No denial of Sec. 80-IA relief just because power is captively consumed by assessee in its business

IT : Benefit under section 80-IA cannot be denied to assessee, merely because power generated by its power undertaking was consumed at home or by other business of assessee and was not sold to outsiders

No CVD on DTA clearances by EOU if excise duty is exempt in India

Excise & Customs : For computing excise duty equal to customs duty on DTA clearances by EOU, CVD component of notional customs duty would be taken as Nil, if excise duty in India is exempt on 'no-cenvat condition'

No CVD on DTA clearances by EOU if excise duty in India on it is exempt

Excise & Customs : For computing excise duty equal to customs duty on DTA clearances by EOU, CVD component of notional customs duty would be taken as Nil, if excise duty in India is exempt on 'no-cenvat condition'

Loss/gain on FCCBs due to forex fluctuation as on balance sheet date is capital in nature

IT : Shares acquired cannot be treated as land or building, plant or machinery etc., but only as 'cost of project' for purpose of allowing deduction under section 35D

Discontinuation of supply of drugs to distributor for short span of time wouldn't amount to unfair t

Competition Act: Where a drug manufacturer had unilaterally and voluntarily stopped supply of drugs to informant distributor for a short span of time due to business exigencies it could not be said that it was in contravention of provisions of section 3

Freight beyond place of removal can't be included in excisable value of goods even if not shown sepa

Excise & Customs : There is no provision in excise law to deny benefit of exclusion of 'freight beyond place of removal' merely because same is not shown separately in excise invoice; hence, freight is not includible in value even if not shown separately in invoice

No reassessment on basis of info received from enforcement dept. if AO failed to examine return file

IT: Where Assessing Officer received information from Enforcement Directorate that in books of assessee there were huge cash deposits which were not explained, he could not reopen assessment on basis of said information alone without even examining as to whether amount in question was reflected in return filed by assessee

'Virginiamycin' is a vitamin and not an animal feed : SC

Customs : Virginiamycin, a pure chemical, is classifiable as 'Vitamin' and cannot be classified as 'animal feed', as same is not imported in premix condition

AO couldn't impose penalty without bringing out any specific charge for its imposition

IT: Before levying penalty under section 271(1)(c), it is incumbent upon Assessing Officer to state whether penalty was being levied for concealment of income or for furnishing of inaccurate particulars of income

Reassessment notice was invalid when Joint Commissioner had recorded his satisfaction in mechanical

IT: SLP dismissed against High Court's ruling that where Joint Commissioner recorded satisfaction in mechanical manner and without application of mind to accord sanction for issuing notice under section 148, reopening of assessment was invalid

Failure of assessee to prove that NR-agent has no PE in India leads to disallowance of commission fo

IT : In absence of any material on record as to whether non-resident agents appointed by assessee rendered services abroad and they had no business connection in India, question regarding assessee's obligation of deduction of tax at source on payment of sales commission to them was to be disposed afresh

IRDA asks insurers to report compliance with Indian ownership and control criteria by Jan 18, 2016

INSURANCE : Reporting of Compliance With Indian Ownership and Control

Failure to pay ST, penalty is to levied on the total amount of service tax determined by Central Exc

Service Tax : For computing reduced penalty of 25 per cent in section 78, 'service tax assessed or determined under section 73(2)' is taken, which shall include both : (a) sums paid prior to issuance of notice and appropriated in adjudication order; as well as (b) further sums confirmed as payable in adjudication order

An assessee can't be compelled to disclose the source of income of its creditors under sec. 68

IT : In terms of section 68, assessee is liable to disclose only source(s) from where he has himself received credit and it is not burden of assessee to show source(s) of his creditor nor is it burden of assessee to prove creditworthiness of source(s) of said sub-creditors

AO has to record his satisfaction under sec. 153C even if AO of searched person and other person is

IT : Even in cases where Assessing Officer of person searched and assessee who is sought to be assessed under section 153C is same, still Assessing Officer is required to record his satisfaction that assets/documents seized belong to a person (assessee) other than searched person

Bright line test can’t be applied to determine ALP of AMP exp.: Delhi HC

IT/ILT : Bright line test (BLT) is not a valid method for either determining the existence of international transaction or for the determination of ALP of such transaction

RBI directs banks and Govt. Accounts Department to disburse 8.7% interest on Special Deposit Scheme

BANKING : Special Deposit Scheme, 1975 – Payment Of Interest For Calendar Year 2015

Kerala Film Federation penalised for denying exhibition of Tamil and Malayalam films in Crown theat

Competition Act : Where evidences showed that exhibition of Tamil and Malayalam films to Informant theatre were denied at behest of OP association representing film theatres in Kerala and OP held position of strength in film industry in Kerala, conduct of OP was anti-competitive and penalty was to be imposed on it

Donations collected in name of Dera treated as unexplained as Dera wasn’t carrying out charitable ac

IT : Where assessee claiming himself to be a Sewadar of Historic Dera, deposited donations received in name of Dera in his own bank account and, moreover, he failed to prove that any charitable activity in terms of section 2(15) was ever carried out by him, authorities below were justified in making addition to his income under section 68 in respect of donations in question

AOs to specify their e-mail address in notices/letters to facilitate e-communication with taxpayers:

IT : Section 119 Of The Income-Tax Act, 1961 – Income-Tax Authorities – Instructions To Subordinate Authorities – Facilitating Taxpayers' Electronic Interface With The Department

CBDT reaffirm its commitment to exempt MAT on foreign Cos; directs disposal of pending MAT assessmen

IT/ILT : Section 115JB Of The Income-Tax Act, 1961 – Minimum Alternate Tax (Mat) – Applicability Of Mat On Foreign Companies For Period Prior To 1-4-2015

