BMC Advisors. MCA Update SEBI Update RBI Update. Income Tax Update IPR Update Service Tax. Excise Update Custom Update GST Update.

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1 Issue: November 2018 Vol. 11 No. 1 BMC Advisors Corporate Laws and Intellectual Property Rights Consultants MCA Update SEBI Update RBI Update Income Tax Update IPR Update Service Tax Excise Update Custom Update GST Update DGFT Update 1

2 WEEKLY UPDATES OCTOBER 29 th, NOVEMBER 04 th,

3 INDEX MCA UPDATE The additional fee waiver vide circular No.10 dated 29th October 2018 has been implemented w.e.f 31st October midnight. 4 SEBI UPDATE Streamlining the Process of Public Issue of Equity Shares and convertibles 5-9 RBI UPDATE 10 Payments Bank and Small Finance Banks access to Call/Notice/Term Money Market 11 Alteration in the name of "Qatar National Bank SAQ" to "Qatar National Bank (Q.P.S.C.)" in the 12 Second Schedule to the Reserve Bank of India Act, 1934 Partial Credit Enhancement to Bonds Issued by Non-Banking Financial Companies and Housing Finance Companies INCOME TAX UPDATE Notification No. SO 5602 [F.No /194/2017-TPL] Notification No. 75/2018 [F.No.203/26/2018/ITA-II] Notification No. 76/2018 [F. No. 225/261/2018 ITA-II] CUSTOM UPDATE Amendment to sea cargo manifest and transshipment regulations, Electronic sealing-deposit in and removal of goods from Customs Bonded warehouse- 20 Deferment of Circular-19/2018-Customs dated 18th June, 2018 Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver- Reg Seeks to further postpone the implementation of increased customs duty on specified imports 23 originating in USA from 2nd November, 2018 to 17th December, 2018 Exchange Rates Notification No.90/2018-Custom(NT) dated Procedure for a Pilot on Transshipment of Export Cargo from Bangladesh to third countries through Land Customs Stations (LCSs) to Kolkata Port / Airport, in containers or closed bodied trucks reg GST UPDATE Seeks to make amendments (Thirteenth Amendment, 2018) to the CGST Rules,

4 MCA UPDATES To All Regional Directors, All Registrar of Companies, All Stakeholders. General Circular No. 10/2018 F.No. 01/34/2013 CL-V Government of India Ministry of Corporate Affairs 5 th Floor, A' Wing, Shastri Bhawan, Dr. Rajendra Prasad Road, New Delhi Dated: Subject: Relaxation of additional fees and extension of last date of in filing of forms MGT-7 (Annual Return) and AOC-4 (Financial Statement) under the Companies Act, reg. Sir, Keeping in view the requests received from various stakeholders seeking extension of time for filing of financial statements for the financial year ended on account of various factors, it has been decided to relax the additional fees payable by companies on e-forms AOC-4, AOC (CFS) AOC-4 XBRL and e- Form MGT-7 upto ' wherever additional fee is applicable. 2. This issues with the approval of the competent authority. Yours faithfully, (KMS Narayanan) Assistant Director (policy) Copy forwarded for information to:- 1. E-Governance section. 4

5 SEBI UPDATES CIRCULAR SEBI/HO/CFD/DIL2/CIR/P/2018/138 November 1, 2018 To Recognized Stock Exchanges Depositories Registered Stock Brokers Registered Merchant Bankers Registered Registrars to an Issue and Share Transfer Agents Registered Depository Participants Registered Bankers to an Issue National Payments Corporation of India Dear Sir / Madam, Sub: Streamlining the Process of Public Issue of Equity Shares and convertibles 1. SEBI, in its endeavor to provide an efficient mechanism for raising funds, has been continuously striving to streamline the process and methodologies associated with public issue fund raising process. Towards this end, the time duration from issue closure to listing was shortened from 12 working days to 6 working days with effect from January 01, 2016, making Application Supported by Blocked Amount (ASBA) mechanism as the sole payment mechanism in public issues. 2. As a part of the continuing efforts to further streamline the process, it has been decided, in consultation with the stake holders to introduce the use of Unified Payments Interface (UPI) as a payment mechanism with Application Supported by Block Amount (ASBA) for applications in public issues by retail individual investors through intermediaries (Syndicate members, Registered Stock Brokers, Registrar and Transfer agent and Depository Participants). The proposed process would increase efficiency, eliminate the need for manual intervention at various stages, and will reduce the time duration from issue closure to listing by upto 3 working days. 3. Considering the time required for making necessary changes to the systems and to ensure complete and smooth transition to UPI payment mechanism, the proposed alternate payment mechanism and consequent reduction in timelines is proposed to be introduced in a phased manner as under: 3.1 Phase I: From January 01, 2019, the UPI mechanism for retail individual investors through intermediaries will be made effective along with the existing process and existing timeline of T+6 days. The same will continue, for a period of 3 months or floating of 5 main board public issues, whichever is later. 3.2 Phase II: Thereafter, for applications by retail individual investors through intermediaries, the existing process of physical movement of forms from intermediaries to Self-Certified Syndicate Banks (SCSBs) for blocking of funds will be discontinued and only the UPI mechanism with existing timeline of T+6 days will continue, for a period of 3 months or floating of 5 main board public issues, whichever is later. 3.3 Phase III: Subsequently, final reduced timeline will be made effective using the UPI mechanism. 4. New entities / mechanisms part of the public issue process using UPI with ASBA National Payments Corporation of India (NPCI): NPCI, a Reserve Bank of India (RBI) initiative, is an umbrella organization for all retail payments in India. It has been set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks Association (IBA); 5

