The National Disaster Management Authority (NDMA), Government of India has formulated guidelines on ensuring disaster resilient construction of buildings and infrastructure financed through banks and other lending institutions (A copy of NDMA guidelines of September 2010 is enclosed). The NDMA has observed that in the context of disaster resilience there are certain critical gaps and the guidelines aim at addressing these gaps in the current process of approving the loan applications. It has been observed that the structural design of the proposed buildings and structures are not completed before submitting the application for a bank loan and no processes are in place at the banks to ensure that disaster resilience has indeed been incorporated in the assets during the design process at least before the construction begins. DBOD.Dir.BC.No.93 /08.12.14/ 2010-11, May 12, 2011
It has come to the notice of the Ministry that some companies are making applications for getting prior approval of Central Government when they propose to make any loan to, or give any guarantee or provide any security in connection with a loan made by any other person to a Public Limited Company of which any such Director is a Director or a member even when the proposal does not fall under Section 295(d) and Section 295(e) of the Companies Act, 1956. General Circular No. 24/2011, Dated: – 12th May, 2011
Please refer to our Circular UBD.PCB.Cir.No.11/09.09.01/2007-08 dated August 30, 2007 forwarding therewith the guidelines for UCBs on lending to priority sector. In terms of item (vi) under ‘Categories of Priority Sector’ and also para 7.1 of section I of Annex of the above Circular, loans up to Rs.20 lakh irrespective of location, to individuals for purchase / construction of dwelling unit per family, excluding loans granted by banks to their own employees are eligible for classification under priority sector.
Circular No. 139/8/2011-TRU, New Delhi, the 10th May 2011 Since the levy of service tax on the two new services relating to services provided by specified restaurants and by way of short-term hotel accommodation came into force with effect from 1st May 2011, a number of queries have been raised by the potential tax payers.
It has been noticed that several reports are received by the Judicial & Review Section and the Legal Section of the Board as well as the Directorate of Legal Affairs (DLA) in matters relating to litigation. Many of the reports contain similar or identical information and some of them have outlived their utility and are not required any more. The multiplicity of such reports, duplication of work in preparing similar reports for different wings of the Board leads to waste of priceless resources. This was also discussed in the Annual Conference of the Chief Commissioners and Directors General held in June 2010 in New Delhi. It has, therefore, been decided to call for a comprehensive monthly report as part of the Monthly Technical Report (MTR) being sent by the field formations in matters concerning Legal and Judicial Sections of the Board as well as the Directorate of Legal Affairs (DLA).
CIRCULAR NO. 138/07/2011 The Works Contract service (WCS) in respect of construction of Dams, Tunnels, Road, Bridges etc. is presently exempt from service tax. WCS providers engage subcontractors who provide services such as Architect‟s Service, Consulting Engineer‟s Service, Construction of Complex Service, Design Services, Erection Commissioning or Installation Service, Management, Maintenance or Repair Service etc. The representation by assessee sought to extend the benefit of such exemption .
In the context of recent developments, it has been decided that Suppliers’ and Buyers’ credit (trade credit) including the usance period of Letters of Credit opened for import of rough, cut and polished diamonds should not exceed 90 days from the date of shipment. The revised directions will come into force with immediate effect. RBI/2010-11/514 A.P. (DIR Series) Circular No. 59 May 06, 2011
Circular No.22/2011-Customs The Comptroller & Auditor General of India (C&AG) had conducted a review of the working of ‘Project Imports’ scheme with a view to ascertaining the level of compliance, effectiveness of internal control and whether finalization has been done by field formations within a reasonable time frame. The audit review has revealed some systemic as well as compliance weaknesses relating to grant of project imports benefits and finalization of project imports cases. The C&AG has taken a serious view on the weak monitoring of the Project Imports and on the substantial delay in finalization of Project Imports as detailed in their Performance Audit Report No. PA 24 of 2009-10. In the light of various shortcomings pointed out in their report, the C&AG has recommended for a comprehensive review of the working of the scheme including the internal control and monitoring mechanism in vogue which govern the project imports, and to further strengthen this mechanism.
To give effect to the Budget proposals, a Bill (Legislative Assembly Bill No. XVII of 2011) to amend the Maharashtra Value Added Tax Act, 2002 was introduced in the Legislature. The said Bill has been passed by both the houses of the Legislature. The Act is now published in the Maharashtra Government Gazette dated 21st April 2011.
Mumbai, Dt. 04.05.2011 A Scheme for taxation of liquor was announced in the budget for 2011-12 by the Hon’ble Dy. Chief Minister. To give effect to this, amendments are made to the Maharashtra Value Added Tax Act, 2002 and Rules, 2005. The Scheme and the amendments are as follows:
