Entries Tagged 'Investment in India' ↓

The Present Circle Rates of the Residential Properties in Eight Categories of Colonies in Delhi

The Government of Delhi has introduced the new circle rates in eight categories of colonies in Delhi with effect from December 05, 2012.

The Delhi government had first introduced the circle rates for the real estate properties in Delhi in July 2007. These rates were notified under the provisions of Delhi Stamp (Prevention of Undervaluation of Instruments) Rules, 2007 on July 18, 2007.

At present, there are eight categories of colonies in the Delhi — A, B, C, D, E, F, G, and H based on the Municipal Corporation of Delhi (MCD) categorization. The circle rates vary depending on the category of a colony or residential area in Delhi.

As notified by the Government of Delhi, with effect from December 05, 2012 the new circle rates of real estate properties in Delhi based on the colonies categorization are:

Category A Colonies – Rs. 645,000 Per Square Meter
Category B Colonies – Rs. 204,600 Per Square Meter
Category C Colonies – Rs. 131,040 Per Square Meter
Category D Colonies – Rs. 106,384 Per Square Meter
Category E Colonies – Rs. 58,316 Per Square Meter
Category F Colonies – Rs. 47,141 Per Square Meter
Category G Colonies – Rs. 37,820 Per Square Meter
Category H Colonies – Rs. 19,361 Per Square Meter

From November 16, 2011 to December 04, 2012, the circle rates of real estate properties in Delhi were:

Category A Colonies – Rs. 215,000 Per Square Meter
Category B Colonies – Rs. 136,400 Per Square Meter
Category C Colonies – Rs. 109,200 Per Square Meter
Category D Colonies – Rs. 87,200 Per Square Meter
Category E Colonies – Rs. 47,840 Per Square Meter
Category F Colonies – Rs. 38,640 Per Square Meter
Category G Colonies – Rs. 31510 Per Square Meter
Category H Colonies – Rs. 15,870 Per Square Meter

From February 08, 2011 to November 15, 2011, the circle rates of real estate properties in Delhi were:

Category A Colonies – Rs. 86,000 Per Square Meter
Category B Colonies – Rs. 68,200 Per Square Meter
Category C Colonies – Rs. 54,600 Per Square Meter
Category D Colonies – Rs. 43,600 Per Square Meter
Category E Colonies – Rs. 36,800 Per Square Meter
Category F Colonies – Rs. 32,200 Per Square Meter
Category G Colonies – Rs. 27,400 Per Square Meter
Category H Colonies – Rs. 13,800 Per Square Meter

From July 18, 2007 to February 07, 2011, the circle rates of real estate properties in Delhi were:

Category A Colonies – Rs. 43000 Per Square Meter
Category B Colonies – Rs. 34100 Per Square Meter
Category C Colonies – Rs. 27,300 Per Square Meter
Category D Colonies – Rs. 21,800 Per Square Meter
Category E Colonies – Rs. 18,400 Per Square Meter
Category F Colonies – Rs. 16,100 Per Square Meter
Category G Colonies – Rs. 13,700 Per Square Meter
Category H Colonies – Rs. 6900 Per Square Meter

RBI/2012-13/311
A.P. (DIR Series) Circular No. 55

November 26, 2012

To

All Authorised Dealers Category – I Banks

Madam / Sir,

Liaison Office (LO) / Branch Office (BO) in India by Foreign Entities – Reporting to Income Tax Authorities.

1. Attention of Authorised Dealer Category – I banks is invited to A.P. (DIR Series) Circular No. 24 dated 30.12.2009 in terms of which LOs/BOs are required to furnish copy of the Annual Activity Certificate (AAC) to Director General of Income Tax (International Taxation), Drum Shaped Building, I.P. Estate, New Delhi 110002.
2. It is clarified that copies of the AACs submitted to the DGIT (International Taxation) should be accompanied by audited financial statements including receipt and payment account.
3. Further, at the time of renewal of permission of LOs by AD banks, they may note to endorse a copy of each such renewal to the office of the DGIT (international Taxation).
4. AD Category – I banks may bring the contents of this circular to the notice of their constituents/customers concerned and ensure compliance.
5. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(Rudra  Narayan Kar)
Chief General Manager

Employees’ Provident Funds (Fourth Amendment) Scheme, 2012
MINISTRY OF LABOUR AND EMPLOYMENT
NOTIFICATION

New Delhi, the 5th October, 2012

*G.S.R. 744(E).- In exercise of the powers conferred by section 5, read with sub-section (1) of section 7 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme further to amend the Employees’ Provident Funds Scheme, 1952, namely:-

1. (1) This Scheme may be called the Employees’ Provident Funds (Fourth Amendment) Scheme, 2012.