6 Unified Payments Interface (UPI): UPI is an instant payment system developed by the NPCI. It enables merging several banking features, seamless fund routing & merchant payments into one hood. UPI allows instant transfer of money between any two persons bank accounts using a payment address which uniquely identifies a person's bank a/c. Sponsor Bank: Sponsor Bank means a Banker to the Issue registered with SEBI which is appointed by the Issuer to act as a conduit between the Stock Exchanges and NPCI in order to push the mandate collect requests and / or payment instructions of the retail investors into the UPI; 5. Channels for making application 5.1 For the purpose of public issues, UPI would allow facility to block the funds at the time of application. With the introduction of UPI as a payment mechanism, various channels for making application in public issue by various categories of investors, in Phase I would be as below: Category of Investor Retail Individual Investor (RII) Qualified Institutional Buyer (QIB) Non Institutional Investor (NII) Channels for making application Channel I Channel II Channel III Channel IV Investor may Investor Investor may submit the bid- may submit the submit bid-cumcum-application bid- cum- application form form, with ASBA application form with any of the as the sole online using the intermediary, mechanism for facility of linked along with details making payment, physically at the branch of a SCSB, i.e. investor's bank, or online, if such facility is provided by the SCSB. For such applications, the existing process of uploading of bid and blocking of funds in investors account by the SCSB would continue. online trading, demat and bank account (3- in-1 type accounts), provided by some of the brokers. of his/her bank account for blocking of funds. For such applications, the intermediary would upload the bid in stock exchange bidding platform and forward the application form to a branch of SCSB for blocking of funds.* A RII would also have the option to submit bid-cumapplication form with any of the intermediary and use his / her UPI ID for the purpose of blocking of funds. Not applicable Not applicable 5.2 *For Phase II and Phase III, the RIIs will have the option to use only Channel I, II and IV for making application in a public issue. 6. Timelines 6.1 An indicative process flow for applications in public issue submitted by retail individual investor is placed at Annexure I. 6.2 The revised indicative timelines for various activities in Phase I & II are specified at Annexure II and Annexure III, respectively, to this circular. The timelines for Phase III will be notified subsequently. 7. Process of becoming a Sponsor Bank 6

7 7.1 Banks desirous of becoming Sponsor Bank and to be eligible to be appointed as a Sponsor Bank by the Issuer shall complete the following formalities: Register with SEBI as Bankers to an Issue in terms of SEBI (Bankers to an Issue) Regulations, 1994; UPI certification as specified, with NPCI; Mock trial run of the systems with stock exchange and RTAs, and Certify to SEBI about readiness to act as a Sponsor Bank and for inclusion of their name in SEBI s list of Sponsor Bank, as per the format specified in Annexure IV. 7.2 Such Banks shall submit the aforesaid certification to SEBI, latest by December 15, 2018, for uploading the names of such Sponsor Banks on SEBI website. 8. Process of UPI 2.0 Certification by Self Certified Syndicate Banks (SCSBs) 8.1 All SCSBs offering facility of making application in public issues shall also provide facility to make application using UPI. 8.2 For this purpose, all SCSBs shall undertake necessary certification with NPCI. 8.3 Certify to SEBI about readiness to provide facility to investor to make application using UPI as an alternate payment mechanism, as per the format specified in Annexure V. 8.4 All SCSBs shall submit the aforesaid certification to SEBI, latest by December 15, 2018, for uploading the names of such SCSBs on SEBI website. 9. Validation by Depositories 9.1 The details of investor viz. PAN, DP ID / Client ID, entered in the Stock Exchange platform at the time of bidding, shall be validated by the Stock Exchange/s with the Depositories on real time basis. 9.2 Stock Exchanges and Depositories shall put in place necessary infrastructure for this purpose. 10. Number of applications per bank account 10.1 In order to ensure parity across the various channels for submitted applications, it has been decided that an investor making application using any of the aforesaid channel, shall use only his / her own bank account or only his / her own bank account linked UPI ID to make an application in public issues Applications made using third party bank account or using third party linked bank account UPI ID are liable for rejection Sponsor Bank shall provide the investors UPI linked bank account details to RTA for purpose of reconciliation RTA shall undertake technical rejection of all applications to reject applications made using third party bank account. 11. Obligations of the Issuer 11.1 The issuer shall appoint one of the SCSBs as Sponsor Bank to act as a conduit between the Stock Exchanges and NPCI in order to push the mandate collect requests and / or payment instructions of the retail investors into the UPI; 7

