretary Vivek Rae said November 8.



Insurance Pool

Hindustan Petroleum plans to import 0.8 million tons of Iranian crude by March if it can begin shipments next month, B.K. Namdeo, director of refineries at India's third-largest state-run refiner, said today. The country's processors are unlikely to exceed their targets in the current financial year, he said.



"We will be able to start importing Iran crude even without the government's insurance pool," Namdeo said.



In June 2012, there were 23 importers of Iranian crude; today, only six remain - China, India, South Korea, Japan, Turkey and Taiwan, according to U.S. officials. Since July 2012, the EU has also banned oil imports.

Source:- business-standard.com

Thai Rice Export Outlook Improves

Rice exports will likely fare better than expected, as demand for Thai rice should become more active next month, says the Thai Rice Exporters Association.



"From December-February, we expect Thai rice exports will experience good growth as demand for our grain recovers now that the price gap between Thai, Indian and Vietnamese rice has narrowed," said president Korbsook Iamsuri.



She said Thailand could see 7 million tonnes shipped this year, up from an earlier estimate of 6.5 million tonnes.



Ms Korbsook said next year's rice exports are projected to stay unchanged at 7 million tonnes, as there are yet no clear supporting factors driving shipments.



The latest rice report from the US Agriculture Department shows prices for most grades of Thailand's high- and medium-quality regular-milled white rice has declined by 6-8% over the past two months.



This is mostly due to sales of government rice stocks, a lack of large new sales and the recent availability of new rice from the early harvest of the new crop.



Prices for parboiled rice have declined as well, while those for aromatic grains have increased.



Thailand's high-quality, 100% grade B (fob vessel, Bangkok) milled rice for export was quoted at US$434 a tonne for the week ending Nov 11, down by $30 from the week ending Sept 9 and the lowest since January 2008.



In contrast, price quotes from Vietnam have increased since early September due mostly to recent large sales to the Philippines and China.



Thailand's price quotes for 5% broken grains are now just $21 a tonne above the quotes for Vietnam's 5% double-water-polished milled rice, down from almost $90 in early September and more than $150 early this year.



Source:- bangkokpost.com

Coffee Exports In 2013-14 May Slip Below Last Year's Level

India's coffee exports may drop from the last year's record level to 5.1 million bags in the 2013-14 marketing year, due to a dip in production as well as low export prices, a report has said.



The country is estimated to have shipped a record 5.2 million bags of coffee in the 2012-13 marketing year (October- September). One bag contains 60 kg coffee bean.



"Exports for 2013-14 marketing year are forecast at 5.1 million, down by 1,05,000 bags from last year's record level," the US Department of Agriculture (USDA) said in a report.



"Lower export prices, domestic crop reduced by monsoons and better yield in major coffee-producing countries are expected to temper Indian exports, but exporters are optimistic that significant volumes of coffee will be exported," it said.



However, foreign demand for Indian beans and processed coffee is expected to remain strong on the back of weaker rupee, the report added.



On weak export prices, the USDA said while Indian Arabica remained steady, prices of Robusta, which comprises the bulk of Indian exports, have dropped sharply in anticipation of a larger global supply. This supported the expectation that exports will be competitively priced. The USDA's projection of India coffee production is significantly lower than the Coffee Board of India's estimate of 5.7 million bags for 2013-14.



According to the report, heavy rain in major coffee-growing regions, especially in Karnataka that contributes 70% of the total production, appears to have reduced yields. The bulk of India's coffee production is exported and the domestic industry's marketing efforts are very much focused on export promotion.



There are indications that the popularity of coffee is increasing with the spread of both foreign and home-grown coffee shops, it said. However, exports continue to siphon a large amount of coffee away from the domestic market, and consumption estimates are unchanged, the report added.



Italy, Germany, Russia and Belgium are the top markets for Indian coffee exports.

Source:- economictimes.indiatimes.com

Additional conveyance allowance paid to Development Officers of LIC being a perquisite would be subj

IT: Where Senior Divisional Manager of LIC had issued a letter dated 7-4-2004 directing office to deduct tax at source on conveyance/additional conveyance allowance to be paid to development officers of LIC, said allowance was taxable being perquisite and, therefore, impugned letter had rightly been issued

Indian Rupee Opens Higher At 62.65/Dollar, Gains 21 Paise

Indian rupee opened higher by 21 paise at 62.65 per dollar on Monday as against Friday's closing of 62.86 per dollar.



Agam Gupta of Standard Chartered says globally, equities were positive and the Iran nuclear accord will add to positive sentiment. According to him, the range for the day is seen between 62.40-62.80/USD.



"Exporters are likely to sell dollars near the upper end of the range," he adds



The yen starts the week at four-year lows versus the euro and a four-month trough on the dollar, still very much the funding currency of choice in a trend that is likely to continue in this US hliday-shortened week.

