RBI:
RBI has clarified the issue relating to lending by NBFCs against Shares of the Indian Companies. It has been clarified that the said circular is not applicable to unlisted shares. LTV ratio of 50% is required to be maintained at all times. Any shortfall in the maintenance of the 50% LTV occurring on account of movement in the share prices shall be made good within 7 working days. The condition of acceptance of only Group 1 securities as collateral for loans of value more than Rs. 5 lakh, is applicable only where the lending is done for investment in the capital market and the reporting to the Stock Exchanges shall be quarterly.
CBEC – SERVICE TAX:
CBEC has clarified the doubts regarding the proposed increase in the rate of Service Tax from 12.36% (including education cesses) to 14% on the value of taxable service. Certain amendments made in the Finance Act, 1994, including the change in service tax rate, will come into effect from a date to be notified by the Government after the enactment of the Finance Bill, 2015. The new Service Tax rate shall come into effect from a date to be notified by the Central Government after the enactment of the Finance Bill, 2015. Till the time the revised rate comes into effect, the ‘Education Cess’ and ‘Secondary and Higher Education Cess’ will continue to be levied in Service Tax.
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