International Customs Day observance set for January 27; formations to host events and submit activity reports and photos.
Field formations are instructed to organise International Customs Day on 27 January 2014 involving trade members, CHA associations, senior officers of associated departments and other stakeholders, and to submit a report of activities with photographs to the Board by sending soft copies to [email protected] and [email protected].

Gold import controls: refiners' dore imports limited, FIFO refining and export-linked accrual restrictions enforced under FEMA directives
Refiners may import dore initially up to a capped share of their license entitlement for exporters on a FIFO basis; subsequent import quantities are to be lot wise based on export performance. Imported dore must be refined and released under the 20:80 principle, with customs monitoring. Further imports are allowed only against export proof on an accrual, export linked basis; Authorized Dealers must inform constituents. Directions issued under Sections 10(4) and 11(1) of FEMA, 1999.

Prohibition on subcontracting by customs cargo service providers - unauthorised outsourcing breaches cargo integrity and invites enforcement.
Regulation 6(2) prohibits Customs Cargo Service Providers from leasing, transferring customs-area premises or subcontracting/out sourcing custody and handling functions for imported or exported goods without written permission of the Commissioner of Customs; the Board reports cases of unauthorised subcontracting that compromised cargo integrity and directs jurisdictional Commissioners to review compliance, initiate remedial action, and enforce penalties for violations.

Filing of information in block R.10 of CST Form 1 may be submitted with the third quarter return; deadline extended to 31 Jan.
Block R.10 of Form 1 requires reporting receipts and pendency of central statutory forms/declarations for concessional inter state sales/stock transfers for the preceding four years, inserted by amendment to the Central Sales Tax (Delhi) Rules, 2005; dealers may file R.10 separately via a delinked online facility or include it with the third quarter 2013 14 return, and the Commissioner extended the third quarter filing deadline to 31 January 2014, with returns acknowledged by issuance of Form DVAT 56 and specified supporting challan attachments.

VCES payment deadline extension: banks and NSDL must accept ST2-backed payments despite missing registration, regularization mandated.
The Department of Financial Services directed designated banks and NSDL to extend the VCES e-payment deadline until midnight on the stated date and to accept payments against a copy of the ST2 registration certificate even if the registration number is not present in the banks'/NSDL's database, provided such transactions are regularized on the next working day; the facilitation measures are to be widely publicised to ensure implementation.

SAD exemption on SEZ/FTWZ clearances not available for stock transfers to DTA for self-consumption, therefore payable.
The circular clarifies that the SAD exemption for goods cleared from SEZ/FTWZ into the DTA is conditional on those goods not being exempt from sales tax/VAT when sold in the DTA. Stock transfers from SEZ/FTWZ to DTA units for self-consumption are not subject to sales tax/VAT and therefore do not meet the condition for exemption; consequently SAD is leviable on such transfers. Field formations should issue trade/public notices and report implementation difficulties to the Board.

SION revision reduces permitted input quantities for a specified chemical export product, preserving product description and inputs.
Modification of Standard Input Output Norms (SION) A-2611 revises permitted input quantities for a specified chemical export product by deleting and replacing the existing SION entry in the Handbook of Procedures Vol II; the inputs and export product description remain unchanged while the allowed quantities for listed import items are reduced.

Voluntary compliance scheme deadline prompts extended office and bank hours to accept declarations; partial payment required to qualify.
Operational measures facilitate final filings under the Voluntary Compliance Encouragement Scheme (VCES) 2013: Service Tax offices will operate extended hours and accept demand drafts/pay orders under the Receipt Payment Rules, and designated banks will extend hours to receive payments. Declarants must remit the required portion of declared tax by the statutory deadline to remain eligible; failure to pay will result in ineligibility and, from the following year, authorities will enforce statutory arrest and prosecution provisions against non-compliant service providers.

Export authorization requirement for specified hazardous chemicals: electronic application with prescribed data, issue upon central clearance.
Exports of Dimethylamine Hydrochloride, Sodium Cyanide and Sodium Fluoride require prior DGFT authorization. Exporters must e mail the designated inbox (with copy to the jurisdictional Regional Authority) providing IE Code, applicant name and address, item with ITC(HS) code, quantity (figures and words), FOB value, foreign buyer details and three years' export history. DGFT headquarters will decide on the submission; the jurisdictional Regional Authority will issue authorizations after headquarters clearance and on receipt of the formal ANF 2D application.

Compounding authority for TDS offences clarified: jurisdictional CCIT/DGIT authorised to compound offences under TDS provisions.
The authority competent to compound all applications for compounding of technical offences is the CCIT/DGIT having jurisdiction over the case; in TDS-related cases, the competent authority is the CCIT under whose jurisdiction the CIT(TDS) functions.

Fiduciary capacity shareholding excluded from calculation of holding-subsidiary relationship under Companies Act, guiding registrars and stakeholders.
Shares held or powers exercisable by a company in another company in a fiduciary capacity shall not be counted for the purpose of determining the holding-subsidiary relationship under section 2(87) of the Companies Act, 2013; this clarification aligns with prior exclusion under the Companies Act, 1956 and is issued by the Ministry of Corporate Affairs for registrars and regional directors.

