Freight and insurance charges are not includible in excisable value of goods if charges separately o

Excise & Customs : When freight and insurance is charged separately on actual basis under debit notes which are like invoices, it cannot be said that freight and insurance charges are not being separately charged; therefore, same is deductible (not includible) in assessable value under Central Excise

ITAT quashed sec. 148 notice as it was issued prior to date of approval from Joint or Additional CIT

IT: Where Assessing Officer issued notice under section 148 prior to date of approval from Jt. Commissioner /Addl. Commissioner, notice was bad in law and liable to be quashed

No denial of refund on ground that assessee could have used credit by making exports on payment of d

Cenvat Credit : Claim for refund of input credit under rule 5 of CENVAT Credit Rules, 2002/2004 on exports under bond without payment of duty, cannot be rejected on ground that assessee could have exported goods on payment of duty utilizing credit.

HC orders partial payment of tax in installments considering the financial condition of assessee

IT : Considering assessee's request that its business was not good and it was not in a position to pay 50 per cent of total demanded tax as directed by Assessing Officer, assessee was directed to pay 25 per cent of total demanded tax in two instalments

India's Plastics Exports Set To Touch Usd 15 Billion By Fy 19

India's plastics exports are set to touch USD 15 billion by FY 2019 from the present USD 8 billion, a senior industry official said here on September 17.

"We see higher export growth in coming years. India's plastics exports are set to touch USD 15 billion by FY 2019. The country exported plastics worth USD 7.9 billion in FY 2014 and hopes to export of USD 9.5 billion in FY 2015," Plastics Export Promotion Council (Plexconcil) Executive Director, R P Kalyanpur told reporters here on September 17.

"Our largest markets for plastics export are European Union and US for processed plastics. We are now looking at entering into exports of houseware and consumer items which has huge demand in the US market," he said.

"We are also pushing for the Technology Upgradation Fund (TUF) and to establish plastic parks to encourage plastic industry in the country," he said. On the 12th edition of the Arabplast 2015, scheduled to be held in Dubai between January 10 and 13, 2015, Al Fajer Information and Services General Manager Satish Khanna said that the trade show would help Indian companies further expand their operations through a global platform. Around 150 Indian companies are expected to participate in the event, he said.

Source:- asianage.com

Indian Gold Imports Are Likely To Pick Up Even Further Ahead Of Festival Season

The world's second biggest bullion consuming nation India's gold imports advanced significantly by 176% year-over-year during August, said HSBC, citing government's trade data.



India's merchandise trade deficit widened to $10.8 billion in August from $10.7 billion last August as gold imports rose to $2.03 billion from $740 million for the same months, respectively.



Tight import restrictions imposed last year by the Reserve Bank of India hampered gold trade. The RBI relaxed some of those import restrictions to allow several private agencies to import metal.



However, the bulk of the restrictions have been kept in place despite optimism from jewelers and industry groups in India earlier this year over (Prime Minister) Narendra Modi's victory in the general elections, which was interpreted as friendly for the gold market. HSBC expects India's appetite for bullion likely to improve ahead of the gold buying holiday, Diwali, on 23 October.



According to Commerzbank, the reported trade deficit is in line with the government's plans – though this also means that the gold import restrictions will probably not be eased for the time being.



Commerzbank concurs with HSBC that "gold imports are likely to pick up even further ahead of the important religious festivals of Dhanteras and Diwali."

Source:- metal.com

Import Duty On Feedstock For Petrochemicals Be Fixed At Zero Rate To Boost Domestic Value Addition

India's trade imbalance with GCC to deteriorate with tariff elimination on petrochemicals under proposed FTA

There is an urgent need to fix import duty on feedstock for petrochemicals including naphtha, natural gas liquids (NGL), propane and butane at zero rate to make investments in this sector financially viable and encourage domestic value addition as currently all these feedstock have higher duty resulting in nil to negative protection to the sector, according to an ASSOCHAM study.



The import tariff for the next level of products can be at a slightly higher level with progressive increase in duty rates to encourage domestic value addition, more so as there are compelling reasons to remove the duty anomaly prevailing in the petrochemical sector so that domestic investment becomes financially viable, suggested a study titled 'Import Dependency of Indian Manufacturing,' conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).



Import duty rationalization across petrochemical value chain is imperative for increasing domestic capacities and reducing dependence on imports, said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the study.



The ASSOCHAM study has also warned that tariff elimination on key petrochemicals under the proposed FTA with six nation Gulf Cooperation Council (GCC) would result in massive surge in imports thereby further deteriorating India's existing trade imbalance with GCC countries.



India, owing to its limited production capacity, depends on imports for toluene to meet its demand and its geographical proximity to the GCC makes it vulnerable to threat from GCC imports as it has surplus exporting capacity of toluene and is increasing its capacities to touch about 20 montmorillonite (MMT) by 2015, it added.



In its study, ASSOCHAM has also emphasized upon the need to explore alternative feedstock produced from sources like coal, biomass and others as most of the petrochemicals like ethylene, propylene and aromatics are currently produced via conventional routes utilizing naphtha (derived from crude oil) and ethane (derived from natural gas).



The study has further suggested the domestic producers to price their products in line with prices prevailing in the Southeast Asia (SEA) as imports are relatively free. As end-product prices are market driven, most producers irrespective of their cost of production have to maintain the selling prices in line with market prices and this results in varying margins for producers having different feedstock thereby affecting the investment prospects.



India's import duty structure provides for nil incremental tariff protection between key petrochemical inputs (naphtha, liquefied natural gas and propane) and their end products (building stocks like ethylene, propylene, benzene, and butadiene) as well as major petrochemical products like polymers, further noted the study.



Besides, the tariff protection is even negative for many products such as polymers vis-vis preferential duty for countries that have signed free trade agreement (FTA) with India, it added.



India is a net exporter of naphtha, the basic feedstock, while it imports large quantity of petrochemical products and this has been discouraging value addition within the country, highlighted the ASSOCHAM study.



An accelerated reduction in import tariff on polymers from 40 per cent in 2001-02 to five per cent in 2007-08 has resulted in increased flow of imports, the study added.



Besides, the five per cent import duty on naphtha feedstock for production of polymers has reduced the differential between upstream and downstream (polymers) to zero in India, while in other countries in the region and even in developed economies, this differential is 6.5 per cent.



India's five per cent import duty is much lower than that of Malaysia (20-30 per cent), Philippines (15 per cent), Indonesia (20 per cent) and China (6.5-8.4 per cent), noted the ASSOCHAM study. This disparity is affecting the competitive viability of the domestic investment in petrochemical sector.



Import tariff on other key petrochemical inputs like propane, catalysts, capital goods and others further reduces the competitiveness of domestic petrochemical industry, the study added.

Source:- business-standard.com

Department Of Revenue, New Delhi Announces Recruitment Notification For Various Vacant Posts

The Department of Revenue (DOR) New Delhi has recently announced recruitment for vacant positions of 48 Assistant Director posts, inviting interested and eligible candidates to fill up the positions. The Department of Revenue is operated under the overall direction and control of the Secretary (Revenue).

It exercises control in respect of matters relating to all the Direct and Indirect Union Taxes through two statutory boards namely, the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC).

Source:- indiatoday.intoday.in

Rupee Jumps 13 Paise Vs Dollar Ahead Of Us Fed Policy Meet Outcome

The Indian rupee appreciated for the second day in a row and ended 13 paise higher at 60.92 against the Greenback following sustained dollar selling by exporters ahead of a decision on US interest rates by Federal Reserve .



A weak dollar overseas also aided the rupee rise while fresh sell-off by foreign funds in domestic stocks capped the currency's gains, forex dealers said.



Dealers added that they are awaiting the outcome of Federal Open Market Committee two-day policy meet, which began Wednesday. Consensus expectations are that Fed will keep interest rates low for a while.



