Dept. of info and public relation didn't abuse dominance in procuring ads space in print media

Competition Act, 2002: Where the advertisement expenditure of Department of Information and Public Relations, of State Governments of Punjab, U.P, Tamil Nadu and West Bengal ('Opposite Parties') central was insignificant and was only about one-eight of total print advertisement expenditure, they could not be considered having dominant position in their respective relevant market in procuring the advertising space in print media

Interest on tax refund isn't taxable under sec. 44BB

IT/ILT : The amount of interest received on the refund of Income Tax is not includible in the amount on which the assessee is liable taxed under Section 44BB of the Act

Cotton Mills Forced To Scale Down Production By 15-20Pc

Representatives of the Confederation of Indian Textile Industry, South India Millers' Association, North Indian Millers Association, and Texprocil met in New Delhi on Monday to take stock of the situation faced by cotton spinning mills. Currently, the cotton spinning mills are facing crisis due to high input costs and subdued demand and thus decided to go slow on production.

In the meeting, it was decided to appoint an agency to study the gravity of the situation, prepare a memorandum, and send to the government.

Most of the mills have either already cut production by 15-20 per cent or are mulling to do so soon. Salem-based Sambandam Spinning Mills is one such. Its director S Dinakaran said that the mill is keeping operations suspended for one day every week, starting this month. This is the first time in 40 years that the mill has faced such a crisis that production has had to be scaled down.

While bigger players are resorting to a one-day production cut, smaller ones have opted to shut production for two days a week. The plight of cotton mills in north India, too, is similar.

What has added to the woes of the sector is the dramatic increase in capacity over the past few years on the back of incentives offered by various state governments. This, as well as a drastic fall in export demand, has put the sector in a shambles.

According to D K Nair, secretary-general, Confederation of Indian Textile Industry, the sharp decline in exports from a peak of 140 million kg a month last year to an average of 100 million a month in this quarter has put the spinning sector in doldrums. A 40 percent decline in export demand in such a short span was unexpected and the sector was not prepared for this. The devaluation of yuan might further hamper exports as Indian yarn has become more expensive in the international market in the after effects of Chinese currency's fall.

Dinakarn, who is also the chairman of Texprocil's yarn committee, said that the Chinese buyers have been delaying the LCs (Letters of Credit) and not opening the LCs. The mills are bleeding and there is no option other than suspending production. Of the 500 small mills in Tamil Nadu, most are keeping operations shut once or twice a week.

These mills are into blended yarn and fibre. Since there is no excise duty on cotton, the 100 per cent cotton yarn makers are disrupting production only once a week.

President of South Indian Spinners' Association, C Varadarajan said that as the textile sector is one of the largest employers, production cuts for a longer time could result in layoffs, resulting in labour unrest. The situation is precarious and the government should provide immediate relief to save the livelihood of millions engaged in textile sector.

There is also a need to revive the interest subvention, for release of pending TUF, and introduction of measures to expedite exports. According to experts, the delay in disbursement of Technology Upgradation Fund, or TUF, has affected the sector.

Source:yarnsandfibers.com

Modi To Bet $1.5 Billion On Palm Oil Plan As Imports Surge

India plans to spend $1.5 billion in the next three years to help farmers grow oil palm trees in an area the size of New Jersey, government sources said, with Prime Minister Narendra Modi pushing to make the nation self-sufficient in edible oils this decade.

Modi is targeting India’s $10 billion import bill for edible oils, its third-highest overseas spend after oil and gold, and has already been considering buying oilseeds directly from farmers and boosting government support for growing rapeseed, soybeans and peanuts.

A successful Indian push into palm cultivation would drag on international markets for the commodity, hitting Indonesia and Malaysia as they are currently the only major growers of the crop.

“We’ve identified nine states with suitable climatic conditions but we were apprehensive that the long gestation period would dissuade farmers from adopting the crop,” said one of the sources involved in the planning. He declined to be named as he was not authorised to speak with media.

“That’s why we’ve decided to earmark 10,000 crore rupees ($1.53 billion) that will largely be spent on supporting the farmers.”

Palm, the highest-yielding perennial edible oil crop, needs a fraction of the area used to grow other oilseeds, potentially attractive in a country like India where land is increasingly scarce as the population rockets.

But a gestation period of up to five years and laws limiting the size of each palm development have stymied previous efforts to switch to the crop, putting off local farmers as well as companies such as Ruchi Soya (RCSY.NS), Cargill and Bunge (BG.N).

However, the government hopes that its $1.5-billion backing will make the difference, with sources saying that direct support from Modi will also be key.

“It’s a pity that we couldn’t meet our earlier targets,” said the first source. “But he fact that the prime minister is giving a lot of impetus due to unbridled edible oil imports, we’re trying our best to make it happen this time.”

The government is mostly targeting fallow farmland in coastal states such as Maharashtra and Karnataka to grow palm on 2 million hectares, which could produce 8 million tonnes of oil annually once the crop bears fruit in about five years, another government source said. Food ministry spokesman N.C. Joshi declined to comment.

Indian consumption of vegetable oils has trebled over the last 20 years as the population grows and incomes rise, while output has increased by less than a third. That has forced it to become the world’s biggest importer of edible oils, with palm oil accounting for 80 percent of that.

Annual edible oil imports have risen 12 times to 14.4 million tonnes per year, with the product used to make everything from bhajis and biryanis to potato chips and noodles.

Togar Sitanggang, secretary general of the Indonesian Palm Oil Association, told Reuters that India’s plan would increase pressure on the Southeast Asian nation to use more biodiesel, made with palm, at home.The Malaysian Palm Oil Board declined to make immediate comment.

Since India’s first major attempt to cultivate palm more than two decades ago, the area devoted to the crop has risen to about 200,000 hectares from around 8,600 hectares.

The country last tried to boost palm cultivation in 2010/11 by setting a target to produce 4 million tonnes of oil in five years. Output has not risen above 70 tonnes a year. Some industry officials were sceptical the latest push would work without changes to the law.

“The bizarre rule that subjects (growers) to the land ceiling laws that don’t allow commercial cultivation of oil palm by private companies is the crux of the problem,” said B.V. Mehta, executive director of industry body the Solvent Extractors’ Association of India.

Unlike tea, coffee and rubber, India still does not recognise oil palm as a plantation crop, prohibiting large-scale cultivation by individual companies that would make economic sense. One of the reasons for limiting palm coverage is the fear that corporations would take over large tracts of land at the cost of other crops, the government sources said.

As a result, the only option for any firms that want to develop palm is to do so via contract farmers, Mehta said. But one of the government sources said New Delhi had not yet considered altering the land-holding limit, with any change in law needing parliamentary approval.

“This fund will only be used to support farmers who will practically have no income until their plants are ready to give them returns,” he said.

Source:thehimalayantimes.com

Machine hire charges and sundry receipts aren't deductible under sec. 80-IA

IT : Since interest income earned from employees, machines hire charges, rent receipts and sundry receipts could not be characterised income derived from eligible undertaking, deduction claimed by assessee under section 80-IA would not be allowed

Pharmexcil To Hold 11Th Agm From Sept 22-24 In Hyderabad

The Pharmaceuticals Export Promotion Council of India (Pharmexcil) will hold its 11th annual general meeting (AGM) from September 22-24, 2015 at Hotel Trident in Hitech City in Hyderabad.

As part of this annual meet, the Council is planning to conduct 3 important events which include global pharma business meet, technical seminars and pharma CEOs conclave. According to Dr. P.V. Appaji, director general of Pharmexcil, as usual this year’s annual event is going to become a big platform for the Indian pharma fraternity to meet. “During the 11th annual meet we are inviting about 80 overseas buyers from important markets across the globe. The Indian players, particularly the SMEs can make this event an opportunity to meet pharmaceutical manufacturers and entrepreneurs to promote their products,” informed Appaji.

As the 11th AGM is going to witness finished formulations manufacturers, the Indian API exporters can use this platform to promote their APIs, pharma machinery and packaging equipments. As majority of Indian firms are also involved in contract manufacturing, they can also use the platform of 11th AGM as an opportunity to meet with global leaders to build up their business by participating in the B2B meetings.

“We are planning to conduct 4 sessions of B2B meetings along with an exhibition. We are also planning to conduct technical and commercial seminars, where the members can take part and share their views and upgrade their knowledge relating to recent regulations, exports and imports and can raise issues of their concern and suggest ideas,” said Appaji.

The technical seminars on pharma will focus on issues like regulatory compliances, clinical research, packaging solutions, PICS and its implications and harmonisation of Indian pharmacopeia in international markets. The seminar will also throw light on recent government schemes and issues relating to financing in pharmaceutical exports. Speakers are also expected to deliberate on issues concerning service providers for statutory compliance, export opportunities and intellectual property rights during the seminar.
 
During the CEOs conclave, which is scheduled to be held on September 23, all CEOs and leaders of Indian pharma industry are expected to attend and deliberate on present challenges facing the Indian pharma sector in the country. During the panel discussion, the leaders are expected to deliberate on preparedness of pharma industry to resolve the present issues and tackle the future challenges.

