Clarification regarding place of removal – reg.

Attention is invited to Circular No. Calvin Klein Boxer Hombre 988/12/2014-CX dated 20.10.2014 issued from F. No.
267/49/2013-CX.8 on the above subject wherein it was clarified that the place of removal needs
to be ascertained in terms of provisions of Central Excise Act, 1944 read with provisions of the
Sale of Goods Act, 1930 and that payment of transport, payment of insurance etc are not the
relevant considerations to ascertain the place of removal. The place where sale takes place or
when the property in goods passes from the seller to the buyer is the relevant consideration to
determine the place of removal.
2. In this regard, a demand has been raised by the trade that it may be clarified that in the
case of exports, for purposes of CENVAT credit of input services, the place of removal is the
port or the airport from where the goods are finally exported.
3. The matter has been examined. Ropa Interior Calvin Klein Mujer It is seen that section 23 of the Sale of Goods Act, 1930
provides that where, in pursuance of the contract, the seller delivers the goods to the buyer or to a
carrier or other bailee (whether named by the buyer or not) for the purpose of transmission to the
buyer, and does not reserve the right of disposal, he is deemed to have unconditionally
appropriated the goods to the contract, and therefore, in view of the provisions of the Section 23
(1) of the Sale of Goods Act, 1930, the property in the goods would thereupon pass to the buyer.
Similarly, section 39 of the Sale of Goods Act, 1930 provides that where, in pursuance of a
contract of sale, the seller is authorized or required to send the goods to the buyer, delivery of the
goods to a carrier, whether named by the buyer or not for the purpose of transmission to the buyer, or delivery of the goods to a wharfinger for safe custody, is prima facie deemed to be a
delivery of the goods to the buyer.

In most of the cases, therefore, it would appear that handing over of the goods to the
carrier/transporter for further delivery of the goods to the buyer, with the seller not reserving the
right of disposal of the goods, would lead to passing on of the property in goods from the seller
to the buyer and it is the factory gate or the warehouse or the depot of the manufacturer which
would be the place of removal since it is here that the goods are handed over to the transporter
for the purpose of transmission to the buyer. T Shirt Kenzo Homme It is in this backdrop that the eligibility to Cenvat
Credit on related input services has to determined.
5. Clearance of goods for exports from a factory can be of two types. The goods may be
exported by the manufacturer directly to his foreign buyer or the goods may be cleared from the
factory for export by a merchant exporter.
6. In the case of clearance of goods for export by manufacturer exporter, shipping bill is
filed by the manufacturer exporter and goods are handed over to the shipping line. Polo Philipp Plein After Let
Export Order is issued, it is the responsibility of the shipping line to ship the goods to the foreign
buyer with the exporter having no control over the goods. Calvin Klein Underwear Outlet In such a situation, transfer of property
can be said to have taken place at the port where the shipping bill is filed by the manufacturer
exporter and place of removal would be this Port/ICD/CFS. Needless to say, eligibility to
CENVAT Credit shall be determined accordingly.
7. In the case of export through merchant exporters, however, two transactions are involved.
First is the transaction between the manufacturer and the merchant exporter. The second
transaction is that between the merchant exporter and the foreign buyer. As far as Central Excise
provisions are concerned, the place of removal shall be the place where the property in the goods
passes from the manufacturer to the merchant exporter. As explained in paragraph 4 supra, in
most of the cases, this place would be the factory gate since it is here that the goods are
unconditionally appropriated to the contract in cases where the goods are sealed in the factory,
either by the Central Excise officer or by way of self-sealing with the manufacturer of export
goods taking the responsibility of sealing and certification, in terms of notification no. Boxer Calvin Klein Al Mayor 19/2004-
Central Excise (N.T.) dated 6.9.2004, etc.
8. Calvin Klein Bañadores However, in isolated cases, it may extend further also depending on the facts of the case,
but in no case, this

place can be beyond the Port/ ICD/CFS where shipping bill is filed by the
merchant exporter.

The government has notified amendments to the Companies Act, Comprar Bikini Calvin Klein which makes it easier to do business and provides for stricter penalties for fraud cases.

The amendments, which were passed by Parliament earlier this month, have been made to the Companies Act, 2013, mainly to deal with board resolutions, Calvin Klein Boxer Baratos utilisation of unclaimed dividends and setting-up of a firm among others as well as to bring the law in tune with the global standards.

– The Act has removed threshold limit for minimum capital required for formation of private or public sector firm.

For setting-up a private company, Calvin Klein Ropa Interior Hombre Comprar Calzoncillos Calvin Klein new Act has done away with the norms of Rs 1 lakh minimum capital requirement and Rs 5 lakh in case of a public sector unit and various other amendments.

Besides, Calzoncillos Boxer Calvin Klein the concept of company seal has also been done away with.

“Provided that in case a company does not have a common seal, the authorisation…shall be made by two directors or by a director and the company Secretary, wherever the company has appointed a company Secretary,” the notification said.

With regard to acceptance of deposits by the companies, in contravention with regulations, the new law said that if a firm fails to repay the deposit or any interest due thereon within the time specified, it will be “punishable with fine which shall not be less than Rs 1 crore but which may extend to Rs 10 crore” in addition to payment of deposits.

“…every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years or with fine which shall not be less than Rs 25 lakh but which may extend to Rs 2 crore, Calvin Klein Bañadores or with both,” said the notification.

In case of dividend, the amended Act said that no company will declare dividend unless “carried over previous losses and depreciation not provided in previous year or years are set off against profit of the company for the current year.”

The unclaimed dividend will not be transferred to Investor Education and Protection Fund.

With regard to trying fraud cases, the new norms said that all cases under the Companies Act cannot be tried by a special court and that only serious offences will go to such courts, while the others would be tried by normal magisterial court.

The Act has set a threshold limit for auditors to report frauds to central government with rider.

“…if an auditor of a company in course of performance of his duties as auditor, Ropa Interior Calvin Klein Mujer Barata has reason to believe that an offence of fraud involving such amount as may be prescribed, is being or has been committed in the company by its officers or employees, the auditor shall report the matter to the Central Government,” as per notified Act.

“In case of a fraud involving lesser than the specified amount, the auditor shall report the matter to the audit committee, Slip Calvin Klein Calvin Klein Boxer ” it added.

Besides,

Accounting Standard (AS) 16 Borrowing Costs

Objective

The objective of this Standard is to prescribe the accounting treatment for borrowing costs.

Scope

This Standard should be applied in accounting for borrowing costs.

This Standard does not deal with the actual or imputed cost of owners’ equity, including preference share capital not classified as a liability.

Definitions

  1. The following terms are used in this Standard with the meanings specified:

  • Borrowing costs are interest and other costs incurred by an enterprise in connection with the borrowing of funds.

  • A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.

Explanation:

What constitutes a substantial period of time primarily depends on the facts and circumstances of each case. Adidas Yeezy Boost 750 Pas Cher However, ordinarily, a period of twelve months is considered as substantial period of time unless a shorter or longer period can be justified on the basis of facts and circumstances of the case. In estimating the period, time which an asset takes, technologically and commercially, to get it ready for its intended use or sale is considered.

