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: July 2018 Vol. 7 No. 4 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 JULY 16 th, JULY 22 nd,

3 INDEX SEBI UPDATE Strengthening the Guidelines and Raising Industry standards for RTAs, Issuer Companies and Banker to an Issue Clarification 4 RBI UPDATE Interest rates for Small Savings Schemes 5 INCOME TAX UPDATE Notification No. 32/2018 [504/6/2004-FTD-II(Pt.1) / SO 3468(E) 6-7 CUSTOM UPDATE Seeks to amend BCD rates on certain textile goods 8-11 Refund of IGST on export of Goods on payment of duty-setting up of Help Desks-reg Refund of IGST on export of goods on payment of duty-clarification in case of SB003 errors and 14 extension of date in SB005 & other cases using officer Interface for rectification of errors-reg. Exchange Rates Notification No. 63/2018-Custom(NT) dated Seeks to make amendments to Notification number 50/

4 SEBI UPDATES CIRCULAR SEBI/HO/MIRSD/DOS3/CIR/P/2018/115 July 16, 2018 To, All Registrars to an Issue and Share Transfer Agents registered with SEBI All Listed entities (Through Stock Exchanges) All Recognised Stock Exchanges Dear Sir / Madam, Subject: Strengthening the Guidelines and Raising Industry standards for RTAs, Issuer Companies and Banker to an Issue - Clarification 1. SEBI, vide circular No. SEBI/HO/MIRSD/DOP1/CIR/P/2018/73 dated April 20, 2018, inter-alia, mandated RTAs to send a letter under Registered/Speed post seeking PAN and bank details within 90 days of the said circular and two reminders thereof after the gap of 30 days. 2. In this regard SEBI has received several representations to extend the timelines of first letter so as to bunch it up with annual reports/notices of AGM. Further, clarifications have been sought to send the reminders by way of modes other than Registered/Speed post, citing huge cost involved and the efficacy of sending reminders by way of other modes; especially in cases where first letter sent by Registered / Speed Post returned undelivered. 3. Accordingly, in respect of para II (12)(ii) of Annexure to the aforementioned circular, it is clarified that: a. The timeline for sending the initial letter by Registered / Speed Post to physical shareholders has been extended to September 30, 2018 to enable companies to send the initial letter along with Annual Reports/notice of AGM. b. Subsequently, two reminders maybe sent by other modes including ordinary post/courier. Yours faithfully, Surabhi Gupta Deputy General Manager Tel. No: id: surabhig@sebi.gov.in 4

5 RBI UPDATES RBI/ /22 DGBA.GBD.123/ / The Chairman/Chief Executive Officer Agency Banks handling Small Saving Schemes July 19, 2018 Dear Sir Interest rates for Small Savings Schemes Please refer to our circular DGBA.GBD.2573/ / dated April 12, 2018 on the above subject. The Government of India, has vide their Office Memorandum (OM) No.F.No.01/04/2016 NS dated July 2, 2018 has stated that the interest rates on Small Savings Schemes for the second quarter of financial year starting 1st July, 2018 and ending September 30, 2018 shall remain unchanged from those notified for the first quarter of FY The contents of this circular may be brought to the notice of the branches of your bank operating Government Small Saving Schemes for necessary action. These should also be displayed on the notice boards of your branches for information of the subscribers to these Schemes. Yours faithfully (A.Sidhaarth) Manager 5

