Compounding of FEMA contraventions enables voluntary settlement upon quantification and payment, subject to eligibility and process safeguards.
Compounding under FEMA, 1999 is a voluntary, discretionary mechanism permitting settlement of admitted contraventions by payment of a quantified sum; the RBI may compound all FEMA contraventions except clause (a) of Section 3, which is handled by the Directorate of Enforcement. Applications must be in prescribed form with supporting annexures and fee, and will be disposed within 180 days. Compounding is unavailable where amounts are not quantifiable, where a similar contravention was compounded within three years, where required statutory approvals are not obtained, or where money laundering, national security or serious regulatory concerns require referral to enforcement agencies.

Repatriation limits for non-residents clarified; remittances require authorised bank certification, CA certificate and tax compliance.
Remittance facilities for NRIs, PIOs and foreign nationals under FEMA permit repatriation of balances and sale proceeds subject to an annual repatriation limit, Authorised Dealer bank satisfaction, an undertaking by the remitter and a Chartered Accountant's certificate in prescribed formats. Current income may be remitted as debits to NRO accounts or credited to NRE/FCNR accounts where tax obligations are met. AD banks must obtain declarations and preserve documentation, refuse transactions where requirements are unmet, and report suspected evasion; specified nationalities are excluded from certain repatriation facilities.

Establishment of foreign liaison and branch offices regulated by RBI; approvals, eligibility and compliance govern operation and remittance.
Establishment of Liaison, Branch and Project Offices by foreign entities in India requires RBI approval or compliance with specified general permissions; applications are filed in Form FNC via designated AD Category I banks and evaluated under Reserve Bank or Government routes against eligibility criteria including track record and minimum net worth. Liaison Offices are limited to non commercial representative roles and funded by inbound remittances, Branch Offices may carry out prescribed commercial activities but not retail or manufacturing, and Project Offices receive general permission subject to qualifying contracts and funding. All offices must obtain UIN and PAN, submit Annual Activity Certificates and audited accounts, and comply with reporting, remittance and closure procedures.

Liberalised Remittance Scheme permits resident individuals to remit abroad subject to documentation, KYC and reporting obligations.
The Master Circular consolidates rules under FEMA governing resident drawal and remittance of foreign exchange, delegating specified release powers to Authorised Dealers while identifying prohibited transactions and transactions requiring prior Government or Reserve Bank approval under Schedules I-III. It details operational procedures for self declaration releases, documentation and KYC obligations under Section 10(5), surrender and retention of unspent exchange, Resident Foreign Currency accounts, advance remittances and guarantees for import of services, and sets out the terms and reporting and PAN requirements for the Liberalised Remittance Scheme for resident individuals.

Foreign exchange risk hedging rules: permitted products, participant eligibility, documentation and reporting requirements.
Consolidated Reserve Bank master circular establishing permissible participants and hedging products (forwards, swaps, options, interest rate instruments, commodity and freight derivatives, exchange traded currency futures/options), with product specific operational conditions (tenor, notional limits, deliverability, rebooking/cancellation rules), documentation and auditor certification requirements, prudential eligibility and risk management controls for banks, delegated and approval routes for commodity/freight hedging, rules for non resident bank rupee accounts and inter bank dealings, and extensive periodic reporting and surveillance obligations to the Reserve Bank.

Repatriation of sale proceeds restricted: permitted only where acquisition complied with foreign exchange rules and traceable funds are shown.
Acquisition and transfer of immovable property by NRIs, PIOs, foreign missions, persons resident outside India for permitted activities, and foreign nationals of non-Indian origin are regulated under FEMA and RBI notifications. NRIs and PIOs may purchase and transfer non-agricultural property with payments only through permitted banking channels or non-resident accounts; repatriation of sale proceeds is allowed conditionally where acquisition complied with foreign exchange law and repatriation is limited to amounts traceable to permitted foreign exchange/non-resident accounts, with inheritance- and rupee-funded proceeds subject to documentary and tax-clearance requirements and prior approval when exceeding prescribed limits. Specific declaration, permission and documentation requirements apply, including Form IPI and prior RBI permission for certain nationalities.

Rupee Drawing Arrangements regulate non-resident exchange house vostro accounts, requiring approvals, funding, strict controls and reporting.
Rupee Drawing Arrangements require AD Category I banks to obtain Reserve Bank approval for initial tie ups and to inform the Reserve Bank of subsequent arrangements; accounts must be separately maintained, operate on a credit basis without overdrafts, be funded by sale of permitted foreign currency, and used only for specified inward personal remittances and permitted payments. Arrangements may follow DDA, Non DDA or Speed Remittance procedures with prescribed auditor/inspection regimes, lien and collateral requirements based on exchange house vintage, and strict KYC/AML/CFT, internal control, reporting and audit obligations.

Non-resident ordinary rupee accounts: rules on permissible credits, debits, repatriation and compliance obligations clarified.
Regulation of acceptance, operation and repatriation of funds in Non-Resident Ordinary Rupee (NRO) Accounts sets eligibility for persons resident outside India, permitted account forms and joint-holdings, and details permissible credits (inward remittances, legitimate dues, sale proceeds, specified gifts/loans) and debits (local rupee payments, remittance of current income, remittances for bonafide purposes and transfers to NRE accounts subject to overall annual ceilings and tax compliance). Repatriation of balances and sale proceeds requires documentary evidence, an undertaking, and a Chartered Accountant's certificate; specified nationalities face restrictions and certain repatriations require prior Reserve Bank permission.

