Foreign investment limits in asset reconstruction companies increased, with sponsor and FII ownership caps and SR investment conditions revised.
The amendments raise the combined foreign investment ceiling in Asset Reconstruction Companies, impose a sponsor shareholding cap preventing any sponsor from holding more than half the equity directly or via foreign routing, allow FIIs to invest in ARC equity subject to an individual FII shareholding cap, and permit FII investment in Security Receipts up to the combined foreign limit while requiring compliance with FII corporate bond limits and sectoral caps under the FDI regulatory framework.

VAT audit prioritisation: Ward authorities to finish ongoing audits for the specified year before initiating others.
Ward assessing authorities must first complete VAT audit proceedings already initiated for the 2011-12 year before taking up audits for other years; subsequent audits may be scheduled later in line with the department's risk-profile based audit selection framework and prior circular guidance, and the instruction is issued with the Commissioner's approval and circulated for departmental implementation.

Avoidance of Double Taxation Agreement published; provisions will take effect in India from the specified fiscal year.
The Agreement between India and Uruguay for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion was published in the Gazette and a copy of the notification is circulated; all provisions of the Agreement relating to taxes on income and on capital shall be given effect to in the Union of India from the beginning of the specified fiscal year, with directions for departmental circulation and website upload of the notification and enclosed Agreement text.

Insurance for customs-area cargo tied to average stored-goods value, with carrier bond validity standardized to reduce procedural burden.
The amount of insurance required of CCSPs must equal the average value of goods likely to be stored in the customs area for a 30-day period based on projected capacity, subject to Commissioner discretion regarding goods already insured; carrier bonds executed by CCSPs shall have a validity period of two years or five years as applicable.

Provisional assessment bond clearance drive expedites finalisation and cancellation with strict submission and reply deadlines.
The notice mandates a time bound administrative drive to finalise or cancel provisional assessments for P.D., Test and End Use Bonds pending over six months; importers and brokers must submit required documents to the concerned Dy./Asstt. Commissioners, who will raise discrepancies within six days, require replies within five days, and verify and cancel the bond within two days.

Line of credit terms impose sourcing, documentation and disbursement timelines for Exim Bank-supported project and supply contracts.
Exim Bank's Line of Credit finances eligible Indian goods, services, machinery, equipment and consultancy for an 18 MW power project in Comoros, requiring at least 75% of contract value to be supplied from India and permitting up to 25% procurement from abroad; shipments must be declared on GR/SDF forms, Letters of Credit and disbursement must meet specified timelines for project and supply contracts, no agency commission is payable under the LOC though exporters may use their own or EEFC funds subject to AD Category I bank compliance, and these directions are issued under FEMA without prejudice to other statutory approvals.

Special Currency Basket valuation: banks must apply updated Rupee value and notify constituents under FEMA directions.
The circular notifies a revision of the Rupee valuation of the Special Currency Basket under the Deferred Payment Protocols and directs Authorised Dealer Category I banks to apply the revised valuation from the stated effective date and to inform their constituents; the directions are issued under FEMA and without prejudice to other statutory permissions.

Export allocation requirement mandates a portion of imported gold reserved for exporters; domestic sales only against full upfront payment.
Imports of gold by nominated banks, agencies and other authorised entities are governed by a mandate that at least twenty percent of each consignment be reserved exclusively for exporters and the balance for domestic use; coins and medallions are prohibited. Domestic supply is limited to jewellery businesses, bullion dealers and banks authorised under the Gold Deposit Scheme and must be made against full upfront payment. Customs and refineries will monitor allocation and compliance, gold dore imports require DGFT licence, and front loading is restricted with prior RBI approval required for entities lacking exporter supply history.

Liberalised Remittance Scheme limit reduced; remittances capped, foreign property acquisition barred, and JV/WOS allowed with conditions.
The Liberalised Remittance Scheme ceiling for resident individuals is immediately reduced to a lower per financial year cap; AD Category I banks may allow remittances only up to that cap for permitted current or capital account transactions. The Scheme cannot be used for acquisition of immovable property abroad and remains barred for prohibited or illegal activities. Resident individuals may set up Joint Ventures or Wholly Owned Subsidiaries abroad for bonafide business within the cap subject to conditions in the cited FEMA notification, and gift and rupee loan limits to NRI close relatives are aligned with the revised cap.

Overseas direct investment limit tightened under the Automatic Route; excess investment now requires Reserve Bank approval.
The Circular imposes a net-worth-based ceiling on overseas direct investment under the Automatic Route, restricting aggregate ODI by an Indian party in its JVs and WOSs abroad to an amount equal to the investor's net worth per the last audited balance sheet; excess ODI requires Reserve Bank approval under the Approval Route. The same ceiling applies to investments into overseas unincorporated entities in the energy and natural resources sectors. Existing exemptions continue for certain Navaratna PSUs and designated national oil companies for government-approved oil-sector investments; the changes apply prospectively to new proposals.