8 11.2 The Sponsor Bank appointed by the issuer may be the same as the bank with whom the public issue account has been opened. 12. Other requirements 12.1 The details of commission and processing fees payable to each intermediary and the timelines for payment shall be disclosed in the offer document The intermediaries shall provide necessary guidance to their investors in use of UPI while making applications in public issues All entities involved in the process shall co-ordinate with one another to ensure completion of listing of shares and commencement of trading in Phase I by T In Phase II, such entities shall aim to expeditiously complete the process of listing of shares and commencement of trading, in any case, not later than T The text of data fields required in the Application-cum-bidding-form relating to UPI and an illustrative Application-cum-bidding-form is placed at Annexure VI to this Circular Merchant bankers shall ensure that appropriate disclosures with respect to UPI are made in offer documents and advertisements in accordance with this circular. Format for the advertisement will be issued separately All entities involved in the process are advised to take necessary steps to ensure compliance with this circular. 13. The various provisions and indicative timelines, prescribed vide the following circulars, shall stand modified to the extent stated under this circular: 13.1 SEBI/CFD/DIL/ASBA/1/2009/30/12 dated December 30, 2009; 13.2 CIR/CFD/DIL/2/2010 dated April 06, 2010; 13.3 CIR/CFD/DIL/3/2010 dated April 22, 2010; 13.4 CIR/CFD/DIL/7/2010 dated July 13, 2010; 13.5 CIR/CFD/DIL/8/2010 dated October 12, 2010; 13.6 CIR/CFD/DIL/1/2011 dated April 29, 2011; 13.7 CIR/CFD/DIL/2/2011 dated May 16, 2011; 13.8 CIR/CFD/DIL/12/2012 dated September 13, 2012; 13.9 CIR/CFD/DIL/13/2012 dated September 25, 2012; CIR/CFD/14/2012 dated October 04, 2012; CIR/CFD/DIL/1/2013 dated January 02, 2013; CIR/CFD/DIL/4/2013 dated January 23, 2013; CIR/CFD/POLICYCELL/11/2015 dated November 10, CIR/CFD/DIL/1/2016 dated January 01, 2016; SEBI/HO/CFD/DIL/CIR/P/2016/26 dated January 21, This circular shall be applicable for all Red Herring Prospectus filed for public issues opening on or after January 01,

9 15. This circular is being issued in exercise of the powers under section 11 read with section 11A of the Securities and Exchange Board of India Act, This circular is available on SEBI website at under the categories "Legal Framework" and "Issues and Listing". Yours faithfully, Narendra Rawat Deputy General Manager For Annexure, Please refer below link: 9

10 RBI UPDATES RBI/ /68 FMRD.DIRD.09/ / All Eligible Market Participants October 29, 2018 Madam/Sir, Payments Bank and Small Finance Banks access to Call/Notice/Term Money Market A reference is invited to Master Direction No.2/ , dated July 7, 2016 on Money Market Instruments. A reference is also invited to the Guidelines for Licensing of Payments Banks and Guidelines for Licensing of Small Finance Banks in the Private Sector, dated November 27, It is clarified that Payments Banks and Small Finance Banks are eligible to participate in the Call/Notice/Term money market (hereafter referred to as Call money market) both as borrowers and lenders. Such eligibility is valid even prior to the completion of the process to get themselves included in the Second Schedule of Reserve Bank of India Act, The prudential limits and other guidelines on Call money market for Payments Banks and Small Finance Banks will be the same as those applicable to Scheduled Commercial Banks in terms of the Master Direction referred above. 4. These Directions have been issued by RBI in exercise of the powers conferred under section 45W of the Reserve Bank of India Act, 1934 and of all the powers enabling it in this behalf. 5. These directions are applicable with immediate effect. Yours faithfully, (T. Rabi Sankar) Chief General Manager 10

11 RBI/ /69 DBR.No.Ret.BC.06/ / All Scheduled Commercial Banks Dear Sir/Madam November 01, 2018 Alteration in the name of "Qatar National Bank SAQ" to "Qatar National Bank (Q.P.S.C.)" in the Second Schedule to the Reserve Bank of India Act, 1934 We advise that the name of "Qatar National Bank SAQ" has been changed to "Qatar National Bank (Q.P.S.C.)" in the Second Schedule to the Reserve Bank of India Act, 1934 by Notification DBR.IBD.No.191/ / dated July 06, 2018 published in the Gazette of India (Part III-Section 4) dated August 18 August 24, Yours faithfully (M.G. Suprabhat) Deputy General Manager 11

12 RBI/ /70 DBR.BP.BC.No.7/ / All Scheduled Commercial Banks (excluding RRBs) November 2, 2018 Dear Sir/Madam, Partial Credit Enhancement to Bonds Issued by Non-Banking Financial Companies and Housing Finance Companies Please refer to circular DBR.BP.BC.No.40/ / dated September 24, 2015 on Partial Credit Enhancement to Corporate Bonds and other associated circulars issued subsequently on the subject. 2. It has now been decided to allow banks to provide partial credit enhancement (PCE) to bonds issued by the systemically important non-deposit taking non-banking financial companies (NBFC-ND-SIs) registered with the Reserve Bank of India and Housing Finance Companies (HFCs) registered with National Housing Bank, subject to the following conditions: i) The tenor of the bonds issued by NBFC-ND-SIs/HFCs for which PCEs are provided shall not be less than three years; ii) With reference to paragraph 27 of circular ibid, the proceeds from the bonds backed by PCE from banks shall only be utilized for refinancing the existing debt of the NBFC-ND-SIs/HFCs. Banks shall introduce appropriate mechanisms to monitor and ensure that the end-use condition is met; iii) The exposure of a bank by way of PCEs to bonds issued by each such NBFC-ND-SI/HFC shall be restricted to one percent of capital funds of the bank within the extant single/group borrower exposure limits; and iv) The exposure of banks to NBFC-ND-SIs/HFCs by way of PCEs shall be within the aggregate PCE exposure limit of 20 percent as provided in paragraph 24(b) of the circular ibid. 3. All other conditions stipulated in the above mentioned circular as well as circulars DBR.BP.BC.No.5/ / dated August 25, 2016 and DBR.No.BP.BC.70/ / dated May 18, 2017 on Partial Credit Enhancement to Corporate Bonds shall apply mutatis mutandis to PCEs to bonds issued by NBFC-ND-SIs/HFCs. Yours faithfully, (Saurav Sinha) Chief General Manager-in-Charge 12