Now Pre-2005 banknotes can be exchanged till Jun 30, 2016

BANKING : Withdrawal Of All Old Series Of Banknotes Issued Prior To 2005

HC denied to grant bail to accused under PMLA as he failed to prove that his money wasn't tainted

PML Act: Where applicant was arrested for schedule offence of fraudulent remittance of foreign currency and he failed to prove money received by him was not crime money, bail could not be granted to him during period of investigation

Permission to store goods outside factory premises without paying duty can't be denied without assig

Excise & Customs : Without giving any reason, Commissioner could not deny extension of permission to store goods without payment of duty outside factory premises, when both Range Superintendent and Division Officer found case genuine

Interest rates in India can't be used to determine ALP of loan transaction designated in foreign cur

IT/ILT: Where ALP of an international loan transaction, which was designated in hard currency, is to be ascertained, interest rate on rupee transactions in India is not relevant

SEBI's International Advisory Board meets; discusses on implementing OECD principles of Corporate Go

SEBI : Sixth Meeting Of International Advisory Board Of SEBI

Now top 500 listed Cos. to include 'Business Responsibility Report' in annual returns

SEBI/INDIAN ACTS & RULES : SEBI (Listing Obligations And Disclosure Requirements) (Amendment) Regulations, 2015 – Amendment In Regulation 34

Allotment of shares in lieu of interest liability as per BIFR scheme held as actual payment under se

IT: When pursuant to settlement creditor agreed to convert a portion of interest into shares, it must be treated as extinguishment of liability for purpose of section 43B

CBDT unveils draft guidelines to determine 'Place of Effective Management' of a company

IT/ILT : Section 6 Of The Income-Tax Act, 1961 – Residential Status - Draft Guiding Principles For Determination Of Place Of Effective Management (Poem) Of A Company

IRDA asks insurers to comply with reporting requirement under FATCA and 'Common Reporting Standards

INSURANCE : Registration And Submission Of Information To CBDT For Compliance With Obligations Under Foreign Account Tax Compliance Act (FATCA)/Common Reporting Standards (CRS)

Refund of capacity based excise duty can be claimed even if factory was closed for one day

Excise & Customs : In context of capacity based excise duty, there is difference between 'temporary non-production for 15 days or more' and 'closure of factory'; in case of 'closure of factory' for even 6 days, assessee cannot be made liable to pay duty and if duty has already been paid, same is liable to be refunded back to assessee

Debenture-trustee can enforce security interest on behalf of debenture holders under SARFAESI

SARFAESI Act, 2002: Whether the respondent-debenture trustee of three debenture holders viz., (LIC, Canara Band and Oriental Bank of Commerce), which was neither a bank nor a financial institution and was not even registered as Securitisation company u/s 3 of SARFAESI could be treated as a secured creditor within the meaning of section 2(zd) of the SARFAESI Act? If yes, whether it can invoke the provision of SARFAESI for enforcement of security interest? Held- Yes

Payments by inflating purchases can't be deemed as loan or advance under sec. 2(22)(e)

IT : Payment of money by inflating purchases cannot be construed as loan or advance within meaning of section 2(22)(e)

Imports made by assessee, himself, at another port may be regarded as identical goods for custom val

Excise & Customs: In case of undervaluation of goods imported at Chennai port, imports of same goods made by assessee himself at Mumbai port may be regarded as 'identical/similar goods' and may be used to determine customs value of imports at Chennai

India To Save $44 Billion In Crude Oil Imports In Fy16; Case For Reducing Petrol, Diesel Prices?

The continuing slide in global crude oil prices is likely to result in a savings of about $44 billion this financial year for India, according to an analysis by the union ministry of petroleum and natural gas.

In its November 2015 report, the ministry's petroleum planning and analysis cell (PPAC) has said that the country's crude oil imports are likely to be around $69 billion this fiscal, down 39% from $113 billion last financial year. The Modi government could not have asked for more.

Highlights of the report:

Falling crude oil prices

Brent crude averaged $44.29/bbl during November 2015 as against $48.56/bbl during October 2015,w hile the Indian basket crude averaged $42.50/bbl during November 2015 against $46.68/bbl during in October, the PPAC said.

India's decreasing oil import bill

Petroleum products as a percentage of India's total imports stood at 18.8%, down from 21.3% in November 2014. The value of petroleum product imports came down sharply to $2.3 billion in November 2015, from $4.1 billion in November 2014, though the quantity also registered a modest fall.

Petroleum products as a percentage of India's imports for the period April to November 2015 was 21.2% as against 30.7% in the corresponding period last year.

Domestic consumption grows

The country's petroleum consumption grew 6.4% in November 2015, as against 4.9% in November last year.

The cumulative petroleum consumption during the period April to November 2015 grew 9.5% to 10.2 metric million tonnes,  when compared to the corresponding period last year.

Lower domestic production

The domestic crude oil production was 3.3% less in November 2015 at 103 tmt.

For the period April to November 2015, production grew at around 5% compared to the corresponding period last year.

Gross production of natural gas for the month of November, 2015 was 2,716 MMSCM which was lower by 3.9% compared with the corresponding month of the previous year (2,827 MMSCM).

LNG imports

LNG import during the month was 1,748 MMSCM, 18% higher than November 2014  at 1,481 MMSCM.

The cumulative LNG import at 13,889 MMSCM for the current year during April to November, 2015 was higher by 8.6% compared to 12,790 MMSCM during the corresponding period last year.

Oil import dependency up

India's import dependency has gone up from 78.1% during April to November 2014 to 79.9% in the same period this year.

In the absence of any planned shutdown, the capacity utilisation was 108.7% at Indian refineries.

