• DIRECT TAXATION

Notification No. 28/2009 Dated 16.03.2009 - Income-tax (Sixth Amendment) Rules, 2009

CBDT in exercise of the power conferred under Income-tax Act, 1961, put in place provisions regarding Credit for tax deducted at source for the purposes of section 199 to the Income-tax Rules, 1962, vide Income-tax (Sixth Amendment) Rules, 2009. The said provision will come into effect from the 1st April, 2009.

Notification No. 24/2009 Dated 12.03.2009 - Income-Tax (Fifth Amendment) Rules, 2009 - Amends Income Tax Rules For PF Trusts

CBDT substitutes the table prescribing the manner of investment of recognised provident fund's money provided by the Income-tax Rules, 1962 vide Income-Tax (Fifth Amendment) Rules, 2009. The said amendment will come into force with effect from the first day of April. 2009.

• INDIRECT TAXATION

CBEC Excise Instruction From File No. 267/16/2009-CX-8 Dated 12.03.2009-Pre and post audit of abatement orders in terms of Rule 10 of Pan Masala Packing Machine Rules, 2008- clarification regarding

In terms of Pan Masala Packing Machine Rules, 2008 the abatement of duty is to be given , in case factory did not produce notified goods during any continuous period of 15 days or more. It has been clarified by the board that the abatement order referred above being in nature of refund, are required to be subjected to the same administrative procedure of pre and post audit as laid down by the Board from time-to-time regarding refund and therefore, all circulars of Board issued in relation to pre and post audit of refund/ rebate claims will thus apply mutatis mutandis to the abatement orders also.

Service Tax Circular No. 112/06/2009-ST Dated 12.03.2009 - Filing of claim for refund of service tax paid under notification no. 41/2007-ST dated 6.10.2007

CBEC issues clarifications to resolve the procedural difficulties arising in implementation of refund scheme provided by the notification No. 41/2007. It has been clarified that refund claim filed within revised limitation period would be admissible if it is otherwise in order and while granting refund deduction should not be made in respect of the deductions made by the banks from export remittances, in lieu of services provided by bank. It is further clarified that refund is not admissible on such services received prior to the date they are notified in the notification providing exemption through the route of refund.

CBEC Customs Circular No.12/2009 Dated 12.03.2009 -Clarification on levy of National Calamity Contingent Duty (NCCD) on Cellular /mobile Phones on the basis of MRP / Retail Sale Price

It has been clarified that consequent to changes made to the Harmonized System of Nomenclature (HSN), the First Schedule to the Customs Tariff Act, 1975 was also revised in order to include both 'line telephones' and 'telephones for cellular networks or for other wireless networks' under heading 8517 as 'Telephone sets, including telephones for cellular networks or for other wireless networks'. Further, no changes have been made so as to remove cellular / mobile phones from the scope of MRP based assessment. Therefore, they would continue to be assessed for additional duties of customs on the basis of MRP /RSP. Accordingly, NCCD, being a duty of excise, is also required to be collected on the basis of MRP / RSP, in the same manner as applicable to the levy of additional duty under section 3 (2) of the Customs Tariff Act,1975.

• DIRECTORATE GENERAL OF FOREIGN TRADE

Policy Circular No. 70 (RE-2008)2004-2009 Dated 16.03.2009 -Import of restricted item(s) against transferred DFIA

DGFT in terms of the of paragraph 4.4.3 to be read with paragraph 4.1.13 of FTP and paragraph 4.12 and 4.72 of HBP v.1 provides that restricted items (other than prohibited items and the items reserved for import by State Trading Enterprises or otherwise specifically mentioned for the purpose) can be imported against the transferred DFIAs without the requirement of a separate import licence / authorisation provided, that the exports have been completed prior to the effective date of restriction on imports.

• RESERVE BANK OF INDIA

A. P. (DIR Series) Circular No. 58 Dated 13.03.2009 - Buyback / Prepayment of Foreign Currency Convertible Bonds (FCCB s)

RBI decides to extend the date for completing the entire procedure for buyback of FCCBs from March 31, 2009 to December 31, 2009. Consequently, the whole procedure of buyback should be completed by December 31, 2009. All the other terms and conditions of buyback / prepayment of FCCBs previously stipulated will remain unchanged.

