Corporate Updates 15 July 2014


CBEC has made amendments in Rule 7(d) of the Cenvat Credit Rules, 2004 with regard to the manner and extent of distribution of common input Service Credit. Rule 7 provides for the mechanism of distribution of common input service credit by the Input Service Distributor to its manufacturing units or to units providing output services. Rule 7 was amended to simplify the method of distribution. The amended rule 7(d) seeks to allow distribution of input service credit to all units in the ratio of their turnover of the previous year.


RBI has removed levy of foreclosure charges / pre – payment penalty on Floating Rate Loans on individual borrowers. As a measure of customer protection and also in order to bring in uniformity with regard to prepayment of various loans by borrowers of banks and NBFCs, it is advised that NBFCs shall not charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect.

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