Advance authorization redemption permitted based on spices sample analysis, with monthly reporting and sampling rules retained.
Regional Authorities may redeem advance authorizations for spices based on Sample Analysis Reports furnished by the spices testing board, applying to pending and future cases; RAs must submit a consolidated monthly report of such redemptions to the Norms Committee-IV, while sampling and analysis provisions remain unchanged.

e-BRC mandatory: backdated manual BRCs with amended issuance dates after the mandatory date are not acceptable.
DGFT requires electronic Bank Realization Certificates (e-BRCs) as mandatory proof of export proceeds per Policy Circular No.6. Manual BRCs bearing amended or backdated issuance dates will not be accepted where the original issuance falls on or after the mandatory effective date, to protect issuance date integrity and authenticity of bank-issued realization evidence for DGFT applications.

Qualified foreign investor access to to be listed corporate debt permitted, resale restricted to domestic investors until listing.
Qualified Foreign Investors (QFIs) may invest directly in to be listed Indian corporate debt securities from the issuer, aligning QFI and foreign institutional investor eligibility; if the securities are not listed within the short listing period, QFI holdings must be sold only to domestic participants until listing, and all other prior stipulations remain applicable.

Customs procedures for SEZ LNG operations require DTA importers to complete customs formalities before using SEZ storage services.
DTA entities using the PLL-operated LNG regasification facility in Puthuvypeen SEZ must complete Customs Act obligations-filing Bills of Entry, assessment and payment of duty-before availing storage and handling services; vessel arrival formalities and Import General Manifest filing are to be completed with the Cochin Custom House, and Customs endorsements at the SEZ will be accepted for assessment, while manifest reconciliation for SEZ-only goods may be processed via a transshipment application.

Export controls on finished leather: permit through specified ports subject to laboratory sampling and certification.
Export of Finished Leather, Wet Blue and EI Tanned Leather is permitted only through notified sea ports and ICDs; officials of the Central Leather Research Institute at those ports/ICDs will draw samples in the presence of Customs where required. Samples will be tested and certified by CLRI or other approved laboratories in accordance with the finished leather norms prescribed in the earlier Public Notice, with additional ports/ICDs to be notified by the Directorate General of Foreign Trade as necessary.

Dispute Resolution Panel composition set for transfer pricing cases; substitution rule applies when supervising officer is involved.
The Board constitutes three-member Dispute Resolution Panels for each listed territorial area under Section 144C(15)(a) read with the Dispute Resolution Panel Rules, naming primary Members and specified alternative Members where a primary Member was the supervising officer of the relevant Transfer Pricing Officer or Assessing Officer. If a taxpayer files no objection, the primary Members will hear the case. Panel Members shall discharge these duties in addition to regular duties until issuance of the direction; the Order supersedes prior orders and is effective from the stated effective date.

Security arrangements restrict staff movement during Independence Day building sealing and require specified reporting and de-sealing procedures.
Security arrangements require Delhi Police to seal and check Vyapar Bhawan during Independence Day celebrations with de-sealing completed by noon the following day. All staff are prohibited from leaving the premises before the police sealing begins on designated days and must report for duty at the stated time on the day of de-sealing. The circular mandates internal circulation to senior officers, building services, bank management on premises, and IT for publication to ensure compliance.

Special Economic Zone amendments revive investor interest by updating rules and issuing notification to implement changes.
Amendments to the Special Economic Zones Rules, 2006 implement measures announced by the Commerce and Industry Minister to revive investor interest, effected by a notification dated 12 August 2013. The notification updates rule provisions and the Office Memorandum directs Development Commissioners and export promotion bodies to circulate the English and Hindi versions among SEZ developers and units to implement the amended rules.

Closure of export obligation defaults by payment of customs duty with capped interest, interest payable in cash, deadline imposed.
An option is provided to regularise past defaults in Export Obligation by payment of the corresponding customs duty for the shortfall together with interest calculated from the date of import to date of payment, with interest capped so it does not exceed the customs duty payable. Customs duty may be paid in cash or by debiting valid duty credit scrips, but the interest must be paid in cash. Payment must be completed by 31 March 2014 and separate procedural and reporting instructions will be issued.

Line of Credit conditions require a substantial majority of supplies from India and set prescribed L/C and disbursement timelines.
Exim Bank granted a Line of Credit of USD 300 million to Ethiopia for the Asaita-Tadjourah railway to finance eligible goods, machinery, equipment and services from India, subject to a local content requirement that a substantial majority of contract value be supplied from India. The Agreement (executed June 13, 2013; effective July 15, 2013) sets distinct L/C and disbursement timelines for project exports and supply contracts, requires GR/SDF shipment declarations, disallows agency commission under the LOC while permitting exporter-funded commission remittances subject to AD bank compliance, and is issued under FEMA authority.