The document provides an overview of External Commercial Borrowings (ECB) regulations in India. It defines ECB as bank loans, trade credits beyond 3 years, bonds/debentures without convertibility, financial leases, and borrowings from multilateral institutions, among others. The regulator is the Government of India with support from the Reserve Bank of India. Indian companies can access foreign funds through ECB, FCCBs, preference shares/FCEB, and rupee denominated bonds overseas. Eligible borrowers include entities eligible for FDI, port trusts, SEZ units, SIDBI, oil marketing companies, and microfinance organizations. Recognized lenders must be residents of FAFT or IOSCO
This document provides an overview of the key aspects of the Foreign Exchange Management Act (FEMA). It begins with a brief introduction to FEMA and outlines the rationale behind its enactment. It then discusses the various rules, regulations, directives and circulars issued under FEMA. Key definitions from the Act are also summarized. The document provides a schematic flow of the legal framework under FEMA and highlights some important sections of the Act. It concludes with a tabular representation of the various regulations issued by the Reserve Bank of India under FEMA. In summary, the document gives a high-level overview of the structure and content of FEMA and the legal and regulatory framework governing foreign exchange transactions in India.
Rationale behind the Act
Effective date of new Act
Applicability of the Act
Its size and nature
49 Sections
6 Rules
25 Regulations
Other related matters
The document provides an overview of the real estate business in India and discusses various accounting, taxation, and legal aspects. Some key points:
1) The real estate sector is a major contributor to the Indian economy but faces challenges like high costs, regulatory hurdles, and delays.
2) Revenue from real estate development can be recognized using the percentage of completion method or completed contract method under AS-7.
3) Presumptive taxation schemes like section 44AD provide relief for small builders from maintaining books but require following the scheme for 5 years.
4) Conversion of capital assets into stock attracts capital gains tax based on fair market value on the date of conversion, while the difference on sale
Introduction of ICDS
Applicability of ICDS
Scope
Terms covered
Classification of Items
Recognition and Measurement
Initial Recognition
Subsequent Recognition
Exchange Differences
Differences between AS-11 and ICDS – VI
The document provides an overview of export refunds under GST. It discusses key concepts like zero rated supplies, which include exports and supplies to SEZ. It outlines the different types of export refunds available under GST such as export of goods/services upon payment of IGST or under bond/LUT. The document then analyzes section 54 of the CGST Act regarding refund procedures. It discusses refund eligibility for zero rated supplies and supplies with an inverted tax structure. Key points like time limits for refund claims and restrictions are also summarized.
IBC code – overview:
Insolvency precedes bankruptcy and liquidation follows bankruptcy.
Insolvency warnings:
drop in sales
delay in payments
Increasing reliance on credit
Cash flow test:
when cash flow IN s less than cash flow OUT flow.
Presentation on MSME - Cash Less Economy - Relevant to Direct TaxesAdmin SBS
1. The document outlines income tax rates for individuals, HUFs, AOPs, BOIs, and AJPs in India for the fiscal year 2017-18. It provides tax slabs and rates for residents below 60 years of age, residents aged 60 or more, and residents aged 80 or more.
2. Key highlights from the tax rates include a rebate of Rs. 2,500 for resident individuals with income up to Rs. 3.5 lakh and tax rates ranging from nil to 30% depending on the income slab. Surcharge of 10-15% is applicable if total income exceeds Rs. 50 lakh or Rs. 1 crore respectively.
3. The
This document provides an overview of the key aspects of the Foreign Exchange Management Act (FEMA). It begins with a brief introduction to FEMA and outlines the rationale behind its enactment. It then discusses the various rules, regulations, directives and circulars issued under FEMA. Key definitions from the Act are also summarized. The document provides a schematic flow of the legal framework under FEMA and highlights some important sections of the Act. It concludes with a tabular representation of the various regulations issued by the Reserve Bank of India under FEMA. In summary, the document gives a high-level overview of the structure and content of FEMA and the legal and regulatory framework governing foreign exchange transactions in India.
Rationale behind the Act
Effective date of new Act
Applicability of the Act
Its size and nature
49 Sections
6 Rules
25 Regulations
Other related matters
The document provides an overview of the real estate business in India and discusses various accounting, taxation, and legal aspects. Some key points:
1) The real estate sector is a major contributor to the Indian economy but faces challenges like high costs, regulatory hurdles, and delays.
2) Revenue from real estate development can be recognized using the percentage of completion method or completed contract method under AS-7.
3) Presumptive taxation schemes like section 44AD provide relief for small builders from maintaining books but require following the scheme for 5 years.
4) Conversion of capital assets into stock attracts capital gains tax based on fair market value on the date of conversion, while the difference on sale
Introduction of ICDS
Applicability of ICDS
Scope
Terms covered
Classification of Items
Recognition and Measurement
Initial Recognition
Subsequent Recognition
Exchange Differences
Differences between AS-11 and ICDS – VI
The document provides an overview of export refunds under GST. It discusses key concepts like zero rated supplies, which include exports and supplies to SEZ. It outlines the different types of export refunds available under GST such as export of goods/services upon payment of IGST or under bond/LUT. The document then analyzes section 54 of the CGST Act regarding refund procedures. It discusses refund eligibility for zero rated supplies and supplies with an inverted tax structure. Key points like time limits for refund claims and restrictions are also summarized.
IBC code – overview:
Insolvency precedes bankruptcy and liquidation follows bankruptcy.
Insolvency warnings:
drop in sales
delay in payments
Increasing reliance on credit
Cash flow test:
when cash flow IN s less than cash flow OUT flow.
Presentation on MSME - Cash Less Economy - Relevant to Direct TaxesAdmin SBS
1. The document outlines income tax rates for individuals, HUFs, AOPs, BOIs, and AJPs in India for the fiscal year 2017-18. It provides tax slabs and rates for residents below 60 years of age, residents aged 60 or more, and residents aged 80 or more.
2. Key highlights from the tax rates include a rebate of Rs. 2,500 for resident individuals with income up to Rs. 3.5 lakh and tax rates ranging from nil to 30% depending on the income slab. Surcharge of 10-15% is applicable if total income exceeds Rs. 50 lakh or Rs. 1 crore respectively.
3. The
The document discusses various transitional provisions under GST relating to carry forward of credits from existing tax laws to GST. It addresses questions around treatment of closing balances, stock credits, capital goods credits, input tax credits for inputs in transit, and treatment of registered persons engaged in both taxable and exempted activities. Key provisions covered include migration of existing taxpayers to GST, availment of input tax credit on closing balances as per last returns, deemed credit for inputs in stock, and carry forward of unavailed capital goods credit. Conditions, timelines and clarifications relating to these transitional measures are also provided.
Overview of Real Estate (Regulation & Development) ActAdmin SBS
The document discusses the Real Estate (Regulation & Development) Act and its provisions regarding construction approvals, RERA implementation across states, and objectives of the Act. It provides details on the key authorities under RERA including the Real Estate Regulatory Authority and Appellate Tribunal. It summarizes the promoter's mandatory registration requirements, functions of RERA, monitoring of projects, functions and duties of promoters, and rights of allottees as established by RERA.
Issues in Export & Import of Goods & Services vis-a-vis Foreign Trade PolicyGST Law India
The following presentation enumerates various issues related to import and export of goods under GST like modes of exports, zero-rated supply, supplies to SEZ and others, how to claim refund of ITC and IGST by using different forms. Further, it deals with methods to rectify mistakes in the respective refund forms under GST.
Objectives
Introduction
What is Remittance???
Who are Non-residents???
Relevant Notifications and Circulars
Which assets can be remitted?
How are assets remitted?
Legal Compliances (In special cases)
The document summarizes key amendments made to various sections of the CGST Act, 2018 through the CGST (Amendment) Act, 2018. Some of the key amendments include expanding the scope of supply, allowing input tax credit for goods/services received by the registered person even if not physically received, increasing the threshold for composition scheme to Rs. 1.5 crores, and clarifying the treatment of input tax credit for motor vehicles and vessels/aircrafts used for transportation.
