• What will be the treatment of restricted items?

    Please refer to CBIC instruction issued vide F.No. 450/147/2015-Cus.IV dated 26th February 2016 in the matter where it has been clarified that all regulatory checks shall be applied at the into bond stage for a bill of entry for warehousing. Thus all compliances are required before the goods can be utilized in a Section 65 warehouse.

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  • How is hazardous cargo to be treated?

    Hazardous cargo has to comply with all extant laws. Operating under Section 65 does not exempt units from compliance to any applicable laws.

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  • Can an existing Private warehouse licensee apply for Section 65 permission or do they have to file a new application?

    Please refer to Para 4 of Circular No. 34/2019-Customs dated 1st October 2019 wherein it has been clarified that applicants can seek a license under section 58 and permission to operate under Section 65 synchronously, or request for permission under Section 65, if they already have a warehouse licensed under Section 58.

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  • At what stage is PGA clearance required for Bills of Entry relating to warehousing?

    Please refer to CBIC instructions issued vide F.No. 450/147/2015-Cus.IV dated 26th February 2016 in the matter where it has been clarified that all regulatory checks shall be applied at the into bond stage for a bill of entry for warehousing.

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  • Regulation 7 of MOOWR 2019 requires that a person who has been granted permission under regulation 5 shall appoint a warehouse keeper who has sufficient experience in warehousing operations and customs procedures to discharge functions on his behalf. Can a Customs broker be appointed as a warehouse keeper?

    Yes, a person who has passed the examination referred to in regulation 6 or regulation 13 of the Customs Broker Regulations, 2018 may be appointed as a warehouse keeper. There is also no bar in appointing any person who has sufficient experience in warehousing operations and customs procedures.

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  • What is the procedure for termination of operations in the bonded warehouse and surrender of premises license? Whether payment of duty is required on inventory lying in the premises, particularly, if such goods are proposed to be exported in the near future?

    Since the unit operating under Section 65 is also licensed as a Private Bonded warehouse under Section 58 of the Customs Act, 1962, 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. Thus duty on the remaining bonded inventory needs to be paid before surrender of license. In case the bonded goods are desired to be exported, the same needs to be done before surrender of the license.

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  • Can existing AEOs continue to get AEO benefits once they switch over to MOOWR from DTA, EOU units?

    Operating under Section 65 has no effect on AEO status. All benefits available as an AEO continue notwithstanding operations under Section 65.

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  • Whether at the time of filing the ex-bond Bill of Entry, the importer can claim exemption from customs duties as may be applicable under various Customs Tariff notifications?

    As per Section 15(1)(b) of the Customs Act 1962, the rate of duty in case of goods cleared from a warehouse shall be the rate on the date on which a bill of entry for home consumption is presented. Thus, the importer can claim exemption from customs duties under various Customs Tariff notifications as may be applicable on the date on which a Bill of Entry for home consumption is presented.

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  • How would the valuation of the imported inputs be done for the purpose of payment of Customs duty in case of DTA clearances?

    The valuation of imported inputs for the purpose of payment of Customs duty shall be as per Section 14 and Section 15 (1)(b) of the Customs Act 1962.

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

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

    For more information, click here

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

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

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

    For more information, click here

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  • Do I need a visa to go to India?

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

    The detailed list can be accessed at link.

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

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

    Visa Fees will not be refunded in this situation.

    For more information, click here

     

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  • Is PAN and AADHAAR mandatory?

    Yes. The companies (incorporation) rules notified has liberalized many requirements in respect of Proof of Identity and Proof of residence in respect of Subscribers and Directors. The Companies (Incorporation) third Amendment Rules dated 27th July 2016 has relaxed the mandatory attachment of proof of identity and residence in respect of a subscriber having a valid DIN.
    For further details please access following link.

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  • What financial criteria are required to be fulfilled for setting-up a BO/LO (Branch Office or Liaison Office) in India?

    The non-resident entity applying for a BO/LO in India should have a financially sound track record as below:

    • For BO: A profit making track record during the immediately preceding five financial years in the home country and net worth of not less than US$100,000 or its equivalent
    • For LO: A profit making track record during the immediately preceding three financial years in the home country and net worth of not less than US$50,000 or its equivalent

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  • Why are Digital Signature Certificates needed?

    Like physical documents being signed manually, electronic documents(such as e-forms) are required to be signed digitally using a Digital Signature Certificate (DSC).

    For more information, click here.

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  • Can provisional DIN be utilized for registration of DSC at MCA portal?

