Charges paid for installation and commissioning of machine at buyer's site isn't includible in excis

Excise & Customs : Transaction value is determined at time of clearance of goods at factory; hence, installation and commissioning charges for Erection, Commissioning, Installation, etc. of machines at buyer's site cannot be included in value

Assessee can't escape concealment penalty just because wrong claim is based on auditor's report

IT: Auditor's report cannot override provisions of Act and, thus, merely because assessee's false claim for deduction is supported by a Chartered Accountant's opinion, this fact per se cannot absolve assessee from penalty under section 271(1)(c)

Delhi Govt. devised mechanism to prohibit misuse of auto downloading facility for DVAT forms

VAT : Status Of Statutory Forms Downloaded By Dealers

Now Delhi dealers required to submit details of goods sold via each e-commerce website

VAT/INDIAN ACTS & RULES : Delhi Value Added Tax (Amendment) Rules, 2015 – Amendment In Forms Dvat-16, Dvat-30, Dvat-31 And Insertion Of Annexure IE

Cabinet approves protocol amending India-Kuwait DTAA; includes internationally accepted standard for

IT/ILT : Section 90 Of The Income-Tax Act, 1961 – Double Taxation Agreement – Agreement For Avoidance Of Double Taxation And Prevention Of Fiscal Evasion With Foreign Countries – Kuwait – Protocol Amending Said Agreement

Criminal proceedings rightly initiated against assessee as he wilfully evaded payment of tax: HC

IT: High Court upheld criminal proceedings initiated against an assessee under Section 276(c) for non-payment of tax. The Court sets aside the contention of assessee that prosecution proceedings could not be initiated when no notice of demand under section 156 was furnished. The High Court held that separate notice of demand was not required if intimation under section 143(1) regarding tax payable by assessee was furnished.

Rupee Trims Initial Losses, Down 9 Paise Against Dollar

:The rupee opened at 66.12 a dollar and touched a high and a low of 66.09 and 66.20, respectively

The Indian rupee on Wednesday weakened against the US dollar after local equity markets fell over 300 points.

At 2.12pm, the home currency was trading at 66.19, down 0.24% from its previous close of 66.03. The local unit opened at 66.12 a dollar and touched a high and a low of 66.09 and 66.20, respectively.

At 2.20pm, the benchmark Sensex index fell 1.37%, or 355.05 points, to 25,509.42. The Sensex fell in 15 out of 20 sessions. Since 19 October till date, Sensex has fallen 6.4% or 1,750 points.

Investors are awaiting information from global policy makers. The US Federal Reserve releases minutes from its last meeting Wednesday, while the Bank of Japan began a two-day meeting, Bloomberg reported.

The yield on India’s 10-year benchmark bond was trading at 7.687% compared with its Tuesday’s close of 7.67%. Bond yields and prices move in opposite directions.

The employees of the Reserve Bank of India are set to go on a strike on Thursday for the first time in more than six years to protest against the government taking powers from the central bank, threatening to disrupt bond and foreign currency markets, which could affect settlements under the payment platform operated by the central bank, Bloomberg reported, quoting Rajeev Radhakrishnan, Mumbai-based head of fixed income at SBI Funds Management.

Foreign institutional investors (FIIs) sold equities in eight out of 10 sessions. Since 30 October to 16 November, FIIs sold $651.22 million in equities. Since 27 October to 16 November, FIIs sold $494.09 million in debt.

In fiscal year 2016 so far, FIIs have sold $2.05 billion in equity, the steepest selling since fiscal year 2009. In FY16, FIIs were the net sellers in equity in five out of eight months.

Data on Tuesday offered a mixed view of the health of the US economy—consumer prices increased 0.2% in October after two straight months of declines, while industrial production fell. The modest rise in inflation could bolster chances of the US central bank, the Federal Reserve, raising interest rates next month, but weak industrial output raised concerns about the robustness of fourth-quarter economic growth, Reuters reported.

Since the beginning of this year, the rupee has lost 4.8%, while FIIs have bought $3.95 billion from local equity and $8.51 billion from bond markets.

Most Asian currencies were trading lower. Indonesian rupiah was down 0.53%, South Korean won 0.16%, Taiwan dollar 0.1%, China renminbi, while China offshore and Thai baht were down 0.1% each. However, Japanese yen was up 0.11%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 99.498, down 0.13% from its previous close of 99.631.

Source : livemint.com

Split sales couldn’t be treated as slump sales just because unit was transferred as going concern

IT : Where assessee had sold tea estate and assigned values to every movable property transferred to buyer, it could not be said that transfer was slump sales only for the reason that the tea estate was transferred to buyer as a going concern.

Steel Prices To Fall By In Rs 1-1.5K/Tn

Steel pricing will depend upon exchange rate and international demand, says TV Narendran, MD & CEO of Tata Steel. Safeguard duty by the government has helped stabilising demand. He expects steel prices fall by Rs 1,000-1,500 per tonne this quarter. Talking to CNBC-TV18’s Archana Shukla, Narendran says that he is positive on steel demand, but not on prices. He is positive that steel industry will pick-up once India clocks in 7-8 percent gross domestic product (GDP) and government starts investment in infrastructure. Tata Steel has managed to record 20 percent earnings before interest, tax, depreciation and amortization (EBITDA) margin in last two quarters despite imported iron ores. The company is prepared to ride the cycle down by managing cost, Narendran says adding that the company is better places than its competitors. The company has received approvals for iron ore mines in Orissa till 2030 and is currently ironing issues in Jharkhand. The company’s demand is being taken care of currently, he says. On the company’s Kalinagar plant, he says that strong marketing franchise will help production. The plan is to start exports soon after domestic demand becomes visible, he says. Positive Europe EBITDA margins were driven by Netherlands business, he says adding that the Europe market is important for structural growth. The company does not have any plans to sell stake for debt reduction, he says. “We have headroom in debt as we largely used internal accruals for Kalinagar plant,” he adds. The company has managed nearly Rs 6000 crore this year. Tata Steel is looking to sell its long production business as the main focus in UK is on strips, he says. After a failed due diligence with a buyer, the company is looking at options. The company is also focusing on ramping up its B2C business 0- services & solutions segment - in value-added steel portfolio to 30 percent from the current 1-2 percent in five years.

