• MINISTRY OF COMMERCE

DGFT

Policy Circular No. 27 (RE-2010)/2009-14 Dated 01.04.2011 Conditions and modalities for registration of contracts of cotton yarn with DGFT

DGFT has prescribed the Procedure for registration of contracts required for the export of cotton yarn which has been made "Free" subject to registration of export contracts with DGFT, for ITC(HS) Code 5205, 5206 & 5207. Accordingly, all applications for grant of registration certificate is required to submitted to the concerned RAs alongwith the requisite documents provided therein. If the documents received are found in order, the applicant shall be issued a Registration Certificate and export against such registration certificate is required to be completed within a period of 30 days from the date of issuance.

However, failure to export within the stipulated time would invite debarment from further registration. In addition, penal action as per Section 11(2) of the Foreign Trade(D&R) Act would be initiated .

Notification No. 39(RE-2010)/2009-2014 Dated 31.03.2011 Amendments to the Schedule 1 (Imports) of the ITC (HS) Classifications of E regarding Import policy of Vehicles

The sale of vehicles imported by Foreign Diplomats and Other Privileged Persons has been permitted to other non privileged persons in the manner specified in Foreign Privileged Persons (Regulation of Customs Privileges) Rules, 1957, vide amendment lifting up the restriction imposed on the sale in India except to another diplomat or privileged person.

Notification No. 40/(RE-2010)/2009-2014 Dated 31.03.2011 Removal of restriction on export of cotton yarn

The export of cotton yarn (Tariff Codes 5205, 5206 & 5207) was earlier 'Restricted' with export allowed against licence. Now, the export of cotton yarn has been made 'Free' subject to registration of export contracts with DGFT.

Notification No. 41/(RE-2010)/2009-2014 Dated 31.03.2011 Minimum Export Price of Onions

Minimum Export Price (MEP) of onions other than Bangalore Rose Onions and Krishnapuram onions will be US$ 170 per Metric Ton F.O.B. It was US$ 225 per Metric Ton as notified on 23.03.2011. There shall be no change in the MEP of Bangalore Rose Onion and Krishnapuram onion which continues to be USD 600 per Metric Ton F.O.B.

Public Notice No. 45/(RE-2010)2009-2014 Dated 31.03.2011 Non-availability of DEPB benefit on export of Cotton

This Public Notice provides that DEPB benefit on export of cotton shall not be available and DEPB benefit on export of cotton yarn stands withdrawn with effect from 21.4.2010, therefore, DEPB benefit on cotton (the basic raw material for cotton yarn) has been disallowed for exports made from 21.4.2010 onwards.

Public Notice No. 42/(RE-2010)2009-2014 Dated 30.03.2011 Amendments to the Handbook of Procedures, Volume 1 (Appendices and Aayat Niryat Forms), 2009-14 - Aayat Niryat Form ANF 2E stands replaced with the 2E (ANF 2E)

Based on feedback received from exporters, a simplified, rationalized and easy to fill ANF 2E (Prescribed application form for export licence for SCOMET items) has been designed which includes a revised Declaration / Undertaking. Guidelines for Applicants too have been made exhaustive with a view to facilitate filling of the form. New ANF 2E provided therein has been made applicable w.e.f. 1.4.2011. All applications for export of SCOMET items filed from 1.4.2011 onwards are required to be filed in the new ANF 2E.

Notification No. 38/(RE-2010)/2009-2014 Dated 31.03.2011 Notifies list of specified goods, services and technologies, i.e. Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) regulated as per conditions enumerated therein

The Chapter IV A of the Foreign Trade (Development & Regulation) Act, 1992 deals with controls on export of specified goods, services and technologies and empowers the Central Government to notify list of such goods, services and technologies. Accordingly, DGFT has list down the goods, services and technologies to which provisions of Chapter IV A of the Foreign Trade (Development & Regulation) Act, 1992 as amended in 2010 shall apply. The 'Appendix 3' to Schedule 2 of ITC (HS) Classifications of Export and Import Items, popularly known as SCOMET List, would accordingly be replaced by the list provided therrin.

• PRESS INFORMATION BUREAU

Department / Board PIB Dated 31.03.2011 Consolidated FDI Policy (effective from the 01.04.2011) 

Third edition of the Consolidated FDI Policy has been released by the department incorporating major changes relating to :

(i) Pricing of Convertible instruments ; Instead of specifying the price of convertible instruments upfront, companies will now have the option of prescribing a conversion formula, subject to the FEMA/ SEBI guidelines on pricing.

