Volume 2 Issue No. 26 / 2010 Lexspeak  January – 2011
Thought for the day
An optimist stays up until midnight to see the new year in. A pessimist stays up to make sure the old year leaves.” – Bill Vaughan
News from the Govt

RBI

CBEC

DGFT
INCOTERMS 2000

   International Commercial Terms


The Incoterms® rules are the International Chamber of Commerce (ICC) rules for the use of domestic and international trade terms.



International Commercial Term (Incoterm)

FAS (Free Alongside Ship)…. …Named Port of Shipment


Meaning


Seller delivers when the goods are placed alongside the vessel at the named port of shipment. The buyer has to bear all costs and risks of loss of or damage to the goods from that moment. Seller to clear the goods for export.

Statutory Compliance Chart

January 2011

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Reminders

05 Jan – ServiceTax Payment
– Monthly
07 Jan – TDS/TCS Payment

10 Jan – Excise Return

– Monthly

15 Jan – PF Monthly Payment

15 Jan
TDS Return for                 Oct-Dec Quarter
20 Jan – PT Payment20 Jan – VAT Payment
21 Jan – ESIC Payment

25 Jan – PF Return
– Monthly


“Good resolutions are simply checks that men draw on a bank where they have no account.”


Hello All,We are at the threshold of a decade gone by – looking back to see what was good and what could have been better but more importantly on our toes, peeping into the 1st year of the 2nd decade of the millennium, determined to unlearn, relearn and learn anew. Don’t panick, we shall not chronicle the events of the decade nor of the year that will draw to a close today – it is better left to the media and the fourth estate to rev up the good, bad and ugly and stoke the cinders of nostalgia in each of us.However, we would like to share with you the effervescence in the economy that we see and experience around us day in and day out – not on TV talk shows or interviews with corporate czars and wily politicians or statistics reported by the media or the rising stock and bullion prices but in the bustling bazaars & malls, growing urban periphery, fully-occupied office spaces, overflowing parking lots, jam packed streets, increasing number of entrepreneurs, swelling educational and training institutions, inviting eateries of diverse cuisines, work-out joints jostling for space with hospitals and what have you.  Just a year back there was a visible dip in all of this but today the ebullient spirit is back. Well, all this may not paint a bright picture of Bangalore or any other Indian city but it sure is an indicator of the escalating economy despite the inflationary prices amidst a season of scams.  It all depends on which side of the coin we would like to see – degeneration or rejuvenation ??  It can be the end of the road or the beginning of a new one, a new year, new opportunities, new hopes and new aspirations.

Wishing all of you a very happy, healthy, prosperous & peaceful New Year !

Amidst New Year wishes, do find time to catch up with the updates from RBI, Service tax, Central Excise, Customs & DGFT spanning several matters.

To read the earlier issues and articles

Click Here

Sincerely,
Lex Valorem Team


Know Your Customer (KYC) norms revised
RBI has directed banks to apply enhanced due diligence measures on higher risk customers viz., bullion dealers & jewelers. These “high risk accounts” will be monitored stringently under the Prevention of Money Laundering Rules, 2005 (full name of the rules runs into a paragraph…!)


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Issuance of Foreign Inward Remittance Certificate (FIRC) to NRE account holders
RBI has instructed the banks not to issue FIRC against remittance for credit to NRE Accounts. It has also clarified that if the proceeds of inward remittance received are remitted in foreign currency itself to the beneficiary’s banker, then FIRC is to be issued by the bank which has received the proceeds in foreign exchange.
Perhaps RBI will not insist on producing FIRC in case of FDI coming in through NRE account which needs to be reported.


Download Notification >>


Public Provident Fund (Amendment) Scheme, 2010
The Public Provident Fund (Amendment) Scheme, 2010 requires PPF accounts opened by HUFs prior to 1.05.2005 to be closed after expiry of 15 years and balance amount to be refunded. It also requires that balance amount be refunded to HUFs where the PPF accounts have already completed 15 years and in any case not later than 31.03.2011.


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Taxation of Packaged and Canned Software

1. Service Tax Notification No.53/21.12.2010 exempts right to use “packaged and canned software” from payment of service tax subject to certain conditions. Notification No.51&52/21.12.2010 rescind earlier notifications related to such exemption. Impact – Service Tax is exempt, if Central Excise/Customs Duty is paid.


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2. Central Excise Notification 35/21.12.2010 rescinds notification No.17/27.02.2010 which exempted packaged and canned software from Central Excise subject to certain conditions. Impact – Central Excise is payable.


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3. Customs Notification 126/21.12.2010 rescinds notification No.31/27.02.2010 which exempted packaged and canned software from Customs Duty subject to certain conditions. Impact – Customs Duty is payable.


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4. As can be seen from the above, after a lot of flip flop, the Government of India has now exempted service tax on the retail sale of packaged software. This is likely to reduce the cost of popular software.


Download News Items >>


Service Tax Exemptions

1. Giving a boost to the growing infrastructure sector the Ministry of Finance has extended service tax exemption to management, maintenance and repair of bridges, tunnels, airports etc. Earlier this exemption was available only in respect of Roads.


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2. Service Tax Notification No. 33/01.09.2009 exempts the taxable service provided to any person in relation to transport of goods by rail from service tax. Through a series of Notifications, this was to be rescinded w.e.f 01.01.2011. However, Notification No.55/21.12.2010 seeks to extend this date to 01.04.2011. Impact: Service Tax Exemption on goods transport by rail is available until 31.03.2011, unless extended otherwise.


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Download Notifications >>


Central Excise Holiday
CBEC has clarified regarding exemption from Central Excise available to industrial units set up in the states of Uttarakhand and Himachal Pradesh for a period of 10 years from the date of commercial production.
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Relief under EPCG Scheme for certain sectors
DGFT has permitted re-fixation of Annual Average Export Obligation under the EPCG (Export Promotion Capital Goods) Authorisation Scheme, in case the export in notified sector/ product group has declined by more than 5%.


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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
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