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M/s Kailash Jewels Pvt. Ltd. Versus ITO Ward-14 (1) , New Delhi

Validity of transfer pricing adjustment - whether income of the assessee holding that the assessee’s calculation of 4.84% of (profit before tax)/total cost is window dressed? - AO/DRP international transaction entered into by the assessee for the purpose of ‘job work’ to be ‘purchase’ and ‘sale’ - Held that:- In substance, the assessee is not the owner of the gold imported and jewellery exported and is not entitled to any profit on the gold content. The assessee does not have any right to dispos .....

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cost of gold in the cost base of the assessee, while computing the arm’s length price of the international transaction. Lastly, the assessee also does not separately invoice the jewellery items exported to AE. Thus we are of the view that the assessee is a job worker and not a manufacturer and the Ld. TPO and DRP erred in including the cost of gold into the operating cost of the assesse - Decided in favour of assesse.

Most Appropriate Method (MAM) for calculating the arm’s length pri .....

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factors which are not relevant to the determination of prices at which international transactions are entered into by the associated enterprises. It would thus follow that in a situation in which the assessee has followed one of the standard methods of determining ALP, such a method cannot be discarded in preference over transactional profit methods unless the revenue authorities are able to demonstrate the fallacies in application of standard methods. - Decided in favour of assesse.

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he operating base of the company as the companies are in retail segment. The comparison by the Ld. TPO to one Manohar Lal Saraf Jewellers who is charging 8% making charges cannot be applied to the case of the assessee for the aforesaid reasons. Thus in view of our findings above we delete the first addition of ₹ 9,50,31,469/- made on account of applicability of MAM. - Decided in favour of assesse.

Addition is with respect to the charges of facility, freight and insurance made by .....

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therefore income cannot be deemed under the transfer pricing provisions under Chapter X of the Act as held by Hon’ble Bombay High Court in Vodafone Vs. UOI [2014 (10) TMI 278 - BOMBAY HIGH COURT]. We thus delete the second addition of ₹ 176,66,900/- on account of provision of facility, freight and insurance. - Decided in favour of assesse. - I.T.A .No.-101/Del/2015 - Dated:- 18-5-2015 - SHRI I. C. SUDHIR AND SHRI B. C. MEENA, JJ. For the Appellant : Sh. Mayank Jain, Sh. Madhur Jain, & .....

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any exclusively for its AE and no consideration has been passed by it s AE except for the making charges. It is further relevant to note that once the AO has accepted that the assessee is doing the job work for its AE, he cannot treat the same to be sale. 3. That the Ld. AO failed to consider the copy of account of the assessee in the books of the AE was duly furnished, which clearly shows that he AE does not debit the assessee company for the value of gold sent by it for processing. It only rec .....

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ted. The Ld. AO failed to appreciate the business model of the assessee and despite producing the details of insurance policies, freight expenses etc., the same were completely ignored for no reason whatsoever. 6. The Ld. AO failed to consider that the gold sent by AE cannot be insured in Dubai on account of applicable Insurance Laws. Even if a company in India sends goods to its overseas branch, the same cannot be insured in India. Accordingly the assessee has taken a transit policy and a stock .....

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tudy and thereby making a transfer pricing adjustment to ₹ 11,26,98,369/- to the income of the appellant by holding that assessee s calculation of 4.84% of (profit before Tax)/total cost is window dressed and further the assessee company is not being compensated by its AE for the risk for carrying gold bars/gold jewellery from one country to another. 9. That the Ld. DRP/AO erred in rejecting cost plus method adopted by the assessee, and has wrongly applied the Transaction net Margin Method .....

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distinguishable FAR analysis, whose detailed justification have been submitted by the appellant during the course of the proceedings. 11. The Ld. AO erred in calculating the operating revenue at 108% of operating costs by incorrectly including cost of gold received on FOC basis from AE in operating cost. 12. That in Ld. DRP/AO while calculating the arm s length of the international transaction completely disregarded the nature of business of the assessee which is of that a contract manufacturer .....

