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Daily Monitoring of the Legislation

Monitoring of the Federal Legislation dated 6.03.2006

Federal Law No. 34-FZ of March 4, 2006 on the Execution of the Budget of the Social Insurance Fund of the Russian Federation for the Year 2004

Endorses the report of execution of the budget of the Social Insurance Fund for the year 2004 with incomes amounting to Rbl 159,276.5 million and expenses amounting to Rbl 140,568.3 million, the surplus of incomes over expenses being Rbl 18,708.2 million.

The surplus of incomes over the planned figures occurred because of increased number of organisations having switched over in 2004 to special tax regimes.

Reduction of expenses occurred because of reduced number of cases of temporary disability, more accurate issue of disability sheets and expert evaluations of temporary disability.

Federal Law No. 33-FZ of March 3, 2006 on the Amendment to Article 131 of the Code of Criminal Procedures of the Russian Federation

Article 131 of the Code of Criminal Procedures of the Russian Federation is extended to include the provision stating that the procedure and amounts of reimbursement of procedural expenses (expenses reimbursed from the federal budget or at the expense of participants of criminal proceedings) shall be specified by the Government of the Russian Federation. The Government of the Russian Federation is ordered to specify the procedure and amounts of reimbursement of procedural expenses within 6 months from the day of entry into force of the Federal Law.

Federal Law No. 32-FZ of March 3, 2006 on the Amendment to Article 54 of the Federal Law on Communication

According to the amendments, the user must not pay for the telephone connection initiated by another user. The rule does not apply if the telephone connection is initiated: through an operator to be paid by the called party; using access codes assigned by the federal body of executive power in charge of communication; with a user being outside the territory of the subject of the Russian Federation indicated in the decision allocating the numbering resources to communication operator, including the number of the given user, if otherwise is not specified in the contract for communication services.

The payment for the local connections must be arranged using a user fee or time payment at the user choice.

The Federal Law is entered into force from July 1, 2006.

Federal Law No. 31-FZ of March 3, 2006 on the Amendment to Article 5 of the Federal Law on the State Support of Cinematography in the Russian Federation

The amendments remove excessive state regulation in the sphere of cinematography and exclude the authority to keep the register of organisations of cinematography from the sphere of reference of the federal body of executive power in charge of the state support of cinematography.

Federal Law No. 30-FZ of March 3, 2006 on the Amendment to Article 28.3 of the Code of Administrative Violations of the Russian Federation

The amendments refine the list of officials authorised to draw up the protocols of administrative violations, remove inconsistency of provisions of Article 28.3 of the Code of Administrative Violations with provisions of Article 20.25 and Part 5 of Article 32.2 of the Code of Administrative Violations after being amended by the Federal Law No. 161-FZ of December 8, 2003 on the Code of Criminal Procedures of the Russian Federation and other legislative acts being brought in compliance with the Federal Law on the amendments to the Criminal Code of the Russian Federation.

Federal Law No. 29-FZ of March 3, 2006 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of India on the Mutual Trips of Holders of Diplomatic and Service (Official) Passports

Ratifies the Agreement signed in Delhi on December 3, 2004, the goal being creation of more favourable conditions for inter-state exchange, mutual contacts of official figures, development of bi-lateral Russian-Indian cooperation.

According to the Agreement, citizens of the Russian Federation and the Republic of India holding actual diplomatic or service (official passports) may, without drawing up the visa, enter, leave, travel in transit and stay on the territory of the state of the other contracting party within 90 days from the date of entry on the this territory. The parties reserve the right to refuse the entry or reduce the time of stay on its territory to any citizen of the other party being considered an undesirable person.

Letter of the Federal Tax Service No. MM-6-03/202@ of February 28, 2006 on the Application of Item 1 of Article 167 of the Tax Code of the Russian Federation in the Wording of the Federal Law No. 119-FZ of July 22, 2005

The date of dispatching (handing over) of commodities (works, services), proprietary rights for the purposes of Chapter 21 of the Tax Code "Value Added Tax" is recognised to be the date of the first in time drawing up of the initial document drawn up for their buyer (client), shipper (communication organisation). However, if the commodity is not dispatched and not transported, but the proprietary rights for this commodities are handed over, such transfer of proprietary rights is considered to be equal to dispatching. The date of dispatching of such commodity is considered to be the date of handing over of proprietary rights indicated in the document confirming the transfer of proprietary rights.

The payment, partial payment for the anticipated supplies by the consignor (mandator, principal) of commodities (carrying out works, rendering services), handing over of proprietary rights is recognised to be the payment, partial payment received from the buyer by the consignor (mandatory, principal) or his commissioner (agent, principal) both in the monetary and in another form.

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