Foreign investment limits increased for FIIs in government securities and corporate debt, easing maturity and lock in requirements.
The circular raises FII investment ceilings in Government securities and corporate debt, increases the sub limit available to FIIs and long term investors for dated government securities while removing the prior residual maturity condition (subject to exclusion of short term Treasury Bills), expands overall corporate debt limits with sectoral sub limits and exclusions for CDs/CPs, preserves a separate QFI corporate debt ceiling above the revised limit, and relaxes lock in and residual/original maturity conditions for infrastructure and QFI investments.

Extension of filing deadlines for VAT returns-online and hard copy schedules revised; tax must still be deposited on time.
Extension of filing deadlines for DVAT/CST returns: December 2012 monthly dealers' online and hard copy return deadlines are extended; quarterly dealers' third quarter filing deadlines are staggered by prior year net tax paid with earlier deadlines for higher net tax categories and later deadlines for lower categories. Tax due for the extended periods must be deposited as required by law, and interest and penalty provisions apply for late payment.

Customs pass issuance for self-clearance: eligibility and documentation required; two-year validity and renewal permitted, subject to IEC verification.
Issuance procedure for Customs passes in the "Self" category prescribes that passes are available to proprietors, partners, directors and full time regular permanent employees for regular visits to Air Customs import section; temporary or probationary employees are excluded. Applications must include entity proof with BIN/IEC indicated, attested identity and education documents, appointment and residential proof, attestation forms, past B/E or S/B copies if any, list of pass holders, a two year business volume statement, and for power of attorney holders a notarized bond and bank attested specimen signatures. Passes are valid for two years and renewable on employer request.

ASBA facility expansion: SCSBs must designate branches and brokers may collect forms, enabling wider ASBA access.
The circular mandates expansion of the Application Supported by Blocked Amount (ASBA) facility to syndicate, sub-syndicate and non-syndicate broker networks; requires Self Certified Syndicate Banks with branches in broker-center locations to name at least one branch to receive ASBA forms; directs stock exchanges to publish broker-center locations; requires merchant bankers to disclose the arrangement in offer documents; and makes the instructions applicable to public issue offer documents filed on or after March 1, 2013, with the circular later rescinded by a master circular dated February 9, 2026.

Extension of return filing deadline: online and hard-copy dates extended; tax deposit obligation and penalties remain applicable.
The Department extended the last date for online filing of DVAT/CST returns for the third quarter of 2012-13 to 01.02.2013 and the last date for filing the hard copy to 05.02.2013 under Rule 49A of the DVAT Rules, 2005; tax must be deposited as per Section 3(4) of the DVAT Act, 2004 and penalty and interest for late deposit remain applicable.

Custom House Agent licence eligibility requirements announced; applications invited with specified qualifications, financial viability, bonds, and procedural conditions.
Invitation for grant of Custom House Agent licence under Regulation 4 requires applications on Form A with firm/company particulars and identification of the person to carry out customs clearance. The nominated person must meet Regulation 8 qualifications (specified academic/professional credentials, experience, or examination passage or retired Group A service), demonstrate financial viability through acceptable bank or state authority evidence, and be an Indian citizen. Successful applicants must submit prescribed bonds, a security instrument in favour of the Commissioner, the licence fee, twenty year bio data, declarations regarding other CHA licences and any customs prosecutions, and may be required to attend written and oral examinations.

Preventive vigilance: reinforced obligations on tax officials to ensure a corruption-free administration and swift disciplinary action.
Preventive Vigilance is reaffirmed as the primary administrative mechanism to ensure a tax administration free from corruption, bias, or favouritism. Vigilance wings must expeditiously conclude disciplinary proceedings, protecting the innocent while imposing strict action for gross misconduct. Senior officers must inspect subordinates, counsel staff, secure vulnerable areas, engage stakeholders for feedback, and implement systematic rotation between sensitive and non-sensitive assignments to prevent vested interests and protect objective official functioning.

Access to foreign exchange market permitted without requiring prior exhaustion of EEFC balances, applying to RFC and Diamond Dollar accounts.
Dispenses with the prior requirement that EEFC account holders must fully utilise available EEFC balances before accessing the foreign exchange market; the change also applies to RFC (Domestic) and Diamond Dollar accounts, while all other terms and conditions of the earlier circulars remain unchanged and Authorized Dealer Category I banks are to notify their constituents.

Hearing fixation policy: suspend automatic sixty day scheduling and cap daily bench listings to reduce overloading and adjourn excess.
Manpower shortages and increased pendency render the practice of fixing new appeals on the 60th day impracticable. New appeals should be kept pending and fixed in regular course. Regular case listings before each Bench should not exceed twenty (excluding covered/group matters); where regular cases exceed that limit the excess shall be adjourned to the next available date after obtaining the Vice President's order. The Department's grievances about last minute additions, inadequate preparation time for Departmental Representatives, poor recording of arguments, and adverse comments for non representation are to be circulated to Bench Members for consideration.

Stakeholder committees for IT modernization invited to finalise software requirements and contribute implementation suggestions.
Selection of a service provider for rewriting the Income Tax Department's software suite is complete pending expenditure committee approval and contract execution. The project encompasses re writing applications in new architecture, developing a data centre, technology training and test environments, an HRMS module, legacy maintenance, non core process software, and interfaces with external systems. New functional modules will cover PAN, ITR processing, TDS interface, post processing, investigation, international taxation, recovery, appeals, exemptions, audit, document management and reporting. Specialist committees will be formed to prepare detailed software requirement specifications and stakeholders are invited to volunteer or submit suggestions via the programme email.

