Legal Updates - Corporate Law Reporter

Exemption Circular U/s 212 of Companies Act and its applicability for Unlisted Companies

General Circular No: 22/2011; Government of India- Ministry of Corporate Affairs; Dated: 2nd May, 2011 All Regional Directors; All Registrars of Companies Subject: Clarification in respect of General Circular No: 2 /2011 dated 8th February,2011 It has been observed that certain companies are seeking clarification in respect of circular No. 2/11 dated 8.2.2011 issued by the Ministry in respect… Read More

Opening of Escrow Accounts for FDI transactions

RBI/2010-11/ 498 A. P. (DIR Series) Circular No. 58 May 02, 2011 To All Category-I Authorised Dealer Banks Madam / Sir, Opening of Escrow Accounts for FDI transactions Attention of the Authorised Dealer Category I (AD Category - I) banks is invited to the Foreign Exchange Management (Transfer or Issue of Security by a Person… Read More

Payment of fee under the RTI Act by Indian Postal Order

CLR Note: The person who is filing the application under Right to Information Act, can make payment through various modes including Indian Postal Order. If any authority refuses to accept the Postal order, it may be penalized by the Central Information Commission on the concerned Central Pubic Information Officer No.F.10/9/2008-IR Government of India Ministry of Personnel, PG & Pension… Read More

Exemption under section 10B of Income tax denied to undertaking on lease

Synergies Casting Ltd. v. DCIT (ITA No. 864 & 1364/Hyd/2010) The Hyderabad Tribunal has held in the above ruling that Exemption under Section 1 0B of the Act is not available to undertaking taken over on lease but the manufacturing activity has to be carried on by the taxpayer itself by using its own plant… Read More

SC rules on Benefit of Sales Tax Deferral Scheme

CLR Note :Benefit of Sales tax deferral scheme is available from the date of (base sales volume) BSV or (base production volume) BPV whichever is earlier State of Tamil Nadu & another Appellant(s) versus India Cements Ltd. & another Respondent(s) Date of Decision: 4/21/2011 Authority: Supreme Court Tamil Nadu General Sales Tax Act, 1959 ” sales tax… Read More

Repo, Reverse Repo rates, CRR hiked by RBI

On Tuesday, April 20, the short term lending rates have been hiked by Reserve Bank of India along with borrowing rates by 25 basis points each. In order to check inflation, the RBI has also hiked the portion of money banks deposit with it by 25 basis points. RBI on Tuesday raised the repo, reverse repo rates to… Read More

Power of Revenue to reopen cases in case of change of opinion is expressed

AREVA T&D, SA Vs THE ASST. DIRECTOR OF INCOME TAX & ORS. Date of Decision: 25 April, 2011 CLR Note: Where no return has been filed by the assessee for the assessment year in dispute, Income Tax department can reopen the assessment proceedings, said The Delhi high court. Sections 195 together with section 197 of the Income Tax Act, says that if… Read More

Custom raised Tariff value for crude oil, RBD Palm Oil and RBD Palmolein

CLR Note: Tariff value went up for Crude oil From 337 to 447 RBD Palm Oil From 351 to 476 RBD Palmolein From 372 to 484 Notification No. 33/2011 - Customs (N. T.) New Delhi, 29th April, 2011 S. O¦ (E) In exercise of… Read More

Issue of Irrevocable Payment Commitment (IPCs) to Stock Exchanges

Issue of Irrevocable Payment Commitment (IPCs) to Stock Exchanges on behalf of Mutual Funds (MFs) and Foreign Institutional Investors (FIIs) CLR Note: The Foreign Institutional Investors can purchase shares or convertible debentures which are issued by the Indian Company under the Portfolio Scheme and it also allowed to Custodian Bank, on behalf of FII clients for purchase… Read More

Only Operating Profit of Comparables to be considered for Transfer Pricing – ITAT

DHL Express (India) Pvt Ltd vs. ACIT (ITAT Mumbai) Brief Facts :- The assessee company is engaged in the business of couriers mainly International couriers and is belongs to DHL group. The assessee company had entered into an agreement with DHL for access the DHL network for transportation and delivery of consignment. For this purpose, the assessee company… Read More

RBI guidelines for Banks to mitigate the risks of use of Information Technology in Banking Operations

RBI/2010-11/494 DBS.CO.ITC.BC.No. 6/31.02.008/2010-11 April 29, 2011 The Chairman / Chief Executives of All Scheduled Commercial Banks (excluding RRBs) Dear Sir / Madam, Working Group on Information Security, Electronic Banking, Technology Risk Management and Cyber Frauds- Implementation of recommendations As you are aware, following the announcement in the April 2010 Monetary Policy Statement, the Working Group… Read More

Limit of USD 5 bn increased to USD 25 bn by RBI for investments in bonds and Non Convertible Debenture by FIIs

RBI/2010-11/492 A.P. (DIR Series) Circular No. 55 To, All Category I Authorised Dealer banks Madam / Sir, Foreign investments in India by SEBI registered FIIs in other securities Attention of Authorised Dealers Category I (AD Category - I) banks is invited to paragraph 1 of Schedule 5 to the Foreign Exchange Management (Transfer or Issue… Read More

RBI liberalises the norms for Advance Remittances made by Banks for Imports

RBI/2010-11/493 A.P. (DIR Series) Circular No. 56 April 29, 2011 To All Authorised Dealers in Foreign Exchange Madam/ Sir Foreign Exchange Management Act, 1999- Advance Remittance for Import of Goods - Liberalisation Attention of Authorised Dealer Category I (AD Category-I) banks is invited to A. P. (DIR Series) Circular No.106 dated June 19, 2003, A. P.… Read More