At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced strong at 60.95 a dollar from last close of 61.05. It moved in a narrow range between 60.8750 and 61.03 before settling at 60.92, showing a rise of 13 paise or 0.21 per cent. Wednesday, it had gained 8 paise or 0.13 per cent.



For the seventh straight meeting, the Fed later tonight is expected to taper its bond buying program by $10 billion, bringing QE3 down to only $15 billion per month, experts said.



Meanwhile, the Indian equity benchmark S&P BSE Sensex on Wednesday recovered by 138.78 points, or 0.52 per cent, after two days of heavy fall. FPIs/FIIs withdrew $ 120.70 million Tuesday, as per Sebi data.



The dollar index was trading down by a mere 0.03 per cent against its major global rivals ahead of Fed outcome.The Bank of England's (BoE) Monetary Policy Committee voted 7-2 at its September meeting to keep rates on hold and its quantitative-easing program unchanged, according to minutes released on Wednesday.

Source:- businesstoday.intoday.in

Courses relating to ‘digital and animation effects’ amounts to ‘vocational training’; exempt from se

Service Tax : Course in "Digital and Animation Effects" involving drawing, clay modelling, Matte Printing, Animation and Visual Effects, Motion Photography and Acting, prima facie, amounts to 'vocational training' and is exempt from service tax

No publication of special notice for removal of Chairman aiming to have publicity and defaming petit

CL : Where special notice issued by respondent for removal of chairman of petitioner company was nothing but to secure needless publicity and defaming company and amounting to abuse of process of law, petitioner company was exempted from publication, circulation, or reading out at forthcoming AGM, said notice

Income arising to NR from activities not related to its PE in India isn’t taxable

IT/ILT : Where revenue did not challenge Tribunal's finding that Indian subsidiary of assessee-company only constituted its service PE in India in first round of litigation, it could not challenge consequential assessment order passed by Assessing Officer raising a new plea that Indian subsidiary constituted not only service PE but also fixed place PE of assessee in India

CBEC appoints Chief Commissioner of ST and Principle Chief Commissioner of ST as Central Excise offi

SERVICE TAX LAWS : Section 2(B) of The Central Excise Act, 1944, read with section 65B(55) of The Finance Act, 1994 - Central Excise Officer – Appointment of Chief Commissioners of Service Tax, Principal Commissioners of Service Tax, Commissioners of Service Tax, Commissioners of Service Tax (Audit), Commissioners of Central Excise (Audit), Commissioners Large Taxpayers Unit, Commissioners of Large Taxpayer Unit (Audit), Commissioner of Central Excise (Appeals) and Commissioners of Service Tax

CBEC appoints Excise Officers in Directorate General of Audit/excise intelligence/service tax

SERVICE TAX LAWS : Section 2(b) of The Central Excise Act, 1944, read with Section 65B(55) of The Finance Act, 1994 – Central Excise Officer – Appointment of Officers in Directorate General of Audit, Directorate General of Central Excise Intelligence and Directorate General of Service Tax

CBEC revises jurisdiction of Central Excise Officers

EXCISE & CUSTOMS LAWS : Jurisdiction of Principal Chief Commissioners of Central Excise, Chief Commissioners of Central Excise, Principal Commissioners of Central Excise, Commissioners of Central Excise, Commissioners of Central Excise (Appeals) or Commissioners of Central Excise (Audit) – Supersession of Notification No. 14/2002-C.E. (N.T.), Dated 8-3-2002

CBEC appoints Principal Director General and Principal Additional General as Central Excise Officers

EXCISE & CUSTOMS LAWS : Section 2(B) of The Central Excise Act, 1944 - Central Excise Officer – Appointment of Specified Officers as Central Excise Officers - Amendment in Notification No.38/2001-C.E. (N.T.), Dated 26-6-2001

CBEC's power to specify jurisdiction of Commissioner of ST(Appeals)/(Audit) delegated to Commissione

SERVICE TAX LAWS : Section 37A of The Central Excise Act, 1944, read with Section 83 of The Finance Act, 1994 - Delegation of Powers – Delegation of Powers to Principal Chief Commissioner of Central Excise or Chief Commissioner of Central Excise or Chief Commissioner of Service Tax

Govt. delegates CBEC's power to specify jurisdiction of CCE(Appeals)/CCE(Audit) to Commissioner of E

EXCISE & CUSTOMS LAWS : Section 37A of The Central Excise Act, 1944 - Delegation of Powers – Delegation of Powers to Principal Chief Commissioner of Central Excise or Chief Commissioner of Central Excise

Angles/TMT bars used in cement factory for erection of raw mill project were eligible for credit as

Cenvat Credit : M.S. Angles, M.S. Beams, M.S. Channels and TMT bars used in erection of raw mill project, additional flyash handling system, crusher etc. in a cement factory are eligible for capital goods credit as 'components and parts'

No disallowance of exp. incurred by trust on international conference/training for advancing objects

IT : Expenditure incurred by a charitable trust on international conference or training could not be disallowed on ground that it was not notified in a circular issued by CBDT

Trade discount wasn’t deductible from turnover on basis of credit notes if it wasn’t shown in tax in

CST & VAT: Where assessee claimed deduction in respect of trade discount as per credit notes issued after end of month, since discount did not find a place in tax invoice, assessee was not entitled to deduction

CIT couldn’t make revisional order merely to change the head of income determined under sec. 68

IT: When in absence of satisfactory explanation about source, unsecured loan was treated by Assessing Officer under head business income, such a view of Assessing Officer being possible, review to assessee loans as income from other sources was unjustified

Development of land for township isn’t taxable under ‘construction of complex’ or ‘works contract’s’

Service Tax : Development of land for township (involving levelling, demarcation of plots, boundaries, underground cabling/pipelining, etc.) is not taxable under 'construction of residential complex services' and 'works contract services

CLB reconstitutes Delhi bench for 'Lok Adalat' to be held in Sep. 2014

COMPANIES ACT, 1956 : Section 10E of The Companies Act, 1956, read with Regulation 4 of The Company Law Board Regulation, 1991 - Constitution of Board of Company Law Administration - Constitution of New Delhi Bench - Amendment in Order of Even Number, Dated 25-9-2013

ITAT deletes penalty as assessee had paid taxes after specifying manner in which undisclosed income

IT: Where Assessing Officer having completed assessment, passed a penalty order under section 271AAA for default of not substantiating manner in which undisclosed income was derived, in view of fact that assessee made statement that he had earned undisclosed income for various transactions of sale/purchase of land which did not face any rebuttal and, moreover, assessee had paid due tax on said income, impugned penalty order deserved to be set aside

ALP of Mofetil drug couldn’t be determined on basis of other drugs without analyzing their profit ma

IT/ILT : Matter remanded to determine ALP of drug Mofetil when Assessing Officer had compared price of other drugs to determine ALP of Mofetil

No excise demand on director’s confession without any evidence indicating clandestine removal of goo

Excise & Customs : Confessional statement may be starting point of investigations but in absence of weighment slips/other evidence indicating clandestine removal, same cannot be held to be conclusive and/or made sole basis for deciding against assessee.

