Taxability of SEZ leases and transfers remains examinable by the assessing officer; approvals conditional on statutory compliance.
Board approvals require that co-developer and lease agreements do not dictate tax treatment; the Assessing Officer may examine taxability under SEZ and Income Tax laws. De notification and area changes are approved subject to Development Commissioner certificates confirming contiguity, refund or non availment of tax/duty benefits and absence or debonding of units, and State Government no objection. Extensions of formal approvals, LoAs and LoPs were granted conditionally, and transfers or ownership changes were approved only if continuity of obligations, eligibility criteria, compliance with revenue laws, and submission of financial details are ensured.

Foreign investment limits in government debt expanded, with targeted allocation to specified institutional investors and temporary special window.
The circular allocates an incremental government debt investment limit exclusively to registered Sovereign Wealth Funds, Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks, making the amount and identified unutilized capacity available for immediate on tap investment; unutilized sums will be auctioned monthly. A temporary special window allows other FIIs that have exhausted reinvestment limits one time capped access until the next auction, subject to an aggregate cap distinct from the earmarked allocation; such investments carry a mandatory short term lock in and are not eligible for reinvestment.

Transit declaration requirement: exporters must amend CTD to confirm non diversion and enable clearance after Treaty compliance.
A one time exception allows transit export consignments of third country goods from Nepal via Kolkata port to be cleared upon amendment of the CTD declaration to state the goods are for export from Nepal to countries other than India and will not be diverted or retained in India; clearance will follow once the CTD is amended and other procedures under the Treaty of Transit are satisfied. Future cases will be governed by bilaterally agreed amendments to the Memorandum to the Protocol of the Treaty of Transit and revised procedures.

Foreign investment limit for government securities expanded for SEBI registered long term investors; SEBI to issue operational guidelines.
The Reserve Bank increased the permissible foreign investment ceiling in government dated securities for SEBI registered long term investors - including sovereign wealth funds, multilateral agencies, pension, insurance and endowment funds, and foreign central banks - for purchases on a repatriation basis, while retaining all other existing investment conditions; SEBI will issue operational guidelines and AD Category I banks must inform their constituents; directions are issued under sections 10(4) and 11(1) of FEMA.

Foreign Direct Investment reporting: FVCI investments under the FDI scheme use FC GPR/FC TRS; Schedule VI uses custodian reports.
Investments by SEBI registered FVCIs under the FDI Scheme must be reported only in form FC GPR or FC TRS as applicable, while investments under Schedule VI are not to be reported in FC GPR/FC TRS but are to be reported by the custodian bank in the monthly custodian reporting format; receipt of consideration and transfers carry 30 day and 60 day reporting timelines respectively through Authorised Dealer Category I banks.

Dematerialization requirement: companies with dual depository connectivity may shift from trade-for-trade to rolling settlement subject to conditions.
Companies with connectivity to both depositories may be shifted from Trade-for-Trade Settlement to normal Rolling Settlement if at least 50% of non-promoter holdings are dematerialized, evidenced by a certificate from the Registrar and Transfer Agent or, if no RTA exists, from 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.

Export remittance threshold increased for online payment gateway receipts enabling greater per-transaction repatriation under AD Category I arrangements.
AD Category I banks are permitted to repatriate export-related receipts collected through standing arrangements with Online Payment Gateway Service Providers up to USD 10,000 per transaction (revising the prior USD 3,000 limit), effective immediately; all other terms of earlier A.P. (DIR Series) circulars continue to apply, and the directions are issued under Sections 10(4) and 11(1) of FEMA, 1999, following amendment by Notification No. FEMA.274/2013-RB.

Export repatriation period for SEZ units tightened; full export proceeds must be repatriated within prescribed time, with extensions case by case.
Units in Special Economic Zones must realize and repatriate the full value of exports to India within twelve months of export, subject to case by case extensions by the Reserve Bank. The requirement is effective immediately for a one year period subject to review, implemented by amendments to the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, and AD Category I banks are to inform their constituents. Directions issued under Sections 10(4) and 11(1) of FEMA, 1999 remain without prejudice to other legal permissions.

FDI conditions for multi-brand retail require dedicated back-end greenfield investment and company owned front-end stores, and restrict e commerce.
FDI in multi brand retail requires 30% sourcing of manufactured or processed goods from small industries (Plant & Machinery investment cap USD 1 million), applicable only to front end store sales and excluding fresh produce. At least 50% of FDI must be additional greenfield investment in back end infrastructure; acquisitions or equity stakes in existing infrastructure do not count. Front end stores must be company owned and company operated; multi brand retail by e commerce and wholesale/B2B activity by the same entity are not permitted. State laws apply and States may impose additional conditions.

Centralized registration procedure under service tax: online ST 1 filing with documentary annexures and undertakings governs consolidation and record transfer.
The Notice prescribes that applicants seeking centralized registration must file the registration application online and submit the signed ST 1 printout with prescribed annexures, including branch-wise details, pending adjudications/appeals, a notarised affidavit certifying centralized accounting/billing and an undertaking to produce records for audit or enquiries; after grant, single branch registrations must be surrendered and branchwise CENVAT balances reported for transfer. The timeline for registration begins only when the application is complete, and deficiency memos must be issued within the statutory period.

