RBI:
RBI through its Notification bans repayment of domestic loans through ECBs as it observed that banks are extending non-fund based credit facilities like guarantees/stand-by letter of credits/letter of comforts etc. on behalf of JV/WOS/WoSDS for purposes which are not connected with their business, rather, in certain cases, used to avail foreign currency loans for repayment of Rupee loans. Banks are also advised to ensure effective monitoring of the end use of such facilities and its conformity with the business needs of such entities. It is further clarified in case of Indian Companies that, if the ECB is availed from overseas branches/subsidiaries of Indian banks, the risk remains within the Indian banking system and repayment of Rupee loans availed of from domestic banking system through ECBs extended by overseas branches/subsidiaries of Indian banks will, henceforth, not be permitted.
MINISTY OF FINANCE:
Ministry of Finance has invited Suggestions from the Industry and Trade Associations for General Budget 2014-15 regarding changes in direct and indirect taxes, changes in the duty structure, rates and broadening of tax base on both direct and indirect taxes giving economic justification for the same. Suggestions may also be given for simplification and rationalization of duties and taxes.
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