It has come to our notice that some Indian companies are accessing overseas market for debt funds through overseas holding / associate / subsidiary / group companies. It has also been reported that such borrowings are raised at rates exceeding the ceiling applicable in terms of extant FEMA regulations and that the funds so raised are routed to the Indian companies which accounts for sole/major operations of the group. RBI/2014-15/316 A.P. (DIR Series) Circular No. 41
It is very common in works contracts for the main contractor who got the work awarded in his name to off-load the work to sub-contractor(s). The sub-contractor procures the materials, installs the materials as per the contractual terms & conditions and transfer of property in the materials take place between the sub-contractor and contractee.
The exemption granted in respect of filing of the returns under the CST Act was posing difficulties in generating the lists of returns defaulters under the CST Act in the automation system i.e. Mahavikas.
