Now banks can issue FDs exceeding 15 lakhs without option of pre-mature withdrawal at differential i

BANKING : Interest Rates on Deposits

HC denied to condone delay in filing appeal by a Co. as director didn't give true facts about servic

IT : Where assessee-company filed contradictory affidavits and had not given true and correct facts about service of order of Tribunal, delay in filing appeal could not be condoned

Fee paid to electricity board for using distribution network isn't FTS as it doesn't involve human i

IT : Where assessee paid charges to State power utility for using its distribution network to sell energy generated and same did not involve any human intervention, assessee was not required to deduct TDS under section 194J

Filing of return by power generating unit has to be treated as an exercise of option by it to claim

IT : Filing of return of income within prescribed time under section 139(1) along with audit report has to be treated as an option exercised by assessee in terms of second proviso to rule 5(1A) for claiming depreciation

Sec. 11AA interest on delayed payment of duty is prospective in nature; not applicable prior to Apri

Central Excise : In case of differential duty arising due to price escala-tion/reclassification, due date for payment of duty is determined with reference to 'date of supplementary invoice'; hence, no interest can be demanded on differential duty under rule 173G of Central Excise Rules, 1944 with reference to 'date of clearance' of goods

Reimbursement of exp. to foreign AE was taxable if no nexus was found between services rendered and

IT/ILT : Where assessee-company, a tax resident of UK, had received certain sum from a foreign company which was engaged in exploration and production of oil in oil fields of India and claimed same to be reimbursement of actual cost, but could not establish one to one nexus between services rendered to said company and alleged reimbursement, it would be fair to tax assessee's receipts under section 44BB

Sec. 80-IA: Assessee can't deduct brought forward depreciation from Gross Total Income instead of bu

IT : Where assessee deducted brought forward unabsorbed depreciation from gross total income and claimed deduction, assessee's manner of computing deduction was incorrect and same was to be deducted only from business income

Govt Likely To Increase Import Duty On Sugar

India, the world’s second largest sugar producer, may hike the import duty on sugar to help its distressed cane farmers and mills that are reeling under the effect of low domestic and international prices.

The food ministry will push for a duty hike from 25% to 40%, said Ram Vilas Paswan, minister of consumer affairs, food and public distribution, on Wednesday. The minister was speaking after meeting farmers’ representatives from the 13 cane-growing states, a day ahead of his meeting with the chief ministers from these states.

A rise in the import duty will make imports uneconomical for sugar refiners despite a plunge in global prices.

The global sugar price index averaged 187.9 points in March —a sharp decline of 9.2% from February and the lowest since February 2009, according to the Food and Agriculture Organization (FAO) of the United Nations (UN). This was due to improved crop prospects globally, the UN body said earlier this month.

The domestic wholesale sugar price index was 175.3 in March, almost 10% lower than wholesale prices in October 2014 and 5.6% lower than the December 2009 prices.

India is also the world’s biggest sugar consumer, and currently, with the import duty at 25%, does not import sugar, said food secretary Sudhir Kumar on Wednesday.

“Sugarcane farmers are facing problems as mills owe them Rs.19,377 crore in dues from this season. We heard the farmers’ concerns today and will be meeting chief ministers from the 13 cane-growing states of the country tomorrow,” said Paswan. The mills also owe farmers an additional Rs.1,690 crore in dues from the last sugar season.

Farmers’ representatives have demanded the creation of a central buffer stock of 3 million tonnes (mt), government control on the quantity released in the market by the mills, support for the ethanol production, higher import duties and direct government support to farmers, said the minister. Paswan said that he would decide on the demands after hearing the states.

Sugar production in India is estimated at 26.5 mt in 2014-15, up from 24.4 mt in the previous year. After meeting the domestic demand, India is expected to have a closing stock of 9.5 mt by end of September. The dues to cane farmers are at a record high this year when compared to peak dues (as on March) of Rs.13,124 crore in 2013-14, Rs.12,702 crore in 2012-13, and Rs.8,577 crore in 2011-12.

In February, the government approved export subsidy on raw sugar to help mills cut distress sales and also clear the farmers’ dues. The mills were allowed to export 1.4 mt of raw sugar at a subsidy of Rs.4,000 a tonne.

“The decision on export subsidies came late. By February, international prices had crashed and mills could export only about 0.2 mt of raw sugar with the subsidy scheme,” said Abinash Verma, director general of Indian Sugar Mills Association, an industry lobby group.

“India is not importing sugar at present but a hike in import duty will help the domestic industry in the long run. The immediate need is to boost the domestic prices, and this can be achieved if the government steps in to purchase about 2.5 mt of sugar,” he added.

The large dues to cane growers comes in a crop season where farm incomes are under severe stress due to the recent spate of unseasonal rains, last year’s deficit monsoon and declining prices of key crops such as rice, wheat and cotton.

Source:livemint.com

India: Grapes Exports Fell By 30%

After a deceptive good start, grape exports to Europe this year have dwindled by nearly 30 per cent compared to last year. The loss in exports was not only in quantity, but also in prices, due to the fall of Euro and Rouble currencies.

Though statistics of exports to Russia, Bangladesh and China are not available, the percentage is less, said Jagannath Khapare, president of Grape Exporters Association of India (GEAI).

“The Russian market was available, but it was not viable to export so the percentage came down. This year Andhra Pradesh and Karnataka did not export,” Mr Khapare said on Tuesday.

“This was the worst season of my life. Overall, the grape farmer has been severely affected by nature, politics and economics,” said Draksha Bagiatdar Sangh (grape growers’ association) chairman Kailas Bhosale.

“Last year we exported about 10,000 shipping containers or 1,92,000 tonnes to European markets. This year, till now we have exported 35,000 tonnes.

We have also had to cope with the fall in the prices of Euro and Rouble. This fall in currency contributed to nearly 30 per cent loss in prices,” Mr Bhosale added.

In India, the grape season and exports began early — end of November last year, while the usual dates are from January 15 to first week of February. Indian grapes have a high export market because grapes are not available from any country early in the year.

So far, most of the vineyards in Nashik, Sangli, Solapur and Pune have already been harvested. So any exports during this week will not make much of a difference in export quantity. Most of the exports of around 32,000 tonnes this year are from Nashik, while other districts contributed about 3,000 tonnes.

In January this year, Mr Khapare had said that despite inclement weather which affected vineyards, they were projecting grape exports to touch 2,00,000 tonnes. However, hailstorms took a toll on the crop later and most of the vineyards on the brink of harvest were shredded.

