Realisation and repatriation period liberalisation extended for exporters, with SEZ and external warehouse rules remaining unchanged.
Liberalisation extends the period for realisation and repatriation of the full export value of goods and software, with Authorised Dealer Category I banks required to notify constituents. The existing treatment for exports by units in Special Economic Zones and exports to warehouses outside India remains unchanged. The extension was made in consultation with the Government and issued under provisions of the Foreign Exchange Management Act, without prejudice to other statutory permissions or approvals.

Dematerialisation requirement for non promoter holdings must be certified before shifting securities from TFTS to rolling settlement.
Shift to Rolling Settlement is permitted for securities with connectivity to both depositories provided a defined proportion of other than promoter holdings are dematerialised, certified by the Registrar and Transfer Agent or, if none, by a practicing Company Secretary or Chartered Accountant; exchanges must ensure no other grounds warrant continuation of Trade for Trade Settlement and must report action taken in the Monthly/Quarterly Development Report.

Reconfirmation of bank account particulars ensures sanctioned drawback credits reach exporters' core-banking accounts smoothly.
Requirement for reconfirmation of bank account particulars by exporters to enable electronic credit of sanctioned drawback into core banking accounts. Exporters were previously directed to obtain bank certification and update drawback account particulars in the Customs system to ensure smooth electronic interface. Routine validation failures such as closed accounts, incorrect IFSC codes, wrong account types or improperly formatted account numbers have caused non-crediting of sanctioned drawback. Exporters who have not completed reconfirmation are requested to cooperate by obtaining bank certificates and correcting account details to enable successful credit by the nodal bank.

Tax deduction on remittances requires electronic Form 15CA/15CB filing with accountant certificate before payments to non-residents.
Payors must electronically file an undertaking (Form 15CA) and obtain an accountant's certificate (Form 15CB) to determine tax withholding on remittances to non-residents. The accountant must be a chartered accountant or equivalent auditor. The undertaking is uploaded, printed with a system acknowledgement, signed by an authorised signatory, and submitted in duplicate with the accountant's certificate to the authorised dealer, who forwards copies to the assessing officer. If an assessing officer's certificate specifying deduction exists, the accountant's certificate is not required but the undertaking and AO certificate must be submitted.

Taxability of salary arrears: unpaid instalment not taxable in the earlier year if not paid or allowed by year-end.
The unpaid second instalment of salary arrears from implementation of Sixth Pay Commission recommendations cannot be taxed in the assessment year corresponding to the financial year in which the arrears were not paid or allowed by the year end, because arrears of salary are chargeable to tax in the previous year in which they are paid or allowed under the payment or allowance principle.

Cenvat credit compliance: audit identifies systematic credit misuse and recommends rule amendments to secure revenue.
Audit of service tax administration recorded widespread compliance deficiencies in cenvat credit and levy of service tax. Recurring cenvat issues included excess utilisation without separate accounts, credit on outward transportation beyond place of removal, credit for non taxable IT services, absence of reversal for credit on written off output services, use of invalid documents, and claims for services prior to the effective credit date. Audit also documented non levy/non payment across construction, intellectual property, software, foreign supplier services and other categories, and recommended statutory and rule amendments to clarify credit scope and recovery mechanisms.

Cenvat credit rules clarified: works-contract composition bars inputs credit but permits capital goods and input services; refund interest allowed.
Interest on delayed refund of amounts deposited under appeal is permissible under the refund-interest provision inserted by recent finance legislation. Rule 3(2) of the Works Contract Composition Scheme bars CENVAT credit on inputs for contracts under composition but does not preclude CENVAT credit on input services or capital goods; the Ministry issued a clarificatory circular. CENVAT credit on capital goods received in a given financial year is limited to fifty percent of duty paid for that financial year, and policy matters must be referred to the Board or designated divisional contacts.

Import contract requirement: proof that metal scrap consignments contain no arms or explosives may be provided via a separate contract.
Import of metal scrap requires submission of a contract between importer and exporter affirming consignments contain no arms, ammunition, mines, shells, cartridges, radioactive contamination, or other explosive material; the required document may be a separate contract distinct from the original sales contract to protect commercially sensitive information.

Disclosure for convertible debt: convertible instruments follow equity disclosure norms for listing, while non-convertible debt follows debt listing regulations.
Issue and listing of non-convertible debt securities, public or private, must follow the Issue and Listing of Debt Securities Regulations, 2008, while debt securities convertible into equity are governed by the disclosure norms applicable to the equity or instruments on conversion under the Disclosure and Investor Protection Guidelines, 2000. The clarification applies to information memoranda and offer documents for privately placed debt securities intended for listing prepared after this circular; merchant bankers must ensure compliance and stock exchanges must inform issuers.

Portfolio managers must keep clients' funds in segregated bank accounts with daily reconciliation and monthly statements to clients.
Portfolio managers may maintain clients' funds in a single separate bank account so long as they segregate each client's funds via clear back-office records, maintain a client-wise accounting system, refrain from using one client's funds for another, provide monthly client statements, and perform daily client-wise reconciliation between ledger records and the bank account.

