IT : Where particulars about income relating to assignment of business of assessee were fully furnished, penalty for concealment of income was not leviable
Thursday, 25 July 2013
Wednesday, 24 July 2013
Sec. 80-IC deductions not to be reduced from book profits for MAT
IT: Claim of reduction from book profits computed under section 115JB of amount of deduction eligible under section 80-IC is an incorrect claim
HC rules on humanitarian grounds; condones delay in filing audit report as attributed to illness of
IT: Where delay in filing audit report was attributable to illness of assessee's auditor, penalty under section 271B should not be imposed
Central Excise Circular No.972/03/2013-CX dated 24-07-2013
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
Circular No. 972/06/2013.CX
New Delhi, Dated 24th July, 2013.
To
All Chief Commissioners of Central Excise,
All Chief Commissioners of Customs & Central Excise.
Subject: Applicable excise duty on Sedan cars like Maruti SX4, Honda Civic, Toyota Corolla Altis under notification No. 12/2013-CE dated 1st March, 2013 - regarding
Sir/Madam,
I am directed to invite your attention to the above mentioned subject and to say that references have been received from motor vehicle manufacturers, seeking clarification as to whether the excise duty of 30% is applicable on sedan cars like Maruti SX4, Honda Civic and Toyota Corolla Altis. It has been stated that these motor vehicles satisfy all the three conditions mentioned at Sl. No. 284A of the Table in notification No. 12/2013-CE, dated the 1st March, 2013 , viz. (i) the engine capacity exceeds 1500 cc; (ii) the length exceeds 4000 mm and (iii) ground clearance is 170 mm and above. However, these vehicles are not popularly known as Sports Utility Vehicles and that these are in the nature of sedans.
- The matter has been examined. In the Budget 2013-14, excise duty was increased from 27% to 30% on motor vehicles of engine capacity exceeding 1500 cc, popularly known as Sports Utility Vehicles (SUVs) including utility vehicles. In the Explanation appended at Sl. No. 284A of the aforecited notification, it has been mentioned that for the purposes of this entry, SUV includes a motor vehicle of length exceeding 4000 mm and having ground clearance of 170 mm and above. From this, it may be seen that the higher excise duty of 30% is applicable on motor vehicles which are popularly known as SUVs and which satisfy all the three conditions, viz. (i) the engine capacity exceeds 1500 cc, (ii) the length exceeds 4000 mm; and (iii) the ground clearance is 170 mm and above. Maruti SX4, Honda Civic and Toyota Corolla Altis are stated to satisfy all the three conditions but, they are not popularly known as SUVs and neither are they known so in trade parlance. They are reportedly known as sedans in trade and common parlance.
- In view of the above, it is clarified that the aforecited motor vehicles, which are known as sedans, will attract the excise duty of 27% as applicable to large segment cars.[Sl. No. 284 (ii) of the Table in notification ibid]
- Difficulties, if any, faced in the implementation of above instructions may be brought to the notice of the Board.
(Amitabh Kumar)
Director (TRU)
F. No. 354/04/2013 - TRU
Notification No 29 (RE-2013) / 2009-2014 dated 24-07-2013
Government of India
Ministry of Commerce & Industry
Department of Commerce
Udyog Bhawan
Notification No. 29 (RE–2013)/2009-2014
New Delhi, Dated The 24th July, 2013
Subject: Amendment in Notification No. 18 (RE–2013)/2009-2014 dated 11th June, 2013.
