India’S Push To Resume Iron-Ore Mining Stymied

A price slump in the global market for iron ore has thwarted a quick fix that could have given India’s economy a boost.

Until three years ago, India was the world’s third-largest exporter of iron ore. Mines in the picturesque western state of Goa supplied nearly half of those exports, employing more than 100,000 people, and generating more revenue for the local economy than even the tourists who flock to its famous sandy beaches.

But the previous Indian government halted iron-ore mining because of concerns about illegal operations and the environment. Prime Minister Narendra Modi’s government set about restarting mining, but by the time it cleared the final obstacle last month for a majority of the mines, prices had collapsed.

The price of iron ore similar to that mined in Goa has slumped to around $42 a ton at China’s Tianjin Port, from a high of $165 a ton in 2011, according to the Steel Index website.

“The [industry's] economics don’t exist anymore,” says Ambar Timblo, managing director of Fomento Resources, one of Goa’s leading mining companies. He estimates Goa’s mining industry has lost nearly $20 billion in potential revenue since the state’s mines were suspended from operating.

That has left people such as Raju Juggal and his partner Sunil Mesta struggling to pay debts they took on five years ago to buy a boat to transport iron ore. “I want to sell my vessel as scrap because there are no takers,” says Mr. Juggal. “But the banks won’t let us, as they say the scrap value is too low to cover our loans.”

Two things happened while India’s iron-ore industry was shut down. China’s demand slowed and the world’s two mining behemoths, Australia’s Rio Tinto PLC and BHP Billiton PLC, along with Brazil’s Vale S.A., boosted supply in a price war that may have permanently crippled India’s iron-ore industry.

The three companies, which together produce around 60% of the world’s iron-ore exports, are betting they will remain profitable because their size and technological advantages enable them to keep mining costs low. Rio, for example, ships a ton of iron ore from its vast mines in the Pilbara region of Western Australia to China at just above $30 a ton, including various government royalties, according to analysts.

Moreover, because Rio’s ore is higher quality than that mined in Goa, it sells for around $49 a ton.

By contrast, it costs Goan miners on average around $40 to $42 a ton to produce their lower-quality ore and to get it to a local port, Mr. Timblo says, including various government levies. When they ship the ore, they must then pay a 30% export tax, first imposed on Indian miners four years ago when the commodities boom was at its height.

Add in shipping costs, and Goan mine operators need to sell iron ore at around $55 a ton to break even, Mr. Timblo estimates — some 30% higher than current prices.

“The largest cost aspect to Goa is statutory in nature through royalties, contribution to iron-ore funds and of course the 30% export duty,” says Mr. Timblo. “So it is more or less in the government’s hand to appropriate these costs and taxes in a judicious manner to ensure exports can be competitive.”

“Nearly all the households in our village are on the verge of collapse as most are dependent on mining,” says Devanand Vasant Parab, head of the council in Pisseurlem, one of the hill villages in Goa that used to provide mining workers.

“We know that market rates have crashed to such a level that mines won’t restart,” he says.

Around three-quarters of those employed directly or indirectly in Goan iron-ore mining at its height are now unemployed, says Glenn Kalvampara, secretary of the Goa Mineral Ore Exporters Association, the trade body that represents local ore exporters.

“The rest were retained in the hope that mining would start sooner than later, despite there being no mining income,” says Mr. Kalvampara. “Now there seems to be no end.”

Iron-ore mining in Goa, a former Portuguese colony, took off following World War II, when Japanese buyers were scouting for reliable suppliers to aid the country’s reconstruction efforts.

Source:blogs.wsj.com

Nigeria’S Rice Import To Drop By 3.3 Per Cent To 2.9 Million Tonnes – Reports

Nigeria’s rice import will drop by 3.3 per cent to 2.9 million tonnes this year, a report released on Friday by the Food and Agricultural Organisation has said.

China, which was the world’s biggest importer of rice last year along with Nigeria, would raise its import volume by 5.2 per cent to 3.2 million tonnes in 2015 due to higher demand in the mainland, the FAO said in its rice market monitor report for April. Last year, China and Nigeria each bought three million tonnes of rice from abroad.

According to the United Nations food agency, the global milled rice trade this year is forecast to drop by 2.5 per cent from 2014 to 41.3 million tonnes, due mainly to good stockpiles or higher production in Asia.

Global paddy output in 2015 is forecast to edge up 1.1 per cent from last year to 749.8 million tonnes, the UN agency said.

Thailand is expected to be the world’s largest rice exporter this year with shipments of 11.2 million tonnes, followed by 9.3 million tonnes from India and 6.5 million tonnes from Vietnam.

As such, the three Asian nations would account for a combined 65 per cent of the world’s rice trade, down slightly from 68 per cent last year.

The FAO revised up India’s rice exports last year to 11.3 million tonnes from 8.2 million tonnes estimated earlier, making it the world’s largest exporter in 2014, followed by Thailand with 11 million tonnes and Vietnam with 6.5 million tonnes.

Nigeria’s purchases abroad are forecast to drop by 3.3 per cent to 2.9 million tonnes in 2015.

Rice output in China, also the world’s top producer, had been forecast to edge up 0.2 per cent to 208.5 million tonnes this year, the FAO said.

