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manupatra Round Up |
[No. 17 dated 20-06-02] |
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Mutual Funds Division
Service Tax on the Unit holders
Circular No. MFD/CIR/ 04/430/2002 Dated 19.06.2002 : SEBI has decided that the passing on of the service tax to the unit holders over and above the present limits of total expenses cannot be allowed, however, mutual funds can charge the service tax to the schemes as an item of general expenditure.
Securities and Exchange Board of India (Mutual Funds) (Second Amendment) Regulations, 2002
Notification No. SO625(E) Dated 11.06.2002 : A new Regulation 29A relating to nomination has been inserted.
List of Scrips to trade under the Normal rolling settlement
Circular No. D&CC/FITTC/CIR – 08/2002 Dated 06.06.2002 : It is advised that based on the information provided by both the depositories, the scrips that have established connectivity with them as on February 28, 2002 which are included in the list as specified, shall trade in the normal rolling settlement mode of the stock exchanges with immediate effect.
Ministry of Finance
Specification of Konkan Railway Bonds
Notification No. 146/2002 and No. 147/2002 Dated 12.06.2002 : Central Government has specified 8.77% tax free (10B and 9B Series), Konkan Railway Bonds issued by Konkan Railway Corporation Limited, for the purpose of section 10(15)(h)(iv) of Income-tax Act, 1961
Exemption of railway passes from income tax
PIB Release dated 11.06.2002 : Union Government has decided to totally exempt the privilege passes and privilege ticket orders (PTOs) of railway employees from income tax.
Income-tax (Seventh Amendment) Rules, 2002
Notification No. 145/2002 Dated 10.06.2002 : Clause (a) of Rule 6E has been substituted by clause (a) and (aa) - Rates of deduction specified as
(a) 100 per cent of the net premium income in case of insurance business relating to fire insurance or engineering insurance and which provides insurance for terrorism risks.
(aa) 50 per cent of the net premium income in case of insurance business relating to fire insurance or other miscellaneous insurance.
Notifications U/s 35AC
Notification No. 134/2002 to No.143/2002 all Dated 07.06.2002 : Mr. Omayal Achi Mr. Arunachalam Trust, Bhartiya Jain Sanghatana, Janseva foundation Indulal Complex, Shree Navkar Sarvar Kendra, Radico Welfare Centre, New Delhi, Dardiono Rahat Fund, Ahmedabad, Gyanmandal Laxmipura Group Prerit Arogya Mandal, Gujarat, Gujarat Raktapitt Nivaran Seva Sangh , Vadodara, Sharam Mandir Trust, Baroda, Samaj Sewa Trust, Ahmedabad, Singhvi Charitable Trust, Chennai, Polio Foundation Shah Chimenlal Chhotalal Lokhandwala Charitable Trust Hospital, Ahmedabad and Rotary District 3010 Social Welfare Society , New Delhi have been exempted under section 35AC of the Income Tax Act, 1961.
Income-tax Returns Forms for non-corporate taxpayers for assessment year 2002-2003
Press Note Dated 06.06.2002 : It has been decided that non-corporate taxpayers whose total income for Assessment Year 2002-2003 is upto Rs. 2 lakhs, will have the option of filing their return for the year in the old Form No. 2D ‘SARAL’. The persons filing their returns for Assessment Year 2002-2003 in Form Nos. 2 and 3 will not be required to furnish the general information specified in Schedule 1 of Form No. 2 or, as the case may be, Schedule H of Form No. 3.
Approvals u/s 10(23C) and 10(23G)
Notification No. 133/2002 Dated 06.06.2002, No. 132/2002 Dated 05.06.2002 and No. 131/2002 Dated 04.06.2002 : Jehangir Art Gallery, Mumbai, National Horticulture Board, Haryana have been approved by the Central Government for the purpose of section 10(23C) of the Income-tax Act, 1961 and M/s Reliable Internet Services Ltd., New Delhi for the purpose of section 10(23G) of the Income-tax Act, 1961.
