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

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

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

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

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  • Which transaction is classified as “international transaction”?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    For more information, click here.

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

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

     

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

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

    For more information, click here.

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

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

    For more information, click here.

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

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

    For more information, click here.

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  • What is copyright?

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

    For more information, click here.

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  • How can I get copyright registration for my Website?

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

    For more information, click here.

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

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

    • That the design has been previously registered in India.

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

    • The design is not new or original.

    • Design is not registerable.

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

    For more information, click here.

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

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

    For more information, click here.

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

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

    • Ordinarily on sale or intended to be used together

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

    • Same general character

    For more information, click here.

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  • What is design registration in India?

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

    For more information, click here.

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

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

    For more information, click here.

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

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

    For more information, click here.

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

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

    For more information, click here

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  • Are the registered designs open for public inspection?

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

    For more information, click here.

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

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

    For more information, click here.

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

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

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

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

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

    For more information, click here

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

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

    For more information, click here.

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

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

    For more information, click here.

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

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

    For more information, click here.

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  • What are the contents of the Patent Office Journal?

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

    For more information, click here.

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

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

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

    For more information, click here.

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  • What is a Patent?

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

    For more information, click here.

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

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

    For more information, click here.

     

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  • What can be patented?

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

    For more information, click here.

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

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

    For more information, click here.

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

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

    For more information, click here.

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

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

    For further details please access following link.

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  • Are industrial tribunals allowed to fix higher rates under the minimum wages act?

    An Industrial Tribunal adjudicating a dispute relating to wages is not bound by the minimum rates of wages fixed under the Minimum Wages Act and it is open to it to fix wages at rates higher than the rates of minimum wages fixed under the Minimum Wages Act, 1948.

    For more information, click here.

     

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  • When happens when membership falls down after the date of application?

    Application shall not become invalid.

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  • How many labourers are required in any industrial establishment to frame a Works Committee?

    In an industrial establishment wherein one hundred or more workmen are employed or have been employed on any day in the preceding twelve months, the appropriate Government may by general or special order require the employer to constitute a Works Committee in the prescribed manner.

    For more information, click here.

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  • Who is a Child under The Child Labour (Prohibition and Regulation) Act, 1986?

    Child means a person who has not completed 14 years of age.

    For more information, click here.

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  • Can an employee getting wages higher than the minimum wages fixed under the Act claim overtime wages under Section 20(2) of the Act?

    Where an employee gets wages higher than the minimum wages fixed under the Act, he cannot claim any benefit under the Act.


    For further details please access following link.

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  • What is the number of registers to be maintained by establishments exempt from furnishing return under labour laws?

    The Registers required to be maintained by establishments exempt from furnishing return are as under:

    1. registers in Form B, Form C and Form D, in the case of small establishments: and
    2. register in Form E, in the case of very small establishments

    For more information, click here

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  • What is retrenchment under the Industrial Dispute Act, 1947?

    Retrenchment means the termination of employee's service by the employer for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action.

    For more information, click here

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  • What is the fee structure for registration application under the building and construction workers act?

    Registration fee: 

    • Up to 100 building workers: Rs. 100
    • Between 20 to 500 building workers: Rs. 500
    • Above 500 building workers: Rs. 1000

    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 are hostile bids under SEBI takeover code?

    Officially, there is no such term as hostile bid in the regulations. Hostile bid is generally understood to be an unsolicited bid by a person, without any arrangement or MOU with persons currently in control. Any person with or without holding any shares in a target company, can make an offer to acquire shares of a listed company subject to minimum offer size of 26%.

    For more information, click here.

     

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

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

    For more information, click here.

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  • What is a ‘Target Company’?

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

    For more information, click here.

     

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

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

    For more information, click here.

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  • What is National Company Law Tribunal?

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

    For more information, click here.

     

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  • Who is an ‘Acquirer’?

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

    For further details please access following link.

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

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

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

    For more information, click here.

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

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

    For more information, click here

     

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

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

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

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

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  • From where can I take the help of any expert on Income-tax related matters?

    You can take the help of tax professionals or the help of Public Relations Officer [PRO] in the local office of the Income-tax Department. You may also take assistance from Tax Return Preparers [TRPs]. You can locate your nearest TRP at link.

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  • How are exports treated under GST?

    All exports are deemed as inter-state supplies. Exports of goods and services are treated as zero rated supplies. The exporter has the option either to export under bond/Letter of Undertaking without payment of tax and claim refund of ITC or pay Integrated Tax by utilizing ITC or in cash at the time of export and claim refund of Integrated Tax paid.

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  • Do I need to take any precautions while filling the tax payment challan?

    Following caution can be taken while filling-up the tax payment challan:

    Clearly mention the following:

    • Type of payment
    • Assessment year
    • Permanent Account Number
    • mode of payment of the tax
    • the head of payment

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  • Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration?

    Yes, every person shall have a Permanent Account Number issued under the Income Tax Act, 1961 in order to be eligible for grant of registration under GST Law. However, as per PAN is not mandatory for a non-resident taxable person who may be granted registration based on any other document as may be prescribed. 

    For more information, click here.

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  • What does Goods and Service Tax (GST) entail?

    GST is a destination-based tax that replaces the earlier Central taxes and duties such as Excise Duty, Service Tax, Counter Vailing Duty (CVD), Special Additional Duty of Customs (SAD), central charges and cesses and local state taxes, i.e., Value Added Tax (VAT), Central Sales Tax (CST), Octroi, Entry Tax, Purchase Tax, Luxury Tax, Taxes on lottery, betting and gambling, state cesses and surcharges and Entertainment tax (other than the tax levied by the local bodies).