Given these realities, will prime minister Narendra Modi and his finance minister Arun Jaitley take comfort in a rather comfortable fiscal position and reduce levies on petrol and diesel and thereby reduce petrol, diesel prices?

Source :.ibtimes.co.in

For TDS default action can be taken within a reasonable period if no limitation period is prescribed

IT : Before 1.4.2010, there was no limitation period under Section 201 of the Act for initiating action on TDS default. It was only by the Finance Act, 2009, the sub-section (3) to section 201 was inserted to provide for a period of limitation of –

Tribunal can't reverse its order in guise of rectification

IT: In guise of rectifying mistake, Tribunal cannot reverse its order

India's Gold Imports Likely To Jump 11% To 1,000 Tonnes In 2015

 India has already imported 850 tonnes of gold from January-September of 2015 as against 650 tonnes in the first nine-months of last year, according to the All India Gems and Jewellery Trade Federation.

   

Buoyed by a sharp fall in gold prices globally, India is likely to see a jump of 11% in imports of the metal to 1,000 tonnes this year, says a trade body.

According to the All India Gems and Jewellery Trade Federation, the world's second-biggest gold consumer had imported around 900 tonnes in 2014.

"Gold import is estimated at around 1,000 tonnes in 2015 calendar year compared to around 900 tonnes last year. Imports are likely to increase because of low global prices," All India Gems and Jewellery Trade Federation Chairman G V Sreedhar said at an event.

He said imports through smuggling are estimated to be around 100 tonnes this year.

According to the Federation, India has already imported 850 tonnes of gold from January-September of 2015 as against 650 tonnes in the first nine-months of last year.

Gold imports are expected to be 150-200 tonnes in the last quarter as against 300 tonnes in the year-ago period.

The World Gold Council has said in its latest report that India's gold demand in the October-December quarter will be more muted.

"Lingering concerns over the health of the rural Indian economy and local gold prices remaining in close proximity to Rs 27,000 per 10 grams level in recent weeks also give reasons to adopt a prudent outlook for the usual fourth quarter uplift in Indian demand," it had said in the report.

Although the upsurge in demand during July-September period partially compensated for the second quarter's poor turnout, it also ate into 'normal' seasonal demand that would take place between September and November, the report said.

Festival and wedding purchases were brought forward to take advantage of the price dip, therefore, demand towards the end of the year is likely to be correspondingly affected, it added.

Gold is the second-largest import item for India after petroleum. Higher gold import bill adversely affects the country's current account deficit.

Source :dnaindia.com

IRDA notifies norms on issuance of capital by Indian insurance Companies

INSURANCE/INDIAN ACTS & RULES : IRDAI (Issuance Of Capital By Indian Insurance Companies Transacting Other Than Life Insurance Business) Regulations, 2015

'Event management services' are eligible input services for advertising agency

Cenvat Credit : Event management services availed by advertising agency to procure advertising space in shows, etc. organized by such event managers, is eligible for input service credit in hands of such advertising agency

Advances written off by finance co. are allowable as bad-debts even if same are shown as investment

IT : Where assessee-company advanced money to another company in ordinary course of its business activity of finance and interest on it was assessed as its business income and on issue of debenture by said company amount due to said company could be written off under section 36(1)(vii)

Commissioners to send report of cases on which cost was imposed by CESTAT due to poor adjudication:

EXCISE : Imposition Of Cost By Cestat On Grounds Of Quality Of Adjudication Order

Rajasthan Govt. issues new VAT form for declaration of exempted goods purchased by dealers

VAT/INDIAN ACTS & RULES : Rajasthan Value Added Tax (Fourth Amendment) Rules, 2015 – Amendment In Rules 21, 22a, 53 And Form Vat-65; Substitution Of Rule 41 And Insertion Of Form VAT-72

Assessee hadn't taken a wrong credit if it had paid duty on exempted goods when dept. didn't clarify

Cenvat Credit : Where assessee asks department to clarify applicability of exemption and in absence of clarification, proceeds with payment of duty along with benefit of Cenvat credit, then, assessee cannot be said to have 'wrongly taken' credit; hence, even if said goods are later clarified to be exempted and assessee is made to reverse credit, assessee is not liable to pay interest on reversed Cenvat credit

HC rejects Bright Line Test for determining ALP of AMP expenses

IT/ILT : Where the Revenue has been unable to demonstrate some tangible material that there is an international transaction involving AMP expenses between Indian subsidiary and foreign parent, the Revenue cannot proceed to determine ALP of AMP expenses by inferring the existence of an international transaction based on the bright line test

AO couldn't reopen assessment to seek more details of transaction

IT: Where assessee had shown gift of shares to a company, merely because assessee had been called upon by Assessing Officer for verification of value of shares in terms of section 47(iii), it would not enable revenue to resort to section 147

Genuine disputes relating to oppression and mismanagement not referable to arbitration

CL: Disputes raised in a properly filed petition under sections 397, 398, 402 and 403 are not referable to arbitration in accordance with agreement between parties

Co. rending engineering support services isn't comparable with a co. engaged in third party inspecti

IT/ILT : Assessee, which was rendering engineering support services including related design and drawing as per specification of its foreign AE, could not be compared with a company which was engaged in functions of Third Party Inspections (TPI), certification of equipment supplied by vendors and installation of work of contractors of ONGC, other government departments and private sector undertakings

Domestic Milk cans classifiable as 'kitchen articles' and not as 'cans'

Excise & Customs : Domestic Milk cans are classifiable as 'kitchen/household articles' under Heading 73.23 and not as 'cans' under Heading 73.10

Rupee Closes Marginally Higher Against Us Dollar At 66.33

The Indian rupee on Tuesday closed marginally higher against the US dollar, tracking the gains in the Asian currencies markets. This was the sixth consecutive session when the rupee closed higher against the US currency.

