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  • Is it necessary to register a work to claim copyright?(Under the Copyright Act 1957)

    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. However, certificate of registration of copyright and the entries made therein serve as prima facie evidence in a court of law with reference to dispute relating to ownership of copyright.

    For further details please access following link.

  • Does copyright apply to titles and names?(Under the Copyright Act 1957)

    Copyright does not ordinarily protect titles by themselves or names, short word combinations, slogans, short phrases, methods, plots or factual information. Copyright does not protect ideas or concepts. To get the protection of copyright a work must be original.

    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 further details please access following link.

  • What is copyright?(Under the Copyright Act 1957)

    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.
    Copyright ensures certain minimum safeguards of the rights of authors over their creations, thereby protecting and rewarding creativity. Creativity being the keystone of progress, no civilized society can afford to ignore the basic requirement of encouraging the same. Economic and social development of a society is dependent on creativity. The protection provided by copyright to the efforts of writers, artists, designers, dramatists, musicians, architects and producers of sound recordings, cinematograph films and computer software, creates an atmosphere conducive to creativity, which induces them to create more and motivates others to create.

    For further details please access following link.

  • What is meant by Intellectual Property?

    Intellectual Property is the Property, which has been created by exercise of Intellectual Faculty. It is the result of persons Intellectual Activities. Thus Intellectual Property 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 legislations. 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.

    For further details please access following link.

  • Is marking of an article compulsory in the cases of article to which a registered design has been applied?(Under The Design Act 2000)

    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 further details please access following link.

  • Are the registered designs open for public inspection?(Under The Design Act 2000)

    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 further details please access following link.

  • Can the name, address of proprietor or address for service be altered in the register of design?(Under The Design Act 2000)

    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 of should be filed to the Controller of Designs with all necessary documents in support of the application as required.

    For further details please access following link.

  • How it is possible to restore the lapsed design due to non-payment of extension fee within prescribed time?(Under The Design Act 2000)

    A registration of design will cease to be effective on non-payment of extension fee for further term of five years if the same is not paid before the expiry of original period of 10 years. However, lapsed designs may be restored provided the following conditions are satisfied.
    Application for restoration in Form-4 with prescribed fees is filed within one year from the date of lapse stating the ground for such non-payment of extension fee with sufficient reasons.If the application for restoration is allowed the proprietor is required to pay the prescribed extension fee and requisite additional fee and finally the lapsed registration is restored.

    For further details please access following link.

  • What is meant by priority claim?(Under the Trade Marks Act 1999)

    India is one of the countries party to the Paris Convention so the provisions for the right of priority are applicable. On the basis of a regular first application filed in one of the contracting state, the applicant may within the six months apply for protection in other contracting states, latter application will be regarded as if it had been filed on the same day as the first application.

    For further details please access following link.

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

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

  • How to get information on registration of design?(Under The Design Act 2000)

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

    For further details please access following link.

  • What is the penalty for the piracy of a registered Design?(Under The Design Act 2000)

    If anyone contravenes the copyright in a design he is liable for every offence to pay a sum not exceeding US$ 383 to the registered proprietor subject to a maximum of US$ 768 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. Total sum recoverable shall not exceed US$ 768 as contract debt as stated in Section 22(2)(a). The suit for infringement, recovery of damage etc. should not be filed in any court below the court of District Judge.

    For further details please access following link.

  • What is piracy of a Design?(Under The Design Act 2000)

    Piracy of a design means the application of a design or its imitation to any article belonging to class of articles in which the design has been registered for the purpose of sale or importation of such articles without the written consent of the registered proprietor. Publishing such articles or exposing terms for sale with knowledge of the unauthorized application of the design to them also involves piracy of the design.

    For further details please access following link.

  • How one can ascertain whether registration subsists in respect of any design?(Under The Design Act 2000)

    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 further details please access following link.

  • 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.

     

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

    A trademark (popularly known as brand name) in layman’s language 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.

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

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

    2) It should be capable of distinguishing the good or services of one undertaking from those of others.

