Date post: | 04-Jun-2018 |
Category: |
Documents |
Upload: | leostarcpl |
View: | 235 times |
Download: | 0 times |
of 15
8/13/2019 Amitabh Banerjee Mamta bachchan
1/15
MISSIVEVolume XXX
October 2013
8/13/2019 Amitabh Banerjee Mamta bachchan
2/15
Topics PageNo
Direct Tax 1Transfer Pricing 3Service Tax 4Value Added Tax 6Customs 6FEMA 8
Company Law 10Transactions that madeheadlines
11
Never hold your head high withpride or ego, even the winner of a goldmedal gets his medal only when heputs his head down
Index
Dear Patron
Here we are with the Thirtiethsuccessive issue of our monthly
Missive.
We trust you will enjoy reading this
Missive, even while soaking in the
contents. We would very much
appreciate your feedback which
consistently helps us in improving
and upgrading the contents.
Thanks and regards,
Knowledge Management Team
8/13/2019 Amitabh Banerjee Mamta bachchan
3/15
1
DIRECT TAX
VIKAS OBEROI V. DY. CIT (2013) 37taxmann.com 46 (Mumbai - Trib.)
Where share application money isreturned without any allotment of shares,such refund cannot be classified as loan oradvance under section 2(22)(e), unlessmala fide intentions of assessee areproved
Although the share application money isone kind of advance given with the
intention to obtain the allotment of shares,
yet such advance is innately different from
the normal loan or advance specified in
2(22)(e);
In the instant case, the refund of theamount was made for commercial reasons
and also in the best interests of the
prospective share applicants. Further, it
was self-explanatory that the assessee
being a 'beneficial shareholder', derived
no benefit whatsoever, when the
impugned 'share application money' was
finally returned without any allotment of
shares for commercial reasons;
Therefore, the share application moneymight have been an advance but it was
not advance which was referred to in
section 2(22)(e). Such advances, when
returned without any allotment or part
allotment of shares to the applicants,
would not take a nature of the loan merely
because the same was repaid or returned
or refunded in the same year or later on
after keeping the money for some timewith the company;
As the original intention of payment ofshare application money was towards the
allotment of shares of any kind, the same
couldnt be deemed as 'loan or advance',
unless the mala fide intentions were proved
by the AO with evidence.
ANL SINGAPORE PTE. LTD V. DY. DIT (2013)
37 taxmann.com 131 (Mumbai-Trib)
Business income of NR isnt taxable if itsdependent agent is remunerated on ALPbasis and is charged to tax
The Tribunal held in favour of the assessee as
under:
Income in respect of voyages which hadbeen considered as chargeable to tax in
India as per Article 7 of the India-Singapore
DTAA was the amount on which the
assessee paid commission, etc., to CMA,
which was its AE and also a dependent
agent
The receipt in the hands of the CMA hadbeen determined at ALP under due
process of law;
Where the AE also constitutes a PE and wasremunerated on ALP, then nothing further
was left to attribute to the PE. Thus, it was
held that income in respect of voyages
couldnt be included in the hands of the
assessee
ITO, TDS V. KENDLE INDIA (P.) LTD (2013) 37taxmann.com 140 (Delhi - Trib.)
Where assessee made remittance forprocurement of commercial informationfor onward transmission to its principal,remittance made was not for availingtechnical services and did not amount toroyalty
In the instant case the assessee had entered
into a master clinical services agreement withits principal 'BHAG' for clinical trials. Assessee
had arrangement with CSPL to provide
information on clinical trial test undertaken by
CTU of University of Kelmia, Sri Lanka. It applied
for issue of certificate for non-deduction of tax
on remittances made to CSPL which had no PE
in India. The AO held that remittance for
http://sys.infosysworld.com/infosysworld/lt.php?id=cE0HAQkGAwoDC0sHUAUMAR4=DQsADQ0BSRZYCAwNCFhyS0FZUF5EVEdeFlRYDA==http://sys.infosysworld.com/infosysworld/lt.php?id=cE0HAQkGAwoDC0sHUAUMAR4=DQsADQ0BSRZYCAwNCFhyS0FZUF5EVEdeFlRYDA==http://sys.infosysworld.com/infosysworld/lt.php?id=cE0HAQkGAwoDC0sHUAUMAR4=DQsADQ0BSRZYCAwNCFhyS0FZUF5EVEdeFlRYDA==http://sys.infosysworld.com/infosysworld/lt.php?id=cE0HAQkGAwoDC0sHUAUMAR4=DQsADQ0BSRZYCAwNCFhyS0FZUF5EVEdeFlRYDA==http://sys.infosysworld.com/infosysworld/lt.php?id=cE0HAQkGAwoDC0sHUAUMAR4=DQsADQ0BSRZYCAwNCFhyS0FZUF5EVEdeFlRYDA==http://sys.infosysworld.com/infosysworld/lt.php?id=cE0HAQkGAwoDC0sHUAUMAR4=DQsADQ0BSRZYCAwNCFhyS0FZUF5EVEdeFlRYDA==http://sys.infosysworld.com/infosysworld/lt.php?id=cE0HAQkGAwoDC0sHUAUMAR4=DQsADQ0BSRZYCAwNCFhyS0FZUF5EVEdeFlRYDA==8/13/2019 Amitabh Banerjee Mamta bachchan
4/15
2
clinical services was in nature of royalty and
was liable to be taxed in India. On appeal, the
CIT (A) reversed the order of AO.
