Wednesday, June 27, 2012

SEBI Board Meeting

SEBI Board Meeting


The SEBI Board met today in Mumbai and took the following decisions:

Platform for E-Voting by Shareholders of Listed Entities

In line with the budget proposal of Hon’ble Finance Minister, to make it mandatory for top listed companies to provide for electronic voting facilities, it has been decided to implement the said proposal by making electronic voting mandatory for all listed companies in respect of those businesses to be transacted through postal ballot. The same would be implemented in a phased manner. To begin with, it would be mandated for top 500 listed companies at BSE and NSE based on market capitalization. Listed companies may choose any one of the agency which is currently providing the e-voting platform.

Manner of dealing with Audit Reports filed by listed entities
In order to enhance the quality of financial reporting done by listed entities, it has been decided to put in place, a mechanism to process qualified annual audit reports filed by the listed entities with stock exchanges and Annual Audit Reports where accounting irregularities have been pointed out by Financial Reporting Review Board of the Institute of Chartered Accountants of India (ICAI-FRRB). It has been, inter-alia, decided that:
  • Deficiencies in the present process would be examined and rectified.
  • SEBI would create Qualified Audit Report review Committee (QARC) represented by ICAI, Stock Exchanges, etc. to guide SEBI in processing audit reports where auditors have given qualified audit reports.
  • Listed entities would be required to file annual audit reports to the stock exchanges alongwith the applicable Forms (Form A: 'Unqualified' / 'Matter of Emphasis Report'; Form B: 'Qualified' / 'Subject To' / 'Except For Audit Report').
  • After preliminary scrutiny and based on materiality, exchanges would refer these reports to SEBI/QARC.
  • Cases wherein the qualifications are significant and explanation given by Company is unsatisfactory would be referred to the ICAI-FRRB. If ICAI-FRRB opines that the qualification is justified, SEBI may mandate a restatement of the accounts of the entity and require the entity to inform the same to the shareholders by making the announcement to stock exchanges.

Amendment to certain provisions in SEBI (ICDR) Regulations relating to Infrastructure Sector
In order to harmonize the SEBI (ICDR) Regulations relating to Infrastructure Sector with the amended Securities Contracts (Regulation) Rules, 1957, it has been decided to carry out consequential amendments to SEBI (ICDR) Regulations pertaining to minimum public shareholding and minimum subscription requirements. It has also been decided to modify the minimum subscription requirements for companies coming out with IPOs to state that the minimum subscription shall not be less than 90% of the offer, subject to allotment of minimum 25% or 10%, as the case may be, of the securities offered to the public.

Review of Offer for Sale (OFS) through stock exchange mechanism


1. The Board has approved the following changes in the OFS mechanism through stock exchange:


i. Within the cooling off period of +12 weeks, the promoter(s)/promoter group entities can offer their shares only through OFS or Institutional Placement Programme (IPP) while maintaining a gap of 2 weeks between two successive OFS or IPP. This would also be applicable on promoters who have already offloaded their shares through OFS or IPP. Board also approved these changes in the SEBI (ICDR) Regulations for OFS through IPP route.
    ii. Modification / cancellation of bids shall not be allowed during the last 60 minutes from the close of bidding session instead of last 30 minutes.


    2. The Board also took note of the following changes in the OFS mechanism:

    a. Indicative price shall be displayed during the last 60 minutes of the close of bidding session irrespective of the book being built.


    b. The dissemination of floor price shall not be a part of the notice. If the seller intends to disclose the floor price, the price shall be disclosed after the close of business hours on (T-1) day (T day being the day of OFS).


    c. The minimum size of the offer shall be Rs.25 crore. However, the size of offer can be less than Rs.25 crore so as to achieve minimum public shareholding in a single tranche.


    d. The issuer shall have the option to upsize the offer subject to appropriate disclosure in the notice and advance pay-in of shares.



    e. Institutional investors shall have the option of applying with 100% upfront margin in cash or with an adhoc margin of certain lower percentage to be determined by the Exchanges. In the latter case the bids shall not be permitted to be modified.


    f. Additional time shall be provided to the custodians to confirm the institutional bids during post close trading hours subject to the condition that the bids and payments have been received before closure of the bidding process.

    Mumbai

    June 26, 2012                              

    Saturday, March 31, 2012

    Depreciation restricted to 15% on wind mills installed after 31-3-2012.

    Income-tax (Fourth Amendment Rules, 2012 – Depreciation restricted to 15% on wind mills installed after 31-3-2012

    Notification No. 15/2012 [F.No.149/21/2010-SO(TPL)] S.O.694(E), dated 30-3-2012

    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 ( 4th Amendment) Rules, 2012.