- Section 68 of the Income Tax Act allows the tax authority to treat any unexplained sum appearing in the books of an assessee as income if the assessee cannot provide a satisfactory explanation of its nature and source.
- Key questions around Section 68 include whether the sum is considered income, the tax rate applied, and whether losses can be set off against such income.
- Penny stocks are sometimes used to convert unaccounted money into accounted money using tax exemptions, but recent amendments aim to restrict this.
- The "peak credit theory" examines cash deposits and withdrawals to determine the maximum unexplained sum taxable under Section 68.
The document outlines new reverse charge mechanisms for certain taxable services in India. Under the new rules:
1) For certain specified services like insurance agency, transportation of goods, sponsorship, legal services, and services provided from outside India, the recipient of the service will now be liable to pay 100% of the service tax, instead of the service provider.
2) For other services like renting of vehicles, supply of manpower, and service portion of works contracts, the service tax will be split between the provider and recipient.
3) The point of taxation for reverse charge services will now be the date of payment by the recipient, or earlier dates in some cases involving associated enterprises.
4)
The document discusses provisions around place of supply under the Integrated Goods and Services Tax (IGST) Act. It explains that IGST is levied on inter-state supplies of goods or services. It outlines the key provisions to determine whether a supply is inter-state or intra-state, including looking at the location of the supplier and place of supply. It also summarizes the relevant sections that govern place of supply of goods (Section 10), imports/exports of goods (Section 11), and place of supply of services (Section 12).
Topics to be covered:
Introduction of ICDS
Applicability of ICDS
Scope
Identification of tangible assets
Components of Actual cost
Special cases
Inclusions and Exclusions
Self-constructed tangible fixed asset
Non-monetary consideration
Improvements and Repairs
Joint ownership and Joint cost
Transitional provisions
Differences between ICDS V, AS-10 and Ind-AS-16
This document provides an overview of the statutory requirements for annual returns and audits under the Goods and Services Tax (GST) in India. It discusses key provisions regarding the requirement for audits based on annual turnover thresholds, the types of annual returns to be filed by different registered taxpayers, and the reconciliation statement that must be submitted along with audited annual accounts. The reconciliation statement aims to reconcile the turnover and tax amounts declared in the annual return with the audited financial statements. The document also clarifies differences in the turnover thresholds referenced in the GST law versus rules.
Introduction:
Section 11 deals with Income from property held for “Charitable or Religious purposes.”
The income shall be subjected to the provisions of
Section 60 - Transfer of Income where there is no transfer of assets
Section 61 - Revocable Transfer of Assets
Section 62 - Transfer irrevocable for a specified period
The document provides an overview of refunds under the GST regime in India. It discusses 12 situations in which refunds may arise, the relevant legal provisions, definitions of refunds, time limits for claiming refunds, refund procedures, basic features of refunds including adjustment, withholding, interest payment and documents required. Refunds can arise due to excess tax payment, exports, provisional assessments, court/tribunal orders and other scenarios.
By CA.Shweta Ajmera- TDS on payment made to Non residents u/s section 195,MLI...Shweta Ajmera
Tax deducted at source/ Withholding tax u/s 195 of Income TAx Act in India, Withholding tax liability as per DTAA, MLI Income on TDS on payment made to NR, Form 15CA &Form 15CB compliances. and Declaration , Indemnificaton in recent scenario.
Regards:
CA.Shweta Ajmera
cashwetaajmera@gmail.com
Article is about when to apply GST Refund when goods or services are exported out of India. Legal provisions for process of GST refund scheme. GST is a destination based consumption tax where in the levy of tax moves along with goods and /or services.where a goods exporter is not in position to utilize the GST paid in inputs such as raw material , inputs etc. which are used for export of goods shall apply for refund of GST paid by goods exporter. By taking GST Refund Exporter of Goods can increase its business working capital.
Case Studies of Place of Supply Including Exports-Imports and RefundsGST Law India
the following presentation enumerates a brief study on GST in case of Cross-border Air Travel, work contracts, Hotel Accommodation, Event Organization ,Immovable Property – Place of Supply & ITC Eligibility, Cross-Border Logistic Services, Cross-Border Intermediary Services, Whether Foreign Company can procure goods from India on Bill to-Ship to basis where ship to Location is India, Supply of FOC promotional material to related and unrelated parties outside India, Use of Trademark owned by Foreign-Related Company, Refund of unutilized credit accumulated due to inverted duty structure and lastly Refund of unutilized credit on zero-rated supply
This document provides the TDS and TCS rate charts for the financial year 2021-22 in India. It outlines the various sections where tax is deducted at source, the threshold limits, and applicable tax rates. Some key points include:
- TDS is deducted on interest, dividends, professional fees, rent, commission, contract payments, and withdrawals over certain thresholds at rates ranging from 1-30%.
- TCS is collected on scrap, tendu leaves, minerals, liquor, parking lots, motor vehicle sales, overseas tour packages, and goods sales over Rs. 50 lakhs at 0.1-5%.
- Higher rates of TDS/TCS apply to non-
Filing of income tax return including e filing - sanjeev patelSanjeev Patel
The document discusses various aspects of filing income tax returns in India, including:
1) Individuals, HUFs, AOPs, BOIs, and artificial juridical persons must file a return if their income exceeds the maximum amount not subject to tax.
2) Companies and firms must file returns regarding their income or loss for each previous year.
3) Returns can be filed in paper, electronically with digital signature, or electronically and later verified. E-filing provides advantages like convenience and faster processing.
The document summarizes key changes to the Indian Income Tax law. Some of the major changes include:
- The corporate tax rate has been reduced to 25% for domestic companies with turnover less than 250 crores in FY 2016-17.
- Long term capital gains from equity shares exceeding 1 lakh will be taxed at 10%.
- Deductions have been increased for medical expenditures for senior citizens to Rs. 50,000 and Rs. 1 lakh for very senior citizens.
- Benefits have been extended to startups including a 100% deduction for 3 years for eligible startups incorporated between April 1, 2019 to March 31, 2021 with turnover less than 25 crores.
This document provides an analysis of India's inbound investment regulations under the Foreign Exchange Management Act (FEMA). It begins with an agenda that outlines key topics like the introduction to FEMA, definitions, rules and regulations, foreign direct investment processes like share allotment and transfer, and other related matters. It then discusses the various acts, regulations, master directions, circulars, and other documents that make up India's foreign investment law framework. Key definitions from FEMA are also outlined. The document provides an overview of rules and regulations related to foreign investment and identifies the different types of foreign investment routes in India.
The document provides an overview of foreign currency accounts that can be maintained in India by non-residents, including NRE accounts denominated in Indian rupees, and FCNR(B) accounts denominated in permitted foreign currencies. Key details covered include eligible account holders, permitted credits and debits, interest rates, and rules regarding change of residential status. Regulations governing these accounts are provided under the Foreign Exchange Management Act and by the Reserve Bank of India.
The document discusses various transitional provisions under GST relating to carry forward of credits from existing tax laws to GST. It addresses questions around treatment of closing balances, stock credits, capital goods credits, input tax credits for inputs in transit, and treatment of registered persons engaged in both taxable and exempted activities. Key provisions covered include migration of existing taxpayers to GST, availment of input tax credit on closing balances as per last returns, deemed credit for inputs in stock, and carry forward of unavailed capital goods credit. Conditions, timelines and clarifications relating to these transitional measures are also provided.
Overview of Real Estate (Regulation & Development) ActAdmin SBS
The document discusses the Real Estate (Regulation & Development) Act and its provisions regarding construction approvals, RERA implementation across states, and objectives of the Act. It provides details on the key authorities under RERA including the Real Estate Regulatory Authority and Appellate Tribunal. It summarizes the promoter's mandatory registration requirements, functions of RERA, monitoring of projects, functions and duties of promoters, and rights of allottees as established by RERA.
