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  • What are SPiCe forms?

    SPICe Form INC-32, which is a Simplified Proforma for Incorporating Company Electronically -SPICe or Form INC-32, can help incorporate a company with a single application for reservation of name, incorporation of a new company and/or application for allotment of DIN.

    For more information, click here.

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  • How to inform RoC about change in membership of OPC?

    The company shall file form INC-4 in case of cessation of member of OPC on account of death, incapacity to contract or change in ownership. In the same form, user needs to provide details of the new member of the OPC.

    For more information, click here.

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  • Is a license necessary for carrying out money changing business?

    Yes. No person shall carry on money changing business without the possession of a valid licence issued by the Reserve Bank. Any person found undertaking money changing business without a valid licence is liable to be penalised under the Act ibid.

    For more information, click here.

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  • What is the objective behind expanding the FFMCs business?

    To widen and allow easy access to foreign exchange facilities to residents and tourists while ensuring efficient customer service through competition is the major objective.

    For more information, click here.

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  • What is JV and WOS?

    A foreign entity is termed as JV (Joint venture) of the Indian Party/Resident Indian when there are other foreign promoters holding the stake of the entity along with the Indian Party.

    In case of WOS (Wholly Owned Subsidiary), entire capital is held by the one or more Indian Party/Resident Indian.

    For more information, click here.

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  • What are the activities that are permitted to be undertaken by Liaison Office?

    The list of activities provided by the RBI for the LO to undertake is as follows:

    • Representing the parent company / group companies in India
    • Promoting export / import from / to India
    • Promoting technical/ financial collaborations between parent / group companies and companies in India
    • Acting as a communication channel between the parent company and Indian companies

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  • What are the activities that are permitted to be undertaken by Project Office?

    The list for PO as follows:

    • Non-resident companies are generally permitted to establish POs in India, provided they have secured a contract from an Indian company to execute a project in India
    • Further, the project must have secured the necessary regulatory clearances and is funded directly by inward remittance from abroad or the project is funded by a bilateral or multilateral international financing agency, or a company or entity in India awarding the contract has been granted term loan by a public financial institution or a bank in India for the project

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  • Whether a BO or PO can send outward remittances, permissible under FEMA, through any AD Category I bank or it has to be through the designated AD Category I bank only?

    Wherever the BO or PO is required to remit funds outside India, within the applicable guidelines under FEMA, they may do so not necessarily through the designated AD Bank but through any AD Bank of its choice subject to obtaining no objection certificate (NOC) from the designated AD Bank.

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  • Whether AD bank can approve for extension of the project account after the tenure of the project?

    The AD Bank has the power to approve for extension of the project account after the tenure of the project for genuine reasons like completion of warranty period, statutory works like Income tax assessments, VAT/Service tax/GST assessments, to make arrangements for the sale of assets, etc. 

    However, requisite intimations shall be required to be sent to Reserve Bank, FED, CO Cell, Sansad Marg, New Delhi 110001.

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  • What are the key prerequisites for setting up of an unlisted public limited company in India?

    The key prerequisites for setting up an unlisted public limited company are the following: 

    • Minimum three directors – mandatory one resident director but not required to be a citizen of India
    • Minimum seven shareholders – shareholders may be either corporates or individuals  
    • No minimum capital threshold, should have at least seven shares, if the proposed company will be limited by shares
    • Physical space to be identified as a registered office

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  • What is the monetary threshold for applicability of MF (Master file) regulations for a CE?

    Every person, being a CE of an international group operating in India, shall file such details in part A to Form 3CEAA. Further, such person shall also be required to file additional details as required under part B of Form No. 3CEAA if it satisfies the following criteria:

    1. If the consolidated group revenue of the international group, of which such person is a constituent entity, as reflected in the consolidated financial statement of the international group for the accounting year, exceeds INR 5 Bn
    2. The aggregate value of international transactions:
    • During the accounting year, as per the books of accounts, exceeds INR 500 Mn
    • In respect of purchase, sale, transfer, lease or use of intangible property during the accounting year, as per the books of accounts, exceeds INR 100 Mn

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  • If the international group does not prepare the MF, as the jurisdiction in which it operates (other than India) does not have any legislative requirement to prepare/file the MF, will the CEs operating in India still be required to maintain and furnish the MF?

    Yes. The CEs operating in India will be required to file Part A of Form 3CEAA and Part B (if the applicable criteria are satisfied).

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  • How would a Foreign corporation be taxed in India?

    A wholly owned Indian subsidiary of a Foreign corporation is taxed on its global income. A Foreign corporation is taxed only on income sourced in India, i.e. received in India, or accrues or arises, or is deemed to accrue or arise, in India.

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  • What is e-PAN?

    e-PAN is a digitally signed PAN card issued in electronic form and it is a valid proof of allotment of PAN.

    For more information, click here.

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  • What is e-payment of taxes?

    Taxpayers are provided with the facility to make income tax payments online using Net-banking/Debit card of the selected bank, this facility is termed as e-payment of taxes.

    For more information, click here.

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  • What is a Mutual Agreement Procedure (MAP)?

    MAP is a dispute resolution facility provided under the MAP article in India's DTAs. It is a facility through which Indian Revenue Authorities and the competent authorities would mutually negotiate based on facts and legal and technical positions regarding the application of the DTAA. Illustratively, MAP may be invoked in case of the disputes that could arise from a transfer pricing adjustment, characterization of income, or dispute relating to existence of PE in one of the contracting state, to list a few.

     

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  • What is a deemed international transaction?

    A transaction entered into by an enterprise with a person other than an associated enterprise shall be deemed to be an international transaction entered into between two associated enterprises, if:

    • There exists a prior agreement in relation to the relevant transaction between such other person and the associated enterprise
    • The terms of the relevant transaction are determined in substance between such other person and the associated enterprise where the enterprise or the associated enterprise or both of them are non-residents irrespective of whether such other person is a non-resident or not

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  • Why have amendments been made in the Indian Stamp Act, 1899?

    The amendments have been carried out with respect to securities market transactions. The present system of collection of stamp duty on securities market transactions has led to multiple rates for the same instrument, resulting in jurisdictional disputes and multiple incidences of duty, thereby raising the transaction costs in the securities market and hurting capital formation.

    For more information on Indian Stamp Act, 1899, click here. For more details about the amendments, refer here.

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  • What is the basic framework being created through the amendments to the Indian Stamp Act, 1899?

    Through the said amendments, the Central Government has created the legal and institutional mechanism to enable States to collect stamp duty on securities market instruments at one place by one agency (through the Stock Exchanges or Clearing Corporations authorised by the Stock Exchange or by the Depositories) on one instrument. A mechanism for appropriate sharing the stamp duty with relevant State Government based on State of domicile of the buying client has also been included. In the extant scenario, stamp duty was payable by both seller and buyer whereas in the new system it is levied only on one side (payable either by the buyer or by the seller but not by both, except in case of certain instrument of exchange where the stamp duty shall be borne by both parties in equal proportion).

    For more information on Indian Stamp Act, 1899, click here. For more details about the amendments, refer here.

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  • What are the expected key benefits of amendments in the Indian Stamp Act, 1899?

    The amendments in the Indian Stamp Act, 1899 and Rules made thereunder will facilitate ease of doing business and will bring in uniformity and affordability of the stamp duty on securities across States and thereby build a pan-India securities market. Further, cost of collection would be minimised while revenue productivity is enhanced. Further, this system will help develop equity markets and equity culture across the length and breadth of the country, ushering in balanced regional development.

    For more information on Indian Stamp Act, 1899, click here. For more details about the amendments, refer here.

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