covers august 2013 - pvt · bizsol update august - 2013 ... when vodafone did its deal with hutch...

• ISSUE - XII • VOLUME - VIII • AUGUST - 2013

August - 2013

1

Bizsol UPDATE August - 2013

Telengana has happened. Barring unforeseen

contingencies a new State in the map of the Indian

Union is all set to make its appearance. So be it. The

moot point here is that there must be better ways to

give birth to a state for sure. Demand for a new state

had been simmering for a while and all the

stakeholders in the game had been developing their

own agenda for a while. The ruling party at the Centre

is now going ahead for the formation of a new state

anticipating political gain. In a functional democracy

there may be nothing wrong in bringing politics to any

decision affecting the society; but to make it a hostage

to pure politics takes away the much needed

credibility of any government while making such

important decisions with far reaching consequences.

The calculation of the Congress party is that it will be

able to gain seats in Telengana and also manage to

wedge a division in the ranks of parties like the YSR

Congress with this decision. If it had done nothing

about Telengana the whole of Andhra would have

been lost. Something is better than nothing. So far

the Congress had been dithering on this issue not

knowing what to do. Statements from the present gaff-

prone Home Minister also did not help matters. End

of the day one felt that the entire issue could have

been dealt with better. However, what is remarkable

is the naiveté being exhibited by the local population

in Andhra. The students in the Telengana region feel

that they will get more job opportunities in their 'own'

state as most of the people from the coastal and

Rayalaseema areas would go away from places like

Hyderabad. The people of these regions feel that they

will have to leave the present capital and go back to

their 'left-over' state. The protagonists of Telengana

and those opposing it are doing nothing to expose

the hollowness of such arguments made to justify any

particular point of view. Yet another issue is about

the way we look at the very clamour for creation of

new states. Any demand for a new state irrespective

FROM THE DESK OF THE CHAIRMAN

of whether it is justified or not is always treated as an

act of sedition. Consequently it is projected as

something akin to treason whereas history and our

experience show that smaller states have provided

better governance across the nation. Demands for

creation of more states like Vidarbha are on the way.

The government of the day would be better advised

to treat the plethora of demands for newer states with

a lot more objectivity unlike in the past.

When the Nobel laureate and eminent economist

Amartya Sen and an equally illustrious economist

Jagdish Bhagwati who for reasons unknown has not

yet laid his hands on a Nobel medallion, spar on

economic issues, it is time to sit up and take notice.

In our democracy where a presidential form of contest

does not take place as in the US people are

interpreting the war of words between these two

economists as some kind of shadow boxing done for

Narendra Modi and Rahul Gandhi. If you look at the

reputations of the latter two it may be possible that it

is a proxy war between the two. But looking at the

credentials of the economists they will never be pawns

in any game of politics for any party of person. In fact

that is not the important issue here. The issue is that

they are discussing something which the candidates

themselves ought to be articulating; but are not. In a

way both Modi and Rahul stand for different economic

models. Modi actually wants the animal spirit of the

entrepreneurs to be unleashed and the prosperity

which it will bring to the table to be shared

subsequently whereas Rahul with a carefully and

assiduously developed personality is more concerned

with the state's responsibility of equitable distribution

of wealth before anything else. In India we have

success stories to recount about both the models. If

Gujarat stands for creation of wealth before

distribution, Kerala is a classic example of the

successive governments putting emphasis on

distribution taking precedence over creation. Come

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to think of it both the models are faulty if taken to

extremes. Compromises are called for. For the middle

class and the intellectual elite in the country, however,

this clash between the two economists on basic

premises is bound to throw up the alternatives for

people to choose from. Irrespective of whether Modi

or Rahul gets to rule the country this debate between

the two economists may go down as one of the

positive byproducts of the upcoming elections.

The elected representatives in India are a privileged

lot by any standard. I am not talking about the

pecuniary benefits they enjoy. I am not even talking

about the opportunity they have to loot the country's

treasury (which they liberally do). Beyond these

material benefits here comes another bounty for them.

Recently the Supreme Court decreed that those who

are under investigation for any criminal offence are

not eligible to contest elections. When the whole

country cheered, the political class went into a huddle.

As we go to press we learn that the all parties

unanimously have agreed to question the wisdom of

the Supreme Court either through an appeal or

through a statutory amendment - all in the name of

the supremacy of the Parliament! Sometimes you

wonder who is in tune with the sentiments of the

population - the judiciary or the politician? The

government with the support of all the politicians is all

set to move the necessary changes to the Right to

Information Act to prevent the public from prying into

their affairs. End of the day with all these measures

an average politician is effectively outside the purview

of the Right to Information Act and the Indian Penal

Code for all practical purposes!

It was just the other day that a young woman from

the state of Kerala topped the all India examinations

for the coveted Indian Administrative Service. The

irony was not lost on anyone when another young

woman from the state of Uttar Pradesh was

suspended for doing her duty as an IAS officer. One

would think twice before opting for a career as a

bureaucrat. Qualifying oneself in this tough

examination may be less difficult than holding to one's

job. Such is the sorry state of affairs. The Indian

bureaucracy has brought it upon itself. Today a career

bureaucrat ingratiates himself before his political

masters. Going by the number of bureaucrats figuring

in the recent scams the message is loud and clear.

When the system does not give you justice and does

not also allow you to stand up to the political class the

temptation is too high to resist - if you cannot question

them; join them. In this light perhaps the Indian

constitutional system is flawed. As long the politicians

hold the power to reward and punish the bureaucrat

the latter has no option but to tow the line drawn by

the former. To some extent this issue has been

addressed by the collegium system followed for

appointment of judges of higher courts in India. As

things stand, however, today even this system is all

set to get a makeover with the political parties being

given a big say in the appointment of judges. It is sad

that instead of moving towards a more transparent

system of appointments we are opting for an opaque

one with the politicians calling shots all the way.

There is never a dull moment in Indian cricket. If there

is no excitement on the field while playing the game,

the administrators make sure that the public attention

is redirected to the BCCI itself. It is time the Board of

Control for Cricket in India is rechristened as the

Board of Criminal Conspirators of India. Srinivasan,

the President-in-exile (what a funny designation) is

all set to make a comeback from his sabbatical with

the illegally appointed committee finding nothing wrong

with his brother-in-law betting and fixing matches. The

Bombay High Court, however, thinks the committee

itself is illegally constituted. BCCI blinked once before

which allowed Srinivasan to become its President

despite a conflict of interest situation vis-a-vis his IPL

connection. If it blinks again, which is likely, he will

brazenly preside over the functioning of this rich and

influential body again. It is not just cricket that will stand

to lose. The society in which we live loses. It will only

strengthen the view that value systems have no value

in India. All the talk of corporate governance, political

morality and bureaucratic honesty all sound so hollow.

After Vodafone now it is the turn of Holcim, the global

cement giant. Looking back, when Vodafone did its

deal with Hutch it was touted as a brilliant exercise at

tax planning. However, the partying did last only till

the taxman caught up with the company. As they say

the rest is history. The recent announcement by

Holcim to merge Ambuja Cements with itself and ACC

presents a picture perfect deal which will allow the

global giant to have the cake and eat it too. The way

it is structured, albeit legally, would entail no liability

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on account of capital gains to the group and also

facilitate the company to help itself to the large amount

of cash available in the Balance Sheet of Ambuja. Do

you notice the shadow of the taxman around the

corner? Better watch out.

It is not surprising that Shobha De got herself

embroiled in a controversy by hinting at a demand

for a separate state of Mumbai. When you are busy

giving opinions 24/7 some slip ups could occur some

times and some politically incorrect statements get

made. Her comments came out at a time when all

the parties in Maharashtra were on edge watching

out for the fallout of Telengana on Vidarbha.

Predictably all of them pounced on her even before

understanding what exactly she said and meant. Any

other time her tweet would have gone unnoticed. But

then, for a celebrity there is nothing called bad

publicity.

When this issue of Update reaches you we will be in

the midst of a celebration. Yes. You read it right. We

are celebrating on the occasion of achieving another

milestone. Before you label us as a conceited lot, let

me clarify. Bizsol in Nasik is moving into its own

premises. It is perhaps natural that we become a bit

nostalgic and sentimental on this occasion when we

look back at our journey over the last sixteen odd

years. We have indeed travelled some distance. We

are proud to say this and are more proud when our

clients vouch for it. We may be pardoned for blowing

our trumpet for a change. We do not do it often. The

new edifice which will house our Nasik operations is

the symbol of our efforts and achievement. At the

same time the new swanky Bizsol House also

represents the love, affection and confidence that we

have earned from our clients, associates and

employees past and present. When we celebrate this

milestone we take this opportunity to thank every one

of you who has been part of this journey with us. We

do hope that we will continue to receive the same

kind of patronage as in the past. On behalf of the

Board, the Management and all employees of our

organisation I take this opportunity to invite you to be

with us when we celebrate. You will find our formal

invitation along with this issue of Update. We will be

honoured and privileged if you are with us on this all

important day in our life.

Thank you.

Venkat R. Venkitachalam

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CUSTOMS

NOTIFICATIONS

Anti Dumping

• Anti-dumping duty on 'rubber chemical, namely,

PX-13 (6PPD)', falling within Chapter 29 or 38

originating in, or exported from, Korea RP has

been extended for one more year i. e. up to 4th

day of May, 2014. [Notification No. 17/2013-

CUS (ADD) Dated 05/07/2013]

• Anti-dumping duty on 'rubber chemicals, namely,

MBT, CBS, TDQ, PVI, TMT and PX-13(6PPD),

falling within Chapter 29 or 38 originating in, or

exported from, People's Republic of China has

been extended for one more year i. e. up to 4th

day of May, 2014, [Notification No. 16/2013-


• Imposition of definitive anti-dumping duty on all

imports of 'Poly Vinyl Chloride Paste Resin also

called as PVC Emulsion Resin' falling under sub-

heading 3904 22 10 originating in, or exported

from European Union has continued in following

manner up to 24th June 2015:

falling under tariff item 2914 11 00 originating in,

or exported from, the Chinese Taipei up to the

final assessment. [Notification No. 14/2013-


Safeguard Duty

• No New Notifications.

Tariff

• Export under exports promotion schemes are

allowed to be exported from Foreign Post Office

situated at New Delhi, accordingly Notification

Nos. 92 to 95/2009-cus has been amended.

[Notification No. 38/2013-CUS Dated 26/07/

2013]

• Frozen Hilsa Fish will attract concessional 5%

Customs Duty if imported from Myanmar.

[Notification No. 37/2013-CUS Dated 22/07/

2013]

• Import of Liquefied natural gas (LNG) and natural

gas (NG) for supply to a generating company

for generation of electrical energy at Nil rate of

Customs duty allowed to all importers

[Notification No. 36/2013-CUS Dated

22/07/2013]

• All goods falling under chapter heading

480890,480920 & 480990 i.e. Paper & Paper

board, corrugated, creped embossed, Carbon

paper & other copying or transfer papers are

allowed at concessional rate of 2.5% customs

duty if imported from ASEAN countries and 6% if

imported from Philippines. [Notification No.

35/2013-CUS Dated 18/07/2013]

• Customs duty rate has been enhanced by 15%

from 0% for Raw Sugar, Refined or white sugar

and Raw sugar if imported by a bulk

consumeaccordingly Notification No. 12/2012

Cus. Dated 17.03.2012 has been amended.

[Notification No. 34/2013-CUS Dated

08/07/2013]

Heading Description of Country Country Duty Unit

Goods of of Amt ($)

Origin Exports

3904 Poly Vinyl Chloride European Any 265.19 Per MT

Paste Resin Union

3904 Poly Vinyl Chloride Any European 265.19 Per MT

Paste Resin Union

[Notification No. 15/2013-CUS (ADD) Dated

03/07/2013]

• Provisional anti-dumping duty of USD 201.27 per

MT has been imposed on imports of 'Acetone'

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Non-Tariff

• Tariff value (US $ per Metric Tonne) of the goods

RBD Palmolein, Brass Scrap (all grades), Poppy

Seeds and 'Areca Nuts' as well as Tariff value

(US $ per 10 grams) for Gold and Silver has been

revised. [Notification No. 80/2013-Cus (NT)

Dated 31/07/2013]. [Notification No. 75/2013-

Cus (NT) Dated 15/07/2013].

• Mahagaon, (Thane) Port in State of Maharashtra

has been declared for 'Unloading of imported

goods and loading of export goods.

[Notification No. 79/2013-Cus (NT) dated 24/

07/2013].

• Trichirappalli Airport has been notified for courier

import and export operations. [Notification No.

74/2013-Cus (NT) Dated 12/07/2013].

• Drawback value cap per gram for 'Articles of

jewellery and parts thereof, made of silver' falling

under Chapter Heading 711302 has been

prescribed and in Chapter 71 relating to "Articles

of jewellery and parts thereof, made of silver' for

tariff items 711302 has been enhanced from

173.70 to 179.5. [Notification No. 71/2013-Cus

(NT) Dated 10/07/2013]

CIRCULARS• Import / Export documentation should indicate

the quantity in all documents only in accordance

with single Unit Quantity Code (UQC) against

each Tariff Item and the same should be reflected

in Bill of Entry / Shipping bills / Bill of export by

importers/exporters/Customs Brokers, otherwise

it will be treated as mis-declaration / wrong

declaration. [Circular No.26/2013 dated 19/07/

2013]

• Re-import of pets as baggage is allowed subject

to establishment of identity of pets by Customs

authorities, production of the required health

certificate from the country of export and

examination of said pets by the concerned

Quarantine Officer at this end. [Circular No.25/

2013 dated 01/07/2013]

INSTRUCTIONS• On receipt of Audit Report 14/2011-12, following

directions for Drawback Scheme has been

issued.

i. to ensure due diligence is exercised in

processing of time barred drawback claims

under Section 74 of the Customs Act, 1962.

ii. full and comprehensive details of the

exported goods should be indicated clearly

in the brand rate letters.