(2) It shall come into force on the date of its publication in the Official Gazette.

2. In the Employees’ Provident Funds Scheme, 1952 (hereinafter referred to as the principal Scheme), under paragraph 83 relating to special provisions in respect of International Workers.-

(a) in paragraph 69 of the principal Scheme, as modified by para 6 of aforesaid paragraph 83, for sub-paragraph (4), the following sub-paragraph shall be substituted, namely:-

“(4) In respect of a member covered under social security agreement entered into between Government of India and any other country, on ceasing to be an employee in an establishment covered under the Act.”;

(b) in paragraph 72 of the principal Scheme, as modified by para 7 of aforesaid paragraph 83, for sub-paragraph (2), the following sub-paragraph shall be substituted, namely:-

“(2) The due amount in respect of the member shall be payable in the payees bank account directly or through the employer”.

[F.No.S-35025/09/2011-SS-II]
RAVI MATHUR, Addl. Secy.

Foot Note: The Employees’ Provident Funds Scheme, 1952 was published in the Gazette of India, Part-II, Section 3, Sub-section (i), vide number S.R.O. 1509, dated the 2nd September, 1952 and lastly amended vide number G.S.R.382(E), dated the 24th May, 2012.

RBI/2011-12/536
A. P. (DIR Series) Circular No.117

May 07, 2012

To
All Authorised Dealer banks and Authorised banks
Madam/Sir,

Transfer of Funds from Non-Resident Ordinary (NRO) account to Non-
Resident External (NRE) Account

The Committee to Review the Facilities for Individuals Under FEMA, 1999 (Chairperson : Smt. K.J.Udeshi) has recommended that the NRIs/PIOs may be permitted, subject to payment of applicable taxes, to transfer repatriable funds from their NRO account within the overall ceiling of US $ 1 million per financial year, for credit to their NRE account in India. At present transfer of funds from NRO to NRE account is not permissible.

2. On a review, it has been decided that henceforth NRI as defined in Foreign Exchange Management (Deposit) Regulations, 2000 contained in Notification No. FEMA.5/2000-RB dated 3rd May 2000, as amended from time to time, shall be eligible to transfer funds from NRO account to NRE account within the overall ceiling of USD one million per financial year subject to payment of tax, as applicable (i.e. as applicable if funds were remitted abroad). Such credit of funds to NRE account shall be treated as eligible credit in terms of paragraph 3(j) of Schedule-1 of Notification No. FEMA.5/2000-RB dated 3rd May 2000.

3. All Authorised Dealer banks and Authorised banks may bring the contents of this circular to the notice of their constituents and customers concerned.

4. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

Yours faithfully,

(Rudra Narayan Kar)
Chief General Manager

RBI/2011-12/506 DBOD. AML.BC. No 93 /14.01.001/2011-12                    April 17, 2012

The Chairmen / Chief Executive Officers

All Scheduled Commercial Banks (excluding RRBs)/

All India Financial institutions/ Local Area Banks

Dear Sir,

Know your Customer (KYC) Guidelines – Accounts of Proprietary Concerns

1. Please refer to our circulars DBOD. AML BC. No. 80/14.01.001/2009-10 dated March 26, 2010 and DBOD. AML.BC. No. 38 /14.01.001/2010 -11 dated August 31, 2010regarding customer identification procedure for opening accounts of proprietary concerns.

2. On a review, it has been decided to include the following documents in the indicative list of required documents for opening accounts of proprietary concern:

i) The complete Income Tax return (not just the acknowledgement) in the name of the sole proprietor where the firm’s income is reflected, duly authenticated/ acknowledged by the Income Tax Authorities.

ii) Utility bills such as electricity, water, and landline telephone bills in the name of the proprietary concern.

Yours faithfully,

(Sudha Damodar)

Chief General Manager

Tax Rates Remain Unchanged

• The corporate tax rates remain unchanged at 40% for a foreign company.
• The surcharge applicable on companies with total income exceeding INR 10 million also remains same at 2% for Foreign Companies.
• Similarly Education Cess and Secondary Higher Education Cess continue to be levied at 2% & 1% respectively.

