Chairperson and other members of CCI to be governed by provisions of 'New Pension Scheme': MCA

COMPETITION LAWS/INDIAN ACTS & RULES : Competition Commission of India (Salary, Allowances and Other Terms and Conditions of Service of Chairperson and Other Members) Rules, 2003 – Substitution of Rule 4

Assessee not entitled to interest on refund of excess self-assessment tax paid by him, rules Delhi H

IT : Refund of excess self-assessment paid by assessee would not be eligible for interest under section 244A as the provisions of section 244A would not apply thereto

Pre-deposit reduced as assessee had raised arguable points for commencement of production

Excise & Customs : High Court reduced pre-deposit in a case where assessee availed area based exemption claiming commencement of commercial production by 31-3-2010 and department denied same on ground that machinery essential for commercial production and electricity connection was obtained on 31-3-2010 only

Purchase of technical know-how couldn't be taxed as royalty, says ITAT

IT/ILT : Purchase of technical know-how could not be taxed as royalty and, therefore, provisions of section 195 were not applicable

IRDA notifies norms on registration of insurance marketing firms

INSURANCE/INDIAN ACTS & RULES : Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) Regulations, 2015

Govt. releases press note reviewing FDI policy in insurance sector

FDI/FEMA/ILT : Consolidated FDI Policy Circular 2014 – Review of Fdi Policy on Insurance Sector – Amendment in Paragraph 6.2.17.7

Feb Iran Oil Imports Fall To Lowest Since July 2013

India slashed its Iranian oil imports in February to a 1-1/2-year low to keep annual volumes from Tehran near the previous fiscal year's levels and within the limits allowed under a deal aimed at curtailing the OPEC nation's nuclear programme.

India, Iran's top client after China, shipped in about 102,200 barrels per day (bpd) of crude and condensate from Tehran in February, the lowest since July 2013, and down 63 percent from January and 62 percent from a year ago, according to tanker arrival data from trade sources and ship tracking services on the Thomson Reuters terminal.

The cuts follow smaller but still sharp reductions in January. The two months of lower shipments came after New Delhi instructed Mangalore Refinery and Petrochemicals Ltd, Essar Oil and Indian Oil Corp to "virtually halt" Iranian oil imports in February-March.

Refiners in India had raised imports during April-December - the first nine months of this fiscal year - by more than 40 percent, leading U.S. authorities to raise an alarm with India's foreign ministry ahead of President Barack Obama's visit to New Delhi in January, a source involved in the talks said.

New Delhi wants to keep its average oil imports from Iran at 210,000-220,000 bpd or about 11 million tonnes in the year to March 31, 2015, to meet the terms of a temporary deal that asks buyer nations to retain purchases from Tehran at 2013 levels.

The deal brokered by six world powers and Iran in November 2013 eased some sanctions on Tehran in exchange for curbs to the Islamic republic's nuclear programme, capping its oil exports at around 1 million-1.1 million bpd.

The powers - the United States, Russia, China, Britain, France and Germany - are now working with Iran towards a final agreement on sanctions and its disputed uranium enrichment activities, aiming to reach a political understanding by the end of March and a lasting agreement by a June 30 deadline. Two earlier deadlines have been missed.

The West is worried that Iran's nuclear activities are aimed at making a weapon. Tehran says its uranium enrichment programme is only for power generation.

Over April-February India's oil imports from Iran averaged about 240,000 bpd, or nearly 11 million tonnes, leaving little room for further imports in March.

The April-February imports from Iran were up 16 percent compared with 206,800 bpd imported in the same period of the previous fiscal year, the data showed.

"So far there are no cargoes booked from Iran or Dalian in China for voyage to India (for March arrivals)," a trade source said. Iran has leased oil storage at Dalian in China from which it can supply regional clients.

MRPL had to buy additional oil from Kuwait and Saudi Arabia for February and March to make up for the reduced Iranian oil imports, said an industry source.

MRPL has also booked Iraq's Basra light for March loading from spot markets to replace crude from Iran. MRPL's managing director H. Kumar declined to comment on any additional purchases from Kuwait and Saudi Arabia.

Source:reuters.com

India Raises Metallurgical Coke Import Tax To 5% From 2.5%

India has hiked its customs tax on metallurgical coke to 5% from 2.5% starting April 1 this year, a move that could help domestic coke producers cope with heavy competition from cheaper Chinese imports.

The import duty on iron and steel will also be increased to 15% from 10%, finance minister Arun Jaitley said during the country's Union Budget 2015-2016 speech on Saturday.

India imported 3.69 million mt of coke from January to November 2014, according to data provider GTIS, an increase of 10.6% when compared to the previous year.

This is despite the imposition of the 2.5% import duty in July 2014 under the previous government's budget. China is the biggest supplier of metallurgical coke to India, accounting for 2.01 million mt, or 54% of the market share in 2014. It is the largest shipper of met coke in the world, exporting 8.6 million mt in 2014. Market participants gave a mixed verdict to the doubling of the import duty.

The import tax rise -- amounting to an additional charge of $4-5/mt under current spot pricing -- will increase the competitiveness of domestic coke versus imports, according to one merchant coke producer, estimating domestic coke with 64/62% CSR and 12.5% ash to be tradable at Rupees 12,000- 12,500/mt ex-works east India.

However, he said the marginal rise in steel import duties will not be enough to lift poor downstream steel demand. Although the move might aid the merchant coke producers, it only serves to increase the raw materials costs for the overall steel industry, according to one steelmaker in east India.

"The merchant coke plants will welcome this, but not steelmakers who need lower input costs to compete with all the cheap Chinese steel coming in," the mill source said, adding that he was disappointed that the current 2.5% import tax -- imposed under the previous year's budget -- wasn't removed.

An international met coke exporter appeared to be unfazed by the news. "Chinese coke prices are still falling, so I still think that Chinese coke will still be competitive to India despite the tax," the trading source said.

The source was confident that Chinese coke still had an advantage when compared to Indian coke due to price, and better quality such as lower phosphorous content. "Chinese imported coke is still workable," the trader said.

India is the world's 7th largest producer of met coke, at 10 million mt, estimated one large Indian cokemaker. It was the top seaborne importer of Chinese coke in 2014.

Source:platts.com

Iron Ore Imports Jump Multi-Fold To 5.63 Mt In April-November, Fy15

Iron ore imports have increased sharply to 5.63 million tonnes in 2014-15 till November as against 0.37 million tonnes in previous financial year, the government said today.

"The import of iron ore has increased from 0.37 million tonnes (MT) in year 2013-14 to 5.63 MT in the year 2014-15 (April-November)," Minister of State for Steel and Mines Vishnu Deo Sai said in a reply to the Lok Sabha.

The minister further said there is no acute shortage of raw material like iron ore. However, there are regional shortages of iron ore due to Supreme Court's decisions regarding lease renewal in Goa and Odisha and cancellation of mining leases in Karnataka.

"Coking coal which is used in steel making is largely imported into India due to its non-availability," the minister said. Iron ore imports in 2012-13 were at 3.05 MT while in the previous 2011-12 year imports were 0.97 MT, the minister said.

He further said that as per the report of the Working Group on Steel for the 12th Five Year Plan for 2016-17, the iron ore requirement is 206.2 MT for crude steel production capacity of 125.9 MT.

At present 21 per cent of crude steel production is being done by public sector and 79 per cent of crude steel production is being done by private sector.

