• 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.

  • 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
  • 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
  • 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.

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

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

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

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

    1. A sum equal to 50% of the amount of tax payable on under-reported income
    2. A sum equal to 200% of the amount of tax payable on under-reported income where under-reported income is in consequence of any misreporting
  • Do the transfer pricing rules apply in respect of transactions between head office (HO) and a branch office/project office?

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

    For more information, click here.

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

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

     

  • 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

     

  • 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.

  • 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.

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

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

    For more information, click here.

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

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

    For more information, click here.

  • What is copyright?

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

    For more information, click here.

  • How can I get copyright registration for my Website?

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

    For more information, click here.

  • What does Intellectual Property entail?

    Intellectual Property is the Property, which has been created by exercise of Intellectual Faculty. It refers to creation of mind such as inventions, designs for industrial articles, literary, artistic work, symbols which are ultimately used in commerce. Intellectual Property rights allow the creators or owners to have the benefits from their works when these are exploited commercially. These rights are statutory rights governed in accordance with the provisions of corresponding legislation. Intellectual Property rights reward creativity & human endeavour which fuel the progress of humankind.The intellectual property is classified into seven categories i.e.

    1. Patent
    2. Industrial Design
    3. Trade Mark
    4. Copyright
    5. Geographical Indications
    6. Lay put designs of integrated circuits
    7. Protection of undisclosed information/Trade Secret according to TRIPs agreements

    For more information, click here.

  • Whether unpublished works are registered?(Under the Copyright Act 1957)

    Yes. Both published and unpublished works can be registered. Copyright in works published before 21st January, 1958, i.e., before the Copyright Act, 1957 came in force, can also be registered, provided the works still enjoy copyright. Three copies of published work may be sent along with the application. If the work to be registered is unpublished, a copy of the manuscript has to be sent along with the application for affixing the stamp of the Copyright Office in proof of the work having been registered. In case two copies of the manuscript are sent, one copy of the same duly stamped will be returned, while the other will be retained, as far as possible, in the Copyright Office for record and will be kept confidential. It would also be open to the applicant to send only extracts from the unpublished work instead of the whole manuscript and ask for the return of the extracts after being stamped with the seal of the Copyright Office. When a work has been registered as unpublished and subsequently it is published, the applicant may apply for changes in particulars entered in the Register of Copyright in Form V with prescribed fee.The process of registration and fee for registration of copyright is same.

    For further details please access following link.

  • What is the scope of protection in the Copyright Act, 1957?

    The Copyright Act, 1957 protects original literary, dramatic, musical and artistic works and cinematograph films and sound recordings from unauthorized uses. Unlike the case with patents, copyright protects the expressions and not the ideas. There is no copyright protection for ideas, procedures, methods of operation or mathematical concepts as such (Please see Article 9.2. of TRIPS).

    For more information, click here.

  • 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.

  • 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.

  • 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.

  • 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.

  • Why is it important to file the application for registration of design at the earliest possible?

    First-to-file rule is applicable for registrability of design. If two or more applications relating to an identical or a similar design are filed on different dates only first application will be considered for registration of design.

    For more information, click here.

  • What is piracy of a design?

    If anyone contravenes the copyright in a design, s/he is liable for every offence to pay a sum not exceeding Rs. 25,000/- to the registered proprietor subject to a maximum of Rs. 50,000/- recoverable as contract debt in respect of any one design. The registered proprietor may bring a suit for the recovery of the damages for any such contravention and for injunction against repetition of the same.

    For more information, click here.

  • Is it possible to transfer the right of ownership under the Designs 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 subject to certain restrictive conditions. An application in form-10, with prescribed fees in respect of one design and appropriate fees for each additional design, for registration of the transfer documents is required to be made by the beneficiary to the Controller within six months from the date of execution of the instruments or within further period not exceeding six months in aggregate. An original/notarized copy of the instrument to be registered is required to be enclosed with the application.

    For more information, click here.

  • Is it mandatory to make the article by industrial process or means before making an application for registration of design?

    No, design means a conception or suggestion or idea of a shape or pattern which can be applied to an article or capable to be applied by industrial process or means. Example: a new shape which can be applied to a pen thus capable of producing a new appearance of a pen on the visual appearance. It is not mandatory to produce the article first and then make an application.