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laring any transaction to be sham. 15. That the Ld. AO failed to consider that making charges are not linked to the value of gold. Had this been so, the making charges would have been reduced in the case of depreciation of gold and vice versa. 16. That the Ld. AO failed to appreciate the settled law that entries in books of account alone are not conclusive in determining the nature of income CIT vs. Gopal Purohit 336 ITR 287 (Bom.). 17. That the assessee has not given any advance of LC or bank g .....

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sider the arguments advanced by the parties, and have gone through the orders of the authorities below, material available on record and the decisions relied upon. 3. The relevant facts in brief are that the assessee company is engaged in the business of manufacturing and trading of Gold & Silver Jewellery etc. During the year the assessee company entered into international transaction with Associate Enterprises (in short AE ) M/s AL-MOWAI-JI Jewellers LLC of Dubai (UAE) amounting to ₹ .....

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to show cause as to why and upward adjustment of ₹ 11,26,98,369/- to the income of the assessee should not be made being be difference in Arm s Length Price as determined by the TPO. The assessee responded the said show cause notice with detailed reply to which the TPO did not agree on several aspects. The assessee was thereafter served with the draft assessment order against which the assessee raised objections before the ld. DRP. The ld. DRP after considering the facts and jurisdictiona .....

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treated the international transaction of job work entered into by the assessee to be purchase and sale and while calculating arms length price has added the cost of gold into the cost base, ignoring the fact that no consideration has been passed by the assessee to the AE, except for making charges. 5.1. The learned AR submitted further that, a. The value of gold imported and exported is only a pass through cost and cannot be a part of the cost base of the assessee. The assessee is only entitled .....

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the custom authorities. c) Furthermore, no custom duty is required to be paid either by the assessee. d) As no consideration is passed for the value of gold and the same being a pass through cost only, the foreign exchange fluctuation bears no financial impact on the assessee. e) The foreign exchange fluctuation for the making charges received by the assessee from its AE are accounted for in the profit and loss account. 4.2. The learned AR submitted that only notional/memorandum entries are reco .....

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1 (SC) (Para 3, 4, 10) 4.3. The learned AR submitted further that the assessee does not separately invoice the jewellery items exported to AE i.e. assessee does not charge the AE for specific designs. 4.4. The learned AR pointed out that the assessee does not have any right to dispose of the gold. The AE remains the owner of the gold sent to the assessee. It is settled law that a property cannot have two owners. He placed reliance on the following decisions: R.B. Jodha Mal Kuthiala Vs. Commissi .....

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o the value of the gold, had this been the situation the making charges would have reduced in case of depreciation of gold value. Furthermore, detailed designs of jewellery were also submitted before the Ld. TPO/DRP. 4.8. The learned AR contended that the Ld. TPO has arbitrarily applied the TNMM method. CUP being a direct method should have been preferred over TNMM. The Assessee applied CUP method: a. By comparing the making charges charged by Non-related parties to Almowaiji. b. By comparing th .....

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ting the CUP method of the assessee merely on the basis that some of companies are located in different geographical locations. 4.10. The learned AR submitted that the comparables given by the Ld. TPO are wholly inapplicable in the present case for the principal reason that the comparables given by the Ld. TPO are of retails companies who sell directly to the consumer. On the other hand, the assessee is only a job worker and the business model of the assessee being B2B (Business to Business) can .....

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sessee has given detailed reasons (at page 32 of Vol-II) as to why the comparable chosen by the Ld. TPO are not applicable to the case of the assessee. It is pertinent to mention here that the assessee is earning a return on capital employed @ 51.16%. After the impugned adjustment, the return on investment comes to 7087%, which is inconceivable. 4.11. The learned AR argued that the second addition is of ₹ 1,76,66,900/- with respect to the risk of carriage of gold, which is total value of g .....