Source:- moneycontrol.com

No penalty on assessee for transferring amount from PLA to Cenvat credit account to be used for paym

Cenvat Credit : Where assessee transferred amount from Personal Ledger Account (PLA) to Cenvat Credit account for paying service tax, said practice was held as non-prejudicial to revenue

RBI allows more time to banks to use dollar swap window if firm commitments are made before November

FEMA/ILT : Overseas Foreign Currency Borrowings by Authorised Dealer Banks

Sum paid to assessee by NRI from his NRE account proves genuineness of deposit; no addition for unex

IT: When it was established that amount in question was paid by NRI to assessee from his NRE account, no addition could be made under section 68 on that account

Frequent share dealings not enough to tax profit therefrom as business receipts if shares were shown

IT: Allegation of revenue that assessee had indulged into high frequency transaction or borrowed funds had been applied for investment in shares itself could not be ground to treat transaction in shares as business income

SC: Cenvat credit allowable to assessee even if supplier hadn’t discharged its duty

ST: Requirement of taking "reasonable steps" does not mean that assessee is required to verify from department whether duty stands paid by supplier because that would be practically impossible and would lead to transactions getting delayed; therefore, assessee is entitled to credit even if supplier has not paid duty to department

Additional depreciation available on windmill even on non-usage of electricity in core business of a

IT: Use of electricity in manufacturing activity of core business of assessee is not a precondition for grant of additional depreciation and, therefore, additional depreciation on windmill cannot be denied for want of use of such electricity in manufacturing of core business of assessee

Commissioner can’t dispose off an application seeking stay on order pending before CIT(A)

IT: Commissioner had no jurisdiction to pass an order on application seeking stay of order impugned in appeal pending before Commissioner (Appeals)

Developer deemed as dominant player when customer-banks only using its complex software for e-paymen

CL : Where consumer banks were totally depend on a particular developer of software for electronic payment system, prima facie said developer was a dominant player in market

Benefits arising from pre-payment of deferred sales tax to be included in computation of book profit

IT: Benefit arising on premature payments of 'deferred sales tax loans' at net present value should be excluded in computing income under normal provision of Act

Current year’s loss can be set off against undisclosed income declared in survey

IT : Since, income declared in survey falls under one of the heads of income, current year losses can be set off against such undisclosed income

Long-term capital losses can be set off against short-term capital gains computed under sec. 50

IT: Short-term capital gain computed on long-term depreciable assets can be set off against long-term capital loss

SC upholds levy of penalty on owner of goods instead of person-in-charge of goods

CST & VAT : In case of goods being carried by vehicles without proper declaration, penalty can be levied on 'person-in-charge of goods', which includes 'owner of goods'; therefore, penalty levied on 'owner of goods' instead of incharge of vehicle was valid

HC has jurisdiction to try an appeal against ITAT’s order which was passed within local limits of HC

IT: Where impugned order had been passed within local limits of territorial jurisdiction of High Court, High Court would have jurisdiction to try appeals against such impugned order

Sec. 12AA requires check on genuineness of activities of trust and not its application of income, ru

IT: Object of section 12AA is to examine genuineness of objects of trust, and not application of income of trust for charitable or religious purposes

Benefits arising on one time settlement of loans isn’t a remission of liability; out of ambit of sec

IT : Amount waived off in furtherance of one time settlement of assessee's due, would not be added to assessee's income under section 41(1) as revenue receipt

Higher value of jewellery declared by assessee to claim higher VAT refund acceptable for its import

Excise & Custom : When assessee has declared value of jewellery at 14,500 pound for getting VAT Refund from British authority, then, on import of such jewellery in India, value shall be taken at 14,500 Pound and assessee cannot contend that value of 14,500 pound was declared on higher side to claim more refund British authority

Sum paid to NR to identify potential customers and to conduct market survey abroad held taxable as F

IT/ILT: Payment to a foreign company for marketing survey and identifying potential foreign customers for assessee's product were only consultancy services taxable in India

India, Eu To Enhance Cooperation In Resolving Competition Issues.

India and the European Union have signed a Memorandum of Understanding (MoU) to increase cooperation between the European Commission's competition department and the Competition Commission of India.



The agreement was signed in the Indian capital city of New Delhi on Thursday by European Commission Vice President Joaquin Almunia, and Ashok Chawla, the Chairman of the Competition Commission of India.



"The Memorandum of Understanding is an important step and a sign of our commitment to further deepen our already excellent relations with the Competition Commission of India. It will give new impetus to our cooperation with India in the enforcement of our respective competition laws," Almunia said after signing the document.



The MoU creates a dedicated framework to further strengthen cooperation between the European Commission and the Competition Commission of India in the area of competition law enforcement.



Under the new framework, the parties may engage in discussions on competition legislation, share non-confidential information on legislation, enforcement, multilateral competition initiatives and advocacy, and engage in technical cooperation regarding competition legislation and enforcement.



The MoU also provides that one authority may request the other to carry out enforcement activities, if one believes that anti-competitive actions are being carried out in the territory of the other. It also provides a mechanism to avoid conflicts if one authority's enforcement activity may affect the other in its own enforcement activity.



According to an EU press release, the Memorandum of Understanding sends a positive signal for intensified cooperation on competition matters between India and the EU.



Notably, India's Competition Act entered into force in 2007, which is also the year when the enforcement authority, the Competition Commission of India, became operational.



On the other hand, European Commission enforces competition rules for the European Union as a whole, notably for the review of mergers and acquisitions involving companies with a turnover above certain thresholds and the fight against cartels and abuses of dominant market positions.



The European Commission has cooperation agreements with competition authorities of many countries outside the EU. With some of them, the cooperation is based on bilateral agreements dedicated entirely to competition. In other cases, competition provisions are included as part of wider general agreements such as free trade agreements, partnership and cooperation agreements as well as association agreements.



Source:- rttnews.com

Peru Opens Trade Office In New Delhi.

On the initiative of Peru's export and tourism promotion agency PromPeru, the new OCEX aims to contribute to sustained economic growth in Peru by promoting its exports of goods and services. Mincetur plans to increase the number of trade offices abroad from the current 18 to 34 next year.



Meanwhile, Peru's Regional Exporters Association of Lambayeque (AREX) indicated the fruit and vegetable sector could benefit from a number of free trade agreements down the road.



AREX coordinator, Paola Corvacho Valderrama, said the Turkish market shows promise due to the population's growing consumption of fresh, frozen and canned fruits and vegetables. Corvacho said the growing consumption trend is due to a large, young population concerned about maintaining good health.



"This market shows potential for bananas, watermelons, spices and nuts, whose average growth rate in the last five years has been 37 per cent," Corvacho was quoted as saying by website Fresh Fruit Portal.



Growth in the middle class and increasingly westernised youth could create possibilities, however, for bananas, table grapes, sauces, coffee and spices.



India has shown possibilities for vegetable dyes. Import tariffs are quite high, however. This would be a point of negotiation between Peru and India. "A free trade agreement with India, however, would benefit our country in the high-end medication sector, since this is an industry that attracts investors from Germany and Japan," Corvacho said.



Source:- freshplaza.com

The qualifications set out for Chief Information Commissioner are not ultra vires Indian Constitutio

CL : Sections 12(5) and 15(5) providing that Chief Information Commissioner and Information Commissioners have to be persons of eminence in public life with wide knowledge and experience in different fields mentioned therein, namely, law, science and technology, social service, management, journalism, mass media or administration and governance, are not ultra vires Constitution of India

Govt Plans More Wheat Export Tenders

Buoyed by the strong response to its attempt to sell wheat from state-run warehouses, the government is planning to launch a series of export tenders in January, February and March to sell a total of about two million tonnes (mt) in foreign markets.



Food ministry officials said the next tender, for the export of 210,000 tonnes, would be floated on December 12. The wheat would be exported from the Kandla, Visakhapatnam and Pipavav ports, through tenders floated by PEC and MMTC.



Earlier, the government had to reduce the base price for export from $300 a tonne to $260 a tonne, after its attempt to export 0.15 mt was cancelled, as the bids received were much lower than the base price.



On Tuesday, state-owned trading firms State Trading Corporation, MMTC and PEC received bids in the range of $284.7-289.9 a tonne for the export of 0.34 mt from Food Corporation of India (FCI) godowns. The highest quotations received by the three trading firms were higher than the government’s floor price of $260 a tonne for the export of FCI-procured wheat.



“We expect to get a good price in the coming months, too,” said a senior government official. “We were hoping to get a price of $270-275 a tonne, but the price quoted (about $290 a tonne) was unexpected, which showed Indian wheat had started commanding a premium in international markets.” He said the price received was even more than that quoted for Black Sea wheat, one of the most valuable wheat brands in the world.



“In the coming months too, the trend is expected to be maintained because according to information, the Australian wheat crop is not as good as expected. This will enable us to sell more in foreign markets,” he said. Exporting wheat was more profitable for the government than selling it domestically, as at an average price of $285 a tonne, the government was expected to earn about Rs 18,000 a tonne, while in India, it had to sell at Rs 16,000 a tonne, he added.



In 2012-13, the government had earned $1.4 billion by exporting 4.2 mt of wheat through public sector undertakings. Last financial year, Indian wheat had fetched an average price of $311.38 a tonne.



India is exporting wheat from state-run warehouses, as consecutive years of bumper harvests have filled these godowns to the brim. According to Food Corporation of India, wheat stocks in state godowns were estimated at 34 mt as on November 1, against the requirement of just 14 mt.

Source:- business-standard.com

India To Retain Top Rice Exporter Rank, Says Care Ratings

MUMBAI: India is expected to retain its top rank as rice exporter in 2012-13 marketing year on bumper production and strong export demand for Indian rice, both basmati and non basmati.



India's production of rice hit an all-time high in 2011-12 crop year (period from July to June) and crossed the 100 million tonnes level.



India has also emerged as the world's leading exporter of rice in 2011-12 (period from October to September) and is expected to retain its top rank as rice exporter in 2012-13 due to bumper production and strong export demand for Indian rice, both basmati and non basmati, CARE Ratings said in its report here today.



According to the first advance estimates released by the agriculture ministry, India's kharif rice crop output is expected at 92.32 tonnes during the 2013-14 crop season, which is more or less in line with the kharif rice output of 92.76 tonnes last year.



India is expected to retain its top rank as rice exporter in 2012-13 marketing year given the second-highest level of production during the 2012-13 crop year, large public stocks, liberal export policy and weak currency.

Source:- economictimes.indiatimes.com

India's Rapeseed Output To Rise, May Curb Palm Oil Imports From M'sia

21-Nov-2013

India could produce up to 13 percent more rapeseed oil in 2014 as farmers take advantage of monsoon-soaked land to grow the more lucrative crop, traders said, which would help curb imports and its trade deficit.



Increased domestic rapeseed output could help India, top global importer of edible oils, rein in its purchases of palm oil from Malaysia and Indonesia next year.



Rape needs damper conditions than do other crops such as wheat or guar gum, and this year's monsoon was heavier than in 2012.



Traders expect rape acreage to rise by 4.5 percent to 7 million hectares and output of rapeseed to reach 6.7 million tonnes from 6.4 million.



That would boost rapeseed oil production by 13 percent to 2.6 million tonnes, they estimate.



''Rapeseed oil supplies could be about 300,000 tonnes more in comparison to last year," Sandeep Bajoria, chief executive of the Mumbai-based Sunvin Group, said.



