Online approval under section 297 requires shareholder special resolution and professional certification before ministerial consent is granted.
An electronic filing procedure for Central Government consent under section 297 requires an e form capturing contract terms, board and special resolutions and a practising professional's certification of correctness; companies must record that the contract is competitive, at arm's length, free of conflict and within the scope of section 297, and approvals will be issued online based on these declarations, with penal consequences for false information or certification under statutory and professional regulatory provisions.

Rectification of register of charges shifted to Registrar of Companies, streamlining jurisdiction and reducing time and cost.
Jurisdiction for rectification of register of charges under the Companies Act, 1956 is shifted from the Company Law Board to the Central Government and delegated to the respective Registrar of Companies; pending petitions before the Company Law Board will be transferred to the concerned Registrar. Revised MCA 21 e forms and business processes will set out simplified procedures for companies and Registrars, with the expectation that delegation and streamlined e forms will reduce time and cost for condonation applications.

Shifting registered office confirmation: centralisation to Registrar streamlines interstate transfers and reduces procedural timelines.
The circular centralises confirmation of shifting of registered office between states by transferring jurisdiction from the Company Law Board to the Central Government and delegating the function to the Registrar of Companies where the registered office will be located; pending Company Law Board petitions will be transferred. Revised e forms and an MCA 21 business re engineering process will prescribe the simplified procedures for effecting confirmation and consequent alteration to the Memorandum of Association, aiming to reduce time and cost.

Line of Credit terms require majority Indian supply and GR/SDF compliance, with restricted agency commission provisions.
Exim Bank's Line of Credit to Mozambique finances eligible Indian exports for agricultural productivity; at least 75 percent of contract value for goods and services (including consultancy) must be supplied from India while up to 25 percent of non consultancy goods may be procured abroad. Shipments must be declared on GR/SDF forms; no agency commission is payable under the LOC though exporters may remit commission from their own resources or EEFC balances after realization. AD Category I banks must inform exporters. Directions are issued under FEMA without prejudice to other statutory permissions.

Online company incorporation: certified e forms enable immediate electronic registration and digital certificate issuance within one day.
Where e forms 1, 18, 32 and the e forms for the Memorandum and Articles of Association are certified by a practicing professional as to correctness, the Registrar of Companies shall process the application electronically and issue the digital certificate of incorporation immediately; this facility is optional, subject to penal liability for false or illegal information and to Registrar powers to suspend or revoke registration after an opportunity to be heard.

Co-developer ring-fencing policy clarifies entity separation and accounting rules, impacting SEZ approvals, authorized operations and extensions.
The Board granted, deferred or rejected multiple formal and in principle SEZ approvals, authorized non processing area operations with stated area/FAR constraints, and approved sector changes and land additions subject to contiguity and Development Commissioner certification. It adopted a co developer ring fencing policy requiring separate legal entities or, where not feasible, documented reasons, separate accounting for imports and domestic procurements, and prohibition on transfers of lease/service charges between developer and unit accounts. Extensions of validity and LoP were granted in specified cases; prohibited export proposals were refused.

Name availability guidelines introduce a fee and revised e form for corporate name applications effective from late July.
The Guidelines and a revised e form for name availability applications shall be implemented with effect from 24 July 2011, and a mandatory application fee of one thousand units will be charged for applications made in the revised e form 1A under the Companies (Central Government's) General Rules and Forms (Amendment) Rules, 2011.

Rupee denominated trade hedging allowed for non-residents to manage currency risk via authorised dealer banks.
Non-resident importers and exporters may hedge currency exposure on trade invoiced in Indian Rupees with AD Category I banks using forward INR contracts and FCY INR options. Two operational models are provided: Model I (via overseas bank correspondent) and Model II (direct dealing with AD bank), each requiring documentary verification of underlying trade, customer undertakings against dual hedging and prompt cancellation, KYC/AML certification, adherence of hedge amount and tenor to the underlying transaction, settlement via nostro/vostro accounts, one permitted rollover on extension, prohibition on rebooking cancelled contracts, and quarterly reporting of transactions and suspicious cancellations.

Export warehousing facility expansion: Tijara Tehsil added as an approved location for registered export warehouses.
The Board has amended paragraph 2(2) of Circular No. 581/18/2001-CX to add the Tehsil of Tijara of Alwar district in the state of Rajasthan to the list of places where warehouses may be established and registered for storage of excisable goods for export, thereby making Tijara an approved location for export warehousing under the procedures and conditions of sub rule (2) of rule 20 of the Central Excise Rules, 2002; field formations are to be informed and receipt acknowledged.

Extension of time for use of re credited CVD (SAD) in DEPB: deadline extended with restricted usage and certificate issuance requirements.
Time to utilize re credited CVD (SAD) refunds in DEPB/Reward Scheme scrips is extended until 15 September 2011 as a final two month extension. Utilization is restricted to payment of CVD and basic customs duty; use for SAD payment is barred. Commissioners must ensure prompt issuance of consolidated certificates evidencing total sanctioned SAD refunds, and authorities should issue Public Notice and Standing Orders for guidance.

