Online VAT return filing: temporary relief for Block R10 and R3 reporting, with revised Form 1 and receipt procedure.
The circular grants a time bound relaxation permitting omission of Block R10 in Form 1 until specified extended dates for the 2nd quarter 2013 14 (with penalty thereafter) and makes R3 tax contribution in Form DVAT 16 non mandatory for that quarter only. The notification amends the Central Sales Tax (Delhi) Rules, 2005 by substituting the receipt procedure requiring Form DVAT 56 and replacing Form 1 with a revised return format that details turnover, deductions, tax computation, adjustments, deposit proof requirements and verification.

Specified restaurant service tax liability extends to air-conditioned sections and related areas, non-air-conditioned outlets remain exempt.
A restaurant that has air conditioning or central air heating at any time during the year is a specified restaurant and its services in serving food or beverages attract service tax; in a complex with clearly demarcated restaurants served from a common kitchen only the specified restaurant's services are taxable while services of non-air-conditioned outlets remain exempt with CENVAT credit governed by the CENVAT Credit Rules. Services by a specified restaurant in other hotel areas are taxable, and goods sold on an MRP basis are excluded when valuing the taxable service portion.

Sale by public auction ordered to realise tax revenue for perishable sealed goods after no claimant established ownership.
Order directing public auction of perishable goods (supari) stored in sealed godowns after public notice failed to identify a bonafide owner, to realise tax and penalty dues under the Delhi Value Added Tax Act, 2004, exercised by the Additional Commissioner under delegated DVAT powers and Rule 41(3)(a) of the DVAT Rules, 2005.

Delegation of power to issue redemption notices enables designated commissioners to require payment and order sale of seized goods.
The Commissioner delegates under Section 68 of the DVAT Act and rule 48 the powers under Section 63 to Additional Commissioners/Joint Commissioners to issue Form DVAT 29, require payment of tax, interest, penalty and other dues into the Consolidated Fund, and to make written orders for sale or disposal of seized goods when redemption does not occur.

Timely issuance of TDS certificates required - banks must deliver Form 16A promptly to enable timely tax filing.
Banks must provide depositors whose tax has been deducted at source with TDS certificates in Form 16A within the time-frame prescribed under the Income Tax Rules; banks should implement systems to ensure timely issuance and avoid last-minute delays. The advisory, aimed at protecting depositor interests and improving customer service, is issued under Section 36(1)(a) of the Banking Regulation Act, 1949.

System audit obligations for stock brokers require adherence to a revised framework and quarterly reporting of major non compliances.
Revised system audit framework for stock brokers requires audits according to prescribed guidelines (process, auditor selection, TOR). Stock exchanges must ensure implementation, track broker wise audit findings quarterly, ensure timely rectification of major critical findings, and report major non compliances to the regulator quarterly. Brokers already underway may follow prior exchange framework for the current year; others must adopt this framework. Exchanges must implement systems, amend bye laws where necessary, notify trading members and publish the provisions.

Return filing requirements clarified: online VAT returns must report statutory form details and rate wise turnover, with transitional relief.
Clarifications require dealers to supply details of pending statutory forms and to report tax-rate-wise turn over and exempted turnover in amended online VAT return blocks; transitional non mandatory treatment is allowed for specified tax rate fields for the second quarter only, after which such fields become mandatory. Dealers may regularise missing forms by payment with interest and enter such information in the return block, and submitted pending form details will auto reflect in future returns.

Dispute Resolution Panel reconstitution appoints three commissioners as members and a reserve for specified tax jurisdictions.
The Central Board of Direct Taxes reconstitutes Dispute Resolution Panels under Section 144C, appointing three Commissioners as members and one Commissioner as Reserve Member for each specified jurisdiction (Delhi-III and Mumbai-III), who shall perform DRP duties in addition to regular duties until directions on the draft order are issued; the reconstitution is effective from the order date and issued with the Chairperson's approval.

Dispute Resolution Panel assignments under Section 144C allocate Delhi and Mumbai DRPs by taxpayer name initials and state jurisdiction.
Designation under Section 144C reallocates eligible assessments to specified DRPs at Delhi and Mumbai, superseding the prior order, by assigning cases according to geographic jurisdiction and taxpayer name initials to ensure workload balance and efficient DRP functioning.

Notified jurisdictional area designation triggers transfer pricing treatment and strict documentation, withholding, and disclosure obligations.
Notification as a notified jurisdictional area due to lack of effective information exchange causes transactions with persons in that area to be treated as between associated enterprises and as international transactions, invoking transfer-pricing regulations and documentation obligations. Deductions for payments to financial institutions are disallowed without an authorization permitting information access; other deductions require prescribed documentation. Receipts from such persons must be explained as to source and beneficial ownership or be deemed income, and payments to persons in the jurisdiction are subject to a statutory withholding tax.

Definition of group company clarifies FDI grouping criteria based on voting control or board appointment under FEMA regulations.
A definition for group company was incorporated into the FDI regulatory framework: enterprises are related where one can exercise specified voting control in another or can appoint a majority of the other's board. The Reserve Bank issued the definition to Authorised Dealer Category I banks and amended the FEMA transfer/issue of security regulations accordingly; the directions are issued under the Foreign Exchange Management Act and are without prejudice to other statutory permissions.

