Thursday, 27 June 2013
AO can’t equate an agreement to sell property with its transfer until possession of property is tran
Order passed by Commissioner under sec. 87 isn’t appealable before Tribunal
Assurance to pay to be deemed as admission of liability, rules Delhi HC
HDFC Bank says got an Income Tax enquiry following Cobrapost expose
Following the Cobrapost expose, private sector lender HDFC BankBSE 1.72 % received an Income Tax enquiry but it was not an assessee in the case.
"Yes, there was a tax enquiry and they had detailed discussions with our people concerned and the tax authorities are satisfied with our responses," bank chairman C M Vasudev told shareholders at the bank's annual general meeting here.
HDFC Bank Managing Director and Chief Executive Aditya Puri, however, clarified that the bank had appeared before the Income Tax department as a witness, and not as a tax assessee.
"We have met the tax authorities. Please remember, we have not met them as a tax assessee, we have met them as a witness," he told reporters.
The Cobrapost expose purportedly showed officials of the country's top three private sector lenders -- ICICI BankBSE 2.12 %, HDFC Bank and Axis BankBSE 1.22 % -- offering services which violated the existing money laundering and `know your customer' norms.
Following this, the I-T department had sent notices to all the three lenders, seeking explanation on their positions for possible tax evasion.
Answering a query regarding the impact on the business of the bank, Vasudev said, "I don't imagine that genuine sort of business should get affected," adding that only the numbers posted next year will show the results.
He said the bank has a whistleblower policy in place and all the cases which come under that are seriously looked into.
Puri said the bank plans to open 300 branches on top of its over 3,000 already operating branches this year and added it takes up to three years for a branch to break-even.
Around 53 per cent of its branches at present are in semi-urban and rural areas, Puri said, adding the proportion will go up this year.
Difficult to recover 97pc of Rs 4.82 lakh cr tax arrears: CBDT
In a startling revelation, the CBDT has reported that 97 per cent of Income Tax demand arrears, quantified over Rs 4.66 lakh crore, is "difficult" to be recovered.
The total arrears amount to be recovered, stuck because of a variety of reasons like litigation, companies in liquidation, sick companies and untraceable taxpayers, is Rs 4.82 lakh crore.
Alarmed by the "precarious" situation, the apex body of the I-T department has initiated a slew of measures to collect these taxes including attachment of bank accounts of defaulters and arrest of 'wilful' evaders under tax laws.
"Attention is drawn to the precarious situation arising out of comparison of total arrear demand outstanding and demand difficult to recover.
The situation is alarming and leaves only 3 per cent of the demand in the recoverable arena.
"Even more alarming is the situation that less than 5 per cent, Rs 2,39,95 crore, of the total arrear demand outstanding (Rs 4.82 crore) could be collected during the 2012-13 fiscal," the Central Board of Direct Taxes (CBDT) said in a recent communication to its top officers.
"The situation is surely not pleasant but the board and the I-T department are geared to pursue these cases vigorously.
The Parliamentary Standing Committee on Finance have time and again urged the Finance Ministry to minimise this revenue loss sector and steps are being taken. The results will soon show," a senior official who did not want to be named said.
The CBDT fears such huge arrears could "swamp" the I-T department and hence it has decided to track each one of the defaulting assessees and entities diligently to obtain the due taxes.
The board has tasked the special I-T recovery cell, created in 2010, to obtain more and more electronic data on people and assessees whose assets and properties are not traceable or have reported zero assets, from the Financial Intelligence Unit (suspicious transaction reports), CIBIL, National Stock Exchange, Registrar of Companies and get classified data on the financial transactions of evaders and defaulters.
The I-T, on the instructions of the board in this regard, has also started a Demand Management Fortnight to sort out more and more cases and get more revenue in the light of the fact that the government has asked the department to collect over Rs 6.68 lakh crore in direct taxes during 2013-14, up from Rs 5.65 lakh crore in the previous fiscal.
Deemed HUF property if it isn’t self-acquired by assessee and a portion is given to spouse without a
Govt Cuts Import Tariff Value Of Silver; Gold Unchanged
New Delhi: The government Thursday kept the import tariff value of gold unchanged at USD 421 per ten grams but reduced the base price of silver to USD 606 a kg in line with the global prices of the precious metals.