Senior government officials from the departments of commerce, pharmaceuticals, health, DCGI, DBT, DST, DGFT, state and central drug controllers are also expected to attend the 11th AGM event of the Pharmexcil.

Source:pharmabiz.com

India Raises Import Tariff Value On Gold And Silver

The Indian Government today announced hike in import tariff value for gold and silver . The import tariff value of gold was increased by nearly 2.5%, in accordance with prices of precious metals in the international market. Meantime, tariff value on imported silver has been increased marginally by 0.2% for the second fortnight period of the current month.

The Central Board of Excise and Customs (CBEC) issued notification in this regard elevating the gold import tariff value to $363 per 10 grams. The import tariffs are being hiked from the existing $354 per 10 grams. Meanwhile the import tariff value of Silver has been increased slightly from $498 per kilogram to $499 per kilogram.

The government move to lower the import tariff value is in primarily on account of rebounding gold prices in the global and domestic markets. The strong cues from the market indicate that there is more upside left for gold prices.

Meanwhile, gold prices edged higher on London spot market session today, on the back of rising safe-haven demand amidst risks surrounding currency devaluation by Chinese authorities. Spot gold traded at $1,178.78 per Oz in morning trade in Europe. Meantime, a few brokerages and analysts have come out with reports that predict mildly elevated prices for gold in the near-term. HSBC foresses 10% surge in gold prices towards the end of the current year. Analyst at Phillip Capital too expects gold prices to remain calmly bullish going forward.

The gold in India edged higher by Rs 20 per 10 grams to Rs 26,220 per 10 grams on rising demand from retail buyers and jewellers top meet seasonal demand. Silver too witnessed marginal rise on increasing demand. The prices gained Rs 270 per kg to touch Rs 36,400 per kg.

Tariff value is the base price on which the customs duty on imported gold or silver is calculated and it further helps prevent under-invoicing.

Source:metal.com

 

Delhi High Court asks dept. to respond to challenge made against amended provisions of Service Tax A

Service Tax : Delhi High Court issued notice in matter of writ petition challenging validation of service tax audit vide section 94(2)(k), rule 5A(2) of Service Tax rules, 1994 and Circular, dated 10-12-2014

Here's Why The Rupee May Not Tumble Much Further Against The Dollar

The rupee tumbled to over two-year lows on Monday, continuing a weak trend that started after China devalued its currency last week. The world's second largest economy devalued its currency by over 5% in three tranches, in a bid to make its exports more competitive in the global market.

On Monday, the rupee had weakened to 65.21 against the dollar, a two-year low, breaching the September 2013-level it had touched against the dollar in the earlier trading session. Excess dollar demand from exporters is also keeping the rupee pressurized.

The rupee, however, has shed less gains to the dollar compared to other emerging market currencies, since the Chinese devaluation.

While the rupee may be shedding gains against the greenback, it's not a cause for alarm, Dr Arun Singh, Senior Economist at Dun & Bradstreet India said.

“The Indian economy and rupee today, are more resilient to international factors than they were during the last crisis,” he said.

In 2013, the Indian currency had weakened from 54 to nearly 69-70 to a dollar, a tumble that had to be contained by intervention from the government and the Reserve Bank of India (RBI). There is weakness in the rupee, but it is resilient, which is a good sign, Dr Singh said. There are multiple factors keeping the rupee low against the safe-haven dollar right now.

There's China's devaluation. China's economy has been slowing, and the Yuan has been devaluated to jump start it. Worries about an unrest in Ukraine; concerns in Greece are easing, but a consensus on the bailout plan still evades; and expectations of an interest rate hike from the US – a first in nearly a decade, are all keeping the rupee weak.

Dr Arun Singh said that despite the weak trend and numerous international factors pressurising the rupee, he doesn't “expect the rupee to cross 66 (to a dollar) this year”.

“The last 400 days of the new government stable government have improved the sentiment and confidence of investors; FII inflows are strong since. This is despite some concerns in India regarding growth,” Dr Singh said.

The Current Account Deficit (CAD) is down, fiscal deficit is expected to decrease, CPI is down, WPI is in negative territory, and RBI is expected to cut rates going forward, looking at the indicators. All this is increasing inflows into the country, he said.

The US Federal Reserve is expected to cut rates in September. Won't that ensure a sustained weakness in the rupee? Dr Singh said that the US Fed has been talking about an interest rate cut since the last 6-7 months. Indications were first put out in May-June, which was then postponed to September. He says, that a rate cut, however, isn't likely till late-November or December as economic indicators about growth in the US economy, although positive, aren't as strong.

Going ahead, in the mid-term, the rupee will keep international development in focus. Although, Dr Singh says, he doesn't see any significant change. “Unless any dramatic change happens in the US or China”, the rupee won't tumble much further, he said.

Source:dnaindia.com

AO was directed to determine date of conversion of capital asset into stock-in-trade for capital gai

IT : Though capital gains on conversion of capital assets into stock-in-trade, is payable only in year in which assessee ultimately sells such stock-in-trade, yet for purpose of computing capital gains date of conversion would have to be determined

Govt. tweaks Rules relating to reduction of tax credit under Delhi VAT

VAT/INDIAN ACTS & RULES : Delhi Value Added Tax (Amendment) Rules, 2015 – Amendment in Rules 6A, 7, 7A, 16, 45, Form DVAT 01, Form DVAT 04A, Form DVAT 11, Form DVAT 16, Form DVAT 16A and Form DVAT 17

CBDT notifies rules to determine period of stay of crew members of foreign bound ships in India

IT/ILT : Income-Tax (Twelfth Amendment) Rules, 2015 – Insertion of Rule 126

Sale of products while developing special skills in women wasn't commercial activity by trust

IT : Where motive of assessee is not generation of profit but to provide training to needy women in order to equip or train them and make them self-confident and self-reliant and occasional sales or trust's own fund generation was for furthering objects of trust, proviso to section 2(15) would not apply

Transferee-Co. can change its name as per Amalgamation Scheme

CL : Where scheme of amalgamation provided that name of transferee company would be deemed to have been changed to name of transferor company but Regional Director raised an objection that transferee company would follow Procedures and Rules laid down for such change of name, scheme being passed by requisite majority as laid down under section 391 there did not exist any necessity to have a repeated exercise of same in terms of section 21 of Companies Act, 1956 as amended by section 13 of Compan

TRO can’t review an order after lapse of 14 years without pointing out any apparent mistake in that

IT: TRO could not have reviewed an order under rule 87 of Schedule II to Act after lapse of 14 years without in any manner, pointing out how and why did TRO realize that there was a mistake/error in order

Officer-in-charge has no power to seize goods-in-transit with valid documents

CST & VAT: Tripura VAT - Officer-in-charge of check-post had no power to seize goods under transport, since documents were produced before him and he had not even prima facie come to conclusion that documents were false or forged

Govt. notifies backward areas of Bihar to provide tax incentives for setting-up of industrial units

IT : Section 32, Read with Section 32AD, of the Income-Tax Act, 1961 – Depreciation – Notified Backward Areas in Specified Districts of State of Bihar under First Proviso to Section 32(1)(iia) and Section 32AD(1)

Appellant held guilty of making stop payment request without proving that inferior quality goods wer

Negotiable Instruments Act : Where accused failed to prove that goods supplied by complainant were of inferior quality, accused was guilty of commission of offence under section 138 on dishonour of cheque issued by it in discharge of its liability towards goods supplied

Tax on expats reimbursed by parent Co. wasn't includible in operating revenue and TP analysis under

IT/ILT : Where TPO made addition to assessee's ALP for rendering software development services to its AE, since some comparables selected by TPO were improper on account of huge turnover and high RPT whereas some compares were developing their own software products, impugned addition was to be set aside

CBDT clarifies issues relating to exemption and approval of Educational Institutions

IT : SECTION 10(23C)(vi) OF THE INCOME-TAX ACT, 1961 – EXEMPTIONS – UNIVERSITY OR OTHER EDUCATIONAL INSTITUTIONS – NOTIFIED UNIVERSITY OR OTHER EDUCATIONAL INSTITUTION – CLARIFICATION ON CERTAIN ISSUES RELATED TO GRANT OF APPROVAL AND CLAIM OF EXEMPTION UNDER SECTION 10(23C)(vi)

Bangladesh Exports To Indian Market Witnessed Rise 15Pc In Fy2014-15

Bangladesh has earned $527.16m from its exports to Indian market in FY 2014-15 a rise by 15.45% compared to $456.63m in the last fiscal year as some products including textiles got duty and quota-free access, according to Export Promotion Bureau data.

Readymade garment export to the neighbouring country also increased by 8.31% to $104.25m in the year compared to $96.25m in the previous year.

Bangladesh has to compete with India’s local producers as they made same products. Besides, the Indian government patronizes local industry to boost economic growth, which caused slow RMG export growth to the neighboring country, said Khondaker Golam Moazzem, additional research director of Centre for Policy Dialogue.

