Due date for filing return extended in case of Pune, Sangli and Kolhapur

CBDT has Notified that the due date for filing tax return in Pune, Sangli & Kolhapur has been extended till 31st October 2009 vide Press Note No. 402/92/2006-MC (20 of 2009), dated 25-9-2009.

Click the tiltle for the text of Press Note

Leviability of service tax on construction of canals by Government agencies

CBEC has clarified following two issues regrding leviability of service tax on:

1. construction of canals for Government projects.

2.construction activity of dams, irrigation projects buildings or infrastructure construction etc. through turnkey or EPC (Engineering Procurement & Construction) mode.

vide - Circular No. 116/10/2009-S.T., dated 15-9-2009.

Click the title for the text of the circular.

Notifications no. 37, 38 and 39

CBEC has notified following rules

1.Taxation of Services(Provided from outside India and Received in India) Second Amendment Rules, 2009.(Notification No.37/2009 - Service Tax, dated 23-09-2009)
2.Export of Services (Second Amendment) Rules, 2009 .(Notification No.38/2009 - Service Tax, dated 23-09-2009)

and has exempted certain services provided to any person during course of manufacturing or processing of alcoholic beverages. (Notification No.39/2009 - Service Tax, dated 23-09-2009).

Click on the notification link for full text of the notifications.

Code of Conduct for Intermediaries of Mutual Funds

Code of Conduct for Intermediaries of Mutual Funds - Circular No. SEBI/IMD/CIR No. 8/174648/2009, dated 27-8-2009. Click the title for the text of the circular. 

SEBI Board Meeting- PR No. 300/2009, dated 22-9-2009

Amendments to Listing Agreement/ICDR Regulations and Amendments to SEBI (Substantial Acquisition of Shares and Takeovers) Regulations (Takeover Regulations). Press release no. PR No. 300/2009, dated 22-9-2009- Outcome of SEBI Board meeting. Click the title for the text of the Press Release.

AMENDMENT IN ELECTRONIC FURNISHING OF RETURN OF INCOME SCHEME, 2007

NOTIFICATION NO. 70/2009, DATED 22-9-2009. AMENDMENT IN ELECTRONIC FURNISHING OF RETURN OF INCOME SCHEME, 2007. Click the title for the text of the notification.

Master Circular - CRR and SLR

Please click the above link for Master Circular on Cash reserve ratio and Statutory Liquidity Ratio.

Prior Approval of RBI for transfer of control in NBFC accepting Deposit

To enable RBI to verify that the 'fit and proper' character of the management of NBFCs is continuously maintained, it has been decided that any take over / acquisition of shares of a deposit taking NBFC or merger/amalgamation of a deposit taking NBFC with another entity or any merger/amalgamation of an entity with a deposit taking NBFC that would give the acquirer / another entity control of the deposit taking NBFC, would require prior permission of RBI.

State wise stamp duty rules for eForm 1, MoA, AoA, authorised share capital

Click the above link for State wise stamp duty rules for eForm 1, Memorandum of Association (MoA), Articles of Associations (AoA), eForm 5 and eForm 44.

Estamping

Click the above link for the FAQ on estamping facility offered by MCA.

Revision in Form No. 24B and Form No. 25A

The central Government has revised Form NO. 24B and Form NO. 25A by Companies (Central Government’s) General Rules and Forms (Fifth Amendment) Rules, 2009. Click the above link for the text of the notification.

Service tax Notification No. 36/2009 - Rescission of Notification No. 28/2009

Rescission of Notification No. 28/2009 - Service Tax, dated 31-8-2009

Notification No. 36/2009-Service Tax, dated 9-9-2009

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.28/2009-Service Tax, dated the 31 st August, 2009, published in the Gazette of India, Extraordinary, vide number G.S.R. 617 (E), dated the 31 st August, 2009, except as respects things done or omitted to be done before such rescission.

2. This notification shall come into force with effect from the date of publication in the Gazette of India.

F. No. 356/24/2009-TRU

Companies (Central Government’s) General Rules and Forms (Fourth Amendment) Rules, 2009

The Central Government has amended Companies (Central Government’s) General Rules and Forms (Fourth Amendment) Rules, 2009. The amedned has been made in From no. 1, Form no. 5 and Form No. 44. The forms are amended to facilitate online payment of stamp duty.

Companies (Electronic Filing and Authentication of Documents) Rules, 2006

The central Government has amended Companies (Electronic Filing and Authentication of Documents) Rules, 2006. Click the above link for the text of the notification. 

