Corporate Updates – 20-05-2015


The Hon’ble President has given assent to the Finance Bill, 2015 on Thursday, May 14, 2015. Accordingly, the Finance Bill, 2015 has now become Finance Act (No.20), 2015. Few of the changes in Service tax are effective from the date of notification i.e May 14, 2015 and few of the changes will become effective only from the date to be notified. In the regard Service Tax rate as increased from 12.36% to 14% (Subsuming EC and SHEC) shall be applicable from 1st June, 2015.


RBI reviewed the instructions regarding opening and maintenance of FCNR (B) deposit and noticed that Authorised Dealer banks are insisting on different requirements at the time of closure of FCNR (B) deposits and subsequent remittance of funds. RBI clarified that A2 form is to be filed at the time of purchase of foreign exchange using rupee funds and hence is not applicable while remitting FCNR (B) funds. Further, banks, with the help of technology, will have to devise better alternatives/ methods for ensuring bonafides of the transaction rather than insisting on physical presence of the account holder, in order to ensure hassle free remittance of funds to the account holder.

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