Source:freshplaza.com

India's Vegetable Oil Import Increased By 24% In Last Five Months: Solvent Extractors' Association Of India

The overall import of vegetable oils during last five months, from November 2014 to March 2015, increased by 24% due to zero export duty on palm oil by Indonesia and Malaysia, said industry body, the Solvent Extractors' Association of India (SEA).

According to SEA, Import of vegetable oils during March 2015 is reported at 1,062,031 tons compared to 835,424 tons in March 2014, consisting of 1,053,034 tons of edible oils and 8,997 tons of non-edible oils, up by 27%. The overall import of vegetable oils during Nov.'14 to Mar.'15 is reported at 5,353,184 tons compared to 4,332,231 tons i.e. up by 24%.

Along with the nil export duty on palm products by Indonesia and Malaysia and reduced demand of crude palm oil (CPO) for bio diesel, pushed the export of palm products to India to reduce burgeoning stock held by the exporting countries. "Also, due to high prices of soybean and lesser realisation for oil and soybean meal in export market, resulted in lower crushing and lesser oil availability in domestic market, resulted in to higher import," stated the SEA release.

Import of refined oil's share reduced to 6% from 19% and reported at 303,066 tons compared to 817,615 tons during the same period of last year. Share of imported crude oil jumped to 94% from 81% and reported at 4,948,843 tons compared to 3,436,042 tons during the same period of last year, thanks to nil export duty on RBD Palmolein and CPO by exporting countries. "From April 1, Malaysia has imposed 4.5% export duty on CPO, while Indonesia shortly plan to impose export levies on CPO and RBD Palmolein. This will again change the ratio of refined oil as against crude oil imports," stated the SEA release.

Source:economictimes.indiatimes.com

Money Decides Transfers And Postings In Customs, Central Excise Depts

There is huge corruption in transfers and posting, largely at superintendent and inspector level, in the departments under Central Board of Excise and Customs (CBEC), apex policy making body for indirect taxes.

The senior IRS officers have nurtured such type of corrupt practices and it has gained alarming proportions after CBI arrest former CBEC Chairman B P Verma in 2001 on charges of bribery, corruption, possessing assets beyond known sources of his income.

Senior IRS officers takes money for transferring Superintendents and Inspectors of customs, central excise and service tax department under CBEC through middleman.

Superintendents and inspectors pay money to middlemen to secure transfers to preferred locations, i.e, sensitive postings like LCS (Land Customs Station), ICD (Inland Container Depot), Preventive, Range, Sector and Audit.

A sensitive post means, any position within the department whose occupant could cause adverse effect to the integrity and functioning of the department by virtue of the nature of his/her responsibility but in central Excise, customs and service tax departments sensitive postings mean, post to earn money (bribe).

A superintendent has to pay Rs 10-2 lakh for sensitive posting, depending on bribe earning position of the posting place, inspector has to pay Rs 8-1.5 lakh for same position,” said an official, who asked not to be identified.

“A clerk to a former customs commissioner in Lucknow, was a prominent collection agent. Anybody who gave money to that agent got the posting of his choice,” the official also said.

The role of that clerk is being played by the superintendents, junior IRS officers of the departments across the India. In these departments, it is sure that officers don’t follow race, creed or religion but they only follow money (bribe).

The bribe has destroyed the basic fabric of the administration in customs, central excise and service tax departments, because officials get into a position by bribing and also stay there by bribing not for their integrity and knowledge. There is money in postings, transfers and stopping transfers.

“Only the level varies depending on the capacity of senior IRS officers to demand and superintendents/inspectors to pay. When an official pays money to get posting, his or her effort is focused only on collecting more and more bribe from the public,” said the official, who asked not to be identified because he was not authorized to discuss the matter.

“Money officials seem to be benefitting from bribe in transfers and postings in customs, central excise and service tax departments,” he added.

“Since those senior IRS officers sitting at the postings decision-making, take money, officials below also get money 100 times of giving money for posting through million times of revenue evasion,” the official revealed about revenue evasion.

The business of transfers and postings will start in this month in the departments under CBEC, money giving-taking process has been initiated.

The Finance Minister Arun Jaitley should take stringent action against such type of the business to curb corruption and to fellow Prime Minister Narendra Modi’s policy ‘zero tolerance’ against corruption.

Source:tkbsen.in

Rupee Rises After 2 Sessions; Ends 15 Paise Higher Vs Dollar

The rupee snapped its two-day losing streak against the American currency, firming up by 15 paise to close at 62.36 per dollar on fresh selling by banks and exporters on the back of lower dollar in the overseas markets.

The rupee opened sharply higher at 62.38 per dollar against the last closing level of 62.51 at the Interbank Foreign Exchange (Forex) market and firmed up further to close at 62.36 per dollar, showing a gain of 15 paise or 0.24 per cent from its Monday's close.

The domestic currency had dropped by 27 paise or 0.43 per cent in the previous two trading sessions. It hovered in a range of 62.3600 per dollar and 62.4450 during the day. Good capital inflows and lower dollar overseas mainly boosted the rupee value, a dealer said.

Foreign portfolio investors bought shares worth Rs 417.01 crore on Monday, as per provisional data. On the global front, in New York the dollar snapped its six-straight session gains against the basket of currencies in early trade, after retail sales data failed to meet market expectations.

The dollar index, a gauge of six major global rivals, was up by 0.40 per cent today. However, the dollar was up against the yen in Asian trade today, with dip buying supporting the greenback, while slower growth in China weighed on the Australian dollar.

