Friday 6 November 2015

Daily Updates and News

Indirect Tax


Swachh Bharat Cess on all taxable services from 15.11.2015

Government decides to impose a Swachh Brarat Cess at the rate of 0.5% on all services presently liable to service tax, with effect from 15th November 2015; Proceeds from this cess to be exclusively used for Swachh Bharat initiatives In Budget, 2015, a provision was made for levying a Swachh Bharat Cess on all or any of the services, for the purposes of financing and promoting Swachh Bharat initiatives or for any other purpose relating thereto. We are a country of more than 120 crore people. F    [….] Read more at:



Madras HC upholds amendments in Excise Notifications to deny conditional exemptions on CVD payable by importers

Customs/Central Excise : Madras High Court upholds validity of amendments in 'No cenvat' condition in excise exemption notifications, which had — • nullified judgment in SRF Ltd. v. CC [2015] 56 taxmann.com 407 (SC) and • provided that conditional excise exemptions would be allowed only to Indian manufacturers and not to buyers/importers paying CVD. EDITOR'S NOTE : A brief legislative History is as follows : 1. It was held in SRF Ltd. v. CC [2015] 56 taxmann.com 407 (SC)      [….] Read more at:


https://gst.taxmann.com//topstories/101010000000164875/madras-hc-upholds-amendments-in-excise-notifications-to-deny-conditional-exemptions-on-cvd-payable-by-importers.aspx




SEBI

Sebi directs Essar Oil to match Rosneft's price for delisting

The capital markets regulator, Securities and Exchange Board of India (Sebi), has directed Essar Oil to match its delisting price with that being paid by Russian oil giant Rosneft for a 49 per cent stake in the company. The regulator has also agreed to certain relaxations sought by the company for its delisting bid. Rosneft is reportedly buying a 49 per cent stake in Essar Oil for $2.8 billion (Rs 18,500 crore), valuing the company at $5.7 bn (Rs 37,600 crore). In comparison, Essar Oil’s market capit     [….] Read more at:



Sebi may tighten redemption rules after JPMorgan fund woes

India's market regulator plans to tighten mutual-fund redemption rules after JPMorgan Chase & Co in September restricted payouts from its local funds holding Amtek Auto bonds as some investors demanded their money back. "We're going to make some changes in our regulations" for funds capping repurchases, U K Sinha, chairman of the Securities & Exchange Board of India, said in an interview at his office in Mumbai. "We're going to fine tune them further - what situation can you do     [….] Read more at:

http://www.business-standard.com/article/markets/sebi-may-tighten-redemption-rules-after-jpmorgan-fund-woes-115110501638_1.html



Sebi probe of Castex finds no evidence of manipulation

The Securities and Exchange Board of India (Sebi), which is probing unusual movements this year in the shares of Castex Technologies, said it hadn't yet found any signs of wrongdoing. Some holders of Castex's convertible bonds complained to the Sebi in September, alleging manipulation of its shares with an aim to inflate the price and trigger conditions for a mandatory conversion of the debt. After surging almost five per cent in 12 of the 16 sessions through July 13 to a rec   [….] Read more at:




RBI

RBI working on rules to strengthen financial customer protection: Rajan

Reserve Bank of India (RBI) Governor Raghuram Rajan said on Friday the central bank was working on strengthening the protection to financial customers from scams, Ponzi schemes and the like. Such rules could be implemented by the end of the financial year, he said. “We have in the works rules on consumer protection which we are looking at, along with the banks. These may be rolled out by the end of the year,” Rajan said in his address at the Delhi Economics Conclave.  The RBI governor was      [….] Read more at:



Government joins monetary framework with RBI to curb inflation: PM

Prime Minister Narendra Modi on Friday said that the government has for the first time entered into a monetary framework with the Reserve Bank of India (RBI) to curb inflation."We embarked on a course of fiscal consolidation. We entered for the first time into a monetary framework agreement with RBI to curb inflation," Modi said while speaking at the inauguration of Delhi Economic Conclave here. Modi said that by almost every major economic indicator, India is doing better than when     [….] Read more at:

http://www.business-standard.com/article/news-ians/government-joins-monetary-framework-with-rbi-to-curb-inflation-pm-115110600246_1.html


RBI allows foreign currency-rupee swap transactions

The Reserve Bank of India (RBI) on Thursday allowed residents having a long-term foreign currency liability to enter into foreign currency-rupee swaps with multilateral or international financial institutions (MFI/IFI) in which the government of India is a shareholding member, subject to certain conditions. RBI said that such swap transactions could be undertaken by the MFI/IFI concerned on a back-to-back basis with an authorised dealers (AD) Category-I bank in India. The tenu    [….] Read more at:



Govt, RBI have agreed on MPC composition: Raghuram Rajan

Reserve Bank of India (RBI) governor Raghuram Rajan on Thursday said the government and the central bank have agreed on the composition of the interest rate-setting monetary policy committee (MPC). “The MPC agreement has been largely done. Only fine-tuning is left. The government and RBI are broadly on the same page on the MPC’s composition,” Rajan told reporters.The government has proposed to set up the MPC, which will consist of representatives from the finance ministr    [….] Read more at:

http://www.livemint.com/Politics/7guGRaLyuo9e5KekPfcnVK/Govt-RBI-have-agreed-on-MPC-composition-Raghuram-Rajan.html