Amendment to Notification No. 14/2002 Dated 01.03.2002
Notification No. 33/2002 Dated 18.06.2002 :
1.The exemption specified against S. No. 4A of the Table to be effective till 31st day of March, 2003,
2.Insertion of S.No. 4A and the entries relating thereto in the table,
3.Insertion of condition 6 in the table - The exemption to be applicable only upto that much quantity of cotton fabrics cleared by a processor from his factory in respect of which the aggregate amount of job-charges for such stentering does not exceed fifteen lakhs rupees as computed in the manner specified
Further amendment to Notification No. 6/2002 dated 01.03.2002
Notification No. 32/2002 Dated 18.06.2002 : Insertion of S.No. 8,9,10,11 and 12 and the entries relating thereto after item number 7, in List 1, in the Annexure.
Consumer Welfare Fund (Amendment) Rules, 2002
Notification No. 23/2002 NT Dated 13.06.2002 :
1.Addition of the word "state government" in clause (b), in rule 2.
2.Substitution of clauses (b) (c) (d) and (e) in rule 5, in sub-rule 2 specifying various authorities.
3.Insertion of clause (k) and (l) in sub-rule (1), in rule 7 - (k) Relaxation in the conditions required for the period of engagement in consumer welfare activities of an applicant as specified in clause (b) of rule 2. (l) Guidelines to be made for the management and administration of the Consumer Welfare Fund.
Amendment to Notification Nos. 21 and 23 of 2002 as specified
Notification No. 63/2002 Dated 18.06.2002 : Notification No.21/2002-Customs, dated the 1st March, 2002 - Item number 8,9,10,11 and 12 relating to 413 MW Combined Cycle Gas Turbine Power Plant at Anta GPP, 652 MW Combined Cycle Gas Turbine Power Plant at Auraiya GPP, 430 MW Combined Cycle Gas Turbine Power Plant at Faridabad GPP, 645 MW Combined Cycle Gas Turbine Power Plant at Kawas GPP and 350 MW Combined Cycle Gas Turbine Power Plant at Kayamkulam GPP, respectively, have been inserted in List 2, in the Annexure.
Notification No.23/2002-Customs, dated the 1st March, 2002 - S.No.18A relating to Paraxylene has been inserted in the Table.
Anti dumping duty on sodium tripolyphosphate
Notification No. 62/2002 Dated 17.06.2002 : Anti-dumping duty has been imposed on sodium tripolyphosphate in all forms, falling under sub-heading 2835.31 of the First Schedule to the said Customs Tariff Act, imported from China and Taiwan by producers/exporters as specified.
Amendment to Notification No. 2/98-Customs
Notification No. 61/2002 Dated 07.06.2002 : Paragraph 3 has been inserted in the notification - The notification to be effective till the 19th day of September, 2002, unless it is revoked earlier.
Exemption from levy of Customs duty - Raw pearls and precious or semi-precious stones, as specified
Notification No. 60/2002 Dated 07.06.2002 : Central Government, has exempted raw pearls, natural or cultured, and precious or semi-precious stones (other than rough diamonds), unset and uncut, falling under Chapter 71 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India, from the whole of the duty of Customs leviable thereon under the First Schedule and the additional duty, if any, leviable thereon under section 3 of the said Customs Tariff Act, subject to the conditions specified.
Examination norms for export goods
Circular No. 31/2002 Dated 07.06.2002 : The Board has analysed that no useful purpose would be served by retaining the provisions of Circular No.90/98-Cus., dated 8.12.1998 as applicable to self-sealed containers in the Circular No.6/2002-Cus., dated 23.1.2002 but the exporters can still avail of the facility of removal of export goods from the factories on the basis of self-certification and self-sealing; but these shall be examined at the port of export on the basis of examination norms prescribed under Circular No.6/2002-Cus., dated 23.1.2002.
