HC dismissed winding-up plea by foreign bank as parties had agreed to settle dispute only through En

CL: Where petitioner had chosen to confer exclusive jurisdiction on English Courts and had intended application of English law to contract, petitioner was not justified in seeking to invoke jurisdiction of High Court in India for winding up of respondent-company

TPO couldn’t reject segmental results to work out ALP if they were accepted for computation of sec.

IT/ILT : Where TPO had accepted segmental results for purpose of computing deduction under section 10B, he could not reject those results while determining ALP of international transactions entered into by assessee with its AE

HC raps AO for revisiting same issue to slap tax notice on 'Vodafone'; reassessment quashed

IT : Where in original assessment and first reassessment, issue of expenditure on dealer's commission was verified, a second reassessment was barred

Rupee At 9-Month High Of 59.67 As Stocks Surge On Hope Of Nda Win

The rupee closed below the 60-level for the first time since April 2 as the euphoria in the stock exchanges had its impact on the foreign currency markets. The local unit ended at a nine-month closing high of 59.67, a gain of 37 paise from Monday's close after exit polls predicted that a National Democratic Alliance government would come to power at the Centre.

The rupee opened higher at 59.70 and touched an intra-day high of 59.59 before closing lower at 59.67. Dealers said that part of the reasons for the rally was renewed buying by foreign institutional investors in the equity markets. The strengthening rupee will make all imports cheaper and reduce pressure on government finances as it brings down the burden of oil subsidies. But exporters warn that gains in the current account deficit would be lost if the rupee remains below 60.

"The fact that the rupee managed to close below 60 seems to suggest that there is a market comfort as well as a regulator comfort with the rupee strengthening," said Harihar Krishnamoorthy, treasurer, First Rand Bank. He added that while the forex market does get influenced by sentiment as, at the end of the day, it is the demand and supply that matters. "After a point, it is the normal factors such as FII inflows that will determine the level. Markets will watch to see if FII inflows are just being front-loaded or whether they continue with budget and other measures. If the GDP is indeed bottoming out, non-oil imports will rise. This is good from the economy point of view but it is negative for the dollar-rupee," he added.

"We view exit polls with some caution based on the results in 2004 and 2009, and especially in this case where there appears to be a differential between them and the majority of pre-election opinion polls. Additionally, the bar to exceed expectations on the final counting day (May 16) has moved even higher. However, notwithstanding a possible knee-jerk market reaction on May 16, the exit polls confirm and strengthen our baseline expectation of a stable NDA-led government, which is a positive outcome, in our view," said Sonal Varma of Nomura Securities.

In the short term, future movement of the rupee will depend on the election results and the budget. Besides this, markets will look at signals from the rating agencies. The rise in the stock market indices raises the possibility that more companies will tap domestic and international markets with equity issuances.

According to Krishnamoorthy, investors are looking out for decontrol of administered prices for diesel or gas in the budget which will reduce the burden of subsidies on government finances. "This can either mean lesser borrowing or freeing up resources to productive segments. The strengthening rupee will reduce the subsidy numbers and some of the rise in stock prices seems to be factoring in general decontrol," he added.

Source:- timesofindia.indiatimes.com

Domestic Iron Ore Prices Will Not Fluctuate Much: Nmdc

India's largest iron ore producer NMDC Ltd today said there would not be much fluctuation in domestic prices of the key steel-making raw material even after a slump in international rates.

"Prices will remain stable here. There could be slight up and down, but it will remain largely stable. My hunch is that domestic iron ore prices will remain same at current level," NMDC Chairman Narendra Kothari told PTI in an interview.

International iron ore prices have declined almost 25% so far in 2014 to just above % 100 a tonne, the lowest level since September 2012, on increased supply and subdued steel demand.

The Australian Treasury earlier in the day reportedly said iron ore prices could fall continuously until June 2016 to below % 83 a tonne. Australia is the world's third-largest exporter of iron ore.

Kothari, who took over as Chairman and Managing Director of NMDC on April 21, is unperturbed about the declining trend, saying, "Our prices are almost half of the international prices. So I don't find any effect on this. Our prices should remain same."

After keeping prices unchanged for two months, state-run NMDC slashed prices of iron ore lumps, considered high grade due to its rich iron content, by Rs 200 per tonne in May and kept prices of iron ore fines, considered low grade, at the previous month's level.

Following this, lump ore prices increased to Rs 4,300 per tonne while that of fines was at Rs 2,910 a tonne. NMDC decides product prices on a monthly basis.

Kothari said the company's margins would remain "more or less same" for the current financial year, in which sales could touch 31 million tonnes and production 32 million tonnes. The targeted turnover is about Rs 12,000 crore, while profit could be more than Rs 6,000 crore.

Buoyed by a rise in demand from domestic steel makers, NMDC's sales and production touched a record of over 30 million tonnes in 2013-14. The company's current iron ore production capacity is 32 million tonnes.

Source:- business-standard.com

Exports Up 19.9Pc To Rs 68.2B

Exports of Nepal’s major export products, including woollen carpet, readymade garment and large cardamom, have surged in the first nine months of the current fiscal year, thanks to a depreciation of the Nepali rupee against the US dollar.

However, Iron and steel products, which have emerged as the largest export items over the last few years, posted a meagre 1.2 percent growth to Rs 9.18 billion.The overall exports grew 19.9 percent to Rs 68.2 billion.

Export earnings from woollen carpet increased 39 percent to Rs 5.48 billion, while exports of readymade garment surged 46.4 percent to Rs 4.01 billion, according to the Trade and Export Promotion Centre (TEPC). Large cardamom saw its exports soar 40.1 percent to Rs 3.69 billion.

Iron and steel products are also Nepal’s second largest import items after petroleum. The country imported iron and steel products worth Rs 47.24 billion over the review period, according to TEPC.

Exporters attributed the growth in exports, particularly of readymade garment and carpets, to the appreciation of the US dollar. In the case of readymade garment, market diversification towards Europe from the US has also helped boost their exports.

“The strong dollar resulted in high export earnings,” said Yagya Pokharel, an exporter of readymade garment. “Orders have also increased 12-15 percent,” he said, adding the demand from European countries like Italy, Germany, France and Spain has increased. “We have been receiving bulk orders in the recent days from these countries.”

The US was the main buyer of Nepali garment products until 2005. But after the end of quota system in the year, Nepali garment products lost their competitive edge, eventually losing the US market. Although India was emerging as the next growth market for Nepali garment, the countervailing duty imposed on the product by India last year resulted in a drop in garment exports to the southern neighbour.

As Europe has emerged as the major market for Nepali garment, carpet exports to the US have increased notably. “Demand from the US is on the rise,” said Lanka Man Roka, past president of Nepal Carpet Exporters’ Association. According to carpet exporters, US buyers purchase high-value (more than 100 knots) carpets.

As far as iron and steel products are concerned, manufacturers say the exports to new markets, such as African countries, helped the sector grow.

Bal Krishna Shrestha, past president of Nepal Steel Rolling Mills Association, said orders have been encouraging in the recent days due increased demand from both India and Africa.

“Mainly, the demand for MS Pipe, zinc sheet and iron rod made up of prime billet has surged,” said Shrestha, adding they were exporting zinc sheet to India and some African countries, including Kenya.

Source:- ekantipur.com

Tüv Süd’S Bangalore Lab Offers Certification For Mango, Vegetable Exports

TÜV SÜD’s Bangalore laboratory has come forward to help mango and vegetable exporters obtain certification as prescribed by importing countries.

TÜV SÜD food testing laboratory in Bangalore has been recognised by APEDA to carry out chemical and microbiological analysis of products classified as fresh fruits and vegetables, including mangoes, processed fruits and vegetables and other processed foods.

"The temporary ban on Indian mangoes has the potential to impact the growth of the agriculture export sector in India. The months of May and June witness the most number of mango consignments being exported out of the country and we intend to help Indian exporters in every possible way to improve the acceptability of their products globally.

We extend the support to pack houses and exporters to comply with the food safety management system practices through our internationally accredited and APEDA approved certification services and food testing laboratory network,” Pankaj Jaiminy, AVP, Food testing Services, TÜV SÜD South Asia, said.

Source:- thehindubusinessline.com

Postal ballot voting can't completely substitute actual meeting; doesn't apply to court-convened mee

CL : Provisions for compulsory voting by postal ballot and by electronic voting to the exclusion of an actual meeting cannot and do not apply to court-convened meetings, such as meetings for approval of Schemes u/s 391/394 of the Companies Act, 1956 and section 230/232 of the Companies Act, 2013. At such meetings, provision must be made for postal ballots and electronic voting, in addition to an actual meeting. Electronic-voting, must be made available at the venue of the meeting. Any shareholde

HC raps AO for revisiting same issue to slap tax notice on 'Vodafore'; reassessment quashed

IT : Where in original assessment and first reassessment, issue of expenditure on dealer's commission was verified, a second reassessment was barred

HC affirms penalty as purchases made against ‘C’ form wasn’t in compliance with registration certifi

CST & VAT: Where assessee had purchased diesel generator set by using 'C' form, whereas certificate of registration issued under Central Sales Tax Act authorised it to purchase machines, mechanical press, welding machine, etc., against C form imposition of penalty upon assessee under section 10(b) for false representation was justified

HC denied request for deferment of advertisement for winding-up of co. as it was filed to abuse Cour

CL : Court cannot pass an order for winding up, unless petition is advertised and is heard thereafter; however, company can invoke inherent jurisdiction of Court under rule 9 of Court Rules, inter alia, seeking deferment or suspension of advertisement of petition in interest of justice or to prevent abuse of process of Court

Sugar Bloc Livid As Centre Trims Sop For Exports

The Union government has reduced the incentive for raw sugar export almost by a third from Rs 3,300 per tonne to Rs 2,277 per tonne for April and May. Calling it a betrayal , the sugar industry has said the decision will result in losses for mills which exported sugar in April and May. "The industry is not only surprised but highly disappointed about the reduction in the rate of incentive," said Abinash Verma, director general, Indian Sugar Mills Association (ISMA).

