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Corporate Updates 24 March 2014

March 24, 2014 Leave a Comment

RBI: 

The Reserve Bank on January 30, 2014 has issued Framework for Revitalising Distressed Assets in the Economy which would be fully effective from April 1, 2014, has outlined a corrective action plan that will incentivize early identification of problem account, timely restructuring of accounts which are considered to be viable, and taking prompt steps by lenders for recovery or sale of unviable accounts. In the background of the above, to the extent it is now made applicable to NBFCs also and separate guidelines are issued to NBFCs for dealing with the NPA’s.

CBDT:

In order to achieve the Budgetary Targets set in the Finance Act, CBDT through its Office Memorandum has directed all its officers across the country to show commitment towards work for remaining days of the Financial Year. Accordingly all Assessing Officers / Addl. CIT / CIT / CCIT involved in assessment work and collection of taxes have instructed that they shall not leave Headquarter upto 31.03.2014 and all Income Tax Offices will be kept open on 29th, 30th and 31st March, 2014.

Filed Under: CBDT, News & Updates, RBI

Corporate Updates 21 March 2014

March 21, 2014 Leave a Comment

RESERVE BANK OF INDIA: 
Reserve Bank of India in the wake of recommendations of the Key Advisory Group (KAG) constituted by the Government of India on the Securitisation Companies/ Reconstruction Companies (SC/ RCs), it has been decided to allow SC/ RCs to utilize a funds raised from the Qualified Institutional Buyers to acquire financial assets subject to the prescribed conditions. For detailed notification, please Click Here.

COMPETITION LAW:

The Competition Commission of India approved the transfer of gas plant of Essar Steel on slump sale basis to Inox Air as it does not have appreciable adverse effect on competition in India.

Filed Under: Competition Law, News & Updates, RBI

Corporate Updates 15 March 2014

March 15, 2014 Leave a Comment

Reserve Bank of India: 

RBI has decided that the letter issued by the Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhaar number may be accepted as an ‘Officially Valid Document’. Further, RBI has also advised Banks to accept Aadhaar letter as a proof of both identity and address while opening accounts if the address provided by the account holder is the same as that on Aadhaar letter. For detailed notification, Please click here

Income Tax:

The Income Tax Authority has clarified that for the purpose of determining residential status of a citizen in India as per Income Tax Act, 1961, the term ‘going abroad for purpose of employment’ means travelling abroad on business visa to take up any employment or for any business carried outside India.

Filed Under: Income Tax, News & Updates, RBI

Corporate Updates 13 March 2014

March 13, 2014 Leave a Comment

Reserve Bank of India: 

RBI has modified Priority Sector Lending targets and classification on-lending-pricing criteria and decided that all banks have to ensure MFIs comply with the cap on individual loans and margin cap in order to be eligible to classify the loans under priority sector. However, all other guidelines will remain unchanged. For detailed notification please click here.

Competition Law: 

The Competition Commission of India has held in his judgment given in a recent case that presence of several real estate developers in relevant market makes it competitive and rules out dominance of opposite party in that market and further clarified that it is not an abuse of dominance by the party as other players also had access to real estate market.

Filed Under: Competition Law, News & Updates, RBI

Corporate Updates 10 March 2014

March 10, 2014 Leave a Comment

CBEC: 

Partial reverse charge mechanism has been introduced w.e.f. July 1, 2012 wherein both service provider and service receiver are required to pay a specified portion of service tax liability in terms of Notification No.30/2012-ST dated June 20, 2012. The Central Board of Excise & Customs vide Notification has now provided the procedure for filling refund application by service provider, of unutilized Cenvat credit availed on inputs and input services received on and after July 1, 2012 for providing the specified services. For the full procedure, safeguards, conditions and limitations, please Click Here.

RBI:

RBI permits e-transfer of inward foreign remittances directly into beneficiaries accounts under Money Transfer Service Scheme – ‘Direct To Account’ Facility. To facilitate receipt of foreign inward remittances directly into bank account of the beneficiary, it has been decided to allow foreign inward remittances received under MTSS to be transferred to the KYC compliant beneficiary bank account through electronic mode, such as NEFT, IMPS etc. A detailed prescribed procedure is required to be followed for the said purpose. To download & view the notification , please Click Here.