Tariff value is the base price on which the customs duty is determined to prevent under-invoicing.
The notification in this regard has been issued by the Central Board of Excise and Customs (CBEC).
The tariff value of gold was USD 421 per 10 gram and silver USD 709 per kg as per the CBEC notification on June 24.
India, the largest gold consumer in the world, imported 860 tonnes of gold in 2012. In the first three months of 2013 calendar year, import stood at 215 tonnes.
Gold import is expected at 350 tonnes in the current quarter, but is projected to decline to about 150 tonnes as the government has recently increased the import duty on gold to 8 percent from six percent.
The tariff value of various edible oils remains unchanged.
Meanwhile, the gold prices today recovered by Rs 120 to Rs 26,800 per 10 grams in the national capital on buying at existing lower levels amid a rebound in global markets.
Silver ready in national capital ruled flat at Rs 40,500 per kg while weekly-based delivery shed Rs 20 to Rs 39,570 per kg on lack of buying support from speculators.
Silver coins spurted by Rs 1,000 to Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.
Source:-zeenews.india.com
Rice Exports From India May Fall On Vietnam, Pakistan Sales
Rice exports from India, the world’s second-largest grower, may decline this year from a record as buyers turn to cheaper supplies from Vietnam and Pakistan, according to a traders’ group.
Shipments may fall 6 percent to 9.5 million metric tons in the year that started in April from 10.1 million tons a year earlier, said Vijay Setia, a former president and member of the All India Rice Exporters Association. Exports of non-basmati rice are estimated to drop 15 percent to 5.5 million tons, while overseas sales of aromatic basmati variety are set to jump 14 percent to 4 million tons, he said.
India’s government raised the minimum price it pays to growers to a record last year, making supplies from the country more expensive amid a global glut. Thailand’s plan to sell grain from state stockpiles may further depress prices, which are set for a second quarterly advance, said B.V. Krishna Rao, managing director of Pattabhi Agro Foods Pvt., an exporter.
“The government support mechanism is so strong in India that it’s difficult to match Vietnam and Pakistan,” Rao said by phone from Kakinada in Andhra Pradesh. “With the rupee falling to a record low, exporters have been forced to cut prices” and non-basmati shipments may slump to as low as 4 million tons should Thailand cut its export prices, he said.
Rupee Slump
The price of Indian parboiled rice, which accounts about 50 percent of the non-basmati exports, has been cut to $415 a ton from $435 a month earlier to cope with increasing competition, Rao said. Vietnam is offering 5 percent broken white rice at $370 a ton, while the Indian variety costs $440, he said. Thailand’s rice is at least $50 more than India, he said. India exports mainly to the Middle East and Africa.
Rough-rice futures for delivery in September on the Chicago Board of Trade was little changed at $15.56 per 100 pounds at 8:51 a.m. in Mumbai today. The rupee, which slumped about 10 percent this quarter, dropped to a record low of 60.765 per dollar on June 26.
The forecast for above average monsoon rainfall may boost planting of basmati rice in the main growing regions, Setia of the exporters’ association said.
“There is a heavy rush to buy basmati seeds in Punjab and Haryana and sales are estimated to have doubled from last year,” he said. The basmati rice production may rise to 8 million tons from 6 million tons a year earlier, he said.
India controls 65 percent of the overseas basmati market, while the only other producer Pakistan accounts for the rest, according to the state-run Agricultural and Processed Food Products Export Development Authority.
The monsoon, which accounts for more than 70 percent of India’s annual rainfall, was 37 percent above a 50-year average between June 1 and June 26, according to the weather bureau. The nation will receive normal rains during the June-September period, India Meteorological Department said June 14.
Source:-www.bloomberg.com
Minimum Support Price Of Kharif Crops Raised By Ccea
NEW DELHI: As sowing picks up across the country, the Cabinet Committee on Economic Affairs (CCEA) on Thursday approved increasing the minimum support prices (MSP) of kharif crops for 2013-14 crop year (July-June). The increase is expected to boost the sowing of paddy, cotton, oilseeds like soybean, millets and pulses crop in the country. On the basis of recommendations given by Commission for Agricultural Costs and Prices (CACP), the MSP is increased. However, the agriculture ministry changed the proposal for bajra and tur/arhar.