He stressed on improving communication between Bangladesh’s RMG manufacturers and Indian retailers to increase bilateral trading. Besides this, he urged the government to negotiate with its Indian counterpart to lift the countervailing duty on the RMG products.

BGMEA vice president Shahidullah Azim said that RMG export growth to the Indian market was not satisfactory. Lilliput, the largest kids’ wear brand in India, did not pay $5.5m to 22 garment exporters of Bangladesh and this also discouraged RMG exports to India, which led to the slow growth.

The government needs to take measures through embassy in Delhi to ensure the payment of dues as the exporters were in the risk of shutting down their factories.

A BGMEA director said that Bangladesh has a bright export prospects in densely populated India which has a wide middle-class consumers base and that the garment exports to India were increasing due to high demands for Bangladeshi products like trousers, shirts, blouses, skirts, kids wear, cotton nightwear and jeans.

According to Exporters Association of Bangladesh president Abdus Salam Murshedy, Bangladesh’s export to Indian market has seen increase due to tariff waiver along with geographical proximity, but the growth was slow compared to the previous year. To attract consumers as well as the retailers to grab the big Indian market, Abdus Salam emphasis on organizing fairs in India.

Source:yarnsandfibers.com

Carrying out ‘seismic survey’ is a service and not works contract

CST & VAT: Tripura VAT: Assessee agreed to carry out seismic surveys for an entity to assist it in gas exploration. It used certain equipments for surveys. Since, equipments always remained in control of assessee, therefore, there was no transfer of right to use goods and, thus the contract was of service and not works contract.

Cement/steel used in construction of storage facility is eligible for Cenvat credit

Cenvat Credit : Storage is essential and is required for smooth running of factory; hence, Cement and steel used for construction of Silo meant for storage of cement bags, is eligible for credit as inputs

Suspended Customs Officer Jumps In Front Of Train

A 33-year-old Customs appraiser, working with Jawaharlal Nehru Port Trust (JNPT), reportedly committed suicide by jumping in front of a harbour line local near Khandeshwar station on Saturday morning.

Panvel GRP, who have identified the Customs official as Rishi Ranjan, recovered the body, with severe injuries, from the railway tracks between 6.30 and 7 am. A diary with handwritten notes and some printouts were found from the spot. Assistant inspector, Panvel GRP, Rahul Karbhari said the body was spotted by commuters crossing the tracks. "An accidental death report has been lodged," the officer said.

Ranjan, who had been recently posted in the imports section of JNPT, was suspended on July 29 over his alleged involvement in a case of illegally smuggled cigarettes. On the fateful day, directorate of revenue intelligence (DRI) officials had seized a container carrying cigarettes worth Rs 4.24 crore hidden in a consignment marked "trolley bags". The DRI has already arrested three other persons in connection with the case.

Ranjan had been suspended, as he was in-charge of container freight station import zone at the time. An inquiry has been on since the suspension and the deceased last appeared at the DRI office on August 12 for questioning. Reportedly, Ranjan was earlier working at Kandla port in Gujarat.

A resident of Krishna Kunj society in sector 20, Kamothe, Ranjan had married just four months ago in April this year. His wife and mother had reportedly gone to visit their relatives in Gujarat and Ranjan was staying alone at the time of his suicide. His family collected the body after a post-mortem was done at the municipal hospital in Vashi.

Source:timesofindia.indiatimes.com

Sea Demands Hike In Import Duty On Crude, Edible Oils

To protect farmers' interests and provide a level-playing field to domestic oilseed processors, industry body SEA on Monday sought increase in import duty on crude edible oil from 7.5 percent to 25 percent and on refined oil from 15 percent to 45 percent.

The import duties were last increased in December. In a memorandum submitted to the government on Monday, Solvent Extractor's Association (SEA) said, "We would like to bring to your kind notice the alarming increase in import of edible oils seriously hurting the domestic farmers and the vegetable oil refiners."

The increase in duties will protect the interest of crushers and also local farmers to sustain their interest in oilseed cultivation, the industry body said in a statement.

"The industry requested for increase in import duty on crude edible oils from 7.5 percent to 25 percent and that of refined oil for 15 percent to 45 percent," it added.

According to the SEA data, the imports of edible oils has reached a record level of over 10 million tonnes in the first nine months of the current oil year ending October 2015, as against 8 million tonnes in the year-ago period.

Total imports are expected to touch 14 million tonnes valued at Rs 65,000 crore in the entire 2014-15 oil year against last year's import of 11.8 million tonnes, it added.

About 60 percent of India's annual edible oil demand of 18-19 million tonnes is met through import, mostly from Malaysia and Indonesia.

According to the government's data, farmers have sown oilseeds in 163.79 lakh hectare till August 14 during the current kharif season that started from June, as against 160.83 lakh hectare in the year-ago period.

Source:moneycontrol.com

Yuan Devaluation Spurs India To Consider More Curbs On Steel Imports

India said it’s being forced to consider steel safeguard duties and more anti-dumping curbs as the yuan’s devaluation threatens to stoke surging Chinese shipments.

A steel import-tax increase earlier this month may not be enough of a deterrence, financial services secretary Hasmukh Adhia said. Adhia has seen the steel industry contribute to elevated bad debt in India, in part as producers struggle to compete with imports from nations such as China and Russia.

“The global lack of demand in steel is so strong that one isn’t sure how, even after this recent increase, it’s going to help,” Adhia said in an interview on Sunday in New Delhi. “We’ll have to think about other options, whether safeguard duty and anti-dumping duty can also be used.”

Import levies were pushed up after talks at the highest levels of government concluded that India must protect domestic producers for the time being, Adhia said. The industry should also spell out the need for more measures, he said. The finance and commerce ministries usually take decisions on curbs.

India raised the import tax on certain steel products to 12.5% from 10% on 12 August. The government imposed some anti-dumping duties in June. Indian mills including Tata Steel Ltd had sought higher taxes to check imports.

Indian steel imports jumped 58% to 3.5 million tonnes in the four months ended on 31 July, according to government data. In the first seven months of 2015, total exports from China expanded 27% to 62.13 million tonnes, the highest ever for the period, according to data compiled by Bloomberg.

China’s 11 August move to allow markets greater sway in setting the yuan’s level led to the biggest selloff in 21 years. That makes the flood of steel and aluminium exports from the world’s biggest producer even cheaper. “China has so much capacity,” Adhia said.

Source:livemint.com

Penalty was justified as person-in-charge of vehicle didn't produce any documents before officer

CST & VAT : Karnataka VAT - Where Investigation Officer intercepted a vehicle transporting goods of assessee and at time of interception or immediately thereafter person in charge of goods vehicle did not produce any documents before Investigation Officer, imposition of penalty upon assessee under section 53(12) was justified

SEBI amends ICDR norms; mandates issuer to accept bids in public issue only via ASBA

SEBI/INDIAN ACTS & RULES : Sebi (Issue of Capital and Disclosure Requirements) (Fifth Amendment) Regulations, 2015 – Amendment in Regulations 12, 58, 65, Schedule VIII, Schedule XI, Schedule XIII & Schedule XVI

Investment by Category I and II AIFs in shares of start-ups shall be deemed to be investment in unli

SEBI/INDIAN ACTS & RULES : Sebi (Alternative Investment Funds) (Amendment) Regulations, 2015 – Amendment in Regulation 15

Takeover code not applicable to startups that are listed without making a public issue

SEBI/INDIAN ACTS & RULES : Sebi (Substantial Acquisition of Shares and Takeovers) (Third Amendment) Regulations, 2015 – Amendment in Regulation 1

Penalty for delay in filing TDS return to be levied from date of deposit of TDS instead of due date

IT : Where assessee filed quarterly e-TDS returns belatedly because TDS could not be deposited in time due to non-availability of funds, penalty under section 272A(2)(k) could be levied only from date of paying tax to Central Government

Government Hikes Tariff Value On Imported Gold, Silver

The government on Monday raised the import tariff value on gold to USD 363 per 10 grams and silver to USD 499 per kg, taking strong cues from the global market. For the first fortnight in August, the import tariff value of gold and silver stood at USD 354 per 10 grams and USD 498 per kg, respectively.

The government on Monday raised the import tariff value on gold to USD 363 per 10 grams and silver to USD 499 per kg, taking strong cues from the global market.

The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing. The tariff value is revised on a fortnightly basis. The change in tariff value of gold and silver has been notified by the Central Board of Excise and Customs, said an official statement issued by the Finance Ministry.

The government raised the tariff value of imported gold and silver marginally taking into account the rise in global prices.

At Singapore market, prices of gold on Monday rose slightly to USD 116.70 per ounce, while that of silver to USD 15.34 per ounce. In the national capital too, gold was ruling at over Rs 26,200 per 10 grams and silver at Rs 36,130 per kg.

After declining in June, the country's gold imports jumped 62.2 per cent to USD 2.96 billion in July, as against USD 1.82 billion in the year-ago period, as per the government data.

Gold is the second-largest import item for India after petroleum. Higher gold import bill adversely affects the country's current account deficit, which occurs when value of import of goods and services is more than exports.