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

    For further details please access following link.

  • What happens when applicant is not able to meet the requirement within the prescribed time for a patent? (Under The Patents Act 1970)

    If the applicant is not able to meet the requirements of the patent office within 12 months and does not submit the documents which were sent to him for compliance within the said period, the application is deemed to have been abandoned.

    For further details please access following link.

  • What happens to a patent application once it is examined? (Under The Patents Act 1970)

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

    For further details please access following link.

  • Is there any provision for early examination of patents? (Under The Patents Act 1970)

    There is a provision for filing a request for early examination. The Patent Office has introduced Form 18A for expedited examination for the applicants who meet certain eligibility criteria. Please refer to Indian Patent office website for details.

    For further details please access following link.

  • When can the request for examination can be filed for patents? (Under The Patents Act 1970)

    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 on the following link.

  • Is patent application once filed examined automatically? (Under The Patents Act 1970)

    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 further details please access following link.

  • Is there any provision in the law for early publications of patents? (Under The Patents Act 1970)

    Yes, according to Indian Patent Act the patent application can be examined for early publications as per the Form-9 introduced by the Patent Office.

    For further details please access following link.

  • Does the Patent Office keep information of the invention secret? (Under The Patents Act 1970)

    Yes, all patent applications are kept secret up to 18 months from the date of filing or priority date whichever is earlier and, thereafter, they are published in the Official e-journal of the Patent Office which is published every week on the IPO website. After its publication, public can inspect the documents and also may take the photocopy thereof on payment of the fee as prescribed.

    For further details please access following link.

  • Is it necessary to file a provisional application? (Under The Patents Act 1970)

    Generally, an application filed with provisional specification is known as provisional application which is useful in establishing a priority date of your invention. Moreover, filing of a provisional application is useful as it gives sufficient time to the applicant to assess and evaluate the market potential of his invention before filing complete specification. However, it is not necessary to file an application with provisional specification and one can file application directly with complete satisfaction.

    For further details please access following link.

  • What is provisional specification of patents? (Under The Patents Act 1970)

    Indian Patent Law follows first to file system. Provisional specification describes the nature of the invention to have the priority date of filing of the application in which the inventive idea has been disclosed. It must be followed by a complete specification describing the details of the invention along with a statement of claims within 12 months after filing of the provisional application. If the complete specification is not filed within the prescribed period, the application is treated as deemed to have been abandoned. 

    For further details please access following link.

  • How a patent specification is prepared? (Under The Patents Act 1970)

    A patent specification can be prepared by the applicant himself or his registered and authorized agent. The patent specification generally comprise of the title of the invention indicating its technical field, prior art, draw backs in the prior art, a concise but sufficient description of the invention and its usefulness, drawings (if any) and details of best method of its working. The complete specification must contain atleast one claim or statement of claims defining the scope of the invention for which protection is sought.

    For further details please access following link.

  • What is the mode of payment of fee and in whose favour demand draft is to be obtained under The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996?

    Mode of payment is through Demand Draft. 
    The payment has to be made in favour of either of the following concerned officers:
    1) Assistant Labour Commissioner (Central).
    2) Regional Labour Commissioner (Central).
    3) DDO, O/o Dy. CLC(C).

  • What is the fee to be remitted along with the application of registration under The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996?

    The fee structure is as follows: 
    1) US$ 1.45 for upto 100 building workers.
    2) US$ 7.25 for exceeding 100 but not more than 500 building workers.
    3) US$ 14.5 for more than 500 building workers.

  • What is the minimum no. of building worker for whom certificate of Registration is required to be obtained?

    •The minimum number of Labour required are Ten.

  • How many returns are to be submitted by an employer in Small Establishments and Very Small Establishments?

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

  • How many Registers are required to be maintained?

    •The Registers required to be maintained by both Establishments are as under: 
    •Small Establishment: Form D and Form E Registers.
    •Very Small Establishment:  Form B Form C and Form D Registers.
    Also records have to be maintained in electronic media.

