Corporate Updates – 29 Jan 2014


· The CBEC has issued Circular No. 176/2/2014-ST dated January 20, 2013 clarifying that Cenvat credit shall only be available after payment of entire service tax dues and obtaining discharge certificate in form VCES 3 and the said Form is required to be issued within stipulated period of seven working days from the date of furnishing the details of payment of tax dues.

· The Central Government has vide Notification No. 05/2014 – Customs (N.T.) dated January 21, 2014 amended the provisions to provide new drawback rates for several Products exported out of India. The Notification shall come into force on January 25, 2014. In this context, please find link below of the Notification:


· The Reserve Bank of India advised that after March 31, 2014, it will completely withdraw from circulation all banknotes issued prior to 2005. From April 1, 2014, the public will be required to approach banks for exchanging these notes. The Reserve Bank further stated that public can easily identify the notes to be withdrawn as the notes issued before 2005 do not have on them the year of printing on the reverse side. From July 01, 2014, however, to exchange more than 10 pieces of `500 and `1000 notes, non-customers will have to furnish proof of identity and residence to the bank branch in which she/he wants to exchange the notes.

Corporate Updates – 27 Jan 2014


· NRI’s close relative can be joint account holder in Existing / New resident bank accounts subject to conditions. [AP (DIR Series) Circular 87 of 09-01-2014].

· RBI has clarified that a foreign investor is free to remit funds through any bank of its choice for any transaction permitted under FEMA, 1999 or the Regulations / Directions framed there under. The funds thus remitted can be transferred to the designated AD Category -I custodian bank through the banking channel.


· CBDT has clarified vide Circular No. 1/2014 dated 13-1-2014 -that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/ payable without including such service tax component.

· Last date 31-01-2014 for availing DVAT Amnesty Scheme. Filing Q3 returns with Block R 10 in CST Form 1. Filing Form AR-I for FY 2012-13 for specified dealers fulfilling the criteria as prescribed by the Delhi VAT Authorities.