• 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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  • Can foreign nationals already in India for executing projects on business visas be allowed to convert their business visas to employment visas without leaving the country?

    Business Visa shall be non-convertible to any other type of visa except in specific cases.

    For more details, please refer the following link.

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  • What is the difference between single and multiple entry visas and e-visas?

    A single-entry visa allows you to visit India one time while the visa is valid whereas a multiple-entry visa allows you to enter India several times within the validity period of the visa. In case of e-tourist visa and e-business visa, multiple entry visa is granted with a validity of 1 year.

    For more information, click here

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  • If the Indian organization/entity sponsors an employment visa, does this mean that the Indian organization/entity has to necessarily be the legal employer of the person?

    No, it is not necessary for Indian organization/entity sponsoring an employment visa to necessarily be the legal employer of the person. 

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  • What is the Port of Arrival in India which is to be filled in the application frame?

    The port of arrival (POA), commonly called the port of entry (POE), is the location - typically name of the city - from where on the visitor lawfully enters India.

    For more information, click here

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  • Can a foreign company/organization that does not have any project office/subsidiary/joint venture/branch office in India, sponsor a foreign national/employee of a foreign company for employment visa?

    No, in case the foreign entity does not have any office in India, it cannot sponsor an employment visa. The visa can be sponsored by an Indian ‘host’ company,The visa can be sponsored by an Indian ‘host’ company subject to following conditions:

    • Ensure good conduct of the foreigner during stay in India and inform Foreigners Regional Registration Office (FRRO) or Foreigner’s Registration Officer’s (FRO) office in case of termination of business contract
    • Produce the foreigner in person at FRRO/ FRO office within 24 hours in case of withdrawal of undertaking for the good conduct of the foreigner.

    For more information, click here 

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  • What is an e-Tourist Visa (e-TV) in India?

    e-Tourist Visa is a completely online application for which no facilitation is required by any intermediary/agents, etc. However, its validity is for 30 days and it is only valid for single entry into India. The e-Tourist visa allows for visa on arrival issuance only for arrival and departure from the airports in Ahmedabad, Amritsar, Bengaluru (Bangalore), Chennai, Cochin, Delhi, Gaya, Goa, Hyderabad, Jaipur, Kolkata, Lucknow, Mumbai, Tiruchirapalli, Trivandrum and Varanasi.

    For more information, click here

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  • Which type of visa would be granted to senior management personnel and/or specialists employed by foreign firms who are relocated to India to work on specific project/management assignment?

    Senior management personnel and/or specialists employed by foreign firms, who are relocated to India to work on specific project/management assignment can apply for employment visa. 

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  • Is it conceivable that the visa allowed to me is for a lesser span than I initially connected?

    Visa issued by the Embassy or the Consulate is not a matter of right and is entirely up to the Competent Authority to decide on the issue of such visa. In some circumstances, visa may be issued for a period less than what was requested by the applicant.

    For more information, click here

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  • Can I undertake employment in India on a business visa?

    No, a foreign citizen cannot undertake employment on the basis of a business visa. Only on an employment visa can a foreign citizen undertake employment in India

    For more information, click here.

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  • What is the eligibility criteria for Entry (‘X’) Visa in India?

    Entry (‘X’) Visa may be granted to a foreigner in the following cases :- 

    1. A Person of Indian Origin, who do not possess an OCI card, and may be granted ‘X-1’ Visa for five years at a time, with multiple entry facility.
    2. Spouse and children of an Indian citizen/ Person of Indian Origin/ OCI cardholder (other than those who are registered as OCI cardholder) may be granted ‘X-2’ visa for five years at a time, with multiple entry facility.

    For more information, click here 

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  • Can a listed company be converted to LLP?

    No, only private / unlisted public company or a partnership firm can be converted into LLP.

    For more information, click here.

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  • What if there are more than seven subscribers to MoA and AoA?

    Incase of more than 7 subscribers INC 32 to be filled with MoA, AoA as attachment 
    For further details please access following link.