Issues in Export & Import of Goods & Services vis-a-vis Foreign Trade PolicyGST Law India
The following presentation enumerates various issues related to import and export of goods under GST like modes of exports, zero-rated supply, supplies to SEZ and others, how to claim refund of ITC and IGST by using different forms. Further, it deals with methods to rectify mistakes in the respective refund forms under GST.
Objectives
Introduction
What is Remittance???
Who are Non-residents???
Relevant Notifications and Circulars
Which assets can be remitted?
How are assets remitted?
Legal Compliances (In special cases)
The document summarizes key amendments made to various sections of the CGST Act, 2018 through the CGST (Amendment) Act, 2018. Some of the key amendments include expanding the scope of supply, allowing input tax credit for goods/services received by the registered person even if not physically received, increasing the threshold for composition scheme to Rs. 1.5 crores, and clarifying the treatment of input tax credit for motor vehicles and vessels/aircrafts used for transportation.
- Section 68 of the Income Tax Act allows the tax authority to treat any unexplained sum appearing in the books of an assessee as income if the assessee cannot provide a satisfactory explanation of its nature and source.
- Key questions around Section 68 include whether the sum is considered income, the tax rate applied, and whether losses can be set off against such income.
- Penny stocks are sometimes used to convert unaccounted money into accounted money using tax exemptions, but recent amendments aim to restrict this.
- The "peak credit theory" examines cash deposits and withdrawals to determine the maximum unexplained sum taxable under Section 68.
The document outlines new reverse charge mechanisms for certain taxable services in India. Under the new rules:
1) For certain specified services like insurance agency, transportation of goods, sponsorship, legal services, and services provided from outside India, the recipient of the service will now be liable to pay 100% of the service tax, instead of the service provider.
2) For other services like renting of vehicles, supply of manpower, and service portion of works contracts, the service tax will be split between the provider and recipient.
3) The point of taxation for reverse charge services will now be the date of payment by the recipient, or earlier dates in some cases involving associated enterprises.
4)
The document discusses provisions around place of supply under the Integrated Goods and Services Tax (IGST) Act. It explains that IGST is levied on inter-state supplies of goods or services. It outlines the key provisions to determine whether a supply is inter-state or intra-state, including looking at the location of the supplier and place of supply. It also summarizes the relevant sections that govern place of supply of goods (Section 10), imports/exports of goods (Section 11), and place of supply of services (Section 12).
Topics to be covered:
Introduction of ICDS
Applicability of ICDS
Scope
Identification of tangible assets
Components of Actual cost
Special cases
Inclusions and Exclusions
Self-constructed tangible fixed asset
Non-monetary consideration
Improvements and Repairs
Joint ownership and Joint cost
Transitional provisions
Differences between ICDS V, AS-10 and Ind-AS-16
This document provides an overview of the statutory requirements for annual returns and audits under the Goods and Services Tax (GST) in India. It discusses key provisions regarding the requirement for audits based on annual turnover thresholds, the types of annual returns to be filed by different registered taxpayers, and the reconciliation statement that must be submitted along with audited annual accounts. The reconciliation statement aims to reconcile the turnover and tax amounts declared in the annual return with the audited financial statements. The document also clarifies differences in the turnover thresholds referenced in the GST law versus rules.
Introduction:
Section 11 deals with Income from property held for “Charitable or Religious purposes.”
The income shall be subjected to the provisions of
Section 60 - Transfer of Income where there is no transfer of assets
Section 61 - Revocable Transfer of Assets
Section 62 - Transfer irrevocable for a specified period
The document provides an overview of refunds under the GST regime in India. It discusses 12 situations in which refunds may arise, the relevant legal provisions, definitions of refunds, time limits for claiming refunds, refund procedures, basic features of refunds including adjustment, withholding, interest payment and documents required. Refunds can arise due to excess tax payment, exports, provisional assessments, court/tribunal orders and other scenarios.
By CA.Shweta Ajmera- TDS on payment made to Non residents u/s section 195,MLI...Shweta Ajmera
Tax deducted at source/ Withholding tax u/s 195 of Income TAx Act in India, Withholding tax liability as per DTAA, MLI Income on TDS on payment made to NR, Form 15CA &Form 15CB compliances. and Declaration , Indemnificaton in recent scenario.
Regards:
CA.Shweta Ajmera
cashwetaajmera@gmail.com
Article is about when to apply GST Refund when goods or services are exported out of India. Legal provisions for process of GST refund scheme. GST is a destination based consumption tax where in the levy of tax moves along with goods and /or services.where a goods exporter is not in position to utilize the GST paid in inputs such as raw material , inputs etc. which are used for export of goods shall apply for refund of GST paid by goods exporter. By taking GST Refund Exporter of Goods can increase its business working capital.
Case Studies of Place of Supply Including Exports-Imports and RefundsGST Law India
the following presentation enumerates a brief study on GST in case of Cross-border Air Travel, work contracts, Hotel Accommodation, Event Organization ,Immovable Property – Place of Supply & ITC Eligibility, Cross-Border Logistic Services, Cross-Border Intermediary Services, Whether Foreign Company can procure goods from India on Bill to-Ship to basis where ship to Location is India, Supply of FOC promotional material to related and unrelated parties outside India, Use of Trademark owned by Foreign-Related Company, Refund of unutilized credit accumulated due to inverted duty structure and lastly Refund of unutilized credit on zero-rated supply
This document provides the TDS and TCS rate charts for the financial year 2021-22 in India. It outlines the various sections where tax is deducted at source, the threshold limits, and applicable tax rates. Some key points include:
- TDS is deducted on interest, dividends, professional fees, rent, commission, contract payments, and withdrawals over certain thresholds at rates ranging from 1-30%.
- TCS is collected on scrap, tendu leaves, minerals, liquor, parking lots, motor vehicle sales, overseas tour packages, and goods sales over Rs. 50 lakhs at 0.1-5%.
- Higher rates of TDS/TCS apply to non-
Filing of income tax return including e filing - sanjeev patelSanjeev Patel
The document discusses various aspects of filing income tax returns in India, including:
1) Individuals, HUFs, AOPs, BOIs, and artificial juridical persons must file a return if their income exceeds the maximum amount not subject to tax.
2) Companies and firms must file returns regarding their income or loss for each previous year.
3) Returns can be filed in paper, electronically with digital signature, or electronically and later verified. E-filing provides advantages like convenience and faster processing.
The document summarizes key changes to the Indian Income Tax law. Some of the major changes include:
- The corporate tax rate has been reduced to 25% for domestic companies with turnover less than 250 crores in FY 2016-17.
- Long term capital gains from equity shares exceeding 1 lakh will be taxed at 10%.
- Deductions have been increased for medical expenditures for senior citizens to Rs. 50,000 and Rs. 1 lakh for very senior citizens.
- Benefits have been extended to startups including a 100% deduction for 3 years for eligible startups incorporated between April 1, 2019 to March 31, 2021 with turnover less than 25 crores.
This document provides an analysis of India's inbound investment regulations under the Foreign Exchange Management Act (FEMA). It begins with an agenda that outlines key topics like the introduction to FEMA, definitions, rules and regulations, foreign direct investment processes like share allotment and transfer, and other related matters. It then discusses the various acts, regulations, master directions, circulars, and other documents that make up India's foreign investment law framework. Key definitions from FEMA are also outlined. The document provides an overview of rules and regulations related to foreign investment and identifies the different types of foreign investment routes in India.
The document provides an overview of foreign currency accounts that can be maintained in India by non-residents, including NRE accounts denominated in Indian rupees, and FCNR(B) accounts denominated in permitted foreign currencies. Key details covered include eligible account holders, permitted credits and debits, interest rates, and rules regarding change of residential status. Regulations governing these accounts are provided under the Foreign Exchange Management Act and by the Reserve Bank of India.
This document provides a summary of key changes to India's foreign exchange management framework and external commercial borrowing (ECB) regulations as per recent notifications by the Reserve Bank of India (RBI).
Some major changes include merging different categories of foreign currency denominated ECB and Indian rupee denominated ECB, expanding the list of eligible borrowers to include all entities eligible to receive foreign direct investment, and recognized lenders to allow more flexibility. The maximum maturity period for ECB has also been standardized irrespective of amount borrowed.