Customs Tariff (Transitional Product Specific Safeguard Duty) Rules, 2002
Notification No. 34/2002 NT Dated 11.06.2002 : Central Government has made the Customs Tariff (Transitional Product Specific Safeguard Duty) Rules, 2002 to be effective from 11.06.2002.
Asset Classification of Projects Under Implementation – Time Overrun – Definition of Financial Closure
Notification No. DBS FID No C17 /01.02.00/2001-02 Dated 07.06.2002 : In order to ensure uniform interpretation of the term "financial closure", for the purpose of Circular DBS.FID.No. C.11/ 01.02.00 /2001-02 dated February 1, 2002 it has been decided to define "financial closure" as follows :
"For greenfield projects, financial closure is defined as a legally binding commitment of equity holders and debt financiers to provide or mobilise funding for the project. Such funding must account for a significant part of the project cost which should not be less than 90 per cent of the total project cost securing the construction of the facility ".
Certificates of Deposit (CDs)
Notification No. DBOD No BP BC 115/21.03.053/2001-02 Dated 15.06.2002 : In order to increase the investor base, it has been decided to reduce the minimum size of certificates of deposit (CDs) to a single investor from the existing level of Rs.5 lakh to Rs.1 lakh and in multiples of Rs.1 lakh thereafter. (Please refer circular DBOD.No.BP.BC.128/21.03.053/97 dated October 21, 1997)
Charging of interest at monthly rests
Notification No. DBOD.No.Dir.BC 114/13.03.00/2001-02 Dated 08.06.2002 : Since some doubts have arisen with regard to applicability of the instructions regarding charging of interest on monthly rests, to short duration crops and allied agricultural activities, the banks are advised to follow the instructions contained in circular RPCD.No.PLFS.BC.129/05.02.27/97-98 dated June 29, 1998 issued by the Rural Planning and Credit Department.
Investment Portfolio of banks - Transactions in Government Securities
Notification No. DBOD No FSC BC 113/24.76.002/2001-02 Dated 07.06.2002 : In the light of recent fraudulent transactions in the guise of Government securities transactions in physical format by a few co-operative banks with the help of some broker entities, it has now been decided to accelerate the measures specified for further reducing the scope for trading in physical forms.
Entertainment Industry –Bank Finance for Film Industry
Notification No. IECD No25 /08.12.01/2001-02 Dated 08.06.2002 : The guidelines on lending to film industry have been reviewed and it has been decided to withdraw the stipulation that banks should not finance projects where total cost of production of film exceeds Rs.10 crore.
Special Financial Package for large value exports
Notification No. IECD NO 24/04.02.01/2001-2002 Dated 06.06.2002 : It is clarified that the facility of special financial package which was available to manufacturer exporters with export contracts of Rs.100 crore and above in value terms in one year, would be available also to merchant exporters/traders subject to the same terms and conditions specified in the circular IECD.No.5/04.02.01/2001-2002 dated September 24, 2001
The Banking Ombudsman Scheme, 2002
Notification No. RPCD BOS No 750 /13.01.01/2001-02 Dated 14.06.2002 : On being satisfied that in the interest of banking policy to enlarge the extent and scope of the authority and functions of Banking Ombudsman for redressal of grievances against deficiency in banking services, concerning loans and advances and other specified matters and also to empower him to act as an Arbitrator for specified disputes, the Reserve Bank has directed that all commercial banks, regional rural banks and scheduled primary co-operative banks should comply with the Banking Ombudsman Scheme, 1995 and the Banking Ombudsman Scheme, 2002.
Use of International Credit Cards on Internet
Press Release No. 1392/2001-2002 Dated 18.06.2002 : With a view to clarifying the permissible uses of International Credit Cards on Internet, it is clarified that International Credit Cards can be used on Internet for any purpose for which exchange can be purchased from an Authorised Dealer in India,
Cancellation of Registration licence application of Maha Rashtra Apex Corporation Limited
Press Release No. 1374/2001-02 Dated 13.06.002 : RBI has cancelled on June 13, 2002 the certificate of Registration granted to Maha Rashtra Apex Corporation Limited for transacting any business of NBFC.