No clandestine removal when duty paid goods returned by customer were directly cleared from premises

Excise & Customs : If duty-paid goods returned by customer are not brought back to factory and are cleared directly from premises of transporter/dealer under commercial invoices, same cannot be regarded as 'clandestine removal' and cannot be charged to duty again

Tribunal condoned delay in filing appeal against order of ED as appellant-Co. took time to retrieve

FEMA : Where company took time to trace out relevant documents for filing appeal against ED order due to considerable time lag between initiations of proceedings and date of order and change of office of company, it was considered to be sufficient cause for condonation of delay in filing appeal

Compounding application had to be rejected if made after expiry of period prescribed under Kerala VA

CST & VAT : Where assessee filed application under section 8 read with rule 11 to remit compounded tax for cooked food after period prescribed, said provisions did not provide any room for statutory authority to condone delay

Non-recovery of advance from affiliates due to security scam held as genuine advance; HC allows bad-

IT: Where assessee could not recover amount advanced to associate company on account of security scam, since said event could not be foreseen, Assessing Officer was not justified in rejecting assessee's claim for write off of said amount under section 36(1)(vii) taking a view that loan was not given in ordinary course of business

Market research exp. incurred by trader was in nature of revenue exp., says ITAT

IT: Expenditure incurred on market research by a trader cannot bring into existence any capital assets; hence, it is revenue expenditure

Tribunal had rightly directed full pre-deposit of ST as assessee failed to deposit ST collected from

Service Tax : Where service tax has been collected from customers, assessee could be directed to make full pre-deposit of service tax while waiving pre-deposit of interest and penalty

HC ordered appointment of administrator to oversee that resources of Co. were used for benefit of al

CL : Where resources of respondent company had been used for benefit of majority shareholder's family and petitioner-shareholders were excluded from affairs of company, administrator was to be appointed to oversee affairs of company

TP adjustments set aside as objection of assessee on the business activity of comparables weren't ad

IT/ILT : Where assessee had not been provided with list of comparables and its objections regarding business activities of comparables had not been addressed, ALP to be redetermined

Supply of vessel on charter basis for offshore operations wasn’t ‘storage and warehousing service’

Service Tax : Supply of vessels on charter hire basis for offshore operations involving transport of crude oil and incidental storage thereof is 'Supply of Tangible Goods for Use Service'; not storage and warehousing Service

Rent paid to a depot agent under a composite service agreement would attract 194C and not sec. 194-I

IT : Where payment made to a depot agent by assessee under agency service agreement was described as rentals paid for premises and specifications were also earmarked and it was for composite services, arrangement would fall under definition of 'rent' provided under section 194C and not under section 194-I

CBEC issues clarification to facilitate implementation of new provision mandating pre-deposit

ST LAWS/EXCISE & CUSTOMS LAWS : Section 35F of The Central Excise Act, 1944, read with Section 129E of The Customs Act, 1962 - Deposit, Pending Appeal, of Duty Demanded or Penalty Levied – Clarifications on Amendments made by Finance Act, 2014 to Appeal Provisions in Customs, Central Excise and Service Tax

Refund of excess input tax couldn’t be denied merely due to existence of unaudited accounts

CST & VAT : Where assessee claimed for refund of excess input tax paid for period 2012-13, refund could not be refused on plea that assessment for year 2012-13 would have to be audited and it was only after audit of accounts excess input tax could be refunded

No deemed dividend on disbursement of advance if recipient-co. wasn’t a shareholder in lending compa

IT : Where certain companies advanced money to assessee-company in which one director of assessee was holding more than 10 per cent equity shares, since assessee itself was not shareholder of those lending companies, impugned addition made by Assessing Officer by invoking provisions of section 2(22)(e) was not sustainable

SC discusses evils of retro law; proviso to sec. 113 levying surcharge in block assessment cases hel

IT : SC discusses the evils of retrospective law while upholding the principle "that unless a contrary intention appears, a law is presumed to be prospective" but stops short of holding substantive retrospective amendments hurting tax payers as unconstitutional

In case of conflicting views of HC, decision of that HC would apply which was having jurisdiction ov

Service Tax : In case of conflicting opinions of several High Courts, decision of that High Court within whose jurisdiction issue arises viz. where taxable event occurs or jurisdictional Commissioner passes initial adjudication order, should be followed

Business loss can’t be carried forward which could be set-off with short-term capital gains in relev

IT: Addition made in respect of unsold property falling within block of assets could not be reduced while computing short-term capital gain on sold property

SEBI releases clarification on position limits for mutual funds in 10-year interest rate futures

SEBI : Position Limits for Mutual Funds in 10-Year Interest Rate Futures (IRF)

ITAT denies to accept LIBOR to determine ALP of interest; approves rate accepted by assessee in earl

IT/ILT : Where assessee filed application contending that LIBOR linked interest rate had to be applied in order to determine ALP of interest in respect of loan granted to AE, since assessee had accepted rate of 7 per cent in earlier year and that was basis for directing to adopt 7 per cent by Tribunal during relevant year as well, said direction did not require any interference

Buyer can’t challenge denial of refund claim of manufacturer as he isn’t the aggrieved party

Excise & Customs : Buyer of goods cannot be said to be 'person aggrieved' by rejection of refund claim filed by manufacturer; therefore, buyer cannot challenge said rejection in appeal before Tribunal

SC: A society registered under Kerala Co-opreative Societies Act isn't a 'Public Authority' under RT

RTI: A co-operative society registered under Kerala Co-operative Societies Act does not fall within definition of public authority under RTI Act

Sum collected for various services couldn’t be considered as inclusive of ST; CESTAT denied benefit

Service Tax : Activity of receiving goods, warehousing them, receiving dispatch orders, arranging dispatch, maintaining records of incoming shipments and deliveries, etc. amounts to Clearing and Forwarding Agents Services even if : (a) warehouse, (b) computers and software; and (c) transports are provided/arranged by client

No requirement to collect info/evidence for every year within block of 6 years to initiate sec. 153A

IT: There is no requirement under provisions of Act requiring department to collect information and evidence for each and every year for six previous years in order to initiate proceedings under section 153A

India And China Have Outgrown The West

From the heady days of "Chindia," when China and India were twinned together in the global imagination, comparisons between the two countries have taken on a more modest hue. Once united by their shared status of being giant Asian countries with booming demographies and unlimited economic potential, the two are perceived to be very different today.

India's incomplete domestic transformation, recently slowing economy and its flourishing and contentious democracy mark it as starkly different from China, which has shot ahead economically -- with a GDP of more than four times India's size -- while remaining resolutely authoritarian, under one-party Communist rule.

Despite these stark differences -- and the bitter legacy of the 1962 war between the two nations, which culminated in a decisive Chinese victory and bequeathed to both nations the world's longest unresolved border dispute -- the two nations are moving towards each other in a wary embrace.

China's new leader, President Xi Jinping, who has impressively consolidated his power in Beijing, arrives in India this week at a time when India's new prime minister, Narendra Modi, is still basking in the glow of a decisive electoral victory. The two will meet in Mr Modi's home state of Gujarat on his 64th birthday on Wednesday.

Though there have been no clashes on the frontier in decades, both countries' media tend to bristle at each other's alleged provocations. A series of irritants has continued to plague the political relationship.

Delhi is miffed by China's claim to the northeastern Indian state of Arunachal Pradesh, which Beijing calls "South Tibet", its support for Pakistan in the acrimonious geopolitics of the subcontinent, and its insistence on issuing stapled visas to Indians living in Kashmir to underscore Beijing's view that Kashmir is disputed territory. In turn, China looks askance at India having given refuge to the Dalai Lama and his followers since 1959, and his maintaining a Tibetan government in exile on Indian soil, though New Delhi fully recognizes Beijing's sovereignty over Tibet and does not allow Tibetan protestors to disrupt Chinese leaders' visits. At the same time, Mr Modi has tended to align his government with those critical of China's territorial claims in the South China and East China Seas and signaled his determination to prioritize India's relations with Japan and Australia, as well as with countries in India's immediate neighborhood.

TRADE IS TELLING

But economic relations tell a different story. Of course, China is way ahead. China started its liberalization a good decade and a half before India, shot up faster, hit double-digit growth when India was still hovering around 5 percent, and with compound growth, has put itself in a totally different league from India, continuing to grow faster from a larger base. Indian visitors to China, including then-Chief Minister Narendra Modi, emerge with acute cases of infrastructure envy, contrasting China's gleaming skyscrapers and six-lane expressways to India's own ramshackle facilities and congested roadways.