Overall, the revisions aim to consolidate and streamline rules for overseas borrowing and lending, ease norms to improve ease of doing business, and rationalize various provisions to provide more opportunities for foreign funding.
The document provides an overview of the Foreign Exchange Management Act (FEMA) of 1999 in India. It discusses [1] the objectives of FEMA to facilitate external trade and payments while maintaining an orderly foreign exchange market; [2] the important sections of FEMA regarding current account and capital account transactions; and [3] the mechanisms under FEMA involving notifications, rules and regulations issued by the Government and Reserve Bank of India.
The document outlines an overview of the Foreign Exchange Management Act (FEMA) and the Prevention of Money Laundering Act (PMLA) presented by Mr. Paresh P. Shah. It discusses key topics such as:
1) Important definitions under FEMA including capital account transactions, current account transactions, and definitions of resident and non-resident individuals.
2) Fundamentals of FEMA including that foreign exchange belongs to the government of India except with permission, dealings in foreign exchange are regulated, and permissible capital/current account transactions are specific to their purpose.
3) An overview of the structure and enforcement process of PMLA including the roles of the Financial Intelligence Unit, Directorate of
This document provides an overview of a three day workshop on the Foreign Exchange Management Act (FEMA). It discusses key topics that will be covered, including an overview of FEMA, important definitions, fundamentals of FEMA, FEMA practices, schemes for inbound investment, foreign direct investment in India, and external commercial borrowings. It also lists abbreviations relevant to FEMA and provides summaries of some important sections of FEMA, including sections on dealing in foreign exchange, capital account transactions, and definitions of persons resident in India.
The document provides an overview of key provisions related to inbound foreign investment under India's Foreign Exchange Management Act (FEMA). It discusses the structure of FEMA and differences between FEMA and income tax regulations. It then summarizes provisions for foreign direct investment, including prohibited sectors, automatic vs. approval routes, and procedural compliance requirements. Specific policies for sectors like construction, NBFCs, and trading are also outlined.
The Present Publication is the 57th Edition & Updated till Income-tax (20th Amendment) Rules, 2020 with the following noteworthy features:
·Taxmann’s series of Bestseller Books for more than Five
Decades
· Incorporates all the changes made till the Income-tax (20th
Amendment) Rules, 2020
· Follows the Six Sigma Approach to Achieve the Benchmark of
‘Zero Error’
· Coverage of this book includes:
o All Rules and Schemes, which are either notified under the Income-tax Act or are referred to in different provisions of the Income-tax Act, are covered
o Contains 23 divisions covering all Rules relevant under the Income-tax Act i.e.,
§ Income-tax Rules
§ ICDS
§ STT Rules
§ Equalisation Levy Rules
§ Small Saving Schemes, etc.
· All Forms Carry Action Points that explains the Relevant
Provisions and Process of Filing
· All Redundant and e-Forms are Marked for Quick
Identifications
The document summarizes recent regulatory changes by the Reserve Bank of India (RBI) and the Ministry of Corporate Affairs (MCA) in India. It discusses:
1) RBI rationalizing overseas direct investment reporting forms and allowing online reporting.
2) RBI providing details on issuing rupee denominated bonds overseas and instructions on submitting annual performance reports for overseas investments.
3) MCA extending deadlines for filing various e-forms and notifying new e-form versions.
4) The Indian government exempting 10 types of government services from service tax and making amendments to service tax determination rules and point of taxation rules regarding government services.
SEBI has directed Stock Exchanges to penalize the listed Companies for Non-Compliance with the provisions of the Listing Regulations (LODR) & Circulars/Guidelines issued thereunder. Circular includes a list of Penalties to be imposed in respect of Non-Compliance of various Regulations.
Penalty for Non-Compliances goes up to 5,000 per Day (in Some Cases it is 50,000 per instance)
For more Updates Sign Up Now: https://lexbuddy.com
LexComply - Compliance Management Software India
This document provides an overview of foreign direct investment (FDI) policy and procedures in India. It defines key terms like resident, non-resident Indian, and person of Indian origin. It describes the different types of FDI, entities permitted to invest, instruments used, and the process for allotting shares to foreign investors. The document also outlines prohibited sectors for FDI, rules for investment in firms and limited liability partnerships, and procedures for transferring shares. It discusses recent changes to FDI regulations through the Finance Act of 2015.
Delhi ctc's intensive study course on fema fdi & llp 24.03.2018P P Shah & Associates
The document provides information about a two-day intensive study course on foreign inbound investment regulations under FEMA. It will cover Schedules 1, 4 and 6 of FEMA Notification 20(R) regarding FDI, investment by NRIs on a non-repatriation basis, and investment in a Limited Liability Partnership. The course will be presented by Mr. Paresh P. Shah and will provide an overview of FEMA practice and regulations as well as practical issues related to FDI policy and select sectors.
The document provides an overview of the Foreign Exchange Management Act (FEMA) of 1999 in India. It discusses that FEMA was introduced to replace the previous Foreign Exchange Regulation Act (FERA) of 1973 to facilitate external trade and payments. FEMA regulates all foreign exchange transactions in India and aims to promote an orderly foreign exchange market. It consolidates various rules and regulations pertaining to foreign exchange under the Reserve Bank of India. FEMA also introduced a more liberal and investor-friendly framework compared to the previous FERA.
The document summarizes recent changes to India's foreign exchange laws as announced by the Reserve Bank of India in various circulars. Key changes include removing the USD 20 million limit for buyer's credit extended to foreign buyers for exports, liberalizing FDI limits in the insurance sector to 49% with certain conditions, enabling online reporting of foreign investment forms through the e-Biz portal, and dispensing with the requirement to declare software and certain goods exports in the Shipping Declaration Form. The document provides contact information for any clarifications on the foreign exchange law updates.
This document provides an overview and introduction to the Foreign Exchange Management Act (FEMA) presented by Mr. Paresh P. Shah.
It begins with an overview of FEMA, including its objectives to facilitate external trade and payments and promote an orderly foreign exchange market. It discusses key sections of FEMA and amendments made by the Finance Act of 2015. It then defines important terms under FEMA such as capital account transactions, current account transactions, resident in India, and resident outside India.
The document also summarizes the fundamentals of FEMA, including that foreign exchange belongs to the Government of India except with permission, and that dealing in foreign exchange by residents in India and outside India is regulated. It highlights sections
This document provides an overview of a presentation on the provisions of the Foreign Exchange Management Act (FEMA) given by Mr. Paresh P. Shah.
The presentation covered: 1) The transition from the Foreign Exchange Regulation Act (FERA) to FEMA to liberalize foreign exchange rules; 2) An overview of FEMA and its key sections; 3) Capital account transactions regulated under FEMA and the corresponding notifications; 4) Current account transactions allowed under FEMA. The document provides details of the various capital account transactions specified under FEMA and the notifications that regulate them.
National Financial Reporting Authority Rules 2018Raman Khanna
The document summarizes key aspects of the National Financial Reporting Authority (NFRA) in India, including:
1) NFRA was established under the Companies Act 2013 to regulate accounting and auditing standards and investigate misconduct by auditors.
2) Key functions of NFRA include recommending accounting and auditing standards, monitoring compliance, overseeing audit quality, and investigating auditor misconduct.
3) NFRA has powers similar to a civil court and can impose penalties on auditors for misconduct ranging from fines to practice suspensions.
SEBI(LODR)Regulations - Obligations on listing of specified securities - Part IIDVSResearchFoundatio
Key Takeaways:
Related party transactions
Obligations of directors including independent directors, employees including KMPs
Corporate Governance requirements
SEBI(LODR)Regulations - Obligations on listing of specified securities - Part IIDVSResearchFoundatio
Key Takeaways:
Related party transactions
Obligations of directors including independent directors, employees including KMPs
Corporate Governance requirements
Hitesh D. Gajaria explains Black Money Tax Law - Aug 2015Hitesh Gajaria
India enacted the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 w.e.f 1 July, 2015
Stringent Tax and Penalty aggregating 120% of the Undisclosed Foreign Assets and Income Plus Prosecution with Rigorous Imprisonment 3 months to 7 years Plus Fine
Limited One Time Compliance Window to come Clean with Tax 30% and Penalty 30% available until 30th September 2015 - payment by 31st December 2015
This Presentation gives an Overview of the Act and Rules and is meant to share knowledge and is Not a Substitute for appropriate Professional Advice
Why to determine Residential Status?