Source:economictimes.indiatimes.com

RBI prohibits citizens of Macau and Hong Kong from acquiring/transferring immovable properties in In

FEMA/ILT/INDIAN ACTS & RULES : FEM (Acquisition and Transfer of Immovable Property in India) (Amendment) Regulations, 2015 – Substitution of Regulation 7

Customs Revenue Shrinks As Import Of Fresh Items From India Decreases By 70Pc

The import of fresh items like tomatoes, ginger and garlic form India via Wagha border has decreased by 70 percent. Pakistan Customs collects revenue on the import of fresh items, which will now decrease due to the less imports.

An official said that the decline in import of fresh items was due to the season, as the local production will increase during these days, which will be enough for domestic needs.

He added that import of fresh items will increase again in July. He said that less imports will result in less revenue for the Pakistan Customs, as it collects regulatory duty, sales tax and income tax on imported items.

He said almost 15 to 20 trucks carrying fresh items are entering Pakistan from India on a daily basis, while almost 120 trucks used to enter earlier during the routine trade.

Source:customstoday.com.pk

Aqua Aquaria 2015: India’S Seafood Exports Up 4.87 Per Cent During April 15 To Jan 15

India’s seafood exports have recorded an increase of 4.87 per cent at 875,791 tonnes during April 2014 to January 2015. Exports in dollar terms were up by 11.84 per cent to $4.72 billion, as compared to $4.22 billion.

During the same period last year, seafood exports were recorded at 835,125 tonnes, the Marine Products Export Development Authority (MPEDA) said in a statement released at Aqua Aquaria 2015. MPEDA attributed the growth to increase production and export of L.Vannamei shrimps.

Frozen shrimps continued as principle item in exports with 17.43 per cent growth at 300,147 tonnes, as compared to 255,603 tonnes exported in the same period last year.

The increase in frozen shrimps was due to increased and export of cultured L.Vannamei shrimps. About 85 per cent of L.Vannamei shrimps are exported from Andhra Pradesh.

Export of frozen cuttle fish has also shown tremendous growth with 19.67 per cent growth at 69,966 tonnes, against 58,465 tonnes exported during the same period last year.

However, frozen fish export decrease by 3.2 per cent at 268,922 tonnes, as compared to 277,824 tonnes exported during April 2013 to January 2014.

US was the biggest market with 26.42 per cent share, followed by South East Asia with 25.69 per cent, European Union with 20.77 per cent, Japan with 8.97 per cent, other countires 8.52 per cent, middle east with 5.80 per cent and China with 3.84 per cent.

Export to US has increased by 10.64 per cent and was the biggest market for Indian cultured shrimps with 42.09 per cent. The share of L.Vannamei shrimps to South East Asian countries was about 16.48 per cent and European union was 18.11 per cent.

Aqua Aquaria 2015, a biennial international aquaculture event, was organised in Vijayawada, Andhra Pradesh from February 20 to 22, 2015 by MPEDA.

Source:thefishsite.com

Union Budget Aims At Structural Changes With Focus On Infra: Fieo

Apex exporters body, Federation of Indian Export Organisations (FIEO) while commenting on the Union Budget 2015-16, said that the Budget has aimed at structural changes in Indian economy focussing on infrastructure, tourism, manufacturing particularly micro, small and medium enterprise (MSME), ease of doing business, and curbing black money.

A firm date of GST and move towards it by raising the service tax from 12 percent to 14 percent is the most notable feature of the budget which will also help exports and may give an additional 1-2 percent GDP push to economy.

"Micro Units Development Refinance Agency (MUDRA) Bank, with a corpus of Rs 20,000 Crores, and credit guarantee corpus of Rs 3,000 crores and Trade Receivables discounting System (TReDS) for facilitating financing of trade receivables of MSMEs will address the liquidity problem of small business said," President, Federation of Indian Export Organisations (FIEO), M Rafeeque Ahmed said in a press release on Saturday. However, FIEO Chief complimented the Finance Minister for rightly focussing on infrastructure.

Establishment of National Investment and Infrastructure Fund (NIIF) with an annual flow of 20,000 Crores, Tax free infrastructure bonds for the projects in the rail, road and irrigation sectors, Corporatisation of Ports in public sector to attract investment and leverage the huge land resources and 5 new Ultra Mega Power Projects, each of 4000 MW, in the Plug-and-Play mode will help manufacturing and exports.

Reduction of customs duty and special additional duty on some of key inputs, increase in availing of CENVAT Credit from 6 to 12 months, Online excise and service tax registration in 48 hrs and exemption of service tax on transportation of exports goods from factory to land customs station will add to competitiveness of exports said Ahmed.

However, President FIEO said that he expected reduction, if not abolition of MAT and DDT for SEZ Units, introduction of interest subvention for exports and an announcement of reduction in exports and imports documents in the Budget but hoped that such matters would be looked into shortly before passing of the Budget.

Source:smetimes.in

Budget 2015: Smuggling Of Gold Will Continue If Fm Arun Jaitley's Scheme Fails, Experts Say

Entry of gold through the illegal route will continue if Finance Minister Arun Jaitley's gold monetisation scheme fails to enthuse Indians to unlock their household gold, experts say. It is estimated that Indian households hold nearly 20,000 tonnes of the yellow metal.

Gold import attracts 10% duty and despite several representations by the industry, Jaitley did not reduce it in the budget announced on Saturday, raising fears that unofficial gold supply will increase in the market.

"The FM has announced a slew of measures to curb black money in India, yet he has ignored one of the biggest issues of smuggling of gold into the country. Unless the import duty is lowered, the unofficial route will thrive and even black money may find a way into the country in the form of gold," said Mehul Choksi, chairman of Gitanjali group.

According to the World Gold Council, nearly 200 tonnes of gold entered India in 2014 through the illegal route. The landed cost of "official" gold has increased by 20% in the last one year compared with unofficial gold, as the premium went up due to strict import norms, gold traders said. "The impact of this " unofficial" supply of gold is valued at about $10 billion, leading to a loss in foreign exchange inflow of a similar amount and a loss in revenue of over $1 billion on account of customs duty," Choksi said.

Smuggling of gold and alleged entry of black money in the form of gold can only come down if India can reduce its dependence on imported gold. The FM's gold monetisation scheme is a step in that direction. Gold traders says that if the scheme is attractive, Indians might respond favourably. "We are waiting for the details of the scheme," said Haresh Soni, chairman, All India Gem & Jewellery Trade Federation.

The country generally imports 850-950 tonnes of gold every year. Earlier, the industry has proposed to the government that as part of the gold monetisation scheme, a bank account would have to be opened by the retail customer. Gold can be deposited for a maximum tenure of three years and the rate of interest will be tentative, depending upon the prevailing interest rate. When mature, the interest is paid not in rupees, but in gold, and the investor has more gold in his account.

Banks can lend this gold to jewellers or deposit it with the Reserve Bank of India that will free rupee liquidity for them. The industry feels that the introduction of Indian-made gold coins is a move in the right direction. "It is not yet clear whether the government will mint these coins or not. We are waiting for clarification from government," said Bachhraj Bamalwa, director, Nemichand Bamalwa & Sons.

Source:economictimes.indiatimes.com

Rupee Marginally Down At 61.88 Per Dollar; Bond Yield Inches Up

The rupee was marginally down against the US dollar in afternoon trading on Monday as the greenback strengthened against major global peers in reaction to the interest rate cut by China on the weekend.

Dollar demand from state-owned banks, most likely on behalf of the Reserve Bank of India (RBI), also kept the rupee under pressure.

At 2.30pm the Indian currency was trading at 61.8825 per dollar, down 0.07% from its previous close of 61.83 per dollar. It touched a low of 61.95 per dollar on Monday.

“The dollar’s strength has been the main reason for the rupee’s weakness. But there are also inflows in the market which are being absorbed by state-owned banks,” said a dealer with a US bank.

The dollar index, which measures the US currency’s strength against a basket of currencies, touched 95.50 on Monday, its highest level since September 2003, as an interest rate cut by China on Saturday put that country’s slow economic recovery under the spotlight. The resultant weakness in other Asian currencies also affected the rupee.

The yield on the 10-year bond inched up to 7.76% from Friday’s close of 7.72% in reaction to Saturday’s budget announcement which increased the fiscal deficit target to 3.9% of gross domestic product (GDP) against market estimates of 3.6% to 3.8% of GDP.

“Yields have inched up but there is still widespread expectations that the RBI (Reserve Bank of India) will cut rates further in April which is why yields have not taken a tumble,” said the dealer quoted above.

Bond yields are likely to inch up after finance minister Arun Jaitley on Saturday said he will achieve the fiscal deficit target of 3% by 2017-18, a year later than schedule, citing an increase in public spending required to support economic growth.

Source:livemint.com

SEBI requires completion of 5 years of service by its female employees to be eligible for 'hardship

SEBI/INDIAN ACTS & RULES : SEBI (Employees' Service) (Amendment) Regulations, 2015 – Substitution of Regulation 36A

Assessee must indicate reasons for seeking cross-examination, says Ahmedabad CESTAT

Excise & Customs : Having not justified or indicated reason for seeking cross-examination, assessee cannot claim that there is a violation of principles of natural justice.

HC allows assessee to produce docs for input credit before AO as he failed to produce docs during as

CST & VAT: Where assessee had failed to produce documents for claiming input tax benefit during assessment, High Court permitted assessee to produce Form VAT C-4 and tax invoices before assessing authority

Demand can't be raised alleging clandestine removal of goods when duty is paid on annual production

Excise & Customs : Where show-cause notice is issued on ground that assessee is covered by production capacity based duty under section 3A, provisions of section 3 read with section 11A cannot be invoked to demand duty alleging clandestine removal

Govt. unveils booklet on "Investment opportunities in India"

FDI : Investment Opportunities in India

Evasion penalty can’t be reduce below the limit prescribed under sec. 11AC

Excise & Customs : Penalty under section 11AC of Central Excise Act, 1944 is a mandatory penalty and same cannot be reduced/waived below limit fixed by said section, even if duty is paid immediately on receipt of notice

Sale of unspecified goods in execution of work contract was chargeable to higher rate under West Ben

CST & VAT: West Bengal VAT - Where assessee was engaged in the business of executing works contract, since she had not sold in execution of works contract any goods specified in section 14 of Central Act, she was liable to pay tax at rate of 12.5 per cent on taxable contractual transfer price as per section 18(1)(b)

ITAT rightly determined market value of land on 1-4-1981 after considering doc of 1984 in respect of

IT: Where Tribunal determined fair market value of land inherited by assessee before 1-4-1981 by considering document of 1984 in respect of nearby land and after allowing certain deductions, no interference was required with such determination

ITAT quashed sec. 153C block proceedings as AO didn't record satisfaction that seized docs belonged

IT : Where Assessing Officer of 'B', 'P' and 'MB' did not record any satisfaction that some money, bullion, jewellery or books of account or other documents found from these persons belonged to assessee, initiation of proceedings under section 153C on assessee was void ab initio

Mere non-registration of asset in name of assessee doesn’t lead to denial of deprecation claim there

IT: Where certain assets were already transferred to assessee-society, assessee's claim for depreciation could not be rejected merely because those properties had not yet been registered in name of assessee

SC: Award could be modified if arbitrator failed to draw inference from facts resulting in miscarria

CL : Where arbitrators failed to appreciate and draw inferences that logically flow from proved facts resulting in miscarriage of justice, arbitral award will be open to challenge and may be cast away or modified

Interest on sums lent to foreign AE is to be benchmarked at LIBOR and not at domestic prime lending

IT/ILT : While benchmarking international transactions where assessee had advanced money to its AE and charged interest, international rates fixed being LIBOR + rate would be applicable and not domestic prime lending rates

AO couldn’t make addition of deemed dividend when assessee wasn’t a shareholder of lending Co.

IT: Where assessee itself was not shareholder of lending company, addition made by Assessing Officer by invoking provisions of section 2(22)(e) was not sustainable

No Wheat Export From Government Stocks: Food Secy

The government will not export its surplus wheat stock this year and will continue to offload the grain in the domestic market despite estimates of bumper wheat production.

Private traders can export wheat under the open general licence (OGL) scheme, Food Secretary Sudhir Kumar told PTI.

After lifting of ban on wheat export in September 2011, the government has exported nearly 6 million tonnes of wheat from FCI godowns during the 2012-13 and 2013-14 fiscals. However, there have been no shipments so far this financial year.

"We have no plans to export wheat this year. There will be no export from the official channel. Private traders can do it under the open general licence (OGL) scheme," Kumar said.

"We will offload our stocks in the domestic market and not in the international market even if it is viable," he added.

The government is already sitting on a wheat stock of 25 million tonnes as on January 1, much higher than the actual requirement of 13.8 million tonnes, as per the FCI data.

Moreover, the wheat production is estimated at 95.76 million tonnes in 2014-15 crop year (July-June) against 95.85 million tonnes in the last year.

The crop is ready for harvesting from April onwards. The government aims to procure 30 million tonnes of wheat this year to meet requirement of ration shops, further putting pressure on stocks.

Noting that the government has already started offloading surplus wheat in the domestic market under the open market sale scheme, Kumar said that the Food Corporation of India (FCI) -- the nodal agency for foodgrains procurement and distribution -- has sold about 3.5 million tonnes so far. Wheat is being sold under OMSS to boost domestic supply and check prices.

Asked if it has fixed a quantitative limit for wheat sale under OMSS, Kumar said, "This time, there is no quantity fixed. There is an open offer to sell anything above the buffer norm. Earlier, we used to take approval for fixed quantity, but there is no such system now."

At present, the wheat grown in the 2013-14 crop year is lying with FCI. "They have started offloading and have sold about 3.5 million tonnes so far this year." he added.

On poor response to OMSS sale in the previous years, the Secretary said, "We have sold about 6 million tonnes each in the last two years. It is not a small quantity, could have been more. But it depends on the buyer." India is the world's second largest producer of wheat.

Source:economictimes.indiatimes.com

HC orders deposit of 10% of disputed demand to avoid undue hardship on assessee

CST & VAT: U.P. VAT - Where Tribunal had stayed 80 per cent of disputed amount of tax, order of Tribunal was modified by directing assessee to deposit 10 per cent of disputed tax and to furnish security for 90 per cent of balance tax

AO couldn’t make addition of unaccounted stock when he failed to point out defects in book of accoun

IT : Where Assessing Officer could not point out any defect in books of account maintained by assessee, he was not supposed to make addition of unaccounted closing stock being difference in stock on mathematical calculation

Coal Block Auctions Will Lead To Level Playing Field For All

Chandra Shekhar Verma, chairman and managing director, Steel Authority of India (SAIL), talks about steering the company in the current tough times, when local as well as global demand is depressed. He shares his action plan for the next 10 years and talks about his five years at the helm. Excerpts:

Globally, steel production growth has been tepid with only 2% increase in the calendar year against 3.5% in the corresponding period a year ago. There is surplus capacity of about 23-24% as utilisation is low. Demand in India is better than what it is globally. In April-December, production has grown at 5.3%. However, there has been a surge in imports — to 7.4 million tonne (mt) from 4.6 mt in the first three quarters of the current fiscal. Due to the SIPA agreement, there is a lot of import from Japan and Korea.

After consumption peaked in China, the country has been exporting steel to India as well. The depreciation in the rouble has also led to greater imports.

The demand situation should settle down and it is not a great cause of worry. However, companies importing to India have to bear freight and logistical costs also and, hence, the surge in imports should be temporary. The demand scenario in India is likely to improve as the country and the emerging markets as a whole remain the demand centre. Our per capita steel consumption is abysmally low at 55 kg per annum against the global average of kg p.a., which will only improve as we catch up and urbanise more. Further, a number of new initiatives by the government will gradually boost demand. We have also taken steps to multiply capacity.

We are the sole bidder for the block reserved for steel sector among the mines earmarked for PSUs. We will also be taking part in the next round of auctions to procure more coal blocks. These auctions will provide a level playing field for all companies and facilitate faster development of coal blocks. We will be able to take the advantage of our own coal blocks as we have enough knowhow in the mining. Today, we are operating four coal mines and, along with the Mozambique mine, we are mining 30 mt coal on our own.

We are not averse to acquiring global assets, but we have to keep an eye on location and market situation domestically as well as globally. We are getting 3-4 shipments of more than 1 lakh tonne currently from Mozambique and also working out the logistical issues, which will enable us to bring more coal from there.

We have a planned expenditure of Rs 72,000 crore. Capex for the individual year has been Rs 8,000-10,000 crore per year and, this year, it will be about Rs 9,000 crore. We have prepared vision 2025 to enhance capacity to 50 mt from 23.46 mt, which will involve a total capex of Rs 1,50,000 crore.

funds will come through debt and equity in equal proportion as opposed to our current expansion plan, which is being funded with two-third equity and one-third debt.

The Rourkela and Burnpur plants have started producing. In conjunction with Bhilai, production will reach 23.46 mt per annum next year. Demand in India is not likely to slump in the foreseeable future — cement-steel mixing ratio is not adequate here as for every tonne of cement used in construction, only 0.3 tonne steel is used. In developed economies, the ratio is 1:1. India is slowly becoming quality conscious and there is a preference for pre-fabricated steel and cement structure. Considering that 50-60% of steel is used in the infrastructure and construction sector, as we move to more qualitative products, steel demand will only go up.

Source:financialexpress.com

Indian Meat Exporters Optimistic Over Russian Opportunities

India is to begin exports of meat and dairy products to Russia by mid-2015, with the first shipments of buffalo meat due to take place in the coming months, according to official statements from the Russian Industry and Trade Ministry.

Indian companies are currently waiting for a decision from Russian veterinary body Rosselkhoznadzor on the list of approved suppliers.

"We are confident that, in the near future, our companies will be allowed to deliver their products to Russia," said director general of the Federation of Indian Export Organisations (FIEO) Ajay Sahai.

FIEO has complained that the contracts on the supply of buffalo meat to the Russian market are still not signed, although Rosselkhoznadzor actually allowed imports of this product from four companies in India in December 2014.

The Russian veterinary body is also continuing its inspections of the Russian market with the intention to grant further export rights to other companies.

Officials from Rosselkhoznadzor have confirmed that, at the end of 2014, they inspected six other meat producing companies in India and, according to preliminary information, in each case Russian vets were satisfied with the quality of the products and safety of the production process.

As a result, Indian companies expect the range of products eligible for export to expand, before the first deliveries are expected later this year.

"The imminent start of supplies of meat and milk from India are equally important for both sides [for Indian producers and Russian market]," commented a source at the Russian Industry and Trade Ministry.

He also referred to the Russian ban on supplies from the European Union (EU) and the US and that it currently faces the risk of a deficit in certain categories of meat products, while for exporters in India this was the first chance to reach a new and very promising market.

According to Russian experts, the prospects for exports of meat products from India to Russia are now clearer than several months ago. Russian agricultural analyst Eugene Gerden said that following the selection of Narendra Modi as the country’s Prime Minister in mid-2014, there was a possibility that negotiations on the launch of supplies of buffalo meat to Russia faced deadlock.

"It was known that representatives of the current government previously spoke against developing exports of buffalo meat for religious reasons, but new steps towards establishing supplies to Russia show that the authorities do intend to develop this area of bilateral trade," said Gerden.

Source:globalmeatnews.com

SEBI releases FAQs for Investment Advisers

SEBI : FAQs on SEBI (Investment Advisers) Regulations, 2013

Issue relating to promotion of ACIT is first appealable before Central Administrative Tribunal, rule

IT: Where petitioners working on different posts with respondent/CBDT, raised a grievance with regard to their promotions, they were required to approach Central Administrative Tribunal (CAT) in first instance and, thus, writ petition filed by them was not maintainable

Commerce Ministry Seeks Cut In Gold Import Duty

With a decline in gold imports, Commerce Ministry has sought reduction in import duty on gold, a step that could boost exports and manufacturing of gems and jewellery.

"We have been asking for a cut in gold import duty," Commerce Secretary Rajeev Kher told reporters here on the sidelines of a CII function.

In its Budget proposals, the Ministry has suggested the Finance Minister to consider reduction in import duty on the yellow metal.

The industry has sought reduction in customs duty on gold to two per cent, from 10 percent now.

The gems and jewellery sector, which employs about 3.5 million people, would get a boost from the move.

Gold imports in December declined sharply to 39 tonnes, from 152 tonnes in November. Exports of gems and jewellery too declined by 1.2 per cent year-on-year to USD 2.66 billion in December.

The sector is one of the 25 thrust areas identified under the 'Make in India' programme. The campaign aims at attracting domestic and foreign investments to boost manufacturing and create jobs.

The government had raised the import duty on gold to contain the widening current account deficit.

Source:zeenews.india.com

Rupee Strengthens To 61.89 Per Dollar

The Indian rupee strengthened against the dollar in the mid day trading on Thursday amid caution ahead of the Union budget due on Saturday.Traders will also keep an eye on the annual economic outlook survey on Friday.

The local unit opened at 61.94 per dollar and touched a high of 61.83 per dollar, a level last seen on 6 February. At 2.54pm, the home currency was trading at 61.89, up 0.14% from previous close of 61.97.The Sensex index fell 0.63%, or 183 points, to 28,840.07 points.

The yield on India’s 10-year benchmark bond was trading at 7.729% compared with its Wednesday’s close of 7.707%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has gained 1.78%, while foreign institutional investors have bought $3.42 billion from local equity and $5.05 billion from bond markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.257, up 0.05% from the previous close of 94.213.

The ratings agency S&P raised its India gross domestic product growth forecast to 7.9% from 6.2% for the year ending March 2016, citing as well rising investment and low oil prices. The agency also raised its growth forecast for fiscal year 2016-17 to 8.2% from 6.6% previously.

