• RESERVE BANK OF INDIA

A. P. (DIR Series) Circular No.37 Dated 02.12.2008 Memorandum of Instructions for Opening and Maintenance of Rupee / Foreign Currency Vostro Accounts of Non-resident Exchange Houses

RBI has invited the Authorized Dealer Category - I banks to the Memorandum of Instructions for Opening and Maintenance of Rupee / foreign currency Vostro accounts of Non-resident Exchange Houses. The collateral period between the issuance of drafts and payment to the beneficiaries has been reduced to 10 days from 30 days, which can be kept either in the form of cash deposit or a bank guarantee from an international bank of repute.

A. P. (DIR Series) Circular No. 39 Dated 08.12.2008 Buyback / Prepayment of Foreign Currency Convertible Bonds (FCCBs)

RBI has permitted Authorised Dealer Category - I banks to make prepayment of ECB up to USD 500 million without prior approval of the Reserve Bank under the ECB Guidelines with condition to compliance with the stipulated minimum average maturity period as applicable to the loan.

• DIRECT TAXATION

Notification No. 106/2008 Dated 28.11.2008 Amendment to the Industrial Park Scheme, 2008

The Industrial Park Scheme, 2008 has been amended, making substitutions to the FORM IPS-I of the scheme for para 2.III and 3.IV.

Instruction No. 17/2008 Dated 26.11.2008 Assessment of Banks - Check List For Deductions

Instructions have been issued to the banks to make necessary assessments with due care and after proper verification while computing the income of banks under the head 'Profit and Gains of Business & Profession', deductions of large amounts under different sections. Without the prior verification it is leading to substantial loss of revenue.

• DIRECTORATE GENERAL OF FOREIGN TRADE

Notification No. 67(RE-08)/2004-2009 Dated 01.12.2008 Prohibition on import of milk and milk products - Regarding

It has been decided by DGFT to add an Import Licensing Note prohibiting the import of chocolates and chocolate products and candies/confectionary/food preparations with milk or milk solids as an ingredient from China from six months with immediate effect. The note shall be added at the end of Chapters 17, 18, 19 and 21 of Schedule I of ITC (HS) Classification of Export and Import Items 2004-09.

Policy Circular No. 45(RE-08)/2004-2009 Dated 04.12.2008 Clarification on export of " Military Stores"- regarding

It has been clarified by the DGFT that for the purpose of export of Military Stores, that no export of goods, which are apparently in the nature of 'Military Stores' may be allowed without No Objection Certificate from Department of Defence Production. The NOC is required except in respect of goods as specified at Export Licensing Note 1, which are freely exportable without No Objection Certificate.

Notification No. GSR790 Dated 12.11.2008 Indian Foreign Service 'B' (Recruitment, Cadre, Seniority and Promotion) Second Amendment Rules, 2008

Indian Foreign Service 'B' (Recruitment, Cadre, Seniority and Promotion) Rules, 1964 has been amended by the Indian Foreign Service 'B' (Recruitment, Cadre, Seniority and Promotion) Second Amendment Rules, 2008, substituting the manner of select list for promotion to Integrated Grades II and III.

• PRESS INFORMATION OF BUREAU

PIB Dated 08.12.2008 - Delhi High Court Judge appoints

Smt. Justice Veena Birbal Additional Judge of the Delhi High Court, has been appointed as the new Judge of the Delhi High Court with effect from the date she assumes charge of her office.

PIB Dated 07.12.2008 Revision of Excise and Customs Duty Rates and Service Tax Refund to exporters

To provide fiscal stimulus to the economy through stimulation of demand and relief to the manufacturing sector, Government has carried out changes in Excise and Customs duty rates and also in respect of Service tax refund scheme for exporters. Excise duty rates have been reduced by 4% and while power sector, naphtha imported for generation of electric energy has been fully exempted from basic customs duty.

PIB Dated 04.12.2008 Amendment of Section 12 of the Legal Services Authorities Act, 1987

The Cabinet has introduced Legal Services Authorities (Amendment) Bill, 2008 to include senior citizens whose income is upto One lakh twenty thousand rupees per annum, dependent family members of Defence Forces personnel and personnel of such other armed forces as the central government may specify by notification, who died in action and victims of terrorists/acts or riot, in the categories of persons who are entitled for legal services under Section 12 of the Legal Services Authorities Act, 1987.