Union Budget 2023-24
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  • When are the taxpayers required to file accountant's report specified in Section 92E of the Income - tax Act, 1961?

    All the taxpayers are mandatorily required to file an accountant's report prepared by an independent professional through Form No. 3CEB for all international transactions irrespective of the value of international transactions and specified domestic transactions if the value exceeds INR 20 crore in a financial year.

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  • What are safe harbor rules under the Indian transfer pricing regulations?

    Safe harbor rules is a mechanism under which in certain circumstances tax authorities accept the transfer prices declared by tax payer without undertaking detailed audit. The tax authorities have introduced rules prescribing procedure for adopting safe harbor, the transfer price to be adopted, the compliance procedures upon adoption of safe harbor and the circumstances in which a safe harbor adopted may be held to be invalid.

    The categories of international transactions covered under the safe harbor provisions include:

    • Provision of software development services
    • Provision of IT enabled services
    • Provision of knowledge process outsourcing services
    • Advancing of intra-group loans
    • Provision of corporate guarantee
    • Provision of contract research and development services
    • Manufacturing and export of auto components
    • Receipt of low value adding intragroup services

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  • Which transaction is classified as “international transaction”?

    The term international transaction as defined under Section 92B of the Act as:

    • Purchase, sale or lease of tangible or intangible property
    • Provision of services
    • Lending or borrowing of money or capital financing, including any type of long-term or short-term borrowing, lending or guarantee; purchase or sale of marketable securities or any type of advance, payments or deferred payment or receivable; or any other debt arising during the course of business
    • A mutual agreement or arrangement for cost allocation or apportionment
    • A transaction of business restructuring or reorganization
    • Any other transaction having a bearing on the profits, income, losses or assets of such enterprises

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  • Does Indian transfer pricing law have an Advance Pricing Agreement (APA) program?

    APA is a binding agreement between the taxpayer and tax authority to determine in advance, a set of criteria that would govern the transfer prices for covered inter-company transactions for a fixed period of time.

    The APA regime has been introduced in India effective 01 July 2012. The APA rules provide an option for taxpayers to seek a unilateral, bilateral or multilateral APA. It can be valid for up to five years and additionally for a period of four consecutive previous years.

    The APA filing process includes an optional pre-filing submission, the filing of the APA request, negotiation of the APA, execution and monitoring. Taxpayers are required to prepare and file an annual compliance report for each year under the APA. It helps that taxpayer in attaining certainty on the transfer price adopted and assists in mitigating the risks of litigation for the period covered under APA.

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  • When do the transfer pricing regulations apply to an enterprise?

    An enterprise is required to comply with the transfer pricing regulations when:

    • The taxpayer has entered into an international transaction or a specific domestic transaction (within India)
    • With an associated enterprise outside India, (international transaction) or within India (specific domestic transaction)

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  • What are the scenarios under which Form FC-TRS is required to be filed?

    Form FC-TRS shall be required to be filed within sixty days of receipt/ remittance of funds or transfer of capital instruments whichever is earlier, under the following scenarios for transfer of capital instruments by way of sale:

    • From a person resident outside India holding capital instruments in an Indian company on a repatriable basis to a person resident outside India holding capital instruments on a non-repatriable basis
    • From a person resident outside India holding capital instruments in an Indian company on non-repatriable basis to a person resident outside India holding capital instruments on repatriable basis
    • From a person resident outside India holding capital instruments in an Indian company on repatriable basis to a person resident in India
    • From a person resident in India holding capital instruments in an Indian company to a person resident outside India holding capital instruments on repatriable basis
    • By a person resident outside on a recognized stock exchange

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  • Is a Liaison Office (LO) in India of Foreign corporation subject to TP Provisions?

    The residential status of LO in India of an enterprise outside India is that of a “non-resident” for Indian tax purposes. Since the LO is not taxable in India as they do not indulge in income generating activities, transfer pricing provisions are not applicable for LO. However, if a LO constitutes a PE in India, it will be subject to tax in India and will be subject to an appropriate attribution of profit generated by the foreign enterprise from its operations in India.

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  • What are the penal consequences for under-reporting or misreporting of income?

    The penal consequences for non-compliance with Indian transfer pricing regulations are as follows in case of under-reporting or misreporting of income:

    1. A sum equal to 50% of the amount of tax payable on under-reported income
    2. A sum equal to 200% of the amount of tax payable on under-reported income where under-reported income is in consequence of any misreporting

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  • Do the transfer pricing rules apply in respect of transactions between head office (HO) and a branch office/project office?

    Where a foreign enterprise has a BO/PO in India, the BO/PO would constitute a non-resident for Indian tax purposes and a separate enterprise under Section 92F(iii) of the Act. Accordingly, the transaction between the BO/PO and the HO will constitute as an international transaction under section 92B of the Act and will be required to meet the arm’s length criteria from an Indian transfer pricing perspective.

