In April 2009, dealers with six monthly tax liability are also being covered under the scope of e returns for the period ending 31st March 2009. Thus, in the month of April 2009, all the VAT dealers in Maharashtra would be uploading e returns. Perhaps, this could be first time in the history of Indian taxation, that such a large number of dealers would be filing e returns.
The matter has been examined. Accordingly, to address the grievance of importers, arising out of this confusion, it is clarified that the import clearance without a licence may be allowed for the item, Hot Rolled Products not in Coils covered under ITC(HS) Code 7208, which have been imported during the period 21.11.2008 (date of issue of Notification No.63) to 18.2.2009 (date of issue of clarification).
To ensure that no unwanted material is imported under the garb of waste paper during this interim period (till the consignments are received along with pre-shipment inspection certificate), Customs would carry out a higher percentage physical examination of imported cargo, than normally prescribed by them under the rules.
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.