S.O.(E) In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), read with paragraph 2.1 of the Foreign Trade Policy, 2009-2014, as amended from time to time, the Central Government hereby makes the following amendments in Notification No. 18 (RE–2013)/2009-2014 dated 11th June, 2013 :
- Policy Condition 4 of Chapter 5 shall not apply to ‘human hair’. Accordingly, the amended Policy Condition 4 shall read as under:
“Import of all live-stock products, shall be subject to a sanitary import permit to be issued by Department of Animal Husbandry, Dairying & Fisheries, Government of India, as per Section 3A of Live-stock Importation Act, 1898, as incorporated by Live Stock Importation (Amendment) Act, 2001 (Act No. 28 of 2001, 29th August, 2001), or as amended from time to time. This condition shall not apply to human hair under ITC (HS) Code 0501”
- The phrase ‘Import of items of animal origin or the products intended for animal feeding containing animal origin materials’ shall replace the phrase ‘Import of all items/products’ at the beginning of the Policy Condition 1 of Chapter 23. Accordingly, the amended Policy Condition 1 shall read as under:
“Import of items of animal origin or the products intended for animal feeding containing animal origin materials under ITC (HS) Code 2309 ‘Preparations of a kind used in Animal Feeding’ shall be subject to a sanitary import permit to be issued by Department of Animal Husbandry, Dairying & Fisheries, Government of India, as per Section 3A of Live-stock Importation Act, 1898, as incorporated by Live Stock Importation (Amendment) Act, 2001 (Act No. 28 of 2001, 29th August, 2001), or as amended from time to time.”
2. Effect of this notification:
- Sanitary Import Permit requirements vide Notification No. 18 of 11.6.2013 will not be applicable to Human hair under ITC (HS) Code 0501.
- Only items of animal origin or the products intended for animal feeding containing animal origin materials under ITC (HS) Code 2309 will require Sanitary Import Permit.
Sd/-
(Anup K. Pujari)
Director General of Foreign Trade
E-mail: dgft[at]nic[dot]in
(Issued from 01/89/180/118/AM-02/PC 2(A))
Writ not maintainable if filed to determine service-tax liability even prior to adjudication
ST : Issue whether assessee is engaged in provision of taxable service, would have to be determined on basis of facts and after an adjudication in pursuance of a notice to show cause; it cannot be decided on basis of affidavits in a writ petition
Sec. 44BB applies to a NR who doesn't have any PE or fixed place of profession in India
IT/ILT : Section 44BB applies only to such an assessee, who is a non- resident and not to an assessee, who has a permanent establishment or fixed place of profession in India
Cotton Price Stabilisation, Export Policy In The Works
Jul 24 2013\
To deal with farmer distress and mill owner woes when a cotton crop fails, the textile ministry proposes to create a dedicated cotton price stabilisation fund.
Textile minister K S Rao said, “The proposal will go before cabinet next month.”
A part of the earnings from cotton exports will be used to create the fund corpus, which will be leveraged to pay the difference in prices in adverse times. The details were still being worked out, he told Financial Chronicle.
India produces 34-35 million bales of cotton in a cotton year – which begins in October and ends in September next year. The requirement of the textile industry, the second largest employer in India, is around 27 million bales annually. A major part of the surplus is exported. The government would also decide early the quantum of cotton to be permitted for exports so that farmers got the right price, he said.
Delayed export permissions are routine. As a result, traders corner stocks and export after getting permission, which take a few months. They make a windfall from this, according to the minister.
Rao said Cotton Corporation of India purchased 2.85 million bales at Rs 3,400- 3,500 per 100 kg in 2012-13, suffering a loss of Rs 719 crore.
Lately, cotton prices have firmed up to Rs 3,900 – 4,300 per 100 kg. So, the government has asked the corporation to release cotton and reduce its losses by Rs 300 - 400 crore.
Rao said he would give top priority to the conversion of 23,000 obsolete powerlooms into modern shuttleless powerlooms. This would raise textile production by at least 30 per cent.
One estimate is that in India over 60 per cent of spindles are more than 25 years old. The automatic (shuttleless) looms account for only 18 per cent of the total. The world average is 62 per cent and in the US all looms are automatic.
Obsolete machinery leads to low output and poor quality of goods. As a result, Indian textiles are not able to face competition in the international market.