Yet bilateral trade volume has multiplied several hundredfold in the last three decades, crossing $70 billion USD by the end of 2013 from a level of only $30 million in 1992. (The trade balance is, however, skewed 2 to 1 in China's favor.) China has now overtaken the U.S. as India's largest single trading partner, and the two countries seem well on course to reach their proclaimed target of $100 billion in annual trade by 2015.

Indian information technology firms have opened offices in Shanghai and Hangzhou, and Infosys recruits Chinese staff for their headquarters in Bangalore. There are dozens of Chinese engineers working in (and learning from) Indian computer firms and engineering companies from Gurgaon to Bangalore, while Indian software engineers in Chennai and Bangalore support the Chinese telecoms equipment manufacturer Huawei.

By and large, India is good at things that China needs to improve at, notably software, where it has been unable to rival India's IT dominance; China excels at hardware and manufacturing, which India sorely lacks. So India's Mahindra and Mahindra manufactures tractors in Nanchang for export to the United States. The key operating components of Apple's iPod were invented by the Hyderabad company PortalPlayer, while the iPods themselves are manufactured in China.

Philips employs nearly 3,000 Indians at its "Innovation Campus" in Bangalore who write more than 20 percent of Philips' global software, which in turn goes to Philips' 50,000 strong workforce in China to turn into brand-name goods. China's manufacturing muscle is on display in India, with telecoms equipment maker Huawei clocking $800M in Indian sales, amounting to about 2 percent of its global revenues.

WE'VE OUTGROWN THE WESTERN WORLD ORDER

Politically too, the temperature has begun warming. India and China both see themselves as having outgrown a world order dominated by the West. They are moving beyond traditional bromides like their joint advocacy of the "Five Principles of Peaceful Coexistence," to pragmatic cooperation in the framework of the BRICS grouping. They recently came together to announce the creation of the BRICS Bank, which will be located in Shanghai and headed by an Indian.

China has supported Indian participation in the Shanghai Co-operation Organisation and India has extended China observer status is the South Asian Association for Regional Cooperation. Strikingly, in 2013, China's new Premier Li Keqiang chose India, rather than America or any European country, as the destination for his first ever official foreign visit. The Chinese Foreign Minister was also the newly-elected Modi's first official visitor, and President Xi has already had a chance to meet the new Indian Prime Minister at the BRICS summit in Brazil in July.

Neither leader will be at the U.N. climate change summit later this month, a reflection of their shared rejection of Western attempts to place the onus for global warming on developing countries rather than where it rightly belongs.

Indeed, the Chinese are sparing no effort to make the impending presidential visit a success. President Xi's gesture in turning up at Mr Modi's home town for his birthday is unusual, especially since he had already had to adjust his dates to arrive after President Pranab Mukherjee's return from a trip to Vietnam. He has also gladdened Indian hearts (never pleased to be "hyphenated" with Pakistan) by taking Islamabad off his South Asian itinerary because of the political troubles there.

A stray remark by Modi on a recent visit to Japan about some countries' expansionist inclinations, which was widely read as a criticism of China, has not been matched by China, whose Assistant Foreign Minister told reporters in Beijing that "China has never, and will not, use so-called military or other means to try and hem in India."

INVESTMENT DEALS

Against this background, significant economic gains are expected from the Xi visit. The visiting Chinese president, who is travelling with a delegation of over 100 senior business executives, including the heads of China Harbour, China Railway Construction Group and Huawei, as well as of the four biggest Chinese banks, is expected to announce some $100 billion of Chinese investment commitments over the next five years, nearly three times the $35 billion secured by Prime Minister Modi during his widely-hailed trip to Japan.

Much of this will feature investment in the new Indian industrial parks, a pet project of Mr Modi's. China will initially invest $7 billion in industrial parks in Pune (for automobile manufacturing) and Gandhinagar in Gujarat (for power equipment). There are also indications that China is also planning to set up an industrial park in Tamil Nadu for the textile sector.

Other areas of likely investment, according to Chinese diplomats in India, include the modernization of railways, with $50 billion worth of investments contemplated in improving rolling stock and running bullet and hi-speed trains in India; upgrading highways and ports; power generation, distribution and transmission; and food processing. The billions of dollars that will be needed in loans to finance Indian infrastructure projects (which will mostly take place as joint ventures with Chinese firms) will be funded by Chinese banks. Such loans, often tied to purchases from Chinese equipment manufacturers, have already relieved pressure on heavily indebted Indian companies.

There are still significant areas where progress is needed. India's complaints about the trade balance are augmented by worries about Chinese dumping and non-trade barriers to Indian investment in China. People-to-people contact is limited: though tourism, particularly of Indian pilgrims to the major Hindu holy sites in Tibet, Mount Kailash and Lake Mansarovar, can be said to be thriving -- nearly 600,000 Indians visited China for business, tourism and study in 2012, while only 140,000 Chinese returned the compliment.

Clearly, there's a long way to go before Sino-Indian relations can be described as truly close. But they're improving, and President Xi's visit is poised to be the capstone of this rising edifice.

Source:- huffingtonpost.com

Depart. can’t deviate from manner laid down under sec. 37C even if sending of order by post won’t se

Service Tax : Even if sending of order by registered post might not have been fruitful as assessee had left said premises, but, it is mandatory for revenue to comply with procedure under section 37C and try to serve order, first, as per section 37C(1)(a).

Non-filing of Form 3CA would not impose penalty when assessee had filed audit report under Companies

IT: Where assessee, a builder, filed audit report under section 224 of Companies Act, 1956, in such a case even though no separate report in Form 3CA as required under section 44AB had been filed, it would not lead to levy of penalty under section 271B

India To Import Iron Ore, Offer Market To Oversupplied Global Industry

An oversupplied global iron ore market may find some relief from an unlikely source as the country, which was the third largest exporter of the metal, turns into a big importer due to a cutback in domestic production.

The country may ship in up to 45 million tonnes over the next three years as home-grown iron ore output falls short of domestic steel production needs, an executive at an influential industry group said.

India imported just 0.37 million tonnes of the steelmaking raw material in 2013/14, government data showed. But already JSW Steel, third-largest domestic maker of the alloy, has said it will import 6 million tonnes of iron ore in 2014/15 against zero a year earlier.

"There's no option but to import to meet the shortfall. We're looking at between 10 and 15 million tonnes every fiscal year over the next three years," Basant Poddar, vice president of the Federation of Indian Mineral Industries, the only industry group for mining firms in the country, told Reuters by phone.

"The mine closures all over India, starting from Karnataka, Goa, Odisha and Jharkhand, have created a massive disruption to supply," Poddar said.

Mining in the key iron ore states of Karnataka and Goa was banned in 2011 and 2012, respectively, following a crackdown on illegal mining by the Supreme Court and the government. Several mines in top producing Odisha state and in Jharkhand too were closed this year following government-imposed restrictions on the renewal of mining licenses.

While the bans have since been lifted, delays in restarting mining operations in Goa and Karnataka and the latest mine closures in the other states have limited local iron ore supply.

The disruptions have cut India's iron ore production to 152 million tonnes in the year ended March 31, from about 218 million in 2009/10, according to the Indian Bureau of Mines.

The prospect of higher demand from the domestic industry comes at an opportune time for global iron ore miners, whose margins have been shrunk by a 40 percent slump in iron ore prices this year.Iron ore fell to $81.90 a tonne last week, its lowest since September 2009.

The bulk of India's imports may come from Australia and South Africa, said Poddar, and unlikely from Brazil where shipments are usually made in big vessels. "Indian ports are not geared to handle large vessels," he said.

But the potential import volume won't be enough to absorb the total projected global surfeit. Morgan Stanley, which sees a global surplus of 79 million tonnes this year doubling to 158 million tonnes in 2015, expects the price to drop to $70.

In addition, any relief from domestic demand may be temporary, as the shortage is due to government policy measures that could eventually be reversed.

For the present, resuming operations has been slow due to the long bureaucratic route to renew mining leases, said Poddar.