Scheme for Filing of Statutory Documents and other Transactions by Companies in Electronic Mode

The central Government has made scheme for Filing of Statutory Documents and other Transactions by Companies in Electronic Mode. It has amended Form No. 1, From No.5 and Form No. 44. The payment of stamp duty can now be made online and it has been made compulsory from 1.1.2010.   

Amendment to CENVAT Credit Rules, 2004 (Second Amendment)

CBEC has amended CENVAT credit rules, 2004 vide notification no. 22/2009 C.E. (N.T.), dated 07-09-2009. Click the above link for the text of the notification. 

Cost Inflation Index 2009-10

Cost Inflation Index for F.Y. 2009-10

Notification No. 67/2009, dated 9-9-2009

In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, number S.O.709(E), dated the 20th August, 1998, namely :-

In the said notification, in the Table, after serial number 28 and the entries relating thereto, the following serial number and entries shall be inserted, namely:-

“29                              2009-10                                 632”

Amendment to Service Tax notification dated the 1st March 2006, G.S.R. 115(E), dated the 1st March, 2006No. 1/2006

The government had amended Service Tax notification dated the 1st March 2006, G.S.R. 115(E), dated the 1st March, 2006No. 1/2006 vide notifiocation no. 34-2009, service tax. Click the above link for the complete text of notification.

Exemption from service tax from service provided to any person in relation to transport of goods by rail

The Government has exempted taxable service provided to any person in relation to transport of goods by rail vide notification no. 33/2009 - Service Tax. Click on the above link for the complete text of the notification.

Exemption from service tax for services provided in relation to Medicinal and Toilet Preparations

Government has exempted certain services from service tax which are charged to excise duty under Medicinal and Toilet Preparations (Excise Duties) Act, 1955

Exemption from service tax for services provided by stock brokers

The Government has exempted services provided by stock brokers vide notification no. 31/2009 - Service Tax. Click the above link for full text of the notification

Clarification on FDI into a SSI/MSE and in Industrial Undertaking manufacturing items reserved for SSII MSE

Clarification on Foreign Direct Investment (FDI) into a Small Scale Industrial Undertaking (SSI)/Micro & Small Enterprises (MSE) and in Industrial Undertaking manufacturing items reserved for SSII MSE

Press Note No. 6 (2009), dated 4-9-2009

1.0 FDI into SSIIMSE

1.1 A Small Scale industrial undertaking (SSI) was defined in terms of: (i) investment in fixed assets in plant and machinery and (ii) equity participation (both domestic and foreign) in the SSI, by other industrial undertakings prior to 2006.

1.2 Vide Press Note 18 (1997), it was further notified that, for cases of foreign collaborations, since the maximum equity participation allowed for in small scale units was 24%, proposals for induction of foreign equity more than 24% would be subject to the condition that: (i) the company would get itself de-registered as a small scale unit and (ii) obtain industrial licence or file Industrial Entrepreneur Memorandum with SIA, as per prescribed policy and procedure.

1.3 With the promulgation of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the ceiling for equity participation (both domestic and foreign) in the micro and small enterprises, by other enterprises, was removed and Micro and Small Enterprises (MSE) (earlier small scale industries) were defined solely on the basis of investment in plant & machinery (for micro and small enterprise engaged in manufacturing) and equipment (for micro and small enterprise engaged in providing or rendering of services). Accordingly, this change was notified by Notification No. S.O. 563(E) dated 27^th February 2009 of Department of Industrial Policy & Promotion, Ministry of Commerce & Industry.

1.4 Thus the present policy on FDI in MSE permits FDI subject only to the sectoral equity caps, entry routes and other relevant sectoral regulations.

1.5 Press Note 18 (1997 series) stands modified to the above extent.

2.0 FDI in Industrial Undertaking manufacturing items reserved for SSIIMSE

2.1 Vide Press Note 14 (1997), it was notified that Industrial Undertakings manufacturing items reserved for small scale sector were not eligible for automatic approval for induction of foreign investment.

2.2 Accordingly, the FDI policy notified vide Press Note 2 (2000) prescribed prior approval of Government where foreign investment was more than 24% in the equity capital of units manufacturing items reserved for small scale industries. This was reiterated in the Annex to Press Note 4 (2006) and at Para III (ii) of Annex to Press Note 7 (2008).

2.3 Thus, any industrial undertaking, with or without FDI, which is not a MSE, manufacturing items reserved for manufacture in the MSE sector (presently 21 items) as per the Industrial Policy, would require an Industrial License under the Industries (Development & Regulation) Act, 1951, for such manufacture. The issue of the Industrial Licence will be subject to a few general conditions and the specific condition that the undertaking shall undertake to 'export a minimum of 50% of the new or additional annual production of the MSE reserved items to be achieved within a maximum period of three years. The export obligation would be applicable from the date of commencement of commercial production'.

