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

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

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

    For more information, click here

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  • Do I need a visa to go to India?

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

    The detailed list can be accessed at link.

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

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

    Visa Fees will not be refunded in this situation.

    For more information, click here

     

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  • What is the processing time for Indian Visa?

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

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

    For more information, click here

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

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

    For more information, click here

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  • What activities are permissible under Tourist Visa?

    Tourist Visa can be granted to a foreigner whose sole objective of visiting India is recreation, sight seeing, casual visit to meet friends or relatives, attending a short-term yoga programme, etc. and no other purpose/ activity. 

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  • What is the eligibility criteria to apply for an employment visa in India?

    An Employment visa is granted to a foreigner who is a highly skilled and/or qualified professional. The foreign national being sponsored for an employment visa in any sector should draw a gross salary in excess of Rs. 16.25 lakhs per annum.

    The salary threshold limit of Rs. 16.25 lakhs per annum will be worked out taking into account the salary and all other allowances paid to the foreign national in cash and also perquisites like rent free accommodation etc. which are included in the salary for the purpose of calculating income tax.

    For more information, click here

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

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

    For more information, click here.

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

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

    For more information, click here.

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

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

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

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

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

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

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

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

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

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  • Which act governs Company formation and operations?

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

    For more information, click here.

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

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

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  • Can an existing partnership firm be converted to LLP?

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

    For more information, click here.

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

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

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

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

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

    For more information, click here.

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  • What are Category II AIFs?

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

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

    For more information, click here

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

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

    For more information, click here

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  • What are Category I AIFs?

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

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

    For more information, click here

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

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

    For more information, click here

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

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

    For more information, click here.

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

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

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

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

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

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

    For more information, click here

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  • What does Alternative Investment Funds stand for?

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

    For more information, click here.

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

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

    For more information, click here

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

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

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

    For more information, click here

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  • Who are eligible lenders under ECB framework?

    Lender for ECB purposes should be:

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

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  • What does External Commercial Borrowing (ECB) denote?

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

    For more information, click here.

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  • What is the meaning of “all-in-cost”?

    All-in-cost shall include rate of interest, other fees, expenses, charges, guarantee fees, ECA charges, whether paid in foreign currency or INR but will not include commitment fees and withholding tax payable in INR. In the case of fixed rate loans, the swap cost plus spread should not be more than the floating rate plus the applicable spread

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  • What are the hedging requirements under External commercial borrowing?

    Companies in infrastructure sector, Non-Banking Financial Companies -Infrastructure Finance Companies (NBFC-IFCs), NBFCs-Asset Finance Companies (NBFC-AFCs), Holding Companies and Core Investment Companies (CICs) are eligible borrowers. These companies are required to:

    1. Have a board-approved risk management policy and will require to keep their ECB exposure hedged 100 per cent at all times in case the average maturity is less than 5 years.
    2. Further, the designated AD Category-I bank shall verify that 100 per cent hedging requirement is complied with during the currency of ECB and report the position to RBI through ECB 2 returns.
    3. Lastly, the entities raising ECB under the provisions of tracks I and II are required to follow the guidelines for hedging issued, if any, by the concerned sectoral or prudential regulator in respect of foreign currency exposure.

    For more information, click here

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  • What is the ceiling prescribed for ECB?

    ​​​​​​The ceiling prescribed

    • For TC is benchmark rate plus 250 basis points spread
    • For ECB is benchmark rate plus 450 basis points spread

    Benchmark rate in case of FCY ECB/TC refers to six-months London Inter-bank Offered rate (LIBOR) of different currencies or any other six-month interbank interest rate applicable to the currency of borrowing, for e.g., Euro Inter-bank Offered Rate (EURIBOR). Benchmark rate in case of Rupee denominated ECB/TC will be prevailing yield of the Government of India securities of corresponding maturity

     

     

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  • Can ECB be raised under Track III for general corporate purpose (including working capital)? What will be its minimum average maturity period?

     Yes, ECB can be raised under Track III (i.e. INR denominated ECB) for general corporate purpose (including working capital). The minimum average maturity period will be 3 years for ECB up to $ 50 million or equivalent and 5 years for ECB beyond $ 50 million or equivalent.

    For more information, click here.

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  • What are the conditions to be fulfilled in relation to Minimum Average Maturity Period (MAMP)?

    • ECB raised by manufacturing sector: One year (for ECB up to US$50 million or equivalent per FY)
    • ECB raised from foreign equity holder: Five years (if utilized for working capital purposes, general corporate purposes or repayment of rupee loans)
    • Others: Three years

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  • How can one channel External Commercial Borrowing loans?