The Ministry of Consumer Affairs , Food and Civil Supplies issued the notification in this regard on May 7. In a letter written to the food secretary, ISMA has said: "According to the notification, sugar mills, exporters as also importing countries entered into contracts for export and import of sugar from India, and physically exported substantial quantities expecting Rs 3,300 per tonne as the incentive on raw sugar exports. Such a change in position by the government without any notice or any ground whatsoever, in contravention to the provisions of the Gazette Notification (law prescribed in this regard) has created a massive confusion in the market and a sense of betrayal amongst the millers of the country."

Based on the ruppe-dollar exchange rate criteria, the subsidy for April and May was working out to be Rs 3,800 per tonne. However, the industry was expecting it to remain constant at Rs 3,300 sper tonne as one has to go to the cabinet to increase the subsidy. The reduction will result in losses to the mills which have dispatched or exported sugar after April 1. According to industry sources, this quantity could be between 3 lakh tonne to 5 lakh tonne.

The downward revision of export incentive by almost one third is also likely to put pressure on domestic prices, which have seen a declining trend for the past few weeks. "There was a big disparity in the world market and the Indian market before the announcement of the raw sugar subsidy. A reduction in the subsidy has widened the disparity which will reduce exports and put prices in the domestic market under pressure," said Rahil Shaikh, managing director of the London head-quartered trading company ED&F Man.

The ministry of food had announced an incentive of Rs 3,300 per tonne for February and March 2014. It has to be calculated every two months after taking into account the average exchange rate of the rupee vis-a-vis the dollar during the seven days immediately April 1, June 1, and August 1 for April-May , June-July and August-September respectively . Claiming that it is not according to the law prescribed by the ministry in February, ISMA has said the reduction in the rate of incentive cannot be appreciated as there is more than surplus sugar in the country which needs to be exported .

"Ex-mill sugar prices have not only fallen in the past one month but continues to be lower than the cost of production leading to losses to the industry when cane price arrears for farmers continue to be outstanding at historically highest levels at over Rs 12,000 crore," said the letter.

Source:- economictimes.indiatimes.com

Wheat Exports From India Can Reach 10 Mn Tonnes

India can achieve 10 million tonnes of wheat exports every year on managing its annual output at 95 million tonnes and reducing spoilage, a study conducted by The Associated Chambers of Commerce and Industry of India (Assocham) said.

Total wheat exports from India was recorded at 6.5 million tonnes worth Rs 10,529 crore in the financial year 2012-13 as compared to a mere 0.74 million tonnes worth Rs 1,023 crore in the previous year, data compiled by Directorate General of Commercial Intelligence and Statistics (DGCI&S) under the Ministry of Commerce, showed.

The Assocham study quantifies total spoilage at around 40% of India’s annual wheat output worth Rs 50,000 crore due to the dearth of adequate scientific storage together with slow pace of creating fresh warehousing capacity.

“A long-term and stable wheat export policy is the need of the hour as it would go a long way in developing dedicated clientele in the global wheat market thereby helping India in earning much needed foreign exchange, thus issues vis-à-vis storage, domestic consumption, food security needs, population growth and others must be analysed and a pragmatic view should be taken in this regard,” noted the study titled ‘Wheat Economy of India,’ conducted by Assocham.

Afghanistan, Bangladesh, Indonesia, Korea (RP), Malaysia, Nepal, Oman, Philippines, Qatar, Saudi Arabia, Thailand, UAE, Yemen, Vietnam and African Countries like Djibouti, Ethiopia, Sudan, Tanzania and others are major importers of wheat from India.

“India should formulate a strategy to corner about 10% share in the 100 tonnes global wheat market provided right steps are taken to tap this potential in the long run,” said D S Rawat, national secretary general of Assocham while releasing the chamber’s study.

The total production of wheat which accounts for about 35% of India’s foodgrains’ basket may reach 100 tonnes by 2016-17 from the level of about 93.5 tonnes as of 2012-13. However, unless concerted efforts are made to fight the vagaries of weather, risk of pests and diseases and poor productivity in most wheat producing states, it is difficult to achieve higher wheat production targets on a consistent basis, Rawat added.

Source:- business-standard.com

Veg Oil Imports Rise 27% To 8.3 Lakh T In April

Vegetable oil imports rose 27 per cent to 8.32 lakh tonne in April on account of a sharp increase in the shipment of crude palm oil (CPO) and crude soft oils, the Solvent Extractors Association of India today said.

Imports stood at 6.54 lakh tonne in the same month of the previous year, it said in a statement.

India meets about 60 per cent of its annual vegetable oil demand of 17-18 million tonne via imports. Palm oil makes up 80 per cent of the country’s total vegetable oil imports.

“Indian refiners prefer to import crude soft oil over CPO in India, which has reflected in the pattern of import in the last few months,” it said.

While crude soft oil imports rose two-fold to 2.83 lakh tonne in April 2014 from 1.39 lakh tonne a year-ago, the shipment of palm oil import fell 7.45 per cent to 5.36 lakh tonne from 4.98 lakh tonnes.

Among crude soft oils, the import of soyabean increased to 1.13 lakh tonne from 50,000 tonne. Similarly, import of sunflower oil rose to 1.7 lakh tonne from 88,368 tonne.

Among palm oil variants, the shipment of CPO rose 87 per cent to 4.38 lakh tonnes from 2.33 lakh tonnes, while the import of RBD palmolien declined sharply to 81,100 tonne from 2.53 lakh tonnes.

According to SEAI, import of non-edible oils fell marginally to 13,325 tonne in April this year compared with 13,500 tonne in the year-ago period.

As on May 1, edible oils stock at various ports is estimated at 4.65 lakh tonne, of which CPO stood at 2.3 lakh tonne. About 7 lakh tonnes of edible oil is in the pipeline.

Source:- thehindubusinessline.com

HC denied deferment of advertisement of winding-up of co. as it was filled with an intent to abuse C

CL : Court cannot pass an order for winding up, unless petition is advertised and is heard thereafter; however, company can invoke inherent jurisdiction of Court under rule 9 of Court Rules, inter alia, seeking deferment or suspension of advertisement of petition in interest of justice or to prevent abuse of process of Court

Service tax paid on Group Personal Accident and Group Medical Policies of employees is an eligible i

Cenvat Credit: Service tax paid on Group Personal Accident and Group Medical Policies for employees is eligible for credit as input service

No deduction of sum incurred by firm on partner's property even if it was used for business of firm

IT : Where payment was done on behalf of and at behest of individual partners who owned property, claim of such expenses by partnership firm was not allowable

Concessional excise duty rate on non-availment of credit isn’t applicable to imported goods for lev

Excise & Customs : Since question of taking Cenvat credit does not arise in case of imported goods, this condition cannot be satisfied in respect of imported goods and hence, concessional rate of excise subject to non-availment of credit is not applicable to imported goods for levy of additional duty of customs

No selection of comparables on basis of info obtained under sec. 133 if it wasn’t made available to

IT/ILT : Where TPO selects a comparable only on basis of information obtained under section 133(6), it becomes duty of TPO to have necessarily furnished information so gathered to assessee and take its submissions thereon into consideration before deciding to include said company in final list of comparables

SAT bans appellant from accessing securities market as he withheld info on withdrawal of investment

SEBI : Where corporate announcement was made regarding investment to be made resulting in spiking share prices but said offer was withdrawn without being announced to public and stock exchange and chairman offloaded securities at higher price, penal consequences would follow

No denial of sec. 11 relief when some income of trust was also exempt under sec. 10

IT-I: For availing exemption under section 11, income derived from property held under trust has to be considered irrespective of fact that some of income so derived is also exempt under section 10

Commissioner need not to record satisfaction while authorizing filing of appeal as it’s an administr

Service Tax : Grant of authorisation to file appeal is an 'administrative act' and there is no need for independent detailed and personal consideration by Commissioners or Chief Commissioners themselves even after detailed consideration by subordinate officers involved in process

Sec. 80-IB(10) relief was available to developer even if approval for construction was given in name

IT : Though permission for development was taken by owner of land, deduction under section 80-IB was admissible to assessee

Case remanded to AO with a direction to consider docs filed by assessee against cancellation of VAT

VAT: Where Assessing Officer cancelled registration certificate of assessee on plea that it had not deposited tax, whereas it was claim of assessee that it had already paid tax, and Tribunal declined to interfere on ground that before authorities below assessee could not produce evidence for deposit of tax, matter was remitted to Assessing Officer for decision afresh

No Violation of FERA if petitioner co. made correct declaration about Qty. and Quality of goods for

FERA : Where goods imported were not different in quality, and quantity from that declared at time of acquiring foreign exchange for import and foreign exchange acquired had been entirely used for goods imported, there was no violation of section 8 of FERA

No addition of notional interest if assessee wasn’t charging interest from AE and non-AE on pending

IT/ILT: Where there was complete uniformity in act of assessee in not charging interest from both Associated Enterprises and non-Associated Enterprises debtors for delay in realization of export proceeds, Assessing Officer was not justified in making addition of notional interest to assessee's ALP on aforesaid ground in course of transfer pricing proceedings

Vodafone approaching arbitrational panel has led to withdrawal of conciliation offer; FinMin rejects

IT/ILT : Correct Factual Position and Circumstances That Led to Government’s Proposal to Withdraw from Conciliation Measures Initiated Earlier With Vodafone International Holdings B.V.(Vodafone)

RBI includes LLP in definition of 'Indian Party' under FEMA norms on transfer or issue of foreign se

FEMA/ILT/INDIAN ACTS & RULES : FEM (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2014 - Amendment in Regulation 2

RBI raises threshold limit for receipt of export proceeds via rupee account to Rs 5 lakhs

FEMA/ILT/ INDIAN/ACTS & RULES: FEM (Manner of Receipt and Payment) (Amendment) Regulations, 2014 - Amendment in Regulation 4

Overseas branches of Indian banks can offer structured product at financial centres outside India: R

BANKING : Operations of Foreign Branches and Subsidiaries of The Indian Banks - Compliance With Statutory/Regulatory/Administrative Prohibitions/ Restrictions

FM urges Switzerland to ratify signed 'Multilateral Convention on Mutual Administrative Assistance i

IT/ILT : 46 Countries, Including India, Besides The European Union, Meeting under The Auspices of OECD, Adopted A Declaration on Automatic Exchange of Information in Tax Matters

Cotton Yarn Exports Estimated To Touch 1,350 Mkg This Fiscal

Despite the seasonal fluctuations, India’s cotton yarn exports are on target and are estimated to touch 1,350 million kg valued at $4.70 billion for the financial year 2014.

