The Core Group constituted by MCA for convergence of Indian Accounting Standards with the International Financial Reporting Standards (IFRS) had announced the approach and timelines for achieving convergence with IFRS on 22 January 2010 and a separate approach on 31 March 2010 for the convergence of Indian Accounting Standards by the Banking companies, Insurance companies and Non-Banking Finance Companies.
Circular No. CFD/DIL/6/2010, dated 17-5-2010. In recognition of the need for making finance available to small and medium enterprises, SEBI has decided to encourage promotion of dedicated exchanges and/or dedicated platforms of the exchanges for listing and trading of securities issued by Small and Medium Enterprises (SME).
Circular No. IRDA/CAGTS/CIR/LCE/082/05/2010, dated 17-5-2010. As you are aware, the New Agency Portal has come into operation from on 5th January, 2010. In connection with the operation of the said Portal, the following clarifications/instructions are issued by this Authority for compliance.
Recently, the Government of India released the consolidated policy framework for Foreign Direct Investment (‘FDI’) in India. This policy framework contained in Circular No. 1 of 2010 is effective from 1 April 2010. The underlying rationale of the Circular is to promote FDI through a policy framework that is transparent, predictable, simple and clear and which reduces regulatory burden.
The Reserve Bank of India (RBI) has issued a Notification no. FEMA 205/2010-RB dated 7 April 2010 which has amended the pricing norms for issue of shares by an Indian company to a person resident outside India. This Notification comes into force from date of its publication in the Official Gazette i.e. 21 April 2010.
Income Tax Act, 1961 was recently amended to enable India to enter into agreements with specified non-sovereign jurisdictions. Pursuant to this amendment, the Government of India (Government) has recently issued Notification no. 22/2010 dated 8 April 2010 (Notification) notifying nine jurisdictions such as Bermuda, Cayman Islands, Jersey etc. as the specified jurisdictions.
This Tax Alert summarizes a recent ruling of the High Court (HC) of Delhi in the case of Van Oord ACZ India (P) Ltd. (Taxpayer) [2010-TIOL-187-HC-DEL-IT] on withholding tax obligation arising under the provisions of the Indian Tax Law (ITL) in respect of reimbursement of expenses to non-resident companies. The Delhi HC held that a payer is obligated to withhold tax only if the payment is chargeable to tax under the provisions of the ITL.
Indians planning to immigrate from India are normally worried as to how there affairs in India would be handled in there absence from India. They may appoint someone to act for and on there behalf, during there absence from India and ensure the smooth running of the day-to-day affairs in connection with there assets and liabilities in India. The obvious question, which comes to mind is as to the meaning and implications of a ‘power of attorney’ and the modalities for its execution.
This Tax Alert summarizes a recent ruling of the Authority for Advance Rulings (AAR) in the case of Ernst and Young Pvt. Ltd. (Applicant) on the taxability of payments made for support services provided by an affiliate in the UK to the Applicant. The AAR held that the provision of support services does not ‘make available’ any technology to the Applicant and, hence, the payments made are not taxable in India as ‘fees for technical services’ (FTS) under the India-UK tax treaty (Tax Treaty).
The Authority for Advance Rulings (AAR) in the case of E*Trade Mauritius Ltd. (AAR No. 826 of 2009) has held that that capital gains arising from the sale of shares in an Indian company would be exempt from tax in India under Article 13(4) of the India-Mauritius Tax Treaty (tax treaty).