6 INCOME TAX UPDATES MINISTRY OF FINANCE (Department of Revenue) (INCOME TAX) NOTIFICATION New Delhi, the 17th July, 2018 S.O. 3468(E). Whereas, the Agreement between the Government of the Republic of India and the Government of the State of Qatar for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as the DTAA ) was signed on the 7th April, 1999; Whereas, clause (ii) of para 3 of Article 11 of DTTA provides for the mutual agreement for granting exemption from tax on interest derived and beneficially owned by governmental financial institutions/agencies; And whereas, in accordance with clause (ii) of para 3 of Article 11 a mutual agreement has been reached on the 29th April 2018, through exchange of letter dated the 16th March, 2018 of Republic of India and duly accepted by State of Qatar vide their letter dated the 29th April,2018 and the said letters were exchanged between the Republic of India and the State of Qatar (as annexed herewith) for grant of exemption from tax on interest income, in accordance with clause (ii) of paragraph 3 of Article 11 of the India-Qatar DTAA; Now, therefore, in exercise of the powers conferred by sub-section (1) of section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that the provisions of said Mutual Agreement through exchange of letters, as annexed hereto, shall be given effect to in the Union of India with effect from 29th April, ANNEXURE Letter signed by the Government of the Republic of India on 16th March, 2018 Dear Mr. Ghanim Khalifa Al Attiyah On behalf of the Government of the Republic of India, I have the honour to refer to the Agreement between the Government of the Republic of India and the Government of the State of Qatar for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income (DTAA) which came into force on 15th January, Considering the proposal on behalf of the Government of the State of Qatar and the proposal on behalf of the Government of the Republic of India, for the purposes of clause (ii) of paragraph 3 of Article 11 of the said DTAA, following governmental financial institutions/agencies are mutually agreed upon between the two Contracting States for granting tax exemption on interest income under the said Article 11(3)(ii) from the date of reaching this mutual agreement: (a) In the case of India, the Export Import Bank of India and Life Insurance Corporation of India; and (b) In the case of Qatar, the Qatar Investment Authority and Qatar Holding LLC. If the foregoing proposal is acceptable to the Government of the State of Qatar, on behalf of the Government of the Republic of India, I have the honour to suggest that the present note be regarded as constituting a mutual agreement reached in terms of clause (ii) of paragraph 3 of Article 11 of the said IndiaQatar DTAA between the two Governments, on the day you formally confirm its acceptance. Regards 6 Yours sincerely, Sd/- (Sushil Chandra)

7 Dear Mr. Sushil Chandra Letter signed by the Government of the State of Qatar on 29th April, 2018 On behalf of the Government of the State of Qatar, I have the honour to acknowledge receipt of your note dated 16th March, 2018, which reads as follows: On behalf of the Government of the Republic of India, I have the honour to refer to the Agreement between the Government of the Republic of India and the Government of the State of Qatar for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income (DTAA) which came into force on 15th January, Considering the proposal on behalf of the Government of the State of Qatar and the proposal on behalf of the Government of the Republic of India, for the purposes of clause (ii) of paragraph 3 of Article 11 of the said DTAA, following governmental financial institutions/agencies are mutually agreed upon between the two Contracting States for granting tax exemption on interest income under the said Article 11(3)(ii) from the date of reaching this mutual agreement: (a) In the case of India, the Export Import Bank of India and Life Insurance Corporation of India; and (b) In the case of Qatar, the Qatar Investment Authority and Qatar Holding LLC. If the foregoing proposal is acceptable to the Government of the State of Qatar, on behalf of the Government of the Republic of India, I have the honour to suggest that the present note be regarded as constituting a mutual agreement reached in terms of clause (ii) of paragraph 3 of Article 11 of the said India Qatar DTAA between the two Governments, on the day you formally confirm its acceptance. In reply, on behalf of the Government of the State of Qatar, I have the honour to say that the Government of the State of Qatar accepts the proposal made therein and this reply shall constitute a mutual agreement reached today in terms of clause (ii) of paragraph 3 of Article 11 of the India-Qatar DTAA, between the two Governments. Regards, Yours sincerely, Sd/- Ghanim Khalifa Al Attiyah [Notification No. 32/2018/ 504/6/2004-FTD-II(Pt.1)] RAJAT BANSAL, Jt. Secy. 7

8 CUSTOM UPDATES [TO BE PUBLIHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) Notification No. 53/2018-Customs New Delhi, the 16 th of July, 2018 G.S.R. (E). - In exercise of the powers conferred by the sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 82/2017, dated the 27th of October, 2017, published in the Gazette of India, Extraordinary vide number G.S.R.1341 (E), dated the 27th of October, 2017, namely: - In the said notification, in the Table, - (i) against serial number 23, in column (2), for the figures 5310, the figures, brackets and words 5310 (except sub-heading ) shall be substituted; (ii) after serial number 23 and entries relating thereto, the following serial number and entries shall be 23A All goods 20% ; (iii) after serial number 31 and entries relating thereto, the following serial number and entries shall be 31A All goods 20% or Rs 38 per sq meter, whichever is higher ; (iv) against serial number 104, in column (2), for the figures 56, the figures, brackets and words 56 (except sub-heading , , , , and ) shall be substituted; (v) after serial number 104 and entries relating thereto, the following serial number and entries shall be 104A , , , , , All goods 20% ; (vi) against serial number 105, in column (2) for the figures 5701, the figures, brackets and words 5701 (except sub-heading ) shall be substituted; (vii) after serial number 105 and entries relating thereto, the following serial number and entries shall be 105A All goods 20% ; (viii) against serial number 106, in column (2), the figures shall be omitted; 8