The country has already exported 1,082 million kg of cotton yarn (valued at $3.75 billion) during the first 10 months (April-January) of the current fiscal, according to a study by The Cotton Textiles Export Promotion Council (Texprocil).

“The high quality of Indian yarn is ensuring firm orders from the international markets,” Texprocil said, adding that this is despite the seasonal fluctuations witnessed every April and in spite of high raw cotton prices.

“Given the better quality produced by Indian mills, there will always be good export of Indian yarn taking place, even if the difference between Chinese cotton prices and international cotton prices narrows down substantially. Indian mills need not fear a drop in yarn exports happening beyond the seasonal fluctuations,” Texprocil Chairman Manikam Ramaswami said.

“However profitability of exports will depend upon our price parity with international cotton prices,” he added.However, exports of cotton yarn dropped in April. This is for the fourth consecutive year that the exports have fallen.

Source:- thehindubusinessline.com

Apparel Exports Up 14% In April

Showing clear signs of a revival, apparel export has registered an impressive growth rate of over 14% in the first month of this financial year. The statistics, recently made public by the Apparel Export Promotion Council (AEPC) in Gurgaon, show that the export sector rebounded in double-digit growth in the month of April, having brought off business deals of over $1.3 billion.

"For April 2014-15, the garment sector grew by 14.33%. The Indian garment manufacturing sector has the highest potential and it needs to increase competitiveness to provide a further boost to apparel exports from India," said Virender Uppal, chairman, AEPC.

The current growth pattern, according to industry analysts, seems counter-intuitive, given the rapid depreciation in value that the rupee has undergone. Factors like increasing labour costs in China and non-compliance with labour laws by manufacturers in Bangladesh have played a part in this recent turnaround. "But to capture the market space left by these countries we have to be competitive when it comes to pricing, we have meet stricter deadlines, and deliver better quality to buyers. And for this active support by the government agencies is crucial," Uppal said.

The industry has put forward a number of demands. Certain 'inhibiting factors,' related to complicated export procedures and high production costs, need to be resolved, industry representatives say.

The other cause for worry for the export sector is the strengthening of the rupee on the foreign exchange market. "While the export figures for the month of April were good, the RBI must ensure that the domestic currency does not become too strong because of the hot money pursuits on the stock market. This is the right time for the RBI to buy dollars and build forex reserves," said Anupam Shah, chairman, Engineering Export Promotion Council, India.

Source:- timesofindia.indiatimes.com

Holding of shares for a few days indicates systematic trading; resultant profits are capital gains

IT: Where assessee used only 30 per cent of his own capital in share transactions and, moreover, in most of cases he held those shares for less than one month, it was apparent that assessee was engaged in trading of shares and, thus, income arising from said transactions was to be taxed as business income

Ignorance of changed law is valid excuse; no concealment penalty if assessee was ignorant of change

Cenvat Credit : Penalty under section 11AC of Central Excise Act, 1944 cannot be levied if assessee was ignorant of change of law and department fails to prove that assessee had an intention to evade payment of duty

Holding of shares for a few days or more indicates systematic trading; resultant profits are capital

IT: Where assessee used only 30 per cent of his own capital in share transactions and, moreover, in most of cases he held those shares for less than one month, it was apparent that assessee was engaged in trading of shares and, thus, income arising from said transactions was to be taxed as business income

HC remands case to provide an opportunity to assessee to establish his claim of high sea sales

CST & VAT: Where Assessing Officer found various defects in documents produced by assessee and without asking her to explain those defects disallowed her claim for high sea sale, Assessing Officer was directed to provide an opportunity of hearing to assessee to establish her claim that there was indeed high sea sale as contemplated in law and to take decision in matter afresh

Cheaper Imports Dent Himachal Pradesh's Apple Business

Not long after quitting a lucrative job at Dell Systems to nurture his fruit orchards in Shimla, Kunaal Singh Thalta is having second thoughts. Fruit buyers are increasingly flocking to cheaper and better quality imports, often giving his farm-fresh apples a miss.

Himachal's Rs 2,500-crore apple industry, which accounts for more than 6% of the state's GDP and supports more than half of its rural population across six districts, is facing stiff challenge from better quality imports that are often competitively priced.

The consequent rise in fruit imports has not just hit the local economy, but is also forcing the newer generation to move away from this traditional occupation. And folks like Thalta, who have ventured into fruit farming, are feeling let down, as the issue finds no mention in the going elections.

"Apples are no longer delivering similar returns, which is making the business unviable as imported fruits are getting preference," Thalta, who is often chided by family members for his leap of faith, told ET. "No political party seems to care and raise the issue."

In this hilly state, incomes of local fruit growers had soared after the economic liberalisation of the 90s, but farmers gradually lost the momentum in the absence of a consistent policy and infrastructure. They now find it difficult to compete with the big companies that import apples in bulk every year.

While the Congress is seen as an ally of Himachal's apple growers, the party has not provided a roadmap for resolving their problem. Party spokesperson Subash Manglate said there was a need to improve the quality of Himachali apples, but failed to say how that could be achieved.

Congress also faces criticism for the UPA government's decision to halve import duty to 50%, which is widely seen as the main reason for imports multiplying in the last one decade.

According to the commerce ministry's estimates, import of apples touched an all-time high of about Rs 1,500 crore in 2013-14. "Not much has changed in the past 10 years, except for the Chinese apples that sell in every part of the country all year round, unlike the domestic produce that is available for only five months," said Rajeev Chauhan of Himalayan Apple Growers Society, a non-profit body. According to Chauhan, China has utilised the South Asia Free Trade Agreement to evade the 50% import duty to dump its apples at cheap rates in India via Sri Lanka.

Experts say the quality of Himachal's apples has deteriorated partly due to the poor quality of subsidised fertilizers that the government supplies. Adding to farmers' woes is the absence of new plants. "Most of the apple varieties grown in India are almost a century old. How can we compete with the superior imported stuff that has longer shelf life and is more appealing," said Dixit Chauhan, who quit a marketing job at Dabur India to help out in the family's apple business in Chajpur, a remote village of Shimla.

Faced with policy issues and an apparent lack of political will, the state's younger generation has started importing new plants from overseas nurseries situated in Italy, France, South Africa and the US. "The government has failed to change the first generation orchards that are running on old trees and are highly susceptible to disease.

To increase returns, we have to start the second generation orchards by breeding highquality fruits as successive governments have failed modernise farmers," said Vijay Thakur, an orchardist-turned-hotelier from Manali. "There is no concrete policy even as three of the five chief ministers were apple growers themselves." Indian apple growers have a higher cost of production compared with their Chinese or Australian counterparts.While it is about Rs 15 per kg in India, it is Rs 8 per kg in China and about Rs 10 per kg in Australia.

Source:- economictimes.indiatimes.com

Tax Board Spanner In Outgoing Govt’S Appointment Plans

Senior-level appointments in income tax, customs and excise departments have been stalled for the time being after the Central Board of Direct Taxes (CBDT), the cadre controlling authority of I-T, refused to submit a list of its annual general transfers to the revenue secretary.

Sources said revenue secretary Rajiv Takru had asked the chairmen of the two revenue boards — CBDT and Central Board of Excise and Customs (CBEC) — to place lists of all commissioner-level and other senior postings in the two departments by May 7. This was objected by the CBDT as it maintained that preparing an exhaustive list would take time as the process was yet to begin.

The insistence of the revenue secretary for high-level postings had come at a time when the BJP had objected to any senior-level appointments days before the formation of a new government.

Meanwhile, the CBDT has sent a list of 1991-92 batch I-T officers, promoted to the rank of commissioners, to the finance minister for his approval while it is still in the process of finalizing list of annual general transfers.

The CBEC, the cadre controlling authority of the Customs and Excise officials, is also believed to have forwarded a list of senior officials for their transfers but the Revenue Board has not taken any decision on the two lists yet.

Sources said the revenue secretary had insisted that all Indian Revenue Service officers posted in Delhi for more than five years be shifted out of the capital to field formations.

"This was reversing the existing transfer rules where an officer depending on his place of postings could remain in the Delhi region for up to 15 years," a senior official pointed out.

Takru, a 1979 batch IAS of the Gujarat cadre, had taken over as revenue secretary after Sumit Bose retired on March 31. Takru was earlier secretary, department of financial services.