  1. Borrowing costs may include:

1) Interest and commitment charges on bank borrowings and other short-term and long-term borrowings;

2) Amortisation of discounts or premiums relating to borrowings;

3) Amortisation of ancillary costs incurred in connection with the arrangement of borrowings;

4) Finance charges in respect of assets acquired under finance leases or under other similar arrangements; and

exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

Explanation:

Exchange differences arising from foreign currency borrowing and considered as borrowing costs are those exchange differences which arise on the amount of principal of the foreign currency borrowings to the extent of the difference between interest on local currency borrowings and interest on foreign currency borrowings. T Shirt Philipp Plein Pas Cher Thus, the amount of exchange difference not exceeding the difference between interest on local currency borrowings and interest on foreign currency borrowings is considered as borrowings cost to be accounted for under this Standard and the remaining exchange difference, if any, is accounted for under AS 11, The Effect of Changes in Foreign Exchange Rates. For this purpose, the interest rate for the local currency borrowings is considered as that rate at which the enterprise would have raised the borrowings locally had the enterprise not decided to raise the foreign currency borrowings.

Examples of qualifying https://www.acheterviagrafr24.com/achat-viagra-en-ligne-suisse/ assets are manufacturing plants, power generation facilities, inventories that require a substantial period of time to bring them to a saleable condition, and investment properties. Other investments, and those inventories that are routinely manufactured or otherwise produced in large quantities on a repetitive basis over a short period of time, are not qualifying assets. T Shirt Versace Assets that are ready for their intended use or sale when acquired also are not qualifying assets.

Recognition

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset should be capitalised as part of the cost of that asset. T Shirt Balmain The amount of borrowing costs eligible for capitalisation should be determined in accordance with this Standard. Other borrowing costs should be recognised as an expense in the period in which they are incurred.

  1. Borrowing costs are capitalised as part of the cost of a qualifying asset when it is

    probable that they will result in future economic benefits to the enterprise and the costs can be measured reliably. Other borrowing costs are recognised as an expense in the period in which they are incurred.

Borrowing Costs Eligible for Capitalisation

The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are those borrowing costs that would have been avoided if the expenditure on the qualifying asset had not been made. When an enterprise borrows funds specifically for the purpose of obtaining a particular qualifying asset, the borrowing costs that directly relate to that qualifying asset can be readily identified.

  1. It may be difficult to identify a direct relationship between particular borrowings and a qualifying asset and to determine the borrowings that could otherwise have been avoided. Such a difficulty occurs, for example, when the financing activity of an enterprise is co-ordinated centrally or when a range of debt instruments are used to borrow funds at varying rates of interest and such borrowings are not readily identifiable with a specific qualifying asset. As a result, the determination of the amount of borrowing costs that are directly attributable to the acquisition, construction or production of tadalafil nicaragua a qualifying asset is often difficult and the exercise of judgement is required.

  1. To the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation on that asset should be determined as the actual borrowing costs incurred on that borrowing during the period less any income on the temporary investment of those borrowings.

  1. The financing arrangements for a qualifying asset may result in an enterprise obtaining borrowed funds and incurring associated borrowing costs before some or all of the funds are used for expenditure on the qualifying asset. In such circumstances, the funds are often temporarily invested pending their expenditure on the qualifying asset. In determining the amount of borrowing costs eligible for capitalisation during nombres de viagras a period, any income earned on the temporary investment of those borrowings is deducted from the borrowing costs incurred.

  1. To the extent that funds are borrowed generally and used for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation should be determined by applying a capitalisation rate to the expenditure on that asset. The capitalisation rate should be the weighted average of the borrowing costs applicable to the borrowings of the enterprise that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs capitalised during a period should not exceed the amount of borrowing costs incurred during that period.

Excess of the Carrying Amount of the Qualifying Asset over Recoverable Amount

When the carrying amount or the expected ultimate cost of the qualifying asset exceeds its recoverable amount or net realisable value, the carrying amount is written down or written off in accordance with the requirements of other Accounting Standards. In certain circumstances, the amount of the write-down or write-off is written back in accordance with those other Accounting Standards.

Commencement of Capitalisation

The capitalisation of borrowing costs as part of the cost of a qualifying asset should commence when all the following conditions are satisfied:

1) Expenditure for the acquisition, construction or production of a qualifying asset is being incurred;

2) Borrowing costs are being incurred; and

3) Activities that are necessary to prepare the asset for its intended use or sale are in progress.

Expenditure on a qualifying asset includes only such expenditure that has resulted in payments of cash, transfers of other assets or the assumption of interest-bearing liabilities. Expenditure is reduced by any progress payments received and grants received in connection with the asset (see Accounting Standard 12, Accounting for Government Grants). The average carrying amount of the asset during a period, including borrowing costs previously capitalised, is normally a reasonable approximation of the expenditure to which the capitalisation rate is applied in that period.

  1. The activities necessary to prepare the asset for its intended use or sale encompass more than the physical construction of the asset. Slip Calvin Klein Outlet They include technical and administrative work prior to the commencement of physical construction, such as the activities associated with obtaining permits prior to the commencement of the physical construction. However, such activities exclude the holding of an asset when no production or development that changes the asset’s condition is taking place. Adidas Yeezy 350 Pas Cher For example, borrowing costs incurred while land is under development are capitalised during the period in which activities related to the development are being undertaken. However, borrowing costs incurred while land acquired for building purposes is held without any associated development activity do not qualify for capitalisation.

Suspension of Capitalisation

Capitalisation of borrowing costs should be suspended during extended periods in which active development is interrupted.

Borrowing costs may be incurred during an extended period in which the activities necessary to prepare an asset for its intended use or sale are interrupted. Such costs are costs of holding partially completed assets and do not qualify for capitalisation. However, capitalisation of borrowing costs is not normally suspended during a period when substantial technical and administrative work is being carried out. Capitalisation of borrowing costs is also not suspended when a temporary delay is a necessary part of the process of getting an asset ready for its intended use or sale. For example, capitalisation continues during the extended period needed for inventories to mature or the extended period during which high water levels delay construction of a bridge, if such high water levels are common during the construction period in the geographic region involved.

Cessation of Capitalisation

Capitalisation of borrowing costs should cease when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete.

  1. An asset is normally ready for its intended use or sale when its physical construction or production is complete even though routine administrative work might still continue. If minor modifications, such as the decoration of a property to the user’s specification, are all that are outstanding, this indicates that substantially all the activities are complete.

When the construction of a qualifying asset is completed in parts and a completed part is capable of being used while construction continues for the other parts, capitalisation of borrowing costs in relation to a part should cease when substantially all the activities necessary to prepare that part for its intended use or sale are complete.

A business park comprising several buildings, each of which can be used individually, is an example of a qualifying asset for which each part is capable of being used while construction continues for the other parts. An example of a qualifying asset that needs to be complete before any part can be used is an industrial plant involving several processes which are carried out in sequence at different parts of the plant within the same site, such as a steel mill.

Disclosure

The financial statements should disclose:

1) the accounting policy adopted for borrowing costs; and

2) the amount of borrowing costs capitalised during the period.

Illustration

Note: This illustration does not form part of the Accounting Standard. Its purpose is to assist in clarifying the meaning of paragraph 4(e) of the Standard.

Facts:

XYZ Ltd. has taken a loan of USD 10,000 on April 1, 20X3, for a specific project at an interest rate of 5% p.a., payable annually. On April 1, 20X3, the exchange rate between the currencies was Rs. 45 per USD. The exchange rate, as at March 31, 20X4, is Rs. 48 per USD. The corresponding amount could have been borrowed by XYZ Ltd. in local currency at an interest rate of 11 per cent annum as on April 1, 20X3.

