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  1. 1. TAXPERT PROFESSIONALSOUTLOOK Volume – I March 2012 Taxpert Professionals Private Limited.Office Newsletter Adding value with quality and commitmentFor the month of March 2012
  2. 2. If you have built castles in the air, your workneed not be lost; that is where they shouldbe. Now put foundations under them.Henry David ThoreauIt gives me immense pleasure to introduce this Newsletter . TaxpertProfessionals was born 19 May 2009, Since then the company hasbeen scaling new heights year after year. It has been the groupeffort to bring the Company to the level it is now.Success, it is said that is continuous journey. Always continue theclimb. It is possible for you to do whatever you choose, if you firstget to know who you are and are willing to work with a power thatis greater than ourselves to do it.This newsletter is an effort to bring the team Taxpert updated aboutthe recent changes in the law and also the keep all of us closer.Taxpert believes in hardwork ,faith and Patience. It endeavourscontinuously to provide the best quality service to its clients andvalues its human resource and thrives to provide most employeefriendly environment for its employees. …………………………….From the Desk of CA. Vinay Bhushan 11 March 2012
  3. 3. Indirect Tax Update (Notification No. 2 /2012 – C. E. dated 16th January, 2012) (B) This notification amends the rate of duty of plain gold and silverTARIFF NOTIFICATIONS: Jewellery. The old rate of duty has been amended from ` 750 per 10gms to max 5% ad valorem and ` 1500 per Kg. to max 6% ad1. Exemption to Khandsari Sugar and other parts of Sewing Machine valorem respectively. Notification No. 23/2003 has been amended to this effect. This notification has come into force w.e.f 17th,Through this notification, Khandsari Sugar and other parts of sewing January 2012.machine have been exempted from the levy of Central Excise Dutyand the corresponding notifications no. 3/2006 and 6/2006 (Notification No. 3 /2012 – C.E dated 16th January, 2012)respectively has been amended to this effect.(Notification No. 1 /2012 – C.E. dated 3rd January, 2012)2. Change in the rate of duty of Gold and Silver(A) This notification amends the rate of duty of Silver and Gold barsas follows:Description Sr. No. in Old rate of duty Amended rate ofof goods notification dutySilver and 21A Rs. 200 per 10 gms. 1.5%Gold Bars 21B Rs. 1500 per kg 4% . 21C Rs. 300 per 10 gms. 2% Rs. 1500 per kg 6%Notification No. 5/2006 has been amended to this effect. Thisnotification has come into force w.e.f. 17th January 2012.
  4. 4. Accordingly the RBI has issued a circular on January 13, 2012 to allow QFIs to purchase on repatriation basis equity shares of IndianFEMA companies subject the terms and conditions specified in the circular.Qualified Foreign Investors allowed to invest directly in Indian Further SEBI has also allowed investment by QFIs vide its Circularequity market – Scheme for Investment by Qualified Foreign No. CIR/ IMD/FII&C/3/2012 dated January 13, 2012Investors in equity shares The QFIs shall include individuals, groups or associations, resident inPress Release dated January, 1st 2012 issued by GOI a foreign country which is compliant with FATF and that is a signatory to IOSCO’s multilateral MoU. QFIs do not include FII/sub-A. P. (DIR Series) Circular No. 66 dated January 13, 2012 accounts.Presently, only FIIs/sub-accounts and Non-Resident Indians (NRIs)are allowed to directly invest in Indian equity market. In thisarrangement, a large number of foreign investors termed asQualified Foreign Investors (QFIs – defined to mean non-residentinvestors, other than SEBI registered FIIs and SEBI registered FVCIs,who meet the KYC requirements of SEBI), in particular, a large set ofdiversified individual foreign nationals who are desirous of investingin Indian equity market do not have direct access to Indian equitymarket. In the absence of availability of direct route, many QFIs finddifficulties in investing in Indian equity market.As a first step in this direction, QFIs have been permitted directaccess to Indian Mutual Funds schemes. As a next logical step, theGovernment of India (GOI) has now been decided to allow QFIs todirectly invest in Indian equity market in order to widen the class ofinvestors, attract more foreign funds and reduce market volatilityand to deepen the Indian capital market.