  • Who is covered under this Labour Laws (Exemption from Furnishing Return & Maintaining Register by certain Establishment) Act, 1988?

    This Act applied to: 
    1) Small Establishment: The Establishment in which not less than 10 and not more than 19 persons are employed or were employed on any day in preceding 12 months.
    2) Very Small Establishment: The Establishment in which not more than nine are employed or were employed on any day in preceding 12 months.

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

    Application shall not become invalid.

  • 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.

  • If a Trade Union has an identical name with another, will it be registered?

    Registrar of Trade Union shall not register that union, until they make a change in the identical name under the Trade Union Act.

  • Is it compulsory for the employer to employ those sponsored by Employment Exchanges under the Employment Exchanges Act, 1959?

    No, the employer is not obliged to select or employ a person from the well under the Employment Exchanges Act, 1959.

  • How is the maximum permissible non-public shareholding in a listed company defined?

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

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

    1) Acquisition of 25% or more shares or voting rights: An acquirer, who (along with PACs, if any) holds less than 25% shares or voting rights in a target company and agrees to acquire shares or acquires shares which along with his/ PAC’s existing shareholding would entitle him to exercise 25% or more shares or voting rights in a target company, will need to make an open offer before acquiring such additional shares.

    2) Acquisition of more than 5% shares or voting rights in a financial year: An acquirer who (along with PACs, if any) holds 25% or more but less than the maximum permissible non-public shareholding in a target company, can acquire additional shares in the target company as would entitle him to exercise more than 5% of the voting rights in any financial year ending March 31, only after making an open offer. 

  • 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 a ‘Target Company’?

    The company/body corporate or corporation whose equity shares are listed in a stock exchange and in which a change of shareholding or control is proposed by an acquirer, is referred to as the ‘Target Company’.
     

    For further details please access following link.

  • Who is an ‘Acquirer’?

    Acquirer means any person who, whether by himself, or through, or with persons acting in concert with him, directly or indirectly, acquires or agrees to acquire shares or voting rights in, or control over a target company. An acquirer can be a natural person, a corporate entity or any other legal entity. 
     

    For further details please access following link.

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

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

  • What is the meaning of control as per CCI?

    The Act provides for an inclusive definition of “control”, as including “controlling the affairs or management” of a target enterprise or group.
    For further details please access following link.

  • When should I notify a combination to CCI?

    In case of mergers or amalgamations, a notice under Section 6(2) of the Act is required to be filed with the CCI prior to the same coming into effect subject to the provisions of sub-section (2A) of section 6 and section 43A of the said Act. (See Section 6(2A) of the Act, GoI notification S.O. 2039(E) published on 29th June, 2017)
    Parties are required to inform CCI of any change in the information provided in the notice to CCI, at the earliest, during the CCI’s assessment of the combination. If the change in the information provided in the notice is likely to significantly affect the factors for the determination of AAEC or the CCI’s assessment of the combination, the CCI may treat the notice filed as not valid, after providing parties an opportunity of being heard. 


    For further details please access following link.

  • What is combination?

    Any acquisition, merger or amalgamation that meets the following jurisdictional thresholds, as provided in Section 5 of the Competition Act, 2002 (‘Act’), is a ‘combination’ for the purpose of the Act. The thresholds relate to the assets and turnover of the parties to the combination, i.e., target enterprise and acquirer (or acquirer group)/merging parties (or the group to which merged entity would belong). At present, thresholds prescribed under the Act (as enhanced by the Central Government vide its Notification No. S.O. 675(E) dated March 4, 2016) as either of the following:

    1. Enterprise Level 

    • India : > US$ 308 mn (Assets)  & > US$ 923 mn (Turnover)
    • Worldwide (with India component) : > US$ 1 bn with at least US$ 154 mn in India (Assets) & > US$ 3 bn with at least US$ 462 mn in India

    2. Group Level

    • India : > US$ 923 mn (Assets)  & > US$ 3.69 bn (Turnover)
    • Worldwide (with India component) : > US$ 4 bn with at least US$ 154 mn in India (Assets) & > US$ 12 bn with at least US$ 462 mn in India

    For further details please access following link.

