This newsletter provides a summary of recent changes and updates in the areas of: 1) Indirect taxes - Changes in duty rates for gold, silver, and other goods through new notifications. 2) FEMA regulations - Qualified foreign investors now allowed direct investment in Indian stock markets. 3) Corporate law - Guidelines issued on KYC regulations and in-person verification as per new SEBI rules. The newsletter also provides a brief overview of the company and its mission.

1. TAXPERT PROFESSIONALSOUTLOOK
Volume – I March 2012
Taxpert Professionals Private Limited.
Office Newsletter
Adding value with quality and commitment
For the month of March 2012

2. If you have built castles in the air, your work
need not be lost; that is where they should
be. Now put foundations under them.
Henry David Thoreau
It gives me immense pleasure to introduce this Newsletter . Taxpert
Professionals was born 19 May 2009, Since then the company has
been scaling new heights year after year. It has been the group
effort to bring the Company to the level it is now.
Success, it is said that is continuous journey. Always continue the
climb. It is possible for you to do whatever you choose, if you first
get to know who you are and are willing to work with a power that
is greater than ourselves to do it.
This newsletter is an effort to bring the team Taxpert updated about
the recent changes in the law and also the keep all of us closer.
Taxpert believes in hardwork ,faith and Patience. It endeavours
continuously to provide the best quality service to its clients and
values its human resource and thrives to provide most employee
friendly environment for its employees.
…………………………….From the Desk of CA. Vinay Bhushan
11 March 2012

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 silver
TARIFF 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% ad
1. 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 Duty
and 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 bars
as follows:
Description Sr. No. in Old rate of duty Amended rate of
of goods notification duty
Silver 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. This
notification has come into force w.e.f. 17th January 2012.

4. Accordingly the RBI has issued a circular on January 13, 2012 to
allow QFIs to purchase on repatriation basis equity shares of Indian
FEMA 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 Circular
equity market – Scheme for Investment by Qualified Foreign No. CIR/ IMD/FII&C/3/2012 dated January 13, 2012
Investors in equity shares
The QFIs shall include individuals, groups or associations, resident in
Press 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 this
arrangement, a large number of foreign investors termed as
Qualified Foreign Investors (QFIs – defined to mean non-resident
investors, other than SEBI registered FIIs and SEBI registered FVCIs,
who meet the KYC requirements of SEBI), in particular, a large set of
diversified individual foreign nationals who are desirous of investing
in Indian equity market do not have direct access to Indian equity
market. In the absence of availability of direct route, many QFIs find
difficulties in investing in Indian equity market.
As a first step in this direction, QFIs have been permitted direct
access to Indian Mutual Funds schemes. As a next logical step, the
Government of India (GOI) has now been decided to allow QFIs to
directly invest in Indian equity market in order to widen the class of
investors, attract more foreign funds and reduce market volatility
and to deepen the Indian capital market.

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 single
Revision in Scheme for Investment by Qualified Foreign rupee pool bank account subject to the condition that in case
Investors in Rupee Denominated Units of Domestic Mutual dividend payments are credited to the single rupee pool bank
Funds account they shall be remitted to the designated overseas bank
accounts of the QFIs within 5 working days (including the day of
A. 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 for
As per the extant provisions, the funds received from the QFIs into
fresh purchases of units of domestic mutual funds under this
this 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 business
day in case money is received after business hours, failing which the
funds would be immediately repatriated back to the QFI’s overseas
bank account. The redemption proceeds of the units shall be
repatriated to the overseas bank account of the QFI within 2
working days of the same having being received in the rupee pool
account of the DP.
It has been decided that the time period for which funds (by way of
foreign inward remittance through normal banking channels from
QFIs as well as by way of credit of redemption proceeds of the units
of domestic Mutual Funds by QFIs in India) can be kept in the single
rupee pool bank account of the DP under the scheme for
investment by QFIs in units of domestic Mutual Funds has been
increased to 5 working days (including the day of credit of funds
received by way of foreign inward remittance through normal
banking channels from QFIs as well as by way of credit of
redemption proceeds of the units of domestic Mutual Funds by QFIs
in India).

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 governed
GUIDELINES ON KYC REGULATIONS AND ON IN-PERSON
under the above mentioned Directions and these Directions may be
VERIFICATION [www.sebi.gov.in]
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 Registration
Agencies Regulations, 2011 (KRA Regulations) issued earlier and has
now issued guidelines to implement the KRA Regulations effectively.
The guidelines are specifically issued for intermediaries, the KRAs
and on In-person verification (IPV). The guidelines provide that the
KRA system shall be applicable for all new client accounts opened SEBI
from January 1, 2012. Only for the client accounts opened between
January 1 and January 31, 2012, the intermediaries may upload the RBI
KYC data on the KRA system and send the relevant KYC documents
to KRA, by February 15, 2012. However, for client accounts opened ROC
from February 1, 2011, the intermediaries shall continue to follow
the requirement of sending the same within 10 working days as
provided in this circular. The existing clients can continue to
trade/invest/deal with their intermediaries as per the current
practice.
Taxpert Professionals Private Limited
ISSUANCE OF NON-CONVERTIBLE DEBENTURES BY NBFCs
[www.rbi.gov.in]
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 some
NBFCs have raised funds under private placement by issuing non-
convertible debentures (NCDs) of maturity less than 90 days. This is
in clear violation of the Issuance of Non-Convertible Debentures

7. 
Laugh it off
I've 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 'Lucille'
This is a compilation of some of the best out of office Automatic instead of Steve.
email 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 wouldn't have
received anything at all.
 Sorry to have missed you, but I'm at the doctor's 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, I'm thinking about what you've just sent me. Please wait
by your PC for my response.

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. Musings….