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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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What are the documents required to be maintained by a company while executing an international transaction?
Transfer pricing documentation requirements are provided under Section 92D of the Act and Rule 10D of the Income-tax Rules, 1962 (Rules).
The categories of documentation required are:
- Ownership structure
- Profile of the multinational group
- Business description
- Nature and terms (including prices) of international transactions
- Description of functions performed, risks assumed and assets employed
- Record of any financial estimates
- Record of uncontrolled transaction with third parties and a comparability evaluation
- Description of methods considered
- Reasons for rejection of alternative methods
- Details of transfer pricing adjustments
- Any other information or data relating to the associated enterprise that may be relevant for determining the arm’s-length price
A list of additional optional documents is provided in Rule 10D(3).
In addition, the taxpayer is required to obtain and furnish an Accountant’s Certificate (Form 3CEB) regarding maintenance of documentation. This has to be filed irrespective of the transaction value.
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Does transfer pricing documentation has to be prepared annually?
Transfer pricing documentation has to be prepared annually, as per the Indian Transfer Pricing regulations. Full transfer pricing documentation, including an update of the functional analysis and fresh economic analysis using contemporaneous data, must be maintained, in case the total value of international transaction is more than INR 10 million and/or aggregate value of specified domestic transactions exceed INR 200 million.
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What is the meaning of arm's length price?
Arm's length price is the price which is applied or proposed to be applied to transactions between persons other than the Associated Enterprises in uncontrolled conditions.
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What is the materiality limits/threshold for preparing and maintaining transfer pricing (TP) documentation?
The annual TP documentation is required to be maintained if the aggregate value of all international transactions during the relevant financial year exceeds INR 10 million (approximately US$156,250) and/or specified domestic transactions during the relevant financial year exceed INR 200 million (US$3,125 million).
The economic analysis is required to be maintained to justify the arm’s length character of the international transaction, irrespective of the transaction value threshold.
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What are Associated Enterprises (AEs)?
Section 92A of the Income - tax Act, 1961 specifies that two or more enterprises become associated enterprises when one of them participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise(s).
For further details, please access the following link.
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What are the different methods to calculate arm’s length price?
The various methods to calculate the arm’s length price with respect to an international/specified transaction are as under:
- Comparable uncontrolled price method (CUP)
- Resale price method (RPM)
- Cost plus method (CPM)
- Profit Split Method (PSM)
- Transactional net margin method (TNMM)
- Other Method as prescribed by the Board (CBDT)
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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-paymentFor 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.
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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
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).
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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 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
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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.
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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
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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.
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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.
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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.
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What are the essential requirements for the registration of ‘design’ under the Designs Act, 2000?
- 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.
- The design should relate to features of shape, configuration, pattern or ornamentation applied or applicable to an article.
- The design should be applied or applicable to any article by any industrial process.
- 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.
- 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.
- The design should not include any Trade Mark or property mark, or artistic works as defined under the Copyright Act, 1957.
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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.
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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/-.
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:
- 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.
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.
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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.
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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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When should an application for a patent be filed?
An application for a patent can be filed at the earliest possible date and should not be delayed. An application filed with provisional specification, disclosing the essence of the nature of the invention helps to register the priority of the invention. Further, the application for patent should be filed before the publication of the invention and until then it should not be disclosed or published.
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Can any invention be patented after publication or display in the public exhibition?
Generally, an invention which has been either published or publicly displayed cannot be patented as such publication or public display leads to lack of novelty. However, under certain circumstances, the Patents Act provides a grace period of 12 months for filing of patent application from the date of its publication in a journal or its public display in an exhibition organised by the Government or disclosure before any learned society or published by applicant.
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Does the Patent Office help to select a patent attorney or agent to make patent search or to prepare and prosecute patent application? (Under The Patents Act 1970)
Yes, Patent Office is publishing the list of facilitators who are willing to play a role in filing patent applications for start-ups and act as a patent agent on their behalf. Their fees for this purpose have also been notified. The list of facilitators is available in IPO website www.ipindia.nic.in and has also been uploaded in the Start-up Hub in DPIIT website.
For further details please access following link.
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How a patent specification is prepared?
A patent specification can be prepared by the applicant himself or his registered and authorized agent. The patent specification generally comprises of the title of the invention indicating its technical field, prior art, draw backs in the prior art, a concise but sufficient description of the invention and its usefulness, drawings (if any) and details of best method of its working.
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What happens when applicant is not able to meet the requirement within the prescribed time for a patent?
If the applicant does not file a reply within 6 months or does not take an extension of 3 months, the application is deemed to have been abandoned.
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What are obligations of the patentee after grant of patent?