The rupee closed at 66.33 a dollar, up 0.03% from its previous close of 66.35. The local currency opened at 66.31 a dollar.

India’s benchmark equity index, BSE Sensex, ended at 25,590.65 points, down 0.56%, or 145.25 points.

The yield on India’s 10-year benchmark bond closed at 7.76% compared with its Monday’s close of 7.772%. Bond yields and prices move in opposite directions.

Traders are cautious in a holiday shortened week ahead.

Markets will remain closed on Friday for Christmas.

Since the beginning of this year, the rupee has weakened 4.9% against the dollar, while foreign institutional investors (FIIs) have bought $2.84 billion from local equity markets and $7.77 billion from the debt market.

Most of the Asian currencies were trading higher against the dollar. The Indonesian rupiah was up 1%, South Korean won 0.39%, China offshore 0.29%, Singapore dollar 0.17%, Taiwan dollar 0.14%, Thai baht 0.14% and Japanese yen 0.13%. However, Malaysian ringgit was down 0.14%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 98.334, down 0.04% from its previous close of 98.363.

Traders are awaiting the gross domestic product (GDP) and home sales numbers and corporate profits data in the US later in the day, according to a Reuters report.

Brent crude fell for 16 out of 19 trading sessions. Since 25 November, it fell 22.11%. Brent crude was trading at $36.57 a barrel, up 0.63% from its previous close.

China’s leadership signalled that it will take more steps to support economic growth from a 25-year low, including by widening the fiscal deficit and stimulating the housing market. Statements released at the end of the government’s Central Economic Work Conference also highlighted the desire for more “flexible” monetary policy, Bloomberg reported.

Source:- livemint.com

Failure to serve notice can be cured by Sec. 292BB but not failure to issue notice

IT : Failure of Assessing Officer issue notice under section 143(2) is fatal to order of reassessment; such failure cannot be condoned by referring to section 292BB

Kingfisher Airlines, a wilful defaulter can represent through advocate before Redressal Committee

Banking Laws : A Person who is proposed to be classified as a wilful defaulter by a Bank/FI and are given an opportunity of hearing before grievance Redressal Committee (GRC) of said Bank/FI, is entitled to be represented therein through advocates

DRT's jurisdiction to consider securitization application to be decided under RDDB Act and not CPC

SARFAESI: Jurisdiction of DRT to decide a Securitization Application under section 17 of SARFAESI Act, ought to be decided on principles enshrined in section 19(1) of RDDB Act rather than on basis of section 16 of CPC

No custom duty on 'diving equipments' if they were welded onto barge prior to import

Excise & Customs : Where diving equipments were welded onto barge even prior to import and continued to be so welded even when barges were returned back, said 'diving equipments' were eligible to be exempted along with barge

Sec. 14A disallowance not to be added back while computing book profits under Sec. 115JB

IT : While computing book profit for purpose of section 115JB, disallowance made under section 14A as also disallowance under normal provision of Act cannot be added back

Vietnam Cement Exporters Fail To Hit Target

Vietnamese cement producers are struggling to maintain high volumes of cement exports due to falling overseas demand.

According to the Vietnam National Cement Association (VNCA), Vietnamese cement makers have been facing fierce competition from China, the world’s biggest cement producer, which accounted for 60 per cent of the world total output.

Selling at lower prices and trying to boost export whilst facing tough times domestically have led to a spreading malaise across the Asian market, the association added. Competition from overseas producers has prevented Vietnamese cement makers realising this year’s export target of over 20Mt of cement and clinker.

Luong Quang Khai, chairman of Vietnam Cement Industry Corp (Vicem), the country’s leading cement producer which holds 35 per cent of the domestic market, said that its cement exports could only meet 60 per cent of the full-year’s target of 3.5Mt.

Nguyen Tien Dat, general director of Vissai Cement Group, another major cement and clinker exporter, said that the group was unlikely to attain the same goal set last year.

He claimed that cement exporters from Vietnam were struggling with the rising input cost while the import demand from overseas markets showed no sign of improvement.

Meanwhile, ports in Vietnam used to export from have not yet upgraded to handle large vessels over 20,000dwt. Vietnam’s cement companies must also export via free on-board (FOB) contracts, losing the competitive advantage compared to other peers in the region, including Thailand and China, according to cement analysts StoxPlus.

Vietnam has become the fifth-biggest cement producer and consumer in the world behind China, India, Iran and the US.The country now has 76 cement production lines with a combined output of 81.56Mta.
The Ministry of Construction forecast that Vietnam's sales of cement and clinker will rise 4-7 per cent on year to between 75-77Mt in 2016 despite persistent economic woes.

Source :cemnet.com

Uplinking of own TV channels to satellite is taxable under broadcasting services

Service Tax : Uplinking of own TV channels and earning 'airtime and uplinking charges' is prima facie taxable under Broadcasting services

Provisions relating to bail under PMLA overrides bail provisions of CrPC

PMLA : Section 71 of PMLA provides that the provisions of the PMLA shall have overriding effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force. PMLA has an overriding effect and the provisions of Cr.P.C. would apply only if they are not inconsistent with the provisions of this Act. Therefore, the conditions enumerated in Section 45 of PMLA will have to be complied with even in respect of an application for bail made under Section 439 of Cr.

Time-limit for sec. 54EC investment to be extended automatically on unavailability of desired bonds

IT: Where bonds of assessee's choice were not available throughout stipulated period for investment for claiming exemption from capital gain, time limit to invest in bonds would get automatically extended

Secondary Steel Sector Wary Of Decision To Raise Minimum Import Price

KOLKATA: The secondary steel sector is apprehensive about the government's proposed move to impose minimum import price (MIP) for steel. While falling steel prices, higher electricity costs, and interest burden are already a drag for smaller mills in the secondary sector, they feel that any plan to bring their raw material under the proposed MIP, will affect them. This could lead to heavy defaults on loans and significant jobs losses, since the sector supports some five million people in terms of direct and indirect employment. As per a steel industry report by Bank of America Merrill Lynch, out of the total Rs 2.8 lakh crore of NPAs in the steel sector, some Rs 1.95 lakh crore is with Tier 2 mills and the unorganized sector.

