Issue: January 2019 Vol. 01 No. 3 BMC Advisors Corporate, Legal and IP Advisory Firm MCA Update SEBI Update RBI Update Income Tax Update IPR Update Service Tax Excise Update Custom Update GST Update DGFT Update 1
WEEKLY UPDATES JANUARY 14 th, 2019- JANUARY 20 th, 2019 2
INDEX MCA UPDATE The Companies (Amendment) Ordinance, 2019 4 NCLT Amendment Rules, 2019 5 SEBI UPDATE Guidelines for public issue of units of InvITs - Amendments 6-7 Guidelines for public issue of units of REITs - Amendments 8-10 Norms for investment and disclosure by mutual funds in derivatives 11-12 RBI UPDATE External Commercial Borrowings (ECB) Policy New ECB Framework 13-14 SERVICE TAX UPDATE Applicability of Service Tax on Asian Development Bank (ADB) and International Finance Corporation (IFC) 15 CUSTOM UPDATE Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, 16-17 Areca Nut, Gold and Sliver - Reg Exchange Rates Notification No.05/2019-Custom(NT) dated 17.1.2019 18-19 GST UPDATE Seeks to amend notification No. 48/2017 to amend the meaning of Advance Authorisation 20 DGFT UPDATE Additional extension of six months in the Export Obligation Period (EOP) (beyond permissible 21 extension period in Para 4.42 of the HBP) to advance authorizations issued upto 30.06.2016 involving import of Raw cashew (SION E S) relaxation of Policy/ Procedure Incorporation of Appendix V under ITC (HS) 2017, Schedule-I (Import Policy) - regd 22 Amendment in policy condition of Nicotinic Acid & Nicotinamide (Niacinamide/ niacin) under 23 HS Code 29362920 of ITC (HS) 2017, Schedule I (Import Policy) 3
MCA UPDATES MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 12th January, 2019/Pausha 22, 1940 (Saka) THE COMPANIES (AMENDMENT) ORDINANCE, 2019 NO. 3 OF 2019 Promulgated by the President in the Sixty-ninth Year of the Republic of India. An Ordinance further to amend the Companies Act, 2013, WHEREAS the Companies (Amendment) Ordinance, 2018 was promulgated by the President on the 2nd day of November, 2018; AND WHEREAS the Companies (Amendment) Bill, 2019 to replace the Companies (Amendment) Ordinance, 2018 has been passed by the House of People on the 4 th day of January, 2019 and is pending in the Council of States; AND WHEREAS the Companies (Amendment) Bill, 2019 could not be taken up for consideration and passing in the Council of States; AND WHEREAS the Companies (Amendment) Ordinance, 2018 will cease to operate on the 21 st day of January, 2019; AND WHEREAS it is considered necessary to give continued effect to the provisions of the Companies (Amendment) Ordinance, 2018; AND WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action; NOW, THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is pleased to promulgate the Companies (Amendment) Ordinance, 2019. For the full notification, Please refer below mentioned link: http://www.mca.gov.in/ministry/pdf/notificationcao2019_15012019.pdf 4
[To be published in the Gazette of India, Extraordinary, Part, II, Section 3, and Sub Section- (i)] Ministry of Corporate Affairs NOTIFICATION New Delhi, dated the 15 th January, 2019 G.S.R - (E).- In exercise of the powers conferred by sub-section (1) and sub-section on (2) of section 469 of the Companies Act, 2013(18 of 2013), the Central Government hereby makes the following rules further to amend the National Company Law Tribunal Rules,2016, namely :- 1. (1) These rules may be called the National Company Law Tribunal (Amendment) Rules, 2019 (2) They shall come into force on the date of their publication in the official Gazette. 2. In the National Company Law Tribunal Rules, 2016, in rule 71:- (i) In sub-rule (3), in clause (b) for the words "Central Government" the words "Regional Director" shall be substituted. (ii) In sub-rule (4), for the words "Central Government" the words "Regional Director" shall be substituted. [F. No. 1/30/2013 CL.V] (K.V.R. Murty) Joint Secretary to the Government of India Note:- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, subsection (i) vide number G.S.R. 716(E), dated the 21 st July,2016 and amended vide notification number G.S.R. 1159(E) dated the 20 th December, 2016 and vide notification number G.S.R. 840 (E) dated 5 th July, 2017. 5