RBI rejects licence application to the Janata Sahakari Bank Maryadit
Press Release No. 1370/2001-02 Dated 12.06.2002 : RBI has rejected the licence application of the Janata Sahakari Bank Maryadit, Dewas, Madhya Pradesh to carry on banking business in India.
Investment by Foreign Institutional Investors - Zee Telefilms Limited
Press Release No. 1361/2001-02 Dated 10.06.2002 : The Reserve Bank of India has notified that Foreign Institutional Investors (FIIs) can now purchase equity shares and convertible debentures of Zee Telefilms Limited up to 49 per cent of its paid up capital through primary and secondary markets in India.
Indian Promoters' can hold 49 per cent in Private Banks
Press Release No. 1353/2001-2002 Dated 07.06.2002 : In order to provide a level playing field, it has been decided to raise the maximum limit of shareholding of Indian promoters in private sector banks from 40 per cent to 49 per cent of their paid up capital.
Report of the Standing Committee on International Financial Standards and Codes
Press Release No. 1349/2001-2002 Dated 07.06.2002 : In accordance with the decision taken by the Committee, it has been decided to make the Standing Committee Report on International Financial Standards and Codes available to the public for wider dissemination.
Ministry of Commerce and Industry
Amendment in the Handbook of Procedures (Vol.1)
Public Notice No. 18/2002-07 Dated 14.06.2002 : Addition of a new sub para 4.9 (e) relating to Import of fuel under Advance Licence, addition of new para 4.27.1 relating to Export Obligation extension for Annual Advance Licence, Addition of New agencies for issuing Certification of Origin (Non Pref), in Appendix 35B
Countries covered under Latin America, CIS and Sub Saharan Africa for computation of average export performance level for export house under Exim Policy 2002-07
Circular No. 4/2002-2007 Dated 11.06.2002 : It has been decided that the exports to the specified countries would be covered for availment of the reduced export performance criteria for achieving Export House status under the Exim Policy.
Export of serpentine (green marble) under Duty Exemption Scheme
ALC Circular No. 1/2002-03 Dated 10.06.2002 : It has been decided that for the purpose of exports under Duty Exemption Scheme, serpentine (green marble) should be treated as regular marble only and accordingly, SION entry No. A-1986, Handbook of Procedures, Vol. 2 (Part-I) would also cover dressed serpentine (green marble) blocks and also that exports of dressed serpentine (green marble) block should be taken into consideration for discharge of export obligation of an advance licence issued for Dressed Marble Block.
Various amendments in EOU/EPZ Scheme
Public Notice No. 16/2002-2007 Dated 05.06.2002 : Director General of Foreign Trade has made various amendment in the Handbook of Procedures (Vol.1)
Grant of DEPB benefit first supplies to SEZ
Notification No. 7/2002-2007 Dated 05.06.2002 : The Central Government has amended/corrected the Export and Import Policy, 2002-07 by adding a new sub para (iii) to paragraph 7.9 (I) relating to Benefit of DEPB in lieu of Drawback for supplies made to SEZ or unit in SEZ.
Anti-Dumping Investigation
Notification No. 14/6/2002-DGAD Dated 05.06.2002 : Anti-Dumping Investigation report Concerning Imports Of D(-) Para Hydroxy Phenyl Glycine Base (PHPG Base) Originating In Or Exported From The European Union.
Ministry of Environment and Forests
Amendment to Notification No. SO 60(E) dated 27.01.1994
Notification No. SO632(E) Dated 13.06.2002 : Addition of provisos in paragraph 2 relating to pipeline projects, substitution of sub-para (e), relating to Modernization projects in paraghraph 3, substitution of item (i), in paragraph (1), in Schedule IV relating to Environmental Impact Assessment report.