The following computation would be made to determine the amount of borrowing costs for the purposes of paragraph 4(e) of AS 16:

Interest for the period = USD 10,000 × 5% × Rs. 48/USD = Rs. 24,000.

Increase in the liability towards the principal amount = USD 10,000 × (48–45) = Rs. 30,000.

Interest that would have resulted if the loan was taken in Indian currency = USD 10,000 × 45 × 11% = Rs. 49,500.

Difference between interest on local currency borrowing and foreign currency borrowing = Rs. Moda 49,500 – Rs. 24,000 = Rs. 25,500.

Therefore, out of Rs. 30,000 increase in the liability towards principal amount, only Rs. 25,500 will be considered as the borrowing cost. Thus,total borrowing cost would be Rs. Ropa Interior Calvin Klein Barata 49,500 being the aggregate of interest of Rs. 24,000 on foreign currency borrowings [covered by paragraph 4(a) of AS 16] plus the exchange difference to the extent of difference between interest on local currency borrowing and interest on foreign currency borrowing of Rs. 25,500. Thus, Rs. 49,500 would be considered as the borrowing cost to be accounted for as per AS 16 and the remaining Rs. 4,500 would be considered as the exchange difference to be accounted for as per Accounting Standard (AS) 11, The Effects of Changes in Foreign Exchange Rates.

In the above example, if the interest rate on local currency borrowings is assumed to be 13% instead of 11%, the entire exchange difference of Rs. 30,000 would be considered as borrowing costs, since in that case the difference between the interest on local currency borrowings and foreign currency borrowings [i.e. Rs. 34,500 (Rs. 58,500 – Rs. 24,000)] is more than the exchange difference of Rs. 30,000. Therefore, in such a case, the total borrowing cost would be Rs. 54,000 (Rs. 24,000 + Rs.

Supreme Court / High Courts

Ss. Tangas Calvin Klein Baratos 22, 28 Business income from letting of premises to be taxed as business income

The appellant-assessee is a company incorporated under the Indian Companies Act with its main objective, as stated in the Memorandum of Association, is to acquire the properties in the city of Chennai and to let out those properties. The assessee had rented out such properties and the rental income received therefrom was shown as income from business in the return filed by the assessee. It was held that letting of the properties is in fact is the business of the assessee and hence income therefrom rightly disclosed the income under the Head Income from Business and not as ‘income from the house property’ – Chennai Properties & Investments Ltd. vs. CIT [2015] 56 taxmann.com 456 (SC)

Ss. 28, 145A(a) write off in value of stores and spares

The assessee claimed write-off was on account of deterioration in the condition of the non-moving stores since the assessee’s plants were located in remote places and near the sea. The non-moving stores and spares were corroded over a period of time due to wear and tear. This method of accounting having been adopted in the earlier years, there was no reason for the Assessing Officer to disallow the same on the ground that the accounting method had changed. Accordingly it was held that value of the closing stock so adopted is not in violation of Section 145A(a) – CIT vs. Indian Rare Earths Ltd. [2015] 57 taxmann.com 393 (Bombay)

S. 43B Meaning of expression ‘whatever name called’

The State compulsorily takes from the three mills, a vend fee for the purpose of conferring a special benefit on the said three mills, viz., the repair and replacement of existing machinery and equipment. Adidas Yeezy Boost 350 Acheter Even if the vend fee that is paid by the assessee – Sugar Mill to the State does not directly fall within the expression ‘fee’ contained in Section 43B(a), it would be a ‘fee’ by ‘whatever name called’, that is even if the vend fee is called ‘privilege’ – CIT vs. Travancore Sugars & Chemicals Ltd. Civil Appeal No. 2558 of 2005 Order dated 7/5/2015 (Supreme Court)

S43B is attracted to a case where payment is to be made to the State Government in the capacity of the State as a sovereign and not to a case where payment is to be made to the State Government in its capacity as a principal by an agent. In the instant case, the relationship between the State and the licensee is of a principal and agent/fiduciary and not that of a sovereign and a subject. The licensee does not collect the electricity duty for its own consumption or utilization. If the licensee collects the duty but does not pay the same to the Government, the statute provides mechanism for the Government to recover the same from the licensee. ITA Nos. 82 to 84 of 2004, 110 of 2005 CESC LTD. vs. CIT (Calcutta High Court) Order dated 18/12/2014

S. 45 apportionment of lump sum share purchase consideration towards negative covenants in agreement

Considering various clauses in the Share Purchase Agreement it was held that the lump sum consideration specified in the agreement can be bifurcated and a part thereof i.e. 25% to be apportioned towards the restrictive covenants – ITA No. 557 of 2006 (P & H) Date of Order 15/5/2015

S. 80-IB(10)(d) – Builtup area in housing projects for commercial use not applicable for the projects approved before 1/4/20015

The Assessee claims a deduction under section 80-IB(10), the assessee is required to comply with such a condition only if it is on the statute-book on the date of the approval of the housing project and it has nothing to do with the year in which the profits are brought to tax by the assessee. Calvin Klein Boxer It was also observed that clause (d) of section 80-IB(10) is inextricably linked to the date of the approval of the housing project and the subsequent development/construction of the same, and has nothing to do with the profits derived therefrom – CIT vs. Sarkar Builders [2015] 57 taxmann.com 313 (SC)

S. 132 Assessee can peruse reasons recorded for conducting search only during the course of assessment proceedings after completion of search

Supreme Court reiterated following principles –

(i) The authority must have information in its possession on the basis of which a reasonable belief can be founded that –(a) The concerned person has omitted or failed to produce books of account or other documents for production of which summons or notice had been issued

OR
Such person will not produce such books of account or other documents even if summons or notice is issued to him.

OR
(b) Such person is in possession of any money, bullion, jewellery or other valuable article which represents either wholly or partly income or property which has not been or would not be disclosed.

(ii) Such information must be in possession of the authorised official before the opinion is formed.

(iii) There must be application of mind to the material and the formation https://www.acheterviagrafr24.com/acheter-du-viagra-en-france-sans-ordonnance/ of opinion must be honest and bona fide. Consideration of any extraneous or irrelevant material will vitiate the belief/satisfaction.

(iv) Though Rule 112(2) of the Income Tax Rules which specifically prescribed the necessity of recording of reasons before issuing a warrant of authorisation had been repealed on and from 1st October, 1975 the reasons for the belief found should be recorded.

 

(v) The reasons, however, need not be communicated to the person against whom the warrant is issued at that stage. Adidas Ultra Boost Femme Pas Cher (vi) Such reasons, however, may have to be placed before the Court in the event of a challenge to formation of the belief of the authorised official in which event the court (exercising jurisdiction under Article 226) would be entitled to examine the relevance of the reasons for the formation of the belief though not the sufficiency or adequacy thereof.

Supreme Court also disagreed with the High Court’s observations about possibility of manipulation of records and concluded that suspicion cannot be the basis of any judicial order.

The Supreme Court also observed that the remaining findings of the High Court with regard to the satisfaction recorded by the authorities appear to be in the nature of an appellate exercise touching upon the sufficiency and adequacy of the reasons and the authenticity and acceptability of the information on which satisfaction had been reached by the authorities. Such an exercise is alien to the jurisdiction under Article 226 of the Constitution – DG(Inv) vs. Spacewood Furnishers (P.)