SEBI UPDATES CIRCULAR SEBI/HO/DDHS/CIR/P/2019/16 January 15, 2019 To All Infrastructure Investment Trusts (InvITs) All Parties to InvITs All Recognized Stock Exchanges (except Commodity Exchanges) All Merchant Bankers Dear Sir / Madam, Sub: Guidelines for public issue of units of InvITs - Amendments 1. This is in continuation to SEBI circular No. CIR/IMD/DF/55/2016 dated May 11, 2016, which provided the Guidelines for public issue of units of InvITs ( InvIT Guidelines ). 2. With a view to further rationalise and ease the process of public issue of units of InvITs, it has been decided to provide for following in the InvIT Guidelines: a. In clause 3 of Schedule A, i. explanation to sub-clause (1) shall be substituted with following: "Explanation: Institutional investors is as defined under Regulation 2(1)(y) of SEBI (Issue Of Capital And Disclosure Requirements) Regulations, 2018." ii. Sub-clause 2(h) shall be substituted with the following: (g) Neither the merchant bankers(s) nor any associate of the merchant bankers, other than mutual funds sponsored by entities which are associate of the merchant bankers or insurance companies promoted by entities which are associate of the merchant bankers or pension funds of entities which are associate of the merchant bankers or Alternate Investment Funds (AIFs) sponsored by the entities which are associate of the merchant bankers or FPIs other than Category III sponsored by the entities which are associate of the merchant bankers, shall apply under the Anchor Investors category. b. In clause 6 of Schedule A, i. Following proviso shall be inserted after the proviso to sub-clause (3) "Provided further, that in case of force majeure, banking strike or similar circumstances, the InvIT, for reasons to be recorded in writing, may extend the bidding (issue) period disclosed in the offer document, for a minimum period of three working days, subject to total bidding period not exceeding thirty days." c. In clause 8 of Schedule A, i. In sub-clause (3), the word five shall be substituted with the word two. d. In clause 9 of Schedule A, i. sub-clause (1) to (5), shall be substituted with following: (1) The InvIT shall accept bids using only the Application Supported by Blocked Amount (ASBA) facility for making payment i.e. writing their bank account numbers and authorising the banks to make payment in case of allotment, by signing the application forms. Further, the bidding process shall be done only through an electronic bidding platform provided by recognised stock exchanges. 6
(2) An investor, intending to subscribe to a public issue, shall submit a completed bid-cum-application form to Self- Certified Syndicate Banks (SCSBs), with whom the bank account to be blocked is maintained or any of the following intermediaries: a. A syndicate member (or sub-syndicate member) b. A stock broker registered with a recognised stock exchange c. A depository participant ( DP ) d. A registrar to an issue and share transfer agent ( RTA ) (3) Role of intermediaries: a. Intermediaries accepting the application forms shall be responsible for uploading the bid along with other relevant details in application forms on the electronic bidding system of stock exchange(s) and submitting the form to SCSBs for blocking of funds (except in case of SCSBs, where blocking of funds will be done by respective SCSBs only). b. All applications shall be stamped and thereby acknowledged by the intermediary at the time of receipt. (4) Role of Stock Exchanges: a. Stock Exchanges to provide transparent electronic bidding facility. b. Stock exchange(s) shall validate the electronic bid details with depository s records for DP ID, Client ID and PAN, by the end of each bidding day and bring the inconsistencies to the notice of SCSBs or intermediaries concerned, for rectification and re-submission within the time specified by stock exchange(s). c. Stock exchange(s) shall allow modification of selected fields viz. DP ID/Client ID or Pan ID (Either DP ID/Client ID or Pan ID can be modified but not BOTH), Bank code and Location code in the bid details already uploaded on a daily basis upto timeline as has been specified. d. The stock exchanges shall develop the systems to facilitate the investors to view the status of their public issue applications on their