9 (ix) after serial number 106 and entries relating thereto, the following serial number and entries shall be 106A All goods 20% ; (x) against serial number 108, in column (2), the figures shall be omitted; (xi) after serial number 108 and entries relating thereto, the following serial number and entries shall be 108A All goods 20% ; (xii) against serial numbers 109, 115, 116, 117, 118 and 120, in column (4), for the figures 10%, the figures 20% shall be substituted; (xiii) against serial number 121, in column (2), for the figures 5705, the figures, brackets and words 5705 (except sub-heading ) shall be substituted; (xiv) after serial number 121 and entries relating thereto, the following serial number and entries shall be substituted: - 121A All goods 20% ; (xv) against serial number 150, in column (2), for the figures, brackets and words 59 (except 5902), the figures, brackets and words 59 (except 5902, 5903 and ) shall be substituted; (xvi) after serial number 151 and entries relating thereto, the following serial number and entries shall be 151A 5903 All goods 20% ; 151B All goods 20% ; (xvii) against serial number 163 in column (4), for the figures 10%, the figures 20% shall be substituted; (xviii) against serial number 177, in column (2), for the figures 6103, the figures, brackets and words 6103 (except sub-heading , and ) shall be substituted; (xix) after serial number 177 and entries relating thereto, the following serial number and entries shall be 177A , , All goods 20% ; (xx) against serial number 183, in column (2), the figures shall be omitted; (xxi) after serial number 183 and entries relating thereto, the following serial number and entries shall be 183A All goods 20% or Rs. 255 per piece, whichever is higher ; (xxii) against S. Nos. 187 and 188, in column (4), for the figures 10%, the figures 20% shall be substituted; (xxiii) against serial number 189, in column (2), the figures shall be omitted; 9

10 (xxiv) after serial number 189 and entries relating thereto, the following serial number and entries shall be inserted, namely : - 189A All goods 20% or Rs. 83 per piece, whichever is higher ; (xxv) against serial number 192, in column (4), for the figures 10%, the figures 20% shall be substituted; (xxvi) against serial number 201, in column (2), the figures shall be omitted; (xxvii) after serial number 201 and entries relating thereto, the following serial number and entries shall be 201A All goods 20% ; (xxviii) against S. Nos. 205, 206 and 208, in column (4), for the figures 10%, the figures 20% shall be substituted; (xxix) against serial number 210, in column (2), for the figures 6111, the figures, brackets and words 6111 (except sub-heading and ) shall be substituted; (xxx) after serial number 210 and entries relating thereto, the following serial number and entries shall be 210A , All goods 20% ; (xxxi) against serial number 212, in column (2), for the figures 6114, 6115, 6116, 6117, the figures, brackets and words 6114 (except sub-heading ), 6115 (except sub-headings , , and ), 6116 (except sub-headings and ), 6117 (except sub-headings and ) shall be substituted; (xxxii) after serial number 212 and entries relating thereto, the following serial number and entries shall be 212A , , , , , , , All goods 20% ; (xxxiii) against S. Nos. 218, 229, 232, 234, 237, 238, 239, 246 and 249, in column (4), for the figures 10%, the figures 20% shall be substituted; (xxxiv) against serial number 250, in column (2), the figures , shall be omitted; (xxxv) after serial number 250 and entries relating thereto, the following serial number and entries shall be 250A , All goods 20% or Rs. 145 per piece, whichever is higher ; (xxxvi) against S. Nos. 254, 255, 256, 257, 259, 262 and 263, in column (4), for the figures 10%, the figures 20% shall be substituted; (xxxvii) against serial number 274, in column (2), the figures shall be omitted; 10

