CORPORATE TAX UPDATE FOR THE MONTH

Corporate tax Update for the Month

No action against black money declarants under FEMA: RBI

• Oct 2, 2015
  With the compliance window for declaration of offshore assets ending on September 30, the RBI on Thursday clarified that no proceedings would be initiated under the Foreign Exchange Management Act, 1999 (FEMA) against declarants with assets held abroad on which taxes and penalties had been paid under the the Black Money Act.
• The RBI said no permission would be required under FEMA to dispose of the asset and bring back the proceeds to India through banking channels within 180 days from the date of declaration.
• In case the declarant wishes to hold the declared asset, she/he may apply to the apex bank within 180 days from the date of declaration if such permission is necessary.
• The RBI said it would deal with such applications under existing regulations.

• Oct 2, 2015
  The government on Thursday decided to give relief to foreign companies with no ‘place of doing business’ in India from the 18.5% minimum alternate tax demands issued to them, saying that amendments to the tax law to this effect would be brought in very soon.
• Relief will be available to companies irrespective of whether they are from a country with a tax treaty with India or not.
• The move could benefit companies such as the US-based Timken facing MAT demands.

RBI directs concurrent auditors to submit reports directly to banks

Oct 2, 2015

The Reserve Bank of India has asked concurrent auditors of commercial banks to do to submit their review of non-performing loans directly to the banks and discontinue the practice of submitting it to the statutory auditors who conduct quarterly and half yearly review of bank accounts.

• Concurrent audit means doing the examination of the financial transactions at the time of happening or parallel with the transaction. Concurrent audit system is regarded as part of a bank’s early warning

Rupee plunges to 66.16 vs dollar, down 17 paise
Oct 2, 2015
Hit by month-end dollar demand from importers, the rupee on Thursday dropped by another 17 paise against the American currency to close at 66.16, extending losses for fourth straight day, amid mixed global cues. Sustained foreign capital outflows also affected the market.

• Foreign portfolio investors sold shares worth a net Rs 1,330 crore on Wednesday, according to provisional data released by the stock exchanges.
• The rupee resumed sharply lower at 66.20 a dollar against its overnight level of 65.99 at the Interbank Foreign Exchange market.
• It hovered in a range of 66.27 to 66.03 during the day, before ending at 66.16 per dollar, showing a loss of 17 paise.
• The rupee has dropped by 49 paise or 0.75 per cent in four days. The dollar index was down by 0.40 per cent as against a basket of six currencies.
• BILT to sell Malaysia arm for $500 mn
  Oct 2, 2015
  Ballarpur Industries (BILT), an Avantha Group firm, has announced the sale of its Malaysian subsidiary, Sabah Forest Industries (SFI), to Pandawa Sakti (Sabah) Sdn, Malaysia, for $500 million (Rs 3,307 crore).
• The debt-heavy group had sold Crompton Greaves’ consumer durable business in April for Rs 2,000 crore and a power plant in Korba to Adani Group for Rs 4,200 crore in November 2014.
• A power plant in Jhabua, Madhya Pradesh, was also on the block and a deal in this regard was expected to be finalised by October, said a senior executive.

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• .Source:https://www.thehindubusinessline.com/todays-paper/no-action-against-black-money-declarants-under-fema-rbi/article7686720.ece
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• Source:https://economictimes.indiatimes.com/news/economy/policy/rbi-directs-concurrent-auditors-to-submit-reports-directly-to-banks/articleshow/49092072.cms
• Source:https://www.businessstandard.com/article/finance/rupee-plunges-to-66-16-vs-dollar-down-17-paise-115092400821_1.html
• The Source:https://www.businessstandard.com/article/companies/bilt-to-sell-malaysia-arm-for-500-mn-