websites and sending the details of applications and allotments through SMS and E-mail alerts to the investors. (5) The blocking of funds accompanied with any revision of Bid, shall be adjusted against the amount blocked at the time of the original bid or the previously revised bid. e. In clause 13 of Schedule A, i. sub-clause (7), shall be substituted with following: "The merchant bankers shall submit a compliance certificate in respect of news reports appearing for the period between the date of filing the draft offer document with the Board and the date of closure of the issue in accordance with the Clause (11) of Schedule IX of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018." 3. This Circular is issued in exercise of powers conferred under Section 11(1) of Securities and Exchange Board of India Act, 1992 read with Regulation 33 of InvIT Regulations. 4. This Circular is available on SEBI website at www.sebi.gov.in under the categories Legal Framework and under the drop down Circulars. Yours faithfully, Richa G. Agarwal Deputy General Manager Investment Management Department Tel No.022-2644 9596 Email id - richag@sebi.gov.in 7
CIRCULAR SEBI/HO/DDHS/CIR/P/2019/15 January 15, 2019 To All Real Estate Investment Trusts (REITs) All Parties to REITs All Recognized Stock Exchanges (except Commodity Exchanges) All Merchant Bankers Dear Sir / Madam, Sub: Guidelines for public issue of units of REITs - Amendments 1. This is in continuation to SEBI circular No. CIR/IMD/DF/136/2016 dated December 19, 2016, which provided the Guidelines for public issue of units of REITs ( REIT Guidelines ). 2. With a view to further rationalise and ease the process of public issue of units of REITs, it has been decided to provide for following in the REIT Guidelines: a. In clause 3 of Schedule A, i. explanation to sub-clause (1) shall be substituted with following: "Explanation: Institutional investors is as defined under Regulation 2(1)(y) of SEBI (Issue Of Capital And Disclosure Requirements) Regulations, 2018." ii. in sub-clause 2(b), following proviso to be inserted "Provided that in case of strategic investor, the aforesaid application value shall be subject to Regulation 2(1)(ztb) of the REIT Regulations." iii. Sub-clause 2(g) shall be substituted with the following: (g) Neither the merchant bankers(s) nor any associate of the merchant bankers, other than mutual funds sponsored by entities which are associate of the merchant bankers or insurance companies promoted by entities which are associate of the merchant bankers or pension funds of entities which are associate of the merchant bankers or Alternate Investment Funds (AIFs) sponsored by the entities which are associate of the merchant bankers or FPIs other than Category III sponsored by the entities which are associate of the merchant bankers, shall apply under the Anchor Investors category. b. In clause 6 of Schedule A, i. Following proviso shall be inserted after the proviso to sub-clause (3) "Provided further, that in case of force majeure, banking strike or similar circumstances, the REIT, for reasons to be recorded in writing, may extend the bidding (issue) period disclosed in the offer document, for a minimum period of three working days, subject to total bidding period not exceeding thirty days." c. In clause 8 of Schedule A, i. In sub-clause (3), the word five shall be substituted with the word two. 8
d. In clause 9 of Schedule A, i. sub-clause (1) to (5), shall be substituted with following, (1) The REIT shall accept bids using only the Application Supported by Blocked Amount (ASBA) facility for making payment i.e. writing their bank account numbers and authorising the banks to make payment in case of allotment, by signing the application forms. Further, the bidding process shall be done only through an electronic bidding platform provided by recognised stock exchanges. (2) An investor, intending to subscribe to a public issue, shall submit a completed bid-cum-application form to Self-Certified Syndicate Banks (SCSBs), with whom the bank account to be blocked is maintained or any of the following intermediaries: a. A syndicate member (or sub-syndicate member) b. A stock broker registered with a recognised stock exchange c. A depository