    No, director must have an approved DIN to register the DSC on MCA portal.
    For further details please access following link.

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  • Can OPCs be incorporated using SPICe forms?

    Yes. Form INC-2 is no longer be available for filing.
    For further details please access following link.

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  • When should the first auditors be appointed for a newly incorporated entity?

    The first auditors should be appointed by the board within 30 days of incorporation of the company.  In case of failure by the board to appoint auditors, the auditors shall be appointed by the shareholders in general meeting within 90 days from the expiry of the 30 days period

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  • What are the activities that are permitted to be undertaken by Liaison Office?

    The list of activities provided by the RBI for the LO to undertake is as follows:

    • Representing the parent company / group companies in India
    • Promoting export / import from / to India
    • Promoting technical/ financial collaborations between parent / group companies and companies in India
    • Acting as a communication channel between the parent company and Indian companies

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  • What is the time limit for filing form INC-6?

    Form INC-6 shall be filed within 30 days in case of voluntary conversion (if any One Person Company wants to convert itself into private/public company then also it can voluntarily apply through Form INC-6 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 fifty lakh rupees or its average annual turnover).
    For further details please access following link.

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  • Can more than one Liaison Office be set up?

    Yes. Requests for establishing additional Liaison Offices may be submitted through fresh FNC form duly signed by the authorized signatory of the foreign entity in the home country to the Reserve Bank of India.

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  • How long will the directors be liable for the offences occurred during his tenure?

    A director shall be liable for the offences / non-compliances occurred during his tenure even after his resignation and disassociation with the company.

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  • What is the procedure for making portfolio investments in India for a Non-Resident Indian?

    An NRI needs to apply to a designated branch of a bank, which deals in Portfolio Investment. An NRI can purchase shares up to 5% of the paid-up capital of an Indian Company on a fully diluted basis. All NRIs taken together cannot purchase more than 10% of the paid-up value of the Company. The aggregate limit of up to 24%, with the approval of its Board of Directors and its General Body through a resolution and a special resolution, respectively.

    For more information, click here.

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  • What is the FDI Policy for Asset Reconstruction Companies?

    Up to 100% FDI is permitted for Asset Reconstruction Companies registered with Reserve Bank of India without government route. 

    For more information, click here.

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  • Can one increase the Company's authorized capital to get more external funding?

    The authorized capital of a Company can be increased at any time as per the Companies Act, 2013 and in case the Article of Association does not allow this, the AoA can be amended by passing a “special resolution”. One may also consider getting External Commercial Borrowings.

    For more information, click here.

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  • What are the pricing guidelines to be complied with given the scenario of transfer to shares from non-resident to resident?

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

    Unlisted Securities: Price to be not more than fair value worked out as per any internationally accepted pricing methodology for valuation of shares on arm’s length basis

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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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  • Could a qualified borrower raise crisp External Commercial Borrowings under Track II for reimbursement of existing Rupee named External Commercial Borrowings?

    Refinancing of Rupee denominated ECB with Foreign Currency denominated ECB under Track II is not permitted.

    For more information, click here

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  • What does the term framework division mean with the end goal of ECB?

    For the purpose of raising ECB, Infrastructure Sector has the same meaning as given in the Harmonised Master List of Infrastructure sub-sectors approved by the Government of India vide Notification F. No. 13/06/2009-INF as amended / updated from time to time. Further, for the purpose of ECB, Exploration, Mining and Refinery sectors are also deemed as in the infrastructure sector.

    For more information, click here.

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  • What is the currency in which ECBs can be raised?

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

    For more information, click here.

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  • Can External Commercial Borrowing be used for making contribution in Limited Liability Partnership?

    No, it is not permitted under any track.

    For more information, click here

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

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

    For more information, click here.

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

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

    For more information, click here.

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  • Can External Commercial Borrowing be used for importing services?

    No, ECB is not permitted for import of services.

    For more information, click here.

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

    1) Investment in real estate or purchase of land

    2) Investment in capital market.

    3) Investment in capital market.

    For more information, click here.

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  • How can one raise loans through ECB?

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

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

    For more information, click here 

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  • What documents to be submitted by a person resident in India for transfer of shares to a person resident outside India by way of gift?