    For more information, click here

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  • What are the consequential tax implications where an assignee attains an ordinary resident tax status in India during the relevant tax year?

    The global income of such ordinary resident would become taxable in India. Additionally, such resident would be required to report moveable and immoveable assets held overseas along with any other financial interest or signing authority abroad and trusteeship in offshore trusts in his/her tax return.

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  • What are the expected key benefits of amendments in the Indian Stamp Act, 1899?

    The amendments in the Indian Stamp Act, 1899 and Rules made thereunder will facilitate ease of doing business and will bring in uniformity and affordability of the stamp duty on securities across States and thereby build a pan-India securities market. Further, cost of collection would be minimised while revenue productivity is enhanced. Further, this system will help develop equity markets and equity culture across the length and breadth of the country, ushering in balanced regional development.

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

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  • Who will collect the stamp duty in case of private placements/ e-IPOs through Stock Exchange platform?

    As per section 9A(1)(c), stamp duty shall be collected by the Depository on any creation or change in the records of a Depository, pursuant to issue of securities. This should be followed even in case of private placements/ e-IPOs through stock exchange platform.

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

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  • What is the meaning of presumptive taxation scheme?

    As per sections 44AA of the Income-tax Act, 1961, a person engaged in business is required to maintain regular books of account under certain circumstances. To give relief to small taxpayers from this tedious work, the Income-tax Act has framed the presumptive taxation scheme under sections 44AD, sections 44ADA and sections 44AE.

    A person adopting the presumptive taxation scheme can declare income at a prescribed rate and, in turn, is relieved from tedious job of maintenance of books of account.

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  • What are the due dates for filing a tax return in India?

    For corporate taxpayers who are required to furnish the Transfer Pricing Certificate for reporting international transactions and specified domestic transactions: 30 November of the subsequent year

    Other corporate taxpayers: 30 September of the subsequent year

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  • What are the different kinds of duties of custom levied on imported goods?

    Different kinds of duties of customs levied on imported goods are

    (i) Basic Customs Duty

    (ii) Additional levies like Countervailing duty, Anti dumping duty, safe guard duty etc.

    In addition, cess duty is leviable on certain goods.

    Section 12 of the Customs Act, 1962 authorises the Customs Officers to levy and collect these duties.

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  • Importer Exporter Code (IEC) is mandatory in which cases?

    Any bona fide person/ company starting a venture for International trade or any foreign transfers on account of business, IEC number is mandatory.

    For more information, click here.

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  • What is the validity of an import authorization?

    Validity period of Import / Export Authorisations varies from 12 months to 24 months, depending on type or authorisation and Items. However, DGFT may decide to issue specific authorisation/ class of authorisations for a longer/shorter validity period. For details you may refer para 2.16 of the document : Link

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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?

    IEC Stands for Importer Exporter Code.

    For more information, click here.

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  • 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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  • Does mapping of civil court case data with survey number or property identification number, fall under the purview of the State Government as this data is with Hon’ble Supreme Court for all the States/UTs?

    The State should coordinate with their respective High Courts and in case of any concern, DIPP shall discuss the same with the D/o Justice.

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  • Whether State can exempt any Act under which returns are not to be filed?

    The State may exclude the Act(s) under which there is no requirement to file return. However, the State should submit necessary evidence for nonapplicability of the reform point.

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  • What are “links to online application forms” that have to be provided in the Information Wizards?

    The link should be provided for the Single Window System or the online portal where the applicant can apply for the permission against which it is listed.

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  • With reference to this reform please clarify the applicability of ‘’Provision of risk-based classification of Buildings’’ clause for Lifts and electrical installations.

    The reform does not refer to lift and escalator installation

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  • State/UT might require applicants to submit fewer documents to process application for electricity connections than mandated under BRAP 2019. Will reform be approved?

    The reform requires States/UTs to reduce the document required to obtain electricity connection to the following:

    1. Proof of identity of the user
    2. Proof of ownership/occupancy (in case of owned/leased premise)
    3. Authorization document (in case of firm or company) In case the State/UT chooses to further reduce this list, the reform will be approved provided other criteria for approval for this reform are met.

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  • Which are the incentives that are covered under this reform?

    The reform only refers to the incentives provided by the State Government.

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  • What is meant by legally sanctioned Master plans/ Zonal plans/ land use plans?

    The plan must have been adopted by the ULB/ relevant Department in the State and must not be in a draft or consultation stage.

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  • Under what provisions can the Appellate Authority for Advance Ruling be constituted?

    The Appellate Authority for Advance Ruling is constituted under the relevant provisions of the State/UT GST Act. For example the provisions for constitution of Appellate Authority for Advance Ruling are mentioned under Punjab Goods and Services Tax Act 2017, Chapter XVII on ‘Advance Ruling’, Section 99.

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  • What is meant by the term “verification” used in Reform point 4-sub point i.e. “Eliminate physical touch-point for document submission and verification”

    The Reform Point pertains to elimination of physical touch-point at the time of the routine scrutiny and verifying the sanctity of documents, done by the Departments after receipt of an application.

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  • Whether the authorization of BOE is required to be introduced for both registration & renewal of boilers or only for renewal of boilers as unregistered boilers cannot be in use?

    Authorization of Boiler Operation Engineer is required to be introduced only for renewal of boilers.

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