13 INCOME TAX UPDATES MINISTRY OF FINANCE (Department of Revenue) ORDER New Delhi, the 31st October, 2018 S.O. 5602(E). WHEREAS, section 71 of the Prohibition of Benami Property Transactions Act, 1988 (45 of 1988) (hereinafter referred to as the Benami Act) states that the Central Government may, by notification, provide that until the Adjudicating Authorities are appointed and the Appellate Tribunal is established under the Benami Act, the Adjudicating Authority appointed under sub-section (1) of section 6 of the Prevention of Money-laundering Act, 2002 (15 of 2003) (hereinafter referred to as the PML Act) and the Appellate Tribunal established under section 25 of the PML Act may discharge the functions of the Adjudicating Authority and Appellate Tribunal, respectively, under the Benami Act; AND, whereas, the Central Government, in exercise of the powers conferred under section 71 of the Benami Act has appointed the Adjudicating Authority and established the Appellate Tribunal under the provisions of the PML Act vide notification number S.O (E), dated 25th October,2016 with effect from 1st day of November, 2016; AND, whereas, on appointment of the Adjudicating Authority and establishment of the Appellate Tribunal under the Benami Act, the Adjudicating Authority and the Appellate Tribunal notified under section 71 of the Benami Act shall cease to discharge the functions under the Benami Act, and whereas, there shall be a time gap between the appointment of the Adjudicating Authority and establishment of the Appellate Tribunal under the Benami Act and discharging the functions of the said Authority and the said Appellate Tribunal under the Benami Act; AND, whereas, a difficulty has arisen in respect of the reference and appeal filed under the Benami Act which are pending before the Adjudicating Authority and the Appellate Tribunal respectively and in respect of receiving references from the Initiating Officer by the Adjudicating Authority and filing of appeal against the order of the Adjudicating Authority under the Benami Act, there is a need to remove the difficulty arising from the time gap between the appointment of the Adjudicating Authority and establishment of the Appellate Tribunal under the Benami Act and discharging the functions of the said Authority and the said Appellate Tribunal under the Benami Act; AND, whereas, sub-section (7) of section 26 of the Benami Act provides that the Adjudicating Authority shall not pass order after the expiry of one year from the end of the month in which the reference has been received by it from the Initiating Officer and whereas, on the date on which the Adjudicating Authority under the Benami Act shall discharge the functions under the Benami Act, there may be references pending before the Adjudicating Authority notified under section 71 of Benami Act in which order under sub-section (3) of section 26 may be required to be passed in a short period of time; AND, whereas, a difficulty has arisen in view of the fact that the Adjudicating Authority appointed under the Benami Act may not have sufficient time for passing an order in respect of said references and there is a need to remove the difficulty arising from the availability of limited time for passing such order under the Benami Act; 13

14 NOW, therefore, in exercise of the powers conferred by sub-section (1) of section 70 of the Prohibition of Benami Property Transactions Act, 1988 (45 of 1988) the Central Government hereby makes the following Order to remove the aforesaid difficulties, namely:- 1. Short title and commencement. (1) This Order may be called the Prohibition of Benami Property Transactions (Removal of Difficulties) Second Order, (2) It shall come into force on the date of its publication in the Official Gazette. 2. In section 71 of the Prohibition of Benami Property Transactions Act, 1988, after the words under this Act occurring at the end, the words for such period and in respect of such cases or class of cases as may be specified in the said notification shall be inserted. [F. No /194/2017-TPL] PRAVIN RAWAL, Director (Tax Policy & Legislation) 14