Source:- timesofindia.indiatimes.com

HC remands case to provide an opportunity to assessee to establish his claim of high seas sales

CST & VAT: Where Assessing Officer found various defects in documents produced by assessee and without asking her to explain those defects disallowed her claim for high sea sale, Assessing Officer was directed to provide an opportunity of hearing to assessee to establish her claim that there was indeed high sea sale as contemplated in law and to take decision in matter afresh

HC: Non-payment of license fee on breach of agreement during lock-in-perod was equivalent to debt

CL : Where leave and license agreement provided that if respondent terminated agreement after lock-in period commenced but before it ended, it incurred an immediate liability on respondent to pay license fee for remainder of lock-in period, same was simply be a component of contractual consideration and, therefore, a debt, properly so called when contingency in contemplation came to pass, for purpose of section 433

Extended period of limitation couldn't be invoked to recover interest where details had been disclos

Excise & Customs : Time-limit of section 11A applies to recovery of interest as well; hence, if duty has been paid regularly and all facts have been disclosed regularly in ER-1 returns, extended period of limitation cannot be invoked to recover interest

Notice is required while contemplating attachment of bank a/c and not for initiating action for such

IT: No notice is required for initiating action for attaching account of tax defaulter; notice required when such act is contemplated

ITAT teaches basics to AO: Income earned by ‘RNOR’ from services rendered abroad wasn’t taxable in I

IT/ILT: Where assessee was not ordinarily resident in India within meaning of section 6(6), income earned by him by setting up an investment fund outside India was not liable to tax in India

CCI approves of combination of Cos. offering hotel and travel services as it would not adversely aff

Competition Act : Where proposed combination between parties engaged in tour and travel would result in providing travel related services under one roof and was not likely to have any appreciable adverse effect on competition in India, same was to be approved

HC can interfere with adjudication order even if time-limit to file appeal against impugned order ha

Excise & Customs : High Court has extraordinary powers in appropriate case to interfere with adjudication order even if time-limit for preferring appeal thereagainst has expired

HC remanded case to ensure whether sum paid was either discount or commission to attract sec. 194H T

IT: Where Tribunal assuming that advertising agents with whom assessee was dealing were registered with INS, concluded that payments made to them for procuring advertisements was a trade discount and not a commission, and, thus, provisions of section 194H did not apply, in view of fact that assessee itself admitted that some of those agencies were not registered with INS, matter was to be remanded back for disposal afresh

Commissioner (Appeals) is empowered to remanded proceedings under service tax laws

Service Tax: Section 85(4) empowers Commissioner (Appeals) to pass such orders as he thinks fit, which includes inherent power to remand proceedings for proper reasons to adjudicating authority; however, in view of apparent difference in language, position under central excise and customs was not gone into.

CCI approves of combination of group cos. as it would not change their controlling power

CL : Where a company was holding 100 per cent and 98 per cent shares of two companies, combination of three companies was to be approved bringing no change of controlling power

HC sets aside penalty when impugned TP adjustment forming basis for imposition of penalty was delete

IT/ILT : Where in course of appellate proceedings, revenue authorities admitted that quantum addition on account of transfer pricing difference which was basis for imposition of penalty had already been deleted, impugned penalty order based on said addition also deserved to be set aside

SC asks CBI to probe 'Saradha' fraud due to alleged involvement of influential persons

SEBI : Where financial scam nicknamed chit fund scam which had hit States of West Bengal, Tripura, Assam and Odisha involved illegal collection of nearly 10,000 crores from general public and investigation revealed involvement of several influential personalities and role of regulators like SEBI, authorities under Companies Act and Reserve Bank of India was also under investigation by State Police Agency, SC held that ongoing investigation was to be transferred from State Police to an independen

Ieefa Says Coal Import Into India Has Financial Risks

A new report of Institute for Energy Economics and Financial Analysis (IEEFA) said that international coal projects relying on new import markets such as India were facing financial risks.



IEEFA said that Chinese coal demand growth continued to slow down and the focus was increasingly turning to India.



The study which used in-depth financial modelling to evaluate the prospect of India as the next big coal import market said that the results demonstrated the fundamental financial problems facing the coal and coal-fired generation sector in India.



Mr Tim Buckley, Director of Energy Finance Studies, Australasia for EEF said that "This report is a wake up call to global investors and industry, establishing the uneconomic basis of international coal projects which rely on India as a potential growth market."



The report said that a key difference between coal fired power generation and renewable energy was the issue of inflation - fossil fuels are inflationary while renewables are deflationary The cost of electricity generation from solar in India had fallen 65% in the last three years alone and double-digit declines were forecasted to continue.



It said that the financial modeling demonstrates that renewables not only start out cheaper than building new imported coal power capacity, but also get cheaper overtime.



In contrast, the average price escalation for imported coal in India equated to four per cent annually in rupee terms because it requires purchasing this US dollar denominated fuel.



Mr Buckley said that "India's perilous economic and financial situation creates further uncertainty for companies relying on its ability and willingness to import coal, with its associated implications for inflation, current account deficits, economic instability and energy security."



He said that "The good news is that renewables are increasingly affordable and effective: wind, solar and hydro can be built faster and cheaper, in addition to acting as a deflationary driver in the economy."



He added that "A greater reliance on imported coal undermines India's national energy security position and weakens its push for greater energy sector diversity."

Souce:- coalguru.com

China To Build Railway Linking East Africa

China has signed a deal to build a $3.8bn railway link between Kenya's Indian Ocean port of Mombasa and Nairobi, the first stage of a line that will eventually link neighbouring Uganda, Rwanda, Burundi and South Sudan.

The agreement was signed in Nairobi on Sunday by visiting Chinese premier Li Keqiang and witnessed by the presidents of Kenya, Uganda, Rwanda and South Sudan,

Under the terms of the deal, Exim Bank of China will provide 90 percent of the cost to replace the crumbling British colonial-era line with a 609km standard-gauge link, and Kenya the remaining 10 percent.

Construction is due to start in October and will take three-and-a-half years to complete, with China Communications Construction as the main contractor, the AFP news agency reported.

Once the Mombasa-Nairobi line is completed, construction would begin to link east Africa's largest economy with Kampala, Kigali, Bujumbura and Juba - capitals of Uganda, Rwanda, Burundi and South Sudan.

"This project demonstrates that there is equal cooperation and mutual benefit between China and the East African countries, and the railway is a very important part of transport infrastructure development," Li, who is on a four-nation tour of African countries, said.

Li's visit, his first to the continent since taking office last year, has taken him to Ethiopia, Nigeria and Angola.In March 2013, Chinese President Xi Jinping signed a string of deals during a visit to the Republic of Congo. Xi also visited Tanzania and South Africa.

China, the world's second-biggest economy, is keen to boost its presence on the continent to find new markets and opportunities.

Uhuru Kenyatta, the Kenyan president, hailed the booming relationship with China, calling it one "based on mutual trust" and saying Kenya "has found an honourable partner in China".

At the same event, Ugandan president Yoweri Museveni took an apparent swipe at Western donors who have been critical of his leadership - including government corruption and his recent signing of anti-gay legislation."We are happy to see that China is concentrating on the real issues of development," Museveni said."They don't give lectures on how to run local governments and other issues I don't want to mention."

Source:- aljazeera.com

Onus is on assessee to prove that it is entitled to recover input tax under UK VAT Act

CST & VAT : Burden is on assessee to show that it is entitled to ascertainable credit

Marcellus Can Help Boost Pa. Steel

Pennsylvania is home to the highest-producing natural-gas shale play in the United States, and Marcellus Shale wells continue to break records. During the last six months of 2013, the commonwealth produced 1.7 trillion cubic feet of gas, or an average of 9.2 billion cubic feet per day - enough to satisfy about an eighth of the nation's daily natural-gas demand.

The continued safe and responsible development of Marcellus Shale natural gas presents a great opportunity to create new jobs and provide economic prosperity in the commonwealth.

With this prosperity, Pennsylvania is taking center stage in helping the United States achieve energy independence and reduce our need to rely on foreign energy sources. In addition to capital investments and job creation in energy, the development of the Marcellus Shale has the potential to greatly benefit Pennsylvania's manufacturing sector, in particular the steel industry. Perhaps the single most important product used to ensure the safe development of this abundant natural resource is high-quality steel pipe.

Pennsylvania steel mills manufacture different types of pipe used by the energy industry, including a product known as oil country tubular goods (OCTG). These safe, high-quality steel products are critical for natural-gas exploration and development infrastructure, and have been in high demand with the acceleration of natural-gas development in the United States, including from the Marcellus Shale play.

Although the demand for OCTG products has risen dramatically over the last several years, U.S. steel mills have been unable to fully capitalize on this opportunity. The problem is an oversupply of OCTG products caused by a surge of what appears to be illegal imports from a number of foreign countries, chiefly South Korea.

The illegal dumping of manufactured products occurs when a product is brought into the United States and sold at a price below its cost of production. The Pennsylvania Public Utility Commission's concern about this issue is the main reason we pushed to have included in the Pennsylvania Gas and Hazardous Liquids Pipeline Act (Act 127) the requirement that companies report to the PUC the country of manufacture of the steel pipe used to transport natural gas from unconventional wells in the commonwealth. The PUC believes this requirement would create an awareness of the issue and encourage companies to use domestically produced steel.

Although laws like Act 127 are beneficial, the primary means of preventing the illegal dumping of steel is through the federal government's enforcement of U.S. trade laws. Unfortunately, many foreign competitors do not adhere to those laws, and, in fact, some go to great lengths to circumvent them.

In an effort to stop illegal "dumping" practices, in July, several domestic OCTG steel producers filed a critical trade case against nine countries (India, the Philippines, Saudi Arabia, Taiwan, Thailand, Turkey, Ukraine, Vietnam, and South Korea). In February, the U.S. Department of Commerce announced preliminary findings on this case. Unfortunately, the preliminary findings resulted in no duties being imposed against South Korea - by far the largest exporter of OCTG products. In fact, South Korea exports 98 percent of its OCTG steel pipe into the United States.

The U.S. Department of Commerce is now undertaking investigative work in the final phase of the case. It is important that all of the facts are uncovered so steelworkers in Pennsylvania and across the country can compete on a level international playing field. Enforcing our trade laws forces foreign producers to compete fairly, import their products legally, and create true market competition. I am confident that given a level playing field, Pennsylvania steel companies and steelworkers will thrive, sharing in the benefits of our energy revolution.

On July 8, the Department of Commerce will make its final determination on the OCTG case. The outcome is critical for the future of Pennsylvania's steel industry and for steel manufacturing in the United States. It is of grave importance that our elected leaders in Washington ensure that the Commerce Department uses all of the tools at its disposal to expose the truth about this dumping and render a fair, well-reasoned decision.

Source;- philly.com

Asian Stocks Dropped With Gold, Wheat As Nickel Extends Advance

Asian stocks dropped, pushing the regional index down for the first time in three days, while US index futures gained after the Dow Jones Industrial Average climbed to a record. Gold led precious metals lower and wheat fell, while nickel advanced a fifth day.

The MSCI Asia Pacific Index fell 0.2 per cent by 10.11am in Tokyo after swinging between gains and losses. Standard & Poor’s 500 Index futures added 0.2 per cent after the gauge rose with the Dow May 9. Gold slipped 0.3 per cent in a fifth falling day, while nickel rose more than 2 per cent, headed for its highest close since 2012. Wheat futures slumped 2.2 per cent.

