• PLI
    Production Linked Incentives Schemes in India
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  • Is the import of raw material without BCD and IGST allowed? Will there be any interest obligation if IGST is paid when finished goods are sold in domestic markets?

    Inputs/raw materials can be imported and deposited in the licensed warehouse without payment of BCD and IGST. No interest liability arises when the duties are paid at the time of ex-bonding the resultant goods. The duties (without any interest) are to be paid only when the resultant goods are being cleared for home consumption.

    Refer to the Bonded Manufacturing microsite for more details.

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  • Would it be mandatory to appoint a warehouse keeper in the factory licensed under Section 65 of the Customs Act? Would all goods cleared from the said factory be subject to inspection by the warehouse keeper/ Customs authorities?

    A warehouse keeper has to be appointed, for a premise to be licensed as a private warehouse under Section 58 of the Customs Act. The warehouse keeper is expected to discharge duties and responsibilities, maintain accounts and also sign the documents, on behalf of the licensee. The warehouse keeper is expected to supervise and satisfy himself about the veracity of the declaration/accounts that he is signing. The inspection of goods by customs at the stage of ex-bonding would be done, only if there is indication of risks and not as a matter of routine practice. Approval of the bond officer is not required for clearance of the goods from the warehouse.

    Refer to the Bonded Manufacturing microsite for more details.

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  • How frequently is an audit of a unit operating under Section 65 of Customs Act, 1962 expected?

    The audit of units operating under Section 65 would also be based on risk criteria. There is no prescribed frequency for such audit.

    Refer to the Bonded Manufacturing microsite for more details.

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  • What is the customs document/ form for movement of imported goods on which duty has been deferred to/ from a unit undertaking manufacture and other operations in a bonded warehouse? Are such goods required to be under customs escort during their movement?

    Following are the customs document for movement of imported goods on which duty has been deferred to/ from a unit undertaking manufacture and other operations in a bonded warehouse:

    • Customs Station to Section 65 unit: Bill of entry for warehousing. It is clarified that no separate form is prescribed for movement from Customs station to Section 65 unit as the goods are already accompanied by the Bill of entry for warehousing.
    • From another warehouse (non-Section 65) to a Section 65 Unit: Form for transfer of goods from a warehouse as prescribed under the Warehoused Goods (Removal) Regulations, 2016. This is because warehouse which is not a Section 65 unit has to follow the Warehoused Goods (Removal) Regulations, 2016.
    • From Section 65 Unit to another warehouse (the other warehouse can be a Section 65 unit or a non-Section 65 warehouse): Form prescribed in Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019.

    The goods will not be under customs escort during movement.

    Refer to the Bonded Manufacturing microsite for more details.

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  • If the imported capital goods are cleared for home consumption after use, is depreciation available?

    No. Depreciation is not available if imported capital goods (on which duty has been deferred) are cleared for home consumption after use in a Section 65 unit.

    Refer to the Bonded Manufacturing microsite for more details.

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  • If the imported capital goods are cleared for export after use, is depreciation available?

    The imported capital goods (on which duty has been deferred) after use in a Section 65 unit can be exported without payment of duty as per Section 69 of the Customs Act. For the purposes of valuation of the export goods, the same will be as per the Section 14 of the Customs Act read with the Customs Valuation (Determination of Value of Export Goods) Rules 2007.

    Refer to the Bonded Manufacturing microsite for more details.

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  • Can all export benefits under FTP and Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (IGCR) be taken in Bonded warehouse simultaneously?

    The eligibility to export benefits under FTP or IGCR would depend upon the respective scheme. If the scheme allows, unit operating under Section 65 has no impact on the eligibility. In other words, a unit operating under Section 65 can avail any other benefit, if the benefit scheme allows.

    Refer to the Bonded Manufacturing microsite for more details.

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  • What will be the method of inventory control method in Section 65 units? Whether First in First Out (FIFO) method can be followed?

    The Generally Accepted Accounting Principles will be followed for inventory control in a Section 65 unit. Thus FIFO method can be followed.

    Refer to the Bonded Manufacturing microsite for more details.

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  • What is the procedure and documentation requirements for re-entry of manufactured goods, returned by the customers for repair, in the premises?

    Once the goods are cleared from the warehouse, they will no longer be treated as warehoused goods. Thus if the resultant goods cleared from the warehouse are returned by the customer for repair, they will be entered as DTA receipts (this is provided in the accounting form). After repair, when the same is cleared from the warehouse, the same will be entered in the prescribed accounting form. If the goods were exported and subsequently rejected or sent back for repair by the customer, then the goods upon re-import have to be entered as Imports receipts in the accounting form. The relevant customs notification for re-imports has to be followed while filing the Bill of Entry for re-import of the goods.

    Refer to the Bonded Manufacturing microsite for more details.

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  • What is the procedure for the surrender of licence for a Section 65 unit?

