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In a breather to telecom and mining companies, the finance ministry has clarified that the service tax proposed on auctioning of natural resources, including telecom spectrum, will be imposed prospectively for transfer of rights by the government taking place after April 1. Besides, in what could benefit the cash flow of mining companies and telecom service providers (TSPs), the government has also allowed availing of input tax credit on service tax paid in three years, as against the earlier proposal of spreading it over the period for which rights are issued — 20 years in the case of spectrum. “By these measures, the government has ensured that there is no new tax liability on the TSPs in respect of the services provided in the past,” the ministry said on Thursday. The effective service tax rate is 15 per cent, including 0.5 per cent each of the Swachh Bharat cess and  Krishi Kalyan cess. The clarification comes a year after minister Arun Jaitley had proposed a levy on “all ser

www.caonline.in News... 1.Extension of time for CEP Credit Hours for renewal of COP. 2.Delhi VAT: amendment in form DVAT 16, 17, 30, 31 w.e.f. 12.04.2016. 3.Anti-dumping duty on normal butanol or N-butyl alcohol. 4.RBI clarified by circular no. RBI/2015-16/371 A.P. (DIR Series) No. 59 dated 13-04-2016 that keeping deposits with an indian company by persons resident outside India in accordance with section 160 of the Co. Act, 2013 is a current account (payment) transaction as such does not require any approval from RBI. 5.Extension of last date to 10.05.16 for various e-forms having due date between 25.03.16 to 30.04.16:MCA circular no. 03/2016. For more News Like us on https://www.facebook.com/caonlineofficial Or Subscribe on mail visit : www.caonline.in

RBI/2015-16/373 A.P. (DIR Series) Circular No.61 April 13, 2016 To All Category - I Authorised Dealer Banks Madam/Sir, Overseas Direct Investment - Submission of Annual Performance Report Attention of the Authorised Dealer (AD - Category I) banks is invited to the Notification No. FEMA 120/RB-2004 dated July 7, 2004 [Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2004] (the Notification), as amended from time to time. Attention of AD Category – I banks is also invited to A. P. (DIR Series) Circular No. 68 dated June 01, 2007 on Rationalisation of Forms, A. P. (DIR Series) Circular No. 29 dated September 12, 2012 on rationalisation of guidelines relating to submission of the Annual Performance Report (APR), A. P. (DIR Series) Circular No. 24 dated August 14, 2013 on Liberalised Remittance Scheme (LRS) by Resident Individuals under which they were allowed to set up JV / WOS outside India and para B.14 of FED Master Direction

RBI/2015-16/371 A.P. (DIR Series) Circular No.59 April 13, 2016 To All Authorised Dealer Banks Madam / Sir, Acceptance of deposits by Indian companies from a person resident outside India for nomination as Director Attention of Authorised Dealers Banks is invited to Regulation 3 of the Foreign Exchange Management (Deposit) Regulations, 2016, notified vide Notification No. FEMA 5(R)/2016-RB dated April 1, 2016, in terms of which no person resident in India shall accept any deposit from, or make any deposit with, a person resident outside India. 2. Under section 160 of the Companies Act, 2013, it is provided that a person who intends to nominate himself or any other person as a director in an Indian company is required to place a deposit with the said company. In this context, it has come to the notice of the Reserve Bank that there is ambiguity whether such deposits will require any specific approval from the Reserve Bank under Notification No. FEMA 5(R), in cases where

The Securities and Exchange Board of India (Sebi) has asked the commodity market advisory committee headed by Ramesh Chand, agriculture expert and full-time member of Niti Aayog, to recommend measures to increase hedgers' participation in commodity derivatives. Hedging is the core function of the commodity derivatives market and trading and speculation are permitted with regulations only to provide liquidity. When the Forward Markets Commission was regulating commodity derivatives, it allowed margin relaxations for hedging. Sebi, with more powers and resources at its disposal, has asked the committee to take a holistic view on rules to make hedging easy. Hedging is low in commodity derivatives, especially in farm commodities, because the market lacks depth. When banks and other financial players are permitted in commodities and new instruments are allowed, hedging is expected to increase. Sebi has given priority to hedging without waiting for new products and participants

The Reserve Bank of India (RBI) on Wednesday said it is fully prepared to contain market volatility as well as address liquidity needs when foreign currency non-resident (banks) deposits start maturing in September this year. Banks had raised nearly $34 billion between September and November 2013, out of which $27 billion was through FCNR (B) deposits maturing mostly in three years. Banks, then, swapped those dollars with the RBI. The central bank thereafter readied itself by buying forwards dollar. The swaps and the forwards will take care of the dollar requirement and should be neutral for the reserves. However, banks should witness deposit base depletion and some rupee liquidity will be strained. RBI in its first bi-monthly monetary policy had said it was prepared for those. On Tuesday, RBI reiterated that and said it would take “all necessary measures to even out the resultant rupee liquidity gaps through use of appropriate instruments”. Assuring the market that the swaps

The Department of Post will launch its payments bank by Ja nuary next year and top manage ment of the new-age venture would be in-place by July, a senior official said on Wednesday. The Department of Post along with 10 other entities, received in-principle approval from the Reserve Bank to launch payments banks in August last year. The 'in-principle' approval is valid for a period of 18 months. “We (India Post Payments Bank) hope to hit streets by year-end or January because time for us is also very tight. Out of 18 months, we have have lost six months,“ India Post Member for Banking and HRD, MS Ramanujan said. The Economic Times New Delhi,14th April 2016