President Goodluck Jonathan had in January this year said rice farmers across the country had a new lease of life due to the transformation taking place in the sector.

He said over six million rice farmers had received improved rice seed varieties, boosting domestic rice production by an additional seven million metric tonnes.

He had said, “The rice revolution is taking place across the country, from Kebbi, Kano, Kaduna, Katsina, Zamfara, Sokoto, Bauchi, Gombe, Niger, Kogi, Ogun, Ekiti, Ebonyi, Rivers, Anambra, Delta, Edo to Bayelsa State. High quality Nigerian rice is now competing favourably with imported rice in the markets.

“Our rice millers have taken advantage of these new opportunities, and the number of integrated rice mills has expanded from one at the beginning of this administration, to 24 today.”

The President also read the Riot Act to rice importers, saying all those owing the nation rice import duties must pay, no matter how highly placed. He said under no circumstance would he allow rice importers to hold the nation to ransom.

“Nigeria our dear country will not be held hostage by rice importers. There will be no sacred cows under my watch. All those owing Nigeria on rice import duties must pay,” Jonathan said.

Source:naija247news.com

Rupee Opens Marginally Lower At 62.33 Per Dollar

The Indian rupee opened marginally lower against the dollar on Monday, tracking losses in the Asian currencies market. The local unit opened at 62.33 per dollar. At 9.05 am, the home currency was trading at 62.34, down 0.04% from previous close of 62.32.

The Sensex index rose 0.23% or 66.84 points to 28,946.22 points. Among the Asian currencies, Malaysian ringgit was down 0.82%, Philippine peso down 0.51%, South Korean 0.29%, Indonesian rupiah 0.17%, Taiwan dollar 0.15% and Thai baht 0.11%.

The yield on India’s 10-year benchmark bond was trading at 7.780% compared with its Friday’s close of 7.798%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has gained 5.02%, while foreign institutional investors have bought $13 billion from local equity and bond markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 99.482, up 0.14% from the previous close of 99.338.

Source:livemint.com

TPO gets flaks from ITAT for treating a manufacturing Co. as comparable to a Co. rendering travel su

IT/ILT: A company engaged in manufacturing activity has different FAR from company rendering project support services to its associated enterprise and cannot be selected as comparable

Service which is made taxable under a new category can't be classified under different category for

Service Tax : 'Listing fee' towards 'banner advertising' on website does not amount to 'Business Auxiliary Services'; same amounts to 'sale of advertising space and time service' and taxable only from 1-5-2006

Collusive act of 'All India Motor Transport Congress' of persuading its member to fix freight was an

Competition Act : Where All India Motor Transport Congress (AIMTC) through its press releases/media briefings/telephone calls was instrumental in persuading its member associations (truckers) to fix freight rates, action of AIMTC was anti-competitive

No penalty for wrongful availment of cenvat credit unless intention to evade duty was proved

Cenvat Credit : To attract penalty under Cenvat, rule 15(2), read with section 11AC, revenue has to prove that assessee has availed Cenvat credit wrongly with an 'intent to evade duty'; if department fails to prove that, no such penalty can be levied

AO has to seize goods if any discrepancy is found in docs instead of detaining vehicle containing go

CST & VAT : Gujarat VAT - Where Authorised Officer checked a vehicle transporting goods from Mangalore to Gujarat State and having found that documents accompanied with goods were not satisfactory detained vehicle and did not take action for seizure of goods and for release of vehicle, Authorised Officer was to be directed to release vehicle by unloading of goods

Notification specifying higher depreciation on commercial vehicles acquired in specific period wasn'

IT : Notification providing for accelerated depreciation at rate of 50 per cent for new commercial vehicles acquired on or after 1-1-2009 but before 1-10-2009 is not discriminatory and not violative of fundamental rights of assessee who purchased vehicles between 1-10-2009 to 31-3-2010

Disallowance made due to retrospective amendment in law doesn't invite concealment penalty on assess

IT: Assessee could not be penalized under section 271(1)(c) for claims which were not disallowable by any express provision at relevant time, but were disallowed in view of retrospective amendment

Assessee can claim sec. 54B and 54F reliefs, simultaneously, on sale of agricultural land

IT: Assessee is entitled to exemption under both sections 54B and 54F and they are not mutually exclusive and independent of each other

Exp. incurred on office to repair damages caused by floods would be treated as revenue exp.

IT : Expenditure which was necessary to repair damage caused by fire/flood, was to be treated as revenue expenditure

Various ready-to-cook snack mixes are taxable at higher rate of 13.5% under Karnataka VAT Act

CST & VAT: Karnataka VAT - Vegit-Aloo Hara Bara Kebab, Vegit-Aloo Veg Cutlet, Vegit-Aloo Yummy Cheese Balls, Vegit-Aloo Mazedar Bonda and Vegit-Aloo Jatpat Tikki, which are generally known as Vegit Snack Mix, would fall under residuary entry of VAT Act and were not covered by Entry No. 3 of Third Schedule

Assessee has to reply to sec. 148 notice even if jurisdiction of AO is disputed, Supreme Court dismi