    Since the unit operating under Section 65 is also licensed as a Private Bonded warehouse under Section 58 of the Customs Act, the procedure for surrender of licence will be as per the regulation 8 of the Private Warehouse Licensing Regulations, 2016. A licensee may therefore, surrender the licence granted to him by making a request in writing to the Principal Commissioner of Customs or Commissioner of Customs, as the case may be. On receipt of such request, the licence will be cancelled subject to payment of all dues and clearance of remaining goods in such warehouse.

    Refer to the Bonded Manufacturing microsite for more details.

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  • Are individuals on visa subject to pay imposes in India?

    An expatriate staying in India and not a citizen is liable to pay tax on any income earned by him or her in India, irrespective of the nature of work or the country of citizenship of the expatriate.

    If income of the expatriate is taxable in India as well as in his or her country of origin, the expatriate can seek benefit of the Double Tax Avoidance Agreement (DTAA) signed between India and several other countries to avoid paying double taxes on such income.

    For more information, click here

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  • Can a foreign national holding ‘E’ visa coming for honorary work draw a salary?

    A foreign national coming as a volunteer for honorary work with the NGOs registered in the country, may be paid an honorarium up-to a ceiling of INR 10,000 per month ($ 154 per month, subject to exchange rate fluctuations). 

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  • Can the employer be changed post arrival in India in case of employment visa?

    Yes, a foreign national is permitted to change employment between a registered holding company and its subsidiaries. Further, such a change is also permissible between joint ventures and Consortiums after obtaining prior approval from the Ministry of Home Affairs.

    For more information, click here.

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  • I committed an error while topping off the online application. Is it conceivable to make redresses on the web?

    The online application form for e-visa cannot be edited once it has been submitted. The applicant must verify all the information entered before submitting the application and taking printout. In case of an error, the applicant must file a new form online.

    For more information, click here

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  • Is it possible to apply for an Indian visa at the airport?

    No, it is not possible to apply for an India visa at the airport. Eligible citizens traveling for leisure/tourism purposes have the option to apply for an Indian e-visa online, before they depart for India. Once the visa is granted, citizens will have to get biometric information taken at the airport and the visa stamped on the passport on arrival in India.

    For more information, click here

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  • Do I need a visa to change flights/airport terminals in India?

    You need to apply for a Transit Visa if you are going to change from the International Terminal to the Domestic Terminal of any Indian Airport or if you are going to stay in an airport hotel even for a few hours. In case you remain within limits of the waiting area reserved for International Transit Passengers of the Indian Airport and are not going to cross Immigration Controls at any time, you do not need a transit visa.

    Please note: the maximum period of stay in India permitted for a Transit Visa is 72 hours/3 days for each entry and is issued only when Transit/Travel is by Air. The Transit Visa is valid for 15 days only.

    For more information, click here

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  • Do I need a visa to go to India?

    Yes, all foreigners except for nationals of Nepal, Bhutan and Maldives, need a visa to enter India. With regard to Maldives' nationals, a visa is required if intended stay in India would be longer than 90 days. Nationals of Nepal would need a visa , if they enter India via China. A citizen of Bhutan entering India by land or air does not require passport or visa for entry into India, unless entering India from a place other than Bhutan. In that case, passport is must. However, he/she must have a passport and visa for India if he/she is entering in India from China. For diplomatic and official passport holders, many nationalities are exempted from the Indian Visa.

    The detailed list can be accessed at link.

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  • How long will my application for Indian Visa be available online?

    You can print your Visa Application Form within 30 calendar days of completing it online. To access your completed online application, you are required to note your Web Reference number before you exit. An Email with this information will also be sent to your valid email ID, if provided. . If your application is not submitted for processing within this time, the information will be purged out/deleted from the system and you will need to commence enter your details afresh.

    Visa Fees will not be refunded in this situation.

    For more information, click here

     

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  • What is the processing time for Indian Visa?

    If applying for Visa other than the tourist visa, it is recommended that you apply 3 to 4 weeks before your travel date.

    For Tourist visa (eTA), upon receipt of the Visa Application through Indian Visa Application Center or directly, the Indian Mission/ Post requires a minimum of three working days to process the case and issue a visa depending upon the nationality and excluding special cases.

    For more information, click here

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  • What is the eligibility criteria for e-Visa in India?

    e-Visa is granted to a foreigner whose sole objective of visiting India is recreation, sight-seeing, casual visit to meet friends or relatives, attending a short term yoga programme, medical treatment including treatment under Indian systems of medicine and business purpose and no other purpose/ activity.

    For more information, click here

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  • Which form has to be filed in case of voluntary conversion of One Person Company?

    Form INC-6 has to be filed within 30 days of voluntary conversion of One-Person Company after two years of its incorporation and within six months of mandatory conversion (in case paid up share capital of an One-Person Company exceeds INR50 lakhs or its average annual turnover).

    For more information, click here.

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  • Whether the name of a Limited Liability Partnership can end with words like ‘Limited' or ‘Pvt. Limited'?