    For more information, click here.

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  • What are the penal consequences for non-compliance with the Indian Transfer Pricing regulations?

    In case of failure to maintain Transfer Pricing documentation, failure to report the transaction, maintenance or furnishing of incorrect information/document, there is a penalty of 2% of the value of each international/specified domestic transaction.

     

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  • What is the fee for getting work registered under the copyright act?

    The fee is not reimbursable in case of rejection of the application. The fee can be paid by postal order/demand draft/online payment payable to “registrar of copyrights, New Delhi. 

    For information on the fee for getting work registered under the copyright act, click here

     

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  • Where can I file application for registration of copyright for a work?

    The Copyright Office has been set up to provide registration facilities to all types of works and is headed by a Registrar of Copyrights and is located at 4th Floor Jeevan Deep Building, New Delhi- 110 001. The applications for registration of works can be filled at the counter provided at the Copyright Office from 2.30 P.M. to 4.30. P.M. from Monday to Friday. The applications are also accepted by post. On-line registration through “E-filing facility “has been provided from 14th February 2014, which facilitates the applicants to file applications at the time and place chosen by them.

    For more information, click here.

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  • What is the procedure for registration of a work under the Copyright Act, 1957?

    The procedure for registration is as follows:
     1) Application for registration is to be made on Form
     2) Separate applications should be made for registration of each work.
     3) Each application should be accompanied by the requisite fee prescribed in the second schedule to the Rules.
     4) The applications should be signed by the applicant or the advocate in whose favour a Vakalatnama or Power of Attorney has been executed.
     5) The fee is either in the form of Demand Draft, Indian Postal Order favouring ‘Registrar Of Copyright Payable At New Delhi’ or through E-payment

    For more information, click here.

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  • Is it necessary to register a work to claim copyright?

    No. Acquisition of copyright is automatic and it does not require any formality. Copyright comes into existence as soon as a work is created and no formality is required to be completed for acquiring copyright.

    For more information, click here.

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  • How long I have to wait to get my work to get registered by the Copyright office?

    After you file your application and receive diary number you have to wait for a mandatory period of 30 days so that no objection is filed in the Copyright office against your claim. In case any objection is filed, the Registrar of Copyrights after giving an opportunity of hearing to both the parties, may decide to register the work or otherwise.

    For more information, click here.

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  • What is copyright?

    Copyright is a right given by the law to creators of literary, dramatic, musical and artistic works and producers of cinematograph films and sound recordings. In fact, it is a bundle of rights including, inter alia, rights of reproduction, communication to the public, adaptation and translation of the work. There could be slight variations in the composition of the rights depending on the work.

    For more information, click here.

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  • How can I get copyright registration for my Website?

    A website may be understood as a web-page or set of interconnected web-pages, hosted or stored on a server, and is made available online to members of public. Users can access the information and other underlying work on a website through various means such as scrolling web-pages, using internal hypertext links or a search feature.

    For more information, click here.

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  • What does Intellectual Property entail?

    Intellectual Property is the Property, which has been created by exercise of Intellectual Faculty. It refers to creation of mind such as inventions, designs for industrial articles, literary, artistic work, symbols which are ultimately used in commerce. Intellectual Property rights allow the creators or owners to have the benefits from their works when these are exploited commercially. These rights are statutory rights governed in accordance with the provisions of corresponding legislation. Intellectual Property rights reward creativity & human endeavour which fuel the progress of humankind.The intellectual property is classified into seven categories i.e.

    1. Patent
    2. Industrial Design
    3. Trade Mark
    4. Copyright
    5. Geographical Indications
    6. Lay put designs of integrated circuits
    7. Protection of undisclosed information/Trade Secret according to TRIPs agreements

    For more information, click here.

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  • Whether unpublished works are registered?(Under the Copyright Act 1957)

    Yes. Both published and unpublished works can be registered. Copyright in works published before 21st January, 1958, i.e., before the Copyright Act, 1957 came in force, can also be registered, provided the works still enjoy copyright. Three copies of published work may be sent along with the application. If the work to be registered is unpublished, a copy of the manuscript has to be sent along with the application for affixing the stamp of the Copyright Office in proof of the work having been registered. In case two copies of the manuscript are sent, one copy of the same duly stamped will be returned, while the other will be retained, as far as possible, in the Copyright Office for record and will be kept confidential. It would also be open to the applicant to send only extracts from the unpublished work instead of the whole manuscript and ask for the return of the extracts after being stamped with the seal of the Copyright Office. When a work has been registered as unpublished and subsequently it is published, the applicant may apply for changes in particulars entered in the Register of Copyright in Form V with prescribed fee.The process of registration and fee for registration of copyright is same.

    For further details please access following link.

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  • What is the scope of protection in the Copyright Act, 1957?