Categorization of Residential Status.
Rules for determining the Residential Status :
Section 6(1) - Rule for determining the Residential Status of an Individual
Section 6(2) - Rule for determining the Residential Status of an HUF, Firm, AOP, BOI
Section 6(3) - Rule for determining the Residential Status of Company
Section 6(4) - Rule for determining the Residential Status of any other person
Glance on Incidence of Tax
In general, Export trade is regulated by the Directorate General of Foreign Trade (DGFT) functioning under the Ministry of Commerce and Industry (MCI) and the exporters are required to follow the policies and procedures announced by the DGFT, from time to time.
Though DGFT is the regulator for Foreign trade in India, RBI being the financial market regulator is responsible for management of foreign exchange, regulator for payment & settlement systems while continuously working towards the development of Indian financial markets.
RBI regulates the foreign exchange markets through Foreign Exchange Management Act, 1999 (herein after referred as FEMA Act)
In exercise of powers conferred by section 7(1)(a), 7(3) & 47(2) of FEMA Act, 1999, RBI has notified Foreign Exchange Management (Export of Goods and Services) Regulations, 2000 (also known as “Export Regulations, 2000”) by notification number 23/2000-RB dated 3rd May 2000 which came into force from 1st June, 2000.
Sa260 communication-with-those-charged-with-governanceAdmin SBS
Meaning
Scope of SA
Role of communication between TCWG and Auditor
Applicability
Auditor’s responsibilities
Matters to be communicated to TCWG
Objectives
Factors affecting forms of communication
Documentation
Section 148 of the Income Tax Act allows the tax authorities to issue a notice to assess or reassess income that has escaped assessment for a particular year. If the Assessing Officer has reason to believe that income has escaped assessment, they may assess such income by serving a notice on the assessee within 4-16 years from the end of the relevant assessment year, depending on the amount of income escaped. Upon receiving the notice, the assessee must file a return. If the assessment is completed, the assessee will be liable to pay tax on the escaped income along with interest and potential penalties.
This document discusses audit procedures for trade receivables. It defines trade receivables and explains their importance for business cash flow and credit relationships. It then covers trade receivable management processes, aging reports, internal audit checklists, external confirmation procedures, and audit procedures to ensure completeness, occurrence, existence, classification, and proper presentation and disclosure of trade receivables.
The document outlines the agenda for a two-day training event on financial auditing hosted by Palmetto IT Solutions from March 12-13, 2019. The event will cover various topics through a series of presentations and speakers, including an inaugural speech, sessions on compliance requirements under taxation laws, audit documentation, and soft skills. It will take place at Palmetto IT Solutions' office in Hyderabad, India. The document provides the detailed schedule listing the session topics and speakers for each time slot on both days of the event.
The document discusses various aspects of income taxable under Section 56 of the Income Tax Act 1961 relating to "Income from Other Sources". It summarizes taxation of gifts, winnings, share premium in excess of fair market value, dividends, and other miscellaneous incomes. Specific items discussed include the taxability of gifts based on various limits and exceptions. Winnings from lotteries, races and other games are taxed at a flat 30% rate. Share premium received in excess of a company's fair market value may be taxed. Dividends from foreign companies and domestic companies over Rs. 10 lakhs are included.
This document summarizes key aspects of Section 112A of the Indian Income Tax Act, 1961 related to taxation of long-term capital gains (LTCG) from listed equity shares and units. It defines LTCG and short-term capital gains, and explains that LTCG from listed shares is now taxed at 10% if securities transaction tax is paid. It also discusses the cost of acquisition and exemptions available, including the option to reinvest gains in a residential property.
This document provides an overview of bank guarantees. It defines what a bank guarantee is, noting that it is a written contract issued by a bank on behalf of a customer to take responsibility for payment if the customer does not pay. It discusses the key parties involved, types of bank guarantees, advantages and disadvantages, procedures for applying, and audit and disclosure requirements. The document aims to cover these topics at a high level for providing an overview of bank guarantees.
This document summarizes a presentation on shell companies in India. It begins by outlining reasons why regulators are cracking down on shell companies, such as their use for tax evasion, money laundering, and fraudulent schemes. It then defines shell companies as firms that exist on paper without real business operations or assets. Several methods used by shell companies are described, including creating layers of companies to hide owners and conducting fake transactions. The laws often violated by illegal shell companies in India are also listed. Government task forces have been established to investigate shell companies and several actions have been taken, like striking inactive companies from registration records.
Overview on-procedure-for-setting-up-of-sez-unitAdmin SBS
This document provides an overview of the procedure for setting up a unit in a Special Economic Zone (SEZ) in India. It discusses what an SEZ is, how SEZs evolved in India, the administrative setup for SEZs, defines an SEZ unit, compares SEZs and units, outlines who can set up a unit, and details the 8 step procedure for setting up a unit including application submission, approval process, and post-approval requirements. It also addresses the validity, extension, and cancellation of the Letter of Approval (LOA) granted to SEZ units.
Income tax-return-of-income-and-assessment-proceduresAdmin SBS
- Return of Income must be filed by certain persons and entities like companies, firms, individuals with income above exemption limit, residents with foreign assets/accounts, charitable trusts, political parties, and research/educational institutions.
- There are different ITR forms for individuals, HUFs, companies, and other persons to file ROI depending on income sources.
- The due date for filing ROI varies depending on the type of assessee but is typically July 31 or September 30. Late or belated returns can be filed within 1 year with penalties. Revised returns can also be filed to correct omissions or mistakes.
- The income tax department undertakes assessment in two stages - intimation issued after automated
Icds vi effects of changes in foreign exchange ratesAdmin SBS
Introduction of ICDS
Applicability of ICDS
Scope
Terms covered
Classification of Items
Recognition and Measurement
Initial Recognition
Subsequent Recognition
Exchange Differences
Differences between AS-11 and ICDS – VI
This document provides an overview of IND AS 41 - Agriculture. It discusses the objective, scope, key definitions, recognition, measurement and disclosure requirements of the standard. The standard relates to accounting for agricultural activity, including biological assets and agricultural produce. It requires biological assets and agricultural produce to be measured at fair value less costs to sell, except when fair value cannot be measured reliably. The document provides examples of biological assets and the resulting agricultural produce, and outlines the recognition criteria and disclosures required by the standard.
Income Computation and Disclosure StandardICDS IX – Borrowing CostsAdmin SBS
Introduction and Applicability of ICDS
Scope of ICDS – IX Borrowings Costs
Definitions
Recognition of Borrowing Costs
Eligibility for Capitalization of Borrowing Costs
Commencement of Capitalization of Borrowing Costs
Cessation of Capitalization of Borrowing Costs
Disclosures in Tax Audit Report
Basis of Differences
Conclusion
TAX AUDIT REPORT U/s 44AB of Income Tax Act, 1961Admin SBS
Tax audit is applicable to every person i.e. i.e. individual, HUF, Company, Partnership firm,
AOP/BOI, Local authority, Co-operative society/Trust, AJP based on the below mentioned
OBJECTIVES:
Introduction
Implementation
Requirement to generate an E-Waybill
Persons required to generate E-Way bill
Registration
Generation
Other clarifications
OBJECTIVES:
Definition
Position under Service Tax and VAT
Position under GST
Composite supply
Taxability of Works contract
Provisions relating to Input tax credit
OBJECTIVES:
Definition
Job work Procedure u/s 143 of CGST Act, 2017.
Input tax credit as per Section 16 and 19 of the CGST Act, 2017.
Other clarifications relating to Job work as per Circular No. 38/12/2017 – Central Tax dated 26th of March 2018.
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Calculation of compliance cost: Veterinary and sanitary control of aquatic bi...Alexander Belyaev
Calculation of compliance cost in the fishing industry of Russia after extended SCM model (Veterinary and sanitary control of aquatic biological resources (ABR) - Preparation of documents, passing expertise)
Navigating Your Financial Future: Comprehensive Planning with Mike Baumannmikebaumannfinancial
Learn how financial planner Mike Baumann helps individuals and families articulate their financial aspirations and develop tailored plans. This presentation delves into budgeting, investment strategies, retirement planning, tax optimization, and the importance of ongoing plan adjustments.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
What Lessons Can New Investors Learn from Newman Leech’s Success?Newman Leech
Newman Leech's success in the real estate industry is based on key lessons and principles, offering practical advice for new investors and serving as a blueprint for building a successful career.
3. FEMA Act – Introduction
Rationale behind the Act
Effective date of new Act
Applicability of the Act
Its size and nature
49 Sections
6 Rules
25 Regulations
Other related matters
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4. Key Definitions (1/4)
Authorized Person [2(c)]
Capital Account Transaction [2(e)]
a transaction which alters
the assets or liabilities, including contingent liabilities, outside India of persons resident in
India
or assets or liabilities in India of persons resident outside India,
includes transactions referred to in sub-section (3) of section 6
Currency [2(h)]
includes
all currency notes, postal notes, postal orders, money orders,
cheques, drafts, travellers cheques,
letters of credit, bills of exchange and promissory notes,
credit cards or such other similar instruments, as may be notified by the Reserve Bank
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5. Key Definitions (2/4)
Current Account Transaction [2(j)]
transaction other than a capital account transaction, and includes
payments due in connection with
foreign trade,
other current business,
services, and
short-term banking and credit facilities in the ordinary course of business
payments due as interest on loans and as net income from investments,
remittances for living expenses of parents, spouse and children residing abroad, and
expenses in connection with foreign travel, education and medical care of parents,
spouse and children
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6. Key Definitions (3/4)
Foreign Currency [2(m)]
Foreign Exchange [2(n)]
Means foreign currency and includes
deposits, credits and balances payable in any foreign currency
drafts, travelers cheques, letters of credit or bills of exchange, expressed or drawn in Indian currency
but payable in any foreign currency
drafts, travelers cheques, letters of credit or bills of exchange drawn by banks, institutions or persons
outside India, but payable in Indian currency
Foreign Security [2(o)]
Means any security
in the form of shares, stocks, bonds, debentures or
any other instrument denominated or expressed in foreign currency and
includes securities expressed in foreign currency, but where redemption or any form of return such
as interest or dividends is payable in Indian currency
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7. Key Definitions (4/4)
Person[2(u)] – includes
individual,
HUF,
company,
firm,
AOP or a BOI, whether incorporated or not,
every artificial juridical person, and
any agency, office or branch owned or controlled by such person;
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8. FEMA Trigger Points
Transaction between person resident in India and resident outside India
Transaction by Resident in Forex
Transaction by Non Resident in Rupees
Transaction by Resident outside India
Transaction by Non Resident in India
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9. Rules at glance
Sl.
No.
O R No.
/ R R No.
(if any)
Rule Title Commonly referred as
1. 379/2000 FEM (Encashment of Draft, Cheque, Instrument
and Payment of Interest) Rules, 2000
Encashment Rules
2. 380/2000 FEM (Authentication of Documents) Rules, 2000 Authentication of Documents
Rules
3. 381/ 2000 FEM (Current Account Transactions) Rules, 2000 CAT Rules
4. 382/2000 FEM (Adjudication Proceedings and Appeal)
Rules, 2000
Adjudication and Appeal Rules
5. 383/2000 FEM (Compounding Proceedings) Rules, 2000 Compounding Rules
6. 677/2000 The Appellate Tribunal For Foreign Exchange
(Recruitment, Salary and Allowances and Other
Conditions of Service of Chairperson and
Members) Rules, 2000
ATFE Rules
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10. Regulations at Glance (1/3)
Sl. No. O R No./ R R
No. (if any)
Regulation Title Commonly referred as
1 1/2000 FEM (Permissible Capital Account Transactions) Regulations, 2000 Capital Account Transactions
2 2/2000 FEM (Issue of Security in India by a Branch, Office or Agency of a person
resident outside India) Regulations, 2000
IDR Regulations
3 3/2000
3 (R)-2018 (RB)
FEM (Borrowing or Lending in Foreign Exchange) Regulations, 2000
FEM (Borrowing and Lending) Regulations, 2018 (Revised w.e.f 17-12-2018)
ECB Regulations
4 4/2000 FEM (Borrowing and Lending in Rupees) Regulations, 2000
(Merged with 3/(R) above)
Rupee Borrowing Regulations
5 5/2000/
5 (R) – 2016 (RB)
FEM (Deposit) Regulations, 2016 (Revised wef 01-04-2016) Deposit Regulations
6 6/2000/
6(R) – 2015 (RB)
FEM (Export and Import of Currency) Regulations, 2015 (Revised wef 29-12-
2015)
Currency Regulations
7 7/2000/
7-(R) – 2015 (RB)
FEM (Acuisition and Transfer of Immovable Property Outside India)
Regulations, 2015 (Revised wef 21-01-2016)
Foreign Assets Regulations
8 8/2000 FEM (Guarantees) Regulations, 2000 Guarantee Regulations
9 9/2000/
9 (R) – 2015 (RB)
FEM (Realisation, Repatriation and Surrender of Foreign Exchange)
Regulations, 2015 (revised wef 29-12-2015)
Forex Realization Regulations
10 10/2000/
10 (R) – 2015 (RB)
FEM (Foreign Currency Accounts by a person Resident in India) Regulations,
2015 (Revised wef 21-01-2016)
Foreign Currency accounts
Regulations
11 10A/2014 FEM (Crystallization of Inoperative Foreign Currency Deposits) Regulations,
2014
Foreign Deposits Regulations
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11. Regulations at Glance (2/3)
Sl.
No.
O R No./ R R No.