Two Ukrainian regions held referendums on autonomy yesterday as European leaders threatened more sanctions against Russia. Chinese President Xi Jinping said Asia’s largest economy needs to adapt to a “new normal” on growth, according to a state news report before the nation issues retail sales and industrial output data tomorrow. Malaysia releases March factory production today along with India, where voting in the national elections ends today. Australian business confidence is due.

“China is currently on course for its slowest growth period since 1990,” Evan Lucas, a markets strategist at IG Ltd in Melbourne, wrote in a client note today. “What is most interesting about the ‘new normal’ is the line on forward guidance. This is the clearest sign I have seen that a broad- base monetary stimulus to elevate the current slowdown will not eventuate.”

Counter measures

Xi said that China needs to remain “cool-minded” amid a slowdown in the economy, according to a Xinhua News Agency report posted on the central government’s website May 10. The government must prevent risks and take “timely counter-measures to reduce potential negative effects” of faltering growth, Xi said.

Japan’s Topix index was little changed after fluctuating between gains and losses.

Australia’s S&P/ASX 200 Index fell 0.3 per cent as New Zealand’s NZX 50 Index added 0.1 per cent, after dropping 1.5 per cent last week. The Kospi gauge in South Korea dropped 0.2 per cent. Lee Kun Hee, chairman of Samsung Electronics Co, the biggest stock in the gauge, is in a stable condition after surgery following a heart attack. Samsung Electronics shares gained 1.1 per cent today.

Futures on the Dow and Nasdaq 100 Index rose 0.2 per cent today. The Bloomberg China-US Equity Index of the most-traded Chinese stocks in New York rose 0.3 per cent May 9, reducing its weekly decline to 1.4 per cent. Internet stocks led the drop last week as investors sold off companies which have been among the biggest winners in the US bull market. The Dow Jones Internet Composite Index retreated 3.6 per cent last week, exceeding the 0.1 per cent decline in the S&P 500.

Twitter Inc. and Groupon Inc. tumbled more than 15 per cent last week. Apple Inc. fell 0.4 per cent May 9. The iPhone maker is in advanced talks to buy headphone maker and music-streaming service Beats Electronics LLC for US$3.2 billion (RM10.3 billion), according to people with the knowledge of the discussions who didn’t want to be identified.

Gold slipped to US$1,285.48 an ounce on the spot market today, after sliding 0.8 per cent last week. Silver dropped to US$19.13 an ounce, while platinum and palladium retreated at least 0.2 per cent.

Nickel for three-month delivery on the London Metal Exchange climbed 2.2 per cent to US$20,350 a metric ton, set for the highest close since February 13, 2012.

Supply concerns

Nickel outperformed other industrial metals last week, surging 9 per cent for its steepest weekly advance in four years. Prices of the metal used in stainless steel climbed to a two- year high May 9 after the closure of Vale SA’s New Caledonia plant stoked concerns over supply already inflamed by Indonesia’s export ban from January.

Brent crude futures added 0.3 per cent today, to US$108.26 a barrel. Russia is the world’s biggest energy exporter. West Texas Intermediate crude oil rose 0.1 per cent to US$100.12 a barrel after last week’s 0.2 per cent climb.

Ukraine’s Donetsk region, in the country’s east, voted 89.7 per cent in favour of independence in a referendum, Russian newswire RIA Novosti reported, citing preliminary data from separatists. Turnout in the plebiscite was 74.87 per cent and final results are expected today, Roman Liagin, head of the Donetsk People’s Republic election committee, was cited as saying.

Tougher measures

The Donetsk and Luhansk regions held referendums on autonomy that were viewed as illegal by the government in Kiev, the European Union and the US Russian President Vladimir Putin publicly called for a delay in the votes. French President Francois Hollande said tougher measures should be imposed if Russian interference prevents an election scheduled for May 25.

Wheat futures slid to US$7.0750 a bushel in a fourth day of losses. Russia is the world’s fifth-largest producer of the grain, followed by Ukraine.

Ten-year Treasury yields rose one basis point, or 0.01 percentage point, to 2.64 per cent today, after gaining the same amount May 9.

Dennis Lockhart, president of the Atlanta Fed, said he expects the central bank to use a reverse-repurchase programme when it eventually begins to tighten monetary policy. Lockhart, who doesn’t vote on policy this year, said reverse repos may well play a role in influencing short-term rates in comments to reporters yesterday after a speech in Dubai.

Federal Reserve Chair Janet Yellen declined to provide a timeframe for raising interest rates in the world’s biggest economy last week, and also told US lawmakers that she believes the economy still requires a strong dose of stimulus.

Source:- themalaymailonline.com

Onion Exports Up 25 P.C. On Higher Unit Value

Backed by spurt in unit value realisation, India’s onion exports surged in value terms by over 25 per cent to Rs. 2,877 crore in the 2013-14 fiscal, even as volumes registered tepid growth.

The country’s total onion exports had stood at Rs. 2,294 crore in the 2012-13 fiscal.However, in volume terms, exports fell by 25.46 per cent to 13.58 lakh tonnes during the financial year 2013-14 as against 18.22 lakh tonnes in the previous year.

“Exports in value terms rose in 2013-14 primarily on account of increase in unit value realisation,” said a senior official of the cooperative firm Nafed.

According to Nafed data, the unit value realisation improved by 68 per cent to Rs. 21,183 per tonne from Rs. 12,590 per tonne in the review period.

Onion shipments picked up since December 2013 after the government lowered the minimum export price (MEP) to $150 a tonne from $350 a tonne.

The government had imposed MEP on onion in September 2013 after which it was raised several times to curb exports and boost domestic supplies as retail prices had shot up as high as Rs 100 per kg in many parts of the country. The government had to even import onion to control price rise.

With improved domestic supplies and crash in wholesale rates, the Centre had later done away with the MEP to boost exports.

India’s onion production is estimated to be higher by 13 per cent at 189.8 lakh tonnes in the 2013-14 crop year (July-June), from Rs 168 lakh tonnes a year ago.

Source:- thehindu.com

Project Exports To Get A Boost Exim Bank

Here is some good news for Indian companies, especially the MSMEs in the logistics and shipping segments.The African continent's need for investment for development is being targeted by leading export finance organisation, Exim Bank, which of late, has initiated a slew of programmes to promote project exports.

The developmental financial organisation that has been especially set up to promote exports through various support mechanisms, has seen its loan portfolio growing 16 per cent to Rs 75,873 crore in 2013-14 . Its line of credit extended to support export of projects, goods and services from India stands at $ 1,771.75 million for the same period.

Project export contracts supported by the bank in 2013-14 amounted to Rs 34.131 crore which were secured by 40 companies in 35 countries. As on March 31, 319 project export contracts valued at Rs 1,40,326 crore supported by the bank were under execution in 74 countries across Asia, Africa and CIS by 99 Indian companies.

What is of special significance is that while its loan portfolio has grown 16 per cent during the period, its loan to the MSME sector has shown a growth of 40 per cent.

It perhaps underlines the organisation's thrust to promote the fledging MSME sector.

The bank plans to set up a Project Development Company (PDC) in Africa which will essentially look to bring infrastructure projects in Africa to a bankable stage and facilitate exports from India to Africa.

This is the first time the bank is looking to set up a PDC and it is also the first time in Africa.

Increasing globalisation of the economies in Africa, its global trade has witnessed significant upward trend in recent years. According to rough estimates, the 55 African countries require $90 billion in investments every year.

Africa's total trade have risen five-fold from $225 billion to $1129 billion during 2001-2011 .

During that decade, the region has emerged as an important partner for India, both as an export market and as an import source. India's total trade with Africa has risen 12-fold , from US$ 5.2 billion in 2001 to touch US$ 63 billion in 2011.

While India's total exports to Africa has risen 8-fold during the period, the country's total import from Africa has shown a 17-fold increase.

However, India has achieved a respectable share in only a few commodities out of the major import categories of African countries.

The bank believes that India's current global capacity could be matched with Africa's import demand, leading to enhanced exports from India. Strategy to promote bilateral trade relations could also encompass the case of enhancing domestic production in India.

India's expertise in several manufactured products and technology, capability in high value added production and manufacturing, with an increasing import demand could prove to be a win-win situation for both India and Africa, it said.

In March, Exim Bank signed an MoU with the International Trade Centre ( ITC) to promote trade and investment between India and East Africa through the support of SMEs in their access to finance.

According to Yaduvendra Mathur, CMD, there is tremendous value in engaging SMEs and supporting Indian investments in East Africa.

"There is a huge appetite in leveraging the global value chain for the commodities and services sector for the export market. There are already Indian firms with a presence in East Africa and Exim Bank is ready to support trade development through South-South cooperation ," he said.

Source:- economictimes.indiatimes.com

Onus is on to prove that it is entitled to recover input tax under UK VAT Act

CST & VAT : Burden is on assessee to show that it is entitled to ascertainable credit

Lessor obliged to execute lease-cum sale deed in favour of liquidating-co. as latter had fulfilled a

CL: Where lease deed required lessee Company-in-liquidation to execute sale deed, if all other obligations on part of lessee had been completed and there was no indication that there was any default in payment of lease rent by lessee, only obligation that was outstanding on part of lessor was execution of sale deed

Tobacco Exports Hit $1 Billion Mark, Thanks To Strong Dollar, Global Demand Help

Indian tobacco exports have crossed the $1-billion (Rs 6,000-crore) mark during the year ended March 2014, largely due to a strong dollar and global demand for certain varieties . During the year , India reported exports of Rs 6,059 crore ($1.001 billion), a 22% growth over the previous year's Rs 4,979 crore ($914.43 million).

The record for the highest exports so far in value terms was in 2009-10 at $928 million . India , the third-largest producer and the second-largest exporter of tobacco , saw significant growth in exports of Flue-cured Virginia (FCV) tobacco at 1.8 lakh tonne (Rs 4,085 crore), up from 1.73 lakh tonne a year ago . However , the country saw only a marginal growth in the overall volume of exports , including unmanufactured tobacco and tobacco products such as cigarettes , at 2.64 lakh tonne , up from 2.63 lakh tonne the previous year .

