“Survey and map-making” means geological, geophysical or any other prospecting, surface, sub-surface or aerial surveying or map-making of any kind, but does not include survey and exploration of mineral. “Taxable Service” means any service provided or to be provided to any person, by any other person, other than by an agency under the control of, or authorised by, the Government, in relation to survey and map-making.
Reserve Bank of India (RBI) has, on 15 March 2011, notified a revised procedure for reporting of all Foreign Direct Investment (FDI), both inward and outward. RBI has replaced Part B of Form FC-GPR (annual filing by Indian companies with regard to foreign investment) by “Annual Return on Foreign Liabilities and Assets” (the Return). On a go forward basis, Indian companies will have to furnish the Return in the specified format to the Department of Statistics and Information Management (DSIM), RBI, Mumbai. The information provided in the Return will be considered confidential and only consolidated aggregates will be used by RBI for compilation and publication of India’s Balance of Payments (BoP), International Investment Position (IIP), Coordinated Direct Investment and Coordinated Portfolio Investment.
The Finance Bill, 2011 has introduced certain changes in the existing transfer pricing regime both in terms of substantive law and procedural aspects. Further, as part of a new anti-avoidance measure introduced in the Budget, the scope of TP legislation has been expanded to cover entities located in notified tax havens.
Before making an attempt to understand provisions of Point of Taxation Rules, 2011 (PoTR), it will be necessary to explore the meaning of certain terminology used. In the process of taxation, the first step is levy of tax. Levy is linked with certain event. On triggering of the certain event, the transaction becomes taxable. It is known as Taxable Event. In the second stage, once an event has become taxable, the question of collection of tax will arise. The statute will provide for the event or time whereat it will become point of taxation. In the third step, the statute will provide for the time period or another event on occurring of which tax will have to be paid. Thus, as can be seen, the concept of levy, collection and payment of tax are fundamental aspects of any fiscal law. For example, in case of CE, under the Central Excise Act, 1944 duty is levied on excisable goods produced or manufactured in India. Under Central Excise Rule, 2002 CE duty is required to be paid on removal of goods from factory or warehouse. Thus, levy of duty is on manufacture or production of goods which is the taxable event and point of taxation is the removal of goods. Actual payment of duty is governed by the Excise Rules which is generally the 5th or 6th date of the month following the month in which goods are removed.
On 4 March, 2011, the Ministry of Corporate Affairs issued four draft notifications relating to Combinations whereby: 1. 1 June, 2011 has been appointed as the date on which the provisions relating to Combinations would come into force; 2. The threshold limit prescribed in section 5 for an acquisition or merger to constitute a Combination requiring mandatory notification to the Competition Commission of India (CCI) has been raised by 50%, on the basis of the wholesale price index. The Act currently prescribes the following thresholds:
On 1 March, 2011, the Competition Commission of India (“CCI”) published new draft regulations, The Competition Commission of India (Procedure in regard to the transaction of business relating to combination) Regulations, 2011. Some key features of the draft regulations are: Consultation prior to filing notice of proposed combination: Parties to a proposed combination may make written request seeking informal and verbal consultation with the CCI about filing notices. However, CCI would not be bound by any opinion or view expressed during consultation.
The Karnataka State Budget for the year 2011-12 was presented on 24 February, 2011. In line with the earlier budgets, Karnataka State Budget has proposed many changes in stamp duty rates. One of the key proposed changes is the reduction in the stamp duty rate on court order sanctioning the merger / demerger of companies. We have highlighted below, two of the key amendments concerning the Mergers and Acquisitions.
Highlights Of The Budget Presented By Deputy Chief Minister Shri Ajit Pawar, On Wednesday, 23rd March 2011. PART-I + Remarkable growth in revenues of the State • 2009-10 Revenue Receipts Rs.86,910 crore, 2010-11 Revenue Receipts Rs. 1,07,159 crore
The Union Finance Minister (FM) on 22 March 2011, introduced a Constitution Amendment Bill (the Bill) in the Lok Sabha to enable the implementation of ‘Goods and Service Tax’ (GST), an indirect tax regime that would subsume levies like excise, service tax and sales tax. The Bill seeks to amend the Constitution to authorise both the Centre and the States to levy taxes on supply of goods and services. This Bill is a culmination of three Draft Amendment Bills circulated by the Central Government – the First Draft dated 21 July 2010, the Second Draft dated 11 August 2010 and the Third Draft dated 28 January 2011.
Addition to list of powers and functions of the Central Government delegated to ROC: Earlier, the grant of license for formation of a company which intends to apply its profits or other income in promoting its objects (i.e. objects of promoting commerce, art, science, religion, charity or any other useful object) and prohibits payment of any dividend to its members [popularly known as section 25 company] was delegated to the RD. Now, such powers to grant license under section 25 has been delegated to the ROC.