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  • In case of overseas shareholders and directors, are the documents required to be notarized and apostilled for incorporation of a company?

    Where the shareholder or a director to be appointed in the proposed company is a company incorporated outside India (for example, in China/ Chinese national residing in China), the MoA (Memorandum of Association), AoA (Articles of Association), proof of identity as well as address proof is required to be notarized before the Notary (Public) in China and the certificate of the Notary (Public) shall be attested by the Indian Embassy in China.

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  • How to inform RoC about change in membership of OPC?

    The company shall file form INC-4 in case of cessation of member of OPC on account of death, incapacity to contract or change in ownership. In the same form, user needs to provide details of the new member of the OPC.

    For more information, click here.

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  • Do partnership agreements have to be registered under LLP?

    Yes, it is mandatory to execute and file partnership agreement in view of Sections 2(0) & (q), 22 and 23 of the LLP Act.
    As per provisions of the Act, in the absence of agreement, the mutual rights and liabilities shall be as provided for under Schedule-I to the Act. Therefore, in case any LLP proposes to exclude provisions or requirements of Schedule-I, it would have to enter into an agreement, specifically excluding applicability of any or all paragraphs of the Schedule.

    For more information, click here.

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  • What are the Important clauses included in a Joint venture Agreement?

    Some of the important clauses in a Joint Venture Agreement are as below:
    a) Object and scope;
    b) Equity Participation by local and foreign investors;
    c) Lock in Clause;
    d) Financial Arrangements;
    e) Composition of Board and Management arrangements;
    f) Remedying a deadlock;
    g) Roles & Responsibilities of the Parties;
    h) Exit Clause;
    i) Representations, Warranties & Covenants of the Parties;
    j) Confidentiality;
    k) Dispute Resolution;
     

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  • Is there any cooling period for the existing auditors after the expiry of their term?

    An individual auditor who has completed his term of five years shall not be eligible for re-appointment as auditor in the company for five years from the completion term of five years.

    An auditor firm who has completed their two terms of five years shall not be eligible for re-appointment as auditor in the company for next five years from the completion of 10 year.

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  • Is it mandatory to use eMoA and eAoA? Can physical copies of MoA/AoA be signed and attached with SPICe forms?

    Yes. It is mandatory to use eMoA (INC-33) and eAoA (INC-34) . Physical copies of MoA/AoA be signed and attached only in case of foreign subscriber.
    For further details please access following link.

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  • Is there any endorsed fee(s) that can be charged from the Start-ups for furnishing them with a suggestion/bolster/underwriting letter?

    Yes. A maximum fee of INR 5,000 can be charged by the incubators for issuing a letter of recommendation to Start-ups. In cases where an incubator is required to form a panel of external experts to assess the innovativeness of the product/service/process, a maximum fee of Rs. 10,000 can be charged by the incubators.

    For more information, click here.

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  • On approval of SPICe how PAN & TAN is communicated to the user?

    On approval of SPICe forms, the Certificate of Incorporation (CoI) is issued with PAN as allotted by the Income Tax Department. An electronic mail with Certificate of Incorporation (CoI) as an attachment along with PAN and TAN is also sent to the user. Further PAN card shall be issued by the Income Tax Department.

    For more information, click here.

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  • What is the amount Foreign Direct Investment is permissible under railroads?

    100 % FDI under automatic route is available for the following: 

    1.     Construction, operation and maintenance of suburban corridor projects through PPP

    2.       High speed train projects

    3.       Dedicated freight corridors

    4.       Railway electrification

    5.       Signaling systems

    6.       Freight terminals

    7.       Passenger terminals

    8.       Infrastructure in industrial parks pertaining to railway line/siding including electrified railways lines and connectivity to main railway line

    9.       Mass Rapid Transport Systems (MRTS)

    For more information, click here.

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  • What does Person of Indian Origin (PIO) stand for?

    ‘Person of Indian Origin (PIO)’ means a citizen of any country other than Bangladesh or Pakistan, if

    1. They at any time held Indian Passport, or,
    2. They or either of their parents or grandparents was a citizen of India by the Constitution of India or the Citizenship Act, or,
    3. The person is a spouse of an Indian citizen or a person referred to in sub-clauses (1) or (2).

