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« From the Courts »
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 Inordinate delay in income tax appeal hearings
 Income Tax leviable on Tuition Fee in the Year of Rendering of Services: ITAT
 Supreme Court invoked its power under Article 142 of Constitution to validate notices issued under section 148 as notices issued under section 148A. However the same shall be subject to amended provisions of section 149.
 ITAT refuses to stay tax demand on former owner of Raw Pressery brand
 Bombay HC sets aside rejection of refund claims by GST authorities
 [Income Tax Act] Faceless Assessment Scheme does not take away right to personal hearing: Delhi High Court
 Rajasthan High Court directs GST Authority to Unblock Input Tax Credit availed in Electronic Credit Ledger
 Sebi-taxman fight over service tax dues reaches Supreme Court
 Delhi High Court Seeks Status Report from Centre for Appointments of Chairperson & Members in Adjudicating Authority Under PMLA
 Delhi High Court allows Income Tax Exemption to Charitable Society running Printing Press and uses Profit so generated for Charitable Purposes
 ITAT accepts Lease Income as Business Income as Business Investments were mostly in nature of Properties

CCEA to take up new fert policy, kharif crop MSP today
June, 12th 2008

 Aimed at attracting private players in the fertiliser sector, the new fertiliser policy is expected to be taken up for consideration by the Cabinet Committee on Economic Affairs (CCEA) when it meets on Thursday. The minimum support price (MSP) for this years kharif crop would also come up for clearance at the CCEA meeting.

The government might announce an increase in the MSP of rice and other kharif crops. The Commission for Agriculture Costs and Prices (CACP) has already recommended a hike in the MSP to Rs 10,000 per tonne for general paddy, from Rs 7,450 per tonne in the last Kharif season.

The MSP for grade A paddy is proposed to be hiked to Rs 10,050 per tonne, up from the current Rs 7, 250. The current MSPs of both rice grades include Rs 1,000 per tonne bonus, announced in October. In India, sowing for kharif crops start in June and July and harvesting starts from September onwards.

The new fertiliser policy is expected to dole out a package of fiscal incentives for new investors, including concessions in excise, customs duties and income tax holiday. Interestingly, it is also proposed to introduce a reverse bidding process for new fertiliser plants, similar to the process used by the Centre for the bidding of the ultra mega power plants.

Under the proposed policy, the fertiliser price will be benchmarked with international price but it could be five per cent less than international price when the cost of domestic fertilisers is calculated. Domestic Companies will be allowed to participate in global tenders if they can provide supply guarantee on agreed terms. This would rationalise the fertiliser subsidy and introduce an element of certainty.

However, industry experts are of the view that a better way to encourage the private sector would be introduction of a more remunerative pricing policy rather than a slew of tax incentives that more or less already exist.

"As long as the government controls the maximum retail price (MRP) of urea and set limit for the subsidy bill, it will have little chance of attracting fresh investments in this crucial sector whose robustness would decisively impact the country's farm output," a Fertiliser Association of India (FAI) official said.

As per estimates, about 2 million tonnes of fertiliser can be produced domestically solely through de-bottlenecking that would help reduce the import bill. Over the last three  years, Iffco has added 5.25 lakh tonnes of production capacity by de-bottlenecking, at only 25 per cent of the capital cost required to set up a new plant.

The huge subsidy bill pegged at Rs 95,000 crore, mainly due to costly imports, has stopped giving satisfactory returns in terms of agricultural productivity. Rock phosphate that was sold at $ 60 per tonne until recently costs $ 250 a ton now....

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