Withholding Taxes

• On Interest

Section 115A (ii) which provides for withholding of tax on interest paid to non residents on External Commercial Borrowings (i.e borrowings in Foreign Currency) has been reduced from 20% to 5%(plus applicable surcharge and cess) for certain specific sectors¹ for a period of 3 years².

It is further proposed to insert a new section 194LC to provide that interest income paid by such specified company¹ to a nonresident shall be subjected to tax deduction at source at the rate of 5% (plus applicable surcharge and cess).

This amendment will take effect from 1st July, 2012.

On Royalty

• Royalty paid to non residents is subject to withholding to tax at the rate of 10% as per section 115A;
• Section 9(1)(vi) that any income payable by way of royalty in respect of any right, property, or information shall be deemed to accrue or arise in India;
• The definition of royalty is provided in explanation 2 to section 9 of The Income Tax Act. The definition of royalty has always been a matter of dispute, this year budget provides a clarification explanation to be included in section 9(1)(vi) by way of retrospective amendments from 1^st June, 1976 will accordingly apply in relation to the assessment year 1977-78 and subsequent assessment years..
• The explanation has been included to target payments towards shrink-wrap and embedded software, online databases and data clouds, which have been disputed before Indian tax courts in the past (except data clouds) and include them within the ambit of ‘royalty’.
• The proposed explanation seeks to include that “consideration for use or right to use” of computer software is royalty, by clarifying that it includes and has always included transfer of all or any right for use or right to use a computer software (including granting of software) irrespective of the medium through which it is transferred.
• Further explanation has been included that royalty includes “consideration in respect of any right, property or information whether or not”:

(a)  The possession or control of such right, property or information is with the payer;

(b) Such right, property or information is used directly by the payer;

(c)  The location of such right, property or information is in India.

• The term “process” includes and shall be deemed to have always included transmission by satellite (including up-linking, amplification, conversion for down-linking of any signal), cable, optic fiber or by any other similar technology, whether or not such process is secret.  The impact of this is that non-resident broadcasters could be required to pay tax on royalty in India on account of providing services in India.

On Non Resident Sportsmen Or Sports association

Section 115BBA which provides for withholding of tax on payment made to non-resident and non citizen sportsmen or sports association has been raised from 10% to 20% of the gross receipts.

It is further proposed to amend section 115BBA to provide that income arising to a non-citizen, non-resident entertainer (such as theatre, radio or television artists and musicians) from performance in India shall be taxable at the rate of 20% of gross receipts.

On payment made By One Non Resident to Another( Reversal of Vodafone Case)

The recent Supreme Court judgement set out that a requirement of tax presence was necessary for imposing a withholding tax obligation. The decision has been nullified by retrospective amendment in the statute, the budget proposes to tax on indirect transfers of Indian entities by non residents.

The changes made to tax indirect transfers are:

Meaning of Property

As per section 2(14) “capital asset” means property of any kind held by the assessee whether or not connected with his business or profession except stock in trade, consumable stores or raw material held for the purposes of his business or profession.

“Both the Bombay High Court and the Supreme Court held in Vodafone that “controlling interest” is not a capital asset”.

The Finance Bill proposes to add the following Explanation and the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April 1962, namely:

“Explanation- For the removal of doubts, it is hereby clarified that ‘property’ includes and shall be deemed to have always included any rights in or in relation to an Indian company, including rights of management or control or any other rights whatsoever.”

Meaning of Transfer

As per section 2(47) transfer means any sale, exchange, extinguishment or relinquishment of rights.

“Revenue’s primary case in Vodafone in the Supreme Court was that there was an “extinguishment” under this provision. It was inserted by Parliament to widen the scope of section 2(47) in order to cover transactions in which there is no sale in the ordinary sense. Although section 2(47) does not so provide, it is submitted that it is not open to the Revenue to invoke “extinguishment” in a transaction in which there is admittedly a sale, simply because that sale is not taxable. The Chief Justice’s implicit approval of this proposition is, it is submitted, to be welcomed.