IT/ILT: SLP dismissed against order of High Court where it was held that even if existence of PE of petitioner non-resident company within jurisdiction of Assessing Officer was in dispute, if petitioner had not made aware Assessing Officer that no income chargeable to tax had escaped assessment and had merely told him that he had no jurisdiction to issue reassessment notices, it did not act strictly in accordance with law

Collection of tax from an Indian resident to be suspended during pendency of MAP proceedings invoked

IT/ILT : Section 90 of the Income-Tax Act, 1961 – Double Taxation Agreement – India-Uk Convention for Avoidance of Double Taxation and Prevention of Fiscal Evasion – Suspension of Collection of Taxes during Mutual Agreement Procedure (MAP)

Mark-up earned on sale isn't chargeable to service tax even when same is wrongly booked as 'commissi

Service Tax : Where assessee : (a) bought goods on payment of VAT, and (b) sold same to foreign company after adding mark-up of 3 per cent, said transaction was one of 'purchase and sale' and not commission agent's services, even if mark-up is wrongly booked as commission and assessee's seller directly sends goods to foreign company

No reassessment to disallow sec. 35D deduction which was allowed after scrutiny assessment; SLP dism

IT : SLP dismissed against High Court ruling that where for several years deduction for amortization of GDR issue expenses under section 35D had already been allowed, that too after scrutiny assessment, same could not be disallowed in current year by reopening

Assessee has to reply to sec. 148 notice even if jurisdiction of AO is disputed, SC rules dismissing

IT/ILT: SLP dismissed against order of High Court where it was held that even if existence of PE of petitioner non-resident company within jurisdiction of Assessing Officer was in dispute, if petitioner had not made aware Assessing Officer that no income chargeable to tax had escaped assessment and had merely told him that he had no jurisdiction to issue reassessment notices, it did not act strictly in accordance with law

New norms on lending against shares by large NBFCs aren't applicable for unlisted shares

NBFCs : LENDING Against Shares - Clarification on Applicability of Circular DNBS (PD).CC.NO.408/03.10.001/2014-15, DATED 21-8-2014

Service-tax continues to be levied at 12.36% until date of enforcement of new rate would be notified

ST LAWS : Finance Bill, 2015 – New Service Tax Rate – Clarification on Coming into Effect of New Service Tax Rate

RBI proposes ban on outsourcing of internal audit and KYC norms by NBFCs; releases draft guidelines

NBFCs : Draft guidelines on managing risk and code of conduct in outsourcing of financial services by NBFCs

MCA allows listed Cos to follow Schedule XIII of old Act even for remuneration tenure beyond April 1

COMPANIES ACT, 1956/COMPANIES ACT, 2013 : Section 197, Read with Schedule VI, of the Companies Act, 2013 and Schedule XIII of the Companies Act, 1956 – Managerial Remineration – Clarification on Payment for Period as Approved by Company in Accordance with Provisions of Earlier Act

Goods used for fabrication of structures to support machines are eligible for credit

Cenvat Credit : MS Rod, Sheet, MS Channel, MS Plate, Flat etc. used for fabrication of structurals to support various machines like crusher, kiln, hoopers etc. are eligible for capital goods credit as 'components, parts and accessories

Pune ITAT allows depreciation on Goodwill following verdict of Apex Court in Smifs Securities

IT : Where under share sale and purchase agreement assessee purchased 51 per cent shareholding of company 'M' while assigned debts of Rs. 1.35 crores to 'M' for Re. 1 only and subsequently recovered amount was shown and taxed in hand of company 'M', original loss of Rs. 1,34,99,999 was in fact compensation paid to company 'M' for surrendering their 51 per cent share; hence, a capital expenditure

Department can't collect tax at time of inspection without passing assessment order

CST & VAT : Tamil Nadu VAT - Where Assessing Authority at time of inspection of business premises had collected two cheques of a certain amount from assessee, without assessment order or without giving an opportunity of personal hearing, there could not be collection of tax at time of inspection

HC sets aside order transferring jurisdiction of assessee as it was made without hearing to assessee

IT : Where revenue authorities transferred assessee's jurisdiction from one place to another without serving it a notice or affording an opportunity of hearing, order so passed being in violation of provisions of section 127(2), deserved to be set aside

AO to examine whether Co. was entitled to investment allowance on transfer of machinery under amalga

IT: Where, under scheme of arrangement, 9 out of 13 industrial units held by respondent company were transferred to three newly formed companies, scheme would be covered under expression 'otherwise transferred' in sub-section (5) of section 32A, hence benefit of investment allowance was rightly withdrawn

ITAT rejects entities with high related party transactions and functional differences in comparable

IT/ILT : Addition made to assessee's ALP in respect of rendering advisory and support services to its AE for development of business in petroleum, natural gas etc. was not sustainable as some of comparables selected by TPO were improper on account of related party transactions and functional difference etc.