    For more information, click here.

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  • Who is responsible to distribute the corporate benefits to IDR holders?

    On the receipt of dividend or other corporate action on the IDRs, the Domestic Depository shall distribute the corporate benefits to the IDR holders in proportion to their holdings of IDRs.

    For more information, click here

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  • How can an Indian company receive foreign investment?

    Investments can be made by non-residents in the equity shares/fully, compulsorily and mandatorily convertible debentures/fully, compulsorily and mandatorily convertible preference shares of an Indian company, through the Automatic Route or the Government Route. Under the Automatic Route, the non-resident investor or the Indian company does not require any approval from Government of India for the investment. Under the Government Route, prior approval of the Government of India is required. Proposals for foreign investment under Government route, are considered by respective Administrative Ministry/Department. Foreign investment in sectors/activities under government approval route will be subject to government approval where:

    a) An Indian company is being established with foreign investment and is not owned by a resident entity.

    b) An Indian company is being established with foreign investment and is not controlled by a resident entity.

    c) The control of an existing Indian company, currently owned or controlled by resident Indian citizens and Indian companies, which are owned or controlled by resident Indian citizens, will be/is being transferred/passed on to a non-resident entity as a consequence of transfer of shares and/or fresh issue of shares to nonresident entities through amalgamation, merger/demerger, acquisition etc.

    d) The ownership of an existing Indian company, currently owned or controlled by resident Indian citizens and Indian companies, which are owned or controlled by resident Indian citizens, will be/is being transferred/passed on to a non-resident entity as a consequence of transfer of shares and/or fresh issue of shares to nonresident entities through amalgamation, merger/demerger, acquisition etc.

    e) It is clarified that Foreign investment shall include all types of foreign investments, direct and indirect, regardless of whether the said investments have been made under Schedule 1 (FDI), 2 (FII), 2A (FPI), 3 (NRI), 6 (FVCI), 9 (LLPs), 10 (DRs) and 11(Investment Vehicles) of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations. FCCBs and DRs having underlying of instruments which can be issued under Schedule 5, being in the nature of debt, shall not be treated as foreign investment. However, any equity holding by a person resident outside India resulting from conversion of any debt instrument under any arrangement shall be reckoned as foreign investment.

    f) Investment by NRIs under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident outside India) Regulations will be deemed to be domestic investment at par with the investment made by residents.

    g) A company, trust and partnership firm incorporated outside India and owned and controlled by non-resident Indians will be eligible for investments under Schedule 4 of FEMA (Transfer or issue of Security by Persons Resident Outside India) Regulations and such investment will also be deemed domestic investment at par with the investment made by residents.

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  • Which act governs foreign fund investments?

    Foreign Investments and repatriation is governed by Foreign Exchange Management Act.

    For more information, click here.

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  • How can the sale/ maturity proceeds taken by the Foreign Venture Capital Investor?

    The sale/ maturity proceeds (net of taxes) of the securities may be remitted outside India or credited to the foreign currency account or a Special Non-resident Rupee Account of the FVCI.

    For more information, click here.

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  • What does the FDI policy entail with regards to issuing equity shares under government route?

    Issue of equity shares under the FDI Policy is allowed under the Government route for the following:

    • Import of capital goods/ machinery/ equipment (excluding second-hand machinery)
    • Pre-operative/pre-incorporation expenses (including payments of rent, etc.)

    However, these are subject to compliance with several conditions, as mentioned in sub-section (iv), section (6) of Annexure-3 of the Consolidated FDI Policy

    For more information, click here

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  • Can an IDR holder appoint any nominee in case of death?

    Yes, an IDR holder can at any time nominate a person to whom his IDRs shall vest in the event of his death.

    For more information, click here

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  • Are there any restrictions on the sectors for FDI in India?