    (2) They shall come into force on the 1st day of April, 2012.

    2. In the Income-tax Rules, 1962, in the Table, in the New Appendix I, in Part-A relating to Tangible Assets, under the heading “III. Machinery and Plant”, in item (8), in sub-item (xiii), -

    (a) In clause (l), after the words, “which run on wind mills”, the words, figures and letters, “installed on or before 31st day of March, 2012”, shall be inserted ; and

    (b) In clause (m), after the words, “running on wind energy”, the words figures and letters, “installed on or before 31st day of March, 2012”, shall be inserted.

    Sd/-
    ( J. Saravanan )
    Under Secretary (TPL-III)

    Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section(ii), vide Notification number S.O.969(E), dated the 26th March, 1962 and last amended by Income-tax ( 3rd Amendment) Rules, 2012, vide Notification S.O. No. 626(E) dated the 28th March, 2012.



    Income Tax office to remain open on March 31, 2012

    New Income Tax Forms Notified

    GOVERNMENT OF INDIA
    MINISTRY OF FINANCE
    DEPARTMENT OF REVENUE
    [CENTRAL BOARD OF DIRECT TAXES]
    NOTIFICATION

    New Delhi, the 28th day of March, 2012   
    Income-tax
    S.O. 626 (E). - 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 (3rd Amendment) Rules, 2012.
    (2) They shall come into force on the 1st day of April, 2012.
    2. In the Income-tax Rules, 1962,-
    (A) in rule 12,–
    (i) in sub-rule (1),-
    (a) for the figures "2011", the figures "2012" shall be substituted;
    (b) after clause (a), the following proviso shall be inserted, namely:-
    " Provided that the provisions of this clause shall not apply to a person being an individual, who is a resident and has

    (i) assets (including financial interest in any entity) located outside India; or
    (ii) signing authority in any account located outside India.";
    (c) after clause (ca), the following proviso shall be inserted, namely:-
    "Provided that the provisions of this clause shall not apply to a person being an individual or Hindu undivided family, who is a resident and has
    (i) assets (including financial interest in any entity) located outside India; or
    (ii) signing authority in any account located outside India."
    (ii) in sub-rule(3), in the proviso, clause (a) shall be renumbered clause (aaa) and before clause (a), as so renumbered the following clauses shall be inserted, namely:-
    " (a) an individual or a Hindu undivided family, if his or its total income, or the total income in respect of which he is or it is assessable under the Act during the previous year, exceeds ten lakh rupees, shall furnish the return for the assessment year 2012-13 and subsequent assessment years in the manner specified in clause(ii) or clause(iii);
    (aa) an individual or a Hindu undivided family, being a resident, having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India and required to furnish the return in Form ITR-2 or ITR-3 or ITR-4, as the case may be, shall furnish the return for assessment year 2012-13 and subsequent assessment years in the manner specified in clause (ii) or clause (iii);"
    (iii) in sub-rule (5), for the figures "2010", the figures "2011" shall be substituted;
    (B) in Appendix-II, for "Forms SAHAJ (ITR-1), ITR-2, ITR-3, SUGAM (ITR-4S), ITR-4 and ITR-V", the "Forms SAHAJ (ITR-1), ITR-2, ITR-3, SUGAM (ITR-4S), ITR-4 and ITR-V" shall be substituted.
    _________________________________________
    [Notification No.14 /2012/ F.No.142/31/2011 -TPL]
    (Ashis Chandra Mohanty)
    Under Secretary to the Government of India
    Note.-
    The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number.S.O.969(E), dated the 26th March, 1962 and last amended by Income-tax ( 2nd Amendment) Rules, 2012 vide notification S.O. No 227(E) dated 6/2/2012.

    Friday, March 09, 2012

    Rahul Dravid's Retirement Speech

    Wednesday, March 07, 2012

    Liberalised Remittance Scheme for Resident Individuals


    RESERVE BANK OF INDIA
    Foreign Exchange Department
    Central Office
    Mumbai - 400 001
    _____________________________________________________
    RBI/2011-12/430                                                March 06, 2012
    A.P. (DIR Series) Circular No. 90

    To,
    All Category - I Authorised Dealer Banks

    Madam / Sir,

    Clarification - Liberalised Remittance Scheme for Resident Individuals

    1.Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to A. P. (DIR Series) Circular No. 64 dated February 4, 2004, as amended form time to time, A. P. (DIR Series) Circular No. 24 dated December 20, 2006, A.P. (DIR Series) Circular No. 9 dated September 26, 2007, A.P. (DIR Series) Circular No. 51 dated May 8, 2007 and A.P. (DIR Series) Circular No. 32 dated October 10, 2011 on the Liberalised Remittance Scheme for Resident Individuals (the Scheme).