"The agriculture minister's recommendation has been accepted by the CCEA," said a person in the know after the CCEA meeting got over. The MSP of paddy, which constitutes more than 60% of the kharif crop in the country, has seen a Rs 60 increase at Rs 1,310 a quintal for common variety while for grade there has been a Rs 65 increase to Rs 1,345 per quintal.
Cotton prices for medium staple variety increased by Rs 100 to Rs 3,700 per quintal and Rs 4,000 per quintal for long staple.
Cotton sowing has been covered on 28.13 lakh hectares across the Northern and Western belt of the country. Currently prices in the spot market were ruling at 4,100 a quintal. Till June 21, kharif sowing picked up with the early onset of monsoon, crossing 109.07 lakh hectares, with maximum area under sugarcane at 44.55 lakh hectares, followed by cotton at 28.13 lakh hectares and paddy at 16.40 lakh hectares. The MSP of bajra as per agriculture ministry has been kept at Rs 1,250 per quintal, an increase of Rs 75 per quintal from the 2012-13 seasons. CACP had recommended no increase in the MSP for bajra this year.
Similarly, tur/arhar MSP price has been kept at 4,300, an increase of 450 from the original recommendation of CACP of Rs 3,850 a quintal. This is expected to lead to an increase in pulses acreage. Sources said that with imported pulses prices cheaper than the domestic price, there could be a likely 10% import duty imposed on the pulses to help the domestic farmers. Moong prices saw a rise of 100 to touch Rs 4,500 per quintal. Urad prices remain similar to the previous year with the MSP at Rs 4,300 per quintal. The increase has come at a time when annual rate of inflation based on wholesale price index fell to 43-month low at 4.7%. The MSP of yellow soyabean has seen a hike of Rs 320 to Rs 2,560 a quintal and for soyabean (black) to Rs 2,500 a quintal a rise of Rs 300.
The MSP of sesamum have been increased by Rs 300 per quintal over the last year's MSPs and have been fixed at Rs 4,500 per quintal. However, MSP of sunflower seed and nigerseed have been kept unchanged at Rs 3,700 per quintal and Rs 3,500 per quintal.
Source:-economictimes.indiatimes.com
Rupee Gains, Breaches 60/Dollar
MUMBAI: The rupee gained on Friday, breaching below 60 to the dollar, on hopes recent foreign investor selling could subside after comments from US Federal Reserve officials seen as supporting continued monetary stimulus sparked a global risk rally.
The rupee was at 59.91/92 to the dollar as against 60.19/20 Thursday close. It fell to a record low of 60.76 on Wednesday.
Source:-timesofindia.indiatimes.com
Port Project Will Not Affect Fish Habitat: Study
27-Jun-2013
THIRUVANANTHAPURAM: The ports and fisheries experts said that the proposed Vizhinjam international seaport will not adversely affect the eco fragile fish breeding grounds nor will it deplete the marine habitats off Vizhinjam coast.
A section of fishing community recently raised concerns over the possible impact on the 3,000-sq km fish breeding ground in the southern Kerala coastal area stretching up to Tuticoron coast -- known as the Wadge bank - due to the increasing marine traffic.
"Studies have shown that around 100 mega vessels pass over this Wadge bank every day and yet there is not visible impact on the breeding activity as this area has a draft of 40 meters and the ship movements do not create any problem for breeding," C Radha Krishnan, former additional director of fisheries department, said.
A comprehensive site analysis and prospects of Vizhinjam port -- based on the environment impact assessment report and master plan -- was released by Trivandrum development front (TDF) on Wednesday. The study pointed out that the port, when operational, will be a huge boost for state's economy.
"The economic study conducted by Deolite showed that there will be a cumulative cash flow of Rs 28,000 crore by 2050 and there will be a net product value of Rs 305 crore coming from primary income of fish export," Deepak Benny, senior maritime engineer, who was part of the TDF study, said.
He said the port is coming up at an ideal location and it will attract huge international marine traffic which moves from European nations all the way to Singapore and China.
"Partnership with major shipping firms will enable Vizhinjam port as a transshipment hub. Last year there was a cargo movement of around 8 million TEU. Currently these vessels do not stop in the Indian sub-continent though all these vessels sail a few nautical miles off Vizhinjam coast," he said.
