Mandatory e-payment of service tax clarified alongside registration, CENVAT credit limits, return filing and adjudication procedures.
Consolidates procedural service tax rules: registration (including centralized registration and PAN based Service Tax Code), payment and mandatory e payment procedures, invoice and consignment note requirements, classification under section 65/65A, half yearly return filing with e filing, self and provisional assessment, CENVAT Credit clarifications (GTA credit inadmissible to consignor/consignee to discharge liability by fiction; consignee may claim input service credit; outward transport credit limited to "place of removal"; mobile phone service credit admissible under the 2004 Rules), interest on delayed payments, scrutiny and audit obligations, adjudication, revision and appeals mechanisms.

Custom House Agent Licence application requirements updated; stakeholders invited to comment on revised Form A and required disclosures.
Revision of the application procedure for a Custom House Agent's Licence under Section 146 prescribes a revised Form 'A' specifying required particulars: applicant and firm/partner details, authorised employees and clerks, educational qualifications and computer proficiency, language and Customs law knowledge, prior licence history and any penal actions, and a list of documents furnished under the Licensing Regulations. Applicants must affirm acceptance of the Custom House Agent's Licensing Regulations, 2004. The Ministry invites written comments from trade, departmental officers and other stakeholders on the revised Form within the consultation period.

Prosecution for excise offences requires sanction from senior authorities; arrests require Commissioner approval; habitual offenders prosecuted regardless of threshold.
Procedural instructions require that arrests by Inspector-level officers be made with prior Commissioner approval where an offence under the Central Excise Act is suspected, and that prosecutions be processed by the Commissioner and forwarded to the Chief Commissioner or the Director General (Central Excise Intelligence) for sanction; adjudicating authorities should decide on prosecution immediately after adjudication, cases above the financial threshold should be examined for prosecution, habitual offenders may be prosecuted irrespective of threshold, and complaints must be filed promptly once sanction is granted.

E-payment authorisation: Allahabad Bank approved to accept electronic service tax payments nationwide for all commissionerates.
Allahabad Bank has been approved and nominated to accept electronic payments for collection of indirect taxes; it is authorised to accept e-payments for all Central Excise and Service Tax Commissionerates without commissionerate-wise restrictions, supplementing the existing roster of banks designated for service tax e-payment under the established accounting arrangements.

Classification of shares as investment or stock-in-trade governs whether receipts are capital gains or business income for assessment.
Distinction between holdings of shares as capital asset and as stock-in-trade determines whether receipts are taxed as capital gains or as business income. Assessing officers should examine books of account (valuation and year-end classification), magnitude and pattern of purchases and sales, the ratio between purchases, sales and holding, and the taxpayer's motive. No single test is decisive; conclusions must follow the totality of circumstances. Taxpayers may maintain separate investment and trading portfolios and may have income under both heads accordingly.

Overseas direct investment liberalisation expands permitted investment limits and redefines guarantee treatment for Indian investors.
Overseas direct investment rules are liberalised: AD Category I banks may permit investments by Indian companies under the Automatic Route up to an enhanced ceiling measured against the last audited net worth. Financial commitment is redefined to include the full amount of guarantees issued by the investing company or related Indian entities, applicable to new and existing investments. Listed Indian companies' portfolio investment limit in eligible foreign securities is also increased, with existing portfolio conditions unchanged.

Heads of accounts updated for newly taxable services and education cess, requiring designated accounting codes and trade notice.
New Heads of Accounts under Major Head 0044 for Service Tax and an Education Cess account have been opened effective 01-06-2007 for seven newly taxable services. The Controller of Accounts provided accounting codes for three sub-heads per service-Tax Collection, Other Receipts (for interest and penalties), and Deduct Refunds-and requested that Commissioners be informed and Trade Notices issued. The "Deduct Refunds" sub-head is not to be used by assessees.

Service tax accounting codes for new taxable services and education cess established, directing updated collection and accounting procedures.
Service tax accounting codes have been opened for seven categories of newly taxable services and for the Education Cess, effective 1-6-2007, under Major Head "0044-Service Tax", with distinct sub-heads for Tax Collection, Other Receipts (for interest and penalties) and Deduct Refunds (for departmental refund allowance). The Controller of Accounts requests that these codes be intimated to Commissioners and that a Trade Notice be issued to inform assessees; Education Cess uses code 00440298.

Filing fees for offer documents set by amendment; short-term deposits of scheduled banks permitted pending fund deployment.
Amendment establishes a filing fee of 0.03% of the amount raised in a new fund offer, subject to a minimum and maximum, and permits mutual funds to invest scheme monies pending deployment in short-term deposits of scheduled commercial banks, subject to guidelines specified by the Board.