    No, the name of an LLP cannot end with words such as ‘Limited’ or ‘Pvt. Limited’. Name of an LLP shall end with either ‘Limited Liability Partnership’ or ‘LLP’. The word ‘limited’ shall be allowed in name only within ‘Limited Liability Partnership’.

    For more information, click here.

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  • Is it mandatory to appoint a Resident Director in a Company?

    Yes, there is a mandatory requirement to appoint at least One (01) Resident Director in a Company. Section 149(3) of the Companies Act. 2013 (“The Act”) states that every Company should have at least one Director who has stayed in India for a total period of not less than 182 days in the Financial Year.

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  • What should be the quorum of an AGM (Annual General Meeting) of Indian subsidiary?

    Quorum for the AGM of an Indian subsidiary is two members personally present. In case of corporate shareholders, the respective shareholders would be required to authorize two different individuals to represent them in the AGM. Representation letters supported by the board resolutions would be required to be maintained in this regard

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  • What are the key prerequisites for setting up of an unlisted public limited company in India?

    The key prerequisites for setting up an unlisted public limited company are the following: 

    • Minimum three directors – mandatory one resident director but not required to be a citizen of India
    • Minimum seven shareholders – shareholders may be either corporates or individuals  
    • No minimum capital threshold, should have at least seven shares, if the proposed company will be limited by shares
    • Physical space to be identified as a registered office

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  • How can the name be reserved prior to registration of company ?

    For reservation of a name prior to filing SPICe (INC-32),you can use RUN facility provided by MCA for reservation of name.
    For further details please access following link.

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  • Which act governs Company formation and operations?

    Ministry of Corporate Affairs via Companies Act 2013 regulates incorporation of the company, responsibilities of a company, directors, dissolution of a company.

    For more information, click here.

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  • What are the implications of establishment of PE (Permanent Establishment) in India, on the expats?

    The assignees would be denied the benefit of short stay exemption under tax treaty as their salary expenditure would be deemed as deduction claimed by the foreign entity. Thus, the salary income earned by expats would become taxable in India.

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  • Can an existing partnership firm be converted to LLP?

    Yes, an existing partnership firm can be converted into LLP by complying with the Provisions of the LLP Act. Form 17 (MCA Form) needs to be filed along with Form 2 (MCA Form) for such conversion and incorporation of LLP.

    For more information, click here.

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  • Can we enter the conditions of private company as required under Section 5 of the Companies, Act, 2013 in SPICe AoA(INC-34)?

    Yes, SPICe AoA (INC-34) has facility for adding, modifying, and deleting Articles.
    For further details please access following link.

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  • Are the investments and profits earned in India repatriable?

    All foreign investments are repatriable (net of applicable taxes) except in cases where the investment is made or held on non-repatriation basis.

    For more information, click here.

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  • What is Indirect Foreign Investment?

    If the investor company is not owned or controlled by resident Indian citizens, or is owned or controlled by persons resident outside India, then such investment is termed as “Indirect Foreign Investment” for the investee company.

    For more information, click here.

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  • What are the various reporting formalities for foreign investments?

    The reporting requirements for foreign investments under Form Single Master Form (SMF) includes, inter alia:

    • Form FC-GPR: Issuance of capital instruments
    • Form FC-TRS: Transfer of capital instruments
    • Form LLP – I: Receipt of consideration by Limited Liability Partnership (LLP) for capital contribution and profit shares
    • Form LLP – 2: Disinvestment or transfer of capital contribution and profit shares in an LLP
    • Form CN: Issue or transfer of convertible notes
    • Form ESOP: Issue of employee stock options, sweat equity shares to a person resident outside India
    • Form InVi: Reporting foreign inflows in an investment vehicle
    • Form DI: Reporting of downstream investment
    • Form DRR: Issue or transfer of depository receipts
    • The detailed reporting requirements are laid down in the Master Direction on Reporting under Foreign Exchange Management Act, 1998.

    For more information, click here 

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  • What are the permitted activities if I want to set up a Branch office in India?

    Companies incorporated outside India and engaged in manufacturing or trading activities are allowed to set up Branch Offices in India with specific approval of the Reserve Bank. Such Branch Offices are permitted to represent the parent / group companies and undertake the following activities in India:

    i. Export / Import of goods

    ii. Rendering professional or consultancy services

    iii. Carrying out research work, in areas in which the parent company is engaged

    iv. Promoting technical or financial collaborations between Indian companies and parent or overseas group company

    v. Representing the parent company in India and acting as buying / selling agent in India

    vi. Rendering services in information technology and development of software in India

    vii. Rendering technical support to the products supplied by parent/group companies

    viii. Foreign airline / shipping company.

    Profits earned by the Branch Offices are freely remittable from India, subject to payment of applicable taxes.

    For more information, click here

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  • How is IDR holder informed about the duration of fungibility window?

