• MINISTRY OF FINANCE

CBDT

Press Release From File No. 402/92/2006-MC (10 of 2011) Dated 28.05.2011

India signs Double Taxation Avoidance Agreement (DTAA) with the United Republic of Tanzania

The Government of the Republic of India signed a Double Taxation Avoidance Agreement (DTAA) with the United Republic of Tanzania for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income on 27th May, 2011 at Dar es Salaam.

Notification No. 28/2011 Dated 27.05.2011 Notifies International Cricket Council Cricket World Cup, 2011 as the International Sporting event for the purposes of the section 10(39) of the Income-tax Act, 1961

Central Government has notified the International Cricket Council Cricket World Cup, 2011 as the international sporting event, for the purposes of the clause (39 ) of section 10 of the Income-tax Act, 1961

Notification No. 30/2011 Dated 31.05.2011 Agreement Between The Government Of The Republic Of India and the Government of the Republic of Mozambique for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion With Respect to Taxes on Income 

The Government of the Republic of India and the Government of the Republic of Mozambique, has concluded an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and with a view to promoting economic cooperation between the two countries, same shall be given effect to in the Union of India with effect from the 1st day of April, 2012.

Customs

Notification No. 46/2011 Dated 01.06.2011 Exempts specified goods from the duty of customs leviable

Central government has exempted the specified goods of the description provided therein and falling under the Chapter, Heading, Sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), from so much of the duty of customs leviable thereon as is in excess of the amount specified. 

Circular No. 24/2011 Dated 31.05.2011 Revision in the Powers of Adjudication of the Officers of Customs

In order to streamline guidelines on monetary limit for adjudication of cases by different grades of Customs Officers, CBEC has categorized the power of adjudication of officers of Customs after having considered the nature of cases and amount of duty involved.

Excise

Notification No. 14/ 2011-(N.T) Dated 03.06.2011 Exempts manufacturing unit engaged in the manufacture of recorded smart cards falling under sub-heading 8523 from the operation of the Central Excise Rules, 2002

Central government has exempted the every manufacturing unit engaged in the manufacture of recorded smart cards falling under sub-heading 8523 where manufacturer of such goods has a centralized billing or accounting system in respect of such goods manufactured by different manufacturing units and opts for registering only the premises or office from where such centralized billing or accounting is done, from the operation of the Central Excise Rules, 2002.

Financial Services

Notification No. SO1253(E) Dated 01.06.2011 State Bank of India (Subsidiary Banks) Amendment Act, 2011 - Effective from 1st June ,2011

Central government has appointed the 1st June ,2011 as the date on which the provisions of the State Bank of India (Subsidiary Banks) Amendment Act, 2011 shall come into force.

• MINISTRY OF CORPORATE AFFAIRS

Circular No. 37/2011 Dated 07.06.2011 Filing of Balance Sheet & Profit & Loss Account in eXtensible Business Reporting Language(XBRL) mode

MCA has mandated specified class of companies to file Balance sheets and Profit and loss Account along with Director's and Auditor's Report for the year 2010-11 onwards by using XBRL taxonomy. Accordingly, FAQs about XBRL have been released for the information of the stakeholders.

Circular No. 36/2011 Dated 07.06.2011 Guidelines for Fast Track Exit mode for defunct companies u/s.560 of the Companies Act

In order to give an opportunity for fast track exit by a defunct company, for getting its name struck off from the register of companies, MCA has decided to modify existing route through e-form-61 & has prescribed the guidelines for fast track exit mode for defunct companies u/s.560

Circular No. 35/2011 Date 06.06.2011 MCA Clarification on participation by shareholders or Directors in meetings through electronic mode

MCA has clarified that it is not mandatory for companies to provide its directors, the facility to attend meetings through video conferencing. However, in respect of shareholder it is optional for meetings to be held during FY2011-12

Circular No. 34/2011 Dated 02.06.2011 Guidelines for declaring financial institution as Public Financial Institutions under Section 4A of the Companies Act, 1956

Ministry of corporate affairs has framed criteria for declaring any financial institution as PFI under Section 4A of the Companies Act, 1956. Accordingly, a company applying for declaration as public financial institution must fulfill the same.

