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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:
- A sum equal to 50% of the amount of tax payable on under-reported income
- 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.
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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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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.
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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.
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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.
- Patent
- Industrial Design
- Trade Mark
- Copyright
- Geographical Indications
- Lay put designs of integrated circuits
- Protection of undisclosed information/Trade Secret according to TRIPs agreements
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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).
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Can a computer software be registered under the copyright act?
Yes. Computer Software or programme can be registered as a ‘literary work’. As per Section 2 (o) of the Copyright Act, 1957 “literary work” includes computer programmes, tables and compilations, including computer databases. ‘Source Code’ and “Object Code” have also to be supplied along with the application for registration of copyright for software products.
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Is it allowed to get names and titles copyrighted?
Copyright does not ordinarily protect titles by themselves or names, short word combinations, slogans, short phrases, methods, plots or factual information. Copyright does not protect ideas or concepts. To get the protection of copyright a work must be original.
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If a copyright is rejected, is there any opportunity given for hearing the case?
As per the rule 70 (12) of the Copyright Rules, 2013, an opportunity of hearing must be given. Only after hearing, it may be decided to register the work or to reject it. The applicant himself or his/her pleader may appear in the hearing.
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What is defined as an article under the Designs Act?
Under the Designs Act, 2000 the "article" means any article of manufacture and any substance, artificial, or partly artificial and partly natural; and includes any part of an article capable of being made and sold separately.
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Can the same applicant make an application for the same design again, if the prior application has been abandoned?
Yes, the same applicant can apply again since no publication of the abandoned application is made by the Patent Office, provided the applicant does not publish the said design in the meanwhile.
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What is the penalty for using a registered design under the design act?
If anyone contravenes the copyright in a design, he is liable for every offence to pay a sum not exceeding INR25,000/- to the registered proprietor subject to a maximum of INR50,000/- recoverable as contract debt in respect of any one design.
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What is meant by ‘Design’ under the Designs Act, 2000?
‘Design’ means only the features of shape, configuration, pattern or ornament or composition of lines or colour or combination thereof applied to any article whether two dimensional or three dimensional or in both forms, by any industrial process or means, whether manual, mechanical or chemical, separate or combined, which in the finished article appeal to and are judged solely by the eye, but does not include any mode or principle or construction or anything which is in substance a mere mechanical device, and does not include any trade mark.
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Why is it important to file the application for registration of design at the earliest possible?
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.
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What is piracy of a design?
If anyone contravenes the copyright in a design, s/he is liable for every offence to pay a sum not exceeding Rs. 25,000/- to the registered proprietor subject to a maximum of Rs. 50,000/- recoverable as contract debt in respect of any one design. The registered proprietor may bring a suit for the recovery of the damages for any such contravention and for injunction against repetition of the same.
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Is it possible to transfer the right of ownership under the Designs Act, 2000?
Yes, it is possible to transfer the right through assignment, agreement, transmission with terms and condition in writing or by operation of law subject to certain restrictive conditions. An application in form-10, with prescribed fees in respect of one design and appropriate fees for each additional design, for registration of the transfer documents is required to be made by the beneficiary to the Controller within six months from the date of execution of the instruments or within further period not exceeding six months in aggregate. An original/notarized copy of the instrument to be registered is required to be enclosed with the application.
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Is it mandatory to make the article by industrial process or means before making an application for registration of design?
No, design means a conception or suggestion or idea of a shape or pattern which can be applied to an article or capable to be applied by industrial process or means. Example: a new shape which can be applied to a pen thus capable of producing a new appearance of a pen on the visual appearance. It is not mandatory to produce the article first and then make an application.
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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.
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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.
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Is there a possibility to get a registered trademark removed?
It can be removed on application to the Registrar on prescribed form on the ground that the mark is wrongly remaining on the register.
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What does the trademark register contain?
The register of trademark currently maintained in electronic form contains inter alia the trademark the class and goods/ services in respect of which it is registered including particulars affecting the scope of registration of rights conferred; the address of the proprietors; particulars of trade or other description of the proprietor; the convention application date (if applicable); where a trademark has been registered with the consent of proprietor of an earlier mark or earlier rights, that fact.
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What are the sources of trademark laws?
The national statues i.e., The Trade Marks Act, 1999 and rules made are as under:
· International multilateral convention.
· National bilateral treaty.
· Regional treaty
· Decision of the courts
· Office practice reduced in Manuals and guidelines and rulings of the Courts.
· Decision of Intellectual Appellate Board.
· Text books written by academician ad professional experts
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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.
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What are the formalities and government fees for major trademark transactions?
- 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/-
- 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<
- For Renewal of a Regd. trademark (Form TM-12). Fees: INR 5,000/-
- Surcharge for belated renewal (Form TM-10). Fees: INR 3,000/-
- Restoration of removed mark (Form TM-13) Fees: INR 5,000/-
- Application for rectification of a registered trademark (Form TM-26) Fees: INR 3,000/-
- Legal Certificate (Form TM-46) (Providing details of entries in the Register) Fees: INR 500/-
- Copyright search request and issuance of certificate (Form TM-60) Fees: INR 5,000/-.
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What are the types of trademarks in India?
Following are the types of trademarks in India:
- 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.
- An invented word or any arbitrary dictionary word or words, not being directly descriptive of the character or quality of the goods/service.
- Letters or numerals or any combination thereof.
- 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.
- Devices, including fancy devices or symbols
- Monograms
- Combination of colors or even a single color in combination with a word or device
- Shape of goods or their packaging
- Marks constituting a 3- dimensional sign.
- Sound marks when represented in conventional notation or described in words by being graphically represented.
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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.
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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.
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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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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.
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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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Does Indian Patent give protection worldwide?
No. Patent protection is a territorial right and therefore, it is effective only within the territory of India. There is no concept of global patent. However, filing an application in India enables the applicant to file a corresponding application for same invention in convention countries or under PCT, within or before expiry of twelve months from the filing date in India. Patents should be obtained in each country where the applicant requires protection of his invention.
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Does patent office help in finding users for patent? (Under The Patents Act 1970)
The Patent Office has no role in the commercialization of patent. However, the information relating to patents is published in the e-journal of the Patent Office in the official website which is freely accessible to the public worldwide. This certainly helps the applicant to attract potential user or licensee. The Patent office also compiles a list of patents which have not been commercially worked in India.
For further details please access following link.
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How can I apply for a patent?
A patent application can be filed with Indian Patent Office either with provisional specification or with complete specification along with fee as prescribed in schedule I. In case the application is filed with provisional specification, then one has to file complete specification within 12 months from the date of filing of the provisional application.
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Is there a possibility for early publication of patents?
Yes, the applicant can make a request for early publication in Form 9 along with the prescribed fee.
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What is the term of patent? (Under The Patents Act 1970)
Term of every patent in India is 20 years from the date of filing of patent application, irrespective of whether it is filed with provisional or complete specification. However, in case of applications filed under PCT, the term of 20 years begins from International filing date.
For further details please access following link.
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Is there provision for filling patent application electronically by online system?
Yes, one can file patent applications through comprehensive online filing system at https://ipindiaonline.gov.in/epatentfiling/goForLogin/doLogin.
For more information, click here.
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Does patent office help in finding users for patent?
The Patent Office has no role beyond grant of patent. Since patents are private rights the patent owner is responsible for commercializing the patent either himself or through licensee. However, the information relating to grant of patent is published in the Patent Office journal and also published on the Patent Office website which is accessible to the public worldwide.
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Is there any difference in the amount of fees to be paid by an individual or a legal entity for filing a patent application?
Yes, the Patent Rules provides for different fee for individuals/Startups, SME‘s and legal entity. Details can be seen in the First Schedule of the Patents Rules, 2003 as amended from time to time.
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Is the employer obliged to employ people sponsored by employment exchanges under the act?
No, the employer is not obliged to select or employ a person sponsored by the Employment Exchanges Act, 1959.
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Earlier I employed 22 Labourers, now I have reduced to 18 workmen, whether my establishment has to continue with the Labour license or surrender under the Contract Labour (R&A) Act, 1970?