The Vizhinjam port has a planned capacity to handle 3.5 TEU by 2044 and will have to compete with Colombo, Dubai, Salalah and Singapore ports.
"The proposed site chosen has the least impact and this analysis was based on 21 factors with high weightage on environmental, social and economic factors," N Appukuttan Pillai, retired ports engineer, a member of TDF, said.
He said the government needs to look at upgrading road network as there will be a huge container traffic and looking at the current state of the national highways it is going to be a huge issue
.
The port will have dedicated rail and road connectivity to transport goods and has included a modern fishing harbour with amenities like berthing facilities for fishing boats and hygienic auction hall.
The port is set to follow landlord port model. Dredging, reclamation and basic infrastructure such as construction of breakwater and quay will be done once the port gets an eco nod from ministry of environment and forest. Port operation will be on public private partnership model.
PORTFOLIO
The environment impact assessment report, master plan, detailed project report and shoreline assessment study have been submitted to the state pollution control broad for perusal
The public hearing for the port is set on June 29
The master plan has many environment-friendly parameters like using solar power for the port building complex and asking vessels anchored to plug into electric power provided by the port to reduce fuel and oil pollution along the coast
The port authorities will conduct annual environmental audit and self-regulate pollution levels
A modern fishing harbour and many projects for the fishing community are on the anvil
The port will ensure cash flow of Rs 28,000 crore by 2050
The port will follow landlord port model
Source:-timesofindia.indiatimes.com
Entities with functional dissimilarity to be excluded from comparables lists for ALP determination
India Exported 1.5 Million Endangered Fishes: Report
27-Jun-2013
KOLKATA: Bowing down to demands from the booming aquarium industry, India exported more than 1.5 million threatened freshwater fishes in the last seven years affecting the future of the country's aquatic diversity, says a report.
"More than 1.5 million freshwater fish belonging to 30 threatened species were exported from India during the years 2005-2012," says the study prepared by a group of scientists led by Kochi-based ecologist Rajeev Raghavan.
Published in the latest issue of international journal Biological Conservation, it says the trade in threatened species comprise 30 per cent of the total exports of at least five million aquarium fishes.
Of the 1.5 million threatened fishes, the major share was contributed by three species - Botia striata (Endangered), Carinotetraodon travancoricus (Vulnerable) and the Red Lined Torpedo Barbs (Endangered).
Most wild-caught aquarium fish originating from India come from two global biodiversity hotspots of Eastern Himalaya and Western Ghats, known for their remarkable freshwater biodiversity and endemism, says Raghavan, involved with the Conservation Research Group at Kochi's St Albert's College.
With the reported aquarium fish trade exports from India were worth in excess of 1.6 million USD for the seven-year period, the scientists warn that the collection of fish for aquarium pet trade in such large numbers is a major threat to its wild population.
Source:-economictimes.indiatimes.com
Fci Exports 4.19 Mn Tonnes Wheat; To Earn Over Rs 7,000 Crore
27-Jun-2013
NEW DELHI: State-run Food Corporation of India (FCI) has exported 4.19 million tonnes of wheat, valued at more than Rs 7,000 crore, in the past one year.
Due to surplus wheat stock, the government had permitted FCI to export 4.5 million tonnes of the grain in July last year. The deadline for export is June 30, this year.
"The export process has been completed. We have received bids for 4.19 million tonnes, which will fetch more than Rs 7,000 crore at an average price of about USD 310 per tonne" a senior FCI official said.
Out of 4.19 million tonnes, a major quantity has already been shipped to South Korea, Ethiopia, Bangladesh, Yemen, Thailand and Indonesia, he said.
Maximum wheat has been exported to South Korea at one million tonnes. Small quantities of wheat were also shipped to Vietnam, Malaysia, Philippines and the Middle East.
The official said that no profits were made from exports but indirect saving on carrying and storage cost of wheat to the tune of about Rs 1,000 crore was made.
The last wheat export tender was floated during third week of June for about 2,90,000 tonnes but received bids for only 70,000 tonnes, he added.
The FCI official said good price for Indian wheat was received in line with Australian soft wheat, considered as the best in the world. "There is greater acceptability of our wheat in the global market now," he added.
The official, however, observed that the FCI could have secured higher price if handling process was fully mechanised.