The Finance Bill proposes to add the following Explanation and the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April 1962, namely:

“Explanation - For the removal of doubts, it is hereby clarified that “transfer” includes and shall be deemed always to have included disposing of or parting with an asset or any interest therein, or creating any interest in any asset in any manner whatsoever, directly or indirectly, absolutely or conditionally, voluntarily or involuntarily, by way of an agreement (whether entered into in India or outside India) or otherwise, notwithstanding that such transfer of rights has been characterized as being effected or dependent upon or flowing from the transfer of a share or shares of a company incorporated outside India.”

Scope of Income Deemed To accrue or arise in India

Section 9 contains provision for Income to accrue or arise in India. It is a legal fiction created to tax income which may or may not accrue or arise in India.

Sub clause (1)(i) provides for income accrue or arises in India directly or indirectly, through the transfer of a capital asset situate in India.

“The Supreme Court held in Vodafone that the words “directly or indirectly” do not qualify the transfer of the asset.”

The Finance Bill proposes to add the following Explanation and the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April 1962, namely:

1. “Explanation - the expression ‘through’ shall mean and include and shall be deemed to have always meant and included “by means of”, “in consequence of” or “by reason of”.

2. “ Explanation-          to clarify that an asset or a capital asset being any share or interest in a company or entity registered or incorporated outside India shall be deemed to be and shall always be deemed to have been situated in India if the share or interest derives, directly or indirectly, its value substantially from the assets located in India.

• Further Amended section 195(1) to clarify that obligation to comply with sub-section (1) and to make deduction there under applies and shall be deemed to have always applied and extends and shall be deemed to have always extended to all persons, resident or non-resident, whether or not the non-resident has:-

(a) a residence or place of business or business connection in India; or

(b) any other presence in any manner whatsoever in India.

1. The specified company shall be an Indian company engaged in the business of -

i.      construction of dam,

ii.      operation of Aircraft,

iii.      manufacture or production of fertilizers,

iv.      construction of port including inland port,

v.      construction of road, toll road or bridge;

vi.      generation, distribution of transmission of power

vii.      construction of ships in a shipyard; or

viii.      developing and building an affordable housing project as is presently referred to in section 35AD(8)(c)(vii).

This amendment will take effect from 1st April, 2013 and will, accordingly, apply in relation to the Assessment Year 2013-14 and subsequent assessment years.

1. It is proposed to amend Section 115A of the Income Tax Act to provide that any interest paid by a specified company to a non-resident in respect of borrowing made in foreign currency from sources outside India between 1st July, 2012 and 1st July, 2015, under an agreement, including rate of the interest payable, approved by the Central Government, shall be taxable at the rate of 5% (plus applicable surcharge and cess).

ESTABLISHMENT OF PROJECT OFFICES IN INDIA BY FOREIGN ENTITIES – CLARIFICATION ON GENERAL PERMISSION

A.P. (DIR SERIES 2011-12) CIRCULAR NO. 76, DATED 9-2-2012

Attention of the Authorised Dealer Category – I (AD Category – I) banks is invited to Regulation 4 of Notification No. FEMA 22/2000-RB, dated May 3, 2000, viz., Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000, as amended from time to time, in terms of which, no person, being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran or China, shall establish in India, a branch office or a liaison office or a project office or any other place of business by whatever name called, without the prior permission of the Reserve Bank. Attention of the AD Category -I banks is also invited to the A.P. (DIR Series) Circular No. 37, dated November 15, 2003 which provides the guidelines regarding general permission to a foreign entity for setting up a Project office in India, subject to certain conditions.

2. It is clarified that the general permission accorded in terms of the November 15, 2003 guidelines is subject to the adherence to the provisions of Regulation 4 of Notification No. FEMA 22 /2000-RB, dated 3rd May, 2000, ibid, along with their specified conditions.

3. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

4. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

Visit our website: http://www.mukeshraj.com/why-india.html

Government of India
Ministry of Commerce & Industry
Department of Industrial Policy & Promotion
(FC-I Section)
Press Note No.1 (2012 Series)

Subject: Review of the policy on Foreign Direct Investment- liberalization of the policy in Single-Brand Retail Trading.

1.0 Present Position:

Foreign Direct Investment (FDI), in retail trade, is prohibited except in single brand product retail trading, in which FDI, up to 51% is permitted, subject to conditions specified under paragraph 6.2.16.4 of ‘Circular 2 of 2011 – Consolidated FDI Policy’.