    Documents to be submitted by a resident person for transfer of shares to a person resident outside India by way of gift:

    i) Name and address of the transferor (donor) and the transferee (donee).

    ii) Relationship between the transferor and the transferee.

    iii) Reasons for making the gift.

    iv) In case of Government dated securities and treasury bills and bonds, a certificate issued by a CA on market value of such security.

    v) In case of units of domestic mutual funds and units of Money Market Mutual Funds, a certificate from the issuer on the Net Asset Value of such security.

    vi) In case of shares and convertible debentures, a certificate from a Chartered Accountant on the value of such securities according to the guidelines issued by Securities & Exchange Board of India or as per any internationally accepted pricing methodology on arm’s length basis for listed companies and unlisted companies, respectively.

    vii) Certificate from the concerned Indian company certifying that the proposed transfer of shares/convertible debentures by way of gift from resident to the non-resident shall not breach the applicable sectoral cap/ FDI limit in the company and that the proposed number of shares/convertible debentures to be held by the non-resident transferee shall not exceed 5 per cent of the paid up capital of the company.

    viii) An undertaking from resident transferor that value of security to be transferred together with any security already transferred by transferor, as gift, to any person residing outside India does not exceed the rupee equivalent of $ 50,000during a financial year*.

    ix) A declaration from donee accepting partly paid shares or warrants that donee is aware of the liability as regards calls in arrear and consequences thereof.

    Please refer to 'section 2' of Annexure-3 Consolidated FDI Policy at link for more information.

    *RBI’s A.P. (DIR Series) Circular No. 14 Dated 15.09.2011

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  • What is a ‘Foreign Institutional Investor’ ?

    An entity established or incorporated outside India which proposes to make investment in India and which is registered as a FII in accordance with the Securities and Exchange Board of India (SEBI) (Foreign Institutional Investor) Regulations 1995.

    For more information, click here.

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  • Is transfer of shares to non-residents/ NRIs permitted as per the FDI policy?

    General permission is granted to non-residents/ NRIs for acquisition of shares by way of transfer in the following situations:

    1) Transfer of shares in the investee company from one non-resident to another non-resident in sectors which are under automatic route. Government approval is required for transfer of stake from one non-resident to another non-resident in sectors which are under Government approval route

    2) NRIs may transfer by way of sale or gift shares or convertible debentures to another NRI

    3) Person resident outside India can transfer any security to a person resident in India by way of gift

    4) A person resident outside India can sell shares and convertible debentures of an Indian company on a recognized Stock Exchange in India through a registered stock broker or a registered merchant banker

    5) A person resident in India can transfer by way of sale, shares/ convertible debentures (including transfer of subscriber’s shares), of an Indian company under private arrangement to a person resident outside India, subject to the FDI Policy guidelines

    6) Transfer of shares/convertible debentures, by way of sale under private arrangement by a person resident outside India to a person resident in India, subject to the FDI guidelines

    7) The above mentioned situations also covers transfer by a resident to a non-resident of shares/convertible debentures of an Indian company, engaged in an activity earlier covered under the Government Route but now falling under Automatic Route, as well as transfer of shares by a non-resident to an Indian company under buyback and/or capital reduction scheme of the company.

    Please refer to section 4 of Annexure-3 of Consolidated FDI Policy at link for more information.

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  • What are the project funding options available in India?

    Projects in India can be financed through sources such as Bank loans, Private equity, Public subscriptions, Debt instruments and Government bonds.
    If you are a start-up or a SME, then you can register on Startup India. You can also register on India Investment Grid, which is our repository of investible projects.
     

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  • What is Sponsored American Depository System/ Global Depository System issue?

    An Indian company can sponsor an issue of ADR/ GDR. Under this mechanism, the company offers its resident shareholders a choice to submit their shares back to the company so that on the basis of such shares, ADRs/ GDRs can be issued abroad. The proceeds of the ADR/ GDR issue are remitted back to India and distributed among the resident investors who had offered their Rupee denominated shares for conversion.

    For more information, click here.

     

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  • Are NRIs(Non-Resident Indians) allowed to invest in sole proprietorship in India?

    NRI or a person of Indian origin (PIO) can invest in sole proprietorship / partnership firm on non-repatriable basis, except those in agricultural or plantation or real estate business, or in the print media sector. NRIs/PIO may seek prior permission of Reserve Bank for investment in sole proprietorship concerns/partnership firms with repatriation option.

    For more information, click here.

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

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

    • Ordinarily on sale or intended to be used together

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

    • Same general character

    For more information, click here.

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  • What is design registration in India?

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

    For more information, click here.

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

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

    For more information, click here.

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

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

    For more information, click here.

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

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

    For more information, click here

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  • Are the registered designs open for public inspection?