The FCI is currently handling 77 million tonnes of foodgrains, of which 4.43 million tonnes is wheat.
Source:-economictimes.indiatimes.com
Rbi Tightens Gold Import Norms Again
MUMBAI: The Reserve Bank of India squeezed gold buyers further on Thursday, ruling out any credit transactions for imports unless they were intended to make jewellery for export, as it looks to rein in a record current account deficit. The RBI said the restrictions would also apply to imports of gold which do not have a fixed price. "In other words (authorised dealers and banks) are required to ensure that credit in any form or name is not enabled for import of any form of gold," the bank said.
The central bank added that imports of gold using loans could continue for lending to exporters of jewellery.
In its statement on Thursday, the central bank said imports of gold against both suppliers' credit and buyers' credit would now have to toe the line of 100 percent cash margins. These credits facilitate the funding for gold purchases.
Gold imports hit a record 162 tonnes in May as Indians swooped to take advantage of hefty price falls, rattling the government and the central bank which are keen to rein in a current account deficit which hit an all-time high of 4.8% in 2012/13. Since May, the government has raised the import duty on gold to 8 percent and the central bank has turned the screws on supplies, forcing Indians to use cash only to buy and limiting purchases mainly to jewellery.
Source:-economictimes.indiatimes.com
FIIs intending to hedge sub-account holder to provide holder's mandate for entering into hedge trans
ITAT cites from Taxmann's ‘Interpretation of Statutes’; retro effect couldn’t be given to prospectiv
ECB policy - Eligible NR entities can provide credit enhancement to domestic debt raised through INR
'Import of services, technical know-how and payment of license fees' for infra sector permitted for
RBI allows 30 days to file prescribed forms by entities undertaking project exports and service cont
Tiny pen drive enough to pin you down - ITAT accepts pen drive as an admissible evidence in IT proce
Transferor-company won’t be amenable to assessment proceeding after date of amalgamation
Customs Circular No 24/2013 dated 27-06-2013
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Circular No. 24 / 2013 - Customs
229-A, North Block, New Delhi
27th June, 2013
To
All Chief Commissioners of Customs/ Customs (Prev.)/ C&CE,
All Directors General of CBEC,
All Commissioners of Customs / Customs (Prev.) / C&CE
All Commissioners of Customs & Central Excise (Appeals).
Sir / Madam,
Subject: Classification of Elements of Filters of Heading 8421 – reg.
The Board has noted that while majority of import data in National Import Data Base shows that “elements of Filters” are being classified under Tariff Item 84219900 as parts of Filters. These articles are also being classified under other Tariff Items viz. 39269099, 48120000, 48239090, 59119090, 68159990, 69091910, 73269099, etc. Therefore, Board has examined the matter with a view to provide clarity in classification of said articles under the Customs Tariff Act, 1975.
- Heading 8421 of the Customs Tariff applies to, “Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases”. The scope of parts of articles covered by the said Heading 8421 is explained in the World Customs Organization’s Harmonized Commodity Description and Coding System Explanatory Notes. These Explanatory Notes present an internationally accepted view of the scope of each Heading of the Customs Tariff. In this context, the Explanatory Note to Heading 84.21 provides that:
“Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), the heading covers parts for the above-mentioned types of filters and purifiers. Such parts include, inter alia:
Leaves for intermittent vacuum filters; chassis, frames and plates for filter presses; rotary drums for liquid or gas filters; baffles and perforated plates, for gas filters.
It should be noted, however, that filter blocks of paper pulp fall in heading 48.12 and that many other filtering elements (ceramics, textiles, felts, etc.) are classified according to their constituent material. ” (emphasis provided)
- Thus, it emerges that elements of Filters are to be classified as per their constituent material. For instance, elements (of Filters) that are made up of paper would be classified in Headings 4812 or 4823; if made up of textile material for technical use then in Heading 59.11; if made up of glass then in Heading 70.19; etc. Filters by themselves would be classified under Heading 84.21.
- Board desires that suitable instructions regarding the correct classification of elements of Filters may be issued to the field formations. Difficulty faced, if any, may be brought to notice of the Board.
Yours faithfully,
(Subodh Singh),
OSD (Customs), Tariff Unit
Fax: 011 – 23092173
F. No. 528/93/2012-STO (TU)
Internal circulation – As usual.