  • I am planning to acquire less than 25% of equity shares of a listed company from secondary market. Do I need to notify this combination to CCI?

    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. The acquisition of less than 10% of the total shares or voting rights of an enterprise shall be treated as solely as an investment. Provided that in relation to the said acquisition-
    1) The Acquirer has ability to exercise only such rights that are exercisable by the ordinary shareholders of the target enterprise the extent of their respective shareholding.
    2) The Acquirer is not a member of the board of directors of the target enterprise and does not have a right or intention to nominate a director on the board of directors of such enterprise and does not intend to participate in the affairs or management of such an enterprise.

     

    For further details please access following link.

  • What is the administrative framework of Income-tax?

    The revenue functions of the Government of India are managed by the Ministry of Finance. The Finance Ministry has entrusted the task of administration of direct taxes like Income-tax, Wealth tax, etc., to the Central Board of Direct Taxes (CBDT). The CBDT is a part of Department of Revenue in the Ministry of Finance.CBDT provides essential inputs for policy framing and planning of direct taxes and also administers the direct tax laws through the Income-tax Department. Thus, Income-tax Law is administrated by the Income-tax Department under the control and supervision of the CBDT.​

  • Is it necessary to attach any documents along with the return of income?

    ITR return forms are attachment less forms and, hence, the taxpayer is not required to attach any document (like proof of investment, TDS certificates, etc.) along with the return of income (whether filed manually or filed electronically). However, these documents should be retained by the taxpayer and should be produced before the tax authorities when demanded in situations like assessment, inquiry, etc.

  • What is Income-tax?

    ​​It is a tax levied by the Government of India on the income of every person. The provisions governing the Income-tax are covered in the Income-tax Act, 1961.​

  • 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 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.

  • Where should the books of account of business be kept and for how long?

    All the books of account and related documents should be kept at the principal place of business, i.e., where the business or profession is generally carried on. These documents should be preserved for a minimum of six years from the end of relevant Assessment year i.e. for a total of 7 financial year from the end of relevant year. However, when the assessment has been reopened, all books of account and other documents which were kept and maintained at the time of reopening of assessment should continue to be so kept and maintained till the assessment so reopened has been completed.​

  • What books of account have been prescribed to be maintained by a person carrying on business/profession under the Income-tax Act?

    The Income-tax Act does not prescribe any specific books of account for a person engaged in business or in non-specified profession. However, such a person is expected to keep and maintain such book of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of the Act, if:-.

    In case of existing business or profession, income or gross turnover in any one of the 3 preceding previous years exceeds the following-
                                                                                                                                       Individual/HUF                    Other
    • Income from business or profession                                                                        INR 2,50,000                       INR 1,20,000
    • Turnover/gross receipts in the business or profession                                             Rs. 25,00,000                     INR 10,00,000

    In case of newly setup business or profession, income or gross turnover of the first previous year is likely to exceed the following-
                                                                                                                                      Individual/HUF                    Other
    • Income from business or profession                                                                       INR 2,50,000                       INR 1,20,000
    • Turnover/gross receipts in the business or profession                                            INR 25,00,000                     INR 10,00,000


    For companies the books of account are prescribed under the Companies Act. Further, the Institute of Chartered Accountants of India has prescribed various Accounting Standards and Guidelines that are required to be followed by the business entities As regards the maintenance of books of account by a professional, who is engaged in specified profession has to maintain certain prescribed books of account, if the annual receipts from the profession exceed Rs. 1,50,000 in all the three years immediately preceding the previous year (in case of newly set up profession, his annual receipts in the profession for that year are likely to exceed Rs. 1,50,000).
    Specified profession covers profession of legal, medical, engineering, architectural, accountancy, company secretary, technical consultancy, interior decoration, authorised representative, film artist or information technology.
    For more details on the provisions relating to maintenance of books of account you may refer provisions of section 44AA read with Rule 6F of the Income-tax Rules, 1962.