    External Commercial Borrowing (ECB) can be raised either under the automatic route or under the approval route. For the automatic route, a case is examined by the Authorised Dealer (AD) Category-I bank. Under the approval route, the borrower is required to send the request to the Reserve Bank of India (RBI) through the AD for examination. While the regulatory provisions are mostly similar, some differences between the two routes include the amount of borrowing, eligibility of the borrowers and the permissible end-uses.

    For more information, click here.

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  • What are the requirements for converting External Commercial Borrowings/Lump entirety Fee/Royalty etc. into Equity?

    The conversion of External Commercial Borrowings (ECB) in convertible foreign currency into equity is subject to the following conditions:

    • The activity of the Company is covered under the Automatic Route for FDI or the Company has obtained Government approval for foreign equity
    • The foreign equity after conversion of ECB into equity is within the sectoral cap, if any Pricing of shares is as per the provision of section (2), Annexure 3 of the Consolidated FDI Policy
    • Compliance with the requirements prescribed under any other statute and regulation in force
    • The conversion facility is available for ECB availed under the Automatic or Government Route and is applicable to ECB, due for payment or not, as well as secured/unsecured loans availed from non-resident collaborators

    For more information, click here 

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  • What are the requirements in respect of currencies of ECB?

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

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

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

    For more information, click here.

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

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

    For more information, click here

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

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

    For more information, click here

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

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

    For more information, click here.

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

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

    For more information, click here.

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

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

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

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

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

    For more information, click here.

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

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

    For more information, click here.

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  • What is SEBI takeover code?

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

    For more information, click here.

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

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

    For more information, click here

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

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

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

    For more information, click here.

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  • Which are the intermediaries involved in an issue?

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

    Please refer to page 22 of link for more information.

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

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

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

    For more information, click here

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

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

    Please refer to page 9 of link for more information

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  • What does Depository Receipts mean?

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

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

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

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

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

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

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

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

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

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  • When are the taxpayers required to file accountant's report specified in Section 92E of the Income - tax Act, 1961?

    All the taxpayers are mandatorily required to file an accountant's report prepared by an independent professional through Form No. 3CEB for all international transactions irrespective of the value of international transactions and specified domestic transactions if the value exceeds INR 20 crore in a financial year.

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

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

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

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

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  • Which transaction is classified as “international transaction”?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    For more information, click here.

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  • What is the fee for getting work registered under the copyright act?

    The fee is not reimbursable in case of rejection of the application. The fee can be paid by postal order/demand draft/online payment payable to “registrar of copyrights, New Delhi. 

    For information on the fee for getting work registered under the copyright act, click here

     

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  • Where can I file application for registration of copyright for a work?

    The Copyright Office has been set up to provide registration facilities to all types of works and is headed by a Registrar of Copyrights and is located at 4th Floor Jeevan Deep Building, New Delhi- 110 001. The applications for registration of works can be filled at the counter provided at the Copyright Office from 2.30 P.M. to 4.30. P.M. from Monday to Friday. The applications are also accepted by post. On-line registration through “E-filing facility “has been provided from 14th February 2014, which facilitates the applicants to file applications at the time and place chosen by them.

    For more information, click here.

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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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  • 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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  • Is there a possibility to get a registered trademark removed?

    It can be removed on application to the Registrar on prescribed form on the ground that the mark is wrongly remaining on the register.

    For more information, click here.

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  • What does the trademark register contain?

    The register of trademark currently maintained in electronic form contains inter alia the trademark the class and goods/ services in respect of which it is registered including particulars affecting the scope of registration of rights conferred; the address of the proprietors; particulars of trade or other description of the proprietor; the convention application date (if applicable); where a trademark has been registered with the consent of proprietor of an earlier mark or earlier rights, that fact.

    For more information, click here.

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  • What are the sources of trademark laws?

    The national statues i.e., The Trade Marks Act, 1999 and rules made are as under:

    ·       International multilateral convention.

    ·       National bilateral treaty.

    ·       Regional treaty

    ·       Decision of the courts

    ·       Office practice reduced in Manuals and guidelines and rulings of the Courts.

    ·       Decision of Intellectual Appellate Board.

    ·       Text books written by academician ad professional experts

    For more information, click here.

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  • Is patent application once filed examined automatically?

     A patent application is not examined automatically after its filing. The examination is done only after receipt of the request of examination in Form 18 either from the applicant or from third party or Form 18A for expedited examination (under conditions as prescribed in the Rules).

    For more information, click here.

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  • Does Indian Patent given protection worldwide? (Under The Patents Act 1970)

    Patent protection is territorial right and therefore it is effective only within the territory of India. However, filling an application in India enables the applicant to file a corresponding application for same invention in conventional countries, within or before expiry of twelve months from filling data in India. Therefore, separate patent should be obtained in each country where the applicant requires protection of his invention in those countries. There is no patent valid worldwide.

    For further details please access following link.