Only 22 mines out of 122 that are eligible to restart in Karnataka have resumed operations, said Poddar who owns Mineral Enterprises, which has five mines in the state that have a combined capacity of 1.2 million tonnes but have remained shut. Mines in Goa have not reopened.

In Odisha, around a third of 56 iron ore mines are still closed and in Jharkhand, the third biggest producer in the past fiscal year, 12 out of 17 mines are shut.

India was the world's third-largest iron ore exporter until higher costs along with the mining bans slashed shipments by 85 percent, or 100 million tonnes, over the past two years.

Amid the shortage in local supply, iron ore prices in the country are defying the global weakness.In Odisha, 63 per cent grade iron ore would cost about $105 a tonne, including taxes and the royalty, to export, way above the current global market price of $67-$68, said Dhruv Goel, managing partner at industry consultancy SteelMint.But miners make a profit of $15-$20 a tonne selling the same grade to local steelmakers, said Goel.

Source:- businesstoday.intoday.in

Chinese Products Hit State Industries

Gujarat's small and medium industries are anxiously waiting for Chinese president Xi Jinping's visit to the state. Considered to be the backbone of Gujarat's economy, small and medium enterprises making ceramics, garments and chemicals have lost out to China - both in Indian as well as exports markets - in a big way in recent years.

Ceramic products imported from China are making a dent in the sales of ceramics in India as import value of Chinese ceramic products into India has grown from $237 million in 2007 to $484 million in 2012, clocking compounded annual growth rate (CAGR) of 15%.

An analysis by the apex industry body, Assocham, on India's ceramic industry has revealed that with a huge share of 66% in India's total ceramic imports worth over $734 million as of 2012, China has emerged as a major supplier of ceramic products to the country, thereby adversely impacting profit margins of existing domestic producers. So much so that certain ceramic units are facing closure as they are not able to bear the ever-rising production costs.

The Chinese imports have majorly affected the ceramic industry in Morbi which produces almost 90% of the wall, floor and vitrified tiles in India. "The biggest impact is on the vitrified tiles category. The Chinese tiles are at least Rs 5 to Rs 6 per square feet cheaper than Indian tiles," said an office-bearer of Morbi Ceramic Association.

Adding to their woes is local politics in Morbi, which is hampering the restarting of coal-based gasifiers despite relief from both the Gujarat high court as well as the Supreme Court. The Gujarat high court had last year banned coal-fired gasifiers following a public interest litigation. "Given the high cost of natural gas, we cannot compete with China," he said. Even after the Gujarat high court lifted the stay on the condition that units install third-generation coal-fired gasifiers - a decision later upheld by the Supreme Court - the Gujarat government has not given necessary clearances due to pressure from local leaders.

"Earlier, there was an anti-dumping duty on Chinese tiles which was removed. Since then Chinese tiles have flooded the Indian market. We have written to the state as well as to the central government about this issue, but there has been no response yet," the office-bearer said.

The chemical and garment industries are also facing a stiff competition from Chinese products when it comes to exports. "We are unable to offer the price that China offers. It is usually 7% to 10% cheaper than our products because of which our exports suffer," said Vijay Purohit of the Gujarat Garment Manufacturers' Association. The same is the case with chemicals when it comes to exports.

Source:- timesofindia.indiatimes.com

India Gold Imports Rocket 176%

Long the top importer of gold, India fell behind China in 2013.The decline in gold consumption came after bullion import duties were pushed up tenfold – from 1% at the start of 2012 to 10% – and other rules such as mandatory re-export of 20% of imports, transaction taxes and even curbs on ETF buying stymied India's gold industry.

Business-friendly prime minister Narendra Modi's sweeping victory has raised hopes – since dashed – of relief for the gold industry that employs more than 3 million traders and shopworkers.

Despite most of the curbs on gold imports still in place, official trade data released on Monday shows a 176% rise in gold imports from $739 million to $2 billion during the month of August.

Bloomberg quotes Shubhada Rao, an economist at Yes Bank in Mumbai as saying the big jump should not set off alarm bells over the country's balance of payments:

"We can manage with monthly gold imports of about $2 billion and the jump in the August number is largely due to last year’s low base after a sudden clamp down. The jump may look alarming, but there is no reason for panic."

July, August and September are typically gold's strongest performing months as buying from Asia increases – particularly due to upcoming festivals and wedding season in India.

Despite the huge August import numbers demand – as evidenced by premiums asked by gold traders in India above the London price – does not appear as frenzied as in 2013.

Jewellers and traders are now asking for $5 an ounce over the London price, that's down from a whopping $170 an ounce a year ago when the country's import restrictions really began to bite.

Source:- mining.com

India's Export Growth Continues To Slow

India's merchandise exports grew a modest 2.35% in August, the slowest rate in five months, the Trade Ministry said Monday, raising uncertainty about the strength of the country's economic rebound.

The lackluster trade data came on the heels of slower industrial-output growth numbers reported last week. Hurt by a contraction in manufacturing, industrial production was up just 0.5% in July from a year earlier.

August exports totaled $26.95 billion, the Trade Ministry said. Imports rose 2.08% to $37.79 billion. The trade deficit was $10.83 billion, narrower than July's $12.22 billion.

Export growth seems to be gradually cooling off. Exports were up 5.2% in April, 12.4% in May, 10.22% in June and 7.33% in July.

August's sharp deceleration was driven by a decline in the export of goods such as gems and jewelry and petroleum products.India's economy grew 5.7% in the April-June quarter, its fastest pace in more than two years.

Source:- online.wsj.com

Indian Ocean Region Customs Meet On Trade Facilitation Opens

A meeting of Customs administration officials from the 19 member-countries of the Indian Ocean Rim Association (IORA) on trade facilitation got under way in Bangalore on Monday morning.

Describing it as a unique gathering, a senior official of the Central Board of Excise and Customs (CBEC) said this was the second IORA Trade Facilitation Forum. “We have participants from 19 countries… they are all Customs experts and going to talk on important topics like trade facilitation,” according to Sandeep Bhatnagar, Joint Secretary (Customs), CBEC.

The discussions over the next three days, he explained, are significant in the backdrop of the agreement on trade facilitation at the Bali Ministerial Conference of World Trade Organisation in December last. “Even otherwise, every Customs administration is interested in facilitating genuine trade,” he said, adding authorised economic cooperative programme to ensure supply chain security is also to be deliberated.

Such forums, Mr.Bhatnagar pointed, will help in bringing together countries in the Indian Ocean region since they already have lot of commonalities.

CBEC Member (Customs) Mala Srivastava inaugurated the three day workshop, which is being organised by the Board in association with the Australian Customs and Border Protection Force under the aegis of IORA for Regional Cooperation.

According to Ms.Srivastava, there was need for the Customs administration to set new standards of excellence and work together for global prosperity. Strong conclusions on enhancing trade and facilitation measures, she said, would ultimately lead to poverty alleviation and economic development. She also highlighted the need for measures that result in reducing the cost of compliance.

An official release said the IORA seeks to build and expand understanding and mutually beneficial cooperation between the member countries through a consensus based, evolutionary and non-intrusive approach. National Director of Australian Customs and Border Protection Service Jeff Buckpitt, Chief Commissioner of Customs, Bangalore, R.P.Raheja and Commissioner of Customs Sandeep Prakash participated in the inaugural session.

Source:- thehindu.com

Rupee Sees Biggest One-Day Fall In 1-1/2 Months

The rupee hit a one-month low and saw its biggest single-day decline in nearly one-and-a-half months on Monday, tracking weakness in other Asian currencies, while dollar demand from custodian banks due to the fall in the share market also hurt.

The wholesale price inflation eased to its lowest level in nearly five years in August, but the Reserve Bank of India (RBI) is likely to keep interest rates on hold later this month to prevent a revival in price pressures once the economy gains momentum.Asian currencies took a hammering on Monday and the dollar further strengthened after data out on Saturday showed China’s factory output grew at the weakest pace in nearly six years in August, and growth in other key sectors also cooled.