The Tribunal held in favour of the assessee as
under:
The services in question were services forsupply of information which assessee was
not using for any technical know-how but it
was working as a conduit for supply of this
information further to its principal;
Thus, the remittance made by the assesseewas not for availing of technical services
and did not amount to royalty and
therefore was not liable for withholding
taxes.
Protocol to India-Australia DTAAForce of
attraction concept removed; PE redefined
The protocol amending the agreement
between the Government of India and
Australia, signed on the December 16, 2011,
has been notified on September 20, 2013 and
is effective from April 2, 2013. Now Force of
attraction' concept is removed from Article
7(1) with insertion of new Article 7(1). As per
the new clause, the business profits of the
enterprise may be taxed in the other State butonly so much of them as are attributable to
that PE.
Threshold limit for establishing Service PE has
been increased to 183 days. Earlier treaty did
not provide for any threshold limit for
establishing construction PE. However, the
protocol provides for threshold limit of 183 days
and 90 days on use of substantial equipment
and on activities in connection with
exploration of natural resources.
CIT v. Gujarat Flouro Chemicals (SC) SLP
(C) No. 11406 of 2008 Order dt. 18th Sep13
Section 244A: The department is not
obliged to pay interest on interest as that is
not provided in the law (Sandik Asia 280
ITR 643 (SC), not correct and should be
reconsidered)
The question before the Supreme Court was
whether interest is payable by the Revenue to
the assessee if the aggregate of installments of
Advance Tax/TDS paid exceeds the assessed
tax? The assessee relied upon Sandvik Asia
Limited vs. CIT280 ITR 643 where it was held
that the assessee was entitled to be
compensated by the Revenue for delay in
paying to it the amounts admittedly due.
In Sandvik Asia280 ITR 643 (SC) the Supreme
Court held that if the department delays
paying interest on the refunded amount, the
assessee is entitled to interest on interest.
Subsequently, inCIT vs. Gujarat Flouro
Chemicals,a view was expressed that Sandvik
Asia280 ITR 643 (SC) did not lay down the
correct law and ought to be reconsidered. The
matter was referred to a larger Bench. HELD by
the larger Bench:
The judgment in Sandvik Asia280 ITR 643 (SC)
has been misquoted and misinterpreted by the
assessees and also by the Revenue. Their view
that in Sandvikcase this Court had directedthe Revenue to pay interest on the statutory
interest in case of delay in the payment and
that the Revenue is obliged to pay an interest
on interest in the event of its failure to refund
the interest payable within the statutory period
is not correct. In Sandvik Asia, the Court was
considering the issue whether an assessee who
is made to wait for refund of interest for
decades be compensated for the great
prejudice caused to it due to the delay in its
payment after the lapse of statutory period. Inthe facts of that case, this Court came to the
conclusion that there was an inordinate delay
on the part of the Revenue in refunding
certain amount which included the statutory
interest and therefore, directed the Revenue
to pay compensation for the same but not an
http://itatonline.org/archives/index.php/cit-vs-gujarat-flouro-chemicals-supreme-court-sandik-asia-280-itr-643-sc-is-not-correct-and-should-be-reconsidered/http://itatonline.org/archives/index.php/cit-vs-gujarat-flouro-chemicals-supreme-court-sandik-asia-280-itr-643-sc-is-not-correct-and-should-be-reconsidered/http://itatonline.org/archives/index.php/cit-vs-gujarat-flouro-chemicals-supreme-court-sandik-asia-280-itr-643-sc-is-not-correct-and-should-be-reconsidered/http://itatonline.org/archives/index.php/cit-vs-gujarat-flouro-chemicals-supreme-court-sandik-asia-280-itr-643-sc-is-not-correct-and-should-be-reconsidered/8/13/2019 Amitabh Banerjee Mamta bachchan
5/15
3
interest on interest. S. 244A provides for interest
on refunds under various contingencies. It is
clarified that it is only that interest provided for
under the statute which may be claimed by
an assessee from the Revenue and no other
interest on such statutory interest.
