Hi Folks
Undoubtedly the passing of the long standing Companies Bill, 2012 by the Rajya Sabha on the 8th of August, 2013 is the most prominent news for both the professionals as well as the corporates, hailed as it is as a panacea for many of the ills plaguing the corporate world ??!! Whether it is or it isn’t, it surely calls for a lot of unlearning and learning for many of us along with wide opportunities. Watering down of many restrictive conditions for setting up and
operation of SEZs, easing of FDI norms in select sectors and the Government’s desperate efforts to bridge the Current Account Deficit in its bid to uplift the sagging Rupee are the other important headliners. But, do spare a thought that amidst the grey, black and white of the dooming economy there are some wonderful colors and hues of flowers to be admired and cherished– a visual treat at Bangalore’s Annual Lalbagh Flower Show to mark our Independence Day.
On this occasion, I cannot resist but share this short patriotic poem roughly translated from Hindi:

“I don’t have the desire to be an ornament for a damsel;

I don’t have the desire to be a garland to woo a lover;
I don’t have the desire to on an emperor’s corpse;
I don’t have the desire to adorn the head of some God;
O Gardener, pluck me and scatter me on the path
taken by many courageous men who sacrifice their lives for the motherland !”

That was the ‘Desire of a Flower (Phool Ki Abhilasha)’ by the famous Hindi poet Makhanlal Chaturvediji. What is your desire on the eve of the 67th Independence Day ?
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Warm regards

The Companies Bill, 2012 was passed by the Rajya Sabha on 9th August, 2013, paving the way to replace the half century old Companies Act, 1956. The new Companies Bill, on its enactment, will allow the country to have a modern legislation for growth and regulation of corporate sector in India. The salient features of the new Companies law are: business-friendly corporate regulation, CSR, e-Governance Initiatives, enhanced disclosure norms, enhanced accountability of Management, Audit accountability, Protection for minority shareholders, Investor protection and activism.

Effective from the Gazette Notification, SEZ Amendment Rules, 2013 have relaxed many conditions, to woo investments into SEZ (Special Economic Zone):
  No minimum land requirements for IT sector. Only minimum built up area from 25,000 to 1 lac sq.mtrs.
  Multiproduct SEZ minimum land requirements halved from 1000 hectares to 500 hectares. Single product from 100 to 50 hectares.
  Minimum land requirement for SEZ for agrotech, electronics hardware, biotechnology, non-conventional energy, handicrafts etc. only 10 hectares.
  Exit from SEZ scheme by transfer of assets & liabilities to another entity possible, subject to certain conditions & approval of SEZ Approval Committee.
The Central Board of Direct Taxes (CBDT) has issued revised forms and procedure vide following amendments to the Income Tax Rules:
11th Amendment: Revised Form No. 10F which is to be furnished by a non-resident along with a tax residency certificate to claim tax benefits under section 90 and 90A of the Income Tax Act,
effective from 1st April, 2013.
12th Amendment: Revised Form No.15CA for furnishing of information by a person responsible for making payment to a non-resident under section 195(6) of the Act, effective from 1st October, 2013.
13th Amendment: Revised Form No. 64 for filing statement of Income paid or credited by a
Venture Capital Company under section 115U of the Act, to be effective from the date of

The Tax Research Unit, Ministry of Finance has clarified that sedan cars like Maruti SX4, Honda Civic, and Toyota Corolla Altis will attract excise duty at the rate of 27% as applicable to large segment cars and not 30%.
Exporters who have defaulted in completing the Export Obligation (EO) under Duty Exemption and EPCG schemes can now regularize by paying applicable customs duty, corresponding to the shortfall in export obligation, along with interest on such customs duty. Relief now provided is such interest shall not exceed the duty paid.
Benefit available only until 31st March 2014.
Goods imported / procured against Served From India Scheme (SFIS) scrips can be alienated on completion of 3 years from the date of import / procurement. This is a relaxation to the current Actual User Condition.
Inputs actually used in manufacture of export product alone shall be imported under the Advance Authorization / DFIA schemes. Similarly inputs imported must be used in the export product and documentary evidence established for obtaining Export Obligation Discharge Certificate.
Subject to certain conditions, the Director General of Foreign Trade exempts for a period of 2 years, import of steel by projects in the Infrastructure, Petroleum & Manufacturing sectors involving high technologies, defense, chemical and petro-chemical, fertilizers from the Steel Quality Control Order, 2012, effective from 7th August, 2013.
The CBEC has clarified on various items such as declaration of liability, CENVAT credit, penalties, filing of declaration under the Service Tax Voluntary Compliance Encouragement Scheme (VCES).
For the purpose of calculation of total foreign investment in Indian Companies the word ” control” has been redefined and shall include the right to appoint a majority of the directors or to control the management or policy decisions including by virtue of their shareholding or management rights or shareholders agreements or voting agreements.
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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