The dollar appreciated 11% against the domestic currency during the period under review . Andhra Pradesh and Karnataka are the two major producers of tobacco in the country , together accounting for more than half of India's tobacco production . The Tobacco Board is optimistic about tobacco exports from the country during the current fiscal as well, said its chairman K Gopal . "Despite several challenges across the world , we could achieve the $1-billion mark in exports . While the dollar appreciation helped exports grow significantly in value terms , the uptick in global demand also played a key role ," he told ET.

Gopal said the tobacco board has set a target of Rs 7,000 crore of exports during the current fiscal , a growth of over 15% in value and a marginal growth in volume , he said . Bellam Kotaiah , founder chairman of one of the largest exporters BVL Group and former president of Indian Tobacco Association , said , "Smaller global players are also getting access to Indian tobacco since the Indian tobacco was cheaper compared to Brazil and Zimbabwe ."

Kotaiah further said that while the average global tobacco price stood at $4 per kg , Indian tobacco was available at around $2.7 a kg . The key markets that helped the exports growth last year were western and eastern Europe , which together account for about half of unmanufactured tobacco.

Source:- economictimes.indiatimes.com

Sharp Rise In Malta's Trade Deficit As Exports, Imports Decline

Malta registered a trade deficit of €122.2 million in March, compared to €76.3 million in the corresponding month last year, official figures issued today show.

There were decreases in both imports and exports of €14.1 million and €60.0 million respectively. The decrease in imports was primarily due to machinery and transport equipment, with other declines registered in food, miscellaneous manufactured articles, miscellaneous transactions and commodities, chemicals, and animal and vegetable oils and fats.

Machinery and transport equipment accounted also for the main decrease in

the value of exports when compared to the corresponding month last year. Other notable drops were registered for mineral fuels, lubricants and related materials, chemicals, miscellaneous manufactured articles, semi-manufactured goods.

In the first quarter this year, the trade deficit widened by €63.1 million, to €347.6 million.

Both imports and exports registered decreases when compared to the period January-March 2013. The decrease in imports of €12.4 million was mainly due to machinery and transport equipment, with other decreases registered for miscellaneous manufactured articles, food, miscellaneous transactions and commodities, chemicals, beverages and tobacco, and crude materials. The decline in the value of exports of €75.6 million was primarily due to machinery and transport equipment. Other decreases were noted for all

sectors except beverages and tobacco, and crude materials.Malta’s trade imports from the European Union reached €680.1 million, or 53.5 per cent of the total. There was a drop of €58.0 million in imports from euro area countries.

Increases were registered from the United States of America, Spain, Saudi Arabia, Belgium and the United Kingdom. However, imports from Libya, Italy, France, the Netherlands, Germany, the Republic of Korea, China, Turkey, Japan, Switzerland and India showed a decrease.

Exports to the euro area decreased by €26.4 million, mainly to France, the Netherlands, Spain and Belgium, while increases in exports were recorded for Libya, the United States of America and Italy.

Source:- timesofmalta.com

Rupee Rises To 10-Month High Of 59.50 Per Dollar As Stock Markets Rally

The Indian rupee strengthened to a 10-month high on Monday, following cues from record high domestic stocks, ahead of the exit poll predictions due after market hours.

Dodging the depreciating trend in other Asian currencies, the rupee opened at 60.01 per dollar against its Friday’s close of 60.03, but soon rose 0.85% to 59.50 per dollar, its highest level since 29 July.

At 2.13pm, the rupee was trading at 59.73, up 0.49%, while most of the Asian currencies were trading lower. The Malaysian ringgit fell 0.32%, Philippines peso was down 0.17%, Singapore dollar was down 0.15%, Japanese yen was down 0.15%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 79.815, down 0.11% from its previous close of 79.903.

The 30-share Sensex was trading higher by 2.01%, or 462.88 points, at 23,457.11 points, the National Stock Exchange’s 50-share Nifty rose 1.92% to 6,990.8 points.

The S&P BSE Oil and Gas, S&P BSE Bankex, S&P BSE Capital Goods, S&P BSE FMCG, and S&P BSE Auto and Power indices were the top sectoral gainers, up about 2.5% each, followed by S&P BSE Realty, S&P BSE Metal and S&P BSE Consumer Durables indices which were up 1.74% each. The S&P BSE Healthcare index was the top sectoral loser, down 0.68%.

Currency dealers say the rupee is tracking the equity markets. “Rupee is tracking equity markets, but the dollar buying that you see from public sector banks when the rupee strengthens to 59.95 level is absent today (Monday). So exporters are selling, but PSU banks are not buying,” said Harihar Krishnamurthy, head of treasury at FirstRand Bank Ltd.

Currency traders said the expectation that the Bharatiya Janata Party (BJP) is forming the next government is boosting local equities and the currency.

According to Satyajit Kanjilal, managing director at ForexServe, a currency consultant, if the BJP and its allies secure 300 seats, the rupee may appreciate as much as 58.50 a dollar. But the Reserve Bank of India (RBI) may not want to let the currency appreciate much as that would hurt India’s export competitiveness. However, the present rally may reverse if the poll results show even a small amount of uncertainty, he said. Rupee in that case may weaken to the 61.50 a dollar level. For now, most of the positive news expectations have factored in the exchange rate, he said.

“The exuberance seen now in the stock and rupee is because people are expecting a new government with a large mandate will sort out policy paralysis. Already key sectors like power and infrastructure is rallying but RBI will unlikely let the rupee strengthen too much and they are actively buying dollars from the market and building up the country’s reserves. Much of the rally in rupee is largely behind us,” Kanjilal said.

Trade deficit in April narrowed to $10.1 billion against $10.5 billion in March. Exports rose 5.3% year-over year to $25.6 billion, while imports fell 15% to $35.7 billion in the same period.

Since the beginning of this year, the rupee has gained 3.46%, while foreign institutional investors have bought $5.55 billion during the period from local equity markets.

The yield on India’s 10-year benchmark bond was trading at 8.737%, compared with its Friday’s close of 8.749%. Bond yields and prices move in opposite directions.

The government will issue numbers for the Index of Industrial Production (IIP) for March and Consumer Price Index (CPI) inflation data for April at 5.30 pm on Monday.

A Bloomberg poll showed that the industrial output for march will fall 1.5% as against a decline of 1.9% in February, while CPI Inflation will be 8.5% for April as against 8.31% in March.

Source:- livemint.com

No denial of sec. 80-IB relief if land wasn't owned by assessee and development approval was in name

IT : Section 80-IB deduction admissible to assessee developer though development permissions were obtained by landowner

VAT payments are governed by statutory provisions and not by law of contract; says Menchester Tribun

CST & VAT : Payment of VAT is not governed by Law of Contract alone but by express and specific statutory provision and in case of delay owing to late deposit of cheque with bank, assessee is liable to penalty

Receipt of cash loans in garb of share application money calls for penalty due to violation of sec.

IT: Where assessee received cash as share application money from an individual but only meagre amount of shares were allotted to said individual, penalty under section 271D was to be imposed

Depart. to pay value of goods at time of seizure even when illegally seized goods were sold at low p

Excise & Customs : In case seizure is declared illegal and seized goods are to be returned but cannot be returned as they stand sold at very low price and without following specified procedure, department is bound to pay value of goods at time of seizure

TP additions deleted as domestic transactions and functionally dissimilar comparables were included

IT/ILT: Where TPO included domestic transaction while computing TP adjustment and one of comparables was found to be functionally dissimilar from assessee, TP adjustment to that extent be deleted

SC: Lease of liquidating-co. could be revoked without approval of CLB as lease cancellation wasn’t a

CL: Serving of notice of cancellation of lease would not come within mischief of section 537 as that by itself does not amount to attachment, distress or execution etc. and, therefore, no prior permission would be required for cancelling lease of company-in-liquidation

HC slams AO for invoking sec. 14A disallowance when assessee had interest free funds to invest in sh

IT : Where it was apparent from records that assessee had sufficient funds for making investments in shares and interest free bonds and it had not used borrowed funds for such purpose, Assessing Officer was not justified in invoking provisions of section 14A in order to disallow one per cent of interest expenses incurred for earning exempt income

Composite services classifiable as ‘works contract services’ with effect from June 1, 2007

Service Tax : Prima facie, composite services could not be classified as commercial or industrial construction services after introduction of works contract services from 1-6-2007

Industries Propose Buffer Stock Of Rubber For Lean Period

At a stakeholders' meeting held at Kottayam on Friday, tyre manufacturers and rubber products makers have proposed the setting up of a buffer stock for rubber, citing the disparity between the production and consumption levels in India.

"We put forward the idea of forming a buffer stock of 30,000 tonnes of natural rubber funded by the public-private partnership (PPP) model. During the peak production season, rubber could be stocked systematically and released during the lean months," said Rajiv Budhraja, director general of Automotive Tyre Manufactures' Association (ATMA).

All India Rubber Industries' Association (AIRIA) and ATMA also met Rubber Board officials and the representatives of rubber farming community to discuss the possibility of this proposal in Kerala.

Under the proposed model, the funding expenses would be met by the consuming industries or the state government on behalf of the producing community. "A third option is the funding by the central government through the department of commerce," said Budhraja.

According to him, India follows a unique demand-supply equation for rubber, with domestic production higher than consumption for four months in a year followed by consumption higher than production in the next four months. Both the production and consumption match only for one or two months. "With a buffer stock in place, industry can import rubber on a calibrated manner," he noted.

However, M C George, the national trustee of Indian Farmers' Movement (Infam), sounded quite skeptical of the industry's move and said: "This is like a cartel, with the government and the industry as members, trying to control the price of rubber."

According to S Ratnakumaran, MD of Kerala State Co-operative Rubber Marketing Federation (Rubbermark), the agency may soon be able to restart the procuring of rubber to stop the price fall in Kerala.

J Thomas, the rubber production commissioner with the Rubber Board, said the current decline in rubber price is due to the excess supply of the commodity in the global market.