    Yes, investments by non-residents can be permitted in the capital of a resident entity in certain sectors/activity with entry conditions. Such conditions may include norms for minimum capitalization, lock-in period, etc. as per the latest FDI policy.

    For more information, click here.

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  • What is Foreign Investment Promotion Board?

    The Foreign Investment Promotion Board (FIPB) has been replaced by Foreign Investment Facilitation Portal (FIFP). FIFP, housed in the Department of Economic Affairs, Ministry of Finance, is an inter-ministerial body, responsible for processing of FDI proposals and making recommendations for Government approval.

    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 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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  • Who are the eligible borrowers under ECB framework?

    All entities except a Limited Liability Partnership are allowed to obtain ECB as per the prescribed guidelines.

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  • What is the earliest when an External Commercial Borrowing can be matured?

    Minimum average maturity period (MAMP) is three years for all external commercial borrowings (ECB). However, for ECB raised from foreign equity holder and utilised for specific purposes, as detailed in sub-section 2.1 of the Annex, the MAMP is five years. Similarly, for ECB up to INR 3.5 b per financial year raised by manufacturing sector, which has been given a special dispensation, the MAMP is one year.

    For more information, click here

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  • What is the procedure of raising ECB?

    Entities looking to raise ECB may approach the RBI with an ECB application form in prescribed format for examination through their AD Category I bank. Cases shall be considered keeping in view the overall guidelines, macroeconomic situation and merits of the specific proposals.

    ECB proposals received by the RBI above certain threshold limit (re-fixed from time to time) would be placed before the Empowered Committee set up by the Reserve Bank. The Empowered Committee will have external as well as internal members and the Reserve Bank will take the decision based on the recommendation of the Empowered Committee.

    Entities desirous to raise ECB under the automatic route may approach an AD Category I bank with their proposal along with duly filled Form 83. Formats of ECB Form and Form 83 are available at Annex I and II respectively of Part V of the Master Directions Reporting under Foreign Exchange Management Act, 1999.

    For more information, click here

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  • What are the reporting requirements under ECB?

    Borrowings under ECB Framework are subject to following reporting requirements apart from any other specific reporting required under the framework:

    • Loan Registration Number (LRN): Any draw-down in respect of an ECB should happen only after obtaining the LRN from the RBI. To obtain the LRN, borrowers are required to submit duly certified Form ECB, which also contains terms and conditions of the ECB, in duplicate to the bank
    • Changes in terms and conditions of ECB: Changes in ECB parameters in consonance with the ECB norms, including reduced repayment by mutual agreement between the lender and borrower, should be reported to the DSIM through revised Form ECB at the earliest, in any case not later than seven days from the changes effected. While submitting revised Form ECB the changes should be specifically mentioned in the communication 
    • Monthly reporting of actual transactions: The borrowers are required to report actual ECB transactions through Form ECB 2 Return (Annex II) through the AD Bank on monthly basis so as to reach DSIM within seven working days from the close of month to which it relates. Changes, if any, in ECB parameters should also be incorporated in Form ECB 2 Return

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  • Are the shipping/airline companies allowed to raise External Commercial Borrowing for import of second hand vessels?

    Yes, shipping and airline companies can raise external commercial borrowings (ECB) for import of vessels and aircrafts, however, only under Track I of the ECB framework.

    For more information, click here

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  • Who are eligible lenders under ECB framework?

    Lender for ECB purposes should be:

    • A resident of Financial Action Task Force (FATF) [or International organization of Securities commissions (IOSC) compliant country
    • Multilateral and regional financial institution where India is a member country
    • Individuals, if they are foreign equity holders or for subscription to bond/debentures listed abroad
    • Foreign branches / subsidiaries of Indian Banks – only for FCY ECB except FCCBs and FCEBs

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  • What does External Commercial Borrowing (ECB) denote?

    ECBs are commercial loans raised by eligible resident entities from recognised non-resident entities conforming to parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, etc.

    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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  • Would I be able to get financing support from Make in India?

    The Make in India initiative was launched by Prime Minister in September 2014 as part of a wider set of nation-building initiatives.