2.0 Revised Position:

The Government of India has reviewed the extant policy on FDI and decided that FDI, up to 100%, under the government approval route, would be permitted in Single-Brand Product Retail Trading, subject to specified conditions, as indicated in paragraph 3.0 below.

3.0 Accordingly, the following amendment is made in ‘Circular 2 of 2011- Consolidated FDI Policy’, dated 30.09.2011, issued by the Department of Industrial Policy & Promotion:

Paragraph 6.2.16.4 is substituted with the following:

6.2.16.4 Single Brand product retail trading 100% Government

(1) Foreign Investment in Single Brand product retail trading is aimed at attracting investments in production and marketing, improving the availability of such goods for the consumer, encouraging increased sourcing of goods from India, and enhancing competitiveness of Indian enterprises through access to global designs, technologies and management practices.

(2) FDI in Single Brand product retail trading would be subject to the following conditions:
(a) Products to be sold should be of a ‘Single Brand’ only.
(b) Products should be sold under the same brand internationally i.e. products should be sold under the same brand in one or more countries other than India.
(c) ‘Single Brand’ product-retail trading would cover only products which are branded during manufacturing.
(d) The foreign investor should be the owner of the brand.
(e) In respect of proposals involving FDI beyond 51%, mandatory sourcing of at least 30% of the value of products sold would have to be done from Indian ‘small industries/ village and cottage industries, artisans and craftsmen’. ‘Small industries’ would be defined as industries which have a total investment in plant & machinery not exceeding US $ 1.00 million. This valuation refers to the value at the time of installation, without providing for depreciation. Further, if at any point in time, this valuation is exceeded, the industry shall not qualify as a ‘small industry’ for this purpose. The compliance of this condition will be ensured through self-certification by the company, to be subsequently checked, by statutory auditors, from the duly certified accounts, which the company will be required to maintain.

(3) Application seeking permission of the Government for FDI in retail trade of ‘Single Brand’ products would be made to the Secretariat for Industrial Assistance (SIA) in the Department of Industrial Policy & Promotion. The application would specifically indicate the product/ product categories which are proposed to be sold under a ‘Single Brand’. Any addition to the product/ product categories to be sold under ‘Single Brand’ would require a fresh approval of the Government.

(4) Applications would be processed in the Department of Industrial Policy & Promotion, to determine whether the products proposed to be sold satisfy the notified guidelines, before being considered by the FIPB for Government approval.

4.0 The above decision will take immediate effect.

5.0 The above provisions will be incorporated in the next Circular on Consolidated FDI Policy to be issued on 31.3.2012.

Sd/-
(Anjali Prasad)
Joint Secretary to the Government of India

For mare detail visit our website:http://www.mukeshraj.com

RBI/2011-12/ 281
UBD.BPD.(PCB)CIR No. 13 /13.01.000/2011?12 November 25, 2011
The Chief Executive Officers
All Primary (Urban) Co-operative Banks

Dear Sir/Madam,
Deregulation of Savings Bank Deposit Interest Rate
Please refer to our circular No.UBD.BPD.(PCB)CIR No.45/13.01.00/2010-11 dated May 3, 2011 enclosing a Directive UBD.BPD.DIR. No.3/13.01.00/2010-11 dated May 3, 2011 on interest rates on deposits.
2. As indicated in the Second Quarter Review of Monetary Policy announced on October 25, 2011, it has been decided to deregulate the savings bank deposit interest rate with immediate effect. Accordingly, banks are free to determine, with immediate effect, their savings bank deposit interest rate, subject to the following two conditions:
o First, each bank will have to offer a uniform interest rate on savings bank deposits up to Rs. 1 lakh, irrespective of the amount in the account within this limit.
o Second, for savings bank deposits over Rs.1 lakh, a bank may provide differential rates of interest, if it so chooses, subject to the condition that banks will not discriminate in the matter of interest paid on such deposits, between one deposit and another of similar amount, accepted on the same date, at any of its offices.
3. The above revised instructions would be applicable to savings bank deposits of resident Indians only.
4. Interest rate on Non-Resident (External) Accounts Scheme and Ordinary Non-Resident Deposit under savings account, which has been prescribed at 4 per cent per annum at present, will continue to be regulated until further review.
5. An amending directive UBD.BPD.DIR. No. 4 /13.01.000/2011-12 dated November 25, 2011 is enclosed.

Yours faithfully
(A.Udgata)
Chief General Manager-in-Charge
Encls: As above