Dhanlaxmi Bank fined for flouting KYC norms

The Reserve Bank of India (RBI) has imposed a penalty of Rs 1 crore on Dhanlaxmi Bank for not adhering to Know Your Customer (KYC) and anti-money laundering (AML) guidelines. The regulator said the penalty had been imposed after taking into account the violation of the instructions, directions and  guidelines laid down by RBI. “This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement ente      [….] Read more at:




Miscellaneous Laws


Cabinet approves Mylan’s $750-million FDI proposal

The Cabinet on Thursday approved a proposal by Mylan Luxembourg and Mylan Group BV Netherlands to invest up to $750 million in its Indian arm Mylan Laboratories Ltd (MLL) through subscription of equity shares or compulsorily convertible debentures. This will be used by MLL for the acquisition of the entire shareholding of Jai Pharma Ltd, “post the demerger from its then shareholders”. “With this approval, FDI of $750 million will be received in the country,” an official statement said.     [….] Read more at:



Irdai draft soon on e-commerce portals selling insurance policy

In a bid to expand the reach of insurance and promote financial inclusion, the Insurance Regulatory and Development Authority of India (Irdai) will soon come out with a draft exposure on e-commerce portals selling insurance policies. The regulator will also release norms on management expenses that an insurance company can charge on premuims. Speaking at the CII Financial Distribution Summit, 2015, Nilesh Sathe, wholetime member-Life-Irdai, said: “We are working on it (the no   [….] Read more at:

http://www.financialexpress.com/article/markets/indian-markets/irdai-draft-soon-on-e-commerce-portals-selling-insurance-policy/162020/




Economy & News

Indian economy better placed today, reforms will be pursued: PM Narendra Modi 

Prime Minister Narendra Modi said the Indian economy was in much better shape than it had been when he took over thanks to his government's policy changes and that this improvement had come about despite a deteriorating global situation. "By almost every major economic indicator, India is doing better, than when we took office 17 months ago," Modi said on Friday at the Delhi Economics Conclave. "GDP growth is up and inflation is down, foreign investment is up and the current accoun     [….] Read more at:



India, US have busy commercial calendar ahead 

The India-US commercial relationship has a busy calender ahead in the next 12 months, which is aimed at encouraging greater ambition in expanding bilateral trade and addressing market access challenges facing US companies, a senior Obama administration official has said. "In the coming months, our commercial engagement will be focused on encouraging greater ambition in expanding US-India trade and address market access challenges facing US companies," Arun M      [….] Read more at:

http://economictimes.indiatimes.com/articleshow/49696041.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst



Oilmeal exports down 94% at 13,716 tonnes in October 

Oilmeal exports have declined 94 per cent to 13,716 tonnes in October due to sharp fall in soyabean meal and rapeseed meal shipments, industry body SEA said today. The country had shipped 238,703 tonnes of oilmeals, used as animal feed, in the same period last year. The overall export of oilmeals during April-Oct, 2015 reduced 40 per cent at 763,113 tonnes compared to 1,263,073 tonnes during the same period last year, Mumbai-based Solvent Extractors Association (SEA) said in a state   [….] Read more at:



India positioned more favourably for future than China: World Economic Forum 

In the coming years, India is positioned much more favourably than China in terms of growth, the World Economic Forum has said though it observed that it is not entirely smooth sailing just yet. "There is now a consensus among analysts that there are only a few bright spots in the global economy, and India is one of them," Viraj Mehta, head of India and South Asia for World Economic Forum, said in an op-ed on its website. Based on pure fundamentals, India's outlook is promising; the art is in      [….] Read more at:

http://economictimes.indiatimes.com/articleshow/49696087.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst


Japanese delegation visits Sri City SEZ 

A high-level delegation from Japan's Toyama state visited Sri City special economic zone (SEZ) here to strengthen bilateral trade ties. The five-member delegation headed by Japan's tourism and regional promotion bureau Urushibata visited the (Sri City) SEZ after calling on Andhra Pradesh Chief Minister N Chandrababu Naidu, Sri City said in a statement. Sri City SEZ is situated about 100 km from here and is home to several manufacturing facilities set up by various companies including Fox    [….] Read more at:



Enough leeway for DBT scheme to go on after SC order: PK Sinha 

Allaying fears over any affect of the Supreme Court order about use of Aadhaar on direct benefit transfer (DBT) scheme, Cabinet Secretary P K Sinha today said there is enough leeway for DBT to go on and it is not a banned activity. "The order says the usage of Aadhaar is limited to certain schemes and it should not be made mandatory. it should be made voluntary. But recently, number of other schemes have also been allowed, so I think there is enough leeway for DBT to go on," Sinha said at the      [….] Read more at:

http://economictimes.indiatimes.com/articleshow/49688901.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst


Thanks & Regards,
Meetesh Shiroya   
 

 

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