• DIRECT TAXATION

Notification No. 77/2008 Dated 08.07.2008 -Approval to Electrical Research and Development Association, Mumbai, for the purpose of section 35(1)(ii) of the Income-tax Act, 1961

The organization Electrical Research & Development Association, Mumbai, has been approved by the Central Government for the purpose of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 read with Rules 5C and 5E of the Income-tax Rules, 1962 with effect from 1-4-2004 in the category of other Institution, partly engaged in research activities subject to conditions that (i) the sums paid to the approved organization shall be utilized for scientific research; (ii) the approved organization shall carry out scientific research through its faculty members or its enrolled students; (iii) the approved organization shall maintain separate books of account in respect of the sums received by it for scientific research and that the approved organization shall maintain a separate statement of donations received.

Press Release from File No. 402/92/2006-MC (33 of 2008) Dated - 18.07.2008 IT Returns To Be Filed Without TDS Certificates

In order to facilitate tax-payers to file returns in the electronic mode, return forms for the assessment year 2008-09 have been made annexure-less. It is clarified that TDS/ TCS certificates are not required to be annexed to the returns of income and no disallowance of claim for TDS/TCS can be made by the assessing officer only on the ground of non filing of the TDS/TCS certificates along with the return of income.

Circular No. 5/2008 Dated 14.7.2008 - Mandatory E-Payment Of Taxes

CBDT has notified categories of taxpayers who are mandatorily required to electronically pay taxes and in order to enable electronic payment of taxes by different categories of taxpayers, it is clarifies that a taxpayer can make electronic payment of taxes from the account of any other person. The challan for making such payment is required to clearly specify the Permanent Account Number (PAN) of the taxpayer on whose behalf the payment is to be made.

• INDIRECT TAXATION

Excise

Notification No. 44/2008 Dated 16.07.2008- Rescinds Notification No. 38/2007-Central Excise, dated the 19th December, 2007

Central Government rescinds No.38/2007-Central Excise, wherein, it Specifies Goods Excisable in Pursuance of Rule 15 of the Central Excise Rules, 2002 and fixes the rate of duty per packing machine per month, based on retail sale price printed on such goods.

• PRESS INFORMATION BUREAU

Dated 09.07.2008 - National Policy on skill development on the anvil

A National Skill Development policy aimed at empowering all individuals through improved skills, knowledge and internationally recognized qualifications to enable them access to decent employment and to promote inclusive national growth is being proposed by the government. The policy addresses the issues related to demand and supply, equity and access to ensure that skill development is inclusive in terms of gender, social divide, the location-divide (rural-urban), economic divide, difficult regions such as borders areas, hill areas etc.

Dated 10.07.2008 - Agreement between the government of India and the International Atomic Energy

The government has notified the agreement between the government of India and the International Atomic Energy Agency for the application of safeguards to civilian nuclear facilities. The purpose of safeguards under this Agreement is to guard against withdrawal of safeguarded nuclear material from civilian use at any time and is intended to facilitate implementation of relevant bilateral or multilateral arrangements to which India is a party, which are essential to the accomplishment of the objective of this Agreement.

• RESERVE BANK OF INDIA

Circular No. A.P. (DIR Series) No. 01 Dated 11.07.2008 -Security for External Commercial Borrowings - Liberalisation

As per the revised ECB guidelines, it has been decided to allow AD Category - I banks to convey 'no objection' under the Foreign Exchange Management Act (FEMA), 1999 for creation of charge on immovable assets, financial securities and issue of corporate or personal guarantees in favour of overseas lender / security trustee, to secure the ECB to be raised by the borrower, subject to specified conditions.