 

 

 

 

 

 

Source : metaljunction.com

Sez Proposals Strike Fear In Villagers

Despite the positive spin by officials, locals facing economic zones in Mae Sot believe their lives will change for the worse
NO HEAVY industry will be promoted in the proposed special economic zones (SEZs) in the border provinces, government officials have emphasised.

However, locals near the proposed economic zone in Tak's Mae Sot district said they feared their livelihoods would soon be changed forever as people in two villages would have to move away from their land.

They were also worried about the future environmental impact of the industrial estates.

Representatives of the Office of the National Economics and Social Development Board (NESDB) and the Industrial Estate Authority of Thailand (IEAT), who are responsible for the creation of 10 border SEZs, addressed villagers' concerns about the possible environmental impact and the problem of land reclamation to the Thai Journalist Association yesterday.

Pojanee Artarotpinyo, NESDB's deputy secretary-general, said 13 industry types were promoted by the government to invest in the new SEZs. All are light industry, and only one of them needs to be processed under the Environmental Impact Assessment (EIA) consideration.

The 13 industries are agricultural product processing, ceramics, textile, furniture, jewellery, medical equipment, automobile parts, electronics, plastics, medicine, logistics, other industrial zones and assistance to the tourism industry.

Together with these industries, it was reported recently that the Board of Investment of Thailand had added another 10 to the list of promoted industries that would receive tax benefits if they invested in the new SEZs.

"I was assured that these 13 promoted industries were light industry, mostly based on labour and environmentally friendly," Pojanee said.

Attapon Jirawatjanya, IEAT specialist, clarified that due to the location of all SEZs in the rural area, close to the border, only specific types of industry were suitable to invest there, such as logistics and commodities industries. The area was not appropriate for heavy and polluted industry such as petrochemicals.

"We have come up with guidelines for the appropriate types of industry in specific SEZs and they will fit with the local environment and resources," Attapon said.

He also revealed that the industries in the area were planned to help local people benefit first from the SEZs. The zone would generate a suitable atmosphere for economic growth and create jobs and opportunities for locals.

However, Chomphunuth Kreau-kamwang, a resident of Mae Sot district, claimed she was among those affected by the SEZs project and was concerned that life would change forever.

"My family and several neighbours will have to move out from our lands as they are to be reclaimed by the state to set up the SEZs. We are farmers who make a living from this land and we have no place to go," Chomphunuth said.

She revealed that people who lived in two villages near the proposed SEZs' area were very ill-informed on the project.

"The prime minister said locals would be the ones to benefit from the project - but I cannot see how industry in the area could be good for the community. Furthermore, I am worried the industries will pollute our environment," she said.

 

Source : nationmultimedia.com

 

Deputation of employees of foreign AE in India isn't manpower supply if their salary is reimbursed b

Service Tax : Where Tribunal had found that employees deputed by foreign group company were actually appointed by assessee in India and only a portion of their salary was paid to employees by foreign group company and reimbursed on actual basis, same would not, prima facie, amount to manpower supply services

Textile Sector Welcomes Revision

The textile sector has welcomed the increase in drawback rates and value caps for several textile products, which will come into effect from November 23. Cotton Textiles and Export Promotion Council Chairman, R. K. Dalmia, has said in a press release that increase in the drawback rates for cotton made ups and garments would encourage export of value added products. However, some high value items such as ‘boiler suits’ and ‘protective wear’ made of cotton and manmade fibre blends have not been covered. According to the Southern India Mills’ Association (SIMA) Deputy Chairman P. Nataraj, increase in the rates for value added products will encourage the sector to focus on value addition. Indian Texpreneurs Federation has said that the importance given to manmade fibre based yarn and fabrics in the drawback revision will give a boost to value addition in man-mande fibre segment.

 

 

 

 

 

 

 

 

 

 

Source :thehindu.com

 

 

 

 

 

Sale of goods from Kerala to SEZ unit isn't deemed as export; liable to sales tax

CST & VAT : Kerala VAT - As per SEZ Act, Sales to SEZ unit is regarded as taxable sales unless any specific exemption in respect thereof is provided under CST Act or under the respective state legislation. In the instant case, it was held by the High Court that sale of sandalwood from Kerala to SEZ unit in Madras does not qualify to be export sales under Kerala VAT as no specific exemption has been provided either under Kerala VAT Act or under CST Act.

Pest Invasion To Push Cotton Production To Five-Year Low

AJKOT: Cotton production in Gujarat, the largest producer of this staple fiber in India, may drop by 30% due to massive invasion of pink bollworm pest and sukaro (para wilt) disease. Farmers and agriculture experts fear the production may fall to a five year low to less than 90 lakh bales - down from 125 lakh bales in 2014-15. Besides farmers, the lower production threatens to hit the textile trade.

The unprecedented magnitude of the dual menace has forced thousands of cotton growers in Saurashtra and north and central Gujarat to destroy their standing crop, rendered useless due to infec tion. The crisis claimed its first victim, a 30-year-old farmer from Supedi village near Rajkot, who committed suicide after pest attack destroyed cotton grown on 85 bigha land.

"Cotton production will be 30% less this year. The area under sowing in 2015-16 was already down at around 27 lakh hectares as against 30 lakh hectares the previous year as farmers switched to other cash crops like groundnut," said N M Sharma, managing director, Gujarat State Co-operative Cotton Federation Ltd (Gujcot). Sharma said that the production may not cross 90 lakh t bales, the lowest in five years.r Bhikhu Vekariya, a farmer in Devrajiya village of Amreli, said, "Due to pink bollworm, I got just around 200 kg per bigha instead of 600 kg per e bigha earlier. None of the pesti cides are effective."