    The Copyright Act, 1957 protects original literary, dramatic, musical and artistic works and cinematograph films and sound recordings from unauthorized uses. Unlike the case with patents, copyright protects the expressions and not the ideas. There is no copyright protection for ideas, procedures, methods of operation or mathematical concepts as such (Please see Article 9.2. of TRIPS).

    For more information, click here.

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  • How one can ascertain whether registration subsists in respect of any design?

    For ascertaining whether registration subsists in respect of a design, a request should be made to the Patent Office, Kolkata. If the Design number is known, the request should be made on Form 6, otherwise on Form 7, together with prescribed fees. Each such request should be confined to information in respect of a single design.

    For more information, click here.

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  • What is the most appropriate time for filing the registration of designs?

    First-to-file rule is applicable for registrability of design. If two or more applications relating to an identical or a similar design are filed on different dates only first application will be considered for registration of design.

    For more information, click here.

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  • Is there a possibility of cancelling the registration of a design?

    The registration of a design may be cancelled at any time after the registration of design on a petition for cancellation in Form 8 with prescribed fee to the Controller of Designs on the following grounds:

    • That the design has been previously registered in India.

    • That it has been published in India or elsewhere prior to date of registration.

    • The design is not new or original.

    • Design is not registerable.

    • It is not a design under Clause (d) of Section 2

    For more information, click here.

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  • Is it possible to re-register a design for which Copyright has expired?

    No. A registered design, the copyright of which has expired, cannot be re-registered.

    For more information, click here.

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  • What are the important criteria for determining a "set of article"?

    If a group of articles meets the following requirements then that group of articles may be regarded as a set of articles under the Designs Act, 2000:

    • Ordinarily on sale or intended to be used together

    • All having common design even though articles are different (same class)

    • Same general character

    For more information, click here.

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  • What is design registration in India?

    Object of the Designs Act is to protect new or original designs so created to be applied or applicable to particular article to be manufactured by Industrial Process or means. Design Registration is a means to ensure that the artisan, creator, originator of a design having aesthetic look is not deprived of his bonafide reward by others applying it to their goods.

    For more information, click here.

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  • What purpose does marking the article to a registered design serve?

    Yes, it would be always advantageous to the registered proprietors to mark the article so as to indicate the number of the registered design except in the case of Textile designs. Otherwise, the registered proprietor would not be entitled to claim damages from any infringer unless the registered proprietor establishes that the registered proprietor took all proper steps to ensure the marking of the article, or unless the registered proprietor show that the infringement took place after the person guilty thereof knew or had received notice of the existence of the copyright in the design.

    For more information, click here.

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  • What is the date of registration under the Design Act, 2000?

    The date of registration, except in case of priority, is the actual date of filing of the application. In case of registration of design with priority, the date of registration is the date of making an application in the respective country.

    For more information, click here.

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  • What are the essential requirements for the registration of ‘design’ under the Designs Act, 2000?

    1. The design should be new or original, not previously published or used in any country before the date of application for registration. The novelty may reside in the application of a known shape or pattern to new subject matter.
    2. The design should relate to features of shape, configuration, pattern or ornamentation applied or applicable to an article.
    3. The design should be applied or applicable to any article by any industrial process.
    4. The features of the design in the finished article should appeal to and are judged solely by the eye. This implies that the design must appear and should be visible on the finished article, for which it is meant.
    5. Any mode or principle of construction or operation or anything which is in substance a mere mechanical device, would not be a registerable design. For instance,a key having its novelty only in the shape of its corrugation or bent at the portion intended to engage with levers inside the lock associated with, cannot be registered as a design under the Act.
    6. The design should not include any Trade Mark or property mark, or artistic works as defined under the Copyright Act, 1957.

    For more information, click here. 

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  • Are the registered designs open for public inspection?

    Yes, registered designs are open for public inspection only after publication in the official journal on payment of prescribed fee on a request in Form-5.

    For more information, click here.

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  • What are the benefits of registering a trademark?

    The registration of a trademark confers upon the owner the exclusive right to the use the trademark in relation to the goods or services in respect of which the mark is registered and to indicate so by using the symbol (R) and seek the relief of infringement in appropriate courts in the country. The exclusive right is however subject to any conditions entered on the register such as limitation of area of use etc. Also, where two or more persons have registered identical or nearly similar marks due to special circumstances, such exclusive right doesn't operate against each other.

    For more information, click here.

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  • What are the formalities and government fees for major trademark transactions?

