Service tax on remittances

Ministry of Finance, Central Board of Excise and Customs has clarified that no service tax is appliable on remittances from abroad in foreign currency. The "service" as defined in section 65B(44) of the Finance Act, 1994 excludes transaction in money. Since remittance amounts to transaction in money, the service tax becomes not applicable. Any fee or conversion charges levied by the foreign banks or by their Indian counterparts to the foreign banks are also out of the ambit of the service tax because the place of rendering the service is outside India and therefore the Place of Provision of Services Rules 2012 does not apply to that service. A welcome clarification from the CBEC, but I wonder why it is issued as a circular by the CBEC and not as a notification by the service tax department.

I would also wonder if the CBEC would clarify how "acting" becomes a service and actors have to pay service tax on their acting!! Bizarre!!

A copy of the CBEC circular can be found here

service tax on railways

Service tax on travel by Railways in first class or air-conditioned coaches as well as transport of goods by railways exempted upto 30th September 2012. So expect increase in train fares from 1st October 2012 for those travelling by first class or air-conditioned coaches, of which latter is usually the norm even for middle class passengers looking to travel in some comfort. Also with service tax on transport of goods kicking in from October 2012 do not expect inflation to abate. I think looking at the government inability to curb the monster called "inflation" of which the supply side constraints is baffling the government the most, it would have been wiser to leave transport of goods from the service tax ambit. But don't expect the revenue mandarins to think in the same way as the economists or the politicians who of course do not think at all of the common man!! The copy of the service tax circular can be found here

XBRL filing for FY 2011-12 ended

MCA has vide its circular dated 6th July 2012 clarified that

1) there is no change in the applicability criteria for XBRL filing for the financial year ended 2011-12 i.e. listed companies, companies with paid-up share capital above Rs.5 crores or turnover above Rs.100 crores;
2) The taxonomy for XBRL filing which will be based on revised Schedule VI is not ready, so
3) No additional fees will be levied for filings done upto 15th November 2012 or 30 days from the date of AGM whichever is later. Since the AGMs will necessarily have to be held on or before 30th September 2012 for companies having 31st March as the financial year, the exemption is available upto 15th November 2012;

Copy of the MCA circular can be found here

Timeline for physical transfer of shares reduced

SEBI has vide its circular dated 5th July 2012 reduced the timeline for transfer of shares in physical form from 30 days to 15 days not only in equity segment, but also in SME listing segment as also in debt securities segment. This has been done in consultation with the Registrars Association of India, so henceforth the RTAs have to comply with this provision. Also the half yearly certificate under clause 47-C of the listing agreement will have to refer to the new timeline for transfer of shares. A copy of the SEBI circular can be found below

CIRCULAR
CIR/MIRSD/8 /2012            July 05 , 2012
To
All Recognized Stock Exchanges
All SEBI registered Registrars to an Issue and Share Transfer Agents
Sir / Madam,
Sub:  Reduction of Time-line for Transfer of Equity Shares and Prescription of
Time-line for Transfer of Debt Securities.
1. The listing agreement for equity shares prescribed under the Securities Contracts
(Regulation) Act, 1956 inter alia specifies a period of one month for registering
transfer of shares from the date of lodgment.  
2. With a view to expedite the transfer process in the interest of  the investors, it has
been decided, in consultation with Registrars Association of India (RAIN), Stock
Exchanges and market participants to reduce the time-line for registering the
transfer of shares to 15 days. The same time-line shall also be applicable for
transfer of debt securities.
 
3. Accordingly, all the recognized stock exchanges are directed 
a. to amend Clauses 3 (c) and 12A(3) of the listing agreement for equity
shares,
b. to amend Clauses 3(c) and 14(b) of the SME Equity listing agreement,
c. to incorporate the time-line of 15 days for  transfer of debt securities
and the provision for compensation  of the opportunity losses caused
during the period of delay in transfer, in the listing agreement for debt
securities, on the lines of the existing provisions in the listing
agreement for equity shares and SEBI Circular No.
SMDRP/POLICY/CIR-46/2001 dated September 27, 2001,
d. to amend any other clauses as applicable in the above listing
agreements.
4. All SEBI registered Registrars to an Issue and Share Transfer Agents are
directed to adhere to the above time-lines for transfer of shares and debt
securities. 
5. In view of the above, the time-line for transfer of shares and / or provision for
compensation for delay thereof, as referred to in SEBI Circulars No. RTI Circular ¼ããÀ¦ããè¾ã     
Page 2 of 2
  
No.1(2000-2001) dated May 09, 2001, SMDRP/POLICY/CIR-46/2001 dated
September 27, 2001 and PMD/RRTI/NB/22463/2002 dated November 20, 2002
stand modified. 
6. This circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India  Act, 1992, to protect the interests of
investors in securities and to promote the development of, and to regulate the
securities markets and shall come into force with effect from October 01, 2012.
7. This circular is available on SEBI website (www.sebi.gov.in) under the categories
“Legal Framework” and “Circulars”.
Yours faithfully,
K. SARAVANAN
Deputy General Manager
Tel. No: 022-26449220