    2. In this regard, it is clarified that:
    i. The facility is available to all resident individuals including minors. In case of remitter being a minor, the LRS declaration form should be countersigned by the minor’s natural guardian. Accordingly, the modified LRS application cum declaration form is enclosed;
    ii. Remittances under the facility can be consolidated in respect of family members subject to individual family members complying with the terms and conditions of the scheme; and
    iii. Remittances under the scheme can be used for purchasing objects of art subject to the provisions of other applicable laws such as the extant Foreign Trade Policy of the Government of India.

    3. All other terms and conditions mentioned in the afore-mentioned Circulars shall remain unchanged.

    4. AD - Category I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

    5. The directions contained in this Circular have been issued under sections 10 (4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.
    Yours faithfully,
    (Meena Hemchandra)

    Chief General Manager In-Charge

    Annex
    [Annex to A. P. (DIR Series) Circular No. 90
    dated March 06, 2012]

    Application cum Declaration for purchase of foreign exchange under the Liberalised Remittance Scheme of USD 200,000 for Resident individuals
    (To be completed by the applicant)

    I. Details of the applicant
    a. Name …………………………..
    b. Address…………………………
    c. Account No……………………..
    d. PAN No………………………….

    II. Details of the foreign exchange required
    1. Amount (Specify currency)………………………………
    2. Purpose ……………………………………………………

    III. Source of funds: ………………………………………….

    IV. Nature of instrument
    Draft………………………..
    Direct remittance…………

    V. Details of the remittance made under the Scheme in the financial year (April- March) 20__ – 20__
    Date :………………
    Amount :………….

    VI. Details of the Beneficiary
    1. Name ……………………..
    2. Address ……………………
    3. Country ……………………
    4*. Name and address of the bank……………………….
    5*. Account No……………………………………………..
    (* Required only when the remittance is to be directly credited to the bank account of the beneficiary)

    This is to authorize you to debit my account and effect the foreign exchange remittance/ issue a draft as detailed above (strike out whichever is not applicable).

    Declaration

    I, ………………. …………(Name), hereby declare that the total amount of foreign exchange purchased from or remitted through, all sources in India during the financial year as per item No. V of the Application, including utilisation of the said limit on account of loan extended or gift made in rupees credited to NRO account of non-resident close relative(s), is within the limit of USD 200,000/- (US Dollar Two hundred thousand only), which is the limit prescribed by the Reserve Bank for the purpose and certify that the source of funds for making the said remittance belongs to me and will not be used for prohibited purposes.

    Signature of the applicant

    (Name)

    Signature of the natural guardian of the applicant @
    (Name)

    @ Where the applicant is minor, the application should be countersigned by minor’s natural guardian 

    Certificate by the Authorised Dealer

    This is to certify that the remittance is not being made by/ to ineligible entities and that the remittance is in conformity with the instructions issued by the Reserve Bank from time to time under the Scheme.

    Name and designation of the authorised official:

    Place:

    Signature:

    Date:

    Stamp and Seal

    Tuesday, March 06, 2012

    Announcement - Regarding Bank Branch Audit related matters. - (05-03-2012)


    For Information of Members

    Announcement
    [Regarding Bank Branch Audit related matters]

    The office bearers and Council Members of the Institute have been in receipt of a representation from various members in regard to certain issues concerning the profession and in particular re: matters relating to bank branch audit, appointment procedure etc. Since numerous such communications have been received this announcement is being put up for the information of members so that individual responses to the representation may be avoided.

    We may inform you that the President and the Council of the Institute are fully seized of the matter and they even before receipt of these representations have taken proactive steps to engage the government and appropriate authorities in a dialogue. The same is aimed at emphasising the contribution made by this profession in the corporate and banking sector and to avoid certain incorrect perceptions in the minds of authorities entrusted with decision-making in this regard. The representations made personally by the President along with the Vice President and certain members of the council have been well received and the favourable conclusion is awaited. In the interim, it is important as mentioned by a past President that " the profession speaks with one voice" when there is a difficult situation to be faced.

    Members are therefore requested to note that their representations have been duly noted and are being acted upon. In view thereof, further circulation of personal views by emails / letters to Government and Regulatory authorities may be avoided, so that a situation wherein different views are being expressed on behalf of the profession to various authorities does not arise.
    Secretary
    ICAI

    Friday, March 02, 2012

    Registration of Companies or LLPs which have one of their objects is to carry on the profession of Chartered Accountant, Cost Accountant, Architect, Company Secretary etc.