    1. For filing new applications there are prescribed forms depending on the nature of application such as Form TM-1, TM-2, TM-3, TM-8, TM-51 etc. Fees: INR 4000/-
    2. To file a Notice of Opposition to oppose an application published in the Trade Marks Journal (FormTM-5). Fees: INR 2,500/- for each class covered<
    3. For Renewal of a Regd. trademark (Form TM-12). Fees: INR 5,000/-
    4. Surcharge for belated renewal (Form TM-10). Fees: INR 3,000/-
    5. Restoration of removed mark (Form TM-13) Fees: INR 5,000/-
    6. Application for rectification of a registered trademark (Form TM-26) Fees: INR 3,000/-
    7. Legal Certificate (Form TM-46) (Providing details of entries in the Register) Fees: INR 500/-
    8. Copyright search request and issuance of certificate (Form TM-60) Fees: INR 5,000/-.

    For more information, click here

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  • What are the types of trademarks in India?

    Following are the types of trademarks in India:

    1. Any name (including personal or surname of the applicant or predecessor in business or the signature of the person), which is not unusual for trade to adopt as a mark.
    2. An invented word or any arbitrary dictionary word or words, not being directly descriptive of the character or quality of the goods/service.
    3. Letters or numerals or any combination thereof.
    4. The right to proprietorship of a trademark may be acquired by either registration under the Act or by use in relation to particular goods or service.
    5. Devices, including fancy devices or symbols
    6. Monograms
    7. Combination of colors or even a single color in combination with a word or device
    8. Shape of goods or their packaging
    9. Marks constituting a 3- dimensional sign.
    10. Sound marks when represented in conventional notation or described in words by being graphically represented.

    For more information, click here. 

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  • What is the function of a trademark? (Under the Trade Marks Act 1999)

    Under modern business condition a trademark performs four functions: 

    1) It identifies a good/service and its origin.
    2) It guarantees its unchanged quality.
    3) It advertises the goods/services.
    4) It creates an image for good/services.

    For further details please access following link.

     

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  • Under the Trade Marks Act 1999, who benefits from a trademark?

    The registered proprietor of a trademark can create, establish and protect the goodwill of his products or services. He/she can stop traders from unlawfully using his trademark, sue for damages and secure destruction of infringing goods or labels.

    The government earns revenue as a fee for registration and protection of registration of trademark.

    The legal professionals render services to the entrepreneurs regarding selection, registration and protection of trademarks and get remuneration for the same. The purchaser and ultimately consumers of goods and services get options to choose the best.

    For more information, click here.

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  • What is a trademark?(Under the Trade Marks Act 1999)

    A trademark (popularly known as brand name) is a visual symbol which may be a word signature, name, device, label, numerals or combination of colours used by one undertaking on goods or services or other articles of commerce to distinguish it from other similar goods or services originating from a different undertaking.

    For more information, click here.

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  • How do I file a trademark application for my brand?

    The Controller General of Patents, Designs and Trademarks has information regarding trademark form and fees.

    For more information, click here. 

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  • Does the Trade Marks Registry help to select a trademark agent to prepare and prosecute trademarks application?

    Yes, Trade Marks Registry had published a list of facilitators who are willing to facilitate filing trademark applications for start-ups and act as a trademark agent on their behalf. Their fees for this purpose have also been notified.

    For more information, click here.

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  • What are the legal requirements to register a trademark in India?

    The legal requirements to register a trademark under the Act are:

    The selected mark should be capable of being represented graphically (that is in the paper form).

    • It should be capable of distinguishing the goods or services of one undertaking from those of others.

    • It should be used or proposed to be used mark in relation to goods or services for the purpose of indicating or so as to indicate a connection in the course of trade between the goods or services and some person have the right to use the mark with or without identity of that person.

    For more information, click here. 

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  • Can any correction be made in the application or the trademark register?

    Yes. However, the basic principle is that the trademark applied for should not be substantially altered affecting its identity. Subject to this, changes are permissible according to rules detailed in the subordinate legislation.

    For more information, click here.

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  • Is there any provision for early examination of patent application?

    There is no provision for filing a request for early examination of patent application. The applications are examined in the order in which requests for examination are filed. However, an express request for examination before expiry of 31 months can be made in respect of the applications filed under Patent Cooperation Treaty known as National Phase applications by payment of the prescribed fee.

    For more information, click here.

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  • Is it necessary to file a provisional application for Patents?

    Generally, when an invention is not complete an application can be filed with provisional specification which is known as provisional application. This is useful in establishing a priority date for your invention.

    For more information, click here.

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  • What are the contents of the Patent Office Journal?

    The Patent office Journal contains information relating to patent applications which are published u/s 11A, post grant publication, restoration of patent, notifications, list of nonworking patents and public notices issued by the Patent Office.

    For more information, click here.

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  • Is it possible to file international application under Patent Cooperation Treaty (PCT) in India?

    Yes, it is possible to file an international application known as PCT application in India in the Patent Offices located at Kolkata, Chennai, Mumbai, and Delhi. All these offices act as Receiving Offices (RO) for International application.  

    For address of these offices, website is: www.ipIndia.nic.in

    For more information, click here.

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  • What is a Patent?

