Union Budget 2023-24
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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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  • Is a proposed Section 8 company required to file eMOA (INC-33), eAOA (INC-34) along with SPICe (INC-32)?

    No. Section 8 companies are mandatorily required to file MOA and AOA as pdf attachments to SPICe (INC-32).
    For further details please access following link.

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  • Under which scenarios, the applicant is required to approach the RBI for approval?

    Under the following scenarios, prior approval of RBI shall be required:

    • The principal business of the applicant falls in the four sectors namely defence, telecom, private security and information and broadcasting. However, no prior approval of the RBI shall be required, if government approval or license/permission by the concerned ministry/ regulator has already been granted
    • The applicant is a Non-Government Organization (NGO), Non-Profit Organization, body/ agency/ Department of a foreign government

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  • What are the forms that need to be filed upon appointment or resignation of a partner in Limited Liability Partnership?

    E-form 3 and E-form 4 are required to be filed for appointment of new and resignation of existing partners within 30 days of such cessation or appointment. If filed during the first 30 day, no fee will be levied; there is an additional fee thereafter.

    For more information, click here.

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  • Is there any form that is to be filed for conversion of an OPC into private or public company? Is there any other purpose for filing this form?

    Form INC-6 shall be filed by an OPC for conversion of an OPC into private or public company.
    Yes, a private company can also file form INC-6 for converting itself into an OPC. The paid up share capital of private company should not be exceeding fifty lakh rupees and should not have average annual turnover more than two crore rupees at the time of such conversion into OPC. The company shall be having one member and shall appoint one nominee to act as member in case of death or incapacity of the member at the time of conversion into OPC.
    For further details please access following link.

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  • Whether subscribers' photo is required in SPICe forms?

    No. ID and address proof required . Required in case of physical MoA/ AoA subscriber sheet.
    For further details please access following link.

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  • Within what time should the first board meeting be held?

    The first board meeting should be held within 30 days from the date of incorporation.

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  • What is JV and WOS?

    A foreign entity is termed as JV (Joint venture) of the Indian Party/Resident Indian when there are other foreign promoters holding the stake of the entity along with the Indian Party.

    In case of WOS (Wholly Owned Subsidiary), entire capital is held by the one or more Indian Party/Resident Indian.

    For more information, click here.

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  • What is the time limit for filing form INC-5?

    Form INC-5 shall be filed within sixty days of the date on which its paid-up share capital is increased beyond INR fifty lakh or the last day of the relevant period during which its average annual turnover exceeds INR two crore.

    For more information, click here.

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  • What is the valid period of existence of a Liaison Office? Can the period of existence of a Liaison Office be extended?

    Permission to set up a Liaison Office is initially granted for a period of 3 years and this may be extended from time to time by the Authorized Dealer Category – I Bank in whose jurisdiction the Liaison Office is set up.

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  • What is the applicability of internal audit?

    Applicability of internal audit is as follows:

    • Listed company: Always applicable
    • Unlisted public company: Where any of the below conditions is satisfied:
      • Paid up share capital >= INR 500 million during the preceding financial year
      • Turnover (income) >= INR 2 billion during the preceding financial year
      • Outstanding loans or borrowings from banks or public financial institutions exceeding INR 1 billion or more at any point of time during the preceding financial year
      • Outstanding deposits >= INR 250 million at any point of time during the preceding financial year
    • Private company: Where any of the below conditions is satisfied:
      • Turnover >= INR 2 billion during the preceding financial year
      • Outstanding loans or borrowings from banks or public financial institutions exceeding INR 1 billion or more at any point of time during the preceding financial year

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  • Whether the IDRs required to be listed in any stock exchanges of India?

    Yes, The IDRs are required to be listed in at least one stock exchange in India having nationwide terminals.

    For more information, click here

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  • Which are the permissible ways in which an FVCI can make the investment?

    The FVCI is permitted to:

    a) Purchase the securities/ instruments (permitted for FVCI) either from the issuer of these securities/ instruments or from any person holding these securities/ instruments.

    b) Invest in securities on a recognized stock exchange subject to the provisions of the SEBI (FVCI) Regulations, 2000, as amended from time to time.

    c) Acquire, by purchase or otherwise, from, or transfer, by sale or otherwise, to, any person resident in or outside India, any security/ instrument it is allowed to invest in, at a price that is mutually acceptable to the buyer and the seller/ issuer.

    d) Receive the proceeds of the liquidation of VCFs or of Cat-I AIFs or of schemes/ funds set up by the VCFs or Cat-I AIFs.