Yes, your establishment will continue to be covered under the provisions of the Contract Labour (R&A) Act, 1970 for a period of one year from the day on which 20 or more workmen were lastly employed.
For further details please access following link.Was this helpful?
What are the registers to be maintained under Act?
Register showing the name of date of birth of every child so employed or permitted to work, hours and periods of work of any such child and intervals of rest, the nature of work of any such child.
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Can an employee give up his rights under the minimum wages act?
Any contract or agreement, whether made before or after the commencement of this Act, whereby an employee either relinquishes or reduces his right to a minimum rate of wages or any privilege or concession accruing to him under this Act shall be null and void. (Section 25).
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What is the procedure for the issuance of a duplicate license under the Contract Labour (R&A) Act, 1970?
A fee of US$ 0.075 to be remitted along with a request under the Contract Labour (R&A) Act, 1970.
For further details please access following link.Was this helpful?
What are the notices to be displayed under the Act and list of actions that are considered as misconduct at workplace?
An abstract of Section 3 and 14 of the Act in Local Language and English.
List of actions are:•Willful insubordination or disobedience, whether or not in combination with another, of any lawful and reasonable order of a superior.
•Going on illegal strike or abetting, inciting, instigating or acting in furtherance thereof;
•Willful slowing down in performance of work, or abetment or instigation thereof;
•Theft, fraud or dishonesty in connection with the employers’ business or property or the theft or property of another workman within the premises of the establishment;
•Taking or giving bribes or any illegal gratification;
•Habitual absence without leave, or absence without leave for more than ten consecutive days or overstaying the sanctioned leave without sufficient grounds or proper or satisfactory explanation;
•Habitual breach of any Standing Order or any law applicable to the establishment or ant rules made there under;
•Collection without the permission of the Manager of any money within the premises of the establishment except as sanctioned by any law for the time being in force;
•Engaging in trade within the premises of the establishment;
•drunkenness, riotous, disorderly or indecent behavior on the premises of the establishment;
•Commission of any act subversive of discipline or good behavior on the premises of the establishment;
•Habitual neglect of work, or gross or habitual negligence;
•Habitual breach of ant rules or instruction for the maintenance and running of any department, or the maintenance of the cleanliness of any portion of the establishment;
•Habitual commission of any act or commission for which a fine may be imposed under the Payment of Wages Act, 1936.
•Canvassing for union membership, or the collection of union dues within the premises of the establishment except in accordance with any law or with the permission of the Manager
•Willful damage to work in process or to any property of the establishment;
•holding meeting inside the premises of the establishment without the previous permission of the Manager or except in accordance with the provisions of any la for the time being in force;
•Disclosing to any unauthorised person any information in regard to the processes of the establishment which may come into the possession of the workman in the course of his work;
•Gambling within the premises of the establishment;
•Smoking or spitting on the premises of the establishment where it is prohibited by the employer;
•Failure to observe safety instructions notified b the employer or interference with any safety device or equipment installed within the establishment;
•Distributing or exhibiting within the premises of the establishment hand-bills, pamphlets, posters, and such other things or causing to be displayed by means of signs or writing or other visible representation on any matter without previous sanction of the Manager;
•Refusal to accept a charge-sheet, order or other communication served I accordance with these Standing Orders;
•Unauthorised possession of any lethal weapon in the establishment.Was this helpful?
Can employees go to a civil court for recovering minimum wages payable under the minimum wages act?
The Act prohibits Civil Courts from entertaining any suit for recovery of minimum wages payable under the Minimum Wages Act, 1948 (Section 24).
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Is a subcontractor supposed to take License under the Contract Labour (R&A) Act, 1970?
If principal employer endorses the name of sub-contractor in the agreement, after having Form V from principal employer, a subcontractor is requested to take license under the Contract Labour (R&A) Act, 1970.
For further details please access following link.
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After what age can a person start working in India?
In India, child below 14 years cannot be employed. However, there are following exceptions which includes non-hazardous family enterprises and child working as an artist in an audio-visual entertainment industry.
Additionally, a child above 14 years but below 15 years of age can be employed only for 4.5 hours a day and cannot work during the night.