[Instruction No.7 F. No. 603/01/2011-DBK

dated 31.07.2013]

• All CCSP/Custodians shall provide separate and

dedicated storage space meant for fumigation

and storage of post fumigated sites to enable

Plant Quarantine Authorities to carryout

necessary checks for both imported and export

consignments. [Instruction No. 6, F. No. 450/

19/2005- Cus IV dated 23/07/2013]

• Imports of retreaded or used tyres are allowed

subject to compliance of the provisions of the

Foreign Trade Policy, and the requirement of

consent / permission from the Ministry of

Environment and Forest as stipulated in the

Hazardous Wastes (Management, Handling and

Transboundary Movement) Rules 2008.

[Instruction No. 5, F. No. 528/109/2011-STO

(TU) dated 12/07/2013]

CENTRAL EXCISE

NOTIFICATIONS

Tariff

• Ceramic Bricks, Building Bricks falling under

chapter heading 6901 00 10 & 6904 10 00 are

exempted from payment of Central Excise Duty.

[Notification No. 23/2013.CX dated 31/07/

2013]

• Drugs Price Control by their order (DPCO) 2013

dated 15th May, 2013, lowered the MRP and the

formulations which are produced or available in

market before the date of Notification of ceiling

price are required to be altered by re-printing,

re-labeling, re-packing or stickering. This process

amounts to manufacture. Therefore exemption

has been granted from central excise duty on

account of on said activity subject to following

condition & procedure:

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i. The said formulations to be cleared with

appropriate duty within 45 days from the

date of notification of the ceiling price by

National Pharmaceuticals Pricing Authority

(NPPA).

ii. The re-printing, re-labeling, re-packing or

stickering, of the scheduled formulations

results in downward revision of the MRP.

iii. Exemption is available for 45 days from the

date of publication of the notification of the

ceiling price or such extended period not

exceeding 30 days as may be permitted by

the Department of Pharmaceuticals

iv. The manufacturer shall submit a prior

intimation to the jurisdictional Assistant /

Deputy Commissioner of Central Excise,

containing a

a) list of scheduled formulations requiring

re-printing, re-labeling, re-packing or

stickering alongwith the notification

vide which these have been notified by

NPPA.

b) various locations and addresses

thereof where the scheduled

formulations are proposed to be re-

printed, re-labelled, re-packed or

stickered.

c) the details such as description of the

scheduled formulation, present MRP,

proposed MRP, batch no., quantity and

date of manufacture in respect of each

such location.

d) In the case of importer and marketer,

they shall submit the intimation to the

Assistant/Deputy Commissioner of

Central Excise having jurisdiction over

their registered office;

v. Subsequent to the aforesaid operations

being carried out, the manufacturer shall

submit the details in respect of the said

scheduled formulations within a period of

one month of such re-printing, re-labeling,

re-packing or stickering. [Notification No.

22/2013.CX dated 29/07/2013]

Non-Tariff

• No new Notifications.

CIRCULARS• Maruti SX4, Honda Civic and Toyota Corolla Altis

are popularly known as sedans cars and not as

Sports Utility Vehicles (SUVs) and therefore

applicable excise duty on such card will be only

27 % and not 30%.[Circular No. 972/06/2013.CX

dated 24/07/2013]

INSTRUCTIONS• No new Notifications.

SERVICE TAX• The new format of service tax return applicable

for the period October 2012 to March 2013 has

been uploaded on 31.07.2013 on ACES. The due

date of the filing of the service tax return is 31st

Aug 2013

NOTIFICATIONS• No new notification

CIRCULARS• No new circular

FOREIGN TRADE POLICY

NOTIFICATIONS• New Para has been added in the Advance

Authorization scheme. Inputs actually used in

manufacture of the export product should only

be imported under the Authorisation Scheme.

Similarly inputs actually imported must be used

in the export product. The nexus of inputs used

in export products has to be established in

respect of every Advance Authorisation / DFIA.

[Notification No. 31/2013-(RE - 2013)/2009-

2014 dated 01/08/2013]

• Amendment has been Serve From India Scheme

(para 2.1 of the Foreign Trade Policy, 2009-

2014); thereby goods imported / procured

against SFIS scrips can be alienated on

completion of 3 years from the date of import /

procurement. [Notification No. 30/2013-(RE -

2013) / 2009-2014 dated 01/08/2013]

7


• Requirement of obtaining Sanitary Import Permit

will not be applicable to Human hair under ITC

(HS) Code 0501. However items of animal origin

or the products intended for animal feeding

containing animal origin materials under ITC (HS)

Code 2309 will continue to require Sanitary Import

Permit. [Notification No. 29/2013-(RE - 2013)/

2009-2014 dated 24/07/2013]

• Sale of waste or scrap from SEZ to DTA is

permitted without an authorization in line with

Para 2.17A of FTP and Section 47 of SEZ Rules,

2006. [Notification No. 28/2013-(RE - 2013)/

2009-2014 dated 24/07/2013]

• The import of electrical energy will not require

authorization falling under Exim Code 2716 00

00 and therefore Electrical Energy to be supplied

from SEZ in processing zone will now not require

any authorization. [Notification No. 27/2013-(RE

- 2013)/2009-2014 dated 05/07/2013]

• Amendment has been made in SCOMET

Category 3D001. [Notification No. 26/2013-(RE

- 2013)/2009-2014 dated 03/07/2013]

• Now cut & polished diamonds of 0.10 carat or

above can be exported to specified agencies/

laboratories and thereafter re-imported duty free

after certification by authorised laboratories. The

earlier limit of diamonds of size 0.25 carat has

been reduced to diamonds size of 0.10 carat.

[Notification No. 25/2013-(RE - 2013)/2009-

2014 dated 03/07/2013]

POLICY CIRCULARS

• It has been decided that an IEC will remain validirrespective of a firm's status as a DTA unit or anEOU or a SEZ/ EHTP/STP/BTP unit and theprocedure to be followed in case a firm/unit isde-bonded and converted to DTA is as under:

a. A unit, which is in EOU or in SEZ/EHTP/STP/BTP after de-bonding will not surrender theIEC obtained from its jurisdictional DC, SEZ.

b. The jurisdictional DC, SEZ will send theoriginal IEC file to concerned RA of DGFTafter de-boding.

c. RA becomes the custodian of such file andwill allow de-bonded unit to make necessarymodification in IEC.

d. The de-bonded unit to be eligible for benefitsfrom the RA as per FTP.

Further when a DTA unit converts itself into anEOU or a unit in SEZ/EHTP/STP/BTP, the IECissued by the RA would continue to be valid evenafter such conversion. [Policy Circular No.2

(RE-2013)/2009-2014 dated 26/07/2013]

PUBLIC NOTICES

• All types of export consignments under anyscheme can be exported through Kattupalli SeaPort, Tamil Nadu. [Public Notice No.20/2013-

(RE - 2013)/2009-2014 dated -29/07/2013]

• Following export products will be eligible for DutyFree Credit Scrip under Focus Product Scheme,however, now export of Copper Sulphate will notbe entitled for Duty Free Credit Scrip underFocus Product Scheme(THUTIA). The additionallist of products eligible for Focus Product Schemeis as follows.

S.No FPS HS Description Rate

Sl.No. Code percentage

889 889 84111100 TURBO JETS OF A THRUST <=25 KN 2%

890 890 84112100 TURBO-PRPLRS OF A POWER<=1100 KW 2%

891 891 84112200 TURBO-PRPLRS OF A POWER>1100 KW 2%

892 892 84118100 OTHR GAS TURBINES OF POWER <=5000 KW 2%

893 893 841182 OTHR GAS TURBINES OF POWER>5000 KW 2%

894 894 84119100 PARTS OF TURBO-JETS/TURBO PROPELLERS 2%

895 895 84111200 TURBO JETS OF A THRUST EXCEEDING 25 KN 2%

896 896 88021100 HELICOPTERS OF AN UNLADEN WT<=2000 KG 2%

8




897 897 88022000 AEROPLANES AND OTHER AIRCRAFT, OF AN UNLADEN WEIGHT

NOT EXCEEDING 2,000 KG 2%

898 898 88031000 PROPELLERS AND ROTORS AND PARTS THEREOF 2%

899 899 88032000 UNDER-CARRIAGES AND PARTS THEREOF 2%

900 900 90141000 DIRECTION FINDING COMPASSES 2%

901 901 90142000 INSTRUMENTS AND APPLIANCES FOR AERONAUTICAL OR

SPACE NAVIGATION (OTHER THAN COMPASSES) 2%

902 902 901480 OTHER INSTRUMENTS AND APPLIANCES 2%

903 903 90012000 SHEETS & PLATES OF POLARISING MATERIAL 2%

904 904 90013000 CONTACT LENSES 2%

905 905 900190 OTHER: PRISMS,MIRRORS & OTHR OPTCL ELMNTS,UNMNTD 2%

906 906 90051000 BINOCULARS 2%

907 907 900580 OTHER INSTRUMENTS : 2%

908 908 900590 PARTS & ACCESSORIES(INCL MOUNTINGS) OF BNCLRS,

MNCLRS & OTHR OPTICAL TELESCOPES 2%

909 909 90061000 CAMERAL OF A KIND USED FOR PREPARING PRINTING PLATES

OR CYLINDERS 2%

910 910 90063000 CMERAS SPCLY DSIGND FR UNDRWATR USE,AERL SRVEY/

MEDCL/SRGCL EXMNTN OF INTRNL ORGNS; CMPARSN CMERAS

FR FORNSIC/CRIMINOLGCL PRPS 2%

911 911 90064000 INSTANT PRINT CAMERAS 2%

912 912 90065100 CAMERA WTH A THROUGH-THE-LENS VIEWFINDER (S.L.R.),

FOR ROLL FILM OF A WDTH<=35 MM 2%

913 913 90065200 OTHER, FOR ROLL FILM OF A WIDTH LESS THAN 35 MM 2%

914 914 900653 OTHER, FOR ROLL FILM OF A WIDTH OF 35 MM: 2%

915 915 900659 OTHER CAMERAS 2%

916 916 90069900 OTHER -PARTS AND ACCESSORIES OF HEADING 9006:

EXCEPT CAMERAS 2%

917 917 90071090 OTHER CINEMATOGRAPHIC CAMERAS 2%

918 918 901210 MICROSCOPES OTHER THAN OPTICAL MICROSCOPESAND

DIFFRACTION APPARATUS 2%

919 919 90129000 PARTS AND ACCESSORIES 2%

920 920 90111000 STEREOSCOPIC MICROSCOPES 2%

921 921 90112000 OTHER MICROSCOPES, FOR PHOTOMICROGRAPHY,

CINEPHOTOMICROGRAPHY OR MICROPROJECTION 2%

922 922 90118000 OTHER MICROSCOPES 2%

9


923 923 90119000 PARTS & ACCESSORIES 2%

924 924 901310 TELSCOPC SIGHTS FR FITNG TO ARMS;PERISCPS;TLSCPS

DSGND TO FORM PRTS OF MCHNS,APLNCS,INSTRMNTS/

APPRTS OF THIS CHPTR OR SECTION XVI 2%

925 925 90132000 LASERS,OTHER THAN LASER DIODES 2%

926 926 901380 OTHER DEVICES, APPLIANCES AND INSTRUMENTS : 2%


928 928 90149000 PARTS AND ACCESSORIES OF COMPASSES;