Ministry of Health and Family Welfare
National Health Policy 2002
A National Health Policy was last formulated in 1983, and since then there have been marked changes in the determinant factors relating to the health sector. In continuation of the same National Health Policy 2002 has been announed.
Further amendments to the First Schedule of the Drugs and Cosmetics Act, 1940 – as specified
Notification No. GSR423(E) Dated 11.06.2002 : Amendments in the First Schedule to the Drugs and Cosmetics Act, 1940 (23 of 1940), under the heading “Ayurveda”,
(a) Omission of “(Part –I)” in the entry against serial number 54 A.
(b) Insertion of S.No.54 C relating to Ayurvedic Pharmacopoeia of India after serial number 54B.
Drugs and Cosmetics Rules (4th Amendment), 2002
Notification No. GSR422(E) Dated 11.06.2002 : Substitution of the word “Drugs” for the words “Single drugs” against item 1, in the column relating to “Class of drugs”, in rule 168.
Ministry of Law, Justice and Company Affairs
Fee for condonation in respect of filing of Form No.25C belatedly with the Registrar of Companies – Charging of additional fee
Circular No. 15/2002 Dated 17.06.2002 : Since Form No.25C is a document, any delay in filing the same with the Registrar of Companies falls within the ambit of section 611 of the Companies Act and therfore, the Registrars of Companies have been instructed to charge additional fee on Form No.25C filed belatedly at the rate standardized vide Press Note No.2/95 [No.14/3/87-CL.V, Vol.III dated 21st March, 1995.
Companies (Appointment and Qualifications of Secretary) Amendment Rules, 2002
Notification No. GSR419(E) Dated 11.06.2002 : Amendment in rule 2 - Enhancement of the limit for the appointment of Whole time Company Secretary by a company having a paid-up share capital of Rs Fifty lakhs to Rs Two crores.
Food Corporation of India to continue as Public Utility Service for another Six Months
PIB Release dated 10.06.2002 : The Food Corporation of India, FCI, has been declared a public utility service under the Industrial Disputes Act, 1947 for another six months with effect from June 07, 2002.
Presidents assent to three more bills
Dated 18.06.2002 : The President has given his assent to the Haj Committee Bill, 2002, the Foreign Aircraft (Duties on Fuel and Lubricants) Bill, 2002 and the Legal Services Authorities (Amendment) Bill, 2002 being notified in the Gazette of India as Act Nos. 35, 36 and 37 respectively of the year 2002.
Amended CPC to be effective from July 1, 2002
Dated 17.06.2002 : The Civil Procedure (Amendment) Act, 1999 (Act No. 46 of 1999) and the Civil Procedure (Amendment) Act, 2002 (Act No. 22 of 2002) will come into force with effect from July 1, 2002.
President's assent to three Bills
Dated 13.06.2002 : The President has given his assent to the Constitution (Scheduled Castes and Scheduled Tribes) Orders (Amendment) Bill, 2002, the Delimitation Bill, 2002 and the Salary, Allowances and Pension of Members of Parliament (Amendment) Bill, 2002 being notified in the Gazette of India as Act Nos. 32, 33 and 34 respectively of the year 2002.
Disinvestments cell in DCA
Dated 11.06.2002 : The Department of Company Affairs has set up a separate Disinvestments Cell to facilitate quick completion of procedural requirements under the Companies Act and to speed up disinvestments process.
Additions and deletions in constitution (Scheduled Tribes) order
Dated 08.06.2002 : The Union Minister of Tribal Affairs, Shri Jual Oram has said that the Government has decided to include 140 castes as Scheduled Tribes in the Constitution (Scheduled Tribes) Order, 1950, out of which 43 additions are fresh, 66 synonymous, one each on account of bifurcation of entries and clubbing of entries, two as a result of change of nomenclature, two on account of verbal correction, one on account of local language and 16 exclusion.
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