he Reserve Bank of India today released a working paper – 19th in the series – titled ‘QE-II and FII inflows into India – Is there a connection?’ Working Paper series of the Reserve Bank of India was introduced in April this year to provide a platform to the Reserve Bank Staff for presenting their research studies as well as to receive feedback from informed researchers. Papers published under ‘Working Papers’ Series are quick analytical research papers on issues and challenges of contemporary relevance to the Reserve Bank. Unlike Occasional Papers, another research publication of the Reserve Bank which are published with specific periodicity, the Working Papers are published, as and when ready and only in digitised form. Views presented in Working Papers are the views of the author and do not represent the views of the Reserve Bank of India. The recent Global Financial Crisis (GFC) caused decline in output in many countries around the world. In response to the GFC, expansionary fiscal and accommodative monetary policies were followed. Faced with near zero interest rates, a few developed economies undertook large scale purchase of government securities to support the economy. Between November 2008 and March 2010, the US Fed purchased a large amount of assets to prop-up the US economy.
A reference is invited to our circular IDMD.PCD.No. 5053 /14.03.04/2010-11 dated May 23, 2011 enclosing the Guidelines on Credit Default Swaps (CDS) for Corporate Bonds wherein it was indicated that Market-makers shall report their CDS trades with both users and other market-makers on the reporting platform of CDS trade repository within 30 minutes from the deal time. 2. It is advised that all market makers shall report their CDS trades in corporate bonds within 30 minutes of the trade to the Clearing Corporation of India Limited (CCIL) trade repository CCIL Online Reporting Engine (CORE) beginning December 1, 2011.
RBI/2011-12/285 Please refer to guidelines on single name Credit Default Swaps on corporate bonds issued vide Circular No. IDMD.PCD.No.5053/14.03.04/2010-11 dated May 23, 2011. As indicated in the paragraph 3.5 of the circular, market participants will have to follow the capital adequacy guidelines for CDS issued by their respective regulators. Accordingly, guidelines on capital adequacy, exposure norms and provisioning to banks undertaking CDS transactions are enclosed as Annex.
In view of the timelines attached to the implementation of EBT for routing MGNREGA wages and social security benefits including proposed cash transfers in respect of subsidies on Kerosene, LPG and Fertilisers, you are requested to ensure opening of Aadhaar Enabled Bank Accounts (AEBA) of all the beneficiaries including those residing in villages with less than 2000 population.
Notification No. 85 / 2011 – Customs (N. T.), The Principal notification was published in the Gazette of India, Extraordinary, vide Notification No. 36/2001 – Customs (N.T.), dated, the 3rd August, 2001 (S. O. 748 (E), dated, the 3rd August, 2001) and was last amended vide Notification No. 78/2011-Customs (N.T.), dated, the 15th November, 2011 (S. O. 2579 (E) dated 15th November, 2011).
Notification No. 105 /2011 – Customs -In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 21/2002-Customs, dated the 1st March, 2002, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 118(E) dated the 1st March, 2002, namely :-
Pitney Bowes India Pvt Ltd vs. CIT (Delhi High Court) – Assessee itself treated the expenditure as capital in the books of accounts. However, at the same time, it was maintained that since it was paid for loss of business that KOAL would suffer for non-compete fee, the same was treated as revenue in nature. Likewise, in Schedule 2 to the balance sheet disclosing ‘fixed assets’, payment of non‑compete fee is treated as ‘intangible assets’. This also shows that the assessee treats this as asset acquired, which is intangible in nature. The issue regarding forwarding of payment was discussed by the Special Bench of the Tribunal in M/s Tecumesh India Pvt. Ltd. (supra) in greater details and after applying the ratio of various judgments of different High Courts including jurisdictional Court as well as the Supreme Court, the Tribunal summarized in the following terms:
A.F. Ferguson & Co. Vs. The Asstt. Commissioner of Income tax – The dispute is regarding allowability of deductions on account of payments made by the assessee to the retired partners and wives of deceased partners while computing the total income. The payments had been made under the provisions of partnership deed.
In accordance with the decisions taken by the Government on the basis of the recommendations of the Committee for Comprehensive Review of National Small Savings Fund (NSSF), headed by Smt Shyamala Gopinath, the then Deputy Governor, Reserve Bank of India, Notifications on changes made in various small saving schemes except 10-Year National Savings Certificate, have already been issued on 25th November 2011.
Adjudication of offences under the Central Excises Act, 1944, or the Customs act 1962 or the Finance Act, 1994 (Service Tax) are important functions of the officers of the Central Excise, Customs and Service Tax competent to adjudge offences. It seeks to ensure that no economic loss is caused by the alleged contravention by the imposition of an appropriate penalty after an adjudication. If an innocent person is punished or the punishment is more than warranted by the nature of offence it may undermine the trust between the government and the public.