OTHER NAVIGATIONAL INSTRUMENTS & APPLIANCES 2%

929 929 90151000 RANGEFINDERS 2%

930 930 90152000 THEODOLITES AND TACHEOMETERS 2%

931 931 901530 SURVEYING LEVELS 2%

932 932 90154000 PHOTOGRMTRCL SURVYING INSTRMNTS & APPLNCS 2%

933 933 901580 OTHER INSTRUMENTS AND APPLIANCES 2%

934 934 901590 PARTS & ACCESSORES OF SURVEYING,PHTOGRMCL,

HYDROGRPHIC INSTRUMNTS ETC EXCL CMPASSES 2%

935 935 901600 BLNCS OF A SNSTIVTY OF 5 CG/BTR, WITH OR WITHOUT WEIGHT 2%

936 936 902140 HEARING AIDS,EXCL PARTS AND ACCESSORIES 2%

937 937 90215000 PACEMAKERS FOR STIMULATING HEART MUSCLES EXCL

PARTS AND ACCESSORIES 2%

938 938 90221200 COMPUTED TOMOGRAPHY APPARATUS 2%

939 939 90221300 OTHER, FOR DENTAL USES 2%

940 940 90221900 APRTAS BSD ON USE OF X-RAYS,FOR OTHR USE INCL

RADIOGRAPHY/RADIOTHERAPY APPARATUS 2%

941 941 902221 APPRTS BSD ON USE OF ALPHA,BTA/GMA RADTNS FOR

MEDICAL,SURGICAL,DENTAL/VETERINARY USEINCL

RADIOGRAPHY/RADIOTHERAPY APPRATUS 2%

942 942 902229 APPRTS BSD ON USE OF ALPHA,BTA/GMA RADTNS FR

OTHR USESINCL RDOGRPHY& RDOTHRPY APPRTS 2%

943 943 902290 OTHER, INCLUDING PARTS AND ACCESSORIES 2%

944 944 902300 INSTRMNTS,APRTS & MODLS DSIGND FOR DEMONSTRATIONAL

PRPS,UNSUTBL FR OTHR USES 2%

945 945 90241000 MACHINES & APPLIANCES FOR TESTING METALS 2%

946 946 902480 OTHER MACHINES AND APPLIANCES : 2%

947 947 90249000 PARTS & ACCESSORIES 2%

948 948 902580 OTHER INSTRUMENTS 2%

949 949 90259000 PARTS & ACCSSRS OF INSTRUMENTS 2%



1 0


950 950 902610 INSTRUMENTS & APPARATUS FOR MEASURING OR CHECKING

THE FLOW OR LEVEL OF LIQUIDS 2%

951 951 902680 OTHER INSTRUMENTS OR APPARATUS : 2%

952 952 9026900 0 PRTS & ACCESSORIES 2%

953 953 90272000 CHROMATOGRAPHS & ELECTROPHORESIS INSTRMNT 2%

954 954 902730 SPECTROMETERS,SPECTROPHOTOMETERS & SPECTOGRAPHS

USING OPTICAL RADIATION (UV, VISIBLE, IR) 2%

955 955 902750 OTHER INSTRUMENTS AND APPARATUS USING OPTICAL

RADIATIONS (UV, VISIBLE, IR) : 2%

956 956 90278040 NUCLEAR MAGNETIC RESONANCE INSTRUMENTS 2%

957 957 902790 MICROTOMES;PARTS & ACCESSORIES 2%

958 958 90301000 INSTRUMENT AND APPARATUS FOR MEASURING OR

DETECTING IONISING RADIATION 2%

959 959 90302000 OSCILLOSCOPES AND OSCILLOGRAPHS 2%

960 960 90303100 MULTIMETERS WITHOUT A RECORDING DEVICE 2%

961 961 90303340 FREQUENCY MEASURING APPARATUS 2%

962 962 90303900 OTHER, WITH A RECORDING DEVICE 2%

963 963 90304000 OTHER INSTRUMENTS AND APPARATUS, SPECIALLY

DESIGNED FOR TELECOMMUNICATIONS (FOR EXAMPLE,

CROSS-TALK METERS, GAIN MEASURING , DISTORTION

FACTOR METER, PSOPHOMETERS) 2%

964 964 90308200 OTHER: INSTRUMENT & APPARATUS FOR MEASRING OR

CHECKING SEMI-CNDUCTOR WAFERS OR DEVICES 2%

965 965 903089 OTHER:OTHER INSTRUMENTS AND APPARATUS 2%


967 967 90303330 CAPACITANCE METER 2%

968 968 90303390 OTHER: INSTRUMENTS FOR ELECTRICAL QUANTITIES 2%

969 969 903210 THERMOSTATS 2%

970 970 903220 MANOSTATS 2%

971 971 90328100 HYDRAULIC/PNEUMATIC INSTRUMENTS & APPARATUS 2%

972 972 903289 OTHER ATOMATIC REGULATING/CONTROLLING INSTRUMNTS &

APPARATUS 2%

973 973 93032000 OTHER SPORTING, HUNTING OR TARGET SHOOTING

SHOTGUNS, INCLUDING COMBINATION SHOTGUN RIFLES 2%

974 974 93033000 OTHER SPORTING, HUNTING /TARGET-SHOOTING RIFLES 2%

975 975 93039000 OTHER FIREARMS & SIMILAR DEVICES 2%

976 976 93059100 OF MILITARY WEAPONS OF HEADING 9301 2%



1 1


977 977 93059900 OTHER-PART AND ACCESSORIES 2%

978 978 93063000 OTHER CARTRIDGES AND PARTS THEREOF 2%

979 979 93069000 OTHER (BOMBS, GREENADES ETC.) AMMUNITIONS OF WAR,

AND PARTS 2%

980 980 852110 MGNTC TAPE-TYPE VIDEO RECORDING &

REPRUDUCING APPARATUS 2%

981 981 852190 OTHR VIDEO RECORDING/REPRODUCING APPARATUS 2%

982 982 85261000 RADAR APPARATUS 2%

983 983 852691 OTHR: RADIO NAVIGATIONAL AID APPARATUS 2%

984 984 85269200 RADIO REMOTE CONTROL APPARATUS 2%

985 985 85407100 MAGNETRONS 2%

986 986 85407900 OTHR MICROWAVE TUBES (E.G. KLYSTRONS TRVLLNG WAVE

TUBES CARCINOTRONS)EXCL GRID CNTRLLD TUBES 2%

987 987 85408100 RECEIVER/AMPLIFIER VALVES & TUBES 2%

988 988 85408900 OTHER:OTHER VALVES AND TUBES 2%

989 989 35079061 STREPTOKINASE 2%

990 990 30049044 PACLITAXEL AND DOCETAXEL 2%

991 991 30021091 OTHER BLOOD FRACTION; MODIFIED IMUNLOGICAL PRODUCTS

OF HUMAN ORIGIN 2%

992 992 30022011 FOR CHOLERA & TYPHOID 2%

993 993 30022012 FOR HEPATITIS 2%

994 994 30022013 FOR TETANUS 2%

995 995 30022014 FOR POLIO 2%

996 996 30022015 FOR TB 2%

997 997 30022016 ANTI RABIES VACCINE (FOR RABIES) 2%

998 998 30022017 VACCINE FOR JAPANESE ENCEPHALITIS (FOR JE) 2%

999 999 30022018 VACCINES FOR WHOOPING COUGH (PERTUSIS) 2%

1000 1000 30022019 OTHER 2%

1001 1001 30022021 FOR MIXED VACCINES FOR DPT-TRIPLE ANTI GEN

(DIPTHERIA, PERTUSIS AND TETANUS) 2%

1002 1002 30022022 FOR DIPTHERIA AND TETANUS 2%

1003 1003 30022023 FOR MEASLES, MUMPS AND RUBELLA 2%

1004 1004 30022024 FOR TYPHOID-PARATYPHOID OR TYPHOID-

PARATYPHOID-CHOLERA 2%

1005 1005 30023000 VACCINES FOR VETERINARY MEDICINE 2%



1 2


1006 1006 30021011 DIPTHERIA ANTISERA 2%

1007 1007 30021012 TETANUS ANTISERA 2%

1008 1008 30021013 RABIES ANTISERA 2%

1009 1009 30021014 SNAKE VENOM ANTISERA 2%

1010 1010 30021019 OTHER ANTISERA 2%

1011 1011 30021020 HEMOGLOBIN BLOOD GLOBULINS&SERUM GLOBULINS 2%

1012 1012 30045010 HEAMATINICS AND ERYTHROPOIETIN PREPARATIONS 2%

1013 1013 29371100 SOMATOTROPIN, ITS DRVTVS& STRCTL ANALOGUES 2%

1014 1014 30043911 PITUITARY HARMONES 2%

1015 1015 30043912 PREDNISOLONE 2%

1016 1016 30043913 DEXAMETHASONE 2%

1017 1017 30043914 DANAZOL 2%

1018 1018 30043921 GONADOTROPHINS 2%

1019 1019 29375000 PROSTAGLANDINS, THROMBOXANES & LEUKOTRIENES THEIR

DERIVATIVES & STRUCTURAL ANALOGUES 2%

1020 1020 30041010 PENICILLIN 2%

1021 1021 30041030 AMOXYCILLIN 2%

1022 1022 30041040 BECAMPICILLIN 2%

1023 1023 30041050 CLOXACILLIN 2%

1024 1024 30041070 STREPTOMYCIN 2%

1025 1025 30042011 CEPHAZOLIN 2%

1026 1026 30042013 CIPROFLOXACIN 2%

1027 1027 30042014 CEFOXITIN 2%

1028 1028 30042034 OFLOXACIN 2%

1029 1029 30042041 CHLORTETRACYCLINE 2%

1030 1030 30042042 OXYTETRACYCLINE 2%

1031 1031 30042095 CLINDAMYCIN 2%

1032 1032 30042096 VANCOMYCIN 2%

1033 1033 30042097 POLYMYXIN B AND COLISTIN 2%

1034 1034 30043110 INSULIN INJECTION 2%

1035 1035 30043200 CONTAINING CORTICOSTEROID HARMONES,

THEIR DERIVATIVES AND STRUCTURAL ANALOGUES 2%

1036 1036 30049036 CHENODIOL AND URSODIOL 2%

1037 1037 30044010 ATROPIN & ITS SALTS THEREOF 2%

1038 1038 30042061 ERYTHROMYCINE 2%

1039 1039 30045035 PREPARATION OF VITAMIN "C" 2%



1 3


1040 1040 30029030 CULTURES OF MICRO-ORGANISMS (EXCLUDING YEAST) 2%

1041 1041 84734090 OTHER PARTS AND ACCESSORIES OF THE MACHINES OF

HEADING 8472 OTHER THAN DUPLICATING, HECTOGRAPH OR

STENCIL MACHINES 2%

1042 1042 53071010 YARN OF JUTE, SINGLE 2%

1043 1043 53072000 MULTIPLE FOLDED OR CABLED YARN OF JUTE 2%

1044 1044 53101012 SACKING FABRICS CONTAINING 100% BY WEIGHT OF JUTE 2%

1045 1045 53101013 HESSIAN FABRICS CONTAINING 100% BY WEIGHT OF JUTE 2%

1046 1046 63051030 JUTE HESSIAN BAGS 2%

1047 1047 63051040 JUTE SACKING BAGS 2%

1048 1048 63051080 JUTE SOIL SAVERS 2%



[Public Notice No.19/2013-(RE-2013)/2009-2014

dated -10/07/2013]

• The description of export product under SION

A-3530 and A-3529 for "Activated Polydimethyl

Siloxane" and "Simethicone" has been redefined.

[Public Notice No.18/2013-(RE - 2013)/2009-

2014 dated -10/07/2013]

• A new SION A 3643 has been notified.

[Public Notice No.17/2013-(RE - 2013)/2009-

2014 dated -9/07/2013]

• SION A-1442 has been revised which is as

follows.

• The name of the export product has been

widened from "Ortho Tertiary Butyl Cyclohexyl

Acetate" to "Ortho Tertiary Butyl Cyclohexyl

Acetate and or Ortho Tertiary Butyl Cyclohexyl

Acetate Super". [Public Notice No.16/2013-(RE

- 2013)/2009-2014 dated -9/07/2013]

TRADE NOTICE• Suggestions are invited to prevent unintended

benefit under Incremental Export Incentivisation

Scheme from various stakeholders through e-

mail to [email protected] up to 18.00 hrs on

20.08.2013. [Trade No.6 (RE-2013)/2009-2014

dated 31/07/2013]

• Personal Hearing (PH) by the Director General

of Foreign Trade will be held at Udyog Bhawan,

New Dehli-11 onsecond Tuesday of every month

between 3:00PM to 4:00PM. In case, in any

month, 2nd Tuesday is not a working day then

such PH may be held on next Tuesday. [Trade

Notice No. 05/2013-(RE - 2013)/2009-2014

dated -19/07/2013]

• Registration Certificate is required for non-

basmati rice & wheat only when it is exported to

Bangladesh & Nepal through non-EDI Land

Custom Stations (LCS). Registration Certificates

is not required for export of non-basmati rice and

wheat except for export to Bangladesh & Nepal

through non-EDI Land Custom Stations (LCS)].

[Trade Notice No. 04/2013-(RE - 2013)/2009-

2014 dated-02/07/2013]

Export Exp. SI. Import Qty.

Product Qty. No. items allowed

(Kg.)

Fatty Alcohol 1 Kg. 1. Palm Fatty Acid

(Cetyl, Stearyl, Distillate (PFAD) 1.16 Kg

Ceto-Stearyl) 2. Copper Chromite 0.005 Kg

Catalyst

Export Product Exp. SI. Import items Qty.allowed

Qty. No. (Kg.)

Ortho TertiaryButyl CyclohexylAcetate and orOrtho TertiaryButyl CyclohexylAcetate Super

1 Kg. 1. Ortho Tertiary Butyl 0.80 kgPhenol

2. Acetic Anhydride 0.575 kg

3. 5% Ruthenium onCarbon Catalyst 0.000015 kg

4. Methanol 0.330 kg

1 4


INCOME TAX

NOTIFICATIONS• Department has notified the rate of interest in

respect of rupee denominated bond of an Indian

company, namely :

(i) in case of bonds issued before the 1st day

of July, 2010, the rate of interest shall not

exceed 500 basis points (bps) over the Base

Rate of State Bank of India as on the 1st

day of July, 2010.

(ii) in case of bonds issued on or after the 1st

day of July, 2010, the rate of interest shall

not exceed 500 basis points (bps) over the

Base Rate of State Bank of India applicable

on the date of issue of the said bonds.

[Notification 56/2013 dated 29/07/2013]

• Central government has notified Uttarakhand

State AIDS Control Society, a body constituted

by the Government of Uttarakhand for the

income arising to that society namely "amount

received in the form of grants-in-aid from the

Central Government" for claiming exemption u/

s 10(46) of Income Tax act, 1961. [Notification

55/2013 dated 29/07/2013]

• Section 35CCD for claiming a weighted

deduction of 150% of expenditure as enacted

from Finance Act 2012. Accordingly, Rule 6AAF,

6AAG, 6AAH has been inserted in Income tax

Rules specifying procedure & conditions for

approval of Skill Development Project.

[Notification No. 54/2013 dated 15/07/2013]

• Due date for filing the return of income which is

to be furnished by 31st July 2013 is extended to

31st Oct 2013 in respect of assesses residing or

assessed in the state of UTTARAKHAND.