Ex-parte assessment upheld as assessee didn't produce books even after getting several opportunities

CST & VAT : Odisha VAT - Where Assessing Officer initiated reassessment proceedings against assessee and issued on it a notice under section 43 and asked it to appear before him with books of account, since despite a number of opportunities being allowed to produce books of account assessee did not produce same, Assessing Officer was fully justified in passing assessment order ex parte

HC nods to appointment of Special Officer in lieu of provisional liquidator due to indication of rev

CL: Where there existed a prima facie case for winding up and strong case of indebtness of company which had been established and State was of view that if assets of company were properly managed, there could be a chance of revival, order appointing Official Liquidator as Special Officer in lieu of provisional liquidator was to be confirmed

HC upheld imposition of interest on HMT since it had deposited lower amount of tax

CST & VAT : CST - Where assessee, a public sector undertaking, had deposited tax on inter-State sale of tractors at rate of 2 per cent, whereas it was required to pay tax at rate of 4 per cent and thereupon Assessing Authority demanded additional tax and also levied interest upon assessee, levy of interest was justified

Issue as to availability of concessional rate of duty on imports isn't appealable before High Court

Excise & Customs : Issue 'whether benefit of concessional rate of duty as per notification is available to assessee and what will be rate of duty but for notification in question' is not appealable before High Court

Mistake apparent from records when income having been offered to tax wasn't considered in scrutiny a

IT/ILT: Where assessee himself had offered dividend income and paid tax thereon at rate of 15 per cent but Assessing Officer had not considered this income while making order under section 143(3), there was apparent mistake in assessment order which could be rectified under section 154

Interest paid after execution of slump sale and initiation of business operations couldn't be capita

IT : Where at time of acquisition of assets, assessee had no income to reduce its tax liability by way of enhanced WDV of assets, Assessing Officer was in error in invoking Explanation 3 to section 43 for disallowance of excess depreciation

No reassessment by AO solely on basis of ground raised in assessment without having any tangible mat

IT: Where Assessing Officer raised query with regard to bad debts claimed by assessee and after satisfaction passed original assessment order, re-assessment without recording any tangible material was unjustified

Issuance of credit note to purchaser due to excess billing couldn't partake the character of bad-deb

IT : Where assessee, having found that it had charged higher amount in respect of certain export, issued credit notes to purchasers and correspondingly revised debts, it could not be said to be a case of writing off of debt

AO couldn't presume suppression of sale consideration of property transferred merely on basis of DVO

IT : Where full value of consideration received as a result of transfer of a 'capital asset' is less than stamp value, then, such stamp value is to be substituted with full value of consideration

Addition of unexplained investment in building held as stock-in-trade would be allowed as deduction

IT : Where building was already sold by developer and alleged excess amount of investment on building was actually in nature of expenditure, net tax would be nil

Department must prove service of order to assessee by way of documentary evidence

Service Tax : Department must produce documents to prove service of orders, failing which assessee's claim that 'impugned order was not received until he applied for it' must be accepted

SEBI stipulates net worth of 2 crores for applicants seeking to act as trustees of Securitized debt

SEBI/INDIAN ACTS & RULES : SEBI (Public Offer and Listing of Securitised Debt Instruments) (Amendment) Regulations, 2015 – Amendment in Regulations 4, 11, Schedule III and Schedule V

Sahoo Committee recommends lifting of cap on ECBs and their hedging by all borrowers

FEMA/ILT : Comments Invited on Sahoo Committee's Report on Foreign Currency Borrowings

Receipts predominantly for use of property rather than incidental services taxable as income from ho

IT : Where shops situated in hotel premises which included commercial complex also, were let out on rent without any dominant incidental services as part of this arrangement for purposes of running offices and commercial establishments, it was not a case of anything more than simple letting out of property as emphasis was on property itself rather than services; rental income is to be taxed under the head 'income from house property'

Donation of educational trust not to be held as capitation fee without enquiring from students; sec.

IT : Denial of exemption u/s 11 to "capitation fees disguised as donations" has to be based on relevant material

Sahoo Committee recommends lifting of cap on ECBs and their hedging by all borrowers - Sahoo Committ

FEMA/ILT : Comments Invited on Sahoo Committee's Report on Foreign Currency Borrowings

High Court allows Sec. 54 relief on provisional booking of a house as it amounts to acquisition of '

IT: Even where assessee acquired property by provisional booking, he was eligible for section 54 deduction for cost of improvement along with cost of investment

SLP dismissed against HC's order denying sec. 154 rectification as re-computation of turnover requir

IT : SLP dismissed against order of High Court where it was held that since recomputation of turnover of assessee would not be confined to arithmetical or adding figures, rather explanation and answers would be required, said determination could not be undertaken under section 154

No reassessment on pretext of wrong allocation of exp. between units if sec. 80-IA relief was grante

IT: Assessing Officer having allowed assessee's claim for deduction under section 80-IA/80-IB in course of assessment under section 143(3), could not initiate reassessment proceedings merely on basis of change of opinion that there was inappropriate allocation of expenses between various units eligible for deduction

Section 50C won't apply to an encumbered property, says ITAT

IT : Where property held by assessee was encumbered and, thus, she was not absolute owner of property, while computing capital gain arising from transfer of such a property, market value of property as taken for purpose of payment of stamp duty could not be adopted as sale consideration by applying provisions of section 50C

SetCom’s order wasn’t to be interfered with due to error in computing penalty unless exercise of pow

IT: SLP dismissed against High Court ruling that even if there was an error of law or fact in calculating penalty by Settlement Commission, discretion exercised by it requires no interference unless exercise of power made by Settlement Commission was perverse requiring interference under article 226 of Constitution

