• What are the different types of methods which can be applied for computing arm's length price?

    As per Section 92C of the Income - tax Act, 1961, the following methods can be used for computing arm's length price: 
    a) Comparable Uncontrolled Price (CUP) Method 
    b) Resale Price Method (RPM) 
    c) Cost Plus Method (CPM) 
    d) Profit Split Method (PSM) 
    e) Transactional Net Margin Method (TNMM) 
    f) Any Other Method

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  • Is there a requirement for a fresh benchmarking analysis every year vs roll-forward/ update of the financials?

    A fresh benchmarking search needs to be conducted every year. According to Rule 10D(4), “The information and documents specified under [sub-rules (1), (2) and (2A)], should, as far as possible, be contemporaneous and should exist latest by the specified date referred to in clause (iv) of section 92F.”

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  • When are the taxpayers required to prepare Transfer Pricing (TP) Documentation as per Rule 10D of the Income - tax Rules, 1962?

    Taxpayers indulging in any international or specified domestic transactions are required to maintain a set of documents specified in Rule 10D of the Income - tax Rules, 1962. The transfer pricing documentation shall be required if the value of international transactions exceeds INR 1 crore and specified domestic transactions exceed INR 20 crore in a financial year.

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  • Is there a statutory deadline for submission of transfer pricing documentation?

    An accountant’s report in Form 3CEB must be furnished along with the Income Tax Return, i.e., (on or before 30 November following the end of the financial year under consideration). With respect to the transfer pricing documentation, the taxpayer is required to maintain the same before furnishing Form 3CEB. However, there is no requirement of furnishing the transfer pricing documentation along with accountant’s report/Form 3CEB at the time of filing tax return.

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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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  • What does Intellectual Property entail?

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

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

    For more information, click here.

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

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

    For further details please access following link.

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

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

    For more information, click here.

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  • 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.

    For more information, click here.

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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.

    For more information, click here.

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  • What is the duration of the registration of a design? Can it be extended?(Under The Design Act 2000)

    The duration of the registration of a design is initially ten years from the date of registration, but in cases where claim to priority has been allowed the duration is ten years from the priority date. This initial period may be extended by 5 years on an application made in Form-3 accompanied by prescribed fees to the Controller before the expiry of the said initial period of ten years. The proprietor of a design may make application for such extension even as soon as the design is registered.

    For more information, click here.

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  • What does the property mark indicate as per Indian laws?

    As per the Indian Penal Code, Sec. 479, a mark used for denoting that movable property belongs to a particular person is called a property mark. It means that marking any movable property or goods, or any case, package or receptacle containing goods; or using any case, package or receptacle, with any mark thereon. For example: The mark used by the Indian Railway on their goods may be termed as a Property Mark for easy identification of the owner.

    For more information, click here.

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  • Can the name and address of proprietor be changed in the design register?

    Name and address of the registered proprietor, or address for service can be altered in the register of designs provided this alteration is not made by way of change of ownership through conveyance i.e. deed of assignment, transmission, licence agreement or by any operation of law. Application in form-22 with prescribed fee should be filed to the Controller of Designs with all necessary documents in support of the application as required.

    For more information, click here

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  • What is the effect of registration of design?

    The registration of a design confers upon the registered proprietor ‘Copyright’ in the design for the period of registration. ‘Copyright’ means the exclusive right to apply a design to the article belonging to the class in which it is registered.

    For more information, click here.

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  • What is meant by classification of goods mentioned in the Third Schedule of a design?

    The applications for registration of designs applied to articles are classified according to the Third Schedule of Designs Rules, 2001 for its classification. This is mainly based on the International Classification System for Industrial Designs known as Locarno Classification. Only one class number is to be mentioned in one particular application which is mandatory under the Rules. This classification has been made on the basis of Articles on which the design is applied.

    Subsequent application by the same proprietor for registration of same or similar design applied to any article of the same class is possible, but period of registration will be valid only up to period of previous registration of same design.

    For more information, click here.

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  • How can the lapsed design be restored owing to non-payment of extension within the stipulated time?

    A registration of design will cease to be effective on non-payment of extension fee for further term of five years if the same is not paid before the expiry of original period of 10 years. However, lapsed designs may be restored provided the following conditions are satisfied:

    • Application for restoration in Form-4 with prescribed fees is filed within one year from the date of lapse stating the ground for such non-payment of extension fee with sufficient reasons
    • If the application for restoration is allowed the proprietor is required to pay the prescribed extension fee and requisite additional fee and finally the lapsed registration is restored

    For more information, click here 

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  • When does the applicant for Registration of Design get the registration certificate?

    When an application for registration of a Design is in order, it is accepted and registered and then a certificate of registration is issued to the applicant. However, a separate request should be made to the Controller for obtaining a certified copy of the certificate for legal proceeding with requisite fee.

    For more information, click here.

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  • What is a Register of Designs under the Designs Act of 2000?