The market prices of cotton have also declined to Rs 32,100 Rs 32,200 per candy (356 s kg) from Rs. 32,800-Rs 32,900 h per candy a month back on global cues. Farmers want the , minimum support price (MSP) e to be hiked from Rs 810 per 20 kg to over Rs 900 per 20 kg. It's a delicate situation for ginners too who are I wary of government hiking MSP . "We won't be able to afford raw cotton if the MSP is hiked above Rs 900 per 20kg.

The yarn market is reeling under slowdown and mills are already facing problems due to subdued textile market," said Dilip Patel, president, All Gujarat Ginners Association. "This pest can be controlled only if it's detec ted early. Once it enters the cotton balls, pesticides are not effective," Dr. K L Raghvani, head of entomology department at Junagadh Agricultural University , said. Raghubha Vaghela, a farmer from Derala village of Maliya-Miyana said, "I lost around 40% cotton in my 40 bigha land due to sukaro and pink bollworm." "Half of the cotton crop in my 86 bigha land is destroyed. I destroyed the infected crop after first round of plucking and sowed wheat and sesame as I have irrigation facility'' says Natubha Parmar, a farmer from Godavari village in Muli taluka of Surendranagar.

Entomologists say sukaro (para wilt) disease occurs due to many reasons, one of the main being lack of nutrients in the land where cotton is sown.

Source :timesofindia.indiatimes.com

Gold Falls To Near 6-Year Low With Fed Still In Focus

Gold prices fell more than 1 percent to the lowest price in nearly six years on Tuesday, pressured by expectations that the United States will raise interest rates in December, and as the dollar rose and stocks rebounded from losses suffered after Friday's attacks in Paris.

The other precious metals followed gold down, with silver dropping for the fourteenth straight session to a 2-1/2-month low and platinum tapping a seven-year low.

Spot gold was down 1.1 percent at $1,070.18 an ounce, after falling to $1,065.18, the lowest since February 2010.

U.S. gold futures for December delivery settled down 1.4 percent at $1,068.60.

 

 

 

 

 

 

 

Source : cnbc.com
 

CCI slapped penalty on Jet Airways, Indigo and Spice Jet for forming cartel to fix fuel surcharge

Competition Act: Where opposite parties i.e. Jet Airways, Indigo and Spice Jet had acted in a concerted manner in fixing and revising fuel surcharge (FSC) rates for transporting cargo, conduct of OPs was anti - competitive and penalty was to be imposed upon them

Stay to be granted when TPO determined ALP of AMP exp. by following ratio of LG’s case instead of So

IT/ILT : Where assessee challenged demand made on account of T.P. adjustment on basis of Tribunal's decision, but High Court had disallowed said decision, assessee had good prima facie case for stay on said demand

MCA releases new Form MGT 7 with more clarifications

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Management And Administration) Third Amendment Rules, 2015 – Substitution Of Form MGT-7

Sum paid to US based co. to review design of cranes could be 'FTS' if major changes were suggested i

IT/ILT: Where assessee-company engaged a company registered in USA, for review of design of cranes but it could not be discerned from records whether suggestions given by U.S. company would bring brought any major change or improvisation in design of crane, matter should be reconsidered afresh

Penalty on attempt of illegal export can also be levied after illegal export

Excise & Customs : Since 'illegal export' is preceded by an 'attempt towards illegal export', confiscation under section 113 and penalty under section 114 are attracted against 'attempt of illegal export' even after goods have been actually exported

No penalty when additional income was declared in revised return after seized books were returned by

IT: Admission of income by assessee in revised return cannot give jurisdiction to Assessing Officer to levy penalty under section 271(1)(c)

Tax Authorities can’t attach Cash Credit Account of taxpayer to recover tax dues

IT: Where Assessing Officer raised huge tax demand upon assessee and in meantime bank account including cash credit account of assessee had been attached by income tax authorities, in view of decision of Madras High Court in case of K.M. Adam v. ITO [1958] 33 ITR 26, cash credit account of assessee could not be attached and it was entitled to be discharged

No penalty due to non-charging of ST on bank's commission as issue of its taxability was sub-judice

ST : Since taxability of business auxiliary service for which commission was paid to bank and insurance company and business support services for which handling charges was paid for RTO registration of vehicle, were subjudice in various forums, penalty could not be imposed for failure to deposit in government exchequer amount of service tax deducted; however, in respect of services of motor vehicle where assessee failed to deposit service tax, penalty was to be imposed

Foreign tax credit should be given on tax liability computed under MAT provisions

IT/ILT : There is no provision in Income-Tax Act, debarring granting of credit for tax paid abroad in case income is computed under Section 115JB

Co. having unreliable financial data can't be chosen as comparable for TP study

IT/ILT : A software product company could not be compared with assessee-company, which was primarily designing and developing software on contract basis for its AE

SEBI releases guidelines on Annual System Audit, Business Continuity Planning and Disaster Recovery

SEBI : Annual System Audit, Business Continuity Plan (BCP) and Disaster Recovery (DR)

SEBI issues circular to streamline framework of investor redressal and Arbitration Mechanism

SEBI : Investor Grievance Redressal System and Arbitration Mechanism

Oil And Gas Block Auction Policy To Be Ready By Fy16: Dharmendra Pradhan

Government expects to finalise the new policy for auction of oil and gas blocks during the ongoing financial year, Oil Minister Dharmendra Pradhan said.

"We have brought this consultation paper and suggestions will come in by November 30. We will make the policy after considering all the views and take it to the Cabinet. It will be our endeavour to make the policy during this financial year only," Pradhan told reporters on the sidelines of Bio-Energy Summit 2015 organised by CII here.

Yesterday, Oil Ministry had issued a paper on new fiscal and contractual regime for award of hydrocarbon acreages with a view to revive investor interest in oil and gas exploration by simplifying rules.

It proposes to free natural gas pricing as well as replace the controversial Production Sharing Contract (PSC) with simpler revenue-sharing regime for all future field auctions in the backdrop of low gas prices not attracting investors in exploration and production sector.