Ltd. [2015] 57 taxmann.com 292 (SC)

S. 254(2A) ITAT’s power to extend stay beyond 365 days

The expression ‘even if the delay in disposing of the appeal is not attributable to the assessee’ introduced by the Finance Act, 2008 is struck down as being violative of Article 14 of the Constitution of India. Where the delay in disposing of the appeal is not attributable to the assessee, the Tribunal has the power to grant extension of stay beyond 365 days in deserving cases – Pepsi Foods (P.) Ltd. Adidas Yeezy Boost 350 Homme vs. ACIT [2015] 57 taxmann.com 337 (Delhi)

ITAT

S. 2(15) Proviso to section is meant to curb exempt earning from trade and commerce and not to deny exemption to institutions carrying charitable object

The primary object of insertion of proviso to section 2(15) was to curb the practice of earning income by way of carrying on of trade or commerce and claiming the same as exempt in the garb of pursuing the alleged charitable object of general public utility. This proviso never meant to deny the exemption to those institutions, where the predominant object is undeniably a charitable object and in order to achieve the same incidental activities, essential in the given circumstances, are carried on.

The predominant activities of the Centre was not to earn income but to provide facilities for disseminating or exchanging knowledge as per the object of the society. Acheter Adidas Yeezy Boost 550 There is no gainsaying that without creating a proper platform the primary object of dissemination and exchanging of knowledge could not be achieved. Therefore, merely because incidental income was earned by assessee society for achieving its dominant object from providing hostel and catering activities, it cannot be said that the assessee was doing trade or business as contemplated under proviso to section 2(15). The Centre had to necessarily charge for the hostel, catering and use of such facilities from members/ participants since it had to recover cost and at the same time have enough funds to carry out the charitable activities – India International Centre vs. ADIT(E) [2015] 57 taxmann.com 265 (Delhi – Trib.)

Ss. 40(a)(ia), 201(1) Assessee in default

The disallowability u/ss. 40(a)(i) & 40(a)(ia), and the liability and sec. 201(1) cannot be different and they arise out of the same default. Once there is a disallowance u/ss. 40(a)(i) & 40(a)(ia), it is not possible to argue that there was no liability under Chapter XVII-B of the Act and therefore the provisions of sec. 201(1) will not be attracted. Assessee followed practice of creating provision of expenses on quarterly basis global group reporting purposes. It was also held that assessee is liable to deduct tax on such provision and assessee cannot take a plea that the payments in question are not chargeable to tax and therefore there was no obligation on its part to deduct tax at source stand – IBM India Private Ltd vs. Boxer Calvin Klein Outlet ITO(TDS) ITA Nos. 749 to 752/Bang/2012 & 1588 to 1591/Bang/2012 (Bang-ITAT) Date of order 14/5/2015

S. 54F Entitlement of exemption for purchase absolute tenancy rights

The assessee earned long term capital gains of on sale of shares. The assessee then has acquired absolute tenancy rights in respect of the flat. These rights includes rights to transfer tenancy to any person, to charge such consideration/premium for such transfer/assignment. The tenant assessee not be required to obtain any permission from the owner and also not required to pay any premium for consideration to the owner for such transfer/assignment of the tenancy rights. On these facts it was held that the assessee is entitled to claim benefit under section 54F of the Act on capital gains earned – Archana Parasrampuria vs. ITO -[2015] 57 taxmann.com 23 (Mumbai – Trib.)

S. 54F Gifting of property to spouse before claiming deduction in respect of purchase of another house

Assessee earned long term capital gains on transfer of capital assets. Bañadores Calvin Klein Hombre Baratos Calvin Klein Underwear España Against such capital gains assessee claimed deduction u/ss. 54E & 54F. However before acquiring new residential premises assessee being co-owner of the flat gift it to her spouse. Calvin Klein Bañadores Hombre Revenue challenged such gift and denied deduction u/s 54F. It was held that such gifting cannot be regarded as sham and provision of sections 27(ii) and 64(1)(iv) has no effect. It was also held that exemption u/s. 54F cannot be denied by disregarding the gift of a house property by the assessee to her spouse prior to the transfer date (of the original asset) – Smt. Maya A. Ajwani vs. ITO [2015] 56 taxmann.com 255 (Mumbai – Trib.)

S. 254 ITAT order pronounced after 90 days from hearing is not barred by limitation

The objection that order pronounced beyond the period of 60 days from the date of hearing and hence, the same was barred by limitation is not tenable. It was also observed that the function of ‘pronouncement or orders’ is not like of a nature such as an ‘actionable legal claim’ which if not claimed within the period of 60 days or 90 days, can be said to have been barred by limitation. Calvin Klein Bañadores A contention that the order was pronounced beyond the period of 60 days cannot validly be raised in a petition u/s. 254 of the Act, as the same cannot be said to be an error apparent on record – Times Guaranty Ltd. vs.

High Level Committee To Probe MAT Taxation Of Foreign Companies & FIIs Formed

The Ministry of Finance has issued a press release stating that a High Level Committee (HLC) Headed by Justice A.P. Shah on Direct Tax Matters has been constituted. T Shirt Dsquared Pas Cher The Committee consists of leading tax experts. The Committee is required to examine the matter relating to levy of MAT on FIIs for the period prior to 01.04.2015 among others. The Committee has been requested to give its recommendations on the above issue expeditiously

The Union Finance Minister Shri Arun Jaitley, while responding to the discussions on the Finance Bill in Rajya Sabha on 7th May, 2015, had announced the constitution of a Committee headed by Justice A.P. Polo Philipp Plein Pas Cher Shah to look into the issue of Minimum Alternate Tax (MAT) on Foreign Institutional Investors (FIIs) as well as other issues which are referred to it .

Accordingly, a Committee headed by Justice A.P. Shah has been constituted.

Following is the composition of the Committee:-

i) Justice A.P. Shah – Chairman

(Former Chief Justice of Delhi High Court and currently Chairman of Law Commission of India)

ii) Dr. Philipp Plein Soldes Tangas Calvin Klein Para Mujer Girish Ahuja – Member

(Chartered Accountant and formerly Associate Professor of Commerce, Shri Ram College of Commerce, University of Delhi.)

iii) Dr. T Shirt Ralph Lauren Homme T Shirt Givenchy Homme Pas Cher Comprar Calzoncillos Calvin Klein Ashok Lahiri – Member

(Formerly Chief Economic Adviser & Executive Director, ADB and currently Chairman of High Level Committee to interact with Trade and Industry on tax laws.)

To begin with, the Committee will examine the matter relating to levy of MAT on FIIs for the period prior to 01.04.2015.The Committee will also examine all the related legal provisions, judicial / quasi judicial pronouncements and such other relevant aspects as it may consider appropriate. Bragas Calvin Klein The Committee has been requested to give its recommendations on the above issue expeditiously.

As initially the Committee would focus on the issue of MAT on FIIs for giving its report expeditiously, other issues to be referred to the Committee will be notified in due course. Yves Saint laurent Pas Cher The Committee may interact with various stakeholders as it may deem fit. The Committee may also invite officers from Department of Revenue including CBDT for consultations/discussions as may be necessary.

The Committee shall set its own procedure for regulating its work.