(if any)
Regulation Title Commonly referred as
12 11/2000/
11(R) – 2015 (RB)
FEM (Possession and Retention of Foreign Currency) Regulations, 2015
(Revised wef 29-12-2015)
Possession of Foreign Currency
Regulations
13 12/2000/
12(R) – 2015 (RB)
FEM (Insurance) Regulations, 2015 (Revised wef 29-12-2015) Foreign Insurance Regulations
14 13/2000/
13(R) – 2016 (RB)
FEM (Remittance of Assets) Regulations, 2016 (Revised wef 01-04-
2016)
Remittance of Assets Regulations
15 14/2000/
14(R) – 2016 (RB)
FEM (Manner of Receipt and Payment) Regulations, 2016 (Revised wef
02-05-2016)
Receipt and payment Regulations
16 20/2000/
20(R) – 2017 (RB)
FEM (Transfer or issue of security by a person resident Outside India)
Regulations, 2017 (Revised wef 07-11-2017)
FDI Regulations
17 21/2000
21(R)-2018 (RB)
FEM (Acquisition and transfer of Immovable Property in India)
Regulations, 2018 (Revised wef 26-03-2018)
Acquisition of Immovable Properties
In india
18 22/2000/
22(R) – 2016 (RB)
FEM (Establishment in India of Branch or Office or other place of
business) Regulations, 2016 (Revised wef 31-03-2016)
Branch Office Regulations
19 23/2000/
23(R) – 2015 (RB)
FEM (Export of Goods and Services) Regulations, 2015 (Revised wef. 12-
01-2016)
Exports Regulations
20 24/2000 FEM (Investment in Firms or Proprietary concern in India) Regulations,
2000
Investments into Firm or Proprietary
concerns
21 25/2000 FEM (Foreign Exchange Derivatives Contracts) Regulations, 2000 Derivatives Regulations
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12. Regulations at Glance (3/3)
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Sl. No. O R No./ R R
No. (if any)
Regulation Title Commonly referred as
21 71/2002 FEM (Off-shore Banking Units) Regulations, 2002 OBU Regulations
22 101/2003 FEM (Withdrawal of General Permission to Overseas Corporate
Bodies) Regulations, 2003
OCB Regulations
23 120/2004 FEM (Transfer or Issue of Any Foreign Security)Regulations, 2004 ODI regulations
24 10A/2014 FEM (Crystallization Of Inoperative Foreign Currency Deposits)
Regulations, 2014
Crystallization regulations
25 339/2015 FEM (International Financial Services Centre) Regulations, 2015 IFSC Regulations
26 348/2015 FEM (Regularization of Assets Held Abroad by a Person Resident in
India) Regulations, 2015
Black Money Regulations
27 389/2018 FEM (Cross Border Merger) Regulations, 2018 Cross Border Regulations
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13. Important Sections (1/2)
Dealing in Foreign Exchange – Section 3
Holding of Foreign Exchange – Section 4
Current Account Transaction – Section 5
Capital Account Transaction – Section 6
Export of Goods and Services – Section 7
Realisation & Repatriation of FE – Section 8
Authorised Person – Section 10
RBI Powers to issue Directions to AP – Section 11
Powers to RBI for inspection of AP – Section 12
Penalties – Section 13
Enforcement of Orders of AA – Section 14
Compounding of Offences – Section 15
Appointment of AA – Section 16
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14. Important Sections (2/2)
Appeal to SD (Appeals) – Section 17
Establishment of AT – Section 18
Appeals and related procedures of AT – Section 19 to 33
Bar of Jurisdiction of Civil Courts – Section 34
Appeal to High Court – Section 35
Directorate of Enforcement – Section 36
Procedure related to ED – Section 37, 37A and 38
Miscellaneous matters – Section 39 to 40
Power of CG to give directions to RBI – Section 41
Contravention by Companies – Section 42
Power of CG to make rules – Section 46
Power of RBI to make Regulations – Section 47
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15. Definition of Resident in India (2 (v)) (1/2)
24/01/19
a person residing in India for more than 182 days
during the course of the preceding financial year
A person who has gone out of India or who stays
outside India, in either case-
(a) for or on taking up employment outside India, or
(b) for carrying on outside India a business or
vocation outside India, or
(c) for any other purpose, in such circumstances as
would indicate his intention to stay outside India for
an uncertain period;
A person who has come to or stays in India, in either
case, otherwise than-
(a) for or on taking up employment in India, or
(b) for carrying on in India a business or vocation in
India, or
(c) for any other purpose, in such circumstances as
would indicate his intention to stay in India for an
uncertain period;
India
But does not
include
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16. Definition of Resident in India (2 (v)) (2/2)
(ii) any person or body corporate registered or incorporated in India,
(iii) an office, branch or agency in India owned or controlled by a person resident outside India,
(iv) an office, branch or agency outside India owned or controlled by a person resident in India.
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17. Definition of Non Resident Indian/ PIO
Non Resident means a person resident outside India who is citizen of India;
Person of Indian Origin (PIO) means a citizen of any country (other than Bangladesh or
Pakistan) who had:
(a) at any time held Indian passport or
(b) he or either of his parents or any of his grandparents was a citizen of India by virtue of the
Constitution of India or the Citizenship Act, 1955 or
(c) the person is a spouse of an Indian citizen or a person referred to in (a) or (b).
Note: Clause (c) above is excluded for the purpose of acquisition of immovable property
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19. What is ECB
External Commercial Borrowings (ECBs) include
bank loans,
trade credit (i.e., suppliers' and buyers' credits) beyond 3 years,
fixed and floating rate bonds / debentures (without convertibility)
Financial Lease
borrowings from private sector windows of multilateral Financial Institutions such as IFC, ADB,
CDC etc..
Plain vanilla rupee denominated bonds issued overseas
Euro-issues include Euro-convertible bonds and GDRs.
Sec.6(3) Of FEMAct,1999 read with Notification No. FEMA 3R/ 2000-RB, viz. Foreign Exchange
Management (Borrowing or Lending) Regulations, 2018, dated December 17, 2018 [superseded
FEM (Borrowing or Lending in Foreign Exchange) Regulations, 2000 and FEM (Borrowing or Lending
in Rupees) Regulations, 2000]
New ECB Framework – Revised Regulations dated 17-12-2018 and AP (DIR Series) Circular No 17,
dated January 16, 2019
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20. Regulator And Importance of ECB
Regulator- CG with the support of RBI
Importance
The ECB policy focuses on three aspects:
Eligibility criteria for accessing external markets.
The total volume of borrowings to be raised, their cost and maturity structure.
End use of the funds raised.
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21. External Commercial Borrowings
Indian companies are allowed to access funds from abroad in the following methods:
ECB FCCBs PREF.SHARES/ FCEB RDBO
Debentures
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22. ECB – New regime
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ECBs are classified as “Foreign Currency Denominated ECB” and “Indian Rupee Denominated
ECB.
Currency of borrowing: Any freely convertible foreign currency or Indian Rupees
Earlier classification as Tracks I, II and III is removed
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23. Eligible Borrowers
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All entities eligible to receive FDI
Port Trusts
Units in SEZ
SIDBI
EXIM Banks
Oil Marketing Companies
Registered entities engaged in micro-finance activities (viz registered Not For Profit
companies, registered societies / trusts / cooperatives and non-government organisations
(permitted only to raise INR ECB)
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24. Recognized Lenders
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Lender should be resident of Financial Action Task Force (FAFT) or International organisation
for Securities Commissions (IOSCO) compliant country
Multilateral and Regional Financial Institutions where India is a member country
Individual lenders only if they are
Foreign Equity holders
For subscription to bonds/debentures listed abroad
Foreign Branches /Subsidiaries of Indian Banks (Only for Foreign ECB except FCCBs and FCEBs).
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25. Amount and Maturity Under Automatic Route
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Minimum Average Maturity Period
Amount
Up to USD 750 Mn or equivalent per financial year for all eligible borrowers
In case FCY denominated ECB from direct foreign equity holder, ECB liability-equity ratio
cannot exceed 7:1 under automatic route if overall o/s ECB is more than USD 5 Mn
Up to USD 10 Bn or equivalent per financial year in case of Public Sector Oil Marketing
Companies (PS-OMC) for ECB towards working capital purposes with minimum maturity
period of 3 years
Category Period
General 3 Years
Manufacturing Companies with ECB up to USD 50 Mn per
financial year
1 Year
ECB from foreign equity holder utilized for working capital and
general corporate purposes, and repayment of rupee loans
5 Years
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26. All in cost ceiling
FCY Denominated ECB INR Denominated ECB
6 Months LIBOR / Benchmark Rate
+ 450 Basis Points
450 basis points over the
prevailing yield of the GOI
securities of corresponding
maturity
Penal Interest - <= 2% (outside all-in-cost ceiling)
All in cost includes:
• Rate of Interest
• other fees and expenses in foreign currency
• except commitment fees
• Prepayment fees
• Fees payable in Indian Rupees
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27. Parking of ECB Proceeds
ECB raised abroad meant for Rupee expenditure in India, should be brought immediately for
credit to their Rupee accounts with AD Category I banks in India.
ECB proceeds meant only for foreign currency expenditure can be retained abroad pending
utilization.
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28. End Use of Proceeds – Not Permitted
The negative list, for which the ECB proceeds cannot be utilised, would include the following:
a) Real estate activities.
b) Investment in capital market.
c) Equity investment.
d) Working capital purposes except from foreign equity holder and by PS-OMCs
e) General corporate purposes except from foreign equity holder.
f) Repayment of Rupee loans except from foreign equity holder.
g) On-lending to entities for the above activities.
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29. Security
The choice of security to be provided to the lender/supplier is left to the borrower.
However, creation of charge over immovable assets and financial securities in favour of the
overseas lender is subject to compliance of specified regulations.
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30. Granting of NOC by AD (1/2)
‘No objection’ for Creation of charge on Immovable assets shall be granted only to a resident ECB
borrower.