Such an industrial undertaking would also require prior approval of the Government (FIPB) where foreign investment is more than 24% in the equity capital.

Amendments to Equity Listing Agreement

NeelamBhardwaj

GeneralManager

CorporationFinance Department

Phone: +91 22 26449350(D), Email:neelamb@sebi.gov.in

SEBI/CFD/DIL/LA/3/2009/03/09

September 3, 2009

The Managing Director/ Executive Director/ Administrator of all the Stock Exchanges

Dear Sirs,

Sub.: Amendments to Equity Listing Agreement

1. The matters relating to issue of capital and the manner of disclosure of such and other matters incidental thereto have been provided in the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (hereinafter referred to as “the ICDR Regulations”). The ICDR Regulations have been notified on August 26, 2009.

2. It has been decided to incorporate the provisions of clause 3.5.3 of the SEBI (Disclosure and Investor Protection) Guidelines, 2000 (since rescinded) in the equity listing agreement, as these provisions pertain to compliance of listing conditions by a listed issuer.

3. Accordingly, it has been decided to amend clause 19 of the equity listing agreement, by inserting a sub-clause after sub-cause (c), as under:

“(d) that in case of a further public offer to be made through the fixed price route, the company shall notify the stock exchange, at least 48 hours in advance, of the proposed meeting of its Board of Directors convened for determination of issue price.”

4. This circular is issued in exercise of powers conferred by sub-section (1) of section 11 of the Securities and Exchange Board of India Act, 1992, to protect the interest of investors in securities and to promote the development of, and to regulate the securities market. This circular is available on SEBI website at http://www.sebi.gov.in/ under the categories “Legal Framework” and “Issues and Listing”.

Yours faithfully,

Neelam Bhardwaj

Amendments to SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 Notification

SEBI/CFD/DIL/ESOP/5/2009/03/09

September 3, 2009

To,

All Registered Merchant Bankers

All Recognised Stock Exchanges

Dear Sirs,

Sub.: Amendments to SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999

1. The matters relating to issue of capital and the manner of disclosure of such and other matters incidental thereto have been provided in the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (hereinafter referred to as “the ICDR Regulations”). The ICDR Regulations have been notified on August 26, 2009.

2. There are certain provisions in the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 (hereinafter referred to as “the Guidelines”) which are required to be complied with by an unlisted issuer at the time of making an initial public offer. Since these provisions pertain to matters relating to issue of capital, the same have now been incorporated in the ICDR Regulations and consequently, it has been decided to amend the Guidelines to remove these provisions as well as the redundant provisions pertaining to application to Central Listing Authority. The full text of amendments is given in Annexure I.

3. This circular is being issued in exercise of the powers conferred under sub-section (1) of section 11 of the Securities and Exchange Board of India Act, 1992. This circular and the entire text of the updated Guidelines are available on SEBI website at http://www.sebi.gov.in/ under the categories “Legal Framework” and “Issues and Listing”.

Yours faithfully,

Neelam Bhardwaj

Encl.: As above.

ANNEXURE I

Amendments to SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999

1. Clause 15 shall be omitted.

2. Clause 15.1 shall be omitted.

3. Clause 15.2 shall be omitted.

4. Clause 15.3 shall be omitted.

5. In clause 22.2, for the words and figures “clause 15.3”, occurring after the words “subject to compliance with” and before the words “and, where applicable”, the words “SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009” shall be inserted.

6. In clause 22.3, the words “make application to the Central Listing Authority as per SEBI (Central Listing Authority) Regulations, 2003 and” shall be omitted.

7. Clause 22.4 shall be omitted.

8. Clause 22.5 shall be omitted.

********

Recognition to MCX Stock Exchange Limited, Mumbai

Section 4 of the Securities Contracts (Regulation) Act, 1956 - Grant of recognition to Stock Exchange - Renewal recognition to MCX Stock Exchange Limited, Mumbai

Notification No. LAD-NRO/GN/2009-10/16/174954, dated 31-8-2009

The Securities and Exchange Board of India, having considered the application for renewal of recognition made under section 3 of the Securities Contracts (Regulation) Act, 1956 by MCX Stock Exchange Limited, having its registered office at Exchange Square, Suren Road, Chakala, Andheri (East), Mumbai-400 093 and being satisfied that it would be in the interest of the trade and also in the public interest so to do, hereby grants, in exercise of the powers conferred under section 4 of the Securities Contracts (Regulation) Act, 1956, renewal of recognition to the said Exchange under section 4 of the said Act for a period of one year commencing on the 16th day of September, 2009 and ending on the 15th day of September, 2010 in respect of contracts in securities subject to the conditions stated herein below or as prescribed or imposed hereafter :

* The Exchange shall ensure full compliance with the relevant provisions of the Securities Contracts (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) Regulations, 2006 within a period of one year (i.e., till September 15, 2010).