    A Patent is a statutory right for an invention granted for a limited period of time to the patentee by the Government, in exchange of full disclosure of his invention for excluding others, from making, using, selling, importing the patented product or process for producing that product for those purposes without his consent.

    For more information, click here.

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  • Where can one find the information relating to published/ granted patent application?

    The information relating to the patent application is published in the Patent Office Journal issued on every Friday. This is also available in electronic form on the website of the Patent Office, www.ipindia.nic.in

    For more information, click here.

     

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  • What can be patented?

    An invention relating either to a product or process that is new, involving inventive step and capable of industrial application can be patented.

    For more information, click here.

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  • What is the term of a patent in the Indian system?

    The term of every patent granted is 20 years from the date of filing of application. However, for application filed under national phase under Patent Cooperation Treaty(PCT), the term of patent will be 20 years from the international filing date accorded under PCT.

    For more information, click here.

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  • What happens to a patent application once it is examined?

    After examination, the Patent Office issues an examination report to the applicant, which is generally known as First Examination Report (FER). Thereafter, the applicant is required to comply with the requirements within a period of twelve months from the date of FER. In case, the application is found to be in order for grant, the patent is granted, provided there is no pre-grant opposition filed or pending.

    For more information, click here.

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  • Who can apply for a patent? (Under The Patents Act 1970)

    A patent application can be either filled by true and first inventor or his assignee, either alone or jointly with any other person. However, legal representative of any deceased person can also make an application for patent. 

    For further details please access following link.

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  • If an employer, who is not paying basic wages and cost of living allowance separately as fixed under the Act but who is paying wages more than prescribed minimum rates under the Act, committing any illegality?

    The minimum rate of wages fixed under the Act is remuneration payable to the worker as one package of fixed amount, neither the scheme of the Act nor any provision of the Act provides that the rate of minimum wages is to be split into basic wages and cost of living allowance. Therefore, where an employer is paying total sum which is higher than the minimum rate of wages fixed under the Act including cost of living allowance, the employer is not committing any illegality.


    For further details please access following link.

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  • Up to what number of building workers, can obtaining registration certificate be avoided?

    The maximum number of workers are Ten.

    For more information, click here.

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  • What is the type of return to be submitted by small establishments and very small establishments?

    In both Establishments, a core return in ‘Form A’ is required to be submitted.

    For more information, click here.

     

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  • How can the fees be paid under the building and construction workers act?

    Payment can be made online through shram Suvidha Portal.

    For more information,click here.

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  • Who can file Claim application under the Minimum Wages Act, 1948?

    An employee, any legal practitioner or any official of a registered trade union authorized in writing to act, any inspector under the Act or any person with permission of the authority can file claim under the Minimum Wages Act, 1948.


    For further details please access following link.

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  • What are the welfare provisions that need to be made for the workers under the Indian labour laws?

    As per the Indian labour laws, employers need to ensure that following amenities are available to their employees:

    • Canteen (if 250 or more Contract Labour were/are working)
    • Restroom /Shelters/Lunch Rooms (If 150 or more Contract Labour were/are working)
    • Drinking Water
    • Toilets/ Urinal/ Washroom
    • First Aid Facility
    • Creche (if 50 or more women workers are ordinarily employed)
    • Washing facilities

    For more information, click here.

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  • Who all are covered under the exemption from furnishing return component of labour laws?

    Establishments which are covered under the exemption from furnishing return component of labour laws:

    • Small Establishment
    • Very Small Establishment

    For more information, click here. 

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  • Are industrial tribunals allowed to adjudicate upon wage disputes of employees under the act?

    Section 24 of the Industrial disputes Act does not bar the jurisdiction of an Industrial Tribunal to adjudicate upon a dispute relating to the fixation of wages of employees covered under the Act.

    For more information, click here.

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  • What should be done when employer pays less than the prescribed Minimum Wage?

    An aggrieved employee can file a claim application requesting relief before the Authority under the Minimum Wages Act, 1948.


    For further details please access following link.

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  • What is the list of occupations that a child cannot be employed in?

    No child shall be employed or permitted to work in any of the occupations set forth in Part A of the Schedule or in any workshop wherein any of the processes set forth in Part B of the Schedule is carried on.

    For more information, click here.

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  • Is competition due to Merger and Acquisition covered under any act?

    The competition act 2002 governs the laws and regulations with respect to merger, acquisition and amalgamation transactions. Competition commission of India is the governing body.

    For more information, click here.

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  • What is a ‘Target Company’?

    A 'Target Company' is the company/body corporate or corporation whose equity shares are listed in a stock exchange and in which a change of shareholding or control is proposed by an acquirer.

    For more information, click here.

     

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  • What is the procedure to report an acquisition that is made in India?

    In respect of acquisitions under clause (a) of sub regulation (1), and clauses (e) and (f) of sub regulation (4), the acquirer shall intimate the stock exchanges where the shares of the target company are listed, the details of the proposed acquisition in such form as may be specified, at least four working days prior to the proposed acquisition, and the stock exchange shall forthwith disseminate such information to the public.