    General Circular No. 2/2012

    F. No. 17/165/2011-CL V
    Government of India
    Ministry of Corporate Affairs

    5th Floor, A Wing, Shastri Bhavan,
    Dr. R.P. Road, New Delhi,
    Dated the 1st March, 2012

    To,

    All Regional Director,
    All Registrars of Companies
    Registrar of LLPs

    Subject: Registration of Companies or LLPs which have one of their objects is to carry on the profession of Chartered Accountant, Cost Accountant, Architect, Company Secretary etc.

    Sir,

    I am directed to say that at the time of incorporation of companies where one of the objects is to carry on the business of Banking, Insurance or to practice the profession of Chartered Accountancy, Cost Accountancy & Company Secretaries, then the concerned Registrar of Companies shall incorporate the same only on production of in-principle approval / NOC from the concerned regulator/professional Institutes.

    2. Further, in this connection, it is also stated that where one of the objects is to carry on the business/profession of Architecture, then the concerned Registrar of Companies /Registrar of LLP shall incorporate the same only on production of in-principle approval / NOC from the concerned regulator.

    3. This issues with the approval of CAM.

    Yours faithfully,

    (Monika Gupta)
    Assistant Director

    Copy to:
    1. All concerned
    2. PS to CAM and PS to MOS
    3. PPS to Secretary, Additional Secretary, Joint Secretaries

    Wednesday, February 22, 2012

    Release of Foreign Exchange for Imports - Further Liberalisation

    RESERVE BANK OF INDIA
    Foreign Exchange Department
    Central Office
    Mumbai - 400 001

    RBI/2011-12/404                                       February 21, 2012
    A.P. (DIR Series) Circular No. 82

    To
    All Authorised Dealers in Foreign Exchange

    Madam / Sir,

    Release of Foreign Exchange for Imports – Further Liberalisation

    1.Attention of all the Authorised Dealers (ADs) in foreign exchange is invited to the A.P.(DIR Series) Circular No. 106 dated June 19, 2003 in terms of which applications by persons, firms and companies for making payments, exceeding USD 500 or its equivalent towards imports into India must be made in Form A-1.

    2. Based on suggestions received from the various stake holders, the said limit has been reviewed and it has been decided as a measure of liberalization to raise the above limit for foreign exchange remittance towards imports without any documentation formalities, from USD 500 or its equivalent to USD 5000 or its equivalent, with immediate effect.

    3. It is clarified that the ADs need not obtain any document, including Form A-1, except a simple letter from the applicant containing the basic information viz., the name and the address of the applicant, name and address of the beneficiary, amount to be remitted and the purpose of remittance, as long as the exchange being purchased is for a current account transaction (and is not included in the Schedules I and II of the Foreign Exchange Management (Current Account Transactions) Rules, 2000 framed by Government of India vide Notification No. G.S.R.381 (E) dated May 3, 2000, as amended from time to time, the amount does not exceed USD 5000 or its equivalent and the payment is made by a cheque drawn on the applicant's bank account or by a Demand Draft.

    4. Authorised Dealers may bring the contents of this circular to the notice of their constituents and customers concerned.

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

    Yours faithfully,

    (Rashmi Fauzdar)
    Chief General Manager

    Export of Goods and Services - Receipt of advance payment for export of goods Involving shipment (manufacture and ship) beyond one year

    RESERVE BANK OF INDIA
    Foreign Exchange Department
    Central Office
    Mumbai - 400 001

    RBI/2011-12/ 403                                           February 21, 2012
    A.P. (DIR Series) Circular No.81

    To
    All Category – I Authorised Dealer Banks

    Madam / Sir,

    Export of Goods and Services -
    Receipt of advance payment for export of goods
    Involving shipment (manufacture and ship) beyond one year

    1.Attention of Authorised Dealer Category – I (AD Category I) banks is invited to the sub-regulation (2) of Regulation 16 of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, notified vide Notification No.FEMA.23/RB-2000, dated 3rd May 2000, as amended from time to time, in terms of which prior approval of the Reserve Bank is required to be obtained by an exporter for receipt of advance where the export agreement provides for shipment of goods extending beyond the period of one year from the date of receipt of advance payment.

