Volume 2 Issue
No.4/2010
Lexspeak January 2010
Thought for the day
Future is not what we planned for tomorrow; it is the result of what we do today.
News from the
Govt

Income Tax

RBI

FDI

SEBI

Company Law

SEZ

Service Tax

Others

Articles

Where would I like to go?

Negotiations in Transaction
Legal Term


Legal Term



Defeasance


Meaning
A side contract which contains a condition which if realized, could defeat the main contract.


Usage
A defeasance clause in a Deed of Trust automatically causes the Trust property title to revert from the Trustee to the borrower when the debt is paid off.

Statutory Compliance Chart


February 2010

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Reminders
05


Feb– Service Tax Payment
 05 Feb– Excise Duty Payment
 07 Feb– TDS/TCS Payment
 10 Feb– ExciseReturn-Monthly
 15 Feb– PF Payment
 20 Feb– P.T. Payment
 20 Feb– VAT Payment
 21 Feb– E.S.I.C. Payment


Fine – Tax for doing something wrong


Tax – Fine for doing something right


“You are what your deepest desire is.
As your desire is, so is your intention.
As your intention is, so is your will.
As your will is, so is your deed.
As your deed is, so is your destiny.”

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……!!!

Do give us a feedback.

Click here to express yourself.

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.



Read more


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.

Download Circular


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.

Read More


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.

Download Circular


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.



Read More


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).



Read More


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.

Download Circular


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.

Download Circular

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Read More


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.



Read More


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.

Download Article


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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