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  • What is the FDI policy for Single Brand Retail Trading sector?

    Up to 100% FDI is permitted for Single Brand Retail Trading (SBRT) sector without any government route subject to the following conditions:

    • Products should be of single brand only
    • Sold under same brand internationally
    • Covers products which are branded during manufacturing
    • DIPP approval is needed for any addition to product category
    • Entities involving FDI beyond 51% in the SBRT are required to source at least 30% of the value of goods purchased by them from India

    For more information, click here. 

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  • How can foreign investors put money in Portfolio Investments in India?

    Investment by FPI registered in accordance with SEBI guidelines including deemed RFPI (erstwhile FII) is permitted in the capital of an Indian Company under the Portfolio Investment Scheme. Investment by individual FPIs should be less than 10% of the paid-up capital of the Indian Company on a fully diluted basis. The aggregate investment by FPIs should not exceed 24% of the paid-up capital of an Indian Company on a fully diluted basis. This aggregate limit of 24% can be increased by the Indian Company concerned up to the sectoral cap/ statutory ceiling, as applicable, with the approval of its Board of Directors and its General Body through a resolution and a special resolution, respectively and subject to prior intimation to RBI. The aggregate FII/FPI investment, individually or in conjunction with other kinds of foreign investment, cannot exceed sectoral/statutory cap.

    For more information, click here.

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  • What are the pricing guidelines to be complied with given the scenario of Issue of shares by Indian investee company to a person resident outside India?

    Listed Securities: Price to be not less than the price worked out as per SEBI guidelines

    Unlisted Securities: Price not less than the price worked out as per internationally accepted pricing methodology on arm’s length basis

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  • Whether IDRs can be converted/ redeemed into underlying equity shares?

    IDRs can be converted/ redeemed into the underlying equity shares only after the expiry of one year from the date of the listing of the IDRs, subject to the compliance of the related provisions of Foreign Exchange Management Act and Regulations issued thereunder by RBI & SEBI in this regard.

    For more information, click here

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  • Can FDI be made in investment vehicles?

    Any person resident outside India may invest in units of Investment Vehicles subject to the conditions laid down in Schedule 8 to Notification No FEMA 20.
     A person resident outside India who has acquired or purchased units of an investment vehicle may sell or transfer in any manner or redeem the units as per regulations framed by SEBI or directions issued by the Reserve Bank.

    For more information, click here

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  • Which are the major FDI attractive sub-sectors in India?

    Textiles (including Dyed, Printed) sector attracted $ 3.19 Bn FDI during April 2000-June 2019.

    For more information, click here.

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  • What are the regulations for a foreign company to set up business operations in India?

    A foreign company can set up business in India via Foreign Direct Investment (FDI) either by incorporating an Indian company or foreign company or LLP under the Companies Act, 2013 or by setting up a Liaison Office, Project Office or a Branch Office of the foreign company. Entry into India is however as per the provision of FDI policy and FEMA rules.

    For more information, click here.

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  • Is it permissible for Start-ups to secure foreign funding?

    RBI via the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (FEMA 20) has allowed startups to issue convertible notes to foreign investors apart from FDI in startups by foreign venture capital investors through subscribing to equity or equity-linked instruments or debt instruments.

    For more information, click here.

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  • Could an Alternative investments funds dispatch a reserve/plan of any size?

    No, each scheme of the Alternative Investment Fund (other than angel fund) shall have corpus of at least INR twenty crore. In case of an angel fund, it shall have a corpus of at least INR ten crore.

    For more information, click here.

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  • What is the meaning of Angel Fund?

    "Angel Fund” is a sub-category of Venture Capital Fund under Category I Alternative Investment Fund that raises funds from angel investors and invests in accordance with the provisions of AIF Regulations.

    For more information, click here.

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  • What are the reporting requirements to SEBI for Alternate Investment Funds registered with SEBI?

    As per circular No.CIR/IMD/DF/10/2013 dated 29th July, 2013, Category I and II AIFs and the Category III AIFs which do not undertake leverage are required to submit report to SEBI on a quarterly basis while Category III AIFs which undertake leverage are required to submit the reports on a monthly basis. The formats for such reports are provided as a part of the said circular. All AIFs shall submit the report irrespective of whether or not the AIF has started activity.  

    Currently, all AIFs shall send reports to SEBI by email to aifreporting@sebi.gov.in. No physical reports are required to be filed with SEBI.

    For more information, click here.

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  • What are Category III AIFs?

    Alternate Investment Funds (AIFs), which employ diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives. Various types of funds such as hedge funds, PIPE Funds, etc. are registered as Category III AIFs.

    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 currency of borrowing in case of ECBs?

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

    For more information, click here.

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

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

    For more information, click here.

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  • Can External Commercial Borrowing be used for importing services?

    No, ECB is not permitted for import of services.

    For more information, click here.

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

    1) Investment in real estate or purchase of land

    2) Investment in capital market.

    3) Investment in capital market.

    For more information, click here.

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  • How can one raise loans through ECB?

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

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

    For more information, click here 

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  • What are the various types of ECB?

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

    For more information, click here.

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

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

    For more information, click here.

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

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

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

    For more information, click here. 

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

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

    For more information, click here.

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  • What are the routes ECB can be raised in?

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

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  • Are Non-Resident Indians allowed to make investments in India?

    An NRI can invest in capital of Indian companies on non-repatriation basis provided:

    • The amount is invested by inward remittance or out of NRE/FCNR(B)/NRO account maintained with Authorized Dealers/Authorized banks. 
    • The entity is not engaged in agricultural/plantation or real estate business or construction of farmhouses or dealing in Transfer of Development Rights.
    • Amount invested not eligible for repatriation outside India. For investments on a repatriable basis, provisions of FDI policy apply.

    For more information, click here.

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

    The following documents are required for sale of shares by a person resident in India:

    (i) Consent letter duly signed by the seller and buyer or their duly appointed agent indicating the details of transfer i.e. number of shares to be transferred, the name of the investee company whose shares are being transferred and the price at which shares are being transferred. In case there is no formal Sale Agreement, letters exchanged to this effect may be kept on record.

    (ii) Where consent letter has been signed by their duly appointed agent, the Power of Attorney Document executed by the seller/buyer authorizing the agent to purchase/sell shares.

    (iii) The shareholding pattern of the investee company after the acquisition of shares by a person resident outside India showing equity participation of residents and non-residents category-wise (i.e. NRIs/OCBs/foreign nationals/incorporated non-resident entities/FIIs, FPIs) and its percentage of paid up capital obtained by the seller/buyer or their duly appointed agent from the company, where the sectoral cap/limits have been prescribed.

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

    (v) Copy of Broker’s note if sale is made on Stock Exchange.

    (vi) Undertaking from the buyer to the effect that he is eligible to acquire shares/convertible debentures under FDI policy and the existing sectoral limits and Pricing Guidelines have been complied with.

    (vii) Undertaking from the FII/sub account to the effect that the individual FII/ Sub account ceiling as prescribed by SEBI has not been breached, till it gets registered as FPI.

    Please refer to subsection 5.1 of 'section 1' of Annexure-3 of Consolidated FDI Policy at link for more information.

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  • What are the regulations on Remittance on winding up/liquidation of Companies?

    AD Category-I banks have been allowed to remit winding up proceeds of companies in India, which are under liquidation, subject to payment of applicable taxes. Liquidation may be subject to any order issued by the court winding up the company or the official liquidator in case of voluntary winding up under the provisions of the Companies Act 2013 as applicable. AD Category-I banks shall allow the remittance provided the applicant submits:

    a) No objection or Tax clearance certificate from Income Tax Department for the remittance.

    b) Auditor's certificate confirming that all liabilities in India have been either fully paid or adequately provided for.

    c) Auditor's certificate to the effect that the winding up is in accordance with the provisions of the Companies Act, as applicable.

    d) In case of winding up otherwise than by a court, an auditor's certificate to the effect that there are no legal proceeding spending in any court in India against the applicant or the company under liquidation and there is no legal impediment in permitting the remittance.

    Please refer to subsection 1.1(iii) of Annexure-6 of Consolidated FDI Policy at link for more information.

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  • Where can complaints against listed company be registered?

    SEBI Complaints Redress System (SCORES) is an online platform designed to help investors lodge their complaints online with SEBI pertaining to securities market  against listed companies and SEBI registered intermediaries. All complaints received by SEBI against listed companies and SEBI registered intermediaries are dealt through SCORES.

    For more information, click here

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  • What is the list of case where prior approval is needed by RBI to transfer capital instruments?

    The following cases require prior approval of RBI:

    • Transfer of capital instruments from resident to non-residents by way of sale where:
      • Transfer is at a price which falls outside the pricing guidelines specified by RBI
      • Transfer of capital instruments by the non-resident acquirer involving deferment of payment of the amount of consideration.
    • Transfer of any capital instrument, by way of gift by a person resident in India to a person resident outside India. 

    For more information, click here.

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  • What is the capability criteria concerning the Trustee in InvITs?

    Eligibility criteria for the grant of certificate for a trustee in the Infrastructure Investment Trusts (InvITs) are

    1. That the trustee is registered with SEBI under SEBI (Debentures Trustees) Regulations, 1993 and is not an associate of the sponsor or manager
    2. That the trustee has such wherewith with respect to infrastructure, personnel, etc. to the satisfaction of SEBI and in accordance with circulars specified by the Board.

    For more information, click here

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  • What is Foreign investment facilitation board?

    The Foreign Investment Facilitation Portal (FIFP) is the new online single point interface of the Government of India for investors to facilitate Foreign Direct Investment. This portal is being administered by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry.

    For more information, click here

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  • What is the duration within which capital instruments need to be issued, post receiving inward remittances?

    The capital instruments should be issued within 180 days from the date of receipt of the inward remittance received through normal banking channels including escrow account or by debit to the NRE/FCNR (B) account of the non-resident investor. In case, the capital instruments are not issued within this time, the amount received should be refunded immediately to the non-resident investor by outward remittance through normal banking channels or by credit to the NRE/FCNR (B) account, as the case may be. Non-compliance to this would be reckoned as a contravention under the Foreign Exchange Management Act and would attract penal provisions. In exceptional cases, refund of the amount outstanding beyond 180 days from the date of receipt may be considered by the Reserve Bank of India on the merits of the case.

    For more information, click here

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  • What are the guidelines to be followed in the event of a delay in issuing capital instruments?

    If the capital instruments are not issued by the Indian company within 60 days from the date of receipt of the inward remittance, the amount so received must be refunded to the person concerned by outward remittance through banking channels or by credit to the person’s Non-Resident External (NRE)/ Foreign Currency Non-Resident (FCNR) (B) accounts, as the case may be, within 15 days from the date of completion of 60 days.

    Non-compliance of instructions shall be a contravention of Foreign Exchange Management Act 20 (R) notwithstanding the fact that interest for delayed refund has been paid as per the Companies Act, 2013.

    For more information, click here

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  • What is procedure of issuing Foreign Currency Convertible Bonds?

    A.  For listed companies

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

    B. For unlisted companies

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

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  • What is the 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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  • Is there any standard format of application to avail MUDRA loans?

    Yes. In respect of Shishu category, an one page application format has been designed which has been posted in MUDRA website. In respect of Kishor and Tarun category, a 3 page indicative application format has been designed and the same is also posted in MUDRA website.

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  • What does the MUDRA scheme entail?

    MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution being set up by the Government of India under Pradhan Mantri Mudra Yojana (PMMY) for development and refinancing micro unit enterprises. It was announced by the Hon’ble Finance Minister while presenting the Union Budget for 2015-16. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various last-mile financial institutions like banks, non-banking financial institutions (NBFC) and micro finance institutions (MFI).

    For more information, click here.

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  • Is there any requirement for a life insurance for MUDRA scheme?

    Life insurance is not required for loans under PMMY.

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  • Who are the objective customers of MUDRA/ What sort of borrowers are qualified for help from MUDRA?

