Monday, March 11, 2019

RBI imposes restrictions on capital transactions with North Korea



RBI amends FEMA (Permissible Capital Account Transactions) Regulations, 2000
The Reserve Bank of India has notified the FEMA (Permissible Capital Account Transactions) (First Amendment) Regulations, 2019 wherein norms related to prohibition of capital account transaction have been amended. In regulation 4, new clauses (c) and (d) have been added providing that no person resident in India shall undertake any capital account transaction which is not permissible in terms of Order S.O. 1549(E) dated April 21, 2017, of the Government of India, with any person who is a citizen of or a resident of the Democratic People’s Republic of Korea, or an entity incorporated or otherwise, in the Democratic People’s Republic of Korea, until further orders.
The amendment also prescribes that the existing investment transactions, with any citizen of or resident of the Democratic People’s Republic of Korea, or an entity incorporated or otherwise in Democratic People’s Republic of Korea, or any existing representative office or other assets possessed in Democratic People’s Republic of Korea, by a person resident in India, which is not permissible in terms of Order S.O. 1549(E) dated April 21, 2017, shall be closed/liquidated/disposed of/settled within a period of 180 days from the date of issue of this Notification, unless there is specific approval from the Central Government to continue beyond that period

Sunday, January 14, 2018

Government releases updated presentation on Goods and Service Tax (GST).


Government releases updated presentation on Goods and Service Tax (GST). Figures given at the end are very interesting.

This is the link

https://drive.google.com/file/d/1hfIO_ooquYwjHVaXs-8neQJeEWYX4HPl/view?usp=sharing


CA. Bhavesh Savla

www.cabks.in

Monday, May 9, 2016

LIAISON OFFICE SET UP


BHAVESH K. SAVLA, chartered accountants bag two more contracts for setting up liaison office in India, for UK Multi national and Russian Multi national.

Sunday, December 15, 2013

Now Residents of Macau and Hong Kong not permitted to open Branch Offices in India

Along with the earlier restriction for opening of branch offices for residents of China and Iran, RBI has also now disallowed residents of Hongkong and Macau from opening branch offices in India.

NOTIFICATION [NO. FEMA. 293/2013-RB]/GSR 767(E)DATED 12-11-2013

In exercise of the powers conferred by sub-section (6) of section 6 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank makes the following amendments to the Foreign Exchange Management (Establishment in India of Branch or Office or Other Place of Business) Regulations 2000, Notification No. FEMA 22/2000-RB dated 3rd May, 2000, namely:—
1. Short Title and Commencement:—
(i) These Regulations may be called the Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) (Amendment) Regulations, 2013.
(ii) They shall be deemed to have come into force from the date of their publication in the Official Gazette.
Amendment to the Regulations:—

2. In the Foreign Exchange Management (Establishment in India of Branch or Office or Other Place of Business) Regulations, 2000 (Notification No.FEMA 22/2000-RB dated May 3, 2000), hereinafter referred to as the 'Principal Regulations', in Regulation 4, for the words, "Iran or China", the words "Iran, China, Hong Kong or Macau" shall be substituted.

Saturday, December 15, 2012

How to set up a tax friendly Liaison Office or Representative Office in Inida

How to set up a tax friendly liaison office or representative office in India.

Read my entire article on the following link:

http://trak.in/tags/business/2012/12/10/setting-up-liaison-office-india/

Saturday, December 1, 2012

FAQS posted by income Tax department for E filing of income tax returns for Companies having only Foreign Directors


Registration - FAQ
Company/Firm

Q: The Principal Contact is a Foreigner/Non-resident and does not have a PAN and hence, not able to register in the new e-Filing Application. What should be done?

A: As per CBDT guidelines, Foreigners without PAN is allowed to be an authorized signatory and can file on behalf of the Company/Firm without a PAN encrypted DSC. The assessee Company is required to send an email to  efilinghelpdesk@incometaxindia.gov.in mentioning  details  such  as  Name  of  the  Company,  PAN  of  the Company, Date of Incorporation, Name of the Principal Contact and DOB of the Principal Contact.

Q: While updating the Principal Contact details in the Profile, PAN field is not available. What to do?

A: The possible reason can be that the previous Principal Contact was a Foreigner without a PAN and might
have been added as an exception case in the e-Filing application. To remove this exception, send  an email to efilinghelpdesk@incometaxindia.gov.in mentioning details such as Name of the Company, PAN of the Company, Date of Incorporation, Name of the Principal Contact, PAN of the Principal Contact and DOB of the Principal Contact. The exempted details in the e-Filing application will be deleted and the Principal Contact will be able to register the PAN of the new Principal Contact.

Q:The Principal Contact of my Company/Firm is a foreigner and does not have a PAN. The Principal Contact has been updated without PAN in the Company/Firm profile of the e-Filing portal. The Digital Signature Certificate (DSC) of the Principal Contact is with a dummy PAN. When I try to upload/register the DSC, PAN mismatch error comes up. What to do?

A: Digital Signature Certificate with dummy PAN will not be accepted by the e-Filing application. In case the
Principal Contact has been updated without PAN, Digital Signature Certificate without PAN encryption should be used. In case the Principal Contact is updated in the profile with a PAN, Digital Signature Certificate with the same PAN should be used.

Q: In case of our Company/Firm, the Principal Contact is a foreigner/non-resident without a PAN, how should the XML of the ITR be generated, because of verification in the return requires for a PAN field to be filled up?
A: For filling up the verification field, you may use dummy PAN (FFFPF9999F). It is again clarified, that the
dummy PAN can be used only for the verification field and DSC with dummy PAN will not be accepted.