On 30th March, 2010 Standard Chartered Plc (`STANCHART’) filed its draft Red Herring Prospectus with SEBI for its proposed IDR issue. Lead Managers to the issue includes UBS Securities India Pvt. Ltd., Godman Sachs (India) Securities Pvt. Ltd, JM Financial Consultants Pvt. Ltd., DSP Merrill Lynch Ltd., Kotak Mahindra Co. Ltd., and SBI Capital Markets Ltd. Documents were filed through lead managers.
Under the current regulations, an application from a foreign entity to establish BO / LO in India is considered on the basis of the following Basic criteria: If principal business of the foreign entity falls under sectors where 100 percent foreign direct investment (FDI) is permissible under the automatic route.
The Finance Act, 2009 introduced new provisions (section 206AA) in the Income-tax Act, 1961 (the Act). As per these provisions any person entitled to receive any sum on which tax is deductible under the Act shall furnish its Permanent Account Number (PAN) to the deductor. In case of failure in providing PAN to the deductor, the deductor is required to withhold taxes at higher of the following rates:
The Ministry of Labour & Employment & Training has issued revised guidelines Vide notification no. DGE&T-M-26025/4/2009-MP (G) dated December 22, 2009 regarding eligibility criteria in respect of issuance of Employment Visas (EV) to foreign nationals coming to India for execution of projects in India.
Chandigarh Tribunal (Special Bench) ruling in the case of DCIT vs. M/s Quark Systems Pvt. Ltd. (ITA No. 100/Chd/2009) and M/s Quark Systems Pvt. Ltd. vs. ITO, Ward 5(4) (ITA No. 115/Chd/2009) re-states the ‘importance’ of FAR analysis and provides useful guidance on some of the basic parameters which needs to be considered for selecting ‘appropriate’ comparables.
AAR Ruling: Architectural services provided by a limited partnership is liable to tax as “fees for technical / included services” as per the provisions of India-US Double Taxation Avoidance Agreement [HMS Real Estate Pvt. Ltd. (A.A.R. No. 832 of 2009)].
While the Refund Notification has been in existence for more than three years, the Service tax department has been somewhat slow in processing the refund claims, on account of various procedural grounds. One of the primary issues of contention in this regard has been proof of nexus between the input services used and the output services exported.
AMENDMENTS IN RATE OF ITEMS WEF 01.04.2010. 1. In the first schedule appended to Delhi value Added tax Act, 2004(Delhi Act 3 of 2005, hereinafter refer to as the “principal Act” (a) The commodity mentioned at S1 no. 73 and 74 shall be omitted. * Commodity No. 73 ;- Bio Inputs bio-fertilizers, Micro-nutrients and Plant growth promoters. Commodity No.74;-Kerosene-stoves, Lanterns and petromax and their spares.
RBI has eased asset classification infrastructure and project loan guidelines, which in turn will lower the amount of bad loans in the books of banks. Till now, a bank had to classify a project loan as a ‘sub-standard’ asset if commercial operations did not start within six months of the completion of the project, even if the company regularly serviced its loan.
A panel formed by the apex body of accountants to study the fallout of the scam at Satyam Computer Services Ltd has suggested the formation of a separate regulatory framework to oversee foreign entities providing a range of management consultancy, auditing and other services to Indian clients.