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

    For more information, click here.

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  • What is the duration of the registration of a design? Can it be extended?(Under The Design Act 2000)

    The duration of the registration of a design is initially ten years from the date of registration, but in cases where claim to priority has been allowed the duration is ten years from the priority date. This initial period may be extended by 5 years on an application made in Form-3 accompanied by prescribed fees to the Controller before the expiry of the said initial period of ten years. The proprietor of a design may make application for such extension even as soon as the design is registered.

    For more information, click here.

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  • What does the property mark indicate as per Indian laws?

    As per the Indian Penal Code, Sec. 479, a mark used for denoting that movable property belongs to a particular person is called a property mark. It means that marking any movable property or goods, or any case, package or receptacle containing goods; or using any case, package or receptacle, with any mark thereon. For example: The mark used by the Indian Railway on their goods may be termed as a Property Mark for easy identification of the owner.

    For more information, click here.

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  • Can the name and address of proprietor be changed in the design register?

    Name and address of the registered proprietor, or address for service can be altered in the register of designs provided this alteration is not made by way of change of ownership through conveyance i.e. deed of assignment, transmission, licence agreement or by any operation of law. Application in form-22 with prescribed fee should be filed to the Controller of Designs with all necessary documents in support of the application as required.

    For more information, click here

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  • What is the effect of registration of design?

    The registration of a design confers upon the registered proprietor ‘Copyright’ in the design for the period of registration. ‘Copyright’ means the exclusive right to apply a design to the article belonging to the class in which it is registered.

    For more information, click here.

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  • Does Indian Patent give protection worldwide?

    No. Patent protection is a territorial right and therefore, it is effective only within the territory of India. There is no concept of global patent. However, filing an application in India enables the applicant to file a corresponding application for same invention in convention countries or under PCT, within or before expiry of twelve months from the filing date in India. Patents should be obtained in each country where the applicant requires protection of his invention.

    For more information, click here.

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  • Does patent office help in finding users for patent? (Under The Patents Act 1970)

    The Patent Office has no role in the commercialization of patent. However, the information relating to patents is published in the e-journal of the Patent Office in the official website which is freely accessible to the public worldwide. This certainly helps the applicant to attract potential user or licensee. The Patent office also compiles a list of patents which have not been commercially worked in India.

    For further details please access following link.

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  • How can I apply for a patent?

    A patent application can be filed with Indian Patent Office either with provisional specification or with complete specification along with fee as prescribed in schedule I. In case the application is filed with provisional specification, then one has to file complete specification within 12 months from the date of filing of the provisional application.

    For more information, click here.

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  • Is there a possibility for early publication of patents?

    Yes, the applicant can make a request for early publication in Form 9 along with the prescribed fee.

    For more information, click here.

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  • What is the term of patent? (Under The Patents Act 1970)

    Term of every patent in India is 20 years from the date of filing of patent application, irrespective of whether it is filed with provisional or complete specification. However, in case of applications filed under PCT, the term of 20 years begins from International filing date.

    For further details please access following link.

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  • Is there provision for filling patent application electronically by online system?

    Yes, one can file patent applications through comprehensive online filing system at https://ipindiaonline.gov.in/epatentfiling/goForLogin/doLogin.

    For more information, click here.

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  • Does patent office help in finding users for patent?

    The Patent Office has no role beyond grant of patent. Since patents are private rights the patent owner is responsible for commercializing the patent either himself or through licensee. However, the information relating to grant of patent is published in the Patent Office journal and also published on the Patent Office website which is accessible to the public worldwide.

    For more information, click here.

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  • Is there any difference in the amount of fees to be paid by an individual or a legal entity for filing a patent application?

    Yes, the Patent Rules provides for different fee for individuals/Startups, SME‘s and legal entity. Details can be seen in the First Schedule of the Patents Rules, 2003 as amended from time to time.

    For more information, click here.

     

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  • When should an application for a patent be filed?

    An application for a patent can be filed at the earliest possible date and should not be delayed. An application filed with provisional specification, disclosing the essence of the nature of the invention helps to register the priority of the invention. Further, the application for patent should be filed before the publication of the invention and until then it should not be disclosed or published.

    For more information, click here.

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  • Can any invention be patented after publication or display in the public exhibition?

    Generally, an invention which has been either published or publicly displayed cannot be patented as such publication or public display leads to lack of novelty. However, under certain circumstances, the Patents Act provides a grace period of 12 months for filing of patent application from the date of its publication in a journal or its public display in an exhibition organised by the Government or disclosure before any learned society or published by applicant.