    Non–Corporate Small Business Segment (NCSB) comprising of millions of proprietorship / partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits/ vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas.

    For more information, click here.

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  • What are the various types of loan options available under Pradhan Mantri MUDRA Yojana?

    Under MUDRA scheme, the following loans are available to eligible company:

    • Shishu: covering loans upto INR 50,000
    • Kishor: covering loans above INR 50,000 and upto INR 5 lakh
    • Tarun: covering loans above INR 5 lakh and upto INR 10 lakh

    For more information, click here

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  • What is the rate of interest on MUDRA loans?

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

    Please refer to link for more information.

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  • What is Pradhan Mantri Mudra Yojana?

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

    For more information, click here.

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

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

    Please refer to link for more information

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

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

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

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

    For more information, click here.

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  • What is SEBI takeover code?

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

    For more information, click here.

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

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

    For more information, click here

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

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

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

    For more information, click here.

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  • 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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  • 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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  • How does a registration of design stop other people from exploiting?

    Once a design is registered, it gives the legal right to bring an action against those persons (natural/legal entity) who infringe the design right, in the Court not lower than District Court in order to stop such exploitation and to claim any damage to which the registered proprietor is legally entitled.

    For more information, click here.

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  • Whether it is possible to transfer the right of ownership for a design under The Design Act 2000?

    Yes, it is possible to transfer the right through assignment, agreement, transmission with terms and condition in writing or by operation of law. However, certain restrictive conditions not being the subject matter of protection relating to registration of design should not be included in the terms and condition of the contract/agreement etc.

    For more information, click here.

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  • What is the object of registration of Designs under the Design Act?

    Object of the Design Act is to protect new or original designs so created to be applied or applicable to particular article to be manufactured by Industrial Process or means.

    For more information, click here.

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  • Can the application for registration of design be filed by the applicant himself only or through a professional person under the Design Act 2000?

    The application for registration of design can be filed by the applicant himself or through a professional person (i.e. patent agent, legal practitioner). However, for the applicants not resident of India an agent residing in India has to be employed.

    For more information, click here.

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  • How to get information on registration of design?

    After registration of designs the best view of the article along with other bibliographic data will be notified in the Official Journal of The Patent Office, which is being published on every Friday.

    For more information, click here.

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  • What is defined as an article under the Designs Act?

    Under the Designs Act, 2000 the "article" means any article of manufacture and any substance, artificial, or partly artificial and partly natural; and includes any part of an article capable of being made and sold separately.

    For more information, click here.

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  • Can the same applicant make an application for the same design again, if the prior application has been abandoned?

    Yes, the same applicant can apply again since no publication of the abandoned application is made by the Patent Office, provided the applicant does not publish the said design in the meanwhile.

    For more information, click here.

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  • What is the penalty for using a registered design under the design act?

    If anyone contravenes the copyright in a design, he is liable for every offence to pay a sum not exceeding INR25,000/- to the registered proprietor subject to a maximum of INR50,000/- recoverable as contract debt in respect of any one design.

    For more information, click here.

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  • What is meant by ‘Design’ under the Designs Act, 2000?

     ‘Design’ means only the features of shape, configuration, pattern or ornament or composition of lines or colour or combination thereof applied to any article whether two dimensional or three dimensional or in both forms, by any industrial process or means, whether manual, mechanical or chemical, separate or combined, which in the finished article appeal to and are judged solely by the eye, but does not include any mode or principle or construction or anything which is in substance a mere mechanical device, and does not include any trade mark.

    For more information, click here.

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  • What are the benefits of registering a trademark?

    The registration of a trademark confers upon the owner the exclusive right to the use the trademark in relation to the goods or services in respect of which the mark is registered and to indicate so by using the symbol (R) and seek the relief of infringement in appropriate courts in the country. The exclusive right is however subject to any conditions entered on the register such as limitation of area of use etc. Also, where two or more persons have registered identical or nearly similar marks due to special circumstances, such exclusive right doesn't operate against each other.

    For more information, click here.

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  • What are the formalities and government fees for major trademark transactions?