15 TO BE PUBLISHED IN PART II, SUB-SECTION (ii) OF SECTION 3 OF THE GAZETTE OF INDIA) Government of India Ministry of Finance (Department of Revenue) (Central Board of Direct Taxes) New Delhi, the 31st October, 2018 Notification S.O. It is hereby notified for general information that the organization M/s Charutar Arogya Mandai, Gujarat (PAN:- AAATC1264G) has been approved by the Central Government for the purpose of clause (ii) bf sub-section (1) of section 35 of the Income tax Act, 1961 (said Act), read with Rules 5C and 5E of the Income-tax Rules, 1962 (said Rules), from Assessment year onwards in the category of 'University, College or other Institution', engaged in research activities, subject to the following conditions, namely:- (i) The sums paid to the approved organization shall be used to undertake scientific research; (ii) The approved organization shall carry out scientific research through its faculty members or enrolled students; (iii) The approved organization shall maintain separate books of accounts in respect of the sums received by it for scientific research, reflect therein the amounts used for carrying out research, get such books audited by an accountant as defined in the explanation to sub-section (2) of section 288 of the said Act and furnish the report of such audit duly signed and verified by such accountant to the Commissioner of Income-tax or the Director of Income-tax having jurisdiction over the case, by the due date of furnishing the return of income under sub-section (I) of section 139 of the said Act; (iv) The approved organization shall maintain a separate statement of donations received and amounts applied for scientific research, such donations shall be used exclusively for core scientific research and a copy of such statement duly certified by the auditor shall accompany the report of audit referred to above. (v) Donations being received by the organization under clause (ii) of sub-section (I) of section 35 of the Act, shall be used exclusively for core scientific research only and not for hospital activities, activities related to treatment of patients, general educational activities (other than research) or any other object of the organization. (vi) The approved organization shall, by the due date of furnishing the return of income under subsection (1) of section 139, furnish a statement to the Commissioner of Income-tax or Director of Income-tax containing- a detailed note on the research work undertaken by it during the previous year; a summary of research articles published in national or international journals during the year; any patent or other similar rights applied for or registered during the year; programme of research projects to be undertaken during the forthcoming year and the financial allocation for such programme. 2. The Central Government shall withdraw the approval if the approved organization:- a) fails to maintain separate books of accounts referred to in sub-paragraph (iii) of paragraph 1; or 15

16 b) fails to furnish its audit report referred to in sub-paragraph (iii) of paragraph I ; or c) fails to furnish its statement of the donations received and sums applied for scientific research referred to in sub-paragraph (iv) of paragraph 1; or d) ceases to carryon its research activities or its research activities are not found to be genuine; or e) ceases to conform to and comply with the provisions of clause (ii) of sub-section (I) of section 35 of the said Act read with rules 5C and 5E of the said Rules. Notification No 75/2018 (F.No.203/26/20 18/IT A-II) To The Manager, Govt. of India Press, Mayapuri, New Delhi (Rajarajeswari R.) Under Secretary to Government of India Copy forwarded to: 1. The applicant organization, M/s Charutar Arogya Mandai, Gujarat. 2. CCIT (E), New Delhi 3. CIT (E),Ahemadabad 4. Web Manager, New Delhi, for placing on the website incometaxindia.gov.in 5. ITCC, CBDT (4 copies) 6. Concerned file 7. Guard file (Rajarajeswari R.) Under Secretary to Government of India 16

17 [TO BE UBLISHED IN THE GAZETIE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB SECTION (ii)] Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes NOTIFICATION New Delhi, the 31 st of October, 2018 In exercise of powers conferred under clause (iii) of Explanation to clause (e) of the proviso to sub-section (5) of Section 43 of the Income-tax Act, 1961 (43 of 1961) read with sub-rule (4) of Rule 6DDD of the Incometax Rules, 1962, the Central Government hereby notifies Indian commodity Exchange Limited(PAN:AABCI9479D) as a 'recognised association' for the purpose of said clause with effect from subject to fulfilment of following conditions in respect of trading in co modify derivatives, namely; (i) The Exchange shall have the approval of the Forward Markets Commission established under the Forward contracts (Regulation) Act, 1952 (74 of 1952) (merged with Securities and Exchange Board of India vide Gazette Notification No. S.O.2630 (E) dated ) in respect of trading in derivatives and shall function in accordance with the guidelines or conditions laid down by it; or (ii) It shall ensure that the particulars of the client (including unique client identity number, and PAN) are duly recorded and stored in its databases; or (iii) it shall maintain a complete audit trail of all transactions (in respect of derivative market) for a period of atleast seven years on its system; or (iv) it shall ensure that transactions (in respect of derivative market) once registered in the system are not erased; (v) it shall ensure that the transactions (in respect of derivative market) once registered in the system are modified only in cases of genuine error (as mentioned in Circular of SEBI dated in SEBI/HO/CDMRD/DMP/CIR/P/2016/73) and maintain data regarding all transactions (in respect of derivative market) registered in the system which have been modified and submit a monthly statement in Form No. 3BC to the Director General of Income-tax (Intelligence and Criminal Investigation), New Delhi within fifteen days from the last day of each month to which such statement relates. 2. This notification shall remain in force. a. until the approval granted by the Securities and Exchange Board of India is withdrawn or expires; or b. if any of the conditions stipulated in para above, are violated; or c. under exercise of power vested in Central Government under, sub-rule (5) of rule 6DDD of the Income tax Rules, 1962, this notification shall stand rescinded on with liberty to the exchange to file a fresh application for approval under clause (e) of the proviso to sub-section (5) of section 43 of the Act for the subsequent period, whichever is earlier. 17

18 (Rajarajeswari R.) Under Secretary (ITA-II), CBDT Notification No. 76 /2018 (F. No. 225/261/2018 ITA-II) To The Manager, Government of India Press, Mayapuri, New Delhi Copy forwarded to: - 1. PPS to FM/Dir (FMO)/OSD to MoS(R)/PPS to RS/PPS to Chairman, CBDT and all Members, CBDT. 2. The applicant, Indian Commodity Exchange Limited, Mumbai. 3. Securities and Exchange Board of India, Mumbai 4. DGIT (I&CI}, New Delhi 5. All Pr. CCsIT/DGsIT for kind information. 6. Pr.ClT-4, Delhi 7. ITCC, CBDT (4 copies) 8. O/o Pr. DGIT (Systems), New Delhi, for placing on the website: incometaxindia.gov.in. 9. Guard File. (Rajarajeswari R.) Under Secretary (ITA-II), CBDT 18

