MAVT trade circular 17 T of 2010

To give effect to budget proposals a bill to amend the Maharashtra State Tax on Professions, Traders, Callings and Employment Act, 1975, Maharashtra Tax on Luxury Act, 1987 and the Maharashtra Value Added Tax Act, 2002 was introduced in the Legislature and has been passed by both the houses. 

The salient feature of the amendments are briefly incorporated in the Trade Circular 17 T of 2010 dated 17th May 2010. 

Click here for the text of the trade circular.     

Conditions of listing for issuers seeking listing on SME Exchange - Model SME Equity Listing Agreement

In recognition of the need for making finance available to small and medium enterprises, SEBI has decided to encourage promotion of dedicated exchanges and/or dedicated platforms of the exchanges for listing and trading of securities issued by Small and Medium Enterprises (“SME”). Consequently, SEBI amended SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (“SEBI (ICDR) Regulations”) by inserting a Chapter XA on “Issue of specified securities by small and medium enterprises”, through notification dated April 13, 2010. In continuation of the same and to facilitate listing of specified securities in the SME exchange, “Model Equity Listing Agreement” to be executed between the issuer and the Stock Exchange, to list/migrate the specified securities on SME Exchange, is specified through this circular.

The full text of “Model Equity Listing Agreement – for SME Exchange” is given at Annexure A of the circular. This agreement shall be executed for listing of specified securities issued or migrated on SME exchange, in terms of Chapter XA of the SEBI (ICDR) Regulations.

Click here for the text of the circular CIR/CFD/DIL/6/2010 dated May 17, 2010

FEMA - Current Account Transactions - Libralisation

In terms of Rule 4 of the Foreign Exchange Management (Current Account Transactions) Rules 2000, prior approval of the Ministry of Commerce and Industry, Government of India, is required for drawing foreign exchange for remittances under technical collaboration agreements where payment of royalty exceeds 5% on local sales and 8% on exports and lump-sum payment exceeds USD 2 million [item 8 of Schedule II to the Foreign Exchange Management (Current Account Transactions) Rules, 2000]. The Government of India has reviewed the extant policy with regard to liberalization of foreign technology agreement and it was decided to omit item number 8 of Schedule II to the Foreign Exchange Management (Current Account Transaction) Rules, 2000, and the entry relating thereto.

Accordingly, AD Category-I banks may permit drawal of foreign exchange by persons for payment of royalty and lump-sum payment under technical collaboration agreements without the approval of Ministry of Commerce and Industry, Government of India. 

 

Click here for the text of the A. P. (DIR Series) Circular No. 52 dated May 13, 2010.

CBDT notifies new income tax forms for AY 2010-11

In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (Fourth Amendment) Rules, 2010.

(2) They shall come into force on the 1st day of April, 2010.

2. In the Income-tax Rules, 1962, -

(a) in rule 12, –

(i) for the words and figures “Form No. ITR-1”, at both the places where they occur, the words and figures “Form SARAL-II (ITR- 1)”, shall be substituted;

(ii) in sub-rule (1), -

(a) for the figures “2009”, the figures “2010” shall be substituted;

(b) for clause (a), the following clause shall be substituted,

namely:-

“(a) in the case of a person being an individual where the total income includes income chargeable to income tax, under the head,-

(i) “Salaries” or income in the nature of family pension as defined in the Explanation to clause (iia) of section 57;or

(ii) “Income from house property”, where assessee does not own more than one house property and does not have any brought forward loss under the head; or

(iii) “Income from other sources”, except winnings from lottery or income from race horses,

be in Form SARAL-II (ITR-I) and be verified in the manner indicated therein;”

(iii) in sub-rule (5), for the figures “2008”, the figures “2009” shall be substituted;

(b) in Appendix-II, for Forms ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, ITR-7 and ITR-V, the attached forms shall be substituted.

 

Clarification on roadmap for Convergence with IFRS

MCA has issued a press release giving consolidated clarifications on the "roadmap to Converged IFRS" issued under previous two press releases.

Click here for the text of the press release - 4/2010 dated 4th May 2010. 

External Commercial Borrowings (ECB) policy

It has been decided to permit the IFCs (Infrastracture Finance companies i.e. NBFCs categaorised as IFCs) to avail of ECBs, including the outstanding ECBs, up to 50 per cent of their owned funds under the automatic route, subject to their compliance with the prudential guidelines already in place. ECBs by IFCs above 50 per cent of their owned funds would require the approval of the Reserve Bank and will, therefore, be considered under the approval route.

Click here for the text of the Circular No. 51 dated May 11, 2010.

Making Annual Reports of Listed Companies easily accessible

SEBI has advised all Stock Exchanges to make the Annual Reports for the financial year 2009-10 onwards, submitted to Stock Exchange as per Clause 31 of Equity Listing Agreement, available on their respective websites.

Click here for the text of the circular no. Cir/ CFD /DCR/5 /2010 dated May 7, 2010.

FDI in India - Transfer of Shares / Preference Shares / Convertible Debentures by way of Sale - Revised pricing guidelines

RBI has revised pricing guidelines for transfer of shares/debentures to/by NRI in Indian Companies.

Click here for the text of the A. P. (DIR Series) Circular No.49 dated May 4, 2010.

Clarification regarding availment of credit on input services

CBEC has clarified issues related to CENVAT credit availment on input services under following circumstances.

1. When payment is made through debit/credit entries in books of accounts for payments made to "Associated Enterprises"

2. When full payment of invoice is not made.

Click here for the text of the circular no. 122/03/2010 - ST   

SEBI (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2010

In exercise of the powers conferred by Section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2010 to amend the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.

Click here for the text of the notification dated 13th April 2010.