Circular No. 33/2011 Dated 01.06.2011 Compliance of provisions of the Companies Act, 1956 and Rules made there under

In order to ensure corporate governance and proper compliances of provisions of Companies Act, 1956, MCA has decided that no request, whether oral, in writing or through e-forms, for recording any event based information / changes shall be accepted by the Registrar of Companies from such defaulting companies, unless they file their updated Balance Sheet and Profit & Loss Accounts and Annual Return with the Registrar of Companies.

Circular No. 32/2011 Dated 31.05.2011 Allotment of Director Identification Number (DIN) under Companies Act, 1956

MCA has that with effect from 12th June, 2011, all DIN-1 & DIN-4 applications has to be digitally signed by the practicing Chartered Accountants, Company Secretaries or Cost Accountants who shall also verify the particulars of the applicant given in the applications. Further, all existing DIN holders who have not furnished their PAN earlier at the time of obtaining DIN, are required to furnish their PAN by filing DIN-4 e-form by 30th September, 2011 failing which their DIN will be disabled and they shall also be liable for heavy penalty.

Circular No. 31/2011 Dated 31.05.2011 Depreciation for the purpose of declaration of Dividend under Section 205 in case of companies referred to in Section 616 (C) of the Companies Act, 1956 (the Act) - Compliance thereof

MCA has clarified that companies referred to in Section 616(c) of the Companies Act can distribute dividend out of profit arrived at after providing for depreciation following the rates as well as methodology notified by CERC and the same shall be sufficient compliance of section 205 of the Companies Act, 1956.

Notification Dated 30.05.2011 Companies (passing of the resolution by postal ballot) Rules, 2011

Central Government has released the Companies (passing of the resolution by postal ballot) Rules, 2011, in supercession of Companies (passing of the resolution by postal ballot) Rules, 2001. These Rules shall be applicable to listed companies and in case of resolutions relating to such businesses as  specified therein.

Notification No. SO1230(E) Dated 03.05.2011 Appointed date of enforcement for the Section 43A of the Competition Act, 2002

Central government has appointed the 1st June, 2011 as the date on which the provisions of Section 43A of the Competition Act , 2002, dealing with power to impose penalty for non-furnishing of information on combinations, shall come into force.

Notification No. SO1231(E) Dated 03.05.2011 Appointed date of enforcement for the Section 44 of the Competition Act, 2002

Central government has appointed the 1st June, 2011 as the date on which the provisions of Section 44 of the Competition Act , 2002, dealing with the penalty prescribed for non-furnishing of information on combinations and thereon, shall come into force.

Notification No. GSR 430(E) Dated 03.06.2011 Companies (Cost Audit Report) Rules, 2011

In supersession of the Cost Audit Report Rules, 2001 , Central Government has released the Companies (Cost Audit Report) Rules, 2011, which apply to every company in respect of which an audit of the cost records has been ordered by the Central Government under sub-section (1) of section 233B of the Act.

Notification No. GSR429(E) Dated 03.06.2011 Companies (Cost Accounting Records) Rules, 2011

Central Government has released the Companies (Cost Accounting Records) Rules, 2011, which shall apply to every company, including a foreign company as defined under section 591 of the Act, which is engaged in the production, processing, manufacturing, or mining activities and wherein, the aggregate value of net worth as on the last date of the immediately preceding financial year exceeds five crores of rupees; or wherein the aggregate value of the turnover made by the company from sale or supply of all products or activities during the immediately preceding financial year exceeds twenty crores of rupees; or wherein the company's equity or debt securities are listed or are in the process of listing on any stock exchange, whether in India or outside India. However, these rules shall not apply to a company, which is a body corporate governed by any special Act and rules provided therein.

