• MINISTRY OF LABOUR

Notification No. GSR 705(E) Dated 01.10.2008 - Employees' Pension (Third Amendment) Scheme, 2008

The Ministry vides Notification No. GSR 705E) dated 1.10.2008, notified Employees' Pension (Third Amendment) Scheme, 2008 whereby introduced special provisions in respect of international workers by inserting paragraph 43 A after paragraph 43. The modified clause defines and determines pensionable service, pensionable salary and benefits on leaving service before eligible for monthly member's pension

Notification No. GSR 706(E) Dated 01.10.2008 - Employees' Provident Funds (Third Amendment) Scheme, 2008

The Ministry vides Notification No. GSR 706E) dated 1.10.2008 notified Employees' Provident Funds (Third Amendment) Scheme, 2008 amending Employees' Provident Funds Scheme, 1952 whereby following changes have been brought into effect:

- A special provision in respect of international workers as defined in clause (ff) of section 2 of the scheme has been inserted. Clause (f) of section 2 defining "excluded employee" has been substituted which now reads excluded employee to meaning International Worker contributing social security programme of his/her country of origin as citizen or resident with whom India has entered into a social security agreement on reciprocity basis and enjoying the status of detached worker for such period as specified. A clause i.e. (ff) has been added defining International Worker meaning an Indian employee having worked or going to work in a foreign country with which India has entered into a social security agreement and being eligible to avail the benefits under a social security programme of that country, by virtue of the eligibility gained or going to gain, under the said agreement. The clause also states that an employee other than an Indian employee, holding other than an Indian passport, working for an establishment in India to which the Act applies.

The Notifications also details out class of employees of international workers entitled and required to join the fund and duties of employers.

• SECURITIES AND EXCHANGE BOARD OF INDIA

SEBI Derivatives Circular No. SEBI/DNPD/Cir-40/2008 Dated 06.10.2008 - Eligibility Criteria for introduction of Derivatives on shares

In order to rationalize the eligibility criteria for introduction of derivatives SEBI has decided to allow exchanges to introduce derivatives on shares fulfilling the criteria prescribed in the previous circulars enabling the Exchanges to introduce derivatives on shares at the time of its listing in the cash market irrespective of their date of listing and / or size of issue.

SEBI FII Circular No . IMD/FII & C/31/2008 Dated 07.10.2008 - Removal of restrictions on participatory notes (PNs)

SEBI has decided to do away with restrictions on issue of PNs by FIIs against securities, including derivatives, as underlying. The decision of removing restrictions will be effective from the close of market hours on October 07, 2008 and corresponding amendments to the FII regulations are being effected.

Notification No. LAD-NRO/GN/2008/24/139426 Dated 29.09.2008 - Securities and Exchange Board of India (Mutual Funds) (Third Amendment) Regulations, 2008

Securities and Exchange Board of India has amended provisions relating to mailing and forwarding of Annual Report to the Board provided under Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 vide Securities and Exchange Board of India (Mutual Funds) (Third Amendment) Regulations, 2008.

• DIRECT TAXATION

CBDT Notification No. 93/2008 Dated 30.09.2008 - Reverse Mortgage Scheme, 2008

Central Board of Direct Taxes has issued Reverse Mortgage Scheme, 2008 , in exercise of the power conferred by the section 47 of the Income -tax Act, 1961. The said scheme provides provisions relating to Application and processing for reverse mortgage transaction and Sanction of reverse mortgage loan. According to the scheme reverse mortgage cannot be granted for a period exceeding twenty years from the date of signing the agreement by the reverse mortgagor and the approved lending institution. This Scheme will be applicable to eligible persons and will come in to effect from the 15th April, 2008

CBDT Circular No. 9/2008 Dated 29.09.2008 - Income-Tax Deduction from Salaries During The Financial Year 2008-2009 Under Section 192 Of The Income-Tax Act, 1961

CBDT issues circular dealing with rates of deduction of Income -Tax from the payment of income chargeable under the head "Salaries" during the financial year 2008-2009. At the same time explanation to certain provisions related to the Income-tax Act has been dealt by the circular.