(ii) Inclusion of fresh items for issue of shares against non-cash considerations Government has now decided to permit issue of equity, under the Government route, in the following cases, subject to specific conditions :

(a) import of capital goods/ machinery/ equipment (including second-hand machinery)

(b) pre-operative/ pre-incorporation

(iii) Removal of the condition of prior approval in case of existing joint ventures/ technical collaborations in the 'same field"

(iv) Guidelines relating to down-stream investments ; The earlier categorisation of 'investing companies', 'operating companies' and 'investing-cum-operating companies' has been done away with categorisation as 'companies owned or controlled by foreign investors' and 'companies owned and controlled by Indian residents'.

(v) Development of Seeds - FDI will now be permitted in the agriculture sector in the development and production of seeds and planting material, without the stipulation of having to do so under 'controlled conditions'.

• RESERVE BANK OF INDIA

A.P. DIR (Series)

Circular No. A.P. (DIR Series) Circular No. 48 Dated 05.04.2011 Acquisition of credit card/debit card transactions in India by overseas banks - payments for airline tickets

RBI has clarified that the practice of using overseas banks for settlement of INR transactions on account of sale of air tickets in India as adopted by foreign airlines in certain cases where the payment for the tickets are made by the residents using credit /debit card is not in conformity with the extant provisions of the Foreign Exchange Management Act, 1999. Therefore, the foreign airlines has been advised to discontinue immediately.

DBOD

Circular No. DBOD.No.Leg.BC.83/09.07.005/2010-11 Dated 30.03.2011 The Banking Companies (Nomination) Rules, 1985- Clarifications

RBI has clarified that signatures of the accountholders in nomination forms DA1, DA2 and DA3 ,prescribed in the Nomination Rules, need not be attested by witnesses. Further clarified that nomination facility is available for joint deposit accounts also. Banks has been instructed to ensure that their branches offer nomination facility to all deposit accounts including joint accounts opened by the customers.

• MINISTRY OF POWER

Notification No. Eco 1/2011-CERC Dated 31.03.2011 Notifies the rates and other parameters for the purpose of bid evaluation and payment

The Central Electricity Regulatory Commission has notified rates and other parameters for the purpose of bid evaluation and payment in pursuance of Notification on Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees

Notification No. L-1/44/2010-CERC Dated 31.03.2011 Notify that the Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2010 shall come into force with effect from 01.07.2011

It has been notified that Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2010 shall come into force with effect from 1st July, 2011.

• SECURITIES AND EXCHANGE BOARD OF INDIA

FII

Circular No. CIR/IMD/FIIC/5/2011 Dated 31.03.2011 FII Investment in corporate bonds infra long term category

The existing limit of USD 5 billion for investment by FIIs in corporate bonds issued by companies in the infrastructure sector with a residual maturity of over five years has been increased by an additional limit of USD 20 billion taking the total limit to USD 25 billion. The FIIs shall now be eligible to invest in unlisted bonds issued by companies in the infrastructure sector that are generally organised in the form of special purpose vehicles and investments in such bonds shal+l have a minimum lock-in period of three years. However, during the lock-in period, FIIs will be allowed to trade amongst themselves. During the lock-in period, the investments cannot however, be sold to domestic investors.

• MINISTRY OF FINANCE

CBDT

Notification No. 16/2011 Dated 29.03.2011 Income tax (Second Amendment) Rules, 2011

CBDT has Substituted rule 28AA dealing with Certificate for deduction at lower rates or no deduction of tax from income other than dividends and rule 31 A (Notification annexed) to registration of export contracts with DGFT.

Notification No. 19/2011 Dated 05.04.2011 Income-tax (Fourth Amendment) Rules, 2011 - Substitutes Rule 5D & Form No.3CF-I

CBDT has substituted the Form No.3CF-I and rule 5D of the Income-tax Rule dealing with the conditions subject to which approval is to be granted to a research association under clause (ii) or clause (iii) of of section 35(1) vide Income-tax (Fourth Amendment) Rules, 2011. 

Circular No. 01/2011 Dated 06.04.2011 Income-tax Explanatory Notes to the provisions of the Finance Act, 2010

CBDT has issued circular 1/2011 Dated 6th April, 2011 explaining the substance of the provisions of the Finance Act, 2010 relating to direct taxes. 

CBEC Excise Non-Tariff

Notification No. 13/2011-(N.T) Dated 31.03.2011 CENVAT Credit (Third Amendment) Rules, 2011

CBEC has substituted the Rule 7 of the CENVAT Credit Rules, 2004, rule substituted provides that the CENVAT credit in respect of input service shall be allowed, on or after the day on which the invoice, bill or, as the case may be, challan referred to in rule 9 is received subject to condition provided therein. 