    1. For filing new applications there are prescribed forms depending on the nature of application such as Form TM-1, TM-2, TM-3, TM-8, TM-51 etc. Fees: INR 4000/-
    2. To file a Notice of Opposition to oppose an application published in the Trade Marks Journal (FormTM-5). Fees: INR 2,500/- for each class covered<
    3. For Renewal of a Regd. trademark (Form TM-12). Fees: INR 5,000/-
    4. Surcharge for belated renewal (Form TM-10). Fees: INR 3,000/-
    5. Restoration of removed mark (Form TM-13) Fees: INR 5,000/-
    6. Application for rectification of a registered trademark (Form TM-26) Fees: INR 3,000/-
    7. Legal Certificate (Form TM-46) (Providing details of entries in the Register) Fees: INR 500/-
    8. Copyright search request and issuance of certificate (Form TM-60) Fees: INR 5,000/-.

    For more information, click here

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  • What are the types of trademarks in India?

    Following are the types of trademarks in India:

    1. Any name (including personal or surname of the applicant or predecessor in business or the signature of the person), which is not unusual for trade to adopt as a mark.
    2. An invented word or any arbitrary dictionary word or words, not being directly descriptive of the character or quality of the goods/service.
    3. Letters or numerals or any combination thereof.
    4. The right to proprietorship of a trademark may be acquired by either registration under the Act or by use in relation to particular goods or service.
    5. Devices, including fancy devices or symbols
    6. Monograms
    7. Combination of colors or even a single color in combination with a word or device
    8. Shape of goods or their packaging
    9. Marks constituting a 3- dimensional sign.
    10. Sound marks when represented in conventional notation or described in words by being graphically represented.

    For more information, click here. 

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

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

    For more information, click here.

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

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

    For more information, click here.

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  • What are the contents of the Patent Office Journal?

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

    For more information, click here.

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

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

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

    For more information, click here.

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  • What is a Patent?

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

    For more information, click here.

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

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

    For more information, click here.

     

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  • What can be patented?

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

    For more information, click here.

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

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

    For more information, click here.

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

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

    For more information, click here.

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

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

    For further details please access following link.

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

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


    For further details please access following link.

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

    The maximum number of workers are Ten.

    For more information, click here.

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

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

    For more information, click here.

     

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

    Payment can be made online through shram Suvidha Portal.

    For more information,click here.

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

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


    For further details please access following link.

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

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

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

    For more information, click here.

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

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

    • Small Establishment
    • Very Small Establishment

    For more information, click here. 

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

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

    For more information, click here.

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

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


    For further details please access following link.

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

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

    For more information, click here.

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

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

    For more information, click here.

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

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

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

                For more information, click here.  

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  • What is the meaning of a voluntary open offer?

    A voluntary open offer under Regulation 6, is an offer made by a person who himself or through persons acting in concert, if any, holds 25% or more shares or voting rights in the target company but less than the maximum permissible non-public shareholding limit.

    For more information, click here.

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  • Does one need to notify CCI in case they are acquiring less than 25% of equity shares of a listed company from a secondary market?

    The acquisition of up to 25% shares where the acquirer does not acquire control and the acquisition is solely as an investment or in ordinary course of business, need not normally be notified to the CCI for prior approval.

    For more information, click here.

     

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  • Do all acquisitions of shares in excess of the prescribed limits and/or control lead to an open offer?

    No, in respect of certain acquisitions, SAST Regulations, 2011 provide exemption from the requirements of making an open offer, subject to certain conditions being fulfilled. For example, acquisition pursuant to inter- se transfer of shares between certain categories of shareholders, acquisition in the ordinary course of business by entities like underwriter registered with SEBI, stock brokers, merchant bankers acting as stabilizing agent, Scheduled Commercial Bank (SCB), acting as an escrow agent, etc.

    For further details please access following link. 

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  • What are the applicable competition laws/rules/regulations in respect of merger, amalgamations and acquisition transactions?

    Following statutory provisions apply to mergers, amalgamations and acquisitions from competition law perspective:
    1) Competition Act, 2002.
    2) The Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011.
    3) The Competition Commission of India (General) Regulations, 2009:
    i) Notification No. S.O. 93(E) dated January 8, 2013
    ii) Notification No. S.O. 673(E) dated March 4, 2016
    iii) Notification No. S.O. 674(E) dated March 4, 2016
    iv) Notification No. S.O. 675(E) dated March 4, 2016
    v) Notification No. S.O. 988(E) dated March 29, 2017
    vi) Notification No. S.O. 2039(E) dated June 29, 2017
    For further details please access following link.