Money Transfer Service Scheme mandates inward only remittances and strict KYC/AML compliance and reporting by Indian Agents.
The Master Circular consolidates MTSS regulation: permits only inward personal remittances to individuals, sets authorisation criteria for Indian Agents, conditions for Overseas Principals, and collateral and disbursement limits. It mandates a detailed KYC/AML/CFT regime-risk based customer acceptance, identification, enhanced due diligence for high risk customers (including PEPs), transaction monitoring, appointment of a Principal Officer, CTR/STR reporting to FIU IND, record preservation, periodic collateral review, and Reserve Bank inspection and renewal procedures under FEMA.

Registration of organic edible oil export contracts required; APEDA accredited certification and RCAC must precede shipment.
Prior registration with APEDA and issuance of a Registration cum Allocation Certificate (RCAC) is required before shipment of organic edible oils; exports must be certified by APEDA accredited Certification Bodies with Scope and Transaction Certificates attached to the application, submitted to APEDA's Cereal Division with prescribed processing charges, after which APEDA will scrutinize and issue RCACs for contracted quantities, subject to shipment validity and non amendability of buyer and FOB price.

VAT reconciliation returns and original inter state declaration forms deadline extended to allow additional time for submission.
The Commissioner exercised delegated authority to extend the filing deadline for the reconciliation return in Form DVAT-51 and for furnishing the original portions of inter state declaration forms supporting reported inter state sales, allowing dealers additional time to submit the specified returns and attach originals as required by the Delhi VAT and Central Sales Tax rules.

Negative list implementation introduces comprehensive service tax regime changes and guidance for coordinated transitional implementation and stakeholder training.
Implementation of the Negative List regime from July 1, 2012 restructures the service tax framework with comprehensive changes to exemptions, Place of Provision Rules, Service Tax Rules and Cenvat Credit Rules, validation and revision of specific notifications on refunds and commission agent services, and transitional measures for existing notifications. A Removal of Difficulties Order addresses references to re enacted charging provisions, prior Board circulars inconsistent with the revised law are superseded, and operational guidance including an Educational Guide, seminars, officer training and coordinated identification of services to be taxed is mandated for smooth implementation.

Construction of references to repealed tax provisions: references to section 66 read as section 66B, affirmed by Removal of Difficulties Order.
References in the Finance Acts to the repealed provision section 66 of the Finance Act, 1994 are to be construed as references to the re enacted provision section 66B under the General Clauses Act, 1897, and this construction has been formalised by Removal of Difficulties Order No. 2/2012 dated 29.06.2012; field formations and assessees are to be notified by Public Notice/Trade Notice for service tax administration.

Extension of time for filing annual returns for LLPs: deadline extended, offering additional compliance time for Form 11 filings.
Extension of time for filing the annual return (Form 11) by Limited Liability Partnerships: the 60 day filing period for Form 11 for the financial year ending 31-3-2012 is to be read as 122 days, and the filing deadline is extended to 31st July, 2012, effective from 30 6 2012.

Extension of filing deadline for LLP annual returns: revised longer filing period applies for the specified financial year.
Extension of the time for filing the annual return (Form 11) by LLPs: the 60 day filing period is read as 122 days for Form 11 in respect of the financial year ending 31 3 2012, extending the filing deadline to 31st July, 2012; the circular is effective from 30 6 2012.

XBRL filing of cost audit and compliance reports permitted after 31 July 2012; Institute asked to circulate guidance.
Filing of Cost Audit Report (Form I) and Compliance Report (Form A) with the Central Government may be made in XBRL format, permitted after 31 July 2012 as a continuation of General Circular No. 8/2012, and the Institute of Cost Accountants of India is requested to circulate this guidance to concerned members.

Central Declaration Forms submission required online; missing or unverified forms may trigger priority assessment and tax liability.
Dealers making stock transfers or central sales at concessional rates must file quarterly reconciliation returns in form DVAT-S1 detailing Central Declaration Forms submitted, forms missing, and tax paid for missing forms; an online "Central Forms" facility has been provided for quarter-wise submission. The Department will verify online submissions against records and interstate data and will frame default assessments only for missing and unverified forms with unpaid tax and interest, while absence of any online submission will be presumed to mean no forms were submitted and such cases will be assessed on priority.

Change to VAT filing frequency imposes staggered extended return deadlines while preserving tax deposit and penalty obligations.
Amendment to the DVAT Rules converted dealer filing frequency to monthly or quarterly, requiring DVAT/CST returns for the June tax period or first quarter and prescribing staggered extended deadlines for online filing and hard-copy submission based on TIN parity; tax remains payable under existing tax deposit provisions and penalties for late payment apply.

Import General Manifest requirement: vessels and cargo often require IGM/Bill of Entry even where duty exemptions apply.
Filing of an Import General Manifest (IGM) and a Bill of Entry is required even where goods or vessels are duty-exempt, depending on vessel category and use. Foreign-flag vessels used only as conveyances need no vessel-level IGM or Bill of Entry, but manifests for goods or passengers must be filed. Indian-flag vessels, vessels converted to coastal trade, and vessels imported for breaking up must have IGM/Bill of Entry filings, fresh Bills of Entry on conversion or breaking up, and may be liable for applicable duties; non-compliance may be adjudicated and penalised.

Time limit extension for VAT/CST reconciliation returns and original declaration forms allows later filing for 2011-12.
The Commissioner extended filing deadlines under the Delhi Value Added Tax Rules and Central Sales Tax provisions for the 2011-12 year, permitting later submission of the quarterly reconciliation return in Form DVAT 51 and the original portions of Declaration Forms C, E I/E II, F, I, J and H, thereby revising the compliance schedule for reconciling inter state sales and branch transfers and attaching requisite declaration forms.