Default authorized operations allow SEZ developers to commence specified infrastructure works duty free upon notification without prior Board approval.
Default authorized operations permit Developers and approved Co Developers of notified SEZs to commence specified infrastructure and processing activities from the date of notification without separate Board approval; Development Commissioners/Unit Approval Committees may allow duty free material for these activities. Activities are listed by SEZ type and include roads with lighting, water supply and treatment systems, sewage and effluent treatment plants, electrical and gas distribution networks, telecom and internet connectivity, rain water harvesting, landscaping, boundary walls, processing/factory sheds, and limited Customs and security office space. Other activities require a separate detailed application to the Board of Approval.

Vostro account branch cap relaxation allows additional drawee branches with CBS and online monitoring, subject to approvals.
The Reserve Bank permits AD Category I banks to designate drawee branches under Rupee Drawing Arrangements beyond the earlier numerical cap where those branches operate on a Core Banking Solution with on line funds monitoring to prevent concealed overdrafts, subject to Reserve Bank approval for the tie up with an Exchange House, adherence to Rupee Drawing Arrangements instructions, and prior Board approval before increasing drawee branches; prior permission requirements for tie ups remain unchanged.

Abatement eligibility for reverse-charge payers: past taxpayers may claim benefit on production of GTA non availment declaration.
Persons who pay service tax under the reverse charge mechanism may claim the 75% abatement only if they satisfy non availment of CENVAT credit and non availment of benefit of notification No. 12/2003 ST; a declaration from the GTA affirming non availment of credit or notification benefit on the consignment note suffices, and for periods before such endorsements were common a general declaration from the GTA may be accepted retrospectively to decide pending cases.

VKGUY export eligibility clarified: certain product entries exempted from registered unit sourcing requirement for specified exports.
An amendment to Appendix 37A of the Handbook of Procedures excludes certain VKGUY product entries from a note that required exports to be made by or sourced from registered units, thereby removing the registered unit sourcing prerequisite for those specified entries for exports from the effective date, as authorized under the Foreign Trade Policy.

Customs area designation for an ICD enables import examination, export stuffing and storage pending EDI connectivity.
The Commissioner of Customs, invoking Section 8 of the Customs Act, 1962, notifies the ICD of M/s. Central Warehousing Corporation inside Falta SEZ as a Customs Area. The notification authorises receipt, storage, destuffing, examination and clearance of import containers, receipt and consolidation of export cargo, stuffing/destuffing and sealing of LCL/FCL export containers for dispatch, and storage of empty containers for bills of entry and shipping bills; manual processing of bills continues until EDI connectivity is established. The site is described by specific boundaries within Falta SEZ and an effective date is provided.

Special currency basket value revision fixes rupee parity for deferred payment protocols, requiring banks to notify constituents under FEMA.
The rupee valuation of the special currency basket applicable to the Deferred Payment Protocols with the erstwhile USSR is revised and fixed at Rs.60.4392 effective August 12, 2008; Authorised Dealer Category I banks are directed to notify their constituents of the revised parity. The direction is issued under the Foreign Exchange Management Act and is without prejudice to other statutory permissions or approvals.

Advance remittance liberalisation: banks may remit import advances subject to KYC, due diligence and documentary import evidence.
Authorised Dealer Category I banks may make advance remittances for import of goods subject to conditions: the importer must be a bank customer; full compliance with KYC/AML for importer and overseas supplier; bank commercial judgment and satisfaction of bonafides; payments made directly to supplier per sale contract; import within six months (three years for capital goods) with undertaking to produce documentary evidence; banks to follow up evidence and ensure repatriation or permissible utilisation if imports do not occur.

Advance remittance authorisation allows unlimited, unguaranteed payments for specified rough diamond imports after supplier name change.
Authorised Dealer Category - I banks may permit advance remittances without limit and without bank guarantee or standby letter of credit for importers (excluding public sector and government departments/undertakings) importing rough diamonds from the specified list of suppliers; existing conditions in the prior circular remain unchanged. The circular also records the name change of Diamond Trading Company Pvt. Ltd. UK to De Beers UK Limited and directs banks to notify constituents; the directions are issued under the Foreign Exchange Management Act.

Delegation of powers enables zonal JCs/DCs to authorize officers to conduct statutory VAT audits under DVAT audit provisions.
The Commissioner delegates to Zonal Joint Commissioners/Dy. Commissioners and the Joint/Dy. Commissioners in charge of KCS and the Special Zone the power to issue authorizations in Form DVAT 50 to officers deployed to conduct audits of registered units under Section 58/58A of the DVAT Act, 2004 within their respective jurisdictions.