participant ( DP ) d. A registrar to an issue and share transfer agent ( RTA ) (3) Role of intermediaries: a. Intermediaries accepting the application forms shall be responsible for uploading the bid along with other relevant details in application forms on the electronic bidding system of stock exchange(s) and submitting the form to SCSBs for blocking of funds (except in case of SCSBs, where blocking of funds will be done by respective SCSBs only). b. All applications shall be stamped and thereby acknowledged by the intermediary at the time of receipt. (4) Role of Stock Exchanges: a. Stock Exchanges to provide transparent electronic bidding facility. b. Stock exchange(s) shall validate the electronic bid details with depository s records for DP ID, Client ID and PAN, by the end of each bidding day and bring the inconsistencies to the notice of SCSBs or intermediaries concerned, for rectification and re-submission within the time specified by stock exchange(s). c. Stock exchange(s) shall allow modification of selected fields viz. DP ID/Client ID or Pan ID (Either DP ID/Client ID or Pan ID can be modified but not BOTH), Bank code and Location code in the bid details already uploaded on a daily basis upto timeline as has been specified. d. The stock exchanges shall develop the systems to facilitate the investors to view the status of their public issue applications on their websites and sending the details of applications and allotments through SMS and E-mail alerts to the investors. (5) The blocking of funds accompanied with any revision of Bid, shall be adjusted against the amount blocked at the time of the original bid or the previously revised bid. e. In clause 13 of Schedule A, i. sub-clause (7), shall be substituted with following, 9
"The merchant bankers shall submit a compliance certificate in respect of news reports appearing for the period between the date of filing the draft offer document with the Board and the date of closure of the issue in accordance with Clause (11) of Schedule IX of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018." 3. This Circular is issued in exercise of powers conferred under Section 11(1) of Securities and Exchange Board of India Act, 1992 read with Regulation 33 of REIT Regulations. 4. This Circular is available on SEBI website at www.sebi.gov.in under the categories Legal Framework and under the drop down Circulars. Yours faithfully, Richa G. Agarwal Deputy General Manager Investment Management Department Tel No.022-2644 9596 Email id - richag@sebi.gov.in 10
CIRCULAR SEBI/HO/IMD/DF2/CIR/P/2019/17 January 16, 2019 To, All Mutual Funds (MFs)/ Asset Management Companies (AMCs)/ Trustee Companies/ Boards of Trustees of Mutual Funds Sir/Madam, Subject: Norms for investment and disclosure by mutual funds in derivatives 1. This has reference to SEBI Circular no. Cir/IMD/DF/11/2010, dated August 18, 2010 on Review of norms for investment and disclosure by Mutual Funds in derivatives. 2. Mutual Fund schemes are permitted to undertake transactions in equity derivatives in accordance with the exposure limits specified in the above mentioned circular. Paragraph 4 of the said circular, inter-alia, states that Mutual Funds shall not write options or purchase instruments with embedded written options. 3. Based on the suggestions of market participants and recommendations of Mutual Fund Advisory Committee (MFAC), it has been decided to permit mutual funds to write call options under a covered call strategy as prescribed below: Writing of Covered Call Options by Mutual Fund Schemes 4. In partial modification to aforementioned circular, Mutual Fund schemes (except Index Funds and ETFs) may write call options only under a covered call strategy for constituent stocks of NIFTY 50 and BSE SENSEX subject to the following: a. The total notional value (taking into account strike price as well as premium value) of call options written by a scheme shall not exceed 15% of the total market value of equity shares held in that scheme. b. The total number of shares underlying the call options written shall not exceed 30% of the unencumbered shares of a particular company held in the scheme. The unencumbered shares in a scheme shall mean shares that are not part of