Consignment note requirements allow 'truck number not known' endorsement for small consignments, with later entry when vehicle identified.
Goods transport operators must issue a consignment note listing consignor/consignee, vehicle registration, goods, origin/destination and service-tax-liability. If vehicle registration is unknown at booking for small consignments, the customer's copy may be endorsed "truck number not known"; the agency must record the vehicle number in its copy when identified. For transshipment, the agency must note sequential vehicle numbers and leg details in its copy. Trade and field formations are to be notified of this procedure.

Custom House Agent licence renewal must be for the full statutory term; clarifies deposits, records access, and employment approvals
The Board directs that CHA licences under the 2004 Regulations must be renewed for the full statutory term and not curtailed where show cause notices exist, since suspension and revocation powers already address interim action. Enhanced security applies only to fresh centralised licences; earlier location specific deposits must be returned when licences are surrendered at non principal stations. Records may be inspected for specified regulatory grounds and requests should identify the purpose or particular documents sought. Prior approval of employed persons applies only to those assisting in CHA work, not to general staff.

Conversion requirement for debentures: only fully mandatory convertibles qualify as equity under FDI, others treated as debt.
Only instruments that are fully and mandatorily convertible into equity within a specified timeframe will be treated as equity under the FDI framework; optionally or partially convertible instruments that are debt like are excluded. FIIs may continue to invest in listed non convertible debentures under existing rupee debt norms. Issuances and investments in partially/optionally convertible instruments made on or before the cutoff date may continue until maturity. Amendments to the foreign exchange regulations will be notified and authorised dealers must notify constituents.

Classification of preference shares as equity or debt determines foreign investment treatment and ECB applicability.
Preference shares that are fully and mandatorily convertible into equity within a specified time are treated as part of share capital and included in foreign equity calculations for sectoral caps. Non convertible, optionally convertible or partially convertible preference shares are treated as debt and must conform to External Commercial Borrowing guidelines and caps, encompassing eligible borrowers and lenders, amount and maturity limits, end use stipulations, and rupee interest rate norms for ECBs. Preference instruments issued on or before the cutoff date may continue until current maturity, subject to RBI/SEBI and statutory requirements.

Mutual fund overseas investment liberalisation expands permitted asset classes to include ETFs, overseas funds and foreign ADRs/GDRs.
Permits expansion of overseas investment avenues available to Mutual Funds by adding three permissible categories: overseas mutual funds with nominal unlisted exposure, overseas exchange traded funds that invest in securities, and ADRs/GDRs of foreign companies; maintains monthly statistical reporting to the central bank with a revised format and notes that regulatory amendments will be issued separately, with directions issued under statutory foreign exchange powers and without prejudice to other legal permissions.

Project export data reporting required; banks must forward post award approvals to Exim Bank and email prescribed XLS data.
Authorised Dealer Category I banks must send copies of post award approvals for project export contracts and supply contracts on deferred payment basis to the Export Import Bank of India and email the prescribed data in XLS format to enable consolidated compilation of project export data; this requirement recalls delegated post award approval powers for projects up to USD 100 million and is issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.

Import policy review requests stakeholder input on marble and other building stones import regulation changes
An inter ministerial committee will review the import policy for marble and other building stones. Trade, industry and associations are invited to submit opinions and inputs within a fortnight by e mail or post to the designated officers using the provided contact details to inform the policy review.

Single-source FDI data policy: ministries must obtain all FDI inflow statistics only from the designated central data cell.
The Department's SIA is the single point custodian for collection, collation and dissemination of FDI approvals and inflows, maintaining a central database and publishing monthly FDI statistics. To avoid discrepancies caused by differing processing parameters, sectoral ministries are instructed to obtain FDI inflow data only from the designated central data cell and not directly from the central banking authority.

Verification of genuineness centralized with Manifest Clearance Department to expedite rebate and refund processing under time limits.
The Manifest Clearance Department will directly handle verification of genuineness of Shipping Bills and Bills of Entry and act as the Nodal Agency for such verification to expedite rebate and refund processing subject to statutory time limits, replacing prior routing through SIIB which created unnecessary procedural delay.

Amendment to Complementary Sugar allocation: revised quantity to EU under powers conferred by Foreign Trade Policy.
Amendment revises the quantitative allocation of complementary raw sugar destined for the European Union by modifying the figure stated in Public Notice No.5, effected by the Director General of Foreign Trade under powers conferred by the Foreign Trade Policy and issued in the public interest.

Revision of special currency basket value notified; AD Category I banks instructed to apply new rupee parity and inform constituents.
Revision of the rupee valuation of the special currency basket under the Deferred Payment Protocols is notified for application by Authorised Dealer Category I banks, with a late April revision made effective in early May 2007; AD Category I banks must apply the revised rupee value and inform their constituents. The Directions are issued under the Foreign Exchange Management Act, 1999 and do not affect other statutory permissions or approvals.