"While MIP is a good move, we would urge the government to implement it in a rational manner that should not harm the secondary steel sector," Prakash Tatia, chairman of Sponge Iron Manufacturers' Association (SIMA) said. Against installed capacity of 50 mt, domestic sponge iron production has been only around 18 mt with capacity utilisation of only 35% in the last 2-3 years.

While domestic steel industry has overall capacity of 105 million tonne (mt), with a crude steel output of close to 91 mt, around 54% of capacity is in the secondary steel sector, Tier-II and local steel units. To ensure the survival of some 2,000 secondary units which are in operation, government should ensure that iron ore and coal is available on affordable and consistent basis. There should also be a pricing mechanism for these raw materials based on export parity, Tatia said.

Some of the secondary units like, slab re-rollers for instance, use continuously cast slabs, not readily available in the country. Currently, slabs worldwide are available at a very reasonable price range between US$ 220-250 f.o.b (free on board), facilitated by the dip in iron ore, coking coal and scrap prices. These units depend on imports and if a MIP higher that the current import price is imposed on slabs it will deal a vital blow to their raw material costs, the SIMA official said. Incidentally import of slabs accounted for 3 lakh tonne out of India's over-9 mt of steel imports last year.

Another section of the steel user industry expected to be affected if the MIP is not imposed rationally are those who use it for critical applications. These special steels have to be necessarily imported and include clad steel, special grade boiler steel, API high-grade steel for high pressure applications and higher width/thickness requirements as well as special auto grade steel.

Source :economictimes

Iran Woos Indian Refiners To Drive Oil Sales In Cut-Throat Market

NEW DELHI: Spurred by the prospect of an end to western sanctions, Iran has agreed to consider Indian demands for steep oil price discounts and other buying incentives, sources said, as it works to rebuild market share in a world awash with crude.

Tehran's return to the market will deepen a global supply glut that has cut benchmark Brent crude prices by two-thirds since 2014, below the lows hit during the 2008 financial crisis and to levels last seen in 2004, leaving producers to battle for market share.

The National Iranian Oil Company's international affairs director, S.M. Ghamsari, met Indian refiners last week, the sources told Reuters, including firms that halted imports from Tehran because of the sanctions.

Rather than quoting its own terms and prices, people involved in the negotiations said the Iranian delegation made the rare move of asking the refiners for proposals that would make their supplies more competitive than those of rivals.

"I haven't seen them as flexible as they were in the recent meeting," said a refinery source who met Ghamsari. "They have sought our feedback on how to make pricing of their crude competitive."

Ghamsari was willing to consider better pricing and sales terms, as well as offering new grades of crude, to boost market share, said four Indian refinery sources with direct knowledge of the talks.

"Naturally, we will see if Iranian oil fits into our model. If it is economical, only then we will go for it," said a source at an Indian refinery that does not buy Iranian oil.

Currently, Iran offers 90-day credit, free shipping and some discounts on crude prices to buyers in India.

India is Iran's second-biggest customer for oil, and at around 4 million barrels per day (bpd) is the world's fourth-biggest oil consumer. The country imports some 80 per cent of its needs and demand is set to rise fast as the economy grows at over 7 per cent a year.

Ghamsari's office in Tehran said he was not available for comment.

CUT-THROAT COMPETITION

No date has been set for the lifting of nuclear sanctions on Iran, but Tehran said on Friday the country will export most of its enriched uranium to Russia in coming days, a key part of a deal reached last year with a group of six world powers.

Iranian exports would go head to head with competitors within the Organization of the Petroleum Exporting Countries (OPEC) like regional rivals Saudi Arabia and Iraq, which produce similar types of crude and have virtually the same trading routes and prices.

"The Saudis and Iraqis are already in the market. If Iran wants to corner their share, it has to offer better terms in the form of discounts and payment conditions," said Ehsan Ul-Haq, senior analyst at London-based consultancy KBC Energy Economics.

"It will be a cut-throat fight for market share among the Gulf producers," Haq said.

Formerly the second biggest OPEC exporter, Iran's crude exports have more than halved to around 1 million barrels per day (bpd) since 2011.

Tehran has said it plans to ramp up output by 500,000 bpd once sanctions are lifted, adding to overproduction that is estimated at between half a million and 2 million bpd.

The moves in India follow agreements to extend crude sales with its top two Chinese buyers into 2016.

In India, Iran already supplies oil to Mangalore Refinery and Petrochemicals, Essar Oil and Indian Oil Corp. Reliance Industries Ltd, Hindustan Petroleum Corp, HPCL-Mittal Energy Ltd, Chennai Petroleum Corp and Bharat Petroleum Corp stopped imports from Iran due to sanctions that hit banking channels.

Source :economictimes

Argentina’S Duty-Free Exports Of Soya Oil Fuel Worries Among Indian Extractors

Mumbai,  

In yet another blow to the ailing edible oil industry, the Argentina government has removed export duty on soyabean and soya oil to make their exports competitive and retain its share in global edible oil market where prices are falling.

Pravin S Lunkad, President, Solvent Extractors Association, said the move by newly elected Argentina President Mauricio would have a positive impact on their export but soyabean and soya oil prices have started falling in the international markets.

Indian edible oil industry and farmers are already hit by the 24 per cent increase in edible oil import at 14.4 million tonnes last oil season (November 2014 to October 2015) worth about ?65,000 crore ($10 billion).

