Sunnyvale, CA -- (SBWIRE) -- 12/12/2011 -- The Reserve Bank of India has decided to reduce the validity period for checks, drafts, pay orders and banker's checks from six months to three months from April 1, 2012.
Currently, bankers in India are allowed to make payment of checks and drafts within a period of six months from the date of the instrument.
The Reserve Bank of India in the interest of banking policy and public interest has ruled that banks will not honor checks, drafts, pay orders and banker's checks which are presented beyond a period of three months from the date of the instrument.
Indian High Court rules Goods Supplied to Exclusive Economics Zones (EEZ) are tax free
The High Court of the western Indian state of Gujarat has ruled that the supply of goods to an offshore installation located in exclusive economic zone is not subject to sales tax, including central sales tax.
An EEZ, which is beyond 12 nautical miles to 200 nautical miles will not be subject to sales tax, including central sales tax, since the EEZ is not part of the territory of India and cannot be considered as an inter-state sale.
The Court issued this judgment in the case of Larsen & Toubro v. Union of India (Gujarat High Court) where the High Court examined the provisions in the Maritime Zones of India Act, 1976 (MZA) and observed that India had no control over the EEZ and hence the Gujarat VAT authorities could not demand tax under the CST (Central Sales Tax) Act.
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