Govt. exempts excise duty/ST on goods/services supplied against Duty Credit Scrips issued under new

E&C : Implementation of Merchandise Exports from India Scheme (MEIS) under Foreign Trade Policy 2015-2010

Order of SetCom need not be interfered even if there is error in computing penalty unless exercise o

IT: SLP dismissed against High Court ruling that even if there was an error of law or fact in calculating penalty by Settlement Commission, discretion exercised by it requires no interference unless exercise of power made by Settlement Commission was perverse requiring interference under article 226 of Constitution

Seller was liable to CST for inter-state supply of goods occurred due to lease agreement between buy

CST & VAT : CST - Where assessee, a manufacturer of gas cylinders, entered into an agreement of sale with one 'R' for supply of cylinders to it and further 'R' had a lease agreement with one 'L' for leasing of cylinders after procurement and assessee on basis of purchase order given by 'R' supplied cylinders to 'L', transaction of supply of cylinders was in nature of inter-State sale and not inter-State lease

Tribunal has to follow guidelines laid out by HC for earlier period while passing order for later pe

Cenvat Credit : Where, in passing orders for subsequent period, adjudicating authority did not follow guidelines set by High Court for disposal of refund claim in respect of earlier period, matter was remanded back to adjudicating authority

High Court upheld sec. 69 additions as assessee failed to explain source of investment

IT : In view of failure of assessee to explain source of investment for earning certain undisclosed income, reasonable addition suggested by revenue on account of unexplained investment on estimate basis was to be confirmed

Provisional booking of a house property is a 'capital asset'; sum incurred on its improvement is ded

IT: Even where assessee acquired property by provisional booking, he was eligible for section 54 deduction for cost of improvement along with cost of investment

HC rejects creditor's objection to amalgamation scheme as there was unequivocal promise to pay off d

CL : Where some unsecured creditors of petitioner-company challenged proposed scheme of amalgamation on account of non-convening of meeting of creditors, in view of fact that debts belonging to them were doubtful and, moreover, there was unequivocal promise to pay debts if found to be true and binding on petitioner, objection raised deserved to be set aside

Ocean freights are not includible in value of 'logistics support services' or 'freight forwarding' s

Service Tax : Prima facie, ocean freight is not includible in value of logistics support service or 'freight forwarding' services falling under Business Support Services, provided to exporters/importers located in India

TP adjustment has to be made only for international transaction with AE and not with unrelated parti

IT/ILT: Determination of transfer pricing adjustment should be restricted to value of international transactions carried out by assessee with its associated enterprises and not to unrelated parties

No ST could be levied on surplus arising out of distribution of consideration which was already char

Service Tax : When assessee-transporter had paid service tax on entire consideration received from all customers, no service tax could not be demanded on surplus arising out of distribution of said consideration to various parties

Interest-free loan taken from tenant isn't includible in 'Annual Letting Value' of property on notio

IT : Where assessee let out its hotel premises, in view of fact that apart from rent assessee also received interest free loan from tenant which had no nexus with leasing of property, notional interest on said loan could not be included while computing ALV of property

Assessee can't claim interest on refund if there is no delay on part of department in granting refun

IT : Where there was no delay on part of department in making refund after furnishing indemnity bond by assessee, no interest on refund was allowable

Doc seized during search not to be relied upon by AO to make additions when doc was undated and unsi

IT : Where Assessing Officer made addition to assessee's income on basis of a document seized in course of search, in view of fact that document seized was both undated and unsigned and even taken at face value did not lead to further enquiry on behalf of Assessing Officer, impugned order of Tribunal deleting addition was to be confirmed

Tax Recovery Officer couldn't pass arrest order against petition for non-submission of proposal to p

SEBI : Where in recovery proceedings initiated by SEBI, petitioner failed to furnish proposal of payment of dues, detention and arrest order passed by Tax Recovery Officer against petitioner was arbitrary and illegal

Pakistan Exports Items Worth Rs 446 Million To India Via Wagha In Second Half Of March

Pakistan has exported items worth Rs 446 million to India via Wagha border trade route between March 16 and March 31.As per the documents available with Customs Today, Pakistan exported fruits, salt, cement, gypsum, glass and aluminium ores, woven fabrics, scrap rubber, seeds and other items to India.

Pakistan has exported 2,602 metric tonnes of fruits (HS Code 804-1020) to India worth Rs 123 million.

On the other hand, perfumery plants and plant seeds worth Rs 132 million have been exported, while vegetable extracts worth Rs 66 million were also exported.

According to details, Pakistan exported 39,211kg gypsum worth Rs 61 million to India.

Besides, Pakistan exported Portland cement, aluminous cement, slag cement, super-sulphate cement and similar hydraulic cements and clinker worth Rs 67 million to India from March 16 to March 31, 2015.

Pakistan also exported carbonates, hydrogen peroxide, limestone and glass to India.

As a whole, Pakistan exported items worth Rs 446 million to India via Wagha border Lahore.

Pakistani exports to India through Wagha border have increased while import of vegetables from India is decreasing these days.

The current season is not favourable for vegetables’ import so Pakistan’s largest import from India is likely to fall in the upcoming months.

