REPORTING OF FOREIGN INVESTMENT TO RBI Every Indian Company who receives FDI (Foreign Direct Investment) must report such FDI inflow to order bank of India. Therefore, this is often my try and clarify the procedure regarding report of FDI to RBI. INWARD REMITTANCE AND FIRC Receipt of foreign currency through VOSTRO ACCOUNT in company checking account (In USD) from overseas investor. Upon receipt of amount, Bank would enkindle purpose …
FEMA’s Compounding of Offenses Procedure What is Compounding of contraventions under FEMA ? The Foreign Exchange Management Act, 1999 (FEMA) is an act passed by the Indian Parliament to consolidate and amend foreign exchange laws with the goal of facilitating external trade, payments, promoting orderly development & maintenance of India’s foreign exchange market. A violation …
Unauthorized banking transactions: 10 things to know RBI has issued a draft Circular to review the criteria for determining customer’s liability, considering the recent surge in unauthorized transactions in banks resulting in erroneous debits to accounts of customers. The highlights of the draft circular are given here: In case of third party breach (i.e., where …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 15, 2016 The Reserve Bank of India (RBI), it seems, has finally lent ear to millions of such prospective account holders. It has simplified the KYC documentation to make account opening less onerous. Moving ‘The Real Estate (Regulation and Development) Bill, 2015’ for consideration and passage, Urban Development Minister M Venkaiah …
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 5,2016 Direct Tax TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE: Where assessee had benchmarked its international transactions on TNMM basis and TPO had neither disputed assessee’s claim that TNMM was most appropriate method, nor comparables selected by assessee, it was not open for TPO to reject benchmarking done …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 23, 2016 Supply Of Goods to Indian Navy not must to claim excise exemption. Manufacture of rosin and turpentine without aid of power , seeking retrospective exemption is not a constitutional right – HC. [Mangalam Organics Limited vs Union of India – 2016 (2) TMI 529 – Delhi High Court]. Brokerage …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 22, 2016 DIRECT TAX The petitioner is admittedly not a foreign Company. – Since the petitioner is not an eligible assessee in terms of Section 144C(15)(b) no draft order can be passed in the case of the petitioner u/s 144C(1) –( Honda Cars India Limited (Formerly – M/s. Honda Siel Cars …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 21, 2016 INCOME TAX ACT SECTION 14A EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME Reassessment: Where assessee had disclosed all material facts relating to tax free dividend income at time of making the assessment, initiation of reassessment proceedings merely on basis of change of opinion that assessee …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 20, 2016 Income Tax Act SECTION 9 INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA Business income : Where assessee, engaged in operation and maintenance of international airport, obtained services of non-resident companies for running duty free retail shops, matter was to be remanded back to determine as to whether …
BRIEF INTRODUCTION The Foreign Exchange Management Act, 1999 (FEMA) is an act of the Parliament of India to consolidate and amend the laws regarding exchange with the target of facilitating external trade & payments and promoting the orderly development and maintenance of exchange market in India. Contravention may be a breach or non-compliance of the provisions of The Foreign Exchange Management Act, 1999 (FEMA), and therefore the rules, regulations, notifications, orders …