    For more information, click here.

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

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

    For more information, click here.

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

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

    For more information, click here.

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

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


    For further details please access following link.

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

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

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

    For more information, click here

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

    Registration fee: 

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

    For more information, click here

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

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

    For more information, click here

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

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


    For further details please access following link.

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

    The maximum number of workers are Ten.

    For more information, click here.

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

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

    For more information, click here.

     

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

    Payment can be made online through shram Suvidha Portal.

    For more information,click here.

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

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

    For more information, click here.

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

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

    For more information, click here.

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  • What are hostile bids under SEBI takeover code?

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

    For more information, click here.

     

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

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

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

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  • What is tax audit?

    Section 44AB gives the provisions relating to the class of taxpayers who are required to get their accounts audited from a chartered accountant. The audit under section 44AB aims to ascertain the compliance of various provisions of the Income Tax Law and the fulfilment of other requirements of the Income Tax Law. The audit conducted by the chartered accountant of the accounts of the taxpayer in pursuance of the requirement of section 44AB is called tax audit.
    The chartered accountant conducting the tax audit is required to give his findings, observation, etc., in the form of audit report. The report of tax audit is to be given by the chartered accountant in Form Nos. 3CA/3CB and 3CD. 
    As per section 44AB, following persons are compulsorily required to get their accounts audited :
    1) A person carrying on business, if his total sales, turnover or gross receipts (as the case may be) in business for the year exceed or exceeds US$ 145,050. This provision is not applicable to the person, who opts for presumptive taxation scheme under section 44AD and his total sales or turnover does not exceed US$ 290,100.
    2) A person carrying on profession, if his gross receipts in profession for the year exceed US$ 72,525. 
    3) A person who is eligible to opt for the presumptive taxation scheme of section 44AD  but claims the profits or gains for such business to be lower than the profits and gains computed as per the presumptive taxation scheme of section 44AD and his income exceeds the amount which is not chargeable to tax.
    4) If an eligible assesse opts out of the presumptive taxation scheme, after specified period, he cannot choose to revert back to the presumptive taxation scheme for a period of five assessment years thereafter.
    5) A person who is eligible to opt for the presumptive taxation scheme of section 44ADA but he claims the profits or gains for such profession to be lower than the profit and gains computed as per the presumptive taxation scheme and his income exceeds the amount which is not chargeable to tax.
    6) This provision is not applicable to the person, who opts for presumptive taxation scheme under section 44AD and his total sales or turnover does not exceed US$ 290,100.
    7) A person who is eligible to opt for the presumptive taxation scheme of sections 44AE but he claims the profits or gains for such business to be lower than the profits and gains computed as per the presumptive taxation scheme of sections 44AE.
    8) A person who is eligible to opt for the taxation scheme prescribed under section 44BB or section 44BBB but he claims the profits or gains for such business to be lower than the profits and gains computed as per the taxation scheme of these sections.
     
    Section 44BB is applicable to non-resident taxpayers engaged in the business of providing services or facilities in connection with or supplying plant and machinery on hire basis to be used in exploration of mineral oils. Section 44BBB is applicable to foreign companies engaged in the business of civil construction, erection of plant or machinery, or testing or commissioning thereof, in connection with a turnkey power project. 

    For detailed provision of 44AD, 44AE, 44ADA, 44BB and 44BBE, refer Sec 44 AB on the link.
     

     

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  • How will I know how much Income-tax I have to pay?

    ​​​The rates of Income-tax and corporate taxes are available in the Finance Act passed by the Parliament every year. You can also check your tax liability by using the free online tax calculator available at link.

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  • Who are the persons liable to take registration under the GST Law?

    Every supplier (including his agent) who makes a taxable supply, i.e., supply of goods and / or services which are leviable to tax under GST law and whose aggregate turn over in a financial year exceeds the threshold limit of INR 4 million is liable to register himself in the state or the union territory of Delhi or Puducherry from where he makes the taxable supply.

    In case of eleven special category states, this threshold limit for registration liability is INR 2 million.

    Besides, GST provisions mentions certain categories of suppliers who shall be liable to take registration even if their aggregate turnover is below the said threshold limit of INR 4 million.

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  • How are the applicable tax rates decided?

    The rates of Income-tax and corporate taxes are decided by the Finance Act passed by the Parliament every year. There is a free online tax calculator present at www.incometaxindia.gov.in where once can check his/her tax liability.

