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FINANCE BULLETIN
Knowledge multiplies through sharing

Vol. VII/ Issue No.9/Sept 2013 Compiled by CMA R Satyanarayana, M.Com, FCMA
(Commenced in May 2007) E-mail : yadav,satyanarayana@gmail.com
Mobile: (91) 949-186-8036












EDITORIAL
Dear friends,
The most important thing for the corporate
world would be the new Companies Bill 2012
passed by parliament which has received the
assent of the president of India, release of
liberalized FDI policy in various sectors,
deregulation of interest rates of NRE account,
a trial based attempt by government to
extend benefits for exports through posts and
SEBI directive to brokers to get their software
audited to check stock market losses covered
in this issue.
Increase in the rate of interest subvention to
3% from the existing rate of 2% on Rupee
export credit, provisions contained in the new
Companies Bill regarding Corporate Social
Responsibility (CSR) are welcome features
covered here.
Professionals and others to note the reduction
in maximum permissible remittance limit for
Residents to $ 75000 per year from existing
$200000, conditions for getting the Tax Treaty
benefits to Non-Residents, what is considered
ass misdeclaration to customs, FAQ and
clarificatory circular on VCES Scheme which
are highlights of the month.
With regards
R. Satyanarayana

INDEX
CONTENTS PAGE No.
GENERAL 2
RESERVE BANK OF INDIA 2
ACCOUNTS & AUDIT 2
LABOUR LAWS 2
DGFT 2
CUSTOMS LAW 3
INCOME TAX 3
SEBI 3
COMPANY LAW 3
QUOTES FOR THE MONTH
1. For winning people you have to be
genuine and sincere with no hidden
agenda. Harry Paul &Ross Reck

2. What you give is what you get. Give
others something great and then enjoy
the benefits of greatness all around you
-Tom Morris

Disclaimer: The compiler is not in any
way responsible for the result of any
action taken on the basis of the contents
of this Finance Bulletin.
FINANCE BULLETIN

Vol. VII/ Issue No.9/Sept 2013 Page 2

FINANCE
BULLETIN
(Abridged Version)
GENERAL
Plastic money: As a part of clean note policy
initiative, RBI is planning to introduce Rs. 10
plastic notes in five cities Jaipur,
Bhubaneswar, Kochi, Shimla and Mysore, on
a trial basis vide The Hindu BL dated 23rd
Aug, 2013.
RESERVE BANK OF INDIA
Liberalized remittance scheme- reduction in
ODI limit: RBI has notified that with
immediate effect Authorized dealers are
allowed to remit maximum of US$ 75000 per
year in place of earlier limit of US$ 2,00,000
per Resident for authorized current account
or capital account transactions or both
subject certain other convictions indicated
by RBI in the RBI/2013-14/181 AP(DIR
CIRCULAR) No. 24 dated 14
th
Aug, 2013.
Interest Sub-vention: In respect of Rupee
Export credit the Government of India has
decided to increase the rate of interest
subvention on the existing sectors from the
present 2% to 3% with effect from August 1,
2013 for full details refer to
RBI/2013-14/200 DBOD.Dir.BC.No.43
/04.02.001/2013-14 dated 26
th
Aug, 2013.
Liberalization of FDI policy: CG has issued a
press release on 16th July, 2013 liberalizing
the FDI Policy in respect of various sectors
under automatic route and most important
among them being in respect of single brand
retail trading allowing up to 49% FDI under
automatic route and thereafter under
approval route. For details of various sectors
in which liberalized FDI is applicable refer to
Press release dated 16th July, 2013 issued by
Ministry of Commerce & Industry.
ACCOUNTS & AUDIT
IND AS implementation: A high-level core
committee, comprising representatives of
various regulators-RBI, SEBI, IRDA and the
Corporate Affairs Ministry will meet on 23
rd