Hon’ble Supreme Court confirms the Constitution of NCLT and NCLAT under Companies Act, Boxer Calvin Klein Baratos 2013

Supreme Court decided following issues :
(i) Challenge to the validity of the constitution of NCLT and NCLAT;
(ii) Challenge to the prescription of qualifications including term of their
office and salary allowances etc. Slip Calvin Klein Baratos Calvin Klein Bragas of President and Members of the NCLT
and as well as Chairman and Members of the NCLAT;
(iii) Challenge to the structure of the Selection Committee for
appointment of President/Members of the NCLT and Chairperson/
Members of the NCLAT

The Hon’ble Supreme Court observed that it seems the only step which is left to make NCLT

and NCLAT functional is to appoint President and Members of NCLT and

Chairperson and Members of NCLAT.

Present Structure of Indirect Taxation Vs Goods and Services Tax (GST)

“A Comparative Analysis”

 

Sr.No

Concerned Areas Present Taxation

System

GST
1 Structural Difference a)Two separate VAT System

i) State

VAT

ii) CST

b) Tax on services is levied by Centre under separate Legislation.

c)No Comprehensive Taxation of services at the state level

d) Imports in India are not subject to state VAT.

1) A tax system with both Central and state GST levied on same base. Thus all the goods and services except Petroleum ,High Speed Diesel, Motor spirit, Natural gas,

Aviation Turbine fuel and Liquor will be brought into the GST base. Moda de otoño T Shirt Givenchy Calvin Klein Ropa Interior Mujer Petroleum , High Speed Diesel, Motor spirit, Natural gas,

Aviation Turbine fuel and Liquor will be brought in GST net on a later date as per the recommendation of the GST Council.

2) It allows seamless Input Tax credit.

2 Excise Duty Taxed by the Centre under Separate Act; Taxed upto Manufacturing Point.

 

To be subsumed in GST; Taxable Event: Supply of

Goods, To be Taxed up to the Retail Level.

3 Basic Custom Duty Taxed by Centre, Under Separate Act; Taxable Event: Import No Change
4 CVD/SAD By Centre under separate Act,

Taxable event: Import

To be subsumed in GST; Taxable event :Import
5 Service Tax Taxed by centre under finance Act;

Taxable Event :Provision of services

To be Subsumed in GST ;

Taxable event: Supply of services

6 Central Sales Tax Taxed by Centre Under CST Act; Collection assigned to states;

Taxable event :Sale by movement of Goods from one State to another

To be Phased out; To be applicable to goods kept outside the GST.

Additional tax of 1% on interstate supply of goods –Status of the goods/items yet to be confirmed

7 State VAT Taxed by State; Taxable event :Sale within the State To be subsumed in GST ;Taxable event: Supply of Goods
8 Interstate Transactions Services: Taxed By the Centre ;

 

Goods :CST is collected and apportioned with the Centre

To be subsumed in GST & Subject to IGST(SGST+CGST)
9 Place of taxation Taxable at the place of sale of Goods or rendering of Services It is generally consumption (Destination) based tax.
10 Power to levy Tax on manufacturer Excise Duty (Cenvat): Levied and collected by the centre No such power in GST-Tax on supply of Goods.
11 Power to levy Tax on Sale of Goods Centre-Interstate

Local sale-state

Concurrent powers to centre & States ;however ,Powers to levy tax on interstate supply of goods & services vests with Centre only
12 Power to levy Tax on Provision of Services Centre Concurrent powers to Centre & States ; however ,Powers to levy tax on interstate supply of goods & services vests with Centre only
13 Tax on Import in India -Goods :Under Customs Duty (Comprises Basic Custom duty, CVD & SAD)

-Services: Under Service Tax

-Basic Custom duty on goods: No change

-CVD & SAD on imports of goods and import of services: to be summed in GST-IGST to be levied, Which would be Vatable.

14 Tax on Export of Goods & Services Exempt/Zero Rated No change
15 Tax on Inter State Transfer of Goods to Branch or Agent Exempt against Form F To be taxable
16 Tax on Transfer of Goods to Branch or Agent within State Generally Exempt; Depends Upon State Procedures Might Be taxable , Unless TIN of Transferor and Transferee is same
17 Cross-Levy set Off Excise duty and Service tax: Cross Set-off is allowed.

 

No cross Set-off between CGST and SGST
18 Cascading effects Allow tax credit between Excise Duty & Service Tax, But not with VAT on Purchase of Goods Allow Seamless tax credit
19 Non Creditable Goods Exist Might exist
20 Credit on Inputs used for exempted Activities Not allowed Might not be allowed
21 Various Exemption-Excise Free Zone or VAT Exemption Exists May Go in a Phased Manner
22 Inter-State Transit sale and High Seas sale Exempt from Sales Tax /VAT, Subject to conditions Might be taxable
23 Transactions against Declaration Forms Exists Under the CST Act. Forms will be abolished, except those goods which are outside GST.
24 Taxation on Govt and Non Profit Public Bodies Partially Taxed Might Not change
25 Stamp Duty on Immovable Property Presently Taxed By states No Change
26 Tax Base Comparatively narrow wider
27 Excise Duty threshold limits Rs. Guía de compras T Shirt Fendi Homme 1.5.Crores To be decided by the GST Council
28 VAT Threshold Limit Varies from State to State from Rs. Emporio Armani Ea7 Calvin Klein Tanga 5lacs to 20 lacs Rs.10 Lacs to 20 Lacs to be decided by the GST Council.
29 Service tax threshold limit Rs.10 Lacs Rs.10 Lacs to 20 Lacs to be decided by the GST Council.
30 Classification of commodities Excise Duty: HSN

VAT: None

Goods: HSN

Services: Existing Classification may be used

31 VAT/GST Registration Simple TIN (Some states :PAN Based) PAN Based GSTIN
32 Procedures for collection of Tax and filing of returns Excise Duty & Service Tax :Uniform

VAT: Varies From State to state

Will be uniform
33 Administration Complex due to no.

RBI/2014-15/633
DBR. Slip Calvin Klein Baratos AML.BC. Calvin Klein Boxer Baratos Calzoncillos Calvin Klein Baratos No.104/14.01.001/2014-15

The Chairpersons/ CEOs of all Scheduled Commercial Banks/ Regional Rural Banks/ Local Area Banks/ All India Financial Institutions/ all NBFCs/ All Primary (Urban) Co-operative Banks /State and Central Co-operative Banks (StCBs / CCBs) /All Payment System Providers/ System Participants and Prepaid Payment Instrument Issuers/ All authorised persons including those who are agents of Money Transfer Service Scheme

Please refer to Rule 14(i) and proviso to Rule 2(d) at Sr.No.4 of Annex to our circular DBOD.AML.BC.No.26/14.01.001/2014-15 dated July 17, 2014, on the applicability of ‘simplified measures’ to verify the proof of identity of ‘low risk customers’ if they do not have Officially Valid Documents (OVDs) for proof of identity.

2. Boxer Calvin Klein Outlet The Government has since amended the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 providing additional relaxations for the purpose of proof of address in addition to the relaxations in proof of identity under ‘simplified measures’ as contained in paragraph 2(d) of PML Rules. Ropa Interior Masculina Calvin Klein Baratos Thus, for the limited purpose of proof of address the following additional documents are deemed to be OVDs under ‘simplified measures’.