Source:-customstoday.com.pk

Domestic Cashew Market Is Growing Faster Than Exports

Increasing domestic cashew consumption is affecting India's exports of the nut that is a rich source of anti-aging agents. With local demand increasing 15% annually, consumption in India has overtaken that of the US and Europe, the principal buyers of Indian cashew.

"The annual Indian consumption is hovering around 2 lakh tonne compared with about 1.3 lakh tonne in the US and 80,000 tonne in Europe," said Pankaj N Sampat, director of Mumbai-based Samsons Traders. India's exports have been around 1.2 lakh tonne a year.

With cashew's popularity increasing, its processing, which was limited to the four southern states, is spreading to other places. "Cashew has seen several new origins like Gujarat, West Bengal and Maharashtra in the past few years," said K Prakash Rao, managing partner of Kalbavi Cashews. This has increased the number of processors, putting pressure on the availability for processing systems, said Rao. The booming local market has hindered the growth of exports, he added. Cashew is a major foreign exchange earner for India.

Though official figures are yet to come out, value of cashew exports in 2014-15 was estimated to have surpassed Rs 5,000 crore, achieved in the previous year. Till the end of February 2015, cashew worth Rs 4,986 crore was exported.

Vietnam, a major producer, exports almost the entire production as its domestic consumption is marginal.The problems confronted by the export market - like the high price of imported raw cashew nuts, rising cost of production and a lower price in the world market - have also worked in favour of domestic consumption.

Source:- economictimes.indiatimes.com

India Gold Premiums Jump Despite Surging Imports

The gold premiums in Mumbai climbed higher during the week. The gold which had traded at a premium of as low as $1 during the previous week has now increased to $2-$3 per ounce over London spot prices. This is despite a huge rise in gold imports by the country during the past month.

The official gold import figure for the month of March is yet to be announced. According to rough estimates provided by the Ministry of Commerce and Industry, the monthly imports might have totaled nearly 100 tonnes during the month. However, importers claim that actual imports may have been even higher at around 120 tonnes. One has to wait until the release of official government data in mid-April.

Meantime, the Indian government announced relief packages to farmers affected by hailstorms in Northern and Western parts of the country. This should augur well for gold demand in the country during this month. Moreover, the country is about to enter into monsoon season, which according to Met department predictions must be ‘normal’ to ‘good’. Incidentally, farmers totaling nearly 120 million in number account for 60% of the annual domestic gold consumption by India.

The gold demand is likely to climb higher ahead of ‘Akshaya Tritiya’ festival. However, gold prices above Rs 27,000 per 10 gram are likely to dampen the festive gold sales in the country.

Elsewhere, spot premiums at Chinese Shanghai Gold Exchange remained at $3.50 per ounce over spot prices on 1 kilogram bars. The premiums in Hong Kong hovered around $1.50 per ounce. Premiums in Singapore remained at $1.50 per ounce during the previous week. Bangkok premiums went marginally higher to $2 per ounce from $1.50 per ounce during the prior week. Meantime, Dubai gold premiums dropped to $0.25 cents per ounce.

Source:metal.com

Rupee Trading Marginally Higher At 62.22 Vs Dollar

The rupee was trading marginally higher against the US dollar in late afternoon trade at the Interbank Foreign Exchange after rating agency Moody’s upgraded India’s outlook from stable to positive.

At 4.07 pm, the rupee was trading at 62.22 against the previous close of 62.24. During the day, the rupee moved between 62.29 and 62.15.

Besides, selling of the American currency by exporters and banks and a higher opening in domestic stock market supported the rupee but the dollar’s strength against other currencies overseas limited the gains, forex dealers said.

The rupee had ended marginally higher by two paise at 62.24 against the American currency in yesterday’s trade due to weakness of the greenback in international markets.

Source:thehindubusinessline.com

Limitation period to revise an order won't begin from date of reassessment if issue isn't subject to

IT : For issues which were not subject of reopening, period of limitation for revision would commence from date of order of assessment and not reassessment

HC directs Chief CIT to examine whether assessee engaged in teaching music/dance is educational inst

IT : HC directs Chief CIT to examine whether assessee engaged in teaching music/dance is educational institution

Govt. constitutes 'Information Security Committee' in CBDT

IT/ILT : Constitution of An Information Security Committee (ISC) – Broad Responsibilities of Said Committee

SEBI hikes limit for USD-INR currency derivative contract beyond which proof of exposure is to be es

SEBI : Revision of Limits Relating to Requirement of Underlying Exposure for Currency Derivatives Contracts

RBI directs authorised dealer banks to follow revised FDI limit in insurance sector

FEMA/ILT : Foreign Direct Investment in India – Review of FDI Policy – Sector Specific Conditions in Insurance Sector

Assessee has to collect TCS on sale of imported timber to dealers

IT : Where assessee was engaged in importing timber and thereupon selling it to registered dealers in country, assessee was required to collect tax at source from purchasers/dealers in terms of section 206C at time of sale

Voluntary disallowance by assessee under Sec. 14A couldn't be enhanced by AO without showing any rea

IT: Where Assessing Officer could not found any deficiency in assessee's books of account and could not prove that assessee's computation of section 14A disallowance for earning exempt income was incorrect, assessee's claim was to be allowed