After grant of patent, every patentee has to maintain the patent by paying renewal fee every year as prescribed in the schedule I. for first two years, there is no renewal fee.
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What does provisional specification of patents include?
Indian Patent Law follows first to file system. A provisional application is an application which can be filed if the invention is still under experimentation stage. Filing a provisional specification provides the advantage to the inventor since it helps in establishing a priority date of the invention.
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Does the Patent Office keep information of the invention secret?
Yes. All the patent applications are kept secret upto 18 months from the date of filing or priority date whichever is earlier and thereafter they are published in the Official Journal of the Patent Office which is published every week and also available on the IPO website.
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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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I employed 20 Contract Labour only on one day, will my establishment be covered under Contract Labour (R & A) Act, 1970?
Is there anything that I need to adhere to, before recruiting women for my company?
The following need to be adhered to for recruiting women in a company:
- Every employer employing more than 10 workers shall constitute an “Internal Complaints Committee” (ICC) to address any complaints of the women employee related to sexual harassment.
- Women employees are entitled to 12-26 weeks of maternity leave.
- Moreover, women are not to be allowed to work in a factory between 10:00 pm to 5:00 am.
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Can employees file application in groups for claiming minimum wages under the act?
A single application can be made on behalf or in respect of any number of employees as per The Minimum Wages Act, 1948.
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If a Trade Union has an identical name with another, will it be registered?
Registrar of Trade Union shall not register that union, until they make a change in the identical name under the Trade Union Act.
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What are the privileges in terms of pay that laid-off labourers can avail?
Workers who have completed one year of services are eligible for compensation equal to 50% of total Basic wages and Dearness Allowance.
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Is it possible to award ten times compensation of the difference amount between wages payable and actually paid, under the minimum wages act?
The limit of 'ten times the amount of such excess' mentioned in section 20(3)(i) of the Minimum Wages Act, 1948 is the maximum limit. When the Authority awards heavy compensation under the said section, it must give reasons for doing so.
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Registrar of Trade Union withdrew a union’s registration in view of non performance of certain statutory provisions. Is it possible?
Registrar has the power only to cancel the registration. He cannot withdraw the order of registration issued by him.
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Are there any policies with respect to child labours? If yes, which act?
Yes, The National Policy on Child Labour declared in August 1987, contains the provisions with respect to employment of child labour.
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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.
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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.
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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.
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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.
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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)
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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).
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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.Was this helpful?
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.Was this helpful?
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
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What are the consequences if a taxpayer (say, Chinese corporation or Wholly Owned Subsidiary, WOS) does not file tax return in India?
Non-filing of tax return despite of having taxable income carries penalty and prosecution exposure. Also, non-filing of tax return with negative income by due date prohibits the carry forward of such losses including the losses in the past years, if any, to the subsequent year for adjustment against subsequent year(s) positive income. Taxpayers are liable to furnish the tax returns even in situation where tax payable is negated by the taxes withheld by the customers.
Further, it may be noted that non-payment of tax, i.e., tax evasion can attract interest, penalty and prosecution.
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If the ultimate parent entity of the group is a resident of a country (home jurisdiction) where the CbCR is not required to be filed, or if it has not opted for a parent surrogate filing, will the Indian CE be required to file a CbCR in India?
As per the section 286(4) of the Income Tax Act, if the ultimate parent entity, resides in a country where CbCR is not required to be filed and the group has not opted for a surrogate filing, then the entity will be obligated to file a CbCR in India.
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Who will collect and transfer the Stamp duty to States in case of transactions in units of Mutual Funds and AIFs in Statement of Account/ Physical (non-demat form)?
To provide for collection of Stamp Duty on transactions in mutual fund and AIF units in the statement of account/physical (non-demat) form, RTI and/or STA have been notified (vide Gazette Notification dated 8th January, 2020) as a “Depository” for the limited purposes of acting as a “collecting agent” under the said Act and the Rules made thereunder. Accordingly, for non-demat Mutual Fund and AIF transactions, collection of stamp duty by RTAs shall be governed by the provisions of Section 9A(1)(b) and 9A(1)(c) and the transfer of stamp duty to the respective States shall be governed by the provisions of Section 9A (4). Thus, the transfer of collected stamp duty to respective States/UTs by RTAs also is governed by buyer-based principle as covered in Section 9A(4) and not on the basis of registered office of the issuer.
For more information on Indian Stamp Act, 1899, click here. For more details about the amendments, refer here.
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How to deposit Self Assessment Tax or Advance tax to the credit of Government?