Source:timesofindia.indiatimes.com

Income from letting out of building alongwith other facility is taxable as business income if both a

IT : Where facilities given by assessee along with let out buildings/commercial establishments were inseparable and entire construction and interiors of buildings was done with sole intention of carrying on business, entire income would be assessed as 'business income'

Sum incurred in organizing a sports event to promote brand of foreign AE is an international transac

IT/ILT : Where expenditure incurred by sports channel owned by Mauritian AE for organizing brand promotional sport event in UAE was reimbursed by Indian assessee, same would fall under ambit of international transaction and was to be dealt under provisions of transfer pricing

CLB has no jurisdiction to direct SEBI to exercise its discretion in a particular way during an arra

CL: Jurisdiction of company court under section 391(2) read with section 394 is limited to ensuring statutory compliance in decision making process relating to a scheme and it does not extend to directing autonomous authorities such as SEBI and Stock exchanges to exercise their discretion in a particular way

Sales tax refund granted in appeal is also eligible for interest

CST & VAT : Gujarat Sales Tax/VAT : When assessment order is modified in appeal, refund granted by appellate order can be said to be granted by 'assessment order modified in appeal' and is therefore, assessee is entitled to interest thereon

Service provider and service receiver must act in harmony to claim wrongly paid service tax

Service Tax : Where service tax has been wrongly paid on a non-taxable service, refund claim thereof must be filed by service provider and service recipient should co-operate in service provider filing refund claim

Exp. incurred on issue of shares to set-up a manufacturing unit couldn't be capitalized; deductible

IT: Depreciation is not allowable on capitalised expenditure on issue of shares; such expenditure would fall within provision of section 35D

No penalty on assessee without considering his explanation, even though he had accepted additions ma

IT : Where addition was made an account of non-existing liabilities which was accepted by assessee only to avoid litigation, penalty imposed solely on basis of said addition overlooking details and explanation filed by assessee could not be sustained

Sum paid to manufacture batteries of 'Kodak Camera' without supplying raw materials wasn't liable to

IT : Transaction between assessee and manufacturer for manufacturing of specific batteries with name of assessee printed on cell, was to be treated as an 'agreement of purchase' which would not fall under provisions of section 194C

Imparting computer education in schools including leasing of computer hardware on BOOT basis is a wo

CST & VAT : Andhra Pradesh VAT - Where assessee was engaged in business of computer education and training and it entered into a contract with Government of Andhra Pradesh for imparting computer education in High Schools including leasing of computer hardware, software and connected accessories on BOOT basis, contract was a works contract

Allotment of shares in consideration to supply of medical equipment under an arrangement with suppli

CL: Where directors of company had an arrangement of allotment of shares against value of medical equipment supplied at inception of company, allotment of shares was perfectly valid

CBDT doubles exemption limit of conveyance allowance; revised limit notified

IT : Income-Tax (Sixth Amendment) Rules, 2015 – Amendment in Rule 2BB

No TDS on additional payment made due to Forex fluctuation if tax was deducted at the time of credit

IT/ILT: Provisions of section 195 provide that once tax is deducted at source at the time of credit of payment, there can be no question of deduction of tax at source on full or in part at the time of payment. Once tax was deducted at the first stage when the amount of income was credited to the account of payee, which was done by converting foreign currency into TT buying rate on that particular date, then the assessee could not be called upon to deduct tax at source on the additional liability

Interest earned by society on short-term deposits in course of providing credit facilities was deduc

IT : Where co-operative society was engaged in business of providing credit facilities to its members, deposited excess amount for short term in bank, interest earned was entitled to be deducted under section 80P

No additions by AO relying upon report of Valuation Officer in absence of any material indicating un

IT: Where due disclosure of acquisition of properties had been made in course of regular assessments by assessee, Assessing Officer in block assessment could not have brought to tax said amounts based upon DVO's report in absence of any material pointing to under valuation

No exemption on sale of 'jute canvas cloth' under Uttar Pradesh Trade Tax Act, 1948

CST & VAT: U.P. VAT - Where assessee dealt in jute canvas cloth and it claimed exemption from payment of tax on sale of same, in view of entry No. 53 of notification dated 31-1-1985 issued under section 4(a), sale of jute canvas cloth was not exempted from payment of tax

In deciding stay application Tribunal to consider assessee's plea of wrong invocation of extended pe

Service Tax : Where, in stay application, assessee had argued that there was no express finding in adjudication order as to circumstances warranting extended period, Tribunal must deal with assessee's said contention on time-bar

ITAT directs AO to re-determine whether sum received by foreign Co. was reimbursement or FTS

IT/ILT: Matter be readjudicated to determine whether sum received by a foreign company from Indian subsidiary was reimbursement of expenses or fee for technical services as per article 13 of DTAA between India and UK in absence of relevant agreement

HC lambasts AO for making suo-motu rectification when superior authority had passed order in favour

IT : Assessing Officer could not pass order suo motu under section 154 levying interest under sections 234B and 234C when superior authority had already passed an order against levy of interest

No deemed income of NR u/s 9 when it had established Liaison office in India to purchase goods for e

IT/ILT: Activity of assessee-liaison office of a foreign company being confined to purchase of goods in India for purpose of export, fall under purview of Explanation 1(b) to section 9(1)(i) and, thus, not exigible to tax

A software product Company isn't comparable to software development service provider

IT/ILT : A software product company cannot be regarded as a comparable to a company engaged in software development services

ST is leviable on entire consideration received from manpower supply services and not merely on serv

Service Tax : In case of manpower supply services, prima facie, service tax is leviable on entire consideration charged from service recipient and not merely service charges

'Agricultural tree climbing apparatus unipole manually operated' is exempt from Karnataka VAT

CST & VAT : Karnataka VAT - Product 'Agricultural tree climbing apparatus - Unipole - manually operated' is an agricultural implement falling under Serial No. 1 of First Schedule to VAT Act and is exempted from tax

Overdue sum towards maintenance of asset wouldn't be treated as overriding preferential payments

CL : Amounts paid or payable towards maintenance and other allied expenses, necessary to keep assets in good repair or protect them, cannot be characterized as secured debts so as to be covered by section 529A; they are undoubtedly expenses within meaning of section 476

Firm couldn't be assessed for transfer of tenancy rights vested in individual partners of firm

IT : Where on examination of evidence it was clear that tenancy of rental premises belonged to individual partners and not to assessee-firm and consideration was received by partners in individual capacity, addition made in income of assessee-firm was not justified

HC allowed revenue exp. even if it was claimed for first time in course in assessment proceedings

IT: Claim of revenue expenditure made for first time in course of assessment proceeding without revising return of income, was allowable under section 37(1)

Sum paid by trust to other trusts registered either u/s 12AA or u/s 10(23C) won't be held as applica

IT : Where assessee trusts advanced loan to other trusts which exceeded 15 per cent of their income, claim of exemption was to be decided in view of Explanation to section 11(2) and section 11(3)(d)

SEBI prescribes mechanism for tendering of shares via Stock exchanges pursuant to takeovers, buy bac

SEBI : Mechanism for Acquisition of Shares through Stock Exchange Pursuant to Tender-Offers under Takeovers, Buy Back and Delisting

IRDA announces norms to regulate Insurance business in SEZs

INSURANCE/INDIAN ACTS & RULES : IRDA (Regulation of Insurance Business in Special Economic Zone) Rules, 2015

Now Judges of Apex Court to be appointed by Judicial Appointment Commission; amended Constitution Ac

CL/INDIAN ACTS & RULES : Section 1 of the Constitution (Ninety Ninth Amendment) Act, 2014 – Act – Enforcement of – Notified Date for Enforcement of Said Act

No TP addition for variation between actual price and ALP of fixed asset but depreciation to be re-c

IT/ILT: If there is an international transaction in the capital field, which does not otherwise give rise to any income in itself, then even though its ALP may be computed in consonance with the provisions, but no adjustment can be made for the difference between the declared value and the ALP of such international transaction

Iran Keen To Increase Tea, Medicine Imports From India

Iran has expressed keenness to increase imports of tea and medicines from India as the Islamic country is looking at ways to boost bilateral trade ties between the two nations, a top Commerce Ministry official has said.