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ever come within the ambit of income under Section 4 of the Act and therefore of income cannot be deemed under Chapter X of the Act. He cited decision in the case of Vodafone Vs. UOI, W.P. 871/2014 (Para 38) in support. 4.14 The learned AR submitted that the assessee being a job worker is entitled to exemption under Section 10A of the Income Tax Act, 1961. Reliance is placed on the judgment rendered by the Hon ble Delhi High Court in CIT Vs. Lovlesh Jain, ITA No. 1223/2011 (Para 2, 5, 6, 6.2, 6. .....

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tention of the Ld.DR is that the assessee is engaged in business of jewellery manufacturing and is not merely a job worker. He pointed out that in Central Excise, there is a concept of Manufacture of goods by a job worker . The job worker also being a manufactures is liable to pay Central Excise duty, unless exempted. The value for payment of duty would be the cost of raw material plus the job work charges. A new Rule 10A has been inserted in the Central Excise Valuation (Determination of the pr .....

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rom AE to the assessee only mention the name of the item. It does not mention how many of these items are to be prepared, what should be the size of items, what is the design pattern, what should be the purity, what should be the weight that implies that everything is left at the discretion of the assessee. 5.3 The Ld DR argued that no evidence has been submitted with regard to the business model followed by the Dubai based AE. 5.4 He contended that the entries passed through the books of accoun .....

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ix Weight Sets. 2. Kashti Rings with Sheesha 3. Kantge & Bracelets 4. Guluband Sets 5. Chain Sets, 6. Kursi Sets 7. Jhumki & Tops The total order is for 15 Kilo of pure gold of 99.50% fineness. 5.6 The Ld. DR Further submitted that nothing is mentioned about quantity of different items, designs to be followed ( Indian, traditional, modern etc.) and it is also silent with regards to use of various other precious/ semi precious stones like addition of diamonds, nag, mina etc. In the absenc .....

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any has made an attempt to apply CUP method for the justification and benchmarking of international transactions. The Ld. DR contended that CUP method is not applicable in the case of the assessee as a) The taxpayer himself states that making charges are different from design to design and also differs region to region, so on what basis, the Assessee Company has adopted the application of CUP method, where jewellery purchased by AE form non-related parties located at different countries have bee .....

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r the purpose of benchmarking analysis. It was argued by the Ld. DR that in transfer pricing, particularly when a profit based method like TNMM is applied, it is always desirable to have a broader set of comparables. Broader set of comparables becomes all the more necessary when the arm s length price is to be determined by adopting arithmetical mean. The comparables selected by the Ld. TPO for applying the TNMM method after making relevant adjustments are as under: S.No. Company Name Net Profit .....

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at the cost base adopted by the assessee was very narrow and it did not include the cost of gold into the cost base. He argued that since the assessee is a manufacturer, the cost of raw material ought to have been included in the operating cost. The Ld DR relied upon the computation done by the Ld. TPO of the arm s length price of the international transactions entered into by the assessee which worked out as under:- Particulars Amt in Rs. Operating Cost (A) 8787,58,047 Arm s Length Revenue 9567 .....

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ne by the Ld. TPO as under: Total grams of gold (bars/jewellery) carried away 11,40,638 grams Assuming Risk factor of 1% 11,406 grams Average Price at which Gold is imported from AE ₹ 1,581/- per gram Financial Risk to be compensated by AE to Assessee Company ₹ 18033485/- Receipt shown by assessee on this account ₹ 366585/- Adjustment proposed for Risk ₹ 176,66,900/- 6. We find that the issues raised in the grounds revolves around the validity of transfer pricing adjustme .....

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- by the Department. 2. M/s. Almowaiji Jewellers LLC (AE) sends a list of plain jewellery items required by them to the assessee containing the purity of gold and weight of items. - Based on the above order, Almowaiji send pure gold bars of .999 or .995 fineness on FOC (free of cost) basis. Since the gold has to leave the country of origin and enter port of destination, an invoice is made containing the quantity, fineness and USD value of Gold bars along with other description of shipment etc. T .....