  • What is revenue receipt and capital receipt?

    Receipts can be classified into two kinds: A) Revenue receipt, B) Capital receipt.

    Revenue receipts are recurring in nature like salary, profit from business, interest income, etc.

    Capital receipts are generally of isolated nature like receipt on account of sale of residential building, personal jewellery, etc. ​

  • Which tax is to be applied by the service provider on invoice issued on or after 1 July 2017 for services rendered up to 30 June 2017?

    The time of supply being issuance of invoice under the CGST Act, 2017, the supplier of services must charge GST in this case. However, where the payment for such supplies has been made (prior to issuance of invoice) as advance before the 1 July 2017, the tax would be payable under the law prevalent prior to 1 July 2017, as the point of taxation had arisen before this date to the extent of the advance.

    For more information, click here.

  • What tax benefits are available to the business units in Special Economic Zones?

    A tax holiday for 15 years is granted to units located in Special Economic Zones (SEZ) that are engaged in export of goods and services.

    • 100% Income Tax exemption on export income for first 5 tax years.
    • 50% for next five tax years thereafter.
    • 50% of the export profit for next five tax years provided an equal amount of profit is retained or transferred to a special reserve in the books of accounts.

    Only units which become operational on or before 31 March 2020 can claim this tax holiday. 

    For more information, click here.

  • Whether export of Music Software is export of goods or services?

    If the music software is exported in Physical Form (CD), it will be treated as physical export goods.  However, if the same is going in soft form, it would be treated as services exports.

  • 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.

  • 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.

  • In case an EOU is procuring raw material from the indigenous market and then selling the product in the DTA then what is the amount of duty they are required to pay?

    In case an EOU making a product by procuring 100% raw material indigenously, then such product can be sold in the domestic market on payment of basic duty. Department of Revenue Notification No. Cicrular No. 85/2001-Cus., dated 21/12/2001, may please be seen. 

    For more. go to link.

  • How can EOUs get star status?

    As per the present provision given in Chapter 3, paragraph 3.21 of the Foreign Trade Policy, exporters are given recognition as a 1 star export house, 2 star export house, 3 star export house, 4 star export house and 5 star export house etc. The eligibility criteria is:-

    (1) One Star Export House -3 million $

    (2) Two Star Export House – 25 million $

    (3) Three Star Export House - 100 million $

    (4) Four Star Export House -500 million $

    (5) Five Star Export House – 2000 million $ .

  • 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.

  • 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

  • Can an Indian company invoice in Indian Rupees? Will such a company be eligible for exports benefits?

    As per para 2.52 FTP 2015-20, all export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realized in freely convertible currency. However, export proceeds against specific exports may also be realized in rupees, provided it is through a freely convertible Vostro account of a non resident bank situated in any country other than a member country of Asian Clearing Union (ACU) or Nepal or Bhutan. Additionally, rupee payment through Vostro account must be against payment in free foreign currency by buyer in his non-resident bank account. Free foreign exchange remitted by buyer to his non-resident bank (after deducting bank service charges) on account of this transaction would be taken as export realization under export promotion schemes of FTP.

  • What is provisional assessment?

    When an importer/ exporter is unable to produce necessary  documents or information for assessment of duty on goods, or when the necessary documents are needed to produce but the proper officer of customs may deem it necessary to make further enquiry for assessing the duty, he may resort to provisional assessment, pending such enquiry a provisional assessment of goods maybe be requested. 

  • What are ‘Project Imports’? What are the advantage of importing under project import regulation?

    Project Imports are the imports of machinery, instruments, and apparatus etc., required for initial sating up of a unit or for substantial expansion of an existing Unit. The exported goods are charges duty at a flat rate of duty under the same tariff heading. Project Imports assessment is a scheme of assessment which is designed to help expeditious and easy assessment of variety of industrial goods falling under different chapters of the Customs Tariff.