Source:ibnlive.com

Rbi Sets Rupee Reference Rate At 65.2200 Against Dollar

The Reserve Bank of India today fixed the reference rate of rupee at 65.2200 against the US dollar and 72.3942 for the euro as against 65.1225 and 72.5595 respectively, last Friday.

According to an RBI statement, the exchange rates for the pound and the yen against the rupee were quoted at 102.2324 and 52.42 per 100 yen, respectively, based on reference rates for the dollar and cross-currency quotes at noon. The SDR-rupee rate will be based on this rate, the statement added.

Source:business-standard.com

Assessment carried out on basis of facts revealed in departmental audit amounts to provisional asses

CST & VAT : Tamil Nadu VAT - Where audit department on inspection found that assessee had suppressed sales of taxable scrap and thereupon Assessing Authority determined turnover, impugned assessments would be considered as revision of assessments and not best judgment assessments

ALP of interest on loans given to AE has to be fixed on basis of LIBOR

IT/ILT : In respect of loan granted by assessee to its AE located abroad, LIBOR rate of interest should be applied for determining ALP

Delisting norms not applicable to securities listed by start-ups without making a public issue

SEBI/INDIAN ACTS & RULES : Sebi (Delisting Of Equity Shares (Second Amendment) Regulations, 2015 – Amendment In Regulation 3

Only name of assessee on parcel containing smuggled goods doesn't make him a smuggler

Excise & Customs : Mere fact that speed post parcel containing smuggled goods bore name and address of assessee does not prove that assessee had smuggled such goods, especially when assessee had denied any such imports by him and there was no other evidence relating assessee to such goods

SEBI notifies norms for listing of start-ups on Institutional Trading Platform

SEBI/INDIAN ACTS & RULES : Sebi (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2015 – Amendment in Regulation 60, Schedule IV, Schedule VI & Schedule VIII; Substitution of Regulations 106W, 106X, 106Y, 106Z, 106ZA, 106ZB, 106ZC, 106ZD, 106ZE & 106ZF AND OMISSION OF SCHEDULE XIX-A

ITAT can't deny rectification just because order is challenged in High Court but is yet to be admitt

IT: If Assessee had challenged order of Tribunal under section 260A before High Court, it does not mean that power under section (2) of section 254 cannot be invoked either by assessee or by revenue/Assessing Officer

No extended period after 22 months of audit when Show Cause Notice doesn't allege suppression

Excise & Customs : Where all facts came to knowledge of department in course of audit, then, show-cause notice issued 22 months thereafter cannot invoke extended period, more so, when notice did not specify deliberate act amounting to suppression/intention to evade

ITAT rightly set-aside block assessment as AO didn't record satisfaction that seized material pertai

IT : Recording of satisfaction by Assessing Officer is a pre-condition to initiate proceedings in terms of sections 153A and 153C

Cairn India Seeks Oil Swaps To Skirt Oil Export Ban, Get Higher Margins

Cairn India Ltd has proposed a swap deal to skirt an oil export ban, by selling its high-way Rajasthan crude oil to foreign firms at higher rates and in return supplying an equivalent quantity of oil.

The nation's biggest onshore crude oil producer wants the government to allow refiners like those based in Singapore and Japanese utilities interested in high-wax crude to pick up the Rajasthan crude and replenish the exported volume with no loss to any of the parties.

Sources close to the company said Cairn India has sought government approval for a tripartite agreement wherein Barmer crude oil will go to the international market where it will get better price than the ones realised locally.

The firm getting access to low-sulfur crude oil will supply equivalent quality of crude oil to Indian refiners.

Shipping the Rajasthan oil to customers who are best equipped to process the low-sulfur crude will help Cairn India get a premium versus a 10-12 per cent discount on Brent prices that local refiners, including Indian Oil Corp ( IOCBSE -0.80 %), Essar OilBSE -1.57 % and Reliance IndustriesBSE -1.52 %, currently pay.

Cairn India had previously sought approval to export the oil but the government had rejected it as the nation is 80 per cent import dependent to meet its oil needs.

Sources said the company now says it is not seeking a permission for exports but only a swap arrangement.

The three-way deal would essentially mean Cairn India will export Rajasthan oil but the deficit at its local customer will be made up by sourcing the commodity from an overseas supplier.

Sources said the company believes the pricing of Barmer crude oil at a discount to Brent has led to USD 1.94 billion loss to all stakeholders, including the government, on over 282 million barrels of oil produced since 2009.

Most Indian refineries are designed to process cheaper, high-sulfur crude, while that produced from the Rajasthan fields has low sulfur content.

The unique nature of the Barmer crude makes it difficult to optimise it in Indian refineries and so the crude is being sold at a discount.

The government had in September 2009 designated PSU refineries to buy the Rajasthan crude at a provisional pricing formula. A discount was provided as an initial incentive.

Since the PSU refineries were not able to leave the allocated quantity of crude oil allocated to them, the government allowed Cairn the freedom to sell remaining quantity to domestic private refineries.

At present, Essar and RIL buy bulk of 170,000 barrels per day of output from Rajasthan.

Source:- economictimes.indiatimes.com

Sugar Industry Looks For Festive Demand And Export Incentives

India’s total sugar production is estimated to be 28.3 million tonne in sugar year 2014-15 against annual demand of around 24 million tonne. With an estimated 10.2 million tonne of carryover stocks from current and previous years, the total availability in 2015-16 is forecast at a staggering 38.2 million tonne.

This is not the first time that sugar output has exceeded domestic demand in the last five years and the trend is expected to continue in this sugar marketing year (Oct­ober-September) too. Ma­ny analysts think excessive domestic production and large carryover stocks have undermined the initiatives taken by the centre to help the sugar industry.

Attempts to export the commodity have come a cropper because of glut in the international market. India could manage to export barely 1.26 million tonne of the sweetener in the seven months to April. Global sugar production this year is estimated to exceed demand by 620,000 tonne, prolonging the problem of the industry.

India had exported 17.5 lakh tonne of sugar during 2013-14 (October 2013-March 2014) whereas between October 2014 and April 2015, exports stood at 1.26 mt. The export target for 2015-16 is 40 lakh tonne. While the Centre seems to be confident of meeting this target, industry analysts are skeptical.

Kamal Jain of Kamal Jain Trading Services said, "Achieving the target of 40 lakh tonne appears highly doubtful. Even with a bumper subsidy support of up to Rs 5,000 per tonne (if at all given), our rates will be much higher compared with that of Brazil and other countries due to heavy exchange rate fluctuations. There are indications that Brazil may cut prices for raw sugar to 8-9 cents/lb. This will bring down costs to below $300 per tonne. In the given situation, the export plan is likely to fail. It may succeed only if we can gain market access like Brazil. But this is doubtful, since our exporters have no links for selling raw sugar directly to refineries and leading overseas institutional buyers, like makers of beverages, confectioneries and other food products.”

Further the idea of bartering sugar for pulses may not prove effective. This idea was floated recently by Union commerce and industry minister Nirmala Sitharaman, who felt India may get pulses from African countries, Myanmar and Canada in exchange of sugar in a barter deal. Since these countries are not big sugar consumers, the scheme may not prove as effective as it sounds.

Jain said, “It is virtually impossible to structure barter or counter-trade deals in a commodity which is exposed to high price volatility and with countries that have no clue how the counter-trade works. Millers and users in Sudan, Somalia, Tanzania and Sri Lanka are in no mood to wait for their governments to understand the theory of barter. Neither does the Indian government have any readily available proposal from any country to barter sugar against specific commodities.”

The sugar industry of Brazil is also facing serious complications. More than 100 factories in the Latin Amer­ican country have either been closed or are on the verge of bankruptcy. There is a growing fear that the sugar business in the busy October-March period may suffer a serious blow. This, in turn, may brighten up business opportunities for India during 2015-16. But one has to wait and watch till October.

Emkay Commotrade said sugar futures traded on a higher note amid talks of exports with the help of subsidies and hopes of a rise in demand ahead of festive season, like Ganesh Chaturthi and Raksha Bandhan. Sugar prices are likely to move up in the short term due to overall bullish sentiments on expectation of a rise in exports as well as domestic demand.

Kotak Commodities said the price rise could not sustain. "Overall, the long-term trend looks bearish for sugar,” it said.

Source:- mydigitalfc.com

Petitioner couldn't be prosecuted for defaulting in complying with buy-back norms if no public offer

CL: In absence of offer or public announcement of buy back of equity shares by petitioners, petitioners could not be prosecuted for offence punishable under section 77A(11)

Ban Palm Kernel Oil Import

Coconut growers in the region have demanded a ban on import of palm kernel oil to prevent adulteration of coconut oil.According to industry sources, price competition is the cause for adulteration. Unadulterated coconut oil cannot be sold for less than Rs. 170 per litre, whereas adulterated oil under brand names are being sold for Rs. 40 to Rs. 50 less, the sources said.