Prior permission to create charge on assets requires specified application, payment or indemnity, and strict AO timelines.
Taxpayers must file a prescribed application at least thirty days before transferring assets or creating a charge; permission is granted where no demand or no likelihood of demand exists, where undisputed demand is paid with interest, or where disputed demand is stayed and indemnified by bank guarantee, sufficient assets, or by Department retaining first charge. Range head approval is required for transactions with asset value or charge amount of ten crores or more. Assessing Officers must adhere to specified ten- and fifteen-working-day timelines. Permission validity is 180 days or until service of an attachment order.

Shift from Trade for Trade Settlement to Rolling Settlement when dematerialisation threshold for non promoter holdings is certified and no other grounds exist.
Shift from Trade for Trade Settlement to normal Rolling Settlement is permitted for companies with connectivity to both depositories, provided a dematerialisation threshold for other than promoter holdings is met and certified by the Registrar and Transfer Agent or, where no RTA exists, by a practicing Company Secretary or Chartered Accountant, and provided there are no other grounds for continuation of TFTS; stock exchanges must report actions in their Monthly/Quarterly Development Reports.

Drawback payment verification: exporters must provide bank-attested authority letters and banker explanations before manual cheque issuance.
Issuance of manual cheques for drawback where exporter account discrepancies exist requires bank-attested authority letters confirming signatory names and designation, retention of the original authority letter by the Drawback section, and banker certification of bank details furnished to the Nodal Bank. Exporters must explain reasons for non-receipt of drawback credits and submit a banker's letter stating reasons for non-acceptance of the drawback scroll before the claim is processed; implementation difficulties should be reported to the Drawback Section authorities.

Customs Cargo Service Provider exemption continues; residential accommodation only where non commutable, transport must be provided.
Exemption of Customs Cargo Service Providers from payment of cost recovery charges continues for custodians previously covered by earlier circulars despite a later circular. Commissioners may, subject to satisfaction, waive residential accommodation where CCSP facilities are located in city/commutable areas, reserving accommodation requirements for remote locations; transport facilities must still be provided by CCSPs. Paragraphs 7 and 8 of the later circular are modified and public notices or standing orders should be issued.

Completion of service includes necessary auxiliary activities to enable invoice issuance, excluding frivolous delays and covering continuous supplies.
The date of completion of service includes all related auxiliary activities essential to identify and value the service and to enable issuance of an invoice (for example, measurement and quality testing), while excluding flimsy or irrelevant grounds for delay; the same rule applies to continuous supplies.

Reverse charge for cross-border leased circuit services: treated as Business Support Service and taxable under service tax rules.
IPLC services received from foreign providers cannot be treated as Telecommunication Service because foreign vendors are not Telegraph Authorities; instead, such cross-border leased-circuit services are taxable as Business Support Service under the reverse charge mechanism, with the Taxation of Services (Provided From Outside India and Received in India) Rules, 2006 and relevant Service Tax Rules applying, obliging Indian recipients to discharge the service tax.

Business Auxiliary Service exclusion: manufacturing activities producing excisable goods fall outside BAS, affecting embroidery job work.
The definition of Business Auxiliary Service excludes activities amounting to manufacture of goods specified in the Central Excise Tariff; goods remain excisable even if duty is nil. Embroidery work that constitutes manufacture under the Tariff is not a taxable service and Notification No. 8/2005-ST does not apply where the provider's activity amounts to manufacture. Pending issues and show cause notices should be decided accordingly.

Extension of registration document submission deadline for cotton exports; deadline and scrutiny period extended by administrative notice.
The Director General of Foreign Trade amends the close date in the Calendar of Events annexed to an earlier public notice to extend the deadline for document submission, scrutiny and issuance of registration certificates for cotton exports by one week, while expressly leaving all other provisions of the earlier notice unchanged and maintaining the previously notified final export date.

Regularization of foreign liaison and branch offices required; entities must apply to the Reserve Bank for approval and UIN assignment.
Foreign entities operating Liaison Offices or Branch Offices in India without Reserve Bank approval must apply for regularization under FEMA by submitting form FNC through their Authorised Dealer Category-I bank to the Chief General Manager-in-Charge, Foreign Exchange Department, Reserve Bank of India; entities with prior Government of India approval should likewise approach the Reserve Bank with that approval for allotment of a Unique Identification Number.

Risk Management System for EOU imports extended to non accredited clients, enabling facilitated clearances with Procurement Certificate checks.
The RMS expansion brings all EOU import Bills of Entry under facilitated clearance; unobstructed bills proceed to the shed for Out of Charge. The CHA/importer must present the sealed Procurement Certificate to the Bond Superintendent, who records and tallies PC particulars, completes Transit Allowed formalities, enters TA and Bill details in the PC, and intimates excise authorities. The Shed Officer re-tallies, debits/defaces the PC, observes Compulsory Compliance Requirements and examination instructions before granting Out of Charge.