Legislative and Regulatory Update
You now have the option of customizing your manupatra round-up .This means that you get updates on the areas of interest that you select .You may change your preferences at any time you wish to. If you do not customize your round up you will continue to get the updates on all areas
To customize your round-up now click here.
_____________________________________________________________________
India Centric Online Legal & Business DatabaseBringing forth new efficiency and unparalleled results to research efforts.
In This Issue [No.45] March 30, 2003
Site Links
To keep you informed about the latest Legislative and Regulatory information manupatra.com publishes this e-roundup highlighting the recent changes brought about by the Notifications/Acts/Bills /Ordinances etc.
About manupatra.com
../ provides comprehensive and easy to use legal and related information over the Internet .Our database covers Central Laws , Judgments of Supreme Court and High Court (full text of the judgments from 1950 onwards ), Orders of Tribunals , Bills , Notifications, Circulars and moreKey features of manupatra are
Content is derived from reliable primary and secondary sources Database is updated on a daily basis Electronic Ready Reckoner to view the judgments under a particular section of an Act / Subject Powerful search engine with user friendly interfaces Search in any one court/year or multiple courts/year Hyper-linking of documents Updated modules on WTO, Anti Dumping, Arbitration, Investment Destinations Abroad, Capital Markets, Taxation, Environment, Cyber & IT Laws, IPR, Corporate Laws, Industrial Policies, Foreign Trade, Forex & Banking and more
For subscription to manupatra.com or for more details please log onto ../ or call us at 0120 4531811 or send an email to : contact@manupatra.com
If at any stage you wish to stop receiving the e-roundup please click here to unsubscribe.
Secondary Market Division
Electronic Data Information Filing And Retrieval (EDIFAR)
Circular No. SMD/Policy/ Cir - 10/2003 Dated 17.03.2003 : SEBI vide circular SMD/Policy/Cir-17/2002 dated July 03, 2002 provided that the list of companies which are required to file documents/statements on-line shall be specified by SEBI from time to time. In view of the above, it has now been decided to make the requirement of filing of specific documents/statements applicable to further 500 companies, selected on the basis of market capitalization and turnover. These companies would be required to upload all the Statements / Information as mentioned in circular SMD/Policy/Cir-13/2002 dated June 20, 2002, on the EDIFAR web site with effect from quarter ending March 30, 2003.
New Jeevan Dhara-I and New Jeevan Akshay-I Plans Specified for Sec. 88(2)(xiiia) of Income-tax Act, 1961
Notification No. 53/2003 Dated 18.03.2003 : The Central Government has specified the New Jeevan Dhara-I and New Jeevan Akshay-I Plans of the Life Insurance Corporation of India, as filed by that Corporation with the Insurance Regulatory and Development Authority, as the annuity plans of that Corporation for the purposes of the said clause (xiiia).
Notification u/s 10(23) and 10(23G)
Notification No. 51/2003 and No. 52/2003 Dated 13.03.2003 : The Andhra Cricket-Association, Guntur has been Notified U/S 10(23) and M/S Bharati Telesonic Ltd., New Delhi has been Approved U/S 10(23G).
Provisions Relating to Designation of Transfer Pricing Officer and Director of Income-Tax
Notification No. 50/2003 Dated 12.03.2003 : The Central Board of Direct Taxes has directed that,
(a) the Transfer Pricing Officer referred to in the Explanation to section 92CA of the Income-tax Act, 1961, as specified, shall be subordinate to the Director of Income-tax as specified.
(b) the Director of Income-tax, as specified, shall be subordinate to the Director General of Income-tax as specified.
Amendment to Notification No.214/86 Dated 25.03.1986
Notification No. 20/2003 Dated 25.03.2003 : In the said notification,-
(i) in the opening paragraph, -
(a) for the words, “sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government”, the words, “sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), (herein after referred to as Special Importance Act), the Central Government, being satisfied that it is necessary in the public interest so to do,” have been substituted;
(b) for the words, “from whole of the duty of excise leviable thereon, which is specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986)”, the words, “from whole of the duty of excise leviable thereon, which is specified in the Schedules to the Central Excise Tariff Act, 1985 ( 5 of 1986), the additional duty of excise leviable thereon, which is specified in the Schedule to the said Special Importance Act” have been substituted;
(ii) in the Table, for the entry in column (2), the following entry has been substituted,
“All goods falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other than matches.”