A. P. (DIR Series) Circular No. 57 Dated 09.03.2009 - Memorandum of Instructions governing money changing activities

RBI revises the instructions governing money changing activities issued to AMCs , in order to rationalise the existing instructions pertaining to money changing activities in line with the growth in money changing activities and issuance of several instructions including AML Guidelines on money changing activities. The revised instructions relating to money changing activities issued to AMCs are provided therein.

DBOD.No.Leg.BC.114 /09.07.005/2008-09 Dated 09.03.2009 - Banking Companies (Nomination) Rules, 1985 - Acknowledgement of Nomination and indicating the Name of the Nominee in Pass Books / Fixed Deposit Receipts

It has been advised to the Banks to deploy a proper system of acknowledging the receipt of the duly completed form of nomination, cancellation and / or variation of the nomination in compliance of the provisions of Banking Regulation Act, 1949. Such acknowledgement should be made available to the customer irrespective of the fact customers demanded for it or not. Further banks are advised to indicate the name of the Nominee in the Pass Books / Statement of Accounts / FDRs in addition to the legend "Nomination Registered", in case the customer is agreed to it.

• INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Circular No. IRDA/42/ACTL/EM/2008-09 Dated 13.03.2009- Expense management of life insurance companies

In order to procure durable business and position them on a strong footing, IRDA instructs life insurers to provide details of all yearly payments made by the company to all intermediaries, except individual agents in a separate table, as given in the Proforma provided therein. The table provided therein requied to indicate the total amount of business procured by the life insurer during the relevant period and jointly signed by the CEO. CFO and Compliance Officer.

• TELECOM REGULATORY AUTHORITY OF INDIA

Press Release No. 29/2009 Dated 17.03.2009-TRAI's new Interconnection Regulations for broadcasting sector to ensure non-discriminatory access to content

The Telecommunication (Broadcasting and Cable Services) Interconnection (Fifth Amendment) Regulations, 2009 has been issued by the TRAI. The said amendment makes it mandatory for all interconnect agreements to be reduced to writing and bars distributor of TV channels from seeking signals for those channels in respect of which carriage fee is being demanded by the distributor of TV channels. However, distributor of TV channels may charge a fee for placement of the channel of a broadcaster vis-à-vis channels of other broadcasters on its distribution platform. The terms and conditions which should compulsorily form part of a Reference Interconnect Offer for DTH or any other addressable system, such as Voluntary CAS, IPTV, HITS etc., have also been prescribed therein.

Press Release No. 27/2009 Dated 12.03.2009 -TRAI recommends Three year Lock-in period for Promoter's Equity and related conditions for Unified Access Service Licensees (UASL)

TRAI releases recommendation on Lock-in period for Promoter's Equity and other conditionalities for Unified Access Service Licensees (UASL), with the purpose of suggesting measures to block the unearned gains arising from transaction in stakes of promoters particularly when the value of spectrum is not getting correctly reflected in the entry fee. It has also attempted to address the need for stability, competitiveness and positive environment for investment from domestic and foreign sources. The said amendment strikes to maintain a level playing field, ensure efficient utilization of spectrum and transparency in the system while fostering growth in telecom sector.

Press Release No. 26/2009 Dated 12.03.2009- TRAI issues an amendment to the Quality of Service Regulations for Direct to Home Services

TRAI issues the regulation amending Direct to Home Broadcasting Services (Standards of Quality of Service and Redressal of Grievances) Regulations, 2007, and thereby, lays down the standards of quality of direct to home services and to protect the interests of subscribers. Consequently, along with the other changes incorporated by the amendment, DTH operators have been prohibited from charging any fee towards visiting charges or repair and maintenance charges of DTH Consumer Premises Equipment during the period of warranty and at the same time they cannot change the composition of their subscription packages during first six months of enrolment to the subscription package or during the period of validity of a prepaid subscription package, whichever is longer.