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  • How can one find out that an invention is already patented? (Under The Patents Act 1970)

    The person concerned can perform a preliminary search on Patent Office website in the Indian Patent database of granted patent or Patent Office journal published every week. The public can conduct search free of charge on the website of Patent Office. The person concerned can also make a request for such information under section 153 of the Act.

    For further details please access following link.

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  • What are the criteria of patentability?

    An invention can become patentable subject matter must meet the following criteria:
     1) It should be novel.
     2) It should have inventive step or it must be non-obvious.
     3) It should be capable of industrial application.
     4) It should not fall within any of the provisions of sections 3 and 4 of the Patents Act 1970

    For more information, click here.

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  • When can the request for examination can be filed for patents?

    The request for examination can be filed within a period of 48 months from the date of priority or date of filing of the application whichever is earlier. For more details kindly refer to rule 24B of the Patents Rules 2003 as amended.

    For more information, click here.

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  • What is a Patent? (Under The Patents Act 1970)

    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 purpose without his consent.

    For further details please access following link.

     

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  • Where could one find a copy of the Patent Office Journal without purchasing the publication?

    The Patent Office e-journal is freely available on patent office site: www.ipindia.nic.in

    For more information, click here.

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  • What are then various stages involved in the grant of patent?

    After filing the applicant for the grant of patent, a request for examination is required to be made by the applicant or by third party and, thereafter, it is taken up for examination by the Patent Office. The first examination Report is issued to the applicant to give him an opportunity to correct the deficiencies in the application and meet the objections raised in the said report. The applicant must comply with the requirements within the prescribed time otherwise his application would be treated as deemed to have been abandoned.

    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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  • Is the employer obliged to employ people sponsored by employment exchanges under the act?

    No, the employer is not obliged to select or employ a person sponsored by the Employment Exchanges Act, 1959.

    For more information, click here.

     

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  • Earlier I employed 22 Labourers, now I have reduced to 18 workmen, whether my establishment has to continue with the Labour license or surrender under the Contract Labour (R&A) Act, 1970?

    Yes, your establishment will continue to be covered under the provisions of the Contract Labour (R&A) Act, 1970 for a period of one year from the day on which 20 or more workmen were lastly employed.


    For further details please access following link.

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  • What are the registers to be maintained under Act?

    Register showing the name of date of birth of every child so employed or permitted to work, hours and periods of work of any such child and intervals of rest, the nature of work of any such child.

    For more information, click here.

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  • Can an employee give up his rights under the minimum wages act?

    Any contract or agreement, whether made before or after the commencement of this Act, whereby an employee either relinquishes or reduces his right to a minimum rate of wages or any privilege or concession accruing to him under this Act shall be null and void. (Section 25).

    For more information, click here.

     

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  • What is the procedure for the issuance of a duplicate license under the Contract Labour (R&A) Act, 1970?

    A fee of  US$ 0.075 to be remitted along with a request under the Contract Labour (R&A) Act, 1970.


    For further details please access following link.

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  • What are the notices to be displayed under the Act and list of actions that are considered as misconduct at workplace?

    An abstract of  Section 3 and 14 of the Act in Local Language and English.
    List of actions are:

    •Willful insubordination or disobedience, whether or not in combination with another, of any lawful and reasonable order of a superior.
    •Going on illegal strike or abetting, inciting, instigating or acting in furtherance thereof;
    •Willful slowing down in performance of work, or abetment or instigation thereof;
    •Theft, fraud or dishonesty in connection with the employers’ business or property or the theft or property of another workman within the premises of the establishment;
    •Taking or giving bribes or any illegal gratification;
    •Habitual absence without leave, or absence without leave for more than ten consecutive days or overstaying the sanctioned leave without sufficient grounds or proper or satisfactory explanation;
    •Habitual breach of any Standing Order or any law applicable to the establishment or ant rules made there under;
    •Collection without the permission of the Manager of any money within the premises of the establishment except as sanctioned by any law for the time being in force;
    •Engaging in trade within the premises of the establishment;
    •drunkenness, riotous, disorderly or indecent behavior on the premises of the establishment;
    •Commission of any act subversive of discipline or good behavior on the premises of the establishment;
    •Habitual neglect of work, or gross or habitual negligence;
    •Habitual breach of ant rules or instruction for the maintenance and running of any department, or the maintenance of the cleanliness of any portion of the establishment;
    •Habitual commission of any act or commission for which a fine may be imposed under the Payment of Wages Act, 1936.
    •Canvassing for union membership, or the collection of union dues within the premises of the establishment except in accordance with any law or with the permission of the Manager
    •Willful damage to work in process or to any property of the establishment;
    •holding meeting inside the premises of the establishment without the previous permission of the Manager or except in accordance with the provisions of any la for the time being in force;
    •Disclosing to any unauthorised person any information in regard to the processes of the establishment which may come into the possession of the workman in the course of his work;
    •Gambling within the premises of the establishment;
    •Smoking or spitting on the premises of the establishment where it is prohibited by the employer;
    •Failure to observe safety instructions notified b the employer or interference with any safety device or equipment installed within the establishment;
    •Distributing or exhibiting within the premises of the establishment hand-bills, pamphlets, posters, and such other things or causing to be displayed  by means of signs or writing or other visible representation on any matter without previous sanction of the Manager;
    •Refusal to accept a charge-sheet, order or other communication served I accordance with these Standing Orders;
    •Unauthorised possession of any lethal weapon in the establishment.