Citicorp Finance (India) Ltd vs. ACIT (ITAT
Mumbai) ITA 8532/Mum/2011 dt. 13th
Sep13
TDS Credit must be given even if TDS
Certificate is not available/ entry is not
shown in Form 26AS
The assessee claimed credit for TDS which was
denied by the AO on the ground that the
claim did not match the entries shown in Form
No. 26AS and that there was a discrepancy.
On appeal, the CIT(A) held that the assessee
would be entitiled to credit to the extent
shown in the computer system of the
department.
On further appeal by the assessee to the
Tribunal HELD:
The AO is not justified in denying credit forTDS on the ground that the TDS is not
reflected in the computer generated Form
26AS. In Yashpal Sahwney 293 ITR 539 the
Bombay High Court has noted the difficulty
faced by taxpayers in the matter of credit
of TDS and held that even if the deductor
had not issued a TDS certificate, still the
claim of the assessee has to be considered
on the basis of the evidence produced for
deduction of tax at source.
The Revenue is empowered to recover taxfrom the person responsible if he had not
deducted tax at source or after deducting
failed to deposit with Central Government.
The Delhi High Court has inCourt On Its
Own Motion Vs. CIT 352 ITR 273 directed
the department to ensure that credit is
given to the assessee even where the
deductor had failed to upload the correct
details in Form 26AS on the basis of
evidence produced before the
department.
Therefore, the department is required togive credit for TDS once valid TDScertificate had been produced or even
where the deductor had not issued TDS
certificates on the basis of evidence
produced by assessee regarding
deduction of tax at source and on the
basis of indemnity bond.
TRANSFER PRICING
Vodafone India Service Private Limited
Recently the Bombay High Court (HC) in the
case of Vodafone India Service Private Limited
(taxpayer), dismissed the writ petition of the
taxpayer by ruling that the TPO had jurisdiction
to identify and determine arms length price of
transactions not referred to him by the AO nor
reported by the taxpayer in the Transfer Pricing
Accountants Report.
The taxpayer claimed that the TPO did not
have jurisdiction to determine ALP of
transactions relating to sale of call centre
business and assignment of call options and
thereafter filed a writ petition before the HC to
quash the transfer pricing adjustment of INR
8,500 crores (USD 1330 Million) made by the
TPO.
The HC held that the taxpayer has more than
one alternate remedy available under theIndian Tax Law (ITL). Therefore, the remedy
provided by the statute should be availed of
and not by way of a writ petition to the HC.
The HC has purely decided on the jurisdiction
of the TPO and maintainability of the writ and
http://itatonline.org/archives/index.php/citicorp-finance-india-ltd-vs-acit-itat-mumbai-tds-credit-must-be-given-eeven-if-tds-certificate-is-not-available-entry-is-not-shown-in-form-26as/http://itatonline.org/archives/index.php/citicorp-finance-india-ltd-vs-acit-itat-mumbai-tds-credit-must-be-given-eeven-if-tds-certificate-is-not-available-entry-is-not-shown-in-form-26as/http://itatonline.org/archives/index.php/court-on-its-own-motion-vs-cit-delhi-high-court-strict-guidelines-issued-to-end-depts-tds-credit-refund-adjustment-harassment/http://itatonline.org/archives/index.php/court-on-its-own-motion-vs-cit-delhi-high-court-strict-guidelines-issued-to-end-depts-tds-credit-refund-adjustment-harassment/http://itatonline.org/archives/index.php/court-on-its-own-motion-vs-cit-delhi-high-court-strict-guidelines-issued-to-end-depts-tds-credit-refund-adjustment-harassment/http://itatonline.org/archives/index.php/court-on-its-own-motion-vs-cit-delhi-high-court-strict-guidelines-issued-to-end-depts-tds-credit-refund-adjustment-harassment/http://itatonline.org/archives/index.php/citicorp-finance-india-ltd-vs-acit-itat-mumbai-tds-credit-must-be-given-eeven-if-tds-certificate-is-not-available-entry-is-not-shown-in-form-26as/http://itatonline.org/archives/index.php/citicorp-finance-india-ltd-vs-acit-itat-mumbai-tds-credit-must-be-given-eeven-if-tds-certificate-is-not-available-entry-is-not-shown-in-form-26as/8/13/2019 Amitabh Banerjee Mamta bachchan
6/15
8/13/2019 Amitabh Banerjee Mamta bachchan
7/15
5
Notification no. 25/2012 has been amended
and following additional services are being
declared as exempted from service tax:
Any services provided by-
(i) the National Skill Development
Corporation set up by the Government of
India;
(ii) a Sector Skill Council approved by the
National Skill Development Corporation;
(iii) an assessment agency approved by the
Sector Skill Council or the National Skill
Development Corporation;
(iv) a training partner approved by the
National Skill Development Corporation or the
Sector Skill Council
in relation to (a) the National Skill Development
Programme implemented by the National Skill
Development Corporation; or (b) a vocational
skill development course under the National
Skill Certification and Monetary Reward
Scheme; or (c) any other Scheme
implemented by the National Skill
Development Corporation.
