Rajesh Exports To Venture Into Gold Mining In 2-3 Years; Expand Refinery, Retail Stores

Rajesh Exports acquired Valcambi in an all-cash deal of $400 million on Monday. Rajesh Exports Limited on Monday announced its 100% acquisition of Valcambi, the world's largest gold refinery in an all-cash deal of $400 million.

Valcambi has, for the last three years, been producing over 900 tonnes of gold on an annual average, which means, that gold from the company alone could be enough to satiate India's annual average gold import which usually hovers around 800 tonnes.

Rajesh Exports also announced its plans of foraying into gold mining in the next 2-3 years. On a more immediate basis, the company will upgrade and expand its existing refinery at Rudrapur in Uttarakhand.

1-2 years, we are planning to expand our refinery in Uttarakhand with world-class technology from Valcambi. This will be under the 'Make in India' initiative that help us in providing international raw material in the domestic market," Rajesh Exports' managing director Prashant Mehta said.

One of the main reasons for the acquisition cited by Mehta was to meet the raw material requirement, which is deemed difficult. "The consistent supply of raw material is a big issue. With this acquisition, there will be smooth supplies at lower prices," he said.

The acquisition will help boost revenues and profitability of Rajesh Exports in coming years, he added. The company expects to become debt-free in four years, he added.

Going forward, Rajesh Exports said the company, which has a controlling market share (50%) in supplying raw materials to 14 states, is also planning to expand the number of stores under its retail brand 'Shubh' to 450 from the existing 82 in the next three years.

In Monday's trading session, Rajesh Exports' stock price rose to a high of Rs 549.95 a share, before closing at Rs 540.10, up 2.09% from previous day's close.

Source:dnaindia.com

Rupee Appreciates Against Us Dollar

Snapping its four-day losing streak, rupee advanced 7 paise to 64.09 per against dollar in early trades today. The local currency had closed at a fresh six-week low of 64.16 on Monday amid persistent demand for the greenback from banks and importers.

All eyes were on the US Federal Reserve's two-day meet beginning later in the day. Cues on when the US apex bank will start raising interest rates will be a key factor that may drive dollar movement in the near future.

"While our US economists expect a September rate hike, they think that the FOMC statement would emphasize data dependence and eschew any overt signals about the timing of liftoff," said BofA-ML in a research note. JPMorgan too expects the US Fed to start hiking rates in September.

In an interview to ET, Adrian Mowat of JPMorgan said, "Our base case is the US Federal Reserve will exit zero interest rate policy in September meeting. We expect fair amount of guidance post the July meeting with regard to exiting zero interest rate policy in the September."

Dollar index, which tracks the movement of dollar against a trade-weighted basket of six major world currencies, stood almost flat at 96.52.

"We do not expect the RBI to offer anything more than a token resistance at Rs 64/dollar given that the rupee is seasonally weak in August. With our equity strategists expecting BSE Sensex stocks to post zero per cent profit growth, it is natural that portfolio flows will stall," the BofA-ML note said.

The brokerage though expects the Governor Raghuram Rajan to sell $15 billion of dollars to defend Rs 65 per dollar levels.Bofa-ML's FX strategist, Adarsh Sinha, sees rupee at 64 per dollar in September.

Source:economictimes.indiatimes.com

Cap gain of inherited asset is to be computed by taking CII of the year in which asset is acquired b

IT : As per section 49 where capital asset became property of assessee by succession or inheritance, then cost of acquisition of said asset shall be deemed to be cost for which previous owner of said property has acquired it

Delhi High Court allows 'Red FM radio' to participate in e-auction of FM Channels

CL : Where petitioner radio broadcasting company was denied security clearance and its application for pre-qualification for e-auction of first batch of private FM Radio Channels (Phase – III) was rejected on ground that two of its shareholders had been prosecuted under Prevention of Money Laundering Act, impugned decision denying security clearance to petitioner company was to be quashed as those two shareholders were not directors in petitioner company and controlling interest vested with othe

Loading, unloading and shifting of goods within factory doesn't amount to Cargo Handling Services

Service Tax : Loading, unloading and shifting of sugar bags within sugar factories would not amount to Cargo Handling Services and would, therefore, not be liable to service tax

Running an Allopathic Hospital isn't ultra vires to object of improving Ayurvedic system of Medicine

IT : Where the objects of the trust include "(2)Devising means for imparting education in and improving the Ayurvedic system of Medicine and preaching the same. In order to gain objects No.2 it is not prohibited to take help from the English or Yunani or any other system of medicine and according to need one or more than one Ayurvedic Hospital may be opened.",it cannot be held that running an allopathic hospital is ultra vires to the objects of the trust and exemption u/s 11(1)(a) cannot be deni

Transport, insurance and interest subsidies received by industrial undertaking were eligible for sec

IT : Where amount of transport subsidy, interest subsidy, insurance subsidy and power subsidy had direct nexus with profits and gains derived by industrial undertaking, deduction under section 80-IC has to be granted in respect of subsidies so received

Offerings received in donation boxes of temple can't be taxed as black money under Sec. 115BBC

IT: Section 115BBC is not applicable to institutions like that of assessee trust being a temple or shrine; provisions of this section are meant to check inflow of unaccounted/black money into system with a modus operandi to make out as a part of accounts of institutions like university, medical institutions where problem relating to receipt of capitation fees, etc. is generally highlighted.