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  • Can employees go to a civil court for recovering minimum wages payable under the minimum wages act?

    The Act prohibits Civil Courts from entertaining any suit for recovery of minimum wages payable under the Minimum Wages Act, 1948 (Section 24).

    For more information, click here.

     

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  • Is a subcontractor supposed to take License under the Contract Labour (R&A) Act, 1970?

    If principal employer endorses the name of sub-contractor in the agreement, after having Form V from principal employer, a subcontractor is requested to take license under the Contract Labour (R&A) Act, 1970.

    For further details please access following link.

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  • After what age can a person start working in India?

    In India, child below 14 years cannot be employed. However, there are following exceptions which includes non-hazardous family enterprises and child working as an artist in an audio-visual entertainment industry.

    Additionally, a child above 14 years but below 15 years of age can be employed only for 4.5 hours a day and cannot work during the night.

    For more information, click here.

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  • Is an employer required to maintain any register and record under the Minimum Wages Act, 1948?

    Every employer must maintain a muster-roll-cum-wage register and also a bound inspection book. (Rule 27 & 28) of the Minimum Wages Act, 1948.

    For more information, click here.

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

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

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

    For more information, click here.

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

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

    For more information, click here

     

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

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

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

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

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

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

    For more information, click here.

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

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

    For more information, click here.

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

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

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

                For more information, click here.  

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  • What is the meaning of a voluntary open offer?

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

    For more information, click here.

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

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

    For more information, click here.

     

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

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

    For further details please access following link. 

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  • What are the types of audit required under company law in India?

    Following types of audits are contemplated under company law:

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

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  • What is a deemed international transaction?

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

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

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

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

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

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

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

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

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

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

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  • What are the major direct taxes in India?

    Major direct taxes in India are:

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

    For more information, click here 

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

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

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

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

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

    For further details please access following link.

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  • What incomes are taxable under the Income Tax Act?

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

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

    For more information, click here.

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

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

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

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

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  • What is meant by Alternate Reporting Entity?

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

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

    Different kinds of duties of customs levied on imported goods are

    (i) Basic Customs Duty

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

    In addition, cess duty is leviable on certain goods.

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

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

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

    For more information, click here.

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  • What is the validity of an import authorization?

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

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  • We have exported in a foreign currency which does not appear in the list of customs. How can we calculate the foreign exchange received for discharging our export obligation?

    In such cases, total realised value in rupee as mentioned by bank in the eBRC should be converted into $ by using the $ or INR exchange rate prevailing on the date of realisation as published by customs through notification.

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  • What is the validity of IEC?

    An IEC allotted to an applicant shall have permanent validity unless cancelled by the competent authority. The IEC will cover all branches / divisions / units / factories of the applicant.

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  • What is custom duty and its different types ?

    Customs duty is the duty charged on goods on their importation into India or exportation out of India.

    There are two types of rates of duty of Customs:

    1. Ad valorem rate i.e., the duty is charged on the basis of value.

    2. Specific rate i.e., on the basis of quantity/number/ volume

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  • What does IEC stand for?

    IEC Stands for Importer Exporter Code.

    For more information, click here.

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  • How do I find HS Code for my product?

    If you want to know the HS Code, Click on ‘ITC HS Based Policy’ on the website of DGFT. A new window will open as ITC(HS) Query Form. Insert the name of the product in the description option to know the HS Code of your product. Similarly, if you want to know the product and are already aware of the HS Code, enter the ITC(HS) Code (e.g. 0324) option to know the product.

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  • What is the procedure for import under Government to Government agreement?

    Import of goods under Government to Government agreement may be allowed without an Authorisation or CCP on production of necessary evidence to satisfaction of Custom Authorities.

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  • What documents does a foreign national need to provide for obtaining Import Export Code?

    Non-resident Indians (NRI) have to follow the normal application procedure while applying for IEC. In addition, permission from RBI/ FIPB is needed in some cases.

    Further the following documents are also required for IEC code:

    •    Board Resolution

    •    Memorandum of Association

    •    copy of Passport

    •    All documents prescribed for Indian Citizen/ company/ Proprietorship firm

    For more information, click here.

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

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

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

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

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

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

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

    The reform does not refer to lift and escalator installation

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

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

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

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

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

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

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

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

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

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

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

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

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

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