  1. Utility bill which is not more than two months old of any service provider (electricity, telephone, postpaid mobile phone, piped gas, water bill);
  2. Property or Municipal Tax receipt;
  3. Bank account or Post Office savings bank account statement;
  4. Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
  5. Letter of allotment of accommodation from employer issued by State or Central Government departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies. Similarly, leave and license agreements with such employers allotting official accommodation; and
  6. Documents issued by Government departments of foreign jurisdictions and letter issued by Foreign Embassy or Mission in India.

3. Calvin Klein Ropa Interior Mujer Barata Comprar Calzoncillos Calvin Klein The additional documents mentioned above shall be deemed to be OVDs under ‘simplified measure’ for the ‘low risk’ customers for the limited purpose of proof of address where customers are unable to produce any OVD for the same.

4.

1. Introduction

To check Insider trading, R 8(1) of the Regulations states that the Board of Directors of every listed company shall lay down and publish on its official website, a code of practices and procedures for fair disclosure of unpublished price sensitive information that would be followed to adhere to each of the principles laid down in Schedule A to the Regulations, without diluting the provisions of these regulations in any manner.

Note to the provision requires every listed company to formulate a stated framework and policy for fair disclosure of events and occurances that could have impact on price discovery in the securities market. Principles such as, equality of access to information, publication of policies such as those on dividend, inorganic growth pursuits, calls and meetings with analysts, publication of transcripts of such calls and meetings, and the like are set out in the schedule.

The code of practices and procedures for fair disclosure of upsi as per Schedule A would have to be approved by the Board of Directors in its meeting. On approval the code would have to forwarded to the stock exchange. The code would have to have to hoisted in the Website of the company. This would only fulfil the criteria of disclosure of any upsi in the know of an insider.

Note to the provision intends to require every company whose securities are listed on stock exchanges to formulate a stated framework and policy for fair disclosure of events and occurrences that could impact price discovery in the market for its securities. Principles such as, equality of access to information, publication of policies such as those on dividend, inorganic growth pursuits, call and meetings with analysts, publication of transcripts of such calls and meetings, and the like are set out in the schedule.

2. Boxer Calvin Klein SCHEDULE A [ R 8(1) ]

SCHEDULE A

[ sub-regulation (1) of regulation 8]

Principles of Fair Disclosure for purposes of Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information.

  1. Prompt public disclosure of unpublished price sensitive information that would impact price discovery no sooner than credible and concentrate information comes into being in order to make such information generally available.
  2. Uniform and universal dissemination of unpublished price sensitive information to avoid selective disclosure.
  3. Designation of a senior officer as a chief investor relations officer to deal with dissemination of information and disclosure of unpublished price sensitive information.
  4. Prompt dissemination of unpublished price sensitive information that gets disclosed selectively, inadvertently or otherwise to make such information generally available.
  5. Appropriate and fair response to queries on news report and requests for verification of market rumours by regulatory authorities.
  6. Ensuring that information shared with analysts and research personnel is not unpublished price sensitive information.
  7. Developing best practices to make transcripts or records of proceedings of meetings with analysts and other investor relations conferences on the official website to ensure official confirmation and documentation of disclosures made.
  8. Handling of all unpublished price sensitive information on a need –to-know basis.

The provisions are very clear that the aforesaid principles cannot be diluted while being adopted by the Board of Directors of a company.

R 8(2) states that every code of practices and procedures for fair disclosure of unpublished price sensitive information and every amendment thereto shall be promptly intimated to the stock exchanges where the securities are listed. Presently there are only two stock exchanges i.e BSE and NSE in the country. The other stock exchanges non-functional.

Note to the provision states that it is aimed to provide transparent disclosure of the Code of Fair Disclosure formulated as required by R 8(1).

3. Code of Conduct

R 9(1) of the Regulations state that the Board of directors of every listed company and market intermediary i.e. Merchant Bankers, Stock Brokers, Syndicate Members,Registrars, Underwriters,Bankers to an Issue, Portfolio Managers, Debenture Trustees, FIIs, Depositors, DPs,Custodians, Credit Rating Agencies, Venture Capitalists. shall formulate a code of conduct to regulate, monitor and report trading by employees and other connected persons towards achieving compliance of the regulations, adopting minimum standards set out in Schedule B to the regulations, without diluting the provisions of these regulations in any manner.

Note to the provision states that every listed company and every market intermediary registered with SEBI is mandatorily required to formulate to a code of conduct governing trading by its employees. The standards set out in the schedule are required to be addressed by such code of conduct.

R 9(2) states that every other person who is required to handle upsi in the course of business operations of a listed company shall formulate code of conduct to regulate, monitor, report trading by employees and other connected persons towards achieving compliance with these regulations, adopting the minimum standards set out in Schedule B to the regulations without dilution of the provisions in any manner.

Note to the regulations state that the provision is intended to mandate persons other than listed companies and market intermediaries that are required to handle upsi to formulate a code of conduct governing trading in securities by their employees. The entities are professional firms such as auditors, accountancy firms, law firms, analysts, consultants etc., assisting or advising listed companies, market intermediaries and other capital market participants. Even entities that normally operate outside the capital market may handle upsi. Short Phillip Plein Pas Cher The provision requires all of them to formulate a code of conduct.

As per R 9 (3) every listed company, market intermediary and other persons formulating code of conduct shall indentify and designate a compliance officer to administer the code of conduct and other requirements according to the regulations.

Note to the provision states that the provision intends to designate a senior officer as the compliance officer with responsibility to administer the code of conduct and monitor compliance with these regulations.

4. SCHEDULE B [ R 9 (1) & (2) ]

SCHEDULE B

[ sub- regulation(1) and sub-regulation (2) of regulation 9]

Minimum Standards for Code of Conduct to Regulate, Monitor and Report Trading by Insiders.