Source:livemint.com

Confiscated goods can’t be auctioned during pendency of appeal without prior approval of appellate C

Excise & Customs : During pendency of appeal, confiscated goods cannot be auctioned without prior permission of appellate court; High Court directs department to pay value of goods on date of seizure, with applicable interest

HC orders pre-deposit in cash as assessee was continuously using credit during withdrawal of Cenvat

Excise & Customs : Where, having defaulted in payment of duty beyond 30 days, assessee continued to use credit to pay duty despite prohibition on Cenvat use under rule 8(3A), assessee was liable to pre-deposit duty in cash with applicable interest

No revocation of trust’s registration alleging misuse of funds by trustees if trust was fulfilling i

IT : Where assessee-trust was fulfilling its main object of imparting education, registration of trust could not be cancelled only on basis that trustees were misappropriating funds of said trust

MCA notifies Form for filing info to rectify defects or incompleteness in e-forms filed with it

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Registration Offices and Fees) Amendment Rules, 2015 – Amendment in Rule 10 and Insertion of Form No. GNL-4

No TDS on sum paid for extra cost incurred by contractor due to delay in completion of work by sub-c

IT : Amount paid by sub-contractor to main contractor on account of extra costs that main contractor had to incur due to delay in completion of work by sub-contractor was not liable to TDS under section 194C

Assessee couldn't demand stay on recovery proceedings due to pendency of restoration application in

Excise & Customs : Application for Recall/restoration of Tribunal order has to be disposed of, one way or other by Tribunal itself on merits; but, assessee cannot claim a stay on recovery merely because a recall application has been filed (or is pending)

Revised monetary limit for filing appeal would also apply to pending appeals, rules Gujarat High Cou

Excise & Customs : In view of Instruction F. No. 390/Misc./163/2010-JC, dated 17-8-2011, tax appeal below Rs.10 lakh is not maintainable before High Court and this instruction also applies to pending appeal filed/admitted before 17-8-2011

Revised monetary limit for filing appeal would also apply to pending appeals, rules Gujarat High Cou

Excise & Customs : In view of Instruction F. No. 390/Misc./163/2010-JC, dated 17-8-2011, tax appeal below Rs.10 lakh is not maintainable before High Court and this instruction also applies to pending appeal filed/admitted before 17-8-2011

Computation of period to levy interest for assessee-in-default not to be adjudicated in writ; rules

IT: Where petitioner had been called upon to pay interest under section 220(2), demand having been raised consequent to order passed by Settlement Commission, computation of period for purpose of levy of interest could not be adjudicated in a writ petition and, hence, petitioner was to be directed to file a revision before Commissioner under section 264

Revised monetary limits for filing appeal would also apply to pending cases, rules Gujarat High Cour

Excise & Customs : New/revised monetary limits would apply to pending appeals also; hence, appeal filed prior to fixation of new/revised limits would not be maintainable after new/revised limits come into force

No extended period when assessee didn’t pay duty due to conflicting views expressed in CBEC’s circul

Excise & Customs : Where Tribunal found that department was aware of all facts and there were conflicting CBEC Circulars on issue of excisability of 'sugar syrup' during relevant period, there can be no case of suppression and therefore, extended period of limitation cannot be invoked.

Independent manufacture couldn’t be chosen as a comparable for job worker

IT/ILT : Where assessee was only a job worker comparables chosen by assessee of full fledged independent manufacturers could not be prima facie considered for purpose of comparability analysis

HC denied set off of input tax credit of earlier period against output tax liability of current peri

CST & VAT : Karnataka VAT - Where assessee purchased goods in month of June, 2006 after payment of input tax and claimed input tax credit in return filed for period of February, 2007, it was not entitled to benefit of input tax credit

No mandate to file audit report alongwith return to claim deduction under sec. 32AB

IT : Deduction under section 32AB claimed by assessee cannot be disallowed on ground that assessee had not filed audit report along with return

Assessee wasn’t entitled to refund of ST paid on services used for export as it failed to comply wit

Service Tax : Where exporter of goods claiming refund of service tax paid on services used for export had : (i) failed to obtain service tax code under notification no. 41/2007-S.T. and had not even complied with said requirement subsequently; and (ii) also filed refund claim belatedly, he was not entitled to said refund

OP abused its dominance by influencing State utilities to get project report done in lieu of financi

Competition Law : Where Opposite Party was dominant in relevant market for financing of rural electrification scheme, OP abused its dominant position by influencing State utilities to get detailed project reports (DRPs) done by its subsidiary in return of promise that finance would be arranged by OP

Co. engaged in BPO services couldn’t be a comparable for software development Co.

IT/ILT : A software development company cannot be compared with a company mainly engaged in BPO services

India's Iron Ore Exports Declined Sharply During Jan-Oct 2014

The Indian exports of iron ore saw huge decline during the initial ten-month period in 2014, indicates the latest statistics released by Indian Trade and Commerce Ministry. The iron ore exports from the country fell sharply by 26.2% during the period from January to October last year when compared with the previous year.

The iron ore exports from the country totaled 9.03 million tonnes during the initial ten-month period in 2014. The exports had totaled 12.23 million tonne during the corresponding ten-month period during 2013.

The statistics indicate that China continued to remain as the biggest importer of Indian iron ore. The iron ore exports to China totaled 6.47 million tonne during the ten-month period, falling 33.4% year-on-year. In second place was Japan with total iron ore shipments of 1.54 million tonnes during the period. The exports to Japan dropped by 18.4% when compared with the previous year.

The iron ore exports by the country during the month of Oct ’14 alone totaled 268,000 tonnes. The exports for the whole year are estimated to remain within 10 million tonnes in 2014.

The imposition of 30% duty on exports of iron ore lumps and fines has resulted in the sharp fall in exports. In addition, the prevailing mining bans by various states have also led to fall in exports during the period.

Source:- metal.com

Cbec Suffers Top Slots Vacant Ahead Of Budget

The Central Board of Excise and Customs (CBEC) is suffering from top slots vacant ahead of the overnment’s first full-year Budget for 2015-16 on February 28.

CBEC Chairman Kaushal Srivastava , who is retiring in June.The reason for no movement on the appointments is that a review of the selection process for the top slots as sought by finance minister Arun Jaitley is yet to be undertaken.

The CBEC comprises of seven members. In the absence of the appointments of full body, it is functioning with three members, including the chairman, Kaushal Srivastava. Others two members are Ms Joy Kumari Chander and Shashi Bhushan Singh.

All of them have been overburdened with additional charges. The shortage of four members badly affected the overall functioning of the CBEC.

It’s interesting to note that Chairman Srivastava, members Chander and Singh are retiring in June, May and February of this year respectively and the total 14 posts of Principal Chief Commissioner are lying vacant since October 15, the date of implementation of cadre restructuring.

The CBEC is the apex body of customs, central excise and service tax departments and oversees collection machinery of these departments, which are the largest revenue collector for India government.

The board provides critical inputs to the Budget process. The CBEC also faces revenue shortfall around Rs 70,000 crore till date.Not filling up vacant slots of top brass in the CBEC that will hit post budget revenue target and collection.

Source:- tkbsen.in

Rupee Trims Its Early Gains Vs Dollar, Still Up By 13 Paise

The rupee trimmed its early gains against the American currency and was quoted higher by 13 paise at 62.07 per dollar on selling of the US unit by banks and exporters on the back of lower dollar overseas.

Good foreign capital inflows into the equity market also impacted the rupee value against the dollar, a forex dealer said.

The rupee resumed higher at 62.06 per dollar as against the yesterday's closing level of 62.20 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to 62.01 per dollar on initial selling of dollars.

However, it trimmed its early gains and was quoted at 62.07 per dollar at 1100hrs.