Notification no. 13/2013-ST. Dated: 10.09.2013
Ad-hoc Exemption Order for taxable
services provided by the Hotel or
Restaurant in the flood affected State of
Uttarakhand
In order to provide support to ensure
sustenance for the local population in the
state of Uttarakhand, Central Government
exempts the following taxable service from the
whole of service tax provided to any person inthe State of Uttarakhand, namely:
i. Services by way of renting of a room
in a hotel, inn, guest house, club, campsite or
other commercial place meant for residential
or lodging purposes;
ii. Services provided in relation to serving
of food or beverages by a restaurant, eating
joint or mess.
Further, this exemption order shall be
applicable for the abovementioned taxable
services provided during the period 17thSeptember, 2013 to 31st March, 2014.
Exemption order 01/2013-ST. Dated: 17.09.2013
Central Excise
Amendment in Notification no. 12/2012,
dated 17.03.2012
In the said notification, wherein certain goods
were exempted from excise duty, entry no. 327
(goods specified in List 9 for the manufactureof rotor blades for wind operated electricity
generators) has been amended to include
manufacture of intermediates, parts and sub-
parts of rotor blades, for wind operated
electricity generators.
Notification no. 27/2013. Dated: 12.09.2013
Amendment in CENVAT Credit Rules
In rule 3 of the CENVAT Credit Rules, 2004, forsub-rule (5A), the following sub-rule shall be
substituted-
(5A) (a)If the capital goods, on which
CENVAT credit has been taken, are removed
after being used, the manufacturer or provider
of output services shall pay an amount equal
to the CENVAT Credit taken on the said capital
goods reduced by the percentage points
calculated by straight line method as specified
below for each quarter of a year or part
thereof from the date of taking the CENVATCredit, namely:-
(i) for computers and computer peripherals:
for each quarter in the first year @ 10%
for each quarter in the second year @ 8%
8/13/2019 Amitabh Banerjee Mamta bachchan
8/15
6
for each quarter in the third year @ 5%
for each quarter in the fourth and fifth year @
1%
(ii) for capital goods, other than computers
and computer peripherals @ 2.5% for each
quarter:
Provided that if the amount so calculated is
less than the amount equal to the duty
leviable on transaction value, the amount to
be paid shall be equal to the duty leviable on
transaction value.
(b) If the capital goods are cleared as waste
and scrap, the manufacturer shall pay an
amount equal to the duty leviable on
transaction value.
Notification No. 12 /2013-CE (NT). Dated:27.09.2013
VALUE ADDED TAX
Information online in Form DP-1
Form DP-1 shall be submitted online by all the
dealers latest by 16/10/2013.
Notification No.F.3(352)/Policy/VAT/2013/751-
762. Dated: 09.09.2013
Withdrawal of privilege of VAT refund
The privilege of VAT refund has been
withdrawn in respect of the High Commission
of the Islamic Republic of Pakistan, New Delhi
for its official purchases as well as for personal
purchases of its diplomats, till further order.
Notification No.F.5(54)/Policy-II/VAT/2012-
13/769-781. Dated: 16.09.2013
Filing of stock statement
The date for filing of Stock Statement in Form
Stock-1 online for the stock available on 31st
March, 2013 has been extended to 5th
October 2013 for all the dealers.