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Is an employer required to maintain any register and record under the Minimum Wages Act, 1948?
Every employer must maintain a muster-roll-cum-wage register and also a bound inspection book. (Rule 27 & 28) of the Minimum Wages Act, 1948.
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What is the meaning of a voluntary open offer?
A voluntary open offer under Regulation 6, is an offer made by a person who himself or through persons acting in concert, if any, holds 25% or more shares or voting rights in the target company but less than the maximum permissible non-public shareholding limit.
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Does one need to notify CCI in case they are acquiring less than 25% of equity shares of a listed company from a secondary market?
The acquisition of up to 25% shares where the acquirer does not acquire control and the acquisition is solely as an investment or in ordinary course of business, need not normally be notified to the CCI for prior approval.
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Do all acquisitions of shares in excess of the prescribed limits and/or control lead to an open offer?
No, in respect of certain acquisitions, SAST Regulations, 2011 provide exemption from the requirements of making an open offer, subject to certain conditions being fulfilled. For example, acquisition pursuant to inter- se transfer of shares between certain categories of shareholders, acquisition in the ordinary course of business by entities like underwriter registered with SEBI, stock brokers, merchant bankers acting as stabilizing agent, Scheduled Commercial Bank (SCB), acting as an escrow agent, etc.
For further details please access following link.
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What are the applicable competition laws/rules/regulations in respect of merger, amalgamations and acquisition transactions?
Following statutory provisions apply to mergers, amalgamations and acquisitions from competition law perspective:
1) Competition Act, 2002.
2) The Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011.
3) The Competition Commission of India (General) Regulations, 2009:
i) Notification No. S.O. 93(E) dated January 8, 2013
ii) Notification No. S.O. 673(E) dated March 4, 2016
iii) Notification No. S.O. 674(E) dated March 4, 2016
iv) Notification No. S.O. 675(E) dated March 4, 2016
v) Notification No. S.O. 988(E) dated March 29, 2017
vi) Notification No. S.O. 2039(E) dated June 29, 2017
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What is the validity of an open offer?
What are the important regulations pertaining to mergers and acquisitions in India?
The key laws governing M&A in India are:
- Companies Act, 1956 and 2013
- Income Tax Act, 1961
- Competition Act, 2002
- Foreign Exchange Management Act.
The key regulations governing M&A in India are:
- Securities and Exchange Board of India (SEBI)
- Takeover code of SEBI.
- Reserve Bank of India.
- Competition Commission of India.
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What does the minimum level of acceptance mean under Sebi takeover code?
'Minimum level of acceptance’ implies minimum number of shares which the acquirer desires under the said conditional offer. If the number of shares validly tendered in the conditional offer are less than the minimum level of acceptance stipulated by the acquirer, then the acquirer is not bound to accept any shares under the offer.
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What is an open offer under the SAST Regulations, 2011, Under which situations is an open offer required to be made by an acquirer?
An open offer is an offer made by the acquirer to the shareholders of the target company inviting them to tender their shares in the target company at a particular price. The primary purpose of an open offer is to provide an exit option to the shareholders of the target company on account of the change in control or Substantial acquisition of shares, occurring in the target company.
If an acquirer has agreed to acquire or acquired control over a target company or shares or voting rights in a target company which would be in excess of the threshold limits, then the acquirer is required to make an open offer to shareholders of the target company.For further details please access following link.
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What is the defined size for an open offer to be made under SEBI takeover code?
An open offer, other than a voluntary open offer under Regulation 6, must be made for a minimum of 26% of the target company’s share capital. The size of voluntary open offer under Regulation 6 must be for at least 10% of the target company’s share capital. Further the offer size percentage is calculated on the fully diluted share capital of the target company taking into account potential increase in the number of outstanding shares as on 10th working day from the closure of the open offer.
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What does the term control entail as per the guidelines of CCI?
“Control” means controlling the affairs or management of a target enterprise or group.
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How is the residential status of a company determined?
A Company is said to be resident in India in any previous year, if:
- It is an Indian company or
- Its place of effective management, at any time in that year, is in India For more information, click
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How does the Government collect Income-tax?
