• INDIRECT TAXATION

Customs

CBEC Customs Notification No. 120/2008 Dated 04.11.2008 -Amendment to the Notification No.21/2002-Customs, dated the 1st March, 2002

Central Government in exercise of the power conferred by Customs Act, 1962 exempts Air pellets of air rifles or air pistols, of 0.177 calibre imported into India from duty of customs leviable thereon under the said First Schedule and additional duty leviable thereon under Customs Tariff Act , vide amendment to the notification No. .21/2002-Customs, dated the 1st March, 2002.

CBEC Customs Notification No. 119/2008 Dated 31.10.2008 - Amendment to the Notification No.21/2002-Customs, dated the 1st March, 2002

All goods falling under Heading or subheading Number 2710 19 20, 7202 (except 7202 70 00, 7202 92 00), 7202 70 00 or 7202 92 00 has been exempted by the Central government from duty of customs leviable thereon under the said First Schedule and additional duty leviable thereon under Customs Tariff Act, vide amendment to the notification No. 21/2002-Customs, dated the 1st March, 2002.

CBEC Customs Notification No. 116/2008 Dated 31.10.2008 -Exemption to the iron ore fines from duty of customs leviable under Customs Act

Central Government in exercise of the power conferred under Customs Act, 1962 exempts iron ore fines falling under Heading No. 11 of the Second Schedule to the Customs Tariff Act, when exported out of India, from duty of customs leviable thereon as specified in the said Second Schedule, which is in excess of the amount calculated at the rate of Rs.200 per tonne.

CBEC Customs Notification No. 112/2008 Dated 22.10.2008 -Rescinds Notification No. 69/2008-Customs Dated the 15th May, 2008

Central Government rescinds notification No.69/2008-Customs, dated the 15th May, 2008 imposing Antidumping duty on Import of fully drawn yarn or fully oriented yarn or spin drawn yarn or flat yarn of polyester (non-textured and non-POY) and other yarns originating in or exported from, the Indonesia, Republic of Korea, Malaysia and Chinese Taipei.

Customs Non-Tariff

CBEC Customs Non-Tariff Notification No. 116/2008-Customs(N.T.) Dated 31.10.2008- Amendment to the Notification No.36/2001-Cus (N.T.), dated, the 3rd August 2001

Central Board of Excise and Customs notifies tariff values of edible oils, brass scrap (all grades) and Poppy seeds as provided therein , vide amending Notification No.36/2001-Cus (N.T.), dated, the 3rd August 2001 previously issued dealing with the Tariff values - Crude and RBD Palm Oil/Palmolein).

CBEC Customs Non-Tariff Notification No. 115/2008-Customs(N.T.) Dated 29.10.2008 - Determines rate of exchange of conversion effective from 1st November, 2008 relating to imported and export goods

Central Board of Excise and Customs determines the rate of exchange of conversion of specified foreign currency provided therein into Indian currency or vice versa for the purpose of section 14 of the Customs Act, 1962, which shall be effective from the 1st November, 2008 in relation to imported and export goods.

• DIRECT TAXATION

CBDT Notification No. 98/2008 Dated 22.10.2008 -Income-tax (Eighth Amendment) Rules, 2008

Central Board of Direct Taxes prescribes Form No. 10CCBD of report for claiming deduction under sub-section (11C) of section 80-IB as rule 18DDA and makes it mandatory for the assessee to submit report of an accountant to be along with the return of income under sub-section (11C) of section 80-IB shall be in Form No. 10CCBD vide Income-tax (Eighth Amendment) Rules, 2008.

CBDT Notification No. 99/2008 Dated 22.10.2008 -Income-tax (Ninth Amendment) Rules, 2008

Investment by way of acquiring shares of National Skill Development Corporation has been prescribed as another Forms or modes of investment or deposits by a charitable or religious trust or Institution along with the existing forms and mode by the Central Board of Direct Taxes vide Income-tax (Ninth Amendment) Rules, 2008.

• SECURITY EXCHANGE BOARD OF INDIA

SEBI SMD Circular No.  MRD/DoP/SE/Cir-31/2008 Dated 31.10.2008 -Review of Securities Lending and Borrowing (SLB) Framework

In line with feedback from market participants and proposals for revision of SLB received from NSE and BSE, the Securities Lending and Borrowing (SLB) Framework has been revised. As per the revised framework SLB Tenure may be increased to 30 days, which is presently 7 days and time for SLB session may be extended from the present one hour (10 am to 11 am) to the normal trade timings of 9:55 am to 3:30 pm. Appropriate adjustments for corporate actions and Risk Management has been made vide revised SLB.

SEBI Mutual Fund Circular No. SEBI/IMD/CIR No. 11/142521/08Dated 24.10.2008- Applicability of Net Asset Value (NAV) for Income/Debt oriented Mutual Fund scheme(s)/plan(s) (other than liquid fund schemes)

SEBI has decided to modify the guidelines pertaining to Uniform cut-off timings for applicability of Net Asset Value (NAV) of Mutual Fund scheme(s)/plan(s) in case of large applications for purchase of Income/ Debt oriented schemes other than liquid fund schemes by inserting a clause 6 (2)(A) provisioning in respect of purchase of units in Income/ Debt oriented schemes (other than liquid fund schemes and plans) with amount equal to or more than Rs. 1 crore, irrespective of the time of receipt of application, the closing NAV of the day on which the funds are available for utilisation shall be applicable.

SEBI Press Release No. 245/2008 Dated 05.11.2008 - Framework for recognition and supervision of stock exchanges/ platforms of stock exchanges for small and medium enterprises

SEBI has issued framework for recognition and supervision of stock exchanges/ platforms of stock exchanges for small and medium enterprises. The framework provides eligibility criteria for setting up of new stock exchange/platform of an existing stock exchange for the SME sector in detail.