VAT collected from buyer is includible in taxable turnover of assessee if VAT isn't shown separately

CST & VAT: Karnataka VAT - Where assessee sold goods and tax invoice issued to purchasing dealer showed price of goods inclusive of all taxes and it did not contain details such as rate and amount of tax charged, assessee was not entitled to deduction of tax amount as contemplated under rule 3(2)(h) of VAT Rules

Non-refundable membership fees received from members to be apportioned and taxed over period of memb

IT : When services were to be rendered for a period of years, both revenue and expenditure were to be shown proportionate to degree of completion of service

Plastic Pouch development exp. is in nature of scientific research exp; allowable under Sec. 35

IT : Plastic pouch development expenses being in nature of scientific research or acquisition of patent rights or copy right would come under purview of section 35 or 35A; said expenses were not allowable under section 37(1)

No disallowance of loss claimed in return filed u/s 153A after the due date prescribed under sec. 13

IT : Raw materials purchased by assessee for first time production would be allowable as revenue expenditure

'Impose hefty penalty on listed Cos for non-appointment of women director' - SEBI's direction to Sto

SEBI : Fine structure for non-compliance with the requirement of clause 49(ii)(a)(1) of listing agreement

CARO, 2003 not applicable for F.Y 2014-15, MCA likely to notify smaller version of CARO soon - ICAI

COMPANIES ACT, 1956/COMPANIES ACT, 2013/AAA/INDIAN ACTS & RULES : Section 143 of the Companies Act, 2013 - Powers and duties of auditors and auditing standards- Companies (Auditor's Report) Order, 2003 ceased to have effect from 1-4-2014.

No TP adjustment by ignoring transaction in entirety and by picking up those which are in revenue's

IT/ILT : Where TPO made addition to assessee's ALP in respect of purchase of raw material from AE located abroad by applying internal CUP method, matter was to be remanded back for disposal afresh with a direction that transaction of import from AEs was to be considered in entirety to calculate amount of adjustment instead of only those common products whereby import price from AEs was higher vis-a-vis purchase price from local third parties

No disallowance of loss claimed in return field u/s 153A after the due date prescribed under sec. 13

IT : Raw materials purchased by assessee for first time production would be allowable as revenue expenditure

Amount paid for using know-how to produce hydro-power equipment is taxable as royalty: High Court

IT/ILT : Where assessee, an Austria based company, entered into agreement with Indian company for furnishing know-how and technical assistance for producing hydro power equipment, amount received for right to use technical know-how would be taxable in India as 'royalty' whereas amount received for rendering technical services would be taxable to extent it is attributable to activities actually performed in India

Right to appeal under FEMA against order of Tribunal is also available even against its interim orde

FEMA : Where proceedings by way of a show cause notice were initiated against petitioners during sun-set period, provisions of FERA can be invoked

Service provider would get refund of wrongly paid ST when service receiver certifies that he has not

Service Tax : Where invoice does not show service tax and service recipient certifies that he did not bear/pay service tax, test of unjust enrichment is passed by service provider and he is entitled to refund of service tax wrongly paid

RBI eases lending norms for 'NBFC-Micro Finance Institutions'

NBFCs : Modification in Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs) Directions

8L Cotton Bales Exported From India In February

During February, fibre (cotton, ASF, PSF, VSF and wool) exports stood at 156 million kg, worth US$194 million or INR1,190 crore. Cotton accounted more than 85 per cent of all types of fibre exported during the month at 135 million kg or 800,000 bales worth US$164 million. About 21 million kg of MMF were also exported worth US$30 million.

Bangladesh, China and Vietnam continued as the largest importers of fibre (cotton plus MMF) and together accounted for 76 per cent of all cotton export in February. USA was the largest importer of PSF during the month while China was the major importer of VSF, in similar comparison. Iran was the dominant buyer of ASF. The next major was Vietnam.

Price wise, unit value realisation on ASF export was close to US$2.50 per kg while cotton fetched over US$1.20 a kg. PSF export value averaged US$1.12 a kg while VSF was shipped at US$1.57 per kg.

Source:ccfgroup.com

Philips To Increase Export Of Medical Equipment From India

Medical equipment major Philips India Ltd is targeting the domestic and the overseas markets for its new digital X-ray machine, said a senior official here on Wednesday.

Speaking to reporters after launching the company's latest digital mobile X-ray unit, Rekha Ranganathan, vice president and general manager, mobile surgery, IXR, said: "The new product will not only be marketed in India but also shipped out.

"The product has necessary quality certification like the internationally accepted C-marking and other certifications," added Radhakrishnan Kodakkal, senior director, research and development, Philips Healthcare.

According to Ranganathan, who also heads the Healthcare Innovation Centre (HIC) here, the new machine called MobileDiagnost Opta was designed, developed and made at the company's Healthcare Innovation Centre (HIC) here.

She said the centre can make around 100 units a month but declined to reveal the equipment's price, saying that it would be competitive.

Ranganathan said the digital image generated by the X-ray unit, its compactness, ease of mobility in restricted places like intensive care units and operation theatres were some of the innovate features.

There was no need for the conventional X-ray film. She said the company was gradually increasing the local content in the machines made at HIC by developing suppliers. However critical components for X-ray machines were imported as there were no domestic suppliers, Kodakkal said.