India's edible oil demand totals 17-18 million tonnes a year and is growing by 3 to 4 percent a year. Imports usually account for about 60 percent of consumption and weigh on its bulging current account deficit.



Rapeseed planting usually starts from October in the world's third-biggest producer after China andCanada, and farmers have already planted over 4.5 million hectares. The harvest starts from February.



Prices are already up 7 percent from the start of the planting season, with levels quoted in Rajasthan at 36,550 rupees ($580) per tonne.



The desert state of Rajasthan is the main producer of rapeseed, providing more than half of total output. But in last year's drier conditions, many farmers turned to guar, which requires less rain and has been in strong demand due to its role in the extraction of shale gas.



Rapeseed produces both oil and meal, making returns better than wheat, which also needs more rainfall while it grows.



"Rapeseed is preferred this year over other winter crops like wheat and guar," said Deepak Kanda, president of the Shri Ganganagar Oil Millers Association in Rajasthan.



Some traders voiced concerns, however, that cold weather could still crimp rapeseed output.



"Weather conditions in January will hold the key to the crop's output size," said Govindbhai G. Patel, managing partner of G G Patel & Nikhil Research Co.



Annual demand for cooking oils in Asia's third-largest economy is growing by at least half a million tonnes a year as it adds about 19 million people to its population and its middle class becomes increasingly wealthy.



India's cooking oil imports rose 4 percent to a record of 10.4 million tonnes in the year to October. ($1 = 62.545 Indian rupees) .



Source:- reuters.com

India Takes Steps To Reduce Crude Oil Imported From Iran

21-Nov-2013

India has decided to bring down crude oil imports from Iran by 12 per cent, or 1.6 million tonnes (mt), during the current financial year.



Crude imports from the West Asian country for 2013-14 have been pegged at 11.7 mt, compared with 13.3 mt India shipped in the previous fiscal. In 2011-12, the Iranian crude imports were at 18.1 mt.



Banking sources told Business Line that though the import volume is set to come down in 2013-14, in terms of value, the trade figure for the first half of the fiscal saw increase because of changes in the value of the commodity and the currency .



Rupee depreciation against the dollar (as Iranian crude is priced in dollar and 45 per cent of imports are rupee-based payments ) and higher average crude prices have been the primary reasons for the difference.



India had piled up payment arrears of $1.53 billion (55 per cent of crude imported, which is outside the rupee-settled arrangement, over the past few years) until the end of the last fiscal.



Both countries have been trying to find ways to solve the payment issue in view of the sanctions from the UN, European nations, and the US. India’s decision to reduce Iranian crude import is linked to the restrictions. India has also been trying to increase exports to bridge the trade-value gap.



Value of Indian exports to Iran during the first six months of 2013-14 has shot up substantially. According to banking sources, exports in the first quarter stood at Rs 6,500 crore against Rs 570 crore in the corresponding quarter last year. The second quarter exports figure was at Rs 6,400 crore (Rs 2,100 crore).



India’s export basket to Iran consists of agricultural food items, such as rice, soya and tea (around 72 per cent), pharmaceuticals (10 per cent), alumina and minerals (5 per cent), iron and steel (4 per cent) and chemicals (4 per cent).

Source:- thehindubusinessline.com

Sugar Import Body's Bid Struck Off Roll

21-Nov-2013

An urgent application by the Association of South African Sugar Importers (Asasi), brought against the International Trade Administration Commission (Itac), was struck off the roll by the North Gauteng High Court because the lack of urgency was “a fatal defect”.



Asasi sought an urgent interdict to prevent the commission from continuing with its investigation relating to an application for an increase in the dollar-based reference price for sugar imports to protect the sugar industry in the South African Customs Union (Sacu).



The application was brought by the South African Sugar Association (Sasa) in April, asking for an increase from the existing $358 per ton to 764 per ton.



Asasi says the increase in the dollar-based reference price will raise imported sugar prices by 44 percent.



SA’s sugar sector has been haemorrhaging about R50m a month and thousands of jobs could be lost as a result of sugar imports that have risen to 400,000 tonnes this year.



The commission accepted the application and initiated an investigation in September. The sugar association said in its application the dollar price was not triggered since April 2009.



The dollar-based reference price sets a floor price for sugar in the Sacu market by increasing tariffs if the world sugar price is low, and decreasing tariffs when the world price is high.



According to Willemien Viljoen, researcher at the Trade Law Centre, the variable tariff formula applicable to sugar imports is calculated as the difference between the reference price of $358 per ton and the 20-day average of the London No5 sugar settlement price (the world price).



The tariff will be adjusted if the 20-day world price falls below the reference price by more than $20 per ton for 20 consecutive days, she explained in a research document.



Asasi requested a review of the decision to initiate the investigation of an increase from the $358, as it says Itac failed to properly verify the data before initiating the investigation.



When Itac gave no undertaking to put its investigation on hold until there was a review of its decision, Asasi approached the court on an urgent basis to stop it.



Itac opposed the urgent application on several grounds, including the fact that the application lacked grounds for contending urgency.



Itac spokesman Thembinkosi Gamlashe said yesterday the commission was considering a final determination of the tariff regime for sugar early next month and would then hear oral presentations from, among others, Asasi, Sugar on Tap, Tiger Brands, XA International Trade Advisors on behalf of Snackworks, and Webber Wentzel on behalf of Sasa.



In its application to Itac requesting the investigation, Sasa expressed concerns about the time it took to implement new duties from the time the world price drops below the floor price, saying this could be up to five months.