Normal loss of finished goods is also liable to duty unless remission application is filed for such

Excise & Customs : Limit of wastage specified by Circular is outer limit and cannot be read as amounting to 'lesser production or not manufactured' so as to give go-by to rule 21; hence, even if alleged loss is within permissible limits, assessee must file remission application under rule 21 and without same, duty is payable

Govt. notifies draft Rules on Land Acquisition Act

CL/INDIAN ACTS & RULES : Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Compensation, Rehabilitation and Resettlement, Development Plan) Rules, 2015

Addition made by AO due to bogus purchases was rightly reduced by relying upon verdict of Apex Court

IT : Where addition made by Assessing Officer on account of bogus purchases was reduced by Tribunal relying upon decision of coordinate bench of Tribunal, though order of Tribunal was non-speaking, in view of fact that GP rate shown was still higher than that in subsequent years, impugned order of Tribunal did not require any interference

CCI imposed cease and desist order against suppliers for adopting collusive tactics to raise similar

Competition Act : Where OPs, were engaged in practices of determination of purchase price of 'CN Container' and collusive bidding in contravention of provisions of section 3, OPs were directed to cease and desist from such practice and penalty was to be imposed upon them

Courier agency importing goods on behalf of consignee must pay duty if it doesn't furnish authorizat

Excise & Customs : If authorised courier importing goods on behalf of consignees, fails to produce authorisation from consignees, such courier agency would become 'importer' and would be liable to duty

AO should satisfy himself about complexity of accounts before directing special audit

IT : Assessing Officer has to form an opinion having regard to nature and complexity of accounts of assessee and interest of revenue before issuing order under section 142(2)

Interest on tax refund having nexus with PE of NR in India would be assessable under article 11 of I

IT/ILT : Since international shipping profits earned by assessee did not fall or was not dealt with any other articles of Indo-Swiss Treaty, it was governed by residuary article 22 of DTAA and, therefore, applying article 22 of DTAA, income from shipping was not taxable in India

Govt Expects $933 Mn From Iron Ore Exports To Japan, Korea

The government is expecting to earn over USD 933 million (about Rs 5,989 crore) from exporting 16.5 million tonnes (MT) of high grade iron ore to Japan and South Korea, Parliament was informed today.

Government approved exports under Long Term Agreements (LTAs) to Japan and South Korea through MMTC for supplying 16.5 MT of high grade iron ore, Minister of State for Steel and Mines Vishnu Deo Sai said in a written reply to Lok Sabha.

"The foreign exchange expected to be earned is around USD 311.05 million per annum at current sale prices against export of iron ore under LTAs," he added.

In June, the Cabinet, chaired by Prime Minister Narendra Modi, gave its approval to renew LTAs with Japanese and South Korean steel mills for supply of high grade Indian iron ore, during the three year period from April 2015 to March 2018.

The quantities covered under the LTA will be in the range of 3.8 to 5.5 MT annually and will be supplied primarily from the mines of NMDC and the contract will be executed by MMTC.

India has been supplying high grade iron ore to Japan and South Korea under LTAs for the last four to five decades.

Sai informed the House that India has sufficient quantity of iron ore, at present, to meet domestic demand. However, there may be regional shortages in some states like Karnataka due to legal and regulatory issues.

Export duty at the rate of 30 per cent ad valorem on all iron ore varieties with effect from December 30, 2011 and 5 per cent ad valorem on iron ore pellets with effect from January 27, 2014 have been imposed, he added.

"Further, export duty at the rate of 10 per cent has been levied on iron ore containing Fe (Iron) less than 58 per cent with effect from April 30, 2015," the Minister said.

Source:business-standard.com

India Cuts Oil Imports From Saudi Arabia By Over 8 Per Cent

NEW DELHI: India has cut crude oil imports from its top supplier Saudi Arabia by over 8 per cent in 2014-15 as it raised purchases from Africa and Latin America in an apparent bid to cut reliance on volatile Middle-East.

Crude oil import from Saudia Arabia was cut to 34.99 million tonnes in the year to March 31, 2015 from 38.18 MT in 2013-14, Oil Minister Dharmendra Pradhan said today.