[Notification No. 53/2013 dated 23/07/2013]

• Central government has notified Gujarat State

AIDS Control Society, a body constituted by the

Government of Gujarat for the income arising to

that society namely "amount received in the form

of grants-in-aid from the Central Government"

for claiming exemption u/s 10(46) of Income Tax

act, 1961. [Notification 52/2013 dated 05/07/

2013]

• Brief guidelines for weighted deduction @150%

of the expenditure incurred on skill development

under section 35CCD of the Income-tax Act,

1961 has been issued. [Press Release dated

18/07/2013]

• Due date of filing Return of Income has been

extended from 31st July 2013 to 5th August 2013.

[Order No. 119 dated 31/07/2013]

CIRCULARS

• No New Circulars

MVAT

• Compounding of the offences for non-filing of the

returns without prosecution procedure under

section 74 has given. Now the defaulter dealer

can opt for the compounding of the offences and

the compounding fees is mentioned below.

Sr. Category Compounding amount

No. for each offence (In Rs.)

1 Dealers liable to file Six-monthly Double the amount of tax or

returns & newly registered dealer Rs. 5,000/- whichever is lower.

2 Dealers liable to file quarterly Double the amount of tax or

return Rs. 15,000/- whichever is lower.

3 Dealers liable to file monthly Double the amount of tax or

return Rs. 25,000/- whichever is lower.

[Trade Circular No. 5 dated 24/07/2013]

COMPANY LAW

NOTIFICATION• No New Notifications

CIRCULAR• No New Circulars

FEMA/RBI

1 5


Circular NumberDate of

IssueDepartment Subject Meant for

RBI Circulars July - 2013

RBI/2013-2014/158DPSS.CO.CHD.No. /

209 / 04.07.05 / 2013-14

24.7.2013 Department ofPayment andSettlement

System

Migration of Post-datedcheques (PDC)/EquatedMonthly Instalment (EMI)Cheques to Electronic ClearingService (Debit)

The Chairman and Man-aging Director / ChiefExecutive Officer AllScheduled Comm-ercialBanks including RRBs /Urban Co-operativeBanks / State Co-opera-tive Banks /District Cen-tral Co-operative Banks/Local Area Banks

RBI/2013-2014/153FMD.MOAG. No. 83/

01.01.001/2013-14

23.7.2013 Financial MarketsDepartment

Liquidity Adjustment Facility All Standalone PrimaryDealers

RBI/2013-2014/152FMD.MOAG. No.82/01.01.001/2013-14


Liquidity Adjustment Facility All Scheduled Comm-ercial Banks (excludingRRBs)

RBI/2013-2014/151A.P.(DIR Series)

Circular No.17

23.7.2013 Foreign ExchangeDepartment

Risk Management and Inter-Bank Dealings - Reporting ofUnhedged Foreign CurrencyExposures of Corporates

All Category - I Autho-rised Dealer Banks

RBI/2013-2014/149A.P. (DIR Series)

Circular No. 16


Exim Bank's Line of Credit ofUSD 19 million to the Govern-ment of the Republic ofSenegal



Circular No.15


Import of Gold by NominatedBanks /Agencies/Entities

All Scheduled Comm-ercial Banks which areAuthorised Dealers(ADs) in Foreign Ex-change/ All Agenciesnominated for import ofgold


Circular No.14


Export of Goods and Software- Realisation and Repatriationof export proceeds - Libera-lisation

All Category - IAuthorised DealerBanks


Circular No.13


Exim Bank's Line of Credit ofUSD 35 million to the Govern-ment of the Republic of Ghana


RBI/2013-2014/144DBOD.No.Ret.BC. 33/

12.02.001/2013-14

17.7.2013 Department ofBanking

Operations andDevelopment

Section 24 of the BankingRegulation Act, 1949 - Main-tenance of Statutory LiquidityRatio (SLR) - Marginal Stand-ing Facility (MSF)

All Scheduled Comm-ercial Banks (ExcludingRegional Rural Banks)

RBI/2013-2014/141DPSS.CO.CHD.No./133

/ 04.07.05 / 2013-14

16.7.2013 Department ofPayment & Settle-ment System

Standardization and Enhance-ment of Security Features inCheque Forms/Migrating toCTS 2010 standards

The Chairman and Man-aging Director / ChiefExecutive Officer AllScheduled Commercial

1 6




Banks including RRBs /Urban Co-operativeBanks / State Co-opera-tive Banks / DistrictCentral Co-operativeBanks/Local AreaBanks

RBI/2013-2014/140FMD.MOAG. No.79 /

01.01.001/2013-14


Marginal Standing FacilityRates

All Scheduled Commer-cial Banks (excludingRRBs) and PrimaryDealers


Circular No. 12


External Commercial Borrow-ings (ECB) Policy Repaymentof Rupee loans and/or freshRupee capital expenditure -USD 10 billion Scheme


RBI/2013-2014/134A.P.(DIR Series)Circular No. 11


External Commercial Borrow-ings (ECB) Policy - Review ofall-in-cost ceiling



Circular No.10


External Commercial Borrow-ings (ECB) Policy - Refinanc-ing / Rescheduling of ECB



Circular No.9


Trade Credits for Imports intoIndia - Review of all-in-costceiling



Circular No.8


Overseas Investments -Shares of SWIFT



Circular No. 7


Risk Management and InterBank Dealings

All Authorised DealerCategory - I Banks


Circular No. 6


External Commercial Borrow-ings (ECB) Policy - Non-Bank-ing Finance Company - AssetFinance Companies (NBFC -AFCs)



Circular No.5


Deferred Payment Protocolsdated April 30, 1981 and De-cember 23, 1985 between Gov-ernment of India and erstwhileUSSR



Circular No. 4


Exim Bank's Line of Credit ofUSD 10 million to the Govern-ment of Seychelles


1 7





Circular No.03


Deferred Payment Protocolsdated April 30, 1981 and De-cember 23, 1985 between Gov-ernment of India and erstwhileUSSR



Circular No.02


Risk Management and Inter-Bank Dealings- Liberalizationof documentation requirementsfor the resident entities in theIndian Forex Market

All Authorised DealerCategory - I Banks


Circular No.01


Foreign Investment in India -Guidelines for calculation oftotal foreign investment in In-dian companies, transfer ofownership and control of Indiancompanies and downstreaminvestment by Indian compa-nies

All Category - IAuthorised Dealer banks

RBI/2013-2014/116DPSS.CO.PD. Mobile

Banking.No./02.23.001/2013-14

1.7.2013 Department ofPayment andSettlement

System

Master Circular - Mobile Bank-ing Tansactions in India - Op-erative Guidelines for Banks

The Chairman and Man-aging Director / ChiefExecutive Officers AllScheduled CommercialBanks including RRBs /Urban Co-operativeBanks / State Co-opera-tive Banks / DistrictCentral Co-operativeBanks

RBI/2013-2014/108MPD. No. 366 /

07.01.279/2013-14

1.7.2013 Monetary PolicyDepartment

Master Circular on ExportCredit Refinance Facility

The Chairmen/Chief Ex-ecutives of all Sched-uled Banks (excludingRRBs)

RBI/2013-2014/107RPCD.CO.Plan.BC 9 /

04.09.01/2013-14

1.7.2013 Rural Planningand Credit

Department

Master Circular - Priority Sec-tor Lending-Targets and Clas-sification

The Chairman/ ManagingDirector/ Chief Execu-tive Officer [All sched-uled commercial banks(excluding Regional Ru-ral Banks)]

RBI/2013-2014/106IDMD.PDRD. 02 /03.64.00/2013-14



Master Circular- Capital Ad-equacy Standards and RiskManagement Guidelines forStandalone Primary Dealers

All Standalone PrimaryDealers

RBI/2013-2014/105IDMD.PCD. 04/

14.01.02/2013-14

1.7.2013 Internal DebtManagementDepartment

Master Circular - Guidelines forIssue of Commercial Paper

All market participants

RBI/2013-2014/104IDMD.PCD. 05 /14.01.03/2013-14

1.7.2013 Internal DebtManagementDepartment

Master Circular - Guidelines forIssue of Certificates of Deposit

All market participants

1 8




RBI/2013-2014/76DBOD.No.Dir.BC. 14/

13.03.00/2013-14



Master Circular- Loans andAdvances - Statutory and OtherRestrictions

All Scheduled Commer-cial Banks (excludingRRBs)

RBI/2013-2014/75DBOD.No.Dir.BC.10/

13.03.00/2013-14



Master Circular on InterestRates on Rupee Deposits heldin Domestic, Ordinary Non-Resident (NRO) and Non-Resi-dent (External) (NRE) Ac-counts


RBI/2013-2014/74DBOD.No.Dir.BC. 11 /

13.03.00/2013-14



Master Circular of instructionsrelating to deposits held inFCNR(B) Accounts


RBI/2013-2014/73DBOD.No.Dir.BC. 15 /

13.03.00/2013-14



Master Circular - Interest Rateson Advances


RBI/2013-2014/72DBOD.No.BP.BC. 9/21.06.001/2013-14



Master Circular - PrudentialGuidelines on Capital Ad-equacy and Market Discipline- New Capital AdequacyFramework (NCAF)

All Commercial Banks(Excluding Local AreaBanks and Regional Ru-ral Banks)

RBI/2013-2014/71DBOD.No.BP.BC. 21/

21.01.002/2013-14



Master Circular - PrudentialNorms on Capital Adequacy -Basel I Framework

All Local Area Banks

RBI/2013-2014/70DBOD.No.BP.BC. 2/21.06.201/2013-14



Master Circular - Basel III Capi-tal Regulations

All Scheduled Commer-cial Banks (ExcludingLocal Area Banks andRegional Rural Banks)

RBI/2013-2014/69DBOD No.Leg.BC. 22 /

09.07.006/2013-14



Master Circular on CustomerService in Banks

All Scheduled Commer-cial Banks (ExcludingRRBs)

RBI/2013-2014/68DBOD.No.Dir.BC.13/

13.03.00/2013-14



Master Circular - ExposureNorms


RBI/2013-2014/67DBOD. No.DIR.BC.17/

08.12.001/2013-14



Master Circular - Housing Fi-nance


RBI/2013-2014/66DBOD. No. Dir. BC.12/

13.03.00/2013-14



Master Circular - Guaranteesand Co-acceptances


1 9




RBI/2013-2014/65DBOD No.DIR.BC.16 /

04.02.002/2013-14



Master Circular - Rupee / For-eign Currency Export Creditand Customer Service To Ex-porters


RBI/2013-2014/64DBOD.No.Ret.BC. 19/

12.01.001/2013-14



Master Circular - Cash Re-serve Ratio (CRR) and Statu-tory Liquidity Ratio (SLR)

All Scheduled Commer-cial Banks (ExcludingRegional Rural Banks)

RBI/2013-2014/63DBOD No. CID.BC. 3 /

20.16.003/2013-14



Master Circular on Wilful De-faulters

i) All scheduled com-mercial banks (exclud-ing RRBs and LABs) andii) All India Notified Fi-nancial Institutions

RBI/2013-2014/62DBOD.No.BP.BC.1/21.04.048/2013-14



Master Circular - Prudentialnorms on Income Recognition,Asset Classification and Pro-visioning pertaining to Ad-vances

All Commercial Banks(excluding RRBs)

RBI/2013-2014/61DBOD. No.FSD.BC.05/

24.01.001/ 2013-14



Master Circular - Para-bankingActivities


RBI/2013-2014/58DBOD.BP.BC No. 7/21.04.018/2013-14



Master Circular - Disclosure inFinancial Statements - Notesto Accounts

The Chairmen/Chief Ex-ecutives of All Commer-cial Banks (excludingRRBs)

RBI/2013-2014/57DBOD.BP.BC.No.6/21.04.172/2013-14



Master Circular - Bank Financeto Non-Banking Financial Com-panies (NBFCs)

Chairman and ManagingDirectors / Chief Execu-tives of All ScheduledCommercial Banks (Ex-cluding RRBs)

RBI/2013-2014/55DNBS (PD) CC.No.33/SCRC/26.03.001/ 2013-

2014

1.7.2013 Department ofNon BankingSupervision

Master Circular on directions/instructions issued to theSecuritisation Companies/Re-construction Companies

RBI/2013-2014/54DNBS (PD) CC. No. 31/SCRC/26.03.001/ 2013-

2014


Notification as amended uptoJune 30, 2013 -The Securiti-sation Companies and Recon-struction Companies (ReserveBank) Guidelines and Direc-tions, 2003

R B I / 2 0 1 3 - 2 0 1 4 / 5 3DNBS (PD-MGC) C.C.No.15/23.11.001/2013-14


Notification as amended uptoJune 30, 2013 - "MortgageGuarantee Companies Pruden-tial Norms (Reserve Bank) Di-rections, 2008"

The Chairman/CEOs ofall Mortgage GuaranteeCompanies

2 0




RBI/2013-2014/52DNBS (PD-MGC)

C.C.No.16/23.11.001/2013-14


Notification as amended uptoJune 30, 2013 - "MortgageGuarantee Companies Invest-ment (Reserve Bank) Direc-tions, 2008"

The Chairman/CEOs ofall Mortgage GuaranteeCompanies

RBI/2013-2014/17UBD.BPD.(PCB) MC

No.2/09.22.010/2013-14

1.7.2013 Urban BanksDepartment

Master Circular- Finance forHousing Schemes - UCBs

The Chief Executive Of-ficers All Primary (Ur-ban) Co-operativeBanks

RBI/2013-2014/15Master Circular No.

