"13 April 2016" Archive

Overseas Direct Investment– Rationalization & reporting of ODI Forms

RBI//2015-16/374 A.P. (DIR Series) Circular No. 62 (13/04/2016)

A new reporting format has also been introduced for Venture Capital Fund (VCF) / Alternate Investment Fund (AIF), Portfolio Investment and overseas investment by Mutual Funds as per the format in Annex II and Annex III. In case of reporting purchase and repurchase of ESOPs, the AD banks may continue to report the same in the existing form...

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Overseas Direct Investment – Submission of Annual Performance Report

RBI/2015-16/373 A.P. (DIR Series) Circular No.61 (13/04/2016)

The online OID application has been suitably modified to enable the nodal office of the AD bank to view the outstanding position of all the APRs pertaining to an applicant including for those JV / WOS for which it is not the designated AD bank. Accordingly, the AD bank, before undertaking / facilitating any ODI related transaction on beha...

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Revised Criteria for Issue of Rupee denominated bonds overseas

RBI/2015-16/372 A.P. (DIR Series) Circular No. 60 (13/04/2016)

In order to have consistency regarding eligibility of foreign investors in corporate debt, the criteria for investors and location for issuance of these bonds has been modified. The Rupee denominated bonds can only be issued in a country and can only be subscribed by a resident of a country: that is a member of Financial Action Task Force...

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Acceptance of deposits by Indian companies from a person resident outside India for nomination as Director

RBI/2015-16/371 A.P. (DIR Series) Circular No.59 (13/04/2016)

Under section 160 of the Companies Act, 2013, it is provided that a person who intends to nominate himself or any other person as a director in an Indian company is required to place a deposit with the said company. In this context, it has come to the notice of the Reserve Bank that there is ambiguity whether such deposits will require a...

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CENVAT Credit (Fifth Amendment) Rules, 2016

Notification No. 24/2016-Central Excise (N.T.) (13/04/2016)

Provided also that CENVAT Credit of Service Tax paid in a financial year, on the one-time charges payable in full upfront or in instalments, for the service of assignment of the right to use any natural resource by the Government, local authority or any other person, shall be spread evenly over a period of three years:...

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Anti-dumping duty on Normal Butanol or N-Butyl Alcohol,

Notification No. 13/2016-Customs (ADD) (13/04/2016)

Whereas, in the matter of ‘Normal Butanol or N-Butyl Alcohol’ (hereinafter referred to as the subject goods), falling under tariff item 2905 13 00 of Chapter 29 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act), originating in, or exported from the European Union, M...

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Assessment of holding company with notice to subsidiary is invalid

Techpac Holdings Ltd. Vs DCIT (Bombay High Court)

High Court held that as the issue of service of notices under sections 148, 142(1) and 143(2) are concerned, it is an admitted position that the said notices were never served on the Petitioner. The Revenue seeks to justify service of these notices on the Petitioner by contending that they have served the said notices on the last known a...

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No TDS on payment to non-resident which not taxable in India

M/s. Sesa Resources Ltd. Vs DCIT/Union of India (Bombay High Court)

Bombay High Court held In the case of M/s. Sesa Resources Ltd. vs. DCIT/Union of India that in the Judgment of the Division Bench in the case of Gujarat Reclaim & Rubber Products Ltd. Income Tax Appeal No.169/2014 dated 08.12.2015, it was held that before effecting deduction at source one of the aspects to be examined is whether such inco...

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Reopening for escaped assessment w.r.t. exempt income not valid

Nirmal Bang Securities Pvt. Ltd. Vs ACIT (Bombay High Court)

High Court held that section 10(33) provides that any income by way of (i) dividends referred to in section 115-O; or (ii) income received in respect of the units from the Unit Trust of India established under the Unit Trust of India Act, 1963; or (iii) income received in respect of units of a mutual fund specified under section 10(23D)...

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No further addition if addition not made on re-assessment reasons

Anugrah Varshney Vs ITO (ITAT Agra)

In the absence of any addition having been made on incomes which the AO had reason to believe had escaped assessment, no addition of any other income could have been made and that the AO had exceeded his jurisdiction in passing the impugned order u/s 147....

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