    For more information, click here

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  • What is meant by ‘AD Category-I Bank'?

    ‘AD Category-I Bank’ means a bank (Scheduled Commercial, State or Urban Cooperative) which is authorized under Section 10 (1) of FEMA to undertake all current and capital account transactions according to the directions issued by the RBI from time to time.

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  • What is Two-way Fungibility Scheme?

    A limited two-way Fungibility Scheme has been put in place by the Government of India for American Depository Receipts (ADR)/ Global Depository Receipts (GDR). Under this Scheme, a stock broker in India, registered with Securities & Exchange Board of India (SEBI), can purchase shares of an Indian company from the market for conversion into ADR/GDR based on instructions received from overseas investors. Re-issuance would be permitted to the extent of ADR/GDR which have been redeemed into underlying shares and sold in the Indian market.

    For more information, click here

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  • What is debt restructuring of advances?

    Debt restructuring is an act in which a lender, for economic or legal reasons relating to the borrower's financial difficulty, grants concessions to the borrower. Restructuring normally involves modification of terms of the advances/ securities, which would generally include, among others, alteration of repayment period, repayable amount, the number/amount of installments, rate of interest, roll over of credit facilities, sanction of additional credit facility, enhancement of existing credit limits, compromise settlements where time for payment of settlement amount exceeds three months.

    For more information, click here.

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  • Are dividends repatriable?

    Dividends are freely repatriable without any restrictions (net after Tax deduction at source or Dividend Distribution Tax, if any, as the case may be). The repatriation is governed by the provisions of Foreign Exchange Management (Current Account Transactions) Rules, 2000

    For more information, click here.

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  • Which bodies and organizations can be classified as Funding Bodies?

    As per the notification no. G.S.R 180(E) dated February 17, 2016, Alternate Investment Funds, Venture Capital Funds, Angel Fund and Seed Funds registered with SEBI can be classified as Funding bodies. These bodies are eligible for providing recommendation/ support/ endorsement letter to entities in which more than 20 percent equity is taken up by such funds.
    A list of SEBI registered VCFs and AIFs has been published on Start-up India portal on http://startupIndia.gov.in

    For more information, click here

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  • Who is a Foreign Venture Capital Investor (FVCI)?

    FVCI refers to an investor incorporated and established outside India, which is registered under the Securities and Exchange Board of India (Foreign Venture Capital Investor) Regulations, 2000 {SEBI (FVCI) Regulations} and proposes to make investments in accordance with FDI Regulations.

    For more information, click here.

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  • Are foreigners allowed to invest in India?

    A non-resident entity can invest in India, subject to the prevailing FDI Policy, except in those sectors which are prohibited. Foreign Institutional Investor (FII) and Foreign Portfolio Investors (FPI) may invest in the capital of an Indian Company under the Portfolio Investment Scheme, subject to FEMA provisions.

    For more information, click here.

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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 is the usage of the Micro Units Development and Refinance Agency Card?

    MUDRA Card is an innovative credit product wherein the borrower can avail of credit in a hassle free and flexible manner. It will provide a facility of working capital arrangement in the form of CC/OD to the borrower. Since MUDRA Card will be RuPay debit card, it can be used for drawing cash from ATM or Business Correspondent or make purchase using Point of Sale (POS) machine. Facility is also there to repay the amount, as and when, surplus cash is available, thereby reducing the interest cost.

    For more information, click here

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  • Which banks are eligible to provide Micro Units Development and Refinance Agency loans?

    All public-sector banks (PSB), regional rural banks (RRB) and scheduled cooperative banks are allowed to cover all loans up to INR 10 lakhs, sanctioned on or after 8 April 2015, under Pradhan Mantri Mudra Yojana (PMMY).

    For more information, click here

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  • What is the list of documents needed for availing MUDRA loans?

    List of documents required for availing MUDRA loans are Application form, Address Proof, ID proof, Bank Statement of defined period, Statutory return and others as may be required. This is just an indicative list.

    For more information, click here.

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  • What is the grievance component accessible against bank authorities, in case of non-endorse of advance?