Global players like BP and domestic companies including RIL as well as state-owned ONGC have been seeking pricing freedom as the current rates make new investments unviable.

"There were suggestion on the issue from institutions like CAG. In order to make new bidding round more progressive, transparent and market friendly, we have brought in this consultation paper," the minister explained.

In September, the government had allowed pricing freedom for the gas produced from 69 small and marginal fields it plans to auction shortly.

On the Indian basket crude oil price cracking below USD 40 barrel mark to touch USD 39.89, the minister said, "We have to accept the changing geopolitical scenario of the world. Let's see how things are coming up. But this kind of price is certainly favourable for the Indian market."

While addressing the conference, he made it clear that lower crude prices will not change India's stance on increasing share of renewables sources in its energy mix.

He also indicated that as much as 20 GW of output from bio-energy will be achieved against the envisaged 10 GW under the total renewable energy target of 175 GW till 2022.

On LPG gas subsidy to households, Pradhan said: "There should be a public discourse on the issue whether LPG subsidy should be given to higher income groups. We will take a decision on this."

The government is planning to stop providing LPG subsidy to the consumers whose income is above Rs 10 lakh.

On the issue allowing premium pricing on gas produced from difficult deep-water and ultra deep-water blocks, he said oil and finance ministries will take a decision on the issue after achieving consensus.

Speaking at the same occasion, Railways Minister Suresh Prabhu said: "We are launching our first wind turbine in Jaisalmer by the end of this week. We need to invest in R&D in green power."

Source : economictimes.indiatimes.com

Insurers no more required to state in ads that "insurance is subject-matter of solicitation" -IRDA

INSURANCE/INDIAN ACTS & RULES : IRDAI (Insurance Advertisements and Disclosure) (Amendment) Regulations, 2015 – Amendment in Regulation 9

CCE(A) has to consider request for extension of pre-deposit which is made before due date of pre-dep

Excise & Customs : Commissioner (Appeals) has power to extend due date for making pre-deposit and he does not become functus officio as regards extension till due date for making pre-deposit

Block assessment couldn't be initiated on basis of survey

IT : There being no search under section 132, block assessment invoking provisions of section 158BC would not arise

CBDT lays Std. Operating Procedure for allocation/transfer of cases and curing of defective appeals

IT/ILT : Section 260A of the Income-Tax Act, 1961 – Appeal to High Court – Procedure for Filing Appeals, Curing Defective Appeals and Effective Representation in Delhi High Court

CBEC issues directions for monitoring and disposal of pending cases

EXCISE : Monitoring and Disposal of Cases Pending for Adjudication

If pledging of shares is valid its subsequent enforcement before winding up can’t be held as fraudul

CL: Once original pledge by company-in-liquidation in favour of applicant was held to be valid, its subsequent enforcement could not be faulted on ground that it amounted to a fraudulent preference or invalid transfer during pendency of winding up

HC considers actual usage of rig instead of it being ready for use to determine PE

IT/ILT : In order to determine question as to whether assessee owing rig had PE in India, Tribunal rightly concluded that unless rig owned by assessee was actually used for a period of 120 days in India, it would not be sufficient to attract article 5(2)(j) of India - USA DTAA

Due date for filing of DVAT return of second quarter further extended to Nov 20, 2015

VAT : Filing of Online Return for Second Quarter of 2015-16 – Extension of Period Thereof

Govt. notifies accounting codes for payment of Swachh Bharat Cess

ST : Accounting Code for Payment of Swachh Bharat Cess

Base frame not classifiable under heading 'Industrial Pumps' as it isn't an essential part of indust

Excise & Customs : 'Base Frame' is not an essential part of 'Industrial Pump', as industrial pump may be sold separately; therefore, base frame was not classifiable under heading 8413 but only under heading 8485

Revenue can't challenge subsequent order of ITAT without any reasons after accepting its earlier ord

IT : Where jurisdictional Tribunal had allowed assessee's claim for exemption under section 10(10C) by following its earlier order which had been accepted by revenue by not preferring an appeal thereagainst, then it was not open to revenue to challenge Tribunal's order without giving reasons for taking a different view

Receipt shown in P&L A/c liable to MAT even if it is shown as capital receipt in notes to accounts

Remission of bank loan shown in P&L A/c shall not be excluded for computing book profits under section 115JB even if same was shown as capital receipt in notes to accounts

President promulgates two ordinances for speedy settlement of disputes

CORPORATE LAWS/INDIAN ACTS & RULES : Arbitration and Conciliation (Amendment) Ordinance, 2015

Niggling Doubts Over The New Gold Schemes

The government has launched, amidst plenty of fanfare, three new schemes to monetise gold in the country — the gold monetisation scheme, the sovereign gold bond and gold coin. The underlying objectives of all three are laudable. Households in India hold a large amount of their savings as physical assets — gold, silver and other precious metals and real estate. Gold especially has for long held a tremendous attraction both as an investment avenue as well as a store of value.

With very little of the precious metal now being mined in the country, the seemingly insatiable domestic demand is being met by gold imports. Hence a two-pronged strategy is needed to provide an instrument that would target would-be gold investors and second, to draw out gold lying idle in private hands.

Get the gold to banks

The idea behind gold monetisation is to lure gold, now held as physical assets in private hands, into productive financial savings. According to government statistics, the amount of gold with households is a mind boggling 20,000 tonnes. Even if 5 per cent can be mopped up through innovative financial instruments based on gold, the domestic demand — estimated at between 850 and 900 tonnes annually — can be met. A significant gain would, therefore, accrue to the macro-economy where gold imports, along with petroleum imports, have for long been a significant factor behind the current account deficit.

It is a different matter that with falling oil prices and consequently the reduced import bill, the current account deficit looks eminently manageable. But long term solutions are needed for gold. Those who cling to gold should be weaned away for which they need to be provided with a decent return and equally importantly a guarantee for the safety of their investment.

