You have freedom of choice, but not freedom from taxes!
All,Freedom is neither a ‘buy 1 get 2 free’ package deal nor a
‘3 in 1’ shopping bag that we are so used to in the consumerist India that we are currently living in. It is a bundle of rights and obligations that we have bound ourselves to through the Constitution so that we may enjoy the fruits of the long struggle for independence with a sense of reverence to the old and responsibility to the young. Let us enjoy the freedom in a fiduciary capacity so that our future generations live in a country, free from materialistic and moral corruption.This issue of Lexspeak is a compilation of a few regulatory changes during the last fortnight. To read the earlier issues and articles
Sincerely, Lex Valorem Team
Establishment of Branch Offices (BO)
/ Liaison Offices (LO) in India by Foreign Entities
– Delegation of Powers
The Reserve Bank of India (RBI) in its circular has made relaxations in filing Annual Activity Certificates (AACs) for Branch Offices
/ Liaison Offices established in India by foreign entities. The AACs from the Auditors along with audited Balance sheet as at end of 31st March have to be filed on or before 30th September of same year. Previously it was on or after 30th April of the same year.
Borrowings (Policy) – Liberalisation
RBI has permitted corporate in Hotel, Hospital and Software sectors to avail ECB beyond USD 100 million under the Approval Route for foreign currency and
/ or Rupee capital expenditure for permissible end uses.
Rupee Export Credit Interest Rate
W.e.f. 1st April, 2010, RBI has extended interest subvention of 2% on rupee export credit to Jute and Leather manufacturing, Engineering Goods and Textiles for the FY 2010-11 on the existing terms and conditions.
Buyback / Prepayment of Foreign Currency Convertible Bonds (FCCBs)
The Reserve Bank of India (RBI) in its circular has decided to consider applications from Indian Companies allowed to buy back their Foreign Currency Convertible Bonds (FCCBs) under the approval route, until 30th June, 2011 instead of 30th June, 2010 subject to the issuers complying with the terms and conditions of buyback / prepayment of FCCBs.
Scheme of 1% interest subvention on housing loans upto Rs. 10 lakh
With the object of providing interest subsidy on Housing Loans to eligible borrowers in the middle and lower income groups the Reserve Bank of India (RBI) has issued guidelines for Scheduled Commercial Banks for implementing the scheme of 1% interest subvention on housing loans upto 10 Lakhs. Accordingly, housing loans sanctioned
/ disbursed up to 31st March, 2011 would be eligible under this scheme.
Administrative Control over Export Oriented Units by the Central Excise formations
The Directorate General of Export Promotion (DGEP) has decided to shift the administrative formation for EOUs (Including EHTP & STP) in the port cities, falling within the Customs formation to Excise formation for facilitating uniform and better administration
/ control of such EOUs. This change in formation will be not applicable to Bangalore Customs region.
SEBI Specifies the Model Equity Listing Agreement for SME issuer and
The Securities and Exchange Board of India (SEBI) has finalized and specified the Model Equity Listing Agreement to be executed between SME and Stock Exchanges. The SEBI has also decided to open dedicated exchanges and
/ or dedicated platforms of the exchanges for listing and trading of securities issued by SME.
Filing of return of VAT 100 electronically
The Commercial Tax Department, Government of Karnataka has notified amendment to the Karnataka Value Added Tax (VAT) Act, 2003 applicable to every dealer paying tax under Section 4 of the said Act has to submit every month, return in Form VAT 100 electronically on or before the 20th day of the succeeding month with effect from 31st July, 2010.
Note: The contents
of this News Letter are only a summary and has not dealt with
any issue in detail. Any action taken or proposed to be taken
must be in consultation with professionals and not merely based
on the articles / news updates. Lex Valorem disclaims all
liability on action taken without professional advice