The domestic currency moved in a range of 62.01-62.08 per dollar during the morning trade.

In the New York market, the dollar inched lower against the yen and euro after Federal Reserve Chairwoman Janet Yellen suggested the central bank's first rate hike since 2006 may not occur until the second half of the year.

Meanwhile, the Indian benchmark sensex was quoted higher by 180.57 points or 0.62% to 29,185.23 at 1100hrs.

Source:- business-standard.com

Deemed credit available on iron and steel materials even when SSI-exemption limit was exceeded

Excise & Customs : Units availing SSI-exemption under notification no. 1/93-CE are entitled to deemed credit in respect of iron and steel materials, even after crossing SSI-exemption limit

Unexplained cost of construction to be spread over total period of construction for making sec. 69 a

IT: Where construction was spread over a number of years, addition for unexplained cost of construction would be spread over to said years

No reassessment after 4 years if there was no failure of assessee to disclose material facts at asse

IT : In absence of failure on part of assessee to disclose truly and fully all material facts necessary for assessment, Assessing Officer could not initiate reassessment proceedings after expiry of four years from end of relevant assessment year

Removal of inputs/capital goods from DTA unit to EOU unit under CT-3 form weren’t liable to reversal

Excise & Customs : No reversal of credit is warranted on removal of inputs/capital goods from DTA unit to EOU unit under CT-3 after taking permission from department, in view of exemption under Notification No. 22/2003-C.E.

Income from letting out shopping complex alongwith host of facilities would be business receipts

IT : Where assessee company developed shopping malls and business centres on properties owned by it and let out same by providing host of facilities in said business centre, income derived therefrom was business income

Appellate authorities rightly deleted sec. 68 addition after relying on confirmation of advance by l

IT : Where appellate authorities after considering balance sheet of lender as well as confirmatory certificates in respect of advances given to assessee, deleted addition made by Assessing Officer under section 68, said order did not require any interference

Assembling of air purification system by simple tools would qualify as manufacture for sec. 80-IC re

IT : Assembling of altogether different constituent parts in air purification system by using simple tools and testing equipments would qualify as a manufacturing activity eligible to deduction under section 80-IC

Tribunal couldn't restore appeal when assessee didn't pray for extension of pre-deposit time before

Excise & Customs : Where High Court/Supreme Court has confirmed pre-deposit order of Tribunal and there was no prayer before High Court/Supreme Court seeking extension of time to make pre-deposit, Tribunal cannot restore appeal even after belated compliance with pre-deposit order

ARCs to obtain prior approval of RBI for change in their shareholding pattern

SARFAESI : Bank’S Prior Approval for Change in Shareholding

Issue of adjusting excess duty on finalization of provisional assessment was referred to third membe

Excise & Customs : Issue 'whether, in case of provisional assessment, excess payment of duty is to be adjusted against short-payment of duty, for determining demand' stands referred to Third Member

Mistake in rectification order is rectifiable by Tribunal

IT : A mistake from any source, be it parties or Tribunal, as long as it becomes part of record, would require examination by Tribunal under section 254(2)

Exp. for increasing share capital is revenue exp. when capital is utilized to purchase trading stock

IT : Where assessee incurred certain expenditure for increase in share capital, in view of fact that entire incremental share capital was used for purchase of trading stock, expenditure in question was to be allowed as revenue expenditure

Rectification order passed by ITAT after 4 years was valid as it took time to dispose of petition of

IT: Where Tribunal took its own time to dispose of petition filed by assessee for rectification order and passed said order after 4 years, was well within time limit as specified under section 254(2)

Renting furniture and other facilities along with office space is taxable as renting of immovable pr

Service Tax : Prima facie, renting of office space along with furniture, network, cabins and other facilities to work as an office is covered under 'renting of immovable property services' and is liable to service tax; CESTAT directs making of pre-deposit

Assessee eligible for concessional tax on diesel as it manufactured hot mix material for constructio

CST & VAT: U.P. VAT - Where assessee, a works contractor, was engaged in manufacture of hot mix material by cement, diesel oil, furnace oil and lubricants, which was used in construction of roads, and it made an application for issuance of form 'D' as per circular dated 14-1-2008 for purchase of diesel oil and furnace oil at concessional rate of tax for purposes of manufacturing hot mix material, assessee was manufacturer of a taxable goods entitled for form 'D

Sugar Mills To Struggle To Export Raws Despite Subsidy

Indian mills are likely to struggle to export raw sugar, despite a government subsidy to boost shipments, as global prices remain weak with large supplies from top producer Brazil set to flood the market soon.

Lower exports by India, the world's biggest consumer of sugar, should take some pressure off benchmark New York prices that are mired near a 5-year low of 14.08 cents per lb.

"Not only are the prices unfavourable, most refineries in the world have sufficient stocks, with the pipeline being full. I do not see our exports going beyond 500,000 tonnes," said Dharmender Bhayana, managing partner at Sugrain Trading LLP.

India, which traditionally produces white sugar, exported nearly a million tonnes of raws in 2014.

"We have nearly missed the bus as the government took a long time to approve the subsidy. There is plenty of sugar and supplies from Brazil will arrive in April," Bhayana added.

After months of indecision, India last week decided to give mills a subsidy of 4,000 rupees ($64) a tonne for exports of up to 1.4 million tonnes of raw sugar to help cut stockpiles after five years of surplus output.

But given a premium for Indian supplies, traders do not see this subsidy helping much in terms of boosting exports.

Indian raw sugar is being quoted at $350 per tonne free on board for exports, versus $330 quoted for Brazilian supplies.

To help mills, India's top sugar-producing state of Maharashtra is considering an extra 1,000 rupees ($16) per tonne subsidy for exports of raw sugar.

Maharashtra, which accounts for more than a third of India's sugar production, is likely to approve the incentive in a week, said a government source who declined to be named as he is not authorised to talk to the media.

Global prices need to rise to make Indian raws attractive, but that looks unlikely in an oversupplied market, said a Delhi-based trader with an international firm.

"We are not very sure if Iran would import as much as it did last year because sanctions are gradually easing. Iran may turn to Brazil also," the trader added.

Iran had bought 500,000 tonnes of Indian raws in 2014, paying with the rupees it received for oil from India amid curbs on dollar trade with Tehran due to sanctions over its disputed nuclear programme.

In the absence of export deals, Indian mills could turn to the local port-based refineries of Shree Renuka Sugars Ltd, EID Parry and Simbhaoli Sugars Ltd. But prices remain an issue.

"Mills are willing to sell raw sugar at 20,000-20,5000 rupees a tonne which is considered high and needs to come down to 19,000-19,500 rupees for refiners to buy from mills," said a Mumbai-based trader who works with an international company.

Source:- in.reuters.com

India Begins Exporting Buffalo Meat To Russia

Rosselkhoznadzor has sent an expert to India to assess the quality of buffalo meat, destined for export from India to Russia, according to information on the agency’s website.

He will oversee the preparation and shipment of buffalo meat to Russia, as well as become acquainted with the raw material base of the Indian companies that are planning to export this meat.

Deliveries of buffalo meat from India to Russia were approved during Russian President Vladimir Putin’s visit to New Delhi in mid-December 2014.

Four Indian companies were given the right to export buffalo meat to the Russian Federation –N68 Fair Exports Pvt. Ltd, N121 Frigerio Conserva Allana Limited, N23 Frigorifico Allana Limited, and N42 Amroon Foods Pvt. Ltd.

