Complaint Details

Status	:	Closed
Complaint No	:	0003667/2013
Category	:	Others
Date	:	14-03-2013
Subject Line	:	Compliant against Taxmann for breach of trust and deficiency in service
Complainant	:	Deep Singh
Address	:	C-5/3, Sector-5, Rohini, New Delhi
Complainee	:	Taxmann Publications Private Limited
Address	:	21/35, West Punjabi Bagh New Delhi- 110026

Complaint Details
1. Reserve Bank of India (“RBI”) vide A.P. (DIR Series) Circular No.27 dated 23rd September , 2011 has enhanced the limit of ECB from its present limit of USD 500 million to new limit of USD 750 million per financial year under automatic route .

2. Further, vide this Circular RBI has also mentioned that necessary amendments to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 are being issued separately. Needless to say that vide this circular RBI has informed to the Authorized Dealers and General Public including Taxmann that necessary amendment will be made in these regulations in due course of time.

3. It is relevant to mention here that RBI vide A. P. (DIR Series) Circular No.64 dated 05th January, 2012 , also clarified that that the eligible borrowers under the automatic route can raise Foreign Currency Convertible Bonds (FCCBs) up to USD 750 million or equivalent per financial year for permissible end-uses. Further, RBI also informed to the general public at large that necessary amendments to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 and Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 are being issued separately wherever necessary.

4. It is also relevant to mention here that vide Notification No. FEMA 231/2012-RB May 30, 2012 , RBI has made necessary change in the above-mentioned Regulations , namely Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 dated May 3, 2000 and Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 . Further, vide this Notification, RBI made necessary change in these regulations from 23rd day of September, 2011 (with retrospective effects). The relevant portion of said notification is reproduced herein after your ready reference :-
“ 2. Short title and commencement:-

(a) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2012.

(b) They shall be deemed to have come into force from the dates specified in these regulations. @”
5. It is also relevant to mention here that RBI has made necessary amendment made in the above-mentioned regulations with retrospective effects which was material information.

6. I have purchased a Taxmann FEMA Manual in the Month of September, 2012 from M/s Pooja Law House after paying a sum of INR 2,700/-. As per Taxmaan’s representation, the law stated in the Manual was updated upto July, 2012.

7. During my reading of the Manual, I have noticed that Taxmann has mentioned two amounts i.e. USD 500 or USD 750 for ECB transaction under automatic route. As per Master Circular, ECB limit is USD 750 and as per Regulation, ECB limit is USD 500.

8. In this regard, I have written an email to Taxmann to know the reason for this two set of limit in the FEMA Manual. In this regard, I had received one SMS from Mobile No. 9312277940. As per this SMS, Taxmann told to me that said Notification was issued on 3rd day of August, 2012. Hence, we have not revised such ECB Limit in the above-mentioned regulations.

9. It is most important to mention here that RBI has made necessary changes in the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 and Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 with retrospective effect vide Notification No. FEMA 231/2012-RB May 30, 2012. Such Notification was effective from 23rd day of September, 2011. In this regard, Taxman has not given any necessary disclosures or footnotes or author comments to reflect this retrospective changes.

10. It is highly unprofessional and unethical that Taxmann knew about such amendment in the regulations but it has not taken any initiatives to pass such material information to the readers by way of footnotes or author’s comments. Such act on the part of taxman represents that it does not have adequate manpower or resources and does not use professional skill, care and diligence in the publication of this FEMA Manual.

11. At this juncture, I would like to say that I have purchased a defective or misleading FEMA Manual from Taxmann which is of no use.

12. It is clear that Taxmann is making money by way making untrue and dishonest representations with the malafide intentions to earn money of the innocent people and students. Further, till date, Taxmann has not replied to my emails vide which I have raised certain issues of concern.

Replies