Circular No. UBD.PCB .No.4 /09.18.201/08-09 Dated 15.07.2008 -Instruments for Augmenting Capital Funds-UCBs

In order to facilitate raising of capital funds (Tier I and Tier II) by UCBs (Urban Co-operative Banks) for the purpose of compliance with the prescribed Capital Adequacy norms, it has been decided to permit UCBs to issue financial instruments such as Preference shares and also to permit Long Term Deposits. Accordingly, UCBs may be permitted to raise term deposits for a minimum period of not less than 5 years.

Circular No. RPCD. No.PLFS.BC. 11/05.04.02/2008-09 Dated 14.07.2008-Union Budget - 2008-09 - Proposal for continuation of 2 per cent interest subvention scheme for short-term crop loans in 2008-09

In pursuance of the announcement made by the Finance Minister, Government provides interest subvention of 2% p.a. to Public Sector Banks in respect of short-term production credit up to Rs.3 lakh provided to farmers. The amount of subvention will be calculated on the amount of the crop loan disbursed from the date of disbursement/drawal up to the date of payment or up to the date beyond which the outstanding loan becomes overdue.

Circular No. UBD. PCB. No.4 /09.18.201/08-09 -Dated 15.07.2008 -Instruments for Augmenting Capital Funds-UCBs

Reserve Bank has constituted a Working Group to study the issues relating to raising of capital by UCBs and identifying alternate instruments / avenues for augmenting their capital funds. After examining recommendations of the Working Group ,it has been decided to permit UCBs to issue specified financial instruments, in order to facilitate raising of capital funds (Tier I and Tier II) by UCBs for the purpose of compliance with the prescribed Capital Adequacy norms.

RBI provides detailed guidelines relating to specified Preference shares and Long Term Deposits that can issued by the UCBs.

• ENVIRONMENT AND FORESTS

Draft Notification Dated 09.07.2008-Draft Notification on 'Regulatory Framework for Conservation of Wetlands'

The Ministry of Environment and Forests has come up with a draft regulatory framework for conservation of wetlands. The draft framework enlists some of the activities which are prohibited and others which need to be regulated. Categorization of wetlands has also been proposed on the basis of significance of the functions performed and for determining the extent and level of regulation. The draft regulation also talks about central, state, district conservation committees, their functions and powers, enforcement of regulatory activities, etc.

• TELECOM REGULATORY AUTHORITY OF INDIA

Press Release No. 64/2008 Dated 15.07.2008 -TRAI releases draft Recommendations on "Restructuring of Cable TV Sector"

Telecom Regulatory Authority of India issued draft recommendations on "Restructuring of Cable TV Services". The salient features of the Draft Recommendations include separate licensing framework for Local Cable TV Operators (LCOs) and Multi System Operators (MSOs), entry fee has been well defined for different area of operations, license has been prescribed for five years with well defined renewal procedures, administrative cess has been introduced for effective data collection and monitoring and framework for Grievance redressal of license seekers.

Press Release No. 63/2008 Dated 11.07.2008 - Recommendations on Allocation and Pricing for 2.32.4 GHz, 2.52.69 GHz & 3.33.6 GHz bands

TRAI has released Recommendations on Allocation and Pricing for 2.32.4 GHz, 2.52.69 GHz & 3.33.6 GHz bands. The recommendations include eligibility criteria for participating in the auction for the spectrum , reserve price and performance bank guarantee for 15 MHz of spectrum in the bands of 2.32.4GHz, 2.52.69GHz and 3.33.4GHz spectrum. Authority has decided to not to make any recommendation for 3.43.6GHz unless DoT assess the compatibility of satellite based services with the terrestrial BWA services and a detailed analysis is done in a transparent and time bound manner.

• CORPORATE AFFAIRS

General Circular No. 1 /2008 Dated 01.07.2008-Rescission of General Circular No.13 of 2007 dated 27-9-2007

General Circular NO.13 of 2007 dated 27th September, 2007 which came into effect from 27th October, 2007 had permitted Registrar of Companies to condone the delay beyond the prescribed period of 60 days and 30 days on all documents relating to registration, modification and satisfaction of charges up to a period of 300 days from the date of event by levying additional fee. The above circular is rescinded and as per the new order, the decisions taken by the Ministry under said circular will be in force up to midnight of 5th July 2008 and the procedure for seeking condonation of delay in terms of Section 141 of the Companies Act, 1956 as it stood prior to 27-10-2007 would come into force from 6th July 2008.