T.A. Krishnasamy, United Coconut Growers Association of South India, told The Hindu that in some brands, adulteration was up to 70 per cent. Adulteration using palm oil was easy because it was colourless and odourless, he explained.

Coconut growers, Mr. Krishnasamy said, were upset with the the Centre for not following what Atal Behari Vajpayee’s government had laid down — it had banned the import of palm kernel.

“The Congress-led government that came to power after the NDA government lifted the restriction and the present BJP government did not care to restore the ban,” said Mr. Krishnasamy.

Farmers are also sore with the State government for extending 25 per cent subsidy for palm kernel import made through the Chennai and Tuticorin ports, he said.

Kerala, where coconut oil consumption is highest in India, has been tough in dealing with adulteration.

Earlier this year, the Food Safety Department in Kerala banned nine brands of coconut oil from the market after detecting adulteration with palm kernel oil.

Due to availability of adulterated coconut oil at low prices, coconut is procured cheaply by the mills, Mr. Krishnasamy said.

Vested interests in tandem with the medical fraternity kept the demand for coconut oil low.

He said consumption of pure coconut oil was healthy for the body. He faulted the lobby of other edible oils for prevailing upon the medical fraternity in Tamil Nadu to create an impression that saturated fats in coconut oil raises cholesterol levels.

“The medical fraternity has, in fact, begun to accept the utility of pure coconut oil. If used for consumption without adulteration, coconut oil is indeed good for the body,” C.N. Raja, State Honorary Secretary, Indian Medical Association, Tamil Nadu Branch, said.

Source:- thehindu.com

Import-Export Laws Changed As Vn Adjusts To Int'l Rules

Pham Thanh Binh, a representative from USAID Governance for Inclusive Growth (USAID GIG) talks to Thoi Bao Kinh Te Viet Nam (Viet Nam Economic Times) about adjustments made to import and export laws.

Are amendments to export and import tax laws necessary?

After 10 years of implementation of the laws, amendments are truly essential if Vietnam is to meet requirements for development and international integration. Viet Nam has joined several free trade agreements (FTAs) in the past few years, which means the country will have to follow international rules in order to participate equally in the world market.

Besides, the amendment could support the Government's resolutions on business and environmental reform, and increase our nation's competitiveness.

Drafts of the two laws are up for public comment. Do you think the offered adjustments will work in reality?

The adjustments generally seem like they will lift obstacles that have burdened businesses for a long time. However, the specific content must be discussed further.

For example, the laws regulate that businesses have to pay taxes before customs clearance. We examined international rules and found that businesses do not pay fees and taxes right after completing customs procedures for goods clearance. They are given time to prepare the money. If we follow international rules, procedural issues and tax payment should be simpler and easier for businesses.

In terms of a monthly tax declaration, the revised laws give priority to specific businesses. But at present, the number of businesses which are given priority treatment is 38 out of a total 50,000 import-export businesses. The businesses benefiting from this is too few, and most of them are big companies. These priority policies will not create favourable conditions for small and medium enterprises, which are the majority.

If lawmakers keep the preferential tax option, they should expand the number of businesses eligible.

The law compiling committee also proposed that prioritised enterprises can pay taxes without interest within 10 days. However, the proposition is not concrete or developed so it can be applied in many different ways.

Collecting taxes from citizens in border areas should be reconsidered. At present, citizens do not have to pay taxes if they buy goods for personal use. In my opinion, the adjusted laws should clearly regulate just levying taxes on those who buy goods for re-selling inland and to goods distributors.

The concept of ‘tax payers' is currently understood in a variety of ways. How can the concept be unified?

This term should be made clear. I think the laws should simply declare that tax payers are exporters and importers, and those who do pay the tax can be anyone including mandated individual(s) or agent(s).

What should import-export businesses expect from the revised laws?

Import-export enterprises can expect that much of the revisions will create considerable changes in administrative procedures, especially their simplification.

Many items in the laws wish to create favourable conditions for enterprises. For example, importing raw materials for domestic production will be exempted from taxes.

Amendments to tax refund and declaration procedures are good additions. — VNS

Source:- vietnamnews.vn

Rupee Opens Lower At 65.16 Against Us Dollar

The Indian rupee on Monday weakened against the US dollar, tracking losses in Asian currencies and on India’s widening trade deficit. The home currency opened at 65.16, down 0.23% from its previous close of 65.01. The benchmark Sensex index rose 0.09% to 28,093.54 points.

Most of the Asian currencies were trading lower. Malaysian ringgit was down 0.74%, Taiwan dollar 0.53%, Indonesian rupiah 0.5%, Thai baht 0.35%, Philippines peso 0.23%, South Korean won 0.13%, Japanese yen 0.07%.

Data released by the commerce ministry on Friday showed both exports and imports contracted 10.3% in the month, leading to a trade deficit of $12.8 billion, an eight-month high.

The yield on India’s 10-year benchmark bond was trading at 7.747% compared with its Friday’s close of 7.744%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has lost 3%, while foreign institutional investors have bought $6.92 billion from local equity and $6.29 billion from bond markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.679, up 0.17% from its previous close of 96.52.

US industrial output advanced at its strongest pace in eight months in July in another bullish sign for third-quarter economic growth that boosts the prospects of a rate hike next month. Industrial output increased 0.6% in July, far above the revised 0.1% gain in June, due to a strong gain in automobile manufacturing, Reuters reported.

Source:livemint.com

TP provisions not applicable on issue of shares to foreign AE; ITAT follows ratio of 'Vodafone' case

IT/ILT : In case of issue of shares by assessee-company to its AE located abroad, there is no provision in Chapter X mandating addition to assessee's ALP on account of less share premium received and also consequential interest on resultant deemed loan

Bar of unjust enrichment wouldn't apply if CA's certificate showed that burden of duty wasn't transf

Excise & Customs : Where assessee has produced : (a) Chartered Accountant certificate certifying that burden of security deposit made by it was not transferred; and also, (b) Balance Sheet wherein amount was shown as recoverable as security deposit, bar of unjust enrichment stands satisfied

Royalty/FTS arising to Russian defence export enterprise in pursuance of agreement with HAL will be

IT/ILT : Section 10(6C) of the Income-Tax Act, 1961 - Exemption – Foreign Company, Income Arising to, by Way of Fees for Technical Services – Notified Foreign Companies

Vehicles carrying goods couldn't be intercepted just because they were plying on a diversified route

CST & VAT : Tamil Nadu VAT - Where Commercial Tax Officer intercepted vehicles carrying goods of assessee and detained goods along with vehicles for reason that vehicles travelled in a diversified route, there is no provision in VAT Act that in case of taking a diversified route from regular route, Commercial Tax Officer was entitled to intercept vehicles

Govt. notifies 'Tax Information Exchange Agreement' with San Marino

IT/ILT : Section 90 of the Income-Tax Act, 1961 – Double Taxation Agreement – Agreement for Exchange of Information with Regard to Taxes with Foreign Countries – San Marino

CBDT asks Pr. CIT and Chief CIT to expedite disposal of pending rectification applications

IT : Section 154 of the Income-Tax Act, 1961 - Rectification of Mistake - Apparent from Records – List of Pending Rectifications under Section 154 in Demand Cases as on 22-7-2015

Govt. notifies certain entities for purposes of Sec. 10(46) exemption

IT : NOTIFICATION NO. 64/2015 [F.NO.196/12/2014-ITA-I], NOTIFICATION NO. 65/2015 [F.NO.196/03/2015-ITA-I], NOTIFICATION NO. 67/2015 [F.NO.196/31/2014-ITA-I], NOTIFICATION NO. 68/2015 [F.NO.196/18/2014-ITA-I], DATED 13-8-2015

Transferee-Co. can change its name as per Amalgamation Scheme without adhering to Companies Act

CL : Where scheme of amalgamation provided that name of transferee company would be deemed to have been changed to name of transferor company but Regional Director raised an objection that transferee company would follow Procedures and Rules laid down for such change of name, scheme being passed by requisite majority as laid down under section 391 there did not exist any necessity to have a repeated exercise of same in terms of section 21 of Companies Act, 1956 as amended by section 13 of Compan

Comparable in which extraordinary event of IPO took place was excludible for TP study

IT/ILT : Where TPO made addition to assessee's ALP for rendering software development services to its AE, since one comparable selected by him was a giant company in area of software development assuming all market risks leading to higher profit, impugned addition deserved to be set aside

Cord wires connecting main switch with an instrument are electronic goods

CST & VAT : Tamil Nadu VAT - Cord wire connecting main switch with instrument is an electronic goods and it can not be regarded as electrical goods

Revised monetary limit for filing appeal before ITAT is applicable to pending appeals, says Kolkata

IT : Where CBDT Instruction No. 5 of 2014 revising monetary limit to Rs. 4 lakhs for filing appeal before Tribunal apply to pending appeals also, as monetary limit of appeal filed by revenue was less than Rs. 4 lakhs, same was to be dismissed

Appellant held guilty for making stop payment request without proving that inferior quality goods we

