TaxTMI Updates e-Newsletter
Feb 11,2012

Summary: Change in classification must be prospective. Classification depends on HSN with explanatory notes, the Rules of Interpretation, and section and chapter notes, considering functional utility and predominant use. An approved classification list by the jurisdictional officer remains operative unless reviewed; retrospective reclassification to deny previously approved treatment is impermissible. Provisional assessments may be finalized later, and differential duty arising from such lawful finalization is not time barred.

Summary: The quarterly Public Debt Management report for Oct-Dec 2011 links slowing growth, elevated inflation, subdued capital inflows and export deceleration to pressures on debt markets; it records that dated security issuances largely followed the calendar with cumulative borrowings covering most of the budgeted program, notes net negative treasury-bill issuance in the quarter and use of Cash Management Bills for cash mismatches, reports a rise in issuance weighted average maturity and yields, an increase in total public debt with marketable internal debt dominant, a decline in short term rollover exposure, and describes secondary market yield movements and concentrated trading activity.

Summary: India's exports rose in January 2012 and grew cumulatively April 2011-January 2012, but import growth outpaced exports over the same cumulative period, producing a larger trade deficit; sectoral detail highlights major export contributors (engineering, petroleum products, gems and jewellery, pharmaceuticals, leather, textiles, electronics, garments) and major import growth in petroleum, precious metals, machinery, electronics, chemicals and coal. The Commerce Secretary stated these are provisional estimates subject to change.

Summary: India and the European Union advanced bilateral trade and investment discussions focused on progressing the proposed BTIA to expand and diversify trade, with leaders and delegations working to converge positions and resolve differences on trade-related issues to strengthen negotiation momentum and deepen economic cooperation.

Summary: The National Data Sharing and Accessibility Policy establishes a framework to promote sharing and public access to Government of India owned shareable data in both human readable and machine readable forms, requiring proactive, periodically updatable dissemination through a nationwide network and applying to all data created, generated, collected or archived using public funds by government entities and authorised agencies.

Summary: Guidelines create a framework for DPSU formation of joint ventures requiring fair, transparent partner selection, defined JV scope, regular reporting and monitoring, and preservation of DPSU control through prior approval rights on key corporate actions; they also provide exit mechanisms and require board-managed DPSUs to operate within this framework to advance efficiency, risk management and self-reliance in defence production.

Summary: Rescission of a sector-specific Special Economic Zone for information technology and IT-enabled services at Village Sholinganallur withdraws the prior notification of 18.60.4 hectares. The rescission follows the developer's proposal and the Central Government's letter of approval for denotification, and is exercised under the SEZ statutory framework and rules, while preserving actions done or omitted before the rescission.

Summary: Establishment of project offices in India by foreign entities is permitted under general permission only when the entity complies with the regulatory prior permission requirements and all specified conditions; previously granted general permission is subject to continued adherence to those regulatory provisions, and Authorised Dealer Category I banks must inform their constituents accordingly.