The proposed technology upgradation fund would be used in a big way for this purpose. In the past five years, Rs 2,25,000 crore has been invested in the modernisation of the textile industry. The amount included a government subsidy of Rs 17,000 crore.
“In the next two years, Rs 1,00,000 crore investment is proposed in technology upgrades, involving a subsidy of Rs 9,000 crore,” he said.
India has 1,227 textile mills with 29 million spindles. While yarn is mostly produced in the mills, fabrics are produced in the powerloom and handloom sectors as well.
The industry continues to be predominantly based on cotton; 65 per cent of raw materials consumed is cotton. The yearly output of cotton cloth is about 12.8 billion metres (about 42 billion ft).
Rao said he would soon convene a meeting of textile machinery manufacturers to step up production. Lakshmi Mills in Coimbatore is a major manufacturer of shuttleless looms.
While Indian machinery cost Rs 15 lakh per shuttleless loom, a similar loom imported from Europe costs around Rs 30-60 lakh. Chinese shuttleless looms cost Rs 5-15 lakh each. The cheaper Chinese machinery is not preferred due to its poor quality.
Source:-www.mydigitalfc.com
SC : Confirmation of foreign court isn’t required for execution of foreign arbitral award
CL : Arbitration Act: To be executed in India, foreign arbitral award does not require confirmation by foreign Court
Indian Exporters Hopeful Of Quick Renewal Of Gsp By Us
24 Jul, 2013
MUMBAI: Indian exporters are hopeful that the US will quickly renew its Generalised System of Preferences (GSP), which would expire on July 31.
Exports to the US under GSP Form A Certificate of Indian Origin are allowed duty-free entry. Pending renewal of GSP programme, exports from India are subject to US import custom duties.
"US GSP trade preference programme is due for renewal on July 31, 2013 and timely renewal of GSP is very important for maintaining stable bilateral trade between the two countries and to avoid uncertainty in quoting/bidding for any new business which will adversely affect the trade of both countries," CII National Committee on Exports Chairman Sanjay Budhia told PTI here.
He added: "US jobs and corporate interests are equally linked to the renewal of GSP programme," as it allows US businesses cheaper import of raw materials from India.
Last time the renewal was delayed by about three months. "Though the time gap had been covered by retrospective effect in the administrative action, it had put both US importers and overseas exporters at a disadvantage for some time," Budhia said.
US-based businesses imported USD 19.9 billion worth of products under the GSP programme in 2012, including many inputs used in manufacturing.
Source:-economictimes.indiatimes.com
Gold Import Squeeze Likely To Drive Small Jewellers To Grey Market
KOLKATA: Jewellers are up in arms against the new 20-80 principle worked out by the Reserve Bank of India to curb gold imports.
While availability will come down in the market, there is an apprehension that a large section of small jewellers will have to rely on the grey market for the supply of gold to meet the local demand. Jewellers say the government should come out with stricter rules to stop the sale of gold coins and bars rather than issuing new strictures at short intervals to curb imports in a bid to check the widening current account deficit (CAD).
Jewellers in south India that consumes more than 40% of the country's gold imports said RBI strictures were creating more confusion in the market. C Vinod Hayagriv, managing director of Bangalore-based jewellery firm C Krishnaiah Chetty & Sons, said: "RBI's diktats have created confusion in the market. This is not the right approach to curb imports. The government had earlier allowed banks to sell gold coins and bars which had made these two products an attractive investment and we had seen a mad rush for them. The government was not worried then because the rupee was not sliding to the extent that it is happening now."
Hayagriv added that jewellers were still selling coins and bars although the government has now asked banks to stop selling them. "Unless the government comes out with harsh rules to stop the sale of coins and bars, it will be difficult to address the CAD problem. This sort of a piecemeal effort will only destroy the industry which employs nearly 35 lakh people. This will open the floodgate for illegal gold trade," he said.
