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Corporate Updates 19 Feb 2014

February 19, 2014 Leave a Comment

RBI: 

RBI has amended External Commercial Borrowings (ECB)- Reporting Arrangements and issues new Form for ECBs to collect details of financial hedging and foreign earnings and expenditures. The format of ECB-2 Return has been modified (Part-E). The reporting in the modified ECB-2 Return (Copy Attached) will be applicable from the return of the month April 2014 onwards. There is no change in the reporting procedure and Corporate(s) raising ECB continue to submit ECB-2 Return on a monthly basis duly certified by the designated AD Category-I bank. To view & download the circular, CLICK HERE

INCOME TAX: 

The convention between the Government of the Republic of India and the Government of the United Kingdom of Great Britain and Northern Ireland for the avoidance of double taxation (DTAA) and the prevention of fiscal evasion with respect to taxes on income and capital gains has been by the Government of respective countries and same has been notified on 10-02-2014.

Filed Under: Income Tax, News & Updates, RBI

Corporate Updates 18 Feb 2014

February 18, 2014 Leave a Comment

RBI: 

RBI has amended FEM (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, to encourage long term investors, the existing Commercial Paper sub-limit of USD 3.5 billion is reduced by USD 1.5 billion to USD 2 billion for foreign investment in India by SEBI registered FII, QFI and long term Investors to purchase, on repatriation basis Government securities and non-convertible debentures (NCDs)/bonds issued by an Indian company subject to such terms and conditions as mentioned therein and limits as prescribed for the same by RBI and SEBI from time to time. The balance USD 1.5 billion shall, however, continue to be part of the total Corporate debt limit of USD 51 billion and will be available to eligible foreign investors for investment in Corporate debt. All other existing conditions for investment in Corporate debt remain unchanged. To view and download the copy of the circular, CLICK HERE

INCOME TAX: 

Finance Minister Shri. P. Chidambaram presented Interim Union Budget 2014-2015 in Parliament on Monday, the 17th February, 2014. To view and download the Key Features of Budget 2014-2015, CLICK HERE

Filed Under: Income Tax, News & Updates, RBI

Corporate Updates 11 Feb 2014

February 11, 2014 Leave a Comment

RBI: 

RBI has made modifications applicable w.e.f 01-04-2014 in “Pricing Of Credit” Directions as applicable to certain NBFCs. As per the modified directions, the Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIS) – Directions – Modifications in “Pricing of Credit”, the interest rates charged by an NBFC-MFI to its borrowers will be the lower of the following:
i) The cost of funds plus margin as indicated in the company circular DNBS. Or
ii) The average base rate of the five largest commercial banks by assets multiplied by 2.75.
The average of the base rates of the five largest commercial banks shall be advised by the Reserve Bank on the last working day of the previous quarter, which shall determine interest rates for the ensuing quarter. For details, please visit: http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=8734&Mode=0

SEBI: 

To protect the interests of investors in securities and to promote the development of, and to regulate the securities market, SEBI has issued Guidelines for Inspection of Depository Participants (DPS) by Depositories, in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 read with Section 19 of the Depositories Act, 1996. For details, please visit: http://www.sebi.gov.in/cms/sebi_data/attachdocs/1391764467092.pdf

Filed Under: News & Updates, RBI, SEBI

Corporate Updates 07 Feb 2014

February 7, 2014 Leave a Comment

SEBI:

Finance Ministry opens doors & admission to all insurance companies who are granted registration by the Insurance Regulatory Development Authority under the Insurance Act, 1938 for membership of stock exchange by amending the Rule 8 of the Securities Contracts (Regulation) (Amendment) Rules, 2014.

RBI:

RBI liberalized the third party norms for import of goods by removing ceiling of $100000 and third party payment could be made to a Financial Action Task Force (FATF) compliant country and through the banking channel only. RBI further said the bank concerned should be satisfied with the bonafides of the transaction and export documents, such as, invoice and they should consider the FATF statements while handling such transaction.

Filed Under: News & Updates, RBI, SEBI

Corporate Updates 03 Feb 2014

February 3, 2014 Leave a Comment

RBI: 

The Reserve Bank of India (RBI) on Friday asked banks to discontinue the practice of levying penalty on non maintenance of minimum balance in ordinary savings bank account, a move that may hit the fee-based income of banks and will benefit the public at large.

SERVICE TAX: 

CBEC has amended the definition of Governmental Authority as provided under clause (s) of Para 2 of the Mega Exemption Notification No. 25/2012-ST dated June 20, 2012 and expanded the definition of “Governmental Authority” and widens the exemption base for service tax as under:

Para 2(s) “Governmental authority” means an authority or a board or any other body;

(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by Government, with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution.

For Details, please visit http://www.servicetax.gov.in/notifications/notfns-2014/st02-2014.htm.

Filed Under: News & Updates, RBI, Service Tax

Corporate Updates – 29 Jan 2014

January 29, 2014 Leave a Comment

INDIRECT TAXES:

· 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: http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2014/cs-nt2014/csnt05-2014.pdf.

RBI:

· 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.

Filed Under: Indirect Taxes, News & Updates, RBI