Securities Lending and Borrowing Mechanism (SLBM), margin or any other kind of encumbrances. c. At all points of time the Mutual Fund scheme shall comply with the provisions at paragraph 4(a) and 4(b) above. In case of any passive breach of the requirement at paragraph 4(a), the respective scheme shall have 7 trading days to rebalance the portfolio. During the rebalancing period, no additional call options can be written in the said scheme. d. In case a Mutual Fund scheme needs to sell securities on which a call option is written under a covered call strategy, it must ensure compliance with paragraphs 4 (a) and 4 (b) above while selling the securities. e. In no case, a scheme shall write a call option without holding the underlying equity shares. A call option can be written only on shares which are not hedged using other derivative contracts. f. The premium received shall be within the requirements prescribed in terms of paragraph 5 of SEBI circular dated August 18, 2010 i.e. the total gross exposure related to option premium paid and received must not exceed 20% of the net assets of the scheme. g. The exposure on account of the call option written under the covered call strategy shall not be considered as exposure in terms of paragraph 3 of SEBI Circular no. Cir/IMD/DF/11/2010, dated August 18, 2010. 11
h. The call option written shall be marked to market daily and the respective gains or losses factored into the daily NAV of the respective scheme(s) until the position is closed or expired. 5. For schemes intending to use covered call strategy, the risks and benefit of the same, must be disclosed in the Scheme Information Document. 6. In terms of paragraphs 11 and 13 of SEBI Circular no. Cir/IMD/DF/11/2010, dated August 18, 2010 call options written shall be disclosed in the following format: Underlying No. of contracts % of underlying shares Option price when sold Current option price Margin maintained in Rs. Lakhs Call options written as percentage of total market value of equity shares held in the scheme For the period ended specify the following for call options written which have already been exercised/expired Total Number of contracts entered into Gross Notional Value of contracts Net Profit/Loss on all contracts 7. For existing schemes, writing of call options shall be permitted subject to appropriate disclosure and compliance with Regulation 18 (15A) of SEBI (Mutual Funds) Regulations, 1996. 8. All other provisions of the circular dated August 18, 2010 in respect of norms for investment and disclosure by Mutual Funds in derivatives shall remain the same. 9. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. Yours faithfully, Harini Balaji General Manager Tel no.: 022-26449372 Email: harinib@sebi.gov.in 12
RBI UPDATES RBI/2018-19/109 A.P. (DIR Series) Circular No. 17 To All Category-I Authorised Dealer Banks Madam / Sir, January 16, 2019 External Commercial Borrowings (ECB) Policy New ECB Framework Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to paragraph 7 of the Statement on Developmental and Regulatory Policies of the Fifth Bi-monthly Monetary Policy Statement for 2018-19 released on December 5, 2018. Reference is also invited to paragraphs 2 and 3 of Master Direction No.5 dated January 1, 2016 on External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers, as amended from time to time. 2. As indicated in the aforesaid statement, it has been decided, in consultation with the Government of India, to rationalise the extant framework for ECB and Rupee Denominated Bonds in light of the experience gained to improve the ease of doing business. The new framework is instrument neutral and would further strengthen the AML/CFT framework. 