Taxes are collected by the Government through three means: a) voluntary payment by taxpayers into various designated Banks. For example, Advance Tax and Self Assessment Tax paid by the taxpayers, b) Taxes deducted at source [TDS] from the income of the receiver, and c) Taxes collected at source [TCS]. It is the constitutional obligation of every person earning income to compute his income and pay taxes correctly.
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Whether a company having a SEZ unit or being SEZ developer need to have separate registration?
Yes. A person having SEZ unit or being SEZ developer shall have to apply for a separate registration, as distinct from his place of business located outside the SEZ in the same state or union territory.
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What is the monetary threshold for applicability of MF (Master file) regulations for a CE?
Every person, being a CE of an international group operating in India, shall file such details in part A to Form 3CEAA. Further, such person shall also be required to file additional details as required under part B of Form No. 3CEAA if it satisfies the following criteria:
- If the consolidated group revenue of the international group, of which such person is a constituent entity, as reflected in the consolidated financial statement of the international group for the accounting year, exceeds INR 5 Bn
- The aggregate value of international transactions:
- During the accounting year, as per the books of accounts, exceeds INR 500 Mn
- In respect of purchase, sale, transfer, lease or use of intangible property during the accounting year, as per the books of accounts, exceeds INR 100 Mn
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What are the stamp duty rates being implemented through the Amended Indian Stamp Act?
Stamp Duty Rates w.e.f. 1st July 2020
Instrument Rate Issue of Debenture 0.005% Transfer and Re-issue of debenture 0.0001% Issue of security other than debenture 0.005% Transfer of security other than debenture on delivery basis 0.015% Transfer of security other than debenture on non-delivery basis 0.003% Derivatives (i) Futures (Equity and Commodity) 0.002% (ii) Options (Equity and Commodity) 0.003% (iii) Currency and Interest Rate Derivatives 0.0001% (iv) Other Derivatives 0.002% Government Securities 0% Repo on Corporate Bond 0.00001% Was this helpful?
Which are the cases in which registration is compulsory?
As per Section 24 of the CGST/SGST Act, the following categories of persons shall be required to be registered compulsorily irrespective of the threshold limit:
i) persons making any inter-State taxable supply;
ii) casual taxable persons;
iii) persons who are required to pay tax under reverse charge;
iv) electronic commerce operators required to pay tax under sub-section (5) of section 9;
v) non-resident taxable persons;
vi) persons who are required to deduct tax under section 51;
vii) persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise;
viii) Input service distributor (whether or not separately registered under the Act)
ix) persons who are required to collect tax under section 52;
x) every electronic commerce operator
xi) every person supplying online information and data base retrieval services from a place outside India to a person in India, other than a registered person; and,
xii) such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.Was this helpful?
What is the period for which a taxpayer’s income is taken into account for the purpose of calculating income-tax?
Income-tax is levied on the annual income of a taxpayer. The year under the Income-tax Law is the period starting from 01 April and ending on 31 March of the next calendar year. The Income-tax Law classifies the year as (1) Previous year and (2) Assessment year.
The year in which income is earned is called as previous year and the year in which the income is charged to tax or is assessed is called the assessment year. For example, income earned during the period of 01 April 2019 to 31 March 2020 is treated as income of the previous year 2019-20. Income of the previous year 2019-20 will be charged to tax in the next year, i.e., in the assessment year 2020-21.
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What are the recent changes in Corporate Income Tax (CIT) for domestic companies?
With effect from tax year 2019-20, domestic companies shall have an option to pay income tax at the rate of 22% plus 10% surcharge and 4% cess taking the effective tax rate (ETR) to 25.17%, subject to the condition that they will not avail specified tax exemptions or incentives under the Income Tax Act. New domestic manufacturing companies, incorporated on or after 1 October 2019 and commencing manufacturing on or before 31 March 2023, making fresh investments in manufacturing, will have an option to avail an even lower tax rate of 15% plus 10% surcharge and 4% cess taking the ETR to 17.16%
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Which instruments are covered under Part AA of Chapter II of the amended Stamp Act and the Rules made thereunder?