Source:-in.rbth.com

Assam Govt mandates e-filing of import declarations

CST & VAT/INDIAN ACTS & RULES : Assam Value Added Tax (Second Amendment) Act, 2014 – Amendment in Sections 75 and 77

Steel Industry Hit By Weak Demand, Firms Seek Import Barriers

The steel industry has been passing through challenging times with rising input cost and falling demand. The margins of steel companies are squeezed with its inability to pass on the rising input cost to end user due to falling demand.

The shortage of iron ore has led to higher prices in the e-auction even as the key raw material prices in the international markets are hitting a new low.

The cost of coal is expected to go up with companies bidding for 21 coal blocks put on auction. With the rising production cost, steel producers are banking on the Government thrust on ‘Make in India’ programme to boost steel demand.

Goutam Chakraborty, Research Analyst, Emkay Global Financial Services, said the industry has sought the government to increase import duty to 10 per cent from 7.5 per cent as there has been a steady increase in import.

“The industry also wants a cut in export duty of low grade iron ore of 55 per cent to 58 per cent grade, specially to revive mining in Goa, but it would not help much even if it comes through as price of high grade iron ore itself has fallen sharply in the international markets,” he added.

Indirectly, he said, the steel industry would benefit from any sops provided to boost infrastructure and real estate spending.

Though the Reserve Bank of India has signalled softer lending rates, banks seem not comfortable toeing the line. The recent cut in repo rates has not led to lower rates for corporates. Investment in infrastructure projects and demand for housing will get a boost, if the lending rates are reduced. Steel demand will go up with the revival in infrastructure and real estate projects.

From being a net exporter of steel last fiscal, India has turned out to be a dumping ground for major steel manufacturing countries. In the first 10 months of this fiscal, imports were up 69 per cent to 8.1 million tonnes against 4.8 million tonnes in the same period last year. In 2014, imports from China alone were at 2.83 million tonnes against 1.25 mt, an increase of 128 per cent. China, with production capacity of 1,116 million tonnes, accounts for 49 per cent of global output and has surplus capacity of 200 mt.

Last year, steel consumption in China was down 3.4 per cent, but it managed to maintain a production growth of 1.5 per cent.

Countries such as Europe, the US, West Asia, South-East Asia and India are the major markets for exporting countries. Demand in West Asia has remained sluggish due to sharp fall in oil prices, while Europe is struggling to recover from the economic crisis. With the US imposing anti-dumping duty on steel imports, India and South-East Asia has become the preferred markets for China.

In a bid to encourage export of low value steel products, China offers incentives ranging from 13 per cent to 28 per cent of the value of shipments. In contrast, the production cost in India has gone up steadily due to high iron ore prices and coal prices. Iron ore prices in the international markets have fallen 50 per cent in the last one year, while it was 14 per cent in India.

Source:- thehindu.com

Budget 2015: Govt May Consider Import Duty Cut On Gold

With decline in gold imports, the government may consider 2-4 per cent reduction in import duty on it in the forthcoming Budget, a move that could help boost exports and manufacturing of gems and jewellery, sources said.

The industry has already sought reduction in customs duty on gold to 2 per cent, from 10 per cent now."Gold imports are declining continuously. Gems and jewellery sector contributes significantly in the country's total exports. On account of this, we are expecting a cut in the import duty. But it is up to the Finance Minister to take the final decision in the Budget," said a source.

The government may consider cutting the duty by 2-4 per cent, sources said.Commerce and industry minister Nirmala Sitharaman had last month hinted that the gems and jewellery sector, which employs about 3.5 million people, may get some incentives in the Budget.

The issues including the import duty related to this sector were widely discussed recently at a 'Make In India' workshop and a presentation was given to Prime Minister Narendra Modi on it by Commerce Secretary Rajeev Kher.

The ministry suggested that import duty on gold and silver be reduced to 2 per cent from the current 10 per cent.

Gold imports in December declined sharply to 39 tonnes, from 152 tonnes in November. Exports of gems and jewellery too declined by 1.2 per cent year-on-year to USD 2.66 billion in December.

The sector is one of the 25 thrust areas identified under the 'Make in India' programme. The campaign aims at attracting domestic and foreign investments to boost manufacturing and create jobs.

The All India Gems and Jewellery Federation has suggested that the customs duty should now be reduced to help check the smuggling of the precious metal.The government had raised the import duty on gold to contain the widening current account deficit.

Source:- timesofindia.indiatimes.com

Jnpt Planning To Build Satellite Port At Vijaydurg Or Dahanu

State-run Jawaharlal Nehru Port Trust (JNPT), India’s busiest container gateway near Mumbai, is planning to build a satellite port at either Vijaydurg or Dahanu in Maharashtra for at least Rs.10,000 crore.

JNPT and the Maharashtra government will hold 75% and 25% respectively in the proposed project, port chairman N.N. Kumar said in an interview on Sunday. “At both Vijaydurg and Dahanu, there is natural draught of 20 metres to receive bigger ships. A feasibility study for a satellite port has been completed internally. At present, there is only one big port in Maharashtra—JNPT—despite the fact that there is large industrial growth taking place in the state,” Kumar said without disclosing the project’s time frame.

JNPT’s proposal comes at a time when the growth of the Indian economy is projected to touch 7.4% in the current fiscal year compared with 6.9% last year based on a new way of calculating gross domestic product (GDP). At this level, it is estimated to be on par with China, the fastest growing major economy in the world. It is also the first time that the economy is projected to be bigger than $2 trillion; India’s GDP is estimated to be $2.1 trillion in 2014-15, according to official data.

With the first three quarters’ economic growth numbers at 6.5%, 8.2% and 7.5% respectively, the data assumes that in the fourth quarter (January to March), GDP will grow at 7.5%. However, merchandise imports in January fell 11.4% to $32.2 billion while non-oil imports rose 3.45% to $24 billion.

“Maharashtra needs a large multi-purpose port considering the way the export-import trade is growing. At present, there is no big multipurpose port. JNPT is focused on containers while Mumbai Port is handling more on only liquid cargo. You need to handle coal and other cargoes for power plants and other industries for the Maharashtra state,” Kumar said.

Mumbai Port, India’s oldest harbour, has not scaled up efforts to handle more cargo, as it is situated within city limits. Interestingly, JNPT was built to de-congest the 143-year old Mumbai Port. JNPT was built in 1989 outside Mumbai city near Nhava Sheva island. Mumbai port, once considered the country’s premier harbour, has about one-third of the total employees across all 13 major ports of India, but handles only 10% of the total traffic of these ports.

“JNPT is also getting congested. Once it builds its fourth container terminal, JNPT will get its entire waterfront exhausted. If JNPT has to grow as entity, it has to look outside for growth like any other company,” said Atul C. Kulkarni, an independent maritime consultant.Kulkarni said the government has given its port authorities guidelines to look out for further growth, as the market is growing.

“Nothing stops JNPT in joining hands with another government entity or a private company to augment cargo handling facilities and to invest in a port outside Nhava Sheva.”

JNPT’s Kumar said funding should not be a problem for the port as it has got sufficient reserves. He said the proposed port will cater to entire Maharashtra, upper part of Karnataka, southern part of Gujarat and some parts of Goa.

At present, three big ports of Gujarat—Mundra, Pipavav and Kandla—are competing with Maharashtra ports for the cargo of western India hinterland.Agents of leading shipping lines said cargo from Maharashtra often go to private sector ports in Gujarat due to congestion at JNPT. They said both Mundra and Pipavav in Gujarat are non-major ports or not under the control of centre, allowing them to fix their own rates unlike state-controlled major ports.“The proposed satellite port is not to compete with other existing ports in Gujarat. There is sufficient cargo for everyone.

