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.

Prosecution of directors: nominee directors of financial institutions to be covered by existing prosecutorial guidance for directors.
The Ministry directs that nominee directors on behalf of public financial institutions, financial institutions and banks shall be treated in the same manner as provided in paragraph 2 of General Circular No.08/2011 concerning prosecution of directors, and that Regional Directors, Registrars of Companies and Official Liquidators should apply this guidance for administrative compliance.

Waiver of central approval for high remuneration to professional managerial persons where companies lack profits, subject to eligibility.
Amendment to Schedule XIII effective 14 July 2011 waives Central Government approval for payment of high remuneration by listed companies and their subsidiaries lacking profits or having inadequate profits to a professional managerial person who (a) held no direct or indirect interest in the company or its holding company during the two years before or on the date of appointment and (b) possesses a graduate-level qualification with expert and specialized knowledge; compliance with other general conditions in para (c) of Section II of Part II of Schedule XIII remains mandatory.

Manpower Recruitment or Supply Agency Service: deputation reimbursements for public-sector officers treated as taxable supply of manpower.
Deputation of employees by ONGC to DGHC for reimbursement is chargeable as Manpower Recruitment or Supply Agency's Service; making staff available, directly or indirectly, temporarily or otherwise, falls within the statutory definition and the motive, volume of activity, or profit intent are irrelevant to taxability.

Modification of export product descriptions clarifies sanctioned names while inputs, quantities and allowances remain unchanged.
Amendments update the export product names in SION A-2913 and SION A-263 while leaving all other SION provisions intact; inputs, input descriptions and permitted quantities remain unchanged and the revised product nomenclature is recorded in the Handbook of Procedures (Vol. II).

Export obligation reporting required for EPCG authorizations; non compliance may bar further authorizations and installation certificate compliance reiterated.
Authorization holders must submit the annual report on fulfillment of export obligation to the Regional Authority as required by Para 5.9; EPCG licence holders issued between 01.04.2010 and 31.03.2011 must file the prescribed format (file number, EPCG licence/authorization number & date, export obligation stipulated and fulfilled, EO in Rupees and USD) by 29th July 2011, non compliance may result in actions including denial of further authorizations. The notice also reiterates Para 5.3.1 requiring an installation certificate within six months of import completion and submission of related bills of entry.

IEC online processing prioritises complete online filings for same day number generation and grants in person applicants counter priority.
Online IEC applications complete and filed by the daily cut off receive same day IEC number generation with e mail notification; later filings are processed the next working day. In person filers who are the Proprietor/Partner/Director/Signatory receive priority scrutiny at the PRO and, if complete, are issued the IEC number across the counter while the signed and photo bearing IEC document is sent by speed post.

CENVAT credit recovery where insurers used input credit for exempt investment services, prompting audits and verification of tax basis.
Life insurance companies availed extensive CENVAT credit while providing both taxable and exempt services; under Rule 6 they were required to maintain separate accounts or make prescribed reversals where inputs served exempt services. Many insurers appear not to have complied with these adjustment obligations, having utilised full credit; the Department requires verification of tax computation basis, recovery of credit used for exempt services, and expedited audit and adjudication of pending cases.

Taxability of foreign currency expenditure: factual determinations to be made by local Commissionerate, not central board.
The Board states that taxability of ONGC Videsh Ltd's foreign-currency expenditures involves complex factual questions dependent on overseas contracts, joint venture agreements and the mandate of overseas formations; such factual determinations should be examined and decided by the Commissionerate, which holds the full facts, and future factual queries should not be forwarded to the Board.

Admission of limited liability partnerships as exchange members enables LLPs to seek broker registration subject to membership conditions.
LLPs, as bodies corporate analogous to limited liability companies and partnership firms, may be admitted as stock exchange members subject to compliance with existing membership eligibility conditions and to the extent those conditions apply to LLPs; exchanges should publicise the clarification and amend bye-laws and rules in coordination to ensure uniform implementation.