19 CUSTOM UPDATES [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) Notification No. 88/2018-Customs (N.T.) New Delhi, the 30th October, 2018 G.S.R. (E). - In exercise of the powers conferred by section 157, read with sections 30, 30A, 41, 41A, 53, 54, 56, sub-section (3) of section 98 and sub-section (2) of section 158 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes and Customs hereby makes the following regulations further to amend the Sea Cargo Manifest and Transhipment Regulations, 2018, namely: - 1. Short title and commencement. - (1) These regulations may be called the Sea Cargo Manifest and Transhipment (Second Amendment) Regulations, (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Sea Cargo Manifest and Transhipment Regulations, 2018, in regulation 1, in sub-regulation (2), for the words, figures and letters "the 1st November, 2018", the words, figures and letters "the 1st March, 2019" shall be substituted. [F. No. 450/58/2015- Cus-IV} (B. Konthoujam) Under Secretary to the Government of India Note: The principal regulations were published in the Gazette of India, Extraordinary, Part II, Section 3 Subsection (i) vide number G.S.R. 448(E), dated the 11th May, 2018 and were amended vide notification No. 65/2018-Customs (N.T) dated the 30th July, 2018 vide number G.S.R. 716 (E), dated the 30th July,

20 F.No: 484 / 3 / 2015 LC (Vol II) Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes & Customs Circular No. 41/2018-Customs Room No. 226, North Block, New Delhi Dated 30th October, 2018 To, Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Customs Subject: Electronic sealing Deposit in and removal of goods from Customs bonded Warehouses Reference may be made to Circular No. 39/2018-Customs dated 23rd October, 2018 issued by the Board informing that the updated version of Circular No. 19/2018-Customs dated 18th June, 2018, introducing electronic sealing for deposit in and removal of goods from Customs Bonded Warehouses, will be implemented from The Board has decided to extend the date of implementation to 01st January, 2019 in order to enable establishment of infrastructure and procurement of seals by warehouse owners. (Dr. Swati Bhanwala) OSD (Land Customs) 20

21 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART-II, SECTION-3, SUBSECTION (ii)] Government of India Ministry of Finance (Department of Revenue) (Central Board of Indirect Taxes and Customs) Notification No. 89/2018-CUSTOMS (N.T.) New Delhi, 31st October, Kartika, 1940 (SAKA) S.O. (E). In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated the 3rd August, 2001, published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 748 (E), dated the 3rd August, 2001, namely:- In the said notification, for TABLE-1, TABLE-2, and TABLE-3 the following Tables shall be substituted, namely: - TABLE-1 Sl. No. Chapter/ heading/ sub-heading/tariff item Description of goods Tariff value (US $Per Metric Tonne) (1) (2) (3) (4) Crude Palm Oil RBD Palm Oil Others Palm Oil Crude Palmolein RBD Palmolein Others Palmolein Crude Soya bean Oil Brass Scrap (all grades) Poppy seeds 2076 TABLE-2 Sl. No. Chapter/ heading/ sub-heading/tariff item Description of goods Tariff value (US $) (1) (2) (3) (4) 1 Gold, in any form, in respect of which the 71 or 98 benefit of entries at serial number 356 and 358 of the Notification No. 50/ per 10 grams Customs dated is availed 2 Silver, in any form, in respect of which the 71 or 98 benefit of entries at serial number 357 and 359 of the Notification No. 50/ per kilogram Customs dated is availed 21

22 TABLE-3 Sl. No. Chapter/ heading/ sub-heading/tariff item Description of goods Tariff value (US $ Per Metric Tonne) (1) (2) (3) (4) Areca nuts 3947 [F. No. 467/01/2018 -Cus-V] (Dr. Sreeparvathy S.L.) Under Secretary to the Govt. of India Note: - The principal notification was published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide Notification No. 36/2001 Customs (N.T.), dated the 3rd August, 2001, vide number S. O. 748 (E), dated the 3rd August, 2001 and was last amended vide Notification No. 86/2018-Customs (N.T.), dated the 15th October, 2018, e-published in the Gazette of India, Extraordinary, Part-II, Section-3, Subsection (ii), vide number S. O. 5312(E), dated 15th October,

23 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (Department of Revenue) Notification No. 77/2018-Customs New Delhi, the 1 st November, 2018 G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and sub-section (12) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 785(E), dated the 30th June, 2017, namely:- In the said notification, in the third proviso for the words and figures 2nd day of November, 2018, the words and figures 17th day of December, 2018 shall be substituted. [F. No. 341/15/2018- TRU] (Gunjan Kumar Verma) Under Secretary to the Government of India Note: The principal notification No.50/2017-Customs, dated the 30th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 785(E), dated the 30th June, 2017 and last amended, vide, notification No. 72/2018 -Customs, dated the 28th September, 2018, published, vide, number G.S.R. 944(E)., dated the 28th September,