In that time a “significant tonnage” of imported sugar could enter the Sacu market, Sasa said.



It said the request for tariffs was not because the industry is inefficient, but because of the distorted world market.

Source:- enca.com

Coal India To Appoint Agency To Import Coal

KOLKATA: State-run Coal India said it will soon appoint an agency to import coal for its consumers even though it is yet to receive a firm fuel commitment from power producers.



A presidential directive earlier this year mandates Coal India, the world's biggest coal producer, to meet the fuel supply gap for power producers through imports. Following the directive, the company had asked for preliminary commitments from power firms for coal imports.



Although about 50 companies had agreed, none of them has intimated its commitment, which includes payment of an advance for imports.



"We have not yet received firm commitment for coal imports," a senior Coal India executive said.



Coal India recently invited expressions of interest from public sector agencies for importing coal on its behalf. "While earlier it was planning to import 8 million tonne through these agencies, it has now decided to import only 5 mt, which is estimated to be valued around Rs 3,000 crore," the official said, adding that it will import coal only if it has received the full cost in advance. The firm had invited expressions of interest from foreign producers for importing and supplying to its consumers for 10-years at a row.



However, the price quoted by foreign traders and producers turned out to be more than the price at which its largest consumer, NTPC, was importing. The power producer had shown interest in sourcing 10 mt of imported coal through Coal India.



"The foreign companies were asking a premium on the market price because it had to commit 10 years of supply. NTPCBSE 0.13 % did not agree to the premium and the arrangement did not work," the Coal India executive said.

Source:- economictimes.indiatimes.com

Cme Cuts Initial Margins For Crude Oil, Gold Futures

The CME Group, parent of the Chicago Board of Trade, has lowered the initial margin for crude oil for the second time in a month and cut margins on a range of other futures contracts.



The exchange operator on Thursday lowered initial margins for Crude Oil Future NYMEX (CL) by 8.1 percent for speculators to $3,740 per contract from $4,070. CME also cut margins earlier in November.



Brent crude oil jumped $2 to end at its highest in more than a month on Thursday.



The Chicago-based exchange operator also reduced initial margins for Comex gold and silver futures by 9.4 percent and 11.1 percent respectively.



CME lowered Comex 100 Gold futures (GC) margins for speculators to $7,975 per contract from $8,800 and cut Comex 5000 Silver futures (SI) margins to $11,000 per contract from $12,375.



The move partially reversed a 25 percent hike in gold margins in June after prices plunged to their lowest in three years.



Margins are deposits paid by investors in futures markets, where full payment is made when contracts mature, to an exchange or clearing house to cover the risk of default by that investor and typically are based on the largest most-likely daily market move.



Exchanges typically raise margins to mitigate risks as price volatility in the market increases.



CME also cut maintenance margins for gold to $7,250 per contract from $8,000.



The decrease of $750 per contract in gold speculative maintenance margins -- multiplied by both sides of the open interest in the market, which stood at 403,603 contracts on Thursday -- suggests $605 million less in margin escrow.



The exchange operator lowered Comex Copper futures (HG) initial margins for speculators by 14.3 percent to $3,300 per contract and that of RBOB Gasoline futures (RB) by 5.6 percent to $4,675 per contract.

Source:- reuters.com

Indian Rupee Falls 36 Paise To 62.93 Vs Us Dollar On Fresh Taper Worries

The Indian rupee fell for the second day against the US dollar today in tandem with local equities, losing 36 paise to 62.93 as indications of an imminent tapering by the Federal Reserve strengthened the US currency.



Lower stock purchases by foreign institutional investors and sustained dollar demand from importers, mainly oil refiners, also put pressure on the Indian rupee, a forex dealer said.



At the interbank foreign exchange market, the rupee opened weak at 62.85 a dollar from 62.57 previously and moved in a tight range before ending at 62.93, a fall of 36 paise or 0.58 per cent. Yesterday, it declined 21 paise or 0.34 per cent.



In New York, the dollar rose against the euro after Federal Reserve minutes showed the pace of monthly bond purchases may be trimmed in the coming months as the economy improves. The dollar index, consisting of six major global units, was up 0.11 per cent.



Data released yesterday showed US retail sales in October jumped 0.4 per cent.



"Indian rupee was seen depreciating against the US dollar in the opening itself due to strength in the US dollar. Gains in US dollar are attributed to the retail sales data, which beat expectations despite the government shutdown," said Abhishek Goenka, CEO of India Forex Advisors.



Asian currencies were weak due to strong US data and the FOMC minutes released yesterday, Goenka said.



The 30-share benchmark Sensex plunged 406.08 points or 1.97 per cent today. Overseas investors picked up shares worth a net Rs 80.4 crore yesterday, as per provisional data. They had bought a net Rs 1,014.61 crore of shares a day earlier.



"Indian rupee depreciated over half per cent, taking cues from strong dollar, which...gained after the minutes from the US Federal Reserve's October policy meeting suggested that the central bank could soon move to taper monetary stimulus," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).



The benchmark six-month forward dollar premium payable in April closed at 244-246 paise from 244-1/2-245-1/2 paise yesterday and far-forward contracts maturing in October rose further to 490-492 paise from 485-487 paise previously.

