Income tax : Circular No. 9 /2009, dated 30-11-2009

While remitting consular receipts abroad, diplomatic missions in India will be required to submit only a self certified undertaking in Form No 15CA to the remitter bank. They are not required to obtain a certificate from an accountant/ certificate of Assessing officer (Form 15CB). The procedure for furnishing information regarding remittances of consular receipts by diplomatic missions in India will be as mentioned in the circular.

Click the title for the text of the Circular.

Income tax : CIRCULAR NO. 8/2009, DATED 24/11/2009

Applicability of provisions under Section 194J of Income Tax Act'61 in the case of transactions by the Third Party Administrators (TPAs) with Hospitals etc

Click the title for the full text of the Circular.

Simplified Debt Listing Agreement for Debt Securities - Amendments

SEBI vide circular No.SEBI/IMD/BOND/1/2009/11/05 dated May 11, 2009 put in place the Simplified Listing Agreement for Debt Securities. Pursuant to suggestions from various market participants received subsequently, it has been decided to amend the said Listing Agreement as given in the circular.

Click the tilte for the text of the circular.

Directions for opening and operation of Accounts and settlement of payments for electronic payment transactions involving intermediaries

The use of Electronic/Online Payment modes for payments to merchants for goods and services like bill payments, online shopping etc. has been gaining popularity in the country. With a view to safeguard the interests of the customers and to ensure that the payments made by them using Electronic/Online Payment modes are duly accounted for by the intermediaries receiving such payments and remitted to the accounts of the merchants who have supplied the goods and services without undue delay, it is considered necessary by RBI to frame suitable directions for the safe and orderly conduct of these transactions. Accordingly, the directions are issued under Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).

Click the tiltke for the text of the Directions.

KYC Norms/AML standards/Combating Financing of Terrorism/Obligation of Authorised Persons under PMLA, 2002, 2009 – Suspicious Transaction Reporting Format

Government of India vide the Prevention of Money Laundering (Amendment) Act, 2009 (21 of 2009) has amended the PMLA and the amendment has come into force with effect from June 1, 2009. The amendment, inter alia, has brought authorized persons within the definition of "Financial Institutions" under Section 2(l) of the Act. Accordingly, in terms of Section 12 of the Act and the rules made there under, authorized persons are required to furnish information to Financial Intelligence Unit-India (FIU-IND) in the prescribed format. Government of India vide its Notification No.13/2009/F.No.6/8/2009-ES dated November 12, 2009, has also amended Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005. A copy of the amendment Notification is annexed.

Accordingly, all authorized persons are advised to furnish Suspicious Transaction Report (STR) to FIU-IND in respect of their money changing activities within 7 days of arriving at a conclusion that a transaction, including attempted transaction, whether or not made in cash, or a series of transaction integrally connected are of suspicious nature. The formats of STR, both manual and electronic, have been made available by FIU-IND in their website http://fiuindia.gov.in.

The STR formats prescribed would also be applicable to all franchisees of authorised persons and it will be the sole responsibility of the franchisers to ensure that their franchisees also adhere to the said reporting requirements.

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), Prevention of Money-Laundering Act, (PMLA), 2002 (as amended form time to time), and Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005, as amended from time to time. Non-compliance with the guidelines would attract penal provisions of the Acts concerned.

Click the title for the text of the Notification.

Notification of the Income Tax (Dispute Resolution Panel) Rules, 2009

CBDT has issued the notification of the Income-tax (Dispute Resolution Panel) Rules, 2009. CBDT has made certain rules to regulate the procedure of the Dispute Resolution Panel vide this notification.

Click the title for the text of the notification.

Section 132 of the Income-tax Act, 1961 - Search & seizure - Empowerment of authorities

The CBDT hereby empowers all the Additional Directors of Income-tax and Joint Directors of Income-tax working under the Director General of Income-tax (Investigation) and Director General of Income-tax (Intelligence) to issue authorisation under sub-section (1) of section 132 of the Income-tax Act, 1961 (43 of 1961).

Click the tilte for the text of the notification.