    IDR holders can look for such announcements made by the company in leading English and Hindi national daily newspapers with wide circulation as well as the websites of the stock exchanges.

    For more information, click here

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  • What is to be done after the investment is made under the Automatic Route or with Government approval?

    On receipt of the foreign direct investment (FDI), the Indian company receiving the investment for issuing shares/ debentures should report the details to the Regional Office concerned of the Reserve Bank of India (RBI) within 30 days from the date of receipt in the Advance Reporting Form in Section 1, Annexure 6

    Steps for reporting of investment varies for shares, depository receipts and other instruments.

    To know more about the detailed process of reporting, refer to section 2, Annexure 6 of the Consolidated FDI Policy, 2017.

    For more information, click here

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  • How is India-Bangladesh trade relationship?

    India and Bangladesh signed their first trade agreement in 1972 and have engaged in multiple trade arrangements whenever the two countries recognise any opportunity in terms of comparative advantage. India has 'revealed comparative advantages' in many products that Bangladesh needs. Bangladesh has been provided duty free quota free access by India on all tariff lines except tobacco and alcohol under SAFTA. India’s exports to Bangladesh for the year 2017-18 (April to March) stood at US $ 8.46 billion and imports from Bangladesh during the financial year 2017-18 stood at US $ 0.68 billion.

     

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  • What are the legislatures governing IDRs?

    Central Government notified the Companies (Issue of Indian Depository Receipts) Rules, 2004 (IDR Rules) pursuant to the section 605 A of the Companies Act. SEBI issued guidelines for disclosure with respect to IDRs and notified the model listing agreement to be entered between Stock Exchange and the foreign issuer specifying continuous listing requirements.

    For more information, click here.

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  • How to commence business in India?

    A foreign investor can commence business in India as:

    1. Indian Company
    2. Foreign Company
    3. Limited Liability Partnership

    For more information, click here

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  • What are the requirements for investing in IDRs?

    Following are some of the requirements for investing in IDRs:

    • IDRs can be purchased by any person who is resident in India as defined under FEMA
    • Minimum application amount in an IDR issue shall be INR. 20,000
    • Investments by Indian companies in IDRs shall not exceed the investment limits, if any, prescribed for them under applicable laws
    • In every issue of IDR -
      • At least 50% of the IDRs issued shall be subscribed to by QIBs;
      • The balance 50% shall be available for subscription by no institutional and retail

    For more information, click here

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  • In what classifications can a candidate look for enrolment as an AIF?

    Applicants can seek registration as an AIF in one of the following categories, and in sub-categories thereof, as may be applicable

    • Category I AIF: 
      • Venture capital funds (Including Angel Funds) 
      • SME Funds
      • Social Venture Funds
      • Infrastructure funds
    • Category II AIF 
    • Category III AIF

    For more information, click here.

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  • What are Category II AIFs?

    Alternative Investment Funds (AIF) which do not fall in Category I and III and which do not undertake borrowing other than to meet day-to-day operational requirements and as permitted in the SEBI (Alternative Investment Funds) Regulations, 2012 are Category II AIF.

    Various types of funds such as real estate funds, private equity funds, funds for distressed assets, etc. are registered as Category II AIF.

    For more information, click here

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  • In which authoritative documents can an Alternative Investment Fund be set up?

    An alternative investment fund (AIF) under the SEBI (Alternative Investment Funds) Regulations, 2012 can be established or incorporated in the form of a trust or a company or a limited liability partnership or a body corporate.

    For more information, click here

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  • What are Category I AIFs?

    Category I of the Alternative Investment Funds (AIF) include funds which invest in start-up, early stage ventures, social ventures, small & medium enterprises (SME), infrastructure or other sectors or areas which the Government or regulators consider as socially or economically desirable.

    It shall include venture capital funds, SME funds, social venture funds, infrastructure funds and such other AIF.

    For more information, click here

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  • What is the upper limit for investors under Alternative Investment Fund (AIF)?

    No scheme of Alternative Investment Fund (AIF) shall have more than 1,000 investors, subject to the provisions of the Companies Act, 1956 if the AIF is formed as a company.

    For more information, click here

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  • How can the investors redress their complaints against Alternative Investment Funds (AIFs)?

    SEBI has a web-based centralized grievance redress system called SEBI Complaint Redress System (SCORES) where investors can lodge their complaints against AIFs.

    For more information, click here.

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  • What is the system of getting enlistment as an Alternative Investment Fund from Securities and Exchange Board of India?

    To get enlisted as an AIF from SEBI, the applicant shall make an application in Form A as provided in the SEBI (Alternative Investment Funds) Regulations, 2012 along with necessary supporting documents.

    Application fees of INR 1,00,000/- must be paid along with the application to SEBI.

    On receipt of approval from SEBI, Registration/re registration fee/scheme fee as applicable, may be paid.