    2. With a view to liberalizing the procedure, it has been decided to permit AD Category- I banks to allow exporters to receive advance payment for export of goods which would take more than one year to manufacture and ship and where the ‘export agreement’ provides for shipment of goods extending beyond the period of one year from the date of receipt of advance payment subject to the following conditions:-

    i) the KYC and due diligence exercise has been done by the AD Category –I bank for the overseas buyer;

    ii) compliance with the Anti Money Laundering standards has been ensured;

    iii) the AD Category-I bank should ensure that export advance received by the exporter should be utilized to execute export and not for any other purpose i.e., the transaction is a bona-fide transaction;

    iv) progress payment, if any, should be received directly from the overseas buyer strictly in terms of the contract;

    v) the rate of interest, if any, payable on the advance payment shall not exceed London Inter-Bank Offered Rate (LIBOR) + 100 basis points;

    vi) there should be no instance of refund exceeding 10% of the advance payment received in the last three years;

    vii) the documents covering the shipment should be routed through the same authorised dealer bank; and

    viii) in the event of the exporter's inability to make the shipment, partly or fully, no remittance towards refund of unutilized portion of advance payment or towards payment of interest should be made without the prior approval of the Reserve Bank.

    3. Necessary amendments to the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, wherever necessary, are being issued separately.

    4. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

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

    Yours faithfully,

    (Rashmi Fauzdar)
    Chief General Manager

    Tuesday, February 21, 2012

    Exemption to specified persons from requirement of furnishing a return of income under section 139(1) for assessment year 2012-13

    Section 139 of the Income-tax Act, 1961 - Return of Income - Exemption to specified persons from requirement of furnishing a return of income under section 139(1) for assessment year 2012-13

    NOTIFICATION NO. 9/2012 [F. No.225/283/2011-ITA(II)], dated 17-2-2012

    S.O........... (E). - In exercise of the powers conferred by sub-section (IC) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby exempts the following class of persons, subject to the conditions specified hereinafter, from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year 2012-13, namely:-

    1. Class of persons. -An individual whose total income for the relevant assessment year does not exceed five lakh rupees and consists of only income chargeable to income-tax under the following head,-

    (A) "Salaries";

    (B) "Income from other sources", by way of interest from a saving account in a bank, not exceeding ten thousand rupees.

    2. Conditions,- The individual referred to in para 1,-

    (i) has reported to his employer his Permanent Account Number (PAN);

    (ii) has reported to his employer, the incomes mentioned in sub-para (B) of para 1 and the employer has deducted the tax thereon;

    (iii) has received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government;

    (iv) has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government;

    (v) has no claim of refund of taxes due to him for the income of the assessment year, and

    (vi) has received salary from only one employer for the assessment year.

    3. The exemption from the requirement of furnishing a return of income tax shall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income for the relevant assessment year.

    4. This notification shall come into force from the date of its publication in the Official Gazette.

    ■■

    Saturday, February 18, 2012

    Notified Bonds and debentures of public sector companies under section 10 (15) (iv) (h)

    Section 10(15), item (h) of sub-clause (iv) of the Income-tax Act, 1961 - Exemptions - Interest on bonds/debentures - Notified bonds/debentures of Public Sector Companies


    Notification No. 7/2012 [F.No.178/56/2011-(ITA.I)], dated 14-2-2012

    S.O. (E).- In exercise of the powers conferred by item (h) of sub-clause (iv) of clause (15) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby authorises the Rural Electrification Corporation (hereinafter referred to as the entity), to issue, through a public issue, during the financial year 2011-12, tax free, secured, redeemable, non-convertible bonds of rupees 1,000 each, aggregating to rupees three thousand crores subject to the conditions specified namely:-

    (a) Tenure of Bonds: The tenure of the bonds shall be ten years or fifteen years;

    (b) Permanent Account Number (PAN): It shall be mandatory for the subscribers to furnish their PAN to the issuer;

    (c) Rate of Interest: The interest on the bonds shall be not less than fifty basis points lower than the yield on the Government Securities of equivalent residual maturity as reported by the Fixed Income Money Market and Derivative Association of India, as on the last working day of the month immediately preceding the month of the issue of the bonds:

    Provided that a higher coupon rate of up to 20 basis points may be offered to Retail Individual Investor vis-a-vis the rate offered to Qualified Institutional Buyers (QIBs), corporate and High Networth Individuals (HNIs):

    Provided further that higher rate of interest shall not be available in case the bonds are transferred, except in case of transfer to legal heir in the event of death of the original investor:

    (d) Commission on sale.- (i) the commission on sale shall be capped at a maximum of a flat fee of 1.25% of the issue size;

    (ii) The flat fee shall include the total expense for the issue of bonds, including the expenses for advertisement, brokerage, printing, collection, canvassing charges, road shows and all other charges spent for this process.