While imports from sanction-hit Iran were almost flat at 10.95 MT, shipments from Kuwait fell to 17.85 MT from 20.35 MT. Imports from Iraq were almost flat at 24.51 MT but the same from UAE rose 15 per cent to 16.11 MT.

Overall, imports from Middle East fell by over 5 per cent to 109.88 MT, he said in a written reply to a question in Lok Sabha here.

Crude oil imports from Africa and South America rose 10 per cent each as Indian refiners bought more heavier but cheaper grade oil, he said.

Indian refineries have consistently reduced imports from traditional markets like Saudi Arabia and stepped up purchases from newer geographies like Mexico and Venezuela as imports have become viable due to availability of cheaper variants and softening of shipping cost.

India imported 189.44 MT of crude oil in 2014-15, almost unchanged from the previous fiscal, to meet over 80 per cent of its oil needs. Saudi Arabia was the top supplier with 34.99 MT with Iraq being number two.

Venezuela was a very close third with 24.40 MT of oil supplies, 13 per cent higher than 2013-14. With 17.82 MT of crude oil supplies, Nigeria was tied with Kuwait for the fourth spot.

Pradhan said imports from Africa rose to 33.05 million tonnes in 2014-15 from 30.39 MT in the previous year. They went up from South America too, to 34.46 MT from 31.73 MT in 2013-14.

Mexico supplied 5.06 MT of crude oil in 2014-15, marginally higher than 4.94 MT a year ago.

Pradhan said imports from Iran, which was once the second biggest crude oil supplier to India, was 10.95 MT, almost unchanged from 11 MT in 2013-14. In 2012-13, India had imported 13.14 MT of crude oil from Iran.

New Delhi has maintained crude oil imports from Iran at 2013-14 level as the US looked to financially choke Tehran to bring it to negotiating table on its controversial nuclear programme.

Pradhan said Prime Minister has set a target for reduction in import dependency in energy by 10 per cent to 67 per cent by 2012-22, from 77 per cent dependency in 2013-14.

"A Committee has been constituted under the Chairmanship of Additional Secretary, Ministry of Petroleum and Natural Gas, to prepare a roadmap in order to achieve the target," he said.

source:- economictimes.indiatimes.com

Govt. unveils third set of procedures for NGOs to claim Sec. 11 benefit on money send to earthquake

IT : Standard Operating Procedure (SOP) – Part III for Making Application for Claim of Tax Exemption under Section 11(1)(C) of the Income-Tax Act, 1961 in Respect of Remittance of Money/relief Articles by Indian NGOS/charitable Organisations for Earthquake Hit People in Nepal

Eu-Ban Will Impact $1 Bn Pharma Exports From India: Pharmexcil

The European Union's ban on 700 generic drug products, based on data integrity issues found at an Indian clinical research facility where they were subjected to bioequivalence studies, would impact exports worth at least $1 billion from India, according to Pharmaceutical Export Promotion Council of India (Pharmexcil).

While the products being manufactured and marketed directly by Indian pharmaceutical companies constitute around 30 per cent of this estimated value, the products carrying the rest of the value were being sourced by global generic players from India, the Commerce Ministry agency estimates.

"We have estimated the value of the products banned by the European Union to be between $1-1.2 billion. These products are being sourced from India by global majors. Therefore, the EU decision impacts our pharmaceutical exports to the extent of around $1 billion," Pharmexcil director general P V Appaji said here today. The products marketed in Europe by the domestic players would be 30 per cent of the total value of exports impacted by the decision, he added.

According to Appaji, the Union Commerce Ministry has been reviewing the situation arising out of the EU decision and asked the Pharmexcil for the necessary feedback about the impact.

He said the Ministry was unhappy with the blanket ban since the French regulator, ANSM, which had found discrepancies in the ECG reports in its May 2014 audit itself stated that the findings should not be extrapolated beyond the clinic part of the facility.

However, Appaji did not directly respond to a question on whether the Union Commerce Ministry was planning to approach the EU with any fresh representation on this matter.

The Government of India and clinical research firm GVK BIO Sciences, which had conducted the studies on these products at its Hyderabad facility, opened dialogue with various regulatory agencies in Europe and presented more data from cardiologists as well as data from the company's internal investigations following the recommendation for suspension of these products by the European Medicines Agency (EMA) in January this year.

Source:- business-standard.com

Interest on FD wasn't taxable in hands of HUF as FD was transferred to daughters of Karta on disposa

IT: Where asset was disposed in favour of six minor daughters of Karta in form of fixed deposits, interest thereafter could not be treated as part of wealth of assessee-HUF and would not be taxable in hands of HUF