    For more information, click here.

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  • What is National Company Law Tribunal?

    The National Court of Law Tribunal has been formed under the Companies Act, 2013 setup as a quasi-judicial body for corporate law purposes. NCLT is one of the recent reforms undertaken by the government in corporate law.

    For more information, click here.

     

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  • Who is an ‘Acquirer’?

    Acquirer means any person who, whether by himself, or through, or with persons acting in concert with him, directly or indirectly, acquires or agrees to acquire shares or voting rights in, or control over a target company. An acquirer can be a natural person, a corporate entity or any other legal entity. 
     

    For further details please access following link.

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  • What are the threshold limits for acquisition of shares/voting rights, beyond which an obligation to make an open offer is triggered?

    There are two threshold limits for acquisition of shares/voting rights, beyond which an obligation to make an open offer is triggered:

    • Acquisition of 25% or more shares or voting rights (details in link given below)
    • Acquisition of more than 5% shares or voting rights in a financial year (details in link given below)

    For more information, click here.

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  • What are the guidelines for transfer of existing shares from non-residents to residents or residents to non-residents?

    In case of transfer of capital instruments by way of sale from non-resident to resident or vice -versa, the transfer is to be reported via Form FC-TRS (except in cases not required).

    For more information, click here

     

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  • What is meant by Takeovers & substantial acquisition of shares?

    When an ‘acquirer’ takes over the control of the ‘Target Company’, it is termed as a Takeover. When an acquirer acquires ‘substantial quantity of shares or voting rights’ of the Target Company, it results into substantial acquisition of shares. 
    For further details please access following link.

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  • What are the modes of payment allowed for receiving Foreign Direct Investment in an Indian company?

    An Indian company issuing shares/convertible debentures to a person resident outside India shall receive the amount of consideration by: 
    1) Inward remittance through normal banking channels.
    2) Debit to NRE/ FCNR (B) account of a person concerned maintained with an AD Category I bank.
    3) Debit to non-interest bearing Escrow account in Indian Rupees in India which is opened with the approval from AD Category – I bank and is maintained with the AD Category I bank on behalf of residents and non-residents towards payment of share purchase consideration.
    4) Conversion of royalty/ lump sum/ technical know-how fee due for payment or conversion of ECB. Conversion of pre-incorporation/ pre-operative expenses incurred by the a non-resident entity up to a limit of five percent of its capital or US$ 500,000 whichever is less.
    5) Conversion of import payables/pre incorporation expenses/can be treated as consideration for issue of shares with the approval of FIPB,against any other funds payable to a person resident outside India, the remittance of which does not require the prior approval of the Reserve Bank or the Government of India and swap of capital instruments, provided where the Indian investee company is engaged in a Government route sector, prior Government approval shall be required.If the shares or convertible debentures are not issued within 180 days from the date of receipt of the inward remittance or date of debit to NRE/FCNR (B)/Escrow account, the amount shall be refunded. Further, Reserve Bank may on an application made to it and for sufficient reasons permit an Indian Company to refund/allot shares for the amount of consideration received towards issue of security if such amount is outstanding beyond the period of 180 days from the date of receipt.

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  • When does it become mandatory to notify regarding a combination to CCI?

    The Competition Act requires mandatory notification of all combinations within stipulated timelines. Combinations must be notified to CCI within 30 days of a trigger event

    For more information, click here.

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  • What are the incentives available under the Income tax Act, to business units established in Special Economic Zone?

    A tax holiday for 15 years is granted to units located in a Special Economic Zones (SEZ) that are engaged in export of goods and services. This tax holiday is computed with reference to profits from such exports and is allowed as under.
    1) 100% IncomeTax exemption on export income for first 5 tax years.
    2) 50% for next five tax years thereafter
    3) 50% of the export profit for next five tax years provided an equal amount of profit is retained or transferred to a special reserve in the books of accounts.
    Only units which become operational on or before 31 March 2020 can claim this tax holiday.

    For further details please access following link. 

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  • What other documentation would a project office or branch office in India or Indian subsidiary of a Foreign corporation require to file a tax return?

    Where business / professional receipts of such taxpayers exceed certain thresholds prescribed by the domestic laws, such tax payers would be required to obtain a certificate from a Chartered Accountant (Tax Audit Report) for filing their return in India.

    Also, where such tax payers have inter-group international transactions exceed the prescribed threshold, they shall also be required to obtain a Transfer Pricing Certificate from a Chartered Accountant

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  • What are the common compliances under Indirect taxes in India?

    From 1st July 2017, indirect taxes such as service tax, VAT would be subsumed by Goods and Service tax (GST) which is a comprehensive levy on manufacture, sale, and consumption of goods and services. Major compliances are as follows:

    • GST Registration Number:  It is 15-digit identification that is allotted to taxpayer based on PAN and state of the applicant.