    For more information, click here

  • How one can ascertain whether registration subsists in respect of any design?

    For ascertaining whether registration subsists in respect of a design, a request should be made to the Patent Office, Kolkata. If the Design number is known, the request should be made on Form 6, otherwise on Form 7, together with prescribed fees. Each such request should be confined to information in respect of a single design.

    For more information, click here.

  • What is the most appropriate time for filing the registration of designs?

    First-to-file rule is applicable for registrability of design. If two or more applications relating to an identical or a similar design are filed on different dates only first application will be considered for registration of design.

    For more information, click here.

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

    Under modern business condition a trademark performs four functions: 

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

    For further details please access following link.

     

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

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

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

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

    For more information, click here.

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

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

    For more information, click here.

  • How do I file a trademark application for my brand?

    The Controller General of Patents, Designs and Trademarks has information regarding trademark form and fees.

    For more information, click here

  • Does the Trade Marks Registry help to select a trademark agent to prepare and prosecute trademarks application?

    Yes, Trade Marks Registry had published a list of facilitators who are willing to facilitate filing trademark applications for start-ups and act as a trademark agent on their behalf. Their fees for this purpose have also been notified.

    For more information, click here.

  • What are the legal requirements to register a trademark in India?

    The legal requirements to register a trademark under the Act are:

    The selected mark should be capable of being represented graphically (that is in the paper form).

    • It should be capable of distinguishing the goods or services of one undertaking from those of others.

    • It should be used or proposed to be used mark in relation to goods or services for the purpose of indicating or so as to indicate a connection in the course of trade between the goods or services and some person have the right to use the mark with or without identity of that person.

    For more information, click here

  • Can any correction be made in the application or the trademark register?

    Yes. However, the basic principle is that the trademark applied for should not be substantially altered affecting its identity. Subject to this, changes are permissible according to rules detailed in the subordinate legislation.

    For more information, click here.

  • 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.

  • 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.

  • 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.

  • What does provisional specification of patents include?

    Indian Patent Law follows first to file system. A provisional application is an application which can be filed if the invention is still under experimentation stage. Filing a provisional specification provides the advantage to the inventor since it helps in establishing a priority date of the invention.

    For more information, click here.

  • Does the Patent Office keep information of the invention secret?

    Yes. All the patent applications are kept secret upto 18 months from the date of filing or priority date whichever is earlier and thereafter they are published in the Official Journal of the Patent Office which is published every week and also available on the IPO website.

    For more information, click here.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

     

  • 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.

  • 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.

  • Registrar of Trade Union withdrew a union’s registration in view of non performance of certain statutory provisions. Is it possible?

    Registrar has the power only to cancel the registration.  He cannot withdraw the order of registration issued by him.

  • Are there any policies with respect to child labours? If yes, which act?

    Yes, The National Policy on Child Labour declared in August 1987, contains the provisions with respect to employment of child labour.

    For more information, click here.

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

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

    For more information, click here.

     

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

    Application shall not become invalid.

  • 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.

  • 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.

  • 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.

  • 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

  • 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

  • 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

  • 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.

  • 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.

     

  • 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. 

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

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

  • What is the validity of an open offer?

    Ten days

    For more information, click here

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

    The key laws governing M&A in India are:

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

    The key regulations governing M&A in India are:

    • Securities and Exchange Board of India (SEBI)
    • Takeover code of SEBI.
    • Reserve Bank of India.
    • Competition Commission of India.
  • What does the minimum level of acceptance mean under Sebi takeover code?

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

    For more information, click here.

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

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

    For further details please access following link.

  • 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.

  • 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.

  • How to deposit Self Assessment Tax or Advance tax to the credit of Government?

    ​Self Assessment Tax or Advance Tax is to be deposited to the credit of Government by using the challan prescribed in this behalf, i.e., ITNS 280. The Challan can be downloaded from www.incometaxindia.gov.in Tax can be paid in the designated banks through two modes, viz., physical mode, i.e., cash/cheque or e-payment mode by using debit card or internet banking. ​​

  • What are the consequences if a taxpayer (say, Chinese corporation or Wholly Owned Subsidiary, WOS) does not file tax return in India?