Aug, 2013 to decide the road map for
implementation of IND AS vide Hindu BL
dated 16
th
Aug, 2013.
Job Portal of ICSI: The Institute of Company
Secretaries of India (ICSI) has launched a
Placement Portal for its Members and the
Corporates. The portal provides free of cost
online platform for Corporates and Members
for details refer to www.icsi.org
LABOUR LAWS
CPI for Industrial workers: Labour
Department has released the consumer
price index No. for June 2013 as 231 for
details refer to www.labuorbureau.gov.in
Pension: Supreme court held that Pension,
Gratuity and encashable accumulated leave
are rights which cannot be forfeited by
employer even in the case of employees who
are charge-sheeted or prosecuted for
criminal proceedings vide decision given in
the case of Jithendra Kumar Srivatsava The
Endau dated 21
st
Aug, 2013.
DGFT
Advance Authorization Scheme/DFIA:
Inputs actually used in manufacture of the
export product should only be imported
under the authorization. Similarly inputs
actually imported must be used in the export
product. This has to be established in
respect of every Advance Authorization /
DFIA vide NOTIFICATION NO. 31 (RE-2013)/
2009-2014 dated 1
st
Aug, 2013.

FINANCE BULLETIN

Vol. VII/ Issue No.9/Sept 2013 Page 3

INCOME T AX TAX
Revised Forms 15CA & 15CB: CBDT has
issued circular amending IT rules regarding
furnishing of information of sum paid to Non
Residents and revised Forms 15CA & 15CB
vide Notification No.58/2013 dated 5
th
Agu,
2013.
Reporting of payments to Non-residents:
CBDT has issued a circular indicating that no
need of obtaining certificate of CA in Form
15CB in case of certain transactions and also
for transactions not exceeding Rs 50,000 and
aggregating to not more than Rs 250000 in a
year for full details and revised compliances
refer to Notification No.58/2013 dated 5
th

Aug, 2013.
Treaty benefits to Non-Residents: CBDT has
prescribed Form 10F to furnish the
additional details in respect of Non-
Residents to claim the benefits available
under the Treaty agreements for details
refer to Notification No.57/2013 dated 1
st

Aug, 2013.
Information of payments to Non-Residents:
CBDT has issued Notification No.58/2013
dated 5
th
Aug, 2013 amending the IT Rules
and prescribing the Format for furnishing the
information by person responsible for
making payment to a non-resident, not
being a company, or to a foreign company.
Tax Administration Reforms Commission:
The Ministry of Finance has issued a press
release dated 13.08.2013 stating that the
Union Cabinet has approved the proposal for
setting up of the Tax Administration Reform
Commission (TARC). The Commission will
review the application of tax policies and tax
laws in India in the context of global best
practices and recommend measures to
strengthen the capacity of the tax system in
India that would reflect best global practices.
CUSTOMS RULES
Mis-delcaration to customs: Import /
Export documentation should indicate the
quantity in all documents only in accordance
with single Unit Quantity Code (UQC) against
each Tariff Item and the same should be
reflected in Bill of Entry / Shipping bills / Bill
of export by importers/exporters/Customs
Brokers, otherwise it will be treated as mis-
declaration / wrong declaration vide CBEC
Circular No.26/2013 dated 19
th
July, 2013.
SEBI
Audit of software used by brokers: To check
stock market losses due to technical glitches,
SEBI has made it mandatory for brokers and
traders to get their trading systems and
software tools tested and audited in
consultations with the stock exchanges vide
The Hindu BL dated 21
st
Aug, 2013.
COMPANY LAW
Companies Bill 2012 passed by Parliament:
The Parliament has passed the historic
Companies Bill 2012, moved by Shri Sachin
Pilot, Minister of Corporate Affairs. The Bill
was passed by the Rajya Sabha on 9
th
Aug,
2013 which had already been passed by the
Lok Sabha many months ago (in December
2012). Shri Pilot has termed it as a historic
day for the country as it will usher in a new
era in the Corporate Governance. President
has given his assent to the Bill and the same
is published in the Gazette of India on 30
th

Aug, 2013.
CSR: According to the new Companies law
that was recently cleared by the Parliament
any company having a net worth of Rs 500
crore or more or turnover of over Rs 1000
crore or more or a net profit of Rs 5 crore
will have to spend 2% of their last three
years average net profits on CSR activities
for which government is likely to create a
database of projects which can be tapped
that need CSR funds and CG will prescribe
set of guidelines but the decision of the CSR
committee on the Board of companies is
final as regards to selection of CSR projects
vide The Hindi BL dated 16
th
Aug, 2013.