The gold monetisation scheme (GMS) appears to be central to the three schemes. It is a vast improvement over existing schemes in its genre and its appeal to medium and long term investors should be stronger. Under the new scheme, as small as 30 gms of gold can be accepted. The tenure can go up to 15 years and the scheme pays higher interest rates to depositors – 2.25 to 2.5 against one per cent before.

A synthetic bond?

The gold bond scheme is for those investors who buy gold as an investment. According to government estimates, a third of the domestic gold demand arises from those who buy gold bars and coins. The gold bond’s unique feature is that it will offer returns linked to market price of gold. This is akin to a synthetic bond mimicking gold prices.

Gold coins to be issued with Ashoka Chakra emblem is bound to be popular. It is hoped that the government would mop up enough gold through its monetisation scheme to meet the demand from jewellers as well as from the issuance of coins.

Compared to the draft guidelines , the new l guidelines for all the three schemes have been spruced up operationally and are friendlier to investors. Yet, niggling questions remain.

The gold monetisation scheme is no doubt an improvement over earlier scheme — it promises higher interest rate and retains the promise of returning the deposit as gold subject to certain conditions.

However, gold held as jewellery will be very difficult to be monetised. The point has been made several times before that there would be a sentimental objection to parting with jewellery, which in many households are passed on from one generation to another. In fact, no gold monetisation scheme can overcome the inhibitions of all would-be investors. People buy gold with different motivations. Pledging gold to meet seasonal requirements is very common. Many gold loan companies have grown exponentially recently, especially in Kerala. Whether the loan is taken from an NBFC or a money lender, the gold pledged can be redeemed in its original form and not melted away at the instance of a bank.

Despite much greater clarity in the operational aspects, it is obvious that the infrastructure for operationising a monetising scheme should be built up in a way that promotes efficiency as well as transparency.

There is high hopes that temples and other religious institutions who are large repositories of gold will invest in the monetisation scheme. The move will be controversial. There will always be a suspicion that politicians will get into the act. Moreover, religious traditions built up over centuries might have to reinterpreted in some cases. A better alternative to persuade the temples to convert a portion of their gold stock into coins, pendants and so on bearing the stamp of the presiding deity. This has already been tried out but from the point of bringing gold into mainstream financial sector has little relevance. One hopes that these schemes should succeed for the sake of the macro-economy. With the Prime Minister himself taking the initiative to popularise the schemes, they should make some headway. Fresh ideas are always welcome to remove possible glitches and make the schemes even more appealing.

Source : .thehindu.com

Inflation At -3.81% In October; Pulses, Onion Expensive

Deflationary pressure eased a bit with inflation rate moving up slightly to -3.81 per cent in October as pulses, vegetables and onion turning costlier.

This is 12 month in a row when the inflation at wholesale level remained in the negative territory. It has been in the negative zone since November last year.

The Wholesale Price Index-based inflation was -4.54 per cent in September. In October last year, it was 1.66 per cent.

Pulses and onion among the food items category turned costlier with inflation at 52.98 per cent and 85.66 per cent respectively during October.

The rate of price rise in case of vegetables was at 2.56 per cent as against -19.37 per cent in the same month last year, as per official data released on Monday.

Besides pulses and onion, the food items which became dearer during the month were milk (1.75 per cent) and wheat (4.68 per cent). However, inflation rate in case of potato was in the negative zone, -58.95 per cent.

Inflation rate in fuel and power segment was -16.32 per cent, while that in manufactured products was -1.67 per cent in September.

Inflation for August has been revised to -5.06 per cent, from the provisional estimate of -4.95 per cent.

The Reserve Bank would take into account WPI number for October while deciding on policy rate in its December 1 monetary policy review. RBI mostly tracks the consumer price index-based retail inflation for its monetary policy decisions.

Rising for the third straight month, retail inflation has climbed to 5 per cent in October, as against 4.62 per cent in the same month a year ago due to costlier pulses and other food items.

RBI governor Raghuram Rajan earlier this month had said that the central bank is comfortable with the current rate of interest till further room is available.

In September, RBI had reduced interest rates by more than expected 0.50 per cent and said it expects CPI inflation to reach 5.8 per cent in January 2016.

Source timesofindia.indiatimes.com
 

Coal India Dips 3% As Production Numbers Dissapoint

 Shares of Coal India slipped over 2 per cent in Monday's trade after the company reported September quarter results largely in line with the expectations of the Street. The world's largest coal miner reported a 16 per cent year-on-year increase in net profit at Rs 2,543.80 crore against Rs 2,192.38 crore reported for the same quarter a year ago.

The scrip fell 3.16 per cent to hit a low of Rs 326.95 during morning trade.

Coal production during the second quarter of the financial year stood at 108.20 million tonne (MT) against 102.42 MT reported for the second quarter previous year, a statement released by the state miner on the BSE website said. "While production was slightly below our estimate at 108.2 million tonne for the quarter (against an estimate of 110.6 MT), offtake volume was marginally ahead of expectations at 121.8 million tonne (estimate 119.1 MT)," Angel Broking said in a note to investors.

Consolidated net sales of the company stood at Rs 16,957.59 crore during the quarter, registering an increase of eight per cent. "The increase in earnings was largely due to the higher production and better offtake during the period compared with the corresponding period of previous year," the miner said.

"E-auction realisations came in much lower than expected at Rs 1,788 crore. This was partially offset by better-than-expected washeries realisations of Rs 2,328 crore," the brokerage firm said. Angel Broking maintains a 'buy' rating on the stock with a target price of Rs 400.

 

 

 

Source :economictimes.indiatimes.com

Nalco To Invest Rs 5600 Crore At Alumina Refinery In Odisha's Damanjodi

KOLKATA: National Aluminium Company (Nalco), the country's leading state run PSU in the aluminium sector, has said it will invest Rs 5600 crore in setting up a 5th stream of one million tonne capacity in the precincts of the existing alumina refinery at Damanjodi, in Odisha's Koraput district.

Nalco latest investment thrust comes on heels of allocation of Utkal D&E coal blocks by the Centre and the state government's recommendation of Pottangi bauxite mines in favour of Nalco.