• INDIRECT TAXATION

Customs Notification No. 107/2008 Dated 6.10.2008 - Exemption to the Specified goods from applied rate of duty of customs under Customs Act, 1962

Central government exempts specified goods from the applied rate of duty of customs leviable, when imported into the Republic of India from listed country, in exercise of the power conferred under section 25 of the Customs Act, 1962. In order to claim exemption importer is required to prove that that the goods in respect of which the benefit of this exemption is claimed are of the origin of the country listed in the APPENDIX to notification in accordance with the Rules of Determination of Origin of Goods under the Agreement on South Asian Free Trade Area (SAFTA), 2006.

• RESERVE BANK OF INDIA

A.P. (DIR Series) Circular No. 20 Dated 08.10.2008 - External Commercial Borrowings Policy - Liberalisation

RBI has decided to expand the definition of Infrastructure sector for the purpose of availing of ECB, with a view to promote the development of the mining, exploration and refinery sectors in the country. Accordingly, the Infrastructure sector would henceforth be defined as (i) power, (ii) telecommunication, (iii) railways, (iv) road including bridges, (v) sea port and airport (vi) industrial parks (vii) urban infrastructure (water supply, sanitation and sewage projects) and (viii) mining, exploration and refining. This expanded definition of Infrastructure sector for the purpose of ECB will come into force with immediate effect and all other aspect of the ECB policy will remain unchanged.

RBI FEMA Notification No. GSR676(E) Dated 05.09.2008 - Foreign Exchange Management (Transfer of Issue of any Foreign Security) (Amendment) Regulations, 2008

RBI has amended Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 , in exercise of the power conferred under Foreign Exchange Management Act, 1999. Form for Overseas Direct Investment ,Reporting has been substituted by the Amendment , in line with the various amendment made to the regulation.

RBI Press Release No. 2008-2009/423 Dated 01.10.2008 - RBI to launch XBRL standards for Basel II Reporting System at an international seminar next week

Reserve Bank of India has decided to launch Basel II reporting system using eXtensible Business Reporting Language (XBRL) through the existing Online Returns Filing System (ORFS). The Basel II Reporting System will be the first reporting system based on XBRL, it makes use of latest technology tools, some of which are already built into its ORFS.XBRL is an electronic format for communication of business and financial data which is revolutionising business reporting around the world. The reporting system based on XBRL simplifies disclosure and enhances the usability, and transparency of financial information reported under existing accounting standards.

• DIRECTORATE GENERAL OF FOREIGN TRADE

DGFT Policy Circular No. 33(RE-08)/2004-2009 Dated 30.09.2008 - Drawing of export samples of basmati rice and PUSA 1121 non Basmati Rice for variety identification purposes - Notification No 39 dated 16.9.2008 - Procedure regarding

DGFT provides procedures that authorities have to be follow while exporting Basmati rice as per the specifications provided by the Notification No 39 dated 16.9.2008. Customs authorities are required to draw random samples for testing, in order to ascertain variety identification. Export will be allowed after drawing samples and Customs authorities will not hold back export consignments for wants of tests reports. In cases, where test reports of samples are not found in compliance with the export declaration, Customs is required to report the matter to the nearest Zonal Joint DGFT (with copy to DGFT at HQs New Delhi) for necessary action and remedial measures to be taken regarding the defaulting exporter.

• VALUE ADDED TAX

Andhra Pradesh

Notification No. G.O.Ms.No.1100 Dated 11.09.2008 - Amendment to the schedule I of the Andhra Pradesh Value Added Tax Act, 2005

The Government of Andhra Pradesh has amended First Schedule appended to the Andhra Pradesh Value Added Tax Act, 2005, in exercise of the power conferred under the Act. The changes made by the amendment will be effective from the 1 September, 2008.

Rajasthan

Notification No. F.12(23)FD/Tax/08-71 Dated 09.09.2008 - Amendment schedule II of the Rajasthan Value Added Tax Act, 2003

The Government of Rajasthan has amended Schedule II appended to the Rajasthan Value Added Tax Act, 2003 , in exercise of the power conferred under section 8 of the Act on being satisfied that it is expedient in the public interest.