Appointment of Cost Auditor: last date for filing e-Form 23C extended and additional fee relaxed.
The circular extends the last date for filing e Form 23C and relaxes the additional fee, setting the cut off as 30th November, 2013 or within 30 days of the commencement of the company's financial year to which the appointment relates, whichever is later. Form 23C requires company and auditor details, remuneration, audit period, board resolution, the central government order directing cost audit, the auditor's compliance certificate and digital signature for electronic submission.

Definition of Major audit objection revised, affecting classification and reporting and strengthening supervisory reporting timelines.
Revision strengthens supervisory oversight and reporting for settlement of Revenue Audit objections: CCIT/DGIT must review monthly performance, submit annexed proforma reports, reconcile CAP II and quarterly statistics, and monitor remedial actions and action against erring officers. CsIT/DsIT must ensure Internal Audit precedes Revenue Audit, provide LARs to CIT (Audit), avoid bunching of replies, keep correspondence approving remedial action in files, observe timelines for initiation and completion of remedial orders, hold monthly review meetings and coordinate quarterly with the external audit office.

Line of Credit to Mozambique establishes sourcing, disclosure and disbursement rules under FEMA for eligible Indian exports.
Exim Bank provided a Line of Credit to Mozambique to finance eligible Indian exports for a housing project; financed goods, services and consultancy must meet Foreign Trade Policy eligibility and minimum Indian supply content (65% for goods and services; up to 75% for consultancy). The Credit Agreement effective October 4, 2013, sets differing timelines for opening Letters of Credit and disbursements for project and supply contracts. Shipments under the LOC require GR/SDF reporting. No agency commission is payable under the LOC, though exporters may pay commission from their own resources or EEFC balances subject to remittance rules. Directions issued under FEMA.

Line of Credit enables export financing with prescribed Indian content and FEMA compliance for project exports.
A Line of Credit from Export-Import Bank of India to the Government of Mozambique finances rehabilitation works by funding eligible goods, machinery, services and consultancy sourced mainly from India; at least 75 per cent of contract value must be supplied from India with up to 25 per cent procured abroad. The Credit Agreement fixes timelines for opening Letters of Credit and disbursement, requires GR/SDF shipment declarations, disallows agency commission under the LOC while permitting exporter-funded commission remittances, and instructs AD Category-I banks to notify exporters; directions issued under FEMA.

Line of credit for export finance establishes procurement, content and disbursement conditions for a Mozambique project.
Exim Bank made a Line of Credit to Mozambique for the Rural Drinking Project Extension, requiring that eligible goods, services and consultancy qualifying under India's Foreign Trade Policy supply at least 75% of the contract value from India (up to 25% from outside). The Credit Agreement effective October 4, 2013 prescribes disbursement cut offs: 48 months from scheduled project completion for project exports and 72 months from agreement 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 remittance after realisation. AD Category I banks must inform exporters; directions issued under FEMA sections 10(4) and 11(1).

Non availment of CENVAT declaration required to claim deemed export drawback; customs duty refundable but no double benefit.
A supplier declaration of non availment of CENVAT credit/rebate (Annexure III of ANF 8) is required to claim deemed export drawback; if CENVAT on central excise duty has been availed, drawback for that excise component is not admissible. Basic customs duty paid on inputs/components remains recoverable as brand rate drawback based on actual duty paid documents under the FTP and HBP procedures. Applicants must also ensure they have not claimed CENVAT credit on service tax for input services to avoid double benefit.

Applicability of FTP import linkage clarified: imports permitted only for inputs actually used in prior exports.
Applicability of para 4.1.15 is specified: transactions with both export and import completed before the amendment are excluded; where export was completed before the amendment but import remains, imports are allowed only with an undertaking that only inputs actually used in the exported goods will be imported; transferable DFIAs endorsed before the amendment are excluded; and for exports made on or after the amendment date, para 4.1.15 applies irrespective of import timing.

Simplified container movement procedure: automatic EDI Gate approval enables ICTT-to-CFS transfers subject to IGM CFS codes and bond sufficiency.
An EDI Gate Module will automate removal of import containers from ICTT, Vallarpadom to nominated CFSs by capturing exit particulars and debiting/re crediting custodial bonds on release and arrival. Automatic movement at 'Entry Inwards' requires specific IGM fields including an eight digit destination CFS code, cargo type code, cargo movement code and MLO code; absent these, movement requires IGM amendment. Custodians must maintain adequate bond balances; seal discrepancies or tampering are recorded and such containers are subject to detailed CFS examination.

Waiver of demand notice where voluntary payment with declaration prevents issuance of a demand notice after verification.
The Standing Order sets out that voluntary payment of duty/service tax with interest and prescribed penalty, accompanied by a written declaration, may preclude issuance of a demand notice under the specified Central Excise and Finance Act provisions, subject to departmental scrutiny. A constituted Committee and tiered officer-level delegation review declarations according to monetary thresholds and Audit Monitoring referrals. Acceptance requires verification of full payment, absence of willful suppression, and consideration of factors such as novelty of levy, prior penalties, industry practice and legal disputability; a mandatory checklist and register support processing and decisions.