15 /2013-14(Updated as onJuly 04, 2013)


Master Circular on Foreign In-vestment in India


RBI/2013-2014/14Master Circular No.14 /

2013-14


Master Circular on Exports ofGoods and Services

All Authorised DealerCategory - I banks andAuthorised banks

RBI/2013-2014/13Master Circular No. 13/

2013-14


Master Circular on Import ofGoods and Services

Master Circular on Im-port of Goods and Ser-vices

RBI/2013-2014/12Master CircularNo. 12/2013-14


Master Circular on ExternalCommercial Borrowings andTrade Credits


RBI/2013-2014/11Master CircularNo.11/2013-14


Master Circular on Direct In-vestment by Residents in JointVenture (JV) /Wholly OwnedSubsidiary (WOS) Abroad

All Authorised DealerCategory - I banks



Master Circular on Memoran-dum of Instructions governingmoney changing activities

All Authorised Personsin Foreign Exchange



Master Circular on Compound-ing of Contraventions underFEMA, 1999

All Authorised DealerCategory - I banks andAuthorised Banks

RBI/2013-2014/8Master CircularNo.8 /2013-14


Master Circular on RemittanceFacilities for Non-Resident In-dians / Persons of Indian Ori-gin / Foreign Nationals




Master Circular on Miscella-neous Remittances from India- Facilities for Residents

All Authorised Personsin Foreign Exchange



Master Circular on Establish-ment of Liaison / Branch /Project Offices in India by For-eign Entities


2 1






Master Circular on Risk Man-agement and Inter-Bank Deal-ings

All Authorised Dealers -Category I Banks



Master Circular on Acquisitionand Transfer of ImmovableProperty in India by NRIs/PIOs/Foreign Nationals ofNon-Indian Origin


RBI/2013-2014/3Master Circular No.3/

2013-14


Master Circular on Memoran-dum of Instructions for Open-ing and Maintenance of Rupee/Foreign Currency Vostro Ac-counts of Non-resident Ex-change Houses

All Authorised DealerCategory-I Banks

RBI/2013-2014/2Master CircularNo.2 /2013-14


Master Circular on Non-Resi-dent Ordinary Rupee (NRO)Account




Master Circular on MoneyTransfer Service Scheme

All Authorised Persons,who are Indian Agentsunder the Money Trans-fer Service Scheme

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CBEC Notified Exchange Rate for Conversion of Foreign Currency w. e. f.2nd Aug 2013 (Notification No. 81/2013-Customs (N.T.) dt. 01.08.2013)

SCHEDULE - I

S.No. Foreign Currency

Rate of exchange of one unit of foreign currency

equivalent to Indian rupees

(For Imported Goods) (For Export Goods)

1. Australian Dollar 55.85 54.35

2. Bahrain Dinar 166.65 157.45

3. Canadian Dollar 60.05 58.5

4. Danish Kroner 11 10.7

5. EURO 81.85 79.95

6. Hong Kong Dollar 7.95 7.8

7. Kenya Shilling 72.2 67.85

8. Kuwait Dinar 221.5 208.15

9. New Zealand Dollar 49.4 48

10. Norwegian Kroner 10.45 10.15

11. Pound Sterling 94.05 91.9

12. Singapore Dollar 48.45 47.4

13. South African Rand 6.4 6.05

14. Saudi Arabian Riyal 16.75 15.85

15. Swedish Kroner 9.45 9.2

16. Swiss Franc 66.55 64.75

17. UAE Dirham 17.1 16.15

18. US Dollar 61.55 60.55

S.No. Foreign Currency

Rate of exchange of 100 units of foreign currency

equivalent to Indian rupees

SCHEDULE-II

(For Imported Goods) (For Export Goods)

1. Japanese Yen 63 61.5

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Be 100% Statutory Compliant -Be 100% Statutory Compliant -Be 100% Statutory Compliant -Be 100% Statutory Compliant -Be 100% Statutory Compliant -

Important Tips forImportant Tips forImportant Tips forImportant Tips forImportant Tips for

Indirect and Direct TIndirect and Direct TIndirect and Direct TIndirect and Direct TIndirect and Direct Taxation!axation!axation!axation!axation!

By CMA Ashok Nawal

In the Budget 2013-14, certain stringent provisions

were incorporated and accepted by the Parliament

and therefore included in the Enactment.

Section 104 of Customs Act 1962 or Section 9A,

Section 20 of Central Excise Act, 1944 had being

amended where powers of arrest has been granted

at the time of investigation itself and if mis-declaration

of import / export cargo or evasion of duty is more

than Rs. 50 lacs then, such offense will be treated as

cognizable offense which is non - bailable and

imprisonment of such offenses can be up to 7 years.

Similar provisions have been incorporated in the

finance Act for the alleged evasion of service tax if it

is more than Rs. 50 lacs then, similar provisions of

Central Excise Act are made applicable Moreover,

each person dealing in Service Tax from officers to

Directors are held personally liable and persons liable

are also defined.

Similarly, provisions of provisional attachment of the

property to protect the revenue even at the time of

investigation have been incorporated.

In view of the same and more so, as a value system

of the company, it is mandatory for each Company to

have periodical review on continuous basis to ensure

100% Statutory Compliance. Even though system is

in place, there are no. of factors (internal & external)

which also needs to be addressed.

Attempt has been made to give the important tips,

since exhaustive list may vary from case to case basis,

but if such tips are been followed in real spirit, then it

will be beneficial to the Companies for achieving the

objective to be Statutory Complaint.

Customs - Imports & Exports

Whenever importation or exportation is planned

important factors like item description, conditions for

imports or exports, tariff classification & description,

description as per company master file as well as

supplier's master file, relationship between importer

& exporter, valuation and documentation, etc. are the

key factors.

After November, 2011 Era of Self-Assessment started

and accordingly, suitable changes to Section 17, 18,

46 & 50 of the Customs Act, 1962 has been made.

Key elements of Self-Assessment of imported /

exported goods

• Description of goods

• Classification

• Levy of duty / Cess

• Nature of the goods

• Whether the notification benefit is conditional or

other wise

• Whether countervailing duty is applicable based

on MRP

• Whether anti-dumping duty or safeguard duty is

applicable

• Whether duty benefit is available under a Free

Trade Agreement

• Whether duty benefit is available as Project

Import

• Whether duty benefit is available under Export

Promotion schemes

• Valuation

• Import and export restrictions and licensing

• Compulsory Compliance Requirement (CCR)

• Selection of Export Promotion Schemes

It is important to understand the following information

under the said regulation.

a) 'audit' means examination of bills of entry,

shipping bills, invoices, packing lists, import

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Key Aspects Check Points

Description of goods 1) Check description of goods matches with ERP system / Store Accounting

Systems, Purchase Orders, Brand, Grade, Specification. If brand, grade and

specifications are not properly declared value can be rejected under Rule 12

of Customs Valuation (determination of value of imported goods) Rules 2007.

2) The description should be generic based merely on description of the drawback

schedule. It should provide descriptive and technical details of export / import

goods.

Classification 1) General principle of classification is to match correct and complete description

of goods with that of Custom Tariff Act.

2) Classification should be inconsonance with International Convention of

Harmonized System of Nomenclature as made effective.

3) Product technical literature, application catalogues, certificate of analysis, in-

house test report, sales invoices, composition of raw-material / intermediate

goods, manufacturing of finished goods, using the raw-material / intermediate

goods also will be subjected for audit for verifying import / export consignments.

Levy of duty/ Cess Importer / Exporter are required to carefully verify whether their items of import /

export is liable for any duties / cess and also ensure correct rate of duty considering

the Notification issued under Section 25 of Customs Act, 1962.

Nature of the goods While considering the Tariff Rate of Duty or Effective Rate of Duty, plain many of

the language used in the Notification is to be taken to decide applicability of the

Notification and should not be stretch to avail the benefit which is not intended in

the Notification.

Quantity and Unit of 1) Quantity and unit of measurement as mentioned in the Bill of Entry or Shipping

Measurement Bill at the time of import or export as the case may be should be the same and

match with the books of accounts as mentioned above and all records manual

or electronics, electronically maintained.

2) It has been observed that the quantity reported in system / books of accounts

are different than that of reported in declaration made at the time of import /

export and therefore such goods are liable for confiscation and there will be

litigation and demands of duty, penalty and interest and fine in lieu of

confiscation.

licences, books of account, and other records of

transaction relating to imported and export

goods, and may include inspection of goods at

the premises, if available and where necessary,

drawal of samples;

b) 'books of account' includes ledgers, day-books,

cash books, account-books and other accounts

whether kept in the written or printed form and

data stored on a floppy, disc, tape or any other

form in electro-magnetic data storage device;

c) 'premises' includes the place at which imported

or export goods and connected books of account,

records of transaction and other documents are

ordinarily kept by an importer or exporter, as the

case may be, and his registered office or the

premises indicated in his Importer Exporter Code

(IEC) issued by the Ministry of Commerce and

Industry and the places wherever the imported

or export goods, as the case may be, are

ordinarily kept;

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Whether the Conditions applicable to the exemption of Notification to be fulfilled either Pre-

notification benefit Import Or Post-Import or Pre-Export Or Post-Export as the case may be. Since the

is conditional or audit will be conducted after one year it is easy to verify fulfillment of the conditions

otherwise by the Customs Officers.

Whether 1) Most of the times while clearing the goods the conditions of Notice No. 44 (RE

countervailing 2000)/ 1997 -2002dt. 24/11/2000 not been strictly followed and the casual

duty is applicable declarations are made. Since the goods will be available for inspection and

based on MRP audit proper declaration of MRP at the time of payment of CVD and affixing /

printing of the label on the goods is the requirement under Legal Metrology

Act and should be complied with.

2) Proper records to be kept for verification of MRP declared at the time of imports

and the price list of such items otherwise unnecessary litigation will arise.

Whether anti-dumping 1) Importer should closely examine the records like Bill of Lading / Air Way Bill,

duty or safeguard Country of Origin Certificate, Contract Copy, Sales Brochure and Catalogues,

duty is applicable Invoices etc to ascertained manufacture - supplier or exporter, country of origin

of imported goods,

2) Test Reports, Certificate of Analysis, Brochures and Catalogues, Sales Invoices

will also be audited to ascertain the correctness of declaration and assessment

of Anti-Dumping Duty and Safeguard Duty.

Whether duty benefit 1) Importer needs to be confirming the Tariff Notification for the Rate of Duty

is available under a applicable on specific goods imported under Free Trade Agreement with Japan,

Free Trade Agreement Korea, Singapore, Asian, Malaysia, Thailand, EU, Australia, New- Zealand,

SAARC countries.

2) Importer needs to obtain necessary GSP as per countries specific Rules Of

Origin and fulfill the conditions before claiming such benefits under the

notification.

Whether duty benefit If duty benefit under project import has been availed, then conditions of project

is available as Project import approvals needs to be fulfilled and proper documentation of installation and

Import: start-of commercial production needs to be complied with.

Whether duty benefit 1) If duty benefit is availed under various schemes under Chapter 3 of Foreign

is available under Trade Policy like SIS, FMS, FPS, MLFPS, Hi-Tech, SHIS, VKGUY etc. the

Export Promotion script and utilization thereof needs to ensured even after imports.

schemes 2) Similarly if duty exemption benefit has been availed under Chapter 4 & 5 of

Foreign Trade Policy then the records import / export and conditions of the

authorization needs to be fulfilled and records should be available in the

premises of importer / exporter and match with the requirement.

3) It has been observed that records of consumption either not maintained or do

not match with Books of accounts / ERP system. Moreover the inputs mentioned

in the SION are imported but not been utilized can be well verified from ERP

system or Store Accounting Systems, Costing Systems, Bill of Material and

Number of internal documents including designs and therefore proper care

has to be taken to avoid litigations and allegations of mis-declaration or

suppressions of facts which will result into confiscation of goods and such


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goods are not available during audit still it is liable for confiscation and

redemption fine alongwithduty, interest and penalty will be applicable.

4) If goods are imported claiming exemption under Chapter 6 of Foreign Trade

Policy i.e EOU / STPI / EHTP /BTP during audit fulfillment of conditions of the

notification will be verified and therefore internal records should be in line with

the conditions therein.

5) Product technical literature, application catalogues, certificate of analysis, in-

house test report, sales invoices, composition of raw-material / intermediate

goods, manufacturing of finished goods, using the raw-material / intermediate

goods also will be subjected for audit for verifying import / export consignments

and such consumptions also will be checked with declarations made at the

time of making application with DGFT, declarations filed at the time import /

export, and actual books of accounts including system reports / records.

Valuation 1) Importer / Exporter needs to declare the value in accordance with Section 14

of Customs Act, 1962 read with Customs Valuation (determination of valuation

of imported goods) Rules 2007 /Customs Valuation (determination of value of

export goods) Rules 2007.

2) The transactions with related parties needs to be declared correctly and value

to be assess in terms of (1) above. Most of the time it has been observed that

declarations and facts made before adjudicating officer while fixation of value

by SVB /GATT Cell are different and therefore the said order may not be valid

and hence it has to be ensured if facts are different then it has to be brought to

notice before SVB Cell otherwise value can be rejected at the time of audit

also.

3) Importer / Exporter has to be aware of the Data Bank of recent imports and

the prices thereof so as to determine identical value / similar value / deductive

value / computed value otherwise there may be possibility during audit to

determine value based on the principles of residual method and differential

duty interest penalty may be demanded. Under the self-assessment onus of

determining the correct value in sequential method and providing evidence

has been shifted on the importer from custom offices.