    The application in Form A shall be submitted to the below mentioned address:

    Investment Management Department
    Division of Funds- 1
    Securities and Exchange Board of India
    SEBI Bhavan, 3rd Floor A Wing,
    Plot No. C4-A, G Block,
    Bandra-Kurla Complex,
    Bandra (E), Mumbai - 400 051.

    For more information, click here

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  • What does Alternative Investment Funds stand for?

    Alternative Investment Fund or AIF means any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors.

    For more information, click here.

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  • Can an Alternative Investment Fund (AIF) launch schemes?

    Yes, an AIF may launch schemes subject to the filing of placement memorandum with SEBI. In terms of scheme fees, INR 1 lakh should be paid to SEBI by an AIF at least 30 days prior to the launch of a scheme. However, payment of scheme fees shall not be applicable in case of the launch of the first scheme by the AIF (other than angel fund) and to angel funds.

    For more information, click here

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  • Can the registration of Venture Capital Funds be done again under SEBI (AIF)?

    The venture capital funds (VCF) registered under the repealed SEBI (Venture Capital Funds) Regulations, 1996 shall continue to be regulated by the said regulations until existing fund is wound up and no new fund or scheme shall be launched after that under the said regulations.

    However, the existing VCF may seek re-registration under SEBI (Alternative Investment Funds) Regulations, 2012 subject to approval of two-third of its investors by the value of their investment.

    For more information, click here

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  • What is the currency of borrowing in case of ECBs?

    ECB can be raised in Indian Rupees (INR) and / or any convertible currency. Any entity raising INR denominated ECB is not permitted to convert the liability arising out of this ECB into foreign currency liability in any manner or assuming foreign currency risk is any manner by either entering into a derivative contract or otherwise.

    For more information, click here.

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  • Can proceeds of External commercial borrowing raised under Track I of the framework be used for payment of overdue import bills?

    No, though proceeds from external commercial borrowing (ECB) raised under Track I can be utilized for the purposes, among others, such as refinancing of existing trade credit raised for import of capital goods and payment of capital goods already shipped but unpaid, the borrowing are not prescribed for payment of overdue import bills.

    For more information, click here.

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  • Can External Commercial Borrowing be used for importing services?

    No, ECB is not permitted for import of services.

    For more information, click here.

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  • What are the end-utilize solutions for ECB raised under track I?

    1) Investment in real estate or purchase of land

    2) Investment in capital market.

    3) Investment in capital market.

    For more information, click here.

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  • How can one raise loans through ECB?

    The framework for raising loans through external commercial borrowings (ECB) comprises the following three tracks:

    1. Track I: Medium-term foreign currency denominated ECB with minimum average maturity of 3/5 years (exception of minimum average maturity of 1 year for manufacturing sector companies)
    2. Track II: Long-term foreign currency denominated ECB with minimum average maturity of 10 years
    3. Track III: Indian Rupee (INR) denominated ECB with minimum average maturity of 3/5 years (exception of minimum average maturity of 1 year for manufacturing sector companies.

    For more information, click here 

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  • What are the various types of ECB?

    ECB includes Loans, Securitized instruments, Buyers’ and supplier’s credit, Foreign Currency Convertible Bonds (FCCBs). Financial Lease and Foreign Currency Exchangeable Bonds (FCEBs). 

    For more information, click here.

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  • Where can one get the details of extant External Commercial Borrowings (ECB) and Trade Credits (TC) framework?

    Master Direction No. 5 on ‘External Commercial Borrowings, Trade Credits and Structured Obligations dated March 26, 2019 may be referred to for guidance on the extant framework on ECB and TC. ECBs and TCs raised under the prior frameworks should continue to be in compliance with the corresponding guidelines applicable at the time of availing the ECBs and TCs.

    For more information, click here.

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  • What are the Reporting prerequisites for converting External commercial borrowing into equity?

    In case of partial or full conversion of ECB into equity, the reporting to the RBI will be as under:

    • For partial conversion, the converted portion is to be reported to the concerned Regional Office of the Foreign Exchange Department of RBI in Form FC-GPR prescribed for reporting of FDI flows, while monthly reporting to DSIM in ECB 2 Return will be with suitable remarks "ECB partially converted to equity".
    • For full conversion, the entire portion is to be reported in Form FC-GPR, while reporting to DSIM in ECB 2 Return should be done with remarks ECB fully converted to equity. Subsequent filing of ECB 2 Return is not required.
    • For conversion of ECB into equity in phases, reporting through ECB 2 Return will also be in phases.

    For more information, click here

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  • Can External Commercial Borrowing be used for funding real estate?

    No, no activity under real estate is permitted as eligible end use for raising ECB.

    For more information, click here.

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  • What are the routes ECB can be raised in?

    Under the (External Commercial borrowing) ECB/Trade Credit (TC) framework, ECB/TC can be raised either under the automatic route or under the approval route. Under the approval route, the prospective borrowers are required to send their requests to the RBI through their banks for examination. 

