• Indirect Tax

Customs

CBEC Customs - Instruction From File No. 528/1/2008-Cus.(TU) Dated 24.05.2008 - Import of Sex determination/ gender testing kits - violation of PC & PNDT Act, 1994 - reg.

CBEC issued directions to Custom Officers to refer the imported consignments of gender testing/ sex determination kits to the Port Health Officer / Drug Controller, in order to obtain their clearance, before giving the Customs clearance for the imported goods/ consignment.

CBEC Customs - Circular No. 7/2008 Dated 28.05.2008 - sanction of customs duty refunds - Unjust enrichment

CBEC issues Directions to the customs officers working under your jurisdiction to carefully examine the facts of the case and the material placed before him in order to determine whether the amount claimed by an applicant is refundable to him or not. Further, they are supposed to go through the details of audited balance sheet and other related financial records, certificate of the Chartered Accountant etc., submitted by the applicant in order to ascertain whether the applicant had not passed on the incidence of the duty and interest thereon.

The Order-in-Original passed by the officers should be a speaking order providing specific details including the relevant financial records that are relied upon to arrive at a conclusion. Orders issued in a routine and casual manner without going through the factual details of the case and the due process as provided in the first proviso cannot be considered as a complete and speaking order.

CBEC Customs - Non Tariff Notification No. 45/2008-NT Dated 28.05,2008 - Determines Exchange Rate of conversion of the specified foreign currency Effective from 1st June, 2008

In supersession of the notification No.39/2008-CUSTOMS (N.T.), dated the 28th April 2008, CBEC determines rate of exchange of conversion of each of the specified foreign currency hereto into Indian currency or vice versa effective from 1st June 2008, relating to goods imported and exports.

Excise

CBEC Excise - Instruction From File No.: 209/11/2005-CX-6 Dated 16.05.2008 - Debate on Goods Manufactured in North East and Subsequently Exported Under the Rule 18 of the Central Excise Rules, 2002-reg

Central Excise Rules as amended by the Finance Act, 2008 provides for grant of rebate of duty paid on excisable goods cleared from factory for export on or before 07.12.2006, for that portion of duty paid, which is subsequently refunded under the specified area based exemption, retrospectively. All cases kept pending following the letter dated 14.08.2007 may be decided as per the amendments carried out by the Finance Act, 2008 and a factual report regarding disposal of pending cases may be sent to the Board.

CBEC Excise - Non-Tariff Notification No. 24/2008-N.T.Dated. 23.05.2008 - CBEC Specifies Form E.R.-2 for the purpose of Central Excise Rules, 2002

Central Board of Excise and Customs specifies Form E.R.-2 for the purpose of filing monthly return in respect of goods manufactured, goods cleared and receipt of inputs and capital goods, for the purpose of the Central Excise Rules, 2002, in supersession of the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 26/2004-Central Excise (N.T.), dated the 27th September, 2004

Service Tax

Service Tax - Notification No. 27/2008 Dated 27. 05. 2008 - Amendment to the Notification No. 1/2006-Service Tax, dated the 1st March 2006

Central Government exempts the taxable service provided in relation to chit from so much of the service tax leviable thereon under section 66 of the said Finance Act, as is in excess of the service tax calculated on a value which is equivalent to a percentage specified within the notification of the gross amount charged by such service provider for providing the said taxable service. Exemption provided thereon is unconditional.

• Capital Market

SEBI Press Release No. PR No.109/2008 Dated. 21.05.2008 - Proposed Process for Alternative Mode of Payment in Issues

SEBI has approved the concept of providing an alternative mode of payment in issues. According to the proposed process application money remains in the investors' account till finalization of basis of allotment in the issue, it requires retail individual investors bidding at cutoff, to apply through Self Certified Syndicate Banks (SCSBs), in which the investors have bank accounts.

SCSBs would accept the applications and block the fund to the extent of bid payment amount, upload the details in the electronic bidding system of BSE or NSE, unblock the amount once basis of allotment is finalized and transfer the amount for allotted shares, to the issuer.