“Globally, edible oil prices are at record low levels of 2008 and Indian edible oil producers are unable to compete with rising imports due to high prices they pay for soyabean in India,” he said in a statement on Monday.

Indonesia and Malaysia, the major palm oil producing countries, have set up a council with a common objective to maintain higher price of palm products in the international market and reduce competition amongst them.

India imported nearly 9.5 million tonnes of palm products from Indonesia and Malaysia – almost two-third of total imports in 2014-15.

Both these countries have inverted duty structure where crude palm oil attracts more duty than finished product refined palm oil, affecting the domestic refining sector. This may have serious implication for India in the long run if the government does not take corrective measures, Lunkad said.

The association has asked the Centre to revise the duty difference between crude and refined oils to at least 15 per cent to protect the margins of domestic industry and ensure some value addition within the country.

The Association has made representation with the Commission for Agricultural Costs and Prices to reduce import duty on high oil-content oilseeds such as rapeseed/mustard and sunflower seeds to 5-10 per cent from 30 per cent so that crushing of these can reduce edible oil imports and also enhance oilmeal supply for domestic consumption by feed industry and exports.

“Oilseed imports will not have any impact on the farmers as they are protected with an assured minimum support price of the government,” he said.

 

Source :thehindubusinessline.com

Abatement on construction services available even if free supplies of material not included in gross

Service Tax : Construction work of shops for local authority, which were to be allotted to unemployed people under a state sponsored scheme, is liable to service tax

Job given to wife on accidental death of husband isn't pecuniary advantage under Motor Vehicle Act

IT: Compassionate appointment given to dependent of deceased employee cannot be termed as 'Pecuniary Advantage' under periphery of Motor Vehicles Act and, therefore, amount received on such appointment is not liable for deduction for determination of compensation under said Act

Delhi HC declines to issue directions to investigating agencies to probe FCRA matters against AAP

FCRA/FEMA : Absent any reason why investigating agencies would not look into allegations against AAP(Aam Admi Party) leaders under FCRA/FEMA , Delhi HC declines to issue any directions to the agencies as regards investigation of the allegations and dismisses PIL without expressing any opinion on the merits of the case

CBEC empowers Chief Commissioners to authorize any officer of his zone to appear before Tribunal

EXCISE : Jurisdictional Officer Authorized to Appear Before Cestat Bench for Pleading A Case on Behalf of Department

Neither AO nor TPO can resort to cherry-picking of uncontrolled transactions under CUP method

IT/ILT: While determining ALP under CUP method, if number of comparable uncontrolled transactions are available, it is arithmetic mean of price charged in all such transactions, which is considered for determining ALP of an international transaction; in such a case, neither Assessing Officer nor Transfer Pricing Officer can resort to cherry-picking

CBEC decides to withdraw pending cases before HC/CESTAT if SC has already decided on identical matte

EXCISE : Withdrawal of Cases Pending Before High Court/CESTAT on Basis of Earlier Supreme Court's Decision on Idential Matters

High Court can hear appeal involving issue of 'manufacture'

Excise & Customs : Section 35G only excludes appeal from an order of Tribunal relating, among other things, to 'rate of duty' or to 'value of goods'; it does not exclude appeal against Tribunal order on issue of 'manufacture' therefore, High Court may entertain appeal involving issue of manufacture

CBEC raises monetary limits for filing appeal by revenue

EXCISE : Reduction of Government Litigation – Providing Monetary Limits for Filing Appeals by Department Before CESTAT/High Courts and Supreme Court

Annual disclosure to be made under Reg. 8(3) of takeover code even if there is no change in sharehol

SEBI: Obligation under regulation 8(3) requiring annual disclosures to be made by listed company to stock exchanges is mandatory, even if there was no change in shareholding of persons/promoters set out under regulations 8(1) and 8(2) because not merely shareholding as on last day of financial year but also changes, if any, between current and previous financial year has to be disclosed

Pen drive, networking equipment and printers are part of computer system; eligible for 60% depreciat

IT: Where assessee, engaged in business of process management services for credit cards, paid licence fee in order to get limited right to use a software programme belonging to other company, amount so paid was to be allowed as business expenditure

Credit can't be denied if capital goods are removed from factory due to paucity of space after intim

CENVAT : Where manufacturer had intimated department about shifting of machines to rented premises near factory and submitted proper documents and no job work was done, Cenvat credit could not be denied

Payment of buy-back premium is deductible if buy-back is made to settle dispute between shareholders

IT : Where no income had been accrued or received by assessee on built-up area to be constructed on one plot under an agreement to transfer two plots owned by assessee, same would not be taxable in hands of assessee

Indian agent procuring ad air time for National Geographic & Fox Channel held as agency PE of foreig

IT/ILT : Agent of US based company procuring advertisement airtime for National Geographic Channel and Fox International Channel held as its agency PE in India. Thus, profits attributable to PE of foreign company on sale of advertisement airtime were taxable in India.