    The Register of Designs is a document maintained by The Patent Office, Kolkata as a statutory requirement. It contains the design number, class number, date of filing (in this country) and reciprocity date (if any), name and address of Proprietor and such other matters as would affect the validity of proprietorship of the design and it is open for public inspection on payment of prescribed fee & extract from register may also be obtained on request with the prescribed fee. For further details please access following.

    For more information, click here.

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  • What is meant by priority claim under the Designs Act, 2000?

    India is one of the countries party to the Paris Convention so the provisions for the right of priority are applicable. On the basis of a regular first application filed in one of the contracting state, the applicant may within the six months apply for protection in other contracting states, latter application will be regarded as if it had been filed on the same day as the first application.

    For more information, click here.

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  • Can stamps. Labels, tokens, cards be considered an article for the purpose of registration of Design?

    No. Because once the alleged Design i.e., ornamentation is removed only a piece of paper, metal or like material remains and the article referred ceases to exist. Article must have its existence independent of the Designs applied to it.

    For more information, click here.

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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.

    For more information, click here.

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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.

    For more information, click here.

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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

    For more information, click here.

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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.

    For more information, click here.

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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.

    For more information, click here.

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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.

    For more information, click here.

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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.

    For more information, click here.

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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.

    For more information, click here.

     

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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.

    For more information, click here.

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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.

    For more information, click here.

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

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


    For further details please access following link.

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

    The maximum number of workers are Ten.

    For more information, click here.

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

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

    For more information, click here.

     

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

    Payment can be made online through shram Suvidha Portal.

    For more information,click here.

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

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


    For further details please access following link.

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

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

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

    For more information, click here.

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

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

    • Small Establishment
    • Very Small Establishment

    For more information, click here

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

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

    For more information, click here.

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

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


    For further details please access following link.

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

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

    For more information, click here.

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

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

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

    For more information, click here.

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

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

    For more information, click here

     

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

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

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

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

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

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

    For more information, click here.

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  • What is the way in which maximum permissible non-public shareholding has been derived?

    Maximum permissible non-public shareholding is derived based on the minimum public shareholding requirement under the Securities Contracts (Regulations) Rules 1957 (SCRR). Rule 19A of SCRR requires all listed companies (other than public sector companies) to maintain public shareholding of at least 25% of share capital of the company. Thus, by deduction, the maximum number of shares which can be held by promoters i.e. maximum permissible non-public shareholding in a listed company (other than public sector companies) is 75% of the share capital.

    For more information, click here.

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  • What does the term combination mean under mergers and acquisitions?

    Any Merger or Amalgamation that meets the below threshold limits is considered as combination:

    1. Enterprise Level
      1. India : Assets > Rs 2,000 cr. Or Turnover > Rs. 6,000 Cr
      2. Worldwide (India component) : Assets > $ 1Bn with Rs. 1000 cr in India Or Turnover > $ 3Bn with Rs. 3,000 Cr in India
    2. Group Level
      1. India: Assets > Rs 8,000 cr. Or Turnover > Rs. 24,000 Cr
      2. Worldwide (India Component): Assets > $ 4Bn with Rs. 1000 cr in India Or Turnover > $ 12Bn with Rs. 3,000 Cr in India

                For more information, click here.  

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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.

    For more information, click here.

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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.

    For more information, click here.

     

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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 types of audit required under company law in India?

    Following types of audits are contemplated under company law:

    • Statutory audit: Conducted in order to report the state of a company’s finances and accounts to the Indian government. Such audits are performed by qualified Chartered Accountants who are working as external and independent parties
    • Internal audit: Conducted at the bequest of internal management in order to check the health of a company’s finances and analyze the operational efficiency of the organization. However, internal audit is also mandatory for company satisfying the prescribed threshold

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  • What is a deemed international transaction?

    A transaction entered into by an enterprise with a person other than an associated enterprise shall be deemed to be an international transaction entered into between two associated enterprises, if:

    • There exists a prior agreement in relation to the relevant transaction between such other person and the associated enterprise
    • The terms of the relevant transaction are determined in substance between such other person and the associated enterprise where the enterprise or the associated enterprise or both of them are non-residents irrespective of whether such other person is a non-resident or not

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  • What is tax residency under Income Tax Act in India?

    According to Section 6, Income-tax Act, 1961-2019:

    1.An individual is said to be resident in India in any previous year, if he—

    • is in India in that year for a period or periods amounting in all to one hundred and eighty-two days or more; or
    • having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days or more in that year 2.

    2. A Hindu undivided family, firm or other association of persons is said to be resident in India in any previous year in every case except where during that year the control and management of its affairs is situated wholly outside India

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  • How can a taxpayer lodge the particulars of their income with the tax authorities in India?

    The particulars of income during the relevant tax period can be furnished to the Indian tax authorities by electronically lodging a tax return at the income tax web portal. The summary of relevant steps is as follows:

    • Signing up/registering at the income tax web portal using PAN and other validation details
    • Obtaining Digital Signature Certificate (DSC) for the directors/authorized representatives (who shall verify and sign on behalf of WOS/ Chinese corporation) for e-filing the tax return
    • Filing of tax audit certificate, transfer pricing certificate, etc. (wherever applicable)
    • Paying taxes, if any
    • Filing tax return by selecting appropriate tax return and tax year by affixing DSC at the income tax web portal

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  • What are the major direct taxes in India?