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unit of the assessee is situated in NSEZ, the assessee is not required to discharge any duty with regard to the same. The BOE also clearly states that the goods are on FOC (Free of Cost) basis. It is further relevant to note that no customs duty on the gold imported is to be paid by the assessee, which is evident from the documents placed on record. - As per the terms of understanding between the assessee company and Almowaiji: - (a) The assessee is required to convert the gold received from Al .....

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lent to $ value of gold imported FOC. (c) Permissible wastage for .875 fineness jewellery is about .57% and for 0.917 fineness is about .327% of the net weight of jewellery exported as mentioned in the invoice raised by the assessee. (d) The assessee is allowed $0.65 per net weight of jewellery (irrespective of fineness) as mentioned in the invoice raised as making charges. Additionally, the assessee shall also separately bill for freight and insurance charges @ approximately $350 per consignmen .....

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mpany and paid to the AE. The assessee is only reimbursed by its AE of the freight and insurance charges at the fixed rate of $350 per consignment. In the year under consideration, the assessee had actually incurred ₹ 2,66,722 as freight and insurance charges and received ₹ 3,66,585 (@ $350 per consignment) from its AE. The assessee had already placed on record three insurance policies: i. Import policy of ₹ 20 crores for gold imported from Dubai Airport to Delhi Airport. (Pg.8 .....

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for any loss of such gold, it s obligation to convert the same into specified jewellery and resend to Almowaiji, and lastly internal controls, the assessee company books the same as purchase at a conversion rate mentioned in the BOE and credits Almowaiji. Conversely, at the time of sending the jewellery back to Almowaiji, the assessee company raises an export invoice and the same is recorded in INR at the conversion rate mentioned on the shipping bill and debits Almowaiji. (h) Inward remittance .....

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shall deal with the nature of work carried out by the assessee and decide as to whether the assessee is a job worker or a manufacturer . It is an admitted fact that the assessee imports pure gold bars of .999 of .995 fineness on FOC (free of cost) basis from its AE. The same is evident from the bill of entry, custom document, import invoice of the assessee company in the relevant assessment year. The assessee is required to convert the gold received from AE into Jewellery (as per specification .....

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he order sheet is received, it is mutually discussed on phone with AE and design, weight and quantity of items is decided and a paper is prepared. The copies of order sheets and designs are part of record and are relied upon by the assessee to fortify its submission. 6.3 Additionally, the assessee also separately bills for freight and insurance charges @ $350 per consignment. The jewellery as per the specifications is sent back to its AE in Dubai. The export invoice contains the BOE No. against .....

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me is evident from the copies of invoices annexed to the TP report filed by the assessee. Just because the assessee passes memorandum entries/notional entries in its books of account, it cannot be said that the international transaction entered into by the assessee is of purchase and sale . It is apposite to refer to the judgment rendered by the Hon ble Bombay High Court in CIT Vs. Gopal Purohit, 336 ITR 287 (Bom) wherein the Hon ble Court held that the substance of the transaction has to be see .....

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is accordingly dismissed. The aforesaid proposition of law further finds force from the judgment rendered by the Hon ble Supreme Court in Kedarnath Jute Manufacturing, 82 ITR 363 (SC) and Sutlej Cotton Mills Ltd, 116 ITR 1 (SC). 6.5 It is difficult to conceive how a transaction is said to be having the character of purchase and sale when the cost of raw material is not passed between the parties. Even the AE does not pass any financial entry in its books of account while carrying out aforesaid t .....

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t the time of import of gold and export of jewellery. Also, it can be seen from the custom documents, no custom duty is required to be paid by the assessee or by its AE for the value of gold imported and jewellery exported. 6.6 In substance, the assessee is not the owner of the gold imported and jewellery exported and is not entitled to any profit on the gold content. The assessee does not have any right to dispose of the gold and the AE remains the owner of the gold sent. The gold sent cannot h .....

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erty. A property cannot be owned by two persons, each one having independent and exclusive right over it. Hence, for the purpose of s. 9, the owner must be that person who can exercise the rights of the owner, not on behalf of the owner but in his own right. 6.7 Even as per Sales of Goods Act,1930 the transactions entered into by the assessee with its AE cannot be termed as sale . Section 4 (1) of the Sales of Goods Act is extracted herein below: A contract of sale of goods is a contract whereby .....