The period of such charge on immovable assets has to be co-terminus with the maturity of the
underlying ECB.
Such ‘no objection’ should not be construed as a permission to acquire immovable asset
(property) in India, by the overseas lender/ security trustee.
In the event of enforcement / invocation of the charge, the immovable asset (property) will have
to be sold only to a person resident in India and the sale proceeds shall be repatriated to
liquidate the outstanding ECB.
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31. Granting of NOC by AD (2/2)
No objection’ for pledge of shares shall be granted only to a resident ECB borrower.
The pledge of shares of the borrowing company as well as domestic associate companies held
by promoters of the borrowing company to secure the ECB subject to the following conditions:
(i) The period of such pledge shall be co-terminus with the maturity of the underlying ECB.
(ii) In case of invocation of pledge, transfer shall be in accordance with the extant FDI policy.
(iii) A certificate from the Statutory Auditor of the company that the ECB proceeds have been /
will be utilized for the permitted end-use/s.
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32. Other Points
Prepayment of ECB up to USD 500 million may be allowed by AD banks without prior approval
of Reserve Bank subject to compliance with the stipulated minimum average maturity period as
applicable to the loan.
The existing ECB may be refinanced by raising a fresh ECB subject to the condition that the fresh
ECB is raised at a lower all-in-cost and the outstanding maturity of the original ECB is
maintained.
Indian banks are permitted to participate in refinancing of existing ECBs, only of highly rated
corporates (AAA) and for Maharatna / Navratna PSUs.
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33. Application for Prior Approval
Applicants are required to submit an application in Form ECB through designated AD bank along
with necessary documents to:
The Chief General Manager-in-Charge,
Foreign Exchange Department,
Central Office,
ECB Division,
Reserve Bank of India,
Mumbai – 400 001.
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34. Draw Down/LRN
For allotment of Loan Registration Number (LRN), borrowers are required to submit Form ECB
(previously Form 83), in duplicate, certified by a CS or CA to the designated AD bank.
The borrower can draw-down the loan only after obtaining the LRN from DSIM, Reserve Bank.
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35. Recurring Compliances
Borrowers are required to submit ECB-2 Return certified by the designated AD bank on monthly
basis so as to reach DSIM, Reserve Bank within seven working days from the close of month to
which it relates.
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36. Change of Terms and Other Conditions
Earlier for cancellation of LRN and change in the end use of ECB Proceeds- approval of DSIM
is required
It has been simplified by delegating power to AD Category-I banks for
1. Cancellation of LRN (Automatic & Approval Route)
2. Change in the end use of ECB proceeds(Automatic route) Subject to certain conditions.
However, change in the end-use of ECBs availed under the approval route will continue to be
referred to the Foreign Exchange Department, Central Office, Reserve Bank of India
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37. Conversion of ECB Into Equity- Conditions
The activity of the company- Automatic Route for FDI
OR
Government approval for foreign equity participation has been obtained by the company, wherever
applicable.
The foreign equity holding after such conversion of debt into equity is within the sectoral cap, if
any,
Pricing of shares is as per the pricing guidelines issued under FEMA, 1999 in the case of listed/
unlisted companies.
Consent or at least information regarding conversion to other lenders to the said borrower
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38. Conversion of ECB Into Equity- Reporting
Full Conversion Partial Conversion
• File Form FC-GPR
• Form ECB-2 with in 7 working days
• "ECB wholly converted to equity" -on top of
the ECB-2
• Subsequent months filing is not necessary
• File Form FC-GPR
• Form ECB-2 with in 7 working days
• "ECB Partially converted to equity" -on top of
the ECB-2
• Subsequent months Filing is necessary for
remaining portion of o/s ECB
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39. Trade Credits
Suppliers Credit – Where the overseas supplier give credit for certain period
Buyer’s Credit – Where the overseas supplier facilitates the credit from a foreign bank / financial
institution
Maturity period
- Capital Goods - > 1 year and < 3 years from the date of shipment
- Others - < 1 year linked with operating cycle
Amount – USD 50 Million per shipment (previously USD 20 Mn)
No roll over or extension is permitted
All in cost ceiling
Type Ceiling
FCY Denominated Trade Credit 6 months LIBOR* + 250 basis points per annum
Rupee Denominated Trade Credit Commensurate with prevailing market conditions
* for the respective currency of credit or applicable benchmark
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39
40. ECB Facility for Start-Ups
Eligibility: An entity recognised as a Start-up by the Central Government as on date of raising
ECB.
Maturity: Minimum average maturity period will be 3 years.
Recognised lender: Lender / investor shall be a resident of a FATF compliant country. Foreign
branches/subsidiaries of Indian banks and overseas entity in which Indian entity has made ODI
will not be considered as recognized lenders
Forms: ECB can be in form of loans or non-convertible, optionally convertible or partially
convertible preference shares.
Amount: The borrowing per Start Up will be limited to USD 3 million or equivalent per financial
year either in INR or any convertible foreign currency or a combination of both.
All-in-cost: Shall be mutually agreed between the borrower and the lender.
End uses: For any expenditure in connection with the business of the borrower.
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40
41. www.sbsandco.com41
Applicable only for delays in reporting of Form ECB and Form ECB 2
Borrower should be compliant of all other ECB guidelines
LSF Matrix:
Late Submission Fee (LSF)
Type of Return Period of Delay Applicable LSF
Form ECB 2 Up to 30 days from due date INR 5000
Form ECB 2 / Form ECB Up to 3 years from due date / date of
drawdown
INR 50,000 per year
Form ECB 2 / Form ECB
Up to 3 years from due date / date of
drawdown
INR 100,000 per year
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43. Loans from NRI / PIO (1/3)
Borrowing in FC by Individual resident Indian in India
The lender is a close relative (ref Sec 2(77) of Companies Act, 2013)
The maximum loan amount is USD 250,000 or its equivalent INR
The loan amount shall be received by CFE/NRE/FCNR funds
Minimum maturity period of the loan is 1 year
The loan is free of Interest
Restriction on end use of Funds
The borrower shall not engage in Agricultural/ Plantation/ real estate business/ trading in
TDR/ does not act as Nidhi or Chit Fund company;
Also the funds shall not be used for investment in capital or otherwise, in any company or
partnership firm or proprietorship concern or any entity, whether incorporated or not or for
re-lending
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44. Loans from NRI / PIO (2/3)
Borrowing in INR by persons other than Companies in India
The loan amount shall be received by CFE/NRE/NRO/FCNR funds
The loan period shall not exceed 3 years
The Rate of Interest shall not exceed 2% over prevailing bank rate
The loan amount is not eligible for repatriation (but eligible under USD 1 Million)
• Restriction on end use of Funds
Same as in previous slide
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45. Loans from NRI / PIO (3/3)
Borrowing in INR by Companies in India
The amount shall be received by way issue of NCDs
The issue of NCDs is made by public offer
The loan period shall not be less than 3 years
The Rate of Interest shall not exceed 3% over prevailing bank rate
The company shall file report to RBI within 30 days of receipt
Additional conditions for repatriation
The % of investment by NRI shall be within the limits specified under FDI
The amount has to come by CFE/NRE/FCNR account
Restriction on end use of Funds
The borrower shall not engage in Agricultural/ Plantation/ real estate business/ trading in
TDR/ does not act as Nidhi or Chit Fund company;
also the funds shall not be used for investment in capital or otherwise, in any company or
partnership firm or proprietorship concern or any entity, whether incorporated or not or for
re-lending
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46. www.sbsandco.com46
Discontinuance of issuance of LoUs/ LoCs for Trade Credits for imports into India by AD Category
–I banks with effect from 13th March, 2018.
LoCs and BGs for Trade Credits for imports into India may continue to be issued, subject to
compliance with the provisions of “Guarantees and Co-acceptances” Master Circular given by
the Department of Banking Regulation.
Discontinuance of LoUs and LoCs for Trade Credits
24/01/19
47. www.sbsandco.com/wiki
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CA Murali Krishna
M.Com,F.C.A.,F.C.S.
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