Excise & Customs : Even in matter of concession by one party, Tribunal should record brief facts and reasoning to support its order; an order without mention of facts and reasoning is cryptic and has to be remanded back

Order wasn't time-barred as assessee had already found that order was ready to be served on his visi

IT : Where assessee visited Department's office and found assessment order was ready to be served upon him and also there was no indication that Assessing Officer revised his order, assessment order could not be treated as barred by limitation

Issue regarding taxability of sponsorship service under 'IPL' is appealable before Apex Court and no

Service Tax : Issue 'whether IPL is a sporting event and sponsorship therein is liable to service tax' relates to taxability/rate of service tax and is therefore, not appealable before High Court

TP addition deleted as authorities failed to apply related party filter of 15% while selecting compa

IT/ILT: Where TPO made addition to assessee's ALP in respect of rendering software development services to its AE, in view of fact that authorities below failed to apply RPT filter of 15 per cent of total revenue while selecting comparables whereas some other comparables were inappropriate on account of their huge turnover, impugned addition deserved to be set aside

Revised limitation period for making best judgment assessment under Punjab VAT Act has retro-effect

CST & VAT : Punjab VAT: Where limitation period for making best judgment assessment was increased from three years to six years vide an amendment; since by reading entire provision as a whole makes it clear that the provision will have retrospective effect, such revision in limitation period is constitutionally valid

On conversion of DTA unit into EOU unit, DTA unit can transfer balance of Cenvat to EOU

Cenvat Credit : In absence of any bar in rule 10, credit available in books of DTA unit may be transferred to 100 per cent EOU on date of conversion of DTA into EOU

Co. providing software development services not comparable with software product Co. owing significa

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering software development services to its AE, since some comparables selected by him were improper on account of owning significant intangibles developing their own software products and having turnover in excess of Rs 200 crores, impugned addition was to be set aside

Mp Urges Commerce Minister To Ban Import Of Natural Rubber

Dakshina Kannada MP Nalin Kumar Kateel has urged union minister of state for commerce and industry Nirmala Sitharaman to consider banning import of natural rubber and address other issues of rubber growers. Rubber Board's statistics reveal there is shortage of 50,000-60,000 tonnes of natural rubber production in India against industrial requirement of the country. At the same time, price of natural rubber has dipped by 1/3 compared to 2012 prices.

Presenting a copy of the memorandum of Karnataka State Rubber Cultivators' Hitharakshana Vedike to the minister in New Delhi, Nalin said the vedike has sought immediate government action to refit the minimum price of RSS 4 rubber at Rs 180/kg considering the cost of escalation of cost in production. The vedike said 85% of natural rubber is produced by marginal, medium and small farmers and the extent of land owned by them varies from 10 cents to 2 acres.

Noting that farmers in the state are facing a grave situation owing to steep price fall, Nalin said the predominant reason for this is the huge volume of import of natural rubber in to the domestic market. Nalin also sough urgent financial aid to the rubber sector to the tune of Rs 900 crore from the Price Stabilisation Fund of the union government to the rubber sector, which he said is essential to rescue the rubber growing farmers not only in Karnataka but also Kerala.

Import duty should be increased to 40% of the price and import should be through select ports. Strict checks should be implement to make sure that rubber below RSS 4 quality is not imported. Natural rubber import should be restricted as requirement specific as certified by the Board rather than distorting price structure or manipulation of domestic market. Board should procure at least 1 lakh TEU rubber at Rs 180/kg as immediate arrangement to save growers in distress.

Source:- timesofindia.indiatimes.com

Jsw Steel, Kalyani Steels Look At Price Cuts After China’S Yuan Devaluation

JSW Steel Ltd and Kalyani Steels Ltd are considering cutting some steel product prices to preserve market share, worried Chinese exports will become even cheaper due to a weaker yuan, company executives told Reuters.

India — the world’s fourth-largest steel producer — turned net c in the year to 31 March as an oversupplied China flooded it with cheap metal, mainly for construction.

China’s decision this week to devalue its currency has further worried Indian steel companies, most of whom operate on razor-thin margins.

A senior official at JSW, India’s third largest steel company, said it may keep prices unchanged for its high-end products, which make up 37% of its output, but that for the rest it may be difficult to hold to current rates.

R.K. Goyal, managing director of medium-sized producer Kalyani Steels, said it could scale down operations or further cut prices despite losing money.

“We will have to cut prices and bear losses,” Goyal said. “It’s very difficult to close steel plants entirely but we may have to shut some units.”

India’s steel imports jumped 72% in the fiscal year to end-March to 9.3 million tonnes, with China accounting for about a third of the total.

Over April-June — India’s fiscal first quarter — steel imports from China rose 49% from a year ago to 723,000 tonnes, according to government data.

India-based Tata Steel, also Europe’s second-largest steelmaker after ArcelorMittal, has said the country is importing 1 million tonnes of steel a month.

Spokesman Chanakya Chaudhary declined to comment on Tata’s pricing strategy but said there would be “mayhem” in the Indian market after the yuan devaluation.

The JSW official said although India’s steel prices have fallen 20% in the past one year, consumers still prefer to buy China’s even cheaper imports. The official declined to be named as he was sharing market-sensitive information.

India has already raised the import duty on some steel products to 12% but companies say that’s not enough to protect the local industry.

Ravi Uppal, managing director of Jindal Steel And Power Ltd, said his company has cut prices by as much as 25% in the past one year and can’t afford any more cuts.

“If the situation perpetuates, we will have no other option but to cut production ... We will continue to cut costs wherever we can, but the government has to protect us,” Uppal said.

Source:- livemint.com

India's Ioc May Partly Pay Pending Oil Dues To Iran This Month - Exec

India's top state-owned refiner Indian Oil Corp could pay a part of its oil import dues to Iran as early as this month, a senior company executive said on Thursday.

Indian refiners had got approval to pay Iran $1.4 billion in oil dues, Reuters reported earlier, in one of the first signs a nuclear deal with six major world powers is helping Tehran unlock frozen funds.

The company's finance director A.K. Sharma told reporters that while there was no immediate timeline for the payment, a partial payment could be possible this month.

Indian Oil has still to pay around $500 million to Iran, Sharma said.

India, the world's fourth-largest oil consumer, has run up a $6.5 billion bill for Iranian oil that it has been largely unable to pay because banking channels were blocked by Western financial sanctions.

Source:- reuters.com

Price Slide Led To Jump In July Gold Import

 Gold import in July had doubled to 90-95 tonnes from the 47 tonnes in June. July (and June) is normally a lean season for gold in India, the world’s largest consumer and this is the highest figure for July in five years. It was 40 tonnes in July 2014.

The rise was due to a sharp fall in prices, which spurred demand. Consumers went for early buying, ahead of the festival season which begins from end-August. Rural demand, too, starts only after these months, if rainfall if normal and there are signs of a good crop.

This time, prices started falling from the last 10 days of June and continued in July. Prices started falling from Rs 28,000 per 10g and went below Rs 25,000. Price-sensitive consumers came out to buy.

Sudheesh Nambiath, senior analyst at GFMS Thomson Reuters, said: “Demand from India has been very strong and since July 20, the NCDEX-polled domestic gold premium has averaged approximately at $2 (an oz), an indication of strong offtake despite increased supplies. The response at the jewellery show was overwhelming.” The reference is to the 32nd India International Jewellery Show here, an annual business-to-business exhibition, in early August.

With prices falling, the physical market which was quoting a discount, has turned it into a premium. In June, the discount was $4-8 an oz; it turned into a $2 premium in recent weeks.

In the past two days, gold prices have gone up almost Rs 1,000 per 10g, due to a lower rupee value and increase in international prices. China’s devaluation of their currency has turned gold positive. Says Nambiath, “The Indian currency is on a weak footing currently, thereby providing a floor for gold in rupees. And, as the gold price in rupees stabilises, consumers on the sidelines will return to the market, thereby lifting the physical demand.”

In July, the importing agencies reported a good flow of orders, with the higher premia only encouraging larger volumes held on a consignment basis. In the new Foreign Trade Policy, there are three private companies qualified as nominated agencies, thus being eligible to supply to the domestic market. They have been permitted by the Reserve Bank to also import gold on a consignment basis, not only against payment.

Source:- business-standard.com

Rupee Breaches 65/Dollar On Continued Slide In China's Yuan

The rupee reversed early gains to hit the key 65 per dollar mark on Thursday. It hit a low 65.20 per dollar, a two-year low against the greenback. The rupee last traded around these levels in September 2013 when the country was struggling with slow growth and rising deficits.

Reuters citing traders said the Reserve Bank of India likely sold dollars at around the 65 level to slow the rupee's falls.

Selling in the rupee has intensified over the last three days following China's unexpected devaluation of its yuan currency on Tuesday. The devaluation of the yuan has dragged down global equity and currency markets, leading to a sharp selloff in the rupee too.

Yuan's devaluation has sparked fears of a global currency war; analysts say continued depreciation in China's currency will increase the volatility in the rupee, pressure domestic exports and result in dumping of cheap Chinese goods in to India.