Know Your Customer (KYC) Guidelines / Anti-Money Laundering (AML) Standards for NBFCs- RBI circular

It is advised that in the event of an existing customer or the beneficial owner of an existing account, subsequently becoming a politically exposed perosn (PEP), NBFCs (including RNBCs) should obtain senior management approval to continue the business relationship and subject the account to the CDD measures as applicable to the customers of PEP category including enhanced monitoring on an ongoing basis.

Click the tilte for the text of the circular.

Prevention of Money laundering Act, 2002 – Obligations of NBFCs in terms of Rules notified thereunder- RBI Circular

In modification of paragraph 4 of the Master Circular No.152/03.10.42/2009-10 dated July 1, 2009, NBFCs (including RNBCs) are advised to maintain for at least ten years from the date of transaction between the NBFC (including RNBC) and the client, all necessary records of transactions referred to at Rule 3 of the Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005 (PMLA Rules), both domestic or international, which will permit reconstruction of individual transactions (including the amounts and types of currency involved, if any) so as to provide, if necessary, evidence for prosecution of persons involved in criminal activity.

Click the tiltle for the text of the Circular.

Exemption to taxable service during the course of manufacture of parts of cycles or sewing machines- Service tax circular

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 exempts the taxable service specified in sub-clause (zzb) of clause (105) of section 65 of the Finance Act, provided by a person (hereinafter called the ‘service provider’) to any other person (hereinafter called the ‘service receiver’), in relation to one or more of the specified process during the course of manufacture of parts of cycles or sewing machines, subject to the certain conditions.

Click the title for the text of the notification.

Expiry Date for Equity Derivative Contracts- SEBI Circular

It has been decided to allow flexibility to the Stock Exchanges to set the expiry date /day for equity derivative contracts.

Click the title for the text of the circular

Facilitating transactions in Mutual Fund schemes through the Stock Exchange

For enhancing the reach of mutual fund schemes to more towns and cities, Units of mutual fund schemes is permitted to be transacted through registered stock brokers of recognized stock exchanges and such stock brokers will be eligible to be considered as official points of acceptance.

Click the tilte for the text of the Circular.

First Discussion Paper on GST in India

The First discussion paper on Goods and Services Tax in India has been released by The Empowered Committee Of State Finance Ministers
 
Click the title for the text of the Paper.

SEBI Borad Meeting - PR No.344/2009

SEBI has issued a press release covering decisions taken at its meeting held on November 9, 2009. Decesion is taken on the follwoing points.

1. Voulntary adoption of IFRS by listed companies presenting consolidated accounts.
2. Interim disclosure of Balance sheet items.
3. Uniform timeline for submitting audited/anaudited financial results.
4. Certain other amednments to ICDR regulation and listing agreement.

Click the title for the text of the Press Release.

Market Access Through Authorised Person

It has been decided to allow SEBI registered stock brokers (including trading members) of stock exchanges to provide access to clients through authorised persons. The framework governing the market access through authorised persons is enclosed at Annexure-1 of the  circular.

Click the title for the text of the circular.

DTAA with Government of Republic of Montenegro

Click the Tiltle for the full text of the DTAA.

Provisioning Requirement for Standard Assets

The standard asset provisioning requirements for all categories are summarised below.


(a)Direct advances to Agriculture and SME sectors - 0.25 %
(b)Commercial Real Estate (CRE) sector - 1.00 %
(c)All other loans and advances not included in (a) and (b) above -0.40%

Click the tiltke for the text of the notification.

Subject: Leviability of service tax on Tour operator service in connection with Haj & Umrah pilgrimage

It is clarified that service tax is not chargeable on the services provided in respect of tour undertaken for carrying out Haj and Umrah Pilgrimage in Saudi Arabia by Indian pilgrims considering these as export of service, provided they fulfill the other conditions of export as provided in Export of Service Rules.

Click the title for the text of the circular.

Discussion Paper on Execution of Power of Attorney by Clients Favoring Stock Brokers/Depository Participants

This discussion paper outlines the guidelines for incorporating conditions/clauses in the Power of Attorney (PoA) given by clients to their Stock Brokers and/or Depository Participants in the context of possible risks for the clients in this regard.

Click the title fo the draft of the paper.