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  • What is procedure of issuing Foreign Currency Convertible Bonds?

    A.  For listed companies

    • Any Indian company not eligible to raise funds from the Indian capital market or restrained from accessing securities market by SEBI is not eligible to issue FCCB
    • Erstwhile Overseas Corporate Bodies not eligible to invest in India through portfolio and entities prohibited to buy, sell or deal in securities by SEBI are not eligible to subscribe to FCCB
    • Pricing of GDR/ FCCB should not be less than the higher of either average of weekly high and low of closing prices of related shares for six months preceding the relevant date or average of weekly high and low of closing prices of related shared for two weeks preceding the relevant date
    • The voting rights shall be as per the provisions of The Companies Act 2013

    B. For unlisted companies

    • Companies which have not yet accessed GDR/ FCCB route for raising capital in international market need to get listed in the domestic market
    • Companies which have already issued GDR/ FCCB in the international market would now require listing in the domestic market on making profit beginning 2005-06 or within 3 years of such issue

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  • What is the procedure for reporting the issue of shares against conversion of External Commercial Borrowing?

    In case of partial or full conversion of external commercial borrowing (ECB) into equity, the reporting to the Reserve Bank of India (RBI) happens as under:

    • For partial conversion -  Converted portion to be reported to the concerned Regional Office of the Foreign Exchange Department of RBI in Form FC-GPR, while monthly reporting to the Department of Statistics and Information Management (DSIM) in ECB 2 Return (Annex III)
    • For full conversion - Entire portion is to be reported in Form FC-GPR, while reporting to DSIM in ECB 2 Return.
    • For conversion in phases - Reporting through ECB 2 Return will also be in phases

    For more information, click here

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  • What is meant by Downstream Investment?

    ‘Downstream Investment’ means indirect foreign investment, by an eligible Indian entity, into another Indian company / LLP, by way of subscription or acquisition.

    For more information, click here.

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  • What is the subsidy under Micro Units Development and Refinance Agency?

    There is no subsidy for the loan given under Pradhan Mantri Mudra Yojana (PMMY). However, if the loan proposal is linked to some Government scheme, wherein the Government is providing capital subsidy, it will be eligible under PMMY also.

    For more information, click here

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  • What is the procedure for reporting of transfer of shares?

    Reporting of transfer of shares between residents and non-residents and vice- versa is to be done in Form FC-TRS (Section-4). The Form FC-TRS should be submitted to the AD Category-I bank, within 60 days from the date of receipt of the amount of consideration.

    For more information, click here.

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  • What documents are required for sale of shares by a person resident outside India?

    Documents required for the sale of shares by a person resident outside India:

    i) Consent Letter duly signed by the seller and buyer or their duly appointed agent indicating the details of transfer i.e. number of shares to be transferred, the name of the investee company whose shares are being transferred and the price at which shares are being transferred.

    ii) Where the Consent Letter has been signed by their duly appointed agent the Power of Attorney Document authorizing the agent to purchase/sell shares by the seller/buyer. In case there is no formal Sale Agreement, letters exchanged to this effect may be kept on record.

    iii) If the sellers are NRIs/OCBs, the copies of RBI approvals evidencing the shares held by them on repatriation/non-repatriation basis. The sale proceeds shall be credited NRE/NRO account, as applicable.

    iv) Certificate indicating fair value of shares from a Chartered Accountant.

    v) No Objection / Tax Clearance Certificate from Income Tax authority/Chartered Account.

    vi) Undertaking from the buyer to the effect that the Pricing Guidelines have been adhered to.

    Please refer to subsection 5.2 of 'section 1' of Annexure-3 Consolidated FDI Policy at link for more information.

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  • Could ECB be profited for reimbursement of local INR credit?

    Yes, however, it is only permitted if external commercial borrowing (ECB) is raised from direct and indirect equity holders or from a Group company, and provided the loan is for a minimum average maturity of five years.

    ECB raised under Tracks I or III for repayment of Rupee loans, must be raised from a foreign equity holder.

    For more information, click here

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  • Is it possible for Indian Companies to issue employees' stock option and/or sweat equity shares?

    Yes, an Indian company may issue “employees’ stock option” and/or “sweat equity shares” to its employees/ directors or employees/ directors of its holding company or joint venture or wholly owned overseas subsidiary/ subsidiaries who are resident outside India subject to provisions contained in Companies Act 2013 and SEBI Act 1992.

    For more information, click here

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  • What is the method of payment and remittance/credit of sale proceeds for a person residing outside India?

    The sale consideration in respect of the shares purchased by a person resident outside India shall be remitted to India through normal banking channels. 

    In case the buyer is a FII, FPI, payment should be made by debit to its Special Non-Resident Rupee Account. 

    In case the buyer is a NRI, the payment may be made by way of debit to his NRE/FCNR (B) accounts. 

    However, if the shares are acquired on non-repatriation basis by NRI, the consideration shall be remitted to India through normal banking channel or paid out of funds held in NRE/FCNR (B)/NRO accounts. 