SEBI Mutual Fund Circular No. SEBI/IMD/CIR No. 5/126096/08 dated 23.05.2008 - Simplification of Offer Document and Key Information Memorandum of Mutual Funds Scheme

On recommendation of the committee set up to examine the ways of simplification of offer documents (ODs) and Key Information Memorandum (KIM) to make it more reader friendly, the existing OD is splited into two parts i.e. Statement of Additional Information (SAI) and Scheme Information Document (SID). Henceforth, formats of Standard OD and KIM stand revised and Mutual Funds shall prepare SID, SAI and KIM in the simplified format enclosed with the circular

• Directorate General of Foreign Trade (DGFT)

Notification No.13 (RE-2008)/2004-2009 Dated 27.05.2008 Amendments to the Notifications No.4 (RE-2008)/2004-09 dated 11th April, 2008 read with Notification No.12

The Central Government in exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 read with Para 1.3 and Para 2.1 of the Foreign Trade Policy, 2004-2009, with immediate effect amended the Notifications No.4 (RE-2008)/2004-09 dated 11.4.2008 read with Notification No. 12 dated 21.5.2008 related to entry at Sl. No. 72A, Chapter 25, under Schedule 2 of ITC (HS) Classification of Export and Import Items.

Public Notice No. 19(RE-2008)/2004-2009 Dated 23.05.2008 Amendment to the handbook of Procedures (Vol.I)

Director General of Foreign Trade by amending the Handbook of Procedures added an agency at Sr. No.12 (Gujarat) in Appendix 4C, (Certificate of Origin Non-Preferential) of Handbook of Procedures Vol. I as Rajkot Engineering Association, Bhakti Nagar Industrial Estate, Rajkot-360002

Public Notice No.18 (RE-2008)/2004-2009 Dated 22.05.2008 Amendments in the Handbook of Procedures (Vol.I)

Director General of Foreign Trade by amending the Handbook of Procedures (Vol.I), substituted clause (k) of para I in Appendix 14-I-H by - "DTA sale of instant tea will be allowed upto 30% of FOB value of exports".

Public Notice No.17 (RE-2008)/2004-2009 Dated 21.05.2008 Amendments in Handbook of Procedures, Vol. I (RE 2008)

The Director General of Foreign Trade in exercise of powers conferred under Paragraph 2.4 of the Foreign Trade Policy 2004-09, by amending Handbook of Procedures, Vol. I (RE 2008) added in the appendix 37D under Table 11, After Sl.No.7, in the Index of Product Categories under K - new additional products. Description of the product reads as "All Types of Hand Tools covered under ITC HS Codes 8202 to 8206." Consequently, Hand Tools covered under ITC HS Codes 8202 to 8206 would be entitled to FPS benefits on exports w.e.f. 1.4.2008.

Notification No.12 (RE-2008)/2004-2009 Dated 21.05.2008 Amendment to the Notification No.4 (RE-2008)/2004-09 read with Notification No.5

The Central Government in exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 read with Para 1.3 and Para 2.1 of the Foreign Trade Policy, 2004-2009, with immediate effect amended the Notifications No.4 (RE-2008)/2004-09 dated 11.4.2008 read with Notification No.5 dated 15.4.2008 related to entry at Sl. No. 72A, Chapter 25, under Schedule 2 of ITC (HS) Classification of Export and Import Items.

• RESERVE BANK OF INDIA

RBI UBD Circular No. UBD.PCB.Cir.No.48/13.05.007/07-08 Dated 26.05.2008 - Mahila Urban Co-operative Banks-Membership

As per the licensing policy and procedures Membership of Mahila UCBs is exclusively confined to women and Mahila banks should not resort to enrolment of male members as 'A' category or nominal members except as nominal members for the purpose of standing as sureties for the borrowers from the bank.