3. The revised ECB guidelines are set out in the Annex to this circular. The salient features of the new framework are as under: i. Merging of Tracks: Merging of Tracks I and II as Foreign Currency denominated ECB and merging of Track III and Rupee Denominated Bonds framework as Rupee Denominated ECB. ii. Eligible Borrowers: This has been expanded to include all entities eligible to receive FDI. Additionally, Port Trusts, Units in SEZ, SIDBI, EXIM Bank, registered entities engaged in microfinance activities, viz., registered not for profit companies, registered societies/trusts/cooperatives and non-government organisations can also borrow under this framework. iii. Recognised Lender: The lender should be resident of FATF or IOSCO compliant country. Multilateral and Regional Financial Institutions, Individuals and Foreign branches / subsidiaries of Indian banks can also be lenders as detailed in Annex. iv. Minimum Average Maturity Period (MAMP): MAMP will be 3 years for all ECBs. However, for ECB raised from foreign equity holder and utilised for specific purposes, as detailed in the Annex, the MAMP would be 5 years. Similarly, for ECB up to USD 50 million per financial year raised by manufacturing sector, which has been given a special dispensation, the MAMP would be 1 year as given in the Annex. v. Late Submission Fee (LSF) for delay in Reporting: Any borrower, who is otherwise in compliance of ECB guidelines, except for delay in reporting drawdown of ECB proceeds before obtaining LRN or Form ECB 2 returns, can regularize the delay by payment of LSF as per the laid down procedure. 4. ECB up to USD 750 million or equivalent per financial year, which otherwise are in compliance with the parameters and other terms and conditions set out in the new ECB framework, will be permitted under the automatic route not requiring prior approval of the Reserve Bank. The designated AD Category I bank while considering the ECB proposal is expected to ensure compliance with applicable ECB guidelines by their 13
constituents. Any contravention of the applicable provisions will invite penal action or adjudication under the Foreign Exchange Management Act, 1999. 5. Lending and borrowing under the ECB framework by Indian banks and their branches/subsidiaries outside India will be subject to prudential guidelines issued by the Department of Banking Regulation of the Reserve Bank. Further, other entities raising ECB are required to follow the guidelines issued, if any, by the concerned sectoral or prudential regulator. 6. The amended policy will come into force with immediate effect. The Principal Regulations governing the ECB policy has been rationalized through the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 and notified through Notification No. FEMA.3R/2018-RB dated December 17, 2018, vide G.S.R. 1213(E) dated December 17, 2018. 7. The aforesaid Master Direction No. 5 dated January 01, 2016 is being revised to reflect the above changes. 8. The directions contained in this circular have been issued under section 10(4) and 11(2) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. For Annexure, Please refer below mentioned link: Yours faithfully Ajay Kumar Misra Chief General Manager-in-Charge https://www.rbi.org.in/scripts/notificationuser.aspx?id=11456&mode=0 14
SERVICE TAX UPDATES Circular No. 211/1/2019-Service Tax F. No. 354/321/2018-TRU Government of India Ministry of Finance Department of Revenue Tax research Unit **** North Block, New Delhi, Dated the 15th January, 2019 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: Applicability of Service Tax on Asian Development Bank (ADB) and International Finance Corporation (IFC) - reg. Kind reference is invited to Circular No 83/02/2019-GST dated 01.01.2019 clarifying that that the services provided by IFC and ADB are exempt from GST in terms of provisions of IFC Act, 1958 and ADB Act. The exemption will be available only to the services provided by ADB and IFC and not to any entity appointed by or working on behalf of ADB or IFC. 2. It is hereby clarified that the said circular shall apply, mutatis mutandis, to Service Tax also. 3. The appeal filed by the department in Supreme Court against the CESTAT, Mumbai order dated 17-10- 2016 in the case of M/s Coastal Gujarat Power Ltd is proposed to be withdrawn. 4. Difficulty if any, in implementation of this Circular may be brought to the notice of the Board. Yours Faithfully, (Shashikant Mehta) OSD, TRU Email:shashikant.mehta@gov.in Tel: 011 2309 5547 15