During the recent visit of Commerce Secretary Rajeev Kher to Tehran, both the sides deliberated on ways to enhance trade in the two commodities.

At present, Iran imports tea and pharmaceuticals from India but the value is low. Tea exports to Iran are low because the Islamic nation follows 'Codex' international norms which are not observed by Indian manufacturers. As regards medicines, Iran mainly imports from the US and European countries. Now, Iranian traders have recognised the potential of Indian generic drugs and have shown interest in increasing imports from India.

"Iran has now acknowledged that India is the best generic drug producers. We have invited their FDA (food and drug administration) regulators to visit India," Kher told PTI.

He said that India has also invited tea experts from Iran and have asked them to visit domestic tea gardens and factories to study the quality and standards followed here. Meanwhile, a Greenpeace India report on Indian tea has also impacted the country's exports.

Greenpeace India has published a research paper titled 'Trouble Brewing on Indian Tea' where it has claimed that the beverage has hazardous pesticides.

Indian officials have asked Iran not to trust that report. An industry expert said that huge potential exists in Iran for Indian tea and pharma sector.

"Several Iranain delegations have recognised the potential of Indian generic medicines. Our exports are only USD 15-16 million per year. They have huge potential. We can invite them and show our regulatory processes and standards," Federation of Indian Export Organisations (FIEO) Director General & CEO Ajay Sahai said.

Sahai said Sri Lanka and Kenya are the main exporters of tea to Iran but Indian companies too can enhance standards and quality norms to increase their exports.

Increase in exports would help India to bridge the widening trade deficit with Iran. In 2013-14, India's exports stood at USD 4.97 billion while imports are USD 10.3 billion.

Besides, the government is pitching to increase exports to Iran as it wants to boost the country's outbound shipments which are hovering at around USD 300 billion for last four years.

Source:business-standard.com

National Policy To Address Issues Of Rubber Sector

The Central government is in the process of formulating a national rubber policy and an insurance-based scheme to address issues pertaining to the sector and boost the production of the plantation crop. The Commerce Ministry has started an exercise of resetting the goals and functions of the Rubber Board.

To formulate the national rubber policy, a committee consisting of experts and stakeholders has already been set up, a senior Commerce Ministry official said on Monday.

“The policy is being formulated to address demands of the rubber industry and growers. The committee is looking into all the issues concerning the sector and it would evolve a suitable regime for production, consumption, manufacture and import of rubber in the short and long term,” the official added.

Further, an insurance-based scheme to operate the price stabilisation fund for the commodity has been prepared and submitted to the Finance Ministry for its approval. The scheme is designed to cover losses to growers arising from fluctuations in yield and prices. It will be implemented in cooperation with insurance companies. To reset the goals and functions of the Rubber Board, the Ministry has consulted the stakeholders.

“The Ministry has identified the changes needed at the policy, institutional and organisational level. The work regarding this is on,” the official said.

The persistent fall in the price of natural rubber has caused concern among rubber farmers in Kerala, which accounts for more than 94 per cent of the commodity’s total production in the country. Farmers had also raised concerns over increasing rubber imports.

Last year India imported over 3 lakh tonnes of rubber and this year it is expected to touch about 4 lakh tonnes. Rubber price, which ruled around Rs.220 per kg in January 2011, touched a low of Rs.123 per kg in the domestic market.

The total area under rubber cultivation in Kerala is 5.45 lakh hectares. It is the livelihood of as many as 11.50 lakh farmers with most of them small-holders having less than 1.5 hectares under rubber.

The total rubber production in Kerala for 2012-13 stood at 8 lakh tonnes. India’s import has reached 4 lakh tonnes annually. Imports increased notwithstanding the Centre raising import duty on natural rubber to Rs.30 per kg or 20 per cent, whichever is lower, in December 2013.

Source:thehindu.com

Oil To Remain Subdued On Low Demand, Oversupply

India’s energy demand is expected to grow from 691 million tonnes of oil equivalent (mtoe) in 2010 to 1,500 mtoe in 2030, based on GDP estimates, composition of the economy and demand growth from industry, buildings and transport sectors, in a business-as-usual scenario. That’s what a recent study by McKinsey suggested.

The same report has also projected India’s import of primary energy requirements to increase from 30 per cent in 2010 to 51 per cent in 2030, assuming efficiency gains and a dip in energy intensity from 0.56 kg of oil equivalent (koe) per dollar in 2010 to 0.47 koe per dollar in 2030.

In this context, what prime minister Narendra Modi said last week assumes great significance. Modi had said India must aim to reduce its dependence on imports for meeting its energy needs by 50 per cent over a decade and a half. The prime minister said India’s dependence on imports for 77 per cent of its energy requirement should decline 10 per cent by 2022 and 50 per cent by 2030. There was, however, no clarity on whether the prime minister had referred to crude oil import only or it included crude, natural gas and coal as well.

There are two different sets of data – both official – on India’s crude imports. The Union ministry of statistics and programme implementation’s figures suggest that India imported 189 million tonnes (mt) of crude oil in 2013-14 and its total consumption during that year was 222 mt, implying that India met 85 per cent of its demand through imports, an increase from 76 per cent in 2005-06, when India had imported 99 mt crude oil.

Interestingly, statistics from the Union ministry of petroleum and natural gas shows that India’s import dependence in the petroleum sector in 2013-14 stood at 77.6 per cent, slightly higher than 76 per cent in 2011-12.

India has already brought down import of crude from Nigeria by 38 per cent. This was despite the fact that India has recently replaced the US as Nigeria’s biggest oil market. India’s import of Nigerian crude tumbled to 5.2 million barrels in December, from 13.7 million barrels in October and 12.4 million barrels in November 2014.