CENVAT Credit (Third Amendment) Rules, 2003
Notification No. 25/2003 NT Dated 25.03.2003 : 1. In rule 2, clause (h) has been substituted, which specifies that “manufacturer” or “producer”in respect of yarns or fabrics will include a person who is liable to pay duty of excise leviable on such goods under sub-rule (1) of rule 12B of the Central Excise Rules, 2002.
2. In rule 4, in sub-rule (1), for the proviso new proviso specifying that CENVAT credit of duty paid on inputs may be taken immediately on receipt of such inputs in respect of the final products, namely, yarns or fabrics, has been substituted.
3. in rule 6, in sub-rule (1), the following proviso shall be inserted, namely,-
“ Provided the CENVAT credit on inputs shall not be denied to job worker referred to in rule 12 B of the Central Excise Rules, 2002 on the ground that the said inputs are used in the manufacture of goods cleared without payment of duty under the provisions of that rule.”
4. Rule 9A relating to Transitional provisions for Textile and Textile Articles, has been inserted.
Central Excise (Third Amendment) Rules, 2003
Notification No. 24/2003 NT Dated 25.03.2003 : Amendments have been made in Rule 4, 5 and 12 and new Rule 12A relating to Job work in textiles and textile articles, has been inserted.
Amendment to Notification No. 43/2001 Dated 26.06.2001
Notification No. 23/2003 NT Dated 24.03.2003 : In the said notification, in the Explanation I, after clause (d), the following clause has been inserted, namely:-
“(e) additional duty of excise levied under clause 149 of the Finance Bill, 2003, which clause has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931 ( 16 of 1931), the force of law.”
Amendment to Notification No. 42/2001 Dated 26.06.2001
Notification No. 22/2003 NT Dated 24.03.2003 : In the said notification, after the Explanation II, the following Explanation has been inserted, namely:-
“Explanation III.- “Duty” for the purpose of this notification, includes, additional duty of excise as levied under clause 149 of the Finance Bill, 2003, which clause has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931( 16 of 1931), the force of law.”
Amendment to Notification No. 41/2001 Dated 26.06.2001
Notification No. 21/2003 NT Dated 24.03.2003 : In the said notification, in the Explanation, after clause (d), the following clause has been inserted,:-
“(e) additional duty of excise levied under clause 149 of the Finance Bill, 2003, which clause has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931(16 of 1931), the force of law.”.
Amendment to Notification No. 40/2001 Dated 26.06.2001
Notification No. 20/2003 NT Dated 24.03.2003 : In the said notification, in the opening paragraph,-
(i) after clause (c), the following clause has been inserted,
“(d) rebate of whole of additional duty of excise paid on tea on its exportation to any country except Nepal and Bhutan”;
(ii) in the Explanation I, after clause (d), the following clause has been inserted,
“(e) additional duty of excise levied under clause 149 of the Finance Bill, 2003, which clause has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), the force of law.”.
CENVAT Credit (Third Amendment) Rules, 2003
Notification No. 19/2003 NT Dated 24.03.2003 : In sub-rule (6), clause (b) has been substituted.
Amendment to the CENVAT Credit Rules, 2002
Notification No. 18/2003 NT Dated 13.03.2003 : In rule 3 of the said rules, for sub-rule (3), the following sub-rule has been substituted,
“(3) The CENVAT Credit may be utilized for payment of –
(a) any duty of excise on any final product; or
(b) an amount equal to CENVAT credit taken on inputs if such inputs are removed as such or after being partially processed; or
(c) an amount equal to the CENVAT credit taken on capital goods if such capital goods are removed as such; or
(d) an amount under sub-rule (2) of rule 16 of Central Excise Rules, 2002.”
