Direct Tax Updates
Exemptions-Interest on Bonds/Debentures as per Sec-10(15) of Income Tax Act 1961 dispensing with SDF form
For Financial year 2015-16, the Central Government hereby authorizes all entities , to issue tax free, secured, redeemable, Non-convertible bonds after aggregating the amounts allocated towards the amount of bonds subject to certain conditions, i.e. eligibility, tenure or bonds, PAN, rate of interest, issue of expense and brokerage, Public Issue, Private Placement, repayment of bonds, selection of merchant bankers.
Indirect Tax Updates
Instructions regarding detailed scrutiny of central excise returns
With view of the self-assessment procedure, every assessee himself assesses the duty liability and the responsibility of the departmental officers to scrutinize the assessment made for verification of its correctness. Return scrutiny is the first step towards verification carried out as soon as the tax return is submitted by the assessee. A return scrutiny process consists of two parts viz. preliminary scrutiny and detailed scrutiny. While the preliminary scrutiny system covers all the returns filed online, detailed scrutiny system covers a few returns selected on the basis of identified risk parameters.
Regarding digitally signed invoices in Central Excise and Service Tax-Conditions, safeguards and procedures
Every assessee who is proposing to use digital signature shall use class 2 or class 3 digital signature issued by certified authority in India and should intimate the details to the DC or AC of central Excise within 15 days at least. The assessee has to maintain the electronic records for each factory and has to produce the records by E-mail to the central Excise Officer. There should be a maintenance of back up for the electronic records maintained by assessee.
Foreign Exchange Regulation Updates
Returns to be submitted by NBFCs
All non-deposits taking NBFCs with assets less than Rs.500 crore are required to submit an annual return. The Annual Return should be submitted within 30 Days of closing of the Financial year. Since NBFCs are filing the return for the first time, it can be filed by 30th September, 2015. Further, non-deposit taking NBFCs with assets of Rs. 50- 500 crore that have already submitted there returns for the quarter ending March 31, 2015 are not required to submit the annual return for the year ending March 2015.
Foreign Investment in India by Foreign Portfolio Investors
All future investment by a foreign portfolio investors (FPI) within the limit for Investment in corporate bonds shall be required to be made in corporate bonds with a minimum residual maturity of three years. Further operational guidelines will be issued by SEBI. And all other existing conditions for investment by FPIs in the debt market remain unchanged
Originally published by Ashok Maheshwary & Associates, a fellow LEA Global member.