Last month, India did not import oil from Iran either. This was the first time in a decade that India did not import oil from Iran. Mind you, India is Iran’s second-biggest buyer of oil annually after China. Significantly though, most analysts feel the landmark interim nuclear deal between Iran and permanent members of the UN security council apart from Germany and EU, which India described as a significant step, has the potential to once again increase Delhi’s oil imports from Tehran and make the payment process much easier.

Iran has the world’s fourth-largest proved oil and gas reserves. But since the imposition of US sanctions, Indian companies have been wary of importing oil from Iran. Till 2006, Iran was India’s second largest supplier of crude oil, but dropped to the number seven spot by 2013-14.

On the pricing front, oil prices rose more than 6 per cent after Saudi Arabia, the world’s biggest crude exporter, and its allies launched air strikes on rebel targets in Yemen. Yemen lies on one side of Bab el-Mandeb, the fourth-busiest shipping bottleneck in the world by volume, while neighbouring Saudi Arabia exports more crude than any other country.

In the US, crude inventories expanded by 8.2 million barrels to 466.7 million through March 20, the highest level, according to the weekly data compiled by EIA since August 1982, says an Emkay Commodity research.

“In march, crude have shown extreme movement in the prices. It rose more than 4 per cent initially on rising conflicts between Saudi Arabia and Yemen and later on the gains capped by Iran nuclear deal. Oil trimmed its biggest weekly advance in four years on speculation that conflicts between Yemen and Saudi Arabia will reduce ample crude supplies.

“Of late, crude oil futures plunged sharply after western powers negotiated a tentative nuclear deal with Tehran, which could add more crude to the already oversupplied market. WTI crude is unlikely to reach $51.80 levels unless situation in the West Asia worsens.

“Crude oil prices have been consolidating in a broad range of 3,438 to 2,643 levels since the past two months. Prices rallied to a high of 3,368 following the geo-political tensions but could not sustain at higher levels. Prices need to sustain above 3,200 levels for it to re-test 3,325/3,360 areas on the upside. Levels between 2,940 and 2,950 are the crucial support zones for prices and a correction towards 2,700 levels again,” said the Emkay Commodity research report.

Source:hellenicshippingnews.com

Now NBFCs can appoint young independent directors; RBI removes age criteria of directors specified u

NBFCs/INDIAN ACTS & RULES : Review of Guidelines on Corporate Governance

Non-mentioning of block period in notice doesn’t invalidate notice or vitiate block proceedings; SLP

IT : SLP dismissed against High Court ruling that non-mentioning of block period in notice issued under section 158BC would not invalidate notice nor would vitiate proceedings as one without jurisdiction

Chief CIT can't condone delay in filing exemption application under sec. 10(23C)

IT : Where assessee's application under section 10(23C)(vi) was rejected on ground that it was filed beyond prescribed date, in view of fact that Chief Commissioner in whom power is vested for condonation of delay is not a Court within meaning of section 5 of Limitation Act, 1963, impugned order rejecting said application was to be confirmed

Penalty waived off as unintentional default in payment of ST was caused in course of running a sick

Service Tax : Where default relating to payment of service tax was unintentional and was caused in course of running a sick unit, no penalty could be levied under section 78 and accordingly, penalty was waived giving benefit of section 80

Jute Imports Up By 24%, Exports Dip By 22% In April-Jan Fy15

The country's jute sector continues to face double whammy as imports of finished goods have jumped by 24%, while exports have declined by 22% in the April to January period of financial year 2014-15.

"According to National Jute Board estimates, jute exports for the period April-January of FY15 have declined sharply to Rs 1,115 crore, down 22% in rupee terms and 20% in dollar terms as compared to corresponding period of FY14," said a senior official of Indian Jute Mills Association (IJMA).

In terms of quantity, the decline was 37%, or 98,500 tonnes, during the April-January period over the corresponding period of FY14. Regarding import of jute products, there was a jump of 24%, or Rs 511 crore, in value terms for such products in April-February period of FY15.

The unfavourable trend seems to be gaining momentum as in February 2015 alone, imports were higher by 75% in value terms and 79% in volume terms as compared to the corresponding month of the previous year. IJMA sources have attributed higher imports to lack of monitoring and check in end-use of jute products.

On top of this, a subsidy of 7.5% by Bangladesh for export, has resulted in flooding into Indian market. When the government rate is Rs 63,000 a tonne for jute, the same product is available at Rs 53,000 a tonne in the open market, they said.

Source:business-standard.com

India To Invest $6 Billion More In Rovuma Gas Field

India will double its investment in the Mozambique's Rovuma gas field by spending another $6 billion by 2019, said oil minister Dharmendra Pradhan who has just returned from a visit to the African nation.

State-run firms ONGC Videsh, Oil India and Bharat Petroleum have already invested that much in the field and hold a combined 30% interest in the Rovuma Area-1, which is estimated to have recoverable gas reserves of up to 75 trillion cubic feet.

"Mozambique is an important destination for India's energy security," Pradhan said, adding that the two countries are working on enhancing cooperation.

The Rovuma field will have its first output on the market by 2019. India may or may not import liquefied natural gas (LNG) from Rovuma fields and the decision to import will depend on the market situation, including the price available to gas produced in Mozambique, Pradhan said. Indian firms are discussing the prospects of imports from Rovuma at present, he said. The early monetisation of Rovuma offshore is a priority but "we must also respect the sovereign laws of Mozambique", Pradhan said.

India desperately needs gas to power its electricity generation, which has been far below the country's requirement.

The government recently announced a policy to offer subsidised imported gas to about 24,000 MW of gasfired plants lying idle or underutilised. India's gas production has fallen far short of expectation in the past few years, making unviable many gas-based power plants that were built on the hopes of securing cheap local gas.

Source:economictimes.indiatimes.com

India’S Potash Imports Forecast To Rise

Indian potash imports will likely increase to a four-year high of about five-million tonnes in the 2015 financial year, which started on April 1. This will be the highest level of imports since 2011, when India went into a self-imposed “potash import holiday”.

With the Indian rupee stabilising and the rise in domestic potash prices checked, farmers’ consumption of the nutrient was seen to be on an upward curve, resulting in the likelihood of higher imports during the current year, an official in the Department of Fertilisers said. However, importers are expected to conclude transactions at a maximum of $322/t on a cost-and-freight basis.