3. In the said rules, the form annexed thereto has been numbered as ‘Form – 1’ and after Form – 1, as so numbered, Form - 2 has been inserted.
Amendment to the Central Excise Rules, 2002
Notification No. 17/2003 NT Dated 13.03.2003 : 1. In rule 11 of the said rules, for sub-rule (2), the following sub-rule shall be substituted,
“(2) The invoice shall be serially numbered and shall contain the registration number, name of the consignee, description, classification, time and date of removal, rate of duty, quantity and value, of goods and the duty payable thereon.”
2. In rule 16 of the said rules, after sub-rule (2), the following Explanation shall be inserted,
“Explanation:- The amount paid under this sub-rule shall be allowed as CENVAT credit as if it was a duty paid by the manufacturer who removes the goods.”
3. Rule 16A relating to Removal of goods for job work, etc., has been inserted.
Guidelines for considering request for exemption from payment of customs duty under Section 25(2) of Customs Act, 1962
Circular No. 18 /2003-Cus.Dated 24.03.2003 : It has now been decided that importers, desirous of seeking ad-hoc exemption under Section 25(2) of the Customs Act, 1962, may also apply to the concerned Commissioner of Customs at the port of import. The Commissioner of Customs will forward such requests to the Board along with the documents mentioned in Annexure II of this circular and his comments regarding the charitable nature of the applicant institution, the nature of its activities, reputation, etc. The Commissioner may also recommend whether provisional clearance should be considered.
Removal of Laptop Computers and Video Projection System Temporarily out of EOU or EHTP / STP/SEZ Unit-Reg.
Circular No. 17 /2003-Cus. Dated 24.03.2003 : It has been decided that for taking duty free imported or locally procured laptop computers and Video Projection systems out of the EOU/STP/ETHP/SEZ units temporarily, the unit would be required to follow the procedure as mentioned below:-
(i) The EOU or STP/EHTP/SEZ unit after import / local procurement of laptop computers and video projection system shall account the same in their inventory.
(ii) The unit will issue a certificate authorising the employee by name and giving the full specification such as sr. no., model no. , manufacturer name etc. of the Laptop computers and Video projection system intended to be taken outside the bonded area temporarily.
(iii) The concerned units will be required to maintain a record of such letters of authorisation issued in terms of (ii) above for temporarily taking out or bringing in the unit the laptop computer/ video projection system. These records shall be made available at the time of inspection by the jurisdictional officers of Customs or Central Excise as the case may be.
Anti-Dumping Duty
Notification No. 41/2003, No. 42/2003, Dated 17.03.2003, No. 45/2003 Dated 21.03.2003, No. 46/2003 Dated 24.03.2003 and No. 47/2003 Dated 24.03.2003 : Anti-Dumping Duty has been imposed on the import of Vitamin E Acetate and Vitamin E feed grade, Hexa Methylene Tetramine, Certain Polyester Staple Fibres (PSF), Para cresol and Phenol.
Enhancement /Loading on invoice price - regarding
Circular No. 16 /2003-Cus. Dated 17.03.2003 : It has come to the notice of the Board that the Customs field formation(s) are arbitrarily enhancing the invoice value of imported goods without giving a speaking order. The Board has instructed that the proper officer should follow the procedure laid down under Rule 10A of Customs Valuation Rules, 1988 to satisfy himself about the possible under-valuation. He should then intimate the importer in writing the ground for doubting the truth or accuracy of the value declared in relation to the goods imported and also provide a reasonable opportunity of being heard, before rejecting the declared value.
In view of the above, all the officers may be intimated that where declared value is rejected, an appealable order should be issued to the importer after following the due process of law.
E-filing of Service Tax Returns
Circular No.1/52/2003-ST Dated 11.03.2003 : The Central Board of Excise and Customs is getting ready to facilitate electronic filing of ST-3 returns of Service Tax from the month of April, 2003. Initially, this facility will be extended to only select class or group of service tax providers
Enforcement Date of General Insurance Business (Nationalisation) Amendment Act, 2002
Notification No. SO329(E) Dated 21.03.2003 : The Central Government has appointed 21st day of March, 2003 as the date on which the Enforcement Date of General Insurance Business (Nationalisation) Amendment Act, 2002 shall come into force.
