Daily Archives: August 14, 2015

Power of Section 18 of Customs Act cannot be exercised arbitrarily

By | August 14, 2015

Power of Section 18 of Customs Act cannot be exercised arbitrarily without a good reason to subject goods to any test – Supreme Court M/s Tata Chemicals Ltd. vs. Commissioner of Customs (Preventive), Jamnagar (Supreme Court), Civil Appeal No. 7439-7440 of 2004, Date of Pronouncement – May 14,2015. Brief of the case: The Hon’ble Supreme… Read More »

Anti dumping duty on Imports of Potassium Carbonate

By | August 14, 2015

Anti dumping duty on Imports of Potassium Carbonate NOTIFICATION NO. 40/2015-Cus.,(ADD), Dated: August 12, 2015  Seeks to impose anti-dumping duty on the imports of Potassium Carbonate, originating in or exported from Taiwan and Korea RP for a period of five years GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) NEW DELHI NOTIFICATION NO. 40/2015-Cus.,(ADD),… Read More »

Anti dumping duty on imports of Flax or Linen Fabric

By | August 14, 2015

Anti dumping duty on imports of Flax or Linen Fabric NOTIFICATION NO. 39/2015-Cus.,(ADD), Dated- 12th August, 2015 Seeks to levy definitive anti-dumping duty on imports of Flax or Linen Fabric having flax content of more than 50% , originating in or exported from the People’s Republic of China and Hong Kong for a period of… Read More »

Interest Subvention Scheme

By | August 14, 2015

RBI/2015-16/152 FIDD.No.FSD.BC.59/05.04.02/2015-16 August 13, 2015 The Chairman / Managing Director All Public & Private Sector Scheduled Commercial Banks Dear Sir/Madam Union Budget – 2015-16 Interest Subvention Scheme Please refer to our letter FIDD CO.FSD.No.10740/05.04.02/2014-15 dated June 17, 2015 conveying extension of Interest Subvention Scheme upto July 31, 2015. In this regard, it is advised that… Read More »

LENDING IN FOREIGN CURRENCY

By | August 14, 2015

LENDING IN FOREIGN CURRENCY Question: Who can lend in Foreign Currency ? A ) Lending by Authorised Dealers Provisions are contained in Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000. If the required conditions are not satisfied, borrowing or lending is permissible only with permission of RBI. An authorised dealer in India… Read More »

Borrowing in Rupees on basis of guarantee issued by NRI

By | August 14, 2015

Borrowing in Rupees on basis of guarantee issued by NRI Question : Can the Person resident outside India gave guarantee of a loan  taken in Indian currency by resident in India from another  person resident in India ? A person resident in India can borrow in Indian rupees from another person resident in India. Such loan can be guaranteed by a… Read More »

Trade Credits for imports into India

By | August 14, 2015

Trade Credits for imports into India Question : What is the meaning of trade credits ? Trade credit means foreign currency credit/loan extended for imports into India, by overseas supplier, bank and Financial Institution for original maturity of less than three years – Schedule III of Foreign Exchange Management (Borrowing or Lending in Foreign Exchange)… Read More »

Foreign Currency loan Questions and Answers

By | August 14, 2015

Foreign Currency loan Question:  Whether the A person resident in India can borrow in foreign currency ? A person resident in India can raise foreign currency loans with permission of RBI. Provisions are prescribed in Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000. The borrowing in foreign exchange may be from an overseas… Read More »

Investment by NRI in partnership firm in India

By | August 14, 2015

Investment by NRI in partnership in India Question : Whether the NRI Can invest in partnership or proprietorship firm  in India ? are there any restrictions ? Investment by NRI/PIO in partnership/proprietary concern NRI/PIO resident outside India can invest by way of capital of a partnership firm or a proprietary concern on non-repatriation basis, provided that the… Read More »

Remittance of foreign exchange under FEMA

By | August 14, 2015

PROCEDURES FOR REMITTANCE AND RESTRICTIONS 1 General procedure for remittance of foreign exchange Most of the powers in respect of routine matters for remittance of foreign exchange have been delegated by RBI to Authorised Dealers. Thus, if the remittance is as per guidelines/regulations, it is permitted by Authorised Dealer himself. As a general rule, all current… Read More »

Gift received from NRI relative

By | August 14, 2015

Foreign gift received from NRI relative Question: How to prove that genuineness of gifts received from the NRI relalaive ? Documents furnished by the Assessee with Assessing Officer are  A copy of foreign bill transaction advice copy of donor’s passport Bank account statement of Donor Gift confirmation in a gift deed giving all the particulars of the… Read More »