Caution on emerging market currencies is expected to continue as the US Federal Reserve is set to hold its policy meeting amidst concerns that it may raise interest rates earlier than previously anticipated, while Scotland is also due to hold its independence vote.

“We are seeing some kind of convergence between the rupee and other falling Asian currencies considering that the rupee has been an outlier in this space so far,” said Anindya Banerjee, a currency analyst at Kotak Securities, a brokerage in Mumbai.

“The rupee still has a lot of catching up to do here, which means that it would continue to remain under pressure until the Fed meeting provides some clarity.”

Analysts were disappointed after data last week showed that India’s industrial output growth hit a four-month low in July while inflation remained high.

The sharp fall in the core retail inflation print however was a relief for markets.The partially convertible rupee ended at 61.13/14 per dollar, after hitting 61.18, a level last seen on 13 August. It had closed at 60.65/66 on Friday.

The local currency recovered some of the losses after RBI governor Raghuram Rajan said India’s macroeconomic indicators are improving and inflation has been coming down in line with central bank’s estimates.However, most traders expect the local unit to continue to struggle against the dollar, with some pointing out that the rupee may slide to 61.70-62.00 levels if the key 61.35 level is breached.In the offshore non-deliverable forwards, the one-month contract was at 61.51 while the three-month contract was at 62.12.

Source:- livemint.com

Promotional activities by celebrities are ‘brand promotion services’; not taxable as ‘BAS’ prior to

Service Tax : When marketing or promotion of branded goods/services is by Celebrity endorsement involving promotional events being carried out by Celebrity or advertisements by Celebrity in audio visual or print media, this activity becomes brand promotion and is not taxable as 'Business Auxiliary Services' prior to 1-7-2010.

Auction purchaser wasn’t entitled to refund in respect of short delivery of land as shortfall was le

CL : Where area of land short delivered in auction was less than 5 per cent, auction purchaser was not entitled to refund of any amount with respect to land short delivered

TPO couldn’t adopt TNMM to make TP adjustment without showing that segmental accounts were manipulat

IT/ILT: Where assessee, engaged in business of rendering inbound, outbound and domestic travel services to AEs, submitted accounts of inbounds and outbounds segments separately showing that international transactions were entered into at ALP, in absence of any evidence to show that those segmental accounts were manipulated, TPO was not justified in adopting TNMM and making addition to assessee's ALP on basis of weighted margin earned by external comparables

SEBI tweaks clause 49; simplifies definition of related party, exempts specified Cos from governance

SEBI : Corporate Governance in Listed Entities - Amendment in Clause 49 of The Equity Listing Agreement

No PIL against de-recognition of Exchanges if petitioner wasn't a shareholder of any Cos listed on s

CL: Where SEBI had proposed de-recognition of Regional Stock Exchanges / Non-Operational Stock Exchanges, petitioner not being a shareholder of any companies listed on such exchanges, had no locus standi to file PIL seeking a direction to SEBI to refrain from continuing with proposed de-recognition

No input credit if supplier had confirmed non-delivery of goods even when assessee had made payments

Cenvat Credit : Even if assessee had made payments by cheque, if supplier and transporter had specifically deposed that there was no actual delivery of inputs to assessee, credit taken by assessee is liable to be reversed with penalty and extended period of limitation is available for such fraud.

Profit on sale of shares deemed as capital gains as investment in shares was made along with regular

IT : In case of a share broker earning exempted income from investment in shares, 10 per cent of such exempted income was to be attributed towards expenditure for earning of such exempted income

Exp. on building CSR capacity including related admin overheads can't exceed 5% of total CSR Exp.- M

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Corporate Social Responsibility Policy) Amendment Rules, 2014 – Amendment in Rule 4

Reassessment wasn’t based on change of opinion if dept. didn’t express any opinion on taxability dur

CST & VAT : Where Assessing Authority reopened assessment of assessee on ground that DVD and CVD players were wrongly taxed at rate of 8 per cent, since Assessing Authority did not express any opinion in assessment order with regard to taxability of above items, reassessment proceedings were not based on change of opinion

HC debars assessee from filing rectification request for second time when first request was rejecte

IT : When first rectification application was rejected by Tribunal, second rectification application on same issue is not maintainable at all

Submission could be made for first time before CCE(A) if assessee hadn’t replied to SCN and hadn’t a

Service Tax : Rule 5 of Central Excise (Appeals) Rules, 2001 debars placing of additional evidence for first time before Commissioner (Appeals); said rule does not apply in cases where no reply was filed and no hearing was attended before adjudicating authority

Exp. incurred at a place where manufacturing facilities were carried out were outside the ambit of s

IT: Expenses directly incurred in relation to manufacturing activities could not be disallowed under section 14A

Management fee paid to Danish firm for managing shipping companies wasn’t FTS under India-Denmark DT

IT/ILT: Freight income is taxable in hands of shipping companies for whom assessee was acting as representative to carry out obligation for filing of return of income as well as managing entire affairs

Prior to 1-12-2013, captive clearances were valued under Rule 4 if they had also been made to indepe

Excise & Customs : For period prior to 1-12-2013, if clearances have been made to independent buyers as well, then, clearances for captive consumption will be valued as per rule 4 (not rule 8) at transaction value to independent buyers

No winding up plea against Co. if matter as to whether disputed sum was a loan or share money was un

CL: Pending civil suit as to whether amount advanced by petitioner was loan or share application money, winding up petition was not maintainable

Indian agents promoting business of foreign Co. are exempt from ST on commission collected by them

Service tax : Services provided by an Indian commission agent to foreign principal by way of promotion of business of such foreign principal in India against commission in foreign exchange, amounts to export of service and not liable to tax

Govt. orders new penalty provisions under SEBI, SCRA and depository norms to be effective from Sept.

SEBI : Section 1 of The Securities Laws (Amendment) Act, 2014 – Enforcement of Act – Notified Date on which Sections 6 To 15, Sections 25 To 32 and Sections 41 To 47 of said Act Shall Income into Force

No reassessment to deny provision of exp. if all facts were available before AO during original asse

IT : Where all facts relating to amount taken to balance sheet as provision for project development and registration charges on sale of plot were available before Assessing Officer at time of framing of original assessment, reopening of assessment by successor Assessing Officer could not be sustianed

No denial of VCES declaration showing tax dues under sec. 73A even if earlier notice was issued unde

Service Tax : Declaration filed under Service Tax Voluntary Compliance Encouragement Scheme declaring 'tax dues' under section 73A cannot, prima facie, be rejected on ground that, for earlier/coinciding period, a notice/order was passed under section 73; this is so because earlier notice was under section 73 and not under section 73A

No penalty for setting off unabsorbed depreciation and losses against capital gains on wrong advice

IT: No penalty is to be levied under section 271(1)(c) for setting off brought forward loss and depreciation on wrong advice of counsel

Remission of sale-tax loan on prepayment of loan amount won’t be deemed as remission of liability un

IT : Where in terms of 'Madhya Pradesh Government Conversion of Amount of Deferred Tax into Loan Liability Scheme, 1989', sales-tax payable was converted into loan which was repaid on an early date, concession received on said pre-payment of loan did not amount to remission or cessation of liability so as to attract relevant provisions of Act

Economic Turnaround Where India Took The Lead

Almost all economic turnarounds in the recent past have primarily been exports-led. From China to India, a rising share of exports as a fraction of the gross domestic product (GDP) has been a key feature of every economic success story in recent decades.

But global trade data suggests Pakistan fares poorly compared to regional economies when it comes to the competitiveness of its exports in the international market.

The gap appears starker when the growth rate of Pakistan’s exports is compared with that of India.According to the World Trade Organization (WTO), Pakistan’s exports grew at an average rate of 7.7% per annum between 2003 and 2013. In contrast, the annual increase in the value of India’s exports during the same 10-year period remained 18.9%.