    (iii) Provided that the brokerage shall not exceed 0.15 per cent in the case of Qualified Institutional Buyers and corporate and 0.35 per cent in the case of High Networth Individuals.

    (e) The benefit under the said section shall be admissible only if the holder of such bonds registers his, her or its name and the holding with the entity.

    (f) The entity shall issue the bonds only by way of public issue, and not by way of private placement.

    ■■

    Notified Bonds and debentures of public sector companies under section 10 (15) (iv) (h)

    Section 10(15), item (h) of sub-clause (iv) of the Income-tax Act, 1961 - Exemptions - Interest on bonds/debentures - Notified bonds/debentures of Public Sector Companies

    Notification No.6/2012 [F.No. 178/56/2011-(ITA.I)], dated 14-2-2012

    S.O. (E).- In exercise of the powers conferred by item (h) of sub-clause (iv) of clause (15) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes following amendment to the notification of the Government of India, Ministry of Finance (Department of Revenue), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide number S.O. 2210(E), dated the 23rd September, 2011, namely :-

    In the said notification, in the Table, for serial number 2 and the entries relating thereto, the following serial number and entries shall be substituted, namely:-




    S. No.
    (1)


    Entities
    (2)


    Aggregate
    Amount of Bonds (3)


    "2.


    Indian
    Railway Finance Corporation Ltd.


    Rs. 7,000 crores"

    Friday, February 17, 2012

    Clarification - Purchase of Immovable Property in India – Reporting requirement

    RBI/2011/12/399
    A.P. (DIR Series) Circular No. 79


    February 15, 2012

    To
    All
    Authorised Dealers in Foreign Exchange

    Madam /Sir,

    Clarification - Purchase of Immovable Property in India –
    Reporting requirement

    1.Attention of Authorised Dealer Category-I banks is invited to Regulation 5 of Notification No. FEMA 21/2000-RB viz. Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India), Regulations, 2000 dated May 3, 2000, as amended from time to time. In terms of the above Regulation, when a person resident outside India, who has established in India in accordance with the Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000, a branch, office or other place of business, excluding a liaison office, acquires any immovable property in India in accordance with the provision of said regulation, the said person has to file with the Reserve Bank a declaration in the form IPI annexed to those regulations, not later than ninety days from the date of such acquisition. As the form is required to be submitted by such persons only, the form is suitably amended to reflect the position.

    2.  It is clarified that the extant regulations do not prescribe any reporting requirements for transactions where a person resident outside India who is a citizen of India or a Person of Indian Origin (PIO) as defined in Regulation 2(c) of Notification No. FEMA 21/2000-RB, ibid, acquire/s immovable property in India in accordance with the said provisions of the aforesaid Notification. Form IPI has been, accordingly, amended for greater clarity.

    3. Authorised Dealer Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

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

    Yours faithfully,

    (Meena Hemchandra)
    Chief General Manager-in-Charge


    Annex

    [Annex to A.P. (DIR Series) Circular No. 79
    dated February 15, 2012]

    Form IPI

    ( See Regulation 5 )

    Declaration of immovable property acquired in Indiaby a person resident outside India who has established in India a branch, office or other place of business, excluding a liaison office

    Instructions:

    1. The declaration should be completed in duplicate and submitted directly to the Chief General Manager, Foreign Exchange  Department, (Foreign Investment Division), Reserve Bank  of India , Central Office , Mumbai – 400001 within 90 days from the date of acquisition of the immovable property.
    2. This form is not to be submitted by a person resident outside India who is a citizen of India or a Person of Indian Origin (PIO) acquiring immovable property in India under General Permission in accordance with Regulations 3 and 4 of Notification No. FEMA 21/2000-RB dated May 3, 2000.
    Documentation:

    Certified copies of letter of approval from Reserve Bank obtained under section 6(6) of FEMA, 1999 (42 of 1999).


    1

    Full name and address of the acquirer who has acquired the immovable property




    2
    (a)
    Description of immovable property
    (a)





    (b)
     Details of its exact location stating the name of the state, town and municipal/survey number, etc

    (b)



    3

    (a)
    Purpose for which the immovable property has been acquired

    (a)





    (b)
    Number and date of Reserve Bank’s permission , if any

    (b)



    4


    Date of aquisition of the immovable property





    5

    (a)
    How the immovable property was acquired i.e. whether by way of purchase or lease

    (a)





    (b)
    Name , citizenship and address of the seller/lessor

    (b)





    (c)
    Amount of purchase price and sources of funds

    (c)




    I/ We
    hereby declare that-

    (a) the particulars given above are true and correct to the best of my/our knowledge and belief;

    (b) no portion of the said property has been leased /rented to, or is otherwise being allowed to be used by, any other party.

