Daily Archives: August 14, 2015

Part and accessories tariff Classification

Part and accessories if mentioned as goods in specific tariff heading, is to be classified in their respective heading only-Supreme Court M/s Secure Meters Ltd. vs. Commissioner of Customs (Supreme Court), Civil Appeal No.-7526 of 2004, Date of Pronouncement- May 5,2015 Brief of the case: The Hon’ble Supreme court in the case of Secure Meters… Read More »

Anti dumping duty on Imports of Potassium Carbonate

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 »

Interest Subvention Scheme

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

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 »

Trade Credits for imports into India

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 »

Investment by NRI in partnership firm in India

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

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

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

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

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

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

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 »

Legal importance of Act done in good faith

Act done in good faith A thing is deemed to have been done in good faith where it is in fact done honestly, whether it is done negligently or not [section 3(22) of the General Clauses Act]. A person cannot be said acting in good faith where he has a suspicion that there is something… Read More »

Meaning and Legal Importance of Natural justice

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 »

ACQUISITION AND TRANSFER OF PROPERTY IN INDIA BY NRI

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

 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

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 »

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

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 »