DVAT:
DVAT Authorities have issued a circular for Reversal of Input Tax Credit under Section 10 of the DVAT Act, 2004 in respect of Credit Note/Debit Note related to discounts. Input Tax Credit has to be adjusted by the Purchasing Dealer in respect of Credit /Debit Notes related to Trade discount & Due to variation in rate or quantity in individual sale invoice. Credit note related to consideration for other facilities offered to the purchaser, or for Reimbursement of expenses incurred by purchaser on behalf of seller or / and Cash Discount need not be subjected to ITC reversal.
RBI:
In order to enhance the hedging facilities for the Foreign Portfolio Investors (FPIs) holding securities under the Portfolio Investment Scheme (PIS), it has been decided to permit FPIs to hedge the coupon receipts arising out of their investments in debt securities in India falling due during the following twelve months subject to the condition that the hedge contracts shall not be eligible for rebooking on cancellation. The contracts can however be rolled over on maturity provided the relative coupon amount is yet to be received. All other regulations and guidelines issued under FEMA, 1999 relating to investment in debt securities and hedging facilities for non resident investors including FPIs shall remain unchanged.
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