4) When exports are made under various export promotion schemes or exemption

schemes or remission schemes then it is utmost important to declare correct

FOB value in accordance with Rule 3 of Export Valuation Rules 2007.

5) If exports are made to the related party then onus will be on exporter that price

will not influence due to relationship otherwise exporter has to provide the

evidences of determining the value sequentially in terms of Rule 4, 5 / 6 of

Export Valuation Rules, 2007

6) The export value declared on excise return i.e ER- 1 / ER-2 should be matched

with / reconcile with Shipping Bill, Bank Realization Certificate, Books of

Accounts, Notes to Accounts.

7) Exporter needs to take due care while filing the declaration which should be

accurate, true and complete.


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8) In case of High Sea Sales transactions value as accounted and received from

buyer will be also subject for audit.

9) The cost of pre-goods and services in accordance with Rule 9 can be verified

from the books of account, similarly treatment of royalty, technical know-how,

discounts, payment / receipts in foreign exchange various agreements and

contacts will be subjected to audit for verification of value declared at the time

of self-assessment.

Import and export 1) Under Section 2 (33) of the Customs Act prohibited goods are defined and

restrictions and such goods either should not be imported or exported. In accordance with

licensing Section 111 (d) Section 113 (d) such goods are liable for confiscation and also

the importer / exporter is liable for imprisonment.

2) The goods covered under prohibited / restricted goods should be under licensing

provisions and conditions to be strictly fulfilled.

Compulsory During audit Custom Officer can verify the Compulsory Compliance Requirement

Compliance as applicable under various laws as give below:

Requirement (CCR) • Explosives Act, 1884and Explosive Rules, 1983.

• Live Stock Importation Act, 1898.

• Drugs and Cosmetics Act,1940 and Drug and Cosmetics Rules,1945

• Copyright Act,1957 and Copyright Rules, 1958.

• Arms Act, 1959.

• Atomic Energy Act, 1962.

• Insecticide Act, 1968.

• Patents Act,1970 and Patent Rules, 2003.

• Wild Life Protection Act, 1972.

• Gas Cylinder Rules, 1981 and S&MPV (Unfired) Rules, 1981.

• Environment (Protection) Act, 1986 and Rules, 1986.

• The Bureau of Indian Standards Act, 1986 and Rules, 1987

• Motor Vehicles Act, 1988.

• Plants, Fruits and Seeds (Regulation of Import in to India) Order, 1989.

• Trade Marks Act, 1999.

• Hazardous Waste (Management and Handling) Rules, 2003.

• Plant Quarantine (Regulation of ImportInto India) Order, 2003.

• Food Safety and Standards Act, 2006.

• Legal Metrology Act, 2009 and Legal Metrology (Packaged Commodities) Rules,

2011.


Importer /exporter needs to respond to the proactive

system of building, trust and record base self-

assessment system and audit thereof and therefore

substantial change in operating procedures and

practices of custom clearance of import /export

consignments needs to be made and issues

mentioned therein above needs to be addressed

without any delay to avoid any litigation and payment

of differential duty, interest, penalty and redemption

fine in lieu confiscation

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Most of time it is observed that, Custom House Agent

(CHA) / Custom Broker signs on behalf of the importer

/ exporter with / without the authorization of importer

/ exporter and documents as mentioned above is

either not available or available in the scattered form

which will hamper the audit process and compliance

A. Central Excise

It is observed that returns filed under Central Excise

Law are hardly reconciled with Financial Accounts,

Costing Records, MIS and ERP Systems.

Some of the key areas needreconciliation otherwise

of issues may arise:

• Production

• Clearance vis-à-vis sales

• Stock

• Cenvat entitlement vis-à-vis availment

• Cenvat Utilization

• Cenvat Balance

• Duty payments

• Removal of inputs as such

• Removal of capital goods vis-à-vis Gross

block

• ER-4 / 5 / 6 / 7 and quantitative details and

disclosures to the notes to the Accounts,

Cost Audit Report & Other Reports

submitted to Other Statutory Authorities.

Similarly, following areas need constant review:

• Valuation of goods received from & sent to

related party

• Valuation of goods used for captive

consumption or to related party, revision

mechanism and reconciling with Cost

Records

• Stock transfer to & from units enjoying area

based exemption

• Applicability of exemption notifications &

impact thereof on Cenvat under Rule 6 of

Cenvat Credit Rules, 2004

• Clearance under End Used based

exemption notifications

• Import / procurement under IGCRD

It has been also observed lot of unnoticed

irregularities like:

v Export Promotion Capital Goods Scheme -

Unfulfilled Export Obligation

• Installation Certificate and yearly report

mandatory requirement

• Block wise export obligation to be fulfilled

along with average export obligation.

• On shortfall, demand of duty, interest and

penalty.

• Year wise export performance vis-à-vis

export obligation get unnoticed and

unreported and therefore liability is not

provided

v Export Promotion Scheme Like Focus Market

Scheme, Focus Product Scheme, Market Linked

Focus Product Scheme, Served From India

Scheme, VisheshKrishi And Gram UpayYojana :

• Entitlement vis-à-vis application and

revenue recognition thereof

v Advance Authorization For Physical Exports And

Deemed Exports

• Adhoc Norms and ratification thereof, vis-

à-vis actuals

• Quantity imported vis-à-vis quantity

exported in a year / Excess imports or short

exports and treatment in the books of

accounts.

• Violation of actual user condition

• Short consumption vis-à-vis SION and

treatment thereof in the books of accounts.

• Process of redemption and monitoring of

open authorizations / licenses.

v Duty Free Import Authorization

• Pre-export - same as Advance

Authorization.

• Post export - obtaining duty free scrip and

realization thereof, vis-à-vis accounting

treatment.

v EOU :

• Conditions of notification for duty free import

/ indigenous procurement

• Domestic Tariff Area Sale entitlement

• Wastage Norms

• Installation of capital goods

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• Non moving stock - more than 3 years

• Subcontracting and fulfillments of its

condition

• NFE

• Separate books of accounts including bank

accounts vis-a-vis report in form 3CD for

calculation of exempted profit

• Cenvat

• ER-2 Returns reconciliation with books of

account

v SEZ :

• Authorized operations and procurement of

goods and services

• Returnable goods

• Disposal to Domestic Tariff Area and rate

of duties thereof

• Service tax exemption vis-à-vis Exemption

by way of refund

v GENERAL (FOR INTERNAL AUDIT AND

CONTROL) :

• Export documentation, pre and post export

formality.

• Proof of Export

• Bank Realization Certificate

• Recognition Status

B. Service Tax

Though service tax has been introduced w.e.f. 1994,

starting only with 4 services but now, almost included

all activities other than goods and immovable property.

More so, provisions of service tax were so dynamic

that every year there were drastic changes and

therefore perhaps, Govt. of India realized this aspect

and provided golden opportunity to be statutory

compliant by announcing "Service Tax Voluntary

Compliance Encouragement Scheme 2013".

It is important to avail the benefit from this scheme

and take the following steps:

1. Get all transactions scrutinized so as to ascertain

correct service tax liability as a service provider

and recipient of service where liability to pay

service tax is on recipient of the service under

reverse charge mechanism,

2. Scrutinize all the correspondence with Service

Tax / Central Excise Department to ensure

eligibility criteria.

3. Analyze all the SHOW CAUSE NOTICE received

by such persons and ORDER - IN - ORIGINAL

received by such person.

4. Arrange for the funds to the extent of 50% of the

service tax liability stated in the declaration and

pay the same before 31.12.2013 balance 50%

to be paid on or before 30.06.2014. Otherwise it

needs to be paid along with interest from

01.07.2014 till the date of payment. Needless to

say, all payments to be made on or before

31.12.2014.

5. Submit the true declaration in the form VCES 1

along with detailed calculation in the form Part B

of ST 3 return on or before 31.12.2013.

6. Obtain the acknowledgement in the form VCES

2 on submission of declaration

7. Obtain discharge certificate from designated

authority only after 100% payment of service tax

liability and interest if applicable, i.e. if paid after

01.07.2014 but prior to 31.12.2014.

8. Avail cenvat credit on service tax liability if it is

covered under definition of input services in case

of service tax payment under reverse charge

mechanism.

9. Issue subsidiary invoices under Rule 4 A for the

payment of service tax on service recipient if

possible, to minimize the loss.

It is important to note that, in the Era of Negative List

of Services, all activities other than Negative List and

goods & services, almost all activities are covered and

hence it is mandatory to have built systems as well

as periodical internal controls and checks.

There is a need to analyze the transaction with respect

to:

• Purchase

• Sales

• Expenses

• Income

• Capital Expenditure and also analyze all

expenditures and income from Source -

Invoice / Debit Notes, Service Provider,

Nature of Contract, Account Head

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Moreover, it is necessary to take the following actions:

• Creation of Matrix - Service Provider, Nature of

Expense and A/c Head

• Creation of New accounting codes

• Standard Accounting Entries

• Inter Group / Inter Unit Transaction Analysis

• Identification of Transactions between Taxable

Territory and Non Taxable Territory

• Analysis of Transactions for Import of services

and taxability in view of Place of Provision of

Service Rules, 2012

• Analysis of Transactions for Export of Service

and taxability in view of Rule 6A of Service Tax

Rules, 1994

• Analysis of Ageing of Service Creditors and

entitlement of Cenvat Credit thereto

• Aging Analysis of Service Debtors and decision

of credit notes and adjustment of the service tax

payment

• Rebate of Service and Linkage with Input

Services / Inputs]

It should be ongoing process and system to :

• Review of the Trial Balance and identification of

the Accounts for further review and analysis of

each transactions reflecting in Books of Accounts

• Review of Contracts with various Service

Providers including job-workers, WCT,

transportation, etc

• Review of each of the identified Accounts and

the transactions there under

• Review of the mechanism for availment of

Service Tax Credit

• Impart Continuous Training to the Accounts team

and Indirect Tax team for implementation of the

new system in the New Era of Negative List of

Services

C. VAT / CST

Following activities needs to be ensured:

a. Downloading Purchase data from system of the

month from ERP

b. Checking of each Purchase Invoice for:

i. Contents of all the particulars in the Invoice

as per section 86 of the MVAT Act.

ii. Amount of Tax and base value matching

with the entries in the ERP.

iii. Checking the item for eligibility of Set-off.

iv. Categorizing each entry under respective

Act i.e. VAT or CST else Import / Service

entry.

v. Categorizing the various VAT purchases

rate wise.

vi. Checking the item for eligibility of Set-off

subject to Rule 53 and 54 of MVAT Rules

and posting the comments along with

remarks against each entry.

vii. Segregating all the Import purchases and

service entry into a separate Sheet.

viii. Reporting all the discrepancies including

missing invoices to ensure that

discrepancies are resolved till the time of

finalization of data.

ix. Checking of receipt of Purchase return data

and cross checking it with ERP.

x. Procurement of fixed asset and entitlement

of set off.

c. Checking of Branch transfer directly received

from Branches and reconciles the same with

system and also to keep the track of F-Forms

and Road permits.

d. Cross checking the sales data with self-

downloaded details and with invoices to ensure

proper charging of VAT and CST.

e. Cross checking the Output tax amount with

corresponding GL in ERP.

f. Cross checking of disposal of fixed assets, scrap,

etc. and chargeability of VAT.

g. Cross tallying the VAT amount in the VAT report

prepared as stated above with the Tax amount

in the corresponding GL in the ERP.

h. Posting of all the purchases GL wise in the Set

off file "purchase data" sheet.

i. Segregating RM and CG in two different sheets

in the set off file.

j. Calculating reduction in Set off.

k. Preparing a draft return using formulas on the

basis of Working.

l. Using this draft return to fill in the Excel utility of

VAT return.

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m. Consolidation of all locations within the State.

n. Checking of inter-state transactions with Sales

data and reconciling with the system and keeping

the track of receipt of E1 & E2 transaction and

C-Form as the case may be.

o. Keeping the track of Form - H for export of goods

p. Ensuring the system and sorting out the mis-

match of the supplier's data and ensuring

payment of sales tax amount by the supplier.

q. Checking of valuation and contractual liability

w.r.t. works contract under Composition Scheme

or otherwise.

r. Ensuring the deductions and payments of VAT

TDS, in case of Works contract.

s. Payment before the due date.

D. Local Body Tax (LBT)

Companies will have to prepare master list linked with

item code and tariff code and thereafter put the rates.

Similarly, they will have to bifurcate purchases outside

state, within the state and further bifurcate within limits

of Municipal Corporations and from outside limits of

Municipal Corporation and thereafter comply with LBT

payment and Statutory compliances thereof.

Moreover, all types of transactions needs to be

tracked w.r.t. LBT Rules and accordingly liability of

LBT to be worked out.

Company needs to ensure eligibility of the exemption

and maintenance of records to evidence the

entitlement of exemptions in case of:

• Goods imported belong to Government or are

imported on behalf of Government and are

imported for public purpose and are not used or

intended to be used for purpose of earning profit.

• Goods sent on job work and goods re-imported

without effecting any change in the condition or

appearance and ownership of the goods.

However, LBT will be charged on processing or

transfer charges or value addition, provided

goods are re-imported within 6 months.

• Job work within 6 months without changing the

ownership subject to value of such goods are

shown and paying of appropriate deposit as fixed

by the Commissioner.

• Grinding, dying, bleaching, painting, printing,

finishing, stentering, embroidering, doubling,

twisting, metalizing, electroplating, building &

mounting bodies of chassis over vehicle or other

process as approved by the Commissioner will

only be considered as job work . And decision of

the Commissioner will be final.

