Hi Folks
The best thing one can do when it’s raining is to let it rain !!

This must be the policy of the Indian Government – allow the coalition partners to rein in blows, allow the economy to slip, allow inflation to zoom, allow markets to dampen, allow everyone but the leader to speak, follow the 3 monkeys-principle – NO SEE, NO HEAR, NO SPEAK !!! In short do everything to let the opportunities ebb away ………

Unfortunately our own State Govt. (Karnataka) has fared no better. Tall claims were made at the recently concluded GIM (Global Investors Meet) but as professionals, we know the real truth – getting simple business registrations is more time consuming and frustrating than doing cross-border deals !!

Things can get worse, can get better but as Lexspeak crosses the 60th issue mark, we pledge to continue with our bit towards knowledge sharing. Well, isn’t the monsoon banner of this issue refreshing, rejuvenating and reassuring amidst all the hovering dark clouds ??

To read the earlier issues and articles Click Here

Lex Valorem Team

Effective from 1st June, 2012, auto generated email containing the UIN (Unique Identification Number) details shall be treated as confirmation of allotment of UIN w.r.t. online reporting of ODI (Overseas Direct Investment) under Automatic Route.
To bring uniformity across the banking system, RBI has abolished levy of foreclosure charges / pre-payment penalties by banks on home loans on floating interest rate basis, with immediate effect.
Manual mode of obtaining and submitting Bank Realisation Certificate (BRC) has been done away with, with the introduction of e-BRC system by DGFT (Directorate General of Foreign
Trade ). Submission of physical copy of BRC is not mandatory from 5th July, 2012.
DGFT has notified updated Foreign Trade Policy 2009-2014 incorporating the Annual Supplement. This is effective from 5th June 2012 and contains updates upto that date.
Time limit for filing of Annual Return (Form 11) by Limited Liability Partnership (LLP) has been extended from 60 days to 90 days w.r.t. Financial Year ending 31st March, 2012.
MCA (Ministry of Corporate Affairs) has notified the LLP Amendment Rules effective from 11th June, 2012, wherein certain procedural changes relating to consent of partners, LLP name etc. are covered. It has also substituted new LLP forms consequent to integration of LLP website with MCA website.
Effective from 11th June, 2012, new DIN 1 form has been introduced via said rules which provides for declaring the residential status of a director – Resident or Non-resident.

MCA has issued a circular clarifying applicability of circular no. 52/26/CAB-2010 dt.2nd May, 2011 to companies for FY 11-12, certain companies from FY12-13. Circular also clarifies filing of Compliance Report with the Central Government by certain companies.
Changes made to the Service tax law vide Finance Bill 12-13 have been made effective from 1st July, 2012. This includes Definitions, Negative list of services, Date of determination of rate of tax, value of taxable service and rate of exchange etc. Relevant notifications have been issued.
Finance Ministry has introduced / amended the following rules:

    • Service Tax (Settlement of Cases) Rules, 2012
    • Service Tax (Compounding of Offences) Rules, 2012


  • Service Tax (Determination of Value) Second Amendment Rules, 2006

Method of determination of value of service portion in the execution of a works contract has been amended, specifically providing for valuing the service portion under specific instances for levy of Service tax. Several other changes to the valuation rules have been made.

Being the 60th issue, we are carrying a special article on business plan authored by Ms. Ketoki Basu, one of our associates. This is a vital document both for startups as well as existing concerns.
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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