Corporate Updates – 14-10-2014


RBI has issued clarifications on usage of ATMs and number of free transactions provided by the banks. All banks were mandated not to charge any fees to their savings bank account customers for five ATM transactions (inclusive of both financial and non-financial) in a month carried out at other bank ATMs located in the 6 metro centres with a sub-limit of 3 transactions, if carried out at other bank ATMs located in six metro centres. However, Banks are free to offer more number of free transactions per month at other bank ATMs as well as own ATMs in any geographical location. Banks are also free to decide on the combination (for metro & non-metro locations) of free transactions while adhering to the minimum requirements.


CBEC has issued clarifications regarding powers of a Central Excise officer to conduct audit, in the background of a recent judgment of Hon’ble High Court of Delhi dated 04.08.2014 in case of M/s Travelite (India) wherein the Hon’ble court has held that the powers to conduct audit as envisaged in rule 5A (2) of the Service Tax Rules, 1994, does not have appropriate statutory backing and therefore quashed the rule. It has been clarified by the Department that Clause (x) of section 37(2) empowers the Central Government to make rules for verification of records and returns to check the correctness of levy and collection of duty and officers of Central Excise shall continue to conduct audit, as provided in the statute.


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