INDEX Direct Taxation Indirect Taxation International Trade Corporate & Other Laws

1. TM We are dependable and trustworthy knowledge processing partner. Although we are a separate entity, we are an integrated part of your organization, like a slice of a wholesome pie. NEWSLETTER – OCTOBER 2011

2. INDEX • Direct Taxation • Indirect Taxation • International Trade • Corporate & Other Laws • Statutory Due Dates for October 2011 TM Newsletter –October 2011

3. DIRECT TAXATION Index • Due date for filing ITR – V extended The due date for submission of ITR-V for A.Y. 2011-12 has been extended upto 31.10.2011 or 120 days from the date of upload whichever is later. ITR -V is the acknowledgement of the Income tax return filed electronically. TM Newsletter – October 2011

4. INDIRECT TAXATION Index Electronic Filing of Service Tax Returns The Government of India vide Notification no. 22/2011-CE(NT),made it mandatory for every assesses to file the excise return (ER-1 to ER-8)electronically. The amendment will come into force from 1st October 2011. TM Newsletter – October 2011

5. INTERNATIONAL TRADE Index • Liberalization of policies by RBI for NRIs and PIOS • To grant additional privileges to NRIs/PIOS by virtue of flexibility in operation and simplifying transactions, the Reserve Bank of India has further liberalized its policies. • In this, the RBI has simplified maintenance of various accounts, acquisition of securities and dealing in rupees and has further facilitated provisions relating to joint account holding, transfer of securities/ rupees by way of gift to NRIs/PIOS and other expenses borne on behalf of NRIs/PIOs. • The brief circulars are as follows: • NRIs/ PIOs allowed to open FCNR(B)/NRE accounts jointly with a resident close relative, as defined in Section 6 of the Companies Act, 1956. However, such resident joint account holder shall be eligible to operate the account as a Power of Attorney holder in accordance with extant instructions during the lifetime of the NRI/ PIO account holder. • RBI has granted general permission to individual residents in India to gift shares / securities /convertible debentures, etc. to their NRI/PIO close relative (relative as defined in Section 6 of the Companies Act, 1956) subject to certain prescribed conditions. The limit is been raised to US$50000 (instead of US$25000) during the calendar year. • RBI has permitted holding of RFC / EEFC accounts jointly with a resident close relative, as defined in Section 6 of the Companies Act, 1956. However, such joint account holder shall not be permitted to operate that account during the lifetime of the resident account holder. TM Newsletter – October 2011

6. RBI has permitted the sale proceeds of FDI Investments to be credited to NRE/ FCNR accounts . • RBI has permitted the resident individual to make a rupee gift to a NRI/PIO who is a close relative of the resident individual by way of crossed cheque /electronic transfer within overall limit of USD 200,000 per financial year • RBI has granted general permission to resident individuals to provide interest free rupee loans to their close relatives who are NRI/PIO with maximum maturity of one year for any personal purpose or business activities by way of crossed cheque /electronic transfer. • RBI has extended the general permission to resident Individuals to make the repayment of loans availed by the NRI/ PIO(s) from an authorized dealer by crediting the borrower’s loan account through the bank account of such relative. Prior to this notification, such facility was restricted only to the Housing Loans. • RBI has, in addition to the meeting expenses on account of boarding, lodging and travelling expenses, permitted the resident Indians to bear the medical expenses of visiting close relatives who are NRIs/ PIOs. TM Newsletter – October 2011

7. Foreign Direct Investment (“FDI”) policy • The government of India issued the consolidated circular No.2 of 2011updating the Foreign Direct Investment Policy effective from 1st October 2011. The major amendments are as follows: • Equity instruments (such as fully convertible debentures)  issued  or  transferred to non-residents with in-built options of any type  would not qualify as eligible instruments for FDI and would have to comply with extant ECB guidelines. • Issue of equity shares against import of capital goods /machinery would be  permitted if application to Foreign Investment Promotion Board ("FIPB") is made within a period of 180 days from the date of import. The same condition is applicable for  Capitalisation   of   pre-operative/pre-incorporation  expenses. • Definitions of foreign owned, foreign controlled, investment and concept of foreign investment are remmoved. •  FDI  in construction development activities in the education sector and in  respect  of  old-age  homes  has  been  exempted from the conditionalities  imposed  on  FDI  in  the  construction development sector in general. •  An additional condition has been introduced in the FDI policy to allow only brand owners to invest in single brand retail operations in India. • Limit for foreign investment in  terrestrial broadcasting/FM radio has been revised to 26%. • FDI in ‘apiculture’ permitted under controlled conditionsand definition of Industrial activity is widned. • There is also introduction of provisions on pledging of sahres, opening of non-interest bearing escrow accounts and FDI in LLPs. TM Newsletter – October 2011

8. CORPORATE AND OTHER LAWSIndex • New Takeover Regulations • Vide Notification dated September 23, 2011, Market watchdog SEBI has notified the much awaited New Takeover Regulations namely SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (hereinafter referred to as “SEBI (SAST) Regulations, 2011”) which will replace the existing Takeover (SAST) Regulations, 1997. The new Regulations shall come into force on the 30th day from the date of their publication in the Official Gazette i.e. w.e.f. October 22, 2011, any acquisition or sale of shares of Listed Company shall be governed by provisions of SEBI (SAST) Regulations, 2011 . TM Newsletter – October 2011

9. STATUTORY DUE DATES FOR OCTOBER 2011 Index • Statutory Due Dates Calendar for October 2011 TM Newsletter – October 2011

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