Comments invited on draft notification proposing amendment as per BEPS Action 5, for improving transparency in tax rulings 

Under Base Erosion and Profit Shifting (BEPS) Action 5, exchange of rulings on Permanent Establishment (PE) by Authority for Advance Rulings is required to be done not only with the countries of residence of all related parties with whom taxpayer enters into transaction, but also with the country of residence of the immediate parent company and the ultimate parent company. Therefore, in order to implement the recommendations made under Action 5 of BEPS Action Plan to bring greater transparency in cross national transactions, Form 34C and 34D (Forms for Advance Rulings) are required to be modified so that details such as name, address and country of the residence of non-resident’s immediate parent company or ultimate parent company etc. are captured at application stage itself. Further, vide Finance Act, 2017, the definition of the term “applicant” for the purpose of Advance Rulings has been amended by substituting clause (b) of Section 245N of the Income Tax Act, 1961 (the Act). Therefore, consequential amendments are required in Rule 44E and respective Forms to bring them in harmony with the amendment to the Act. Accordingly, a draft notification has been framed and uploaded on the website of the Income Tax Department at www.incometaxindia.gov.in for comments from stakeholders and general public.The comments and suggestions on the draft Rules and Forms may be sent by 30th April, 2018 electronically at the email address, ts.mapwal@nic.in.…
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IRDA notifies “Obligatory Cession” applicable to Indian Reinsurers as per S. 101-A of Insurance Act

The Insurance Regulatory and Development Authority of India, has notified the “Obligatory Cession”, with Central Governments’ previous approval, and after consultation with the Advisory Committee (constituted under Section 101-B of Insurance Act, 1938), in exercise of powers conferred by sub-section (2) of Section 101-A of Insurance Act, 1938. The notification hereby apprises the following: 1. Applicability: This notification shall be applicable to Indian Reinsurers and other applicable insurers as per the provision of Section 101-A of Insurance Act, 1938. 2. Percentage of Cession: The percentage cession of the sum insured on each General Insurance Policy to be reinsured with the Indian Reinsurer(s) shall be 5% in respect of insurance attaching during the financial year beginning from 1st April, 2017 to 31st March, 2018. Apportionment of obligatory cession for the FY 2017-18 will be at 5% and 0% between General Insurance Corporation of India and ITI Reinsurance Ltd. respectively. 3. Terms & Conditions: a) Sum insured limits for cession: i. The following sum insured limits for obligatory cession shall be applicable from 1st April, 2017 to 30th September, 2017. Class and Limit of cession in sum insured · Fire, IAR Large Risks — Rs 750 crore sum insured (MD+LOP) per risk · Marine Cargo/ DSU Insurance — Rs 50 crore sum insured per policy/bottom/sending · Marine Hull — Rs 50 crore sum insured per vessel · War & SRCC — Rs 50 crore sum insured per vessel · All Liability products excluding financial liability — Rs 25 crore per policy including USA and Rs 50 crore per policy excluding USA · Financial, Credit and Guarantee Lines, mortgage insurance, special contingency policies etc.…
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Applicability of various sections of Companies (Amendment) Act 2017 with effect from 09.02.2018

In exercise of the powers conferred by sub-section (2) of Section 1 of the Companies (Amendment) Act 2017 (1 of 2018), the Central Government hereby appoints the 09 February, 2018 as the date on which the following provisions of the said Act shall come into force, namely :- Sl. No. Section 1 Section 2  [except clause (i) and clause (xiii)] and Section 3; 2 Section 7; 3 Section 9; 4 Sections 11 and 12; 5 Section 14; 6 Section 17; 7 Sections 27 to 29 (both inclusive); 8 Section 32; 9 Sections 34 and 35; 10 Section 38; 11 Sections 41 to 45 (both inclusive); 12 Sections 47 and 48; 13 Sections 50 and 51; 14 Section 53; 15 Sections 59 and 60; 16 Sections 63 to 65 (both inclusive); 17 Sections 72 to 74 (both inclusive); 18 Sections 77 to 79 (both inclusive); 19 Section 82; 20 Sections 84 and 85; 21 Sections 90 to 93 (both inclusive). Tweet The post Applicability of various sections of Companies (Amendment) Act 2017 with effect from 09.02.2018 appeared first on SCC Blog.…
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CBDT notifies Central Registry for Securitization Asset Reconstruction and Security Interest of India