Source:- livemint.com

Rupee Opens Higher At 62.05 Per Dollar

The Indian rupee on Wednesday strengthened against the dollar, tracking gains in the local equity and Asian currencies markets.

Traders are cautious ahead of the railway budget on Thursday and national budget on 28 February. Also traders will keep an eye on annual economic outlook survey on Friday.

The local unit opened at 62.05 per dollar and touched a high of 62.03—a last level seen on 10 February. At 9.11am, the home currency was trading at 62.02, up 0.28% from previous close of 62.20.

The Sensex Index rose 0.33% or 96.46 points to 29,101.12 points.Major Asian currencies were trading higher against the dollar after Federal Reserve chair Janet Yellen suggested the Fed would not rush into raising interest rates, Reuters reported.

Janet Yellen told the Senate Banking Committee that the US central bank was preparing to consider interest rate hikes “on a meeting-by-meeting basis, it added.The South Korean won was up 0.68%, Taiwan dollar up 0.53%, Malaysian ringgit 0.53%, Philippines peso 0.28%, Japanese yen 0.24%, Indonesian rupiah 0.23%, Singapore dollar 0.07%. However, China offshore spot was down 0.15%, Thai baht 0.11%, China renminbi 0.06%.\

The yield on India’s 10-year benchmark bond was trading at 7.707% compared with its Tuesday’s close of 7.718%. Bond yields and prices move in opposite directions.Since the beginning of this year, the rupee has gained 1.35%, while foreign institutional investors have bought $3.25 billion from local equity and $5.05 billion from bond markets.

The dollar index, which measures the US currency’s strength against major currencies, trading at 94.358, down 0.15% from the previous close of 94.493.

Source:- livemint.com

Usage of goods for commercial purposes even after declaring them for personal usage does not call fo

CST & VAT : Kerala VAT - Even where assessee declared that purchase of goods was for purpose of own use but used it for commercial purpose and generated profit from it, penalty under section 70B could not be levied

CLB isn’t empowered to adjudicate upon validity of meeting held in stipulated time

CL: If any meeting is held by a company within stipulated time in accordance with law, CLB is not empowered to adjudicate validity of meeting

Commission held at ALP in earlier year had to be accepted in later years if facts remained unchanged

IT/ILT : Where similar commission payments were being made by assessee to an individual as per agreement and were considered at arm length in earlier years, then same could not be considered as not being at arm's length in year under consideration unless it was shown by department that facts in year under consideration had undergone a change

Co. providing engineering and geospatial services isn't comparable to a Co. offering only engineerin

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering engineering and structural designing services to its AE, in view of fact that one of comparables selected by TPO was functionally different as it was offering both engineering as well as geospatial services, only a part of impugned addition deserved to be confirmed

ITAT deleted penalty as revenue failed to point out any non-compliance regarding production of TP do

IT/ILT : Where in course of transfer pricing proceedings, revenue could not point out any specific non-compliance on part of assessee regarding production of documents maintained under section 92D(1), impugned penalty order passed under section 271G was to be set aside

HC condones delay in filing appeal as delay occurred just because person-in charge was on bed rest

Excise & Customs : Where 'delay occurred because person-in-charge was advised bed-rest' and said explanation is found to be genuine, then, condonation cannot be denied merely because Appeal was not filed immediately after resumption of duty by person-in-charge; High Court allows condonation on payment of costs

Co-operative banks to withhold taxes while making payment of interest in excess of Rs. 10,000 to its

IT: Where assessee co-operative bank had made interest payments in excess of Rs. 10,000 on term deposits to its depositors, assessee would be liable to deduct TDS on said payment

Assessee availing of area-based exemption for first time need not to reverse credit balance lying wi

Central Excise : A manufacturer availing of area-based exemption for first time is not required to reverse Cenvat Credit balance lying with him

No penalty under sec. 158BFA on admission of undisclosed income without hearing assessee

IT : A notice to assessee is a must before any penalty is imposed under section 158BFA

HC sets aside adjudication of stamp duty by Collector as he failed to ascertain the fact that proper

Stamp Act: Where respondents while adjudicating upon application of petitioner filed under section 31 had not ascertained fact that value mentioned in sale deed was less than market value and petitioner had wilfully under-valued property, with a fraudulent intention to evade proper stamp duty, impugned order passed by respondent taking recourse to section 47A was to be set aside

No invocation of extended period and imposition of penalty against recipient of service in revenue-n

Service Tax : Where an assessee is paying tax as a receiver, extended period and consequent penalty may not be invokable if situation is revenue-neutral; CESTAT remands matter back to reconsider matter on facts and law

Commissioner rightly exercised revision power as original assessment order was pre judicial to inter

CST & VAT : Kerala GST - Information received subsequent to assessment that relevant Form F was invalid, would be sufficient for Commissioner to exercise revision power

Input tax credit of purchase tax wasn’t available to manufacturer as it had sold final product outsi

CST & VAT: Tripura VAT - Where assessee purchased raw rubber after payment of purchase tax and manufactured rubber thread therefrom and sold a large quantity of rubber thread outside State either by transfer of stock or by means of inter-State sale, benefit of input tax credit was not available to assessee in respect of central sales tax collected and payable under Central Act

Area-based exemption from basic excise duty doesn't extend to EC, SHEC and National Calamity Conting

Excise & Customs : An area-based exemption from basic excise duty or special excise duty leviable under Central Excise Tariff Act, 1985 does not extend to education cesses and National Calamity Contingent Duty leviable under various Finance Acts

No addition in block assessment for completed assessments unless any incriminating evidence found in

IT : Determination of 'total income' in respect of assessment years for which assessments were already completed on date of search, shall not be influenced by items of income other than those based on material unearthed during course of search

Govt. mandates e-filing of VAT returns in Daman and Diu

CST & VAT : Daman and Diu Value Added Tax Rules, 2005 - Amendment in Rule 28

Assessee is eligible for interest on belated refund after expiry of 3 month from date of filing refu

Excise & Customs : There is no provision under section 11BB that relevant date for determining interest on belated refund will be postponed in any eventuality; interest accrues from expiry of 3 months from date of refund applications and date of appellate order granting/upholding refund is immaterial

Issue of determining market value of property being converted into stock-in-trade couldn’t be decide

IT : Question of determining fair market value of property of assessee converted into stock-in-trade from investment is a question of fact which can not be determined in writ jurisdiction

ITAT allows deduction of interest as loan was utilized to acquire property for business of pre-schoo

IT : Where assessee, engaged in business of running pre-schools, took term loan and utilised it for acquiring property used for purpose of pre-schooling business, assessee's claim for deduction of interest on said loan was to be allowed

Mere incompleteness in import declaration form won't invite penalty when goods were recorded in book

IT : Where in respect of credit entries, assessee established identity of creditors by bringing on record their PAN and complete addresses and, moreover, transaction was made through proper banking channel, impugned addition made under section 68 was not sustainable

Employee couldn’t file writ due to excess tax deducted by employer as he could claim its credit in r

IT : Where assessee filed writ petition seeking a direction to respondents to assess him for tax only after deducting monthly instalments recovered from his salary towards housing loan repayment, in view of fact that any excess deduction would be taken care of in regular assessment, relief sought for could not be granted