On Monday, the apex bank asked nominated banks and agencies to ensure that at least one fifth of every lot of gold imported -- in any form or purity --should exclusively be made available for the purpose of export.
But the export market for gold jewellery has declined by 60% in the first three months and there is no sign of an immediate recovery. This means that the availability of gold in the domestic market will come down going by the RBI formula. Gold jewellery exports in the first quarter of the current fiscal climbed down to.`11,847.41 crore from .`29,689.08 crore in the corresponding period of the previous year.
"It will not be an easy task to increase exports overnight. It will take time. But, in the meantime, the life of small unorganised jewellers will become tough as it will be difficult for them to procure gold from the market. There is every possibility that they will have to rely on the grey market," said Pankaj Parekh, vice-chairman, Gem & Jewellery Export Promotion Council (GJEPC).
There is no incentive for exports as the international situation is not favourable. There are issues regarding payments too. "Exporters get finance at higher costs and how would they be globally competitive. Mom-n-pop jewellers and retailers will have to pay a hefty premium for sourcing gold. They will try to source gold through illegal routes," said Haresh Soni, chairman, All India Gem & Jewellery Trade Federation.
The trade is also worried whether jewellers will be able to complete the orders placed by international buyers during the five-day India International Jewellery Show (IIJS) being held from August 8. Though most jewellers are ready with their stocks that will be exhibited at the show, they are still unsure whether gold will be available to complete the subsequent orders.
Source:-economictimes.indiatimes.com
Govt may relax norms for joining New Pension Scheme
NEW DELHI: Pension sector regulator, the Pension Fund Regulatory and Development Authority (PFRDA) on Wednesday said that the government may relax the norms to enable employees of central public sector companies to join the New Pension Scheme (NPS).
"We have taken up this matter with secretary, Department of Public Enterprises, and he has prepared a note which he would be soon taking to the Cabinet," said PFRDA chairman Yogesh Agarwal.
The pension regulator said that a number of central public sector enterprises (CPSEs) have written to PFRDA stating that they are unable to join the NPS because the current guidelines mandate minimum 15 years of service to join the pension scheme.
"Even with the government employees earlier, the instruction was if you do not have 20 years of services, you can't have pension. When the govt notified the guidelines for NPS they did away with the criteria," argued Agarwal.
Government's flagship retirement scheme, New Pension Scheme (NPS) has delivered double digit return for the financial year 2012-13. For this fiscal, the government has announced 8.7% interest for deposits under PPF, while it has approved 8.5% rate of interest for 2012-13 for EPFO subscribers. Agarwal said for NPS Swavalamban there has been an overwhelming demand with a CAGR of 90% in the three years of operation and more than 50% of the eligible subscribers being below the age of 40.
Government likely to relax norms for PSU employees to join NPS
NEW DELHI: The government is considering relaxing norms to enable PSU employees to join the National Pension Scheme and a Cabinet note in this regard is likely to be moved soon, interim pension regulator PFRDA said today.
"We have taken up this matter with the Department of Public Enterprises (DPE) Secretary and he has prepared a note which he would be soon taking to the cabinet," Pension Fund and Regulatory Development Authority (PFRDA) Chairman Yogesh Agarwal said here.
Under the existing guidelines, if an employee of central public sector undertakings (CPSUs) does not have a minimum 15 years of services, he or she cannot join National Pension Scheme (NPS), Agarwal said on the sidelines of a seminar titled " Financial Consumer Protection" here.
"Even with the government employees earlier, the instruction was if you do not have 20 years of services, you can't have pension. When the govt notified the guidelines for NPS they did away with the criteria," he said.
Talking about NPS Swavalamban, he said, it is a financial inclusion product operationalised by PFRDA.
There has been an overwhelming demand for the product launched in 2010, with a CAGR of 90 per cent in the three years of operation, more than 50 per cent of the eligible subscribers being below the age of 40, he said.