  5. 5. It has also been decided to allow credit of dividend payments to QFIs on account of units of mutual funds held by them to the singleRevision in Scheme for Investment by Qualified Foreign rupee pool bank account subject to the condition that in caseInvestors in Rupee Denominated Units of Domestic Mutual dividend payments are credited to the single rupee pool bankFunds account they shall be remitted to the designated overseas bank accounts of the QFIs within 5 working days (including the day ofA. P. (DIR Series) Circular No. 66 dated January 13, 2012 credit of such funds to the single rupee pool bank account). Within these 5 working days, the dividend payments can be also utilized forAs per the extant provisions, the funds received from the QFIs into fresh purchases of units of domestic mutual funds under thisthis account shall be remitted to the domestic MF either on the scheme, if so instructed by the QFI.same day of the receipt of the funds from QFIs or by next businessday in case money is received after business hours, failing which thefunds would be immediately repatriated back to the QFI’s overseasbank account. The redemption proceeds of the units shall berepatriated to the overseas bank account of the QFI within 2working days of the same having being received in the rupee poolaccount of the DP.It has been decided that the time period for which funds (by way offoreign inward remittance through normal banking channels fromQFIs as well as by way of credit of redemption proceeds of the unitsof domestic Mutual Funds by QFIs in India) can be kept in the singlerupee pool bank account of the DP under the scheme forinvestment by QFIs in units of domestic Mutual Funds has beenincreased to 5 working days (including the day of credit of fundsreceived by way of foreign inward remittance through normalbanking channels from QFIs as well as by way of credit ofredemption proceeds of the units of domestic Mutual Funds by QFIsin India).
  6. 6. Corporate Law update (Reserve Bank) Directions, 2010 dated June 23, 2010 issued by Internal Debt Management Department, Reserve Bank of India. It is now advised by the RBI that all NBFCs may note that the issue of NCDs of original or initial maturity up to one year are governedGUIDELINES ON KYC REGULATIONS AND ON IN-PERSON under the above mentioned Directions and these Directions may beVERIFICATION [] followed for meticulous compliance.The SEBI has issued Circular No. MIRSD/Cir- 26 /2011 dtd.23.12.2011 in relation to the Know-Your-Client RegistrationAgencies Regulations, 2011 (KRA Regulations) issued earlier and hasnow issued guidelines to implement the KRA Regulations effectively.The guidelines are specifically issued for intermediaries, the KRAsand on In-person verification (IPV). The guidelines provide that theKRA system shall be applicable for all new client accounts opened SEBIfrom January 1, 2012. Only for the client accounts opened betweenJanuary 1 and January 31, 2012, the intermediaries may upload the RBIKYC data on the KRA system and send the relevant KYC documentsto KRA, by February 15, 2012. However, for client accounts opened ROCfrom February 1, 2011, the intermediaries shall continue to followthe requirement of sending the same within 10 working days asprovided in this circular. The existing clients can continue totrade/invest/deal with their intermediaries as per the currentpractice. Taxpert Professionals Private LimitedISSUANCE OF NON-CONVERTIBLE DEBENTURES BY NBFCs[]The RBI has issued Circular No. DNBS.CC.PD.No.255/03.10.01/2011-12 dtd. 30.12.2011 stating that it has come to its notice that someNBFCs have raised funds under private placement by issuing non-convertible debentures (NCDs) of maturity less than 90 days. This isin clear violation of the Issuance of Non-Convertible Debentures
  7. 7. Laugh it off Ive run away to join a different circus.  I will be out of the office for the next two weeks for medical reasons. When I return, please refer to me as LucilleThis is a compilation of some of the best out of office Automatic instead of replies...  I am currently out of the office at a job interview and will reply to you if I fail to get the position. Please be prepared for my mood.  You are receiving this automatic notification, because I am out of the office. If I was in, chances are you wouldnt have received anything at all.  Sorry to have missed you, but Im at the doctors having my brain and heart removed so I can be promoted to our management team.  I will be unable to delete all the emails you send me until I return from vacation. Please be patient, and your mail will be deleted in the order it was received.  Thank you for your email. Your credit card has been charged $5.99 for the first 10 words and $1.99 for each additional word in your message.  The email server is unable to verify your server connection. Your message has not been delivered. Please restart your computer and try sending again.  Thank you for your message, which has been added to a queuing system. You are currently in 352nd place, and can expect to receive a reply in approximately 19 weeks.  Hi, Im thinking about what youve just sent me. Please wait by your PC for my response.
  8. 8. Achievement and Success:  Milin Shah passed the CA Inter Exams and has entered into Finals.  Niral Doshi passed the CA Inter Group.  Hemalata got exemption in CA Exams.  Ca. Garima Aggarwal Joined the Taxpert family  CA. Sudha G. Bhushan addressed the members of Institute of Company Secretaries of India on the regulatory framework of Cross border Transactions
  9. 9. Musings….