It has been decided by the RBI to permit existing Mahila Banks, conforming to the extant entry point norms for general category banks, to enrol male members up to a limit of 25 % of their total regular membership. Permission thus granted is subject to compliance by the banks with their respective bye-laws

A.P. (DIR Series) Circular No.42 Dated 28.05.2008 - Trade Credits For Imports Into India - Review Of All-In-Cost Ceiling

RBI has been decided to enhance the all-in-cost ceiling for trade Credits for imports into India. . The all-in-cost ceiling in respect of Trade Credits up to one year is revised from 50 basis points to 75 basis points over 6 months LIBOR for the respective currency of credit or applicable benchmark. This amendment to Trade Credit Policy will come into force immediately and all other aspects of Trade Credit remain unchanged.

Circular No. DBOD.No.BP.BC.86/21.04.141/2007-08 Dated 22.05.2008 Valuation of Non-SLR Securities Issued by the Government of India

The Circular discussed about the observation made on issuance of several special securities, which do not qualify for the purpose of complying with the SLR requirements of banks. On examining the issue of valuation of such special securities. it has been decided that, for the limited purpose of valuation, all special securities issued by the Government of India, directly to the beneficiary entities, which do not carry SLR status, may be valued at a spread of 25 bps above the corresponding yield on Government of India securities. This amendment would come into force from the financial year 2008-09.

Circular No. IDMD.DOD.No. 5893 /10.25.66/ 2007-08 Dated 27.05.2008 Order Matching (OM) System - Access through the CSGL Route

To widen the reach of the NDS-OM, indirect access through the CSGL route was extended vide our circular IDMD.DOD.No.5341 /10.25.66/ 2006-07 dated May 25, 2007 to certain qualified entities. The access was further extended, vide circular IDMD.DOD.No. 2605 /10.25.66/ 2007-08 dated November 27, 2008, to the Systemically Important Non-Deposit taking NBFCs (NBFC-ND-SI). Now, as announced in paragraph 123 of the Annual Policy Statement for the year 2008-09, it was decided to extend indirect access of the NDS-OM to other segments of investors, such as, other non-deposit taking NBFCs, Corporates and Foreign Institutional Investors (FIIs). These entities can now place orders on NDS-OM through direct NDS-OM members viz., banks & PDs using the CSGL route.

• TELECOM REGULATORY AUTHORITY OF INDIA (TRAI)

Press Release No. 53/2008 Dated 28.05.2008 - TRAI issues Consultation paper on Growth of Value Added Services and Regulatory Issues

TRAI releases Consultation paper on Growth of Value Added Services and Regulatory Issues. The key issues raised in the consultation paper relates to the licensing obligation of telecom operators and need to bring in content provider/aggregators called Value Added Service Providers (VASPs) under the licensing regime and scope of licence thereon. It focuses on the approach for the growth, regulatory guidelines and terms and conditions in respect of licensing and provisioning of Value Added Services.

• Value Added Tax (VAT)

Gujarat

Notification No. (GHN-29)VAT--2008-SCH-II(42A (15)-Th dated 16.05.2008 Amendment to the Notification No. (GHN-33) VAT-2006/SCH-II/(42A) (5)/TH, dated the 31th March, 2006

The Government of Gujarat amended the Notification No. (GHN-33) VAT-2006/SCH-II/(42A) (5)/TH, dated the 31th March, 2006 by making insertions in entries at serial No. 205, 223 and 238 of the schedule.

Tamil Nadu

Order No. G.O. (Ms.) No.43 Dated 05.05.2008 Exemption on tax payable on sale of mustard, aniseed and fenugreek by an dealer under section 30(1) and (2) of Tamil Nadu Added Tax Act, 2006

The Governor of Tamil Nadu in exercise of the powers conferred by sub-sections (1) and (2) of section 30 of the Tamil Nadu Value Added Tax Act, 2006, exempted tax payable under the said Act on the sale of mustard, aniseed (sombu) and fenugreek (methi) by any dealer whose total turnover in respect of those items does not exceed rupees three hundred crores in a year. The notification is deemed to have come into force on the 1st May 2008.