    Non-filing of tax return despite of having taxable income carries penalty and prosecution exposure. Also, non-filing of tax return with negative income by due date prohibits the carry forward of such losses including the losses in the past years, if any, to the subsequent year for adjustment against subsequent year(s) positive income. Taxpayers are liable to furnish the tax returns even in situation where tax payable is negated by the taxes withheld by the customers.

    Further, it may be noted that non-payment of tax, i.e., tax evasion can attract interest, penalty and prosecution.

  • If the ultimate parent entity of the group is a resident of a country (home jurisdiction) where the CbCR is not required to be filed, or if it has not opted for a parent surrogate filing, will the Indian CE be required to file a CbCR in India?

    As per the section 286(4) of the Income Tax Act, if the ultimate parent entity, resides in a country where CbCR is not required to be filed and the group has not opted for a surrogate filing, then the entity will be obligated to file a CbCR in India.

  • Would a foreign bidder require a Goods and Service Tax registration in India for execution of works contract?

    If the foreign bidder coming into India for execution of LSTK works contract, then as per Sec 24 of CGST Act, such foreign bidder would be required to obtain GST registration mandatorily in India.

    For more information, click here

  • What duties will be levied on import of goods?

    Customs duty and cess as applicable + IGST+ GST compensation cess. IGST and GST compensation cess shall be paid after adding all customs duty and customs cess to the value of imports.

  • What is an e-way bill?

    An e-way bill is an electronic document generated on common portal evidencing movement of goods of consignment value more than INR 50,000.

  • What is e-PAN?

    e-PAN is a digitally signed PAN card issued in electronic form and it is a valid proof of allotment of PAN.

    For more information, click here.

  • What are the elements of employment compensation, that enjoy exemption from tax?

    Generally, subject to certain conditions, following items of compensation are not taxable in the hands of employees:
    1) House Rent Allowance (HRA): HRA is an allowance granted to meet housing costs of employees. This exemption is not available if the employee resides in his own house, or in a house for which he does not incur any rent.
    2) Certain travel/tour allowances: Allowances granted to meet the cost of travel for official purposes are exempt (on actual basis).
    3) Reimbursement of medical expenses up to specified limits: Reimbursement of medical expenses actually incurred by an employee for self or any member of his/her family is exempt up to US$ 217.50 per tax year.
    4) Leave travel concession (LTC): LTC granted to an employee for vacation at any place in India is exempt for upto two journeys in a block of four calendar years, subject to certain conditions.
    5) Tax borne by an employer on non-monetary perquisites: 
    Tax borne by an employer on non-monetary perquisites provided to its employee, is exempt from tax, provided the employer does not claim it as a deduction against its taxable income.
    6) Gratuity: Gratuity received by an employee on retirement/termination of employment or by family on the death of employee tax-payer is exempt from tax subject to specified limit (presently US$ 14,505).
    7) Leave encashment: Leave encashment received by an employee on retirement is exempt from tax subject to specified limit (presently INR 300,000).
    8) Employer Provident Fund contribution:Employer’s contribution towards Provident Fund is exempt from tax subject to fulfilment of certain conditions.
    Apart from above, there are other allowances such as Children’s allowance, hostel allowance, etc., which form part of salary and are exempt from tax but subject to certain conditions and/or monetary limits.

    For further details please access following link.

  • Do the Indian tax laws prescribe any beneficial tax rates where a Foreign corporation proposes to establish an Indian subsidiary for undertaking manufacturing activities in India?

    Yes. The Indian tax laws provide the option of beneficial tax rate of 17.6% (15% plus 10% plus 4%) for taxing the income of a new Indian subsidiary engaged in manufacturing activities, incorporated on or after 01 October 2019 and commencing manufacturing on or before 31 March 2023 (subject to certain conditions).

  • What is income tax return (ITR)?

    ITR stands for Income Tax Return. It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department. It also allows carry -forward of loss and claim refund from income tax department.

    For more information, click here

  • When should the bill of entry be filed and what are its different kinds?

    Bill of entry can normally be filed to clear the goods after the Import General Manifest (IGM) is presented to the Customs Officers by the Steamer Agents / Airlines, as the case may be. 

    The following are the types of Bill of Entry 

    Home consumption Bill of entry: This has to be filed when the importer wants to clear the goods on payment of duty and remove them to his premises immediately. 