According to economist Atif Mian, the performance of India and Pakistan looked fairly similar until 1992. But data from 1992 onwards shows a great divergence between the two countries in terms of their exports’ competitiveness, he added.

“Since 1993, Indian and Bangladeshi exports per capita have grown 5.8 and 3.8 times higher than that of Pakistan, respectively. These are enormous differences in growth,” Mian told The Express Tribune in an interview.

The International Monetary Fund (IMF) has recently named Mian, professor of economics at Princeton University, among 25 economists under 45 ‘who are shaping the way we think about the global economy’.

“If Pakistan continues to fall behind at such a pace for another generation, my fear is that it might become a regional economic ghetto. The government needs to wake up,” he noted.

Many people argue that the widening difference in the exports per capita of India and Pakistan is a direct consequence of the economic liberalisation programme that India went through post-1992 under former finance minister Manmohan Singh.

But Mian believes this explanation is flawed. He says Pakistan had a more liberalised economy – and much earlier – than India. However, Pakistan’s exports per capita never saw that kind of a sudden increase, he adds.

In fact, Pakistan’s exports as a percentage of its GDP used to be higher than that of India. But the opposite is now true, with India’s exports as a fraction of its GDP far exceeding that of Pakistan.

Moreover, Pakistan’s exports as a fraction of the GDP tend to go down over time despite the fact that there has been a massive expansion in global trade in the last 20 years.

Mian believes boosting domestic productive capacity is the biggest challenge that Pakistan is facing today. Low exports mean the economy is struggling to produce products that are competitive in the global market, he says.

And the reason for Pakistan’s inability to compete in international trade is its lack of sound institutions, he says. “Just like individuals cannot grow and prosper without a good work ethic, countries cannot grow without good institutional foundations.

Source:- tribune.com.pk

Maneka Gandhi Expresses Concern Over India’S Beef Exports

Union Minister Maneka Gandhi on Sunday expressed concern about India being the world’s largest beef exporter and claimed that the money from illegal animal slaughter was used for perpetrating acts of terrorism.

“We are the largest beef exporters in the world and are also killing them for leather production. We are actually killing more animals than China, it is appalling!” the minister for women and child development said during a valedictory lecture at the India for Animals conference in Jaipur. Quoting a report submitted to Uttar Pradesh Police four years ago, Gandhi, who is also a noted animal rights activist and environmentalist, claimed that the money earned through illegal animal slaughtering was going into terrorism.

“It is going into terrorism, it is going into bomb making. It is going into killing us. Why we are allowing this? It is a trade of Indians. Do not blame a particular community for this,” she claimed. Gandhi said while members of one community sell its livestock, another slaughters it in their slaughter houses and asked people not to link animal slaughter to a particular religion or community.

India is illegally exporting beef to Bangladesh and that country claims of exporting about 160,000 tonnes of beef. “But as a matter of fact they (Bangladesh) do not own a single cow,” she said. The minister called on non-governmental organizations (NGOs), volunteers and civil society to join the ‘save animals movement´ and urged them to set up informer systems to sound an alarm to prevent such trade.

“Deer’s meat is available at many places in Rajasthan, even in Dhani (hutments)... I get such information while sitting in Delhi. Every animal organ... is illegally sold. Over 25,000 websites are full of the illegal sale of animal organs,” she said. On a report published during the previous United Progfressive Alliance (UPA) government’s regime stating that 80% of milk in the country was “adulterated,” Gandhi lamented, “we are drinking poison”.

She asked NGOs and volunteers working for the protection of animals to study the forest and wildlife Acts properly and try to inform the municipal authorities about any animal cruelty. Dissection of animals in school and college education has also stopped, she noted, adding the Medical Council of India is also considering this ban.

Cosmetic research and animal experimentation needs to be contained in the growing Indian culture, the Union minister said. Over 200 delegates participated in the two-day-long conference organised by the Federation of Indian Animal Protection Organisations and its associates.

Source:- livemint.com

Manufacturing and trading segment of vehicles could be combined for TP analysis as both segments wer

IT/ILT : Where assessee was engaged in manufacturing and selling of vehicles, in view of fact that both segments were interlinked, a combined approach was to be adopted and since in terms of said approach profit margin earned by assessee was within premissible range of plus/minus five per cent of arithmatic mean margin earned by comparables, adjustment made to assessee's ALP was to be set aside

No denial of benefit of GTA abatement when input credit had been reversed alongwith interest

Service Tax : Where input service credit has been reversed with interest, benefit of abatement in respect of Goods Transport Agency's Services cannot be denied, as said reversal with interest would amount to non-taking of credit, thereby, satisfying conditions of abatement Notification

CCI orders investigation against 'ICAI' as it was creating entry barriers to outsiders providing CPE

Competition Law: Investigation is to be conducted against Institute of Chartered Accountants of India for abuse of its dominant position in creating entry barrier to outsiders in providing CPE seminars

Plastic Industry Working On Negative List To Curb Imports Under Fta

The plastic industry is working with the Government to prepare a negative list that would restrict duty-free imports from countries that have free trade agreement with India.

The initiative comes after the industry appraised Ananth Kumar, Union Minister for Chemicals and Fertilisers, on the perils of large scale finished plastic products imports into the country.

Speaking to Business Line, Raju Desai, Chairman, PlastiVision India and past-President of All India Plastic Manufacturers Association, said this is the first time ever a Union Minister along with his secretaries met representatives of the industry to understand its grievances and directed it to submit a list of demand in 10 days.

It is a pity that India, which exports 2.5 million tonnes of polymers (a key raw material for making plastic products), is a major importer of finished products from other countries, he said.

Import duty revision

The industry wants the Government to double import duty on finished plastic products to 15 per cent. Unfortunately, the export duty on polymers and import duty on finished products are pegged at the same level of 7.5 per cent, he said.

To top it all, he said, plastic products are being dumped duty-free from countries such as Thailand, Vietnam, Singapore and Malaysia that have signed free trade agreement with India.

Upgradation fund

The industry has also sought technology upgradation fund of ?20,000 crore for five years.With an additional capacity of one million tonnes of polymers going on stream in next one year, the upgradation fund will help the industry focus on value added finished products.

“The fund would not only restrict export of energy-intensive polymers but also bring down import of finished plastic products,” said Desai.

Source:- thehindubusinessline.com

Ap Makes Red Sanders Sale Attractive To Foreign Buyers

The Andhra Pradesh government has introduced multiple safeguards in favour of the prospective buyers of red sanders wood while revising the auction schedule aimed at enhancing the foreign participation to get maximum returns.

As many as 140 overseas buyers, including 109 people from China, besides 275 Indian visitors had so far made a physical inspection of the red sanders lots located at various depots of the forest department in the state, according to forest department authorities.

“The response from overseas buyers exceeded all our expectations. During the 2008 sale, there were only handful of foreign buyers,” said PK Jha, additional principal chief conservator of forests, on Saturday while explaining the last minute changes related to the sale process of 4,160 tonnes of the wood in log form.

According to Jha, the government has decided to conduct the e-tendering-cum-e-auction process from October 10-17, instead of September 19-26 as the Chinese embassy had requested for a 15-day window at the end the road shows for the participation of Chinese nationals.

The government agencies will now take the full responsibility of delivering the red sanders consignment up to the loading point from any port along with police security to every successful bidder and will take all the statutory permissions on their behalf. The government will pay six per cent interest on the money paid towards the purchase of red sanders in case the sale process is not completed in three months.

The names of the bidders will only remain with MSTC Limited, which will conduct the sale process, while the state government will approve the successful bids within a week on receipt of the information from the central government’s trading agency. These safeguards were introduced to address some of the apprehensions expressed by the overseas buyers during their interactions with the government authorities, according to AV Joseph, chief principal conservator of forests.