Source:- financialexpress.com

Property continues in self-occupation of assessee even after collaboration agreement with builder as

IT: Tribunal was justified in law in rejecting claim of assessee that property, continuing to be in self-occupation of assessee, even after collaboration agreement with a builder, was to be valued as returned on valuation date in accordance with provisions of section 7(4)

Disallowance for TDS default covers all ‘expenditure’ and not only those exp. as spelt out in sectio

IT: Nature of expenditure, and not nature of business, is subject matter of disallowance under section 40(a)(ia); business expenditures falling under sections 30 to 38 and 40 are contemplated therein

Declaring an income admitted during search and payment of taxes thereon saves assessee from sec. 271

IT: Where assessee admitted lower value of jewellery in return of income than admitted in search proceedings but in course of assessment filed revised return offering entire value of jewellery and paid tax along with interest, penalty under section 271AAA could not be sustained

‘Jagannath Temple Management Committee’ isn’t a person to hold it liable for TCS while leasing out i

IT : In view of specific definition of the seller and the language of section 206C(1) the provision for collection of tax will apply even to an authority established by or under the Central, State or Provincial Act, but Section 206C(1C) makes only the person to be held liable. This does not make liable an authority established by under the Central, State or Provincial Act for collection of tax on leasing out the quarry.

Assessee to initiate fresh proceedings if it’s not satisfied with consequential order passed after I

IT : Where Tribunal set aside order passed by Assessing Officer and restored matter to him with direction to allow deduction under section 80-IA to assessee on eligible turnover, if there was any grievance to assessee on account of consequential order passed by Assessing Officer, remedy for assessee lay in fresh proceedings commencing with such consequential order

Product ‘shunt’ made of copper wire can’t be classified as ‘electrical register’

Excise & Custom : Shunt consisting of copper wire, which is conductor of electricity and not resistant to electricity, cannot be regarded as 'resistant'; it was classifiable as 'electric measurement product'

TP adjustments for not charging cost from AEs deleted as assessee had to settle transactions at cost

IT/ILT: Where charging cost for employees seconded to foreign AE would erode tax base in India, no transfer pricing adjustment should be made if assessee had not charged for transfer of employees

Assessee couldn’t be penalized if share broker couldn’t furnish docs in support of cap. gains earned

IT : Where assessee sold shares in ordinary course through stock exchange and received sale consideration by way of demand draft, in such circumstances merely because share broker could not file any evidence in support of said transaction because same was already seized by Department, it could not be a basis of making addition under section 68 in respect of capital gain arising from sale of said shares

Sum incurred by coaching institute on scholarship to attract more students allowed as revenue exp.

IT : Where by providing scholarship, business of assessee-coaching institute was expanded, same would be allowable as business expenditure

Joint ownership of a house property allows sec. 54 deductions to both husband and wife

IT : Where requirement of section 54 is that income of building which is being sold should be chargeable under head 'income from house property'; requirement of section is not that assessee must earn income from said property

Govt Gives More Time To 30 Sez Developers To Execute Projects.

The government has given six months to one year time to as many as 30 special economic zone developers including Tata Consultancy Services and Parsvnath to execute their projects.



The decision was taken by an inter-ministerial Board of Approval (BoA) chaired by Commerce Secretary SR Rao in its meeting on November 8.



Source:- financialexpress.com

India Sugar Boosted By Hopes Of Import Duty

20-Nov-2013

ndian sugar futures rose on Wednesday from their lowest level in nearly one-and-a-half years on hopes the government would raise import duty on the sweetener and also due to a delayed crushing season in key producing states.

The key December contract was up 0.78% at INR2,829 (USD45.26) per 100 kilo on the National Commodity and Derivatives Exchange at 0840 GMT. It fell to INR2,801 in the previous session, its lowest since June 8, 2012.

Source:- agra-net.com

Govt Plans More Wheat Export Tenders To Cash In On Good Price

21-Nov-2013



Buoyed by the strong response to its attempt to sell wheat from state-run warehouses, the government is planning to open a series of such export tenders in the months of January, February and March to sell a total of around 2 million tonne of wheat in the overseas market.



Tuesday, state-owned trading firms--State Trading Corporation(STC), Metals and Minerals Trading Corporation (MMTC) and PEC Ltd-- received bids in the range of $284.7-289.9 per tonne for shipment of 0.34 million tonne from the Food Corporation of India (FCI) godowns.



The highest quotations received by the three state trading firms were higher than the government's floor price of $260 per tonne for export of the FCI-procured wheat.



“In the subsequent tenders, the quantity offered will be more as we expect to get good price in coming months as well,” a senior government official said.



Government had to lower its base price for export of wheat from $300 per tonne to $260 per tonne after its attempt to export 0.15 million tonne of wheat was cancelled as the bids received were much lower than the base price.



“We were hoping to get a price of around $270-275 per tonne, but the price quoted (around $290 per tonne) is unexpected, which shows that Indian wheat has started commanding a premium in the international markets,” the official said.



He said the price received was even more than that quoted by Black Sea wheat, which is one of the most valuable wheat brands in the world market.



“In the coming months too, the trend is expected to be maintained because as per information the Australian wheat crop is not as good as expected, which will enable us to sell more in the overseas markets,” he added.



He said exporting wheat was more profitable for the government than selling it domestically as average global price of $285 per tonne will fetch Rs 18,000 for each tonne of wheat to the kitty, while the exchequer gets just Rs 16,000 per tonne in home market.



In 2012-13 fiscal, the government had earned $1.4 billion from export of 4.2 million tonne of wheat by PSUs. Indian wheat had fetched an average price of $311.38 per tonne last fiscal.



India is exporting wheat from state-run warehouses as consecutive years of bumper harvest have filled them to the brim.