    Any grievance against non-consideration of MUDRA loan can be registered with the higher authorities in the respective Bank like Regional Manager/Zonal Manager of the Bank, provided there is any lapse from the bank officials in sanctioning the loan.

    For more information, click here.

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  • What is the grievance mechanism available against bank officials, in the event of non sanction of loan?

    Any grievance against non consideration of MUDRA loan can be registered with the higher authorities in the respective Bank like Regional Manager/Zonal Manager of the Bank, provided there is any lapse from the bank officials in sanctioning the loan.

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  • For how long an investment in public issue is required to be kept open?

    The period for which an issue is required to be kept open is:
     1) For Fixed price public issues: 10 working days
     2) For Book built public issues: 7 working days extendable by 3 days in case of a revision in the price band
     3) For Rights issues: 30 days.

    For more information, click here.

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  • What is a Right Issue?

    A Right Issue is an issue of shares or convertible securities to existing shareholders as on a particular date (record date) fixed by the issuer. The rights are offered in a particular ratio to the number of shares or convertible securities held as on the record date.

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  • Whether a Foreign investor can invest in rights shares issued by an Indian company at a discount?

    There are no restrictions under FEMA for investment in Rights shares issued at a discount by an Indian company under the provisions of the Companies Act, 2013. The offer on rights basis to the person resident outside India shall be:

    • In case of shares of a company listed on a recognized stock exchange in India, at a price, as determined by the company
    • In case of shares of a company not listed on a recognized stock exchange in India, at a price, which is not less than the price at which the offer on right basis is made to resident shareholders

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  • What is a Bonus Issue?

    A Bonus Issue is an issue of shares to its existing shareholders without any consideration based on the number of shares already held by them as on a record date. The shares are issued out of the company’s Free Reserve or Share Premium Account in a particular ratio to the number of securities held on a record date.

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  • What does composite issue of shares mean?

    A Composite Issue is an issue of shares or Convertible Securities on Public-cum-Right basis, wherein the allotment in both Public Issue and Rights Issue is proposed to be made simultaneously.

    For more information, click here.

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  • What does private placement of shares mean?

    A Private Placement is the issue of shares or convertible securities to a select group of persons not exceeding 49%.

    For more information, click here.

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  • What does rights issue of shares mean?

    A rights issue is an issue of shares or convertible securities to existing shareholders as on a record date fixed by the issuer. The rights are offered in a ratio to the number of shares or convertible securities held as on the record date.

    For more information, click here.

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  • What do offer documents imply?

    An offer document contains all the relevant information about the company, promoters, projects, financial details, objects of raising the money, terms of the issue, etc. and is used for inviting subscription to the issue being made by the issuer. Offer document is called a ’Prospectus’ in case of a Public Issue and ’Letter of Offer’ in case of a Rights Issue.

    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 are safe harbor rules under the Indian transfer pricing regulations?

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

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

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

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  • Which transaction is classified as “international transaction”?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    For more information, click here.

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

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

     

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  • What are the documents required to be maintained by a company while executing an international transaction?

    Transfer pricing documentation requirements are provided under Section 92D of the Act and Rule 10D of the Income-tax Rules, 1962 (Rules).

    The categories of documentation required are:

    • Ownership structure
    • Profile of the multinational group
    • Business description
    • Nature and terms (including prices) of international transactions
    • Description of functions performed, risks assumed and assets employed
    • Record of any financial estimates
    • Record of uncontrolled transaction with third parties and a comparability evaluation
    • Description of methods considered
    • Reasons for rejection of alternative methods
    • Details of transfer pricing adjustments
    • Any other information or data relating to the associated enterprise that may be relevant for determining the arm’s-length price

    A list of additional optional documents is provided in Rule 10D(3).

    In addition, the taxpayer is required to obtain and furnish an Accountant’s Certificate (Form 3CEB) regarding maintenance of documentation. This has to be filed irrespective of the transaction value.

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

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

    For more information, click here.

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

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

    For more information, click here.

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

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

    For more information, click here.

