• DIRECT TAXATION

CBDT

Notification No. 23/2010 Dated 08.04.2010 - Income-tax (Second Amendment) Rules, 2010

This rule would have retrospective effect i.e. from October 1, 2009. Insertion of sub- part “H. Determination of fair market value of the property other than immovable property” with new rules '11U. Meaning of expressions used in determination of fair market value.' and '11UA. Determination of Fair Market Value' providing for the methods to determine the (a) valuation of Jewellery; (b) valuation of archeological collections, drawings, paintings, sculptures or any work of art; and (c) valuation of shares and securities.

• CUSTOMS

Circular No. 09/2010 Dated 08.04.2010 - Issue of Custom House Agent License

CBEC, on references from certain field formations facing difficulties in issuance of (CHA) licenses to eligible persons, has decided against fixing a numeric criterion governing the number of CHA licenses being issued with regard to fixing of minimum number of CHAs required in a Customs station. On the issue of employment of a person by a CHA, the Board decided that the DC/AC concerned will ensure that individuals involved in any fraudulent activity shall not be allowed to be employed by a CHA for transacting business with Customs and necessary undertaking in this regard may also be taken from the CHA at the time of submission of application giving details of the person to be employed by them.

The Board further clarified that in case of CHAs operating on ‘C’ form intimation basis, if any of such CHA is found to have violated any provision of the CHALR, 2004 at any customs station, the suspension action against CHA’s operations may be taken by the Commissioner of Customs at the station who issued the CHA license. Further it has been decided by the Board to put in place the “Know Your Customer (KYC)” guidelines for CHAs so that they are not used intentionally or unintentionally by importers / exporters who indulge in fraudulent activities. On the issue of time limit for completion of suspension proceedings, the Board has prescribed an overall time limit of nine months from the date of receipt of offence report and in case of some serious offences certain procedures have been removed. With regard to the issue of CHA licenses in respect of individuals who had passed the examination under CHALR, 1984, the Board decided to conduct written examination for these persons on certain additional subjects. 

CBEC

Notification No. 30/2010 Customs (N.T.) Dated 08.04.2010 - Customs House Agents Licensing (Amendment) Regulations, 2010

Set to amend the Customs House Agents Licensing Regulations, 2004 in the specified regulations. In Regulation 8, relating to passing of examination by a person to be eligible to get license, has been changed amending certain words and also a new sub-regulation (9) has been inserted. In regulation 13 sub-regulation (o) has been inserted relating to verification of antecedents of the person applying for license. In regulation 20, relating to suspension of license sub-regulation (2) has been changed with certain qualifying words and a new sub-regulation (3) has been inserted. In regulation 22, relating to the grounds of suspension of revocation of license, sub-regulation (1), (5), (6) and (7) has been changed with respect to certain phrases and a proviso to sub-regulation (1) is inserted.      

• SECURITIES AND EXCHANGE BOARD OF INDIA

Circular No. CIR/CFD/DIL/1/2010 Dated 05.04.2010 - Amendments to the Equity Listing Agreement

SEBI has specified certain listing conditions thereby amending the Equity Listing Agreement in order to bring more transparency in the governance of listed entities. It has been decided that while submitting the scheme of amalgamation or merger, etc. to the stock exchange, the listing entities shall submit an auditors' report for compliance with applicable accounting standards. The listed entities are required to disclose their financial results within 45 days of the end of every quarter and those having subsidiary are provided an option to submit their consolidated financial results either in accordance with the accounting standards specified in section 211(3C) of the Companies Act, 1956, or in accordance with IFRS. It has been further decided that limited review/statutory audit reports shall be given only by those auditors who have subjected themselves to the peer review process of ICAI and who hold a valid certificate issued by the 'Peer Review Board' of the said Institute. The Board has also required the interim disclosure of balance sheet and has prescribed certain modifications in formats of limited review report and statutory auditor's report. The appointment of the CFO is required to be approved by the Audit Committee before finalization of the same by the management.

• PRESS INFORMATION BUREAU

PIB dated 28.03.2010 – India Signs Economic Cooperation Agreement with Finland

An Agreement on Economic Cooperation has been signed between India and Finland at Helsinki on 26th March, 2010. The Agreement seeks to replace an earlier Agreement signed in 1967. The Agreement seeks to deepen the engagement between the two countries through exchanges of investors, information and experts and by developing opportunities for the two countries by exploring joint economic possibilities in third countries. A Joint Commission consisting of experts will be set up under this Agreement and both parties have decided to set up three Joint Working Groups in the areas of Innovation, Clean Technology and waste management and skill Development and Training. The Union minister stated that Indian MSME sector and Finnish small industries should use each other's strengths to make India a manufacturing hub for tech-rich industries and invited the Finnish industry to Invest in Institutes of Excellence and skill imparting centres in India.