• DIRECTORATE GENERAL OF FOREIGN TRADE

Notification No. 79(RE-2010)/2009-2014 Dated 13.10.2011 Amendments to the Foreign Trade Policy 2009-14

Central Government has amended the Foreign Trade Policy 2009-14 adding clauses providing that Export of products to notified countries will be entitled for additional duty credit scrip @ 1% of FOB value of exports made with effect from 01.04.2011 and Focus Products notified under Appendix 37D shall be granted additional duty credit scrip @ 1% of FOB value of exports for exports made with effect from 01.10.2011 till 31.03.2012.

Notification No. 78 (RE-2010)/2009-14 Dated 10.10.2011 Policy for export of cotton waste including yarn waste and garneted stock [ITC (HS) Code 5202] with effect from 1st October, 2011

Export of cotton waste [ITC(HS) Code 5202 ] will continue to be free and Registration of contracts for cotton waste is not required now, consequent to the amendments to the ITC (HS) Code 5202 at Sl. No. 161 A

Policy Circular No. 41 (RE-2010)2009-14 Dated 13.10.2011 'On-line' message exchange of Duty Free Import Authorization (DFIA) between DGFT and Customs

DGFT has clarified that the existing system of 'on-line' filing of application for issue of Duty Free Import Authorization (DFIA) would continue without any procedural change.

Policy Circular No.40 (RE-2010)/2009-14 Dated 09.09.2011 Online transmission of DES (Advance Authorization), EPCG and DEPB at ICD Karur (INKAR 6 ) w.e.f. 12.09.2011 - regarding

With effect from 12th September, 2011 following shall be mandatory for on-line transmission of DES (Advance Authorization), EPCG and DEPB Authorization-

a. DEPB application in respect of shipping bills issued on or after 12.09.2011 from this port has to be filed in EDI mode.

b. All authorizations for DES (Advance authorization), EPCG, and DEPB in respect of this port issued on or after 12.09.2011 by Regional Authorities would be communicated to Customs on-line. 

• MINISTRY OF FINANCE

CBDT

Press Release Dated 10.10.2011 Challan Correction Mechanism

A new Challan Correction Mechanism for physical challans has been put in place for income tax payments made on or after 1.9.2011. As per the new procedures the more fields that is, Assessment Year, Major Head Code, Minor Head Code, TAN/PAN, Total Amount, Nature of payment (TDS Codes) can be got corrected through the concerned bank branch. At present, the banks are permitted to correct data relating to three fields only i.e. amount, major head code and name. The other errors can be corrected only by the assessing officers.

Service tax

Circular No. 16/2011 dated 21.10.2011 CBEC clarification regarding levy of service tax on service providers engaged / associated with construction work

CBEC has clarified that in case the services provided by the sub-contractors to the main contractor are independently classifiable under WCS, then they too will get the benefit of exemption so long as they are in relation to the infrastructure projects as specified.

Notification No. 48/2011-ST dated 19.10.2011 Service Tax (Fifth Amendment) Rules, 2011

CBEC has amended Service Tax Rules, 1994, thereby the provisions relating to registration and returns stands amended as per the Service Tax (Fifth Amendment) Rules, 2011.

Order No.1/2011 - Service Tax Dated 20.09.2011 Extends date of submission of half yearly return for the period April 2011 to September 2011 from 25th October 2011 to 26th December 2011

In view of the fact that the e-filing of service tax returns for all class of service tax assesses has been made mandatory for the first time vide notification no. 43/2011- Service Tax dated 25.8.11, Central Board of Excise and Customs has extended the date of submission of half yearly return for the period April 2011 to September 2011 from 25th October 2011 to 26th December 2011.

CBEC Customs

Circular No. 46/2011 dated Exports Under Duty Drawback Scheme

Based on the recommendations/observations of the Comptroller & Auditor General of India (Indirect Taxes) made in the report evaluating the Duty Drawback scheme, CBEC has issued the set of instructions for strict compliance.

Circular No. 45/2011 Dated 13.10.2011 Re-Export of goods imported under reward schemes and DEPB - Re-credit of duty

CBEC has clarified that in respect of reward schemes specified under Chapter 3 of FTP and DEPB scheme, re-export of imported goods, which are found to be defective /unfit and/ or for re-export on account of any other reason, may be permitted by the Commissioner of Customs, subject to fulfillment of the conditions specified therein.

• RESERVE BANK OF INDIA

AP Dir

Circular No.35 Dated 14.10.2011 Processing and Settlement of Export related receipts facilitated by Online Payment Gateways - Enhancement of the value of transaction

RBI has decided to increase the value per transaction from USD 500 to USD 3000 for export related remittances received through OPGSPS. The revised directions will come into force with immediate effect.

Circular No. 33 Dated 12.10.2011 Memorandum of Instructions governing money changing activities

RBI has amended the instructions contained in the Memorandum of Instructions governing money changing activities. Accordingly, instructions pertaining to sales against reconversion of Indian Currency stands modified. Also, Urban Cooperative Banks (UCBs), fulfilling the eligibility norms, would be considered for authorization as Authorised Dealer Category-I / Authorised Dealer Category -II only.

Circular No. 32 Dated 10.10.2011 Liberalised Remittance Scheme for Resident Individuals-Revised Application cum Declaration form

RBI has released the revised Application cum Declaration form for purchase of foreign exchange under the Liberalised Remittance Scheme for resident individuals.

• INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Circular No. IRDA/LIFE/MISC/CIR/235/10/2011 Dated 13.10.2011 Guidelines on IRDA (Treatment of Discontinued Linked Insurance Policies) Regulations, 2010

In exercise of powers vested under IRDA (Treatment of Discontinued Linked Insurance Policies) Regulations, 2010, IRDA has issued the specified guidelines/clarifications, which shall be effective from 1st November, 2011.