Government-owned trading houses MMTC Limited, STC Limited, and India Potash Limited were designated authorised potash importers. The government subsidised the retail price of potash through part reimbursements to potassic fertiliser manufacturers. However, for 2014/15 the government cut the subsidy by 20% to a maximum of $151/t resulting in a rise in retail price and a drop in consumption during the year.

The issue at hand for importers was the differing trends in offers, which saw potash exporters in Russia and North America seeking an increase over previous average offers, whereas exporters like Belarusian Potash Company Limited (BPC) were willing to keep offers in check, the official added.

Citing recent reports in local media, the official said that indications were that BPC in its offer to China earlier this month had increased offers by $10/t to $15/t to around $315/t while other potash producer exporters had been seeking a hike in the range of $25/t to $30/t for exports to China.

He said that this was a favourable indication for Indian importers as offers to China set the benchmark and export offers to India was normally marginally higher, factoring in higher freight rates, with an import ceiling set at $322/t being "realistic".

The government was expected to maintain a subsidy on potassic fertilisers at $151/t, and if exporters declined to maintain offers at previous year’s levels, the government would have no other option but to reduce imports as retail prices would increase and the upturn in demand would be reversed, the official added.

Source:miningweekly.com

Indian Rupee Declines 7 Paisa Against Us Dollar

Indian rupee has depreciated on Monday against US dollar. Indian currency fell 7 paise or 0.11 percent against dollar to trade at 62.40.

Rupee has witnessed a high of 62.33 and a low of 62.41. Its 52-week range was 58.34-63.89. The Dollar index, a measure of the value of the US dollar relative to a basket of foreign currencies, rose 0.16 percent to trade at 99.50.

Source:customstoday.com.pk

National Judicial Appointments Commission Act, 2014 comes into force wef. April 13, 2015

CL/INDIAN ACTS & RULES : Section 1 of the National Judicial Appointments Commission Act, 2014 – Act – Enforcement of – Notified Date for Enforcement of Said Act

Review of guidelines on corporate governance

NBFCs/INDIAN ACTS & RULES : Now NBFCs can appoint young independent directors; RBI removes age criteria of directors specified under NBFC norms

Super built area couldn't be equated with built-up area while allowing relief under sec. 80-IB

IT : Super-built up area cannot be equated with built-up area to determine area of a residential flat to allow deduction under section 80-IB

Burden to prove taxability of service lies on department

Service Tax : Demand cannot be confirmed on presumption of department; burden to show that service provided by assessee is a taxable service, is on revenue

HC denied to admit writ against Setcom's order as its admission would lead to abatement of applicati

IT : Revenue's writ petition against order of Settlement Commission was not entertained having regard to fact that entertaining same would result in expiry of 18 months time-limit stipulated in section 245D(4A)(iii) and abatement of settlement application, but revenue was given liberty to raise its contention at hearing under section 245D(4)

Depreciation claimed on basis of incorrect valuation calls for reassessment

IT: Where assessee was allowed depreciation on intangible assets but thereafter during survey assessee's managing director agreed to withdraw 50 per cent of such depreciation and valuer of said assets stated that his valuation could not be used for claiming depreciation, there was tangible material for reopening of assessment

Co. providing services to its AE from off-shore location couldn't be compared with a co. rendering o

IT/ILT : A company providing off-shore services to its associated enterprise stands on a different footing from a company rendering on-site services to clients

Penalty for short payment of advance tax was justified as tax due was more than 15% of advance tax p

CST & VAT : Karnataka VAT - Where Assessing Authority had levied penalty upon assessee under section 12B(4) of Karnataka Sales Tax Act on plea that difference between tax due after final assessment and advance tax paid by assessee was more than 15 per cent, levy of penalty was justified

Pre-deposit is mandatory to file appeal; no discretion vested in Tribunal to waive off pre-deposit r

CST & VAT : Karnataka VAT - Where assessee filed appeal before Tribunal and thereafter it filed writ seeking a direction to Tribunal to admit its appeal without insisting on pre deposit of 30 per cent of disputed amount, in view of sub-section (4) of section 63, appeal would not be entertained by Tribunal until said deposit was made

Arbitration Act can be applied to Arbitrations held outside India unless parties have agreed to act

Arbitration Act : Arbitration Act is applicable to arbitrations held outside India unless parties have either expressly or impliedly excluded provisions of Act

Foreign Trade Policy: India's Dismal Export Performance To Continue This Year As Well

India's exports may again miss the target in 2014-15 and be in the range of $308-310 billion as against the target of $340 billion, a senior Commerce Ministry official has said.



In 2013-14, the country's total merchandise shipments stood at $312.35 billion as against the target of $325 billion.



During April-February 2014-15, it grew by a merger 0.88% at $286.58 billion as against $284.07 billion over the same period previous year.



"Export target will be missed. It will be in the range of $308 billion to $310 billion," the official told PTI.



The reasons for decline in exports include slowdown in manufacturing, softening of metal and commodity prices and declining competitiveness of domestic goods in international markets, an industry expert said.



"There is an urgent need to nurture India's exports. Lakhs of jobs are at stake. During the last four years, India's exports are hovering at around USD 300 billion, we need to come out from that," former FIEO (Federation of



Indian Export Organisations) president Rafeeq Ahmed said.



In 2012-13 too, India's exports aggregated at $300.6 billion as against the target of $360 billion.



The government is taking several steps to boost the country's exports.



Recently, it had announced incentives in the new five-year Foreign Trade Policy.



With an aim to nearly double the country's goods and services exports to $900 billion by 2019-2020, the Commerce Ministry has incorporated various incentive schemes such as Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS) to boost outward shipments.



The new FTP provides higher level of incentives for export of agriculture products besides announcing setting up of an Export Promotion Mission to provide an institutional framework to work with state governments to boost exports.

Source:- dnaindia.com

Royal Philips Launches 5Th Made In India Medical Equipment For Export

Royal Philips recently launched its fifth medical equipment product that is made in India for exports. The MobileDiagnost Opto, a digital x-ray system, comes from a range of products developed by Philips’ Healthcare Innovation Centre (HIC), an India-based R&D unit.

Established four years ago to develop homegrown healthcare products, the HIC is based in Pune and operates R&D facilities in Pimpri and Chakhan. HIC head Rekha Ranganathan said the products are “part of our strategy of focusing our R&D work for both local-for-local use and for global markets. At present, HIC has capacity to manufacture 100 units per month of any of these. HIC is still in a nascent stage and we intend to roll out some more products from here,” he told the Business St`andard.