Notification No.F.7(433)/Policy-
II/VAT/2012/part File/782-794. Dated:
16.09.2013
Amnesty scheme
Delhi Tax Compliance AchievementScheme,2013 has been announced, under
which a person may make a declaration of
the tax dues to the designated authority on or
before the 31st day of January 2014 so as to
avoid obligations of interest and penalty.
Notification No.F.3(16) / Fin. (Rev-I) /2013- 14/
dsVI /786. Dated: 20.09.2013
CUSTOMSAmendment in Notification No. 12/2012-
Customs dated 17.03.2012
The said notification, which states customs duty
rate on various items, has been amended so
as to include sugar beet seeds on which
customs duty will be payable at the rate of 5%.
Notification No. 43 /2013-Customs. Dated:
13.09.2013
Revision of customs duty rate on articles ofgold and silver jewellery and goldsmiths
and silversmiths ware
Import duty leviable on articles of jewellery
and parts thereof, of precious metal or of
metal clad with precious metal and articles of
goldsmiths or silversmiths wares and parts
thereof, of precious metal or of metal clad with
precious metal, falling under headings 7113
and 7114 respectively of the First Schedule to
the Customs Tariff Act, 1975 has beenincreased from 10% to 15%.
Notification No. 44/2013-Customs. Dated:
17.09.2013
Amendment Notification No. 36/2001-
Customs (N.T.), dated 3.08.2001
8/13/2019 Amitabh Banerjee Mamta bachchan
9/15
7
Tariff value on the following goods has been
revised:
TABLE-1
TABLE-2
S.No.
Chapter/heading/ sub-heading/ tariffitem
Description ofgoods
Tariffvalue(US $)
(1) (2) (3) (4)
1 71 or 98 Gold, in any form,in respect of which
the benefit of
entries at serial
number 321 and
323 of the
Notification No.
12/2012-Customs
436
per 10
grams
dated 17.03.2012 is
availed
2 71 or 98 Silver, in any form,in respect of which
the benefit of
entries at serial
number 322 and324 of the
Notification No.
12/2012-Customs
dated 17.03.2012 is
availed
702
per
kilogr
am
TABLE-3
S.No.
Chapter/headin
g/ sub-heading/tariffitem
Description of goods
Tariff value(US $ PerMetric Tons )
(1) (2) (3) (4)
1 080280 Areca nuts 1870 (i.e. nochange)
Notification No. 102/2013-CUSTOMS (N. T.).
Dated: 30.09.2013
Recent Case Laws:
Whether sales tax or service tax is
applicability on hire charges received on
transfer of right to use goods
Recently in the case of State of Andhra
Pradesh v/s RashtriyaIspat Nigam Limited.,
Honorable Supreme Court has observed that
when the effective control of the goods
remains in the hands of the transferor only,
despite of it being used by the transferee, then
hire charges received in lieu of the goods
used, is not leviable to sales tax.
Goods are merely given to the transferee for
specific use, but transferee cannot use them
as per his own will, which implies that the
effective control and possession remains in the
S.
No.
Chapter/
heading/sub-heading/tariff item
Description
of goods
Tariff
value US $(PerMetricTonne)
(1) (2) (3) (4)
1 1511 10 00 Crude PalmOil
809
2 1511 90 10 RBD PalmOil
862
3 1511 90 90 Others Palm Oil
836
4 1511 10 00 CrudePalmolein
883
5 1511 90 20 RBDPalmolein
886
6 1511 90 90 Others Palmolein
885
7 1507 10 00 CrudeSoyabean
Oil
966
8 7404 00 22 Brass Scrap(all grades)
3860
9 1207 91 00 Poppyseeds
2556
8/13/2019 Amitabh Banerjee Mamta bachchan
10/15
8
hands of the transferor only. Further, goods
being in the custody of the transferee do not
militate against possession.
The essential condition of section 5E of the
Andhra Pradesh general Sales Tax Act for levyof sales tax involves transfer of right to use, but
here the right to use goods is not transferred
and hence sales tax is not leviable on hire
charges.However, as per Section 66E of the Finance
Act, 1994, as amended declared Service
includes when there is transfer of goods by
way of hiring, leasing, licensing or in any such
manner without transfer of right to use such
goods. Hence service tax will be levied byvirtue of such transaction falling in the
declared service.
FEMA
A.P. (DIR Series) Circular No. 31 dated
September 4, 2013
External Commercial Borrowings (ECB)
from the foreign equity holder
On a review, subject to the conditions
prescribed in the circular, it has been decided
to permit eligible borrowers to avail of ECB
under the approval route from their foreign
equity holder company with minimum
average maturity of 7 years for general
corporate purposes.