    Into bond Bill of entry:  It is also known as Warehousing Bill of Entry.  This has to be filed when the importer does not want to pay duty immediately but prefers to keep the goods in a warehouse and pay the duty subsequently and clear the goods for home consumption.

    Ex-bond Bill of entry:  This has to be filed when the importer wants to clear the warehoused goods for home consumption on payment of duty

  • What are restricted items and what is the procedure to import them ?

    All goods, import of which is permitted only with an authorisation / permission / license or in accordance with the procedure prescribed in a notification / public notice are ‘restricted’ goods. For import of goods mentioned in Schedule 1 of ITC (HS) Classification of Export & Import 2012, an application for grant of an Import Authorisation may be made to the concerned Regional Authority of DGFT in Aayaat Niryaat Form 2B(ANF 2B) along with documents prescribed therein, with two copies of the complete set to DGFT(HQ) at Udyog Bhawan, New Delhi. The requests for such imports are considered by Inter Ministerial Committee meeting.

  • We want to export prohibited goods. Can we take advance authorization for import of inputs duty free?

    You may avail advance authorization for import of inputs for manufacture of a product which is prohibited for exports. However such authorization will have to meet the following conditions, in addition to usual conditions:

    (i) That the export is made subject to pre-import condition which is manufactured in India using the material imported against the said authorisation; and

    (ii) The facility under rule 18 (rebate of duty paid on materials used in manufacture) or sub-rule (2) of rule 19 of the Central Excise Rules, 2002  should be  availed.

  • Where to obtain an IEC ?

    IEC number is issued by Directory General of Foreign Trade at each regional offices where the exporter/importer is situated. DGFT has recently introduced the facility of issuing Importer Exporter Code in electronic form (e-IEC). For issuance of e-IEC an application can be submitted online on DGFT website: Link. Applicants can upload the documents and pay the required fee through Net banking.

  • What are Rules of Origin (ROO)?

    They are the criteria needed to determine the of a product for purposes of international trade. It is important because duties and restrictions in several cases depend upon the source of imports. Rules of origin are used: to implement measures and instruments of commercial policy such as antidumping duties and safeguard measures;, whether imported products shall receive most-favoured-nation (MFN) treatment or preferential treatment, for trade statistics; for the application of labelling and marking requirements; and for government procurement.

  • What is export obligation under post export EPCG Scheme and how the same is fixed?

    The export obligation under post export EPCG Scheme is equivalent to eighty five percent. (85%) of six times the amount which is the sum of applicable Basic duty of customs, additional duty of customs, Education Cess and Secondary and Higher Education Cess paid on goods imported under the said authorisation, on FOB basis, which is to be fulfilled within an export obligation period of six years from the date of issue of the said authorization. However, additional duty of customs shall not be taken for computation for the purpose of fixation of export obligation when the Cenvat Credit in respect of additional duty of customs has not been taken.

  • What are the basic requirements to import goods?

    The requirements are as follows :- 

    submit an application to the Directorate General of Foreign Trade and obtain Importer and Exporter Code (IEC) number

    IEC has to be indicated in the documents filed with the Customs for clearance of the imported goods

    In the case of 100% EOUs / EPZs the importer and Exporter Code (IEC) numbers are allocated by the Development Commissioner of Export Processing Zone concerned.

    Every good imported shall be in conformity with Section 11 of the Customs Act 1962, Foreign Trade (Development & Regulation) Act 1992 read with the EXIM policy in force.

  • What are Free Trade Agreements (FTAs)?

    FTAs are arrangements between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariff and non tariff barriers on substantial trade between them. FTAs, normally cover trade in goods (such as agricultural or industrial products) or trade in services (such as banking, construction, trading etc.). FTAs can also cover other areas such as intellectual property rights (IPRs), investment, government procurement and competition policy, etc.

  • Can more than one IECs be obtained under a single PAN?

    No, only one IEC could be issued against a  single Permanent Account Number (PAN). If any PAN card holder has more than one IEC, the extra IECs shall be disabled.

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  • What are the goods eligible for being financed under the LOCs?

    Under the LOCs, export of capital goods, plant and machinery, industrial manufactures, consumer durables and any other items eligible for being exported under the 'Exim Policy' of the Government of India can be financed.