The plans of the navratna PSU was disclosed by mines secretary, Balvinder Kumar, when he called on Mr. Naveen Patnaik, Chief Minister of Odisha and Gokul Chandra Pati, Chief Secretary, Govt. of Odisha on Monday. T K Chand, CMD, NALCO was also present at the high-level meeting.

Mr Kumar also said Nalco would, at the same time, spend another Rs 2,000 crore to develop the 200-million-tonne coal blocks recently. These blocks, which were recently allotted to the company, are located in Angul district of Odisha. The company's Smelter and Power Complex is also located in the same district. The aluminium major is also closely associated with the state government in setting up an aluminium park in Angul to attract downstream industries.

"This is just a humble beginning in our roadmap for expansion and investment plans. Since our entire value chain is located in Odisha, we are committed to the people of the State. Besides, in the context of recently announced State Industrial Policy, it makes lots of business sense to invest in Odisha", T K Chand said. The state has recently launched a new industrial policy to attract an investment of Rs 1,73,000 crore in the state.

 

 

 

Source :economictimes.indiatimes.com

Msme Entrepreneurs Caught In Aadhaar Web

Efforts of entrepreneurs to start new ventures in the micro, small and medium enterprises (MSME) sector in the State have hit a roadblock. The situation is the result of a reform that envisaged registration of units, incorporating Aadhaar linkage, introduced under a direction from the Union government.

The State Industries Department has stopped issuing Entrepreneurs Memorandum Part-I, a document which facilitates access to official channels for getting the required licences and finance to establish the unit. The issuance of the memorandum has been stopped from October 20.

The action of the State government is the result of introduction of Udyog Aadhaar Memorandum as per instructions from the Ministry of Micro, Small and Medium Enterprises, vide letter dated September 18 this year. The Udyog Aadhar had been launched in Gujarat when Narendra Modi was the Chief Minister there.

According to the new regime, MSMEs are to register under a new format linking Aadhaar number and bank account. The application being filled up online facilitates registration for existing units only, according to industry representatives.

Basic document

The Entrepreneurs Memorandum Part-I is a basic document or a gateway to various facilities offered by government agencies and financial institutions. The document is necessary for the entrepreneur to approach banks, electricity board, pollution control board and other authorities. The Udyog Aadhaar scheme doesn’t provide such a platform. Prior to the implementation of Entrepreneurs’ Memorandum in 2006, the State government had been providing a provisional SSI registration to new enterprises through the District Industries Centres. The SSI provisional registration and permanent certification were transformed into Entrepreneur Memorandum-I and II respectively, in 2006.

All entrepreneurs had to comply with the rule then. Now, the government wants the units to get themselves registered under the new Udyog Aadhaar memorandum, but has failed to provide guidelines for new enterprises.

Industry sources said the State would have to issue a new notification to facilitate registration of new enterprises.

Source : thehindu.com
 

Copper Falls By 0.2% On Weak Global Cues

Copper futures fell 0.16% to Rs 317.20 per kg today after participants trimmed exposure, tracking a weak trend in base metals overseas.

At Multi Commodity Exchange, copper for delivery in November shed 50 paise, or 0.16%, to Rs 317.20 per kg in a turnover of 764 lots.

The metal for delivery in far-month February 2016 was trading down 20 paise, or 0.06%, to Rs 324.05 per kg in a business volume of 38 lots.

Analysts said besides subdued demand at domestic spot markets, weakness in the base metal pack at the London Metal Exchange (LME) as investors rushed to less risky assets after the terror attacks in Paris led to a fall in copper prices at futures trade here.

Globally, copper for delivery in three months dropped 0.9% to trade at $4,783 per tonne at LME, the lowest since July 2009.

 

 

 

 

 

 

 

 

source :.business-standard.com

 

Loss incurred on forex derivative contracts aren't speculative loss

IT : Where assessee, engaged in manufacturing and export of garments entered into forex derivative contracts and incurred loss, such loss was to be regarded as business loss which could be set off against business income of assessee

CBEC releases FAQs on Swachh Bharat Cess

EXCISE : Frequently Asked Questions (FAQs) on Swachh Bharat Cess (SBC)

Insurance services availed from foreign insurer for stock lying in foreign warehouse eligible as inp

Cenvat Credit : Service tax paid on insurance services received for insurance of (a) existing as well as retired employees, and (b) stock stored in foreign warehouses, is eligible for input service credit

Penalty levied on assessee for accepting cash loan as it failed to prove that such receipt was from

IT : Where assessee failed to prove that he had received Rs. 15 lakhs in cash towards advance for sale of property, AO was justified in holding that it was infact a loan received in violation of provisions of section 269SS and, thus, penalty order passed under section 271D was to be confirmed

Mere reading of docs for Octroi clearances doesn't amount to handling of docs of title; not liable t

Service Tax : Mere filling up of form and obtaining Octroi clearance at check post, does not amount to dealing with or handling documents of title; hence, such Octroi agent cannot be made liable to service tax under Business Auxiliary Services

Excise duty on LPG to be computed on transaction value even in case of Administered Price Mechanism

Central Excise : After introduction of transaction value based duty from 1-7-2000, a manufacturer of LPG selling the product in bulk to an Oil Marketing Company (OMC) for further sale in packed form to dealers/domestic consumers and recovering ex-refinery price from the OMC as sale consideration is —

TPO should give reasoning for rejecting TP method continuously followed by assessee

IT/ILT : Where in earlier year RPM applied by assessee to determine ALP of its transaction of purchase from its AE and sale to Indian parties was accepted and during relevent year TPO had not given detailed reasoning as to why RPM was not applicable to assessee, matter should be considered afresh

No extended period when assessee has challenged levy of service-tax on commission paid to foreign br

Service Tax : Where assessee had challenged constitutionality of levy of service tax and department was aware of all facts since that time, then, later, department cannot allege suppression of facts to invoke extended period

High Court unhappy with AO for adjusting refund which wasn't processed by dept.

