BMR Edge-Tax & Regulatory Mont - BMR Advisors
BMR Edge-Tax & Regulatory Mont - BMR Advisors
BMR Edge-Tax & Regulatory Mont - BMR Advisors
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and 10B of the Act. For details of the circular, please refer to the <strong>BMR</strong> Buzz dated<br />
January 22, 2013.<br />
Source: Circular No 1/2013, issued by CBDT<br />
Link: www.itatonline.org<br />
External Commercial Borrowings limit for Infrastructure Finance Companies<br />
revised<br />
RBI has made an upward revision of the limit for External Commercial Borrowings<br />
(“ECB”) for non banking finance companies categorized as Infrastructure Finance<br />
Companies (“IFC”). IFC can now raise ECB to the extent of 75 percent of net owned<br />
funds including the outstanding ECB. IFC desirous of availing ECB beyond 75<br />
percent of their owned funds would require the approval of RBI under the approval<br />
route.<br />
Hedging requirement for currency risk has been reduced from 100 percent of<br />
exposure to 75 percent of exposure.<br />
Source: Circular No 69 dated January 7, 2013, issued by RBI<br />
Link: http://www.rbi.org.in<br />
External commercial borrowings for micro finance institutions and non –<br />
government organisations to be fully hedged<br />
RBI has mandated all authorised dealer banks to ensure that ECB raised by micro<br />
finance institutions and non – government organisations to be fully hedged.<br />
Source: Circular No 63/RBI dated December 20, 2012, issued by RBI<br />
Link: http://www.rbi.org.in<br />
Sin Maarten has been notified as specified territory under section 90(2) of the<br />
Act<br />
Central Government has notified Sin Maarten, a part of Kingdom of Netherlands as<br />
specified territory under section 90(2) of the Act.<br />
Source: Notification No 54/2012 dated December 17, 2012, issued by CBDT<br />
Link: http://law.incometaxindia.gov.in/DIT/Notifications.aspx<br />
Certification requirement introduced in Rule 112F of the Rules<br />
Rule 112F of the Rules, outlining the cases wherein investigating officer (“IO”) is not<br />
required to issue notice for assessing income for 6 years immediately preceding the<br />
year of search, has been amended to provide certain certification requirement to be<br />
complied with by the IO. Such certification shall also be sent to the AO and<br />
Commissioner of Income <strong>Tax</strong> having jurisdiction over the assessee.<br />
Source: Circular No 10/2012 dated December 31, 2012, issued by CBDT<br />
Link: http://law.incometaxindia.gov.in/DIT/Circulars.aspx<br />
Low cost affordable housing projects notified as eligible end use for ECB<br />
RBI has notified low cost affordable housing projects (“LCAHP”) as eligible end use for<br />
ECB under approval route. Salient features of the scheme are as under:<br />
<br />
Along with developers of LCAHP, Housing Finance Companies (“HFC”) and<br />
National Housing Bank (“NHB”) can also avail the ECB facility<br />
<br />
Projects should have minimum 60 percent floor space index (“FSI”) reserved for<br />
units with maximum carpet area of 60 square meters<br />
<br />
Slum rehabilitation projects are also eligible subject to necessary approvals of<br />
necessary authorities<br />
<br />
ECB proceeds cannot be used for acquisition of land<br />
<br />
NHB shall be the nodal agency for deciding the eligibility of project for ECB<br />
<br />
Upper cap of USD 1 billion is fixed for the financial year 2012-13, subject to<br />
annual review<br />
<br />
All other conditions applicable to ECB need to be complied with<br />
Source: Circular No 61 dated December 17, 2012, issued by RBI<br />
Link: http://rbi.org.in/scripts/NotificationUser.aspxId=7757&Mode=0