Filed Under: CBEC, News & Updates, RBI

Corporate Updates 05 March 2014

March 5, 2014 Leave a Comment

RBI: 

The Reserve Bank of India has extended the date for exchanging the pre-2005 banknotes to January 01, 2015. It has also advised banks to facilitate the exchange of these notes for full value and without causing any inconvenience whatsoever to the public. The Reserve Bank solicits the cooperation of the public in withdrawing these notes from circulation by exchanging them at a bank branch convenient to them. The Reserve Bank also clarifies that the public can continue to freely use these notes for any transaction and can unhesitatingly receive these notes in payment, as all such notes continue to remain legal tender.

RBI: 

The Reserve Bank of India has asks banks to accept e-Aadhaar as an ‘officially valid document’ under anti-money laundering rules and it has been advised to banks that, while opening accounts based on Aadhaar, if the address provided by the account holder is the same as that on Aadhaar letter, it may be accepted as a proof of both identity and address. It is further clarified that, banks may accept e-Aadhaar downloaded from UIDAI website as an officially valid document. To view & download the notification, please Click Here.

Filed Under: News & Updates, RBI

Corporate Updates 26 Feb 2014

February 26, 2014 Leave a Comment

BANKING LAW: 

The advisory committee headed by former Reserve Bank of India (RBI) Governor, Sh. Bimal Jalan, which is screening the 25 bank licence applications, is expected to give its report by this weekend. RBI had constituted the Jalan committee to examine the fit-and-proper criteria, business plans, corporate governance practices, etc, of applicants. After securing RBI’s in-principle approval for a bank licence, an entity will a year and a half to set up banks, failing which their licences will be cancelled.

SEBI: 

SAT in one of the recent cases reduced the penalty imposed upon appellant company for failure to redress investors grievance and stated that penalty was reduced in view of fact that appellant had become defunct and had tried its best to redress investors grievances.

Filed Under: Banking, News & Updates, RBI, SEBI

Corporate Updates 25 Feb 2014

February 25, 2014 Leave a Comment

RBI:

It has now been decided by the RBI that all entities regulated by the Reserve Bank should report their secondary market OTC trades in Corporate Bonds and Securitized Debt Instruments within 15 minutes of the trade on any of the stock exchanges (NSE, BSE and MCX-SX). These trades may be cleared and settled through any of the clearing corporations (NSCCL, ICCL and MCX-SX CCL). This Circular is effective from April 01, 2014.

CUSTOMS ACT:

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, makes further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 21/2012-Customs, dated the 17th March, 2012 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide G.S.R. 194(E), dated the 17th March, 2012, inserted the new serial number and entries shall be inserted after entry 83. To view and download the notification, please Click here.

Filed Under: CBEC, News & Updates, RBI

Corporate Updates 22 Feb 2014

February 22, 2014 Leave a Comment

RBI: 

RBI allows MSES to raise funds from foreign investors by allowing FDI into a Small Scale Industrial Undertakings (SSIS)/Micro & Small Enterprises (MSES) and in industrial undertaking manufacturing items reserved for SSIS/MSES vide its Circular dated 20-02-2014. An Indian Company which is a Small Scale Industrial Unit and which is not engaged in any activity or in manufacture of items included in Annex A, may issue Shares or Convertible Debentures to a person resident outside India, to the extent of 24% of its paid-up capital provided that such company may issue shares in excess of 24% of its capital if complies with the conditions provided in the circular.

IRDA / INSURANCE LAWS: 

IRDA, in order to minimize the unclaimed amount of the policy holders has instructed all the Insurance Companies that every Insurer shall endeavour to keep the Policyholder and beneficiary informed about any updates, changes and maturity details by SMS alerts or Email or any other mode as may be specified by the Authority on regular basis and all Insurers to remit claims due to policy holders through electronic mode w.e.f 1st April, 2014. To download & view the said circular CLICK HERE.

Filed Under: Insurance, News & Updates, RBI

Corporate Updates 21 Feb 2014

February 21, 2014 Leave a Comment

INCOME TAX: 

PAN Authorities have installed Interactive Voice Response (IVR) for all the applicants for knowing their status of PAN / TAN application and the same is now available at TIN call centre (TCC) in Hindi/English language. To check the status of your PAN / TAN application, the calls may be made at 020- 27218080.

RBI:

RBI asks AD banks to furnish statements on monthly basis for remittances made by NRIs out of NRO accounts including sale proceeds of immovable property provided the amount does not exceed USD one million per financial year (April-March). Earlier AD – Category I banks were required to furnish on a quarterly basis, to the Chief General Manager-in-Charge, Reserve Bank of India, Central Office, Mumbai-400001 within 10 days of the reporting quarter, a statement on the number of applicants and total amount remitted.

Filed Under: Income Tax, News & Updates, RBI