Notification No. Dated 02.06.2011 Companies Director Identification Number (Second Amendment) Rules, 2011 w.e.f. 12.06.2011

Central Government has released the Companies Director Identification Number (Second Amendment) Rules, 2011 substituting Forms DIN-1 and DIN-4 provided by the Companies (Director Identification Number) Rules, 2006.

• INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Circular No. IRDA/Reg/1/55/2011 dated 27.05.2011 Insurance Regulatory and Development Authority (Scheme of Amalgamation and Transfer of General Insurance Business) Regulations, 2011

IRDA has released the Insurance Regulatory and Development Authority (Scheme of Amalgamation and Transfer of General Insurance Business) Regulations, 2011 , which shall apply to all general insurance companies other than wholly owned Government companies which fall within the purview of General Insurance Business (Nationalization) Act, 1972

Circular No. IRDA/F&I/CIR/PBDIS/105/05/2011 Dated 27.05.2011 Public Disclosures by Insurers

IRDA has mandated that effective from the year ending March 2011, all insurers are required to file a certificate confirming compliance with the stipulations on public disclosures that is compliance with disclosure requirements on the Insurer's website and on publication in the Newspapers as provided therein.

• MINISTRY OF HEALTH

Notification No. GSR362(E) Dated 05.05.2011 Food Safety and Standards Rules, 2011

Central Government has released the Food Safety and Standards Rules, 2011 determining the Enforcement structure and procedures, thereby elaborate upon the Qualification and duties of the Commissioner and procedure of adjudication.

• RESERVE BANK OF INDIA

IDMD

Notification No. IDMD/29/11.08.043/2010-11 Dated 30.05.2011 Guidelines for Accounting of Repo / Reverse Repo Transactions-Clarification

RBI has clarified that the Master Repo Agreement finalised by FIMMDA is not mandatory for repo transactions in Government Securities settling through a Central Counter Party (CCP) [eg. Clearing Corporation of India Limited (CCIL)], having various safeguards like haircut, MTM price, margin, Multilateral netting, closing out, right to set off, settlement guarantee fund/ collaterals, defaults, risk management and dispute resolution/ arbitration etc. However, Master Repo Agreement is mandatory for repo transactions in Corporate Debt Securities, which is settled bilaterally without involving a CCP.

DBS

Circular No. DBS. CO.FrMC.BC.No. 10/23.04.001/2010-11 Dated 31.05.2011 Findings of Forensic Scrutiny- Guidelines for prevention of frauds

Based on the findings of the scrutinizes and studies made across banks to ascertain the policy and operating framework in place for detection, reporting and monitoring of frauds, RBI has released the guidelines for prevention of frauds and has advised banks to suitably modify their policy and streamline the operating framework in the matter keeping in view certain indicative guidelines.

Circular No. DBS.CO.FrMC.BC. No. 9/23.04.001/2010-11 Dated 26.05.2011 Internal Vigilance in Private Sector/foreign Banks

In order to bring about uniformity and rationalisation in the function of internal vigilance, RBI has laid down the detailed guidelines for private sector and foreign banks on similar lines so that all issues arising out of lapses in the functioning of the private sector and foreign banks especially relating to corruption, malpractices, frauds etc can be addressed uniformly by the banks for timely and appropriate action.

• SECURITIES AND EXCHANGE BOARD OF INDIA

Derivatives

Circular No. CIR/DNPD/ 5 /2011 Dated 02.06.2011 Liquidity Enhancement Schemes for Illiquid Securities in Equity Derivatives

SEBI has permitted the Stock Exchanges to introduce one or more liquidity enhancement schemes (LES) to enhance liquidity of illiquid securities in their equity derivatives segments. Accordingly, lays down the norms to be observed by the Stock exchanges for the same purpose.