Self Assessment Tax or Advance Tax is to be deposited to the credit of Government by using the challan prescribed in this behalf, i.e., ITNS 280. The Challan can be downloaded from www.incometaxindia.gov.in Tax can be paid in the designated banks through two modes, viz., physical mode, i.e., cash/cheque or e-payment mode by using debit card or internet banking.
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What duties will be levied on import of goods?
Customs duty and cess as applicable + IGST+ GST compensation cess. IGST and GST compensation cess shall be paid after adding all customs duty and customs cess to the value of imports.
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What is an e-way bill?
An e-way bill is an electronic document generated on common portal evidencing movement of goods of consignment value more than INR 50,000.
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What is e-PAN?
e-PAN is a digitally signed PAN card issued in electronic form and it is a valid proof of allotment of PAN.
For more information, click here.
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Would a foreign bidder require a Goods and Service Tax registration in India for execution of works contract?
If the foreign bidder coming into India for execution of LSTK works contract, then as per Sec 24 of CGST Act, such foreign bidder would be required to obtain GST registration mandatorily in India.
For more information, click here
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Do the Indian tax laws prescribe any beneficial tax rates where a Foreign corporation proposes to establish an Indian subsidiary for undertaking manufacturing activities in India?
Yes. The Indian tax laws provide the option of beneficial tax rate of 17.6% (15% plus 10% plus 4%) for taxing the income of a new Indian subsidiary engaged in manufacturing activities, incorporated on or after 01 October 2019 and commencing manufacturing on or before 31 March 2023 (subject to certain conditions).
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What is income tax return (ITR)?
ITR stands for Income Tax Return. It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department. It also allows carry -forward of loss and claim refund from income tax department.
For more information, click here
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We have exported in a foreign currency which does not appear in the list of customs. How can we calculate the foreign exchange received for discharging our export obligation?
In such cases, total realised value in rupee as mentioned by bank in the eBRC should be converted into $ by using the $ or INR exchange rate prevailing on the date of realisation as published by customs through notification.
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What is the validity of IEC?
An IEC allotted to an applicant shall have permanent validity unless cancelled by the competent authority. The IEC will cover all branches / divisions / units / factories of the applicant.
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What is custom duty and its different types ?
Customs duty is the duty charged on goods on their importation into India or exportation out of India.
There are two types of rates of duty of Customs:
1. Ad valorem rate i.e., the duty is charged on the basis of value.
2. Specific rate i.e., on the basis of quantity/number/ volume
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What does IEC stand for?
How do I find HS Code for my product?
If you want to know the HS Code, Click on ‘ITC HS Based Policy’ on the website of DGFT. A new window will open as ITC(HS) Query Form. Insert the name of the product in the description option to know the HS Code of your product. Similarly, if you want to know the product and are already aware of the HS Code, enter the ITC(HS) Code (e.g. 0324) option to know the product.
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What is the procedure for import under Government to Government agreement?
Import of goods under Government to Government agreement may be allowed without an Authorisation or CCP on production of necessary evidence to satisfaction of Custom Authorities.
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What documents does a foreign national need to provide for obtaining Import Export Code?
Non-resident Indians (NRI) have to follow the normal application procedure while applying for IEC. In addition, permission from RBI/ FIPB is needed in some cases.
Further the following documents are also required for IEC code:
• Board Resolution
• Memorandum of Association
• copy of Passport
• All documents prescribed for Indian Citizen/ company/ Proprietorship firm
For more information, click here.
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Can an Indian company invoice in Indian Rupees? Will such a company be eligible for exports benefits?
As per para 2.52 FTP 2015-20, all export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realized in freely convertible currency. However, export proceeds against specific exports may also be realized in rupees, provided it is through a freely convertible Vostro account of a non resident bank situated in any country other than a member country of Asian Clearing Union (ACU) or Nepal or Bhutan. Additionally, rupee payment through Vostro account must be against payment in free foreign currency by buyer in his non-resident bank account. Free foreign exchange remitted by buyer to his non-resident bank (after deducting bank service charges) on account of this transaction would be taken as export realization under export promotion schemes of FTP.
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Does my product fall under the restricted list of export or import regulations?
The Directorate General of Foreign Trade publishes a general list of restricted imports that can be accessed from this link.
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What are ITC(HS) Codes?
ITC(HS) Code or better known as Indian Trade Classification (Harmonized System) Code was adopted in India for import – export operations. ITC (HS) is a compilation of codes for all merchandise / goods for export/ import. Goods are classified based on their group or sub-group at 2/4/6/8 digits. ITC (HS) is aligned at 6 digit level with international Harmonized System goods nomenclature maintained by World Customs Organization Link. However, India maintains national Harmonized System of goods at 8 digit level which may be viewed through the following Link
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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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