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her hand had rebutted the contention made by the Ld. DR and relied upon the judgment rendered by the Hon ble jurisdictional High Court in the case of CIT Vs. Lovlesh Jain ITA No. 1223/2011. We are in agreement with submission made by the assessee that section 10A exemption can be given to a job worker. It is relevant to extract the following portions of the aforesaid judgment relied upon by the assessee. 2. The contention of the Revenue in these appeals is that the respondent assessee is not ent .....

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ved by an undertaking from export of articles/things. (ii) The assessee is not an undertaking engaged in manufacture or production of articles or things. Conversion of standard gold into ornaments is not manufacture or production of articles or things. The assessee did not manufacture or produce articles/things. 5. This appeal pertains to the Assessment Year 2007- 08. 5.2 The facts as recorded by the Assessing Officer in the case of Lovlesh Jain are that the assessee had received gold supplied b .....

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ery and was not an exporter as he was paid making charges for the job work/services for making ornaments as per specification of third parties. Accordingly, it was held that the assessee was not entitled to deduction under Section 10A of the Act. 5.3 The CIT (Appeals) decided the issue in favour of the assessee. He held that the assessee was engaged in the activity of production of jewellery, which is covered by Section 10A and the Assessing Officer had not examined the said aspect and had only .....

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-03. The assessee‟s unit for making gold jewellery is located in NSEZ area, Noida. In the assessment year 2002-03, the assessee had received standard gold from M/s Onrich Jeweller (LLC), Deira, Dubai, UAE and after manufacturing the jewellery, it was exported to M/s Onrich at Dubai and to a third person at London on instructions from M/s Onrich, Dubai. The gold imported into India was of 0.995 purity and was required to be converted into jewellery of 22/21 carats. On another occasion gold .....

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harges. 6.3 The CIT (Appeals) held that the conversion of raw gold or gold bars into jewellery amounts to manufacture. He also held that whether or not assessee‟s activity was manufacture or not, was independent of the question of ownership of the gold. He relied upon decisions of the Gujarat High Court in CIT versus J.B. Kharwar& Sons,[1987] 163 ITR 394 and the Madras High Court in Taj Fire Works Industries, [2007] 288 ITR 92. 8. Section 10A/10B of the Act stipulates that an assessee .....

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ty level of 22 carats or lower. Purity is reduced by mixing other metals like silver, copper, etc. This is necessary to give strength and durability to the ornaments as gold with 0.999/0.995 purity is very soft and tends to bend or break easily. The contention of the Revenue is that conversion of standard gold into ornaments does not amount to manufacture or production of articles or things as the primary material is the same, i.e. gold, and no new product with different chemical composition or .....

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shed product which has a new, separate entity but this does not necessarily mean that the material by which the commodity is manufactured must lose its identity. The latter connotation has been accepted and applied with some moderation/clarification in several decisions, keeping in view the context in which the word manufacture has been used. The Supreme Court in Graphic Company India Limited versus Collector of Customs, (2001) 1 SCC 549 and Union of India versus Delhi Cloth and General Mills Co .....

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hich it is otherwise not fit, the change/process falls within the meaning of the word manufacture . 6.9 In the present case, the value of gold imported and exported is only a pass through cost and cannot be part of the operating cost of the assessee. The Ld. TPO and DRP erred in including the cost of gold in the cost base of the assessee, while computing the arm s length price of the international transaction. It is relevant to refer to the judgment rendered by this Tribunal in DCIT Circle 3(1), .....

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s. It is not in dispute that the assessee is engaged in undertaking advertising services for its customers/associate enterprises in the capacity of an agent. As part of its business operation, the assessee facilitates placement of advertisement for its associate enterprise in the print/electronic etc. media and for that purpose, the assessee is required to make payment to third parties for rendering of advertisement space on behalf of its customers or associated enterprises. It is, thus, clear t .....