Declining to reveal any figures - investment in the HIC and its annual capacity - Ranganathan said the centre would play a critical role in supporting Philips' local and global strategy in the image guided therapy.

She said the global leadership team for mobile surgery being based in Pune, HIC will take the lead in delivering innovations for both the Indian and global markets.

According to Ranganathan, the HIC has more than 400 employees and has shipped products to more than 90 countries. She said the centre had launched five products and filed four patents. Ranganathan said Philips India gets more than 50 percent of its revenue from the healthcare vertical. The balance comes from consumer lifestyle and lighting products.

Speaking about Philips India's market position in the medical equipment market, Sameer Garde, president South Asia, Philips Healthcare, said the company gained market share in 2014 when the overall market remained flat.

According to him, India was one of the top markets for the group in the case of healthcare equipments. Garde said the company leads the market in the MRI (magnetic resonance imaging), critical care, catheterization lab and homecare equipment. The company sees good growth in tier II and III cities.

Source:newkerala.com

Flooring/tile terracing inclusive of construction is eligible for abatement in respect of constructi

Service Tax : Where assessee was providing construction services (inclusive of completion and finishing) and scope thereof was 'plinth levelling, slab casting, plaster work (inner & outer), flooring and tiles terracing', said services were eligible for abatement in respect of construction services

Directors not liable for tax dues of Co. if AO failed to show that dues were not recoverable from Co

IT : Unless it was shown that it was not possible to recover tax due from said company, no liability could be fixed on assessee-director of said company to pay due tax

India Could Consider White Sugar Export Incentive - Minister

India could consider giving cash-strapped sugar companies an incentive to export white, or refined, sugar as long as mills agree to pay dues they owe to millions of cane growers, Food Minister Ram Vilas Paswan said on Wednesday.

"The government is willing to consider the demand of the industry so that mills' financials do not worsen, but we need an assurance that cane arrears to farmers are cleared as early as possible," Paswan told Reuters.

Five straight years of surplus output has hammered local sugar prices, hitting mills' financial health to an extent that they now owe more than $3 billion to cane growers. Mills also complain that higher government-set cane prices have destroyed their profit margins.

"We have to strike a balance to protect farmers' interests and ensure that cane crushing remains viable for mills. I'll separately talk to farmers and mills to ensure that," Paswan said.

Sugar companies owe 192 billion rupees ($3.1 billion) to cane growers, with the top two producing states of Maharashtra and Uttar Pradesh accounting for more than three-fifths of the total arrears.

Source:maktoob.news.yahoo.com

Fy15 Soybean Meal Exports At 6.46 Lakh Tonnes, Down 77.25 Per Cent

India exported 6.46 lakh tonnes of soybean meal in FY15, registering a decline of 77.25% over the previous financial year (2013-14), when soybean meal exports were 28.41 lakh tonnes. The figures were released by Soybean Processors Association of India (SOPA) on Wednesday.

Exports of soybean meal during March 2015 were 46,670 tonnes compared to 2,32,176 tonnes in March 2014, showing a decline of 80%.

"With the increase in export incentives in the new foreign trade policy under Merchandise Exports from India Scheme (MEIS), we are hopeful that we will be able to regain some of the lost markets and our exports of soybean meal in 2015-16 will increase substantially," said Davish Jain, chairman, SOPA.

During the first half of the current Oil year, that is, October 2014 to March 2015, total exports are 5,49,627 tonnes as against 19,64,581 tonnes last year, showing a decrease of 72%.

Source:economictimes.indiatimes.com

Gold and silver rates as on March 31, 2015

IT/ILT : Gold and Silver Rates as on 31st March, 2015

Application of income by trust for charitable purposes outside India doesn't lead to denial of Sec.

IT : Registration u/s 12AA cannot be refused to a trust which applies its income for charitable purposes outside India

IRDA prescribes guidelines for establishment of 'IFSC Insurance Office' in SEZs

INSURANCE/INDIAN ACTS & RULES : IRDAI (International Financial Service Centre) Guidelines, 2015

Units should be custom bonded is a pre-requisite to claim exemption for custom duty and not for sec.

IT : Customs bonding is not a requirement or a condition precedent for granting exemption under section 10A

Mere establishment of subsidiary in other country won't be deemed as PE of foreign Co.

IT/ILT : Whether establishing a subsidiary in other treaty country would not result in creating and establishing a PE of foreign holding company in said treaty country

Mere non-verifiability of creditors doesn't indicate that they are bogus if purchases are genuine

IT: Where Assessing Officer had drawn an adverse conclusion only on account of non-verifiability of sundry creditors but there being no dispute as regards purchases, and trading results having been accepted, addition made under section 68 was not sustainable

Time limit for refund of duty paid on finalization of provisional assessment starts from date of app

Excise & Customs : Where, on finalization of provisional assessment, assessee paid differential duty and said duty becomes refundable due to appellate order in favour of assessee, time-limit for filing refund claim would start from date of appellate order

Failure to consider satisfaction recorded under sec. 158BD is a mistake apparent from record

IT : There was an error apparent on record in Tribunal's order where Tribunal had not considered evidence of satisfaction recorded under section 158BD