    • Returns:  Under GST, generally, a person is required to file 3 monthly returns and an annual return.

     

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  • How will the State Government communicate regarding stamp duty matter?

    The State Government shall appoint a nodal officer for all official communications with the principal officers (appointed representatives of collecting agents) for the purposes of collection of stamp-duty in accordance with stamp duty Rules.

    For more information on Indian Stamp Act, 1899, click here. For more details about the amendments, refer here.

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  • What is revenue receipt and capital receipt?

    Receipts can be classified into two kinds: A) Revenue receipt, B) Capital receipt.

    Revenue receipts are recurring in nature like salary, profit from business, interest income, etc.

    Capital receipts are generally of isolated nature like receipt on account of sale of residential building, personal jewellery, etc. ​

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  • What are inter-state supplies and intra-state supplies?

    Primarily, in case where the location of the supplier and the place of supply are in same state it will be intra-state and where it is in different states it will be inter-state supplies, except in certain specified cases.

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  • Describe the three-tier approach recommended in the BEPS (Base Erosion and Profit Shifting) report?

    It is recommended in the BEPS report that the countries should adopt a standardized approach to transfer pricing documentation. A three-tiered structure has been mandated consisting of:-

    1. Master file
    2. A local file
    3. A country-by-country report (CbC Report)

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  • How is stamp duty calculated in case of issuance of Mutual fund Units?

    Stamp duty is imposed on the value of units excluding other charges like service charge, AMC fee, GST etc. If the units are issued for INR1 crore then INR 500 would be the stamp duty to be remitted to States.

    For more information on Indian Stamp Act, 1899, click here. For more details about the amendments, refer here.

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  • Who is a Non-resident Taxable Person as per the CGST/SGST Act?

    As per CGST/SGST Act, a non-resident taxable person means any person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.

    For more information, click here.

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  • What components of salary are exempted from income tax?

    Generally, subject to certain conditions, the following items of compensation are not taxable in the hands of employees:

    • House Rent Allowance (HRA)
    • Certain travel/ tour allowances 
    • Reimbursement of medical expenses up to specified limits
    • Leave travel concession
    • Tax borne by an employer on non-monetary perquisites
    • Gratuity
    • Leave encashment 
    • Employer Provident Fund contribution

    Apart from above, there are other allowances such as children’s allowance, hostel allowance, etc., which form part of salary and are exempt from tax but subject to certain conditions and/or monetary limits.

    For more information, click here.

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  • In case an EOU is procuring raw material from the indigenous market and then selling the product in the DTA then what is the amount of duty they are required to pay?

    In case an EOU making a product by procuring 100% raw material indigenously, then such product can be sold in the domestic market on payment of basic duty. Department of Revenue Notification No. Cicrular No. 85/2001-Cus., dated 21/12/2001, may please be seen. 

    For more. go to link.

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  • Which categories do not need an Importer Exporter Code (IEC)?

    Few categories are exempted from IEC, such as:

    • Ministries/ Departments of Central or State Government,
    • Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture etc.

    Detailed lists of exempt categories and corresponding permanent IEC numbers are given in the section named “IEC No. Exempted Categories" in the link provided below.

    For more information, click here

     

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  • What are the benefits of the LOC to the overseas importer of Indian goods and services?

    Exim Bank has been using the LOC mechanism for promoting India's exports to the traditional as well as new markets in developing countries, which need deferred credit for buying Indian machinery, goods and services. As the LOC is extended by Exim Bank on internationally competitive terms, the overseas importer of Indian goods is allowed access to the credit facility at competitive interest rates. The overseas importer and the Indian exporter do not have to negotiate credit terms separately as the credit arrangement between Exim Bank and the overseas borrower financial institution is already in place. 

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  • What is the new policy for import of gold by the banks?

    The new policy for import of gold is yet to be notified by RBI post scrapping of 20: 80 scheme on 28th November 2014 and it is anticipated that this would also be accompanied by some change in duty structure.

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  • Does IEC need to be revalidated after a period of time?

    No, IEC need not be revalidated  if the PAN is incorporated in it, but the same needs to be updated for changes in name / address / constitution.

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  • How can EOUs get star status?

    As per the present provision given in Chapter 3, paragraph 3.21 of the Foreign Trade Policy, exporters are given recognition as a 1 star export house, 2 star export house, 3 star export house, 4 star export house and 5 star export house etc. The eligibility criteria is:-

    (1) One Star Export House -3 million $

    (2) Two Star Export House – 25 million $

    (3) Three Star Export House - 100 million $

    (4) Four Star Export House -500 million $

    (5) Five Star Export House – 2000 million $ .

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  • Can Export /Import be made without Importer Exporter Code?