BOOKS OF ACCOUNT OF COMPANY

By | August 14, 2015

BOOKS OF ACCOUNT OF COMPANY OBLIGATION OF THE COMPANY TO MAINTAIN BOOKS OF ACCOUNT Provisions relating to accounts of companies are dealt with under Chapter IX (sections 128 to 138) of the Companies Act, 2013 (hereinafter referred to as ‘the Act’/’the 2013 Act’). Section 128(1)/(2) of the Act deals with obligations of company to maintain… Read More »

Appeal under FEMA

By | August 14, 2015

Appeal under FEMA FEMA provides for appeal against order of Adjudicating Authority. If the adjudicating authority is Assistant Director of Enforcement or Deputy Director of Enforcement, appeal will lie with Special Director (Appeals). Further appeal lies with ‘Appellate Tribunal for Foreign Exchange’. If the adjudicating authority is senior to Deputy/Assistant Director, appeal lies directly with… Read More »

Adjudication under FEMA

By | August 14, 2015

Adjudication under FEMA Procedure for adjudication The procedure for adjudication and appeal has been specified in Foreign Exchange Management (Adjudication Proceedings and Appeal) Rules, 2000. Holding of Enquiry – Adjudicating Authority appointed by Central Government will issue a show cause notice to person who is alleged to have committed the contravention, indicating nature of contravention.… Read More »

Penalty under FEMA

By | August 14, 2015

Penalty under FEMA Penalty that can be imposed under FEMA The penalty can be upto thrice the sum involved in such contravention where the amount is quantifiable. If the amount is not quantifiable, penalty upto Rs. two lakhs can be imposed. If contravention is of continuing nature, further penalty upto Rs. 5,000 per day during… Read More »

Meaning and Legal Importance of Natural justice

By | August 14, 2015

Natural justice  For controlling abuse of power, the Courts in their various landmark judgments have held that no decision which prejudicially affects a person can be taken without giving him a prior opportunity of hearing. Courts have now obliterated distinction between a quasi-judicial function and an administrative function. If the urgency and the nature of… Read More »

Transfer of shares to or from non resident

By | August 14, 2015

Buy Latest Book on Foreign Exchange Management -FEMA Highlight ad code TRANSFER OF SHARES AND CONVERTIBLE DEBENTURES OF AN INDIAN COMPANY 1.1 Background General policy regarding transfer of shares to or from non resident are summarised in para 3.4.4 of Consolidated FDI Policy Circular No. 1 of 2014 dated 17-4-2014 issued by DIPP of MC&I Foreign… Read More »

ACQUISITION AND TRANSFER OF PROPERTY IN INDIA BY NRI

By | August 14, 2015

ACQUISITION AND TRANSFER OF PROPERTY IN INDIA ACQUISITION AND TRANSFER OF IMMOVABLE PROPERTY IN INDIA 1.1 Background Restrictions in respect of acquisition and transfer of immovable property in India by non-resident are covered in Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000. Instructions are consolidated in RBI Master Circular No.… Read More »

ESTABLISHMENT OF BRANCH OFFICE IN INDIA

By | August 14, 2015

 BRANCH OFFICE IN INDIA ESTABLISHMENT OF BRANCH OR OFFICE IN INDIA  1 Background Provisions to prohibit, restrict and regulate establishment in India of a branch or office or other place of business by a person resident outside India are contained in Foreign Exchange Management (Establishment in India of Branch or Office or other Place of… Read More »

COMPUTATION OF ALP ACCEPTANCE OF VODAFONE INDIA CASE

By | August 14, 2015

SECTION 92C OF THE INCOME-TAX ACT, 1961 – TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE (ALP) – ACCEPTANCE OF ORDER OF HIGH COURT OF BOMBAY IN CASE OF VODAFONE INDIA SERVICES PVT. LTD. [2014] 50 TAXMANN.COM 300 (BOMBAY) INSTRUCTION NO. 2/2015 [F.NO.500/15/2014-APA-I], DATED 29-1-2015 In reference to the above cited subject, I am directed… Read More »

No Demand in case Tax Credit Mismatch due to TDS

By | August 14, 2015

SECTION 199 OF THE INCOME-TAX ACT, 1961 – DEDUCTION OF TAX AT SOURCE – CREDIT FOR TAX DEDUCTED – NON-DEPOSIT OF TAX DEDUCTED AT SOURCE INSTRUCTION NO.275/29/2014-IT-(B), DATED 1-6-2015 Grievances have been received by the Board from many taxpayers that in their cases the deductor has deducted tax at source from payments made to them… Read More »

IASB Proposed Deferment of Suggested Changes in IFRS 10 and IAS 28

By | August 14, 2015

IASB Proposed Deferment of Changes Previously Suggested in IFRS 10 and IAS 28 International Accounting Standard Board (IASB), the independent body of IFRS foundation and responsible for developing and promoting International Financial Reporting Standards (IFRS), has proposed deferment of changes previously suggested in IFRS 10 ‘Consolidated Financial Statements’ and IAS 28 ‘Investment in Associates and… Read More »