IEC Application Verification demands enhanced photo identification and routine physical checks, with disabling and antecedent checks on discrepancies.
Applications at the special counter will be examined the same day or returned next day if deficient; ANF2 must state the name, designation and photograph of the person on the bank certificate, that photograph and details must be affixed on the IEC and two identical photographs attached. Limited physical verification of a proportion of new IECs will be carried out the month following issuance, prioritising recently opened bank accounts and proprietorship/partnership firms; verification teams of two officials (excluding case handlers) will inspect, record findings, and trigger disabling and antecedent checks where discrepancies or undelivered certificates occur.

Court-directed document filing enables registrar action against directors for company law filing violations under statutory power.
Regional Directors and Registrars are instructed to request courts, in prosecutions for breaches of directors' filing duties, to issue orders directing the accused to file required documents with the Registrar within a specified time and to pay prescribed and additional fees, thereby enabling the Registrar to take subsequent enforcement action under the Act if the ordered filings are not made.

Importer verification: First-time consumer goods imports must produce documentary proof for customs verification to prevent IEC misuse.
Customs requires verification of the genuinity of importers bringing consumer goods for the first time through the port to prevent misuse of other persons' IEC numbers. Required documents include VAT/Sales Tax registration, bank certificate confirming account and signatures, proof of payment through the importer's account, prior year balance sheet, and most recent tax return; clearance will follow on payment of duties once these are filed, with possible case-specific relaxation by the Additional Commissioner.

Prior Informed Consent for restricted hazardous wastes requires MOEF permission and DGFT licence for lawful import control.
Importation of hazardous wastes under the Hazardous Wastes Rules, 2008 requires Prior Informed Consent and MOEF permission plus DGFT licence for items in Schedule III Part A; Schedule III Part B wastes are subject to category specific import conditions ranging from free import to restricted import for recycling or for actual users with MOEF permission and DGFT licence. Non compliance triggers an importer obligation to re export the waste at its cost with enforcement by the State Pollution Control Board and potential bonded storage under Section 49 of the Customs Act.

Disposal of seized refrigerant cylinders allowed to approved plants subject to Chief Controller written permission and quota notification.
Seized or confiscated cylinders filled with refrigerant gases may be disposed of to one of eight approved refrigerant filling plants provided those plants hold prior written permission from the Chief Controller of Explosives to decant gases into approved cylinders. Customs must inform the Director (Ozone), Ministry of Environment & Forests, to ensure the corresponding quantity is debited from the manufacturer's prescribed quota. Disposal must comply with licence, test and inspection certificate requirements and the Gas Cylinder Rules.

Line of Credit requires majority sourcing from India and prescribes sourcing, shipment declaration, disbursement timelines, and commission rules.
A Line of Credit from Exim Bank to Ethiopia finances eligible goods, services and consultancy for sugar industry development; at least 85 per cent of contract value must be supplied from India while up to 15 per cent (excluding consultancy) may be procured abroad. Agreement dated January 27, 2009 (effective June 1, 2009) sets LC/disbursement deadlines-48 months from project completion for project exports and 72 months from execution for supply contracts. Shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC; exporters may use own funds or EEFC balances for commission after realization, subject to AD Category I bank compliance. Directions issued under FEMA sections 10(4) and 11(1).

Standard Input-Output Norms updated to specify inputs and quantities for aluminium non-stick utensils under DGFT notice.
Amendment to the Handbook of Procedures revises SION for aluminium non-stick utensils, correcting SION C-23 to specify permitted inputs (aluminium scrap or ingots, PTFE non-stick coating, high temperature resistance coating, bakelite moulding powder) with defined input-output ratios and coating consumption metrics. It also adds a new SION for three-layer PTFE interior coated utensils, listing additional inputs (aluminium circles or uncoated utensils, stainless steel handles, aluminium rivets) and setting separate input-content norms and coating consumption on a net-to-net basis.

Jurisdictional recordkeeping and inspection duty requires Zonal Development Commissioners to retain SEZ original files and conduct pre-notification inspections.
All original files and papers relating to SEZs, including IT/ITES SEZs, must be maintained by the Zonal Development Commissioner, and the jurisdictional Zonal Development Commissioner must carry out inspections and prepare reports for SEZs until such SEZs are formally notified.

Line of Credit for agricultural projects requires majority India sourced supplies and FEMA governed procedural compliance.
Exim Bank extended a Line of Credit to the Government of the Republic of Cameroon to finance specified maize and rice plantation projects, requiring at least 85 percent of contract value for goods and services to be supplied from India with up to 15 percent non consultancy goods procured outside India; shipments must be declared on GR/SDF forms, Letters of Credit and disbursements are subject to specified time limits, no agency commission is payable under the LOC though exporters may use own funds or EEFC balances for commission after realization, and AD Category I banks must notify exporters pursuant to directions under FEMA sections 10(4) and 11(1).

Listing requirements for Indian Depository Receipts demand synchronized cross border disclosures, translated financials and continuous compliance.
Model listing terms require issuers of Indian Depository Receipts to furnish pre issuance documentation including SEBI observation and merchant banker compliance certificates, ensure underlying shares are listed in the home market, obtain in principle exchange approval for further IDRs, and disclose pre/post capital structure changes. Continuing obligations mandate simultaneous electronic filing of corporate actions and financial statements disclosed in other jurisdictions, quarterly IDR holder pattern reports, appointment of an India based compliance officer, translated audited annual and periodical financials with reconciliations where applicable, and prompt notification of material events, with stock exchange powers to suspend or delist for non compliance.