According to FCI, wheat stocks in state godowns are estimated to be over 34 million tonne as on November 1 as against a requirement of just 14 million tonne.



Source:- business-standard.com

How Lng Export Boom Could Bust The Budget

The high price of gas in Australia has made replacing coal-fired power stations with gas uneconomic and "fugitive emissions" from the LNG plants mean that reducing overall emissions within Australia by 5 per cent by 2020, as government policy dictates, will require much bigger cuts in other industries.



Tony Abbott will have to either drop the promise to cut emissions by 5 per cent or the promise to repeal the carbon tax. Both together will be impossible without massive government spending under the proposed "direct action" policy of paying companies to reduce emissions.



Actually, previous government policy was for a 15 per cent reduction in emissions if the rest of the developed world also took action on climate change. That's happening, so the 15 per cent would have applied.



The Coalition said it would match Labor's emissions reduction target, but the figure of 15 per cent doesn't seem to appear in its policy, only 5 per cent.



Anyway, not trying to reduce carbon emissions at all would put Australia at odds with the rest of the world, including China and the US, and endanger trade agreements. So the Prime Minister and Treasurer Joe Hockey will be, or at least should be, desperately hoping that the Senate never allows the repeal of the emissions trading scheme legislation, so it's not exactly a broken promise -- at least they tried.



Before the Charter of Budget Honesty it used to be routine for incoming governments to declare things were much worse than anyone thought, so that all bets are off on election promises.



Now, with the introduction of the PEFO (pre-election fiscal outlook) there has to be a Commission of Audit to provide the nasty surprise that allows the breaking of expensive promises.



In essence, Australia's LNG export boom and high domestic gas prices will make it very difficult for the Coalition to get re-elected if it sticks to current policies.



The cost to the budget of climate change direct action, plus paid parental leave, disability insurance, education funding and rapidly rising health costs would lead to an even greater structural deficit than currently exists ($28.8 billion, according to economic consultancy Macroeconomics).



The emissions trading scheme currently in place would eventually produce revenues to the government of up to $10bn a year. It's understood Treasury has estimated the eventual cost of the Coalition's direct action plan at $10bn.



That's a $20bn turnaround and makes climate change a "nuclear bomb" in the federal budget, as professor Ross Garnaut says. As he puts in his book Dog Days, it would end up "distracting the government and the polity from the great economic challenges facing Australia".



Like Australia, the US has enjoyed a huge boom in gas supplies by exploiting smaller and tighter reservoirs -- in their case shale, in ours coal seams.



However the US banned LNG exports and is now allowing them on a case-by-case basis, resulting in a collapse in the domestic gas price to about a third of what it was. The result is wholesale replacement of coal-fired power stations, new and existing, with lower carbon-emitting gas.



In Australia, export pricing has led to a huge increase in the domestic gas price despite the big lift in available supply, with the result that gas is still uneconomic as a replacement for coal.



Wind and solar are too expensive to replace coal. Gas is, or at least should be, the only viable substitute in the medium term.



Add to that the fugitive emissions from the gas liquefaction plants and Australia's LNG export industry is likely to be a big net cost to Australia, not a benefit, especially in the early years while the capital cost of building the plants is written off in depreciation against taxable profits.



All the extra costs to the budget that have been promised -- direct action, parental leave, NDIS, education and health -- seem to lead inevitably to a budget crisis just beyond the current forward estimates of four years.



It will be very interesting to see how the Commission of Audit led by Tony Shepherd deals with all of this, and in particular whether they try to properly cost the Coalition's direct action policy.



That might be awkward, especially if the audit reveals that the government will have to make big cuts to welfare, health and education spending in order to fund the reduction in carbon emissions.



Source:- www.theaustralian.com.au

India, Vietnam Ink Eight Agreements.

India and Vietnam on Wednesday inked eight agreements, including one for oil and gas exploration in the seas off Vietnam that includes the South China Sea as visiting Vietnamese leader Nguyen Phu Trong and Prime Minister Manmohan Singh held talks in New Delhi.



Nguyen Phu Trong is the general secretary of the Vietnamese Communist Party.



The eight agreements as well as a $100-million line of credit to Vietnam for defence purchases is a major step forward in India's "Look East Policy".



Manmohan Singh "reaffirmed that Vietnam was a pillar of India's 'Look East Policy', which was supported by the general secretary. They envisaged a more active role for India in the regional and international arena," a joint statement said.



Outlining their strong convergence of interests in working together, Dr Singh said, "Vietnam's emergence as one of the most vibrant economies in the Asia Pacific region is greatly welcomed by India, especially because we regard Vietnam as a trusted and privileged strategic partner and an important pillar of our Look East Policy."



Boosting connectivity, both sides inked an air services agreement that would see direct flights between the two countries and also promote an international aviation system based on competition.



Both sides also inked an agreement for setting up a high-tech crime lab in Hanoi.



India is to provide a financial grant for buying technical equipment and teaching aids for the Indira Gandhi Hightech Crime Lab (IGHCL) and also depute experts to Vietnam.



The MoU "consolidates the cooperation between the two countries in the field of crime investigation, counter terrorism and other transnational organised crime, and other relevant areas".



The MoU between Vietnam Oil and Gas Group and ONGC Videsh Limited (OVL) provides for joint exploration, development and production of petroleum resources between the two countries for new investments by OVL in oil and gas blocks in Vietnam for oil and gas exploration and production.



Petro Vietnam is also to participate in open blocks in India and in third countries.