HIC also produces “fixed” imaging equipment for minimally invasive treatment of chronic conditions like cardiovascular diseases, according to the news report. Currently, the center has about 400 employees and shipped hundreds of systems to 90 countries in 2014. According to Ranganathan, in just two years, the local R&D unit has doubled unit growth, launched global products, filed multiple patents, and received significant investments in developing medical equipment.

The World Health Organization (WHO) recently described India’s medtech sector as “underinvested” and “import-driven.” Initiatives like Philips’ HIC seek to change the status quo in line with Prime Minister Narendra Modi’s new “Made in India” campaign.

In his Indian Independence Day address last year, Modi said, “We should dream of ‘Made in India’ products across the world. We need to encourage the manufacturing sector…. We should strive to be a nation that doesn’t import, but exports.”

According to the Business Standard, Sameer Garde, Philips president for South Asia, said that medical devices and equipment market in India was pegged at Rs 30,000 crore ($4.8 billion) and 75 to 80 percent of the products were imported. “We want to bring down these numbers and HIC will play a crucial role,” he said “The products manufactured at HIC grew 24 per cent year-on-year. We expect HIC to grow faster than in 2014.”

Government regulatory bodies in India have recently revamped policies on imports and exports in the medtech sector. The changes aim to reduce irregular business practices and encourage local and foreign manufacturers to invest, develop, and make products in India for the global market.

Garde recently said in a separate interview that India has great potential for growth for device manufacturers. He said that a huge market like India is crucial to Philips overall plans in the coming years as it pivots to healthcare.

Source:customstoday.com.pk

Source:

Southern Mills Eye Mangalore Port For Cotton Importsouthern Mills Eye Mangalore Port For Cotton Import

Congestion in ports has pushed the Southern India Mills' Association (SIMA) to weigh the possibility of tapping New Mangalore Port (NPT) in Karnataka for cotton import.

Members of SIMA, along with those from the South India Spinners Association (SISPA), traders and liners, held talks in this regard with Chairman of New Mangalore Port Trust P C Parida and other officials earlier this week here.

The predominantly cotton-based textile industry in South, particularly the mills in Tamil Nadu, imports significant volumes of West African cotton to manufacture knitted garments.

According to SIMA, NPT offers excellent warehousing facilities, specially for the benefit of small and medium scale spinning mills.

SIMA has sought extension of Customs-free bonded warehouse for cotton -- as in Malaysian ports -- so that traders could store the imported cotton and supply to small and medium spinning mills all over Southern states, association President T Rajkumar said in a release today.

Such a facility would also enable the traders to return the unsold cotton to the original destination without any additional cost, he said.

On top of it, the port handling charges, wharfage and demurrages are much lower in the case of NPT and authorities have invited them to visit the port, he added.

Source:business-standard.com

Rising Chinese Imports Remain A Concern For Steel Firms

Tata Steel Managing Director TV Narendran expressed the anguish of local steelmakers, whose margins are increasingly coming under pressure, when he told a TV channel that imports continued to have an "adverse impact. The industry is waiting for the government to address the problem."

Steel imports rose 71 per cent in 2014-15 to 9.31 million tonnes (mt), when its exports suffered a setback of eight per cent to 5.5 mt, thanks to structural problems and tepid demand in target markets. The industry has made many representations to the government, for protection from imports.

But unlike the European Union, which saw merit in industry body Eurofer's representation that stainless steel products originating in China mostly and also Taiwan are sold in the region below production cost and would be putting anti-dumping duties of up to 25.2 per cent, Delhi is yet to act.

The only development here so far is a Budget announcement that although the tariff rate on steel products under chapters 72 and 73 of the Customs manual is raised from 10 to 15 per cent, the existing effective rates have remained unchanged. This left steelmakers disappointed. More recently, however, Steel Minister Narendra Singh Tomar said, "The industry and the government are equally worried about China dumping steel here. We have told the finance ministry about the compulsion for higher steel import duty. We are hoping for a favourable outcome."

Narendran complains about the arrival of a lot of China-origin steel. But South Korea and Japan, which under free trade agreements (FTAs), are selling steel here under falling rates of import duty are also causing market disturbances. Making the best of major devaluation of local currencies rouble and hryvnia, steel groups in Russia and Ukraine are exporting steel in a big way. India continues to receive a good amount of steel from the two countries. If Chinese exporters are not restrained, they will continue to sell more and more products here. Considering the state of our steel industry, Delhi should give serious consideration to industry suggestion of removing steel from the purview of FTA. The industry's case will become stronger if it could back up the demand for taking out steel from the two FTAs with "adequate facts and figures" for New Delhi to intercede with Tokyo and Seoul.

On a few occasions, Prime Minister Narendra Modi suggested that the steel industry would be playing a pivotal role in taking the 'Make in India' programme forward. Delhi's target is to raise the share of manufacturing sector in GDP from the current about 15 per cent to 25 per cent and in the process create an additional 100 million jobs by 2022. It will only be appropriate that the manufacturing sector as it rapidly expands should be using India-made steel. The country is targeting steel capacity growth of 300 mt by 2025 in which all major producers have plans to participate in a big way. But they will be crimped from doing so if imports continue to play havoc.

A point not to be missed is that China, where growth has slowed and investment in infrastructure and construction fallen stepped up exports by 51 per cent in 2014 to 93.78 mt, much to the annoyance of steelmakers in the EU, the US and here. They remain sceptical that Beijing cancelling export tax rebates for steel alloys containing hardening chemical boron will lead to restraining of Chinese exports. As the Chinese prime minister is keen to consolidate the economy, GDP growth will stay around seven per cent a year. He is also pushing hard to end corruption among bureaucrats and politicians and scrap environment polluting and uneconomic steel capacity in the face of opposition from provincial satraps.

All this boils down to flat steel demand in China, where double digit consumption growth became routine since the turn of the century. Morgan Stanley says demand for finished steel in China slid one per cent to 689 mt in 2014 marking a break with years of rapid growth. Contraction in production in the first two months of 2015 by 1.5 per cent to 130.5 mt on a year-on-year basis is confirmation of China Iron and Steel Association stand that production in the world's largest producer has "already hit a peak". Indian production during this period was up 7.2 per cent to 14.563 mt. Let imports not hamper our growth.

Source:business-standard.com

Rupee At 1-Week Low Vs Dollar; Falls 20 Paise To 62.51

The rupee continued its downslide for the second session in a row, depreciating by 20 paise to close at more than one-week low of 62.51 against the greenback following sustained dollar demand from importers amid strong overseas demand. However, smart rise in local equities amid sustained capital inflows tried to restrict the fall, a dealer said.