Specific input identification required in shipping bills for export authorisation redemption; interim invoice signature permitted for SEZ filings.
Paragraph 4.1.15 requires the exact specific name/description of inputs used in manufacturing exported goods to be endorsed in the shipping bill and to match the Authorisation; only inputs so endorsed will be allowed at redemption or discharge of export obligation. Where SEZ-online lacks a facility to record input details, assessing officers should put their dated signature on the body of the invoice(s) attached to the bill of export to verify the specific inputs, and exporters should use this interim measure until the online module is modified.

Know Your Client requirements: Section C moved from Part I to Part II; intermediaries must update forms within transition period.
Certain client information formerly in Section C of Part I of the standard Account Opening Form is moved to Part II for individuals and non-individuals. Revised Part I data are to be captured by KRAs from the date of the circular, and intermediaries have six months to modify pre-printed KYC forms. The shift retains basic, stable KYC in Part I for central capture while placing changeable, intermediary-specific details in Part II to reduce repeated KRA updates and harmonise KYC across the financial sector.

Customs broker licence renewal procedure requires prescribed documentary compliance and antecedent verification before approval.
Renewal of a Customs Broker Licence under Regulation 9 of CBLR, 2013 requires submission within the prescribed pre expiry period of a complete set of documents including Form A, CHA licence copy (Form B), premises proof, identity card list, Bond in Form D, five year performance summary, three years of service tax and income tax returns, fee challan, FDR security deposit, solvency certificate, PAN documentation, constitutive documents, CHAs Association membership, Powers of Attorney as required, and a declaration addressing constitution/address changes, inoperative cards, Regulation 16 accounts, pending judicial matters, arrears, and reasons for any delay; antecedent verification will follow and renewal, once approved by the Commissioner, will be intimated and listed on the Policy Branch notice board.

Tax administration reform solicits stakeholder input to recommend organizational, procedural, dispute resolution and taxpayer service improvements.
Establishment of a Tax Administration Reform Commission to advise the Ministry of Finance and report on four core reform areas: organizational structure and HR systems; business process modernization and ICT use; dispute resolution mechanisms for domestic and international taxation; and taxpayer services and education, including grievance redressal, duty drawback and refunds. The Commission will hold stakeholder consultations nationwide, invites industry and professional bodies to provide inputs through designated representatives, and requests advance submissions by the stated deadline.

Foreign investment in rupee bonds: non-residents may subscribe to tax-free secured non-convertible bonds enabling on-lending to infrastructure or deposit placement.
Resident entities authorised by the Government of India may issue tax-free, secured, redeemable, non-convertible bonds in Rupees to persons resident outside India; proceeds may be used only for on-lending/re-lending to the infrastructure sector or placed in fixed deposits with banks in India pending utilisation, pursuant to amendments to the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations and under the authority of the Foreign Exchange Management Act, 1999.

Mandatory electronic tax payment now requires internet-banking deposits for taxpayers exceeding the reduced annual payment threshold.
Assessees whose total tax or duty paid in the preceding financial year meets or exceeds the revised threshold, including amounts paid using CENVAT credit, are required to deposit service tax and central excise duty electronically via internet banking; amendments to Rule 6(2) of the Service Tax Rules and Rule 8(1) of the Central Excise Rules implement this change effective 1 January 2014.

Special audit fees schedule for VAT dealers set, with slab-based auditor remuneration, capped local conveyance, and no TA/DA.
Prescribes a slab-based fee schedule for auditors conducting Special Audit under Section 58A of the DVAT Act, 2004, tied to defined turnover bands; defines turnover net of tax; permits actual local conveyance beyond 8 km capped at 10% of the audit fee; applies service tax as applicable; disallows TA/DA for audits outside Delhi; and requires auditors to submit bills to the Zonal Additional/Joint Commissioner for verification and forwarding to the Additional Commissioner, Special Audit.

Reversal of CENVAT credit: proposed deeming of non excisable goods as exempted to enable credit reversal mechanisms.
The rules currently treat non excisable goods as outside the definition of exempted goods and therefore raw materials, consumables and services used for manufacture of non excisable goods do not qualify as inputs or input services, are not eligible as CENVAT credit, and are not subject to reversal under rule 6; an amendment deeming non excisable goods to be exempted is proposed to bring such inputs and services within rule 6 reversal mechanics.

Electronic payment requirement expanded: broader set of service taxpayers must remit service tax via internet banking.
Taxpayers who paid at least the reduced threshold in the preceding financial year, including CENVAT-utilised amounts, must deposit Service Tax electronically by internet banking under the amended proviso to Rule 6(2) of the Service Tax Rules; a corresponding amendment to Rule 8(1) of the Central Excise Rules imposes the same requirement for central excise, with both notifications taking effect from the stated effective date.