Toll charges collected by assessee under a scheme of ‘Built Operate and Transfer’ couldn’t be charge
RBI//2012-13/554 A.P. (DIR Series) Circular No.121 dated 26-06-2013
Reserve bank of India
A.P. (DIR Series) Circular No.121
June 26, 2013
To
All Authorised Dealer Category - I Banks
Madam / Sir,
Risk Management and Inter Bank Dealings
Attention of Authorized Dealers Category – I (AD Category - I) banks is invited to section C of the Annex to A.P.(DIR Series) Circular No. 32 dated December 28, 2010 on Comprehensive Guidelines on ‘Over the Counter (OTC) Foreign Exchange Derivatives and Overseas Hedging of Commodity Price and Freight Risks’ in terms of which FIIs have been permitted to hedge the currency risk on the market value of their entire investment in equity and/or debt in India.
- Under the provisions of the said section, AD Category I banks are required to verify on a periodical basis that the forward cover outstanding is supported by underlying exposures. In this context, it is clarified that in case an FII intends to hedge the exposure of one of its sub-account holders, (cf paragraph 4 of schedule 2 to Notification No. FEMA 20 /2000-RB dated 3rd May 2000 ) it will be required to produce a clear mandate from the sub-account holder in respect of the latter’s intention to enter into the derivative transaction. Further, the AD Category I banks shall have to verify the mandate as well as the eligibility of the contract vis-a-vis the market value of the securities held in the concerned sub-account.
- AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
- 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
(Rudra Narayan Kar)
Chief General Manager in-Charge
RBI//2012-13/554
CIT can’t reject application for sec. 264 revision merely because assessee has an alternative remedy
RBI/2012-13/548 A.P. (DIR Series) Circular No. 118 dated 26-06-2013
Reserve bank of India
A.P. (DIR Series) Circular No.118
June 26, 2013
To
All Authorised Dealer Category - I Banks
Madam / Sir,
Export of Goods and Services – Project Exports
Attention of Authorized Dealers is invited to Para B.7 (i) and C.5 (i) of Memorandum of Instructions on Project and Service Exports (PEM), enclosed to A.P.(DIR Series) Circular No.32 dated October 28, 2003 , in terms of which an exporter undertaking Project Exports and Service contracts abroad should submit form DPX1, PEX-1 and TCS-1 to the Approving Authority (AA) i.e. AD Bank/ Exim Bank/ Working Group, within 15 days of entering into contract for grant of post-award approval.
- On a review, it has been decided to increase the time limit and henceforth the exporter undertaking Project Exports and Service contracts abroad should submit form DPX1, PEX-1 and TCS-1 to the Approving Authority (AA) i. e. AD Bank / Exim Bank / Working Group, within 30 days of entering into contract for grant of post-award approval.
- All other instructions issued in terms of PEM, notified vide A. P. (DIR Series) Circular No. 32 dated October 28, 2003 , shall remain unchanged.
- Authorized Dealers may bring the contents of this circular to the notice of their exporter constituents and customers concerned.
- 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,
(C. D. Srinivasan)
Chief General Manager
RBI/2012-13/548
RBI/2012-13/552 A.P. (DIR Series) Circular No.119 dated 26-06-2013
Reserve bank of India
A.P. (DIR Series) Circular No.119
June 26, 2013
To
All Authorised Dealer Category - I Banks
Madam / Sir,
External Commercial Borrowings (ECB) Policy – Import of Services, Technical know-how and License Fees
Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, notified vide Notification No. FEMA 3/2000-RB dated May 3, 2000 and the A.P. (DIR Series) Circular No. 5 dated August 1, 2005 relating to the External Commercial Borrowings (ECB), as amended from time to time.
- As per the extant guidelines, eligible borrowers can raise ECB for investment such as import of capital goods (as classified by DGFT in the Foreign Trade Policy), new projects, modernization / expansion of existing production units in the real sector – industrial sector including small and medium enterprises (SME), infrastructure sector as defined under the ECB policy and entities in service sector viz. hotels, hospitals and software companies.
