• RESERVE BANK OF INDIA

RBI A.P. DIR (Series)

Circular No. A.P. (DIR Series) Circular No.36 Dated 24.02.2010 - Overseas Investment Application - Online Reporting Of Overseas Direct Investment

The Reserve Bank of India has decided to operationalise the on-line reporting system on Overseas Direct Investment (ODI) in a phased manner with effect from March 2, 2010 to simplify the existing reporting framework. The new system would enable on-line generation of the Unique Identification Number (UIN), acknowledgment of remittance/s and filing of the Annual Performance Reports (APRs) and easy accessibility to data at the AD level for reference purposes.

RBI DBOD

Circular No. DBOD. No. Dir. BC 77/13.03.00/2009-10 Dated 19.02.2010 - Payment of Interest on Savings Bank Account on Daily Product Basis

The Reserve Bank of India has directed that payment of interest on savings bank accounts by scheduled commercial banks would be made on a daily product basis with effect from April 1, 2010.

Press Release

Press Release No. 2009-2010/1159 Dated 22.02.2010 - RBI initiates Class Action to benefit Bank Customers

The Reserve Bank of India has proactively started issuing general directions to all banks so as to protect the bank customers against banks' act of commissions and omissions. Called 'class action,' such general directions are issued by the regulator in cases that could benefit not only the applicant but all those customers similarly placed without their having to approach their respective banks/ the Reserve Bank. 

• SECURITIES AND EXCHANGE BOARD OF INDIA

SEBI SMD

Circular No. SEBI/MRD/DoP/SE/Cir-6/2010 Dated 22.02.2010 - Establishment of Connectivity with both depositories NSDL and CDSL - Companies eligible for shifting from Trade for Trade Settlement (TFTS) to normal Rolling Settlement

The stock exchanges may consider shifting the trading in specified securities to normal Rolling Settlement subject to the condition that at least 50% of other than promoter holdings as per clause 35 of Listing Agreement are in dematerialized mode before shifting the trading in the securities of the company from Trade for Trade Settlement (TFTS) to normal Rolling Settlement. For this purpose, the listed companies shall obtain a certificate from its Registrar and Transfer Agent (RTA) and submit the same to the stock exchange/s. However, if an issuer-company does not have a separate RTA, it may obtain a certificate in this regard from a practicing company Secretary/Chartered Accountant and submit the same to the stock exchange/s.

• SERVICE TAX

Notification No. 1/2009-ST Dated 19.02.2010 - The Service Tax (Amendment) Rules, 2010

The Central Government has promulgated the Service Tax (Amendment) Rules, 2010 w.e.f 1st day of April, 2010. The rule amends the Service Tax Rules, 1994. Accordingly, sub-rule (2) of Rule 6 of Service Tax Rules, 1994 has been amended to provide that where an assessee has paid a total service tax of rupees ten lakh or more including the amount paid by utilisation of CENVAT credit, in the preceding financial year, he shall deposit the service tax liable to be paid by him electronically, through internet banking.". Further, sub-rule (2) of Rule 7 of Service Tax Rules, 1994 has been amended to provide that where an assessee has paid a total service tax of rupees ten lakh or more including the amount paid by utilisation of CENVAT credit, in the preceding financial year, he shall file the return electronically.

• INDIRECT TAXATION

CBEC Excise

Circular No. 915/05/2010-CX Dated 19.02.2010 - Clarification regarding valuation of free samples of the products covered under MRP based assessment

CESTAT in the case of M/s Cadila Pharmaceuticals Ltd. Vs Commissioner of Central Excise Ahmedabad II, has held that even after the pharmaceutical products have been notified for MRP assessment under Section 4A of the Central Excise Act, the assessment of free physician samples of these products, is appropriately required to be done under Rule 4 of the valuation rules by taking into consideration the deemed value under Section 4A(1) notwithstanding the non availability of normal price under Section 4(1)(a) of the Act, ibid. Accordingly, the value for payment of excise duty for physician sample would be the value determined under Section 4A for the similar goods (subject to adjustment for size & pack etc.).

Accordingly, the Board clarifies that aforesaid decision of CESTAT would, mutatis mutandis, be applicable in respect of free samples of other products which are under MRP assessment. Accordingly, it is clarified that valuation of Samples which are distributed free as part of marketing strategy, or as gifts or donations, shall be determined, in terms of Board's circular No. 813/10/2005-CX dated 25.4.2005 and the aforesaid decision of CESTAT whether the final products are assessed under MRP based assessment or otherwise.

CBEC Custom

Notification No. 12/2010 Dated 19.02.2010 - Notification regarding Customs Tariff on the imports of Bus and Truck Radial Tyres

The Government has imposed anti dumping duties in the matter of imports of Bus and Truck Radial Tyres falling under First Schedule to the Customs Tariff Act, 1975 and originating in, or exported from the People's Republic of China (China PR) and Thailand.

CBEC Custom

Notification No. 13/2010 Dated 19.02.2010 - Exemption of goods specified in the Schedule from Customs Tariff

The Central Government has exempted specified goods falling under the First Schedule to the Customs Tariff Act, 1975 from levy of customs duty when imported into India for the purpose of organising the Common Wealth Games, 2010.

CBEC Custom

Notification No. 14/2010 Dated19.02.2010 - Import of Cold Rolled Flat Products of Stainless Steel originating in, or exported from the People's Republic of China (China PR), Korea, European Union, South Africa, Taiwan (Chinese Taipei), Japan, Thailand and United States of America (USA)

The Government has imposed anti dumping duties in the matter of import of Cold Rolled Flat Products of Stainless Steel, falling under First Schedule to the Customs Tariff Act, 1975 and originating in, or exported from the People's Republic of China (China PR), Korea, European Union, South Africa, Taiwan (Chinese Taipei), Japan, Thailand and United States of America (USA).

• DIRECT TAXATION

CBDT Notification No. 09/2010 Dated 18.02.2010 -Income-tax ( First Amendment) Rules, 2010

Central Board of Direct Taxes amends the Income-tax Rules, 1962 regarding time and mode of payment to Government, account of Tax deducted/collected at source or paid under Section 192/206C, certificates of tax deducted/collected at source or tax paid and quateraly statement of deduction/collection of tax. The Form No. 16AA providing format certificate for tax deducted at source from income chargeable under the bead "Salaries" - cum - Return of income has been inserted vide this amendment, whereas the Form No.16, 27D and 16A stands substituted.