IT: Where refunds accrued to assessee for earlier assessment years were not processed, action of Assessing Officer by resorting to section 245 and adjusting same for any new subsisting due could not be valid

LIBOR is best benchmark under transfer pricing for interest-free loan granted to AE

IT/ILT : Where assessee advanced interest-free loan to its AE, LIBOR is best basis for benchmarking interest rate and since there was no independent CUP rate available to benchmark said international transaction, as per RBI guidelines, Assessing Officer should adopt 6 months LIBOR + 150 basis points for three years and LIBOR + 250 basis points for five years

Goods bearing brand name of other are ineligible for SSI exemption even if they are captively consum

Excise & Customs : Goods bearing brand name of buyer are ineligible for SSI-exemption even if they are used captively by buyer for further manufacture; hence, they are not includible in aggregate value/eligibility turnover under SSI-exemption

CIT(A) rightly directed AO to allow sec. 10B relief after considering additional ground raised by as

IT : Where Assessing Officer disallowed claim of assessee for deduction under section 10B and on appeal assessee filed additional ground raising an alternative claim that it was entitled for deduction under section 10A, Commissioner (Appeals) was right in directing Assessing Officer to consider alternative claim of assessee

Proceedings concluded by High Court couldn't be reopened due to retro-amendment to sec. 201

IT: Proceedings concluded by High Court couldn't be reopened due to retro-amendment to sec. 201

Due date for e-filing of returns further extended to Nov 30, 2015 for e-commerce dealers of Delhi

VAT/DELHI : Extension Of Last Date For Filing of Online Returns for First and Second Quarters of 2015-16, in Forms EC-II and EC-III

Tenure of High Level Committee extended by one year for identifying area where clarity on tax laws i

IT/ILT : Terms of High Level Committee (HLC) to Interact with Trade & Industry on Tax Laws Extended by One Year Beyond 25-11-2015

Inbound roaming services to foreign telecos deemed as exports for purposes of service-tax rebate

Service Tax : Inbound-roaming services provided to Foreign Telecom Operators (FTOs) in case of foreigners visiting India amounts to 'export of services' and is eligible for rebate within time-limit specified in section 11B of Excise Act

DIPP issues a draft list containing various activities with relevant para of FDI Policy

FDI/FEMA/ILT : Discussion Paper on Mapping of FDI Policy with NIC Code 2008

Govt. amends FDI Policy for various sectors including construction and defence sectors

FDI/FEMA/ILT : Review of Foreign Direct Investment (FDI) Policy on Various Sectors

SEBI reduces time gap between closure of public issue and listing of equity shares/convertibles

SEBI : Streamlining Process of Public Issue of Equity Shares and Convertibles

AO gets flak from ITAT for allowing sec. 54B relief without inquiring into usage of land for agricul

IT : Where while allowing deduction under section 54B, there was no enquiry whether land sold was used for agricultural purposes in last two years or not, assessment order passed by Assessing Officer was erroneous and prejudicial to interests of revenue inviting action under section 263

CBEC introduces new scheme for speedy disbursal of pending refund claims of service exporters

ST : Rule 5 Of The Cenvat Credit Rules, 2004 - Refund Of Cenvat Credit – Speedy Disbursal Of Pending Refund Claims Of Exporters Of Services Under Rule 5 Of Said Rules

No Swachh Bharat Cess if payment for services is received prior to Nov 15, 2015; Govt. clarifies

EXCISE : Clarifications on Swachh Bharat Cess

Protest letter can be filed even before superintendent of proper officer

Excise & Customs : Where duty has been paid under protest and protest was filed before Superintendent, same is substantial compliance for purposes of extension of time-limit to seek refund; non-filing of protest before Assistant Commissioner would not be fatal

Option of alternative service-tax rate is also available in case of Swachh Bharat Cess

ST/INDIAN ACTS & RULES : Service Tax (Second Amendment) Rules, 2015 – Amendment in Rule 6

Even an oral contract is enough for invoking provisions of sec. 194C

IT : Provisions of section 194C can be invoked where aggregate of payment to a particular contractor in an assessment year exceeds Rs. 50,000 and, it is not necessary that any single payment has to be in excess of Rs. 50,000

Reverse Charge mechanism shall be applicable for purposes of Swachh Bharat Cess

ST : Section 68 of the Finance Act, 1994 - Payment of Service Tax - Notified Taxable Services under Section 68(2) – Applicability of Notification No. 30/2012-St, Dated 20-6-2012 for Purposes of Swachh Bharat Cess Mutatis Mutandis

Swachh Bharat Cess is leviable only on abated value of taxable services

ST : Section 119 of the Finance Act, 2015 - Swachh Bharat Cess - Exemption to All Taxable Services From Payment Of Such Amount Of Swachh Bharat Cess Leviable Under Section 119(2) Of Said Act, Which Is In Excess Of Swachh Bharat Cess Calculated At Rate Of 0.5 Per Cent Of Value Of Taxable Services – Amendment In Notification No.22/2015-St, Dated 6-11-2015

CBDT to set-up a 'Taxpayers' Lounge' at Pragati Maidan Trade Fair, Delhi

IT/ILT : CBDT to Set up A Taxpayers' Lounge at India International Trade Fair, 2015 to Highlight Various Taxpayer-Friendly Initiatives taken by Income-Tax Department

Exp. Incurred by hotel to renovate rooms and conference hall held as revenue exp.