International Seminar/Conference/Convention etc. in India - Temporary Foreign Currency Accounts
Circular No: A.P.(DIR Series) Circular No.87 Dated 20.03.2003 : Reserve Bank has been receiving applications for opening temporary foreign currency accounts from organisers of international Seminars, Conferences, Conventions etc. for holding such events in India. With a view to facilitate expeditious disposal of such applications, it has been decided that authorised dealers may, henceforth, consider such requests, subject to the organisers obtaining the prior approval from the concerned Administrative Ministry of Government of India for the conduct of the relevant event, including invitation to foreign participants/speakers/faculty.
Draft guidelines for introduction of Credit Derivatives in India
Notification No. DBOD.BP. 1057 /21.04.103/2002-03 Dated 26.03.2003 : As a step towards enhancing and fine-tuning the existing risk management practices in banks, a Working Group on Credit Derivatives was constituted in Reserve Bank of India drawing experts from select banks and Financial Institutions and Reserve Bank. The Working Group studied the need and scope for allowing banks to use credit derivatives, the regulatory issues involved and has since submitted its report, based on which the draft guidelines have been prepared keeping in view the present regulatory environment, the state of development of the market for introduction of credit derivatives and the preparedness of the banks for using credit derivative products.
Guidelines for bank finance for PSU Disinvestments : Stipulation of lock-in period for shares
Notification No. DBOD. BP. BC. 83 / 21.04.137/ 2002- 2003 Dated 21.03.2003 : It has been decided that Banks should, while deciding to extend finance to the borrowers who participate in the PSU disinvestment programme, advise borrowers to execute an agreement whereby they undertake to:
a. Produce the letter of waiver by the Government for disposal of shares acquired under PSU disinvestment programme during the lock-in period, or
b. Include a specific provision in the documentation with the Government permitting the pledgee to liquidate the shares during the lock-in period, in case of shortfall in margin requirement or default by the borrower.
Interest Rates on Deposits – Capital Gains Account Scheme – 1988
Notification No. DBOD. Dir. BC. 82/13. 03.00 /2002-03 Dated 19.03.2003 : With reference to Notification DBOD No. Dir.BC.108/13.03.00/2000-01 dated April 19,2001 in terms of which the banks were advised of the rates of interest on deposits made under Capital Gains Accounts Scheme, 1988, introduced by Government of India, the rates have been reviewed. The revised rates will come into effect from March 01, 2003.
Offshore Banking Units (OBUs) in Special Economic Zones (SEZs)
Notification No. DBOD IBS BC 80 /23.13.004/2002-03 Dated 19.03.2003 : It is now clarified that an eligible bank can set up one OBU in one SEZ. The banks can therefore set up more than one OBU, but not in the same SEZ.
Reserve Bank of India has received requests from banks for allowing OBUs in one SEZ to lend to units and SEZ developers in other SEZs. Banks have also requested that the restriction on overseas lending by OBUs may be removed. It is advised that the restrictions in this regard will continue for the present. The matter will be reviewed later based on the performance of OBUs over a period of six months. It has been decided that OBUs may be allowed to invest their surplus funds outside India under the investment policy framed for this purpose by the Board of Directors of the bank concerned.
Guidelines for uniform accounting for Repo / Reverse repo transactions
Notification No. IDMC. 3810 /11.08.10 / 2002-03 Dated 24.03.2003 : On a review of the accounting practices followed by all RBI regulated entities for accounting repo / reverse repo transactions, it emerged that there were divergent practices prevailing among them. In order to ensure uniform accounting treatment in this regard and to impart an element of transparency, it has been decided to lay down uniform accounting principles, in consultation with Fixed Income Money Markets and Derivatives Association of India (FIMMDA), for repo/reverse repo transactions undertaken by all the regulated entities. However, for the present, these norms would not apply to repo / reverse repo transactions under the Liquidity Adjustment Facility (LAF) with RBI. The uniform accounting principles will be applicable from the financial year 2003-04. On implementation, market participants may undertake repos from any of the three categories of investments, viz., Held For Trading, Available For Sale and Held To Maturity.