    -------------------------------------

    (Signature of Authorised official)

    Name:------------------------------

    Designation:---------------------

    Encls:

    Stamp

    Place: -------

    Date:--------







    Export of Goods and Services-Simplification and Revision of Softex Procedure

    RESERVE BANK OF INDIA
    Foreign Exchange Department
    Central Office
    Mumbai - 400 001
    _________________________________________________
    RBI/2011/12/400                                     February 15, 2012
    A.P. (DIR Series) Circular No. 80

    To
    All Authorised Dealers in Foreign Exchange

    Madam / Sir,

    Export of Goods and Services-
    Simplification and Revision of Softex Procedure

    1.Attention of the Authorised Dealers is invited to Regulation 6 of the Notification No.FEMA 23/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as amended by the Notification No.FEMA 36/2001-RB dated February 2, 2001, in terms of which designated officials of the Ministry of Information Technology, Government of India at the Software Technology Parks of India (STPIs) or at Free Trade Zones (FTZs) or Export Processing Zones (EPZs) or Special Economic Zones(SEZs), had been authorised to certify exports declared through SOFTEX Forms.

    2. Considering the spurt in the volume of software exports from India in recent times, the complexity of work contracts involved, the voluminous nature of contract agreements and the duration involved in execution of each contract as well as the time-consuming process involved in the certification of SOFTEX forms, the matter was revisited and a revised procedure, given herein below, has now been finalised in consultation with the stakeholders involved.

    3. As per the revised procedure, a software exporter, whose annual turnover is at least Rs. 1000 crore or who files at least 600 SOFTEX forms annually, will be eligible to submit a statement in excel format as per Annexure A, giving all particulars alongwith quadruplicate set of SOFTEX form to the nearest STPI. STPI will then verify the details and decide on a percentage sample check of the documents in details. Software companies will submit all the documents on demand to STPI within 30 days of their advice or any reasonable/extended time at the discretion of the Director, STPI, at the request from the exporter. STPI will thus certify the statement and SOFTEX forms in bulk on the “Top Sheet” regarding the values etc. and will thereafter forward the first copy of the revised SOFTEX format to the concerned Regional Office of RBI, the duplicate copy alongwith bulk statement in excel format to Authorised Dealers for negotiation / collection / settlement, the third copy to the exporter and the last copy will be retained by STPI for its own record. Under the revised procedure, the exporters, however, will have to provide information about all the invoices including the ones lesser than US$25000, in the bulk statement in excel format. [The revised procedure for submission of the Softex form and other relevant documents are detailed in the Annex.]

    4. The new procedure will be effective initially in STPI Bangalore, Hyderabad, Chennai, Pune and Mumbai with effect from April 01, 2012. Based on the success in these centers, it would be adopted by all the STPIs and SEZ/ EPZ/ 100% EOU/ EHTP/ DTA units by June 2012.

    5. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned.

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

    Yours faithfully,

    (Rashmi Fauzdar)
    Chief General Manager
    ___________________________________________

    ANNEX
    [Annex to A.P. (DIR Series) Circular No. 80
    dated February 15, 2012]

    1. Revised Procedure : Reporting of Software exports to STPI

    A. Periodicity – Monthly

    B. Time periodNot later than 30 days from the close of the month in which the invoice is raised

    C. Applicability – Software exporters with annual turnover in excess of Rs. 1,000 crore or submitting at least 600 Softex forms annually.

    D. Softex Number – Softex number shall be allocated/issued centrally by RBI once a year based on the requirements of exporter which can be about 200,000 numbers to be used by large exporters for the year for all locations. If the softex numbers are exhausted, the exporter can apply again to RBI for allotment of number. Exporters can use the allocated Softex number either for each invoice or for a group of invoices with same currency of a particular customer. Softex number would be the control number for identifying any of the export transaction.

    E. Details of information – As per the template in Annexure A, which will broadly cover information as under

    i. Name and Address of the Exporter
    ii. Letter of permission number and date
    iii. Name of authorized data com service provider
    iv. Import Export Code number
    v. Software Export Declaration
    vi. Details of Export of Software during the period
    a) Period of submission i.e. Month name
    b) SOFTEX Number
    c) Name of Client
    d) Address of Client
    e) Country of Export
    f) Invoice Number
    g) Invoice Date
    h) Project Code or Contract or Agreement or PO & Date
    i) Type of Software Exported
    j) Invoice Currency
    k) Offshore Invoice value