"We are part of the global markets and we are responding to what is happening in the global market," said Jamal A. Mecklai, CEO of Mecklai Financial & Commercial Services.

The reversal in the rupee led to a correction in stock markets too. The BSE Sensex, which had surged as much as 280 points in morning trade, ended just 37 points higher at 27,549.

The rupee is now on course for a sixth straight day of loss. As of 4.40 p.m., the rupee traded at 65.17 per dollar

Source:- profit.ndtv.com

Time-limit to file refund claim isn't applicable to refund of tax paid at insistence of dept.

Excise & Customs : Where tax has been paid at insistence of department without any adjudication/assessment order, refund of said tax would not be governed by time-limit of section 11B

AO couldn't ignore interest on FDR while computing remuneration of partners if it was held as busine

IT : Where Assessing Officer disallowed a part of remuneration payable by assessee-firm to its partners under section 40(b)(v) on ground that interest on FDRs was to be excluded for purpose of calculation of remuneration payable to partners, since no such adjustment had been made by him while computing income from business, impugned disallowance was to be deleted

AO couldn't ignore interest on FDIs while computing remuneration of partners if it was held as busin

IT : Where Assessing Officer disallowed a part of remuneration payable by assessee-firm to its partners under section 40(b)(v) on ground that interest on FDRs was to be excluded for purpose of calculation of remuneration payable to partners, since no such adjustment had been made by him while computing income from business, impugned disallowance was to be deleted

RBI urges taxpayers to remit income-tax dues in advance

IT/ILT/CL : Pay Income-Tax Dues in Advance at RBI or at Authorized Bank Branches

Doing survey and preparing design for canal amounted to 'consulting engineer's service' prior to 16-

Service Tax : Survey, design, preparation of plan and estimate of canal and its distribution network under a composite work order by qualified consultant/consulting firms would be 'consulting engineer's service' prior to 16-6-2005 and 'survey and mapmaking services' thereafter

Prohibition placed on work contractor to avail of sec. 80-IA relief couldn't be imported into sec. 8

IT : Where Assessing Officer denied deduction claimed by assessee under section 80-IB, by invoking provisions of section 80-IA (13), by holding that nature of activity of assessee was job work, since said provisions would not be applicable for a claim under section 80-IB, deduction claimed would be allowed

HC directs Centre and UP Govt. to ensure early establishment of CESTAT bench at Allahabad

Excise & Customs : High Court expressed its displeasure over non-establishment of CESTAT Bench at Allahabad despite Notification dated 1-11-2013 and issued directions to make arrangements for setting up same

Changes made in FDI policy to ensure that India remains investor-friendly destination, says Nirmala

FDI/FEMA/ILT : Relaxation in FDI Sectoral Cap

Bihar Govt. prescribes method to levy penalty on suppressed turnover; amends VAT rules

VAT/INDIAN ACTS & RULES : Bihar Value Added Tax (Amendment) Rules, 2015 – Amendment in Rules 19 & 41; Insertion of Rule 24A & Form RT-IIIA and Substitution of Form RT-I, Form RT-III & RT-V

Remittance advice by foreign bank and bank statement of donor proved genuineness of foreign gift

IT: Where entire details of gift transaction were fully explained through bank statement of assessee, remittance advice, bank statement of donor and foreign remittance advice issued by bank, addition made under section 68 was to be deleted

No evasion penalty when legal position before and after amendment wasn't clear

Excise & Customs : Where, during relevant period, legal position and interpretation of unamended law and position after amendment, was in a fluid state, it would not be appropriate to levy penalty

Tribunal shall be made a party where it is required to defend its own order

Constitution : When a Tribunal or authority is required to defend its own order, it is to be made a party failing which proceeding before High Court would be regarded as not maintainable

Grant of minority status to educational institution doesn't lead to denial of trust's registration

IT : Merely because minority status is accorded to educational institutions run by a society, it cannot be regarded as being established for benefit of a particular religious community; registration cannot be denied on this ground

Detention of vehicle and goods carried along with all necessary documents was illegal

CST & VAT : Tamil Nadu VAT - Where assessee supplied goods from Haryana to a dealer in Tamil Nadu and driver of vehicle carrying goods was in possession of invoices as well as LR copy at time of interception of vehicle by Competent Authority at check-post and consignee TIN number was mentioned in invoices, detention of vehicle and goods was illegal

Fluctuating margin of a company over years doesn't justify its exclusion from list of comparables

IT/ILT: Where TPO made addition to assessee's ALP by rejecting comparables chosen by assessee in its TP study, in view of fact that certain comparables chosen by TPO were not found to be comparable on account of functional difference, absence of segmental details, possessing tangibles or IPRs, related party transactions etc. same had to be excluded

Repayment of loans without any identity of creditors proved that loan receipts were unexplained inco

IT : Where assessee's books of account depicted repayment of loan with no identity of creditors and assessee had not produced any material to show that to report loan further loans were availed same was to be treated as undisclosed income of assessee

India To Raise Tariffs On Some Base Metals By 2.5 Percent

India will increase the import duty on some base metals by 2.5 percent, according to a list of business on the website of the upper house of parliament on Wednesday.

Finance Minister Arun Jaitley will lay papers seeking to "increase the basic customs duty by 2.5 percent on specified goods falling under Chapter 72", the list said.

Iron and steel, copper, nickel and aluminium are among commodities listed as base matals under Chapter 72 of the Central Board of Excise and Customs.

Source:in.reuters.com

 

Andhra Pradesh High Court lays down principles to determine levy of purchase tax on by-products

CST & VAT : Andhra Pradesh VAT - Where assessees purchased paddy, raw dhal, soyabean seed and raw cotton from agriculturists and produced therefrom rice, dhal, soyabean oil and cotton lint, respectively and also obtained by-products, which were exempt from tax, and Assessing Authority levied purchase tax on proportionate purchase price of goods, matter was to be sent back for examination afresh in light of position of law laid down in instant case

Chinese Import Decline Hits The Indian Spinning Sector

Cotton spinning mills in northern India are planning to shut down one day a week. According to Chandigarh based Northern India Textile Mills’ Association (NITMA) that has 98 member mills that includes leading names such as Vardhaman and Trident, etc., excess spinning capacity and decline in exports this fiscal year have resulted in poor cash flow and excessive stocks.

In addition to these fiscal matters, textile policies in some southern states and those of Madhya Pradesh and Gujarat are hitting the northern spinning mills hard, stated Mr. Sharad Jaipuria, President of NITMA.

Mr. H. S. Cheema, Senior Vice President of NITMA stated that the spinning sector is under crisis and plans like shutting the production one day in a week are under serious consideration.
In a telephone conversation with this scribe today, Mr. G. Balasubramanian, Secretary General of NITMA stated India has about 10% excess spinning capacity.

According to him, “yarn exports have fallen by about 20% year-on-year in the first quarter of this year.” More importantly, imports by China have declined by about 30-40% this year creating a greater blow to the Indian spinning industry.

Source:hellenicshippingnews.com

 

India’S B5 Program Could Ease Crude Palm Oil Surplus In Southeast Asia: Market Sources

India’s newly launched biodiesel mandate would have limited impact on the region’s balances but could potentially help ease Malaysia’s crude palm oil surplus, market participants said Tuesday.

India began sales of B5 biodiesel blends this week at four retail outlets in New Delhi, Vishakhapatnam, Haldia and Vijayawada marketed by state-owned petroleum companies like Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum, according to local media reports.

Sales of the biofuel at the Haldia outlet started as early as June 24, serving mostly cranes and trucks operating within the port, the Times of India reported last week.

The move was largely based on a government initiative to reduce the country’s reliance on oil and gas imports and for environmental reasons.
Reactions in the region were mixed, with some market participants expressing surprise as India has limited production of palm oil and would need to import the raw material for producing biodiesel, defeating the original purpose of non-reliance on imports.

“India doesn’t have anything — they are a net importer of oils and have a food deficit so they will have to import the raw material when its economical versus the domestic feedstock,” said a trader.

In addition, palm oil is currently more attractive into the edible oils sector as opposed to biofuels prompting biodiesel manufacturers in India to look mainly at used cooking oil as a feedstock.

Other industry sources in the region felt the initial impact of the move would be muted as it remains unclear if the program would be nationwide, and as there are a fair bit of crude palm oil stocks in Southeast Asia.

“India can mop up the surplus in the region, but we don’t know the actual consumption figures from there too, and there have been no enquiries for imports as yet,” said a Malaysian producer.

As of July, Malaysia’s CPO stocks totaled 1,255,272 mt, an increase of 14% from June, while production volumes rose 2.9% to 1,815,631 mt, according to statistics from the Malaysian Palm Oil Board.

Source:hellenicshippingnews.com

Steel Shares Jump As Govt Raises Import Duty

Shares of steel companies gained with the government on Wednesday raising import duty on a range of steel products.

Tata Steel rose 3.16% to Rs.254.70, Steel Authority of India Ltd (SAIL) 2.5% to Rs.59.50 and JSW Steel Ltd 0.8% to Rs.900.30. The BSE Metal index fell 1.89% to 8,123.91 points, while India’s benchmark Sensex fell 0.36% to 27767.05 points.