A.P. (DIR Series) Circular No. 39 datedSeptember 6, 2013
Export and Import of Currency
As per Regulation (2) of Foreign Exchange
Management (Export and Import of Currency)
(Amendment) Regulations, 2009, notified vide
Notification No. FEMA 195/RB-2009 dated July
7, 2009, any person resident in India may take
outside India or having gone out of India on a
temporary visit, may bring into India (other
than to and from Nepal and Bhutan) currency
notes of Government of India and ReserveBank of India notes up to an amount not
exceeding Rs.7,500 per person.
As a measure of enhanced flexibility any
person resident in India, may take outside India
(other than to Nepal and Bhutan) currency
notes of Government of India and Reserve
Bank of India notes up to an amount not
exceeding Rs.10,000 (Rupees ten thousand
only) per person; and who had gone out of
India on a temporary visit, may bring into Indiaat the time of his return from any place outside
India (other than from Nepal and Bhutan),
currency notes of Government of India and
Reserve Bank of India notes up to an amount
not exceeding Rs.10,000 (Rupees ten thousand
only) per person.
A.P. (DIR Series) Circular No. 42 dated
September 12, 2013
Foreign Investment in IndiaGuidelines forcalculation of total foreign investment in
Indian companies, transfer of ownership
and control of Indian companies and
downstream investment by Indian
companies
On a review of the policy, condition (d) in Para
6 (ii) of Annex to A.P. (DIR Series) Circular No.1
dated July 04, 2013, as regards downstreaminvestments by an Indian company which is
not owned and/or controlled by resident
entity/ties, has been amended.
The amendment is that now Downstream
investments through internal accruals are
permissible by an Indian company, subject to
8/13/2019 Amitabh Banerjee Mamta bachchan
11/15
9
the provisions of clause 6(i) and as also
elaborated in the Circular as against
Downstream investments through internal
accruals being permissible by an Indian
company engaged only in activity of investing
in the capital of another Indian company/ies,subject to the provisions of the above circular.
A.P. (DIR Series) Circular No. 43 dated
September 13, 2013
Export of Goods and Services-
Simplification and Revision of Declaration
Form for Exports of Goods/Softwares
The existing form used for declaration of
exports of Goods/Softwares has beensimplified and a common form called Export
Declaration Form (EDF) has been devised to
declare all types of export of goods from Non-
EDI ports and a common SOFTEX Form to
declare single as well as bulk software exports.
The EDF will replace the existing GR/PP form
used for declaration of export of Goods. The
procedure relating to the exports of goods
through EDI ports will remain the same and SDF
form will be applicable as hitherto.
Under the revised procedure, the exporters will
have to declare all the export transactions,
including those less than US$25000, in the form
as applicable.
A.P. (DIR Series) Circular No. 44 dated
September 13, 2013
Foreign Direct Investment (FDI) in India
Review of FDI policydefinition for controland sector specific conditions
This circular defines the revised definition of the
term Control as under:
'Control' shall include the right to appoint a
majority of the directors or to control the
management or policy decisions including by
virtue of their shareholding or management
rights or shareholders agreements or voting
agreements.
It also lists that the government of HimachalPradesh and Karnataka have given their
consent to implement the FDI policy on Multi
Brand Retail Trading in Himachal Pradesh and
Karnataka respectively.
Further, the extant policy on FDI caps and
routes for various sectors has since been
reviewed. Accordingly, in order to bring
uniformity in the sectoral classification position
for FDI as notified under the Consolidated FDI
Policy Circular with the FEMA Regulations,Annex B of Schedule 1 to Notification No.
FEMA. 20/2000-RB dated 3rd May 2000, has
been suitably revised and the updated list is
given at the Annex.
A.P. (DIR Series) Circular No. 48 dated
September 18, 2013
External Commercial Borrowings (ECB)
Policy Liberalisation of definition ofInfrastructure Sector
This Circular contains the expanded definition
for infrastructure sector for the purpose of
availing ECB.
A.P. (DIR Series) Circular No. 53 dated
September 24, 2013
Trade Credits for Import into India
As per the extant guidelines, AD Category - I
banks may approve availing of trade credit
not exceeding USD 20 million up to a maximum
period of five years (from the date of
shipment) for companies in the infrastructure
sector, subject to certain terms and conditions
8/13/2019 Amitabh Banerjee Mamta bachchan
12/15
10
stipulated therein. It is also stipulated that AD
Category - I banks are not permitted to issue
Letters of Credit/guarantees/Letter of
Undertaking (LoU) /Letter of Comfort (LoC) in
favour of overseas supplier, bank and financial
institution for the extended period beyondthree years. No roll-over/extension is permitted
beyond the permissible period.