Order dismissing appeal in absence of pre-deposit can't be challenged without challenging pre-deposi

Excise & Customs : Where pre-deposit order directing assessee to make a pre-deposit was not at all challenged, same had attained finality and once pre-deposit order has attained finality, dismissal of appeal for non-compliance with pre-deposit condition cannot be independently challenged

No Sec. 153C assessment proceedings only on basis of survey

IT : Matter restored to file of Commissioner (Appeals) to readjudicate issue whether survey under section 133A could be made basis for assessment framed under section 153C

SC directs tribunal to decide whether value of software meant for upgrading could be included in val

Excise & Customs : Where Tribunal rendered conflicting view on 'inclusion of value of software in value of imported mobile phones', Supreme Court remanded matter for consideration of issue by larger bench of Tribunal

No best judgment assessment if dept. fails to prove how assessee failed to assess tax as per law

Service Tax : Where assessee had filed returns in due time, department could not invoke best judgment assessment under section 72 without even specifying how assessee failed to assess tax as per law and which details were not supplied by assessee

Period of 30 days to be considered and not British Calendar month to calculate interest for delayed

IT : For calculating interest under section 201(IA), term 'month' must be given ordinary meaning of term of 30 days period and not British calendar month

No best judgment assessment if dept. fails to prove how assess failed to assessee tax as per law

Service Tax : Where assessee had filed returns in due time, department could not invoke best judgment assessment under section 72 without even specifying how assessee failed to assess tax as per law and which details were not supplied by assessee

Rupee Moves Up 9 Paise Against Us Dollar In Early Trade

 MUMBAI: Rising for the fifth straight session, the rupee gained 9 paise at 66.31 against the dollar in early trade today at the Inter-bank Foreign Exchange on increased selling of the US currency by exporters.


Forex dealers said sustained selling of the American unit by exporters and the dollar's weakness against some currencies overseas supported the rupee, but a lower opening in domestic equity market restricted the gains.


The rupee had appreciated by a modest two paise to settle at 66.40 against the greenback on Friday.


It had gained 69 paise in the past four trading sessions.


Meanwhile, the benchmark BSE Sensex fell 105.68 points, or 0.41 per cent, to trade at 25,413.54 in early trade.
 

Source :timesofindia.indiatimes.com

Copper Falls By 0.3% On Weak Global Cues

Copper futures fell 0.28% to Rs 317 per kg today as speculators trimmed positions amid weak trend in the global markets.

Moreover, muted demand at domestic spot markets also put pressure on prices.

At the Multi Commodity Exchange, copper for delivery in April next year declined by 90 paise or 0.28% to Rs 317 per kg in a business turnover of seven lots.

The metal for delivery in February fell by 85 paise or 0.27% to Rs 312.45 per kg in a business volume of seven lots.

Analysts said a weak trend in copper in the global market after climbing the most in over two months and subdued demand at the domestic spot markets, weighed on copper futures.

Globally, copper for delivery in three-months fell 0.4% at $4,667.5 per tonne at the London Metal Exchange.

 

Source :.business-standard.com

No reassessment on exclusion of forex gains from total income as such info was available during asse

IT: Where reassessment was initiated on ground that assessee had excluded foreign exchange fluctuation gains while computing total income while, in fact, same computation was available on record during assessment, reassessment was bad

Now auditors shall report only on frauds of one Crore or more to Govt

COMPANIES ACT, 2013/AAA/INDIAN ACTS & RULES : Companies (Audit and Auditors) Amendment Rules, 2015 – Substitution of Rule 13 and Amendment in Rule 14 & Form No.ADT-4

For Oil-Producer Nigeria, India Is Top Export Destination

India has taken the first place as Nigeria's major export destination with earnings of $2.02 billion from the sale of crude oil, representing 17.5 per cent of the country's total export for the third quarter of this year, the National Bureau of Statistics (NBS) said.

For the 2014-15 financial year, the Indian High Commission said, the country imported $13.53 billion worth of crude and petroleum products $13.96 billion in 2013-14.

"Bilateral trade between India and Nigeria in 2014-15 stood at $16.36 billion, which was two percent less compared to the previous year's figure of $16.98 billion," the high commission added.

It said India's exports to Nigeria have grown gradually during the last few years - from $1.08 billion in 2007-08 to $2.68 billion in 2014-15. Nigeria is India's largest trading partner in Africa and India is the largest trading partner of Nigeria globally

From the NBS figures, Netherlands is the second major export destination with $1.2 billion representing 10.5 percent, followed by Spain with $1.04 billion representing 9.1 percent, the NBS said.

The NBS said the value of the nation's merchandise exports totaled $11.58 billion in the third quarter of 2015 and represented a decrease of $1.59 billion or 12.1 percent, over the previous year's figure of $13.17 billion.

The decline was attributed to a fall in crude oil exports by $1.85 billion or 18.8 percent over the preceding quarter. "Nevertheless, the structure of exports is still dominated by crude oil, which contributed $7.99 billion or 69.1 percent to the value of total domestic exports in 2015. Natural liquefied gas recorded $1.31 billion of the total export value during the period under review," the NBS added.

Nigeria's total external merchandise trade decreased by $1.67 billion to $1.9 trillion in the third quarter of this year.

It attributed the decline to a $320.6 billion or 12.1 percent decline in the value of exports as well as imports decline of 17.4 billion or 1.0 percent against the levels recorded in the preceding quarter.

 

Soorce :.business-standard.com

Government Taking Necessary Steps To Boost Msmes, Exports: Nirmala Sitharaman

The government is taking necessary measures to support small and medium industries, keeping in view a sluggish global situation that has led to a fall in the country's exports, Commerce and Industry Minister Nirmala Sitharaman has said.

"It cannot be denied that the global situation has been depressed and things are not improving. The government is doing what it can to change the situation for the small and medium players," the minister said at the inauguration of 'India Diamond Trading Centre' on Sunday.

She said merchandise exports are likely to fall further and the ministry is making all efforts to help small and medium players.

The gems and jewellery sector constitutes 13% of the merchandise exports, she added.

India's exports remained in negative territory for the 12th straight month after it registered a drop of 24.43% in November to $20.01 billion (nearly Rs 13.27 lakh crore) as against $26.48 billion (nearly Rs 17.56 lakh crore) in the year-ago period.

The minister said, the gems and jewellery sector needs a lot of attention as it provides jobs to millions and the government will take steps to remove the hurdles that are impediment to the growth.