    Major direct taxes in India are:

    1. Income Tax
    2. Wealth Tax
    3. Corporation Tax

    For more information, click here 

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  • What if collecting agents fails to transfer the duty to the State Government within the time period specified in the Stamp Act and Rules made thereunder?

    The collecting agents have to transfer collected stamp duty to the State Government within three weeks of the end of each month. Any collecting agent who fails to collect the stamp duty or fails to transfer stamp duty to the State Government within fifteen days of the expiry of the time specified, shall be punishable with fine which shall not be less than INR 1,00,000, but which may extend up to 1% of the collection or transfer so defaulted.

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

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  • What are the payments to be made in GST regime, who is liable for payment and when is the payment to be made?

    In the GST regime, for any intra-state supply, taxes to be paid are the Central GST (CGST, going into the account of the Central Government) and the State GST (SGST, going into the account of the concerned State Government). For any inter-state supply, tax to be paid is Integrated GST (IGST) which will have components of both CGST and SGST. In addition, certain categories of registered persons will be required to pay to the government account Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). In addition, wherever applicable, Interest, Penalty, Fees and any other payment will also be required to be made. In general the supplier of goods or service is liable to pay GST. However in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism. Further, in some cases, the liability to pay is on the third person (say in the case of e-commerce operator responsible for TCS or Government Department responsible for TDS) At the time of supply of Goods as explained in Section 12 and at the time of supply of services as explained in Section 13. The time is generally the earliest of one of the three events, namely receiving payment, issuance of invoice or completion of supply. Different situations envisaged and different tax points have been explained in the aforesaid sections.

    For further details please access following link.

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  • What incomes are taxable under the Income Tax Act?

    Following forms of incomes are taxable for residents, not ordinarily residents and non-residents:
     1) Income which accrues or arises in India.
     2) Income which is deemed to accrue or arise in India.
     3) Income which is received in India.
     4) Income which is deemed to be received in India. Taxed for

    Incomes taxable for residents and not ordinarily residents but not non-residents:
     1) Income accruing outside India from a business controlled from India or from a profession set up in India.
     2) Taxed for ROR but not RNOR, NR.
     3) Income other than above (i.e., income which has no relation with India).

    For more information, click here.

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  • Is there a mechanism whereby the recipient of services may be liable to pay GST under reverse charge?

    Yes, there is a mechanism of reverse charge under the GST regime whereby the liability to pay tax is on the recipient of supply of goods and services instead of the supplier of such goods or services. Reverse charge is mostly triggered when a person imports services, receives supply of goods or services from an unregistered vendor and in respect of other notified categories of supply

    For example, if a Chinese company enters into a contract for supply of services to a registered taxable person in India say its Indian subsidiary, then the onus of discharging the GST liability would be casted upon the Indian subsidiary.

    However, in case of unrelated party contracts say government contracts, the bids/contracts preclude the customer from undertaking the GST liability and requires the same to be reimbursed once the GST liability is paid by the customer. In such cases, the GST liability may become cost in the hands of the Chinese company and further there maybe no option of obtaining credit of the said GST paid.

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  • What is meant by Alternate Reporting Entity?

    Alternate Reporting Entity means any constituent entity of the international group that has been designated by such group, in the place of the parent entity, to furnish the report of the nature referred to in Section 286(2) of the Act in the country or territory in which the said constituent entity is resident on behalf of such group.

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  • Does the RBI provide refinance to banks on providing export?

    As announced in the Sixth Bi-Monthly Monetary Policy Statement, 2014-15 dated February 3, 2015, it has been decided to merge the Export Credit Refinance (ECR) facility with the system level liquidity provision with effect from the fortnight beginning on February 7, 2015. Accordingly, no new refinancing under the ECR will be available after February 6, 2015 and the refinancing availed up to February 6, 2015 may continue till its maturity.

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  • Can an IEC number be modified?

    Yes, Modifications in IEC number are  applied online in ANF 2A.

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

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

    For more. go to link.

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

    Few categories are exempted from IEC, such as:

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

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

    For more information, click here

     

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

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

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

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

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

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

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  • How can EOUs get star status?

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

    (1) One Star Export House -3 million $

    (2) Two Star Export House – 25 million $

    (3) Three Star Export House - 100 million $

    (4) Four Star Export House -500 million $

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

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

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

    For more information, click here.

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

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

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  • 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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  • What is meant by “specific permissions from the respective Head of Department”?

    The permission for every surprise inspection or inspection based on complaints must be taken from the officer who heads the Department within the State/UT.

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  • What should be the notification process for an investor who has applied for multiple approvals?

    In case where an investor has applied for multiple permits/ NOCs/ approvals, the investor shall be notified as and when each approval is accorded, without waiting for other approvals.

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  • Are the States allowed to relax criteria for hiring of BOE?

    No.

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