lexspeak
Hi Folks
Highlight of this 6th anniversary issue of Lexspeak is no doubt news about the FDI reforms announced by the Government of India last week. Detailed Press Note is enclosed which gives sector-wise relaxation and changes that is bound to unshackle the economy and also bring in many new players in various sectors. Government of Karnataka has announced a Start-up Policy for 5 years upto 2020 and is the first State in the country to do so. I wish I could lay my hands on the text of the full Policy which claims to foster the start-up environment

beyond namma Bengalooru ! I also wish the Government does something about the ‘back-breaking’ (true thanks to the pot-holed roads) physical infrastructure to match the ‘path-breaking’ IT infrastructure !! It is no solace that our neighbouring flooded city, Chennai has ‘craterred roads’ !!! Daily commute, nay nightmare, is a reality. Daily breathing is a reality. Daily water consumption is a reality. These basic necessities of life cannot be fulfilled in the virtual world by apps……Talking of announcements – we have vision statements for 20-30 years, we have a 10 year plan, we have 5 year strategy, we look at 50 years from now, we plan for our retirement, we plan for simple events, why we even plan in advance about what theme and picture to carry for our Lexspeak banner. When this is the case, why can’t the MCA plan and announce filing time extension in advance ? Case on hand is the extension given on 30th November for annual ROC filing upto December without additional fee. What pleasure does it derive by keeping all professionals on tenterhooks checking ‘will they-won’t they’ ? It is not a case of a boy proposing to a girl – ‘will she, won’t she’ ! It impacts lakhs of professionals throughout the country. Well, let me give it to them. Unlike the Government of Karnataka which announced that VAT would replace the existing Sales Tax system way back in 2003 at the end of the day on 31st March, MCA was gracious enough to announce it in the morning. Anxious moments turned into moments of relief. Don’t ask me why people have to wait until the last day to file ? I have explained enough why e-filing has had hiccups this season.

By the way, 26th November, 2015 was observed as the First Constitution Day. If I remember right it was on the same day that the 1st issue of Lexspeak was published in 2009. Really hoping it will stand the test of time and relevance for years to come. I have enjoyed writing on different topics each time over the last 6 years. Hope you have enjoyed reading and reflecting. Should you wish to refer to any of our older issues of Lexspeak, do visit our Resource Centre at sharadasc.com
.

Warm regards

MCA has extended the due date of filing of Forms AOC-4, AOC (CFS), AOC-4 XBRL and MGT-7 till 30th December, 2015 without any additional fees.

Infrastructure Debt Fund Non-Banking financial Companies and Companies permitted by a Ministry or Department of the Central Government or by RBI or by the National Housing Bank or by any other statutory authority can now issue debentures for a period exceeding 10 years.

‘Swachh Bharat Cess’ @ 0.5% has been levied on value of all taxable services i.e. the effective rate of Service tax including Swachh Bharat Cess is 14.5% from November 15, 2015. The additional Cess would be over and above the 14% service tax rate. This Cess adds to the cost of services since it is not available as input tax credit so far.

Click on the notification 21, 22, 23, 24 & 25. For more details, FAQ on Swachh Bharat Cess is attached herewith.








CBEC has come up with a scheme for speedy disbursal of pending refund claims to service exporters who have registered the claim on or before 31st March, 2015 and are still pending. They will get 80% of the refund claim as provisional amount based on an undertaking from the exporter and a certificate from the statutory auditor / Chartered Accountant. This is in addition to the usual documents to be submitted along with the refund claim.

The government has reviewed the Foreign Direct Investment (FDI) policy in various sectors to bring more activities under automatic route and ease of conditionalilities for foreign investment. In order to make ‘ease of doing business’ a reality and translate PM Narendra Modi’s assurances to NRIs during his several visits abroad, several corrections have been made in the FDI policy. New sectors have also been opened to foreign investments and defined the term ‘manufacturing’ with a view to attract more overseas investment, incomes and employment into the country.

Highlights:

  • 100% FDI allowed under plantation activities i.e. plantations of tea, coffee, rubber, cardamom, palm under automatic route.
  • Radical changes in FDI regime in construction development sector.
  • Foreign investment in defence sector up to 49% under automatic route, earlier it was restricted to 24%.
  • New sectoral caps & entry routes in broadcasting sector.
  • Full fungibility of foreign investment permitted in banking- private sector.
  • Investment by Companies/Trusts/Partnerships owned & controlled by NRIs on non-repatriation basis to be treated as domestic investment.
  • Permitting manufacturers to undertake wholesale and/or retail, including through E Commerce without Government approval.
  • Review of FDI policy conditionalities for single brand retail trading and permitting 100% FDI in duty free shops.
  • Companies without operations not to require Government approval for FDI for undertaking automatic route sector activities.
  • Simplification of conditionalities.
  • Opening of duty free shops for 100% FDI under automatic route.
  • Permitting same entity to carry out both wholesale and single brand retail trading.
  • 100% FDI in LLPs permitted under automatic route.
  • Opening up of FDI in regional air transport service.
  • Raising the threshold limit for approval by foreign investment promotion board.

Changes are far reaching and hopefully the impact will be too !!


An importer in India has to submit one of the following records as proof of physical import of goods:

  • Exchange control copy of the Bill of Entry for home consumption.
  • Exchange control copy of the Bill of Entry for warehousing, in the case of 100% Export Oriented Units (EOUs).
  • Customs Assessment Certificate or Postal Appraisal Form as declared by the importer to the Customs Authorities.
  • Courier Bill of Entry, as declared by the courier companies to the Customs Authorities.
  • Ex-Bond Bill of Entry in case imported goods are stored in Free Trade Warehousing Zones / SEZ Unit warehouses.

Non-resident investment is prohibited in real estate business. Exception is development of townships, construction of residential/commercial premises, roads or bridges. This is now extended to SEBI regulated Real Estate Investment Trusts (REITs) which means non-resident investment through REITs is permitted.


Note: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. Lex Valorem disclaims all liability on action taken without professional advice.

Lex Valorem India Pvt. Ltd. #405, 7th Cross, IV Block, Koramangala, Bangalore – 560 034
sharadasc.com Phone : +91 80 25534374 , +91 80 25536618 Email : [email protected]
Privacy Policy | Disclaimer