    vii. Details of billings on account of Royalty on Software Packages/products exported as per Annexure B
    a) Period of submission i.e., Month name
    b) SOFTEX Number
    c) Name of Client
    d) Address of Client
    e) Country of Export
    f) Invoice Number
    g) Invoice Date
    h) Unique internal Project Code or Contract/Agreement/PO Date
    i) Invoice Currency
    j) Offshore Invoice value
    k) Details of Software Package(s)/product(s) exported
    l) Royalty agreement details
    1. % age and amount of royalty
    2. Period of Royalty agreement
    3. Mode of realisation of Royalty value
    4. Calculation of Royalty amount

    viii. The Authorized dealer’s name should be given in Section A of individual bulk statement itself along with email id (Annexure A & B). If there are multiple ADs, then exporter may provide full details - i.e., Details such as bank name, address and Authorized Dealer code plus
    a) Details of Letter of Credit(L/C) facilty availed by the exporter
    b) Details of Bank Guarantee taken by the exporter
    c) Details of the Bank Accounts into which the transfer/remittance are received

    ix. Email id of the Exporter shall be specified to which the attested Bulk Softex statement will be sent

    F. Soft copy Submission – Software Exports Declaration in summary excel sheet with above details.

    G. Hard copy submission – Covering letter along with summary sheet declarations and Annexure copies in quadruplicate. Copies of Softex forms, Invoices, SoW, MSA or any other document are not required to be submitted along with summary.

    H. Additional Information – At the request of STPI, software exporter need to submit additional details about selected sample invoices within 30 days of the request or any reasonable extended time at the discretion of the Director , STPI at the request from the exporter.

    I. Time Period for additional Information – STPI would do sample audit periodically but not during the period beyond six months, to make the records concurrent with the filing of the Softex. This however, doesn’t stop the regulator from asking old records as per FEMA.

    J. STPI will send the attested Bulk Softex statement in hardcopy to software exporter and soft copy to RBI, Regional Office, Authorized Dealer and Exporter with password protection (to be provided by STPI)

    K. Authorized Dealer will upload this information in their systems for further processing

    L. Authorized Dealer will settle the Softex using AD internal control number based on details provided by Exporter on collections as per Annexure C

    2. Reporting of Software export Realizations to Authorized Dealer (AD)

    Software Exporters can have collection account overseas or get credit directly in the bank accounts maintained in India, where individual invoices raised on customers are collected. After meeting “onsite” branch expenses, as permitted by FEMA, net amount will be remitted to India. This would also include 100% realization of offsite exports.

    A. Periodicity – Quarterly

    B. Applicability – Software exporters with annual turnover in excess of Rs. 1,000 crore or submitting in excess of 600 Softex forms annually.

    C. Details of informationAs per Annexure C, which will cover information as under

    i. Name and Address of the Exporter
    ii. Import Export Code number
    iii. Details of invoice wise collections (Attachment A)
    a) SOFTEX Number
    b) Name of Customer
    c) Invoice Number
    d) Invoice Date
    e) Invoice Currency
    f) Offshore Invoice value
    g) Offshore Invoice value realized
    h) Date of Realization of exports proceeds
    i) Name of the Bank
    j) Country of the Bank

    iv. Details of Foreign Currency Inward Remittance in India(Attachment B). Authorized Dealers will give a control number for this Attachment B, which shall be used by them to settle all the softex forms in Attachment A

    a) Inward remittance in India from overseas bank accounts

    1. Name and address of the Authorized Dealer at which the amount has been received
    2. Inward remittance details like FIRC number, date, amount and foreign currency
    3. Name and address of the Overseas bank from which remittance has been effected

    b) Direct Inward remittance in India from customers against exports of software

    1. Name and address of the Authorized Dealer at which the amount has been received
    2. Inward remittance details like FIRC number, date, amount and foreign currency
    3. Name and address of the Customer from which remittance has been received

    v. Documentation: FIRCs to be given to AD for endorsement along with above details

    vi. Software exporters will furnish the credit notes to AD for invoices which have already been certified by STPI and settle the respective Softex forms.

    3. Online Submission of Periodic Software Exports Declaration

    STPI is in the process of computerizing the submission of Softex form. STPI would be required to ensure that the computerisation of the Softex forms and the populating of the data must be compatible to 'Softex Card Design' as detailed in Annexure E and be able to generate a report in 'ENC file format' as detailed in Annexure D

    N.B. In the event of full computerisation at the STPIs, the exporters will upload their bulk statement to the STPI system which will be verified and certified by the STPI and the certified information will flow to RBI, Regional Office, Exporter as well as AD online. The data will eventually flow to DSIM, RBI for record with a copy retained at STPI.

     

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