Lexspeak
Hi All
From managing the 5 juggling balls of work, family, health, friends and spirit we now turn to kites for a new learning this fortnight.

Winston Churchill said “Kites rise highest against the wind – not with it”. Opposition and stiff conditions bring the best out of us. So very true. Despite the daunting economic conditions and confusing market signals from different quarters, it is heartening to see people not giving up, not succumbing to the doomsday predictions. Hope is the quintessential fuel for life\’s engine.
Lexspeak has been released for 50 fortnights in a row and we are confident we will score many more 50s in this constantly evolving journey of learning, as we bring you regular updates and insights. As William Arthur Ward said, “The optimist pleasantly ponders how high his kite will fly; the pessimist woefully wonders how soon his kite will fall.”
Wishing you all a festive season – of Sankranti, Pongal, rangoli designs and kite flying – a bountiful of harvest in all that you do !

To read the earlier issues and articles Click HereSincerely
Lex Valorem Team
Last date for filing of Service Tax half yearly return for the period April to September, 2011 has been extended from 6th January, 2012 to 20th January, 2012
  •   Services provided in relation to transport of goods by rail – Effective date for exemption of
    taxable service has been shifted from January, 2012 to April, 2012.
  •   In supersession of the earlier Notification 17/2009 dt.7th July, 2009, list of certain
    “Specified Services” eligible for refund of Service Tax by exporters of goods has been
    expanded to include two new services. A few other procedural changes also have been
    made.
  •   Validity of Para 46 of AS 11 relating to “Accounting treatment in respect of
    exchange difference arising on reporting of long term foreign currency monetary
    items” is extended upto 31st March, 2020.
  •   A new Paragraph 46A inserted to enable exercising the option under Para 46
    w.e.f. 1st April, 2011.

Notwithstanding its inability to open multi-brand retail for foreign investment, government has allowed 100% Foreign Direct Investment (FDI) in Single-Brand Product Retail Trading, under approval route, subject to specified conditions.
  •   Minimum average maturity period for ECB upto USD 20 million – 3 years
  •   Minimum average maturity period for ECB upto USD 750 – 5 years
  •   Foreign Currency Convertible Bonds (FCCBs) raised by hotels, hospitals and software
    cannot be used for acquisition of land
  •   FCCB / ECB raised to refinance the existing outstanding FCCB to be reckoned
    as part of the limit of USD 750 million
In order to facilitate availing ECBs denominated in Indian Rupees, RBI has allowed non-residents to hedge their currency risk with AD Category I banks in India.
As a pro-customer measure, RBI has instructed banks to

  • voluntarily pay penal interest on delayed credit/refund of NEFT transactions
  • to keep the Customer Facilitation Centre contact data updated
DGFT has clarified that deemed export benefit would not be available if the imported capital goods are directly supplied to Project Authority.
To assist companies to meet the deadline of June 2013 to achieve the minimum public shareholding requirements of 25%, SEBI has decided to introduce two alternate routes viz. Institutional Placement Programme (IPP) and Offer for Sale of Shares through Stock Exchanges.

Additionally, it has also decided to modify the offer process relating to SEBI (Buyback of Securities) Regulations, 1998 for effective and speedy completion of buyback process.
This article attempts to demystify some of the basic questions that plague an entrepreneur in relation to incorporation of a Private Limited Company in India.
Note: The contents of this Newsletter 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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