CUSTOM UPDATES [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. 04/2019-CUSTOMS (N.T.) New Delhi, 15th January, 2019 25 Pausha, 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/ subheading/tariff item Description of goods Tariff value (US $ Per Metric Tonne) (1) (2) (3) (4) 1 1511 10 00 Crude Palm Oil 544 2 1511 90 10 RBD Palm Oil 550 3 1511 90 90 Others Palm Oil 547 4 1511 10 00 Crude Palmolein 553 5 1511 90 20 RBD Palmolein 556 6 1511 90 90 Others Palmolein 555 7 1507 10 00 Crude Soya bean Oil 686 8 7404 00 22 Brass Scrap (all grades) 3526 9 1207 91 00 Poppy seeds 2258 TABLE-2 Sl. No Chapter/ heading/ subheading/tariff item Description of goods Tariff value (US $) (1) (2) (3) (4) 1 71 or 98 Gold, in any form, in respect of which the benefit of entries at serial number 356 and 358 of the Notification No. 50/2017-416 per 10 grams 16
Customs dated 30.06.2017 is availed 2 71 or 98 Silver, in any form, in respect of which the benefit of entries at serial number 357 and 359 of the Notification No. 50/2017- Customs dated 30.06.2017 is availed 504 per kilogram TABLE-3 Sl. No Chapter/ heading/ subheading/tariff item Description of goods Tariff value (US $ Per Metric Tonne) (1) (2) (3) (4) 1 080280 Areca nuts 3942 [F. No. 467/01/2019 -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. 102/2018-Customs (N.T.), dated the 31st December, 2018, e-published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 6407(E), dated 31st December, 2018. 17
GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) ***** Notification No.05/2019 - Customs (N.T.) New Delhi, dated the 17th January, 2019 27 Pausha, 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.02/2019-CUSTOMS (N.T.), dated 3rd January, 2019 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 18th January, 2019 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 52.25 50.00 2. Bahraini Dinar 195.10 183.05 3. Canadian Dollar 54.60 52.75 4. Chinese Yuan 10.70 10.35 5. Danish Kroner 11.05 10.65 6. EURO 82.70 79.70 7. Hong Kong Dollar 9.25 8.90 8. Kuwaiti Dinar 243.00 227.60 9. New Zealand Dollar 49.40 47.15 10. Norwegian Kroner 8.50 8.20 11. Pound Sterling 93.35 90.10 12. Qatari Riyal 20.20 18.95 13. Saudi Arabian Riyal 19.60 18.40 14. Singapore Dollar 53.50 51.65 15. South African Rand 5.35 5.05 16. Swedish Kroner 8.05 7.75 17. Swiss Franc 73.35 70.40 18. Turkish Lira 13.75 12.90 18
19. UAE Dirham 20.05 18.80 20. US Dollar 72.10 70.40 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 66.60 64.15 2. Korean Won 6.55 6.15 [F.No. 468/01/2019-Cus.V] (Dr. Sreeparvathy S.L.) Under Secretary to the Govt. of India TELE: 011-2309 5541 19
GST UPDATES [TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY] New Delhi, the 15th January, 2019 GOVERNMENT OF INDIA MINISTRY OF FINANCE (Department of Revenue) [CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS] Notification No. 1/2019-Central Tax G.S.R. -----(E).- In exercise of the powers conferred by section 147 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 48/2017-Central Tax dated the 18th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R 1305(E) dated the 18th October, 2017, namely: In the said notification, (i) In the Table, the column number (2) against S. No.1, after the entry, the following proviso shall be inserted, namely: - Provided that goods so supplied, when exports have already been made after availing input tax credit on inputs used in manufacture of such exports, shall be used in manufacture and supply of taxable goods (other than nil rated or fully exempted goods) and a certificate to this effect from a chartered accountant is submitted to the jurisdictional commissioner of GST or any other officer authorised by him within 6 months of such supply,; Provided further that no such certificate shall be required if input tax credit has not been availed on inputs used in manufacture of export goods. ; (ii) In the Explanation against serial number 1 the words on pre-import basis shall be omitted. [F. No. 20/06/17/2018-GST (Pt. I)] (Dr. Sreeparvathy S. L.) Under Secretary to the Government of India Note:- The principal notification No. 48/2017-Central Tax dated 18th October, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R 1305(E), dated the 18th October, 2018. 20
