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Contribution can be made in an LLP either by way of Capital or by way of acquisition / transfer of profit shares by a Person or an Entity (Other than a Citizen or a Registered entity of/in Pakistan and Bangladesh and not being a Foreign Portfolio Investor or Foreign Institutional Investor or Foreign Venture Capital Investor as per SEBI guidelines). In terms of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2017, the contribution will be subject to the terms and conditions as specified in Schedule 9 i.e. FDI-LLP. |
FDI is permitted under automatic route in LLPs operating in sectors / activities where 100% FDI is allowed through automatic route. The said Schedule covers the eligibility of the investors, eligible investment, eligibility of an LLP, pricing mechanism, mode of payment and reporting of foreign investment in such LLPs. |
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Vide Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2017, effective from 9th March, 2017, RBI has defined E-Commerce and models of E-Commerce. 100% FDI under Automatic Route is permitted in B2B E-Commerce and Market place model of E-Commerce. FDI is not permitted in inventory based model of E-Commerce. |
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The Trade Mark Rules 2017 have been notified and have come into effect from 6th March, 2017 with several changes to the existing trademark practice. These Rules, which replace the erstwhile Trade Mark Rules 2002, will streamline and simplify the processing of Trade Mark applications and have brought about significant amendments to the rules and procedure governing trademark prosecutions in India. |
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W.e.f. 28th February, 2017, the above Rules have been notified. The said Rules lay down the manner of transfer of shares to the fund and also for refunding to the claimants from the Fund. |
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In the case of Transfer of pending proceedings of winding up on the ground of inability to pay debts, the petitioner shall submit all additional information, required for admission of the petition under the Insolvency Code, including details of the proposed insolvency professional to the NCLT. The time available for such submission has been extended from 60 days to 6 months. |
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The Hon’ble NCLT has authorised the Benches of New Delhi, Ahmedabad, Allahabad, Guwahati, Chandigarh, Kolkata, Mumbai, Hyderabad, Bengaluru and Chennai to exercise functions of the Tribunal to dispose of the matters received under Insolvency and Bankruptcy Code, 2016 and under Compromises, Arrangements and Amalgamations of Companies Act, 2013. |
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W.e.f. 1st April, 2017 Companies (Indian Accounting Standards) (Amendment) Rules, 2017 will come into effect relating to share-based payment transactions (Ind AS 102) & Cash Flow Statements – changes in liabilities arising from financing activities (Ind AS 7). |
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Clarifications on Income Computation and Disclosure Standards (ICDS) have been issued as FAQ’s by Central Board of Direct Taxes (CBDT). |
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Guidelines for waiver of interest charged U/s 201(1A)(i) of the Income Tax Act have been issued. For more details, please click on circular. |
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Services provided to an educational institution such as transport, catering, house keeping, security, cleaning and conduct of examinations are exempt from service tax. The list of educational institutions eligible for such exemption has been curtailed to the following 2 types only: |
- Institution providing services by way of pre-school education
- Institutions providing education up to higher secondary school or equivalent.
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Institutions offering vocational courses, undergrad courses and above are out of the above exemption list. |
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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. |
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