* The Exchange will permit trade only in securities in which trading was permitted hitherto and shall not be eligible for introduction of any new class of contracts in securities, till such time as the compliance referred to above is ensured.

* The Exchange shall comply with such other conditions as may be prescribed by SEBI from time to time.

Liability of interest where CENVAT credit was wrongly taken but reversed by assessee before utilization

Liability of interest where CENVAT credit was wrongly taken but reversed by assessee before utilization

Circular No. 897/17/2009-CX, dated 3-9-2009

Representation has been received from the field formation stating that the decision of Hon’ble High Court of P&H in the case of CCE, Delhi III V/s Maruti Udyog Ltd. [2007(214)ELT173(P&H)], has upheld the order of Tribunal wherein it was held that assessee is not liable to pay interest in the case where credit was only taken and not utilized. The SLP against this order has been dismissed by the Hon’ble Supreme Court. On the other hand, Rule 14 of The CENVAT Credit Rules, 2004, provides for recovery of credit taken or utilized wrongly with interest. In view of this conflict in legal provisions and the decision of Hon’ble Supreme Court, a clarification has been requested from the Board.

2. The matter has been examined. It is seen that the Tribunal decision and the High Court judgement referred to above, was delivered in the context of erstwhile Rule 57I of the Central Excise Rules, 1944 and that the Supreme Court order under reference is only a decision and not a judgement. Since, the Rule 14 of the CENVAT Credit Rules, 2004, is clear and unambiguous in the position that interest would be recoverable when CENVAT credit is taken or utilized wrongly, it is clarified that the interest shall be recoverable when credit has been wrongly taken, even if it has not been utilized, in terms of the wordings of the present Rule 14.

3. Trade & Industry as well as field formations may be suitably informed.

4. Receipt of this circular may kindly be acknowledged.

Notification for Issue of capital and disclosure requirements, 2009

SEBI circular for regulations for Issue of capital and disclosure requirement, 2009 explaining differnce betweeen erstwhile regulation and new notification.

SEBI (Issue of capital and disclosure Requirement) Regulations, 2009

SEBI (Issue of capital and disclosure Requirement) Regulations, 2009

Income-tax (Twelfth Amendment) Rules, 2009 - Amendment in rule 11N

Notification No. 65/2009 [F. NO. 49/22/2009-SO(TPL)], dated 2-9-2009

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 (Twelfth Amendment) Rules, 2009.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In sub-rule (2) of rule 11N of the Income-tax Rules, 1962,-

(i) in clause (i), the figure “250” shall be substituted with the figures “3000”,

(ii) in clause (ii), the work, “text” shall be submitted with the works, “air conditioned taxi”,

(iii) clause (iii) shall be deleted,

(iv) clause (iv) shall be substituted with the following, namely :-

“The out-station Chairman or Member may stay and claim reimbursement of rent in any State guest house or for single room in medium range ITDC hotel like Lodi Hotel, Qutab Hotel, Janpath Hotel, Ashoka Yatri Niwas or State Government run tourist hotels/hostels or residential accommodation provided by registered societies like India international Centre or India Habitat Centre. They would separately be entitled for reimbursement of food allowance at the rate of Rs. 500/- per day”.

Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Fourth Amendment) Regulations, 2009 - Amendment of Regulations 7

Notification No. G.s.r. 609(e), dated 28-7-2009

In exercise of the powers conferred by clause (a) of sub-section (3) of Section 6 and Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India hereby makes the following amendments in the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 (Notification No. FEMA. 120/RB-2004 dated July 7, 2004), namely:—

1. Short Title and Commencement:—(i) These Regulations shall be called the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Fourth Amendment) Regulations, 2009.

(ii) These Regulations shall be deemed to have come into effect from the 6th day of September, 2006.

2. Amendment of Regulation 7—In the principal Regulations, in Regulation 7, for the sub-regulation (1), the following shall be substituted, namely :

"(1) Subject to the Regulations in Part I, an Indian Party engaged in financial services sector in India may make investment in an entity outside India :

Provided that the Indian party

(i) has earned net profit during the preceding three financial years from the financial services activities;

(ii) is registered with the regulatory authority in India for conducting the financial services activities;

(iii) has obtained approval from the concerned regulatory authorities both in India and abroad, for venturing into such financial sector activity;

(iv) has fulfilled the prudential norms relating to capital adequacy as prescribed by the concerned regulatory authority in India."