Vietnam's industry and trade ministry also inked a MoU with Tata Power Ltd. for development of the Long Phu 2 coal-fired power plant project in Soc Trang, Vietnam.



"The project is to be operated through a BOT Company owned by TATA Power and additional investors, with TATA Power as the lead member and will reach commercial operation in accordance with Agreements with the Vietnam side," the statement said.



Tata Power Co. Ltd won a $1.8-billion contract to develop the thermal power plant in the Mekong Delta province of Soc Tran after beating competition from South Korea and Russia to win the 1,200 MW contract.



A Vietnam-India English and IT Training Centre at the National Defence Academy of Vietnam in Hanoi will also be set up.



Both sides are on course to achieve the trade target of $7 billion by 2015.



A new Joint Sub-Commission on Trade has been tasked to work towards realizing the enormous potential of our economic relations, said the prime minister.



Dr Singh expressed appreciation for Vietnam's decision to award Tata Power the thermal power project and the offer of another offshore block to ONGC Videsh Limited for continued oil and gas exploration.



"We also look forward to boosting our bilateral economic ties through the India-ASEAN Free Trade Agreement and connectivity projects," he said.



In India's first gift of a supercomputer to another country, a PARAM High Performance Computing Facility was inaugurated at the Hanoi University of Science and Technology, the prime minister said.



The Archaeological Survey of India has also voiced readiness to take up conservation and restoration of the Cham monuments "which are a symbol of our historical, civilizational and cultural contacts".



Source:- ndtv.com

Punjab To Offer Vat Refund For It Ventures

Punjab's upcoming information technology (IT) promotion policy will offer value added tax (VAT) refund on equipment and machinery installed by entrepreneurs, apart from incentives like VAT retention and property tax rebate to them. The IT policy is part of the upcoming industrial policy of the state.



Punjab's principal secretary, IT, A R Talwar said there is not much investment that goes into setting up of new IT units and the focus is more on putting together human resource. Therefore, the state government has thought of these steps to incentivize setting up of new IT companies.



Speaking on the sidelines of the annual IT event jointly organized by Chandigarh administration, Punjab government and CII (northern region( on the theme 'Thinking ahead of the curve through innovation', he said the upcoming IT policy was looking at promotion of both software and hardware components of IT industry in the state.



"Whereas the focus will be on Mohali and Amritsar for software generation, hardware industry will be supported across the state. VAT refund on equipment will be given on products that are bought from within the state," he said.



The policy gives special emphasis on electronics system design and manufacturing (ESDM) sector in view of the fact that India is emerging as a favourable destination for chip design and embedded software and there is immense potential for the same. The new policy for ESDM sector with special package of incentives is aimed at projecting Punjab as a global ESDM hub.



It was in Mohali that an STPI centre was set up in 1998 when IT was still considered a novelty. Exports from Mohali and Chandigarh have gradually picked up and crossed Rs 1,500 crore in 2012, which is a milestone for a Tier-II destination. During the financial year 2010-11, export from this region was Rs 1,565 crore.



Whereas Rajiv Gandhi Chandigarh Technology Park (RGCTP) hit hurdles following controversy over land acquisition and sequent allotment, Punjab has an edge as IT companies don't face any restrictions pertaining to building by-laws as is the case in Chandigarh.

Source:- timesofindia.indiatimes.com

Unsecured creditors can opt for winding up as Corporate Debt Restructuring was meant for secured cre

CL: Where RBI's corporate debt restructuring scheme was for benefit of secured creditors only, unsecured creditor could pursue winding up petition

Sec. 372A of the 1956 Act would remain in force until corresponding section of the 2013 Act is notif

Companies Act, 1956/ Companies Act, 2013 : Section 372A of The Companies Act, 1956, Read With Section 186 of The Companies Act, 2013 - Inter-Corporate Loans and Investments - Clarification With Regard to Applicability of Provision of Section 372A Consequent Upon Notifying of Section 185 of The Companies Act, 2013

No penalty on voluntary payment of duty prior to show cause notice; Expl. to sec. 11(2AB) is retrosp

Excise & Custom : Explanation 3 inserted in section 11A(2B) of Central Excise Act, 1944 by Finance Act, 2010 with effect from 8-5-2010, is a clarificatory provision having retrospective effect and, therefore, assessee making payment of duty voluntarily prior to issuance of show-cause notice may claim benefit thereof for prior periods as well

Construction on land taken on lease from trustees doesn’t benefit them if trust can remove it at end

IT: Where assessee-trust having taken land on lease from its trustees constructed a building thereon, in view of fact that in registered lease deed, there was no stipulation that construction made on leased land would become property of lessor after expiry of term of period of lease and it was always open to assessee to remove constructions, no benefit would directly enure to trustees and, therefore, on aforesaid ground exemption of income could not be denied to assessee-trust by invoking provis

A firm gets perpetual registration until any default is committed by it

IT: Once registration certificate is granted to a firm, same is to be continued till default

CBDT directs I-T Officers to adhere to Circular 1/2013 issued in relation to deductions under Secs.

IT : Section 10A, Read With Sections 10AA & 10B of The Income-Tax Act, 1961 - Free Trade Zone - Direct Tax Benefits - Clarification on Issues Relating to Export of Computer Software

Stock valuation method followed in earlier years can’t be rejected outrightly; AO to assign reasons

IT: Regular method followed by assessee for valuation of closing stock, and accepted by department in earlier years cannot be changed in subsequent assessment year without giving any reason for same