S.O. 283(E).—In exercise of the powers conferred by clause (46) of Section 10 of the Income tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, the Central Registry for Securitization Asset Reconstruction and Security Interest of India, a body set up under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, in respect of the following specified income arising to that body, namely:— 1. fee income from Security Interest transactions; 2. fee income from transactions on Central KYC (CKYC) Records Registry; 3. interest income on fixed deposits and on saving bank account; and 4. RTI application fee. 2. This notification shall be effective subject to the conditions that Central Registry for Securitization Asset Reconstruction and Security Interest of India,— (a) shall not engage in any commercial activity; (b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and (c) shall file return of income in accordance with the provision of clause (g) of subsection (4C) of section 139 of the Income-tax Act, 1961. 3. This notification shall be deemed to have been applied for the financial Years 2013-2014, 2014-2015, 2015-2016, 2016-2017 and shall apply with respect to the financial year 2017-2018.…
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Relaxation in provisions relating to levy of MAT in case of companies against whom an application for corporate insolvency resolution process has been admitted under Insolvency and Bankruptcy Code, 2016

The existing provisions of Section 115JB of the Income-tax Act, 1961 (‘the Act’), inter alia, provide, that, for the purposes of levy of Minimum Alternate Tax (MAT) in case of a company, the amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account shall be reduced from the book profit. In this regard, representations have been received from various stakeholders that the companies against whom an application for corporate insolvency resolution process has been admitted by the Adjudicating Authority under Section 7 or Section 9 or Section 10 of the Insolvency and Bankruptcy Code, 2016 (‘the IBC’), are facing hardship due to restriction in allowance of brought forward loss for computation of book profit under Section 115JB of the Act. With a view to minimize the genuine hardship faced by such companies, it has been decided, that, with effect from Assessment Year 2018-19 (i.e. Financial Year 2017-18), in case of a company, against whom an application for corporate insolvency resolution process has been admitted by the Adjudicating Authority under Section 7 or Section 9 or Section 10 of the IBC, the amount of total loss brought forward (including unabsorbed depreciation) shall be allowed to be reduced from the book profit for the purposes of levy of MAT under Section 115JB of the Act. …
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CBEC excludes petroleum coke from purview of concessional 5% Basic Customs Duty

G.S.R. 15(E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and sub-section (12) of section 3 of Customs Tariff Act, 1975 (51 of 1975), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i), vide number G.S.R. 785(E), dated the 30th June, 2017, namely:? In the said notification, in the Table, against serial number 147, in column (3), for the entry, the entry “All goods (including naphtha), [other than goods mentioned at S. No. 148, 149, 150, 151, 153, petroleum coke falling under tariff item 2713 11 00 or 2713 12 00]” shall be substituted. [F. No. 354/361/2017-TRU] Note: The principal notification No.50/2017-Customs, dated the 30th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide number G.S.R. 785(E), dated the 30th June, 2017 and last amended vide notification No. 93/2017-Customs, dated the 21st December, 2017, published vide number G.S.R.…
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Prevention of Money Laundering (Maintenance of Records) Rules, 2005 amended in the light of Aadhaar linkage date extension