24 GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) ***** Notification No.90/ Customs (N.T.) New Delhi, dated the 1st November, Kartika 1940 (SAKA) In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Central Board of Indirect Taxes and Customs No.87/2018-CUSTOMS (N.T.), dated 18th October, 2018 except as respects things done or omitted to be done before such supersession, the Central Board of Indirect Taxes and Customs hereby determines that the rate of exchange of conversion of each of the foreign currencies specified in column (2) of each of Schedule I and Schedule II annexed hereto, into Indian currency or vice versa, shall, with effect from 2nd November, 2018, be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported and export goods. SCHEDULE-I Sl.No. Foreign Currency Rate of exchange of one unit of foreign currency equivalent to Indian rupees (1) (2) (3) (a) (b) (For Imported Goods) (For Exported Goods) 1. Australian Dollar Bahraini Dinar Canadian Dollar Chinese Yuan Danish Kroner EURO Hong Kong Dollar Kuwaiti Dinar New Zealand Dollar Norwegian Kroner Pound Sterling Qatari Riyal Saudi Arabian Riyal Singapore Dollar South African Rand Swedish Kroner Pound Sterling Qatari Riyal Saudi Arabian Riyal Singapore Dollar South African Rand Swedish Kroner Swiss Franc UAE Dirham US Dollar

25 SCHEDULE-II Sl.No. Foreign Currency Rate of exchange of 100 units of foreign currency equivalent to Indian rupees (1) (2) (3) (a) (For Imported Goods) (b) (For Exported Goods) 1. Japanese Yen [F.No. 468/01/2018-Cus.V] (Dr. Sreeparvathy S.L.) Under Secretary to the Govt. of India TELE:

26 F.No. 550/02/2018-LC Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes & Customs Circular 42/2018-Customs North Block, New Delhi Dated 2nd November 2018 To, The Principal Chief Commissioner/Chief Commissioner of Customs The Principal Commissioners /Commissioner of Customs Madam/Sir, Subject: Procedure for a Pilot on Transhipment of Export Cargo from Bangladesh to third countries through Land Customs Stations (LCSs) to Kolkata Port / Airport, in containers or closed bodied trucks Reg. References have been received from trade and industry for permitting transit of export cargo from Petrapole to Kolkata Port and Nhavasheva Ports / Kolkata Airport for better cargo evacuation and to improve logistics efficiency of the region. 2. The matter has been examined. Section 54 of the Customs Act, 1962 allows for transhipment of goods through India, for which the Board is empowered to prescribe a form - Bill of Transshipment and a procedure. Before prescribing the procedure by way of a Regulation, it has been decided that a Pilot Program will be initiated for a period of six months, to gain experience and obtain feedback from industry, so as to build a Regulation which is facilitative as well as include safeguards against any cargo diversion. 3. The facility shall be available from the following LCSs and ports/air Cargo complexes w.e.f. 5th November 2018: Sl. No. Name of LCSs Name of port/ air cargo 1 LCS Petrapole Kolkata Port Air Cargo complex, Kolkata 2 (i) LCS Petrapole (ii) LCS Gede/Ranaghat By rail to Nhavasheva port 4. The following procedure is being prescribed for allowing the transhipment: (i) (ii) A Bill of Transshipment ( Annexure-A) in respect of goods (being transported by road in a close bodied truck or as containerized cargo) brought to the LCS intended to be transshipped to Port/ Air cargo for export to third countries, shall be filed at the LCS by the Shipping Line or Airline or their authorised representative; the Bill of Transshipment in respect of goods (being transported by rail in a closed wagon or as containerized cargo) brought to the LCS and intended to be transshipped to the Port/ air cargo for export to third countries, shall be filed by the Shipping Line or Airline or their authorised representative at the LCS; 26

27 (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv) the shipping line or airline intending to carry the cargo to be transshipped will be at liberty to authorize a Customs Broker for filing the Bill of Transshipment; The Import Report filed by the transporter (for goods moving by road or rail) shall specify the Port/ air cargo through which the cargo is meant to be transshipped and state the destination port or airport of discharge. No cargo meant for discharge in India is permitted to be brought in the same truck/container/wagon, carrying the transhipment cargo; the Bill of Transshipment shall be presented in triplicate to the proper officer (Superintendent of Customs) for permission; While presenting the Bill of Transshipment, the authorised representative of the shipping line or Airline shall produce an Electronic Cargo Tracking System (ECTS) seal for sealing the closed body truck or container, as the case may be. The seal number shall be declared on the Bill of Transshipment; The ECTS seal shall be procured by the shipping line or airline or the authorised customs broker at their own cost. Presently, the ECTS services are being offered by M/s Transecur Telematics Private Limited (wwww.transecur.com) under ADB s Pilot Program for monitoring of traffic in transit of Nepal; The Bill of Transshipment shall be accompanied by a Bond (Annexure-B) for an amount equivalent to twice the value of the goods, which may be specific to the consignment or a general bond; there shall be no need for the proper officer to obtain any security or surety; Upon the proper officer (Superintendent) permitting transshipment, the goods may be unloaded from the Bangladeshi vehicle and loaded on to an Indian Truck under customs supervision. However, if the cargo is brought to the LCS by an Indian truck, then the same vehicle may be allowed to carry the cargo to the port or airport. In case of movement by rail, the same shall be undertaken by CONCOR; The original of the Bill of Transshipment shall be retained by the LCS while the duplicate copy (transference copy) shall be carried with the cargo by the driver in a sealed envelope to the Kolkata Port / Airport. The triplicate copy shall be retained by the authorised representative of the shipping line or airline. Upon reaching the Port of Loading (Airport / Port), the transference copy of Bill of Transshipment shall be submitted by the person-in-charge of the conveyance to the proper officer of Customs; the proper officer shall check the ECTS web application for seal integrity and if there is no alert regarding unauthorized unsealing, the ECTS seal shall be removed and returned to the person-incharge of the conveyance. The Proper Officer shall permit the goods to be loaded on board the aircraft or vessel, as the case may be, by recording his order on the Bill of Transshipment; The details of the Sea or Air manifest (export manifest) shall be recorded on the Bill of transshipment as well as uploaded on the ECTS web application upon which a Trip Report will be generated at the Port or Airport and LCS for record. The Transshipment Bond can then be duly credited or cancelled, as the case may be. There will be no need for a physical copy of the Bill of Transshipment to be sent to the LCS. In case the trip report indicates any unauthorized un-sealing, the matter shall be brought to the notice of the Deputy/Assistant Commissioner/Superintendent of Customs for action as appropriate. 27