• Rejection of goods sent within 6 months.

• Exporting the goods outside India.

There will be half-yearly and yearly returns followed

by assessments and Audits and hence considering

the penalty amount, due care is necessary to avoid

penalties and litigations.

E. Income Tax

Followings aspects have to be kept in consideration:

a. Identification of nature of contract of service

providers & employees and deduction of TDS in

accordance with Chapter XVII of Income Tax Act

1961 and correctly filing online returns on time

accurately.

b. Deduction of TCS in case of disposal of waste

and scrap and timely payment thereof and

correctly filing online returns on time accurately.

c. Ensuring no payment in cash more than Rs.

20000 from any person.

d. Accounting penalties, penal interest separately

and also disallowable expenditure separately.

e. Reconciling with TDS deducted by customers /

clients with online system and follow up for

discrepancy if any.

f. Maintenance of separate accounts where

deductions based on investments like 80 IA, 80

IB, Section 10A, 10AA, 10B.

g. Determination of transfer price and preparation

of database for justification and selection of

correct method of determination of arms' length

transaction value for each domestic as well as

international transaction.

h. Payment of TDS / withholding tax for international

transactions and treatment under Double

Taxation Avoidance Agreement (DTAA) with

different countries.

i. Correct disclosures in filing the returns and

claiming the deductions.

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CENTRAL EXCISEv Cenvat Credit on outward freight is allowed:

As per the purchase order, the place of delivery

is the customer's works and the freight charges

was also included - Denial of CENVAT credit on

the ground that the insurance policy has not

mentioned in particular transportation to a buyer

is not justified as insurance is only open and

general in nature - No reason to deny CENVAT

Credit on GTA service. [2013-TIOL-1089-

CESTAT-MAD]

v Central Excise Valuation: Ground rent

collected from buyers for delayed payment -

Ground rent is nothing but interest on receivables

which is not includable in the assessable value

in view of the Apex Court judgement in case of

M/s MRF Ltd - No merit in revenue's appeal.

[2013-TIOL-1088-CESTAT-DEL]

v Valuation: Respondents importing consignment

of medical equipments from M/s Sysmex

Corporation, Japan in which the importer had

shares. Department initiating proceedings on the

premise that the supplier and respondents are

related persons and the relationship has

influenced the transaction value. Lower authority

enhancing the declared value by 50% which

order was set aside by the Commissioner (A). It

is Held that undisputedly both supplier and

respondents are related persons, however,

department could not produce any evidence that

the transaction value has been influenced by the

relationship and there is also no cogent

reasoning for enhancement of value which

apparently has been enhanced in an arbitrary

manner - O-in-A upheld and Revenue appeal

rejected. [2013-TIOL-1087-CESTAT-MUM]

v Interest on pre-deposit is payable in case of

delayed refund of pre-deposit beyond the period

of 3 months from the date of final order passed

by the Tribunal. Revenue is at liberty to recover

from the concerned officers. [2013 (293) E.L.T.

385 (Tri-Mumbai)]

v Cenvat Credit on input Service covered under

inclusive part: Where a particular activity is

expressly mentioned in the inclusion part of

definition, one need not to bother to examine

whether it satisfied ingredients of main part of

definition & assessee can avail the cenvat credit

for the same. [2013 (293)E.L.T.400 (Tri- Bang.)]

v Cenvat Credit admissible on the basis of

invoice on which serial number is

handwritten: There is no dispute that inputs

were duty paid and duly received by the appellant

and used in the manufacture of excisable goods.

Discrepancy if any could have been verified from

the suppliers end by the jurisdictional Central

Excise officers. Appellant has got such certificate

from the supplier of the inputs with a certification

of Jurisdictional Superintendent confirming that

the invoices stated in letter of supplier are

checked from the records. Substantial benefit

cannot be denied to the assessee on the basis

of procedural irregularity when under rule 11

there is no such obligation of printed serial

number on the invoices. [2013(293) ELT 44 (Tri.

Ahmd)]

v Clarification in respect of Exports rebate on

samples supplied free to overseas buyer:

Exporters plea that exporter rightfully entitled and

eligible for rebate of duty paid on goods as there

was no requirement of realization of foreign

exchange. Moreover though there was no

commercial value involved in the free samples,

they were capable of fetching market value of

Approx 26 lacs. However from the records it was

clear that exporter exported free samples under

rebate of excise duty whereas shipping bills were

having no commercial value and no foreign

exchange was involved. Keeping in view the fact

that rebate is an export oriented scheme to

neutralize the effect of domestic duties on

3 3


exported goods to make them competitive in

international market, exporter was held not to

be eligible for rebate of duty. [2013(293) ELT

137 (G.O.I)]

v Limitation for appeal: Condonation of delay of

8 years, appeal against dismissal of appeal by

lower appellate authority for non-compliance with

its direction for pre-deposit. No explanation given

as to what steps were taken within period of 8

years for complying with that direction. Reasons

that there was litigation between assessee and

their bank and fire, both events are found much

before directions of pre-deposit. Hence no

preservity or jurisdictional error or substantial

question of law found to arise, against dismissal

of appeal by lower appellate authority. Delay not

condoned and appeal rejected. [2013(293) ELT

190 (BOM HC)]

v In absence of intention to evade payment of

duty penalty as per Rule 15(2) of Cenvat

Credit Rules, read with Section 11AC not

imposable: Amount equal to duty on the

transaction value in respect of clearance of

scrapped goods cleared on 04.02.2008 and

05.02.2008 was payable in terms of Rule 3(5A)

of Cenvat Credit Rules, 2004 by 5th of next month

i.e. By 5th March 2008 and as such just because

this amount was not paid immediately on

clearance, it would not be correct to say that

appellant had intention to evade payment of duty,

when there is no dispute that the duty was paid

on 07.02.2005 i.e much before the due date for

the payment of duty. Imposition of penalty not

sustainable. [2013(293) ELT 266 (Tri. Del.)]

v Clandestine removal: Allegation of clandestine

removal cannot be sustained on the basis of

documents recovered from third person without

corroboration from independent source,

impugned order set aside. [2013(293) ELT 234

(Tri. Del.)]

v Cross examination of witness: availment

credit only on Invoices without receipt of goods,

owner of vehicle in which impugned consignment

were claimed to be transported and whose

statement had been obtained by Department. His

cross examination should be allowed. Use of auto

rickshaws for transport is immaterial, it may

amount to violation of Motor Vehicles Act/Rules

but could not lead to conclusion that impugned

goods could not have been transported.

[2013(293) ELT 314 (Tri. Del.)]

v Different stand for different assessee not

permissible except when change in law or

Supreme Courts decision: Different stand for

different assessee not justified in respect of same

issue. Revenue cannot pick and choose between

assessee of same nature to file appeal in respect

of very same issue. There must be some

consistency, if issue decided in favor of any party

had attained finality, affected party in that case

is justified only when there is change of law or

any other binding decision of superior forum

warranting such change. On facts, CESTAT

having considered the issue and given findings

in favor of assessee in one case, which was not

disputed by revenue and decision having become

final / conclusive, revenue was not justified in

contesting very same issue in appeal before High

Court in respect of another assessee. Also

Commissioner as original authority having taken

decision in favor of Revenue, as Appellate

Authority cannot take different view in favor of

assessee in another similar case. [2013(293)

ELT 10 (Mad HC)]

v Delay in filing appeal due to mistake of

Counsel condonable: While deciding

condonation of delay lenient view ought to be

taken as appellant does not gain anything by not

filing the appeal. It was more so as delay was

due to the mistake of counsel who has also filed

his personal affidavit. Delay condoned and

appeal allowed. [2013(293) ELT 24 (All HC)]

CUSTOMSv Valuation of Imported Ball Bearings: highly

prone to undervaluation and invoicing at prices

below cost price. Guidelines for heir valuation

issued by Commissioner of Customs (Imports)

Mumbai vide letter dated 08.09.2005 taking into

account average cost of material, wastage,

manufacturing cost & other charges etc after

extensive studies, price observed in trade as well

as other sources. Held- Guidelines have legal

3 4


bearing on assessement of ball bearing.

[2013(293) ELT 314 (Tri. Del.)]

v Customs - Valuation: The Assistant

Commissioner enhanced the value without

assigning any reason. It is well settled law that

the declared transaction value can be rejected

only if it does not satisfy the criteria as prescribed

for the same in proviso to Rule 3(2) of the

Customs Valuation Rules 2007 or that the proper

officer after following, the procedure prescribed

in Rule 12 of the valuation Rule had come to

conclusion that there are reasons to doubt the

correctness of the declared transaction value.

Bill of entry which is relied upon by the

department for rejecting the declared value and

enhancing the same is in respect of goods

classifiable under a different heading. No infirmity

in the order of the Commissioner (Appeals)

dropping the demand. [2013-TIOL-1021-

CESTAT-DEL]

SERVICE TAXv Permanent transfer of intellectual property

right does not amount to rendering of

service: Appellant getting trade secret from an

ex-employee of competitor firm, competitor firm

filing suit in US Court, appellant pays for use of

trade secret and reaches an out of court

settlement as per which the appellant has

become a co-owner of the intellectual property.

Since the transfer is permanent the transaction

does not come under the purview of Section 65

(55b) of the FA, 1994 so as to be taxed under

the head of Intellectual Property Service. ST

demand made on reverse charge basis set aside

and appeal allowed. [2013-TIOL-1092-CESTAT-

MUM]

v Service Tax Refund of service consumed in

SEZ: Substituted provisions of clause/sub-

paragraph 'C' of Notification No. 15/2009 cannot

be inferred to have imposed any disability on the

recipient of services consumed wholly within the

SEZ from seeking refund of service tax remitted

on such transactions, by the providers of such

services. Therefore rejection of refund in relation

to Architect, Interior Decorators and Consulting

Engineer services on the ground that the same

has been consumed wholly in the SEZ is

unsustainable. [2013-TIOL-1091-CESTAT-

AHM]

v Tax on Interest of late membership fee:

Demand of service tax on the amounts received

towards room rent, interest for delayed payment

of membership fee and income from

securitization. It is possible that the members also

paid room rentals for overstaying and booking

for their guests etc. Revenue is also deprived of

tax on delayed payment of membership fees,

which was liable to be paid at the time of entry -

Hence, it is reasonable to pay tax on interest.

No prima facie case made out against inclusion

of amount received towards room rent and

interest - Pre-deposit of Rs 2 crores ordered.

[2013-TIOL-1090-CESTAT-MAD]

v Refund of input service used for providing

output service not deniable: Refund of input

service used for providing output service can not

be denied merely because the assessee has not

attempted to explain how exactly the said service

are used in providing output taxable service which

has been exported, except in the way of resorting

to generalities and vague expressions of the

justification. [2013 (293) E.L.T. 398 (Tri- Bang.)]

v Incentive received, Bad Debts & Discount are

not includible in Valuation of Advertising

Service – Incentive for appreciating performance

not liable to be taxed. In case of bad debts &

discount as no consideration is received, same

can not be included in valuation of services.

[2013(31)STR 77(Tri.-Del.)]

v Evasion of tax not involved when services

availed by two units and credit availed by

one unit.- Cenvat credit of Services utilized by

both the units of the appellant. But complete

credit was taken by Unit-I. In audit objection was

raised and auditors recorded in their report that

Unit-I was liable to reverse the credit in question

and pay interest thereon. Then after

objectionable credit was reversed by Unit-I.

Intention to evade the duty by Unit-I not proven

as both units owned by the assessee and credit

reversed undisputedly available to Unit-II. Lower

authority recorded finding that irregular utilization

3 5


of credit is an unintended error, not challenged

by the revenue. Hence no interest imposable

being no evasion of tax. [2013(31)STR 47(Tri.-

Bang.)]

v Illiterate person not liable to penalty when

tax not paid under bona fide belief.- Assessee

is illiterate widow. As soon as the respondent was

informed by department by way of formal letter

that she is required to pay the service tax, she

promptly took registration and in the application

for registration she has indicated that she had

started business from 6-7-2000 i.e. correct date.

It was held that assessee was always keen to

obey the law and on correct advise obeyed the

same. Omission unintentional and reasonable

cause established as required under Section 80

of Finance Act, 1994. Penalty not imposable.

[2013(31)STR 89(Tri.-Ahmd.)]

v Penalty not imposable when credit taken as

per practice and precedent even though not

eligible.- During relevant period there were

decisions which indicated that service tax paid

on commission agent is eligible for availment of

Cenvat credit. Based on that bona fide belief held

by the assessee can not be considered as

erroneous to invoke extended period of limitation

for imposition of equal amount of penalty.

[2013(31)STR 81(Tri.-Ahmd.)]

v Penalty not imposable when service tax paid

before issue of SCN.- Service Tax registration

obtained but service tax not paid for the years

2005-06 & 2006-07. However entire amount of

Service Tax along with interest was paid the

before issuance of the SCN. Services were

provided to central excise assessee. The service

tax paid by him was available as Cenvat Credit

to customers and therefore payment of Service

Tax is revenue neutral and in such case there

was no deliberate intention to evade the Service

Tax. Tribunal rightly invoked the discretion under

Section 80 for not imposing penalty.

[2013(31)STR 89(Guj.)]

v Small Service Provider- value of exempted

service not to be computed in calculation of

annual turnover.- Assessee was providing

catering service. Benefit of Notification 4/2007-

S.T. denied as turnover exceeding value of Rs.

