Hi Folks
“Integrity is doing the right thing even if nobody is watching “. Whether the world is watching, regulators are watching, shareholders are watching, customers are watching, employees are watching, competitors are watching, media is watching or not – it is not about who is watching. The moot question is ARE YOU WATCHING YOURSELF ? IS YOUR CONSCIENCE WATCHING YOU ??
With increasing scams and frauds due to lack of probity and integrity in almost everything around us it is difficult not to sound cynical but yes, there is a huge deficit – not revenue deficit, budget deficit, monsoon deficit or sales deficit but INTEGRITY DEFICIT. With intense pressure on targets, deadlines, topline, bottomline, cashflows, compliances etc. and the urge to beat expectations from investors, parent companies, markets etc. it is tempting to take the shortest path available but just step back for a moment and change roles – BECOME A SELF WATCHDOG. Let your conscience do the talking before your words become deeds.

To move from ‘compromise’ to ‘compliance’ we bring you all the regulatory updates on service tax, company law, customs, excise and of course select consolidated Policy Circulars of the apex bank in India (RBI) which are released every July.

To read the earlier issues and articles Click Here

Lex Valorem Team

  • XBRL filing for FY 11-12 not yet enabledCompanies required to file their Audited Financial Statements for FY 11-12 in the XBRL mode exempt from additional filing fee up to 15th Nov, 2012 or 30 days from their AGM whichever is later, since the Ministry Of Corporate Affairs is yet to notify the validation tools for filing in XBRL and revised Schedule VI format.
  • Cost Audit and Compliance Report filing only after 31st July 2012Filing of Cost Audit Reports and Compliance Reports in XBRL mode permitted after 31st July 2012.
As is customary, Reserve Bank of India (RBI) has issued following Master Circulars (MC) effective 1st July, 2012 :


    • MC No 4 – Acquisition of Immovable Property by NRIs / PIOs / Foreign Nationals


    • MC No 6 – Misc remittance facilities for residents from India


    • MC No 7 – Establishment of Liaison / Branch / Project Office in India by foreign entities


    • MC No 8 – Remittance facilities for NRIs / PIOs / Foreign nationals


    • MC No 9 – Compounding of contraventions under FEMA


    • MC No 11 – Direct investment by residents in JVs / WOSs abroad



    • MC No 13 – Import of Goods & Services


    • MC No 14 – Export of Goods & Services


  • MC No 15 – Foreign Direct Investment (FDI)
New accounting code introduced for payment of service tax under the Negative list approach.
Clarification has been issued under Point Of Taxation Rules relating to

  • Continuous supply of service
  • Works Contract
  • Determination of Value
  • Partial reverse charge relating to specific services

Procedure for claiming rebate (refund) of service tax on Specified Services by exporter of goods has been notified together with the prescribed application form and chapter wise rate of rebate.
Travel by Train in First Class or Air Conditioned Coach will not attract Service Tax for a small period (2nd July, 2012 to 30th Sep, 2012). Same relief for goods transported by Railways.
Following transactions will not attract Service Tax

  • Inward remittance of foreign currency from abroad
  • Fee or conversion charges for sending the same to India
  • Bank charges levied in India for services provided to foreign bank / third party
Exporter of goods utilizing the services of an overseas commission agent is entitled to partial Service Tax exemption subject to certain terms and conditions.
Vehicles in the nature of professional equipment (Ambulance, Refuse Disposal Vehicle etc.) permitted to be imported under the Served from India (SFIS) Scheme with duty exemption. However personal vehicles not permitted for import under SFIS.
  • Banks were required to complete conversion of physical BRCs into digital mode by 31st July, 2012. However this date has been extended upto 16th Aug, 2012.
  • DGFT has clarified how net foreign exchange earnings would be reflected in an e-BRC (electronic Bank realization certificate) which becomes relevant for claiming export benefits under the Foreign Trade Policy.
MCA has notified Limited Liability Partnership (Winding up and Dissolution) Rule, 2012 explaining the detailed procedure for winding up of a LLP.
To enable wider participation of shareholders in important proposals, SEBI has mandated listed companies to enable e-voting facilities to their shareholders, in respect of notices which are dated on or after 1st October, 2012.
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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