DGFT UPDATES Government of India Ministry of Commerce & Industry Directorate General of Foreign Trade, Udyog Bhawan, New Delhi. Policy Circular No. 17/2015-2020 To, All RAs of DGFT Dated 14.01.2019 Sub: Additional extension of six months in the Export Obligation Period (FOP) (beyond permissible extension period in Para 4.42 of the HBP) to advance authorizations issued upto 30.06.2016 involving import of Raw cashew (SION E 8) relaxation of Policy/ Procedure. Cashew Export Promotion Council has approached this Directorate with difficulties being faced by the cashew industry due to introduction of 5% Customs Duty w.e.f. 01.03.2016 and unawareness of their members about Advance Authorization Scheme. It has reported that many of its member exporters are facing difficulties in exports during stipulated Export Obligation Period. Cashew EPC has requested that six months additional Export Obligation Period may be allowed to the Advance authorizations issued to cashew industry. 2. The Policy Relaxation Committee (PRC) in its meeting held on 03.01.2019 considered the request of the Cashew Export Promotion Council and after detailed discussions, in view of difficulties being faced by Advance Authorization holders, decided, as a one time measure, to allow six months additional extension (beyond permissible extension period in Para 4.42 of the HBP 2015-20) in the Export Obligation Period to advance authorizations issued upto 30.06.2016 involving import of Raw Cashew (SION E8) in relaxation of Policy/Procedure. This additional extension shall be subject to payment of composition fee @1% per month on the unfulfilled FOB value of the export obligation. 3. This issues with the approval of DGFT. (Dilip Kumar) Deputy Director General of Foreign Trade 21
To be published in the Gazette of India Extraordinary Part-II, Section - 3, Sub-Section (ii) Government of India Ministry of Commerce & Industry Department of Commerce Directorate General of Foreign Trade Notification No. 54/2015-2020 New Delhi, Dated: 15 January, 2019 Subject: Incorporation of Appendix - V under ITC (HS) 2017, Schedule-I (Import Policy) - regd. S.O.(E): In exercise of powers conferred by Section 5 of FT (D&R) Act, 1992,read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as am ended from time to time, the Central Government, hereby incorporates a list of 207 items as Technical Textiles vide Appendix - V of ITC (HS) 2017,Schedule-i (Import Policy). 2. Effect of this Notification: Vide Appendix - V to ITC (HS) 2017, Schedule-I (Import Policy), 207 items are notified as Technical Textiles. This issues with the approval of Minister of Commerce & Industry. (Alok Vardhan Chaturvedi) Director General of Foreign Trade & ex-officio Additional Secretary to the Government of India E-mail: dgft@nic.in 22
To be published in the Gazette of India Extraordinary Part-II, Section 3, Sub- Section (ii) Government of India Ministry of Commerce & Industry Department of Commerce Udyog Bhawan, New Delhi Notification No.55/2015-2020 Dated: 15 January, 2019 Subject: Amendment in policy condition of Nicotinic Acid & Nicotinamide (Niacinamide/ niacin) under HS Code 29362920 of ITC (HS) 2017, Schedule I (Import Policy). S.O. (E): In exercise of powers conferred by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as amended from time to time, the Central Government hereby amends Policy Condition of Nicotinic Acid & Nicotinamide (Niacinamide/ niacin) under HS Code 29362920 of ITC (HS) 2017, Schedule I (Import Policy) as under: Exim Code Item Description Existing Policy Existing Policy condition 2936 29 20 Nicotinic Acid & Free Subject to Policy Free Subject to - Condition No.3. Nicotinamide (Niacinamide/ niacin) Revised condition - Policy 2. Effect of this Notification: Till now, import of Nicotinic Acid & Nicotinamide (Niacinamide/ niacin) was 'Free' subject to No Objection Certificate (NOC) from Narcotics Commissioner, Gwalior, before import of the item. For import of Nicotinic Acid & Nicotinamide (Niacinamide/ niacin, this Policy Condition is being removed with immediate effect. This issues with the approval of Minister of Commerce & Industry. (Alok Vardhan Chaturvedi) Director General of Foreign Trade & Ex-officio Addl. Secretary to the Government of India Email: dgft@nic.in Note: The principal notification No. 39/2015-2020, dated the 3rd October, 2018 was published in the Gazette of India, Extraordinary vide number S.O. 5105(E), dated the 3rd October, 2018. 23
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