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  • What is copyright?

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

    For more information, click here.

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  • How can I get copyright registration for my Website?

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

    For more information, click here.

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  • 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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  • What is the function of a trademark? (Under the Trade Marks Act 1999)

    Under modern business condition a trademark performs four functions: 

    1) It identifies a good/service and its origin.
    2) It guarantees its unchanged quality.
    3) It advertises the goods/services.
    4) It creates an image for good/services.

    For further details please access following link.

     

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  • Under the Trade Marks Act 1999, who benefits from a trademark?

    The registered proprietor of a trademark can create, establish and protect the goodwill of his products or services. He/she can stop traders from unlawfully using his trademark, sue for damages and secure destruction of infringing goods or labels.

    The government earns revenue as a fee for registration and protection of registration of trademark.

    The legal professionals render services to the entrepreneurs regarding selection, registration and protection of trademarks and get remuneration for the same. The purchaser and ultimately consumers of goods and services get options to choose the best.

    For more information, click here.

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  • What is a trademark?(Under the Trade Marks Act 1999)

    A trademark (popularly known as brand name) is a visual symbol which may be a word signature, name, device, label, numerals or combination of colours used by one undertaking on goods or services or other articles of commerce to distinguish it from other similar goods or services originating from a different undertaking.

    For more information, click here.

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

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

    For more information, click here.

     

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

    Application shall not become invalid.

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

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

    For more information, click here.

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

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

    For more information, click here.

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

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


    For further details please access following link.

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

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

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

    For more information, click here

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

    Registration fee: 

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

    For more information, click here

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

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

    For more information, click here

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

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


    For further details please access following link.

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

    The maximum number of workers are Ten.

    For more information, click here.

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  • What are the important regulations pertaining to mergers and acquisitions in India?

    The key laws governing M&A in India are:

    • Companies Act, 1956 and 2013
    • Income Tax Act, 1961
    • Competition Act, 2002
    • Foreign Exchange Management Act.

    The key regulations governing M&A in India are:

    • Securities and Exchange Board of India (SEBI)
    • Takeover code of SEBI.
    • Reserve Bank of India.
    • Competition Commission of India.

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  • What does the minimum level of acceptance mean under Sebi takeover code?

    'Minimum level of acceptance’ implies minimum number of shares which the acquirer desires under the said conditional offer. If the number of shares validly tendered in the conditional offer are less than the minimum level of acceptance stipulated by the acquirer, then the acquirer is not bound to accept any shares under the offer.

    For more information, click here.

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  • What is an open offer under the SAST Regulations, 2011, Under which situations is an open offer required to be made by an acquirer?

    An open offer is an offer made by the acquirer to the shareholders of the target company inviting them to tender their shares in the target company at a particular price. The primary purpose of an open offer is to provide an exit option to the shareholders of the target company on account of the change in control or Substantial acquisition of shares, occurring in the target company.
    If an acquirer has agreed to acquire or acquired control over a target company or shares or voting rights in a target company which would be in excess of the threshold limits, then the acquirer is required to make an open offer to shareholders of the target company.

    For further details please access following link.

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  • What is the defined size for an open offer to be made under SEBI takeover code?

    An open offer, other than a voluntary open offer under Regulation 6, must be made for a minimum of 26% of the target company’s share capital. The size of voluntary open offer under Regulation 6 must be for at least 10% of the target company’s share capital. Further the offer size percentage is calculated on the fully diluted share capital of the target company taking into account potential increase in the number of outstanding shares as on 10th working day from the closure of the open offer.

    For more information, click here.

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  • What does the term control entail as per the guidelines of CCI?

    “Control” means controlling the affairs or management of a target enterprise or group.

    For more information, click here.

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  • What are hostile bids under SEBI takeover code?

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

    For more information, click here.

     

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

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

    For more information, click here.

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  • What is a ‘Target Company’?

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

    For more information, click here.

     

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

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

    For more information, click here.

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  • What is National Company Law Tribunal?

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

    For more information, click here.

     

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  • 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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