Service tax

Notification No. 22/2011 Dated 31.03.2011 Export of Services (Second Amendment) Rules, 2011

Taxable services specified in sub-clauses "(zzh)" of clause (105) of section 65 of the Finance Act, 1994 stands omitted from rule 3 of the principle rule vide Export of Services Rules, 2005 w.e.f 1st day of April, 2011. 

Notification No. 25/2011 Dated 31.03.2011 Point of Taxation (Amendment) Rules, 2011

The department has amended the Point of Taxation Rules, 2011 clarifying the procedure prescribed for determination of point of taxation vide Point of Taxation (Amendment) Rules, 2011 ( File Attached)

Notification No. 28/2011 Dated 01.04.2011 Notified Continuous supply of service for the purpose of Point of Taxation Rules, 2011

Taxable services referred to in clauses (zzq), (zzzh), (zzzx), (zzzu) and (zzzza) of section 65(105) of the Finance Act has been notified to be treated as continuous supply of service, for the purpose of Point of Taxation Rules, 2011. 

Circular from file No. 134 /3 / 2011 - ST Dated 08.04.2011 Wherever service tax is NIL by virtue of exemption, Education Cess would also be NIL: CBEC

CBEC has directed the field formations to not to initiate proceedings to recover the education cess, where 'whole of service tax' stands exempted stating that education Cess ,collected as percentage of service tax, would also be NIL wherever service tax is NIL by virtue of exemption.

• MINISTRY OF CORPORATE AFFAIRS

Circular No. 09/2011 Dated 31.03.2011 Filing of Balance Sheet and Profit & Loss Account for the year 2010-11 mandated to be in XBRL mode

MCA has mandated all companies listed in India & their subsidiaries, including overseas subsidiaries and companies having a paid up capital of Rs. 5 Cr or a Turnover of Rs 100 Cr to file balance sheets and profit & loss account for the year 2010-11 onwards by using XBRL taxonomy.

Circular No. 12/2011 Dated 07.04.2011 Clarification regarding Easy Exit Scheme (EES)

MCA has issued the revised simplified procedures for dealing with applications under Easy Exit Scheme (EES), 2011

Circular No. 11/2011 Dated 07.04.2011 Allotment of Director Identification Number (DIN) under Companies Act, 1956

In order to examine DIN-4 eform through the system and to avoid duplicate DIN, MCA has mandated all existing DIN holders who have not furnished their PAN earlier at the time of obtaining DIN to furnish their PAN by filing DIN-4 eform by 31St May, 2011.

CBEC Customs

Circular No. 17/2011 Dated 08.04.2011 Implementation of 'Self-Assessment' in Customs proposed by the Finance Bill, 2011

CBEC has clarified that all Bills of Entry or Shipping Bills which have been presented either electronically or manually before the date of enactment of the Finance Bill shall be governed by provisions of erstwhile Section 17 or Section 18 of the Customs Act, 1962., as changes will take some time and till then, the existing Regulations and forms shall continue to apply to the extent these do not conflict with the amended statutory provisions that come into force from the date of enactment of the Finance Bill, 2011.

Circular No. 18/2011 Dated 08.04.2011 Revision in the Customs part of Arrival Card for Passengers in Form 'D' - Notification issued by Ministry of Home Affairs - Compliance - reg.

It has been clarified that the new arrival card vide Ministry of Home Affairs Notification No. GSR 113(E) dated 24.02.2011 should also be used by the Customs Authorities at Land Customs Station or the Sea Port. In this regard, it is further clarified that against the Column 'Flight Number', it can be mentioned either as "Not Applicable" or details of train / vessel could be filled in.

Notification No. L-3(2)/Regln-Gen.(Amdt)/2009-10/CCI Dated 31.03.2011 Competition Commission of India (General) Amendment Regulations, 2011

The Competition Commission of India has amended the Competition Commission of India (General) Regulations, 2009. Accordingly, amended the regulation relating to Investigation by Director General,Reference by the Commission to statutory authority for opinion, Manner of making submissions or arguments by parties before Commission,Procedure for imposition of penalty under the Act and procedures annexed thereto.

• MINISTRY OF LAW AND JUSTICE

Legislative

Resolution No. 1(42)/2004-Leg-I Dated 08.04.2011 Constitution of the joint Drafting committee to prepare draft of the Lok Pal Bill

The government of India has constituted a joint Drafting committee to prepare draft of the Lok Pal Bill, consisting of five nominee minister of the Government and five nominees of Shri Anna Hazare (including himself).