28 5. Difficulties, if any, faced in the implementation of this circular should be brought to the notice of the Board. (Temsunaro Jamir) Joint Commissioner (ICD) 28

29 GST UPDATES [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)] Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs Notification No. 60/2018 Central Tax New Delhi, the 30th October, 2018 G.S.R (E). - In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:- 1. (1) These rules may be called the Central Goods and Services Tax (Thirteenth Amendment) Rules, (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), after rule 83, the following rule shall be inserted, namely:- 83A. Examination of Goods and Services Tax Practitioners.- (1) Every person referred to in clause (b) of sub-rule (1) of rule 83 and who is enrolled as a goods and services tax practitioner under sub-rule (2) of the said rule, shall pass an examination as per sub-rule (3) of the said rule. (2) The National Academy of Customs, Indirect Taxes and Narcotics (hereinafter referred to as NACIN ) shall conduct the examination. (3) Frequency of examination.- The examination shall be conducted twice in a year as per the schedule of the examination published by NACIN every year on the official websites of the Board, NACIN, common portal, GST Council Secretariat and in the leading English and regional newspapers. (4) Registration for the examination and payment of fee.- (i) A person who is required to pass the examination shall register online on a website specified by NACIN. (ii) A person who registers for the examination shall pay examination fee as specified by NACIN, and the amount for the same and the manner of its payment shall be specified by NACIN on the official websites of the Board, NACIN and common portal. (5) Examination centers.- The examination shall be held across India at the designated centers. The candidate shall be given an option to choose from the list of centers as provided by NACIN at the time of registration. (6) Period for passing the examination and number of attempts allowed.- (i) A person enrolled as a goods and services tax practitioner in terms of sub-rule (2) of rule 83 is required to pass the examination within two years of enrolment: 29

30 Provided that if a person is enrolled as a goods and services tax practitioner before 1st of July 2018, he shall get one more year to pass the examination: Provided further that for a goods and services tax practitioner to whom the provisions of clause (b) of sub-rule (1) of rule 83 apply, the period to pass the examination will be as specified in the second proviso of sub-rule (3) of said rule. (ii) A person required to pass the examination may avail of any number of attempts but these attempts shall be within the period as specified in clause (i). (iii) A person shall register and pay the requisite fee every time he intends to appear at the examination. (iv) In case the goods and services tax practitioner having applied for appearing in the examination is prevented from availing one or more attempts due to unforeseen circumstances such as critical illness, accident or natural calamity, he may make a request in writing to the jurisdictional Commissioner for granting him one additional attempt to pass the examination, within thirty days of conduct of the said examination. NACIN may consider such requests on merits based on recommendations of the jurisdictional Commissioner. (7) Nature of examination.-the examination shall be a Computer Based Test. It shall have one question paper consisting of Multiple Choice Questions. The pattern and syllabus are specified in Annexure-A. (8) Qualifying marks.- A person shall be required to secure fifty per cent. of the total marks. (9) Guidelines for the candidates.- (i) NACIN shall issue examination guidelines covering issues such as procedure of registration, payment of fee, nature of identity documents, provision of admit card, manner of reporting at the examination center, prohibition on possession of certain items in the examination center, procedure of making representation and the manner of its disposal. (ii) Any person who is or has been found to be indulging in unfair means or practices shall be dealt in accordance with the provisions of sub-rule (10). An illustrative list of use of unfair means or practices by a person is as under: - (a) obtaining support for his candidature by any means; (b) impersonating; (c) submitting fabricated documents; (d) resorting to any unfair means or practices in connection with the examination or in connection with the result of the examination; (e) found in possession of any paper, book, note or any other material, the use of which is not permitted in the examination center; (f) communicating with others or exchanging calculators, chits, papers etc. (on which something is written); (g) misbehaving in the examination center in any manner; (h) tampering with the hardware and/or software deployed; and (i) attempting to commit or, as the case may be, to abet in the commission of all or any of the acts specified in the foregoing clauses. (10) Disqualification of person using unfair means or practice.- If any person is or has been found to be indulging in use of unfair means or practices, NACIN may, after considering his representation, if any, declare him disqualified for the examination. 30