Restatement disclosure: publish revised pro forma financial results immediately to shareholders; accounting effects may be recorded as prior period items.
Companies must submit Form A or Form B with annual reports; qualified audit reports are subject to review by a Qualified Audit Review Committee which may require restatement. Restatement requires immediate disclosure of revised pro forma financial results to shareholders via stock exchanges, while the accounting effects may be carried into the subsequent financial year's annual accounts as a prior period item to address tax impacts.

Service tax exemption for SEZ services: committee approval and certificate required, with annual renewal and supplier invoicing.
A procedural regime is prescribed for claiming the service tax exemption for services to SEZ developers or units: a committee chaired by the Chief Commissioner will examine applications; applicants must file the prescribed form with the Development Commissioner, who certifies and forwards it to the Commissioner of Central Excise, Kolkata VII for verification and onward transmission to the Chief Commissioner. Timelines of ten days are set at each stage. If approved, the Chief Commissioner issues a certificate to be supplied to service providers and referenced on invoices; certificates expire at the end of the financial year and require annual renewal.

Containerised cargo transhipment requires electronic manifests, bonded movement, seal verification, destination landing certification, and export shipping bill reconciliation.
Containerised import cargo transhipment to ICD Durgapur requires electronic manifest filing, transhipment permission, a continuing bond and applicable bank guarantee. The Container Cell processes permissions, while Customs verifies load and seal details and destination Customs certifies landing for restoration of bond and guarantee limits. Missing landing certificates result in enforcement of the running bond or guarantee. Export shipping bills processed at the ICD are verified at the gateway port; intact seals permit shipment without further examination, while seal discrepancies require full examination. Returned transference copies enable export confirmation and continuity-bond credit.

Transhipment procedure: bonded movement to ICD Durgapur requires ICEGATE IGM filing, transhipment bond and landing certificate.
Notice prescribes electronic IGM/Consol filing via ICEGATE for ICD Durgapur and sets out when IGM amendments require customs approval. It requires carriers to register a transhipment (TP) continuity bond, open PLA accounts for fee debits, and recognises 1st and 3rd party bonds and specified exemptions; custodians' existing guarantees may cover transhipment exposure. A Container Cell centrally processes transhipment permissions, carriers must present sealed documentation and lorry/rail receipts, and destination-certified landing certificates must be produced within the prescribed period to restore debited bond and guarantee limits, failing which enforcement follows.

Group company definition expanded to include control over voting rights or board appointments, effective immediately under FDI policy
Definition of group company added to the Consolidated FDI Policy: two or more enterprises are a group where one can, directly or indirectly, exercise a specified threshold of voting rights in another enterprise or appoint a majority of its board members; the amendment takes immediate effect.

Gold import restrictions: consignment limited to exporters; LCs require full cash margin and imports on payment only.
Consignment imports of gold by nominated banks and agencies are allowed only to meet exporters' genuine needs. All Letters of Credit for gold imports must be on 100 per cent cash margin, and all imports must be on Documents against Payment; Documents against Acceptance are not permitted. The instructions are effective immediately and issued under the Foreign Exchange Management Act, 1999.

Foreign direct investment in multi brand retail permitted under government approval route; Himachal Pradesh added to consenting states list.
Amendment adds Himachal Pradesh to the list of States/Union Territories consenting to implementation of the foreign direct investment policy in multi brand retail trading under Circular 1 of 2013; FDI up to 51% in multi brand retail remains permitted under the government approval route subject to paragraph 6.2.16.5 conditions. The revision to the enumerated list takes immediate effect.

Redemption fine and penalty threshold: aggregate both amounts to determine whether departmental appeals may proceed under customs rules.
Clarifies that although redemption fine (a charge on goods) is distinct from penalty (personal), both arise from Customs Act violations and must be treated identically for the Department's monetary threshold for appeals. If redemption fine alone exceeds the prescribed limit, appeals may be filed; if redemption fine and penalty are both disputed, their amounts must be aggregated and, if the combined total exceeds the threshold, the Department may litigate further. This Instruction modifies the prior guidance accordingly.

Redemption fine and penalty thresholds: combined amounts determine departmental right to appeal if limits exceeded.
Redemption fine and penalty, though distinct in nature (the former on goods, the latter personal), must be treated identically for the purpose of the prescribed monetary threshold for departmental appeals; if redemption fine alone exceeds the limit, or if redemption fine together with penalty exceeds the limit, the Department may litigate further in the Tribunal or courts.

Pre-shipment inspection agencies updated: a new authorised PSIA is added to the approved list, altering inspection provider options.
Addition of a new Pre-Shipment Inspection Agency to Appendix 5 of the Handbook of Procedures (Vol. I) is notified, naming the agency, providing head office and branch office contact details, and specifying its areas of operation; the amendment takes immediate effect under powers conferred by the Foreign Trade Policy and updates the roster of authorised inspection providers available for exporters.