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  • What is the validity of an open offer?

    Ten days

    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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  • How are exports treated under GST?

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

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

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

    Clearly mention the following:

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

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  • Will stamp duty be charged on off-market transfer of securities without consideration such on gift, legacy transfer etc?

    No, Section 21 of the Amended Indian Stamp Act read with sub-section 16B of Section 2 clearly indicates that stamp duty is to be collected on market value which is based on price or consideration involved.

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

     

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

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

    For more information, click here.

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

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

    For more information, click here

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

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

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

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

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

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  • What is the meaning of presumptive taxation scheme?

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

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

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

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

    Other corporate taxpayers: 30 September of the subsequent year

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  • What are the major advantages of IGST model?

    The major advantages of IGST model are

    • Maintenance of uninterrupted ITC chain on inter-State transactions
    • No upfront payment of tax or substantial blockage of funds for the inter-state supplier or recipient
    • No refund claim in exporting State, as ITC is used up while paying the tax
    • Self-monitoring model
    • Model takes ‘Business to Business’ as well as ‘Business to Consumer’ transactions into account

    For more information, click here 

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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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  • .Introduction of “Minimum 5 years of experience in the field related to boilers for BOE” in contradiction to Rule 31 of the BOE Rules, 2011 relating to age, qualifications and experience for BOE?

    Rule 31 of the BOE Rules, 2011 provides for minimum eligibility criteria i.e. age, qualifications and experience for obtaining a certificate of proficiency and operate a boiler as a Boiler Operation Engineer. The said criteria is Stated for both, Diploma and Degree Holders.

    However, under BRAP 2019, distinction form the qualifications under Rule 31 of the BOE Rules, 2011 has been made in relation to third-party certification. For the purpose of issuing/granting third-party certification, only a BOE who holds a degree/is a graduate in Mechanical/ Production/ Power Plant/ Metallurgical engineering from a recognised institution and has minimum 5 years of experience in the field related to boilers is eligible. The said reform excludes diploma holders to grant third-party certificate.

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  • What should be reflected in metadata Record of Rights (ROR) at all Revenue Department offices online in public domain for all areas of the State/UT?

    The metadata shall reflect ownership details and history of ownership of land.

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  • Are there any specific restriction on BOEs to conduct third-party inspections?

    There are no restrictions on BOE if they are authorized under section 34(3) of the Boilers Act 1923.

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  • What is the process for integration of the data pertaining to cases pending/resolved before the Civil Courts?

    Data pertaining to cases pending/resolved before the Civil Courts is available with the Court Registry or respective filing section(s) of the Revenue/District Courts and High Court in the State. The same falls within the purview of the State and should be integrated/ linked with the record of each parcel of land.

    Further, it has been represented by some States that integration of land records and civil court case data is under consideration of the Supreme Court ecommittee. The Case Information Management System will include details of land in relation to civil court case data. In this regard, the States/UT's are advised to pursue the same for implementation with the Supreme Court e-committee. DIPP will assist States/UTs in this regard, as is required.

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  • Whether both registration and renewal feature required to be developed?

    The State shall develop feature only for registration under Shops and Establishments Act. The “Registration and renewal under The Shops and Establishments Act” refers only to the main heading of the reforms.

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  • When a user enters the survey number/property identification number on the website, the information like land transaction deed, property tax, revenue court case details and civil court case data can be shown on a single web-page of the website?

    Details of land transaction deed, property tax etc. must be displayed on a single web page on one website in a consolidated format.

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  • .Should requirement for renewal of registration under Shops and Establishments Act be eliminated?

    Yes. The State should encourage voluntary update of information by the establishment and remove requirement for renewal of registration under Shops and Establishments Act

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  • Which Departments would fall under the term “Departments involved” as Stated in reform action plan point 1-sub point number (iii)?

    The “Departments involved” means the Departments whose clearances/ approvals/ NOCs are required prior to applying for a particular service.

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

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

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

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

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