IT: Expenditure incured by a hotel on renovation is revenue expenditure

Co. having huge variation in profit margin from that of assessee-co. is excludible from comparables

IT/ILT: Where there is huge variation in profit margin of comparable company from that of assessee-company, said company should be excluded from comparable list

Transfer of chemicals from tankers into drums doesn't amount to manufacturing

Excise & Customs : 'Tankers' cannot be regarded as 'bulk packs'; therefore, receiving chemicals in tankers and transferring same to drums cannot be regarded as 'repacking from bulk pack to retail packs' and hence, said activity cannot amount to manufacture

Interest income of finance co. not taxable as other sources of income if it was held as business inc

IT : Interest income of finance co. not taxable as other sources of income if it was held as business income in earlier yrs

Retro amendment in sec. 115JA can't be deemed as reasons to believe that income has escaped assessme

IT: Retro amendment in section 115JA can't be deemed as reasons to believe that income has escaped assessment

Courses in Mass Communication, Management & IT are vocational courses; exempt from service tax

Service Tax : Courses in : (i) Mass Communication, (ii) International Business Management, (iii) Telecom Management, (iv) Information Technology, (v) Management Studies, (vi) Geo-informatics and (vii) Operational Management are 'vocational courses' and exempt from service tax

No TDS on interest paid to NR on FCCBs when borrowed sum was utilized by payer for its overseas busi

IT/ILT: Where assessee issued FCCB to foreign investors and remitted interest to them, since said money was utilized for overseas business of assessee, no income could be said to have accrued or arisen in India in hands of non-resident investors and, therefore, no TDS was deductible

Transfer of stock from warehouse of SEZ unit to branch in DTA is liable to Tamil Nadu VAT

CST & VAT: Tamil Nadu VAT - Where assessee set up a unit in SEZ area in Tamil Nadu for trading and wherehousing services for mobile phones, etc. and during year it purchased goods from another company located in same SEZ area and supplied them to its branches in other States by way of stock transfer, levy of purchase tax on inter-State stock transfer effected by assessee was justified

High Court can't dismiss appeal by considering monetary limit if matter had cascading effect: SC

IT: Instruction No. 3 of 2011, dated 9-2-2011 providing monetary limit should not be applied by High Court ipso facto, particularly when matter had a cascading effect

No denial of credit on capital goods which was used by job-worker to manufacture semi-finished goods

Cenvat Credit : Semi-finished goods removed under job-work without payment of duty do not amount to "exempted final product" under Rule 6 of Cenvat Rules; hence, credit of capital goods exclusively used in such job-work cannot be denied

No penalty on basis of ad-hoc additions without producing any clinching material indicating concealm

IT: Imposition of penalty upon assessee under section 271(1)(c) on basis of ad hoc and estimated disallowance/addition, without bringing any clinching material suggesting concealment of income or furnishing of inaccurate particulars of income, was not justified

Issue of time barred demand can't be raised for the first time before Tribunal

Service Tax : Where issue of demand being time-barred was not raised before adjudicating authority and Commissioner (Appeals), same cannot be raised for first time before Tribunal

No VAT on free supply of medicines; HC declares sec. 15(5) of Bihar VAT Act as unconstitutional.

CST & VAT: Bihar VAT - Patna High Court declares section 15(5) of Bihar Vat Act (which provides for levy of tax on basis of MRP) as unconstitutional

Buy-back consideration paid above face value, as per CLB's direction, held as revenue exp.

IT : Where in terms of directions issued by CLB, assessee-company paid certain amount over and above face value of shares to departing group of shareholders, amount so paid was to be allowed as revenue expenditure

CBDT constitutes Committee to deal with taxpayers' grievance from high pitched assessments

IT/ILT : Section 143 of the Income-Tax Act, 1961 – Assessment – General – Constitution of Local Committees to Deal With Taxpayers Grievances from High-Pitched Scrutiny Assessment

Contractor wasn't liable to pay service-tax when sub-contractor fulfilled all compliances

ST: Where assessee-real estate company appointed sub-contractors for construction of residential complex for principal company which intended same for personal use of staff, and sub-contractors fulfilled all service tax compliances, assessee-contractor could not be liable to services tax

Sum received by Irish Co. for providing online access to its e-learning products in India is taxable

IT/ILT : Consideration paid by an Indian distributor to foreign company for use or right to use confidential programme software (especially designed software) itself constitutes royalty in terms of DTAA between India and Ireland

Exp. on development of machines is revenue exp. if such machines becomes obsolete

IT : Where assessee incurred certain expenditure on development of machines and same were not put to use and they were also not sold and it was decided to use parts of machines so developed by way of spare parts in future, aforesaid expenditure was allowable as revenue expenditure

No denial of sec. 10(21) relief to research association due to non-furnishing of form for accumulati

IT: Where Assessing Officer denied exemption under section 10(21) to assessee on ground that during previous year it had accumulated part of its income and had failed to furnish Form 10 as provided under section 11(2) within time, denial of exemption merely on ground that assessee had not filed Form 10 within time was not justified

No service tax on maintenance charges collected from prospective buyers in compliance with state law

Service Tax : Maintenance charges collected by builders from prospective buyers of flats for payment of local taxes and other charges in compliance with their obligation under State laws, are not liable to service tax under 'Management, Maintenance or Repair Services'

No sec. 153C notice on basis of seized papers indicating collection of capital fee without its year-

IT : Where loose papers found and seized from residence of President of assessee, an educational institution, indicating some 'on money' receipt during admission process did not establish co-relation document-wise with assessment years in question, notice issued under section 153C to assessee was invalid

Tribunal gets flak from HC for not levying interest on delayed payment of differential duty

Excise & Customs : Where there was price variation clause in contract and assessee had paid differential duty on price-variation without any interest, Tribunal had to consider validity of demand of interest in light of provisions of rule 8(3) of Central Excise Rules, read with section 11AA of Central Excise Act

IRDAI notifies new norms on Insurance surveyors and Assessors

INSURANCE/INDIAN ACTS & RULES : IRDAI (Insurance Surveyors and Loss Assessors) Regulations, 2015

Failure to issue notice in time can't be cured by resorting to deeming fiction of sec. 292BB; reasse

IT: Where no notice under section 143(2) was issued within period of limitation, revenue could not take advantage of provisions of section 292BB; order of assessment under section 147 was annulled

Free warranty services provided by vehicle dealers out of their margin isn't liable to service-tax

Service Tax : Free warranty services provided by vehicle-dealers to vehicle-buyers from out of their dealer's margin/handling charges, cannot be regarded as Authorised Service Station Services to vehicle-manufacturer and not liable to service tax