Each security is charged with a duty as specified in Schedule I of the amended Stamp Act. Securities are defined to include all those instruments specified in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956; a “derivative” as defined in clause (a) of Section 45U of the Reserve Bank of India Act, 1934; a certificate of deposit, commercial usance bill, commercial paper and such other debt instrument of original or initial maturity up to one year as the Reserve Bank of India may specify from time to time; repo on corporate bonds; and any other instrument declared by the Central Government, by notification in the Official Gazette, to be securities for the purposes of this Act.
For more information on Indian Stamp Act, 1899, click here. For more details about the amendments, refer here.
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What is Form 26AS?
A taxpayer may pay tax in any of the following forms:
(1) Tax Deducted at Source (TDS)
(2) Tax Collected at Source (TCS)
(3) Advance tax or Self-assessment Tax or Payment of tax on regular assessment.
The Income-tax Department maintains the database of the total tax paid by the taxpayer (i.e., tax credit in the account of a taxpayer). Form 26AS is an annual statement maintained under Rule 31AB of the Income-tax Rules disclosing the details of tax credit in his account as per the database of Income-tax Department. In other words, Form 26AS will reflect the details of tax credit appearing in the Permanent Account Number of the taxpayer as per the database of the Income-tax Department. The tax credit will cover TDS, TCS and tax paid by the taxpayer in other forms like advance tax, Self-Assessment tax, etc.
Income-tax Department will generally allow a taxpayer to claim the credit of taxes as reflected in his Form 26AS.
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Can a Public Limited Co. / Private Limited Co./ Partnership obtain different IECs for different concerns owned by it ?
No. However, the name of each concern owned by such a company may be included in the IEC of the firm in whose name PAN exists, as a branch.
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Can we discharge export obligation under EPCG by selling ITA 1 products in the domestic market?
Supply of ITA-1 items to Domestic Tariff Area, provided realization is in free foreign exchange, is considered for meeting the export obligation under EPCG Scheme and thus you can do it.
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Is PAN Number / PAN card essential for IEC? What are the alternatives?
After introduction of GST, PAN is the IEC.
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What are ‘Project Imports’? What are the advantage of importing under project import regulation?
Project Imports are the imports of machinery, instruments, and apparatus etc., required for initial sating up of a unit or for substantial expansion of an existing Unit. The exported goods are charges duty at a flat rate of duty under the same tariff heading. Project Imports assessment is a scheme of assessment which is designed to help expeditious and easy assessment of variety of industrial goods falling under different chapters of the Customs Tariff.
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Which is the issuing authority for Import Export Code?
IEC number is issued by Directorate General of Foreign Trade at each regional office where the exporter/importer is situated. It has recently introduced the facility of issuing Importer Exporter Code in electronic form (e-IEC).
For issuance of e-IEC an application can be submitted online on DGFT website. Applicants can upload the documents and pay the required fee through net banking.
For more information, click here.
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What is the procedure for transfer of imported goods?
Freely importable goods can be transferred by sale or otherwise by importer freely. Transfer of imported goods, which are subject to actual user condition and have become surplus to the needs of actual user, shall be made only with prior permission of DGFT (HQ). For details relevant para 2.43 of Handbook of Procedures may be seen.
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Can we get refund of Service Tax on payments made for Certificates of Origin (COO) to FIEO or other Chambers of Commerce?
FIEO or EPC or Trade Association which issues COO Certificate acts as a technical inspection and certification agency, and issuance of COO attracts service tax under ‘technical inspection and certification agency’ service. Service tax paid on ‘technical inspection and certification’ of export goods is eligible for refund under Notification 17/2009-ST dated 7th July, 2009.
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What are the documents needed for an Importer Exporter Code application?
The following documents to be submitted/ uploaded along with the application for IEC:
A. Entity seeking the IEC:
(1) PAN of the business entity in whose name import/export would be done (Applicant individual in case of Proprietorship firms).
(2) Address proof of the applicant entity.
(3) LLPIN /CIN/ Registration Certification Number (whichever is applicable).