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of ultimate customers and beneficiary of advertisement. We have gone through the invoices and purchase orders from third party vendors and find that they contain customers name, and all the terms of advertisement are finalized after taking the approval from the customers. The assessee simply acts as an intermediary between the ultimate customer and the third party vendor in order to facilitate placement of the advertisement. The payment made by the assessee to vendors is recovered from the respe .....

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associate enterprises is acting only as an agent or intermediary in the provision of service, it is important in applying the cost plus method that the return or mark-up is appropriate for the performance of an agency function rather than for the performance of the services themselves, and, in such a case, it may be not appropriate to determine arm s length price as a mark-up on the cost of services but rather on the cost of agency function itself, or alternatively, depending on the type of com .....

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us we are of the view that the assessee is a job worker and not a manufacturer and the Ld. TPO and DRP erred in including the cost of gold into the operating cost of the assessee. 6.11 The next issue which is to be decided as to which is the Most Appropriate Method (MAM) for calculating the arm s length price of the international transaction entered into by the assessee. The assessee has relied upon CPM and CUP method to benchmark its international transactions. However, during the course of arg .....

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no/Date Total Net Weight LABOUR CHARGES CLAIMED Labour Charges in $ per gm of Net Weight USD/INR, based on BOB value of exports Mizan & Co, Delhi New Kailash Jewellery House, New Delhi 30.05.2009 1040.03 20801 0.42 47.29 Mizan & Co, Delhi New Kailash Jewellery House, New Delhi 17.09.2009 1302 19530 0.31 48.35 Mizan & Co, Delhi New Kailash Jewellery House, New Delhi 20.09.2009 2357 58930 0.52 48.35 Mizan & Co, Delhi New Kailash Jewellery House, New Delhi 21.10.2009 685.745 6857 0. .....

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e Address Invoice no/Date Total Net Weight LABOUR CHARGES CLAIMED Labour Charges in $ per gm of Net Weight Unigold International Pte.Ltd. No.2 Little Road, Singapore 536981 DUB 020286 1014.7 609 0.60 Unigold International Pte.Ltd. No.2 Little Road, Singapore 536981 DUB 020287 5390 3511 0.65 Moro Moda Jewellery Limited Room No.1202,Capitol Centre,5-19,Jardine's Bazar,Causeway bay,Hongkong A0215/09 1495 822 0.55 Edge Well SDN. BHD 6, Lorong Perusahaan Maju 10, Taman Perusahaan Pelangi, 13600 P .....

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90833A) Plot 15, Bayan Lepas Industrial Estate, Phase- IV, 1190 Bayan Lepas, Penang Inv No. 0146 Dt. 18/6/2010 678.900 187.37 0.28 CHL Jewelleries Marketing SDN BHD (524321-W) 11A & 15, Jalan Industri Beringin, Taman Perindustrian Beringin, Juru, 11100 Buklt Mertajam, Penang Inv No. 004451 Dt. 24/4/2010 1104.040 533.92 0.48 AHY Jewellery SDN BHD 101-06-09 to 101-06-11, Meena Perdana, Jalan Gurdwara, 10300 Penang, Malaysia Inv No. 2106 Dt. 27/3/2010 1326.730 499.74 0.38 Zenmax SDN BHD (190833 .....

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ularly drawn to the invoice of Meenakshi International, a company based in Delhi who is engaged in doing job work in similar business conditions with the Ramadan Jewellery LLC, a company based in Dubai. It can be seen from the invoices referred above that the labour charges charged by Meenakshi International is in the range of $ 0.05-0.63 per gram of gold. Further, it can be seen from the invoices placed on record of Mizan & Co., Delhi to New Kailash Jewellery House, Delhi that the labour ch .....

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ly applied CUP method to benchmark its transaction, TNMM being an indirect method cannot be applied in the case of the assessee. TNMM method can only be applied when direct and traditional methods are incapable of determining the arm s length price of the transaction. TNMM method is a profit based method which might result in possibility of vitiation of results by number of factors which are not relevant to the determination of prices at which international transactions are entered into by the a .....