The state forest officials are leaving for China on Monday to conduct road shows at Xian You and Beijing and then to Tokyo in Japan before returning to India. China is the biggest importer of red sanders. The authorities are expecting to get a price in the range of Rs 20-40 lakh per tonne depending on the grade.

The international agencies had given one time exemption to India for sale of this protected plant species, which is being used for medicinal and other purposes in China and other countries. Of this, AP was given a quota of over 8,000 tonne. The Director General Foreign Trade (DGFT) has allowed the state government to sell half of this quantity in the first phase.

Source:- business-standard.com

Australian Customs For Closer Ties With Indian Customs Agency

Australia and India have agreed to an annual cycle of joint working group to promote closer cooperation between the customs agencies of the two countries.

The joint working group mechanism will focus on sharing of technical expertise, people exchange and information exchange, the Chief Executive of Australian Customs and Border Protection, Mike Puzzello, said.

Plans are afoot to move from a transaction-by-transaction-based approach to information sharing to a more institutionalised arrangement, Puzzello told Business Line in an interview here.

Puzzello, who was in the apital for the inaugural meeting of the Joint Working Group, said both sides will work towards rapid dissemination of information if not real time information exchange.

Asked to comment on the current level of cooperation between the customs agencies of the two counties, he said it was good.

"It can be much better now that the Prime Ministers of both the countries have set very ambitious goals and targets to achieve."

Besides the bilateral talks with Central Board of Excise and Customs (CBEC) Chairperson, JM Shanthi Sundharam, Puzzello also met Director General of Narcotics Control Board and Indian Coast Guard.

In his meetings with Indian counterparts, Puzzello discussed regional security issues not just in Indian ocean but across the broader Asia Pacific region.

"Australia and India should think as to how their bilateral partnership can be used to drive regional leadership."

While India was the past Chair of Indian Ocean Regional Association, Australia is the current Chair.

"One of the consistent discussion points was how do we work together across the Indian ocean region to faciltate legitimate trade and travel and work against smuglers, criminals and terrorists," Puzzello said.

Australia intends to investigate the Indian Authorised Economic Operators (AEO) programme put in place by customs authorities here.

This will help Australia in rolling out its Trusted, Tried Out Programme--equivalent of AEO--from, say July 1, 2016.

AEO programme is now the preferred model for customs collaboration around the world.

The biggest benefit is dramatic reduction in paperwork for companies and cutting down of red tape, Puzzello said.

He also said mutual recognition of each other's programme was also a distinct possibility in the coming years.

Source :- thehindubusinessline.com

Rupee Weakens Past 61.07 Per Dollar

The Indian rupee weakened past the 61 mark against the dollar in morning trade on Monday, tracking weak Asian currencies and ahead of Wholesale Price Index (WPI)-based inflation data for August.

The government will release WPI inflation data later in the day on Monday. Bloomberg expects WPI inflation will be 4.33% for August as compared with 5.19% in July.

The local unit opened at 60.93 per dollar and soon touched a intra-day low of 61.07—a level last seen on 14 August. At 9.41am, the home currency was trading at 61.03, down 0.60% from its previous close of 60.66. India’s benchmark index, Sensex, was trading at 26,853 points on BSE, down 0.8%.

Most of the Asian currencies were trading lower. The Indonesian rupiah was trading down 0.66%, Malaysian ringgit 0.38%, Philippines peso 0.24%, Singapore dollar 0.19%, South Korean won 0.15%, China offshore 0.08% and Thai baht 0.07%.

The yield on India’s 10-year benchmark bond was trading at 8.489%, compared with its Friday’s close of 8.503%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has gained 1.88%, while foreign institutional investors have bought $14.10 billion from local equity markets.The dollar index, which measures the US currency’s strength against major currencies, was trading at 84.177, down 0.07% from the previous close of 84.240.

A US Federal Reserve paper released on 8 September showed investors underestimated the speed at which the Fed might raise interest rates. That raised concerns the US central bank could signal an earlier-than-expected rate hike at its next policy meeting on 16-17 September.

Any decision by the Fed to raise rates, which have been held near zero since December 2008, will have implications for India, as it could lead to capital outflows, weakening the rupee and inflating costs of imported commodities, Reuters reported.

On Friday, the government issued Index of Industrial Production (IIP) and Consumer Price Index (CPI)-based inflation data. IIP rose 0.5% in July as compared with 3.9% in the previous month, the slowest in four months. Data released by the statistics office showed CPI inflation slowed to 7.8% in August from nearly 7.96% in the previous month.

Source:- livemint.com

Commissioner (A) had to determine tax demand while setting aside order dropping demand proposed in S

Service Tax : Where Commissioner (Appeals) sets aside adjudication order dropping demand proposed in show-cause notice, Commissioner (Appeals) must also pass order determining demand payable by assessee.

No penalty for setting off unabsorbed depreciation and losses against capital gains on wrong advice

IT: No penalty is to be levied under section 271(1)(c) for setting off brought forward loss and depreciation on wrong advice of counsel

Interest couldn’t be demanded on belated payment of additional sales tax under Tamil Nadu Additional

CST & VAT : Where assessee paid additional sales tax, as provided under Tamil Nadu Additional Sales Tax Act, 1970, belatedly and thereupon Assessing Authority levied interest upon assessee under section 24(3) of Tamil Nadu General Sales Tax Act, 1959, interest could not be demanded, as there was no substantive provision in 1970 Act itself

Supreme Court allows revenue to withdraw SLP with a liberty to file review petition before High Cour

IT : Supreme Court could allow revenue to withdraw special leave petition filed before it with liberty to file review petition before High Court

Activity of joining rail sections at railway site would not be covered under ‘Business Auxiliary Ser

Service Tax : Activity of joining rail sections at railways site via thermite welding process does not amount to 'production of processing of goods', as it does not result in deliverable goods to railways, hence, it is not covered under Business Auxiliary Service

Corpus donations of private religious trust weren’t taxable; ITAT denies to interfere with order of

IT : Where Commissioner (Appeals) relying upon three decisions of different Benches of Tribunal, accepted assessee's claim that donation received from 'B' was towards corpus of trust, in view of fact that facts in cases relied upon were identical to facts involved in assessee's case, impugned order did not require any interference

Sum paid for importing service manuals which contained instructions for usage of equipment wasn't ro

IT/ILT : Where assessee, in course of business of importing and selling of visual and information technology equipments like projectors, LCD cables, projector lamps etc. within India, also imported manuals and software which contained operating and servicing instructions for use of those equipments, since said service manuals were not protected by any licence or copyright and they could be used by anybody who purchased them without any restriction on right to transfer or usage, it was a case of

While following its earlier order ITAT shall indicate issue dealt in it and date of previous judgmen

IT/ILT : Where any order passed by Tribunal in prior assessment years is followed for successive years in relation to same assessee, then, reference to order must be correctly denoted

Department couldn’t levy personal penalty on employees when penalty on Co. was already set aside

Excise & Customs : Where penalty levied on company has been set aside on ground that there is not even prima facie case of fraud, collusion, evasion, etc., personal penalty levied on manager/authorised signatory cannot be sustained

All parties to suit were to be referred to single Arbitral Tribunal if an arbitration agreement exis

Arbitration Act: Where all parties to suit were partners in three partnership firms and, in between them arbitration agreements existed, all parties were to be referred to a single Arbitral Tribunal

Builder undertaking development agreements through society was liable to ST under real estate Agent’

Service Tax : Where a builder : (a) forms society to buy land in its name and finances said purchase by extending loan to society; (b) sells building units in name of society thereby society collecting sale proceeds; and (c) recovers cost of construction and other charges, etc. from society; builder would be regarded as providing 'construction/real estate agent' services to society and liable to service tax

Exp. on non-compete fees is in nature of capital exp.; eligible for depreciation, rules HC

IT : Expenditure incurred for acquiring non-compete right is capital in nature entitled to depreciation under section 32(1)(ii)