The scheme, with 72 per cent of the subscribers being women, has managed to bridge the supply gap in the unorganised sector for a long term defined contribution pension scheme, he added.
Agarwal also said that PFRDA has a strong consumer protection mechanism.
"It is evident from the fact that we receive very few complaints. In order to have real consumer protection, we need to introduce features in the product design itself which could prevent mis-selling," he said.
He further said that improving financial inclusion with adequate consumer protection requires a multi-stakeholder framework of consumer, financial institutions, industry, regulators and government.
Revenue allocated to German HO wasn't taxable in India as India-Germany DTAA allows fee splitting ar
IT/ILT : Where fee split arrangement was fully backed by India Germany DTAA, revenue allocated to German head office could not be taxed in India
No reversal permissible under Cenvat Credit Rule 6 in respect of exempted bagassee
ST: Bagasse/press mud arising as a residue/waste of sugarcane during manufacture of sugar are not manufactured product and rule 6 of CENVAT Credit Rules, 2004 doesn't apply to them, even if they are exempt
Hiring of trucks without an arrangement for its sub-letting is an independent contract and not-sub-c
IT: Where assessee engaged in business of transport and hiring of trucks, made payment for truck hire charges without deducting tax at source, since it was not clear as to whether said payments were for transportation of goods in form of independent contract or it was made to sub-contractors as a part of back to back hiring arrangements, impugned disallowance made under section 40(a)(ia) was to be set aside and, matter was to be remanded back for disposal afresh
If income surrendered treated as business income, it would be available for set off - HC
IT : Where assessee during course of survey conducted under section 133A had surrendered certain amount and in return of income filed claimed set off against this surrendered amount claiming that said amount was his income from business, surrendered amount formed income of assessee from business and it was entitled to get set off against said amount
Government likely to relax norms for PSU employees to join NPS
NEW DELHI: The government is considering relaxing norms to enable PSU employees to join the National Pension Scheme and a Cabinet note in this regard is likely to be moved soon, interim pension regulator PFRDA said today.
"We have taken up this matter with the Department of Public Enterprises (DPE) Secretary and he has prepared a note which he would be soon taking to the cabinet," Pension Fund and Regulatory Development Authority (PFRDA) Chairman Yogesh Agarwal said here.
Under the existing guidelines, if an employee of central public sector undertakings (CPSUs) does not have a minimum 15 years of services, he or she cannot join National Pension Scheme (NPS), Agarwal said on the sidelines of a seminar titled " Financial Consumer Protection" here.
"Even with the government employees earlier, the instruction was if you do not have 20 years of services, you can't have pension. When the govt notified the guidelines for NPS they did away with the criteria," he said.
Talking about NPS Swavalamban, he said, it is a financial inclusion product operationalised by PFRDA.
There has been an overwhelming demand for the product launched in 2010, with a CAGR of 90 per cent in the three years of operation, more than 50 per cent of the eligible subscribers being below the age of 40, he said.
The scheme, with 72 per cent of the subscribers being women, has managed to bridge the supply gap in the unorganised sector for a long term defined contribution pension scheme, he added.
Agarwal also said that PFRDA has a strong consumer protection mechanism.
"It is evident from the fact that we receive very few complaints. In order to have real consumer protection, we need to introduce features in the product design itself which could prevent mis-selling," he said.
He further said that improving financial inclusion with adequate consumer protection requires a multi-stakeholder framework of consumer, financial institutions, industry, regulators and government.
Depreciation allowed on motor cars used by assessee outside India for its business purposes
IT: Where intention of assessee was not to provide 'guest house' accommodation for those who visited project site on 'tour' or 'visit' but to execute a project in foreign country, expenses incurred on maintenance of accommodation to its employees were allowable
Adjudicating authority’s direction to recipient to pay ST without notice stayed by HC
ST : Where adjudicating authority directed service recipient to pay service tax (with interest and penalty) to service provider without issuing a notice to service recipient, such direction was liable to be stayed
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