    No person is allowed to make any import or export without an IEC. IEC forms a primary document for recognition by Govt. of India as an Exporter/ Importer. However, there are a few exceptions listed down by the Directorate General of Foreign Trade.

    For more information, click here.

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  • What is the procedure for import of items which is governed through exclusive or special privileges granted to State Trading Enterprises (STE)(s)?

    Any goods, import of which is governed through exclusive or special privileges granted to State Trading Enterprises (STE(s)), may be imported by STE(s) as per conditions specified in ITC (HS). DGFT may, however, grant an Authorisation to any other person to import or export any of these goods under CHAPTER 2 of the Foreign Trade Policy 2015-2020. More details can be obtained from : Link

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  • Can we offset the payment receivable from importer towards consultancy to be paid to him?

    You are permitted to capitalise the payments due from the foreign entity towards exports, fees, royalties or any other dues from the foreign entity for supply of technical know-how, consultancy, managerial and other services within the ceilings applicable. Capitalisation of export proceeds remaining unrealised beyond the prescribed period of realisation will require prior approval of the Reserve Bank of India.

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  • Can I surrender Import Export Code number if I do not wish to operate as Exporter Importer?

    If an IEC holder does not wish to operate allotted IEC number, he may surrender same by informing issuing authority. On receipt of such intimation, issuing authority shall immediately cancel it and electronically transmit it to DGFT and Customs authorities.

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  • If the provision for renewal of a License is no longer valid for State, how will State be evaluated for this point?

    If the renewal of license is no longer valid in the State, the State must provide appropriate evidence for the same. If another provision has been introduced, such as payment of periodic fee for retention of old license, the State must ensure the process is completely online. Evidence for the same must be provided as well.

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  • What is the limit (number of years) for the digitization of land transaction deed?

    The Reform aims at bringing ease of buying and registering property. The limitation law requires that records up to 30 years are available to the person to verify the title and encumbrances. In the current year, only 10 years of the same is proposed to be covered. Going slow on this reform will keep registering property a cumbersome process for many years. Therefore, the number of years are expected to be 15, 20 and 30 years in next 3 years.

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  • .Introduction of “Minimum 5 years of experience in the field related to boilers for BOE” in contradiction to Rule 31 of the BOE Rules, 2011 relating to age, qualifications and experience for BOE?

    Rule 31 of the BOE Rules, 2011 provides for minimum eligibility criteria i.e. age, qualifications and experience for obtaining a certificate of proficiency and operate a boiler as a Boiler Operation Engineer. The said criteria is Stated for both, Diploma and Degree Holders.

    However, under BRAP 2019, distinction form the qualifications under Rule 31 of the BOE Rules, 2011 has been made in relation to third-party certification. For the purpose of issuing/granting third-party certification, only a BOE who holds a degree/is a graduate in Mechanical/ Production/ Power Plant/ Metallurgical engineering from a recognised institution and has minimum 5 years of experience in the field related to boilers is eligible. The said reform excludes diploma holders to grant third-party certificate.

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  • What should be reflected in metadata Record of Rights (ROR) at all Revenue Department offices online in public domain for all areas of the State/UT?

    The metadata shall reflect ownership details and history of ownership of land.

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  • Are there any specific restriction on BOEs to conduct third-party inspections?

    There are no restrictions on BOE if they are authorized under section 34(3) of the Boilers Act 1923.

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  • What is the process for integration of the data pertaining to cases pending/resolved before the Civil Courts?

    Data pertaining to cases pending/resolved before the Civil Courts is available with the Court Registry or respective filing section(s) of the Revenue/District Courts and High Court in the State. The same falls within the purview of the State and should be integrated/ linked with the record of each parcel of land.

    Further, it has been represented by some States that integration of land records and civil court case data is under consideration of the Supreme Court ecommittee. The Case Information Management System will include details of land in relation to civil court case data. In this regard, the States/UT's are advised to pursue the same for implementation with the Supreme Court e-committee. DIPP will assist States/UTs in this regard, as is required.

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  • Whether both registration and renewal feature required to be developed?

    The State shall develop feature only for registration under Shops and Establishments Act. The “Registration and renewal under The Shops and Establishments Act” refers only to the main heading of the reforms.

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  • When a user enters the survey number/property identification number on the website, the information like land transaction deed, property tax, revenue court case details and civil court case data can be shown on a single web-page of the website?

    Details of land transaction deed, property tax etc. must be displayed on a single web page on one website in a consolidated format.

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  • .Should requirement for renewal of registration under Shops and Establishments Act be eliminated?

    Yes. The State should encourage voluntary update of information by the establishment and remove requirement for renewal of registration under Shops and Establishments Act

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  • Which Departments would fall under the term “Departments involved” as Stated in reform action plan point 1-sub point number (iii)?

    The “Departments involved” means the Departments whose clearances/ approvals/ NOCs are required prior to applying for a particular service.

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