Average price of RSS-4 grade natural rubber has slid to Rs 143.80 last month from Rs 162.38 per kg in April 2013. It further dropped to Rs 138 by the end of the first week of May.

Source:- timesofindia.indiatimes.com

Sensex Up Over 300 Points; Nifty Holds 6900; Top Ten Stocks In Focus

The S&P BSE Sensex surged over 400 points in trade on Monday, while Nifty too rose to its record high of 6975.70 in trade, supported by strong buying seen in banks, capital goods, oil & gas and power stocks.



Nifty has surpassed its previous swing's high of 6870 levels on Friday. Moreover, it has engulfed the candlestick of the previous nine days which makes it one of the most reliable bullish engulfing patterns.



At 10:30 a.m.; the 50-share index was trading at 6947.80, up 89 points or 1.3 per cent. It touched a high of 6,975.70 and a low of 6,862.90 in trade today. The S&P BSE Sensex was trading at 23,316.72, up 322 points or 1.40 per cent. It touched a high of 23410.36 and a low of 23,008.65 in trade today.



Here is a list of ten stocks which are in focus today:



Financial TechnologiesBSE 0.80 % Ltd: The Financial Technologies (FT) board said it would take two weeks more to attain a final bid for its stake in commodity bourse MCX and that all the shortlisted bidders continue to be interested in the divestment process.



At 10:30 a.m.; the stock was trading 3 per cent higher at Rs 270.



Reliance IndustriesBSE 2.68 % Ltd: Reliance Industries, along with its partners BP and NIKO have issued a notice of arbitration to the government of India seeking implementation of the revised price for gas produced from the Krishna-Godavari basin (KG-D6).



At 10:30 a.m.; the stock was trading 2.9 per cent higher at Rs 1027.



Dena Bank: Dena BankBSE 1.35 % today reported a 49 per cent jump in net profit to Rs 187.28 crore in the fourth quarter ended March 31. Total income increased to Rs 2,866.78 crore from Rs 2,539.74 crore.



At 10:30 a.m.; the stock was trading 1.5 per cent higher at Rs 63.90.



Tree House Education: Venture capital firm Matrix Partners has recorded a handsome return from the sale of a portion of its holding in school management firm Tree House Education and AccessoriesBSE 1.13 %. Matrix sold 4.84% stake in the company for Rs 50.4 crore on Friday according to data on the Bombay Stock Exchange.



At 10:30 a.m.; the stock was trading 0.8 per cent higher at Rs 285.70.



Tech MahindraBSE 0.48 % Ltd: IT services firm Tech Mahindra has entered the Mexican market, where it will focus on industries such as telecom, banking, energy and manufacturing and help create about 500 jobs in the next 24 months.



At 10:30 a.m.; the stock was trading 0.6 per cent higher at Rs 1784.55.



Central Bank of India: Central Bank of IndiaBSE 0.37 % recorded a 4 per cent decline in net profit to Rs 162.44 crore in the fourth quarter ended March 31. The state-owned bank had posted a profit of Rs 169.15 crore in the January-March quarter of 2012-13, according to a filing to the BSE.



At 10:30 a.m.; the stock was trading 0.5 per cent higher at Rs 54.10.



Chambal Fertilisers: Chambal FertilisersBSE -3.03 % today reported over 75 per cent fall in net profit at Rs 5.62 crore for fourth quarter ended on March 31, due to lower income. The company had posted the net profit of Rs 22.94 crore in the same quarter in year 2012-13.



At 10:30 a.m.; the stock was trading 2.8 per cent lower at Rs 40.05.



United Spirits Ltd: United Spirits LtdBSE -1.34 % agreed to sell its Whyte & Mackay scotch whisky unit to Emperador Inc in a 430 million pound ($729 million) deal that satisfies UK antitrust concerns and the Filipino company's thirst for growth.



At 10:30 a.m.; the stock was trading 0.6 per cent lower at Rs 2759.



Aditya Birla NuvoBSE 0.76 % Ltd: ABNL IT & ITES, a wholly-owned subsidiary of Aditya Birla Nuvo (ABNL), completed the divestment of Aditya Birla Minacs Worldwide to a group of financial investors, led by CX Partners and Capital Square Partners.



At 10:30 a.m.; the stock was trading 0.8 per cent higher at Rs 1120.



Andhra Bank: Andhra BankBSE 1.39 % reported a net profit decline of 75% after setting aside more money to cover bad loans in the three-month period ended 31 March. Revenue, or interest- and non-interest income combined, rose 9.3% to Rs.4,057.9 crore from Rs.3,713 crore.



At 10:30 a.m.; the stock was trading 0.6 per cent higher at Rs 65.20.

Source:- economictimes.indiatimes.com

Participation in proceedings ratified sec. 148 notice even if period for filing return wasn’t specif

IT : Even if period for furnishing return of income was not specified in notice under section 148 but assessee had participated in reassessment proceedings, such reassessment was valid

The Real Cost Of Exchange Rate Management

The sharp currency appreciation in March 2014 has dampened the sentiments of manufacturing concerns. Exporters are losing competitiveness while others are threatened by import substitution as imported finished goods are getting marginally cheaper to domestically produced ones.

Lets delve upon a few indicators to gauge the impact of unwarranted currency movement on competitiveness of domestic industries.

Firstly, the focus should be on real effective exchange rate (REER) that captures the rate of inflation differential with trading partners. According to the SBP, REER was appreciating till December which means the currency was depreciating and industry was gaining competitive edge. Ever since then, the curves topple over - REER has appreciated by 8 percent in the third quarter to reach at 109.67. In order to have the same REER as of December 2013, nominal exchange rate had to be at Rs105.8 per USD today.

Then according to the IMFs projections, Pakistans REER had to depreciate by 7.7 percent in FY14 but it has actually appreciated by 2.8 percent, so nominal currency has to devalue by 10.5 percent from today to June end to meet the funds expectations. This gives a good handle to see where the currency needs to be to counter the inflation difference with trading partners.

One may argue that the SBPs reserves have more than doubled since December to cover two months of imports and that explains the upward movement in currency. The other way to look is to see the relationship between the building of reserves and currency movement. Since March 2013 when reserves were similar to todays levels, REER has moved up by 4.7 percent (REER March 13: 104.7) and to be at equilibrium, the rupee should have been at 104.7 against the greenback. But it continues to hover around the promised number of 98.

Another gauge to measure competitiveness is to see what has happened to currencies of Pakistans trading competitors. The textile exporters are fighting for same trough with Turkey and Bangladesh in the EU. Then India and Thailand, particularly, is giving Pakistan a real tough time in garments.

The table illustrates the relationship of reserves to the currency movement in five competitive countries. Interestingly, Indonesia, Turkey and Thailand, where reserves are manifolds compared to Pakistans, have allowed their currencies to depreciate by a significant margin in the last year or so while the rupee today is hovering around where it was at the start of year.

While in India and Bangladesh, nominal currencies have appreciated or remained unchanged (similar to us), they are running huge export incentive regimes. This is to deal with monetizing the value of incentive to see the impact on actual exchange rate.

These incentives can be in the form of tax holidays, interest rates subsidies and so on. For instance, India has given tax breaks to its textile exporters upon Pakistan attaining the GSP+ status and that has diluted Pakistans edge. There is a striking finding from a study conducted by eminent economist Dr Hafiz Pasha that due to incentives, exporters in Bangladesh are getting effective exchange rate at Takka 112 per USD - 40 percent more than its nominal exchange rate.

Then we need to look at competitive disadvantages to Pakistan and compute how much we need to compensate through exchange rate and other fiscal incentives. For example, effective cost of electricity (including load shedding factor) is much higher in Pakistan. And to add to the ado, currency appreciation is causing import substitution too.

Sources reveal that nearly 25 percent of Pakistans yarn industry is recently (perhaps temporarily) replaced by cheaper product from India. Similarly ceramic players are finding it hard to keep prices at the levels or below the imported stuff from China of same quality.

The Ministry of Finance and the SBP need to conduct at least some back-of-the-envelope calculations and come up with some incentives through exchange rate depreciation, interest rate subsidy and import duties in the upcoming budget and monetary policy to counter the impact of adversaries, the industries are facing.

Source:- brecorder.com

Cotton Yarn Exports In Fy14 Estimated At $4.70 Billion

Country's cotton yarn exports for 2013-14 are expected to be around 1,350 million kgs valued at $4.70 billion.



A study conducted by the Cotton Textiles Export Promotion Council (Texprocil) has said that India's cotton yarn exports are meeting their targets, in spite of seasonal fluctuations generally witnessed every April and high raw cotton prices.



Statistics by Texprocil show that India exported 1,082 million kgs of cotton yarns valued at $3.75 billion in the first 10 months (April-January) of 2013-14. It is estimated that yarn exports for the entire 2013-14 would be around 1,350 million kgs valued at $4.70 billion.



The high quality of Indian yarns is ensuring firm orders from international markets.



April exports of cotton yarn had dropped in last the three and it happened in 2014 too. One reason is the high year-end exports which cause a drop in April. The temporary high prices during this period is another reason.



There is an increasing anxiety in the industry due to recent developments in Chinese cotton policy since China is the major importer of cotton and cotton yarns from India.



At present, the price difference between Indian and Chinese cotton is high, with the Indian yarn selling at much lower rates. Prices of Indian cotton yarns after payment of duty and taxes in China are still very much lower than the Chinese domestic yarn prices. "Given the better quality produced by Indian mills there will always be good exports of Indian yarns taking place, even if the difference between Chinese and international cotton prices narrows down substantially.



"Indian mills need not fear a drop in yarn exports happening beyond the seasonal fluctuations. However, profitability of exports will depend upon our price parity with international cotton prices," Texprocil Chairman Manikam Ramaswami said.



Texprocil facilitates exports from India of raw cotton, cotton yarns and blended yarns, woven and knitted fabrics, home textiles and technical textilesBSE 4.35 %.

Source:- economictimes.indiatimes.com

Ril, Bp And Niko Issue A Arbitration Notice To Govt Seeking Gas Price Implementation For Kgd6

Reliance Industries, along with its partners BP and NIKO have issued a notice of arbitration to the government of India seeking implementation of the revised price for gas produced from the Krishna-Godavari basin (KG-D6).