8 Lakh during relevant period. As per Notification

No. 1/2006-S.T., value of Services Exempted not

to taken into account for calculating aggregate

value. Pre-deposit waived off. [2013(31)STR

12(Tri-Del.)]

v Cenvat credit availed by manufacturing unit

prior to Input Service Distributor (ISD)

registration of Head Office - Admissible.-

Head office of the appellant has distributed

Service Tax credit on basis of invoices dated 20-

9-2005. Appellant availed said Cenvat credit on

4-10-2005. The head office of the appellant has

obtained the ISC registration on 6-12-2005.

Credit admissible following the judgements in

Jindal Photo Ltd. [2009(14)S.T.R.812(Tribunal)

and Samita Conductors Ltd. [2012(278) ELT492

(Tri.-Ahmd.)]. [2013 (31) STR 62(Tri.- Ahmd)]

v No fee for filling Appeal relating to refund/

rebate: In view of clear provision in Section 86(6)

we have no doubt in holding that no fees is

payable on appeals relating to refund/rebate of

Service Tax. Since provisions under Section

129A (6) of Customs Act and 358 (6) of Central

Excise Act, are identical, no fees is payable in

respect of appeals pertaining to refund of excise

duty or Customs duty - Larger Bench of CESTAT

[AIT-2013-124-CESTAT]

EOU/SEZv No duty demand of duty free Capital goods

re-exported due to non operation of EOU: In

case of non commencement of production of

100% EOU unit which had no control over

circumstances forcing closure of unit, demand

of duty & penalty for non-fulfillment of export

obligation & extension of warehousing period for

re-export of capital goods can not be made if no

contravention has been made with respect to

procedure for clearance of warehoused goods

u/s 69 of Customs Act, 1962. [2013 (293) E.L.T.

387 (Tri.- Mumbai)]

v Duty to be paid on depreciated value of

capital goods: Capital goods imported availing

full exemption under Notification No.53/97-Cus

by 100% EOU unit. When goods subsequently

cleared from 100% EOU to DTA after obtaining

3 6


requisit approval, duty liability to be discharged

on depreciated value of goods. Since appellant

available exemption not only on Basic Duty of

Customs, but also in additional duty of customs

at the time of importation, duty liability on

depreciated value for additional Customs Duty

@13% and special duty @ 5% to be paid along

with BCD. [2013(293) ELT 94 (Tri. Mumbai)]

FOREIGN TRADE POLICYv Writ jurisdiction not invokable when

petitioner failed to avail alternate remedy

within statutory period: Against the orders of

Foreign Development Officers, remedy of appeal

available under Section 9(5) read with Section

15 of Foreign Trade (Development and

Regulation) Act, 1992. Exporter failing to avail of

that statutory remedy within prescribed period,

writ petition was not maintainable. It was

circumvention of statutory provision, which writ

jurisdiction cannot permit. [2013(293) ELT 481

(Bom HC)]

INCOME TAXv No penalty for non-deposition of TDS within

time: Non-deposition of TDS in time is technical

breach of provision of Act and penalty u/s 271

(1) (c) referring to concealment /wrong furnishing

of income can not be levied. [2013-TIOL-623-

ITAT-AHM]

v Assembly involving few processes eligible

for sec 80IB deduction: The claim of the

assessee u/s 80IB can not be denied merely

because the profit was a result of assembling,

involving few operations or processes, simple in

nature with low power consumption. [2013-TIOL-

621-ITAT-MUM]

v Assessment can be re-opened on the

objection of audit party: An assessment which

is completed u/s 143(3) can be reopened on the

basis of objection raised by audit party particularly

when no new fact on material has come to the

knowledge of AO. [2013-TIOL-514-ITAT-MUM]

v Expenditure on upgradation of technology

is revenue expenditure: Expenditure incurred

on upgradation of technology to boost the

business is revenue in nature, and it cannot be

said that any new asset of enduring nature has

come into existence. [2013-TIOL-495-ITAT-

MAD]

v Addition in income can be made in case

evidence of source of providing loan is not

provided: The addition on account of

unexplained credit u/s. 68 is justified when none

of the creditors were having any evidence of

source of their earning to advance any loan to

the assessee and they have failed to explain why

cash of the equivalent amounts of loan were

deposited in their bank account prior to issue of

cheques in favour of the assessee. [2013-TIOL-

488-ITAT-AGRA]

v Interest on lease rent deposit to be to actual

rent received for calculating annual letting

value: Interest received on lease rent deposit is

to be added to the actual rent agreed to be paid

between the parties for the purpose of

determining the annual letting value of the

property u/s 23. Notional interest on advance

received can be added to the actual rent paid,

but the annual rental value has to be determined

independently. [2013-TIOL-454-HC-KAR-IT]

v Penalty by RBI is allowable expenditure:

Penalty levied by the RBI for compounding the

contravention is allowable expenditure. The

expenditure for raising capital is revenue in

nature and deductible u/s. 37(1). Assessee is

eligible for deduction u/s 10AA of the above

mentioned disallowances as the same stand

expensed from the profits of a 100% export

oriented unit located at SEEPZ-SEZ, eligible for

deduction u/s 10AA. - [2013-TIOL-441-ITAT-

MUM]

v Two adjoining flats can be treated as single

house for Sec 54 benefit: The expression 'a

residential house' mentioned in Sec 54 effectively

means one flat. When assessee purchases two

adjoining flats from two different sellers under

two separate sale deeds, the same is to be

treated as a single house for the purpose of Sec

54 benefits. - [2013-TIOL-469-HC-AP-IT]

3 7


v Finance Minister of J & K Abdul Hamid Rather appointed as Chairman of GST

Empowered Committee of State Finance Ministers

v The Union Minister of Textiles, Dr. K.S. Rao, supports exporters' demand for raising

interest subvention to 5%.

v Ministry of Finance Constitutes a Forum Chaired by Dr. Parthasarathi Shome, Adviser

to the Finance Minister for Exchange of Views between Industry Groups and Government

on Tax Related Issues or Tax Related Disputes; Forum to Meet Every Wednesday;

First Meeting of the Forum on August 7, 2013

v The Government has approved Free Trade LPG(FTL) Scheme for selling 5 kg LPG

cylinders through Company Owned Retail Outlets (COCO) PSU Oil Marketing

Companies (OMCs). This will be helpful to those who don't have permanent residence

and have to travel from city to city.

v Government of India signed an agreement with Asian Development Bank (ADB) for a

USD 60 million loan for improving urban services. Then municipal and project

management capacity in several towns in North Karnataka.

v Government promulgates Ordinance to vest powers in SEBI to regulate pooling of

funds above Rs 100 Cr. With The amendments in force now, SEBI would have powers

to regulate any pooling of funds under an investment contract involving a corpus of

Rs.100 Crore or more, attach assets in case of non-compliance.

v The total number of companies in the official Registry of The Ministry of Corporate

Affairs has crossed The 13 lakh mark. As on 31.05.2013, there were 13.21 lakh

companies in the Registry.

v Labour Minister releases revised online transfer claim form for EPFO.

v The Reserve Bank of India has imposed monetary penalty on 22 banks for violation of

its instructions, among other things, on Know Your Customer/Anti Money Laundering.

v The Union Cabinet has approved setting up a National University for Women in Uttar

Pradesh by The name of "The Indira Gandhi National University for Women". This will

be the first university of the country to be established exclusively for women.

v The Cabinet Committee on Economic Affairs has approved the disinvestment of 5

percent paid-up equity capital in the India Tourism Development Corporation (ITDC)

and 1.02 percent paid-up equity capital in the State Trading Corporation (STC),

3 8


essentially to make these Central Public Sector Enterprises (CPSEs) compliant to the

public shareholding norms under the Securities Contract (Regulation) Rules (SCRR).

v The Union Cabinet approved constitution of National Capital Region Transport

Corporation Limited (NCRTC) under the Companies Act, 1956 with initial seed capital

of Rs.100 crore as per Company Act, 1956 for designing, developing, implementing,

financing, operating and maintaining Regional Rapid Transit system (RRTS) in National

Capital Region (NCR) to provide comfortable and fast transit to NCR towns and meet

the high growth in transport demand.

v India's Trade Deficit further soars; Exports down by 4.5% in June.

v Sharma conveys India's Concern over restrictive provisions of proposed US Immigration

Legislation.

v The Index of mineral production of mining and quarrying sector in May 2013 was higher

by 1.6% compared to that of the preceding month. The mineral sector has shown a

negative growth of 5.7% during May 2013 as compared to that of the corresponding

month of previous year.

v Sibal hands over Rs 961 Cr investment subsidy to Electronics system manufacturing

hub.

v Tardy reform process may pull down India's growth to 5.8% in current fiscal: ADB.

Justice Sathasivam takes over as New Chief Justice of India.

v CBEC appoints Ram Tirath as DG (Safeguard).

3 9


i Shillong Customs seizes 144 kg of Pseudoephedrine tablets worth Rs 2.9 Cr + 85 kg of

Pangolin Scales worth Rs 51 lakh.

i Kolkata Airport Customs seizes 10043 live green coloured turtles from two pax.

i High Profile Commissioner of Customs Excise & Service Tax Department was forced

to opt for VRS after being allegedly found involved in Big Deals according to sources.

i Hyderabad Airport Customs seizes gold bars worth Rs 25 lakhs from pax coming from

Bangkok.

i Ahmedabad DRI detects short levy of more than Rs 100 Cr in import of Urea.

i Mangalore DRI seizes 2 kg gold from pax coming from Dubai.

i Bihar Economic Offences Wing raid premises of two officials and seize cash and property

worth Rs 4.5 Crore.

i Mumbai DRI seizes 133 MT of Red Sanders worth Rs 55 Cr from 8 containers shipped

from Nhava Sheva to Dubai; Containers declared to contain Tiles & Onion.

i Skoda India fined Rs. 97 crore for duty evasion.

i If Pakistan grants MFN status to India, present Check Post at Amritsar cannot handle

trade traffic; New ICDs required: Customs

4 0


Starting the day with a conversation between a wife and a

husband who happens to be a software engineer.

Husband: (Returning late from work) “Good Evening Dear,

I’m now logged in.”

Wife: Have you brought the grocery?

Husband: Bad command or file name.

Wife: But I told you in the morning

Husband: Erroneous syntax. Abort?

Wife: What about my new TV?

Husband: Variable not found…

Wife: At least, give me your Credit Card, I want to do some shopping.

Husband: Sharing Violation. Access denied…

Wife: Do you love me or do you only love computers or are you just being

funny?

Husband: Too many parameters…

Wife: It was a great mistake that I married an idiot like you.

Husband: Data type mismatch.

Wife: You are useless.

Husband: It’s by Default.

Wife: What about your Salary?

Husband: File in use… Try after some time.

Wife: What is my value in the family.

Husband: Unknown Virus.

i i i i i

Post Master in a post office told to a woman,”You have to put another stamp

on this letter as it is too heavy.

The woman replied, “How would an extra stamp make it lighter.”

August - 2013

BIZSOL PRIDE!!! …… EXPRESSIONS FROM OUR FOUNDER CUSTOMERS!!!!

August - 2013

Bizsol Journey

Foundation of the dream "Bizsol…." Mr. Vandan Potnis, Chief Editor of Dainik Gavkari along with Mr. Ashok Nawal, Mr. R Venkitachalam and Mr. Hemant Sonar, cutting the ribbon on Opening Ceremony of our first office at Nasik, Maharashtra on 14th January 1997.

Shifted to own office in Nasik on 15th August 2001. Mr. Ashok Nawal along with Mr. R. Venkitachalam.

Expansion of Pune office in the same building on 15th September 2008.

Association established at Pune on 15th September1998 - Mr. Ashok Nawal and Mr. Manoj Behede seen on this occasion.

Milestone achievement..!! Corporate Office at Pune on 15th September 2005 - Mr. Manoj Behede performing Puja on the occasion.

"Bhoomi Pujan" of "Bizsol House" at Nasik on 23rd March 2012. Mr. Arun Sawant performing Puja on the occasion. Board of Directors along with other Bizsolites can be seen on the occasion.

August - 2013

Glimpses of Bizsolites Addressing Seminars / Training Program

Mr. R. Venkitachalam with participants of the training program on "Employee Engagement" at Haldia for Dhunseri Petrochemicals Limited.

Ms. Preeti Kulkarni addressing participants on Customs Act during seminar on arranged by Bizsolindia.

Mr. Ashok Nawal taking part in Panel Discussion on "Industrial Perspective - Inclusive Growth" along with, from L to R, Mr. Abhijeet Pawar, Managing Director, Sakal Papers Ltd., Mr. Anand Karandikar, Managing Director, Metric Consultancy and Mr. Tanveer Salulat.

Ms. Monica Joshi addressing participants during Annual Budget Seminar arranged by Bizsolindia.

L to R: Mr. PravinArote, Mr. Manoj Behede, Mr. Ashok Nawal and Mr. Manoj Malpani addressing queries during Seminar on Local Body Tax arranged by Bizsolindia.

Mr. Manoj Behede training VAT Department officials at the time of implementation of VAT in Maharashtra

August - 2013

Kiran SawaleNanda BardeAnita PatilHarshada PatilAbhishek Malpani

Glimpses with Eminent Personalities..

Mr. Ashok Nawal with Dr. A. P. J. Abdul Kalam, Former President of Republic of India.

Mr. Ashok Nawal with then CBEC Chairman Mr. S.K. Singhal

Mr. Ashok Nawal with Mr. Narendra Jadhav, Ex-Vice Chancellor of Pune University and Member of Planning Commission.

Mr. Ashok Nawal with Mr. G. K. Pillai then Commerce Secretary explaining difficulties faced by Exporters.

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