On a review, with immediate effect, it has
been decided to allow companies in all
sectors to avail of trade credit not exceeding
USD 20 million up to a maximum period of five
years for import of capital goods as classified
by Director General of Foreign Trade (DGFT). It
has also been decided to relax the ab-initio
contract period of 15 (fifteen) months for alltrade credits to 6 (six) months.
However, the AD Category - I banks are,
cannot issue Letters of credit/guarantees
/Letter of Undertaking (LoU) /Letter of Comfort
(LoC) in favour of overseas supplier, bank and
financial institution for the extended period
beyond three years.
All other aspects of Trade Credit policy will
remain unchanged and should be compliedwith.
A.P. (DIR Series) Circular No. 59 dated
September 30, 2013
External Commercial Borrowings (ECB)
PolicyRefinancing / Rescheduling of ECB
As per the extant guidelines, the eligible
borrowers desirous of refinancing an existing
ECB can raise fresh ECB at a higher all-in-cost /
reschedule an existing ECB at a higher all-in-
cost under the approval route subject to the
condition that the enhanced all-in-cost does
not exceed the all-in-cost ceiling prescribed as
per extant guidelines.
It has been decided, on a review, to
discontinue the facility of allowing eligible
borrowers to raise ECB at a higher all-in-cost to
refinance / reschedule an existing ECB
effective from October 01, 2013.
The scheme of refinance of existing ECB by
raising fresh ECB at lower all-in-cost, subject to
the condition that the outstanding maturity of
the original ECB is either maintained or
extended, will continue as hitherto under the
automatic route and approval route as the
case may be.
All other aspects of ECB policy shall remain
unchanged.
COMPANY LAW
Commencement Notification of
Companies Act, 2013
[Notification dated 12th September, 2013]
The Central Government notified 98 provisions
of the Companies Act, 2013, effective from the12th day of September, 2013.
Clarification on the Notification dated
12.09.2013
[General Circular No.15/2013 dated 13th
September, 2013]
The Companies Act, 2013, has been notified in
the Gazette of India on 30th August, 2013,
after receiving the approval from the President
on 29th August, 2013. For inviting the
comments/ suggestions or objections from the
stakeholders or general public, a portion of the
Draft Rules on 16 Chapters were placed on the
8/13/2019 Amitabh Banerjee Mamta bachchan
13/15
8/13/2019 Amitabh Banerjee Mamta bachchan
14/15
12
India Value Fund close to picking stakein Trivitron Healthcare for up to $24M
Arisaig Partners ups stake inMcDonalds franchisee Westlife to 6.9%
for $29M more
GMR divests 74% stake in highway unitto IDFC for $35M
Penguin Random House acquires ABPGroups stake in Indian arm for $8.5M
Barclays to shut wealth managementservices in 130 countries
Unitech's Gurgaon IT SEZ sale may bedelayed
http://www.vccircle.com/news/medical-devices/2013/09/17/india-value-fund-close-picking-stake-trivitron-healthcare-24mhttp://www.vccircle.com/news/medical-devices/2013/09/17/india-value-fund-close-picking-stake-trivitron-healthcare-24mhttp://www.vccircle.com/news/medical-devices/2013/09/17/india-value-fund-close-picking-stake-trivitron-healthcare-24mhttp://www.vccircle.com/news/medical-devices/2013/09/17/india-value-fund-close-picking-stake-trivitron-healthcare-24mhttp://www.vccircle.com/news/food-agri/2013/09/17/arisaig-partners-ups-stake-mcdonald%E2%80%99s-franchisee-westlife-69-29m-morehttp://www.vccircle.com/news/food-agri/2013/09/17/arisaig-partners-ups-stake-mcdonald%E2%80%99s-franchisee-westlife-69-29m-morehttp://www.vccircle.com/news/food-agri/2013/09/17/arisaig-partners-ups-stake-mcdonald%E2%80%99s-franchisee-westlife-69-29m-morehttp://www.vccircle.com/news/food-agri/2013/09/17/arisaig