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business who sell directly to the consumer. On the other hand, the assessee is engaged in a business to business model whose profitability cannot be compared to companies which are in business to customer model. Moreover, the profitability of the comparables relied upon by the Ld. TPO is calculated after including the cost of gold into the operating base of the company as the companies are in retail segment. The comparison by the Ld. TPO to one Manohar Lal Saraf Jewellers who is charging 8% maki .....

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Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force

Notification: Companies (Restriction on number of layers) Rules, 2017

Highlight: Penalty u/s 271(1)(c) - additional income disclosure - surrender of income post survey u/s 133A - he disclosure made by the assessee is voluntary in nature, in the revised return - no penalty

Highlight: Reopening of assessment - notice u/s 148 issued on the directions of JCIT / CIT - a perusal of reasons for initiating reassessment proceedings clearly show that they are against the sprit of provisions u/s 147

Notification: All Industry Rates of Duty Drawback Schedule

Highlight: MAT - Adjustment to book profit - computation u/clause (f) of Explanation-1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A r.w.Rule 8D of I.T. Rules.

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Highlight: Addition on account of alleged suppression of service value received - the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-UTT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017- UTT(R) to reduce CGST rate on specified supplies of Works Contract Services

Highlight: Liability to pay duty on import of software - Though no authorization was given by the appellant to DHL, it is an undisputed position that the software has, in fact, been ordered by the appellant and have been delivered to them by DHL - the appellant is to be considered as the importer

Notification: Exempts inter-state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 09/2017-IT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 08/2017-IT(R) to reduce CGST rate on specified supplies of Works Contract Services

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-CT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017-CT(R) to reduce CGST rate on specified supplies of Works Contract Services.

News: Tax on fuel more important for a dry state like Gujarat

Highlight: For an ayurvedic medicine to be classified under Chapter 30 has to pass the test whether it is for cure of any disease. If the same is only meant for care, then such product would not fall under medicament.

Highlight: Demand of interest - the period of limitation that applies to a claim for the principal amount should also apply to the claim of interest thereon.

Highlight: Government issues new notifications under CGST, IGST and UTGST to grant fresh exemptions in respect of certain supplies.

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117 of the Central Goods and Services Tax Rules, 2017

Forum: 3B mistake

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Input tax credit

Forum: Cess paid instead of SGST

Forum: Manpower Service provider

Forum: Construction of single unit bungalow

Forum: Duty Drawback & Input Credit - under GST

Article: SIMPLIFIED E-WAY BILL UNDER GST

Article: SERVICES UNDER REVERSE CHARGE UNDER GST REGIME

Highlight: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017 - Notification

Highlight: Companies (Acceptance of Deposits) Second Amendment Rules, 2017 - Notification

Highlight: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. — reg. - Circular

Highlight: Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20 - Public Notice

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Circular: Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20

Notification: Companies (Acceptance of Deposits) Second Amendment Rules, 2017

Notification: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017

News: Exchange Rate of Foreign Currency Relating To Imported and Export Goods Notified

Circular: Promote the officers of the Indian Revenue Service (Customs and Central Excise) to the grade of Principal commissioner of customs, GST & CX

Circular: Allocate the charges amongst the Members of the Central Board of Excise and Customs

Circular: Strategy for audits in 2017-18 consequent to GST - Audit by Central Excise and service Department to continue for the accounting year 2016-17 and for the past period

Circular: Appoint the IRS (C&CE) officers as Principal Commissioner (Revision Application) and ex-officio Additional Secretary

Circular: Time limit for filing intimation for composition levy under Rule 3(1) of the CGST Rules, 2017 extended to 16-8-2017

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017

Circular: C.B.E. & C. Advisory on Customs related matters on introduction of Goods and Services Tax regime

Circular: List of Reduced Tax Liabilities under GST regime in comparison to present combined Indirect Tax rates

Circular: Works Contract for construction of Flats, Complex — Builders to pass on GST benefit to buyer otherwise anti-profiteering provisions of Section 171 of GST Act to apply



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