- On a review, it has been decided to include import of services, technical know-how and payment of license fees as part of import of capital goods by the companies for the use in the manufacturing and infrastructure sectors as permissible end uses of ECB under the automatic / approval route as the case may be subject to:
- there should be a duly signed agreement between the service provider and the borrower company;
- the original invoice raised by the service provider as per the payment schedule in the agreement should be duly certified by the borrower company;
- declaration by the importer that the entire expenditure on import of services will be capitalised;
- declaration by the importer that entire expenditure on import of services forms part of project cost; and
- AD category – I bank has to ensure the bonafides of the transaction.
- The above modifications to the ECB guidelines will come into force with immediate effect. All other aspects of the ECB policy, such as eligible borrower, recognized lender, end-use, all-in-cost ceiling, average maturity period, prepayment, refinancing of existing ECB and reporting arrangements etc. shall remain unchanged.
- AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers.
- 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
(Rudra Narayan Kar)
Chief General Manager in-Charge
RBI/2012-13/552
Customs Notification No. 13/2013-Customs (ADD) dated 25-06-2013
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 13/2013-Customs (ADD)
New Delhi, dated the 25th June, 2013
G.S.R. (E). -Whereas, the designated authority vide notification No. 15/19/2012-DGAD, dated the 25th April, 2013, published in Part I, Section 1 of the Gazette of India, Extraordinary, dated the 25th April, 2013, had initiated review, in terms of sub-section (5) of section 9A of the Customs Tariff Act, 1975 (51 of 1975) and in pursuance of rule 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 (hereinafter referred to as the said rules), in the matter of continuation of anti-dumping duty on ‘Pentaerythritol’, falling under heading 2905 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, Chinese Taipei imposed vide notification of the Government of India, in the Ministry of Finance (Department of Revenue),No. 74/2011-Customs, dated the 12th August, 2011 , published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 623 (E), dated the 12th August, 2011, and has requested for extension of anti-dumping duty upto one more year, in terms of sub-section (5) of Section 9A of the said Customs Tariff Act;
Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the said Act and in pursuance of rule 23 of the said rules, the Central Government hereby makes the following amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 74/2011-Customs, dated the 12th August, 2011 , published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 623 (E), dated the 12th August, 2011, namely: -
In the said notification, in paragraph 2, for the words and figures “27th April, 2013”, the words and figures “27th day of April, 2014, unless revoked earlier” shall be substituted.
F.No.354/29/2002-TRU (Pt-II)
(Akshay Joshi)
Under Secretary to the Government of India
Note: The principal notification No. 74/2011-Customs, dated the 12 th August, 2011 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 623 (E), dated the 12th August, 2011.
Penalty order set-aside, as AO didn't come to a finding on the reason for leviability of penalty
Customs Notification No.12 /2013-Customs (ADD) dated 25-06-2013
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No.12 /2013-Customs (ADD)
New Delhi, dated the 25th June, 2013
G.S.R. (E). -Whereas, the designated authority vide notification No. 15/30/2013-DGAD, dated the 6th June, 2013, published in Part I, Section 1 of the Gazette of India, Extraordinary, dated the 6th June, 2013, had initiated review, in terms of sub-section (5) of section 9A of the Customs Tariff Act, 1975 (51 of 1975) and in pursuance of rule 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 (hereinafter referred to as the said rules), in the matter of continuation of anti-dumping duty on ‘Acetone’, falling under heading 2914 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, Korea RP imposed vide notification of the Government of India, in the Ministry of Finance (Department of Revenue),No. 75/2008-Customs, dated the 10th June, 2008 , published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 447 (E), dated the 10th June, 2008, and has requested for extension of anti-dumping duty upto one more year, in terms of sub-section (5) of section 9A of the said Customs Tariff Act;
Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the said Act and in pursuance of rule 23 of the said rules, the Central Government hereby makes the following amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 75/2008-Customs, dated the 10th June, 2008 , published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.447 (E), dated the 10th June, 2008, namely: -
In the said notification, after paragraph 2, the following paragraph shall be inserted, namely: -
“3. Notwithstanding anything contained in this notification, the anti-dumping duty imposed herein shall remain in force up to and inclusive of the 9th day of June, 2014, unless revoked earlier.”
F.No.354/10/2008-TRU (Pt-I)
(Akshay Joshi)
Under Secretary to the Government of India
Note: The principal notification No. 75/2008-Customs, dated the 10th June, 2008 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 447 (E), dated the 10th June, 2008.