At the Interbank Foreign Exchange ( Forex) market, the domestic currency commenced slightly lower at 62.33 per dollar from last weekend's close of 62.31 and immediately touched a high of 62.32.

Later, it met with strong resistance and fell back to a low of 62.5650 before concluding at 62.51, exhibiting a fall of 20 paise or 0.32 per cent.

Continued dollar buying by importers amid strong greenback overseas mainly weighed on the rupee. The dollar index, a gauge of six major global rivals, was up by 0.58 per cent today.

The benchmark BSE Sensex today bounced by 165.06 points or 0.57 per cent to cross 29,000-mark after more than one month. Foreign Portfolio Investors infused Rs 362.79 crore last Friday, as per provisional data. In the forward market, premia remained sluggish on persistent receiving by exporters.

The benchmark six-month premium payable in September declined to 221-223 paise from last weekend's close of 224.5-226.5 paise and forward contracts maturing in March 2016 also dipped to 443.5-445.5 paise from 457.5-459.5 paise. The Reserve Bank of India fixed the reference rate for dollar at 62.3885 and for the euro at 66.1630.

The rupee reacted downwards against the pound sterling to 91.31 from 91.09 last Friday and fell back slightly against the Japanese yen to 51.79 per 100 yens from 51.76. It, however, continued its upward march against the euro to 65.84 per euro 66.01 previously.

Source:economictimes.indiatimes.com

'Bakshish' paid to harvesting labours by sugarcane manufacturer on behalf of farmers won't attract s

IT : Where assessee a sugar manufacturer made payment of harvesting and transportation charges to harvesting and transport contractors on behalf of farmers which formed part of purchase price of sugar cane for assessee, and same had not been claimed as separate deduction, provisions of sections 194C and 194H were not applicable and consequently said payments could not be disallowed under section 40 (a) (ia)

SLP granted against HC's order holding that 15% of profit of Dutch Co. was attributable to its PE in

IT/ILT : SLP granted against order of High Court where it was held that since assessee-Dutch company was engaged in providing travel industry services of Computerized Reservation System and its Indian distributor merely gave connection to Indian travel agents for booking and major functioning of collecting and data analysis/development took place in, USA, attribution of 15 per cent of assessee's profit to India was just and proper

High Court rebukes ITAT for taking decision by simply relying upon HC's order without adverting to r

IT : Matter was remanded to Tribunal where Tribunal disallowed advertisement expenses, ignoring its order for prior assessment years allowing deduction of similar expenditure

Sum received by foreign co. from sale of software licence to end user customers in India held as roy

IT/ILT : Payment received by assessee a non-resident company for sale of software license to end user customers in India amounts to royalty in hands of assessee

Act of druggist association of imposing condition to obtain NOC prior to appointment of stockist was

Competition Act : Where opposite party, i.e., Himachal Pradesh Society of Chemist and Druggist Alliance, had imposed condition of NOC for appointment of stockist in Himachal Pradesh, OP had indulged in anti-competitive practices

Best Judgment assessment shall also be governed by time limits prescribed for completion of assessme

CST & VAT : Gujarat VAT - Assessment order passed under section 41(7) of Gujarat Sales Tax Act would be governed by time limit prescribed under section 42(1)

ITAT denied to rectify its order as it was passed after considering arguments of assessee and materi

IT : Where Tribunal, while upholding addition by invoking section 50C on account of capital gains on sale of property, considered arguments of assessee and all materials on record, rectification application was to be dismissed

High Court gives opportunity to S.R. Batliboi to furnish evidences to justify incurring of huge conf

IT : Matter needed readjudication where assessee claimed for opportunity to produce all relevant evidences to justify incurring of huge business expenditure

Co. intending incorporation can now apply for PAN in Form INC-7 prescribed under Companies Act, 2013

IT : Income-Tax (Fifth Amendment) Rules, 2015 – Amendment in Rules 114 and 114A

SLP granted as HC held that deemed dividend was taxable in hands of registered shareholder instead o

IT : SLP granted against High Court Ruling that deemed dividend was to be taxed in hands of shareholder whose name was entered in register of shareholder and not in hands of beneficially/beneficiary firm

Certificate of incorporation and PAN don't prove genuineness of Co. if evidence indicated it as pape

IT : SLP dismissed against High Court ruling that certificate of incorporation, PAN etc., are not sufficient for purpose of identification of subscriber company when there is material to show that subscriber was a paper company and not a genuine investor

SLP dismissed against HC's order making additions u/s 68 as assessee failed to prove genuineness of

IT : SLP dismissed against ruling of High Court that where assessee could not prove capacity of creditor and genuineness of transaction, addition of gift amount under section 68 was to be allowed

AO couldn't refer matter to departmental valuation officer without rejecting books of assessee

IT : Assessing authorities could not refer matter to Departmental Valuation Officer without books of account being rejected

DRP to reconsider case as assessee contended that reassessment was invalid due to assessment being h

IT/ILT : Matter was to be remanded to DRP to consider preliminary objection of assessee challenging validity of reassessment proceedings

TP adjustments set aside as comparables had functional differences with entity engaged in investment

IT/ILT : TPO's adjustment to assessee's ALP in respect of rendering investment advisory services to its AE, was to be rejected when some of comparables selected by him were functionally different

Tribunal couldn't levy penalty when assessee had reasonable cause to show that particulars discovere

CST & VAT : Delhi VAT - Where assessee was engaged in business of leasing of machinery and vehicles, lease rentals paid on or after 1-4-2005 would be subject to tax under Delhi VAT Act, even when lease agreement was executed between parties on or before 31-3-2005

CLB directs Co. to transfer shares in favour of petitioner as there was no fraud or forgery in share

CL: Where petitioner company purchased shares of respondent-company through bank, however, respondent-company refused to register transfer of said shares in name of petitioner, since bank was entitled to transfer shares and there being no forgery, fraud, manipulation or misrepresentation in transfer of shares, respondent company was to transfer shares in name of petitioner

Amount reimbursed to AE which doesn't affect profitability is excludible from operating cost for TP

IT/ILT : Where companies selected by TPO as comparables had been held by co-ordinate bench of Tribunal in assessee's own case for earlier years, as not comparable due to functional difference from assessee ITE service provider, said companies were to be excluded from list of comparables in current year also

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