-partners-ups-stake-mcdonald%E2%80%99s-franchisee-westlife-69-29m-morehttp://www.vccircle.com/news/food-agri/2013/09/17/arisaig-partners-ups-stake-mcdonald%E2%80%99s-franchisee-westlife-69-29m-morehttp://www.vccircle.com/news/construction/2013/09/17/gmr-divests-74-stake-highway-unit-idfc-35mhttp://www.vccircle.com/news/construction/2013/09/17/gmr-divests-74-stake-highway-unit-idfc-35mhttp://www.vccircle.com/news/construction/2013/09/17/gmr-divests-74-stake-highway-unit-idfc-35mhttp://www.vccircle.com/news/construction/2013/09/17/gmr-divests-74-stake-highway-unit-idfc-35mhttp://www.vccircle.com/news/consumer/2013/09/23/penguin-random-house-acquires-abp-group%E2%80%99s-stake-indian-arm-85mhttp://www.vccircle.com/news/consumer/2013/09/23/penguin-random-house-acquires-abp-group%E2%80%99s-stake-indian-arm-85mhttp://www.vccircle.com/news/consumer/2013/09/23/penguin-random-house-acquires-abp-group%E2%80%99s-stake-indian-arm-85mhttp://www.vccircle.com/news/consumer/2013/09/23/penguin-random-house-acquires-abp-group%E2%80%99s-stake-indian-arm-85mhttp://www.vccircle.com/news/consumer/2013/09/23/penguin-random-house-acquires-abp-group%E2%80%99s-stake-indian-arm-85mhttp://www.vccircle.com/news/banking/2013/09/26/barclays-shut-wealth-management-services-130-countrieshttp://www.vccircle.com/news/banking/2013/09/26/barclays-shut-wealth-management-services-130-countrieshttp://www.vccircle.com/news/banking/2013/09/26/barclays-shut-wealth-management-services-130-countrieshttp://www.vccircle.com/news/banking/2013/09/26/barclays-shut-wealth-management-services-130-countrieshttp://www.vccircle.com/news/real-estate/2013/09/26/unitechs-gurgaon-it-sez-sale-may-be-delayedhttp://www.vccircle.com/news/real-estate/2013/09/26/unitechs-gurgaon-it-sez-sale-may-be-delayedhttp://www.vccircle.com/news/real-estate/2013/09/26/unitechs-gurgaon-it-sez-sale-may-be-delayedhttp://www.vccircle.com/news/real-estate/2013/09/26/unitechs-gurgaon-it-sez-sale-may-be-delayedhttp://www.vccircle.com/news/real-estate/2013/09/26/unitechs-gurgaon-it-sez-sale-may-be-delayedhttp://www.vccircle.com/news/real-estate/2013/09/26/unitechs-gurgaon-it-sez-sale-may-be-delayedhttp://www.vccircle.com/news/banking/2013/09/26/barclays-shut-wealth-management-services-130-countrieshttp://www.vccircle.com/news/banking/2013/09/26/barclays-shut-wealth-management-services-130-countrieshttp://www.vccircle.com/news/consumer/2013/09/23/penguin-random-house-acquires-abp-group%E2%80%99s-stake-indian-arm-85mhttp://www.vccircle.com/news/consumer/2013/09/23/penguin-random-house-acquires-abp-group%E2%80%99s-stake-indian-arm-85mhttp://www.vccircle.com/news/construction/2013/09/17/gmr-divests-74-stake-highway-unit-idfc-35mhttp://www.vccircle.com/news/construction/2013/09/17/gmr-divests-74-stake-highway-unit-idfc-35mhttp://www.vccircle.com/news/food-agri/2013/09/17/arisaig-partners-ups-stake-mcdonald%E2%80%99s-franchisee-westlife-69-29m-morehttp://www.vccircle.com/news/food-agri/2013/09/17/arisaig-partners-ups-stake-mcdonald%E2%80%99s-franchisee-westlife-69-29m-morehttp://www.vccircle.com/news/food-agri/2013/09/17/arisaig-partners-ups-stake-mcdonald%E2%80%99s-franchisee-westlife-69-29m-morehttp://www.vccircle.com/news/medical-devices/2013/09/17/india-value-fund-close-picking-stake-trivitron-healthcare-24mhttp://www.vccircle.com/news/medical-devices/2013/09/17/india-value-fund-close-picking-stake-trivitron-healthcare-24m8/13/2019 Amitabh Banerjee Mamta bachchan
15/15
Disclaimer: This document has been prepared on the
basis of Companies Bill, 2011 as passed in the Lok
Sabha on 18th December, 2012. SPN does not own
the responsibility of any error or omission. The users
and readers are advised to seek specific opinion
before acting upon this document.
w ww.spnagrath.com
A-380, Defence Colony, New Delhi110024, India.