As we celebrate the 60th year of our glorious Republic of India, our destiny has been shaped by the epoch-making, bold decisions taken by our leaders in the post-independence era and in particular, the post-reforms era of the last two decades.

You are the master of your destiny. “Desire”, “will” and “do” continue the process of learning through “Sharing & Reflecting” ideas and thoughts. Towards this end “Lexspeak” is a humble contribution. This issue contains a number of updates on regulatory matters as well as two insightful articles. Read and relish……!!!

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Sincerely,
Lex Valorem Team

Quote PAN or be ready to shell out a hefty TDS
A new provision relating to TDS will come into effect from April 1, 2010, whereby all transactions where the deductee’s PAN is not available will be charged at a higher of the prescribed rate or 20%. This provision is applicable to both residents and non-residents.

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Establishment of Branch Office / Liaison Office in India by Foreign Entities
RBI has issued “Eligibility Criteria and Procedural Guidelines” for establishment of Branch Office (BO) / Liaison Office (LO) in India by Foreign Entities. It has also issued a circular regarding “Delegation of Powers” to the AD Category – I banks regarding the above matter.

Download Circular – Eligibility Criteria and Procedural Guidelines

Download Circular – Delegation of Powers

Trading of Currency Futures in recognized Stock Exchanges
RBI vide its circular has issued guidelines on trading of currency futures in recognized stock exchanges.

Download Circular

Now it is possible to remit 100% salary from abroad
Employees of foreign companies being citizens of foreign state and/or Indian nationals posted in office/branch/subsidiary/JVs of such foreign companies in India can open, hold and maintain bank accounts abroad and remit 100% of the salary credited to such account to India, subject to income tax payable in India.

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Curbs likely on select FDI instruments
The government is planning to tighten norms governing FDI through partly-paid shares, convertible warrants and units issued by venture capital funds (VCFs), as it looks to prevent misuse of these popular instruments.

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Internal Audit for Credit Rating Agencies (CRAs)
TSEBI has authorised Company Secretaries, Chartered Accountants and Cost & Management Accountants who are in practice to carry out internal audit for Credit Rating Agencies(CRA) on a half yearly basis.

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Small and medium enterprises (SMEs) will not have to prepare their accounts as per IFRS
SMEs in the country will not have to prepare their accounts as per the International Financial Reporting Standards (IFRS) from April 1, 2011, saving them significant cost of switching to the more rigorous accounting standard.

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Limited Liability Partnership (Amendment) Rules, 2010
Central Government has notified the LLP Amendment Rules effective from 15th January, 2010, wherein certain procedural changes relating to DPIN, registration of LLP and relevant e-forms are covered.

Download Notification

Download Comparison Chart

DTA units could use SEZ facilities
To help SEZs to absorb global economic shocks, the government plans to allow them to make available their excess installed capacities for the use of industrial consumers in the domestic tariff area (DTA).

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Clarifications to expedite claim of Service tax refund and CENVAT credit by exporters
CBEC’s clarification aims to remove impediments being faced by service exporters in claiming refund of Service tax and accumulated CENVAT credit.

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The Real Estate (Regulation of Development) Bill
The Real Estate (Regulation of Development) Bill is a legislation which provides for regulation of dealings in housing properties and casts certain responsibilities on the builders with a view to bring in transparency in the recession-hit realty sector and protect apartment owners.

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Where would I like to go? And… A Happy 2010!
One of our business associates, Ms. Anjana Vivek, Professor at IIMB and Founder of Venturebean (www.venturebean.com), a business consulting company, reflects on the decade that has gone by and poses certain questions that trigger our thinking about the future that lies ahead.

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Negotiations in Transaction
CIn today’s fast paced business world, advocacy skills require proven negotiation abilities in order to ensure result oriented closure of transactions. Speed, simplicity and clarity are the hallmark of good negotiation skill. Ms. Jayashri Murali, Advocate, practising Corporate Law for more than two decades and one of the founder members of Lex Valorem, dwells more on this.

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