Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to A.P.(DIR Series) Circular No. 39 dated December 8, 2008 and A.P. (DIR Series) Circular No. 58 dated March 13, 2009 on the captioned subject. In terms of Para 4 B of A.P (DIR Series) Circular No. 39 dated December 8, 2008, Reserve Bank has been considering proposals from Indian companies for buyback of FCCBs out of their internal accruals, under the approval route up to a total amount of USD 50 million of the redemption value per company, subject to a minimum discount of 25 per cent on the book value.
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 is without prejudice to permissions/approvals, if any, required under any other law.
As announced in Para 107 of the Annual Policy Statement 2009-10 and considering the continuing pressure on credit spreads in the international markets, it has been decided to extend the relaxation in all–in-cost ceilings, under the approval route, until December 31, 2009. This relaxation will be reviewed in December 2009.
In terms of rule 3 (2) (a) of the Export of Services Rules 2005, a taxable service shall be treated as export of service if “such service is provided from India and used outside India” Instances have come to notice that certain activities, illustrations of which are given below, are denied the benefit of export of services and the refund of service tax under rule 5 of the Cenvat Credit Rules, 2004 [notification No. 5/2006-CE (NT) dated 14.03.2006] on the ground that these activities do not satisfy the condition ‘used outside India’
Uniformity in dividend declaration – Insertion of clause 20A It has been decided to mandate that listed companies shall declare their dividend on per share basis only.
The Working Group on Central Excise and Service Tax re-engineering, constituted by the Board has prepared a Return Scrutiny Manual for Service Tax (RSMST). The said manual has been approved by the Board and a copy of the same is enclosed herewith. Circular No.113/07/2009-ST dated the 23rd April, 2009.
Further, it may be noted that in terms of Regulation 2 of Notification No. FEMA 20/2000-RB dated May 3, 2000, as amended from time to time, “preference shares” mean compulsorily and mandatorily convertible preference shares and “debenture” means compulsorily and mandatorily convertible debentures.
Trade Cir. 15 T of 2009 In Trade Circular No 16T of 2008, a relaxation had been granted that in view of the difficulties likely to be faced by the dealers in the initial stages, the dealers were allowed to upload the e returns within 10 days from the due date for the filing of respective return. This concession was applicable only for the returns to be filed for the months of May 2008 to September 2008.Such e returns uploaded within 10 days from the due date were not to be treated as late, if the payment of due tax was made before the due date of the paper returns.
Circular No. CFD/DIL/DIP/35/2009/20/04 – ith the opening of a Western Regional Office at Ahmedabad, the allocation of regions for processing of draft offer documents for public/ rights issues, stands modified. 2. Accordingly, in exercise of the powers conferred under sub-section (1) of Section 11 of the Securities and Exchange Board of India Act, 1992, it has been decided to amend Schedule XXII of the SEBI (Disclosure and Investor Protection) Guidelines, 2000 (hereinafter referred to as “the SEBI (DIP) Guidelines”) vide this circular, as indicated in Annexure I.3. Merchant Bankers are therefore advised to file the draft offer documents of size up to Rs. 50 crores, of the companies whose registered office falls in Gujarat and Rajasthan, with the regional office of SEBI in Ahmedabad, at the following address:
The Department of Food & Public Distribution, Ministry of Consumer Affairs, Food & Public Distribution, have intimated that the Central Government w.e.f. 1.1.2001 had been regulating the export of sugar through export release order mechanism issued by the Directorate of Sugar. In view of the excess production of sugar in 2006-07 and 2007-08 sugar seasons and also to facilitate expeditious export of sugar. The requirement of obtaining release orders from the Directorate of Sugar for export of sugar was dispersed with vide Notification No. S.O.4310-(E) dated 31.7.2007 upto 30.09.2008 which was subsequently extended vide Notification No. S.O 2709 (E) dated 21.11.2008 upto 31.12.2008 or till further orders in respect of exports under OGL and till further orders in cases of exports under advance authorization schemes.
