Exchange Rate for imported goods is Rs 74.03 Per Pound Sterling and Rs 51.22 Per Yen-Exchange Rate for export is Rs 72.45 Per Pound Sterling and Rs 49.94 Per Yen-Customs Non-Tariff Notification No.128      Sensex slips further and closes at 8773   100 per cent EOUs allowed to export non-basmati rice-DGFT Notification No.59      Customs duty of 5 per cent imposed on import of Pig Iron, spiegeleisen, semi-finished products, flat products & long products    Import of Crude Soyabean Oil subjected to 20 per cent customs duty- no change in import duty on refined soyabean oil-Customs Tariff Notification No.122    Time-limit for filing refund of service tax extended to 6 months-Service Tax Notification No.32   Rahul Bajaj asks Industry to prepare for the worst     Tariff Value for import of Brass Scrap is 3525 and for poppy seeds 5206-Customs Non-Tariff Notification No. 127     CBEC clarifies the entire amount of duty paid by the manufacturer, as shown in the invoice would be available as credit irrespective of the fact that subsequent to clearance of the goods, the price is reduced by way of discount or otherwise-Central Excise Circular No.877      Mandavariya (Kishangarh), District Ajmer notified for Unloading of imported goods and loading of export goods-Customs Non-Tariff Notification No.117    SC Ruling-the entitlement of benefit in terms of Section 32AB, Section 80HH and Section 80I of the Income Tax Act- conversion of Jumbo rolls of photographic films into small flats and rolls in the desired sizes amounted to manufacture/production-AIT-2008-413-SC   SC Ruling-Whether any "gift" arose in terms of Section 2(xii) of the Gift-tax Act, 1958 on the allotment of rights issue by the appellant company to its shareholders vide Board's Resolution- Whether there was any element of "gift" as defined under Section 2(xii) in the appellant issuing Bonus shares in the ratio of 1:23-AIT-2008-412-SC    DEPB benefit allowed on export of cement and steel-DGFT PN 108   exports of cement in all types and forms and primary steel products eligible for export incentives under Focus Market Scheme-DGFT Notification No.58     Import of Marble Tiles-DGFT Notification No.57    Clarification on setting up Duty Free Shops approved by FIPB-Customs Circular No.19       HC Ruling-Income Tax-"reserves" arising out of the acquisition of the business of Tata Cellular Limited could never have the character of "income" in the hands of the petitioners-pre-requisite condition contained in proviso to section 147 to enable the re-assessment to be opened after period of 4 years have elapsed have not been met-AIT-2008-410-HC    HC Ruling-Central Excise- valuation of the goods for the purpose of excise duty and whether excise duty was chargeable under Section 4 or Section 4A of the Central Excise Act 1944-while construing rule 3, who are excluded are only the institutional or industrial consumers as explained in Rule 2A and the industrial or institutional consumers in terms of the proviso to rule 2(p) for the purpose of chapter-II are the same-If the person who purchase the prepacked commodity not directly from the manufacturer or packers, they are consumers and the declaration will be of no effect-AIT-2008-408-HC   Government considering imposition of import duty on steel      Bad News for Consulting Engineers- whether turnkey contract can be vivisected?- The conclusion in Daelim case on the point, prima facie, being not in accordance with law, matter goes to Larger Bench-AIT-2008-405-CESTAT  Larger Bench of CESTAT rules Credit is admissible on an input service relating to the business-AIT-2008-407-CESTAT   credit of the service tax paid on the outdoor catering (canteen) service is admissible as input service under Rule 2(l) of the Cenvat Credit Rules, 2004-AIT-2008-406-CESTAT   The payment for use of "services for MTNL/other companies via the interconnect/port/access/toll by the assessee would not fall within the purview of payments as provided for under section 194J of the Act, so as to be eligible for tax deduction at source-The interconnect charges/port access charges cannot be regarded as fees for technical services-AIT-2008-404-HC   Computation of Value under Section 14 for Levy of Export Duty - Customs Circular No. 18          Advance Ruling- Whether the service fee paid by the applicant to Intertek Testing Management Limited UK under Global Management Service Agreement is taxable as "Royalties & Fee for Technical Services" as per the provisions of Article 13 of DTAA between India & UK? Whether the applicant is required to deduct tax at source on the service fee paid to Intertek Testing Management Limited, UK, at the rate of 10% plus applicable surcharge and cess as per the provisions of section 115A(1)(b)(BB) of the Income-tax Act-AIT-2008-401-AAR   Larger Bench of SC Ruling-whether the revenue can be precluded from filing an appeal even though in respect of some other years involving identical dispute no appeal is filed -AIT-2008-403-SC     SC Ruling-whether transfer of Banking Undertaking gave rise to taxable capital gains under Section 45 of the 1961 Act-it was not possible to compute capital gains and, therefore, the said amount of Rs. 10.20 cr. was not taxable under Section 45 of Income Tax Act-AIT-2008-400-SC   Export duty of 8 per cent notified in place of earlier rate of Rs. 200 per tonne on export of iron ore fines-Customs Tariff Notification No.121    Pan Masala Packing Machines (Capacity Determination And Collection of Duty) Second Amendment Rules, 2008-Central Excise Non-Tariff Notification No.45   SC rules Ethylene and propylene manufactured by the assessee and used in its factory in the further manufacture of the same goods would be entitled to the benefit of exemption contained in notification no.217/86-AIT-2008-398-SC  New DEPB Rates on export of all products notified–DGFT PN 102  service tax paid under Section 66A is available as 'input credit' under Cenvat Credit Rules, 2004 provided the said services are used as input services by the manufacturer or producer of final products or a provider of output taxable service-Service Tax Trade Notice No.43/2008  Anti-dumping duty imposed on import of cable ties from China & Taiwan-Customs Tariff Notification No.118   Definitive Anti-dumping duty imposed on import of Phenol from Singapore, South Africa & European Union-Customs Tariff Notification No.114  High-tech products entitled to benefits under High-Tech Products Export Promotion Scheme –DGFT PN 101   
 
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Apprehension against SEZ to be addressed: Economic Survey 2006-07

AIT News Network

NEW DELHI. According to the Economic Survey 2006-07, the debate about the SEZs illustrates the kind of considerations that have to be taken into account in the formulation of policies.  Some of the apprehensions against the SEZs are:

·        generation of little new activity as there may be relocation of industries to take advantage of tax concessions,

·        revenue loss,

·        large-scale land acquisition by the developers which may lead to displacement of farmers with meager compensation,

  • acquisition of prime agricultural land having serious implications for food security,

  • misuse of land by the developers for real estate and

  • uneven growth aggravating regional inequalities.

The Survey highlights that SEZs have been established in many countries as testing grounds for implementation of liberal market economy principles.  They are viewed as instruments to enhance the acceptability and credibility of transformation process, to attract domestic and foreign investment, and generally, for the opening up of the economy.  With its genesis in the Export Processing Zones (EPZ), the SEZs in India seek to promote value addition component in exports, generate employment and mobilize foreign exchange.  EPZs and SEZs were employed with considerable success by China and other ASEAN countries in the 1970s and 1980s to create regional islands, where export oriented manufacturing could be undertaken.  While EPZs in some countries had their share of early difficulties, they provided scope for cultivating manufacturing competitiveness when licensing, labour rigidities and high import duties and taxes acted as a disincentive for investment in the rest of the areas.  However, in India, the EPZ experiment was much less of an unequivocal success; and since 1965, when the first EPZ in Kandla was set up, a total of 11 such zones have come to existence.  The Exim Policy of 1997-2002 then introduced the more comprehensive and liberal SEZ concept, after which a Bill was drafted and passed by the Parliament in the form of SEZ Act, 2005. 

            Year-on-Year, the industrial growth of 10.6 percent in the first nine months of 2006-07 was the highest recorded since 1995-96.  In seven of the eight months of the current year, the Year-on-Year  growth of the manufacturing sector was in the double digits. 

           The growth of industrial sector touched 10.0 percent in 2006-07.According to the Survey, the industrial growth would have been even higher, had it not been for a relatively disappointing performance of the two sub sectors, namely, mining and quarrying; and electricity, gas and water supply.

The continuing broad based growth in the  services sector,  especially  the three sub-sectors of services, trade, hotels, transport and communication services, has continued to boost the sector by growing at double digit rates for the fourth successive year.   Impressive progress in Information Technology (IT) enabled services has also given a boost to the sector.

The expected overall annual growth of industry ,the Eleventh Plan (2007-2012) target of 10 percent annual industrial growth appears  achievable.  As the country enters into the first year of the Eleventh Plan, the sustained growth of the industrial sector is crucially dependent on removing the infrastructural impediments, especially, in the power sector.

The investment scenario looks quite optimistic , particularly with rising domestic savings rates and FDI inflows.  Sustained economic growth, fiscal consolidation and an enabling policy environment will continue to provide incentive to capacity addition in industry and sustaining its high growth according to survey.

The Survey feels that the paramount need is for making rapid strides in living standards, health, education, general justice, welfare and the development of scheduled castes, scheduled tribes and other backward classes.

The Survey pointed out that the Central Government expenditure on social services including rural development has gone up consistently over the years, increasing to Rs. 87,607 crore in 2006-07 (BE).

                           ( Click here for full Economic Survey 2006-2007 )




 

 

 

  

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