• DIRECTORATE GENERAL OF FOREIGN TRADE

Policy Circular No. 22 (RE-2008)/2004-2009 Dated 18.07.2008- Requirement of endorsement of specific ITC(HS) Code against each input allowed as per Standard Input Output Norms (SION) under Export Promotion Schemes such as Advance Authorization, DFRC, DFIA etc- Regarding.

DGFT has decided that the ITC(HS) Code endorsement by Regional Authority against each input under the aforesaid Schemes shall continue and place responsibility on the of the exporters to declare the correct ITC(HS) Code. RAs based on the representation of Authorization Holder(s) can examine and allow corrections in ITC(HS) Code, even subsequent to issuance of these scrips/ endorsement of transferability. However, Customs can determine the correct ITC(HS) Code number of the items of import and allow clearance after assessment during examination of cargo/ shipping documents.

Policy Circular No. 21(Re-08)/2004-09 Dated 17.07.08- Payments received in Indian Rupees by Tourist Transport Operator which would be regarded as foreign exchange earned for the purpose of EO under EPCG Scheme

DGFT has specified types of payments received in Indian Rupees by tourist transport operator that will be considered for discharge of EO under EPCG Scheme in addition to the direct earning of Foreign Exchange, While examining the representations made regarding acceptance of payment received in Indian rupees for discharge of export obligation under EPCG scheme By Tourist Transport Operators.

Policy Circular No. 20(RE-08)/2004-2009 Dated 16.07.2008 -Documents/ verification required to establish eligibility and entitlement of units for import of rough marble blocks/slabs under Policy Circular No.13 (RE-08)/ 2004-2009 dated 30.6.2008

DGFT provide the list of the documents that applicants are required to submit along with their application for establishment of eligibility and entitlement of the unit, in order to provide clarifications sought by the Representations made to the department regarding eligibility and entitlement of units for import of rough marble blocks/slabs for the year 2008-09, as per Policy Circular No.13 dated 30.6.2008.

Policy Circular No. 18(RE-08)/2004-2009 Dated 10.07.2008- Ban on export of Maize - Notification 22 dated 3.7.2008 - Clarification reg

DGFT has prohibited the export of maize till 15.10.2008 and Exports under Transitional Arrangements under Para 1.5 of Foreign Trade Policy 2004-09 was also prohibited vide Notification no. 22. It is clarified by the DGFT that all exports covered under Para 9.12 of handbook of Procedures (Volume 1) as detailed under Para 9.12 of Handbook of Procedures (Volume 1) shall be allowed.

• VALUE ADDED TAX

Haryana

Notification No.57/H.A. 6/2003/S. 59/2008 Dated 09.07.2008 Amendment to the Schedule A, B and D of the Haryana Value Added Tax, 2003

The Governor of Haryana amends the Schedules A, B and D appended to the Haryana Value Added Tax Act, 2003 (Act 6 of 2003),in exercise of the powers conferred by sub-section (1) of section 59 of the Haryana Value Added Tax Act, 2003.

Andhra Pradesh

Notification No. G.O.Ms. No. 818 Dated 30.06.2008 Amendment to the Schedule I and IV of the Andhra Pradesh Value Added Tax Act, 2005

The Government of Andhra Pradesh has made amendments to the First Schedule and Fourth Schedule appended to the Andhra Pradesh Value Added Tax Act, 2005. The amendments made to Schedule-I and IV under items-I (2) and II(1) shall be deemed effective from 01-04-2005 and all other amendments shall be deemed to have come into force on and with effect from 01-07-2008.