  1. The Compliance Officer shall report to the board of directors and in particular, shall provide reports to the Chairman of the Audit Committee, if any, or to the Chairman of the Chairman of the board of directors at such frequency as may be stipulated by the board of directors.
  2. All information shall be handled within the organization on a need-to-know basis and no unpublished price sensitive information shall be communicated to any person except in furtherance of the insider’s legitimate purposes, performance of duties or discharge of his legal obligations. The code of conduct shall contain norms for appropriate Chinese Walls procedures, and processes for permitting any designated person to “ cross the wall.”
  3. Employees and connected persons designated on the basis of their functional role (“designated person”) in the organization shall be governed by an internal code of conduct governing dealing in securities. The board of directors shall in consultation with the compliance officer specify the designated persons to be covered by such code on the basis of their role and function in the organization. Due regard shall be had to the access that such role and function would provide to unpublished price sensitive information in addition to seniority and professional designation.
  4. Designated persons may execute trades subject to compliance with these regulations. Towards this end, a notional trading window shall be used as an instrument of monitoring trading by the designated persons. The trading window shall be closed when the compliance officer determines that a designated person or class of designated persons can reasonably be expected to have possession of unpublished price sensitive information. Such closure shall be imposed in relation to such securities to which unpublished price sensitive information relates. Designated persons and their immediate relatives shall not trade in securities when the trading window is closed.
  5. The timing for re-opening of the trading window shall be determined by the compliance officer taking into account various factors including the unpublished price sensitive information in question becoming generally available and being capable of assimilation by the market, which in any even shall not be earlier than forty-eight hours after the information becomes generally available. The trading window shall also be applicable to any person having contractual or fiduciary relation with the company, such as auditors, accountancy firms, law firms, analysts, consultant etc., assisting or advising the company.
  6. When the trading window is open, trading by designated persons shall be subject to pre-clearance by the compliance officer, if the value of the proposed trades is above is such thresholds as the board of directors may stipulate. No designated person shall apply for pre-clearance of any proposed trade if such designated person is in possession of unpublished price sensitive information even if the trading window is not closed.
  7. The compliance officer shall confidentially maintain a list of such securities as a “ restricted list” which shall be used as the basis for approving or rejecting applications for pre-clearance of trades.
  8. Prior to approving any trades, the compliance officer shall be entitled to seek declarations to the effect that the applicant for pre-clearance is not in possession of any unpublished price sensitive information. He shall also have regard to whether any such declaration is reasonably capable of being rendered inaccurate.
  9. The code of conduct shall specify any reasonable timeframe, which in any event shall not be more than seven trading days, within which trades that have been pre-cleared have to be executed by the designated person, failing which fresh pre-clearance would be needed for the trades to be executed.
  10. The code of conduct shall specify the period , which any event shall not be less than six months, within which a designated person who is permitted to trade shall not execute a contra trade. Polo Philipp Plein Homme Pas Cher The compliance officer may be empowered to grant relaxation from strict application of such restriction for reasons to be recorded in writing provided that such relaxation does not violate these regulations. Should a contra trade be executed, inadvertently or otherwise, in violation of such a restriction, the profits from such trade shall be liable to be disgorged for remittance to the Board for credit to the Investor Protection and Education Fund administered by the Board under the Act.
  11. The code of conduct shall stipulate such formats as the board of directors deems necessary for making applications for pre-clearance, reporting of trades executed, reporting of decisions not to trade after securing pre-clearance, recording of reasons for such decisions and for reporting level of holdings insecurities at such intervals as may be determined as being necessary to monitor compliance with these regulations.
  12. Without prejudice to the power of the Board under the Act, the code of conduct shall stipulate the sanctions and disciplinary actions, including wage freeze, suspension etc., that may be imposed, by the persons required to formulate a code of conduct under sub-regulation(1) and sub-regulation (2) of regulation 9, for the contravention of the code of conduct.
  13. The code of conduct shall specify that in case it is observed by the person required to formulate a code of conduct under sub-regulation (1) and sub-sub-regulation (2) of regulation 9, that there has been a violation of these regulations, they shall inform the Board promptly.

5. T Shirt Dsquared Homme Discussion

Disclosure by insiders is important to curb insider trading. The Regulations lay down principles for fair disclosure of uspi obtained by insiders. R 8 (1) under Chapter IV in Schedule A to the Regulations states the Principles of Fair Disclosure for the purposes of Code of Fair Practices and Conduct Procedures for Fair Disclosure of Unpublished Price Sensitive Information by insiders. R 9 (1) and (2) in Schedule B to the Regulations states of the Minimum Standards for Code of Conduct to Regulate, Monitor and Report Trading by Insiders. Board of Directors of listed companies are required to approve and adopt these regulations without change. They must be disclosed in its web site and must be informed communicated to the Stock Exchanges where the securities are listed. For an orderly securities market Insider trading needs to be checked by all means. Role of the Compliance Officer is significant for implementation of the Code of Fair Disclosure and Code of Conduct of insiders which includes connected persons. Calvin Klein Bragas It is important for the Board of Directors to allow the Compliance Officer to function as per the Regulations. The Regulations in R 2(1) ( c ) defines Compliance Officer. Any senior officer can be a designated Compliance Officer . So a Company Secretary may not be the Compliance Officer. Framers of the Regulations must have found the logic of having any senior officer as the Compliance Officer. Why any other senior officer other than the Company Secretary be appointed as Compliance Officer is not known. Having the Company Secretary as the Compliance Officer for the purpose of these Regulations would have been beneficial for the companies. Implementation of the Regulations in the right spirit by companies is sine qua non.

The Regulations have laid down stipulations for all those who can bring about disequilibrium in the securities market. However, the Regulations have not been able to lay down stipulation in respect information passed on to a person who is not an insider e.g. an insider passing on uspi to an outsider and the outsider acts on the same. In US the Regulator has gone to the extent of detecting conversation over phone after a Board Meeting by an insider to an outsider. The current Regulations is deficient in this aspect and this area needs to be brought under scanner. The Regulation’s successful implementation depends on the insiders which includes connected persons but if the insiders fail to follow the requirements as per the provisions laid down in the Regulations, there seems to be a gap which needs to be monitored.

6. Danger of the Principles of Fair Disclosure for purposes of Code of Practices and Procedures for Fair Disclosure of Uspi – para 2.

Para 2 of Schedule A has the words, `unpublished price sensitive ‘ repeated and the repetition needs to be deleted by the Regulator otherwise all listed companies will have the mistake in their Principles of Fair Disclosure for purpose of Code of Practices for Fair Disclosure of Upsi submitted to the stock exchanges where shares are listed as none of the companies can modify the principles prepared and submitted pursuant to R 8(1) to the stock exchanges and hoisted in their website.

7. Conclusion

However, the provisions of the Regulations are honest in approach to have transparent market practices for the securities market.

 

Foreign Direct Investment (FDI) –
Reporting under FDI Scheme on the e-Biz platform
Attention of Authorised Dealers Category-I (AD Category – I) banks is invited to the provisions of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations 2000, notified by the Reserve Bank vide Notification No.FEMA 20/2000-RB, dated 3rd May 2000, as amended from time to time. Chaussure Adidas Yeezy 750 Boost Attention of AD Category – I banks is also invited to A.P. (DIR Series) Circular No.77 dated February 12, 2015, advising the enabling of reporting of Advanced Remittance Form and FCGPR Form under the FDI scheme on the e-Biz platform of the Government of India.
2. With reference to paragraph 5 of the said A.P. (DIR Series) circular, it is advised that financial aspects for using the Virtual Private Network (VPN) accounts obtained from National Informatics Centre (NIC) for accessing the e-Biz portal have now been finalised in consultation with Government of India, Department of Industrial Policy and Promotion (DIPP) and NIC. The details are as follows:
i. T Shirt Philipp Plein Homme The VPN account will be in the name of the individual users and will be coterminous with the lifetime of the Digital Signing (Class 2) certificates (which is for a maximum period of two years) issued by Institute for Development and Research in Banking Technology (IDRBT), Hyderabad;
ii. AD Category-I banks will be required to credit (through NEFT/RTGS) the payment in advance for the VPN accounts (@ Rs.9,654/- per account for a block of two years) directly to National Informatics Centre Services Inc’s (NICSI) bank account as under:
Name of Bank : ICICI Bank
Branch : ICICI Bank CMS
Account No : NICSIPPCDL141571
IFSC Code : ICIC0000104
iii. After making the payment, the AD bank may fill up the details in the ‘Payment Reference Form’ and forward the same to the email. A copy of the form is annexed to this circular.
iv. T Shirt Versace AD banks may kindly note to maintain appropriate records pertaining to the number of connections, amounts remitted to NICSI, etc. Reconciliation issues, if any, may be resolved by writing to NICSI at the above mentioned email address.
3. Adidas Yeezy Boost 330 Pas Cher The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999).