    The sale proceeds of shares (net of taxes) sold by a person resident outside India may be remitted outside India. In case of FII/FPI, the sale proceeds may be credited to its special Non-Resident Rupee Account. In case of NRI, if the shares sold were held on repatriation basis, the sale proceeds (net of taxes) may be credited to his NRE /FCNR (B) accounts and if the shares sold were held on non repatriation basis, the sale proceeds may be credited to his NRO account subject to payment of taxes. The sale proceeds of shares (net of taxes) sold by an OCB may be remitted outside India directly if the shares were held on repatriation basis and if the shares sold were held on non-repatriation basis, the sale proceeds may be credited to its NRO (Current) Account subject to payment of taxes, except in the case of OCBs whose accounts have been blocked by Reserve Bank.

    Please refer to subsection-4 of 'Section 1' of Annexure-3 of Consolidated FDI Policy at link for more information.

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  • What are the reporting requirements for foreign currency convertible bond/depository receipts Issues?

    The domestic custodian needs report the issue/transfer of sponsored/unsponsored depository receipts as per DR Scheme 2014 in ‘Form DRR’ given in Section 5, Annexure 6 of the Consolidated FDI Policy, 2017, within 30 days of close of the issue/ program.

    For more information, click here

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  • What is the rate of interest on MUDRA loans?

    The interest rates are deregulated and the banks have been advised to charge reasonable interest rates within the overall RBI guidelines.

    Please refer to link for more information.

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  • What is Pradhan Mantri Mudra Yojana?

    Pradhan Mantri Mudra Yojana (PMMY) is a scheme launched by the Hon’ble Prime Minister for providing loans upto INR 10 Lakhs to non-corporate, non-fam small/ micro enterprises.

    For more information, click here.

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  • Under PMMY-Shishu loans, what is the turn around time for processing the loan proposal?

    For Shishu loans, normally 7 to 10 days is the turn around time for processing the loan proposals on receipt of complete information.

    Please refer to link for more information

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  • How much interest rate is charged on a Micro Units Development and Refinance Agency (MUDRA) loan?

    The interest rates are deregulated, and the banks have been advised to charge reasonable interest rates within the overall RBI guidelines.
    For more information, click here.

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  • I intend to work on franchisee model. Can MUDRA help me?

    MUDRA operates a special refinance scheme for traders and shopkeepers. You can avail the facilities under the scheme as per your requirements from any banks/MFIs/NBFCs in the area.

    Please refer to link for more information

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  • I want to start my own business. Can Micro Units Development and Refinance Agency help me?

    Micro Units Development and Refinance Agency (MUDRA) does provide loans up to INR10 Lakhs to the non-corporate, non-farm, small/ micro enterprises (SMEs). These loans are given by Commercial bank, RRBs, Small finance bank, Cooperative banks, MFIs and NBFC

    For more information, click here.

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  • What are the agencies providing loans under Micro Units Development and Refinance Agency?

    Pradhan Mantri Mudra Yojana (PMMY) loans will be extended by all Public sector Banks such as PSU banks, Regional Rural Banks (RRBs), Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions and Non-Banking Finance Companies.
    For more information, click here.

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  • What is the application form to apply for a MUDRA loan?

    Click on any of the 3 categories under MUDRA Scheme for application forms and checklist

    1. Shishu: Covering loans up to INR 50,000

    2. Kishor: Covering loans above INR 50,000 and up to INR 500,000

    3. Tarun: Covering loans above INR 500,000 up to INR 1 m

    Note: MUDRA is a refinance agency and not a direct lending institution. MUDRA provides refinance support to its intermediaries viz. banks, micro finance institutions and non-banking financial companies, who further extend these loans to businesses/ entrepreneurs

    For more information, click here.

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  • Who all are eligible under MUDRA?

    Any Indian citizen who has a business plan for a non-farm income-generating activity such as manufacturing, processing, trading or service sector whose credit need is less than INR 1 m can approach either banks, micro finance institutes or non-banking financial companies for availing of MUDRA loans under PMMY. The usual terms and conditions of the lending agency may have to be followed for availing of loans under Pradhan Mantri Mudra Yojana (PMMY). The lending rates are as per the RBI guidelines issued in this regard from time to time.

    For more information, click here.

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  • Can Micro Units Development and Refinance Agency provide loans for running a franchise?

    MUDRA Scheme operates a special refinance scheme for traders and shopkeepers. You can avail the facilities under the Scheme as per your requirements from any bank/ micro finance institute/ non-banking financial company in your area.

    For more information, click here.

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  • What happens if a shareholder does not receive the letter of offer in time?

    The Public Announcement contains procedure for such cases i.e. where the shareholders do not receive the letter of offer or do not receive the letter of offer in time. The shareholders are usually advised to send their consent to Registrar to offer, if any or to MB on plain paper stating the name, address, number of shares held, Distinctive Folio No, number of shares offered and bank details along with the documents mentioned in the Public Announcement, before closure of the offer.