The 'Domestic Natural Gas Pricing Guideline 2014' was notified on January 10, 2014 after the government approved the Rangarajan formula doubling gas prices to $8.4 per unit from April 1. While the change was criticised by political parties and consumers, RILBSE 3.14 % defended it saying that the new price is still below the price of imported liquefied natural gas (LNG). The Election Commission stopped the government from announcing the new price until the election code of conduct is in force.



"The continuing delay on part of the Government of India in notifying the price in accordance with the approved formula for the gas to be sold has left the parties with no other option but to pursue this course of action. Without this clarity, the parties are unable to sanction planned investments of close to $4 billion this year," Reliance IndustriesBSE 3.14 % said in a press statement on Saturday.



The Mukesh Ambani-led energy major said that the continued delay by the government in notifying the price as per the approved formula will also delay the ability of the three partners to appraise and develop other significant discoveries made last year. The statement said that RIL, BP and NIKO were planning an aggregate investment of $ 8-10 billion in the next few years to significantly increase production from the KGD6 block, for which they require clarity on pricing.



"The three parties shall endeavour to work with the government to achieve a prompt and efficient resolution of this dispute," the statement said.



RIL said that the circumstances has "forced" it to go for a legal recourse and thus it served the notice to the government on May 9. In 2007, the government fixed a price of $4.2 per unit for gas from the KG-D6 for the first five years of production. The fields started production on April 1, 2009 and therefore the price expired on March 31, 2014. The pricing for gas from the KGD6 basin, for which RIL and its partners are operators, has been debated for over two years with a cabinet decision which approved a Rangarajan Committee price formula in 2013.



The deferment of Gas Pricing on the behest of the Election Commission has triggered speculation about the quantum of the price increase and also on whether it would be done on a retrospective basis. The speculations on the new government's stance on the gas pricing has also aggravated concerns since the Bhartiya Janata Party, which has emerged as taking the lead in most opinion polls, has indicated that it may explore different pricing models.



The pricing of the gas would be crucial for the fertiliser and power industry, which are the key consumers of the gas from the KG-D6 basin. Output at the Dhirubhai-1 and 3 gas fields is about 8 million standard cubic meters a day versus RIL's target of 80 mmscmd by this time. RIL blames geological complexities such as unanticipated water and sand ingress for the output drop. But oil ministry and its technical arm DGH feel Reliance Industry did not drill the committed quota of wells and had imposed a penalty of $1.8 billion penalty on the company.

Source:- economictimes.indiatimes.com

Tips To Cut Rough Gems Import Cost

India needs to strike free trade agreements with countries that produce raw materials imported by the gem and jewellery industry, according to industry association Assocham.

It said that the direct engagement with the mining source would spare the industry from paying steep prices.

About 90 per cent of raw materials are imported, and rough diamonds alone account for over 50 per cent of the imports.

In its study, Assocham has highlighted the necessity to secure raw materials at fair and competitive prices.

“As raw materials are not being sourced directly from the mining country, the prices paid by the Indian industry are high. The Indian gems and jewellery industry largely depend on imports of raw materials because the indigenous gems mineral production is far short of the actual requirements,” Assocham secretary-general D.S. Rawat said.

Besides, the industry remains susceptible to the impact of fluctuating demand and the variations in commodity prices and exchange rates.

Industry representatives, however, sought free trade pacts with major consumers of finished gems and jewellery products such as Russia, the EU and the US.

“What is required is the easing of tax and other compliances within the country. The income tax regime is so cumbersome that mining companies cannot sell in India. The necessary thing is to introduce presumptive tax. In any event, we already have zero duty on rough gem stones and diamonds while imports of gold are being discouraged,” said Pankaj Parekh, vice-chairman of the Gem & Jewellery Export Promotion Council.

Raw materials are often routed through Dubai, Israel and Belgium.

Source:- telegraphindia.com

Gold Imports Down 74 Per Cent To $1.75 Billion In April

Gold imports declined over 74 per cent to US $ 1.75 billion in April due to restrictions imposed by the government on inbound shipments of the precious metal to narrow the current account deficit.



Imports of gold in April 2013 stood at US $ 6.78 billion. In March, the imports of the precious metals were down by 17.27 per cent to US $ 2.75 billion from US $ 3.33 billion in the same month previous year. Lower imports helped to narrow the trade deficit to US $ 10 billion in the first month of the current fiscal (2014-15).



India's current account deficit (CAD), which is the excess of foreign exchange outflows over inflows, touched a historic high of 4.8 per cent of GDP in 2012-13, mainly due to rising imports of petroleum products and gold. A high CAD puts pressure on the rupee, which in turn makes imports expensive and fuels inflation.



Finance Minister P Chidambaram recently said the CAD was brought down significantly to US $ 32 billion in 2013-14 as against US $ 88 billion during 2012-13. The CAD in 2012-13 was at 4.7 per cent of GDP and in 2013-14 it will be only 1.7 per cent, the Finance Minister had said. The government had increased customs duty on gold to 10 per cent and banned import of gold coins and medallions, while the RBI linked imports of the metal to exports.



India is the largest importer of gold, which is mainly utilised to meet the demand of the jewellery industry. The Commerce and Industry Ministry is pitching for easing of the gold import restrictions to boost gems and jewellery exports, which declined by eight per cent in April to US $ 3.27 billion.

Source:- economictimes.indiatimes.com

'Mandi' fee collected by seller of agricultural products on behalf of purchaser is not part of sale

CST & VAT : Where assessee, a seller of agricultural product, collected mandi fee from purchaser of above product and deposited on his behalf with Mandi Samiti, mandi fee did not form part of 'sale price' as defined in section 2(36) of Rajasthan Value Added Tax Act, 2003

ICICI bank penalized on filing fake docs to steal a march over claim of other creditors in liquidati

CL : Where bank's application to be impleaded in winding up proceedings was found to be deliberate mischievous act, exemplary cost was to be imposed

No withholding taxes on commission paid to NR agents for services rendered abroad in absence of thei

IT/ILT : Where assessee made payments of commission to foreign agents for rendering services abroad, in view of fact that those agents did not have PE in India, commission was not taxable in India and, thus, assessee was not liable to deduct tax at source while making said payments

No reassessment on basis of seized docs when they were considered at time of original assessment

IT : Where Assessing Officer on basis of seized documents initiated reassessment proceedings taking a view that a part of unexplained investment in properties had escaped assessment, in view of fact that seized material which was basis of initiating reassessment proceedings had been duly considered at time of original assessment in light of explanation furnished by assessee, impugned reassessment proceedings deserved to be set aside

Customs dept. can’t order custodian to waive off demurrage charges for period of seizure

Customs : Customs Authorities cannot order custodian to waive demurrage for period of seizure/detention, etc.; waiver is grantable only if on conclusion of adjudication, there is no imposition of any fine, penalty, personal penalty and/or warning by customs authorities

RBI revises norms of ECB rescheduling; allows one time re-schedulement, excludes borrowers on defaul

FEMA/ILT : External Commercial Borrowings (ECB) Policy: Re-Schedulement of ECB -Simplification of Procedure

No reassessment by AO due to change of opinion that assessee wasn’t acting as an agent of State Govt

IT : Where Assessing Officer on basis of material on record, accepted assessee's claim that it being an agent of State Government, was not required to offer any income to tax from development of a new town project, he could not initiate reassessment proceedings after expiry of four years from end of relevant year merely on basis of change of opinion that assessee was not acting as agent of State Government in respect of project in question

HC directs lifting of provisional attachment of bank account subject to deposit of admitted liabilit

CST & VAT : Where assessee was engaged in business of construction and sale of flats and it had not filed returns and thereupon Commercial Tax Officer in exercise of powers under section 45 of Gujarat Value Added Tax Act, 2013 ordered provisional attachment of bank accounts of assessee, since there was admitted liability of Rs. 50 lakhs of tax by assessee, attachment of assessee's bank accounts required to be lifted subject to deposit of Rs. 50 lakhs

Sec. 234B interest levied as partner had adjusted unabsorbed depreciation of firm with his income

IT : Where partners of firm did not pay advance tax by claiming unabsorbed depreciation which they, in fact, could not claim, they would be liable to pay interest under section 234B

Pact among hospital and stem cell bank for exclusive collection of stem cell was anti-competitive

CL : Where OP hospital had entered into an exclusive agreement with stem cell banking service provider and permitted it on commission to collect umbilical cord blood of child of expecting mothers admitted in OP hospital for preserving stem cells of child, such exclusive arrangement would hindered development and competition in stem cell service industry as each player instead of competing with other players for efficiency and competitive price, would endeavour to pay commission to different hosp

Composite contract of manufacture, supply and installation of lifts in building amounts to 'works co

VAT/CST : Composite contract of manufacture, supply and installation of lifts in building (involving civil construction) amounts to works contract; however, if there are two contracts of purchase of components of lift from a dealer and separate contract for installation, same would be 'sale' and 'labour and service' respectively

Even long-term lease of 99 years by State Industrial Development Authorities is liable to ST

Service Tax : Even long-term leases of 99 years by state industrial development authorities amount to 'lease' and are liable to service tax under Renting of Immovable Property Services

HC dismissed writ against orders of DRT as statutory remedy of appeal was available under SARFAESI A

SARFAESI: Writ petition before High Court against order of DRT was not to be entertained where statutory alternative remedy of appeal to Appellate Tribunal was available under SARFAESI Act

No sec. 80G approval to trust created for benefit of Hindu community even if religious exp. was less

IT : Where assessee-trust was admittedly established with objects of religious nature for benefit of a particular community, it could not be granted approval under section 80G(5) merely because expenditure incurred by trust on religious activities was less than 5 per cent of its total income as required under section 80G(5B)

Tribunal could condone delay in filing of appeal by dept. if sufficient cause was shown

Excise & Customs : Tribunal can condone delay in Department's appeal/application on review under section 35E(4), if it is satisfied that there was sufficient cause for not presenting it within statutory period of 1 month from communication of review order