• INDIRECT TAXATION

CUSTOMS

Notification No: 85/2009 Dated 04.08.2009 - Imposition of definitive anti-dumping duty on imports of Titanium dioxide, Anatase grade, originating in, or exported from, the People's Republic of China

The Central Government, after considering the final findings of the designated authority, in the matter of review of anti-dumping on import of the subject goods, originating in, or exported from China and which are entering the Indian market at dumped prices whereby the dumping margins of the subject goods imported from the People's Republic of China is substantial and above de-minimis and the situation of domestic industry continues to be fragile has imposed on the subject goods an anti-dumping duty. The anti-dumping duty imposed under this notification shall be effective for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this notification in the Official Gazette. The anti-dumping duty shall be paid in Indian currency.

Notification No. 83/2009 Dated 30.07.2009 - Imposition of provisional anti-dumping duty on the imports of Carbon Black, originating in or exported from, Australia, China PR, Russia and Thailand

The designated authority vide its preliminary findings in the matter of import of Carbon Black used in rubber applications originating in, or exported from, Australia, China PR, Russia and Thailand, and imported into India had come to the conclusion that the subject goods have been exported to India from the subject countries below their normal value; the domestic industry has suffered material injury; and the injury has been caused by the dumped imports from subject countries. It has recommended imposition of provisional anti-dumping duty on the imports of subject goods, originating in or exported from, the subject countries. Therefore, in exercise of the powers conferred by sub-section (2) of section 9A of the said Customs Tariff Act, read with rules 13 and 20 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government has imposed on the goods an anti-dumping duty. The anti-dumping duty imposed under this notification shall be effective up to and inclusive of the 29th day of January, 2010 and shall be payable in Indian currency.

Notification No. 82/2009 Dated 30.07.2009 - Imposition of provisional anti-dumping duty on the imports of Polypropylene, originating in, or exported from, Oman, Saudi Arabia and Singapore

The designated authority in its preliminary findings in the matter of imports of Polypropylene originating in, or exported from, Oman, Saudi Arabia and Singapore and imported into India has come to the conclusion that the subject goods have been exported to India from the subject countries at prices less than their normal values in the domestic market of the exporting countries, the dumping margins of the subject goods imported from the subject countries are substantial and above de minimis and the domestic industry has suffered material injury and the injury has been caused to the domestic industry mainly by price effect of dumped imports of the subject goods originating in or exported from the subject countries and has recommended imposition of provisional anti-dumping duty. Therefore, in exercise of the powers conferred by sub-section (2) of section 9A of the said Customs Tariff Act, 1975 read with rules 13 and 20 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government has imposed on the goods an anti dumping duty. The anti-dumping duty imposed under this notification shall be effective upto and inclusive of the 29th day of January, 2010 and shall be payable in Indian currency.

Circular No. 21/2009 Dated 04.08.2009 - Provisions relating to EDI infrastructure under the "Handling of Cargo in Customs Areas Regulations, 2009"- regarding

It has been clarified that in addition to the infrastructure required to be provided as mentioned in para 5.2 of the circular No.13/2009-Customs, the custodian shall provide networking, communication equipments, Uninterrupted Power Supply System, computers, PCs, dump terminals, servers, printers and other computer peripherals as may be specified by the Directorate General of Systems. Consequently , the last line of the paragraph 5.2 of the circular No.13/2009-Customs stands modified. 

Service Tax

Circular No. 115/09/2009-ST Dated 31.07.2009 - Service tax on commission paid to Managing Director / Directors by the company -regarding

Remunerations paid to Managing Director / Directors of companies whether whole-time or independent when being compensated for their performance as Managing Director/Directors would not be liable to service tax. The Managing Director / Directors (Whole-time or Independent) being part of Board of Directors perform management function and they do not perform consultancy or advisory function. The definition of management consultant service makes it clear that what is envisaged from a consultant is advisory service and not the actual performance of the management function. The payments made by Companies, to Directors cannot be termed as payments for providing management consultancy service. Therefore, it is clarified that the amount paid to Directors (Whole-time or Independent) is not chargeable to service tax under the category 'Management Consultancy service'. However, in case such directors provide any advice or consultancy to the company, for which they are being compensated separately, such service would become chargeable to service tax.

• SECURITIES EXCHANGE BOARD OF INDIA

Press Release No. 246/2009 Dated 05.08.2009 - Payment of commission for ASBA in issue process

SEBI, vide circular dated August 5, 2009, has clarified that in a public issue, both the type of applications i.e. ASBA applications (uploaded by Self Certified Syndicate Banks) as well as non-ASBA applications (uploaded by Syndicate Members), shall be treated on par for the purpose of payment of commission and the commission shall be paid accordingly to Self Certified Syndicate Banks or Syndicate Members as the case may be.

PMD Circular No. SEBI/CFD/DCR/TO/Cir-01/2009/06/08 Dated 06.08.2009 - Interpretative circular under regulation 5 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations 1997 - Applicability of provisions of regulation 11 (2) thereof, as amended on October 30, 2008

SEBI has clarified that The acquisition, within the limit of five per cent (5%) under the second proviso to sub-regulation (2) of regulation 11, may be made by an acquirer who, together with persons acting in concert with him, holds fifty five per cent (55 %) or more but less than seventy five per cent (75 %) of the shares or voting rights in the target company and may acquire additional shares or voting rights upto a maximum of five per cent (5 %) voting rights in the target company in one or more tranches, without any restriction on the time-frame within which the same can be acquired.

Consequent to such acquisition, the percentage of shareholding / voting rights of the acquirer, together with persons acting in concert with him, in the target company, shall not increase beyond seventy five per cent (75 %). This limit is applicable irrespective of the level of minimum public shareholding required to be maintained by the target company in terms of clause 40A of the Listing Agreement.

• Insurance Regulatory and Development Authority

Circular No. 025/IRDA/F&A/CIR/2009-10 Dated 05.08.2009 - Guidelines on Corporate Governance for the Insurance Sector

Insurance Regulatory and Development Authority has issued the Exposure Draft on Corporate Governance for the Insurance Sector vide Press Release dated May 28, 2009 inviting comments from all stakeholders. The Guidelines on "Corporate Governance for the Insurance Sector" have now been finalized based on the requisite modifications and are placed at Annexure II. It may be observed that the companies are required to take necessary action to ensure that the compliance of the Guidelines is in place latest from the financial year commencing April 01, 2010. These final guidelines may now be placed before the Boards of the Company along with an action plan towards compliance. A Compliance Report may be furnished to the Authority in due course.