SEBI Derivatives Circular No. SEBI/DNPD/143542 /Cir-43/08 Dated  06.11.2008 -Issuance of Electronic    Contract Notes (ECNs) in Equity Derivatives Segment

SEBI has decided to extend the facility of issuance of ECNs as a legal document using Straight Through Processing (STP) to the equity derivatives segment also. Consequently, a model contract note in electronic form (IFN 515 messaging format) and confirmation of electronic contract note (IFN 598 messaging format) has been enclosed therein. It has been advised to exchanges to modify/amend their bye-laws, rules and regulations, in order to permit issuance of electronic contract note and Prescribe a standard format. 

• RESERVE BANK OF INDIA

A.P. (DIR Series) Circular No. 33 Dated 05.11.2008 -Exim Bank's Line of Credit of USD 20 million (as 1st tranche of USD 80 million) to the Government of the Republic of Rwanda

A Line of Credit (LOC) of USD 20 million has been made available to the Government of the Republic of Rwanda for the purpose of specified financing eligible goods and services from India for the power project to be executed by Bharat Heavy Electricals Limited and Angelique International Ltd. in Rwanda by virtue of an agreement concluded between Exim Bank and Government of the Republic of Rwanda. The Credit Agreement under the LOC is effective from October 15, 2008 and date of execution of Agreement is October 9, 2007.

A.P. (DIR Series) Circular No. 32 Dated 05.11.2008 - Exim Bank's Line of Credit of USD 33 million to the Government of Lao People's Democratic Republic (Lao PDR)

The agreement making available to Government of Lao People's Democratic Republic a Line of Credit (LOC) of USD 33 million (USD thirty three million) has been concluded between Exim Bank and Government of Lao People's Democratic Republic for the purpose of financing supply of equipments, goods and services including consultancy services from India for specified purposes. The Credit Agreement under the LOC is effective from October 14, 2008 and date of execution of Agreement is August 27, 2008.

A.P. (DIR Series) Circular No. 31 Dated 05.11.2008 - Exim Bank's Line of Credit of USD 25.5 million to the Government of Cote d'Ivoire

A Line of Credit (LOC) of USD 25.5 million has been provided to the Government of Cote d'Ivoire for the purpose of financing eligible goods and services including consultancy services from India for specified purposes Vide agreement concluded between Exim Bank and Government of Cote d'Ivoire. The Credit Agreement under the LOC is effective from October 3, 2008 and date of execution of Agreement is June 18, 2008 .

A.P. (DIR Series) Circular No. 30 Dated 05.11.2008 - Exim Bank's Line of Credit of USD 100 million to the Government of the Democratic Socialist Republic of Sri Lanka

A Line of Credit (LOC) of USD 100 million (USD one hundred million ) for upgradation of railway line ( Colombo - Matara ) in Sri Lanka has been provided to the Government of the Democratic Socialist Republic of Sri Lanka, vide an agreement between Exim Bank and Government of the Democratic Socialist Republic of Sri Lanka. The Credit Agreement under the LOC is effective from 3 October, 2008 and date of execution of Agreement is 23 July, 2008.

A.P. (DIR Series) Circular No.29 Dated 05.11.2008- Exim Bank's Line of Credit of USD 10.59 million to Government of Suriname

Exim bank has provided a Line of Credit (LOC) of USD 10.59 million to Government of Suriname for financing eligible goods and services including consultancy services from India pertaining to purchases from Indian companies Viz. BEL,HAL and Ordinance Factory Board in Suriname vide an agreement concluded between Exim Bank and Government of Cote d'Ivoire. The Credit Agreement under the LOC is effective from 3 October, 2008 and date of execution of Agreement is 18 June, 2008.

A.P. (DIR Series) Circular No. 28 Dated 05.11.2008 - Exim Bank's Line of Credit of USD 30 million to the African Export-Import Bank (Afreximbank)

A Line of Credit (LOC) of USD 30 million has been made available to the African Export-Import Bank in order to facilitate purchase of capital and engineering goods, industrial manufactures, consumer durables and services and other items from India by Buyers in any of the Afreximbank's Member States. The Credit Agreement under the LOC is effective from September 22, 2008 and date of execution of Agreement is March 20, 2008.

RBI Press Release No. 2008-2009/603 Dated 01.11.2008 - RBI announces Further Measures for Monetary and Liquidity Management

On review of the current and evolving macroeconomic situation and liquidity conditions in the global and domestic financial markets RBI has decided to reduce the repo rate under the Liquidity Adjustment Facility (LAF) by 50 basis points to 7.5 per cent with effect from November 3, 2008. The cash reserve ratio (CRR) of scheduled banks has also been reduced by 100 basis points from 6.5 per cent to 5.5 per cent of net demand and time liabilities (NDTL), which will be effected in two stages.

In order to provide further comfort on liquidity and to impart flexibility in liquidity management to banks, it has been decided to introduce a special refinance facility under Reserve Bank of India Act, 1934 and Statutory Liquidity Ratio (SLR) has been reduced to 24 per cent of NDTL with effect from the fortnight beginning November 8, 2008.

• DIRECTORATE GENERAL OF FOREIGN TRADE

DGFT Policy Circular No. 37(RE-08)/2004-2009 Dated 31.10.2008 -Guidelines for import of Rough Marble Blocks/Slabs for the year 2008-09

It has been clarified by the DGFT vide amendment to the previous circulars pertaining to the guidelines for import of rough marble blocks/slabs for the year 2008-09, that these licences shall be subject to the specified floor price provided therein, which shall be endorsed on all licences.