Basic customs duty on flat-rolled steel products has been raised to 12.5% from 10%, Bloomberg reported, quoting a finance ministry statement.

Import duties on iron and non-alloy steel ingots, bars, rods, wires of stainless steel, semi-finished products of iron have also been increased to 10%, the report added. During 2014-15, India imported 9.3 million tonnes of finished steel, up 71.1% from a year ago.

Source:livemint.com

Risk adjustment can't be claimed without quantifying risk and its effect on adjustment of ALP

IT/ILT : TPO erred in modifying selection criteria used by assessee, i.e., salary and wages cost ratio of 50 per cent, and applying 25 per cent criteria for same, when in preceding assessment year assessee had applied similar filter and applying +/- 15 per cent range as applied by TPO in preceding year, such range came to 48.91 per cent to 78.91 per cent which was close to salary and wages cost ratio of 50 per cent applied by assessee

Ministry Of Finance Of Republic Of India : Tax Refund To Export Import Traders

The Government is initiating all steps that the exporters get their tax refunds in time manner and the timely issue of refunds has always been a matter of priority and concern for the Government. Field formations have been directed to ensure prompt and timely disbursal of drawback, rebate claims on exports and other incentives on exports, as may be available under the relevant scheme.

Details of incentives and other relief, inter-alia, being offered to exporters and importers are as under:

Duty Drawback to exporters to neutralize Customs, Central Excise Duty and Service Tax suffered on inputs/inputs services used in manufacture of export goods.

Benefit of rebate of Central Excise duty paid on exported goods is allowed under Rule 18 of the Central Excise Rules, 2002. Goods are also allowed clearance for export under bond for the same purpose under Rule 19 of the Central Excise Rules, 2002.

Refund of CENVAT credit of inputs or input services to a manufacturer who clears a final product or an intermediate product for export without payment of duty under bond or letter of undertaking or a service provider who provides an output service which is exported without payment of Service Tax, under Rule 5 of Cenvat Credit Rules, 2004.

In order to boost exports in garment sector, Government has provided various support measures. One such measure is duty free entitlement for import based on export performance, wherein manufacturers of textile and leather garments registered with their respective Export Promotion Council are allowed to import certain specified items duty free of value upto 5 per cent of the FOB value of the textile garments or 3 per cent of the FOB value of the leather garments, exported during the preceding Financial year for use in the manufacture of garments for export by such manufacturer. Similarly, the incentives are also provided to the exporters of handicrafts, leather products including footwear, handlooms, cotton and man-made textile made-ups etc.

Duty exemption schemes (Advance Authorization/Duty Free Import Authorizations and Export Promotion Capital Goods (EPCG) as well as the incentive schemes (Merchandise Export from India Scheme and Service/Export from India Schemes) extended to exporters administered by Director General of Foreign Trade (DGFT), Department of Commerce.

Rebate of whole of the duty paid on excisable inputs or whole of the Service Tax and cess paid on all input services used in providing service exported in terms of Rule 6A of Service Tax Rules, 1994.

Granting rebate of service tax paid on taxable services which are received by an exporter of goods and used for export of goods.

Allowing the holder of Vishesh Krishi and Gram Udyog Yojana (VKGUY), Focus Product Scheme (FPS) and Focus Market Scheme (FMS) scrip to pay service tax leviable on taxable services received by them by debiting in scrip.

Section 10AA of Chapter VI-A of the Income-tax Act, 1961 allows 100% deduction on profits and gains derived from export of certain articles or things subject of fulfillment of conditions prescribed therein. Further, exporters and importers are also eligible for claiming deductions in respect of profits and gains derived from such business as per provisions contained in Part D of Chapter IV (Profits and gains of business or profession) and Chapter VIA (Deductions to be made in computing total income).

This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Rajya Sabha today.

Source:hellenicshippingnews.com

U.S. Gold Jewellery Imports Post Slowest Second-Quarter Growth Since 2012

U.S. gold jewellery imports rose in the second quarter at the slowest rate in nearly three years, Thomson Reuters GFMS calculations showed on Tuesday, while imports of silver jewellery notched their biggest jump in more than a year.

The jump in silver came on low prices and a strong dollar, said Erica Rannestad, senior analyst of precious metals demand at the GFMS metals analysts team in Thomson Reuters, in Chicago.

U.S. imports of gold jewellery rose 9 percent to 14,792 kilograms (475,573 troy ounces) in the second quarter and in June were up 3 percent from a year ago, rising to 4,205 kg.

"Indian gold jewellery imports rose a healthy 9.5 percent, bucking the trend among the top three import partners," Rannestad said in an email, noting that imports from China and Italy fell. India is the biggest source of U.S. gold jewellery imports.

Gold prices fell 12 percent in the second quarter from the same period a year ago, largely accounting for the drop in jewellery store sales in terms of value, Rannestad said. Bullion prices XAU= tumbled 6.6 percent in July, the weakest monthly performance in more than two years.

Second-quarter silver jewellery imports rose by 11 percent to 393,073 kg but they fell 3 percent in June from a year ago. "The decline in silver prices is making for an increasingly price-competitive global market, and it is becoming more difficult for higher-cost players to maintain market share," she said.

Imports from Thailand, the biggest supplier of silver jewellery to the United States and one of the lowest cost jewellery manufacturers, made up 46.3 percent of silver jewellery imports in the second quarter. This is the highest share on record, Rannestad said.

U.S. platinum jewellery imports surged by 39 percent in the second quarter as prices fell to six-year lows.

Source:reuters.com

Good If Rupee Weakens To 65-65.5/Usd On Yuan Dip: Stanchart

It is a good thing if the rupee depreciates to 65.0-65.50 to the US dollar, as our currency is still over valued in REER (real effective exchange rate) terms, says Ananth Narayan, Head, Financial Markets, Standard Chartered Bank.

"The reality is India is the most over valued currency over the last two years," he tells CNBC-TV18.

"Earlier, China was leading the pack. Now that China has moved, India stands out as a sore thumb as the most over valued currency among all major currencies," he says. The weakening of the yuan has both positive and negative implications for India, he says.

"Clearly, commodity prices being low is great news for us at the macro level; at the same time, while exports won't be impacted directly, domestic industry is going to be hit," he says, highlighting tyre and steel as the sectors which could be hit the most.

On China's decision to depreciate its currency, Narayan says it is both an attempt to revive the economy as well as correct the discrepancy in the yuan value.

"With the IMF SDR (special drawing rights) report , there was a requirement for China to move to a more market determined rate.

In the past, they have been accused of a fairly blackbox approach to fixing the FX rate, and what they have done is to alleviate some of those concerns.

Through this, they have achieved a few other positive benefits. Their REER was over valued over the last couple of years, their exports are down sharply, and they have lost around USD 350 billion of reserves over the last one year because of capital outflows," he says.

"They still have USD 3.65 trillion worth of dollar reserves, and they can come into the spot market at any point of time to control the volatility there. I think around 6.5 on the yuan, you will see Chinese authorities stepping in and arresting any sharp fall," he says.

For teh rupee as well, Narayan says a steep fall is unlikely because capital flows are fairly robust. "We are seeing knee jerk reactions. It would be great to see some depreciation in the rupee," he says.

"Reality is we are overvalued in REER terms, and also there is an overhang of unhedged foreign currency exposure. I think it is a great time for importers an dpeople with unhedged exposures to buy some insurance given that the paradigm is changing," adding that it is "great news" if these factors pull the rupee down to 65-65.5 to the dollar.

Source:moneycontrol.com

Delay in passing review order may be condoned by Tribunal

Excise & Customs : Power of Tribunal to condone delay in filing appeals preferred by revenue on review extends to delay caused in passing review order; hence, delay in passing review order may be condoned by Tribunal

Signature of person on docs pertaining to liquor vends allotted by Excise department proved that he

IT: Where finding of fact that 'B' was a partner of assessee-firm doing liquor business was based on relevant documents pertaining to auction and allotment of liquor vends which all were signed by 'B', such finding could not be held to be perverse or arbitrary and assessments were to be made accordingly

No penalty on basis of survey carried out at premises of assessee without independent witnesses

CST & VAT : Rajasthan VAT - Where Competent Authority on survey checked stock register of assessee and found stock in excess and thereafter Assessing Authority on basis of survey report passed assessment order on assessee and also imposed penalty, since at time of survey there were no independent witnesses, no credence could be placed on survey report

No rejection of books just because bills of sub-contractor didn't contain address if TDS was deducte

IT : Where assessee, a civil contractor, made payments to transporters and sub-contractors in course of its business, in view of fact that assessee gave complete addresses and PANs of payees and, moreover, said payments had been made after deducting tax at source, impugned order rejecting assessee's books of account was to be set aside

Govt. reveals third list of major initiatives taken on improving ease of doing business in India

CORPORATE LAWS : Major Initiative on Improving 'ease of Doing Business' in India