11 (xxxviii) after serial number 274 and entries relating thereto, the following serial number and entries shall be 274A All goods 20% ; (xxxix) against S. Nos. 277 and 278, in column (4), for the figures 10%, the figures 20% shall be substituted; (xl) against serial number 285, in column (2), the figures , shall be omitted; (xli) after serial number 285 and entries relating thereto, the following serial number and entries shall be 285A , All goods 20% or Rs. 30 per piece, whichever is higher ; (xlii) against serial number 293, in column (2), for the figures 6217, the figures, brackets and words 6217 (except sub-heading ) shall be substituted; (xliii) after serial number 293 and entries relating thereto, the following serial number and entries shall be 293A All goods 20% ; (xliv) against S. Nos. 297 and 298, in column (4), for the figures 10%, the figures 20% shall be substituted; (xlv) after serial number 304 and entries relating thereto, the following serial number and entries shall be All goods 20% ; [F. No. 354/123/2017-TRU (pt)] (Gunjan Kumar Verma) Under Secretary to the Government of India Note: The principal notification no. 82/2017-Customs, dated 27 th October, 2017 was published vide number G.S.R.1341(E), dated 27 th October, 2017 and last amended by notification no. 14/2018 Customs dated 02 nd February, 2018 published vide number G.S.R.117(E) dated 2 nd February,

12 Circular 21/2018-Customs F. No: 450/119/2017-CusIV Government of India Ministry of Finance Department of Revenue (Central Board of Indirect Taxes and Customs) ***** Room No. 227B, North Block, New Delhi dated 18 th July, 2018 To, All Principal Chief Commissioner/Chief Commissioner of Customs/ Customs & Central Tax / Customs (Preventive) All Principal Commissioner/Commissioner of Customs/ Customs& Central Tax / Customs (Preventive) All Director Generals under CBIC. Subject: Refund of IGST on export of Goods on payment of duty-setting up of Help Desks -reg. Sir/ Madam, Various representations have been received in the Board wherein micro, small and medium enterprise exporters have informed that their IGST refunds are held up and that they are unable to approach Customs port of exports due to factors like distance, lack of information/knowledge etc. As part of the ongoing Refund Fortnight, it has been decided to set up Help Desks at the offices of FIEO and AEPC for expeditious resolution of IGST refund related issues. 2. The Help Desks would be located at the locations mentioned in Annexure A, and would function for a period of 2 weeks till 1st August, They will be manned by officers of Customs, who shall be nominated by the jurisdictional Customs zone. The necessary infrastructure like Computer, Scanner/Printer, Internet, Cabin Space etc. would be made available to the officers by FIEO/AEPC. 3. The Directorate of Systems shall provide the status of each pending IGST refund claim with specific error due to which it is being held up, on Antarang. The icegate ID of the officer(s) deputed at the Help Desk may immediately be informed to Team.ICES@icegate.gov in to enable access to the data. The officers deputed at Help Desks would use this data to inform the exporters about the documents required, if any, and guide them to resolve the errors. The exporters can provide details related to any port of export at the Help Desk near their location. The Help Desk shall act as an extended office of the Port of export and collect documents/ information on behalf of the port of export. The details provided by the exporters to the Help Desk shall be transmitted by ICEGATE to the nodal officers at the port of export. The ICEGATE e- mail ID of the nodal officer of each port of export shall immediately be informed to Team.ICES@icegate.gov.in. The Customs officers at the port of export shall process the refund claim after all the necessary details/documents submitted at the Help Desks have been forwarded to the nodal officer at the port of export. There shall be no need for the exporters to visit any port of export once all the requisite documents/information have been submitted at the Help Desks. 4. Field formations may, therefore, take necessary steps to bring these changes to the knowledge of exporters. 5. Difficulties, if any, may be brought to the notice of the Board. Yours faithfully (Zubair Riaz) Director (Customs) 12

13 Annexure A 1. FIEO offices in the following locations (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Ahmedabad Bangalore Chennai Cochin Coimbatore Delhi Hyderabad Kolkata Ludhiana Mumbai 2. AEPC office, Tirupur. 13