Depository connectivity requirement enables shifting from TFTS to normal rolling settlement if dematerialisation threshold is met.
Companies with connectivity to both depositories may be shifted from TFTS to Normal Rolling Settlement if at least 50% of non promoter holdings are dematerialised, 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 continuing TFTS; exchanges must report actions in their Monthly/Quarterly Development Report.

ECB eligibility expansion to hotel sector allows rupee loan repayment and rupee capital expenditure via ECBs; AD banks to certify project cost.
The ECB policy is amended to include hotel sector companies meeting the prescribed project cost threshold as eligible to avail ECBs for repayment of outstanding Rupee loans and for fresh Rupee capital expenditure; AD Category-I banks must certify project cost when forwarding ECB applications. All other aspects of the existing scheme remain unchanged, the amendment is effective immediately and issued under the Foreign Exchange Management Act.

Administrative control reallocation of EOUs, EHTP and STPs shifts operational oversight to local Central Excise ranges for compliance.
All administrative matters relating to 100% EOUs/EHTP/STPs, Customs Bonded Warehouses and related Customs work in Mysore, Mandya and Chamarajanagar districts are transferred from the Service Tax & EOU Division to the jurisdictional Central Excise Ranges and Divisions effective 1 February 2013; Location Code 840505 is abolished, the Service Tax & EOU Division is renamed Mysore Service Tax Division, Nanjangud and Thandavapura Range move under Mysore-III Central Excise Division, and an annexure lists the reassigned units and their new ranges and location codes.

Security arrangement restricts staff departure and prescribes building sealing and de-sealing schedule during Republic Day period.
The circular mandates police-conducted sealing and checking of Vyapar Bhawan on specified dates with de-sealing the next day until noon; it directs that no staff leave before the sealing commencement time and that all staff report for duty at the stated de-sealing time, and requires coordination between building management and law enforcement to implement these security arrangements.

System Assisted Assessment on 2A/2B mismatches warns dealers to reconcile online to avoid tax, interest and penalties.
System Assisted Assessment will be based on mismatches between submitted purchase and sales return data for July-September 2012; the assessment framing date has been extended by two weeks and assessment and penalty orders will be issued within five working days. Dealers must review the online "Mismatch Report" and reconcile discrepancies by the stated deadline to avoid additional tax, interest and penalty.

International taxation cooperation: member countries agree coordinated measures against treaty abuse, information gaps and profit shifting.
Heads of revenue agreed a cooperative framework to address international taxation and transfer pricing by adopting seven areas of joint action-development of international standards, strengthened enforcement and international cooperation against non compliance, sharing best practices and capacity building, countering treaty abuse and complex profit shifting, establishing a BRICS mechanism to counter abusive avoidance, promoting effective exchange of information, and other common tax policy concerns-and to establish central points of contact and a Governance Framework to coordinate responses and share resources.

Line of credit for export financing sets Indian content and agency commission rules, with required regulatory approval procedures.
A line of credit from Export Import Bank of India to the Nigerian Export Import Bank finances eligible exports from India, requiring at least ninety per cent of contract value to be supplied from India, with specified effective dates and cut offs for letters of credit and disbursements. Shipments must be declared on GR/SDF forms. Agency commission is ordinarily not payable under the LOC, but commissions up to five percent for exports requiring after sales services may be approved subject to prior regulatory approval and must be deducted from invoices, with the reimbursable amount limited to ninety per cent of invoice value; exporters may otherwise use own funds or EEFC balances for commission payments.

SEZ approvals and compliance: board permits co developers, area changes and selective extensions subject to contiguity and tax certification.
The Board granted conditional approvals for co developers requiring lease documents disclosing financial arrangements, limited authorized operations to the co developer agreement, and mandated BoA approval for any beyond scope agreements; Income Tax authorities retain the right to examine taxability. Area additions, de notifications and withdrawals were approved subject to DC certificates confirming contiguity and refund/non availment of tax/duty benefits and absence of state objection. Extensions of formal approvals, in principle approvals and LoPs were granted selectively subject to demonstrable project progress, contiguity requirements, environmental clearances, and repayment conditions for duty/tax benefits on relocations.

Exchange of Information: route tax information requests through designated competent authorities to ensure timely, confidential responses.
Outbound and inbound tax information requests must be routed through the designated Competent Authorities (JS(FT&TR I) for North America/Europe/Japan; JS(FT&TR II) for the rest of the world) using the prescribed Proforma. Requests must state the tax purpose, time period, grounds that the information is held in the requested jurisdiction, and foreseeable relevance; separate Proformas are required per taxpayer and per country. Field units must meet prescribed timelines, provide interim/final Annexure G/I reports and feedback within two months, and maintain strict confidentiality and secure handling of exchanged data.

Local supply requirement: procurements must be invoiced and delivered from Delhi to secure VAT revenue to the consuming state.
Tenders and contracts must require that goods and works contracts be supplied and delivered from Delhi, invoiced from Delhi, and supplied by dealers registered under Delhi VAT with a valid Tax Identification Number; bid prices must be inclusive of all taxes and duties. If local purchase would cause net revenue loss to GNCTD, prior approval of the Finance Department is required, and extra departmental expenditure may be compensated as a Non plan grant.