(4) Bank account details of the entity. Cancelled cheque bearing entity’s pre-printed name or Bank certificate in prescribed format ANF2A(I).
B. Proprietor/ Partners/ Directors/ Secretary or Chief Executive of the Society/ Managing Trustee of the entity:
(1) PAN (for all categories)
(2) DIN/DPIN (in case of Company /LLP firm)
C. Individual/ signatory applicant:
(1) Identity proof
(2) PAN
(3) Photograph
More details on documents can be obtained from the following Link
C. Individual/ signatory applicant:
(1) Identity proof
(2) PAN
(3) Photograph
More details on documents can be obtained from the following Link
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What are the documents to be filled to clear the imported goods for home consumption?
1) Supplier’s invoice.
2) Import Authorisation, if applicable
3) Bill of lading (original and non-negotiable).
4) Packing list (2 copies).
5) If invoice is for FOB, freight charges and insurance premium amount certificate should be attached.
6) Catalogue/write/up/drawing for machinery items.
7) If second hand machinery is being imported then Chartered Engineers certificate is necessary as per the Import Export Policy
8) If steel is being imported then analysis certificate from manufacturers.
9) In the case of chemicals & allied products like synthetic resin wax, literature showing chemical composition.
Apart from the above the importers are also required to file declaration in the prescribed form by the importers regarding correctness of the contents and the value of the goods.
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What is the procedure for import of prototypes?
Import of new / second hand prototypes / second hand samples may be allowed on payment of duty without an authorisation to an actual user (Industrial) engaged in production of or having industrial licence / letter of intent for research in item for which prototype is sought for product development or research, as the case may, upon a self – declaration to that effect, to satisfaction of customs authority.
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With reference to this reform please clarify the applicability of ‘’Provision of risk-based classification of Buildings’’ clause for Lifts and electrical installations.
The reform does not refer to lift and escalator installation
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State/UT might require applicants to submit fewer documents to process application for electricity connections than mandated under BRAP 2019. Will reform be approved?
The reform requires States/UTs to reduce the document required to obtain electricity connection to the following:
- Proof of identity of the user
- Proof of ownership/occupancy (in case of owned/leased premise)
- Authorization document (in case of firm or company) In case the State/UT chooses to further reduce this list, the reform will be approved provided other criteria for approval for this reform are met.
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Which are the incentives that are covered under this reform?
The reform only refers to the incentives provided by the State Government.
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What is meant by legally sanctioned Master plans/ Zonal plans/ land use plans?
The plan must have been adopted by the ULB/ relevant Department in the State and must not be in a draft or consultation stage.
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Under what provisions can the Appellate Authority for Advance Ruling be constituted?
The Appellate Authority for Advance Ruling is constituted under the relevant provisions of the State/UT GST Act. For example the provisions for constitution of Appellate Authority for Advance Ruling are mentioned under Punjab Goods and Services Tax Act 2017, Chapter XVII on ‘Advance Ruling’, Section 99.
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What is meant by the term “verification” used in Reform point 4-sub point i.e. “Eliminate physical touch-point for document submission and verification”
The Reform Point pertains to elimination of physical touch-point at the time of the routine scrutiny and verifying the sanctity of documents, done by the Departments after receipt of an application.
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Whether the authorization of BOE is required to be introduced for both registration & renewal of boilers or only for renewal of boilers as unregistered boilers cannot be in use?
Authorization of Boiler Operation Engineer is required to be introduced only for renewal of boilers.
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Inspection reports for how many years must be available for download on the Central Inspection System?
Inspection reports for the year 2017, 2018 and 2019 must be available for download on the Central Inspection System.
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What is meant by the term “verification” used in Reform point 4-sub point i.e. “Eliminate physical touch-point for document submission and verification”
The Reform Point pertains to elimination of physical touch-point at the time of the routine scrutiny and verifying the sanctity of documents, done by the Departments after receipt of an application.
The investor should not be required to visit the Department concerned nor should the official be required to physically contact him for the purpose of verification. Clarification may be sought online.
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Are the States required to empanel the same agencies for third-party certification which have been empanelled by DPIIT?
Yes. There is no need for empanelment of the same third party agencies by the State.
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