"We will ensure that the gems and jewellery sector remains vibrant. We will take up some of the concerns of the industry with finance ministry, especially the taxation issue," she added.

Sitharaman further said, the industry has grown since 2004-05, to become an important sector, exporting $40 billion (nearly Rs 26.53 lakh crore) goods in 2014-15, due to its entrepreneurship, drive and hard determination to be internationally competitive.

Speaking about the Diamond Trading Centre, the minister said, "Last December 2014, Prime Minister Narendra Modi in the presence of Russian President Vladimir Putin at the World Diamond conference, jointly organised by the GJEPC, said he would announce a special notified zone (SNZ) and within one year we are here to inaugurate the diamond trading centre. And this is much before the scheduled visit of the Prime Minister to Russia."

Source :.dnaindia.com

Us Lifts Oil Export Ban; India To Benefit?

WASHINGTON: The United States on Saturday lifted a 40-year-old ban on export of oil, thus paving the way for energy deficient countries like India to open up another frontier to import oil from a distant friendly nation.

The ban was lifted as President Barack Obama on Saturday signed into law the Omnibus $1.8 trillion spending package and tax bill for the current fiscal ending on September 30, 2016.


The move was welcomed by the industry , while proenvironmental groups were critical of it.


Senator Lisa Murkowski, energy panel chairman, welcomed the decision. "By lifting the domestic crude oil export ban, we are sending a signal to the world that our nation is ready to be a global energy superpower," he said. "With crude exports comes job creation, economic growth, new revenues, prosperity, and enhanced energy security for our allies and ourselves," Murkowski said.

Top Comment
Yes Indian Corporates will benefit maximum, not the people!Krishna

Business Roundtable welcomed the move to end the ban on the export of US crude oil, a policy enacted during the 1970s. "Business leaders representing every sector of the US economy applaud Congress for voting to end the outdated ban on American oil exports," said Nicholas K Akins, chairman, president and CEO of American Electric Power Company , Inc and chair of the business roundtable committee on energy and environment.


"The US is now the world's number one oil producer, and removing this ar tificial export restriction will strengthen our nation's strategic position in global energy markets," he said.


However, senator Tom Carper, a top Democrat, ex pressed concern over lifting the ban. "I am deeply con cerned about the impact of lifting the oil export ban on our independent oil refi ners, who employ thou sands of hardworking midd le class Americans," he said Republican presidential candidate Chris Christie wel comed the decision to lift ban on oil export. "The oil export part of it is great, it's good for Americans, it's good for the oil industry , it's good for the world," he said.

CESTAT can't entertain an appeal without mandatory pre-deposit by appellant

ST: CESTAT cannot entertain any appeal filed on or after 6-8-2014 without mandatory pre-deposit

Now Delhi dealers to reverse full input credit on inter-state transfer of Tobacco and lubricants

VAT/INDIAN ACTS & RULES : Delhi Value Added Tax (Amendment) Rules, 2005 – Amendment in Rules 7 and 43

Sum paid by employer voluntarily to settle dispute on premature cessation of employment is tax free

IT: Where ex gratia compensation paid to assessee on his discharge from services was voluntary in nature, it would not amount to compensation in terms of section 17(3)(i)

Govt. includes 41 Housing finance Cos under ambit of 'financial institutions' under SARFAESI Act

SARFAESI : Section 29(1)(m)(iv) of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 – Financial Institution – Notified Financial Institution

Now RBI permits FIIs, FPIs and NRs to purchase security receipts of Securitization Cos

FEMA/ILT/INDIAN ACTS & RULES : FEM (Transfer or Issue of Security by A Person Resident Outside India) (Thirteenth Amendment) Regulations, 2015 – Amendment in Schedule 5

Order passed by 'In-charge Chief Metropolitan Magistrate' in absence of CMM to recover mortgaged pro

SARFAESI : Where petitioner failed to pay outstanding dues of respondent bank, order passed by In-charge Chief Metropolitan Magistrate 'de-facto' assuming jurisdiction in absence of Chief Metropolitan Magistrate under section 14 to recover possession of mortgaged property could not have been assailed by petitioner

No denial of sec. 10B relief just because end product of research contract would be used in later st

IT : Where research documents and speciality compound produced while providing 'contract research' service in chemistry would be used only in later stages of development of industrially useful chemicals, it could not be concluded that assessee was not manufacturing an article or thing; its claim for exemption under section 10B was to be allowed

No special audit on basis of seized material without indicating complexity in accounts

IT: Where assessee shifted business premises with due intimation to department, order of transfer case without notice to assessee, was illegal

Winding up plea filed by bank at Mumbai in respect of guarantee executed by its agent branch at Hong

CL: Where document of guarantee was executed by respondent in favour of petitioner-bank, which had its registered office at Vadodara and corporate office at Mumbai, acting through its Hong Kong branch, winding up petition filed by petitioner in Bombay High Court was maintainable

Bank of India entitled to double taxation relief on income of its foreign PE as it had paid taxes ou

IT/ILT : Where operations of assessee-bank in foreign countries denoted it having PE outside India, income attributable to said branches could not be taxed in India as there was sufficient evidence on record pertaining to payment of taxes by those branches abroad

Definition of "Person" in service tax which includes AOP or BOI whether incorporated or not is a per

Service Tax : Inclusion of 'association of persons or body of individuals, whether incorporated or not' in meaning of word 'person' is constitutional.

Officer can have a Camp Office at taxpayer's house to examine him on oath after search and seizure

IT: Where search of assessee's residential premises resulted into seizure of huge cash and panchanama was drawn, Authorized Officer was not barred from going to house of assessee and served notice on him to depose at said residence; it could not be said that Authorized Officer had trespassed into house of assessee and he deserved to be prosecuted