Export ban extension: EPCG obligation periods automatically extended without composition fee during restriction period.
Where a ban or restriction is imposed on export of any product, the export obligation period for EPCG authorizations issued prior to the ban is automatically extended by a period equal to the duration of the ban or restriction; the extension is automatic, no composition fee is payable, and exporters are not required to fulfill the average export obligation for the ban or restriction period.

Deemed export benefits for mega power projects where procurement tied through ICB or ICB at EPC stage.
Deemed export benefits for supplies to Mega Power Projects are available if either power procurement has been tied up through an International Competitive Bidding (ICB) procedure, or if an ICB procedure has been followed at the Engineering and Procurement Contract (EPC) stage; the ICB may be at the IPP stage or at the EPC stage.

Import entitlement increase for rough marble blocks/slabs expands annual permitted quantity and updates allocation under prior eligibility rules.
The Circular amends prior Policy Circular No.13 (RE 08)/2004 2009 by increasing the total import allocation for rough marble blocks/slabs for 2008-09 from 1.1 lakh MT to 1.4 lakh MT, directing Licensing Authorities and Customs to implement the revised entitlement under the scheme.

Service tax liability: service providers must remit tax on taxable services rather than shifting payment to recipients.
CISF, as the service provider, must remit service tax on taxable services rather than shifting liability to recipients; remittance is due for monthly receipts by the following-month due date, returns are filed semi annually, registration may be at single or multiple locations, and paid service tax is available as input credit. CISF should take steps to discharge its tax liability and may seek guidance from the Commissioner of Service Tax, Delhi.

Jurisdiction for IEC issuance: multi-product SEZs under Development Commissioners; single-product and IT/ITES SEZs under DGFT regional authorities.
Amendment to Appendix 1 clarifies jurisdiction for IEC issuance in SEZs: units in multi product SEZs shall come under the jurisdiction of the respective Development Commissioners; units in single product SEZs, including IT/ITES SEZs, shall have IEC issuance work handled by the respective Regional Authorities of the Director General of Foreign Trade.

VKGUY eligibility updated: handmade jute, coir and cotton carpets qualify for export benefits subject to certification and exclusions.
Amendment adds VKGUY product code 09.26 for handmade carpets and textile floor coverings of jute, coir and cotton (including synthetic handmade carpets) to Appendix 37A Table 9, making such exports eligible for VKGUY benefits from the stated effective export date. KVIC/KVIB sourcing or registration is not required for this code; "Handmade" includes hand-made, hand-woven, hand-knotted and hand-tufted; exporters with Focus Product/Market Scheme benefits are ineligible; and VKGUY benefits are admissible only for handmade products, with the Coir Board to certify handmade status if contested.

Foreign investment limits in commodity exchanges require mandated divestment to meet composite ceilings with a compliance deadline.
Commodity exchanges holding foreign investment above the prescribed composite ceiling must divest foreign equity equal to the excess and adhere to allocated sub-limits for portfolio and FDI holdings. Exchanges are required to submit a compliance report with foreign investment and equity-structure details to specified government and regulatory bodies by the end of the transition period, and non-compliance after the deadline constitutes a violation under the foreign exchange regulatory framework.

Service tax applicability on auctioneer services: Tobacco Board's auction fees taxable where fees are discretionary and retained.
Applicability of service tax on auction activities covers auctioneer service; Tobacco Board's auctions fall within this scope. The Board's fees are discretionary, retained by the Board, and not deposited in the government account, so they do not qualify for the statutory/sovereign-fee exemption and the Board's auctioneer services are taxable.

Duty Credit Scrip filing timeframe clarified to specify filing windows and cut-off for prior shipments.
Applications for obtaining Duty Credit Scrip must be filed within twelve months from date of export or within six months from date of realization or three months from date of printing/release of the shipping bill, whichever is later; for shipments made prior to inclusion/modification by Public Notices the last date is six months from the end of the month of the relevant Public Notice or the foregoing time period, whichever is later; a separate final cut-off applies for SFIS claims.

Filing deadline clarified: late cut applies to Chapter 3 export scheme claims filed after the prescribed last dates.
For exports made from 1 April 2006 to 31 March 2008 realised by 31 March 2008, the last date to file Chapter 3 FTP applications is 30 November 2008; where realisation is after 31 March 2008, the filing deadline is governed by Para 3.23.10 HBP Vol. I as amended. Late cut under Para 3.23.2 read with Para 9.3 HBP Vol. I applies to applications filed after the prescribed last date, including for exports in the stated period.

Extension of filing deadline permits late submission of reconciliation returns and original declaration forms under VAT rules.
Extension of time limits is granted to permit delayed submission of specified returns and declaration originals for the first and second quarters of 2007-08, authorising an extension until 5th September 2008 for furnishing the reconciliation return in Form DVAT 51 and for submission of the original portions of Declaration Forms C, E I, E II, F, I, J and H under the Central Sales Tax and Delhi VAT Rules.