External Commercial Borrowings (ECB) denominated in Indian Rupees (INR) – Mobilisation of INR

Attention of Authorized Dealers Category – I (AD Cat – I) banks is invited to the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 dated May 3, 2000 [Notification No. FEMA 25/RB-2000 dated May 3, 2000], as amended from time to time, A.P. Bragas Calvin Klein Baratas (DIR Series) Circular No.63 dated December 29, 2011 and A.P. Adidas Ultra Boost Femme Pas Cher (DIR Series) Circular No. 25 dated September 3, 2014.

2. In terms of A.P. (DIR Series) Circular No. 25 dated September 3, 2014, recognised non-resident ECB lenders may extend loans in Indian Rupees subject to, inter alia, the lender mobilising Indian Rupees through a swap undertaken with an AD Cat-I bank in India. To facilitate ECB lending denominated in INR by overseas lenders, it has now been decided that such lenders may enter into swap transactions with their overseas bank which shall, in turn, enter into a back-to-back swap transaction with any AD Cat-I bank in India as per the procedure given below:

(i) The recognised non-resident lender approaches his overseas bank with appropriate documentation as evidence of an underlying ECB denominated in INR with a request for a swap rate for mobilising INR for onward lending to the Indian borrower.

(ii) The overseas bank, in turn, approaches an AD Cat-I bank for a swap rate along with documentation furnished by the customer that will enable the AD bank in India to satisfy itself that there is an underlying ECB in INR (scanned copies would be acceptable).

(iii) A KYC certification on the end client shall also be taken by the AD bank in India as a one-time document from the overseas bank.

(iv) Based on the documents received from the overseas bank, the AD bank in India should satisfy itself about the existence of the underlying ECB in INR and offer an indicative swap rate to the overseas bank which, in turn, will offer the same to the non-resident lender on a back-to-back basis.

(v) The continuation of the swap shall be subject to the existence of the underlying ECB at all times.

(vi) On the due date, settlement may be done through the Vostro account of the overseas bank maintained with its counterparty bank in India.

(vii) All other Operational Guidelines, Terms and Conditions as contained in the annex to A.P. (DIR Series) Circular No.63 dated December 29, 2011 governing hedging of ECBs denominated in INR shall apply, mutatis mutandis.

(viii) The concerned AD Cat-I bank shall keep on record all related documentation for verification by Reserve Bank.

3. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers.

4. Tangas Calvin Klein Baratos The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

Cabinet approves Negotiable Instruments (Amendment) Bill, 2015 to be placed in Parliament

The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved the proposal to introduce the Negotiable Instruments (Amendment) Bill, 2015 in the Parliament.

The amendments are focused on clarifying jurisdiction related issues for filing cases of offence committed under Section 138 the Negotiable Instruments Act,1881 (NI Act).

The main amendment included in this is the stipulation that the offence of rejection or return of cheque u/s 138 of NI Act will be enquired into and tried only by a Court within whose local jurisdiction the bank branch of the payee, where the payee presents the cheque for payment is situated.

Section 138 of the NI Act deals with the offence pertaining to dishonour of cheque for insufficiency of funds in the drawer’s account on which the cheque is drawn for the discharge of any legally enforceable debt or other liability.

Section 138 provides for penalties in case of dishonour of cheques due to insufficiency of funds in the account of the drawer of the cheque. The object of the NI Act is to encourage the usage of the cheque and enhancing the credibility of the instrument so that normal business transactions and settlement of liabilities could be ensured.

The clarification of jurisdictional issues may be desirable from the equity point of view as this would be in the interests of the complainant and would also ensure a fair trial.

The clarity on jurisdictional issue for trying cases of cheque bouncing would increase the credibility of the cheque as a financial instrument.

This would help trade and commerce in general and allow lending institutions, including banks, to continue to extend financing to the economy, without the apprehension of the loan default on account of bouncing of a cheque.

PRIORITY SECTOR LENDING-TARGETS AND CLASSIFICATION

An Internal Working Group (IWG) was set up in July 2014 to revisit the existing priority sector lending guidelines. The report of the IWG was placed in the public domain inviting comments. The recommendations of the IWG were examined in the light of the comments / suggestions received from Government of India, banks, and other stakeholders and revised guidelines are being issued in supersession of guidelines mentioned in the Master Circular RPCD.CO.Plan.BC10/04.09.01/2014-15 dated July 1, 2014 on Priority Sector Lending – Targets and Classification.

The salient features of the guidelines are as under:-

(i) Categories of the priority sector: Medium Enterprises, Social Infrastructure and Renewable Energy will form part of priority sector, in addition to the existing categories.

(ii) Agriculture: The distinction between direct and indirect agriculture is dispensed with.

(iii) Small and Marginal Farmers: A target of 8 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, has been prescribed for Small and Marginal Farmers within agriculture, to be achieved in a phased manner i.e., 7 percent by March 2016 and 8 percent by March 2017.

(iv) Micro Enterprises: A target of 7.5 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, has been prescribed for Micro Enterprises, to be achieved in a phased manner i.e. 7 percent by March 2016 and 7.5 percent by March 2017.

(v) There is no change in the target of 10 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, for Weaker Sections.

(vi) Target for Foreign Banks: Foreign Banks with 20 branches and above already have priority sector targets and sub-targets for Agriculture and Weaker Sections, which are to be achieved by March 31, 2018 as per the action plans submitted by them and approved by RBI. The sub-targets for Small and Marginal Farmers and Micro Enterprises would be made applicable post 2018 after a review in 2017. Foreign banks with less than 20 branches will move to Total Priority Sector Target of 40 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, on par with other banks by 2019-20, and the sub-targets for these banks, if to be made applicable post 2020, would be decided in due course.

(vii) Bank loans to food and agro processing units will form part of Agriculture.

(viii) Export credit: Export credit upto 32 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, will be eligible as part of priority sector for foreign banks with less than 20 branches. For other banks, the incremental export credit over corresponding date of the preceding year will be reckoned upto 2 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.

(ix) The loan limits for housing loans and MFI loans qualifying under priority sector have been revised.

(x) The priority sector non-achievement will be assessed on quarterly average basis at the end of the respective year from 2016-17 onwards, instead of annual basis as at present.

The revised guidelines are operational with effect from the date of this circular. The priority sector loans sanctioned under the guidelines issued prior to this date will continue to be classified under priority sector till repayment/maturity/renewal.

Foreign Currency (Non-Resident) Account (Banks) (FCNR (B)) Scheme

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 2 of the Foreign Exchange Management (Deposit) Regulations, 2000, notified vide Notification No. FEMA 5/2000-RB dated May 3, 2000, as amended from time to time, in terms of which instructions regarding opening and maintenance of FCNR (B) deposit have been stipulated.

2. It has come to notice that Authorised Dealer banks are insisting on different requirements at the time of closure of FCNR (B) deposits and subsequent remittance of funds as under:

  1. Submission of A2 form
  2. Insisting on physical presence of the account holder
  3. Asking for purpose of remittance

3. In this connection it is clarified that A2 form is to be filed at the time of purchase of foreign exchange using rupee funds and hence is not applicable while remitting FCNR (B) funds. Further, banks, with the help of technology, will have to devise better alternatives/ methods for ensuring bonafides of the transaction rather than insisting on physical presence of the account holder, in order to ensure hassle free remittance of funds to the account holder.

4. T Shirt Philipp Plein AD Category- I banks may bring the contents of the circular to the notice of their constituents concerned.

5.