14 Circular No. 22/2018-Customs F. No: 450/119/2017-CusIV Government of India Ministry of Finance Department of Revenue (Central Board of Indirect Taxes and Customs) ***** Room No. 227-B, North Block, New Delhi dated 18th July, 2018 To, All Principal Chief Commissioner/Chief Commissioner of Customs/ Customs& Central Tax / Customs (Preventive) All Principal Commissioner/Commissioner of Customs/ Customs & Central Tax / Customs (Preventive) All Director Generals under CBIC. Subject: Refund of IGST on export of goods on payment of duty-clarification in case of SB003 errors and extension of date in SB005 & other cases using officer Interface for rectification of errors-reg. Sir/ Madam, It may be recalled that in circular 15/2018-Customs dated , CBIC has provided for the resolution of SB003 error in certain cases through the utility developed by the Directorate of Systems in a similar manner as SB005 error. It has been brought to the knowledge of the Board that in several cases, the exporters have mentioned PAN instead of GSTIN in the Shipping Bills, even though GSTIN has been correctly mentioned while filing the GST returns. Due to this mismatch, the IGST refund claims are not getting processed. 2. The matter has been examined. As PAN is embedded in the GSTIN, CBIC has decided to accord similar treatment to such cases also as are already covered under Para 2 of Circular 15/2018-Customs. The conditions prescribed in para 2 of the said circular shall apply mutatis mutandis. 3. CBIC has issued circulars 05/2018-Customs dated , 08/2018-Customs dated and 15/2018-Customs dated wherein an alternative mechanism with an officer interface to resolve invoice mismatches (SB005 error) was provided for the shipping bills filed till Despite wide publicity and outreach programmes to make exporters aware about the need to have identical details in invoices given in shipping Bills and GST returns, it has been observed that a few exporters continue to commit such errors. Therefore, in view of the ongoing Refund Fortnight, giving high priority to the interests of exporters, it has been decided by the Board to extend the rectification facility to Shipping Bills filed up to Further, the facility of rectification through Officer Interface is also extended in case of other errors mentioned in circulars (8/2018-Customs and 15/2018-Customs) for shipping bills filed up to However, at the same time, exporters are advised to henceforth ensure due diligence and discipline to avoid such mismatch errors as such extensions are not likely to be considered in future. 5. Field formations may, therefore, take necessary steps to bring these changes to the knowledge of exporters. 6. Difficulties, if any, may be brought to the notice of the Board. Yours faithfully (Zubair Riaz) Director (Customs) 14

15 GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) ***** Notification No. 63/ Customs (N.T.) New Delhi, dated the 19th July, Ashadha 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.60/2018-CUSTOMS (N.T.), dated 5th July, 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 20th July, 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 Export Goods) 1. Australian Dollar Bahrain Dinar Canadian Dollar Chinese Yuan Danish Kroner EURO Hong Kong Dollar Kuwait Dinar New Zealand Dollar Norwegian Kroner Pound Sterling Qatari Riyal Saudi Arabian Riyal Singapore Dollar South African Rand Swedish Kroner Swiss Franc UAE Dirham US Dollar SCHEDULE-II Sl.No. Foreign Currency Rate of exchange of 100 units of foreign currency equivalent to Indian rupees (1) (2) (3) (a) (b) (For Imported Goods) (For Export Goods) 1. Japanese Yen [F.No. 468/01/2018-Cus.V] 15 (Dr. Sreeparvathy S.L.) Under Secretary to the Govt. of India TELE:

16 [TO BE PUBLIHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) Notification No. 54 /2018-Customs New Delhi, the 20 th of July, 2018 G.S.R. (E). - In exercise of the powers conferred by the sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 50/2017, dated the 30 th of June, 2017, published in the Gazette of India, Extraordinary vide number G.S.R. 785 (E), dated the 30 th of June, 2017, namely: - In the said notification, in the Table, the S. No. 330 and the entries relating thereto shall be omitted. [F.No. 354/123/2017- TRU (pt)] (Gunjan Kumar Verma) Under Secretary to the Government of India Note: The principal notification No. 50/2017-Customs, dated the 30 th 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 30 th June, 2017 and last amended vide notification No. 52/2018-Customs, dated the 14 th July, 2018, published vide number G.S.R. 648 (E), dated the 14 th July,

17 (Corporate Laws and Intellectual Property Rights Consultants) Delhi I Mumbai I Hyderabad I Kanpur Corporate Office: 63/12, First Floor, Main Rama Road, New Delhi Ph: /17, Mob: brijesh@bmcadvisors.in, brijesh@brijeshmathur.com Website: 17