    For more information, click here.

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  • Is stamp duty applicable at multiple levels of a single transaction (on account of procedural requirements) and to which state government should the stamp duty amount be transferred in such cases?

    It should be ensured that a double incidence of stamp duty doesn’t occur on any transaction. Where, before being credited in the buyer’s Demat account, the securities were transferred from the Demat accounts of an issuer to the clearing corporation, member, etc., the stamp duty shall be transferred to the state government where the residence of the buyer is located.

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

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  • How early does one need to register under Goods and Service Tax?

    Time Limit for GST Registration:

    a) 30 days for Regular Person

    b) 5 days for Casual Person

    c) Territorial Waters: Supplier from the territorial waters of India shall obtain registration in the coastal State or Union territory where the nearest point of baseline is located.

    For more information, click here.

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  • What are the relevant tax registration under the Indian tax laws?

    All taxpayers in India are required to apply for and obtain their tax registration number, known as a Permanent Account Number (PAN). PAN is a pre-requisite to file income-tax returns and to open a bank account. PAN is also reported by the person withholding the tax in the withholding tax returns and thereafter issues withholding certificates enabling them to claim the credit of tax so deducted while filing the income-tax return in India.

    Further, every person liable to withhold tax at source or collect tax at source is also required to obtain Tax Deduction and Collection Account Number (TAN).

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  • What is transitional relaxation on tax on buybacks by listed companies?

    The Finance (No.2) Act 2019 has been extended to listed companies with effect from 5 July 2019. This created hardships for listed companies who had publicly announced buy-backs before 5 July 2019 but not completed it by that date. The Ordinance relaxes the applicability in respect of buy-backs by listed companies in reference of which public announcement of buyback as per regulatory norms has been made before 5 July 2019. Thus, the buy-back tax will apply in case of listed companies where public announcement of buyback is made on or after 5 July 2019.

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  • The amended provisions of the Stamp Act and Rules made thereunder will come into force from which date?

    The amended provisions of the Indian Stamp Act, 1899 brought through Finance Act, 2019 and Rules made thereunder shall come into force w.e.f 1st July, 2020.

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

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  • Can we offset the payment receivable from importer towards consultancy to be paid to him?

    You are permitted to capitalise the payments due from the foreign entity towards exports, fees, royalties or any other dues from the foreign entity for supply of technical know-how, consultancy, managerial and other services within the ceilings applicable. Capitalisation of export proceeds remaining unrealised beyond the prescribed period of realisation will require prior approval of the Reserve Bank of India.

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  • Can I surrender Import Export Code number if I do not wish to operate as Exporter Importer?

    If an IEC holder does not wish to operate allotted IEC number, he may surrender same by informing issuing authority. On receipt of such intimation, issuing authority shall immediately cancel it and electronically transmit it to DGFT and Customs authorities.

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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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  • Will multiple site visits which are a part of a single inspection be considered a violation of the reform criteria with respect to The Boilers Act 1923?

    Inspection for a boiler which requires more than one visit can be considered as one inspection and the same inspector can carry out the stages of inspections (in case of power boiler which requires thorough examination and Hydro testing on two different days, must be considered as one inspection). For subsequent inspections the State Government may advise/educate the boiler owner to approach Private Component Persons for carrying out the inspections of Boilers so that the system proposed in BRAP 2019 can be effectively implemented.

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  • What does “service wise approvals may be granted” refer to in subpoint (v) of the reform?

    This refers to the case where different approvals are granted in accordance with different timelines. The applicant should receive approvals in the Single Window System as and when they are given by the Department / Agency responsible.

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  • Is there a requirement of empanelment of Boiler Operation Engineer?

    No, there is no requirement of empanelment of BOE.

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  • If the provision for renewal of a License is no longer valid for State, how will State be evaluated for this point?

    If the renewal of license is no longer valid in the State, the State must provide appropriate evidence for the same. If another provision has been introduced, such as payment of periodic fee for retention of old license, the State must ensure the process is completely online. Evidence for the same must be provided as well.

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  • What is the limit (number of years) for the digitization of land transaction deed?

    The Reform aims at bringing ease of buying and registering property. The limitation law requires that records up to 30 years are available to the person to verify the title and encumbrances. In the current year, only 10 years of the same is proposed to be covered. Going slow on this reform will keep registering property a cumbersome process for many years. Therefore, the number of years are expected to be 15, 20 and 30 years in next 3 years.

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

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

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

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

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

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

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

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

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

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

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