On 12.12.2017, Central Government, in consulation with the Reserve Bank of India, made the Prevention of Money Laundering (Maintenance of Records) Seventh Amendment Rules, 2017, thereby replacing the requirement of submitting “the Aadhaar number and Permanent Account Number by December 31, 2017” under proviso (a) to Rule 9 (17) of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 with “submit the Aadhaar number, and Permanent Account Number or Form No. 60, by such date as may be notified by the Central Government.” As a consequence, the proviso (c) to the said Rule, will now read as: “Provided that in case the client already having an account based relationship with reporting entities prior to the date of publication of this notification in the official gazette fails to submit the Aadhaar number and PAN by such date as may be notified by the central government, the said account shall cease to be operational till the time the Aadhaar number and Permanent Account Number is submitted by the client.” The said Amendment Rules have come into force after the Central Government submitted before the Supreme Court on 07.12.2017 that it will extend the deadline for linking Aadhaar  from 31.12.2017 to 31.03.2018, after  Senior Advocate Shyam Divan asked the Court to hear the matter urgently for interim relief as the deadline for Aadhaar linking was uproaching.…
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SEBI issues guideline on appointment of Auditors of Mutual Fund

CIRCULAR SEBI/HO/IMD/DF2/CIR/P/2017/125 Sub: Enhancing fund governance for Mutual Funds In order to strengthen the governance structure for Mutual Funds (MFs), it has been decided to implement the following: A. Tenure of independent trustees and independent directors: 1. Regulation 16 (5) and Regulation 21 (1) (d) of SEBI (Mutual Funds) Regulations, 1996 mandate appointment of independent trustees of MFs (“independent trustees”) and independent directors of AMCs (“independent directors”) respectively. With respect to tenure of independent trustees and independent directors, it has been decided that: i. An independent trustee and independent director shall hold office for a maximum of 2 terms with each term not exceeding a period of 5 consecutive years. ii. No independent trustee or independent director shall hold office for more than two consecutive terms, however such individuals shall be eligible for re-appointment after a cooling-off period of 3 years. During the cooling-off period, such individuals should not be associated with the concerned MF, AMC & its subsidiaries and / or sponsor of AMC in any manner whatsoever. iii. Existing independent trustees and independent directors shall hold office for a maximum of 10 years (including all preceding years for which such individual has held office). In this respect, the following may be noted: a.…
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Constitution of Fifteenth Finance Commission notified

The Government of India, with the approval President of India, has constituted Fifteenth Finance Commission in pursuance of clause (1) of Article 280 of the Constitution, read with the provisions of the Finance Commission (Miscellaneous Provisions) Act, 1951 w.e.f. 27th November, 2017. The Commission will make recommendations for the five years commencing on April 1, 2020. This Commission will be headed by Shri. N.K.Singh, former Member of Parliament and former Secretary to the Government of India. Shri Shaktikanta Das, former Secretary to the Government of India and Dr. Anoop Singh, Adjunct Professor, Georgetown University shall be the members of the Commission.  Dr. Ashok Lahiri, Chairman (Non-executive, part time), Bandhan Bank and Dr. Ramesh Chand, Member, NITI Aayog shall be the Part time members of the Commission. Shri Arvind Mehta shall be the Secretary to the Commission. The Terms of Reference of the Commission has been issued vide notification Number S.O.3755(E). dated 27th November, 2017.   MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 27th November, 2017 S.O. 3755(E).—The following order made by the President is to be published for general information: ORDER In pursuance of clause (1) of Article 280 of the Constitution, read with the provisions of the Finance Commission (Miscellaneous Provisions) Act, 1951 (33 of 1951), the President is pleased to constitute a Finance Commission consisting of Shri N.K.…
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Aadhaar as an identity document for NRIs, PIOs & OCIs

