Hi All
Last month witnessed 5 important days � 1st January as New Year�s Day, 12th as National Youth Day (Vivekananda), 15th as Sankranthi (harvest festival), 26th as Indian Republic Day and 30th as Martyrs Day (Gandhiji). This fortnight saw Valentine�s Day celebrations across India and abroad on the 14th. With increasing spending on such special days our economy is definitely not complaining, though economists keep analyzing and predicting declining growth rates.
�We are all born ignorant but one must work hard to remain stupid�. So said Benjamin Franklin. Whether hard work or smart work, the need of the hour is knowledge coupled with execution. Along with the regulatory updates we have an article for entrepreneurs about company formation in India that packs both law and practical insights to make a useful reading. We bet, you need to work hard to remain ignorant !
To read the earlier issues and articles Click HereSincerely
Lex Valorem Team
General permission is available to foreign citizens other than citizens from Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran or China to establish project office in India subject to adherence to the following conditions issued in 2003:

  • Such project is funded directly by inward remittance from abroad
  • Project is funded by a bilateral or multilateral International Financing Agency
  • Project has been cleared by an appropriate authority
  • A company or entity in India awarding the contract has been granted Term Loan by a Public Financial Institution or a bank in India for the Project

However citizens from such countries also can setup project offices subject to complying with the above conditions with prior RBI approval.

AD Category 1 Banks have been authorized to approve the request to reduce the amount of ECB availed under automatic route, changes/modifications in the drawdown schedule when original average maturity period is not maintained and to reduce all-in-cost of ECB subject to certain conditions. This was hitherto being done by Foreign Exchange Department, RBI.
Some relief for taxpayers!!!

  • For AY 2011-12, TDS claim by all types of assesses (with certain exceptions) may be accepted without verification if the difference between TDS claimed and TDS amount as per 26 AS is less than Rs. 1 lakh.
  • TDS claim of Rs.5,000 or less from Indian Individuals and individuals/ HUF not having income from business or profession will also be credited without any verifications despite the mis-match of the TDS claim with 26AS.
  • In all other cases the department will credit the TDS amount only after due verification.
SEBI (Buy-Back of Securities) Regulations, 1998 has been amended by Securities Exchange Board of India by making SEBI (Buy-Back of Securities) (Amendment) Regulations, 2012. The new regulation will be effective from the date of its publication in the official gazette.
Trade Mark (TM) registration applications made to registries without the following particulars will not be entertained:

  • Description of Goods /Services in respect of which the TM is proposed to be used or has been used
  • Names of proprietors in case of proprietorship firm, the names of all partners in case of partnership firm, name of managing trustee in case of Trust and name of person representing the society in case of Society, should be mentioned.
  • Users of TM should give date, month and year
  • Proper translation of TM if necessary
  • Clear Visible TM
Works contract commenced or paid for prior to 7th July, 2009 would not include free of cost supplies for the purpose of calculation of gross amount under the Works Contract
(Composition Scheme for Payment of Service Tax) Rules, 2007.
“Ignorance of fact may be an excuse but ignorance of law is not an excuse�. Read this issue of Entrepreneurs World to know more about the law and procedures related to formation 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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