Interest Rates on Deposits
Circular No. UBD.BPD.DIR/PCB.CIR. 42 /13.01.00/2002-03 Dated 25.03.2003 : It has been decided to reduce the interest rate of domestic and ordinary non-resident savings deposits as well as savings deposits under Non-resident (External) Accounts Scheme by 0.5 percentage point from 4.0 per cent to 3.5 per cent per annum effective March 1, 2003.
6.5% Savings Bonds, 2003 (Non-taxable)
Notification No. CO.DT.13.01.298/H-3572/2002-03 Dated 15.03.2003 : It has been decided by the Government of India to issue 6.5% Savings Bonds, 2003 (Non-taxable) with effect from 24th March 2003, as per Government of India Notification No. F.4(9)-W&M/2003 dated March 13, 2003.
6.5 % Savings Bond, 2003 (Non-taxable)
Notification No. CO.DT.13.01.298/H-3566/2002-03 Dated 15.03.2003 : It has been decided by the Government of India to issue 6.5 % Savings Bond, 2003 (non taxable) with effect from 24th March 2003 in terms of their Notification No.4 (9)-W&M/2003 dated 13th March 2003.
Retrospective effect of the criteria permitting 25% BG for manufacturer exporters having an export turnover of less than Rs 1 crore
Circular No. 21/2002-2007 Dated 18.03.2003 : It has been decided that the facility granted under the two Public Notices 51 and 64 would be available to licences issued earlier as the provisions are aimed at the reduction in the transaction costs of small exporters and established domestic companies.
Initiation of Anti-Dumping Investigation Concerning Import of Met Coke from Japan
Notification No. 14/41/2002-DGAD Dated 20.03.2003 : Anti Dumping Investigations have been initiated Concerning import of Met Coke from Japan.
Exemption to Oil & Natural Gas Corporation Limited, from Rule 31(2) of the Explosives Rules, 1983
Notification No. SO309(E) Dated 20.03.2003 : The Central Government has exempted the Oil and Natural Gas Corporation Limited, Krishna Well Logging Services, 2nd Floor, B-Wing, Godavari Bhavan, Base Complex, Rajahmundry-533103 (Andhra Pradesh) from the provisions of sub-rule (2) of rule 31 of the Explosives Rules, 1983.
Cyber Regulations Appellate Tribunal (Salary, Allowances and other Terms and conditions of Service of Presiding Officer) Rules, 2003
Notification No. GSR221(E) Dated 17.03.2003 : The Central Government has made the Cyber Regulations Appellate Tribunal (Salary, Allowances and other Terms and conditions of Service of Presiding Officer) Rules, 2003 regulating the terms and conditions of the service of the Presiding Officer, to be effective from 17.03.2003.
Information Technology (Qualification and Experience of Adjudicating Officers and Manner of Holding Enquiry) Rules, 2003
Notification No. GSR220(E) Dated 17.03.2003 : The Central Government has made the Information Technology (Qualification and Experience of Adjudicating Officers and Manner of Holding Enquiry) Rules, 2003 to to be effective from 17.03.2003. The Rules provide for Eligibility for Adjudicating Officer, Scope and Manner of holding inquiry, Scope and Manner of holding inquiry.
Disclaimer
(1) While all reasonable care has been taken to ensure that the information provided in the "round up" and on the website is fair and accurate the company and its promoters and employees shall not in any way be responsible for the consequences of any action taken on the basis of reliance upon the contents of this "round up".
(2) This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name under our various referral programs. Since India has no anti-spamming law, we refer to the US directive, which states that a mail cannot be considered Spam if it contains the sender's contact information, which this mail does. In case this mail doesn't concern you, please unsubscribe from mailing list.
Feedback