    The public announcement and the letter of offer along with the form of acceptance is available on the SEBI website.

    For more information, click here.

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  • What is a Draft Offer Document, Red Herring Prospectus, Prospectus and Letter of Offer? How are they different from one another?

    Draft Offer Document, Red Herring Prospectus, Prospectus and Letter of Offer are all types of offer documents. Since 1992, entire IPO/ FPO of companies is driven by disclosures, i.e., informing the investors as much as possible to enable them to take informed decision. The offer documents contain all the relevant information about the company, promoters, projects, financial details, objects of raising money, forms of the issue, etc.

    For more information, click here.

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  • What is SEBI takeover code?

    SEBI has notified the Takeover Regulations namely SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (hereinafter referred to as “SEBI (SAST) Regulations, 2011”). Acquisition or sale of shares of Listed Company shall be governed by provisions of SEBI (SAST) Regulations, 2011.

    For more information, click here.

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  • Is a listed company making a rights issue required to satisfy any entry norm?

    No, there is no entry norm for a listed company making a Rights Issue.

    For more information, click here

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  • Are there any mandatory provisions which an issuer is expected to comply before making an issue?

    Yes, there are mandatory provisions which an issuer is expected to comply before making an issue w.r.t. Minimum Promoter’s contribution and lock‐in period:

    • Public issue by an Unlisted Issuer: Promoters shall contribute not less than 20% of the post-issue capital which should be locked in for a period of 3 years. The remaining pre-issue capital of the promoters should also be locked in for a period of 1 year from the date of listing.
    • Public issue by a Listed Issuer: Promoters shall contribute not less than 20% of the post-issue capital or 20% of the issue size.

    For more information, click here.

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  • Which are the intermediaries involved in an issue?

    The intermediaries (registered with SEBI) involved in an issue, are Merchant Bankers to the issue (known as Book Running Lead Managers (BRLM) in case of book built public issues), Registrars to the issue, and Bankers to the issue & Underwriters to the issue who are associated with the issue for different activities. Their addresses, telephone/fax numbers, registration number, and contact person and email addresses are disclosed in the offer documents.
    i) Merchant Banker: Merchant banker does the due diligence to prepare the offer document which contains all the details about the company. They are also responsible for ensuring compliance with the legal formalities in the entire issue process and for marketing of the issue.
    ii) Registrars to the Issue: They are involved in finalizing the basis of allotment in an issue and for sending refunds, allotment details, etc.
    iii) Bankers to the Issue: The Bankers to the Issue enable the movement of funds in the issue process and therefore enable the registrars to finalize the basis of allotment by making clear funds status available to the Registrars.
    iv) Underwriters: Underwriters are intermediaries who undertake to subscribe to the securities offered by the company in case these are not fully subscribed by the public, in case of an underwritten issue.

    Please refer to page 22 of link for more information.

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  • Once the shares are issued, how can one report it?

    An Indian company should file Form , not later than 30 days from the date of issue of shares. The Form should be duly filled and signed by the Managing Director/Director/ Secretary of the company and submitted to the Authorised Dealer of the company who will forward it to the RBI.

    For detailed list of documents, refer to Sub-section 2.2 of Annexure 6 of the FDI policy.

    For more information, click here

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  • In case, the company has not issued shares to the public and it is not listed on the stock exchange, can an application be made for convertible securities in the company?

    Yes, an application can be made for public issue of convertible securities even if the company has not issued shares to the public and is not listed on the stock exchange.

    Please refer to page 9 of link for more information

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  • What does Depository Receipts mean?

    DRs refer to negotiable securities representing INR denominated equity shares of a company and issued outside of India by a Depository bank on behalf of the company. The DRs listed and traded in US markets are known as American Depository Receipts (ADRs). The DRs listed and traded except in the US markets are known as the Global Depository receipts (GDRs).

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  • 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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  • 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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  • If a copyright is rejected, is there any opportunity given for hearing the case?

    As per the rule 70 (12) of the Copyright Rules, 2013, an opportunity of hearing must be given. Only after hearing, it may be decided to register the work or to reject it. The applicant himself or his/her pleader may appear in the hearing.

    For more information, click here.

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  • What are the guidelines regarding registration of a work under the Copyright Act 1957?

    Chapter XIII of the Copyright Rules, 2013, as amended, sets out the procedure for the registration of a work. Copies of the Act and Rules can be obtained from the Manager of Publications, Publication Branch, Civil Lines, Delhi or his authorized dealers on payment or download from the Copyright Office web-site, link.

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  • Can an individual file for registration of copyright of a work without professional assistance?

    Yes. Any individual who is an author or rights owner or assignee or legal heir can file application for copyright of a work either at the copyright office or by post or by e-filing facility from the copyright Office web-site "www.copyright.gov.in"

    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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