CIRCULAR Subject: Applicability of Aadhaar as an identity document for Non-Resident Indians (NRIs)/Person of Indian Origin (PI0s) and Overseas Citizen of India (OCIs) – Reg. In the recent past several representations have been received from individuals such as Non-Resident Indians (NRIs), Person of Indian Origin (PIOs) and Overseas Citizen of India (OCIs) informing about difficulties being faced by them on demand of Aadhaar by respective Authorities in respect of various services/benefits etc. An illustrative list of such cases wherein NRIs/PIOs/OCIs are reported to have been asked to submit or link Aadhaar in order to avail the services/benefits/schemes has been compiled and is placed as Annexure. 2. It has been brought to notice that some of the Ministries/Departments/Implementing Agencies concerned are insisting the NRIs/OCIs/PIOs to submit or link their Aadhaar for availing the services/ benefits etc. that are directly or indirectly connected with NRIs/OCIs/PI0s, regardless of the fact they may not be entitled for Aadhaar as per the Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act, 2016 (Aadhaar Act, 2016) 3. In this regard, attention is invited to Section 3(1) of the Aadhaar Act, 2016, which inter-alia, lays down that “every resident shall be entitled to obtain an Aadhaar number by submitting his demographic information and bio metric information by undergoing the process of enrollment.” Further Section 2(v) of the Aadhaar Act defines ‘resident’ as an individual who has resided in India for a period or periods amounting in all to one hundred and eighty-two days or more in the twelve months immediately preceding the date of application for enrollment.…
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Comments sought on Draft Notification in respect of conversion of Indian Branch of foreign bank into Indian subsidiary company

Finance Act, 2012 inserted a new Chapter XII-BB consisting of Section 115JG in the Income-tax Act, 1961 (the Act) which contains “Special provisions relating to conversion of Indian Branch of a foreign bank into a subsidiary company”. Section 115JG of the Act inter alia provides that in case the conversion of Indian Branch of foreign bank fulfils the conditions notified by the Central Government, the capital gains arising from such conversion shall not be chargeable to tax and the provision relating to unabsorbed depreciation, set off or carry forward and set off of losses, tax credit in respect of tax paid on deemed income relating to certain companies and the computation of income in case of foreign company and Indian subsidiary shall apply with such modification, exception etc. as may be specified in the notification. Accordingly, it is proposed to issue notification under Section 115JG(1) of the Act specifying the conditions to be fulfilled by the conversion and also specifying modifications, exceptions, in applicability of certain provisions of the Act to such conversion. The Draft of the said notification is given below. The stakeholders are requested to send their comments/suggestions on the draft notification by 30-11-2017 to the email address (dirtpl2@nic.in).…
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Updated Harmonized Master List of Infrastructure Sub-sectors notified

NOTIFICATION F. No. 13/1/2017-INF.—With the approval of the Competent Authority, an updated Harmonized Master List of Infrastructure Sub-sectors (Annexure-I) is hereby notified. The new list incorporates the following change to the notification dated 17th October, 2017: 1. Widening the Category at serial no.1 which currently reads “Transport” to “Transport and Logistics”. Further, “Logistics Infrastructure” is included by insertion of a new item at position 8 in the renamed category of ‘Transport and Logistics’, with a footnote stating that “Logistics Infrastructure” means and includes Multimodal Logistics Park comprising Inland Container Depot (ICD) with minimum investment of Rs 50 crore and minimum area of 10 acre, Cold Chain Facility with minimum investment of Rs 15 crore and minimum area of 20,000 sq ft, and/or Warehousing Facility with investment of minimum Rs 25 crore and minimum area of 1 lakh sq ft. Annexure-A Updated Harmonized Master List of Infrastructure Sub-sectors Sl.No. Category Infrastructure sub-sectors 1. Transport and Logistics • Roads and bridges• Ports 1 • Shipyards 2 • Inland Waterways • Airport • Railway Track, tunnels, viaducts, bridges, terminal infrastructure including stations and adjoining commercial infrastructure  • Urban Public Transport (except rolling stock in case of urban road transport) • Logistics Infrastructure3 2. Energy • Electricity Generation• Electricity Transmission • Electricity Distribution • Oil pipelines • Oil/Gas/Liquefied Natural Gas (LNG) storage facility 4 • Gas pipelines 5 3.…
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